HomeMy WebLinkAbout2006-26311 Reso
RESOLUTION NO. 2006-26311
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE TENTATIVE AD
VALOREM MILLAGE OF 0.338 MILLS FOR FISCAL YEAR 2006/07
FOR THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS SIX
PERCENT (6.0%) GREATER THAN THE "ROLLED-BACK" RATE
OF 0.319 MILLS, SUBJECT TO A SECOND PUBLIC HEARING
SCHEDULED ON THURSDAY, SEPTEMBER 21,2006 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, Section 200.065, Florida Statutes, has specified the method by which
municipalities may fix the operating millage rate and adopt an annual budget for dependent
taxing districts; and
WHEREAS, on July 12, 2006, the City Commission adopted Resolution 2006-26240
which set the proposed operating millage rate for the District at 0,338 mills for the purpose of
providing security services within the District; and
WHEREAS, on September 6, 2006, a public hearing was held before the Mayor and
City Commission, acting as the Board, to discuss the tentative operating millage rate and
operating budget for the District for Fiscal Year (FY) 2006/07.
NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF
THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT, that the Board hereby adopts the tentative operating millage rate of 0.338 mills for
the District for FY 2006/07, which is greater than the "Rolled-back" ra of 0, 19 mills by six
percent (6,0%), subject to a second public hearing scheduled on T r day September 21,
2006, at 5:02 P,M,
PASSED and ADOPTED this 6th day of September 20 6,
ATTEST:
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Secretary to the District
Robert Parcher
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTiON
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COMMISSION 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 Of 0.338 mills for Fiscal Year 2006/07 for
The Normandy Shores Local Government Neighborhood Improvement District, which is six percent
(6.0%) greater than the "Rolled-Back" Rate Of 0,319 mills, subject to a second public hearing scheduled
on Thursday, September 21, 2006 At 5:02 P,M,
Ke Intended Outcome Su orted:
Ensure expenditure trends are sustainable over the long term
Improye the City's overall financial Health and maintain overall bond rating
Increase Communit Satisfaction with Cit Services
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 millage and sets the date for the second public hearing,
Item Summary/Recommendation:
The tentative ad valorem millage recommended by the Administration is 0.338 mills to provide the current
level of security required by this district. This tax levy will generate proceeds of $87,949, The total
operating budget to provide security services at the current service level to this district is $135,254. This is
comparable to the current year end projections. An additional $3,000 is included in the budget to fund
upgrading the electronic access system, The difference between the revenues which will be generated
from ad-valorem tax proceeds and the total budgetary requirement of the district must be supplemented by
a contribution from the General Fund in the amount of $47,305 or 35% of the total operating budget.
The General Fund has funded this difference for each of the twelve years since the District was
established, The amount provided by the General Fund for this purpose in FY 2005/06 was $45,131.
Advisory Board Recommendation:
I
Financial Information:
Source of
Funds:
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OBPI
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
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Assistant City Manager
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MIAMI BEACH
AGENDA ITEM
DATE
1<781
9-6-0(,
lD
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
COMMISSION MEMORANDUM
TO:
Mayor David Dermer and Members of the City Commission
FROM:
Jorge M. Gonzalez, City Manager ~~. ~
September 6,2006 (J, 0
DATE:
SUBJECT:
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
ADOPTING THE TENTATIVE AD VALOREM MILLAGE OF 0.338 MILLS FOR
FISCAL YEAR 2006/07 FOR THE NORMANDY SHORES LOCAL
GOVERNMENT DISTRICT, WHICH IS SIX PERCENT (6.0%) GREATER THAN
THE "ROLLED-BACK" RATE OF 0.319 MILLS, SUBJECT TO A SECOND
PUBLIC HEARING SCHEDULED ON THURSDAY, SEPTEMBER 21,2006 AT
5:02 P.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 sets the following:
1) The tentatively adopted millage rate for the Normandy Shores Neighborhood
Improvement District for FY 2006/07:
General Operating 0.338 mills
(0.814 mills last year)
2) The tentatively adopted millage rate of 0.338 mills is 6.0% greater than the "Rolled-
back" Rate of 0.319 mills.
3) The second public hearing to consider the final Normandy Shores District millage
rate and budget for FY 2006/07 shall be at 5:02 P.M., Thursday, September 21,
2006 in the City Commission Chambers, City Hall, 1700 Convention Center Drive.
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 2006/07 represents its thirteenth 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". However, 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.
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 guard gate. This cost will eventually be funded from the golf
course operation of the Normandy Shores Golf Course.
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, Le.,
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 Agenda item R7B2 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 June 30, 2006, the City received the 2006 Certification of Taxable Value from the
Property Appraiser's Office stating that the taxable value for Normandy Shores is
$269,642,346, which included $514,306 in new construction, The preliminary value
represents an increase of 155 percent over 2005's final value of $1 05,441,735. Alternately,
the increase is 153 percent over 2005's preliminary value of $1 06,557,047, The difference of
$1,115,321 between 2005's preliminary and final values represents the equalization loss of
approximately one percent due to appeals.
The tentative ad valorem millage recommended by the Administration is 0.338 mills to
provide the current level of security required by this district. This tax levy will generate
proceeds of $87,949. The total operating budget to provide security services at the current
service level to this district is $135,254. This is comparable to the current year end
projections. An additional $3,000 is included in the budget to fund upgrading the electronic
access system. The difference between the revenues which will be generated from ad-
valorem tax proceeds and the total budgetary requirement of the district must be
supplemented by a contribution from the General Fund in the amount of $47,305 or 35% of
the total operating budget.
The General Fund has funded this difference for each of the twelve years since the District
was established. The amount provided by the General Fund for this purpose in FY 2005/06
was $45,131.
On July 12, 2006, the City Commission adopted Resolution 2006-26240 which set the
proposed operating millage rate for the District at 0.338 mills. It must be noted that in
accordance with State Statute, there is a 10 mill operating cap which cannot be exceeded
without voter approval. Combining both millages from the dependent district (0.338) and the
principal taxing authority (7.374) totals 7.712 mills, which is 2.288 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.
JMG:KGB:JC
T:\AGENDA\2006\sep0606\Regular\NS Millage Memo 1PH em 07.doc