Alfredo Riverol, CPA, Cr.FA, CGFM, CGMA, Chief Financial Officer. July 19, 2016 Agenda Item: ~; Tentative Millage Rate for FY

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1 THE CITY OF PLEASANT I.IVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: From: Copy: Date: Subject: Request: The Honorable Mayor & Members of the City Commission Steven Alexander, City Manager Alfredo Riverol, CPA, Cr.FA, CGFM, CGMA, Chief Financial Officer July 19, 2016 Agenda Item: ~; Tentative Millage Rate for FY A Resolution of the City of South Miami, Florida, relating to the City's 2016/2017 fiscal year budget; advising the Miami-Dade County Property Appraiser of its proposed millage rate of mills; its rolled-back rate of mills and announcing the dates of public hearing to consider the proposed millage rate and tentative budget. BACKGROUND & ANALYSIS The procedures and timetables for establishing the taxation rate and the creation of the Budget are governed by the State of Florida. These rules are generally referred to as TRIM (Truth-in-Millage). This memo addresses the establishment of the maximum millage rate, rollback millage rate, and scheduling formal budget public hearings as required by the TRIM law. The Miami-Dade County Property Appraiser certified the Taxable Value within the City of South Miami at 1,692,410,228. This valuation represents a 7.75% increase from the FY level of 1,570,747,669. Maximum Millage Rate A primary source of revenue for municipal government is the property ad valorem tax, which is representative of the property taxes applied to commercial and residential real property and commercial personal property. The Miami Dade Property Appraiser sets this property valuation, not the City of South Miami. The rate at which property is taxed is referred to as the millage rate. The tax rate, or millage rate, is set by the City of South Miami. The amount of taxes paid by a property owner is determined by multiplying the millage rate times each 1,000 of assessable property taxable value. Local jurisdictions, including municipalities, are required, to establish a maximum millage rate during the budget process as required by Florida Statute which requires that within 35 days of receiving the Certificate of Value, (Certification of Value was made on July I, 2016) each taxing authority shall advise the property appraiser of its Page 1 of 6

2 proposed millage rate, its rolled-back rate computed pursuant to sub-section (I) and of the date, time and place when "a public hearing will be held to consider the proposed millage rate and tentative budget. This rate will be advertised by the City and also reported to the Miami-Dade Property Appraiser. The Commission can decrease the rate during the budget process, but it cannot be increased after the above date except under extraordinary circumstances at significant expense to the City. The proposed millage rate is mills, which is equivalent to the City's FY existing millage rate. At this point in the budget process the City is simply establishing a maximum millage rate for budget flexibility and advertising purposes. Therefore, the Mayor and Commission may elect to consider establishing a higher maximum millage rate, for instance, , which would generate additional estimated ad valorem revenue of 291,512; above the proposed millage rate. For every change of one-tenth of the millage rate, the ad valorem revenue generated is increased or decreased by an estimated 145,756. As per Miami-Dade County's 2016 preliminary average taxable homestead residential value report, the average taxable homestead residential value for South Miami is 211,259. Under the alternately suggested millage rate example of , using the Miami-Dade County's average taxable value, the average homesteaded residential taxpayer would incur an annual additional 87.31, which equals.23 cents a day, on their 2016 annual tax bill when compared to their 2015 annual tax bill. TAXING AGENCY City of South Miami FY 2016 MILLAGE FY 2017 MILLAGE As per the Miami-Dade County Preliminary Average Residential Values FY 2016 FY 2017 Average Homestead Residential Taxable Amount 200, ,259 Average Homestead Residential Tax Due FY FY Oiff Page 2 of 6

3 Adopting the current FY 2016 millage rate of as the FY 2017 millage rate would provide the City an estimated Ad Valorem revenue increase of 416,531 based on the increase in taxable value of property in the City. During the FY 2017 budget process, newly recommended budget items such as much needed parks improvements will require additional funds over last years budget and the Mayor and Commission may request special projects, new funding for educational alliances, purchase and or refurbish parks and other publicly owned properties and facilities, set new policies, and/or adopt newly negotiated labor agreements, which the additional estimated revenue will assist in funding. As mentioned above, the initial maximum millage rate, can be decreased by the Commission later during the budget process. Rolled-back Millage Rate Cities are also required to calculate what is known as the "Rolled-back Millage Rate." This is the calculated tax rate at which the City would receive the same ad valorem revenue as in the previous year, excluding current year new taxable values (New Construction, additions, etc.). The rolled-back millage rate for the City of South Miami is The City's current millage rate of represents a 7.27% increase over the rolled-back rate. If the City were to adopt the rolled-back rate of , the City's estimated Ad Valorem revenue would decrease by an estimated 424,732 when compared to the City's proposed FY 2017 Ad Valorem revenue estimate. Page 3 of 6

4 Please find the Millage Calculation table below. MILLAGE CALCULATION COMPARISON (PROPOSED) MILLAGE RATE REAL PROPERTY TAXABLE VALUE PERSONAL PROPERTY TAXABLE VALUE TOTAL TAXABLE VALUE (REAL AND PERSONAL PROPERTY) AD VALOREM REVENUE 95% OF TAXABLE VALUE (TO ALLOW FOR DELETIONS & DELINQUENCIES) ,500,767,136 69,980,533 1,570,747,669 6,754,215 6,416,504,",:" <'>. ';>-c;-,>",", % 1,624,995, % 67,414, % 1,692,410, % 7,277, ,149 6,913, ,992 DEDICATED TAX INCREMENT AMOUNT -551, ,530 80,461 MILLAGE CALCULATION (ROLLED-BACK) MILLAGE RATE REAL PROPERTY TAXABLE VALUE PERSONAL PROPERTY TAXABLE VALUE TOTAL TAXABLE VALUE (REAL AND PERSONAL PROPERTY) AD VALOREM REVENUE 95% OF TAXABLE VALUE (TO ALLOW FOR DELETIONS & DELINQUENCIES) DEDICATED TAX INCREMENT AMOUNT ,500,767,136 69,980,533 1,570,747,669 6,754,215 6,416, % 1,624,995, % 67,414, % 1,692,410, % 6,784,196 29,981 6,444,986 28, ,752 36,683 DIFFERENCE -424,732 Page 4 of 6

5 Below please find a detail breakdown of the City's 2016 taxable values and 2015 taxable values by property type. SINGLE FAMILY 2, ,610,489 2, ,679,917 CONDOMINIUM ,746, ,890,351 MULTI FAMILY ,775, ,697,391 COMMERCIAL ,307, ,170,280 INDUSTRIAL 27 10,692, ,745,215 AGRICULTURE I 600, ,528 VACANT LAND ,558, ,244,793 INSTITUTIONAL 36 9,995, ,106,876 GOVERNMENTAL , ,303 OTHER PROPERTIES 13 1,788,718 II 1,724,482 REAL ESTATE PARCELS 4,701 1,624,995,959 4,695 1,500,767,136 PERS PROP & CENT ASSD 67,414,269 69,980,533 ALL ASSESSED PROPERTY 1,692,410,228 1,570,747,669 This increase is attributable to signs of the economy stabilizing. The City experienced an overall assessed real property value increase of 124,228,823 or 8.28%. This total is slightly higher than the actual taxable value as it does not include deductions for homestead exemptions etc. Tangible Personal Property assessed values decreased by 2,566,264 or 3.67%. Tangible Personal Property (TPP) consists of all property that is not real estate (land, buildings and improvements). It includes furniture, fixtures, tools, computer equipment, machinery, office equipment, supplies, leasehold improvements, leased equipment, signage, and any other equipment used in a business. Furniture and fixtures used in a rental unit (condo, apt, house) are also taxable in this category. Increase in property valuations specifically from construction within the current 2016 year is 19,220,450 which represents an increase from the previous year of 9,485,907 or 97.45%. The Administration recommends a proposed millage rate of at least mills. This millage rate will allow the City to continue with regular necessary services, operations and on-going projects without an increase in tax rate. Whatever rate the Commission sets at this time will be the highest possible rate for this coming fiscal year. The Commission will be able to re-consider the rate during the FY 16 budget hearings in September of 2016 only for rates lower than what is set tonight. Page 5 of 6

6 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 budget hearings. There are also special advertising requirements for these hearings. With the aforementioned constraints it is recommended that our previously proposed schedule be revised and the following schedule be established: It is recommended that the Budget Workshop be scheduled as follows: Budget Workshop Monday, August 15, :00 AM City of South Miami City Hall Commission Chambers 6130 Sunset Drive South Miami, FL Additionally, the required budget hearings are proposed for the following dates: First Budget Hearing Thursday September I, :00 PM Second Budget Hearing Thursday, September 15, :00 PM City of South Miami City Hall Commission Chambers 6130 Sunset Drive South Miami, FL City of South Miami City Hall Commission Chambers 6130 Sunset Drive South Miami, FL Attachments - Proposed Resolution - DR-420, 420TIF, & 420MM-P (DRAFTS) Tax Roll by Property Type Year-to-Year-Comparison Preliminary Tax Roll by Taxing Authority Preliminary Senior Exemption - Miami-Dade County Preliminary Average Taxable Homestead Residential Value Page 6 of 6

7 1 RESOLUTION NUMBER: 2 A Resolution of the City of South Miami, Florida, relating to 3 the City's 2016/2017 fiscal year budget; advising the Miami- 4 Dade County Property Appraiser of its proposed millage rate 5 of mills; its rolled-back rate of mills, and 6 announcing the dates of public hearing to consider the 7 proposed millage rate and tentative budget. 8 WHEREAS, Florida Statute requires that within 35 days of receiving 9 the Certificate of Value, each taxing authority shall advise the property appraiser of its 10 proposed millage rate, its rolled-back rate computed pursuant to sub-section (I) and of 11 the date, time and place when, a public hearing will be held to consider the proposed 12 millage rate and tentative budget; and 13 WHEREAS, the Certification of Value was made on July 1,2016; and 14 WHEREAS, the City's Administration computed the proposed millage rate 15 and the rolled-back rate; and 16 WHEREAS, the Mayor and City Commission wish to comply with the 17 aforesaid Statute. 18 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND 19 CITY COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA THAT: 20 Section I. The City Administration shall advise the property appraiser that 21 the proposed millage rate of the City of South Miami, Florida for the fiscal 22 year budget is mills which is a 7.27% increase over the rolled back rate and that 23 the rolled-back rate computed pursuant to sub-section (I) of Florida Statute is mills. 25 Section 2. The date, time, and place of the first and second public budget 26 hearings shall be held to consider the proposed millage rate and budget are as follows: 27 First Budget Hearing, September I, 2016 at 7:00 p.m., in the City Commission 28 Chambers, 6130 Sunset Drive, South Miami, Florida. 29 Second Budget Hearing, September 15, 2016 at 7:00 p.m., in the City 30 Commission Chambers, 6130 Sunset Drive, South Miami, Florida. 31 Section 3. Severability. If any section clause, sentence, or phrase of this 32 resolution is for any reason held invalid or unconstitutional by a court of competent 33 jurisdiction, the holding shall not affect the validity of the remaining portions of this 34 resolution Section 4. Effective Date. This resolution shall become effective 37 immediately upon adoption by vote of the City Commission. Page I of 2

8 38 39 PASSED AND ADOPTED this day of, ATTEST: APPROVED: CITY CLERK MAYOR READ AND APPROVED AS TO FORM, COMMISSION VOTE: 49 LANGUAGE, LEGALITY AND Mayor Stoddard: 50 EXECUTION THEREOF Vice Mayor Welsh: 51 Commissioner Edmond: 52 Commissioner Harris: 53 CITY ATTORNEY Commissioner Liebman: Page 2 of 2

9 FLORIDA CERTIFICATION OF TAXABLE VALUE 1[;,'[~l~B~~~~'~2'~WJ;1[Sil Ij~f11~1;,~lrn~Ec;rro~f~~~iJ DR-420 R. 5/12 Rule 12D Florida Administrative Code Effective 11/12 Year: 2016 County: MIAMI-DADE Principal Authority: CITY OF SOUTH MIAMI Taxing Authority: CITY OF SOUTH MIAMI SECTION I: COMPLETED BY PROPERTY APPRAISER 1. Current year taxable value of real property for operating purposes 2. Current year taxable value of personal property for operating purposes 3. Current year taxable value of centrally assessed property for operating purposes 4. Current year gross taxable value for operating purposes (Line 1 plus Line 2 plus Line 3) Current year net new taxable value (Add new construction, additions, rehabilitative 5. improvemellts increasing assessed value by at least 100%, annexations, and tangible personal property value over 115% of the previous year's value. Subtract deletions.) 1,624,995,959 (1 ) 67,414,269 (2) 0 (3) 1,692,410,228 (4) 19,220,450 (5) 6. Current year adjusted taxable value (Line 4 minus Line 5) 7. Prior year FINAL gross taxable value from prior year applicable Form DR-403 series 8. Does the taxing authority include tax increment financing areas? If yes, enter number of worksheets (DR-420TIF) attached. If none, enter 0 Does the taxing authority levy a voted debt service millage or a millage voted for 2 9. years or less under s. 9(b), Article VII, State Constit'ution? If yes, enter the number of DR-420DEBT, Certification of Voted Debt Mil/age forms attached. If none, enter 0 Property Appraiser Certification SIGN Signature of Property Appraiser: HERE Electronically Certified by Property Appraiser SECTION II : COMPLETED BY TAXING AUTHORITY [Z] YES DYES D NO 1,673,189,778 (6) 1,547,922,617 (7) Number 1 (8) Number [Z] NO (9) 0 II certify the taxable values above are correct to the best of my knowledge. Date: 7/1/201610:15 AM If this portion of the form is not completed in FULL your taxing authority will be denied TRIM certification and possibly lose its millage levy privilege for the tax year. If any line is not applicable, enter -0-. Prior year operating millage levy (If prior year mil/age was adjusted then use adjusted per 1,000 (10) mil/age from Form DR-422) 11. Prior year ad valorem proceeds (Line 7 multiplied by Line 10, divided by 1,000) 6,656,067 (11 ) 12. Amount, if any, paid or applied in prior year as a consequence of an obligation measured by a dedicated increment value (Sum of either Lines 6c or Line 70 for all DR-420TlF forms) 551,069 (12) 13. Adjusted prior year ad valorem proceeds (Line 11 minus Line 12) 6,104,998 (13) 14. Dedicated increment value, if any (Sum of either Line 6b or Line 7e for all DR-420TIF forms) 150,231,959 (14) 15. Adjusted current year taxable value (Line 6 minus Line 14) 1,522,957,819 (15) 16. Current year rolled-back rate (Line 13 divided by Line 15, multiplied by 1,000) per1000 (16) 17. Current year proposed operating millage rate per 1000 (17) 18. Total taxes to be levied at proposed millage rate (Line 17 multiplied by Line 4, divided by 1,000) 7,277,364 (18) Continued on page 2

10 DR-420 R.5/12 Page TYPE of principal authority (check one) D County D Independent Special District (19) [{] Municipality Water Management District 20. Applicable taxing authority (check one) [{] Principal Authority D Dependent Special District (20) D MSTU D Water Management District Basin 21. Is millage levied in more than one county? (check one) DYes [{] No (21) 22 Enter the total adjusted prior year ad valorem proceeds of the principal authority, all. dependent special districts, and MSTUs levying a millage. (The sum of Line 13 from all DR-420 forms) 6,104,998 (22) 23. Current year aggregate rolled-back rate (Line 22 divided by Line 15, multiplied by 1(000) per 1,000 (23) 24. Current year aggregate rolled-back taxes (Line 4 multiplied by Line 23, divided by 1(000) 6,784,196 (24) Enter total of all operating ad valorem taxes proposed to be levied by the principal 25. taxing authority, all dependent districts, and MSTUs, if any. (The sum of Line 18 from all DR-420 forms) 7,277,364 (25) 26. rrent year proposed aggregate millage rate (Line 25 divided by Line 4, multiplied 1,000) per 1,000 (26) 27. Current year proposed rate as a percent change of rolled-back rate (Line 26 divided by 23, minus 1, multiplied by 100) 7.27 % (27) First public budget hearing Date: Time: Place: S I G N H E R E Taxing Authority Certification Signature of Chief Administrative Officer: Title: STEVEN ALEXANDER, CITY MANAGER Mailing Address: 6130 SUNSET DR City, State, Zip: SOUTH MIAMI, FL I certify the millages and rates are correct to the best of my knowledge. The millages comply with the provisions of s and the provisions of either s or s , F.5. Date: Contact Name and Contact Title: ALFREDO RIVEROL, CHIEF FINANCIAL OFFICER Physical Address: 6130 SUNSET DRIVE Phone Number: Fax Number: Instructions on page 3

11 CERTIFICATION OF TAXABLE VALUE INSTRUCTIONS DR-420 R. 5/12 Page 3 "Principal Authority" is a county, municipality, or independent special district (including water management districts). "Taxing Authority" is the entity levying the millage. This includes the principal authority, any special district dependent to the principal authority, any county municipal service taxing unit (MSTU), and water management district basins. Each taxing authority must submit to their property appraiser a DR-420 and the following forms, as applicable: Section I: Property Appraiser DR-420TIF, Tax Increment Adjustment Worksheet DR-420DEBT, Certification of Voted Debt Millage DR-420MM-P, Maximum Millage Levy Calculation - Preliminary Disclosure Use this DR-420 form for all taxing authorities except school districts. Complete Section I, Lines 1 through 9, for each county, municipality, independent special district, dependent special district, MSTU, and multicounty taxing authority. Enter only taxable values that apply to the taxing authority indicated. Use a separate form for the principal authority and each dependent district, MSTU and water management district basin. Line 8 Complete a DR-420TIF for each taxing authority making payments to a redevelopment trust fund under Section (2)(a), Florida Statutes or by an ordinance, resolution or agreement to fund a project or to finance essential infrastructure. Check "Yes" if the taxing authority makes payments to a redevelopment trust fund. Enter the number of DR-420TIF forms attached for the taxing authority on Line 8. Enter 0 if none. Line 9 Complete a DR-420DEBT for each taxing authority levying either a voted debt service millage (s.12, Article VII, State Constitution) or a levy voted for two years or less (s. 9(b), Article VII, State Constitution). Check "Yes" if the taxing authority levies either a voted debt service millage or a levy voted for 2 years or less (s. 9(b), Article VII, State Constitution). These levies do not include levies approved by a voter referendum not required by the State Constitution. Complete and attach DR-420DEBT. Do not complete a separate DR-420 for these levies. Send a copy to each taxing authority and keep a copy. When the taxing authority returns the DR-420 and the accompanying forms, immediately send the original to: Florida Department of Revenue Property Tax Oversight - TRIM Section P. O. Box 3000 Tallahassee, Florida Section II: Taxing Authority Complete Section II. Keep one copy, return the original and one copy to your property appraiser with the applicable DR-420TIF, DR-420DEBT, and DR-420MM-P within 35 days of certification. Send one copy to the tax collector. "Dependent special district" (ss (8)(d) and (2), F.S.) means a special district that meets at least one of the following criteria: The membership of its governing body is identical to that of the governing body of a single county or a single municipality. All members of its governing body are appointed by the governing body of a single county or a single municipality. During their unexpired terms, members of the special district's governing body are subject to removal at will by the governing body of a single county or a single municipality. The district has a budget that requires approval through an affirmative vote or can be vetoed by the governing body of a Single county or a single municipality. "Independent special district" (ss (8)(e) and (3), F.S.) means a special district that is not a dependent special district as defined above. A district that includes more than one county is an independent special district unless the district lies wholly within the boundaries of a single municipality. "Non-voted millage" is any millage not defined as a "voted millage" in s (8)(f), F.S. Lines 12 and 14 Adjust the calculation of the rolled-back rate for tax increment values and payment amounts. See the instructions for DR-420TIF. On Lines 12 and 14, carry forward values from the DR-420TIF forms. Line 24 Include only those levies derived from millage rates. All TRIM forms for taxing authorities are available on our website at do r Iproperty/tri m

12 FLORIDA MAXIMUM MILLAGE LEVY CALCULATION PRELIMINARY DISCLOSURE For municipal governments, counties, and special districts 1~;[!3~s~f~9Yfuj;;Z 1 Irirz!?J,fQtlig~rniK!;1 DR-420MM-P R. S/12 Rule 12D Florida Administrative Code Effective 11 /12 Year: 2016 County: MIAMI-DADE Principal Authority: CITY OF SOUTH MIAMI Taxing Authority: CITY OF SOUTH MIAMI Is your taxing authority a municipality or independent special district that has levied Yes No (1 ) 1. ad valorem taxes for less than 5 years? ~ ~ L- ~ ~ D IF YES, STOP HERE. SIGN AND SUBMIT. You are not subject to a millage limitation. 2. Current year rolled-back rate from Current Year Form DR-420, Line per 1,000 (2) 3. Prior year maximum millage rate with a majority vote from 2015 Form DR-420MM, Line per 1,000 (3) 4. Prior year operating millage rate from Current Year Form DR-420, Line per 1,000 (4) Adjust rolled-back rate based on prior year majority-vote maximum millage rate 5. Prior year final gross taxable value from Current Year Form DR-420, Line 7 Prior year maximum ad valorem proceeds with majority vote 6. (Line 3 multiplied by Line 5 divided by 1,000) nt, if any, paid or applied in prior year as a consequence of an obligation 7. measured by a dedicated increment value from Current Year Form DR-420 Line Adjusted prior year ad valorem proceeds with majority vote (Line 6 minus Line 7) 9. Adjusted current year taxable value from Current Year form DR-420 Line Adjusted current year rolled-back rate (Line 8 divided by Line 9, multiplied by 1,000) Calculate maximum millage levy 11 Rolled-back rate to be used for maximum millage levy calculation. (Enter Line 10 if adjusted or else enter Line 2) 12. Adjustment for change in per capita Florida personal income (See Line 12 Instructions) 1,547,922,617 (5) 8,258,477 (6) 0 (7) 8,258,477 (8) 1,673,189,778 (9) per 1,000 (10) per 1,000 (11 ) (12) 13. Majority vote maximum millage rate allowed (Line 11 multiplied by Line 12) 14. Two-thirds vote maximum millage rate allowed (Multiply Line 13 by 1.10) 15. Current year proposed millage rate per 1,000 per 1,000 per 1,000 (13) (14) (15) 16. Minimum vote required to levy proposed millage: (Check one) (16) r71 a. Majority vote governing ere Line 15 is than or equal to Line 13. The maximum millage rate is equal L..U to the majority vote maximum rate. Enter Line 13 on Line 17. O D vote governing Check if Line 15 is less than or equal to Line 14, but greater than Line 13. The maximum millage rate is to rate. Enter Line 15 on Line 17. c. Unanimous vote of the governing body, or 3/4 vote if nine members or more: Check here if Line 15 is greater than Line 14. The maximum millage rate is equal to the proposed rate. Enter Line 15 on Line 17. o d. Referendum: The maximum millage rate is equal to the proposed rate. Enter Line 15 on Line selection on Line 16 allows a maximum millage rate of. (Enter rate indicated by choice on Line 16) per 1,000 (17) 18. Current year gross taxable value from Current Year Form DR-420, Line 4 1,692,410,228 (18) Continued on page 2

13 Taxing Authority: CITY OF SOUTH MIAMI 19. Current year proposed taxes (Line 15 multiplied byline 18,divided by 1,000) 20 Total taxes levied at the maximum millage rate (Line 17 multiplied by Line 18, divided by 1,000) 7,277, Enter the current year proposed taxes of all dependent special districts & MSTUs levying a millage. (The sum of al/ Lines 19 from each district's Form DR-420MM-P) o (21) current year proposed taxes (Line 19 plus Line 21) 7,277,364 (22) Total Maximum Taxes 23 Enter the taxes at the maximum millage of all dependent special districts & MSTUs levying a millage (The sum of al/ Lines 20 from each district's Form DR-420MM-P) o (23) 24. I taxes at maximum millage rate (Line 20 plus Line 23) 8,666,664 (24) Total Maximum Versus Total Taxes Levied 25 Are total current year proposed taxes on Line 22 equal to or less than total taxes at the f7l YES maximum millage rate on Line 24? (Check one) L.Y.J o NO 5 I G N H E R E Taxing Authority Certification Signature of Chief Administrative Officer: Title: STEVEN ALEXANDER, CITY MANAGER Mailing Address: 6130 SUNSET DR I certify the millages and rates are correct to the best of my knowledge. The millagf;!s comply with the provisions of s and the provisions of either s or s F.5. Date: Contact Name and Contact Title: ALFREDO RIVEROL, CHIEF FINANCIAL OFFICER PhYSical Address: 6130 SUNSET DRIVE (25) City, State, Zip: SOUTH MIAMI, FL Phone Number: Fax Number: Complete and submit this form DR-420MM-P, Maximum Millage Levy Calculation-Preliminary Disclosure, to your property appraiser with the form DR-420, Certification of Taxable Value. Instructions on page 3

14 MAXIMUM MILLAGE LEVY CALCULATION PRELIMINARY DISCLOSURE INSTRUCTIONS DR-420MM-P R. 5/12 Page 3 General Instructions Each of the following taxing authorities must complete a DR-420MM-P. County. Municipality Special district dependent to a county or municipality County MSTU Independent special district, including water management districts Water management district basin Voting requirements for millages adopted by a two-thirds or a unanimous vote are based on the full membership of the governing body, not on the number of members present at the time of the vote. This form calculates the maximum tax levy for 2016 allowed under s (5), F.5. Counties and municipalities, including dependent special districts and MSTUs, which adopt a tax levy at the final hearing higher than allowed under s , F.5., may be subject to the loss of their half-cent sales tax distribution. DR-420MM-P shows the preliminary maximum millages and taxes levied based on your proposed adoption vote. Each taxing authority must complete, sign, and submit this form to their property appraiser with their completed DR-420, Certification of Taxable Value. The vote at the final hearing and the resulting maximum may change. After the final hearing, each taxing authority will file a final Form DR-420MM, Maximum Millage Levy Calculation Final Disclosure, with Form DR-487, Certification of Compliance, with the Department of Revenue. Specific tax year references in this form are updated each year by the Department. Line Instructions Lines 5-10 Only taxing authorities that levied a 2015 millage rate less than their maximum majority vote rate must complete these lines. The adjusted rolled-back rate on Line lois the rate that would have been levied if the maximum vote rate for 2015 had been adopted. If these lines are completed, enter the adjusted rate on Line 11. Line 12 This line is entered by the Department of Revenue. The same adjustment factor is used statewide by all taxing authorities. It is based on the change in per capita Florida personal income (s (8)0), F.5.), which Florida Law requires the Office of Economic and Demographic Research to report each year. Lines 13 and 14 Millage rates are the maximum that could be levied with a majority or two-thirds vote of the full membership of the governing body. With a unanimous vote of the full membership (three-fourths vote of the full membership if the governing body has nine or more members) or a referendum, the maximum millage rate that can be levied is the taxing authority's statutory or constitutional cap. Line 16 Check the box for the minimum vote necessary at the final hearing to levy your adopted millage rate. Line 17 Enter the millage rate indicated by the box checked in Line 16. If the proposed millage rate is equal to or less than the majority vote maximum millage rate, enter the majority vote maximum. If a two-thirds vote, a unanimous vote, or a referendum is required, enter the proposed millage rate. For a millage requiring more than a majority vote, the proposed millage rate must be entered on Line 17, rather than the maximum rate, so that the comparisons on Lines 21 through 25 are accurate. All TRIM forms for taxing authorities are available on our website at /property/trim

15 II FLORIDA TAX INCREMENT ADJUSTMENT WORKSHEET DR-420TIF R. 6/10 Rule 12D Florida Administrative Code Effective 11/12 Year: 2016 County: MIAMI-DADE Principal Authority: Taxing Authority : CITY OF SOUTH MIAMI CITY OF SOUTH MIAMI Community Redevelopment Area: SOUTH MIAMI CRA Base Year: <''''' T.r,r.'I: COMPLETED BY PROPERTY APPRAISER Current year taxable value in the tax increment area Base year taxable value in the tax increment area rrent year tax increment value (Line 7 minus Line 2) 4. Prior year Final taxable value in the tax increment area 5. Prior year tax increment value (Line 4 minus Line 2) SIGN HERE Property Appraiser Certification Signature of Property Appraiser : Electronically Certified by Property Appraiser 368,901,307 (1) 68,437,390 (2) 300,463,917 (3) 340,554,159 (4) 272,116,769 (5) I certify the taxable values above are correct to the best of my knowledge. Date: 7/1/201610:15 AM 6. If the amount to be paid to the redevelopment trust fund IS BASED on a specific proportion of the tax increment value: Enter the proportion on which the payment is based. Dedicated increment value (Line 3 multiplied by the percentage on Line 6a) If value ;s zero or less than zero, then enter zero on Line 6b % (6a) 150,231,959 (6b) Amount of payment to redevelopment trust fund in prior year 551,069 (6c) 7. If the amount to be paid to the redevelopment trust fund IS NOT BASED on a specific proportion of the tax increment value: 7a. Amount of payment to redevelopment trust fund in prior year 0 (7a) 7b. Prior year operating millage levy from Form DR-420, Line per 1,000 (7b) 7c. Taxes levied on prior year tax increment value 0 (7c) 5 multiplied by Line lb, divided by 7,000) 7d. Prior year payment as proportion of taxes levied on increment value 0.00 % (7d) ine 7a divided by Line 7c, multiplied by 700) 7e Dedicated increment value (Line 3 multiplied by the percentage on Line 7d) 0 (7e) If value is zero or less than zero, then enter zero on Line le 5 I G N Authority Certification Signature of Chief Administrative Officer: Title: STEVEN ALEXANDER, CITY MANAGER I certify the calculations, mijiages and rates are correct to the best of my knowledge. Date: Contact Name and Contact Title: ALFREDO RIVEROL, CHIEF FINANCIAL OFFICER H E R E Mailing Address: 6130 SUNSET DR City, State, Zip: PhYSical Address: 6130 SUNSET DRIVE Phone Number: Fax Number: SOUTH MIAMI, FL

16 TAX INCREMENT ADJUSTMENT WORKSHEET INSTRUCTIONS DR-420TIF R.6/10 Page 2 Property appraisers must complete and sign Section I of this worksheet and provide it with form DR-420, Certification of Taxable Value, to all taxing authorities who make payments to a redevelopment trust fund under: s (2)(a), Florida Statutes, or An ordinance, resolution, or agreement to fund a project or to finance essential infrastructure. "Tax increment value" is the cumulative increase in taxable value from the base year to the current year within the defined geographic area. It is used to determine the payment to a redevelopment trust fund under: s (1), F.S. or An ordinance, resolution, or agreement to fund a project or finance essential infrastructure. In this case, the taxing authority must certify the boundaries and beginning date to the property appraiser. "Dedicated increment value" is the portion of the tax increment value used to determine the payment to the redevelopment trust fund. (See s (8)(h), F.S.) Calculate the dedicated increment value on this form and enter on either Line 6b or Line 7e. "Specific proportion," used to determine whether to complete Line 6 or Line 7, refers to the calculation of the tax increment payment. Examples: Example 1. Section (1), F.S., states the payment made by the taxing authority should equal 95% of the millage levied times the tax increment value. The specific proportion in this case is 95%. The ordinance providing for the payment may set a percentage lower than 95%. In these cases, the lower percentage would be the specific proportion. Example 2. Some required tax increment payments are not directly related to the tax increment value. A constant dollar payment is a payment not based on a specific proportion of the tax increment value. Line 7 converts these payments into a proportion based on the prior year's payment and tax increment value to reach the current year's dedicated increment value. Section I: Property Appraiser A. Complete Section I of this form for each county, municipality, independent special district, dependent special district, and MSTU that: Has a tax increment value and Is not exempted from making payments to a community redevelopment trust fund based on tax increments (s (2)(c), F.S.). If a taxing authority has more than one tax increment value, they must complete a separate form for each tax increment value. Send a copy to each taxing authority with the DR-420 and keep a copy. When the taxing authority returns the completed forms, immediately send the original to: Florida Department of Revenue Property Tax Oversight Program - TRIM Section P. O. Box 3000 Tallahassee, Florida B. Enter only tax increment values that apply to the value located within the taxing authority indicated. Section II: Taxing Authority Complete Section II of the form, keep one copy, and return the original and one copy to your property appraiser with DR-420 within 35 days of certification. Send one copy to your tax collector. Additional Instructions for Lines 6 and 7 Complete Line 6 if the payment into the redevelopment trust fund is a specific proportion of the tax increment value. Complete Line 7 if the payment is based on a calculation other than a specific proportion. Do not complete both Lines 6 and 7. All TRIM forms for taxing authorities are available on our website at /property/trim

17 MIAMI-DADE COUNTY PROPERTY APPRAISER 2016 ASSESSMENT ROLL CHANGE BY PROPERTY TYPE JULY 1, City of South Miami Preliminary Assessment Roll Values and 2015 Comparison PRELIMINARY VALUES 2016 PRELIMINARY VALUES TAXABLE PROPERTY TYPE COUNT JUST VALUE TAXABLE VALUE JUST VALUE TAXABLE VALUE VALUE DIFF PCT NEW CONS SINGLE FAMILY 2,848 1,143,509, ,679,917 1,288,819, ,610,489 53,930, % 8,205,097 CONDOMINIUM ,836,292 96,890, ,702, ,746,617 8,856, % 0 MULTI FAMILY ,832, ,697, ,206, ,775,311 9,077, % -22,063 COMMERCIAL ,680, ,170, ,570, ,307,260 47,136, % 11,914,178 INDUSTRIAL 27 12,557,699 10,745,215 12,687,768 10,692,098-53, % 0 AGRICULTURE 1 1,202, ,528 1,214, ,025 4, % 0 VACANT LAND ,169,423 43,244,793 60,451,208 49,558,443 6,313, % -876,762 INSTITUTIONAL 36 99,110,237 11,106, ,659,717 9,995,242-1,111, % 0 GOVERNMENTAL ,155, , ,169, ,756 9, % 0 OTHER PROPERTIES 13 2,917,578 1,724,482 3,182,914 1,788,718 64, % 0 REAL ESTATE PARCELS 4,701 2,255,971,488 1,500,767,136 2,493,663,631 1,624,995, ,228, % 19,220,450 PERS PROP & CENT ASSD 120,908,612 69,980, ,581,245 67,414,269-2,566, % 0 ALL ASSESSED PROPERTY 2,376,880,100 1,570,747,669 2,611,244,876 1,692,410, ,662, % 19,220,450 Page 1 of 5

18 MIAMI-DADE COUNTY PROPERTY APPRAISER 2016 AND 2015 PRELIMINARY ROLL COMPARISION JULY 1,2016 e ",.., ". ~~.! 2016 PRELIMINARY ASSESSMENT ROLL VALUES 2015 PRELIMINARY ASSESSMENT ROLL VALUES PERS PROP GROSS PERS PROP GROSS CHANGE IN TAXING AUTHORITY REAL PROPERTY & CENT ASSD TAXABLE REAL PROPERTY & CENT ASSD TAXABLE GROSS TAXABLE PCT CITY OF MIAMI 42,460,638,698 2,141,666,844 44,602,305,542 37,805,289,621 2,097,769,007 39,903,058,628 4,699,246, % DOWNTOWN DEV AUTHORITY 15,674,018,974 1,007,727,770 16,681,746,744 14,118,964,218 1,011,832,785 15,130,797,003 1,550,949, % CITY OF MIAMI BEACH 34,023,340, ,416,552 34,697,757,108 30,106,660, ,230,611 30,697,890,865 3,999,866, % NORMANDY SHORES 176,036,741 23, ,059, ,182,984 28, ,211,486 22,848, % CITY OF CORAL GABLES 14,091,791, ,340,793 14,389,132,612 13,395,162, ,441,249 13,692,603, ,528, % CITY OF HIALEAH 7,973,545, ,103,825 8,533,649,696 7,304,727, ,056,552 7,858,784, ,865, % CITY OF MIAMI SPRINGS 983,845,220 66,910,916 1,050,756, ,199,989 68,540, ,740,313 65,015, % CITY OF NORTH MIAMI 2,499,306, ,128,498 2,603,435,134 2,288,960, ,216,287 2,393,176, ,258, % CITY OF NORTH MIAMI BEACH 2,216,751, ,168,222 2,330,919,734 1,882,680, ,906,861 2,000,586, ,332, % CITY OF OPA-LOCKA 644,599, ,930, ,530, ,351, ,223, ,574,642 47,955, % CITY OF SOUTH MIAMI 1,624,995,959 67,414,269 1,692,410,228 1,500,767,136 69,980,533 1,570,747, ,662, % CITY OF HOMESTEAD 2,214,266, ,246,733 2,316,513,457 2,034,528, ,781,196 2,138,309, ,203, %. MIAMI SHORES VILLAGE 953,506,766 21,289, ,796, ,336,926 21,292, ,629,076 73,166, % BAL HARBOUR VILLAGE 4,359,102,006 74,629,553 4,433,731,559 4,185,426,480 63,878,520 4,249,305, ,426, % TOWN OF BAY HARBOR ISLANDS 868,025,758 12,085, ,111, ,830,207 12,235, ,065, ,045, % TOWN OF SURFSIDE 1,667,936,911 21,502,427 1,689,439,338 1,476,296,054 26,459,166 1,502,755, ,684, % CITY OF WEST MIAMI 354,760,924 13,388, ,149, ,842,011 14,155, ,997,089 48,152, % CITY OF FLORIDA CITY 418,452,818 42,036, ,489, ,718,163 39,245, ,963,258 31,526, % VILLAGE OF BISCAYNE PARK 173,959,686 2,934, ,894, ,065,969 2,962, ,028,696 16,865, % VILLAGE OF EL PORTAL 127,275,137 2,555, ,830, ,358,210 2,850, ,208,577 15,622, % TOWN OF GOLDEN BEACH 951,123,889 1,440, ,564, ,150,872 1,298, ,449, ,114, % VILLAGE OF PINECREST 4,336,413,371 44,457,478 4,380,870,849 4,067,033,383 45,547,883 4,112,581, ,289, % VILLAGE OF INDIAN CREEK 545,631,449 2,355, ,987, ,403,917 2,670, ,074,351 45,912, % TOWN OF MEDLEY 1,722,353, ,753,035 1,986,106,744 1,616,098, ,189,603 1,862,288, ,818, % NORTH BAY VILLAGE 940,606,975 19,100, ,707, ,392,317 18,926, ,318, ,388, % VILLAGE OF KEY BISCAYNE 8,301,046,460 38,238,417 8,339,284,877 7,685,508,851 36,239,673 7,721,748, ,536, % CITY OF SWEETWATER 1,426,972, ,701,569 1,557,673,900 1,310,902, ,887,643 1,441,790, ,883, % VILLAGE OF VIRGINIA GARDENS 157,643,620 85,421, ,065, ,474,810 94,793, ,268, , % CITY OF HIALEAH GARDENS 1,016,202,244 75,220,837 1,091,423, ,445,022 69,719,485 1,018,164,507 73,258, % CITY OF AVENTURA 9,684,956, ,738,181 9,901,694,244 8,886,506, ,455,823 9,094,962, ,732, % CITY OF SUNNY ISLES BEACH 10,052,213,804 59,215,091 10,111,428,895 8,903,669,516 56,137,709 8,959,807,225 1,151,621, % TOWN OF MIAMI LAKES 2,641,474, ,127,973 2,809,602,232 2,528,509, ,587,214 2,691,096, ,505, % VILLAGE OF PALMETTO BAY 2,595,484,645 64,232,714 2,659,717,359 2,487,696,292 63,616,901 2,551,313, ,404, % CITY OF MIAMI GARDENS 3,473,585, ,917,093 3,840,502,830 3,247,030, ,205,808 3,586,236, ,266, % CITY OF DORAL 10,435,319, ,633,040 11,134,952,688 9,479,050, ,898,947 10,155,949, ,002, % TOWN OF CUTLER BAY 2,168,759,157 66,079,129 2,234,838,286 2,014,582,388 66,622,226 2,081,204, ,633, % COUNTY OPERATING 238,094,420,032 13,242,591, ,337,011, ,526,526,544 12,902,664, ,429,191,490 20,907,819, % MUNICIPAL SERVICE AREA 60,102,565,525 6,510,904,229 66,613,469,754 56,065,362,185 6,381,809,882 62,447,172,067 4,166,297, % FIRE & RESCUE 131,340,968,487 9,530,825, ,871,793, ,330,869,127 9,325,927, ,656,796,981 10,214,996, % LIBRARY 218,530,407,766 12,346,769, ,877,177, ,851,596,201 12,002,619, ,854,215,994 20,022,961, % SO FL WATER MGMT DlST 240,094,561,275 13,242,591, ,337,152, ,576,939,832 12,902,664, ,479,604,778 20,857,547, % EVERGLADES CONSTR PROJECT 240,094,561,275 13,242,591, ,337,152, ,576,939,832 12,902,664, ,479,604,778 20,857,547, % OKEECHOBEE BASIN 240,094,561,275 13,242,591, ,337,152, ,576,939,832 12,902,664, ,479,604,778 20,857,547, % FL INLAND NAVIGATION DIST 240,094,561,275 13,242,591, ,337,152, ,576,939,832 12,902,664, ,479,604,778 20,857,547, % CHILDREN'S TRUST 240,094,561,275 13,242,591, ,337,152, ,576,939,832 12,902,664, ,479,604,778 20,857,547, % BOARD OF PUBLIC INSTRUCTION 271,603,333,483 13,242,591, ,845,924, ,223,962,032 12,903,494, ,127,456,888 22,718,468, %1 Page 2 of 5

19 MIAMI DADE COUNTY PROPERTY APPRAISER 2016 Preliminary Taxable Values by Taxing Authority JULY 1, MIAMI 011 MIAMI ( DDA) 02 MIAMI BEACH 0201 MB NORMANDY SHORES 03 CORAL GABLES 04 HIALEAH 05 MIAMI SPRINGS 06 NORTH MIAMI 07 NORTH MIAMI BEACH OPA-LOCKA SOUTH MIAMI 10 HOMESTEAD 11 MIAMI SHORES 12 BAL HARBOUR 13 BAY HARBOR ISLANDS 14 SURFSIDE 15 WEST MIAMI 16 FLORIDA CITY 17 BISCAYNE PARK 18 EL PORTAL 19 GOLDEN BEACH 2015 Preliminary Taxable 2016 Preliminary Taxable Value Before New Construction 43,634,266, % 6.52% 5.69% 7.82% 4.32% 11 New Percent Change From % 10.25% 13.03% 14.91% 5.09% 8.59% 6.60% 8.79% 16.51% 6.82% 7.75% 8.33% 8.11% 4.34% 13.12% 12.42% 15.05% 7.35% 10.54% 13.68% 1 N. BAY VILLAGE KEY BISCAYNE SWEETWATER VIRGINIA GARDENS 8, 6.65% 15.31% 8.00% 8.04% HIALEAH GARDENS 9, UNINCORPORATED SUNNY ISLES BEACH PALMETTO BAY MIAMI GARDENS CUTLER BAY 4.19% 6.60% 5.16% 5.98% 7.09% 9.64% 7.38% 5.75% 6.82% <,,",,un,,,, BOARD 6.75% FL WATER MNGT DIST E CHILDREN'S TRUST 6.81% 6.81% 6.81% Page 3 of 5

20 MIAMI-DADE COUNTY PROPERTY APPRAISER 2016 Senior and Long-Term Resident Senior Exemptions JULY 1, 2016 LONG-TERM RESIDENT SENIOR EXEMPTIONS SENIOR EXEMPTIONS Municipality Count Exemption Value Count Exemption Value 01 Miami 6, A69,918 2,780 39,616, Miami Beach 1,289 50,511, , Coral Gables ,916, , Hialeah 6, ,842,129 3,108 51,028, Miami Springs ,254, North Miami ,987, A45 07 North Miami Beach ,606, Opa-Iocka 163 3,521, , South Miami 128 5,888, Homestead ,291, , Miami Shores Bal Harbour , Bay Harbor Islands 86 3,069, , Surfside 104 5,068, West Miami ,574, Florida City Biscayne Park 30 1A74J EI Portal 31 1,326, Golden Beach 1 25, Pinecrest 75 3A26J Indian Creek Medley , , North Bay Villae 69 2,373, Key Biscayne 73 3,575, Sweetwater ,950, Virginia Gardens 50 2,290, , Hialeah Gardens ,167, A77 28 Aventura ,955, Unincorporated 20AOO 803,111,245 5,635 74,295, Sunny Isles Beach J41A Miami Lakes ,611, A68 33 Palmetto Bay 155 7,363, , Miami Gardens 1,892 55J55, ,058, Doral ,287, , Cutler Bay ,780, ,594,888 County 44,086 1,716,789,708 13, ,366,742 Page 4 of 5

21 MIAMI-DADE COUNTY PROPERTY APPRAISER 2016 PRELIMINARY AVERAGE AND MEDIAN HOMESTEAD RESIDENTIAL VALUES JULY 1, 2016 Average Values Median Values Municipality Count Just Assessed Taxable Just Assessed Taxable 01 CITY OF MIAMI 37, , , , , ,979 72, CITY OF MIAMI BEACH 13, , , , , , , CITY OF CORAL GABLES 10,365 1,010, , , , , , CITY OF HIALEAH 31, , ,779 53, , ,527 39, CITY OF MIAMI SPRINGS 2, , , , , , , CITY OF NORTH MIAMI 7, , ,639 79, ,972 82,190 29, CITY OF NORTH MIAMI BEACH 6, , ,061 71, ,195 83,687 31, CITY OF OPA-LOCKA 1,443 86,213 57,777 21,568 82,048 54,097 25, CITY OF SOUTH MIAMI 2, , , , , , , CITY OF HOMESTEAD 7, , ,984 57, ,477 99,989 47, MIAMI SHORES VILLAGE 2, , , , , , , BAL HARBOUR VILLAGE 700 1,592, , ,184 1,020, , , TOWN OF BAY HARBOR ISLANDS 1, , , , , ,434 90, TOWN OF SURFSIDE 1, , , , , , , CITY OF WEST MIAMI 1, , ,362 95, , ,795 85, CITY OF FLORIDA CITY ,473 49,950 19,769 87,934 44,578 19, VILLAGE OF BISCAYNE PARK , , , , , , VILLAGE OF EL PORTAL , , , , ,888 81, TOWN OF GOLDEN BEACH 237 3,440,259 1,788,092 1,736,884 2,475,688 1,213,179 1,163, VILLAGE OF PINECREST 4, , , , , , , VILLAGE OF INDIAN CREEK 15 21,957,040 10,395,844 10,331,252 22,735,395 8,460,205 8,410, TOWN OF MEDLEY ,149 72,928 29, ,095 63,467 24, CITY OF NORTH BAY VILLAGE 1, , , , , ,800 91, VILLAGE OF KEY BISCAYNE 2,613 1,595, , ,359 1,123, , , CITY OF SWEETWATER 1, , ,886 48, ,549 86,944 32, VILLAGE OF VIRGINIA GARDENS , ,458 85, , ,753 80, CITY OF HIALEAH GARDENS 3, , ,521 63, , ,240 50, CITY OF AVENTURA 8, , , , , , , MUNICIPAL SERVICE AREA 203, , , , , ,931 77, CITY OF SUNNY ISLES BEACH 3, , , , , , , TOWN OF MIAMI LAKES 6, , , , , , , VILLAGE OF PALMETIO BAY 6, , , , , , , CITY OF MIAMI GARDENS 18, ,789 87,593 39, ,159 83,680 30, CITY OF DORAL 6, , , , , , , TOWN OF CUTLER BAY 9, , ,278 94, , ,303 79,746 MIAMI-DADE COUNTYWIDE 408, , , , , ,647 77,642 Other Taxing Authorities BOARD OF PUBLIC INSTRUCTION 408, , , , , , ,114 SO FLORIDA WATER MANAGEMENT DIST 408, , , , , ,647 82,112 FLORIDA INLAND NAVIGATION DISTRICT 408, , , , , ,647 82,112 THE CHILDRENS' TRUST 408, , , , , ,647 82,112 Page 5 of 5