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HomeMy WebLinkAboutAgenda Item Summary FormDate: 06/22/2018 AGENDA ITEM SUMMARY FORM File ID: #4333 Commission Meeting Date: 07/26/2018 Type: Resolution Subject: Setting Millage Cap - FY 2018-19 Purpose of Item: Requesting Department: Office of Management and Budget Sponsored By: District Impacted: All To establish millage rate caps for the fiscal year ending September 30, 2019 at: General Operating 7.5865 Debt Service 0.4435 Total Millage Rate 8.0300 And to set the Budget Hearing dates as follows: First Budget Hearing- September 13, 2018 at 5:05 pm Second Budget Hearing- September 27, 2018 at 5:05 pm Background of Item: The City of Miami FY 2018-19 Proposed Operating Budget, as presented on July 9, 2018, contains the following recommended millage rate: General Operating 7.5865 Debt Service 0.4435 Total Millage Rate 8.0300 A five- year history of millage rates shows a steady overall decline: FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Proposed General Operating 7.6465 7.6465 7.6465 7.4365 7.5865 Debt Service 0.7385 0.6886 0.6435 0.5935 0.4435 Total Millage Rate 8.3850 8.3351 8.2900 8.0300 8.0300 For the City Commission's reference, every tenth mill will generate approximately $4.6 million for the City of Miami General Fund in the next fiscal year. Florida Statute Section 200.065 governs the setting 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 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 4 and no later than September 19. 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 September 13, 2018 and the second budget hearing on September 27, 2018. Miami- Dade County is scheduled to present their budget hearings on September 6, 2018 and September 20, 2018. The School Board Budget Meeting is scheduled for September 5, 2018. 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 Item is Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: Debt: $22.483 million Operating: $355.210 million Reviewed By Office of Management and Budget Everton Garvis Office of Management and Budget Christopher M Rose City Manager's Office Sandra Bridgeman City Manager's Office Nikolas Pascual Legislative Division Valentin J Alvarez Office of the City Attorney Xavier Alban Office of the City Attorney Barnaby L. Min Office of the City Attorney Victoria Mendez City Commission Maricarmen Lopez Office of the Mayor Mayor's Office Office of the City Clerk City Clerk's Office Office of the City Clerk City Clerk's Office Budget Analyst Review Completed 06/28/2018 5:40 PM Department Head Review Completed 06/30/2018 12:48 PM Assistant City Manager Review Completed 07/09/2018 4:27 PM City Manager Review Completed 07/09/2018 4:34 PM Legislative Division Review Completed 07/10/2018 10:52 AM ACA Review Completed 07/10/2018 11:24 AM Deputy City Attorney Review Completed 07/10/2018 11:28 AM Approved Form and Correctness Completed 07/10/2018 5:54 PM Meeting Completed 07/26/2018 9:00 AM Signed by the Mayor Completed 08/06/2018 4:00 PM Signed and Attested by the City Clerk Completed 08/06/2018 4:49 PM Rendered Completed 08/06/2018 4:49 PM File Number: 4333 City of Miami Legislation Resolution Enactment Number: R-18-0333 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:7/26/2018 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, 2018 AND ENDING SEPTEMBER 30, 2019; DIRECTING THE CITY MANAGER TO SUBMIT SAID PROPOSED MILLAGE RATE TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER AND THE MIAMI-DADE COUNTY TAX COLLECTOR TOGETHER WITH THE DATES, TIMES, AND PLACE OF THE PUBLIC 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 WHEREAS, the Statute stipulates that said proposed millage rate be submitted to the Miami -Dade County Property Appraiser ("Property Appraiser') and the Miami -Dade County Tax Collector ("Tax Collector'); 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 rate submitted to the Property Appraiser and the Tax Collector is not binding but is necessary for preparation of tax notices; 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, 2018 and ending September 30, 2019 is hereby computed as follows: General Operating 7.5865 Debt Service 0.4435 Total Millage Rate 8.0300 Section 3. The City Manager is hereby directed to submit said proposed millage rate for the City to the Property Appraiser and to the Tax Collector together with the dates, times, and place at which the City Commission will hold public hearings to consider the proposed millage rate and the City's tentative budget for said fiscal year as follows: September 13, 2018, at 5:05 P.M. and September 27, 2018, at 5:05 P.M. in the City Commission Chambers at City Hall, 3500 Pan American Drive, Dinner Key, Miami, Florida. Section 4. This Resolution shall become effective immediately upon its adoption and signature of the Mayor. APPROVED AS TO FORM AND CORRECTNESS: 1 Un ndez, City Attor iey 7/10/2018 '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.