2011-27733 Reso RESOLUTION NO. 2011 - 27733
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT ADOPTING THE TENTATIVE AD VALOREM MILLAGE OF
1.0935 MILLS FOR FISCAL YEAR (FY) 2011/12 FOR THE NORMANDY
SHORES LOCAL GOVERNMENT DISTRICT, WHICH IS NINE AND NINE -
TENTH PERCENT (9.9 %) MORE THAN THE "ROLLED- BACK" RATE OF
0.9946 MILLS, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED
ON TUESDAY, SEPTEMBER 27, 2011 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, 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 (4/7)
vote is 1.0001; anything beyond that requires a 5 /7 vote; and
WHEREAS, on July 13, 2011, the City Commission adopted Resolution 2011 -27700
which set the proposed operating millage rate for the District at 1.0935 mills for the purpose of
providing security services within the District; and
WHEREAS, accordingly, on September 14, 2011, pursuant to Section 200.065 of the
Florida Statues, 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 2011/12) 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 14, 2011, the Board
hereby adopts the Tentative Operating Millage rate of 1.0935 mills for the District for FY
2011/12, which is nine and nine -tenth percent (9.9 %) more than the "Rolled- back" rate of
0.9946 mills, subject to a second public hearing scheduled on Tuesday, September 27, 2011,
at 5:02 P.M.
PASSED and ADOPTED ti` September 2011.
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ATTEST: = : INCORP ORATED' *
APPROVED AS TO
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Secretary to t e District 'N • 777 .. & FO• EXECUTION
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Board Of Directors of The Normandy Shores Local Government Neighborhood Improvement
District adopting the tentative Ad Valorem Millage Rate Of 1.0935 Mills For The Normandy Shores Neighborhood
Improvement District, which is nine and nine -tenth (9.9 %) more than the "rolled- back" rate of 0.9946 mills, subject to
a second public hearing scheduled on Tuesday, September 27, 2011 At 5:02 P.M.
Key Intended Outcome Supported:
Increase visibility of police; Maintain crime rates at or below national trends.
Supporting Data (Surveys, Environmental Scan, etc.):
In 2009 Community Survey, both residents and businesses reported the following areas for the City to address in an
effort to improve public safety:
• Preventing crime (Residents: 44.9 %, Business: 43.9 %)
• Increasing police visibility (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, adopt the attached resolution which sets the tentative Ad Valorem
Millage Rate; the Calculated Rolled -Back Rate; and sets the date, time and place for the second public hearing?
Item Summary /Recommendation:
The proposed ad valorem millage recommended by the Administration is 1.0935 mills to provide the current level of
security required by this district. 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 2011 Certification of Taxable Value and has been set at
$104,412. 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 $99,191. The 1.0935 mills will generate proceeds of $108,469, 65
percent of the proposed district budget. In addition, the City of Miami Beach General Fund is required to provide
35% of the total operating expenditures ($58,406). The City has funded the 35% for each of the eighteen years since
the District was established.
The increase of 0.0560 mills from the prior year millage represents an annual increase of $15.17 to the City average
2010 homesteaded property of $271,000 taxable value (estimate based on Ad Valorem Assessment Roll received
from the Miami Dade County Property Appraiser on August 17, 2010), a total of approximately $296 per year ($25
per month).
It must be noted that in FY 2010/11, the adopted millage rate of 1.0375 resulted in a budget shortfall of $8,674. In
order to close this gap, the Commission voted to waive the City's policy of not utilizing one -time, non - recurring
revenue to subsidize recurring personnel, operating and maintenance costs and allowed the use of $5,639 Normandy
Shores stash site dollars which resulted from the sale of the stash site in 1993, matched by an additional $3,035 in
City dollars. Since this was a one -time action, the FY 2011/12 proposed millage rate includes 0.0568 mills to fund
this amount.
The FY 2011/12 proposed millage rate is above the maximum millage rate of 1.0001 allowed to be adopted by a
majority vote, and will therefore require a 5/7 vote.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: 1
N/A 2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Sign -Offs:
Departmen Directo Assistant City Manager City Manager
CA AA AAA BEACH AGENDA ITEM R7 g
DATA
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members oft City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 14, 2011
SUBJECT:A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT ADOPTING THE TENTATIVE AD VALOREM MILLAGE OF 1.0935
MILLS FOR FISCAL YEAR (FY) 2011/12 FOR THE NORMANDY SHORES
LOCAL GOVERNMENT DISTRICT, WHICH IS NINE AND NINE -TENTH
PERCENT (9.9 %) MORE THAN THE "ROLLED- BACK" RATE OF 0.9946
MILLS SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON
TUESDAY, SEPTEMBER 27, 2011 AT 5:02 P.M.
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 of the Normandy Shores Neighborhood
Improvement District for FY 2011/12:
General Operating 1.0935 mills (1.0375 mills last year)
2) The tentatively adopted millage rate of 1.0935 mills is 9.9% more than the
"Rolled- Back" Rate of 0.9946 mills
3) The second public hearing to consider the final Normandy Shores
Neighborhood Improvement District operating millage rate and tentative
budget for FY 2011/12 shall be held on Tuesday, September 27 2011 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 (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 2011/12 represents its
eighteenth year of operation.
FY 2011/12 Normandy Shores Tentative Millage Rate
September 14, 2011
Page2of3
The District was established by Ordinance 93 -2881 and has the authority "to levy an ad-
y � y y
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% 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.
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 District Budget Agenda item 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 of the millage
resolution.
ANALYSIS
On July 1, 2011, the City received the 2011 Certification of Taxable Value from the Property
Appraiser's Office stating that the taxable value for Normandy Shores is $104,411,853,
which includes $370,264 due to new construction, renovation, etc. The preliminary value
represents an increase of $2,428,718 from the July 1, 2010 Certification of taxable Value of
$101,983,135 (2.4 percent) and an increase of 4.7 percent over 2010's final value of
$99,739,506.
The proposed ad valorem millage recommended by the Administration is 1.0935 mills to
provide the current level of security required by this district. This tax levy will generate
proceeds of $108,469. The increase of 0.0560 mills from the prior year millage represents
an annual increase of $15.17 to the City average 2010 homesteaded property of $271,000
taxable value (estimate based on Ad Valorem Assessment Roll received from the Miami
Dade County Property Appraiser on August 17, 2010), a total of approximately $296 per year
($25 per month).
It must be noted that in FY 2010/11, the adopted millage rate of 1.0375 resulted in a budget
shortfall of $8,674. In order to close this gap, the Commission voted to waive the City's
FY 2011/12 Normandy Shores Tentative Millage Rate
September 14, 2011
Page 3 of 3
policy of not utilizing one -time, non - recurring revenue to subsidize recurring personnel,
operating and maintenance costs and allowed the use of $5,639 Normandy Shores stash
site dollars which resulted from the sale of the stash site in 1993, matched by an additional
$3,035 in City dollars. Since this was a one -time action, the FY 2011/12 proposed millage
rate includes 0.0568 mills to fund this amount.
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 2011 Certification of Taxable Value and
has been set at $104,412. 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
$99,191. Accordingly, 1.0935 mills are required to generate $108,469 in property tax
revenues by the district.
The rolled -back rate is the millage rate required to produce the same level of property tax
revenue in FY 2011/12 as collected in FY 2010/11. The rate is calculated as 0.9946 or
0.0429 mills less than the millage rate adopted for FY 2010/11.
Further, pursuant to State Statute, the City may elect to approve millage rates above the roll-
back rate up to the constitutional cap of 10 mills subject to the following votes by the
Commission or referendum:
• Option I: A majority of the approval of the Commission Millage is required to approve a
millage up to 1.0001 (equivalent to a 0.55% increase in Property Tax revenues). The
0.55% increase is the state per capita personal income gain for the prior calendar year.
• Option II: A two- thirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 1.1001 (equivalent to a 10% increase in Property Tax revenues above
Option I).
• Option III: A unanimous approval of the Commission or referendum is required to
approve a millage above 1.1001 mills
The proposed rate of 1.0935 requires therefore a two- thirds approval (5 of 7 votes) of the
Commission.
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 (1.0935) and the principal taxing authority (6.2155) totals 7.309 mills, which is 2.691
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.
MIAMIBEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that public hearings will be held by the Mayor and City
Ba h Florida, on Wednesday, Commisson of ember 14T " tl 2 011 t t o
Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive, Miami
consider the following:
5:01 p.m.
THE FIRST PUBLIC HEARING ADOPTING THE PROPOSED MILLAGE RATE AND BUDGET FOR FISCAL YEAR 2011/2012 FOR THE CITY OF MIAMI BEACH.
5:02 p.m.
THE FIRST PUBLIC HEARING ADOPTING THE PROPOSED MILEAGE RATE AND BUDGET FOR FISCAL YEAR 2011/2012 FOR THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT.
Inquiries may be directed to the Budget Office at (305) 673 -7510.
r at this meeting, or be represented by an agent, or to express their views in writing addressed to the
to appear g ordinances
INTERESTED PARTIES are invited pp Florida 33139. Copies of these ordin
i Beach
City Commission, c/o the City Clerk, 1700 Convention Center Drive, 1st Floor, City Hall, Miami Beach, tY Clerk's Office, 1700 Convention Center Drive l st Floor, City Hall, and
the City Clerk
are available for public inspection during normal business hours in t ty
Miami Beach, Florida 33139. This meeting may be continued and under such circumstances additional legal notice would not be provided.
Robert E. Parcher, City Clerk
City of Miami Beach
Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that: if a person decides to appeal at any v ci m ad d of the
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