2010-27495 Reso R7H2RESOLUTION NO.
2010-27495
i
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMAI
SHORES LOCAL GOVERNMENT NEIGHBORHOOD ~IMPROVEM
DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FIS
YEAR (FY) 2010/11, SUBJECT TO A SECOND PUBLIC HEAF
SCHEDULED ON MONDAY, SEPTEMBER 20, 2010 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 a tentative budget has been developed to fund projected Fiscal Year
(FY) 2010/11 District operating expenses; and
WHEREAS, Section 200.065, Florida Statutes, specifies the method by which
municipalities may fix the operating millage rate and adopt an annual budget for
dependent taxing districts; and
WHEREAS, the maximum millage that can be approved by a simple majority vote
(4/7t"S vote) is 1.0375; beyond this, would require a 5/7tnsvote; and ~
WHEREAS, on July 14, 2010, the City Administration had proposed a millage of
1.0957, sufficient to cover the current service level budget; and
WHEREAS, the proposed millage of 1.0957 failed to obtain the required 5/7tns vote
(i.e. required to exceed the 1.0375 millage); and
WHEREAS, on July 14, 2010, the Mayor and City Commission, acting as the
Board of Directors of the District, adopted Resolution No. 2010-27450, which set the
Proposed General Operating Millage Rate for the District at 1.0375; and
WHEREAS, the effect of the Proposed Operating Millage Rate of the District being
set at 1.0375 results in a shortfall in the annual operating budget of the District, in the
amount of $5,639; and ~
WHEREAS, the City Administration evaluated two possible options on funding this
shortfall, and recommends using funding from the proceeds from the City's sale of the
Normandy Shores stash site (in 1993) to make up the difference; and
WHEREAS, the Administration met with the District Board and' the President of
the Normandy Shores Homeowners' Association in August and they requested that
these funds be utilized to cover the shortfall; and
WHEREAS, in order to utilize these funds, the Commission would need to waive
the established City's policy of not utilizing one-time, non-recurring revenue to subsidize
recurring personnel, operating, and maintenance costs; and
WHEREAS, this one-time use represents only a small percentage of the available
funds; and ~
I
WHEREAS, to ensure that a shortfall does not re-occur in FY2011/12, and that
the City does not continue to use one-time revenues for recurring expenses, the
Administrations' recommendation would be that the City Commission increase the
millage for the District next year, in order to recapture the current service level funding
going forward; and
WHEREAS, accordingly, on September 15, 2010, pursuant to Section 200.065 of
the 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 (FY 2010/11) for the District.
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 15, 2010, the Board hereby waives the City's policy of not utilizing
one-time, non-recurring revenue to subsidize recurring personnel, operating and
maintenance costs, and adopts the Tentative Operating Budget (FY 2010/11) for the
Normandy Shores Local Government Improvement District, as summarized and listed
below, subject to a second public hearing, scheduled on Monday, September 20, 2010
at 5:02 P. M.:
Revenues
Ad Valorem Tax
Proceeds from Sale of Stash Site
City's Genaral Fund
Total
Expenses
Security Service
Maintenance
Total
Revised Budget
1.0375 Mills
$ 100,517
5,639
57,161
$ 163,317
$ 152,792
10,525
$ 163,317
PASSED and ADOPTED this 15th day of September, 2010.
of the
ATTEST:
~ P~.~,~
Secretary to the District
APPROVED AS
FORM & LANGU
& FnH EXECUT
a1g\iu
Condensed Title:
COMMISSION ITEM SUMMARY
A resolution adopting the tentative operating budget for the Normandy Shores Local Government Neighborhood
Improvement District for Fiscal Year (FY) 2010/11 subject to a second public hearing scheduled on Mon ay,
Se tember 20, 2010 at 5:02 .m.
Key Intended Outcome Supported: ~
~ Increase visibility of police; Maintain crime rates at or below national trends. I
- --
upporting Data (Surveys, Environmental Scan, etc.):
In 2009 Community Survey, both residents and businesses reported the following areas for the City to address i an
effort to improve public safety:
• Preventing crime (Residents: 44.9%, Business: 43.9%)
• Increasin olice visibili ~ Residents: 32.4%, Business: 33.1%
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, approve the tentative operating budget for the District for FY
2010/11 in the amount of $163,317 subject to a second Public Hearing scheduled on Monday, September 20, 2010,
at 5:02 P.M? I
Item Summa /Recommendation: ~
On July 14, 2010, the City administration had proposed a millage rate of 1.0957, sufficient to cover the $163,317
current service level budget and offset the 13.5% decline in property values for Normandy Shores. The proposed
millage rate failed to obtain the 5/7 vote required for the millage rate of 1.0957, therefore the millage was approved at
1.0375 (simple majority vote).
The revised proposed ad valorem millage of 1.0375 mills will generate proceeds of $100,517, or $5,639 less in
revenues to pay for security services required by this district. The effect on the District is a shortfall in the budget of
$5,639. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures
($57,161), and the City has funded the 35% for each of the seventeen years since the District was established. With
the decrease in the millage, the City's portion would decrease to $54,126, for a total shortfall of $8,674.
The City has evaluated two possible options on closing this shortfall and recommends using Option 1. This option
maintains the current security service level and uses the Normandy Shores stash site dollars which resulted from~the
sale of the stash site in 1993, as requested by the Normandy Shores Homeowners' Association. These funds are to
be used exclusively for the island. While the Administration is continuing to research the final account balance, the
fund currently has at least $70,000. The Administration met with the District Board and the President of the
Normandy Shores Homeowners' Association in August and they requested that these funds be utilized to cover the
shortfall.
In order to utilize these funds, the Commission would need to waive the City's policy of not utilizing one-time, non-
recurring revenue to subsidize recurring personnel, operating and maintenance costs. However, this one-time use
represents only a small percent of the available funds. To ensure that a shortfall does not re-occur in FY2011~12,
and that the City does not continue to use one-time revenues for recurring expenses, the intent would be to increase
the millage for the Normandy Shores Local Government Neighborhood Improvement District next year in order to
recapture the current service level funding going forward.
Advisory Board Recommendation: i
Financial Information:
Source of
F
Amount
Account
Approved
unds: 1 $ 100,517 Normandy Shores
District
2 5,639 Proceeds from Sale of
Stash Site
3 57,161 Genera! Fund
OBPI Total $ 163,317 1
Financial Impact Summary: I
Glerk's Office Legislative Tracki
uepantment uirec~r I Assistant City Manager I City Manager ~
m MIAMIBEACH
nn~
AGENDA ITEM R 1 ~"~ 2
DATE ~"~ s ~(7
I
i
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
COMMISSION MEMORAND
TO: Mayor Matti Herrera Bower and Members of the Ci Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 15, 2010
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHOF
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPT
THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR (F~ 2010/11 SUBJI
TO A SECOND PUBLIC HEARING SCHEDULED ON MONDAY, SEPTEMBER
2010 AT 5:02 P.M. i
ADMINISTRATION RECOMMENDATION
Adopt the Resolution which establishes the tentative operating budget for the Normandy Shores
Local Government Neighborhood improvement District for FY 2010/11 in the amount of
$163,317, subject to a second public hearing to be held on Monday, September 20, 2010.
BACKGROUND
The Normandy Shores Local Government Neighborhood Improvement District (the 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 2010/11 represents its
seventeenth 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". 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°/a 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 wwith 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. ,
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 tentative millage for Normandy Shores District has been adopted (See
accompanying District Millage Agenda Item for details}.
FY 2010/11 Normandy Shores Proposed Budget
September 15, 2010
Page2of3
ANALYSIS
The FY 2010/11 budget to maintain the current service levels is $163,317, which incl
adjustment of $13,890 due to recently enacted changes in the City's Living Wage Oi
which impacted contracted employees including security guards. The budget for FY 200!
$147,377.
Section 200.065 of Florida Statutes specifies the method by which municipalities m
operating millage rate and adopt an annual budget for dependent taxing districts. The i
millage that can be approved by a simple majority (4/7) vote is based on property tax n
prior years adjusted for changes in per capita Florida personal income growth. For FY
the maximum millage rate is 1.0375. State Statute allows fora 10% above maximur
with a 5/7 vote.
On July 14, 2010, the City administration had proposed a millage of 1.0957, sufficient
the $163,317 current service level budget and offset the 13.5% decline in property v
Normandy Shores. The proposed millage rate failed to obtain the 5/7 vote require
millage rate of 1.0957, therefore the millage was approved at 1.0375 (simple majority
The revised proposed ad valorem millage of 1.0375 mills will generate proceeds of $10
$5,639 less in revenues to pay for security services required by this district. The effe
District is a shortfall in the budget of $5,639. The City of Miami Beach General Fund is
to provide 35% of the total operating expenditures ($57,161), and the City has funded
for each of the seventeen years since the District was established. With the decrea
millage, the City's portion would decrease to $54,126, for a total shortfall of $8,674.
The City has evaluated two possible options on closing this shortfall.
OPTION 1
The Normandy Shores Homeowners' Association has requested that service le
maintained at existing levels through the use of the Normandy Shores stash site dolla
resulted from the sale of the stash site in 1993 (see attached letter). These funds are to
exclusively for the island. While the Administration is continuing to research the final
balance, the fund currently has at least $70,000. The Administration met with the Distri
and the President of the Normandy Shores Homeowners' Association in August
requested that these funds be utilized to cover the shortfall.
In. order to utilize these funds, the Commission would need to waive the City's poll
utilizing one-time, non-recurring revenue to subsidize recurring personnel, opera
maintenance costs. However, this one-time use represents only a small portion of the
funds. To ensure that a shortfall does not re-occur in FY2011l12, and that the City
continue to use one-time revenues for recurring expenses, the intent would be to incr
millage for the District next year in order to recapture the current service level fundi
forward.
udes an
dinance
t/10 was
fix .the
enue in
)10/11,
millage
> cover
ues for
for the
ate).
517, or
on the
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;t Board
nd they
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se the
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FY 2010/11 Normandy Shores Proposed Budget
September 15, 2010
Page 3 of 3
OPTION 2
Reduce the level of security services by approximately 500 hours at the end of the fiscal year. If
the homeowners agree to fund the shortfall, the City would match the district's contribution using
the established 65/35% split.
The original proposed operating budget was amended as follows to reflect option 1:
Revised Budget Original Budget
1.0375 Mills 1.0957 Mills
Revenues
Ad Valorem Tax $ 100,517 $ 106,156
Proceeds from Sale of Stash Site 5,639 0
City's General Fund 57,161 57,161
Total $ 163,317 $ 163,317
Expenses
Security Service $ 152,792 $ 152,792
Maintenance 10,525 10,525
Total $ 163,317 $ 163,317
CONCLUSION
I
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 tentative operating budget consistent with Option 1 and schedules the
second and final public hearing. ~
JMG:K:JC
From: minas@aol.com [mailto:mina5@aol.com]
Sent: Tuesday, August 24, 2010 10:13 PM
To: Libbin, Jerry; Rodriguez, Enid
Subject: Letter To Cover Budget Deficit
Dear Commissioner:
Attached please find our HOA letter requesting the use of funds from the sale of'th
across from the golf course to cover the budget deficit this coming year.
We really appreciate your help with this matter.
I
i
Thank You
Mickey Minagorri
President HOA
Normandy Shores
two parcels
Normandy Shores
Homeowners Association
1065 Fairway Dr. Miami Beach, Florida 33141
Dear Commissioner Li66in,
It has been brought up to our attention that Normandy
Shores tivill have a budget deficit for this coming fiscal
year of ($8,674.). Because of this deficit, one of the
recommendations has been to leave the guard house at ;
our island entrance unattended between the hours of ~ ~~
3:ooam and4:3oam daily. Besides creating a ~~
management nigFitmare for the security company to ~,
have to create two full time sFi~s and two part-time '
sGc~s to meet tGcis new schedule, it also creates a security!
risk for the entire island
It is my understanding, tGcat there are moneys still i
remaining in a specialfundfrom the sale of the two ~'
parcels of land across from the golf course. I believe this is
a perfect opportunity for our island to request that this
deficit 6e coveredwitFc the funds available in that
account.
.9-Toping that you can help us resolve this matter, I
remain.
.Mickey .~-~linagorri
7'resident .~f0.~1.
Normandy SGcores
Miami Beach, Florida
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