Resolution 2019-31005 RESOLUTION NO. 2019-31005
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE
FINAL AD VALOREM MILLAGE RATE OF 0.8161 MILLS FOR
FISCAL YEAR 2020 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,
WHICH IS FOUR AND FIVE TENTHS PERCENT (4.5%) MORE
THAN THE "ROLLED-BACK" RATE OF 0.7810 MILLS.
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 (4/7th) vote is
0.8931 mills, and anything beyond this rate, up to 0.9824 mills, requires a two-thirds (5/7th) vote
for Fiscal Year 2020; and
WHEREAS, on July 31, 2019, the City Commission, acting as the Board of Directors of
the District, adopted Resolution 2019-30931 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 2020; and
WHEREAS, at the first public hearing on September 11, 2019, in accordance with
Section 200.065, Florida Statutes, the Mayor and City Commission, acting as the Board of
Directors of the District, tentatively adopted the operating millage for the District of 0.8161 mills
for Fiscal Year 2020; and
WHEREAS, Section 200.065, Florida Statutes, requires that at the conclusion of the
second public hearing on the District's proposed tax rate and budget, the City Commission
adopt a final ad valorem millage rate for Fiscal Year 2020; this is accomplished by adopting a
Resolution which includes the percentage increase or decrease over the "rolled-back" rate.
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 25, 2019, the Board
hereby adopts the Final Operating Millage rate of 0.8161 mills for the District for Fiscal Year
2020, which is four and five tenths percent (4.5%) more than the "Rolled-back" rate of 0.7810
mills.
PASSED AND ADOPTED this 25th day of September, 2019.
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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(AAA 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 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%
Resolutions - R7 C
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 25, 2019
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT ADOPTING THE FINAL AD VALOREM MILLAGE RATE OF
0.8161 MILLS FOR FISCAL YEAR 2020 FOR THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,
WHICH IS FOUR AND FIVE TENTHS PERCENT (4.5%) MORE THAN THE
"ROLLED-BACK" RATE OF 0.7810 MILLS.
RECOMMENDATION
See attached Memorandum.
Applicable Area
Citywide
Is this a Resident Right to Does this item utilize G.O.
Know item? Bond Funds?
Yes No
READING
5:02 p.m. Second Reading Public Hearing
Legislative Tracking
Office of Management and Budget
ATTACHMENTS:
Description
❑ 20-MEMO-2nd PH-NS Millage
o Resolution
Page 410 of 540
MIAMI BEACH
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 L. Morales, City Manager
DATE: September 25, 2019
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING
THE FINAL AD VALOREM MILLAGE RATE OF 0.8161 MILLS FOR FISCAL YEAR
2020 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT, WHICH IS FOUR AND FIVE TENTHS PERCENT (4.5%)
MORE THAN THE "ROLLED-BACK" RATE OF 0.7810 MILLS.
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 Final Adopted Millage Rate for the Normandy Shores Neighborhood
Improvement District for Fiscal Year 2020:
General Operating 0.8161 mills (same as last year)
2) The Final Adopted Millage Rate of 0.8161 is 4.5% more than the "Rolled-Back" Rate
of 0.7810 mills.
The first public hearing on the tentative District millage rate and buaget for Fiscal Year 2020
was held on September 11, 2019. The millage rate herein is that which was tentatively adopted
at the first public hearing on that day.
On July 1, 2019, the City received the 2019 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 $223.7 million, which includes $3.9
million in new construction. This represents an overall increase of $11.6 million, or 5.5%, over
the certified July 1, 2018 taxable value of $212.1 million. 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%, lower than the certified July 1, 2018
taxable value due to appeals, adjustments, etc.
Page 411 of 540
Fiscal Year 2020 Normandy Shores Final Millage Rate
September 25, 2019
Page 2 of 4
July 2018 July 2019 $
Certified Certified Change 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%
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 2020 represents its twenty-sixth
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 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% 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 final millage be adopted first. This is accomplished by adopting a
Resolution which states the percent increase or decrease over the "Rolled-back" rate.
Following this, another Resolution which 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.
Page 412 of 540
Fiscal Year 2020 Normandy Shores Final Millage Rate
September 25, 2019
Page 3 of 4
Final Budget & Millage
The proposed Fiscal Year 2020 Normandy Shores Local Government Neighborhood
Improvement District, as reflected in Attachment A, is $297,000, which reflects an increase of
$44,000, or 17.4 %, over the adopted Fiscal Year 2019 budget and is comprised of the following
line-items:
Items Included in Proposed 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
The proposed ad valorem millage, approved by the Normandy Shores Homeowners'
Association on July 10, 2019 and recommended by the Administration for Fiscal Year 2020, is
0.8161 mills and reflects no change from the millage rate adopted for Fiscal Year 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%, or $174,000, to account for early payment discounts,
delinquencies, etc.
This millage rate will fund the Fiscal Year 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 Fiscal Year 2020 are
not recommended to be funded by the proposed Fiscal Year 2020 ad valorem millage of 0.8161
mills. 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 Fiscal Year 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, 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, 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 Fiscal Year 2020.
The "rolled-back" rate is the millage rate required to produce the same level of property tax
revenue in Fiscal Year 2020 as collected in Fiscal Year 2019. The rate is calculated at 0.7810
Page 413 of 540
Fiscal Year 2020 Normandy Shores Final Millage Rate
September 25, 2019
Page 4 of 4
mills, which is 0.0351 mills less than the millage rate of 0.8161 adopted for Fiscal Year 2019.
The "rolled-back" millage rate tax levy would generate proceeds of $174,713. The difference
between the proposed millage rate for Fiscal Year 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, 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% increase in Property Tax revenues). The 1.0339
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 0.9824 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 0.9824 mills.
Adoption of the proposed Fiscal Year 2020 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.
On September 11, 2019, the Mayor and City Commission adopted the tentative operating
millage rate for the District of 0.8161 mills and tentative operating budget in the amount of
$297,000 for Fiscal Year 2020.
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 the final millage rate of 0.8161 mills for the District for Fiscal Year 2020.
Attachment A— Fiscal Year 2020 Normandy Shores Budget
JLM/JW/TOS
Page 414 of 540
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(AAA 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 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 415 of 540