AGENDA ITEM SUMMARY FORM

File ID: #6078

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:

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 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 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 has NO budget impact
Item is NOT funded by Bonds

Total Fiscal Impact:

Debt: $23,725,000 Operating: $386,816,000

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
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 Méndez Approved Form and Correctness Completed 07/16/2019 6:47 PM
Todd B. Hannon Meeting Pending 07/25/2019 9:00 AM
 City of Miami City Hall
3500 Pan American Drive
Legislation Miami, FL 33133
www.miamigov.com
Resolution
File Number: 6078 Final Action Date:

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 authorized1 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 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.