Resolution 2018-30430RESOLUTION NO. 2018 -30430
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1) THE
PROPOSED GENERAL OPERATING MILLAGE RATE FOR THE
NORMANDY SHORES 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 RATE
AND BUDGET FOR FISCAL YEAR (FY) 2018/19; AND,
FURTHER, AUTHORIZING THE CITY MANAGER TO TRANSMIT
THIS INFORMATION TO THE MIAMI -DADE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY
SECTION 200.065, FLORIDA STATUTES.
WHEREAS, Section 200.065, Florida Statutes, has specified the method by which
municipalities may set the operating millage rate and adopt an annual budget for dependent taxing
districts; and
WHEREAS, the July 1, 2018 Certification of Taxable Value from the Miami -Dade County
Property Appraiser reflects a 7.0 percent increase in property tax values from the July 1, 2017 tax
roll certification; and
WHEREAS, the Mayor and City Commission of the City of Miami Beach, acting in its
capacity as the Board of Directors of the Normandy Shores Local Government Neighborhood
Improvement District, propose that the District's General Operating Millage Rate be set at 0.8161
mills and that the "Rolled- Back" rate be set at 0.8895 mills; and
WHEREAS, the City of Miami Beach is required to advise the Miami -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 of the first public
hearing.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF
THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT, that the following recommendations of the Administration be and are hereby ratified
for transmittal to the Miami -Dade County Property Appraiser, as specified in Section 200.065,
Florida Statutes:
1) Proposed Normandy Shores Local Government Neighborhood Improvement
District Operating Millage Rate for FY 2018/19:
General Operating 0.8161 mills
2) "Rolled- Back" Rate 0.8895 mills
3) The first public hearing on the proposed Normandy Shores Local Government
Neighborhood Improvement District operating millage rate and budget for FY
2018/19 shall be held on Wednesday, September 12, 2018, at 5:01 p.m., in the
City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami
Beach, Florida 33139,
PASSED and ADOPTED this 25th day of July, 2018.
ATTEST:
Rafael E. Granado, City Clerk
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EX CUTION
C`
City Attorn
Date
M
Resolutions - R7 F
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 25, 2018
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
SETTING 1) THE PROPOSED GENERAL OPERATING MILLAGE RATE FOR THE
NORMANDY SHORES 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 RATE
AND BUDGET FOR FISCAL YEAR (FY) 2018/19; FURTHER AUTHORIZING THE
CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI -DADE
COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION
200.065, FLORIDA STATUTES.
RECOMMENDATION
See attached Memorandum.
Legislative Tracking
Budget and Performance Improvement
ATTACHMENTS:
Description
o Memo - FY 2018/19 Normandy Shores Proposed Millage
Page 1066 of 1464
MOM
BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy Morales, City Manager
DATE: July 25, 2018
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1)
THE PROPOSED GENERAL OPERATING MILLAGE RATE FOR THE NORMANDY
SHORES LOCAL GOVERNMENT 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 RATE AND BUDGET FOR FISCAL YEAR (FY) 2018/19; FURTHER
AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE
MIAMI -DADE COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY
SECTION 200.065, FLORIDA STATUTES
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 authorizing the City Manager to transmit the following
information to the Miami -Dade County Property Appraiser:
1) Proposed Millage Rate for the Normandy Shores Local Government
Neighborhood Improvement District for FY 2018/19:
General Operating 0.8161 mills (0.1403 less than prior year)
2) "Rolled- Back" Rate (Truth -in- Millage) 0.8895 mills
3) The first public hearing to consider the proposed Normandy Shores Neighborhood
Improvement District operating millage rate and budget for FY 2018/19 shall be held on
Wednesday, September 12, 2018, at 5:01 p.m., in the City Commission Chambers at 1700
Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139.
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 2018/19 represents its twenty -fifth year of operation.
The District was established by Ordinance 93 -2881, and has the authority "to levy an ad- valorem
Page 1067 of 1464
FY 2018/19 Normandy Shores Proposed Millage Rate
July 25, 2018
Page 2 of 4
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 (FCWPC). 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 would continue to supplement the District at
current levels until both issues were resolved. On August 29, 2002, the Administration met with
Normandy Shores Local Government Neighborhood Improvement District representatives and
agreed to eliminate the $500 cap on the highest valued home in the District. This enabling
legislation was adopted by the City Commission on September 25, 2002, and ensures that the
City's contribution from the General Fund remains at 35% of the operating budget for the District.
ANALYSIS
On July 1, 2018, the City received the 2018 Certification of Taxable Value from the Miami -Dade
County Property Appraiser's Office indicating that the taxable value for the Normandy Shores
Local Government Neighborhood Improvement District was $212.1 million, which includes $2.5
million in new construction. This represents an overall increase of $13.9 million, or 7.0 %, over the
certified July 1, 2017 taxable value of $198.2 million. It is important to note that the final 2017 tax
roll for the Normandy Shores Local Government Neighborhood Improvement District of $195.0
million is approximately $3.2 million, or 1.6 %, lower than the certified July 1, 2017 taxable value
due to appeals, adjustments, etc.
Property Assessrinent
Existing Values
New Construction
July 2017 July 2018
Certified Certified Variance Variance
196,441,992 209,647,105 13,205,113 6.7 %
1,719,766 2,458,268 738,502 42.9%
Total 1981161,758; 212,105,373 .13,943,616 7 0%
Proposed Budget & Millage
The proposed FY 2018/19 Normandy Shores Local Government Neighborhood Improvement
District budget, as reflected in Attachment A, is $253,000. The budget reflects the following line -
items requested by the representatives of the Normandy Shores Homeowners' Association on
June 19, 2018: $198,000 for security guard services; $30,000 for gate maintenance and repairs;
$3,000 for janitorial services; $2,000 for utilities; and $20,000 for acquisition and installation of an
automated camera system. The proposed budget is $24,000, or 8.7%, lower than the adopted FY
2017/18 operating budget.
The proposed ad valorem millage, recommended by the Administration, is 0.8161 mills. This
millage rate will fund the proposed budget for the District, including the automated camera system
requested by the representatives of the Homeowners' Association. On July 10, 2018, the
Normandy Shores Homeowners' Association approved the proposed millage rate and budget for
FY 2018/19. This proposed millage rate is 0.1403 mills, or 14.7 %, lower than the adopted FY
2017/18 rate of 0.9564 mills. This proposed tax levy would generate proceeds of $173,099, which
will be budgeted at approximately 95.0 %, or $164,444 ($165,000 rounded), to account for early
payment discounts, delinquencies, etc.
Page 1068 of 1464
FY 2018/19 Normandy Shores Proposed Millage Rate
July 25, 2018
Page 3 of 4
Statutory Requirement
Florida Statute 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, 2018), 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 budget
for FY 2018/19.
The "rolled- back" rate is the millage rate required to produce the same level of property tax
revenue in FY 2018/19 as collected in FY 2017/18. The rate is calculated at 0.8895 mills, which
is 0.0669 mills less than the millage rate of 0.9564 adopted for FY 2017/18. The "rolled- back"
millage rate tax levy would generate proceeds of $188,668. The difference between the proposed
millage rate for FY 2018/19 and the "rolled- back" rate levy is $15,569.
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 rate of 0.8161 mills, if adopted, would require an expensive mailing and advertising
process to each property owner in the Normandy Shores Local Government Neighborhood
Improvement District. Therefore, this proposed millage rate is viewed as the ceiling.
Further, per 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 approval of the Commission is required to approve a millage up to
0.9026 mills (equivalent to a 1.47% increase in Property Tax revenues). The 1.0147
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 0.9929 mills (equivalent to a 10% increase in Property Tax revenues above
Option I),
• Option III: A unanimous approval of the Commission or referendum is required to approve
a millage above 0.9929 mills.
Adoption of the proposed FY 2018/19 rate of 0.8161 mills for the Normandy Shores Local
Government Neighborhood Improvement District would require majority approval (4 of 7 votes)
by the City Commission per the State of Florida's Truth -in- Millage (TRIM) requirements.
First Public Hearing
The first public hearing on the proposed operating millage rate and budget for FY 2018/19 must
be held no later than 80 days, or earlier than 65 days, 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 Miami -Dade County or the Miami -Dade County School Board for their public
hearing; 2) If on a day other than Saturday, it must be held after 5:00 P.M.; and, 3) must be held
Page 1069 of 1464
FY 2018/19 Normandy Shores Proposed Millage Rate
July 25, 2018
Page 4 of 4
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 3, 2018 and
September 18, 2018. These dates are unavailable for the following reasons:
September 9 and 16
September 3
September 5
September 6
Sundays
Labor Day
Miami -Dade County School Board Public Hearing
Miami -Dade County Public Hearing
Of the remaining days available, it is recommended that the first public hearing be held on
Wednesday, September 12, 2018, at 5:01 P.M., in the City Commission Chambers at 1700
Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139, immediately following the City
of Miami Beach's public hearing.
Attachment A — FY 2018/19 Proposed Normandy Shores Budget
JLM /JW /TOS
Page 1070 of 1464
ATTACHMENT A
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Page 1071 of 1464