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Resolution 2020-31430 RESOLUTION NO. 2020-31430 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR 2021. 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, for the purpose of providing security services within the District, a final budget has been developed to fund projected Fiscal Year (FY) 2021 operating expenditures; and WHEREAS, on September 16, 2020, 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 and adopted the Tentative Ad Valorem Millage and Tentative Operating Budget for FY 2021; and WHEREAS, due to several questions being raised regarding the City's annual subsidy of 35% of the annual cost of the operation of the community guard gate at the first public hearing on September 16, 2020, the Mayor and Commission referred the Normandy Shores millage and budget items to the Finance and Economic Resiliency Committee (FERC) meeting on September 23, 2020 for further discussion; and WHEREAS, at the September 23, 2020 FERC meeting an important legal issue was discovered and discussed that impacts the millage rate tentatively adopted for the District for FY 2021 as a result of Ordinance 2015-3928, which was adopted in 2015, that repealed three neighborhood districts that were no longer active and re-adopted the legislation for the Normandy Shores District because the original Ordinance was never codified in the City Code; and WHEREAS, Ordinance 2015-3928 mistakenly codified the 1993 version that included a $500 cap to be levied on the highest valued home in the District and not the intended 2002 version that eliminated the cap; and WHEREAS, as a result, the City Commission will not be able to adopt the millage rate of 0.7497 that was tentatively adopted at the first public hearing on September 16, 2020; instead, the millage rate will need to be significantly decreased to 0.0773 mills in order to comply with the $500 cap which will result in a $155,000 loss of revenue from property tax revenue to the District and require changes to be made to the District's FY 2021 proposed budget to offset the loss of revenue from property tax revenue; and WHEREAS, on September 29, 2020, pursuant to Section 200.065, 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 FY 2021. 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 29, 2020, the City Commission, acting as the Board of Directors of the District, hereby adopts, as amended at the September 29, 2020 public hearing, the final operating budget for the District for FY 2021, as summarized and listed below. Revenues Ad Valorem Tax $ 17,900 City's General Fund 93,100 Miscellaneous (interest revenue) 3,000 Use of Prior Year Fund Balance 135,000 Total $ 249,000 Expenditures Security Services $ 212,000 Utilities and Maintenance 36,000 OIG Set-aside 1,000 Total $ 249,000 PASSED AND ADOPTED this 29th day of September, 2020. ATTEST: Chairperson of the District Secretary to the District ItiCORP3ORATEDJs APPROVED AS TO FORM &LANGUAGE &FOR EXECUTION l 9 _ 3p — zo) City Attorney Date Resolutions - R7 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 29, 2020 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 OPERATING BUDGET FOR FISCAL YEAR 2021. RECOMMENDATION See attached Memorandum. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? Yes No Strategic Connection Organizational Innovation - Ensure strong fiscal stewardship. Legislative Tracking Office of Management and Budget ATTACHMENTS: Description o Memo-Final FY 2021 NS Budget o Resolution o Ad Page 97 of 281 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 331 39,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Dan Gelber and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 29, 2020 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR 2021 ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the final operating budget for the Normandy Shores Local Government Neighborhood Improvement District for Fiscal Year (FY) 2021 in the amount of $269,000. 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 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 Citywide Projects Committee (FCWPC). A determination was reached that the City would fund 35% of the annual cost of the operation of the community guard gate. 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. First Public Hearing At the first public hearing on September 16, 2020 to adopt the FY 2021 tentative millage and budget for the Normandy Shores Neighborhood Improvement District, there were several questions regarding the City's annual subsidy of 35% of the annual cost of the operation of the community guard gate. The Mayor and Commission adopted the tentative FY 2021 millage and budget for the District and referred the Normandy Shores budget item to the Finance and Economic Resiliency Committee (FERC) meeting on September 23, 2020 for further discussion. Page 98 of 281 FY 2021 Final Normandy Shores Budget September 29, 2020 Page 2 of 4 Finance & Economic Resiliency Committee At the FERC meeting on September 23, 2020 an important legal issue was discussed that impacts the proposed millage rate for the Normandy Shores Neighborhood Improvement District. During the legal review of legislation governing the City's 35%subsidy to the district, it was discovered that the $500 cap on the highest valued home in the District is still legally in place. In 2015, the City Commission adopted ordinance 2015-3928 which repealed 3 neighborhood districts that were no longer active and re-adopted the legislation for the Normandy Shores District because the original ordinance was never codified in the City Code. However, that ordinance mistakenly adopted the 1993 version that included the$500 cap and not the intended 2002 version that eliminated the cap. As a result, the City Commission will not be able to adopt the millage rate of 0.7497 that was tentatively adopted at the first public hearing on September 16, 2020. Instead,the millage rate will need to be significantly decreased to 0.0773 mills in order to comply with the $500 cap. This will result in a$155,000 loss of revenue from property tax revenue to the District. In order to make the District's proposed FY 2021 budget whole, the following changes are proposed: Tentatively Adopted Millage of 0.7497 mills (@95%) 172,900 Proposed Final Adopted Millage of 0.0773 mills(@95%) 17,900 Revenue Change (155,000) Appropriation of Available Fund Balance in NS District Fund 118,000 Reduce budget by $20,000 20,000 Anticipated FY2020 savings to add to available fund balance 17,000 Total Changes to Offset Revenue Change 155,000 To offset the $155,000 of decreased property tax revenue from the reduced millage rate, the Administration recommends appropriating all of the $118,000 of available fund balance in the Normandy Shores District Fund, reducing the proposed budget by $20,000 that was proposed to modify and widen the two entry lanes at the Biarritz guard house entrance, and the appropriation of $17,000 of projected savings from the FY 2020 budget that will augment the fund balance at the end of the fiscal year. The FERC agreed with the staff recommended approach to balance the proposed FY 2021 budget for the Normandy Shores District and chose not to reduce the proposed City subsidy of$93,100 to the district at this time and instead revisit it before the FY 2022 budget development process. It is important to note that because the City Commission tentatively adopted the millage rate of 0.7497 and a budget of $269,000 at the first public hearing on September 16, 2020, that the proposed changes to the millage rate and the budget as outlined above, will need to be amended on the floor at the second public hearing on September 29, 2020. As a result, the memo and resolution for this item remain consistent with the millage and budget tentatively adopted at the first public hearing on September 16, 2020. Page 99 of 281 FY 2021 Final Normandy Shores Budget September 29, 2020 Page 3 of 4 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 final millage for the Normandy Shores Local Government Neighborhood Improvement District has been adopted(see accompanying District Millage agenda item for details). ANALYSIS The FY 2021 Normandy Shores Local Government Neighborhood Improvement District budget is $269,000 and includes the following line-item expenditures,which were approved by the Normandy Shores' Homeowners Association on July 13, 2020: Items Included in FY 2021 Expenditures $ Contracted Security Guard Services for Guardhouse and Rover 212,000 Gate Maintenance and Repairs 25,000 Project to 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 $269,000 The FY 2021 operating budget is $28,000, or 9.4%, lower than the adopted FY 2020 operating budget of$297,000. The City of Miami Beach General Fund has funded a portion of this budget for each of the previous twenty-six years since the District was established. For FY 2021, the impact of the City's 35% contribution to the City of Miami Beach General Fund is$93,100,which is$100, or 0.1%, more than the adopted FY 2020 budget impact of$93,000. To provide the current level of security required by the Normandy Shores Local Government Neighborhood Improvement District, the Administration recommends a proposed ad valorem millage of 0.7497 mills. This tax levy will generate proceeds of$181,995,which will be budgeted at approximately 95.0%, or $172,900, to account for early payment discounts, etc. The proposed millage rate is 0.0664 mills, or 8.1%, less than the adopted FY 2020 millage rate of 0.8161 mills, which represents a decrease in property taxes of approximately $1 to a median homesteaded property owner and an increase of$1 to an average homesteaded property owner(2020's median and average homesteaded values being $212,696 and $545,281, respectively). Page 100 of 281 FY 2021 Final Normandy Shores Budget September 29, 2020 Page 4 of 4 The proposed FY 2021 operating budget for the District is as follows: Revenues Ad Valorem Tax $ 172,900 City's General Fund 93,100 Miscellaneous (interest revenue) 3,000 Total $ 269,000 Expenditures Security Services $ 212,000 Utilities and Maintenance 36,000 Guard House Improvements 20,000 OIG Set-aside 1,000 Total $ 269,000 CONCLUSION The City Commission,acting in its capacity as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District, should adopt the attached Resolution which establishes the final operating budget for the District of$269,000 for FY 2021. JLM/JW/TOS Page 101 of 281 Q i i U j %A!i\A, BEACH CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARINGS SEPTEMBER 29, 2020 VIRTUAL CITY COMMISSION MEETIPC The September 29,2020 City of Miami Beach Commission Meeting will be held as a Virtual Meeting•xilh the I i.,or.Commissioners, ane City stall participating through video conferencing.The Virtual City Commission Meeting will be oroada s live or Miami Beach TV(MBTV) viewable on the City's website at https://www.miamlbeachtl,gov/govemmentembNe as well as Atlantic Broadband Cable channel 660,AT&T tl-verge channel 99,Hotwire Communications channel 395,and ROKU devic or PEG.TV channel, and on social media at https:/lwww.facebook.com/cityolmiamibeach.To participate or provide crammer the public may join the Virtual City Commission Meeting al:htlps://us02web.zoom.us/j/82602220652 or via telephone at 1. .12.626.6799(U.S.)re 888.475.4499(Toll Free).The Webinar ID is:82602220652e.Members of the public wanting to speak;, a item oaring the Virtual City Commission Meeting,must click the'raise hand'Icon it using the Zoom app or press'9 on the tel:pt.ons to raise their hand. NOTICE IS HEREBY GIVEN that the following public hearings will be heard by the Mayor anc City Commissioners of the City of Miami Beach.Florida,on September 29,2020 at the following Ihnes,or as seer,therealler ac the natter ear)be heard: 5:0/a.m.Second Readies Public Hearing A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH. FLORIDA,ADOPTING: 1)THE FINAL AD VALOREM VILLAGE OF 5.7288 MILLS FOR FISCAL YEAR 2021 FOR GENERAL OPERATING PURPOSES,WHICH IS TWO AND EIGHT TENTHS PERCENT(2.8%)MORE THAN THE-ROLLED-BACK'RATE OF 15126'BILLS AND 21 THE DEBT SERVICE MILLAGE RATE OF 0.3227 MILLS.This Resolution is being Heard pursuant to Seam §§ '66.641 and 200.066 ES Inquiries may be directed to the Office of Budget&Performance improvement al 305.673.7910. S:0/a.m.Second Reeding Public Hearing A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, Fi.ORIDA, ADOPTING THE FINAL BUDGETS FOR THE GENERAL.G.O. DEBT SERVICE,ROA AD VALOREM TAXES,ENTERPRISE,INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FOR FISCAL YEAR 2021. This Resmufion is being heard pursuant to Sections§§ 156.041 and to 200.065 F S inquiries may be directed to the Office of Budget&Performance improvement at 305.673 7510 5;02 g.m.Second Aeedlna Public Hearing A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM MILLAGE RATE OF 0.7497 MILLS FOR FISCAL YEAP 2021 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,WHICH IS TWO AND TWO TENTHS PERCENT(2.2`/)LESS THAN THE"ROLLED-BACK"RATE OF 0.7666 MILLS.This Resolution is being heard pursuant to Sections§§166.041 and 200.065 F.S.Inquires may be directed to the Office of Budget 6 Performance Improvement at 305.673.7510 5;02 a.m.Second Readlna Public Hearing A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL.OPERATING BUDGET FOR FISCAL YEAR 2021,This Resotutton to being beard pursuant to Sections§§ '66 041 and 200.065 FS.Inquiries may be directed to the Office of Budget 8 Performance Improvement at 305 673.7570. 5;03 n.m,Second Readies Public Heating A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,ADOPTING THE FINAL CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2021-2025 AND ADOPTING THE CITY OF MIAMI BEACH FINAL CAPITAL BUDGET FOR FY 2021.This Resolution is being heard pursuant to Sections§§166 041 and 200.065 FS.Inquiries may be directed to the Office of Budge(&Performance Improvement at 305.673.7510 INTERESTED PARTIES are netted to take part n this meeting or be represented by an agent.The public may submit written I comments by sending an email to.CllyCierktemlamibeach0,gov by 5:00 p.m.;he day before the Virtual City Commission Meeting. ( Please idunllfy the Agenda Item Number In the einati subject line.Email,received will be forwarded to the Mayor and Commiasloners IJ and will be included as a part of the meeting record. Copies of Agenda Items are avadaoie for public Inspection at:htlpsa/www.miamlbeach0.gov/city-.hail/city-cierk'ager,da-archivc— main-pegs 2/.This meeting,or any item therein,may be continued,end under such circumstances,additional legal nollce need not be provided. Pursuant to Section 286.0105 Fla.Sial,,the City hereby advises the public that if a person decides to appeal any decision made by the City Commission with respec'to any matter considered at its meeting or 115 hearing,such person must ensue That a verbatim record of the proceedings is made,which record Includes the testimony arid evidence upon which the appeal Is to be based. This notice does not constitute consent by the City for the Introduction or admission of otherwise Inadmissible or Irrelevant evidence nor does it authorize challenges or appeals nol otherwise allowed by law. To request this material to alternate format, sigr language Interpreter (hve-day notice required), Information on access for persons with disabilities.andior any accommodation to review any document or participate in any City-sponsored proceedings. call 305.604.2489 and select for English or 2 for Spanish,then option 6;TTY users may call via 711(Florida Relay Service). AUDIO/VISUAL PRESENTATIONS Members of the public may present audio/visual(AV)materials relating to Agenda Items at Virtual City Commission meetings by utilizing the City's AV equipment,provkied that materials are submlttec to the Department of Marketing and Communications by 6:30 a.m.,one(1)business day prior to the meeting.Advance submittal of a presentation will allow the Communications Department to plan for the use of the appropriate AV equipment.A0 materials must be submitted via email at communicationse.mlamibeachfi.gov. The body of the email must Include a notation listing the name or group.contact person,daytime telephone number.email address. ce description/title at the presentation.end Agenda Item ilk as well as the Agenda Item Number.Please reference'Audio/Visual o Material'in the email subject tins.Acceptable formals for electronic submission are.pot.,ppt..pptx,.pps,.ppsx..wmv,.avf,and 0 .mov.(Note that.pol Is the preferred format for PowerPoint preseniations.i ree WPlease note that Governor DeSantis'Executive Order Number 20-69,as extended 0y Executive Orders 20-'21,20-123 20-139, X 0 20-150,and 20-193,suspended the requirement of Section 112,286,Florida Statutes,the Florida Sunshine Law,that a quorum a mast be present In person,and that a local government body meet al a specillc public place.The Executive Omer also allows local Ler government bodies to utilize communications media technology,such as telephonic and video cnnterencing la local government eg ee, body meetings. o f Rafael E.Granada,City Clerk X City of Miami Beach Ad:09292020-01 Page 103 of 281