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Resolution 2021-31874RESOLUTION NO. 2021-31874 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR 2022. 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) 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 and adopted the Tentative Ad Valorem Millage and Tentative Operating Budget for FY 2022 for the District; and WHEREAS, on September 30, 2021, 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 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 30, 2021, the City Commission, acting as the Board of Directors of the District, hereby adopts the final operating budget for the District for FY 2022, as summarized and listed below: Revenues Ad Valorem Tax Total Expenditures $252,000 $ 252,000 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 30th day of September, 2021. ATTEST: Secretary to the District 0 11 q4t. W-40 OCT 0:12021 rperson of the District APPROVED AS TO �OA LANGUAGE & FOR EXECUTION .� _ ?� City ktomey �—� Date Resolutions - R7 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: September 30, 2021 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 2022. RECOMMENDATION See attached Memorandum. SUPPORTING SURVEY DATA N/A Applicable Area Citywide Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Yes Does this item utilize G.O. Bond Funds? No Strategic Connection Organizational Innovation- Ensure strong fiscal stewardship. Legislative Tracking Office of Management and Budget ATTACHMENTS: Description- ❑ Memo -Final Normandy Shores Budget ❑ Resolution Page 136 of 397 MIAMI EA H 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 30, 2021 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 2022 STRATEGIC PLAN SUPPORTED Organizational Innovation — Ensure strong fiscal stewardship ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the final operating budget for the Normandy Shores Local Government Neighborhood Improvement District for Fiscal Year (FY) 2022 in the amount of $252,000. 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 No. 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 No. 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 No. 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 No. 98-22902 adopted the District's FY 1999 budget. The accompanying memorandum noted that the City had been funding the gap between the revenues 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 Page 137 of 397 FY 2022 Final Normandy Shores Budget September 30, 2021 Page 2 of 3 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 No. 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 No. 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 No. 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 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 2022 Normandy Shores Local Government Neighborhood Improvement District budget, 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 138 of 397 FY 2022 Final Normandy Shores Budget September 30, 2021 Page 3 of 3 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 11000 Total $252,000 To provide the current level of security required by the Normandy Shores Local Government Neighborhood Improvement District, the Administration recommends an 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 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 the final operating budget for the District of $252,000 for FY 2022. Attachment A — FY 2022 Normandy Shores Budget ATH/JW/TOS Page 139 of 397 ATTACHMENT A Surplus/(Shortfall) I $ 31,890 1 $ 17,086 1 $ (31,168) $ 0 1 $ 0 1 $ 01 1 REQUIRED MILLAGE 0.9564 0.8161 0.8161 1 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: 31 FY 2021 Adopted Budget was based on a one-time use of fund balance for operations of the district 121 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. (3) OIG Internal Service charge based on FY 2022 allocations (4) 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 - (s) 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 140 of 397 FY 2022 Normandy Shores District Budget Y 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 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% Restitutions 6,207 595 1,662 0 0 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 (Z) 210,000 210,000 217,000 210,000 214,000 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 5,000 4,000 (1,000) -20.0% Internal Service - OIG Set -Aside 13) 0 0 0 1,000 1,000 0 0.0% Utilities (Electricity & Telephone)14) 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 1sl 16,400 5,957 936 2,000 1 2,000 0 0.0% Total $ 251,493 $ 237,917 $ 300,961 $ 249,000 $ 252,000 $ 3,000 1 1.2% Surplus/(Shortfall) I $ 31,890 1 $ 17,086 1 $ (31,168) $ 0 1 $ 0 1 $ 01 1 REQUIRED MILLAGE 0.9564 0.8161 0.8161 1 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: 31 FY 2021 Adopted Budget was based on a one-time use of fund balance for operations of the district 121 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. (3) OIG Internal Service charge based on FY 2022 allocations (4) 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 - (s) 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 140 of 397