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Resolution 2020-31358 RESOLUTION NO. 2020-31358 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 2021; 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, 2020 Certification of Taxable Value from the Miami-Dade County Property Appraiser for the Normandy Shores Neighborhood Improvement District reflects an overall increase of approximately$19.1 million, or 8.5 percent, in property tax values over the July 1, 2019 tax roll certification from the Miami-Dade County Property Appraiser; 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 0.7497 mills for Fiscal Year(FY) 2021 and that the "Rolled-Back" rate be set at 0.7666 mills; and WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County Property Appraiser of the Proposed Normandy Shores Local Government 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 MAYOR AND CITY COMMISSION, ACTING IN ITS CAPACITY AS 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 2021: General Operating 0.7497 mills (0.0664 decrease from last year) 2) "Rolled-Back" Rate 0.7666 mills 3) The first public hearing on the.Proposed:.Normandy Shores Local Government Neighborhood Improvement District operating millage rate and budget for FY 2021 shall be held on Wednesday, September 16, 2020, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive,3rd Floor, Miami Beach, . Florida 33139. In the event that Executive-Order 20-26, (recently extended by Executive Order 20-150) that suspended any Florida Statute that requires a quorum to be present in person or requires a local government body to meet at a specific public;place and authorized localgovernment bodies to utilize communications media technology,:such as telephonic and video conferencing, as provided in section 120:54(5)(b)2., Florida.Statutes is :extended, the September 16, 2020 City of Miami Beach Commission Meeting will be held as a Virtual Meeting with the Mayor, Commissioners, and. City staff participating through videoconferencing. The Virtual City Commission Meeting will be broadcast live on Miami Beach TV (MBTV), viewable. on the City's website. at https://www.mianiibeachfl.qov/government/mbty/, as .: .well as on Atlantic Broadband. Cable channel 660, AT&T U-verse. channel 99, Hotwire Communications channel 395; and ROKU :device on :PEG.TV channel, and on social media at facebook.com/cityofmiamibeach. To participate or provide comments, the public may : join the virtual : meeting at: https://us02web.zoom.us/i/85224811868' or via telephone at: 1.312.626.6799 (U.S.) or 888:475.4499 (Toll Free). The Webinar ID is: 852 2481 1868. Members of the public wanting to speak on an item during the.Virtual City Commission Meeting, must click the'"raise hand" icon if using the Zoom app or press*9 on the telephone to raise their hand: PASSED and ADOPTED this 29th day of July, 2020. ATTEST:. Dan Gelber, Mayor / A"& �� .ZM G Rafael E. Granado, City Clerk = �•� ate,. .� � r`s• z. •U• iCORP ORATED• ' `= APPROVED AS TO o`.n,_ FORM&LANGUAGE &-FOR EXECUTION '1 ti7 Z p City Attorney Date Resolutions-R7 L MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 29, 2020 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 2021;AND, FURTHER,AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTYAPPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES. RECOMMENDATION See attached Memorandum. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.U. to Know" item.pursuant to Bond Funds? City Code Section 2-14? Yes Yes Strategic Connection Organizational Innovation-Ensure strong fiscal stewardship. Legislative Tracking Office of Management and Budget ATTACHMENTS: Description ❑ Memo- Normandy Shores Maximum Millage D Resolution Page 1784 of 2461 MIAMI BEAC. 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 29, 2020 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 2021; 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 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 Normandy Shores Local Government Neighborhood Improvement District Operating Millage Rate for FY 2021: General Operating 0.7497 mills (0.0664 decrease from last year) 2) "Rolled-Back" Rate(Truth-in-Millage) 0.7666 mills 3) The first public hearing on the Proposed Normandy Shores Local Government Neighborhood Improvement District operating millage rate and budget for FY 2021 shall be held on Wednesday, September 16, 2020, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139. In the event that Executive Order 20-26, (recently extended by Executive Order 20- 150) that suspended any Florida Statute that requires a quorum to be present in person or requires a local government body to meet at a specific public place and authorized local government bodies to utilize communications media technology, such as telephonic and video conferencing, as provided in section 120.54(5)(b)2., Florida Statutes is extended, the September 16, 2020 City of Miami Beach Commission Meeting will be held as a Virtual Meeting with the Mayor, Commissioners, and City staff participating through video conferencing. The Virtual City Commission Meeting Page 1786 of 2461 FY 2021 Normandy Shores Proposed Millage Rate July 29, 2020 Page 2 of 5 will be broadcast live on Miami Beach TV (MBTV), viewable on the City's website at https://www.miamibeachfl.Aov/oovernment/mbty/, as well as on Atlantic Broadband Cable channel 660,AT&T U-verse channel 99, Hotwire Communications channel 395, and ROKU device on PEG.TV channel, and on social media at facebook.com/cityofmiamibeach. To participate or provide comments, the public may join the virtual meeting at: https://us02web.zoom.us/i/85224811868 or via telephone at: 1.312.626.6799 (U.S.) or 888.475.4499 (Toll Free). The Webinar ID is: 852 2481 1868. Members of the public wanting to speak on an item during the Virtual City Commission Meeting, must click the "raise hand" icon if using the Zoom app or press *9 on the telephone to raise their hand. BACKGROUND The Normandy Shores Local Government Neighborhood Improvement District, which is 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 2021 represents its twenty- seventh 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 FY 1999, 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 Economic Resiliency Committee (FERC). A determination was reached that the City would fund 35%percent 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 percent of the operating budget for the District. ANALYSIS On July 1, 2020, the City received the 2020 Certification of Taxable Value from the Miami-Dade County Property Appraiser indicating that the taxable value for the Normandy Shores Local Government Neighborhood Improvement District was$242.8 million, including$9.5 million of new construction. Overall, this represents an increase of approximately $19.1 million, or 8.5 percent, over the 2019 Certification of Taxable Value of$223.7 million provided by the Miami-Dade County Property Appraiser as of July 1, 2019. It is important to note that the final 2019 tax roll for the Normandy Shores Local Government Neighborhood Improvement District of $219.1 million is approximately$4.6 million, or 2.0 percent, lower than the 2019 Certification of Taxable Value due to appeals, adjustments, etc. Page 1787 of 2461 FY 2021 Normandy Shores Proposed Millage Rate July 29, 2020 Page 3 of 5 July 2019 July 2020 $ Certified Certified Change Property M Existing Values 219,807,591 233,297,993 13,490,402 New Construction 3,896,854 9,459,518 5,562,664 Total Normandy Shores 223,704,445 242,757,511 19,053,066 PROPOSED BUDGET&MILLAGE The Normandy Shores Local Government Neighborhood Improvement District budget proposed for FY 2021, as reflected in Attachment A, is$269,000, which reflects a decrease of$28,000, or 9.4 percent, from the adopted FY 2020 budget and is comprised of the following line-items: Items Included in Preliminary FY 2021 Expenditures $ Contracted Security Guard Services for Guardhouse and Rover 212,000 Gate Maintenance and Repairs 25,000 Project b Modify and Widen the Two Entry Lanes at the Biarritz Guard ,20,000 House Entrance Utilities 7,000 Guardhouse Janitorial Services 4;000 OIG Set-aside(based on 0.5%of Contracts Budgeted) 1,000 Total $289,000 The proposed ad valorem millage, which was approved by the Normandy Shores Homeowners' Association on July 13, 2020, and is recommended by the Administration for FY 2021, is 0.7497 mills, which is 0.0664 mills, or 8.1 percent, less than the adopted FY 2020 millage rate of 0.8161 mills. Based on the 2020 Certification of Taxable Value provided by the Miami-Dade Property Appraiser as of July 1, 2020, this proposed tax levy would generate proceeds of$181,995, which will be budgeted at approximately 95.0 percent, or $172,900, to account for early payment discounts, delinquencies, etc. This millage rate will fund the proposed FY 2021 budget summarized above for the District, including $20,000 to modify and widen the two entry lanes at the Biarritz guard house entrance as requested by the Homeowners'Association for FY 2021. 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, 2020), to the Miami-Dade County Property Appraiser, a proposed operating millage rate,the calculated"rolled-back"rate and the date,time, Page 1788 of 2461 FY 2021 Normandy Shores Proposed Millage Rate July 29, 2020 Page 4 of 5 and place of the first public hearing to consider the proposed operating millage rate and budget for FY 2021. The "rolled-back" rate is the millage rate required to produce the same level of property tax revenue in FY 2021 as collected in FY 2020.The rate is calculated at 0.7666 mills,which is 0.0495 mills less than the millage rate of 0.8161 adopted for FY 2020. The"rolled-back" millage rate tax levy would generate proceeds of$186,098. The difference between the proposed millage rate for FY 2021 and the"rolled-back" rate levy is $4,103. 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 0.7497 mills for FY 2021, 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 0.8659 mills(equivalent to a 3.22 percent increase in Property Tax revenues).The 1.0322 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 0.9525 mills (equivalent to a 10 percent increase in Property Tax revenues above Option I). • Option Ill: A unanimous approval of the Commission or referendum is required to approve a millage above 0.9525 mills. Adoption of the proposed FY 2021 millage rate of 0.7497 mills for the Normandy Shores Local Government Neighborhood Improvement District would, therefore, require a 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 2021 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 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, 2020 and September 18, 2020. The following dates are unavailable for the following reasons: N Page 1789 of 2461 FY 2021 Normandy Shores Proposed Millage Rate July 29, 2020 Page 5 of 5 September 6 and 13 Sundays September 3 Miami-Dade County 1st Public Hearing September 9 Miami-Dade County School Board 2nd Public Hearing Of the remaining days available, it is recommended that the first public hearing be held on Wednesday, September 16, 2020, at 5:02 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. In the event that Executive Order 20-26, (recently extended by Executive Order 20-150) that suspended any Florida Statute that requires a quorum to be present in person or requires a local government body to meet at a specific public place and authorized Local government bodies to utilize communications media technology, such as telephonic and video conferencing, as provided in section 120.54(5)(b)2., Florida Statutes is extended, the September 16, 2020 City of Miami Beach Commission Meeting will be held as a Virtual Meeting with the Mayor, Commissioners, and City staff participating through video conferencing. The Virtual City Commission Meeting will be broadcast live on Miami Beach TV (MBTV), viewable on the City's website at https:/lwww.miamibeachfl.qov/government/mbtvl, as well as on Atlantic Broadband Cable channel 660,AT&T U-verse channel 99, Hotwire Communications channel 395, and ROKU device on PEG.TV channel, and on social media at facebook,com/cityofmiamibeach. To participate or provide comments, the public may join the virtual meeting at: https://us02web.zoom.us/i/85224811868 or via telephone at: 1.312.626.6799 (U.S.) , or 888.475.4499 (Toll Free). The Webinar ID is: 852 2481 1868. Members of the public wanting to speak on an item during the Virtual City Commission Meeting, must click the "raise hand" icon if using the Zoom app or press*9 on the telephone to raise their hand. Attachment A— FY 2021 Proposed Normandy Shores Budget JLM/JW/TOS Page 1790 of 2461 i ATTACHMENT A FY 2021 Normandy Shores District Budget 2000FY2021 $Variance %Variance FYFY 2017 FY 2018 FY 2019AdOA Proposed FY 2021 Proposed FY 2021 Proposed Actuals Actuals Actuals BudgetBudpt vs vs FY 2020 Adopted FY 2020 Adopted REVENUES Residents 65% 167,050 180,050 164,450 174,000 172,900 (1,100) -0.6% City 35% 89,950 96,950 88,550 93,000 93,100 100 0.1% Restitutions 1,876 6,207 595 0 0 0 0.0% Miscellaneous 0 176, 1,408 0 3,000 3,000 100.0% Fund Balance/Retained Earnings 0 0 0 30,000 0 (30,000) -100.0% ` Total $ 258,876 $ 283,383 $ 255,003 .$ 297,000 $ 269,000 $ (28,000) -9.4% EXPENDITURES , Security Guard Services Irl 176,000 210,000 210,000 204,000 212,000 8,000 3.9% Janitorial Services 0 0 1,067 4,000 4,000 0 0.0% Gate Repairs(AAA Repairs) _ 20,878 22,428 19,170 25400 20,000 (5,000) -20.0% Internal Service-Other Repairs 2,663 0 0 5,000 5,000 0 0.0% Internal Service-OIG Set-Asidel2) 0 0 0 0 1,000_ 1,000 100.0% Utilities(Electricity&telephone)tax 1,386 1,260 1,723 2,000 7,000 5,000 250.0% Video Camera System Upgrade 0 0 0 30,000 0 (30,000) -100.0% - AED Guardhouse Defibrillator 0 1,404 0 0 0 0 0.0% Other Expenditures14) 225 16,400 5,957 27,000 20,000 (7,000), -25.9% Total $ 201,152 $ 251,493 $ 237,917 $ 297,000 $ 269,000 $ (28,000) -9.4% Surplus/(Gap) $ 57,724 $ 31,890 I $ 17,086 L$ 0 f $ 0, $ 0 REQUIRED MILLAGE 1.0093 0.9564 0.8161 0.8161 0.7497 (0.0664) -8.1% Existing Values 173,001,492 196,441,992 209,647,105 219,807,591 233,297,993 13,490,402 5.1% New Construction 3,058,319 1,719,766 2,458,268 3,896,854 9,459,518 5,562,664 142.7% Total 176,059,811 198,161,758 212,105,373 223,704,445 242,757,511 19,053,066 8.5% Value of 1 Mill 176,060 198,162 212,105 223,704 242,758 19,053 _ 8.5% 95%of 1 Mill 167,257 188,254 201,500 212,519 230,620 18,100 8.5% Footnotes: Irl FY 2021 security guard services based on current hourly rate of$20.71 for services provided 24 hours/day,7 days/week,for guardhouse,plus 24.5 hours a week for a security rover and$2,400 fee for rental of a golf cart(the hourly rate is subject to change for living wage if adopted by the City Commission for FY 2021). The cost of the roving guard and rental of golf cart is split funded between Normandy Shores(50%)via Prop Mgmt.chargeback and the Normandy Shores Golf Course(50%).The increase in security guard services is due to a$0.63 increase in the contracted hourly rate. (r)Set-aside for OIG Funding based on 0.5%of budgeted contracts in accordance with Ordinance 2020-4325 adopted by the City Commission on January 15,2020 (3)Increase to utilities projections based on new telephone line and internett�IIin the eedier5guRalydhouse($365 a month for internet and$25 a month for the land line) 141 FY 2021 Operating Expenditures of$20,000 based on NormBr�gidrt:S��N �p oowt 'Association request for project to modify and widen the two entry lanes at the Biarritz guard house entrance