Loading...
Resolution 2019-30931 RESOLUTION NO. 2019-30931 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) 2020; AND, 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 set the operating millage rate and adopt an annual budget for dependent taxing districts; and WHEREAS, the July 1, 2019 Certification of Taxable Value from the Miami-Dade County Property Appraiser for the Normandy Shores Neighborhood Improvement District reflects an overall increase of 5.5 percent in property tax values from the July 1, 2018 tax roll certification from the Miami-Dade County Property Appraiser; and WHEREAS, the Mayor and City Commission of the City of Miami Beach, acting in its capacity 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 0.8161 mills for FY 2020 and that the "Rolled-Back" rate be set at 0.7810 mills; and WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County Property Appraiser of the Proposed Normandy Shores Local Government 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 MAYOR AND CITY COMMISSION, ACTING IN ITS CAPACITY AS 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 2020: General Operating 0.8161 mills(same as last year) 2) "Rolled-Back" Rate 0.7810 mills 3) The first public hearing on the Proposed Normandy Shores Local Government Neighborhood Improvement District operating millage rate and budget for FY 2020 shall be held on Wednesday, September 11, 2019, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139. PASSED and ADOPTED this 31St day of July, 2019. ATTEST: ‘---- 511 Dan Gel er, Mayor p5,s6 12, Z.d11 / Rafael E. Granado, City Clerk APPROVED AS TO FORM= LANGUAGE R EXECUTION Imgq,111 01 114 do. ..-- 2/.20 9 t /� r1�--+moi .• City Attorney Data `� INCORP' # ORATED -r7i- � . ` . � ° 1CH 26° \ Resolutions R7 E MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: July 31, 2019 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) 2019/20; AND, FURTHER, AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTYPROPERTYAPPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES. Legislative Tracking Budget and Performance Improvement ATTACHMENTS: Description o FY 2020 Proposed Millage Memo- Normandy Shores Page 1065 of 1288 MIAM1EACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Dan Gelber and Members of the City Commission FROM: Jimmy Morales, City Manager DATE: July 31, 2019 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) 2020; AND, 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 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 authorizing the City Manager to transmit the following information to the Miami-Dade County Property Appraiser: 1) Proposed Normandy Shores Local Government Neighborhood Improvement District Operating Millage Rate for FY 2020: General Operating 0.8161 mills (same as last year) 2) "Rolled-Back" Rate (Truth-in-Millage) 0.7810 mills 3) The first public hearing on the Proposed Normandy Shores Local Government Neighborhood Improvement District operating millage rate and budget for FY 2020 shall be held on Wednesday, September 11, 2019, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139. BACKGROUND The Normandy Shores Local Government Neighborhood Improvement District, which is 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 2020 represents its twenty-sixth year of operation. Page 1066 of 1288 FY 2020 Normandy Shores Proposed Millage Rate July 31, 2019 Page 2 of 4 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 1999, 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% percent 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 percent of the operating budget for the District. ANALYSIS On July 1, 2019, the City received the 2019 Certification of Taxable Value from the Miami-Dade County Property Appraiser indicating that the taxable value for the Normandy Shores Local Government Neighborhood Improvement District was$223.7 million, including$3.9 million of new construction. Overall, this represents an increase of approximately $11.6 million, or 5.5 percent, over the 2018 Certification of Taxable Value of$212.1 million provided by the Miami-Dade County Property Appraiser as of July 1, 2018. It is important to note that the final 2018 tax roll for the Normandy Shores Local Government Neighborhood Improvement District of $210.3 million is approximately$1.8 million, or 0.8 percent, lower than the 2018 Certification of Taxable Value due to appeals, adjustments, etc. July 2018 I July 2-019 Certified Certified I Change !1 Change Property Assessment Existing Values 209,647,105 219,807,591 10,160,486 4.8% New Construction 2,458,268 3,896,854 1,438,586 58.5% Total Normandy Shores 212,105,373 223,704,445 11,599,072 5.5% Proposed Budget & Millage The Normandy Shores Local Government Neighborhood Improvement District budget proposed for FY 2020, as reflected in Attachment A, is $297,000, which reflects an increase of$44,000, or 17.4 percent, over the FY 2019 budget adopted and is comprised of the following line-items: Items Included in Preliminary FY 2020 Expenditures $ Contracted Security Guard Services for Guardhouse and Rover 204,000 Gate Maintenance and Repairs 30,000 "One-Time"Security Camera System Upgrades 30,000 Other Guardhouse and Gate Improvements 27,000 Janitorial Services 4,000 Utilities 2,000 Total $297,000 Page 1067 of 1288 FY 2020 Normandy Shores Proposed Millage Rate July 31, 2019 Page 3 of 4 The proposed ad valorem millage, approved by the Normandy Shores Homeowners'Association on July 10,2019 and recommended by the Administration for FY 2020, is 0.8161 mills and reflects no change from the millage rate adopted for FY 2019. Based on the 2019 Certification of Taxable Value provided by the Miami-Dade Property Appraiser as of July 1, 2019, this proposed tax levy would generate proceeds of$182,565, which will be budgeted at approximately 95.3 percent, or $174,000, to account for early payment discounts, delinquencies, etc. This millage rate will fund the FY 2020 budget proposed for the District, including other guardhouse and gate improvements requested by the Homeowners' Association. It is important to note that the "one-time" security camera system upgrades requested for FY 2020 are not recommended to be funded by the ad valorem millage of 0.8161 proposed for FY 2020. Instead, it is proposed and recommended that this "one-time" expenditure of$30,000 be funded through the use of prior year fund balance. As set forth by Resolution No. 2006-26341, the City can use one-time non-recurring revenue for capital expenditures or one-time expenditures and not to subsidize recurring personnel, operational and maintenance costs. This request for FY 2020 is considered one-time in nature, and as such, can be funded utilizing fund balance. 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 (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, 2019), 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 FY 2020. The "rolled-back" rate is the millage rate required to produce the same level of property tax revenue in FY 2020 as collected in FY 2019.The rate is calculated at 0.7810 mills,which is 0.0351 mills less than the millage rate of 0.8161 adopted for FY 2019. The "rolled-back" millage rate tax levy would generate proceeds of$174,713. The difference between the proposed millage rate for FY 2020 and the "rolled-back" rate levy is $7,852. 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 for FY 2020, 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 0.8931 mills (equivalent to a 3.39 percent increase in Property Tax revenues). The 1.0339 increase is the State per capita personal income gain for the prior calendar year. Page 1068 of 1288 FY 2020 Normandy Shores Proposed Millage Rate July 31, 2019 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 0.9824 mills (equivalent to a 10 percent 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 0.9824 mills. Adoption of the proposed FY 2020 millage rate of 0.8161 mills for the Normandy Shores Local Government Neighborhood Improvement District would, therefore, require majority approval (4 of 7 votes) by the City Commission per the State of Florida's Truth-in-Millage (TRIM) requirements. First Public Hearing The first public hearing on the proposed operating millage rate and budget for FY 2020 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, it 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 3, 2019 and September 18, 2019. These dates are unavailable for the following reasons: September 8 and 15 Sundays September 4 Miami-Dade County School Board Public Hearing September 5 Miami-Dade County Public Hearing Of the remaining days available, it is recommended that the first public hearing be held on Wednesday, September 11, 2019, at 5:02 P.M., in the City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139, immediately following the City of Miami Beach's public hearing. Attachment A— FY 2020 Proposed Normandy Shores Budget JLM/JW/TOS Page 1069 of 1288 Attachment A FY 2020 Normandy Shores District Budget $Variance %Variance FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 Proposed FY 2020 Proposed Actuals Actuals Adopted Proposed vs vs FY 2019 Adopted FY 2019 Adopted REVENUES Residents 65% 167,050 180,050 165,000 174,000 9,000 5.5% City 35% • 89,950 96,950 88,000 93,000 5,000 5.7% Restitutions 1,876 6,207 0 0 0 - Miscellaneous 0 176 0 0 0 - Fund Balance/Retained Earnings 0 0 0 30,000 30,000 100.0% Total 258,876 283,383 253,000 297,000 44,000 17.4% EXPENDITURES Security Guard Services 176,000 210,000 198,000 204,000 6,000 3.0% Janitorial Services 0 0 3,000 4,000 1,000 33.3% Gate Repairs(AM Repairs) 20,878 22,428 25,000 25,000 0 0.0% Internal Service-Other Repairs 2,663 0 - 5,000 5,000 0 0.0% Utilities-Electricity,etc. 1,386 1,260 2,000 2,000 0 0.0% AED Guardhouse Defibrillator 0 1,404_ 0 0 0 - Video Camera System Upgrade 0 0 0 30,000 30,000 100.0% Other Expenditures(Concrete curb 225 16,400 20,000 27,000 7,000 35.0% relocation and gate replacement,etc.) Total 201,152 251,493 253,000 297,000 44,000 17.4% Surplus/(Shortfall) 57,724 31,890 0 I 0 REQUIRED MILLAGE 1.0093 0.9564 0.8161 0.8161 0.0000 0.0% Existing Values 173,001,492 196,441,992 209,647,105 219,807,591 10,160,486 4.8% New Construction 3,058,319 1,719,766 2,458,268 3,896,854 1,438,586 58.5% Total 176,059,811 198,161,758 212,105,373 223,704,445 11,599,072 5.5% Value of 1 Mill 176,060 198,162 212,105 223,704 11,599 5.5% 95%of 1 Mill 167,257 188,254 201,500 212,519 11,019 5.5% Page 1070 of 1288