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R7B2-Adopt Tentative Operating Budget For Normandy Shores Local GovCOMMISSION ITEM SUMMARY Condensed Title: A resolution adopting the tentative operating budget for the Normandy Shores Local Government Neighborhood lmprovement District for Fiscal Year (FY) 2014115 subject to a second public hearing scheduled on T 30,2014 at 5:02 p.m. Kev lntended Outcome Supported: lncrease visibility of police; Maintain crime rates at or below national trends. Supporting Data (Surveys, Environmental Scan, etc.): ln the 2014 Community Survey, both residents and businesses reported the following areas for the City to address in an effort to improve public safety:o Neighborhood safety during the day (Residents: 98%)o Neighborhood safety during the evening/night (Residents: 88%) Item Summary/Recommendation : The total operating expenditures to provide the proposed budget to this district is $222,000 for FY 20'14115. The City of Miami Beach General Fund is required to provide 35o/o of the total operating expenditures ($77,700), and the City has funded the 35% for each of the twentyyears since the Districtwas established. The amount provided by the General Fund for this purpose in FY 2013114 was $78,750. The FY 2014115 proposed budget is $222,000. The proposed budget provides for continual 24-hour security and includes two line items which were requested and approved by the Normandy Shores Neighborhood District Homeowners'Association on July 11,2014. These include $10,000 for security camera upgrades to the North Shore-Fairwayentrance; and $10,000 for potential additional costs related to the security gate project. The proposed budget is 1% ($3,000) lower than the FY 2013114 adopted budget. Advisorv Board Recommendation : Financial lnformation : Financial tmpact Summary The $77,700 impact to the General Fund from the FY 2014115 proposed is $1.050 less than the FY 2013114 E* MIAMIBTACH AGENDA ,TEM R19? oArE q-lD'ly41 g MIAMIBEACH Gify of Miomi Beoch, I700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISSION MEMORANDUM TO:Mayor Philip Levine and Members o FROM: Jimmy L. Morales, City Manager DATE: September10,2014 LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATTVE OPERATTNG BUDGET FOR FISCALYEAR (FY) 2014115 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON TUESDAY, SEPTEMBER 30, 2014 AT 5:02 P.M. ADMINISTRATION RECOMMENDATION Adopt the Resolution which establishes the tentative operating budget for the Normandy Shores Local Government Neighborhood lmprovement District for FY 2014115 in the amount of $222,000, subject to a second public hearing to be held on Tuesday, September 30, 2014. BI\CKGROUND The Normandy Shores Local Government Neighborhood lmprovement District (the 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 2014115 represents its twenty-first 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 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. lt was further agreed that the City would continue to supplement the District at current levelsuntiltheGolfCourseassumesthiscost. OnAugust29,2002,theAdministrationmetwith the Normandy Shores Local Government Neighborhood lmprovement 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 tentative millage for Normandy Shores District has been adopted (See accompanying District Millage Agenda ltem for details). 42 FY 2014115 Normandy Shores Tentative Budget September 10,2014 Page 2 of 2 ANALYSIS The total operating expenditures to provide the proposed budget to this district is $222,000 for FY 2014115. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($77,700), 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 2013114 was $78,750. The $222,000 budget inFY 2014/15 includes two line items which were requested and approved by the Normandy District Homeowners' Association on July 1 1,2014. These include $10,000 for security camera upgrades to the North Shore-Fairway entrance; and $10,000 for potential additional costs associated with the new gate. The budget is 1% ($3,OOO1 lower than the FY 2013114 adopted budget. The $77,700 impact to the General Fund from the FY 2014115 proposed budget is $1,050 less than the FY 2013114 adopted budget impact of $78,750. To provide the current level of security required by this district, the Administration recommends the proposed ad valorem millage of 1.1305 mills. This tax levy will generate proceeds of $153,059. The decrease of 0.1382 mills from the prior year millage represents an annual decreaseof $44.43totheCityaverage2Ol4homesteadedpropertyof$321 ,S42taxablevalue,a total of approximately $59+ per year. The tentative operating budget for the District is as follows: Revenues Ad Valorem Tax City's General Fund Total Expenses Security Service Maintenance Gate & Security Cameras Total $ 144,300 77.700 $ 222,000 $ 173,000 29,000 20,000 $ 222,000 CONCLUSION The City Commission, acting in its capacity as the Board of Directors of the Normandy Shores Local Government Neighborhood lmprovement District, should adopt the attached Resolution which establishes a tentative operating budget and schedules the second and final public hearing. JLM/JW 43 RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE OPERATING BUDGET FOR FISCAL YEAR (Fn z0fifis SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON TUESDAY, SEPTEMBER 30, 2014 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 Govern ment Neig hborhood t mprovem ent District ( District); and WHEREAS for the purpose of providing security services within the District, a tentative budget has been developed to fund projected FY 2014115 operating expenses; and WHEREAS, accordingly, on September 10, 2014, pursuant to Section 200.065 of the Florida Statues, 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 (FY 2014115) for the District. 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 10, 2014, the Board hereby adopts the tentative operating budget for the District for FY 2014115 as summarized and listed below, subject to a second public hearing scheduled on Tuesday, September 30, 2014 at 5:02 P.M.: PASSED and ADOPTED this 1Oth day of September,2014. Revenues Ad Valorem Tax City's General Fund Total Expenses Security Service Maintenance Gate & Security Cameras Tota! $ 144,300 77.700 $ 222,000 $ 173,000 29,000 20.000 $ 222,000 Chairperson of the District APPROVED AS TO FORM & IANGUAGE & FOR EXECUTION ATTEST: City Attomey Secretary to the District t-]-14 44