Resolution 2021-31873RESOLUTION NO. 2021-31873
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE
FINAL AD VALOREM MILLAGE RATE OF 1.0659 MILLS FOR
FISCAL YEAR 2022 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,
WHICH IS ONE THOUSAND THREE HUNDRED ELEVEN AND
EIGHT TENTHS PERCENT (1311.8%) MORE THAN THE
"ROLLED -BACK" RATE OF 0.0755 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 ion
October 20, 1993, which authorized the creation of the Normandy Shores Local Government
Neighborhood Improvement District ("District"); and
I
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
0.8833 mills, anything beyond this rate, up to 0.9716 mills, requires a two-thirds (5/7th) vote, and
a unanimous approval is required to approve a millage rate above 0.9716 mills for Fiscal Year
2022; and
WHEREAS, on July 28, 2021, the City Commission, acting as the Board of Directors of
the District, adopted Resolution No. 2021-31819 which set the proposed operating millage rate
of the District at 1.0659 mills for the purpose of providing security services within the District' for
FY 2022 with no City subsidy as recommended by the Finance and Economic Resiliency
Committee at its July 23, 2021 meeting; and
WHEREAS, at the first public hearing on September 17, 2021, 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 1.0659 mills
for FY 2022; 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 FY 2022; 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 30, 2021, the Board
hereby adopts the Final Operating Millage rate of 1.0659 mills for the District for FY 2022, which
is one thousand three hundred eleven and eight tenths percent (1,311.8%) more than the
"Rolled -back" rate of 0.0755 mills.
PASSED AND ADOPTED this 301h day of September, 2021.
ATTEST:
Secretary to the District
Chairperson of the District
APPROVED AS TO
OCT 0 .1 2021 FORM & LANGUAGE
& FOR EXECUTION
13F
IN ORP ORATED:
City Attomey pDate
Resolutions - R7 C
MIAMI B
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 30, 2021
5:02 p.m. Second Reading Public Hearing
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
1.0659 MILLS FOR FISCAL YEAR 2022 FOR THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,
WHICH IS ONE THOUSAND THREE HUNDRED ELEVEN AND EIGHT
TENTHS PERCENT (1311.8%) MORE THAN THE "ROLLED -BACK" RATE
OF 0.0755 MILLS.
RECOMMENDATION
See attached Memorandum.
SUPPORTING SURVEY DATA
N/A
Applicable Area
Citywide
Is this a "Residents Right
to Know" item, pursuant to
City Code Section 2-14?
Yes
Does this item utilize G.O.
Bond Funds?
we
Strategic Connection
Organizational Innovation - Ensure strong fiscal stewardship.
Legislative Trackina
Office of Management and Budget
ATTACHMENTS:
Description
❑ Memo -Final Normandy Shores Millage
Page 126 of 397
Resolution
Page 127 of 397
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfi.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 30, 2021
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 1.0659 MILLS FOR FISCAL YEAR
2022 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT, WHICH IS ONE THOUSAND THREE HUNDRED
ELEVEN AND EIGHT TENTHS PERCENT (1311.8%) MORE THAN THE "ROLLED -
BACK" RATE OF 0.0755 MILLS.
STRATEGIC PLAN SUPPORTED
Organizational Innovation — Ensure strong fiscal stewardship
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 (FY) 2022:
General Operating 1.0659 mills (0.9886 increase from last year)
2) The Final Adopted Millage Rate of 1.0659 is 1,311.8% more than the "Rolled -Back"
Rate of 0.0755 mills.
The first public hearing on the tentative District millage rate and budget for FY 2022 was held on
Friday, September 17, 2021. The millage rate herein is that which was tentatively adopted at the
first public hearing on that day.
On July 1, 2021, the City received the 2021 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 $248.9 million, which includes $3.8
million in new construction. This represents an overall increase of $6.1 million, or 2.5%, over the
certified July 1, 2020 taxable value of $242.8 million. It is important to note that the final 2020 tax
roll for the Normandy Shores Local Government Neighborhood Improvement District of $239.4
million is approximately $3.4 million', or 1.4%, lower than the certified July 1, 2020 taxable value
due to appeals, adjustments, etc.
Page 128 of 397
FY 2022 Normandy Shores Final Millage Rate
September 30, 2021
Page 2 of 5
Property Assessment
Existing Values
New Construction
Total Norm
BACKGROUND
242,757,511 245,073,256
0 3,782,998
Shores 242,757,511 248,856,254
2,315,745
3,782,998
1.0%
100.0%
6,098,743
2.5%
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 2022 represents its twenty-eighth
year of operation.
The District was established by Ordinance No. 93-2881 and had 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."
On September 11,1997, Resolution No. 97-22522 adopted the District's Tentative FY 1998
millage rate. The accompanying memorandum noted that the City had been funding the gap
between the revenues generated from the ad valorem taxes and the budget, that the City could
not continue to subsidize this budget and that the District should be self-sustaining. This
memorandum also noted that Resolution No. 97-22487 included the City Commission's direction
to the City Clerk to take such steps as may be necessary to hold a special referendum for the
purpose of authorizing special assessments to raise $41,915 for operating purposes within the
District for FY 1998.
On September 23, 1998, Resolution No. 98-22902 adopted the District's FY 1999 budget. The
accompanying memorandum noted that the City had been funding the gap between the revenues
generated from the ad valorem taxes and the budget and that a determination was reached that
the City would fund 35% of the annual cost of the community guard gate. It also stated that the
cost would eventually be funded by the golf course and that the City Attorney's Office would review
the issue of the dependent status of the District, and the City would continue supplementing the
budget at current levels until both issues are resolved.
On September 25, 2002, Ordinance No. 2002-3380 adopted the removal of the $500 annual cap
per parcel. The accompanying memorandum noted that the City's 35% contribution will, be
maintained.
In 2015, as part of a "clean up" Ordinance to repeal three other safe neighborhood districts that
were no longer active, the Mayor and City Commission enacted Ordinance No. 2015-3928. With
respect to the Normandy Shores District because the prior versions of the ordinance had not been
codified as part of the consolidated legislation of the City, the 2015 Ordinance sought to codify
the legislation, but in so doing, inadvertently re -adopted the original 1993 Ordinance — which
included an ad valorem cap of $500 per property — and not the correct, and most recent, version
of the legislation, the 2002 Ordinance, which deleted the cap of $500 per property.
In order to correct the inadvertent error in the 2015 Ordinance and eliminate the $500 per property
cap, as intended since 2002, the Mayor and City Commission adopted Ordinance No. 2020-4386
on December 9, 2020.
Page 129 of 397
FY 2022 Normandy Shores Final Millage Rate
September 30, 2021
Page 3 of 5
At the July 23, 2021 Finance and Economic Resiliency Committee meeting, the Committee
recommended the elimination of the 35% City subsidy totaling $91,700 in the FY 2022 preliminary
budget, while maintaining the City's 50% contribution, or $30,000, toward the total cost of $60,000
for the security rover.
On July 28, 2021, the City Commission, through Resolution No. 2021-31819, approved the
recommendation of the Finance and Economic Resiliency Committee (FERC) eliminating the
City's 35% subsidy, while maintaining the City's 50% contribution, or $30,000, toward the total
cost of $60,000 for the security rover.
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.
Final Budget & Millage
The FY 2022 Normandy Shores Local Government Neighborhood Improvement District budget,
as reflected in Attachment A, is $252,000, which reflects an increase of $3,000, or 1.2%, over the
FY 2021 adopted budget and is comprised of the following line -item expenditures:
Contracted Security Guard Services for Guardhouse and 50% of Rover
214,000
Gate Maintenance and Repairs
24,000
Utilities_
_7,000
Guardhouse Janitorial Services
4,000
Other Miscellaneous Operating_ Expenditures — _
w --
2,000
OIG Internal Service Charges
------ --- --- - -- - ----- -------- --- -----P --- - —
1,000
------ --------
- ---- - - - - --- --
Total
$252,000
To provide the current level of security required by the Normandy Shores Local Government
Neighborhood Improvement District, the Administration recommends an ad valorem millage of
1.0659 mills. This tax levy will generate proceeds of $265,256, which will be budgeted at
approximately 95.0%, or $251,993 (rounded to $252,000), to account for early payment discounts,
delinquencies, etc. This millage rate will fund the FY 2022 budget summarized above for the
District, with no City subsidy.
Page 130 of 397
FY 2022 Normandy Shores Final Millage Rate
September 30, 2021
Page 4 of 5
The FY 2022 ad valorem millage rate, based on the recommendation of the FERC at its July 23,
2021 meeting, is 1.0659 mills, which is 0.9886 mills more than the adopted FY 2021 millage rate
of 0.0773 mills. This increase is primarily due to the 2015 "clean-up" Ordinance that inadvertently
re -adopted the original 1993 Ordinance that included an ad valorem cap of $500 per property
instead of the 2002 Ordinance that removed the cap of $500 per property and the elimination of
the City's 35% subsidy.
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, 2021), 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 2022.
The "rolled -back" rate is the millage rate required to produce the same level of property tax
revenue in FY 2022 as collected in FY 2021. The rate is calculated at 0.0755 mills, which is 0.0018
mills less than the millage rate of 0.0773 adopted for FY 2021. The "rolled -back" millage rate !tax
levy would generate proceeds of $18,789. The difference between the proposed millage rateJor
FY 2022 and the "rolled -back" rate levy is $246,467.
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 1.0659 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
0.8833 mills (equivalent to a 4.43% increase in Property Tax revenues). The 1.0 4,443
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 0.9716 mills (equivalent to a 10.0% increase in Property Tax revenues above
Option 1).
• Option III: A unanimous approval of the Commission or referendum is required to approve
a millage above 0.9716 mills.
Adoption of the final FY 2022 millage rate of 1.0659 mills for the Normandy Shores Local
Government Neighborhood Improvement District would, therefore, require a unanimous approval
(7 of 7 votes) by the City Commission per the State of Florida's Truth-in-Millage (TRIM)
requirements.
Page 131 of 397
i
FY 2022 Normandy Shores Final Millage Rate
September 30, 2029
Page 5 of 5
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 (1.0659) and its principal taxing authority (5.7626) totals 6.8285 mills, which is
3.1715 mills less than the statutory cap of 10 mills.
On September 17, 2021, the Mayor and City Commission adopted the tentative operating millage
rate for the District of 1.0659 mills and tentative operating budget in the amount of $252,000 ;for
FY 2022.
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 1.0659 mills for the District for FY 2022.
i
Attachment A — FY 2022 Normandy Shores Budget
J
ATH/JW/TOS
Page 132 of 397
ATTACHMENT A
Surplus / (Shortfall) 1 $ 31,890 1 $ 17,086 1 $ (31,168) 1
$ 0 1 $ . 0 I $ 0
REQUIRED MILLAGE 0.9564 0.8161 0.8161 0.0773 1.0659 0.9886 1279.8%
Existing Values 196,441,992 209,647,105 219,807,591 233,297,993 245,073,256 11,775,263 5.0%
New Construction 1,719,766 2,458,268 3,896,854 9,459,518 3,782,998 (5,676,520) -60.0%
Total 198,161,758 212,105,373 223,704,445 242,757,511 248,856,254 6,098,743 2.5%
Value of 1 Mill 198,162 212,105 223,704 242,758 248,856 6,099 2.5%
95% of 1 Mill 188,254 201,500 212,519 230,620 236,413 5,794 2.5%
Footnotes: '
I1) FY 2021 Adopted Budget was based on a one-time use of fund balance for operations of the district
(Z) FY 2022 security guard services based on current hourly rate of $21.03 for services provided 24 hours/day, 7 days/week, for guardhouse, plus 49 hours a week for a security rover at $21.03 per hour and $5,760 fee for
rental of a golf cart (the hourly rate is subject to change for living wage if adopted by the City Commission for FY 2022). The cost of the roving guard and rental of golf cart is split -funded between Normandy Shores (50%)
via Prop Mgmt. chargeback and the Normandy Shores Golf Course (50%). The increase in security guard services is due to an increase of $0.32 in the contracted hourly rate and an increase of $480 for the golf cart rental
rate.
(3) OIG Internal Service charge based on FY 2022 allocations
I41 Utility costs based on FY 2021 actuals to date, plus projected increase of 1.1% for CPI in accordance with the City's utility fee rates
(s) Other Expenditures includes the annual Special Taxing District state fee paid to the Department of Economic Opportunity and funding for repairs and maintenance. The concrete island project included in the FY 2022
Preliminary Budget, in the amount of $10,000, was subsequently withdrawn based on the 6/17/2021 Normandy Shores Local Government Improvement Board Meeting
Page 133 of 397
FY 2022 Normandy Shores District Budget
FY 2018
Actuals
FY 2019
Actuals
FY 2020
Actuals
FY 2021
Adopted
Budget
FY 2022
Proposed
Budget
$ Variance
FY 2022 Budget vs
FY 2021 Adopted
% Variance
FY 2022 Budget vs
FY 2021 Adopted
REVENUES
Residents 65%
180,050
164,450
173,550
17,900
252,000
234,100
1307.8%
City 35%
96,950
88,550
93,450
93,100
0
(93,100)
-100.0%
Restitutions
6,207
595
1,662
0
0
0
0.0%
Miscellaneous/Interest
176
1,408
1,131
3,000
0
(3,000)
-100.0%
Fund Balance/Retained Earnings Ill
0
0
0
135,000
0
(135,000)
-100.0%
Total
$ 283,383 $
255,003 $
269,793 $
249,000 $
252,000
$ 3,000
1.2%
EXPENDITURES
Security Guard Services 12)
210,000
210,000
217,000
210,000
214,000
4,000
1.9%
Janitorial Services
0
1,067
3,892
4,000
4,000
0
0.0%
Gate Repairs (AAA Repairs)
22,428
19,170
31,099
20,000
20,000
0
0.0%
Internal Service - Other Repairs
0
0
0
5,000
4,000
(1,000)
-20.0%
Internal Service - OIG Set -Aside I3l
0
0
0
1,000
1,000
0
0.0%
Utilities (Electricity & Telephone) 14)
1,260
1,723
5,835
7,000
-7,000
0
0.0%
RFID System
0
0
42,200
0
0
0
0.0%
Video Camera System Upgrade
0
0
0
0
0
0
0.0%
AED Guardhouse Defibrillator
1,404
- 0
0
- 0
0
0
0.0%
Other Expenditures Isl
16,400 1
5,957 1
936
2,000
2,000
0 1
0.0%
Total
$ 251,493 1 $
237,917 1 $
300,961 $
249,000 1 $
252,000
$ 3,000 11.2%
Surplus / (Shortfall) 1 $ 31,890 1 $ 17,086 1 $ (31,168) 1
$ 0 1 $ . 0 I $ 0
REQUIRED MILLAGE 0.9564 0.8161 0.8161 0.0773 1.0659 0.9886 1279.8%
Existing Values 196,441,992 209,647,105 219,807,591 233,297,993 245,073,256 11,775,263 5.0%
New Construction 1,719,766 2,458,268 3,896,854 9,459,518 3,782,998 (5,676,520) -60.0%
Total 198,161,758 212,105,373 223,704,445 242,757,511 248,856,254 6,098,743 2.5%
Value of 1 Mill 198,162 212,105 223,704 242,758 248,856 6,099 2.5%
95% of 1 Mill 188,254 201,500 212,519 230,620 236,413 5,794 2.5%
Footnotes: '
I1) FY 2021 Adopted Budget was based on a one-time use of fund balance for operations of the district
(Z) FY 2022 security guard services based on current hourly rate of $21.03 for services provided 24 hours/day, 7 days/week, for guardhouse, plus 49 hours a week for a security rover at $21.03 per hour and $5,760 fee for
rental of a golf cart (the hourly rate is subject to change for living wage if adopted by the City Commission for FY 2022). The cost of the roving guard and rental of golf cart is split -funded between Normandy Shores (50%)
via Prop Mgmt. chargeback and the Normandy Shores Golf Course (50%). The increase in security guard services is due to an increase of $0.32 in the contracted hourly rate and an increase of $480 for the golf cart rental
rate.
(3) OIG Internal Service charge based on FY 2022 allocations
I41 Utility costs based on FY 2021 actuals to date, plus projected increase of 1.1% for CPI in accordance with the City's utility fee rates
(s) Other Expenditures includes the annual Special Taxing District state fee paid to the Department of Economic Opportunity and funding for repairs and maintenance. The concrete island project included in the FY 2022
Preliminary Budget, in the amount of $10,000, was subsequently withdrawn based on the 6/17/2021 Normandy Shores Local Government Improvement Board Meeting
Page 133 of 397