2017-29945 ResolutionRESOLUTION NO. 2017-29945
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) 2017/18; 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 July 1, 2017 Certification of Taxable Value from the Miami-Dade
County Property Appraiser reflects a 12.55 percent increase in property tax values from the July
1, 2016 tax roll certification; 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
0.9564 mills and that the Rolled-Back Rate be set at 0.8993 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 2017/18:
General Operating 0.9564 mills
2) "Rolled-Back Rate" 0.8993 mills
3) The first public hearing on the proposed Normandy Shores Local Government
Neighborhood Improvement District operating millage rate and tentative budget for FY
2017/18 shall be held on Wednesday, September 13, 2017 at 5:01 p.m., in the City
Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
PASSED and ADOPTED this 261h
day of July, 2017.
ATTEST:
Resolutions -R7 K
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 26, 2017
SUBJECT: 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) 2017/18; 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.
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
2017/18:
General Operating 0.9564 mills (0.0529 less than last year)
2) "Rolled-Back" Rate (Truth in Millage) 0.8993 mills
3) The first public hearing to consider the proposed Normandy Shores Neighborhood Improvement
District operating millage rate and tentative budget for FY 2017/18 shall be Wednesday, September
13, 2017 at 5:01 p.m., in the City Commission Chambers, City Hall, 1700 Convention Center Drive,
Miami Beach, Florida.
ANALYSIS
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 2017/18 represents its twenty-fourth year of operation.
The District was established by Ordinance 93-2881, and has the authority '1o 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
Page 1808 of 2495
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 for the District.
-
On July 1, 2017, the City received the 2017 Certification of Taxable Value from the Property
Appraiser's Office stating that the taxable value for Normandy Shores is $198,161,758, which
includes an increase of $1,719,766 in new construction, improvements, etc. This represents an
increase of $22,101,947 (12.55 percent) from the July 1, 2016 certified taxable value of
$176,059,811. It is important to note that the final tax roll for Normandy Shores of $175,042,260 was
$1,017,551 (0.58 percent) lower than the July 1, 2016 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 2017/18 current service level budget is
$277,000. This budget includes line items which were requested and approved by the Normandy
District Homeowners' Association on July 6, 2017: $198,000 for security services, $32,000 for
vehicular bollards, signs and lighting, $32,000 for other repairs and utility costs, $10,000 for video
equipment, $3,000 for janitorial services and $2,000 for an AED Defibrillator. The budget is $20,000
(7.8 percent) higher than the FY 2016/17 adopted budget.
The proposed ad valorem millage recommended by the Administration is 0.9564 mills. This millage
rate will fund the current service level budget for the District, as well as some capital improvements
requested by the homeowners' association. The Normandy Shores Homeowners' Association has
approved the proposed budget and millage rate. This millage rate is 0.0529 mills (5.2 percent) lower
than the adopted FY 2016/17 millage of 1.0093 mills. This tax levy would generate proceeds of
$189,522, which will be budgeted at 95% ($181,000).
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, 2017), 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 2017/18.
The rolled-back rate is the millage rate required to produce the same level of property tax revenue in
FY 2017/18 as collected in FY 2016/17. The rate is calculated as 0.8993, or 0.1100 mills less than
the millage rate adopted for FY 2016/17. The rolled-back millage rate tax levy would generate
proceeds of $169,297. The difference between the current service level proposed millage rate and
the rolled-back rate levy is $11,703. The adoption of the current service level proposed millage rate
of 0.9564 would require a two-thirds vote of the Commission.
Page 1809 of 2495
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 0.9564, if adopted, would require an expensive mailing and advertising
process to each property owner in the Normandy Shores District. 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 approval of the Commission is required to approve a millage up to 0.9273
mills (equivalent to a 3.11% increase in Property Tax revenues). The 1.0311 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 1.0200 mills (equivalent to a 10% increase in Property Tax revenues above
Option I).
• Option Ill: A unanimous approval of the Commission or referendum is required to approve a
millage above 1.0200 mills.
First Public Hearing
The first public hearing on the proposed operating millage rate and tentative budget for FY 2017/18
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, ft 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).
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 3, 10, and 17
September4
September 5
September 6
Sundays
Labor Day
Proposed dates for Miami-Dade County Public Hearing
Miami-Dade County School Board Public Hearing
Of the remaining days available, it is recommended that the first public hearing be set for
Wednesday, September 13, 2017 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.
Legislative Tracking
Budget and Performance Improvement
Page 1810 of 2495
ATTACHMENTS:
Description
i::i Budget Exhibit
i::i Resolution
Page 1811 of 2495
Proposed FY 2017/18 Normandy Shores District Budget
FY 14/15 FY 15/16 FY 16/17 FY 17/1S FY18 Proposed FY18 % Variance
Actuals Actuals Adopted Budget
Pro~osed vs FYl 7 Adopted vs FYl 7 Adopted
REVENUES
Residents 65% 144,300 146,900 169,000 181,000 12,000 7.1%
City 35% 77,700 79,100 88,000
. ~6,0QO 8,000 9.1%
Restitutions 5,882 8,669
-
---
Fund Balance/Retained Earnings -
--.. ---
Total 227,882 234,669 257,000 .. 277,006 20,000 7.8%
EXPENDITURES ....
Security Services 171,555 172,481 171,000 .· 1~l!,000 27,000 15.8%
Janitorial Services 2,293 3,643 3,000 s;obo -0.0%
Internal Service -AAA Repairs 30,111 28,521 25,000 25,000 -0.0%
Internal Service -Other Repairs 2,850 2,699 5,000 s;oob -0.0%
Utilities-Elec etc. 1,452 1,359 2,000 2;000 -0.0%
New Gate Construction 40,196
----
Video System
--21,000 16,000 (11,000) -52.4%
Canopy for Guardhouse
--2,000
-(2,000) -100.0%
AED Defibrillator for Guardhouse
---2,000 2,000
-
Other operating expenditures
20,594 29,974 28,000
~2,000 4,000 14.3%
(Vehicular ballards, Lighting, etc.)
·. ·• .
Total 269,051 238,678 257,000
.
277,000 20,000 7.8%
Surplus/ (Deficit) (41,169) (4,009) -
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Page 1812 of2495