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2011-27734 Reso RESOLUTION NO. 2011 -27734 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR (FY) 2011/12 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 for the purpose of providing security services within the District, a tentative budget has been developed to fund projected FY 2011/12 operating expenses; 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 budget for the District for FY 2011/12 as summarized and listed below, subject to a second public hearing scheduled on Tuesday, September 27, 2011 at 5:02 P.M.: Revenues Ad Valorem Tax $ 108,469 City's General Fund 58,406 Total $ 166,875 Expenses Security Service $ 156,724 Maintenance 10,151 Total $ 166,875 vennioN PASSED e .40b r► ` �PT1P N):4, 14th day of September, 2011. ,► : • 4/r/� ! .INCORP ORATED` * % « airper - the District ATTEST: = APPROVED AS TO / r e • ......�" ,��'�.. FORM & LANGUAGE I G / i tt ►�'' `' �.:•••••••��`' & FOR EXECUTION Secretary to the District Ai I''' Aq Attome ; Date COMMISSION ITEM SUMMARY Condensed Title: A resolution adopting the tentative operating budget for the Normandy Shores Local Government Neighborhood Improvement District for Fiscal Year (FY) 2011/12 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, approve the tentative operating budget for the District for FY 2011/12 in the amount of $166,875 subject to a second Public Hearing scheduled on Tuesday, September 27, 2011, at 5:02 P.M? Item Summary /Recommendation: The total operating expenditures to provide the current service level to this district is $166,875 for FY 2011/12. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($58,406), and the City has funded the 35% for each of the eighteen years since the District was established. The amount provided by the General Fund for this purpose in FY 2010/11 was $57,161. The $166,875 in FY 2011/12 represents a $3,558 increase (2.2 %) from the FY 2010/11 budget of $163,317, primarily due to the estimated impact of the living wage ordinance on the security contract expenses. To provide the current level of security required by this district, the Administration recommends the proposed ad valorem millage of 1.0935 mills. 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 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. Advisory Board Recommendation: Financial Information: Source of Amount Account Approved Funds: 1 $ 108,469 Normandy Shores District 7-‘• 2 58,406 General Fund OBPI Total $ 166,875 City Clerk's Office Legislative Tracking: Si gn -Offs: Depart ent Dire tor Assistant City Manager City Man .: - r t I I 1 AGE I DA ITEM IR 7 g 2-- .��: DATE 9 /ylI CI 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 of the y 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 OPERATING BUDGET FOR FISCAL YEAR (FY) 2011/12 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON TUESDAY, SEPTEMBER 27, 2011 AT 5:02 P.M. ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the tentative operating budget for the Normandy Shores Local Government Neighborhood Improvement District for FY 2011/12 in the amount of $166,875, subject to a second public hearing to be held on Tuesday, September 27, 2011. 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. 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% 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 tentative millage for Normandy Shores District has been adopted (See accompanying District Millage Agenda Item for details). FY 2011/12 Normandy Shores Proposed Budget September 14, 2011 Page 2of2 ANALYSIS The total operating expenditures to provide the current service level to this district is $166,875 for FY 2011/12. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($58,406), and the City has funded the 35% for each of the eighteen years since the District was established. The amount provided by the General Fund for this purpose in FY 2010/11 was $57,161. The $166,875 in FY 2011/12 represents a $3,558 increase (2.2 %) from the FY 2010/11 budget of $163,317, primarily due to the estimated impact of the living wage ordinance on the security contract expenses. To provide the current level of security required by this district, the Administration recommends the ro osed ad valorem millage of 1.0935 mills. This tax levy will generate proceeds of P P 9 Y 9 p $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 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 tentative operating budget for the District is as follows: Revenues Ad Valorem Tax $ 108,469 City's General Fund 58,406 Total $ 166,875 Expenses Security Service $ 156,724 Maintenance 10,151 Total $ 166,875 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 tentative operating budget and schedules the second and final public hearing. JMG:KGB:JC