R7B1-Adopt Tentative Ad Valorem Millage For Normandy Shores Local GovCOMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE AD VALOREM MILLAGE RATE
OF 1.2687 MILLS FOR FISCAL YEAR (FY) 2013/14 FOR THE NORMANDY SHORES LOCAL GOVERNMENT
DISTRICT, WHICH IS NINETEEN PERCENT (19.0%) MORE THAN THE "ROLLED-BACK" RATE OF 1.0664
MILLS SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON MONDAY, SEPTEMBER 30,2013 AT
5:02P.M.
Key Intended Outcome Supported:
Increase visibility of police; Maintain crime rates at or below national trends
Supporting Data (Surveys, Environmental Scan, etc.):
In the 2009 Community Survey, both residents and businesses reported the following areas for the City to
address in an effort to improve public safety:
• Preventing crime (Residents: 44.9%, Business: 43.9%)
Issue:
Shall 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 sets the Tentative Ad
Valorem Millage Rate; the Calculated Rolled-Back Rate; and sets the date, time and place for the second public
hearing?
Item Summary/Recommendation:
The FY 2013/14 current service level budget is $192,000, which is 2% ($4,000) higher than the FY 2012/13
adopted budget. This is due primarily to the increasing cost of gate repairs and maintenance, based on the
current year experience. The current design of the security gate has contributed to multiple repairs and
increasing cost of maintenance and a $3,000 increase is budgeted for FY 2013/14. The current service millage
rate is 1.0826, a decrease of0.0618 mills (5.4%)from the FY 2012/13 millage rate of 1.1444. The adoption of the
current service level millage of 1.0826 would require a majority vote of the Commission.
The rolled-back rate is the millage rate required to produce the same level of property tax revenue on FY 2013/14
as anticipated to be collected in FY 2012/13 based on adjusted values as of July 1, 2013. The rolled-back rate is
calculated at 1.0664 or 0.0780 mills less than the millage rate of 1.1444 adopted for FY 2012/13. The current
service level millage rate is slightly higher than the rolled-back rate due to the $4,000 increase in the projected FY
2013/14 expenses mentioned above.
The Normandy District Homeowners' Association has proposed an enhancement to the current service level
budget of $40,000 to fund one-time costs associated with redesigning the security gate and enhancing security
camera equipment. The redesign of the gate is intended to resolve ongoing repair and maintenance issues
related to the existing design. The enhanced security camera equipment is a police department recommendation
that will help identify responsible vehicles to recoup funds from incidents of property damage claims. The
proposed budget with enhancements also includes an offsetting $7,000 savings to the projected repair and
maintenance budget line item. This savings is anticipated due to the redesign of the gate project.
The proposed ad valorem millage recommended by the Administration is 1.2687 mills to provide the enhanced
level of security requested by this district. The FY 2013/14 proposed millage rate is above the maximum millage
rate of 1.1928 allowed to be adopted by a two-thirds vote, and will therefore require a unanimous vote.
Advisory Board Recommendation:
Financial Information:
Source of Amount• .........
Funds:
1
I fl· I 2
OBPI Total
City Clerk's Office Legislative Tracking:
MIAMI BEACH
45
Account
City Manager
AGENDA ITEM _f/_7__;8::......:...../_
DATE---'9!....-:....:../f....:....:/3~
~ MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miomibeochfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Me
FROM: Jimmy L. Morales, City Manager
DATE: September 11, 2013
SUBJECT: A RESOLUTION OF THE BOA D OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
ADOPTING THE TENTATIVE AD VALOREM MILLAGE RATE OF 1.2687 MILLS
FOR FISCAL YEAR (FY) 2013/14 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT DISTRICT, WHICH IS NINETEEN PERCENT (19.0%) MORE
THAN THE "ROLLED-BACK" RATE OF 1.0664 MILLS SUBJECT TO A
SECOND PUBLIC HEARING SCHEDULED ON MONDAY, SEPTEMBER 30,
2013 AT 5:02P.M.
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 tentatively adopted millage rate of the Normandy Shores
Neighborhood Improvement District for FY 2013/14:
General Operating 1.2687 mills (1.1444) last year
2) The tentatively adopted millage rate of 1.2687 mills is 19.0% more than
the "Rolled-Back" Rate of 1.0664 mills
3) The second public hearing to consider the final Normandy Shores
Neighborhood Improvement District operating millage rate and final
budget for FY 2013/14 shall be held on Monday, September 30, 2013 at
5:02P.M., in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
46
FY 2013/14 Normandy Shores Tentative Millage Rate
September 11, 2013
Page 2 of 4
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; FY 2013/14 represents it twentieth year
of operation.
It 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 FY 1998/99 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. 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 the Normandy Shores Local Government Neighborhood
Improvement District representatives and agreed to eliminate the $500 cap on the highest
valued home in the District. The enabling legislation was adopted by the Commission on
September 25, 2002. This ensures that the City's contribution from the General Fund
remains at 35% of the operating budget of 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.,
City of Miami Beach.
It also prescribes that a tentative millage be adopted first. This is accomplished by adopting
a Resolution which states the percent increase or decrease over the "Rolled-back" rate, and
the date, time, and place of the second public hearing scheduled to adopt the final millage.
Following this, another Resolution which tentatively adopts the Normandy Shores District
operating budget must be approved. (See accompanying District Budget Agenda item for
details).
The statute requires 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.
ANALYSIS
On July 1, 2013, the City received the 2012 Certification of Taxable Value from the Property
Appraiser's Office stating that the taxable value for Normandy Shores is $121,339,865,
which includes an increase of $360,092 in new construction, renovation, etc. The
preliminary value represents an increase of $8,946,451 from the July 1, 2012 Certification of
taxable Value of $112,393,414 (7.9 percent) and an increase of 7.6 percent over 2012's July
2013 value of $112,735,259. It is important to note that the January 1, 2012 tax roll for
47
FY 2013/14 Normandy Shores Tentative Millage Rate
September 11, 2013
Page 3 of 4
Normandy Shores increased by almost $342,000 (0.3%) between the July 1, 2012 valuation
and the July 1, 2013.
Current Service Level Budget
The current service level budget reflects budget increases or decreases necessary to
provide the current level of services in the coming year. The FY 2013/14 current service
level budget is $192,000, which is 2% ($4,000) higher than the FY 2012/13 adopted budget.
This is due primarily to the increasing cost of gate repairs and maintenance, based on the
current year experience. The current design of the security gate has contributed to multiple
repairs and increasing cost of maintenance and a $3,000 increase is budgeted for FY
2013/14.
As a result of this increase in the current service level budget, the ad valorem millage to
provide the current level of security required by this district is 1.0826 mills, which is 0.0618
mills (5.4%) lower than the FY 2012/13 adopted millage of 1.1444 due to a 7.9% increase in
2013 property values. This tax levy would generate proceeds of $131,370.
The rolled-back rate is the millage rate required to produce the same level of property tax
revenue on FY 2013/14 as collected in FY 2012/13. The rate is calculated as 1.0664, or
0.0780 mills less than the millage rate adopted for FY 2012/13. The rolled-back millage rate
tax levy would generate proceeds of $129,400. The difference between the current service
level and rolled-back rate levy is $1,970. The adoption of the current service level millage of
1.0826 would require a majority vote of the Commission.
Proposed FY 2013/14 Budget with Enhancements
The Normandy District Homeowners' Association has proposed an enhancement to the
current service level budget of $40,000 to fund one-time costs associated with redesigning
the security gate and enhancing security camera equipment. The redesign of the gate is
intended to resolve ongoing repair and maintenance issues related to the existing design.
The enhanced security camera equipment is a police department recommendation that will
help identify responsible vehicles to recoup funds from incidents of property damage claims.
The proposed budget with enhancements also includes an offsetting $7,000 savings to the
projected repair and maintenance budget line item. This savings is anticipated due to the
redesign of the gate project.
The proposed ad valorem millage recommended by the Administration is 1.2687 mills to
provide the current level of service, plus one-time enhancement requested by the
Homeowners' Association. This is 0.2023 mills more than the rolled-back rate of 1.0664.
This tax levy will generate proceeds of $154,000. In order to adopt this millage rate, this
would require a unanimous vote by Commission.
The increase of 0.1243 mills from the prior year millage represents an annual increase of
$39.41 to the City average 2013 homesteaded property of $317,086 taxable value for a total
of approximately $402 per year ($33.50 per month).
48
FY 2013/14 Normandy Shores Tentative Millage Rate
September 11, 2013
Page 4 of 4
The total operating expenditures to provide the current service level with the proposed
enhancement is $225,000 for FY 2013/14. The City of Miami Beach General Fund is
required to provide 35% of the total operating expenditures ($78,750), and the City has
funded the 35% for each of the twenty years since the District was established. The amount
provided by the General Fund for this purpose in FY 2012/13 was $65,800. The $225,000
in FY 2013/14 represents a $37,000 increase (19.6%) from the FY 2012/13 budget of
$188,000, primarily due to the addition of $40,000 of one-time funding for the construction of
a new gate as well as security camera upgrades requested by the homeowners.
For the Normandy Shores taxing District, the value for each mill ($1.00 of ad valorem tax for
each $1,000 of property value) is determined by the 2013 Certification of Taxable Value and
has been set at $121,340. Florida Statutes permit a discount of up to five percent for early
payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is
$115,273. Accordingly, 1.2687 mills are required to generate $146,250 in property tax
revenues by the district
The rolled-back rate is the millage rate required to produce the same level of property tax
revenue on FY 2013/14 as collected in FY 2012/13. The rate is calculated as 1.0664, or
0.0780 mills less than the millage rate adopted for FY 2012/13.
Further, pursuant to State Statute, the City may elect to approve millage rates above the
rolled-back rate up to the constitutional cap of 1 0 mills subject to the following votes by the
Commission or referendum:
• Option 1: A majority of the approval of the Commission Millage is required to approve a
millage up to 1.0844 (equivalent to a 1.69% increase in Property Tax revenues). The
1.69% 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 1.1928 (equivalent to a 10% increase in Property Tax revenues above
Option 1).
• Option ·111: A unanimous approval of the Commission or referendum is required to
approve a millage above 1.1928 mills
The proposed rate of 1.2687 requires therefore unanimous approval (7 of 7 votes) of the
Commission.
It must be noted that in accordance with State Statute, there is a 1 0 mill operating cap which
cannot be exceeded without voter approval. Combining both millages from the dependent
district (1.2687) and the principal taxing authority (6.1438) totals 7.4125 mills, which is
2.5875 mills less than the 10 mill cap.
CONCLUSION
The City Commission, acting in its capacity as the Board of Directors of the District, should
adopt the attached Resolution which establishes a tentative millage and schedules the
second and final public hearing.
JLM:~BIJW
49
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16NE I THURSDAY, AUGUST 22, 2013 __ _.;..,.N:.:::E~---
MIAWdBEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that public hearings will be held
by the Mayor and City Commission of the Ci1y of Miami
Beach, Florida, in the City Commission Chambers, 3rd Aoor,
City Hall, 1700 Convention Center Drive, Miami Beach,
Florida, on Wednesday, September 11, 2013 to consider
the following:
5:01p.m.
The Arst Public Hearing Adopting The Proposed Millage
RatesAnd Budgets For Fiscal Year (FY) 201.3/14 For The Ci1y
Of Miami Beach.
5:02p.m.
The Rrst Public Hearing Adopting The Proposed Millage
Rate And Budget For Fiscal Year (FY) 2013114 For The
Normandy Shores Local Government Neighborhood
Improvement District
Inquiries may be directed to the Ofl!ce of Budget and
Performance Improvement {305) 673-7510.
INTERESTED PARTIES are invited to appear at this meeting,
or be represented by an agent, or to express their views in
writing addressed to the City Commission, r:Jo the City Clerk,
1700 Convention Center Drive, 1st Floor, City Hall, Miami r-
Beach, Florida 33139. Copies of these items are available
for public inspection during normal business hours in the
City Clerk's Office, 1700 Convention Cen1er Drive, 1st Floor,
City Hail, Miami Beach, Florida 33139. This meeting may he
continued, and under such circumstances, additional legal
notice .will not be provided.
Rafael E. Granado, City Clerk
City of Miami Beach
Pursuant to Section 286.0105, Aa. Stat., the City hereby
advises 1he public that if a person decides to appeal any
decision made by the City Commission with respect to any
matter considered at its meeting or its hearing, such person
must ensure that a verbatim record of the proceedings Is
made, which record includes the tes1imony and evidence
upon which 1he appeal is to be based. This notice does
not constitute consent by the City for the introduction or
admission of otherwise inadmissible or irrelevant evidence,
nor does it alflhorize challenges or appeals not otherwise
allowed by law.
To request this material in accessible format, sign language
interpreters, information on access for persons with disabilities
and/or any accommodation to review any document or
participate in any City-sponsored proceeding, please contact
us five days iil advance at {305) 673-7 411 (Voice} orTIY users
may also call the Florida Relay Service at 711.
Ad#797
50
MIA I BEACH
CITY OF MIAMI BEACH
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52