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2010-27509 ResoI RESOLUTION NO. 2010-27509 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING _ DISTRICT ADOPTING THE fINAL OPERATING BUDGET FOR FISCAL YEAR (FY) 2010/11. WHEREAS, for the purpose of .providing security services within the Normandy Shores rieighborhood area, the Mayor and City Commission adopted Ordinance No. 93- 2881 on October 20, 1993, which authorized the creation of the Normandy Shores Local Government Neighborhood. Improvement District (District); and WHEREAS, a final budget has been developed to fund projected Fiscal Year (FY) 2010/11 District operating expenses; and WHEREAS, Section 200.065, Florida Statutes, specifies the method by which municipalities may fix the operating millage .rate and adopt an annual budget for dependent taxing districts; and WHEREAS, the maximum millage that can be approved by a simple majority vote {4/7tns vote) is 1.0375; beyond. this, would require a 5/7tnsvote; and WHEREAS, on July 14, 201.0, the City Administration had proposed a millage of 1.0957, sufficient to cover the current service level budget; and WHEREAS, the proposed millage of 1.0957 failed to obtain the required 5/7tns vote (i.e. required to.exceed the 1.0375 millage); and WHEREAS, on July 14, 2010, the Mayor and City Commission, acting as the Board of Directors. of the District, adopted Resolution No. 2010-27450, which set the Proposed General Operating. Millage Rate for the District at 1.0375; and WHEREAS, the effect of the Proposed Operating Millage Rate of the District being. set at 1..0375 results in a shortfall in the annual operating budget of the District, in the amount of $5,639; and WHEREAS, the City Administration evaluated two possible options on funding this shortfall, and recommends using funding from the proceeds from the City's sale of the Normandy Shores stash site (in 1993) to make up the difference; and WHEREAS, the Administration met with the District Board. and' the President of the Normandy Shores Homeowners' Association in August and' they requested that these funds be utilized to cover the shortfall; and .WHEREAS, in order to utilize these funds, the Commission would need to waive the City's established policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating, and maintenance costs; and WHEREAS, this one-time use represents only a small percentage of the available funds; and WHEREAS, to ensure that a shortfall does not re-occur in FY2011/12, and-that the City does not continue to use one=time revenues for recurring expenses, the Ad,ministrations' recommendation would be that the City Commission increase the millage for the .District next year, in order to recapture the current service level funding going. forward; and WHEREAS, on September 15, 2010, pursuant to Section 200.065 of the Florida Statutes, the City Commission, acting as the Board of Directors of the District, held its first duly noticed public hearing to consider the Tentative Ad Valorem Millage and Tentative Operating Budget (FY 2010/11) for the District; and WHEREAS, accordingly on September 20, 2010, pursuant to Section 200.065 of the Florida Statutes, a public hearing was held before the Mayor and City Commission, acting as the Board, to discuss the operating millage rate and operating budget for the District for FY 2010/11. •. NOW, THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF THE NORMANDY .SHORES LOCAL GOVERNMENT .NEIGHBORHOOD IMPROVEMENT DISTRICT, that following a duly noticed public hearing on September 20, 2010, the Board hereby waives. the City's policy of not utilizing one-time, non-recurring revenue to .subsidize recurring personnel, operating and maintenance costs, and adopts the Final Operating Budget (FY 2010/11) for the Normandy Shores Local Government Improvement District, as summarized grid listed below: Budget 1..0375 Mills Revenues Ad Valorem Tax $ 100,517 Proceeds from Sale of Stash Site 5,639 City's Genaral Fund 57,161 Total $ 163,317 Expenses Security Service $ 152,792 Maintenance 10,525 . Total $ 163,317 PASSED and ADOPTED this 20th day of September, 2010. hairpers n of the District ATTEST: ` ~ ~ ' /) ~, TI ~ (~X~-- Secretary fo the District APPROVED AS TO FORM & LANGUAGE & F~1H EXECUTION Y~,,,._~' torne ate \\ COMMISSION ITEM SUMMARY Condensed Title: A resolution adopting the final operating budget for the Normandy Shores Local Government Neighborhood Improvement District for Fiscal Year (FY) 2010/11. rce Intended outcome Sup ortea: Increase visibility of police; Maintain crime rates at or below national trends. Supporting Data (Surveys, Environmental Scan, etc.): In 2009 Community Survey, both residents and businesses reported the following areas for the City to address in an effort to improve public safety: • Preventing crime (Residents: 44.9%, .Business: 43.9%) • Increasin olice visibilit Residents: 32.4%, Business: 33.1 Issue: Shall the Mayor and City Commission, acting in its capacity as the Board of Directors for the Normandy Shores Local Government Neighborhood.Improvement District, approve the final operating budget for the District for FY 2010/11 in the amount of $163,31.7? Item 5ummaryircecommenaation: The operating expenditures to provide security services at the current service level to this district is $163,317, a 10.8% increase from the FY 2009/10 amount of $147,377. The majority of the increase ($13,890) is due to recently enacted changes in the City's Living Wage Ordinance which impacted contracted employees including security guards. The tentative ad valorem millage recommended by the Administration is 1.0375 mills to provide the current level of security required by this district. This tax levy will generate proceeds of $100,517. The City of Miami Beach General. Fund is required to provide 35% of the total operating expenditures ($57,161), and the City has funded the. 35% for each of the seventeeri years since the District was established. In order to close the budget shortfall of $5,639 that resulted from decreasing the proposed millage from 1.0957 to 1.0375 at the July 14, 2010 Commission meeting, the City Commission voted on September 15, 2010 to waive the City's policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating and maintenance costs. This allows the use of $5,639 Normandy Shores stash site dollars which resulted from the sale of the stash site in 1993, matched by an additional $3,035 in City dollars. The City Commission also adopted the tentative operating millage of 1.0375 and the operating budget for the district in the amount of $163,317. Adviso Board Recommendation: Financial lnformatiorr: ' Source of Amount Account r .Approved --- --- -- Funds: 1 $ 100,5.17 Normandy Shores District 2 5,639 Proceeds from Sale _ of Stash Site 3 57,161 General Fund Total $ 163,317 Financial Impact Summary: Cit Clerk's Office t_e islative Trackin c Si n-Offs: Department Director ,. ~ Assistant City Manager m MIAMIBEACH City Manager "` "` ADENDa ITN=M ~ J Z/, C3ATE - ~- (/ m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: .Mayor Matti Herrera Bower and Members of the City C m~sion FROM: Jorge M. Gonzalez, City Manager DATE: September 20, 2010 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIG.HBORHOODjIMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR (FY) 2010/1.1. ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the final operating budget for the Normandy Shores Local Government Neighborhood Improvement District for FY 2010/11 in the amount of $163,317. BACKGROUND The Normandy Shores Local Government Neighborhood Improvement. District (the District), a dependent taxing district of its principal, the City of Miami Beach, was established in 1994 to provide continual 24-hour security to this gated community; FY 2010/11 represents its _ seventeenth year of operation. The District was established by Ordinance 93-2881, and has the authority"to levyan ad-valorem tax on real. and personal property of up to two mills, provided that no parcel of property will be assessed more than $500 annually for such improvements". During FY 1998/99 the amount of annual. funding to be provided. by the City and the dependent status of the District were issues discussed by the Finance and Citywide Projects Committee. A determination was reached that the City would fund 35% of the annual cost of the operation of the community gate guard. This cost will eventually be funded from the golf course. operation of the Normandy Shores Golf Course. It was further agreed that the City wouldcontinue to supplement the District at current levels until both issues were resolved. On August 29, 2002,. the Administration met with the Normandy Shores Local Government Neighborhood Improvement District representatives and agreed to eliminate the $500 cape on the highest valued home in the District. The enabling legislation was adopted by the Commission on September 25,.2002. This ensures that the City's contribution from the General Fund remains at 35% of the operating budget of the District. PROCEDURE - The operating millage and budget for this dependent special taxing district must be adopted in accordance with Florida Statutes. This procedure requires that this Resolution be considered immediately after the tentative millage for Normandy Shores District has been adopted (See accompanying District Millage Agenda Item for details). FY 2010/11 Normandy Shores Adopted Budget September 20,,2010 Page 2 of 3 ANALYSIS The FY 2010/11 budget to .maintain the current service levels is $163,317, which includes an adjustment of $13,890 due to recently enacted changes in the City's Living Wage Ordinance which impacted contracted employees including security guards. The. budget for FY 2009/10 was $147,377. - Section 200.065 of Florida Statutes specifies the method by which municipalities may fix the operating millage rate and adopt an annual budget for dependent taxing districts. The maximum millage that can be approved by a simple majority (4/7) vote is based on property tax revenue in prior years adjusted for changes in per capita Florida personal income growth. For FY 2010/11, the maximum millage rate is 1.0375. State Statute allows fora 10% above maximum millage - with a 5/7 vote. On-July 14, 2010, the City administration had proposed a millage of 1.0957, sufficient to cover the $163,31.7 current service level budget and offset the 13.5% decline in property values for Normandy Shores. The proposed millage rate failed to. obtain the 5/7 vote required for the millage rate of 1.0957, therefore the millage was approved at 1.0375 (simple majority vote). The revised proposed ad valorem millage of 1.0375 mills will generate proceeds of $100,517, or $5,639 less in District property tax revenues to pay for security services required by this district. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($57,161), and the City has funded the 35% for each of the seventeen years since the District was established. With the decrease in the millage, the City's portion would decrease by $3,035 to $54,126, for a total shortfall of $8,674. The Administration met with the District Board and the President of the Normandy Shores Homeowners' Association in August and they requested the use of the Normandy Shores stash site dollars which resulted from the sale of the stash site in 1993 to cover their shortfall of $5,639. In order to utilize these funds, the Commission would need to waive the City's policy of not utilizing one-time, non-recurring revenue. to subsidize recurring personnel, operating .and maintenance costs. However, this one-time use represents only a small portion of the available funds. To ensure that a shortfall does not re-occur in FY 2011/12, .and that the City does not continue to use one-time revenues for recurring expenses, the intent would be to increase the millage for the District next year in order to recapture the current service level funding going forward. On September 15, 2010, the Mayor and City Commission adopted the tentative operating budget for t_he District in the amount of $163,317 and an operating millage of 1.0375 and voted to waive the City's policy of not utilizing one-time, non-recurring revenue to subsidize recurring personnel, operating and maintenance costs. This allows the use of $5,639 of the Normandy Shores stash site dollars, matched by an additional $3,035 in City dollars to close the budget shortfall of $8,674. - FY 2010/11 Normandy Shores Adopted Budget September 20, 2010 :Page 3 of 3 The final operating budget for the District is as follows: - Budget 1.0375 Mills Revenues Ad Valorem Tax $ 100,517 Proceeds from Sale of Stash Site 5,639 City's General Fund 57,161 Total $ 163,317 Expenses Security Service $ 152,792 Maintenance 10,525 Total $ 163,317 CONCLUSION The City Commission, acting in its capacity as the Board of Directors of the Normandy Shores Locale Government Neighborhood Improvement District, should adopt the attached Resolution which establishes the final operating budget. JMG:KGB:JC