Resolution 2018-30513 RESOLUTION NO. 2018-30513
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE
FINAL AD VALOREM MILLAGE RATE OF 0.8161 MILLS FOR
FISCAL YEAR 2018/19 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,
WHICH IS EIGHT AND THREE TENTHS PERCENT(8.3%) LESS
THAN THE "ROLLED-BACK" RATE OF 0.8895 MILLS.
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 majority (4/7th)vote is 0.9026
mills, and anything beyond this rate, up to 0.9929 mills, requires a two-thirds (5/7h)vote for Fiscal
Year 2018/19; and
WHEREAS, on July 25, 2018, the City Commission, acting as the Board of Directors of
the District, adopted Resolution 2018-30430 which set the proposed operating millage rate of the
District at 0.8161 mills for the purpose of providing security services within the District for Fiscal
Year 2018/19; and
WHEREAS, on September 12, 2018, pursuant to Section 200.065, 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 for the
District for Fiscal Year 2018/19; and
WHEREAS, on September 26, 2018, pursuant to Section 200.065 of the Florida Statutes,
the City Commission, acting as the Board of Directors of the District, held its second duly noticed
public hearing to consider the Final Ad Valorem Millage and Final Operating Budget for the District
for FY 2018/19.
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 26, 2018, the Board hereby
adopts the Final Operating Millage rate of 0.8161 mills for the District for Fiscal Year 2018/19,
which is eight and three tenths percent (8.3%) less than the "Rolled-back" rate of 0.8895 mills.
PASSED AND ADOPTED this 26th day of September, 2018.
ATTEST:
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Secretary to t e District %{ .JNCCRP ;CRATED; — APPROVED AS TO
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 26, 2018
5:02 p.m. Second Reading Public Hearing
SUBJECT:A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
ADOPTING THE FINAL AD VALOREM MILLAGE RATE OF 0.8161 MILLS FOR
FISCAL YEAR 2018/19 FOR THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS EIGHT AND THREE
TENTHS PERCENT (8.3%) LESS THAN THE "ROLLED-BACK" RATE OF 0.8895
MILLS.
RECOMMENDATION
See attached Memorandum.
Legislative Tracking
Budget and Performance Improvement
ATTACHMENTS:
Description
❑ FY 2019 Normandy Shores Operafing Millage Memo
❑ Resolution
Page 128 of 366
M\ IAM, 'i BEACH
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachil.gov
COMMISSION MEMORANDUM
TO. Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 26, 2018
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING
THE FINAL AD VALOREM MILLAGE RATE OF 0.8161 MILLS FOR FISCAL YEAR
2018/19 FOR THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS EIGHT AND THREE
TENTHS PERCENT (8.3%) LESS THAN THE "ROLLED-BACK" RATE OF 0.8895
MILLS
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission, acting as the Board of
Directors of 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 Final Adopted Millage Rate for the Normandy Shores Neighborhood
Improvement District for FY 2018/19:
General Operating 0.8161 mills (0.1403 less than last year)
2) The Final Adopted Millage Rate of 0.8161 is 8.3% less than the "Rolled-Back" Rate
of 0.8895 mills.
The first public hearing on the tentative District millage rate and budget for FY 2018/19 was held
on September 12, 2018. The millage rate herein is that which was tentatively adopted at the
first public hearing on that day.
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.
Page 129 of 366
FY 2018/19 Normandy Shores Final Millage Rate
September 26, 2018
Page 2 of 4
July 2017 July 2018 $
Certi0ed Certified Variance Variance
Property Assessment
Existing Values 196,441,992 209,647,105 13,205,113 6.7%
New Construction 1,719,766 2,458,268 738,502 42.9%
Total 198,161,758 212,105,373 13,943,615 7.0%
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; Fiscal Year 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
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 Fiscal Year 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.
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., the City of Miami
Beach.
It also prescribes that a final millage be adopted first. This is accomplished by adopting a
Resolution which states the percent increase or decrease over the "Rolled-back" rate.
Following this, another Resolution which adopts the Normandy Shores District operating budget
must be approved (see accompanying District Budget agenda item for details).
Florida Statute requires that 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.
Page 130 of 366
FY 2018/19 Normandy Shores Final Millage Rate
September 26, 2018
Page 3 of 4
Final Budget& Millage
The proposed Fiscal Year 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 budget is $24,000, or 8.7%,
lower than the adopted Fiscal Year 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 Fiscal Year 2018/19. This proposed millage rate is 0.1403 mills, or 14.7%, lower than
the adopted Fiscal Year 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.
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, the 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 Fiscal Year 2018/19.
The "rolled-back" rate is the millage rate required to produce the same level of property tax
revenue in Fiscal Year 2018/19 as collected in Fiscal Year 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 Fiscal Year
2017/18. The "rolled-back" millage rate tax levy would generate proceeds of $188,668. The
difference between the proposed millage rate for Fiscal Year 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:
Page 131 of 366
FY 2018/19 Normandy Shores Final Millage Rate
September 26, 2018
Page 4 of 4
• 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 Fiscal Year 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.
It must be noted that, in accordance with Florida Statutes, there is an operating cap of 10 mills
which cannot be exceeded without voter approval. Combining both millage rates from the
dependent district (0.8161) and its principal taxing authority (5.7288) totals 6.5449 mills, which
is 3.4551 mills less than the statutory cap of 10 mills.
On September 12, 2018, the Mayor and City Commission adopted the tentative operating
budget for the District in the amount of $253,000 and the tentative operating millage rate of
0.8161 mills.
CONCLUSION
The City Commission, acting as the Board of Directors of the Normandy Shores Local
Government Neighborhood Improvement District, should adopt the attached Resolution which
establishes the final millage rate for the District of 0.8161 mills for FY 2018/19.
J LM/J W/TOS
Page 132 of 366
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