2016-29485 Reso RESOLUTION NO. 2016-29485
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) 2016/17; 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,
acting as the Board of Directors of the Normandy Shores Local Government
Neighborhood Improvement District propose that the District's General Operating
Millage Rate be set at 1.0093 mills and that the Rolled-Back Rate be set at 0.8821 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 2016/17
General Operating 1.0093 mills
2) "Rolled-Back Rate" 0.8821 mills
3) The first public hearing on the proposed Normandy Shores Local Government
Neighborhood Improvement District operating millage rate and tentative budget
for FY 2016/17 shall be held on Wednesday, September 14, 2016 at 5:01 p.m., in
the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami
Beach, Florida.
PASSED and ADOPTED this 13th day of July, 2016
ATTEST:
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City Attorney Date
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) 2016/17;
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:
Ensure expenditure trends are sustainable over the long term.
Supporting Data (Surveys, Environmental Scan, etc.):
In the 2014 Community Survey, both residents and businesses reported the following areas for the City to
address in an effort to improve public safety:
® Neighborhood safety during the day(Residents:98%)
e Neighborhood safety during the evening/night(Residents: 88%)
Item Summary/Recommendation:
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, 2016), 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
2016/17.
The proposed FY 2016/17 current service level (CSL) budget is $257,000. The CSL budget provides for
continual 24-hour security and line items which were requested and approved by the Normandy District
Homeowners' Association on June 27, 2016 which includes $171,000 for security services, $3,000 for janitorial
services, and $56,000 for other repairs including gate, gear, motor repairs for the gates and mold remediation of
the guardhouse. The budget is 13.7 percent($31,000)higher than the FY 2015/16 adopted budget.
The proposed ad valorem millage recommended by the Administration is 1.0093 mills. This millage rate will fund
the current service level budget for the district as well as some remediation work to be performed to the
guardhouse, as requested by the homeowners' association. The proposed millage rate is equivalent to the FY
2015/16 adopted millage. This tax levy would generate proceeds of $177,697 ($168,000 at 95%). The FY
2016/17 proposed millage rate will require a majority vote.
The rolled-back rate is the millage rate required to produce the same level of property tax revenue in FY 2016/17
as collected in FY 2015/16. The rate is calculated as 0.8821, or 0.1272 mills less than the millage rate adopted
for FY 2015/16. The rolled-back millage rate tax levy would generate proceeds of $147,537. The difference
between the current service level and rolled-back rate levy is$21,275.
Advisory Board Recommendation:
Normandy Shores Local Government Neighborhood Improvement Board meetings on June 27th and August 18`h,
2016.
Financial Information:
Source of Amount Account
Funds:
1
2
OBPI Total
Financial Impact Summary The July 1, 2016, Certification of Taxable Value from the Miami-Dade Property
Appraiser reflects a 14.91 percent increase in property tax values from the July 1, 2015, tax roll certification. The
proposed millage rate for the FY 2016/17 budget results in property taxes of$168,000 in the Normandy Shores
Neighborhood District Homeowners'Association.
City Clerk's Office Legislative Tracking:
Sign-Offs:
Department Director Assistant City Manager c ty A.1.40.07-0/0Th
�DA ITEM R 713
MIAMIBEACH AGDATE 7 13-/o
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members f the City c'mmission
FROM: Jimmy Morales, City Manager
DATE: July 13, 2016
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) 2016/17; 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 Millage Rate for the Normandy Shores Neighborhood Improvement
District for FY 2016/17:
General Operating 1.0093 mills (equivalent to last year)
2) "Rolled-Back" Rate (Truth in Millage) 0.8821 mills
3) The first public hearing to consider the proposed Normandy Shores Neighborhood
Improvement District operating millage rate and tentative budget for FY 2016/17 shall be
Wednesday, September 14, 2016 at 5:01 p.m., in the City Commission Chambers, City
Hall, 1700 Convention Center Drive, Miami Beach, Florida.
FY 2016/17 Normandy Shores Proposed Millage Rate
July 13, 2016
Page 2 of 4
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 2016/17 represents it twenty-third
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.
ANALYSIS
On July 1, 2016, the City received the 2016 Certification of Taxable Value from the Property
Appraiser's Office stating that the taxable value for Normandy Shores is $176,059,811
which includes an increase of $3,058,319 in new construction, renovation, etc. This
represents an increase of $22,848,325 (14.91 percent) from the July 1, 2015 taxable value
of $153,211,486. It is important to note that the final tax roll for Normandy Shores of
$151,190,625 was $2,020,861 (1.3 percent) lower than the July 1, 2015 certified taxable
value, due to appeals, adjustments, etc.
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 proposed FY 2016/17 current
service level budget is $257,000. This budget includes line items which were requested and
approved by the Normandy District Homeowners' Association on June 27, 2016: $171,000
for security services, $3,000 for janitorial services, and $56,000 for other repairs including
gate, gear, motor repairs for the gates and mold remediation of the guardhouse. The budget
is $31,000 (13.7 percent) higher than the FY 2015/16 adopted budget.
The proposed ad valorem millage recommended by the Administration is 1.0093 mills. This
millage rate will fund the current service level budget for the District as well as some
remediation work to be performed on the guardhouse, as requested by the homeowners'
association. This millage rate is equivalent to the FY 2015/16 adopted millage of 1.0093.
This tax levy would generate proceeds of $177,697, which will be budgeted at 95%
($168,000).
FY 2016/17 Normandy Shores Proposed Millage Rate
July 13, 2016
Page 3 of 4
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, 2016), 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 2016/17.
The rolled-back rate is the millage rate required to produce the same level of property tax
revenue on FY 2016/17 as collected in FY 2015/16. The rate is calculated as 0.8821, or
0.1272 mills less than the millage rate adopted for FY 2015/16. The rolled-back millage rate
tax levy would generate proceeds of $147,537. The difference between the current service
level and rolled-back rate levy is $21,275. The adoption of the current service level millage
of 1.0093 would require a majority vote of the Commission.
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 1.0093, 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
rolled-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 0.9567 (equivalent to a 3.75% increase in Property Tax revenues). The
1.0375 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 1.0524 (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 1.0524 mills.
First Public Hearing
The first public hearing on the proposed operating millage rate and tentative budget for FY
2016/17 must be held no later than 80 days or earlier than 65 days from the start of the
TRIM calendar (July 1st). 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 2016/17 Normandy Shores Proposed Millage Rate
July 13, 2016
Page 4 of 4
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 4, 11, and 18 Sundays
September 5 Labor Day
September 7 Miami-Dade County School Board Public Hearing
September 8 Proposed dates for Miami-Dade County Public Hearing
Of the remaining days, it is recommended that the first public hearing be set for
Wednesday, September 14, 2016 at 5:01 P.M., in the City Commission Chambers, City Hall,
1700 Convention Center Drive, immediately following the City of Miami Beach's public
hearing.
JLM/CGR
N/r-