Resolution 2021-31859RESOLUTION NO. 2021-31859
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE
TENTATIVE OPERATING BUDGET FOR FISCAL YEAR 2022,
SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON
THURSDAY, SEPTEMBER 30, 2021, AT 5:02 P.M.
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 tentative
budget has been developed to fund projected Fiscal Year 2022 operating expenditures; and
WHEREAS, on September 17, 2021, 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 Fiscal
Year 2022.
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 17, 2021, the City
Commission, acting as the Board of Directors of the District, hereby adopts the tentative
operating budget for the District for Fiscal Year 2022, as summarized and listed below, subject
to a second public hearing scheduled on Thursday, September 30, 2021, at 5:02 P.M.
Revenues
Ad Valorem Tax $252,000
Total $ 252,000
Expenditures
Security Services $ 214,000
Utilities and Maintenance 35,000
Other Miscellaneous Operating Expenditures 2,000
OIG Internal Service Charges 1,000
Total $ 252,000
PASSED AND ADOPTED this 17th day of September 2021.
ATTEST:-"
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Resolutions - R7 E
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 17, 2021
5:02 p.m. First Reading Public Hearing
SUBJECT:A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR
FISCAL YEAR 2022, SUBJECT TO A SECOND PUBLIC HEARING
SCHEDULED ON THURSDAY, SEPTEMBER 30, 2021, AT 5:02 P.M.
SUPPORTING SURVEY DATA
N/A
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
❑ Memo - Normandy Shores Budget
❑ Resolution
Page 1038 of 1657
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 17, 2021
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING
THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR 2022, SUBJECT TO A
SECOND PUBLIC HEARING SCHEDULED ON THURSDAY, SEPTEMBER 30, 2021,
AT 5:02 P.M.
STRATEGIC PLAN SUPPORTED
Organizational Innovation — Ensure strong fiscal stewardship
ADMINISTRATION RECOMMENDATION
Adopt the Resolution which establishes the tentative operating budget for the Normandy Shores
Local Government Neighborhood Improvement District for Fiscal Year 2022 in the amount of
$252,000, subject to a second public hearing scheduled on Thursday, September 30, 2021, at 5:02
p.m. immediately following the City of Miami Beach's public hearing.
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 2022 represents its twenty-eighth
year of operation.
The District was established by Ordinance 93-2881 and had 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."
On September 11, 1997, Resolution 97-22522 adopted the District's Tentative FY 1998 millage rate.
The accompanying memorandum noted that the City had been funding the gap between the
revenues generated from the ad valorem taxes and the budget, that the City could not continue to
subsidize this budget and that the District should be self-sustaining. This memorandum also noted
that Resolution 97-22487 included the City Commission's direction to the City Clerk to take such
steps as may be necessary to hold a special referendum for the purpose of authorizing special
assessments to raise $41,915 for operating purposes within the District for FY 1998.
On September 23, 1998, Resolution 98-22902 adopted the District's FY 1999 budget. The
accompanying memorandum noted that the City had been funding the gap between the revenues
Page 1039 of 1657
FY 2022 Tentative Normandy Shores Budget
September 17, 2021
Page 2 of 3
generated from the ad valorem taxes and the budget and that a determination was reached that the
City would fund 35% of the annual cost of the community guard gate. It also stated that the cost
would eventually be funded. by the golf course and that the City Attorney's Office would review the
issue of the dependent status of the District, and the City would continue supplementing the budget
at current levels until both issues are resolved.
On September 25, 2002, Ordinance 2002-3380 adopted the removal of the $500 annual cap per
parcel. The accompanying memorandum noted that the City's 35% contribution will be maintained.
In 2015, as part of a "clean up" Ordinance to repeal three other safe neighborhood districts that
were no longer active, the Mayor and City Commission enacted Ordinance 2015-3928. With respect
to the Normandy Shores District, because the prior versions of the ordinance had not been codified
as part of the consolidated legislation of the City, the 2015 Ordinance sought to codify the
legislation, but in so doing, inadvertently re -adopted the original 1993 Ordinance - which included
an ad valorem cap of $500 per property - and not the correct, and most recent, version of the
legislation, the 2002 Ordinance, which deleted the cap of $500 per property.
In order to correct the inadvertent error in the 2015 Ordinance and eliminate the $500 per property
cap, as intended since 2002, the Mayor and City Commission adopted Ordinance 2020-4386 on
December 9, 2020.
At the July 23, 2021 Finance and Economic Resiliency Committee meeting, the Committee
recommended the elimination of the 35% City subsidy totaling $91,700 in the FY 2022 preliminary
budget, while maintaining the City's 50% contribution, or $30,000, toward the total cost of $60,000
for the security rover.
On July 28, 2021, the City Commission, through Resolution No. 2021-31819, approved the
recommendation of the Finance and Economic Resiliency Committee (FERC) eliminating the City's
35% subsidy, while maintaining the City's 50% contribution, or $30,000, toward the total cost of
$60,000 for the security rover.
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 tentative millage for the Normandy Shores Local Government Neighborhood
Improvement District has been adopted (see accompanying District Millage agenda item for details).
ANALYSIS
The Normandy Shores Local Government Neighborhood Improvement District budget proposed for
FY 2022, as reflected in Attachment A, is $252,000, which reflects an increase of $3,000, or 1.2%,
over the FY 2021 adopted budget and is comprised of the following line -item expenditures:
Page 1040 of 1657
FY 2022 Tentative Normandy Shores Budget
September 17, 2029
Page 3 of 3
IncludedItems ...
Contracted Security Guard Services for Guardhouse and 50% of Rover
214,000
Gate Maintenance and Repairs
24,000
Utilities
7,000
Guardhouse Janitorial Services
4,000
Other Miscellaneous Operating Expenditures
2,000
OIG Internal Service Charges
1,000
Total
$252,000
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 1.0659 mills. This tax levy will generate proceeds of $265,256, which will be budgeted at
approximately 95.0%, or $251,993 (rounded to $252,000), to account for early payment discounts,
delinquencies, etc. This millage rate will fund the proposed FY 2022 budget summarized above for
the District, with no City subsidy.
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 a tentative operating budget of $252,000 for Fiscal Year 2022 and schedules the
second and final public hearing on Thursday, September 30, 2021, at 5:02 p.m.
Attachment A — FY 2022 Proposed Normandy Shores Budget
ATH/JW/TOS
Page 1041 of 1657
ATTACHMENT A
Surplus / (Shortfall)
FY 2022 Normandy Shores District Budget
31,8901
$ 17,086 1
$ (31,168) $
0
FY 2018
Actuals
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budget
FY 2022
Proposed
Budget
$ Variance
FY 2022 Budget vs
FY 2021 Adopted
% Variance
FY 2022 Budget vs
FY 2021 Adopted
REVENUES
REQUIRED MILLAGE
0.9564
0.8161
0.8161
Residents 65%
180,050
164,450
173,550
17,900
252,000
234,100
1307.8%
City 35%
96,950
88,550
93,450
93,100
0
(93,100)
100.0.0
Restitutions
6,207
595
1,662
0
01
0
0.0%
Miscellaneous/Interest
176
1,408
1,131
3,000
0
(3,000)
-100.0%
Fund Balance/Retained Earnings")
0
0
0
135,000
0
(135,000)
100.0%
Total
$ 283,383 $
255,003 $
269,793 $
249,000 $
252,000
$ 3,000
1.2%
EXPENDITURES
Security Guard Services RI
210,000
210,000
217,000
210,000
214,ODD
4,000
1.9%
Janitorial Services
0
1,067
3,892
4,000
4,000
0
0.0%
Gate Repairs (AAA Repairs)
22,428
19,170
31,099
20,000
20,000
0
0.0%
Internal Service - Other Repairs
0
0
0
51000
4,000
(1,000)
-20.000/6
Internal Service - OIG Set -Aside (5)
0
0
0
1,000
1,000
0
0.0%
Utilities (Electricity & Telephone) (9)
1,260
1,723
5,835
7,000
7,000
0
0.0%
RFID System
0
0
42,200
0
0
0
0.0%
Video Camera System Upgrade
0
0
0
0
0
0
0.0%
AED Guardhouse Defibrillator
1,404
0
0
0
0
0
0.0%
Other Expenditures isl
1 16,400
5,957
936
2,000
2,000
0
0.076
Total
1 $ 251,493 1 $
237,9171 $
300,961 $
249,000 1 $
252,0001$
3,0001
1.2%
Surplus / (Shortfall)
1 $
31,8901
$ 17,086 1
$ (31,168) $
0
$ 0 $
0
REQUIRED MILLAGE
0.9564
0.8161
0.8161
0.0773
1.0659
0.9886 1279.8%
Existing Values 196,441,992 209,647,105 219,807,591 233,297,993 245,073,256 11,775,263 5.0%
New Construction 1,719,766 2,458,268 3,896,854 9,459,518 3,782,998 (5,676,520) -60.0%
Total 198,161,758 212,105,373 223,704,445 242,757,511 248,856,254 6,098,743 2.5%
Value of 1 Mill 198,162 212,105 223,704 242,758 248,856 6,099 2.5%
95% of 1 Mill 188,254 201,500 212,519 230,620 236,413 5,794 2.5%
Footnotes:
111 FY 2021 Adopted Budget was based on a one-time use of fund balance for operations of the district
12) FY 2022 security guard services based on current hourly rate of $21.03 for services provided 24 hours/day, 7 days/week, for guardhouse, plus 49 hours a week for a security rover at $21.03 per hour and $5,760 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 2022). 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 an increase of $0.32 in the contracted hourly rate and an increase of $480 for the golf cart rental
rate.
i;l 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 to be finalized once FY 2022 OIG budget is finalized
191 Utility costs based on FY 2021 actuals to date, plus projected increase of 1.1% for CPI in accordance with the City's utility fee rates
1s1 Other Expenditures includes the annual Special Taxing District state fee paid to the Department of Economic Opportunity and funding for repairs and maintenance. The concrete Island project included in the FY 2022
Preliminary Budget, in the amount of $10,000, was subsequently withdrawn based on the 6/17/2021 Normandy Shores Local Government Improvement Board Meeting
Page 1042 of 1657