Billion Dollar Boom!
City’s assessed property value increases from $3.9-$4.87 billion
By Bari Auerbach

There were already “a billion reasons” to love living in Sunny Isles Beach, Florida’s Riviera, but now there are $1 billion more!

Sunny Isles Beach City Manager John Szerlag recently handed out bogus $1 billion bills to Commission members at a budget workshop to highlight big news: Over the past year, the city’s total assessed property value soared from $3.9 billion to $4.87 billion.

Even more good news for residents is that the property tax rate will remain one of Miami-Dade’s lowest at $2.95 per $1,000 of assessed value. Due to increased property values, homeowners will ultimately wind up paying slightly more in property taxes to the city – but the dividends will be a plethora of expanded services and the continuation of sweeping capital improvement/beautification projects.

Gone are the days when condo dwellers on the west side of Collins Avenue with views of seedy rundown motels wondered if they would ever even be able to break even if they sold their homes. Now, fast forward to less than 10 years since incorporating and today, the average assessed property value in Sunny Isles Beach increased by 17% in just the ’05-’06 fiscal year alone – escalating from $209,718 to $251,450.

With a standard $25,000 homestead exemption, a resident would pay about $668 for the city’s portion of property taxes based on a home valued at $251,450.

While “healthy and wealthy” best describes the state of the city, recent budget workshops at Government Center have underscored “over-and-above” efforts being made by the Commission and city staff to complete additional capital improvements and beautification projects, plus create even more of the most desirable community amenities including parks, a pedestrian friendly “Town Center” and the city’s own K-8 public school.

City Manager John Szerlag explained to the Commission during a power point presentation, that capital improvement projects totaling over $57 million will be largely funded by revenues from TDR’s (transfer of development rights) purchased by developers and revenues from other development density bonuses.

“Every month we’ll have an update on funds that come in from TDR’s,” Szerlag said. “Now that we’re going to begin an aggressive capital projects campaign, we need to make sure we have monies in hand before we make financial commitments to effectuate projects…this is a fiscally conservative approach.”

The proposed $20 million general budget for the ’06-’07 fiscal year is $3.3 million more than the previous year mostly due to tax revenues – but according to Szerlag, the additional funds have already been allocated to cover “legacy” costs (i.e. contractual obligations, rising personnel, pension, fuel and other recurring expenses).

Highlights of the proposed budget include efforts to “make the best even better” with an enhanced Collins Avenue streetscape design, aesthetic signage, new bus shelters, parks and lighting upgrades, installation of median fences and four additional full-time lifeguards Other significant projects include undergrounding of utility lines, Sunny Isles Beach Boulevard roadway improvements and stormwater drainage in areas including the site of the future active park and public school on North Bay Road.

Personnel costs for the people “who make it all happen” at Government Center comprise 68 percent of the proposed budget – providing for rising benefit costs and salary increases. Commission members agreed funds for salary increases should be placed in one central reserve and dispersed contingent on individual employee performance levels.

The city is currently seeking to adopt a salary classification compensation plan and methodology for employee performance evaluation. “I’d like to see specific job descriptions and comparisons (internally and externally) to decide a point of value for [specific] positions,” Szerlag said. “Then every year we can evaluate salary increases that take care of rising cost of living expenses as well as added increases for ‘good performers.’

“We can’t do this by September 30 – but for this budget, we can indicate what the salaries are for each position and put in a 5 percent increase with the understanding that it’s 3.5 percent ‘across the board’ effective October 1 – and then try to get some objectives accomplished by January or February and have it be ‘retroactive.’”

More budgeted betterments:

*Establishment of a city Engineering Department to facilitate a reduction in consulting firm fees as well as recruitment of an engineer to serve as a project manager, plus a new electrical inspector and parks facilities maintenance worker
*Undergrounding of utility lines from 185th to 194th Streets along Collins Avenue, Golden Shores alleys and also Atlantic Avenue - coinciding with a stormwater drainage project

*The active park planned for 181st Drive and North Bay Road is scheduled to be completed between July and September of 2007 (the neighboring K-8 public school is expected to open by the fall of 2008)

*A Collins Avenue corridor study will be conducted to determine the “highest and best use” for properties on the west side of Collins Avenue with more specificity and to develop a “world-class streetscape plan.”

*Development of a “park master plan” focusing on present and future sites; a Town Center observation deck study specification; and a pedestrian emergency access bridge specification study

*A wireless island study to facilitate high-speed internet access throughout the city

*Funding to continue the Sunny Isles Beach sister-city relationship with Netanya, Israel; and to plan the city’s 10th anniversary celebration in 2007

Following appreciation expressed by the Commission to City Manager Szerlag and members of city staff who worked “overtime” to collaborate on the proposed budget, it was announced Sept. 14 will be the first public budget hearing, followed by final adoption on Sept. 28.

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