2014-28737 Reso RESOLUTION NO., 2014-28737
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE AD VALOREM
MILLAGE OF 1.1305 MILLS FOR FISCAL YEAR(FY)2014/15 FOR THE
NORMANDY SHORES LOCAL GOVERNMENT DISTRICT,WHICH IS
ONE PERCENT(1.0%) LESS THAN THE "ROLLED-BACK" RATE OF
1.1391 MILLS, SUBJECT TO A SECOND PUBLIC HEARING
SCHEDULED ON TUESDAY, SEPTEMBER 30, 2014 AT 5:02 P.M.
WHEREAS, for the purpose of providing security services within the Normandy Shores
neighborhood 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,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(4/7)vote is
1.1750; anything beyond that requires a 5/7tns vote; and
WHEREAS, on July 23, 2014, the City Commission, following duly noticed public hearing,
adopted Resolution 2014-28675 which set the proposed operating millage rate for the District at
1.1305 mills for the purpose of providing security services within the District; and
WHEREAS, accordingly, on September 10, 2014, pursuant to Section 200.065 of the
Florida Statues, 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 2014/15)for the District.
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 10,2014,the Board hereby adopts the
Tentative Operating Millage rate of 1.1305 mills for the District for FY 2014/15,which is one percent
(1.0%) less than the "Rolled-back" rate of 1.1391 mills, subject to a second public hearing
scheduled on Tuesday, September 30, 2014, at 5:02 P.M.
PASSED and ADOPTED this 10th day of September 2014.
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COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE AD VALOREM MILLAGE RATE
OF 1.1305 MILLS FOR FISCAL YEAR (FY)2014/15 FOR THE NORMANDY SHORES LOCAL GOVERNMENT
DISTRICT, WHICH IS ONE PERCENT (1.0%) LESS THAN THE "ROLLED-BACK" RATE OF 1.1391 MILLS
SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON TUESDAY, SEPTEMBER 30, 2014 AT 5:02
P.M.
Key Intended Outcome Supported:
Increase visibility of police; Maintain crime rates at or below national trends
Supporting Data(Surveys, Environmental Scan, etc.):
In the 2014 Community Survey, both residents and businesses reported the following areas for the City to
address in an effort to improve public safety:
• Neighborhood safety during the day(Residents:98%)
• Neighborhood safety during the evening/night(Residents:88%)
Item Summa /Recommendation:
FS 200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be used by all local
government entities, including dependent taxing districts like Normandy Shores in setting its millage(property tax)
rates. Not unlike its principal taxing authority(City of Miami Beach), Normandy Shores is also required to transmit
within 35 days from receipt of the Certification of Taxable Value (received July 1, 2014), to the Miami-Dade
County Property Appraiser, a proposed operating millage rate,the calculated rolled-back rate and the date, time,
and place of the first public hearing to consider the proposed operating millage rate and tentative budget for FY
2014/15.
The FY 2014/15 proposed budget is$222,000. The proposed budget provides for continual 24-hour security and
includes two line items which were requested and approved by the Normandy Shores Neighborhood District
Homeowners' Association on July 11, 2014. These include $10,000 for security camera upgrades to the North
Shore-Fairway entrance; and $10,000 for potential additional costs related to the security gate project. The
proposed budget is 1%($3,000)lower than the FY 2013/14 adopted budget.
The proposed ad valorem millage recommended by the Administration is 1.1305 mills.This millage rate will fund
the proposed budget for the district. This millage rate is 0.1382 mills(10.9%)lower than the FY 2013/14 adopted
millage of 1.2687. This tax levy would generate proceeds of $151,900 ($144,300 at 95%). The FY 2014/15
proposed millage rate will require a majority vote.
The rolled-back rate is the millage rate required to produce the same level of property tax revenue on FY 2014/15
as collected in FY 2013/14. The rate is calculated as 1.1391, or 0.1296 mills less than the millage rate adopted
for FY 2013/14.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds:
1
2
OBPI Total
Financial Impact Summary The July 1, 2014 Certification of Taxable Value from the Miami-Dade Property
Appraiser reflects a 10.7 percent increase in property tax values from the July 1, 2013 tax roll certification. The
proposed millage rate for the FY 2014/15 budget results in property taxes of$151,900 in the Normandy Shores
Neighborhood District Homeowner's Association $144,300 at 95%).
City Clerk's Office Legislative Tracking:
Sign-Offs:
epartment Director Assistant City Manager City Manager
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AGENDA ITEM 9731
MIA
MI BEACH DATE 0:7
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members bf the City ommission
FROM: Jimmy L. Morales, City Mandyul 1 - _
r
DATE: September 10, 2014
SUBJECT: A RESOLUTION OF THE BOA D 'OF DIRECTORS' OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
ADOPTING THE TENTATIVE AD VALOREM MILLAGE RATE OF 1.1305 MILLS
FOR FISCAL YEAR (FY) 2014/15 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT DISTRICT, WHICH IS ONE PERCENT (1%) LESS THAN THE
"ROLLED-BACK" RATE OF 1.1391 MILLS SUBJECT TO A SECOND PUBLIC
HEARING SCHEDULED ON TUESDAY, SEPTEMBER 30, 2014 AT 5:02 P.M.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission, acting in its capacity
as the Board of Directors for the Normandy Shores Local Government Neighborhood
Improvement District, adopt the attached resolution which authorizes the City Manager to
transmit the following information to the Miami-Dade County Property Appraiser:
1) The Tentatively Adopted Millage Rate for the Normandy Shores
Neighborhood Improvement District for FY 2014/15:
General Operating 1.1305 mills (0.1382 decrease from last year)
2) The second public hearing to consider the proposed Normandy Shores Neighborhood
Improvement District operating millage rate and final budget for FY 2014/15 shall be
Tuesday, September 10, 2014 at 5:02 p.m., in the City Commission Chambers, City Hall,
1700 Convention Center Drive, Miami Beach, Florida.
FY 2014/15 Normandy Shores Tentative Millage Rate
September 10, 2014
Page 2of4
BACKGROUND
The Normandy Shores Local Government Neighborhood Improvement 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 2014/15 represents it twenty-first
year of operation.
It was established by Ordinance 93-2881, and has the authority "to levy an 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% ofthe-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 would continue 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 cap 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 millage and budget of the principal taxing authority, i.e.,
City of Miami Beach.
It also prescribes that a tentative millage be adopted first. This is accomplished by adopting
a Resolution which states the percent increase or decrease over the "Rolled-back" rate, and
the date, time, and place of the second public hearing scheduled to adopt the final millage.
Following this, another Resolution which tentatively adopts the Normandy Shores District
operating budget must be approved. (See accompanying District Budget Agenda item for
details).
The statute requires the name of the taxing authority, the rolled-back rate, the percentage
increase, and the millage rate be publicly announced before adoption of the millage
resolution.
ANALYSIS
On July 1, 2014, the City received the 2013 Certification of Taxable Value from the Property
Appraiser's Office stating that the taxable value for Normandy Shores is $134,363,196
which includes an increase of$91,358 in new construction, renovation, etc. The preliminary
value-represents an increase of-$13,023,331 -from the July 1, 2013 Certification of taxable
Value of$121,339,865 (10.7 percent) and an increase of 11.5 percent over 2013's July 2013
value of $120,557,974. It is important to note that the January 1, 2013 tax roll for
FY 2014/15 Normandy Shores Tentative Millage Rate
September 10, 2014
Page 3of4
Normandy Shores decreased by almost $782,000 (0.6%) between the July 1, 2013
valuation and the July 1, 2014, due to appeals, adjustments, etc.
Current Service Level Budget
The current service level budget reflects budget increases or decreases necessary to
provide the current level of services in the coming year. The proposed FY 2014/15 current
service level budget is $222,000. This budget includes two line items which were requested
and approved by the Normandy District Homeowners' Association on July 11, 2014. These
include $10,000 for security camera upgrades to the North Shore-Fairway entrance; and
$10,000 for potential additional costs associated with the new gate. The budget is 1%
($3,000) lower than the FY 2013/14 adopted budget.
The proposed ad valorem millage recommended by the Administration is 1.1305 mills. This
millage rate will fund the current service level budget for the District. This millage rate is
0.1382 mills (10.9%) lower than the FY 2013/14 adopted millage of 1.2687. This tax levy
would generate proceeds of$151,900, which will be budgeted at 95%, $144,300.
The rolled-back rate is the millage rate required to produce the same level of property tax
revenue on FY 2014/15 as collected in FY 2013/14. The rate is calculated as 1.1391, or
0.1296 mills less than the millage rate adopted for FY 2013/14. The rolled-back millage rate
tax levy would generate proceeds of $153,059. The difference between the current service
level and rolled-back rate levy is $1,165. The adoption of the current service level millage of
1.1305 would require a majority vote of the Commission.
After setting the proposed operating millage rate for Normandy Shores, the City Commission
may, at any time prior to the final adoption, lower the millage rate; however any increase
above the proposed millage rate of 1.1305, if adopted, would require an expensive mailing
and advertising process to each property owner of Normandy Shores. Therefore, this
proposed millage rate is viewed as the ceiling.
Further, pursuant to State Statute, the City may elect to approve millage rates above the
rolled-back rate up to the constitutional cap of 10 mills subject to the following votes by the
Commission or referendum:
• Option I: A majority of the approval of the Commission Millage is required to approve a
millage up to 1.1750 (equivalent to a 1.69% increase in Property Tax revenues). The
3.15% increase is the state per capita personal income gain for the prior calendar year.
• Option II: A two-thirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 1.2925 (equivalent to_ a 10% increase in Property Tax revenues above
Option 1).
• Option III: A unanimous approval of the Commission or referendum is required to
approve a millage above 1.2925 mills
The proposed rate of 1.1305 requires a majority approval (4 of 7 votes)of the Commission.
FY 2014/15 Normandy Shores Tentative Millage Rate
September 10, 2014
Page 4 of 4
It must be noted that in accordance with State Statute, there is a 10 mill operating cap which
cannot be exceeded without voter approval. Combining both millages from the dependent
district (1.1305) and the principal taxing authority (6.0237) totals 7.1542 mills, which is
2.8458 mills less than the 10 chill cap.
CONCLUSION
The City Commission, acting in its capacity as the Board of Directors of the District, should
adopt the attached Resolution which establishes a tentative millage and schedules the
second and final public hearing.
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