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2017-29968 ResolutionRESOLUTION NO. 2017 -29968 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR 2017/18, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON MONDAY, SEPTEMBER 25, 2017 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, for the purpose of providing security services within the District, a tentative budget has been developed to fund projected FY 2017/18 operating expenditures; and WHEREAS, on September 13, 2017, pursuant to Section 200.065 of the Florida Statutes, the City Commission, acting as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District, held its first duly noticed public hearing to consider the Tentative Ad Valorem Millage and Tentative Operating Budget for FY 2017/18. 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 13, 2017, the Board hereby adopts the tentative operating budget for the District for FY 2017/18, as summarized and listed below, subject to a second public hearing scheduled on Monday, September 25, 2017 at 5:02 P.M.: Revenues Ad Valorem Tax $ 181,000 City's General Fund 96,000 Total $ 277,000 Expenditures Security Services $ 198,000 Maintenance 35,000 Video System 10,000 Defibrillator 2,000 Signs, bollards, lighting 32,000 Total $ 277,000 `�° "' ' P'� SED and ADOPTED this 13th day of September, 2017. ��� .. ti's Y p ,���Gv�" .n 1 Chairp A( secretary tot a Dis ict J/ e District APPROVED AS TO FORM & LANGUAGE & FOR EXE UTION City Attorney Date M AMI BEACH Resolutions - R7 K COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 13, 2017 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 OPERATING BUDGET FOR FISCAL YEAR 2017/18, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON MONDAY, SEPTEMBER 25, 2017 AT 5:02 P.M. Legislative Tracking Budget and Performance Improvement ATTACHMENTS: Description a Normandy Shores' Budget Merno a Resolution Page 1902 of 2353 City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM. TO: Mayor Philip Levine and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 13, 2017 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR 2017/18, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON MONDAY, SEPTEMBER 25, 2017 AT 5:02 P.M. ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the tentative operating budget for the Normandy Shores Local Government Neighborhood Improvement District for FY 2017/18 in the amount of $277,000, subject to a second public hearing to be held on Monday, September 25 2017. 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 continuous 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 "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 guardhouse. The cost would eventually be funded from the operations 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. 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 tentative millage for the Normandy Shores District has been adopted (See accompanying District Millage Agenda Item for details). Page 1903 of 2353 FY 2017/18 Normandy Shores Proposed Budget September 13, 2017 Page 2 of 2 ANALYSIS The proposed FY 2017/18 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 City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($96,000), and the City has funded the 35% for each of the twenty -three years since the District was established. The amount provided by the General Fund for this purpose in FY 2016/17 was $88,000. The $96,000 impact to the General Fund from the FY 2017/18 proposed budget is $8,000 (9.1%) more than the FY 2016/17 adopted budget impact of $88,000. To provide the current level of security required by this District, the Administration recommends the proposed ad valorem millage of 0.9564 mills. This tax levy will generate proceeds of $181,000. The proposed millage rate is 0.0529 mills lower than the prior year adopted millage rate of 1.0093. This represents an annual decrease in tax of approximately $14.00 to the average homesteaded property owner (2017's average value being $436,830). The tentative operating budget for the District is as follows: Revenues Ad Valorem Tax $ 181,000 City's General Fund 96,000 Total $ 277,000 Expenditures Security Service $ 198,000 Maintenance 35,000 Video System 10,000 Defibrillator 2,000 Signs, bollards, lighting 32,000 Total $ 277,000 CONCLUSION The City Commission, acting in its capacity as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District, should adopt the attached Resolution which establishes a tentative operating budget and schedules the second and final public hearing. JLM /JW Page 1904 of 2353