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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #17746 Date: 06/12/2025 Commission Meeting Date: 07/24/2025 Requesting Department: Office of Management and Budget Sponsored By: District Impacted: All Type: Resolution Subject: Approve - FY 2025-26 Millage Rate Cap Purpose of Item: To establish millage rate caps for the fiscal year ending September 30, 2026 at: General Operating 7.1364 Debt Service 0.2536 Total Millage Rate 7.3900 And to set the Budget Hearing dates as follows: First Budget Hearing- Saturday, September 13, 2025, at 10:00 AM Second Budget Hearing - Thursday, September 25, 2025, at 5:05 PM Background of Item: The City of Miami FY 2025-26 Proposed Operating Budget, as presented in July 2025, contains the following recommended millage rates: General Operating Debt Service Total Millage Rate 7.1364 0.2536 7.3900 A five- year history of millage rates is shown below: FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 Proposed General Operating Debt Service Total Millage Rate 7.6665 0.3235 7.9900 7.5539 0.3235 7.9900 7.1364 0.3235 7.8774 7.1364 0.2536 7.3900 7.1364 0.2536 7.3900 For the City Commission's reference, every tenth mill will generate approximately $8.791 million for the City of Miami General Fund in the next fiscal year. Florida Statute Section 200.065 governs the setting of the millage rates, adoption of budget, and the timeframes required of each. It requires that the City of Miami advise the Property Appraiser of its proposed millage within 35 days (August 4) of the July 1st certification of value so that the information can be included in the notice of proposed property taxes mailed to property owners in August. The same statute governs the timeframes for the first and second budget hearings. The first hearing must be held between 65 and 80 days of the same July 1 certification of value, which is no earlier than September 3 and no later than September 18. The City must then hold a second budget hearing with enough time to provide the final budget and millage rates to the property appraiser, tax collector, and State of Florida Department of Revenue by October 1. The City of Miami proposes to set the first budget hearing for Saturday, September 13, 2025, at 10:00 AM and the second budget hearing on Thursday, September 25, 2025, at 5:05 PM. Miami- Dade County is scheduled to present their budget hearings on September 4, 2025, and September 18, 2025. The School Board Budget Meeting is scheduled for September 10, 2025. Effectively, the tentative millage adopted represents the upper limit for the millage rates to be considered in September. The Commission may lower the general operating millage rate at either of the two budget hearings, but effectively cannot raise it above what is adopted in July. State law allows for this possibility, but it cannot be practically achieved within the timeframes provided in state law. According to the Property Appraiser's Office, this re -noticing of millage rates has not been accomplished even once in the history of the State of Florida. Budget Impact Analysis Total Fiscal Impact: General Account No: Various Special Revenue Account No: Various Office of Management and Budget Office of Management and Budget City Manager's Office City Manager's Office Legislative Division City Manager's Office Office of the City Attorney Office of the City Attorney City Commission Office of the Mayor Office of the City Clerk Office of the City Clerk Reviewed B Marie Gouin Calvin Fifer Larry M. Spring Natasha Colebrook -Williams Valentin J Alvarez Arthur Noriega V Xavier Alban George K. Wysong III Maricarmen Lopez Mayor's Office City Clerk's Office City Clerk's Office Department Head Review Budget Analyst Review Assistant City Manager Review Deputy City Manager Review Legislative Division Review City Manager Review ACA Review Approved Form and Correctness Meeting Completed Completed Completed Completed Completed Completed Completed Completed Completed Unsigned by the Mayor Completed Signed and Attested by the City Clerk Completed Rendered Completed 07/15/2025 11:55 AM 07/15/2025 12:04 PM 07/15/2025 2:15 PM 07/15/2025 3:02 PM 07/15/2025 3:14 PM 07/15/2025 3:16 PM 07/15/2025 9:29 PM 07/15/2025 11:30 PM 07/24/2025 9:00 AM 07/31/2025 2:26 PM 07/31/2025 2:52 PM 08/04/2025 2:29 PM City of Miami Legislation Resolution Enactment Number: R-25-0304 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com File Number: 17746 Final Action Date:7/24/2025 A RESOLUTION OF THE MIAMI CITY COMMISSION COMPUTING A PROPOSED MILLAGE RATE FOR THE CITY OF MIAMI ("CITY") FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2025, AND ENDING SEPTEMBER 30, 2026; AUTHORIZING AND DIRECTING THE CITY MANAGER TO SUBMIT BOTH SAID PROPOSED MILLAGE RATE OF 7.3900 MILLS AND THE STATUTORILY DEFINED ROLLED BACK MILLAGE RATE OF 6.6015 TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER AND THE MIAMI-DADE COUNTY TAX COLLECTOR TOGETHER WITH THE DATES, TIMES, AND LOCATION OF THE CITY'S PUBLIC BUDGET HEARINGS AT WHICH THE CITY COMMISSION WILL CONSIDER THE PROPOSED MILLAGE RATE AND THE CITY'S TENTATIVE BUDGET FOR SAID FISCAL YEAR. WHEREAS, Section 200.065, Florida Statutes ("Statute"), sets forth requirements for the "Truth in Millage" ("TRIM") notice and requires each taxing authority to establish a proposed millage rate and to determine the statutorily defined rolled back millage rate; and WHEREAS, said proposed millage rate will reflect the levy necessary to fund the City of Miami's ("City") tentative budget other than the portion of the budget to be funded from sources other than ad valorem taxes; and WHEREAS, the proposed millage and the date, time, and location of the City's first public budget hearings ("First Public Budget Hearing") to consider the millage rate and proposed budget must be submitted to the Miami -Dade County ("County") Property Appraiser and the County Tax Collector and is not binding but is necessary for preparation of TRIM notices; and WHEREAS, the Statute defines the "rolled back millage rate" as a millage rate which, with certain specified exclusions, will provide the same ad valorem tax revenue for each taxing authority as was levied during the prior year less the amount, if any, paid or applied as a consequence of an obligation measured by the dedicated increment value; those exclusions are "new construction, additions to structures, deletions, increases in the value of improvements that have undergone a substantial rehabilitation which increased the assessed value of such improvements by at least one hundred percent (100%), property added due to geographic boundary changes, total taxable value of tangible personal property within the jurisdiction in excess of one hundred fifteen percent (115%) of the previous year's total taxable value, and any dedicated increment value"; and WHEREAS, Section 200.065(2)(d), Florida Statutes, requires that the tentative millage rate, the statutorily defined rolled back millage rate, the final budget, and the date, time, and place of the second public budget hearing ("Second Public Budget Hearing") must be advertised within fifteen (15) days of the First Public Budget Hearing; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated as if fully set forth in this Section. Section 2. A proposed millage rate for the City for the Fiscal Year beginning October 1, 2025, and ending September 30, 2026, is hereby computed as follows: General Operating Millage Debt Service Millage Total Millage Rate 7.1364 0.2536 7.3900 Section 3. The State of Florida statutorily defined rolled -back millage rate for the purpose of funding the Fiscal Year 2025-2026 General Operating Budget for the City is 6.6015 mills. Section 4. The City's First Public Budget Hearing at which the City Commission will consider the proposed millage rate and the City's tentative budget for Fiscal Year 2025-2026 is hereby set for Saturday, September 13, 2025, at 10:00 A.M. in the City Commission Chambers at City Hall located at 3500 Pan American Drive, Miami, Florida, or at such other time, date, location, as otherwise allowed by Florida laws. Section 5. The City's Second Public Budget Hearing at which the City Commission will consider the tentative millage rate, the statutorily defined rolled back millage rate, and the final budget for said fiscal year is hereby set for Thursday, September 25, 2025, at 5:05 P.M. in the City Commission Chambers at City Hall located at 3500 Pan American Drive, Miami, Florida, or at such other time, date, location, as otherwise allowed by Florida laws. Section 6. The City Manager is hereby authorized' and directed to submit both said proposed millage rate and the statutorily defined rolled back millage rate for the City to the County Property Appraiser and to the County Tax Collector together with the date, time, and place at which the City Commission will hold the First Public Budget Hearing and the Second Public Budget Hearing. Section 7. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: rge = . Wyy ng III, C yttor -y 7/15/2025 1 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to, those prescribed by applicable City Charter and City Code provisions. 2 If the Mayor does not sign this Resolution, it shall become effective at the end of ten (10) calendar days from the date it was passed and adopted. If the Mayor vetoes this Resolution, it shall become effective immediately upon override of the veto by the City Commission.