Resolution 2022-32336 RESOLUTION NO. 2022-32336
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING
BUDGET FOR FISCAL YEAR 2023.
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) 2023 operating expenditures;
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 FY
2023; and
WHEREAS, on September 28, 2022, 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
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 City
Commission, acting as the Board of Directors of the District, hereby adopts the final operating
budget for the District for FY 2023, as summarized and listed below:
Revenues
Ad Valorem Tax $ 282,000
Total $ 282,000
Expenditures
Security Services $ 214,000
Guardhouse Utilities, Maintenance, and Repairs 36,500
Renewal and Replacenient Set-Aside 20,000
Set-aside for Reserves 10,000
OIG Internal Service Charges 1,000
Other Miscellaneous Operating Expenditures 500
Total $282,000
PASSED AND ADOPTED this 28th day of September 20
ATTEST:
Dan Gelber, Mayor
Rafae er7E. Granado, City Clerk APPROVED AS TO FORM AND
' �'' LANGUAGE AND FOR EXECUTION
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IttCORP oRATEDI = fin City Attorney LW__ Date
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Resolutions - R7 D
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Aline 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 OPERATING BUDGET FOR FISCAL
YEAR 2023.
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
o Memo- FY 2023 Normandy Shores Budget
Page 264 of 508
1 f `
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 OPERATING BUDGET FOR FISCAL YEAR 2023
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) 2023 in the amount of
$282,000.
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 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
Page 265 of 508
FY 2023 Final Normandy Shores Operating Budget
September 28, 2022
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 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 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 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:
Page 266 of 508
FY 2023 Final Normandy Shores Operating Budget
September 28, 2022
Page 3 of 3
Items Included in FY 2023 Expenditures ;i $
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
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.
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 of$282,000 for the Normandy Shores Local Government
Neighborhood Improvement District for FY 2023.
Attachment A— FY 2023 Normandy Shores Budget
ATH/JW/TOS
Page 267 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 Ill
• Budget(z) 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(31 595 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 14) 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(61 0 0 0 - 1,000 1,000 0 0.0%
Utilities(Electricity&Telephone)(6) 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%
Renewal&,Replacement Set-Aside IA 0 0 0 , • 0 • 20,000 20,000 100.0%
fD
5,957 936 4,367 2,000 - 500 (1,500) -75.0%
CD
(n Other Expenditures Iel
Transfer to Reserve(3) 0 0 0 0 - 10,000 10,000 100.0%
0 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
CA
O REQUIRED MILEAGE 0.8161 0.8161 0.0773 1.0659 0.9717 (0.0942) -8.8%
Existing Values(16) 209,647,105 219,807,591 233,297,993 245,073,256 298,359,433 53,286,177 21.7%
New Construction(10) 2,458,268 3,896,854 9,459,518 3,782,998 7,113,479 3,330,481 88.0%
Total(1°I 212,105,373 223,704,445 242,757,511 248,856,254 305,472,912 56,616,658 22.8%
Value oft Mill 212,105 223,704 242,758 248,856 305,473 56,617 22.8%
95%of 1 Mill 2.01,500 212,519 230,620 236,413 290,199 53,786 22.8%
Footnotes:
1�1 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
(0)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
(3)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
(4)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%)
(s)Internal Service-OIG based on FY 2023 allocations
(6)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
(7)FY 2023 Renewal and Replacement Set-Aside of$20,000 for future renewal and replacement of Normandy Shores guardhouse assets
(6)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
I10I FY 2023 values based on Certified Values received July 1,2022 from the Miami-Dade County Property Appraiser