2011-27748 Reso RESOLUTION NO. 2011 -27748
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE FINAL 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.
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, 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 and adopted a millage rate of 1.0935; and
WHEREAS, accordingly on September 27, 2011, pursuant to Section 200.065 of the
Florida Statutes, the City Commission, acting as the Board of Directors of the District, held
its second duly noticed public hearing to consider the Final Ad Valorem Millage and Final
Operating Budget (FY 2011/12) for the District; and
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 27, 2011, the Board
hereby adopts the Final 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.
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PASSED and AD • P\,.. • hrisr�29;�'t: ay of September, 2011.
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ATTEST:
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FORM & LANGUAGE
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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 final 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.
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 final Ad Valorem
Millage Rate?
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 first public hearing on the tentative District millage rate and budget for FY 2011/12 was held on September 14,
2011. The millage rates presented herein are those which were tentatively adopted at the end of the first public
hearing held on that day. 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 S 2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Sign -Offs:
Department Dir ctor Assistant City Manager City Manager
cam
AGENDA ITEM R I
MIAMI BEACH
DATA F-.2. 7-11
al 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 City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: September 27, 2011 •
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING
THE FINAL 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.
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 final adopted millage rate for the Normandy Shores Neighborhood Improvement
District for FY 2011/12:
General Operating 1.0935 mills (1.0375 mills last year)
2) The final adopted millage rate of 1.0935 mills is 9.9% more than the "Rolled- Back" Rate of
0.9946 mills.
The first public hearing on the tentative District millage rate and budget for FY 2011/12 was held
on September 14, 2011. The millage rates presented herein are those which were tentatively
adopted at the end of the first public hearing held on that day.
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
FY 2011/12 Normandy Shores Millage Rate
September 27, 2011
Page 2
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 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 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 over the roll -back rate, 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 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.
FY 2011/12 Normandy Shores Millage Rate
September 27, 2011
Page 3
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 therefore requires a two- thirds approval (5 of 7 votes) of the City
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 adopts the final millage.
JMG:KGB:JC
1
NE THURSDAY, SEPTEMBER 15, 2011 I 13NE
MI AMIBEACH
CITY OF MIAMI BEACH
NOTICE OF A SPECIAL
CITY COMMISSION MEETING AND PUBLIC - HEARINGS
NOTICE IS HEREBY given that a Special Commission Meeting regarding the 2nd Proposed Budget Public Hearings for FY
2011/2012 will be held by the City Commission of the City of Miami Beach, Florida, on TUESDAY, September 27, 2011,
commencing at 5:00 P.M., in the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive, Miami Beach, -
Florida.
5:01 p.m.
The second public hearing adopting the proposed millage rate and budget for FY 2011/2012 for the City of Miami Beach.
y5:02 p.m.
The second public hearing adopting the proposed millage rate and budget for FY 2011/2012 for the Normandy Shores Local
Government Neighborhood Improvement District.
In addition, the City Commission will be discussing other City related business at this meeting.
Inquiries concerning this meeting should be directed to the Office of Budget and Performance Improvement at (305) 673 -7510.
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 any decision made by
the City Commission with respect to any matter considered at its meeting or its hearing, such person must ensure that a verbatim
record- of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. This
notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or irrelevant evidence, nor
does it authorize challengesQr appeals not otherwise allowed by law.
To request this material in accessible format, sign language interpreters, information on access for persons with disabilities, and /or
any accommodation to review any document or participate in any city- sponsored proceeding, please contact (305) 604 -2489 (voice),
( 7218(TTY) five days in advance to initiate your request. TTY users may also call 711 (Florida Relay Service).
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