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2008-26862 ResoRESOLUTION NO. 2008-26862 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1) THE PROPOSED GENERAL OPERATING MILEAGE RATE FOR THE NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2) THE CALCULATED ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE OPERATING MILEAGE RATE AND BUDGET FOR FISCAL YEAR (FY) 2008/09; FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION- 200.065, FLORIDA STATUTES. 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, the Mayor and City Commission of the City of Miami Beach, acting as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District propose that the District's General Operating Millage Rate be set at 0.7227 mills and that the Rolled-Back Rate be set at 1.0489 mills; and WHEREAS, the FY 2007/08 budget included a $46,649 one-time repayment to the City for a property tax collection shortfall that occurred in FY 2006/07; and WHEREAS, the City of .Miami Beach is required to advise the Miami- Dade County Property Appraiser of the Proposed Normandy Shores Neighborhood Improvement District Operating Millage Rate, the Rolled-Back Rate, and the date, time, and place of the first public hearing. NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, that the following recommendations of the Administration be and are hereby ratified for transmittal to the Miami-Dade County Property Appraiser, as specified in Section 200.065, Florida Statutes: 1) 'Proposed Normandy Shores Local Government Neighborhood Improvement District Operating Millage Rate for FY 2008/09 General Operating 0.7227 mills 2) "Rolled-Back Rate" 1.0489 mills 3) The first public hearing on the proposed Normandy Shores Local Government Neighborhood Improvement District operating millage rate and tentative budget for FY 2008/09 shall be held on Monday, September 8, 2008 at 5:02 p.m., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. APPROVED AS TO FORM & LANGUAGE PASSED and ADOPTED this 16th day of July, 2008. ATTEST: ~' ~ MAYOR Matti Herrera Bower CITY CLERK Robert Parcher & FO EXECUTION ~ !r ©Q m a COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1) THE PROPOSED GENERAL OPERATING MILEAGE RATE FOR THE NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2) THE CALCULATED ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE OPERATING MILEAGE RATE AND BUDGET FOR FISCAL YEAR (FY) 2008/09; FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADS COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES Key Intended Outcome 5upportea: Increase resident ratings of public safety services; Maintain crime rates at or below national trends Supporting Data (Surveys, Environmental Scan, etc.): Safety across the City (preventing crime, drugs, gangs, speeding cars) was ranked number one by residents as one of the most important areas affecting their quality of life and it was also mentioned as one of the changes that would make Miami Beach a better place to live, work, play, or visit. Safety during the day appeared as a key driver for resident's perceptions of Miami Beach as a place to live and overall quality of life. Also, crime prevention was ranked number four by residents as one of the most important areas that the Ci can address with re ards to ublic safe . 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 Proposed General Operating Millage Rate; the Calculated Rolled-Back Rate; and sets the date, time and place for the first public hearing? Item Summary/Recommendation: The proposed ad valorem millage recommended by the Administration is 0.7227 mills to provide the current level of security required by this district. The rolled-back rate is the millage rate required to produce the same level of property tax revenue on FY 2008/09 as collected in FY 2007/08. The rate is calculated as 1.0489 or 0.0126 mills more than the millage rate adopted for FY 2007/08. Board Recommendation: Financial Information: Source of Amount Account Funds: ~ 2 OBPI Total Financial Impact Summary: This tax levy will generate proceeds of $98,981. The total operating expenditures to provide the current service level to this district is $152,278 for FY 2008/09. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($53,297), and the City has funded the 35% for each of the fifteen years since the District was established. The amount provided by the General Fund for this purpose in FY 2007/08 was $55,014. The $152,278 in FY 2008/09 represents a $51,555 decrease (25%) from the FY 2007/08 budget of $203,833. In FY 2007/08, the budget included a $46,649 one-time re a ment to the Ci fora roe tax collection shortfall that occurred in FY 2006/07. Ci Clerk's Office Le islative Trackin Si n-Offs: Department Director Assistant City Manager City Manager AGENDA ITEM ` `~ ,~ fl/1 I AM I B EAC H DATE ~'(6 ~~ ~ MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: July 16, 2008 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1) THE PROPOSED GENERAL OPERATING MILEAGE RATE FOR THE NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2) THE CALCULATED ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE OPERATING MILEAGE RATE AND BUDGET FOR FISCAL YEAR (FY) 2008/09; FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES 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: 1) Proposed Operating Millage Rate of the Normandy Shores Neighborhood Improvement District for FY 2008/09: General Operating 0.7227 mills 2) "Rolled-Back" Rate (Truth In Millage) 1.0489 mills 3) The first public hearing to consider the proposed Normandy Shores Neighborhood Improvement District operating millage rate and tentative budget for FY 2008/09 shall be held on Monday, September 8, 2008 at 5:02 P.M., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. 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 2008/09 represents its fifteenth year of operation. FY 2008/09 Normandy Shores Proposed Millage Rate July 16, 2008 Page 2 of 3 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 forsuch improvements" 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 gate guard. This cost will eventually be funded from the golf course operation of the Normandy Shores Golf Course. It was further agreed that the City would continue to supplement the District at current levels until both issues were resolved. On August 29, 2002, the Administration met with the Normandy Shores Local Government Neighborhood Improvement 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. The FY 2007/08 millage rate required an increase above the FY 2006/07 millage rate to address aMiami-Dade County Property Appraiser error with the Certified 2006 Taxable Value. Therefore, property tax collections in FY 2006/07 resulted in a shortfall of $46,649 which needed to be advanced from the City and repaid by the Normandy Shores taxing district in FY 2007/08. Accordingly, the Normandy Shores taxing district millage for FY 2007/08 was set at the level needed to cover FY 2007/08 expenditures (0.7115) as well as repay the FY 2006/07 shortfall (0.3248) for a total Normandy Shores millage of 1.0363. Statutory Requirement FS 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 (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, 2008), 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 tentative budget for FY 2008/09. After setting the proposed operating millage rate for Normandy Shores, the City Commission may,. at any time prior to the final adoption, lower the millage rate; however any increase above the proposed millage rate of 0.7227, if adopted, would require an expensive mailing and advertising process to each property owner of Normandy Shores. Therefore, this proposed millage rate is viewed as the ceiling. The rolled-back rate is the millage rate required to produce the same level of property tax revenue on FY 2008/09 as collected in FY 2007/08. The rate is calculated as 1.0489 or 0..0126 mills more than the millage rate adopted for FY 2007/08. ANALYSIS On July 1, 2008, the City received the 2008 Certification of Taxable Value from the Property Appraiser's Office stating that the taxable value for Normandy Shores is $144,174,761 which includes a net new taxable value decrease of $482,845. The preliminary value represents a decrease of 1.5 percent over 2007's final value of $146,410,255. FY 2008/09 Normandy Shores Proposed Millage Rate July 16, 2008 Page 3 of 3 Operating Millage and Budget The proposed ad valorem millage recommended by the Administration is 0.7227 mills to provide the current level of security required by this district. This tax levy will generate proceeds of $98,981. The total operating expenditures to provide the current service level to this district is $152,278 for FY 2008/09. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($53,297), and the City has funded the 35% for each of the fifteen years since the District was established. The amount provided by the General Fund for this purpose in FY 2007/08 was $55,014. The $152,278 in FY 2008/09 represents a $51,555 decrease (25%) from the FY 2007/08 budget of $203,833. In FY 2007/08, the budget included a $46,649 one-time repayment to the City for a property tax collection shortfall that occurred in FY 2006/07. The FY 2007/08 budget would have been $157,184 net of the one-time repayment. Therefore, the FY 2008/09 budget reflects a decrease of $4,906 or 3.1 percent from the FY 2007/08 budget for operations. For the Normandy Shores taxing District, the value for each mill ($1.00 of ad valorem tax for each $1,000 of property value) is determined by the 2008 Certification of Taxable Value and has been set at $144,175. Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is $136,966. Accordingly, 0.7227 mills are required to generate $98,981 in property tax revenues by the district. 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 (0.7227) and the principal taxing authority (5.6555) totals 6.3782 mills, which is 3.6218 mills less than the 10 mill cap. First Public Hearing The first public hearing on the proposed operating millage rate and tentative budget for FY 2008/09 must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd) from the start of the TRIM calendar (July 1st). Other guidelines are: 1) The public hearing cannot be scheduled on a Sunday or on those days utilized by Miami-Dade County or the Miami-Dade County School Board for their public hearing; 2) If on a day other than Saturday, it must be held after 5:00 P.M.; and 3) must be held immediately following discussion of the tentative millage and budget of its principal taxing authority (City of Miami Beach). Based on these guidelines, the first hearing must be held between September 3rd and September 18th. These dates are unavailable for the following reasons: September 7 and 14 Sundays September 4 and 18 Proposed dates for Miami-Dade County Public Hearing September 10 Miami-Dade County School Board Public Hearing Of the remaining days, it is recommended that the first public hearing be set for Monday, September 8, 2008 at 5:02 P.M., in the City Commission Chambers, City Hall, 1700 Convention Center Drive, immediately following the City of Miami Beach's public hearing. JMG:KB:JC