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Resolution 2024-33291 RESOLUTION NO. 2024-33291 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR 2025, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY, SEPTEMBER 25, 2024, AT 5:02 P.M. 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 tentative budget has been developed to fund projected Fiscal Year (FY) 2025 operating expenditures; and WHEREAS, on September 16, 2024, pursuant to Section 200.065, Florida Statutes, the Mayor and 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 FY 2025. 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 16, 2024, the Mayor and City Commission, acting as the Board of Directors of the District, hereby adopts the tentative operating budget for the District for FY 2025, as summarized below, subject to a second public hearing scheduled on Wednesday, September 25, 2024, at 5:02 p.m., in. the City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139. Revenues Ad Valorem Tax $332,000 Miscellaneous/Interest Income 4,000 Total $336,000 Expenditures Contracted Security Guard Services $237,100 Security Gate and Guardhouse Maintenance/Repairs 40,100 Set-aside for Renewal and Replacement of Capital Assets 20,000 City of Miami Beach Internal Service Charges and Fees 17,000 Guardhouse Utilities (Electricity, Telephone, etc.) 7,300 Set-aside for Reserves for Future Projects 5,000 Guardhouse Technology Upgrades (One-Time) 5,000 Guardhouse Janitorial Services 4,000 Other Miscellaneous Operating Expenditures 500 Total $336,000 PASSED AND ADOPTED'this /( day of 5'sp1410:60,- , 2024. ATTEST: / SEP 1 9 2024 Chairperson of the District APPROVED AS TO FORM&LANGUAGE Secretary to the District ,1'9.s ,, &FOR EXECUTION INCORP PRATED,' 9) 22I o2-t a *h; City Attorney Date • ATTACHMENT A • FY 2025 Normandy Shores District Budget $Variance %Variance FY 2021 FY2022 FY2023 FY2024 FY2025 FY 2025 Proposed FY 2025 Proposed Actuelsltl Actuels 14 Aetosis Adopted Budget' Proposed Budget vs vs Ft 2024 Adopted FY 2024 Adopted REVENUES Residents $ 17,900 $ 252,000 $ 282,000 $ 316,000 $ 332,000 $ 16,000 5.1% City 93,100 - - - - - 0.0% Restitutions 1,677 3,740 5,632 - . - - 0.0% Miscellaneous/Interest income 80 - - , - 4,000 4,000 100.0% Use of Fund Balance/Retained Earnings - - - - - - 0.0% Total $ 112,757 $ 255,740 $ 287,632 $ 316,000 $ 336,000 $ 20,000 6.3% EIIPENDFTURES Security Guard Servicesl0l $ 210,000 $ 214,000 $ 214,000 $ 227,000 $ 237,100 $ 10,100 4.4% Janitorial Services 3,877 3,907 3,982 4,000 4,000 - 0.0% Gate Repairs(AAA Repairs) 28,458 37,989 34,420 35,500 35,100, (400) -1.1% Other Repairs and Maintenance - - 8,350 5,000 5,000 - 0.0% Facilities Management Internal Service Chargeslx1 - - - 16,000 16,000 100.0% Internal Service-OIG Set-Aside pl - - 1,000 1,090 1,000 - 0.0% Utilities(Electricity&Telephone)Isl 5,655 - 6,948 7,030 7,300 300 4.3% Guardhouse Technology Upgrades(One-Time) - - - - 5,000 5,000 100.0% RFID Reader System(One-Time) - - 10,958 - 0.0% LPR Camera System(One-Time) 35,554 - - - - 0.0% South Entrance Gate Project(One-Time) - - - ,6,000 - (6,000) -100.096 Renewal&Replacement Set•Aside pl - - 20,00D 20,000 - 0.0% Other Operating Expenditures lei 200 200 175 500 500 - 0.0% Transfer to Reserve 9I - • - 10,000 5,000 (5,000) -50.0% Total $ 283,744 $ 256,096 $ 279,033 $ 316,000 $ 336,000 $ 20,000 6.3% (Surplus/(Shortfall) I$ (170,987)1$ (356)I$ 7,739 I$ - I$ - I$ - I I 'REQUIRED MILAGE 0.0773 1.0659 0.9717 0.8468 0.7789 (0.0679) -8.0%I Footnotes• (6 The FY 2021 mlllage 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 mlllage 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 S93,100 was maintained for FY 2021. Si 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. OI FY 2025 securityguard casts are based on anticipated annual hours provided by Facilities Management with the new hourly rates inclusive of the recent 5%increase for security guard services,which Include the cost of the security rover and golf cart rental that is split-funded between the Normandy Shores(50%)District and the City(50%). ici Includes approximately 12.25%af the split-funded full-time Administrative Officer position in the Facilities and Fleet Management Department responsible for the daily operations of the Normandy Shores District,which Includes a 2.0%merit,0.0%COLA,a 10%Increase In Health and Life Insurance over FY 2024 projections,and proportionate share of pension costs for portion of full-time Administrative Officer position funded.In addition,Indirect costs for services provided by the City associated with the operations of the Normandy Shores District are included based on an updated Full Cost Allocation Plan Study that was completed by a third-party consultant during FY 2024 based on FY 2023 expenses. m Based on the Office of the Inspector General's FY 2025 budget and Internal services allocations far FY 2025. iq Utilities for FY 2025 based on FY 2023 actuals and the FY 2024 average monthly invoices. pi FY 2025 Renewal and Replacement Set-Aside based on FY 2024 adopted budget. pi Other Expenditures for FY 2025 based on annual Special Taxing District state fee paid to the Department of Economic Opportunity. Si FY 2025 Transfer to Reserve based on HOA request. isei FY 2025 property values based an 2024 Certified values received from the Miami-Dade County Property Appraiser on July 1,2024. Resolutions - R7 D MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: September 16, 2024 5:02 p.m. First Reading Public Hearing TITLE: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR 2025, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY, SEPTEMBER 25, 2024, AT 5:02 P.M. RECOMMENDATION See attached Memorandum. BACKGROUND/HISTORY ANALYSIS FISCAL IMPACT STATEMENT See attached Memorandum. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION CONCLUSION Applicable Area Citywide Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? Pane 1 fl7 of 2fl4 Yes No Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481 L includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department Management and Budget Sponsor(s) Co-sponsor(s) Condensed Title 5:02 p.m. 1st Rdg PH, Adopt Tentative Operating Budget-Normandy Shores Loc Gov. OMB Pane 1 n3 of 2n4 MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Honorable Mayor Steven Meiner and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: September 16, 2024 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR 2025, SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY,SEPTEMBER 25,2024, AT 5:02 P.M. 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 of the Normandy Shores Local Government Neighborhood Improvement District ("District"), adopt the attached Resolution which establishes the tentative operating budget for the District for Fiscal Year (FY) 2025 in the amount of$336,000, subject to a second public hearing scheduled on Wednesday, September 25,2024, 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 taxing authority,the City of Miami Beach,was established in 1994 to provide continuous twenty-four (24) hour security to this gated community. FY 2025 represents its thirty-first (31 st)year of operation. The Normandy Shores Local Government Neighborhood Improvement District was officially established by Ordinance No. 93-2881 with the authority "to levy an ad-valorem tax on real and personal property of up to two (2) mills, provided that no parcel of property will be assessed more than $500 annually for such improvements." On September 23, 1998, Resolution No. 98-22902 adopted the Normandy Shores Local Government Neighborhood Improvement District's FY 1999 budget. The accompanying memorandum noted that a determination was reached that the City would fund 35% of the annual cost of the community guard gate. It also stated that this cost would eventually be funded by the Normandy Shores Golf Course,the City Attorney's Office would review the issue of the dependent status of the Normandy Shores Local Government Neighborhood Improvement District,and the City Panp 1 n4 of 2f14 FY 2025 Tentative Normandy Shores Budget September 16, 2024 Page 2 of 3 would continue supplementing the budget at current levels until both issues were 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 would 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 adopted Ordinance No. 2015-3928. With respect to the Normandy Shores Local Government Neighborhood Improvement District, because the prior versions of the Ordinance had not been codified,the 2015 Ordinance sought to codify the legislation that had been previously adopted. However, in so doing, the legislation codified the original 1993 Ordinance that included an ad valorem cap of $500 per property instead of the updated 2002 Ordinance that had removed 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. On July 28, 2021, the City Commission, based on the recommendation of the Finance and Economic Resiliency Committee at its July 31,2021 meeting, adopted Resolution No.2021-31819 eliminating the City's 35% subsidy, while continuing to fund 50% of the total cost of the security rover for the District and Normandy Shores Golf Course. Since then, the annual budget for the Normandy Shores Local Government Neighborhood Improvement District has been fully funded through a dedicated ad valorem tax levied on property within the Normandy Shores Local Government Neighborhood Improvement District to provide continuous 24-hour security to this gated community with the City continuing to fund 50% of the total cost of the security rover shared between the Normandy Shores Local Government Neighborhood Improvement District and the Normandy Shores Golf Course. PROCEDURE The operating millage rate and budget for this dependent taxing district must be adopted in accordance with Florida Statutes. This procedure requires that this Resolution be considered immediately after the tentative millage rate for the District has been adopted (see accompanying Normandy Shores Local Government Neighborhood Improvement District Millage agenda item for details). PROPOSED BUDGET The Normandy Shores Local Government Neighborhood Improvement District budget proposed for FY 2025, as summarized below and further detailed in Attachment A, is $336,000. The FY 2025 budget proposed,which was approved by the Normandy Shores Homeowners'Association, reflects an increase of $20,000, or 6.3%, from the adopted FY 2024 budget of $316,000 and includes $5,000 for one-time guardhouse technology upgrades that were requested by the District in FY 2025. Dnric, inc of Ind FY 2025 Tentative Normandy Shores Budget September 16, 2024 Page 3 of 3 Expenditures in FY 2025 Budget $ Contracted Security.Guard Services for Guardhouse and 50%of Rover $237,100 Security Gate and Guardhouse Maintenance/Repairs 40,100 'Set-aside for Renewal and Replacement of Capital Assets 20,000 City of Miami Beach Internal Service Charges and Fees 17,000 Guardhouse Utilities(Electricity,Telephone,etc.) . • 7,300 Set-aside for Reserves for Future Projects 5,000 Guardhouse Technology Upgrades(One-Time) 5,000 Guardhouse Janitorial Services 4,000 Other Miscellaneous Operating Expenditures 500 Total $336,000 To provide the level of services, as well as one-time guardhouse technology upgrades, that were requested and approved by the District for FY 2025, an ad valorem millage rate of 0.7789 mills is proposed for FY 2025. This levy will generate property tax revenues of$349,464, which will be budgeted at approximately 95.0%,or$331,991 (rounded to$332,000),to account for early payment discounts, delinquencies, etc. The millage rate proposed for FY 2025, in combination with other miscellaneous revenues projected totaling $4,000, will fund the FY 2025 budget proposed for the District. CONCLUSION The Mayor and City Commission, acting in its capacity as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District, should adopt the Resolution which establishes the tentative FY 2025 operating budget of$336,000 for the District,subject to a second and final public hearing scheduled on Wednesday, September 25, 2024, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139 Attachment A— FY 2025 Proposed Normandy Shores Budget EC/JDG/TOS/RA Panes 1 nA of 9fld