2016-29566 Reso RESOLUTION NO. 2016-29566
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE AD VALOREM
MILLAGE RATE OF 1.0093 MILLS FOR FISCAL YEAR (FY) 2016/17
FOR THE NORMANDY SHORES LOCAL GOVERNMENT DISTRICT,
WHICH IS FOURTEEN AND FOUR TENTHS PERCENT(14.4%)MORE
THAN THE"ROLLED-BACK" RATE OF 0.8821 MILLS,SUBJECT TO A
SECOND PUBLIC HEARING SCHEDULED ON TUESDAY,
SEPTEMBER 27, 2016 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
0.9567; anything beyond that requires a 5/7ths vote; and
WHEREAS, on July 13, 2016, the City Commission, acting as the Board of Directors of the
District, adopted Resolution 2016-29485 which set the proposed operating millage rate for the
District at 1.0093 mills for the purpose of providing security services within the District; and
WHEREAS, accordingly, on September 14, 2016, pursuant to Section 200.065 of the
Florida Statutes, 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 2016/17) 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, 2016, the Board hereby adopts the
Tentative Operating Millage rate of 1.0093 mills for the District for FY 2016/17, which is fourteen
and four tenths percent (14.4%) more than the "Rolled-back" rate of 0.8821 mills, subject to a
second public hearing scheduled on Tuesday, September 27, 2016, at 5:02 P.M.
PASSED and ADOPTED this 14th day of September, 2016.
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 14, 2016
5:02 p.m. First Reading Public Hearing
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
ADOPTING THE TENTATIVE AD VALOREM MILLAGE RATE OF 1.0093 MILLS
FOR FISCAL YEAR (FY) 2016/17 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT DISTRICT, WHICH IS FOURTEEN AND FOUR
TENTHS PERCENT (14.4%) MORE THAN THE "ROLLED-BACK" RATE OF
0.8821 MILLS, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON
TUESDAY, SEPTEMBER 27, 2016 AT 5:02 P.M.
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) The Tentatively Adopted Millage Rate for the Normandy Shores Neighborhood Improvement
District for FY 2016/17:
General Operating 1.0093 mills (equivalent to last year)
2) The second public hearing to consider the proposed Normandy Shores Neighborhood
Improvement District operating millage rate and final budget for FY 2016/17 shall be Tuesday,
September 27, 2016 at 5:02 p.m., in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
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.
BACKGROUND
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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.
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.
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 August 22, 2016: $171,000 for security
services, $35,000 for maintenance services, and $51,000 for other repairs including
replacement of the video system, guardhouse canopy, vehicular bollard installation, and lighting
improvements. The budget is $31,000 (13.7 percent) higher than the FY 2015/16 adopted
budget.
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The proposed ad valorem millage recommended by the Administration is 1.0093 mills. This
millage rate is equivalent to the FY 2015/16 adopted millage of 1.0093. This tax levy would
generate proceeds of $176,000, which will be budgeted at 95% ($167,000).
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 two thirds (5 of 7 votes) 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, Section 200.81 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 l).
• Option III: A unanimous approval of the Commission or referendum is required to
approve a millage above 1.0524 mills.
The proposed rate of 1.0093 requires a two thirds (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 (1.0093) and the principal taxing authority (5.7092) totals 6.7185 mills, which is 3.2815
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.
FINANCIAL INFORMATION
The proposed ad valorem millage rate is 1.0093 mills. This millage rate is equivalent to the FY
2015/16 adopted millage of 1.0093. This tax levy would generate proceeds of $176,000, which
will be budgeted at 95% ($167,000).
Legislative Tracking
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Budget & Performance Improvement
ATTACHMENTS:
Description
❑ Form Approved Resolution
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