2013-28295 Reso RESOLUTION NO. 2013-28295
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1)
THE PROPOSED GENERAL OPERATING MILLAGE
RATE FOR THE NORMANDY SHORES NEIGHBORHOOD
IMPROVEMENT DISTRICT; 2) THE CALCULATED
ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND
PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER
THE OPERATING MILLAGE RATE AND BUDGET FOR
FISCAL- YEAR (FY) `2013/14;--FURTHER AUTHORIZING
THE CITY MANAGER TO TRANSMIT THIS INFORMATION
TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER
IN THE FORM REQUIRED BY SECTION 200.065,
FLORIDA STATUTES.
WHEREAS, Section 200.065, Florida Statutes, has specified the method
by which municipalities may fix the operating millage rate and adopt an annual budget
for dependent taxing districts; and
WHEREAS the Mayor and City Commission of the City of Miami Beach
Y Y Y
acting as the Board of Directors of the Normandy Shores Local Government
Neighborhood Improvement District propose that the District's General Operating
Milla g e Rate be set at 1.2687 mills and that the Rolled-Back Rate be set at 1.0664 mills;
and
WHEREAS, the City of Miami Beach is required to advise the Miami-
Dade County Property Appraiser of the Proposed Normandy Shores Neighborhood
Improvement District Operating Millage Rate, the Rolled-Back Rate, and the date, time,
and place of the first public hearing.
NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF
DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, that the following recommendations of
the Administration be and are hereby ratified for transmittal to the Miami-Dade County
Property Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Normandy Shores Local Government Neighborhood Improvement
District Operating Millage Rate for FY 2012/13
General Operating 1.2687 mills
2) "Rolled-Back Rate" 1.0664 mills
3) The first public hearing on the proposed Normandy Shores Local Government
Neighborhood Improvement District operating millage rate and tentative budget
for FY 2013/14 shall be held on Wednesday, September 11, 2013 at 5:02 p.m., in
the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami
Beach, Florida.
PASSED and ADOPTED this 19th day of July, 2013.
ATTEST:
• ��Rp ORATE M OR
CITY CLERK
APPROVED AS TO
FORM&LANGUAGE
F CUTION
L
Ci Attorn ate
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1) THE PROPOSED GENERAL OPERATING
MILLAGE RATE FOR THE NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2) THE
CALCULATED ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND PLACE OF THE FIRST PUBLIC
HEARING TO CONSIDER THE OPERATING MILLAGE RATE AND BUDGET FOR FISCAL YEAR(FY)2013/14;
FURTHER AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE
COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES
Key Intended Outcome Supported:
Increase visibility of police; Maintain crime rates at or below national trends
Supporting Data(Surveys, Environmental Scan, etc.):
In the 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%)
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 Proposed
General Operating Millage Rate; the Calculated Rolled-Back Rate; and sets the date, time and place for the first
public hearing?
Item Summary/Recommendation:
The FY 2013/14 current service level budget is $192,000, which is 2% ($4,000) higher than the FY 2012/13
adopted budget. This is due primarily to the increasing cost of gate repairs and maintenance, based on the
current year experience. The current design of the security gate has contributed to multiple repairs and
increasing cost of maintenance and a $3,000 increase is budgeted for FY 2013/14. The current service millage
rate is 1.0826, a decrease of 0.0618 mills(5.4%)from the FY 2012/13 millage rate of 1.1444.The adoption of the
current service level millage of 1.0826 would require a majority vote of the Commission.
The rolled-back rate is the millage rate required to produce the same level of property tax revenue on FY 2013/14
as anticipated to be collected in FY 2012/13 based on adjusted values as of July 1, 2013. The rolled-back rate is
calculated at 1.0664 or 0.0780 mills less than the millage rate of 1.1444 adopted for FY 2012/13. The current
service level millage rate is slightly higher than the rolled- back rate due to the $4,000 increase in the projected
FY 2013/14 expenses mentioned above.
The Normandy District Homeowners' Association has proposed an enhancement to the current service level
budget of$40,000 to fund one-time costs associated with redesigning the security gate and enhancing security
camera equipment. The redesign of the gate is intended to resolve ongoing repair and maintenance issues
related to the existing design. The enhanced security camera equipment is a police department recommendation
that will help identify responsible vehicles to recoup funds from incidents of property damage claims. The
proposed budget with enhancements also includes an offsetting $7,000 savings to the projected repair and
maintenance budget line item. This savings is anticipated due to the redesign of the gate project.
The proposed ad valorem millage recommended by the Administration is 1.2687 mills to provide the enhanced
level of security requested by this district. The FY 2013/14 proposed millage rate is above the maximum millage
rate of 1.1928 allowed to be adopted by a two-thirds vote, and will therefore require a unanimous vote.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds:
1
2
OBPI Total
City Clerk's Office Legislative Tracking:
Sign-Offs:
Department Director Assistant City Manager City Manager
_-...
`1 AGENDA ITEM 99B
Nz�v MIAMI BEACH SATE -�
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 embers f the City Commission
FROM: Jimmy Morales, City Manager
DATE: July 17, 2013
SUBJECT:- A RESOLUTION OF THE BO RD' OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
SETTING 1) THE PROPOSED GENERAL OPERATING MILLAGE RATE FOR
THE NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2)
THE CALCULATED ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND
PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE OPERATING
MILLAGE RATE AND BUDGET FOR FISCAL YEAR (FY) 2013/14; FURTHER
AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO
THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM
REQUIRED BY SECTION 200.065, FLORIDA STATUTES
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 authorizes the City Manager to
transmit the following information to the Miami-Dade County Property Appraiser:
1) Proposed Operating Millage Rate of the Normandy Shores Neighborhood
Improvement District for FY 2013/14:
General Operating 1.2687 mills (1.1444) last year
2) "Rolled-Back" Rate (Truth In Millage) 1.0664 mills
3) The first public hearing to consider the proposed Normandy Shores
Neighborhood Improvement District operating millage rate and tentative
budget for FY 2013/14 shall be held on Wednesday, September 11, 2013
at 5:02 P.M., in the City Commission Chambers, City Hall, 1700
Convention Center Drive, Miami Beach, Florida.
FY 2013/14 Normandy Shores Proposed Millage Rate
July 17, 2013
Page 2of5
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 2013/14 represents it twentieth year
of operation.
It 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.
ANALYSIS - - - - - -
On July 1, 2013, the City received the 2012 Certification of Taxable Value from the Property
Appraiser's Office stating that the taxable value for Normandy Shores is $121,339,865,
which includes an increase of $360,092 in new construction, renovation, etc. The
preliminary value represents an increase of$8,946,451 from the July 1, 2012 Certification of
taxable Value of$112,393,414(7.9 percent)and an increase of 7.6 percent over 2012's July
2013 value of $112,735,259. It is important to note that the January 1, 2012 tax roll for
Normandy Shores increased by almost $342,000 (0.3%) between the July 1, 2012 valuation
and the July 1, 2013.
Current Service Level Budget
The current service level budget reflects budget increases or decreases necessary to
provide the current level of services in the coming year. The FY 2013/14 current service
.level budget is $192,000, which is 2% ($4,000) higher than the FY 2012/13 adopted budget.
This is due primarily to the increasing cost of gate repairs and maintenance, based on the
current year experience. The current design of the security gate has contributed to multiple
repairs and increasing cost of maintenance and a $3,000 increase is budgeted for FY
2013/14.
As a result of this increase in the current service level budget, the ad valorem millage to
provide the current level of security required by this district is 1.0826 mills, which is 0.0618
mills (5.4%) lower than the FY 2012/13 adopted millage of 1.1444 due to a 7.9% increase in
2013 property values. This tax levy would generate proceeds of$131,370.
FY 2013/14 Normandy Shores Proposed Millage Rate
July 17, 2013
Page 3 of 5
The rolled-back rate is the millage rate required to produce the same level of property tax
revenue on FY 2013/14 as collected in FY 2012/13. The rate is calculated as 1.0664, or
0.0780 mills less than the millage rate adopted for FY 2012/13. The rollback millage rate tax
levy would generate proceeds of $129,400. The difference between the current service
level and rollback rate levy is $ 1,970. The adoption of the current service level millage of
1.0826 would require a majority vote of the Commission.
Proposed FY 2013/14 Budget with Enhancements
The Normandy District Homeowners' Association has proposed an enhancement to the
current service level budget of $40,000 to fund one-time costs associated with redesigning
the security gate and enhancing security camera equipment. The redesign of the gate is
intended to resolve ongoing repair and maintenance issues related to the existing design.
The enhanced security camera equipment is a police department recommendation that will
help identify responsible vehicles to recoup funds from incidents of property damage claims.
The proposed budget with enhancements also includes an offsetting $7,000 savings to the
projected repair and maintenance budget line item. This savings is anticipated due to the
redesign of the gate project.
The proposed ad valorem millage recommended by the Administration is 1.2687 mills to
provide the current level of service, plus one-time enhancement requested by the
Homeowners' Association. This is 0.2023 mills more than the roll-back rate of 1.0664. This
tax levy will generate proceeds of $154,000. In order to adopt this millage rate, this would
require a unanimous vote by Commission.
The increase of 0.1243 mills from the prior year millage represents an annual increase of
$39.41 to the City average 2013 homesteaded property of$317,086 taxable value for a total
of approximately $402 per year($33.50 per month).
The total operating expenditures to provide the current service level with the proposed
enhancement is $225,000 for FY 2013/14. The City of Miami Beach General Fund is
required to provide 35% of the total operating expenditures ($78,750), and the City has
funded the 35% for each of the twenty years since the District was established. The amount
provided by the General Fund for this purpose in FY 2012/13 was $65,800. The $225,000
in FY 2013/14 represents a $37,000 increase (19.6%) from the FY 2012/13 budget of
$188,000, primarily due to the addition of$40,000 of one-time funding for the construction of
a new gate as well as security camera upgrades requested by the homeowners.
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 2013 Certification of Taxable Value and
has been set at $121,340. 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
$115,273. Accordingly, 1.2687 mills are required to generate $146,250 in property tax
revenues by the district.
FY 2013/14 Normandy Shores Proposed Millage Rate
July 17, 2013
Page 4 of 5
Statutory Requirement
FS 200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be
used by all local government entities, including dependent taxing districts like Normandy
Shores in setting its millage (property tax) rates. Not unlike its principal taxing authority(City
of Miami Beach), Normandy Shores is also required to transmit within 35 days from receipt
of the Certification of Taxable Value (received July 1, 2013), to the Miami-Dade County
Property Appraiser, a proposed operating millage rate, the calculated rolled-back rate and
the date, time, and place of the first public hearing to consider the proposed operating
millage rate and tentative budget for FY 2013/14.
The rolled-back rate is the millage rate required to produce the same level of property tax
revenue on FY 2013/14 as collected in FY 2012/13. The rate is calculated as 1.0664, or
0.0780 mills less than the millage rate adopted for FY 2012/13.
After setting the proposed operating millage rate for Normandy Shores, the City Commission
may, at any time prior to the final adoption, lower the millage rate; however any increase
above the proposed millage rate of 1.2687, if adopted, would require an expensive mailing
and advertising process to each property owner of Normandy Shores. Therefore, this
proposed millage rate is viewed as the ceiling.
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 1.0844 (equivalent to a 1.69% increase in Property Tax revenues). The
1.69% 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 1.1928 (equivalent to a 10% increase in Property Tax revenues above
Option 1).
• Option III: A unanimous approval of the Commission or referendum is required to
approve a millage above 1.1928 mills
The proposed rate of 1.2687 requires therefore unanimous approval (7 of 7 votes) of the
Commission.
First Public Hearing
The first public hearing on the proposed operating millage rate and tentative budget for FY
2013/14 must be held no later than 80 days (September 18th) or earlier than 65 days
(September 3rd) from the start of the TRIM calendar (July 1 st). Other guidelines are: 1) The
public hearing cannot be scheduled on a Sunday or on those days utilized by Miami-Dade
County or the Miami-Dade County School Board for their public hearing; 2) If on a day other
than Saturday, it must be held after 5:00 P.M.; and 3) must be held immediately following
discussion of the tentative millage and budget of its principal taxing authority (City of Miami
Beach).
FY 2013/14 Normandy Shores Proposed Millage Rate
July 17, 2013
Page 5of5
Based on these guidelines, the first hearing must be held between September 3rd and
September 18th. These dates are unavailable for the following reasons:
September 8 and 15 Sundays
September 10 and 19 Proposed dates for Miami-Dade County Public Hearing
September 3 Miami-Dade County School Board Public Hearing
Of the remaining days, it is recommended that the first public hearing be set for Wednesday,
September 11, 2013 at 5:02 P.M., in the City Commission Chambers, City Hall, 1700
Convention Center Drive, immediately following the City of Miami Beach's public hearing.
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