Miami Expects 9 Million In Tax Revenue From Condo Developments
Written by Deserae del Campo on December 8, 2005
By Deserae del Campo
With the condominium boom changing the Miami skyline, city officials expect $9 million in total tax revenue next year from condo development – money that will be used to finance city operations.
"This money is channeled into the city’s police and fire departments along with solid waste," said Larry Spring, chief of strategic planning and budgeting for the City of Miami. "We provide our residents with the proper public services, along with financing our parks and public works."
During the city’s budget hearings, he said, "I inform city commissioners, for the record, where this money is being used."
"The revenue from the tax assessment and from condo development is distributed to every single neighborhood in the city," Mr. Spring said, "and distributed to all city departments for them to use."
According to city planning records, 54 residential projects are completed within the city and 64 are in construction phases. The total of construction costs is $8.2 billion.
Currently, 90 projects are in the pipeline with construction costs estimated at $14.2 billion.
For 2005, the county assessed the total residential property at $5.2 million.
"The $5.2 million is what Miami-Dade County has assessed," said Mr. Spring, "and it represents the increase in our property tax value from last year to this year. The revenue gained is used to support all city functions. We also use this money to pay salaries and provide benefits to our workers."
The city does expect the tax revenue to continue to increase within the next couple of years, he said, but over time it should level off and the increase will not be as great as it is now.
"Over the last four years, under the advice from Mayor Manny Diaz, we have added to our reserves," Mr. Spring said. "The hard work from the finance department, the city manager and employees all pushing for the same goal to make us fiscally accountable as we move forward into the future."