07-29-08 Item 22South Miami
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CITY OF SOUTH MIAMI
OFFICE OF THE CITY MANAGER
INTER - OFFICE MEMORANDUM 2001
To: The Honorable Mayor Feliu and Members of the City Commission
From: Ajibola W. Balogun, City Manager
Date: July 29, 2008 Agenda Item:
Subject: Tentative Millage Rate for FY 2008 -09
Request: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, RELATING TO THE CITY'S
2008/2009 FISCAL YEAR BUDGET; ADVISING THE MIAMI -DADE
COUNTY PROPERTY APPRAISER OF ITS PROPOSED MILLAGE RATE
OF 5.2790 MILLS; ITS ROLL -BACK RATE OF 4.6079, AND ITS ROLL-
BACK RATE ADJUSTED FOR CHANGE IN PER CAPITA FLORIDA
PERSONAL INCOME OF 4.7991 MILLS; ANNOUNCING THE DATES OF
PUBLIC HEARING TO CONSIDER THE PROPOSED MILLAGE RATE AND
TENTATIVE BUDGET; PROVIDING AN EFFECTIVE DATE.
BACKGROUND & ANALYSIS:
The procedures and timetables for taxation and the establishment of the Budget are governed by a
series of rules of the State of Florida. These rules are generally referred to as TRIM (Truth in
Millage). This resolution deals with the establishment of the maximum millage rate, rollback
millage rate, and scheduling formal budget public hearings in accordance with TRIM.
MAXIMUM MILLAGE RATE:
A primary source of revenue for municipal government is the property or ad valorem tax.
Property taxes, apply to commercial and residential real property and also for commercial
personal property. The rate at which property is taxed is referred to as the millage rate. The
amount of taxes paid by a property owner is determined by multiplying the millage rate times
each $1,000.00 of assessed property value.
Local jurisdictions are required, at the beginning of the budget process, to establish a maximum
millage rate. This rate will be advertised by the City and also delivered to the Miami -Dade
Property Appraiser. The rate can be decreased by the Commission during the budget process, but
it cannot be increased except under extraordinary circumstances. The proposed millage rate being
put forth at this time is 5.2790 mills.
The Miami -Dade County Property Appraiser has certified the Taxable Value within the City of
South Miami at $1,672,768,163. This valuation represents a 1.88 % increase over the
FY 2007 -08 level of $1,641,875,823.
It is important to highlight that while the total assessed value of property increased; this is not
reflected in an individual homeowner's assessment. Homeowners are taxed based on the assessed
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value of their home, not the appraised or fair market value of their home. State law protects
homeowners from rapidly increasing property values. The amount of the annual increase in
assessed value is limited to 3% for those homeowners with the Save Our Homes cap.
Homeowners who have owned their property for any length of the time are taxed at their assessed
value, which is much less than the fair market value of their home. The slight increase in the
overall assessment is due primarily to these factors: new construction, resale of existing homes,
increased value of commercial property and an increase in the homestead exemption. Commercial
property is not subject to the 3% cap. On the average a homeowner may see only a 1.88%
increase in the value of their home this past year; however those that do not have the Save Our
Homes cap may see a higher percentage increase.
It is therefore recommended that we begin the budget process with a proposed millage rate of
5.2790 mills. This level will allow this City to continue with on -going projects. The Commission
will still have the ability to re- consider the rate during the budget hearings.
Rollback Milla eg Rate
Cities are also required to calculate what is known as the "Rollback Millage Rate ". This is the tax
rate at which the City would receive the same revenue as in the previous year. In areas such as
South Miami where there has been an overall increase in the total assessed property value, the
rollback millage rate is lower. The rollback millage rate is 4.6079 and the rollback millage rate
adjusted for per capital Florida personal income for South Miami is 4.7991 mills.
Budget Hearing Schedule
The City is required to hold two formal Budget Public Hearings. There are guidelines on when
these hearings must be held. Additionally, a local municipality cannot hold a budget hearing on
the same date as either the County or the School Board. There are also special advertising
requirements for these hearings.
It is recommended, given these constraints, that the following schedule be established:
First Budget Hearing Tuesday September 9, 2008 City of South Miami City Hall
7:30 PM Commission Chambers
6130 Sunset Drive
South Miami, FL 33143
Second Budget Hearing Tuesday, September 23, 2008
7:30 PM
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City of South Miami City Hall
Commission Chambers
6130 Sunset Drive
South Miami, FL 33143
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RESOLUTION NUMBER:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO THE
CITY'S 2008/2009 FISCAL YEAR BUDGET; ADVISING THE
MIAMI -DADE COUNTY PROPERTY APPRAISER OF ITS
PROPOSED MILLAGE RATE OF 5.2790 MILLS; ITS ROLL -BACK
RATE OF 4.6079, AND ITS ROLL -BACK RATE ADJUSTED FOR
CHANGE IN PER CAPITA FLORIDA PERSONAL INCOME OF
4.7991 MILLS; ANNOUNCING THE DATES OF PUBLIC HEARING
TO CONSIDER THE PROPOSED MILLAGE RATE AND
TENTATIVE BUDGET; PROVIDING AN EFFECTIVE DATE.
WHEREAS, Florida Statute 200.065 requires; (1) that within 35 days of Certificate of Value; (2)
"each taxing authority shall advise the property appraiser of its proposed millage rate, of it rolled -back
rate computed pursuant to sub - section; (3) and of the date, time and place which a public hearing will be
held to consider the proposed millage rate and tentative budget "; and
WHEREAS, the Certification of Value was made on July 1, 2008; and
WHEREAS, the City Administration has computed the proposed millage rate and the rolled -
back rate; and
WHEREAS, the Mayor and City Commission wish to comply with the aforesaid Statute.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA:
Section 1: That the City Administration advises the property appraiser that the proposed
millage rate of City of South Miami, Florida for the 2008/2009 fiscal year budget is 5.2790 mills. The
rolled -back rate of 4.6079 and the rolled -back rate adjusted for per capita Florida personal income
computed pursuant to sub - section (1) of Florida Statute 200.065 is 4.7991 mills.
Section 2: That date, time and place at which public hearing shall be held to consider the
proposed millage rate are as follows:
1. First Budget Hearing- September 9, 2008 at 7:30 p.m., in the City Commission Chambers, 6130
Sunset Drive, South Miami, Florida.
2. Second Budget Hearing -, September 23, 2008 at 7:30 p.m., in the City Commission Chambers, 6130
Sunset Drive, South Miami, Florida.
PASSED AND ADOPTED this 29d' day of July, 2008.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
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APPROVED:
MAYOR
Commission Vote:
Mayor Feliu:
Vice Mayor Beasley.
Commissioner Wiscombe:
Commissioner Palmer:
Commissioner Beckman: