2004-25686 Reso
RESOLUTION NO. 2004-25686
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE AD
VALOREM MILLAGE OF 1.123 MILLS FOR FISCAL YEAR 2004/05
FOR THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS
THIRTEEN AND FIVE TENTHS PERCENT (13.5%) GREATER
THAN THE "ROLLED-BACK" RATE OF 0.989 MILLS, SUBJECT
TO A SECOND PUBLIC HEARING SCHEDULED ON TUESDAY,
SEPTEMBER 28,2004 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, Section 200.065, Florida Statutes, has specified the method by which
municipalities may fix the operating millage rate and adopt an annual budget for dependent
taxing districts; and
WHEREAS, on July 28, 2004, the City Commission adopted Resolution 2004-25633
which set the proposed operating millage rate for the District at 1.123 mills for the purpose of
providing security services within the District; and
WHEREAS, on September 9, 2004, a public hearing was held before the Mayor and
City Commission, acting as the Board, to discuss the tentative operating millage rate and
operating budget for the District for Fiscal Year (FY) 2004/05.
NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF
THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT, that the Board hereby adopts the tentative operating millage rate of 1.123 mills for
the District for FY 2004/05, which exceeds the "Rolled-back" rate of 0.989 mills by thirteen
and five tenths percent (13.5%), subject to a second public hearing scheduled on Tuesday,
September 28,2004, at 5:02 P.M.
PASSED and ADOPTED this 9th day of September 20 .
ATTEST:
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Secretary to the District
APPROveD AS TO
fORM & lANGUAGE
& fOR ECUTlON
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Dato
CITY 01: M'AMI BEACH
COMMISSION ITEM SUMMARY
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Condensed Title:
Resolution Of The Board Of Directors Of The Normandy Shores Local Government Neighborhood
Improvement District Adopting The Tentative Ad Valorem Millage Of 1.123 Mills For Fiscal Year
2004/05 For The Normandy Shores Local Government Neighborhood Improvement District, Which
Exceeds The "Rolled-Back" Rate Of 0.989 Mills By Thirteen And Five Tenths Percent (13.5%),
Subject Of A Second Public Hearing Scheduled On Tuesday, September 28,2004 At 5:02 P.M.
Issue:
Shall 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 sets the tentative millage and sets the date for the second public hearing.
Item Summa /Recommendation:
The Mayor and City Commission, acting in its capacity as the Board of Directors of the District,
should adopt the attached resolution which sets the tentative millage and sets the date for the
second ublic hearin .
Advisory Board Recommendation:
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Financial Information:
Source of
Funds:
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Finance Dept.
City Clerk's Office Legislative Tracking:
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Si n-Offs:
City Manager
AGENDA ITEM
1<761
Q-9-oL(
DATE
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www.ci.miami-beach.fl.us
COMMISSION MEMORANDUM
From:
Mayor David Dermer and Date: September 9, 2004
Members of the City Commission
Jorge M. Gonzalez \. ,. ,/
City Manager O~
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT ADOPTING THE TENTATIVE AD VALOREM MILLAGE OF
1.123 MILLS FOR FISCAL YEAR 2004/05 FOR THE NORMANDY SHORES
LOCAL GOVERNMENT DISTRICT, WHICH IS THIRTEEN AND FIVE
TENTHS PERCENT (13.5%) GREATER THAN THE "ROLLED-BACK"
RATE OF 0.989 MILLS, SUBJECT TO A SECOND PUBLIC HEARING
SCHEDULED ON TUESDAY, SEPTEMBER 28,2004 AT 5:02 P.M.
To:
Subject:
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 sets the following:
1) The tentatively adopted millage rate for the Normandy Shores Neighborhood
Improvement District for FY 2004/05:
General Operating 1 .123 mills
(1.123 mills last year)
2) The tentatively adopted millage rate of 1.123 mills is 13.5% greater than the "Rolled-
back" Rate of 0.989 mills.
3) The second public hearing to consider the final Normandy Shores District millage rate
and budget for FY 2004/05 shall be at 5:02 P.M., Tuesday, September 28,2004 in the
City Commission Chambers, City Hall, 1700 Convention Center Drive.
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 2004/05 represents its eleventh year of
operation.
It 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". However, on August 29, 2002, the
Administration met with the Normandy Shores Local Government Neighborhood Improvement
Normandy Shores FY 2004/05 Tentative Millage
September 9, 2004
Page Two
District representatives and agreed to eliminate the $500 cap on the highest valued home in
the District. The enabling legislation was adopted by the Commission on September 25,2002.
This ensures that the City's contribution from the General Fund remains at 35% of the
operating budget of the District.
During FY 1998/99, 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.
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. The City Attorney's Office is reviewing the
issue regarding the dependent status of the District. It was further agreed that the City would
continue to supplement the District at current levels until both issues were resolved.
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., City of Miami
Beach.
It also prescribes that a tentative millage be adopted first. This is accomplished by adopting a
Resolution which states the percent increase or decrease over the "Rolled-back" rate, and the
date, time, and place of the second public hearing scheduled to adopt the final millage.
Following this, another Resolution which tentatively adopts the Normandy Shores District
operating budget must be approved. (See accompanying Agenda item R7B2 for details).
The statute requires the name of the taxing authority, the rolled-back rate, the percentage
increase, and the millage rate be publicly announced before adoption ofthe millage resolution.
ANAL YSIS
On July 1,2004, the City received the 2004 Certification of Taxable Value from the Property
Appraiser's Office stating that the taxable value for Normandy Shores is $85,172,305, which
included $33,243 in new construction. The preliminary value represents an increase of 13.6
percent over 2003's final value of $75,009,529. Alternately, the increase is 12.9 percent over
2003's preliminary value of $75,443,157. The difference of $433,628 between 2003's
preliminary and final values represents the equalization loss of less than one percent due to
appeals.
The tentative ad valorem millage recommended by the Administration is 1.003 mills to provide
the current level of security required by this district. This tax levy will generate proceeds of
$82,438. The total operating budget to provide security services at the current service level to
this district is $126,800. This is comparable to the current year end projections. The difference
between the revenues which will be generated from ad-valorem tax proceeds and the total
budgetary requirement of the district must be supplemented by a contribution from the General
Fund in the amount of $44,362 or 35% of the total operating budget for the current service
levels.
Normandy Shores FY 2004/05 Tentative Millage
September 9, 2004
Page Three
The General Fund has funded this difference for each of the ten years since the District was
established. The amount provided by the General Fund for this purpose in FY 2003/04 was
$44,042.
In addition, a meeting was held on July 21, 2004 between the Normandy Shores Local
Government Neighborhood Improvement Committee and the Administration to discuss
additional needs of the neighborhood. The Committee unanimously approved an increase to
the budget of $9,863 to pay for additional security cameras and a small contingency. This
additional amount will be paid by establishing the millage at the current rate of 1.123 which will
generate revenues of $92,301. The difference between the recommended millage of 1.003
needed to fund current service levels and the 1.123 will generate $9,863 to pay for the security
cameras and a small contingency. The District's budget will increase by $9,863 to $136,663.
On July 28, 2004, the City Commission adopted Resolution 2004-25633 which set the
proposed operating millage rate for the District at 1.123 mills. It must be noted that in
accordance with State Statute, there is a 10 mill operating cap which cannot be exceeded
without voter approval. Combining both millages from the dependent district (1.123) and the
principal taxing authority (7.425) totals 8.548 mills, which is 1.452 mills less than the 10 mill
cap.
CONCLUSION
The City Commission, acting in its capacity as the Board of Directors of the District, should
adopt the attached Resolution which establishes a tentative millage and schedules the second
and final public hearing.
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