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Resolution 2025-33947 2025-33947 RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR 2026. 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 final budget has been developed to fund projected Fiscal Year (FY) 2026 operating expenditures; and WHEREAS, on September 17, 2025, 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 operating budget for FY 2026 for the District; and WHEREAS, at the first public hearing on September 17, 2025, 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 budget of$343,000 for the District for FY 2026. 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, 2025, the Mayor and City Commission, acting as the Board of Directors of the District, hereby adopts the final operating budget for the District for FY 2026, as summarized below: Revenues Ad Valorem Tax $341,000 Miscellaneous/Interest Income 2,000 Total $343,000 Expenditures Contracted Security Guard Services for Guardhouse $253,000 Security Gate and Guardhouse Maintenance/Repairs 40,200 Set-aside for Renewal and Replacement of Capital Assets 20,000 City of Miami Beach Internal Service Charges and Administrative Fees 19,000 Guardhouse Utilities (Electricity, Telephone, etc.) 6,100 Guardhouse Janitorial Services 4,500 Other Miscellaneous Operating Expenditures 200 Total $343,000 PASSED AND ADOPTED this �day of �P�►►9tXr , 2025. ATTEST: . �!,T f; 1 ��'�'� Chairperson of the District Secretary to the District ;-�,�;i�h�;��,,, APPROVED AS TO __^��.�� � : ..�c��.,, FORM&LANGUAGE =r���y ti�''- 8� FOR EXECUTION _ ,f r=°�. 's �.INCO�P�ORATED; � �'�',�9•. �'� �~=" 20 LJ ,,,,��4��.-��_ � � ,.„ � Redevelor ment Ac�ency Date Ger�eral �ou^sel Resolutions - R7 D MIAMlB�A� H COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: September 30, 2025 5:02 p.m. Second Reading Public Hearing TITLE: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR 2026. 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 final operating budget for the District for Fiscal Year (FY) 2026 in the amount of$343,000. The first public hearing to adopt the District's tentative operating millage rate and budget for FY 2026 was held on Wednesday, September 17, 2025. The operating budget reflected herein is that which was tentatively adopted at the first public hearing. BACKGROUND/HISTORY 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 2026 represents its thirty-second (32�d) 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 DistricYs 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 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 189 of 425 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 properties 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 final millage rate for the District has been adopted (see accompanying Normandy Shores Local Government Neighborhood Improvement District Millage agenda item for details). ANALYSIS The Normandy Shores Local Government Neighborhood Improvement District budget for FY 2026, as summarized below and further detailed in Attachment A, is $343,000. The FY 2026 budget reflects an overall increase of $7,000, or 2.1%, from the adopted FY 2025 budget of $336,000. The overall increase is primarily attributed to increased costs for contracted security guard services based on anticipated service hours and hourly rates. . • � i �; Contracted Security Guard Services for Guardhouse and 50%of Rover $253,000 Security Gate and Guardhouse Maintenance/Repairs 40,200 Set-aside for Renewal and Replacement of Capital Assets 20,000 City of Miami Beach Internal Service Charges and Admi:�istrative Fees 19,000 Guardhouse Utilities(Electricity,Telephone,etc.) 6,100 ��,�.•��; Guardhouse Janitorial Services 4,500 Other Miscellaneous Operating Expenditures � 200 Total $343,000 To provide the level of services requested by the District for FY 2026, an ad valorem millage rate of 0.7305 mills is necessary for FY 2026. This levy will generate property tax revenues of $358,911, which will be budgeted at approximately 95.0%, or $340,965 (rounded to $341,000), to account for early payment discounts, delinquencies, etc. The millage rate for FY 2026, combined with $2,000 in projected interest income, will fund the FY 2026 budget for the District. 190 of 425 On September 17, 2025, the Mayor and City Commission tentatively adopted the operating millage rate of 0.7305 mills and operating budget of$343,000 for the District for FY 2026. FISCAL IMPACT STATEMENT See the information provided above. 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.qov/citv-hall/city-clerk/meetinq-notices/ FINANCIAL INFORMATION See the information provided above. 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 attached Resolution which establishes the final operating budget of $343,000 for the Normandy Shores Local Government Neighborhood Improvement District for FY 2026. Attachment A— FY 2026 Normandy Shores Budget EC/JDG/TOS/RA Applicable Area Citywide Is this a "Residents Riqht to Know" item, Is this item related to a G.O. Bond pursuant to Citv Code Section 2-17? Proiect? Yes No Was this Aqenda Item initiallv requested bv a lobbvist which, as defined in Code Sec. 2-481, includes a principal enqaqed in lobbvinq? No If so, specify the name of lobbyist(s) and principal(s): Department Management and Budget Sponsor(s) Co-sponsor(s) 191 of 425 Condensed Title 5:02 p.m. 2nd Rdg, Adopt Final Operating Budget-Normandy Shores Loc Gov. OMB Previous Action (For Citv Clerk Use Onlvl First Reading Public Hearing on 9/17/2025 - R7 F 192 of 425 ATTACHMENT A FY 2026 Normandy Shores District Budget SVariance %Variance FY 2022 FY 2023 FY 202o iN 2Q25 FY i0t6 N 2026 Proposed FV 2026 Proposed Actuals�'� Actuals Actuals Adopted Budget Proposad Budget vs vs FY 2025 Adopted FY 2025 Adopted REVENUES Residents S 25Z,000 $ 282.000 $ 319,139 $ 332,000 $ 341,000 5 9,000 2.�96 Restitutions 3,740 5,637 4,823 - - - 0.0% Miscellaneous/IntercsUncome - - 4,317 4,000 2,000 (2,000� -50.096 Total S 255,7�0 $ 287,63] S 326,27! j 336,000 $ 3�3,000 S 7,000 2.1X D(PENORURES SecurityGuardServices''� S 214,000 5 214,000 $ 727.000 $ 237,100 5 ]53,000 5 15,900 6.7% Janitorial Strvices�'� 3,907 3,982 3,9B7 4,000 4,500 S00 12.5% Gate kepairs(AM Rep�irs) 37,989 34,420 79,299 35,100 35,OD0 (100) -0.3% Other Repairs and Maintenance - 8,350 1,007 5,000 5,200 2D0 4.0% Fatili[ies Management Internal Service Charges�"� - - - 16,000 18,000 7,OD0 12.5% Internal Service-DIG Set-Aslde�s� 1,000 1,000 1,000 1,000 1,000 - 0.0% Utillties(Electnciry&Tdephone��6� 6,666 6,946 6,720 7,300 6,100 (1,2D0) -16.4% Guardhouse TechnoloQy Upgrades�One-Time� - - - 5,000 - �5,000� -100.0% HFID Reader System�One-Time� - 10,958 - - - - 0.0% Renewal&Replacement Set-Aside��' - - - 70,000 20,000 - 0.0% OtherOpenting Expenditures°1 200 175 ll5 500 Z00 (300) 30.0% Transfer to Resme�'� - - - 5,000 - (5,000) -100.0% io[al S 263,763 S 279,833 S 269,]07 S 336.000 S 3�3,OOU 5 7.000 2.1% Surplus/(Shortfall) S (8,023) $ 7.799 S 59,171 S • $ - S � 0.0% REQUIRE�MILtAGE 1.0659 0.9717 0.8468 0.7789 0.7305 (0.0184� -6.2% Footnotef: - �:i Effective FY 2022,the City Commission adopted Ordinance 2020.4236 eliminating tbe S5o0 per parcel cap and Rewlution No.2021-31819 eliminating the City's anaual subsidy of 35.0%far operotions of the Normandy Shores Loul Government Nei�hborhood Improvement District,while mainUining the City's 50.09G contributlon towards[he cas[of the security rover u�FY 2026 sewrity�uerd casts arc based on the proposed hours and current Murly ntes(inclusive of the 3%livin�w�ge increate for FY�025)of the two level 1 securiry�uerds and the rental costs assxiated with the golf cart ss provided by hrocurement and the department.Additional increax is based on the new anticipated rate increases for tMe security euards rel�ted to the ongoing negotiations. ui FV 2026 janitonal urvices bssed on the proposed haurs and houdy rrtes for re`ular services m the amaunt of$3,900,as well a:an additional 5600 fw increaud ja�ito�isl services as needed at thls locatian �.i Includes approMimately 12.75%of the spGt-funded tulbtime FaciGBes 2one Manager pasition in the Facilities and Fleet Manajement Department responsible far thc d�ily opera[ions of the Normandy Shores District,whlch includes�2.09G merit,3.0%COLA,an 8.0%increase in Heal[h and Life Insurance over fV X725 projections,and�proportionate share of pension costs for a portion of the full-time Facilities 2one Manager position.In addition,indirect costs for services provided 6y the City assaiated with the operotions of[he Normandy Shores Distritt aie induded based on a Full Cost Allowtion Plan Study that was completed by a third-party consultant. lsi Based on[he Offlce of[he Inspector GeneraPs FY 202fi hudge[and mternal services allootions for FY 2026 �ci Utilities for FY 2026 based on the FY 2015 average monthly invoices with a 2.5%inueate 6eing applied specifically to electriciry in anticipatwn of the proposed FPL nte inveases pi FV 2026 Renewal and Replacement Se[�Aside based on FV 2D25 adopted bud`e[ pi Other E�penditures for FY 2026 based on annual Special Taxing District stete fee paid to the Department of Economic Opportunity iai FY 2026 Transfer to Reserve removed for FY 2026 as the previous yeds seFsside was wlely fo�the replmishment of the fund balance and is no lon6er requircd for the upcomirq fiscal year 193 of 425