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Resolution 2019-31006 RESOLUTION NO. 2019-31006 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR 2020. 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 final budget has been developed to fund projected Fiscal Year 2020 operating expenditures; and WHEREAS, on September 11, 2019, 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 and adopted the Tentative Ad Valorem Millage and Tentative Operating Budget for Fiscal Year 2020; and WHEREAS, on September 25, 2019, pursuant to Section 200.065, Florida Statutes, the City Commission, acting as the Board of Directors of the District, held its second duly noticed public hearing to consider the Final Ad Valorem Millage and Final Operating Budget for Fiscal Year 2020. 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 City Commission, acting as the Board of Directors of the District, hereby adopts the final operating budget for the District for Fiscal Year 2020, as summarized and listed below: Revenues Ad Valorem Tax $ 174,000 City's General Fund 93,000 Fund Balance/Retained Earnings 30,000 Total $ 297,000 Expenditures Security Services $ 204,000 Utilities and Maintenance 63,000 Security Improvements 30,000 Total $ 297,000 PASSED AND ADOPTED this 25th day of September, 2019. ATTEST: =Os k B1�C°���� 9�•, - I d :u uln Igor * '•- C irperson of the D'. •VED AS TO r fj11,r INC0RPI0RATED? *% FOR _ GUAGE `�_ �._ .�'�..:i :`�� •f UTION ecretary to the Dist ' t ,9 = "14a e. City Attorney Resolutions - R7 D 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 OPERATING BUDGET FOR FISCAL YEAR 2020. 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 o 20-MEMO-2nd PH-NS Budget ❑ Resolution Page 418 of 540 MIAMI BFACH 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 OPERATING BUDGET FOR FISCAL YEAR 2020 ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the final operating budget for the Normandy Shores Local Government Neighborhood Improvement District for Fiscal Year 2020 in the amount of$297,000. 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 (FCW PC). A determination was reached that the City would fund 35% of the ann al cost of the operation of the community 5:..te 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 final millage for the Normandy Shores Local Government Neighborhood Improvement District has been adopted (see accompanying District Millage agenda item for details). Page 419 of 540 Fiscal Year 2020 Final Normandy Shores Budget September 25, 2019 Page 2 of 2 ANALYSIS The proposed Fiscal Year 2020 Normandy Shores Local Government Neighborhood Improvement District budget is$297,000. The budget reflects the following line-items,which were approved by the Normandy Shores Homeowners'Association on July 10, 2019:$204,000 for security guard services; $30,000 for gate maintenance and repairs;$27,000 for guardhouse and gate improvements,$4,000 for janitorial services; $2,000 for utilities; and $30,000 for one-time security camera upgrades. The proposed Fiscal Year 2020 operating budget is $44,000, or 17.4%, higher than the adopted Fiscal Year 2019 operating budget. It should be noted that $30,000 of the increase is due to one-time security camera upgrades paid for from fund balance. Excluding this amount,the budget increased by$14,000, or 5.5%. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures and the City has funded the 35% for each of the twenty-five years since the District was established. For Fiscal Year 2020, the impact to the City of Miami Beach General Fund is $93,000, which is $5,000, or 5.7%, more than the adopted Fiscal Year 2019 budget impact of $88,000. To provide the current level of security required by the Normandy Shores Local Government Neighborhood Improvement District,the Administration recommends a proposed ad valorem millage of 0.8161 mills. This tax levy will generate proceeds of $174,000. The proposed millage rate for Fiscal Year 2020 is the same as the adopted Fiscal Year 2019 rate of 0.8161 mills,which represents an increase in property taxes of approximately$1 to a median homesteaded property owner and$5 to an average homesteaded property owner (2019's median and average homesteaded values being $195,522 and $500,407, respectively). The proposed Fiscal Year 2020 operating budget for the District is as follows: Revenues Ad Valorem Tax $ 174,000 City's General Fund 93,000 Fund Balance/Retained Earnings 30,000 Total $ 297,000 Expenditures Security Services $ 204,000 Utilities and Maintenance 63,000 Security Improvements 30,000 Total $ 297,000 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 the final operating budget for the District of$297,000 for Fiscal Year 2020. JLM/JW/TOS Page 420 of 540