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98-22897 RESO RESOLUTION NO. 98-22897 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING A TENTATIVE AD VALOREM MILLAGE OF 0.965 MILLS FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS THREE AND THREE-TENTHS PERCENT (3.3%) GREATER THAN THE "ROLLED- BACK" RATE OF 0.934 MILLS, FOR FISCAL YEAR 1998/99, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED AT 5:02 P. M., WEDNESDAY, SEPTEMBER 23, 1998 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, the Ad Valorem millage rate assigned amounts to 0.965 mills; and WHEREAS, the millage rate reflected is three and three tenths percent (3.3%) greater than the "rolled-back" rate of 0.934 mills. WHEREAS, on September 10, 1998, a public hearing was held before the Mayor and City Commission, acting as the Board of Directors of the District (Board), on the proposed operating millage rate and tentative operating budget for the District for FY 1998/99. NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, as follows: (1) Pursuant to Section 200.065, Florida Statutes, there is hereby levied a tax of 0.965 mills for Fiscal Year 1998/99 on all taxable and non-exempt real and personal property located within the boundaries of the Normandy Shores Local Government Neighborhood Improvement District for the purpose of providing security services. (2) The tentatively adopted millage rate for the Normandy Shores Local Government Neighborhood Improvement District for Fiscal Year 1998/99 is subject to a second and final public hearing at 5:02 P. M., Wednesday, September 23, 1998, in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. PASSED and ADOPTED this 10th day of September, 1998. ~~ MAYOR ATTEST: ~Et rLU~ APPROVED AS TO FORM & LANGUAGe & FOR EXECUTION 11) f/fJf~ Ob.,IC/P C Attorney ~ ~ITY OF MIAMI BEACH ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 ;tp:\\ci.miami-beach. fl. us COMMISSION MEMORANDUM NO. (;04- -~' TO: Mayor Neisen O. Kasdin and Members of the City Com ission DATE: September 10, 1998 FROM: Sergio Rodriguez City Manager , SUBJECT: A RESOL ON ADOPTING THE TENTATIVE AD VALOREM MILLAGE OF 0.965 MILLS FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS THREE AND THREE-TENTHS PERCENT (3.3%) GREATER THAN THE "ROLLED- BACK" RATE OF 0.934 MILLS, FOR FISCAL YEAR 1998/99, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED AT 5:02 P.M., WEDNESDAY, SEPTEMBER 23, 1998 RECOMMENDATION: The Administration recommends that the 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 following: 1) Tentatively adopted millage rate for FY 1998/99 Normandy Shores 0.965 mills (0.966 last year) 2) The tentatively adopted millage rate of 0.965 mills is 3.3% greater than the "rolled-back" rate of 0.934 mills. 3) The second public hearing to consider the final Normandy Shores millage rate and budget for FY 1998/99 shall be at 5:02 P. M., Wednesday, September 23, 1998 in the City Commission Chambers, City Hall, 1700 Convention Center Drive. 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 operating budget must be approved. (See accompanying Agenda Item R7 B2 for details). AGENDA ITEM K I_B t ~-t~~ DATE Normandy Shores FY 1998/99 Tentative Millage Page Two September 10, 1998 Due to a recent Florida state statute amendment, it is no longer required that the resolution be read aloud in its entirety; however, the statute does require the name of the taxing authority, the rolled back rate, the percentage increase, and the millage rate be publicly announced before the adoption of the millage levy resolution. Therefore, the resolution title only should be announced before the adoption of the millage resolution. BACKGROUND The Normandy Shores Local Government 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 1998/99 represents its fifth year of operation. The district is 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". Based on the January 1, 1998, "Certification of Taxable Values" for this district, the highest assessed property within the district is valued at $518,108, which requires a millage rate of 0.965. This millage yields an assessment of $499.97 which is less than $500. ANALYSIS The tentative ad valorem millage recommended by the Administration is 0.965 mills to provide the level of security services required by this district. At this millage, no property owner's levy will exceed $500. This tax levy will generate proceeds of$50,850, which is solely due to the manner in which the millage must be calculated, given the $500 limitation The total operating budget to provide security services to this district for FY 1998/99 is $91,250. This is comparable to the current year-end projections. The gap between the revenues which will be generated from ad-valorem tax proceeds and the total budgetary requirement of the District must be supplemented in the amount of $40,400 or 44% of the total operating budget. The General Fund has funded this gap for each of the four years since the District was established. The amount provided by the General Fund for this purpose in FY1997/98 was $41,915. During the ye~ 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. The City Attorney's Office is reviewing the issue regarding the dependent status of the District. It was further agreed that the City would continue to supplement the District at current levels until both issues were resolved. On July 15, 1998, the City Commission adopted Resolution 98-22856, setting the proposed operating millage rate for the District. 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 tentative millages from the dependent district (0.965) and the principal taxing authority (7.999) totals 8.964 mills, which is 1.036 mills less than the 10 mill cap. Normandy Shores FY 1998/99 Tentative Millage Page Three September 10, 1998 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 millage and schedules the second and final public hearing. S~:JC