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96-22080 RESO RESOLUTION NO. 96-22080 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE PROPOSED NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT OPERATING MILLAGE RATE FOR FY 1996/97, THE CALCULATED ROLLED-BACK RATE, AND THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC HEARING~ FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE DADE COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES WHEREAS, Section 200.065, Florida Statutes, has specified the methoc by which municipalities may fix the operating millage rate and adopt an annual budget for depeLdent taxing districts; and WHEREAS, the City of Miami Beach is required to advise the Dade County Property Appraiser of the Proposed Normandy Shores Neighborhood Improvement District Operating Millage Rate, the Rolled-Back Rate, and the date, time, and place ofthe first public hearing. NOW, THEREFORE BE IT DUL Y RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following recommendations of the Administration be and are hereby ratified for transmittal to the Dade County Property Appraiser, as specified in Section 200.065, Florida Statutes: I) Proposed Normandy Shores Neighborhood Improvement District Operating Millage Rate for FY 1996/97 General Operating 0.980 mills 2) Rolled-Back Rate 1.067 mills 3) The first public hearing on the proposed Normandy Shores Neighborhood Improvement District operating millage rate and tentative budget for Fiscal Year 1996/97 shall be held on Thursday, September 12, 1996 at 5:02 P.M., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. PASSED and ADOPTED, this 17th day of July, 1996. ~c}f~~ ATTEST: I uhf. ~ [.~;;' s ~ L . f:\budg\$bud\danielle\wp60\97nstentmil LEGAl 0 :~'~T BY~ r"te -211 o/i~. . 1,'1:,""""(" t ~ i -: I.." \ ;1: .1 ~1 ."''o/L1) CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 - COMMISSION MEMORANDUM NO. ~ TO: Mayor Seymour Gelber and Members of the City Commission DATE: July 17, 1996 FROM: Jose Garcia-Pedrosa City Manager SUBJECT: A RESOLUTION SE ING 1) THE PROPOSED OPERATING MILLAGE RATE FOR THE NORMANDY SHO ES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2) THE CALCULATED ROLLED BACK RATE; AND, 3) THE DATE, TIME AND PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE OPERATING MILLAGE I~ TE AND BUDGET FOR FISCAL YEAR 1996/97 ADMINISTRATION RECOMMENDATION The Administration recommends that the Mayor and City Commission adopt the attachec resolution which authorizes the City Manager to transmit the following information to the Dade County Property Appraiser: 1) Proposed Operating Millage Rate of Normandy Shores Neighborhood Improvement District for FY 1996/97: General Operating 0.980 mills 2) Rolled Back Rate (Truth in Millage) 1.067 mills 3) The first public hearing to consider the proposed Normandy Shores Neighborhood Improvement District operating millage rate and tentative budget for FY 1996/97 shall be at 5:02 P.M., Thursday, September 12, 1996 in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. 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 1996/97 represents its third year of operation. It was established by Ordinance 93-2881, and will continue to exist unless rescinded by ac1ion of the Commission. This ordinance further enumerated the tenets which govern the annual setting of an operating millage and the formulating of an operating budget. Included in this language, lS a caveat that reads in part . . . AGENDA ITEM ~'lG 1-17-C)f- DATE FY 1996/97 Proposed Normandy Shores Millage Rate July 17, 1996 Page - 2 - "the district is hereby authorized 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." Using this restrictive language, taking into account the January 1, 1996, "Certification of Taxable Values" for the district, determining the highest assessed property within the district to be $509,754, translating this taxable value into a millage rate of 0.980; and calculating the highest assessment to be $499.56 which is less than $500. STATUTORY REQUIREMENT 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 Normand~' Shores in setting its millage (property tax) rates. Not unlike its principal taxing authority (Cit:, of Miami Beach), Normandy Shores is also required to transmit within 35 days from recdpt of the "Certification of Taxable Value" (received July 1, 1996), to the Dade County Property Appraiser, a proposed operating millage rate, the calculated rolled back rate and the date, time, and :}lace of the first public hearing to consider the proposed operating millage rate and tentative budget for Fiscal Year 1996/97. After setting the proposed operating millage rate for Normandy Shores, the City Comm: ssion may, at any time prior to the final adoption, lower the millage rate; however any increase abo"e the 0.980 millage rate would require an expensive mailing and advertising process to each and every propertyowner on Miami Beach. Therefore, this proposed millage rate is viewed as th~ ceiling. ANALYSIS On July 1, 1996, the City received the" 1996 Certification of Taxable Value" from tbe Property Appraiser's Office stating that the taxable value for Normandy Shores is $50,433,:;31, which included $45,505 in new construction. The preliminary value represents an increase of 4.7 percent over 1995's final value of $48,164,381. Alternately, the increase is 4.2 percent ever 1995's preliminary value of$48,419,405. The difference of$255,024 between 1995's preliminary and final values represents the equalization loss of one-half of one percent due to appeals. OPERATING MILLAGE AND BUDGET The value of one mill for Normandy Shores is $50,433. Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies, etc. Due to past experience, we utilize a discount of four percent. Hence, the 96 percent value of one mill for Normandy Shores is $48,416. The proposed rate of 0.980 mills is 0.136 mills or 13.9% less than the current millage rate of 1.116 mills, 0.087 mills or 8.9% less than the rolled-back rate of 1.067mills, and will generate ad-valorem 503 FY 1996/97 Proposed Normandy Shores Millage Rate July 17, 1996 Page - 3 - tax proceeds of $47,448. The operating budget of the district to provide the same level of services is proposed to be approximately $93,000. This is comparable to the current year-eLd projected expenditures. The gap between the revenues which will be generated from ad-valorem tax proceeds and the total budgetary requirement of the district must be supplanted by a contributi:m from the General Fund in the amount of$45,552 or 49% of the total operating budget. Historically, the gap which has been funded by the General Fund has escalated from $42,119 in FY 1994/9S to $45,552 in FY 1996/97, or an increase of 8%. This is solely due to the manner in which the millage must be calculated, given the $500 limitation. Administration has had two sessions with board members of the district to discuss the operating budget and remedy this operational anomaly and will present its recommendations during the ensuing year in a timely fashion, such that they may be incorporated into the FY 1997/98 budget development process. Both parties have agreed to work towards a joint resolution. It is understood that the City cannot continue to subsidize this service, and to the extent possible, it should be self-supporting up to the two mill cap set by state statute. FIRST PUBLIC HEARING The first public hearing on the proposed operating millage rate and tentative budget for Fiscal Year 1996/97 must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd) from the start of the TRIM calendar (July 1st). Other guidelines are: 1) The public hearing cannot be scheduled on a Sunday or on those days utilized by Metropolitan Dade County or the Dade County School Board for their public hearings; 2) If on a day other than Saturday, it must be held after 5:00 P.M; and 3) must be held immediately following discussion of the tentative millage and budget of its principal taxing authority (City of Miami Beach). Based on these guidelines, the first hearing must be held between September 3rd and September 18th. These dates are unavailable for the following reasons: September 8, 15 Sundays September 11 Dade County School Board Public Hearing September 4, 18 Metropolitan Dade County Public Hearings Of the remaining days, it is recommended that the first public hearing be set for 5:02 P.M., Thursday, September 12, 1996 in the City Commission Chambers, City Hall, 1700 Convention Center Drive, immediately following the City of Miami Beach's public hearing. As no Commission meeting is set for this date, this will be a special meeting of the Commission. JGP:PFL:DJJ:me