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Resolution 2022-32335 RESOLUTION NO. 2022-32335 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM MILLAGE RATE OF 0.9717 MILLS FOR FISCAL YEAR 2023 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS NINE AND SIX TENTHS PERCENT(9.6%) MORE THAN THE "ROLLED-BACK" RATE OF 0.8864 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 establish 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 0.9407 mills, anything beyond this rate, up to 1.0348 mills, requires a two-thirds (5/7th) vote, and a unanimous approval is required to approve a millage rate above 1.0348 mills for Fiscal Year(FY) 2023; and WHEREAS, on July 20, 2022, the City Commission, acting as the Board of Directors of the District, adopted Resolution No. 2022-32253 which set the proposed operating millage rate of the District at 0.9717 mills for the purpose of providing security services within the District for FY 2023; and WHEREAS, at the first public hearing on September 14, 2022, in accordance with Section 200.065, Florida Statutes, the Mayor and City Commission, acting as the Board of Directors of the District, tentatively adopted the operating millage for the District of 0.9717 mills for FY 2023; and WHEREAS, on September 14, 2022, 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 FY 2023. 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 28, 2022, the Mayor and City Commission hereby adopt the Final Operating Millage rate of 0.9717 mills for the District for FY 2023, which is nine and six tenths percent (9.6%) more than the "Rolled-back" rate of 0.8864 mills. PASSED AND ADOPTED this 28th day of September 20 ATTEST: Dan Gelber, Mayor � Rafael E. Granad � ,.ttttttttrk APPROVED AS TO FORM AND vW, '' LANGUAGE AND FOR EXECUTION EP 2 9 2022 INCORPORATED' �l2 (ZZ % .. �1 4tr)I City Attorney Date Resolutions - R7 C MiAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Alina T. Hudak, City Manager DATE: September 28, 2022 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 0.9717 MILLS FOR FISCAL YEAR 2023 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS NINE AND SIX TENTHS PERCENT (9.6%) MORE THAN THE "ROLLED-BACK" RATE OF 0.8864 MILLS. RECOMMENDATION See attached Memorandum. SUPPORTING SURVEY DATA N/A FINANCIAL INFORMATION 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 Page 256 of 508 ❑ Memo- FY 2023 Normandy Shores Millage Page 257 of 508 MIAMI BEAC 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 28, 2022 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 0.9717 MILLS FOR FISCAL YEAR 2023 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS NINE AND SIX TENTHS PERCENT (9.6%) MORE THAN THE "ROLLED-BACK" RATE OF 0.8864 MILLS STRATEGIC PLAN SUPPORTED Organizational Innovation — Ensure strong fiscal stewardship 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 which authorizes the City Manager to transmit the following information to the Miami-Dade County Property Appraiser: The Final Adopted Millage Rate for the Normandy Shores Neighborhood Improvement District for Fiscal Year(FY) 2023: General Operating 0.9717 mills (0.0942 decrease from last year) The first public hearing on the tentative District millage rate and budget for FY 2023 was held on Wednesday, September 14, 2022. The millage rate herein is that which was tentatively adopted at the first public hearing on that day. On July 1, 2022, the City received the 2022 Certification of Taxable Value from the Miami-Dade County Property Appraiser for the Normandy Shores Local Government Neighborhood Improvement District indicating that the taxable value was approximately$305.5 million, including $7.1 million of new construction. Overall, this represents an increase of approximately $56.6 million, or 22.8 percent (%), over the 2021 Certification of Taxable Value of $248.9 million provided by the Miami-Dade County Property Appraiser as of July 1, 2021 for the Normandy Shores Local Government Neighborhood Improvement District. It is important to note that the final 2021 tax roll for the Normandy Shores Local Government Neighborhood Improvement District of $248.1 million is approximately$0.8 million, or 0.3%, lower than the 2021 Certification of Taxable Value due to appeals, adjustments, etc. Page 258 of 508 FY 2023 Normandy Shores Final Millage Rate September 28, 2022 Page 2 of 5 July 2021 Ii July 2022 i, -$ II - % Certified ill Certified I; Change II Change Property Assessment Existing Values 248,856,254 298,359,433 49,503,179 19.9% New Construction 0 7,113,479 7,113,479 100.0% Total Normandy Shores 248,856,254 305,472,912 56,616,658 22.8% 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 2023 represents its twenty-ninth 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." 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 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. Page 259 of 508 FY 2023 Normandy Shores Final Millage Rate September 28, 2022 Page 3 of 5 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 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. Final Budget & Millage The FY 2023 Normandy Shores Local Government Neighborhood Improvement District budget, as reflected in Attachment A, is $282,000, which reflects an increase of$30,000, or 11.9%, over the adopted FY 2022 budget of$252,000 and is comprised of the following expenditures: Items Included in FY 2023 Expenditures �i $ Contracted Security Guard Services for Guardhouse and 50%of Rover 214,000 Gate Maintenance and Repairs 25,500 Set-aside for Renewal and Replacement of Capital Assets 20,000 Set-aside for Reserve 10,000 Guardhouse Utilities 7,000 Guardhouse Janitorial Services 4,000 OIG Internal Service Charges 1,000 Other Miscellaneous Operating Expenditures 500 Total $282,000 Page 260 of 508 FY 2023 Normandy Shores Final Millage Rate September 28, 2022 Page 4 of 5 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 0.9717 mills, which is 0.0942 mills, or 8.8%, less than the adopted FY 2022 millage rate of 1.0659 mills. Based on the 2022 Certification of Taxable Value for the Normandy Shores Local Government Neighborhood Improvement District provided by the Miami-Dade Property Appraiser as of July 1, 2022, this tax levy would generate proceeds of$296,828, which will be budgeted at approximately 95.0%, or$281,987(rounded to$282,000),to account for early payment discounts, delinquencies, etc. This millage rate will fund the budget summarized above for the District for FY 2023, with no City subsidy. 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, 2021), 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 FY 2023. The "rolled-back" rate is the millage rate required to produce the same level of property tax revenue in FY 2023 as collected in FY 2022.The rate is calculated at 0.8864 mills,which is 0.1795 mills less than the millage rate of 1.0659 adopted for FY 2022. The "rolled-back" millage rate tax levy would generate proceeds of$270,771. The difference between the millage rate for FY 2023 and the "rolled-back" rate levy is $26,057. After setting the proposed operating millage rate for the Normandy Shores Local Government Neighborhood Improvement District, the City Commission may, at any time prior to the final adoption, lower the millage rate; however, any increase above the proposed rate of 0.9717 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 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 0.9407 mills (equivalent to a 6.13% increase in Property Tax revenues). The 1.0613 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 1.0348 mills(equivalent to a 10.0% 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 1.0348 mills. Page 261 of 508 FY 2023 Normandy Shores Final Millage Rate September 28, 2022 Page 5 of 5 Adoption of the final FY 2023 millaqe rate of 0.9717 mills for the Normandy Shores Local Government Neighborhood Improvement District would, therefore, require a two-thirds approval (5 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 (0.9717) and its principal taxing authority (5.8155)totals 6.7872 mills, which is 3.2128 mills less than the statutory cap of 10 mills. On September 14, 2022, the Mayor and City Commission adopted the tentative operating millage rate for the District of 0.9717 mills and tentative operating budget of$282,000 for FY 2023. 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 millage rate of 0.9717 mills for the Normandy Shores Local Government Neighborhood Improvement District for FY 2023. Attachment A— FY 2023 Normandy Shores Budget ATH/JW/TOS Page 262 of 508 ATTACHMENT A FY 2023 Normandy Shores District Budget FY 2022 FY 2023 $Variance %Variance FY 2019 FY 2020 FY 2021 Adopted Proposed FY 2023 Proposed vs FY 2023 Proposed vs Actuals Actuals Actuals 111 Budget Iz1 _ Budget FY 2022 Adopted FY 2022 Adopted REVENUES Residents 164,450 173,550 17,900 252,000 282,000 30,000 11.9% City 88,550 93,450 93,100 0 . 0 0 0.0% Restitutions 131 595 1,662 1,677 0 -0 0 0.0% Miscellaneous/Interest 1,408 1,131 80 0 0 0 0.0% Total $ 255,003 $ 269,793 $ 112,757 $ 252,000 '$ 282,000 $ 30,000 11.9% EXPENDITURES . Internal Service-Security Guard Services 141 210,000 217,000 210,000 214,000 214,000 0 0.0% Janitorial Services 1,067 3,892 3,877 4,000 - 4,000 0 0.0% Gate Repairs(AAA Repairs) 19,170 31,099 24,291 -20,000 20,500 500 2.5% Other Repairs and Maintenance 0 0 0 4,000 5,000 1,000 25.0% Internal Service-OIG Set-Aside R) 0 0 0 1,000 1,000 0 0.0% Utilities(Electricity&Telephone)I61 1,723 5,835 5,655 7,000 - 7,000 0 0.0% RFID System 0 42,199 0 0 0 0 0.0% LPR Camera System 0 0 35,554 0 0 0 0.0% NRenewal&Replacement Set-Aside 191 0 0 0 0 - 20,000 20,000 100.0% CO Other Expenditures 181 5,957 936 4,367 2,000 500 (1,500) -75.0% CD Transfer to Reserve 191 0 0 0 0 10,000 10,000 100.0% 01 Total $ 237,917 $ 300,961 $ 283,744 $ ` 252,000 $ 282,000 $ 30,000 11.9% CO 0 Surplus/(Shortfall) $ 17,086 $ (31,168) $ (170,987) $ 0 $ 0 $ 0 01 0 CO REQUIRED MILLAGE 0.8161 0.8161 0.0773 1.0659 0.9717 (0.0942) -8.8% Existing Values 1301 209,647,105 219,807,591 233,297,993 245,073,256 298,359,433 53,286,177 21.7% New Construction 1101 2,458,268 3,896,854 9,459,518 3,782,998 7,113,479 3,330,481 88.0% Total MI 212,105,373 223,704,445 242,757,511 248,856,254 305,472,912 56,616,658 22.8% Value of 1 MIII 212,105 223,704 242,758 248,856 305,473 56,617 22.8% 95%of 1 Mill 201,500 212,519 230,620 236,413 290,199 53,786 22.8% Footnotes: 111 The FY 2021 millage and budget was adopted to comply with the$500 cap codified on the levy of property taxes per parcel for operations of the Normandy Shores Local Government Neighborhood Improvement District,which resulted in a significant reduction in revenue of$155,000 based on the decrease in the FY 2021 millage rate from the proposed millage of 0.7497 mills to 0.0773 mills.To offset the reduction in revenue in FY 2021,available fund balance projected in the Normandy Shores Fund of$135,000 was appropriated,the budget reduced by$20,000,and the City's original 35.0%subsidy of$93,100 maintained for FY 2021 121 Effective FY 2022,the City Commission adopted Ordinance 2020-4236 eliminating the$500 per parcel cap and Resolution No.2021-31819 eliminating the City's annual subsidy of 35.0%for operations of the Normandy Shores Local Government Neighborhood Improvement District,while maintaining the City's 50.0%contribution towards the cost of the security rover 131 Per the Facilities&Fleet Management Department,necessary gate repairs funded outside of the District's budget were made and restitutions totaling$8,828.56 collected during FY 2022 141 Security guard services for FY 2023 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 $2,880 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 2023).The cost of the security rover and rental of golf cart is split-funded between Normandy Shores(50%)via Prop Mgmt.chargeback and the City(50%) 191 Internal Service-OIG based on FY 2023 allocations 161 Utilities for FY 2023 based on FY 2022 actuals to date,plus projected increase of 4%in electricity based on notification from FPL on rate increase p1 FY 2023 Renewal and Replacement Set-Aside of$20,000 for future renewal and replacement of Normandy Shores guardhouse assets 181 Other Expenditures for FY 2023 based on annual Special Taxing District state fee paid to the Department of Economic Opportunity (9)FY 2023 Transfer to Reserve of$10,000 budgeted to offset negative fund balance of$9,677 as of September 30,2021 1101 FY 2023 values based on Certified Values received July 1,2022 from the Miami-Dade County Property Appraiser