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96-22125 RESO RESOLUTION NO. 96-22125 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING AN AD VALOREM MILLAGE OF 0.980 MILLS FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS EIGHT AND NINE-TENTHS PERCENT (8.9%) LESS THAN THE "ROLLED-BACK" RATE OF 1.067 MILLS, FOR FISCAL YEAR 1996/97. 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, the Ad Valorem millage rate assigned amounts to 0.980 mills; and WHEREAS, the millage rate reflected is eight and nine tenths percent (8.9%) less than the "rolled-back" rate of 1.067 mills; and WHEREAS, on September 12, 1996, at a public hearing held before the Mayor and City Commission, acting as the Board of Directors of the District (Board), the Board tentatively adopted the operating millage rate and tentative operating budget for the District for FY 1996/97. NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, that, pursuant to Section 200.065, Florida Statutes, there is hereby levied a tax of 0.980 mills for Fiscal Year 1996/97 on all taxable and non-exempt real and personal property located within the boundaries of the Normandy Shores Neighborhood Improvement District for the purpose of providing security services. PASSED and ADOPTED this 25th day of September, 1996. \)j T. ?~ \.)\Lc MAYOR ATTEST: \\0 bJ. P tIA.~ CITY CLERK ,t,. II: n\UJ'.U j JNDING APPROVED -7{fIi tt!4; r,1anagement and 81' . . LEGAL DEPT. By j); kftttJ ~i?-:-. ''':3 -W~/5h~'H' CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 CITY OF MJArv'J1 BEACH .'0' ........ t" COMMISSION MEMORANDUM NO. 5 '7 <q-t} f., TO: Mayor Seymour Gelber and Members of the City Commission DATE: September 25, 1996 FROM: Jose Garcia_pedrosll City Manager A RESOLUTION THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING AN AD VALOREM MILLAGE OF 0.980 MILLS FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS EIGHT AND NINE-TENTHS PERCENT (8.9%) LESS THAN THE "ROLLED-BACK" RATE OF 1.067 MILLS, FOR FISCAL YEAR 1996/97. SUBJECT: RECOMMENDATION: The Administration recommends that the 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) Final adopted millage rate for FY 1996/97 Normandy Shores 0.980 mills (1.116 last year) 2) The adopted millage rate of 0.980 mills is 8.9% less than the "rolled-back" rate of 1.067 mills. The first public hearing on the proposed Normandy Shores millage rate and budget for FY 1996/97 was held at 5:02 P. M., Thursday, September 12, 1996 in the City Commission Chambers, City Hall, 1700 Convention Center Drive. At the end of the public hearing, the recommended millage rates were tentatively adopted. 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 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 operating budget must be approved. (See accompanying Agenda Item R-7F2 for details). AGENDAITEM~ DATE 'l-.~.:5-'1L, Normandy Shores FY 1996/97 Final Millage Page Two September 25, 1996 Due to a recent Florida state statute amendment, it is no longer required that the resolution be read aloud in its entirety; however, the statute does require the name of the taxing authority, the rolled back rate, the percentage increase, and the millage rate be publicly announced before the adoption of the millage levy resolution. Therefore, the resolution title only should be announced before the adoption of ~e millage resolution. 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 1996/97 represents its third year of operation. The district is 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". Using this restrictive language, taking into account the January 1, 1996, "Certification of Taxable Values" for this district, determining the highest assessed property within the district to be $509,754, translating this taxable value into a millage rate of 0.980; and calculating the highest assessment to be $499.56 which is less than $500. ANALYSIS The ad valorem millage recommended by the Administration is.0.980 mills to provide the level of security services required by this district. At this millage, no property owner's levy will exceed $500. This tax levy will generate proceeds of $47,448. The total operating budget to provide security services to this district for FY 1996/97 is $90,000. The total budgetary requirement of the district must be supplemented by the General Fund in the amount of $42,552 or 47% of the total operating budget. Historically, the gap which has been funded by the General Fund has risen from $42,119 in FY 1994/95 to $42,552, in FY 1996/97, or an increase of 1 %. This is solely due to the manner in which the millage must be calculated, given the $500 limitation. Administration has had two sessions with board members of the district to discuss the operating budget and review this operational anomaly. Recommendations will be developed to resolve this issue, and then presented during the ensuing budget year in a timely fashion, such that they may be incorporated into the FY 1997/98 budget development process. 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 mill ages from the dependent district (0.980) and the principal taxing authority (7.499) totals 8.479 mills, which is 1.521 mills less than the 10 mill cap. 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 a final millage. JGP:PFL:KRW:me