Resolution 2018-30500 RESOLUTION NO. 2018-30500
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE
TENTATIVE AD VALOREM MILLAGE RATE OF 0.8161 MILLS
FOR FISCAL YEAR 2018/19 FOR THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT, WHICH IS EIGHT AND THREE TENTHS PERCENT
(8.3%) LESS THAN THE "ROLLED-BACK" RATE OF 0.8895
MILLS, SUBJECT TO A SECOND PUBLIC HEARING
SCHEDULED ON WEDNESDAY, SEPTEMBER 26, 2018, 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 majority(4/79')vote is 0.9026
mills, and anything beyond this rate, up to 0.9929 mills, requires a two-thirds (5/79')vote for Fiscal
Year 2018/19; and
WHEREAS, on July 25, 2018, the City Commission, acting as the Board of Directors of
the District, adopted Resolution 2018-30430 which set the proposed operating millage rate of the
District at 0.8161 mills for the purpose of providing security services within the District for Fiscal
Year 2018/19; and
WHEREAS, on September 12, 2018, pursuant to Section 200.065, 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 for the
District for Fiscal Year 2018/19.
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 12, 2018, the Board hereby
adopts the Tentative Operating Millage rate of 0.8161 mills for the District for Fiscal Year 2018/19,
which is eight and three tenths percent (8.3%) less than the "Rolled-back" rate of 0.8895 mills,
subject to a second public hearing scheduled on Wednesday, September 26, 2018, at 5:02 P.M.
PASSED AND ADOPTED this 1_.1.01% x.,a• l•tem ber, 2018.
ATTEST: ...... . ..:F� '�
' hap son o the District
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Secretary to the District `_ CORP/ ORATED; * APPROVED AS TO
NS ., FORM & LANGUAGE
& F RXECUTION
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CIN Attorney Dote
Resolutions - R7 J
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 12, 2018
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 0.8161 MILLS
FOR FISCAL YEAR 2018/19 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS EIGHT
AND THREE TENTHS PERCENT (8.3%) LESS THAN THE "ROLLED-BACK" RATE
OF 0.8895 MILLS, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON
WEDNESDAY, SEPTEMBER 26, 2018,AT 5:02 P.M.
Lie islative Tracking
Budget and Performance Improvement
ATTACHMENTS:
Description
❑ Normandy Shores Millage Memo
❑ Resolution
Page 1190 of 1802
MIAMI BEACH
City of Miami Beach, 1700 Convention Censer Drive,Miami Beach, Florida 33139,vn w.miamibeachfl gav
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 12, 2018
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 0.8161 MILLS FOR FISCAL
YEAR 2018(19 FOR THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS EIGHT AND THREE
TENTHS PERCENT (8.3%) LESS THAN THE "ROLLED-BACK" RATE OF 0.8895
MILLS, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON
WEDNESDAY, SEPTEMBER 26, 2018, AT 5:02 P.M.
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) The Tentatively Adopted Millage Rate for the Normandy Shores
Neighborhood Improvement District for FY 2018/19:
General Operating 0.8161 mills (0.1403 less than last year)
2) The second public hearing to consider the proposed Normandy Shores
Neighborhood Improvement District operating millage rate and final budget for Fiscal
Year 2018/19 shall be Wednesday, September 26, 2018, at 5:02 p.m., in the City
Commission Chambers, City Hall, 1700 Convention Center Drive, 3'd Floor, Miami
Beach, Florida 33139.
On July 1, 2018, the City received the 2018 Certification of Taxable Value from the Miami-Dade
County Property Appraiser's Office indicating that the taxable value for the Normandy Shores
Local Government Neighborhood Improvement District was $212.1 million, which includes $2.5
million in new construction. This represents an overall increase of $13.9 million, or 7.0%, over
the certified July 1, 2017 taxable value of $198.2 million. It is important to note that the final
2017 tax roll for the Normandy Shores Local Government Neighborhood Improvement District of
$195.0 million is approximately $3.2 million, or 1.6%, lower than the certified July 1, 2017
taxable value due to appeals, adjustments, etc.
Page 1191 of 1802
FY 2018/19 Normandy Shores Tentative Millage Rate
September 12, 2018
Page 2 of 4
July2017 July2018 S
Certified Certified Variance Variance
Property Assessment
Existing Values 196,441,992 209,647,105 13,205,113 6.7%
New Construction 1,719.765 2,458,268 738,502 42.9%
Total 198,161,758 212,105,373 13,943,615 7.0%
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; Fiscal Year 2018/19 represents its twenty-
fifth 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 Fiscal Year 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 (FCWPC). 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 Normandy Shores Local Government Neighborhood Improvement
District representatives and agreed to eliminate the $500 cap on the highest valued home in the
District. This enabling legislation was adopted by the City Commission on September 25, 2002
and 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 millage and budget of the principal taxing authority, i.e., the 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 rate.
Following this, another Resolution which tentatively adopts the Normandy Shores District
operating budget must be approved (see accompanying District Budget agenda item for details).
Florida Statute requires that 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.
Proposed Budget& Millage
The proposed Fiscal Year 2018/19 Normandy Shores Local Government Neighborhood
Improvement District budget, as reflected in Attachment A, is $253,000. The budget reflects the
Page 1192 of 1802
FY 2018/19 Normandy Shores Tentative Millage Rate
September 12, 2018
Page 3 of 4
following line-items requested by the representatives of the Normandy Shores Homeowners'
Association on June 19, 2018: $198,000 for security guard services; $30,000 for gate
maintenance and repairs; $3,000 for janitorial services; $2,000 for utilities; and $20,000 for
acquisition and installation of an automated camera system. The proposed budget is $24,000,
or 8.7%, lower than the adopted Fiscal Year 2017/18 operating budget.
The proposed ad valorem millage, recommended by the Administration, is 0.8161 mills. This
millage rate will fund the proposed budget for the District, including the automated camera
system requested by the representatives of the Homeowners' Association. On July 10, 2018,
the Normandy Shores Homeowners' Association approved the proposed millage rate and
budget for Fiscal Year 2018/19. This proposed millage rate is 0.1403 mills, or 14.7%, lower than
the adopted Fiscal Year 2017/18 rate of 0.9564 mills. This proposed tax levy would generate
proceeds of $173,099, which will be budgeted at approximately 95.0%, or $164,444 ($165,000
rounded), to account for early payment discounts, delinquencies, etc.
Statutory Requirement
Florida Statute 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, the 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, 2018), 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 budget for Fiscal Year 2018/19.
The "rolled-back" rate is the millage rate required to produce the same level of property tax
revenue in Fiscal Year 2018/19 as collected in Fiscal Year 2017/18. The rate is calculated at
0.8895 mills, which is 0.0669 mills less than the millage rate of 0.9564 adopted for Fiscal Year
2017/18. The "rolled-back" millage rate tax levy would generate proceeds of $188,668. The
difference between the proposed millage rate for Fiscal Year 2018/19 and the "rolled-back" rate
levy is $15,569.
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 rate of 0.8161 mills, if adopted, would require an expensive mailing and
advertising process to each property owner in the Normandy Shores Local Government
Neighborhood Improvement District. Therefore, this proposed millage rate is viewed as the
ceiling.
Further, per 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
0.9026 mills (equivalent to a 1.47% increase in Property Tax revenues). The 1.0147
increase is the State per capita personal income gain for the prior calendar year.
Page 1193 of 1802
FY 2018/19 Normandy Shores Tentative Millage Rate
September 12, 2018
Page 4 of 4
• Option II: A two-thirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 0.9929 mills (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 0.9929 mills.
Adoption of the proposed Fiscal Year 2018/19 rate of 0.8161 mills for the Normandy Shores
Local Government Neighborhood Improvement District would require majority approval (4 of 7
votes) by the City Commission per the State of Florida's Truth-in-Millaqe (TRIM) requirements.
It must be noted that, in accordance with Florida Statutes, there is an operating cap of 10 mills
which cannot be exceeded without voter approval. Combining both millage rates from the
dependent district (0.8161) and its principal taxing authority (5.7288) totals 6.5449 mills, which
is 3.4551 mills less than the statutory cap of 10 mills.
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 rate of 0.8161 mills and schedules the second and final
public hearing on Wednesday, September 26, 2018, at 5:02 p.m.
JLM/JW/TOS
Page 1194 of 1802
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