Resolution 2022-32335 RESOLUTION NO. 2022-32335
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM
MILLAGE RATE OF 0.9717 MILLS FOR FISCAL YEAR 2023 FOR THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT, WHICH IS NINE AND SIX TENTHS
PERCENT(9.6%) MORE THAN THE "ROLLED-BACK" RATE OF 0.8864
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 establish 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 0.9407
mills, anything beyond this rate, up to 1.0348 mills, requires a two-thirds (5/7th) vote, and a
unanimous approval is required to approve a millage rate above 1.0348 mills for Fiscal Year(FY)
2023; and
WHEREAS, on July 20, 2022, the City Commission, acting as the Board of Directors of
the District, adopted Resolution No. 2022-32253 which set the proposed operating millage rate of
the District at 0.9717 mills for the purpose of providing security services within the District for FY
2023; and
WHEREAS, at the first public hearing on September 14, 2022, 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 0.9717 mills for FY 2023;
and
WHEREAS, on September 14, 2022, 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 FY 2023.
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 28, 2022, the Mayor and
City Commission hereby adopt the Final Operating Millage rate of 0.9717 mills for the District for
FY 2023, which is nine and six tenths percent (9.6%) more than the "Rolled-back" rate of 0.8864
mills.
PASSED AND ADOPTED this 28th day of September 20
ATTEST:
Dan Gelber, Mayor
�
Rafael E. Granad � ,.ttttttttrk APPROVED AS TO FORM AND
vW, '' LANGUAGE AND FOR EXECUTION EP 2 9 2022
INCORPORATED'
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Resolutions - R7 C
MiAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 28, 2022
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
0.9717 MILLS FOR FISCAL YEAR 2023 FOR THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,
WHICH IS NINE AND SIX TENTHS PERCENT (9.6%) MORE THAN THE
"ROLLED-BACK" RATE OF 0.8864 MILLS.
RECOMMENDATION
See attached Memorandum.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
N/A
Applicable Area
Citywide
Is this a "Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Strategic Connection
Organizational Innovation- Ensure strong fiscal stewardship.
Legislative Tracking
Office of Management and Budget
ATTACHMENTS:
Description
Page 256 of 508
❑ Memo- FY 2023 Normandy Shores Millage
Page 257 of 508
MIAMI BEAC
City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Honorable Mayor Dan Gelber and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 28, 2022
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 0.9717 MILLS FOR FISCAL YEAR
2023 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT, WHICH IS NINE AND SIX TENTHS PERCENT (9.6%)
MORE THAN THE "ROLLED-BACK" RATE OF 0.8864 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:
The Final Adopted Millage Rate for the Normandy Shores Neighborhood Improvement
District for Fiscal Year(FY) 2023:
General Operating 0.9717 mills (0.0942 decrease from last year)
The first public hearing on the tentative District millage rate and budget for FY 2023 was held on
Wednesday, September 14, 2022. The millage rate herein is that which was tentatively adopted
at the first public hearing on that day.
On July 1, 2022, the City received the 2022 Certification of Taxable Value from the Miami-Dade
County Property Appraiser for the Normandy Shores Local Government Neighborhood
Improvement District indicating that the taxable value was approximately$305.5 million, including
$7.1 million of new construction. Overall, this represents an increase of approximately $56.6
million, or 22.8 percent (%), over the 2021 Certification of Taxable Value of $248.9 million
provided by the Miami-Dade County Property Appraiser as of July 1, 2021 for the Normandy
Shores Local Government Neighborhood Improvement District. It is important to note that the final
2021 tax roll for the Normandy Shores Local Government Neighborhood Improvement District of
$248.1 million is approximately$0.8 million, or 0.3%, lower than the 2021 Certification of Taxable
Value due to appeals, adjustments, etc.
Page 258 of 508
FY 2023 Normandy Shores Final Millage Rate
September 28, 2022
Page 2 of 5
July 2021 Ii July 2022 i, -$ II - %
Certified ill Certified I; Change II Change
Property Assessment
Existing Values 248,856,254 298,359,433 49,503,179 19.9%
New Construction 0 7,113,479 7,113,479 100.0%
Total Normandy Shores 248,856,254 305,472,912 56,616,658 22.8%
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 2023 represents its twenty-ninth
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."
On September 11,1997, Resolution 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 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 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 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 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.
Page 259 of 508
FY 2023 Normandy Shores Final Millage Rate
September 28, 2022
Page 3 of 5
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 2020-4386 on
December 9, 2020.
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 2023 Normandy Shores Local Government Neighborhood Improvement District budget,
as reflected in Attachment A, is $282,000, which reflects an increase of$30,000, or 11.9%, over
the adopted FY 2022 budget of$252,000 and is comprised of the following expenditures:
Items Included in FY 2023 Expenditures �i $
Contracted Security Guard Services for Guardhouse and 50%of Rover 214,000
Gate Maintenance and Repairs 25,500
Set-aside for Renewal and Replacement of Capital Assets 20,000
Set-aside for Reserve 10,000
Guardhouse Utilities 7,000
Guardhouse Janitorial Services 4,000
OIG Internal Service Charges 1,000
Other Miscellaneous Operating Expenditures 500
Total $282,000
Page 260 of 508
FY 2023 Normandy Shores Final Millage Rate
September 28, 2022
Page 4 of 5
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
0.9717 mills, which is 0.0942 mills, or 8.8%, less than the adopted FY 2022 millage rate of 1.0659
mills. Based on the 2022 Certification of Taxable Value for the Normandy Shores Local
Government Neighborhood Improvement District provided by the Miami-Dade Property Appraiser
as of July 1, 2022, this tax levy would generate proceeds of$296,828, which will be budgeted at
approximately 95.0%, or$281,987(rounded to$282,000),to account for early payment discounts,
delinquencies, etc. This millage rate will fund the budget summarized above for the District for FY
2023, with no City 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 2023.
The "rolled-back" rate is the millage rate required to produce the same level of property tax
revenue in FY 2023 as collected in FY 2022.The rate is calculated at 0.8864 mills,which is 0.1795
mills less than the millage rate of 1.0659 adopted for FY 2022. The "rolled-back" millage rate tax
levy would generate proceeds of$270,771. The difference between the millage rate for FY 2023
and the "rolled-back" rate levy is $26,057.
After setting the proposed operating millage rate for the Normandy Shores Local Government
Neighborhood Improvement District, the City Commission may, at any time prior to the final
adoption, lower the millage rate; however, any increase above the proposed rate of 0.9717 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
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
0.9407 mills (equivalent to a 6.13% increase in Property Tax revenues). The 1.0613
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 1.0348 mills(equivalent to a 10.0% 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 1.0348 mills.
Page 261 of 508
FY 2023 Normandy Shores Final Millage Rate
September 28, 2022
Page 5 of 5
Adoption of the final FY 2023 millaqe rate of 0.9717 mills for the Normandy Shores Local
Government Neighborhood Improvement District would, therefore, require a two-thirds approval
(5 of 7 votes) by the City Commission per the State of Florida's Truth-in-Millage (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 (0.9717) and its principal taxing authority (5.8155)totals 6.7872 mills, which is
3.2128 mills less than the statutory cap of 10 mills.
On September 14, 2022, the Mayor and City Commission adopted the tentative operating millage
rate for the District of 0.9717 mills and tentative operating budget of$282,000 for FY 2023.
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 0.9717 mills for the Normandy Shores Local
Government Neighborhood Improvement District for FY 2023.
Attachment A— FY 2023 Normandy Shores Budget
ATH/JW/TOS
Page 262 of 508
ATTACHMENT A
FY 2023 Normandy Shores District Budget
FY 2022 FY 2023 $Variance %Variance
FY 2019 FY 2020 FY 2021 Adopted Proposed FY 2023 Proposed vs FY 2023 Proposed vs
Actuals Actuals Actuals 111 Budget Iz1 _ Budget FY 2022 Adopted FY 2022 Adopted
REVENUES
Residents 164,450 173,550 17,900 252,000 282,000 30,000 11.9%
City 88,550 93,450 93,100 0 . 0 0 0.0%
Restitutions 131 595 1,662 1,677 0 -0 0 0.0%
Miscellaneous/Interest 1,408 1,131 80 0 0 0 0.0%
Total $ 255,003 $ 269,793 $ 112,757 $ 252,000 '$ 282,000 $ 30,000 11.9%
EXPENDITURES .
Internal Service-Security Guard Services 141 210,000 217,000 210,000 214,000 214,000 0 0.0%
Janitorial Services 1,067 3,892 3,877 4,000 - 4,000 0 0.0%
Gate Repairs(AAA Repairs) 19,170 31,099 24,291 -20,000 20,500 500 2.5%
Other Repairs and Maintenance 0 0 0 4,000 5,000 1,000 25.0%
Internal Service-OIG Set-Aside R) 0 0 0 1,000 1,000 0 0.0%
Utilities(Electricity&Telephone)I61 1,723 5,835 5,655 7,000 - 7,000 0 0.0%
RFID System 0 42,199 0 0 0 0 0.0%
LPR Camera System 0 0 35,554 0 0 0 0.0%
NRenewal&Replacement Set-Aside 191 0 0 0 0 - 20,000 20,000 100.0%
CO Other Expenditures 181 5,957 936 4,367 2,000 500 (1,500) -75.0%
CD
Transfer to Reserve 191 0 0 0 0 10,000 10,000 100.0%
01 Total $ 237,917 $ 300,961 $ 283,744 $ ` 252,000 $ 282,000 $ 30,000 11.9%
CO
0 Surplus/(Shortfall) $ 17,086 $ (31,168) $ (170,987) $ 0 $ 0 $ 0
01
0
CO REQUIRED MILLAGE 0.8161 0.8161 0.0773 1.0659 0.9717 (0.0942) -8.8%
Existing Values 1301 209,647,105 219,807,591 233,297,993 245,073,256 298,359,433 53,286,177 21.7%
New Construction 1101 2,458,268 3,896,854 9,459,518 3,782,998 7,113,479 3,330,481 88.0%
Total MI 212,105,373 223,704,445 242,757,511 248,856,254 305,472,912 56,616,658 22.8%
Value of 1 MIII 212,105 223,704 242,758 248,856 305,473 56,617 22.8%
95%of 1 Mill 201,500 212,519 230,620 236,413 290,199 53,786 22.8%
Footnotes:
111 The FY 2021 millage and budget was adopted to comply with the$500 cap codified on the levy of property taxes per parcel for operations of the Normandy Shores Local Government Neighborhood
Improvement District,which resulted in a significant reduction in revenue of$155,000 based on the decrease in the FY 2021 millage rate from the proposed millage of 0.7497 mills to 0.0773 mills.To offset the
reduction in revenue in FY 2021,available fund balance projected in the Normandy Shores Fund of$135,000 was appropriated,the budget reduced by$20,000,and the City's original 35.0%subsidy of$93,100
maintained for FY 2021
121 Effective FY 2022,the City Commission adopted Ordinance 2020-4236 eliminating the$500 per parcel cap and Resolution No.2021-31819 eliminating the City's annual subsidy of 35.0%for operations of the
Normandy Shores Local Government Neighborhood Improvement District,while maintaining the City's 50.0%contribution towards the cost of the security rover
131 Per the Facilities&Fleet Management Department,necessary gate repairs funded outside of the District's budget were made and restitutions totaling$8,828.56 collected during FY 2022
141 Security guard services for FY 2023 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
$2,880 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 2023).The cost of the security rover and rental of golf cart is split-funded between
Normandy Shores(50%)via Prop Mgmt.chargeback and the City(50%)
191 Internal Service-OIG based on FY 2023 allocations
161 Utilities for FY 2023 based on FY 2022 actuals to date,plus projected increase of 4%in electricity based on notification from FPL on rate increase
p1 FY 2023 Renewal and Replacement Set-Aside of$20,000 for future renewal and replacement of Normandy Shores guardhouse assets
181 Other Expenditures for FY 2023 based on annual Special Taxing District state fee paid to the Department of Economic Opportunity
(9)FY 2023 Transfer to Reserve of$10,000 budgeted to offset negative fund balance of$9,677 as of September 30,2021
1101 FY 2023 values based on Certified Values received July 1,2022 from the Miami-Dade County Property Appraiser