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HomeMy WebLinkAboutAgenda Item Summary FormAGENDA ITEM SUMMARY FORM File ID: #6293 oil M- *1D1-*yP liiR1 Commission Meeting Date: 09/26/2019 Type: Ordinance Subject: Adopt Millage FY'20 - City of Miami PURPOSE OF ITEM: Requesting Department: Office of Management and Budget Sponsored By: District Impacted: Various To adopt the final millage rates for the fiscal year ending September 30, 2020 (FY 2019- 20) at: General Operating 7.5665 Debt Service 0.4235 Total Millage Rate 7.9900 BACKGROUND INFORMATION: The City of Miami FY 2019-20 Proposed Operating Budget, as presented on July 3, 2019, contains the following recommended millage rates: General Operating 7.5665 Debt Service 0.4235 Total Millage Rate 7.9900 On July 25, 2019, the City Commission approved the millage caps, as approved by R- 19-0313. The FY 2019-20 Tentative Millage Rate was approved on September 12, 2019. A five- year history of millage rates shows a steady overall decline: FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 FY General Operating 7.6465 7.6465 7.5865 7.5665 Debt Service 0.6886 0.4435 0.4235 Total Millage Rate 8.3351 8.2900 8.0300 7.9900 L110z' 9161 MEl91.61 [1100x&I E.31iX1iI17 Proposed City of Miami File ID: 6293 (Revision: A) Printed On: 10/4/2019 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 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. Effectively, the tentative millage adopted on July 25, 2019 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. Budaet Impact Analvsis Item is Related to Revenue Item is NOT funded by Bonds Total Fiscal Impact: $386,816,000 Ooeratina and $23,725,000 Debt Reviewed By Office of Management and Budget Christopher M Rose Department Head Review Completed 08/22/2019 6:22 AM City Manager's Office Sandra Bridgeman Assistant City Manager Review Completed 08/22/2019 11:43 PM City Manager's Office Nikolas Pascual City Manager Review Completed 08/23/2019 11:45 AM Legislative Division Valentin J Alvarez Legislative Division Review Completed 08/29/2019 10:50 AM Office of the City Attorney Barnaby L. Min Deputy City Attorney Review Completed 08/29/2019 11:06 AM Office of the City Attorney Victoria Mendez Approved Form and Correctness Completed 08/30/2019 3:45 PM City Commission Nicole Ewan Meeting Completed 09/12/2019 5:05 PM Legislative Division Valentin J Alvarez Legislative Division Review Completed 09/16/2019 12:09 PM Office of Management and Budget Christopher M Rose Budget Review Completed 09/16/2019 5:21 PM City Manager's Office Sandra Bridgeman Assistant City Manager Review Completed 09/17/2019 1:23 PM City Manager's Office Nikolas Pascual City Manager Review Completed 09/17/2019 3:05 PM Office of the City Attorney Barnaby L. Min Deputy Attorney Review Completed 09/17/2019 5:20 PM Office of the City Attorney Victoria Mendez Approved Form and Correctness Completed 09/17/2019 6:57 PM City Commission Maricarmen Lopez Meeting Completed 09/26/2019 5:05 PM Office of the Mayor Mayor's Office Signed by the Mayor Completed 09/27/2019 7:18 PM Office of the City Clerk City Clerk's Office Signed and Attested by the City Clerk Completed 09/27/2019 7:22 PM Office of the City Clerk City Clerk's Office Rendered Completed 09/27/2019 7:22 PM City of Miami File ID: 6293 (Revision: A) Printed On: 101412019 tikY� rad' if } City of Miami City Hall t' Le islation 3500 Pan American Drive { r� K x :• g Miami, FL 33133 Ordinance www.miamigov.com Enactment Number:13860 File Number: 6293 Final Action Date: 9/26/2019 AN ORDINANCE OF THE MIAMI CITY COMMISSION RELATED TO TAXATION, DEFINING AND DESIGNATING THE TERRITORIAL LIMITS FOR THE CITY OF MIAMI ("CITY"); LEVYING AN AD VALOREM TAX ON ALL REAL AND PERSONAL PROPERTY IN THE CITY AT A TOTAL FINAL RATE OF 7.99000 MILLS ON THE DOLLAR OF THE TAXABLE VALUE OF SUCH PROPERTY, FOR THE PURPOSES OF FUNDING THE GENERAL OPERATING BUDGET AND PAYMENT OF DEBT SERVICE, FOR THE FISCAL YEAR BEGINNING OCTOBER 1, 2019 AND ENDING SEPTEMBER 30, 2020; CONTAINING A SEVERABILITY CLAUSE, AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, for the purposes of this Ordinance, the City of Miami ("City") is defined as all of the territory and inhabitants within the area defined in Section 2 of the Charter of the City of Miami, Florida ("City Charter'), titled "Corporate Limits", and more specifically described in Exhibit "A" of the City Charter and on file in the Office of the City Clerk; and WHEREAS, Section 200.065, Florida Statutes (2019), sets forth the method of computing, proposing, and fixing a millage rate for ad valorem taxation; and WHEREAS, on July 1, 2019, the Miami -Dade County Property Appraiser ("PA"), pursuant to Section 200.065(1), Florida Statutes (2019), certified to the City the preliminary taxable value within its territorial limits at $58,961,599,417; and WHEREAS, the City prepared a Proposed Budget for the fiscal year ("Fiscal Year") beginning October 1, 2019 and ending September 30, 2020 and computed a total proposed millage rate of 7.9900, which is necessary to fund the tentative budget other than the portion of the budget to be funded from sources other than ad valorem taxes; and WHEREAS, the City Commission enacted Resolution No. 19-0313 on July 25, 2019, wherein it directed the City Manager to submit to the PA and the Miami -Dade County Tax Collector the total proposed millage rate of 7.9900 mills, together with the required information set forth in Section 200.65(2)(b), Florida Statutes (2019); and WHEREAS, on September 12, 2019, the City held a public hearing as required by Section 200.065(2)(c), Florida Statutes (2019), where the City Commission adopted a total tentative millage rate of 7.9900 mills pursuant to the first reading of this proposed Ordinance; and WHEREAS, another public hearing, as required by Section 200.065 (2)(c), Florida Statutes (2019), occurred in connection with the final millage rate as set forth herein; NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by reference and incorporated herein as if fully set forth in this Section. City of Miami File ID: 6293 (Revision: A) Printed On: 10/4/2019 Section 2. There shall be levied an ad valorem tax on all real and personal property in the City at a final total rate of 7.9900 mills on the dollar of the taxable value of such property for the Fiscal Year commencing October 1, 2019 and ending September 30, 2020 computed as follows: 7.5665 mills to fund the General Operating Budget. 0.4235 mills to provide for the payment of maturing principal and interest, and charges and requirements related thereto, of voter approved indebtedness. Section 3. The final millage rate herein adopted for the purpose of funding the General Operating Budget is 4.59 percent greater than the rolled -back rate of 7.2341 mills. Section 4. If any section, part of a section, paragraph, clause, phrase, or word of this Ordinance is declared invalid, the remaining provisions of the Ordinance shall not be affected. Section 5. This Ordinance shall be effective as of October 1, 2019 and after final reading and adoption thereof.' APPROVED AS TO FORM AND CORRECTNESS: 1 1 i ria i . nd` ez, Ciky Attor ey8/3012019 i 4riaind z, pity Att�or ey 9/17/2019 ' This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten (10) days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become effective immediately upon override of the veto by the City Commission or upon the effective date stated herein. whichever is later. City of Miami File ID: 6293 (Revision: A) Printed On: 101412019