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HomeMy WebLinkAboutAgenda Item Summary Form�1TY OF "V AGENDA ITEM SUMMARY FORM * """ of File ID: #6078 L O R 19 ' tq Date: 06/21/2019 Requesting Department: Office of Management and Budget Commission Meeting Date: 07/25/2019 Sponsored By: District Impacted: Type: Resolution Subject: Setting the FY 2019-20 Millage Cap Purpose of Item: To establish millage rate caps for the fiscal year ending September 30, 2020 at: Operating 7.5665 Debt Service 0.4235 Total Millage Rate 7.9900 And to set the Budget Hearing dates as follows: First Budget Hearing- September 12, 2019 at 5:05 pm Second Budget Hearing- September 26, 2019 at 5:05 pm Background of Item: The City of Miami FY 2019-20 Proposed Operating Budget, as presented on July 3, 2019, contains the following recommended millage rate: General Operating 7.5665 Debt Service 0.4235 Total Millage Rate 7.9900 A five- year history of millage rates shows a steady overall decline: For the City Commission's reference, every tenth mill will generate approximately $5.115 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 1 st 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 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 Proposed General Operating 7.6465 7.6465 7.4365 7.5865 7.5665 Debt Service 0.6886 0.6435 0.5935 0.4435 0.4235 Total Millage Rate 8.3351 8.2900 8.0300 8.0300 7.9900 For the City Commission's reference, every tenth mill will generate approximately $5.115 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 1 st 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 12, 2019 and the second budget hearing on September 26, 2019. Miami- Dade County is scheduled to present their budget hearings on September 5, 2019 and September 19, 2019. The School Board Budget Meeting is scheduled for September 4, 2019. 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 Item has NO budget impact Total Fiscal Impact: Debt: $23.725.000 Office of Management and Budget 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 ODeratina: $386.816.000 Reviewed By Christopher M Rose Department Head Review Completed 07/15/2019 11:48 AM Sandra Bridgeman Assistant City Manager Review Completed 07/16/2019 11:39 AM Valentin J Alvarez Legislative Division Review Completed 07/16/2019 11:40 AM Nikolas Pascual City Manager Review Completed 07/16/2019 2:23 PM Valentin J Alvarez Deputy City Attorney Review Skipped 07/16/2019 11:41 AM Victoria Mendez Approved Form and Correctness Completed 07/16/2019 6:47 PM Nicole Ewan Meeting Completed 07/25/2019 9:00 AM Mayor's Office Signed by the Mayor Completed 07/31/2019 3:48 PM City Clerk's Office Signed and Attested by the City Clerk Completed 07/31/2019 3:52 PM City Clerk's Office Rendered Completed 07/31/2019 3:53 PM File Number: 6078 City of Miami Legislation Resolution Enactment Number: R-19-0313 City Hall 3500 Pan American Drive Miami, FL 33133 www.miamigov.com Final Action Date:7/25/2019 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, 2019 AND ENDING SEPTEMBER 30, 2020; AUTHORIZING AND DIRECTING THE CITY MANAGER TO SUBMIT BOTH SAID PROPOSED MILLAGE RATE AND THE STATUTORILY DEFINED ROLLED BACK 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 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 rate submitted to the Property Appraiser and the Tax Collector is not binding but is necessary for preparation of tax 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 100 percent, property added due to geographic boundary changes, total taxable value of tangible personal property within the jurisdiction in excess of 115 percent of the previous year's total taxable value, and any dedicated increment value"; and WHEREAS, the Statute stipulates that both said proposed millage rate and the rolled back millage rate be submitted to the Miami -Dade County Property Appraiser ("Property Appraiser') and the Miami -Dade County Tax Collector ("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; 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, 2019 and ending September 30, 2020 is hereby computed as follows: General Operating Millage 7.5665 Debt Service Millage 0.4235 Total Millage Rate 7.9900 Section 3. The State of Florida statutorily defined rolled -back millage rate for the purpose of funding the Fiscal Year 2019-20 General Operating Budget for the City of Miami is 7.2341 mills. Section 4. 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 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 12, 2019, at 5:05 P.M. and September 26, 2019, at 5:05 P.M. in the City Commission Chambers at City Hall, 3500 Pan American Drive, Dinner Key, Miami, Florida. Section 5. This Resolution shall become effective immediately upon its adoption and signature of the Mayor.2 APPROVED AS TO FORM AND CORRECTNESS: 1 i ria i . ndez, City Attor iey 7/16/2019 The herein authorization is further subject to compliance with all requirements that may be imposed by the City Attorney, 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.