2007-26605 ResoRESOLUTION NO. 2007-26605
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT SETTING 1)
THE PROPOSED GENERAL OPERATING MILEAGE
RATE FOR THE NORMANDY SHORES NEIGHBORHOOD
IMPROVEMENT DISTRICT; 2) THE CALCULATED
ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND
PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER
THE OPERATING MILEAGE RATE AND BUDGET FOR
FISCAL YEAR (FY) 2007/08; FURTHER AUTHORIZING
THE CITY MANAGER TO TRANSMIT THIS INFORMATION
TO THE MIAMI-DADE COUNTY PROPERTY APPRAISER
IN THE FORM REQUIRED BY SECTION 200.065,
FLORIDA STATUTES.
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, an increase in the millage rate above the FY 2006/07 millage
rate is required to address an error by the Miami-Dade County Property Appraiser with
the Certified 2006 Taxable Value; and
WHEREAS, the Mayor and City Commission of the City of Miami Beach,
acting as the Board of Directors of the Normandy Shores Local Government
Neighborhood Improvement District propose that the District's General Operating
Millage Rate be set at 1.0363 mills and that the Rolled-Back Rate be set at 0.2827 mills;
and
WHEREAS, the City of Miami Beach is required to advise the Miami-
Dade County Property Appraiser of the Proposed Normandy Shores Neighborhood
Improvement District Operating Millage Rate, the Rolled-Back Rate, and the date, time,
and place of the first public hearing.
NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF
DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, that the following recommendations of
the Administration be and are hereby ratified for transmittal to the Miami-Dade County
Property Appraiser, as specified in Section 200.065, Florida Statutes:
Agenda Item R1 K
Date ?-( -p
1) Proposed Normandy Shores Local Government Neighborhood Improvement
District Operating Millage Rate for FY 2007/08
General Operating 1.0363 mills
2) "Rolled-Back Rate" 0.2827 mills
3) The first public hearing on the proposed Normandy Shores Local Government
Neighborhood Improvement District operating millage rate and tentative budget
for FY 2007/08 shall be held on Wednesday, September 12, 2007 at 5:02 p.m., in
the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami
Beach, Florida.
PASSED and ADOPTED this 11t" day of
ATTEST:
~~I~e~
CITY CLERK
Robert Parcher
APPROVED AS TO
FORM & LANGUAGE
COMMISSION ITEM SUMMARY
Condensed Title:
Resolution Of The Board Of Directors Of The Normandy Shores Local Government Neighborhood
Improvement District Setting The Proposed General Operating Millage Rate Of 1.0363 Mills For The
Normandy Shores Neighborhood Improvement District; The Calculated Rolled-Back Rate Of 0.2827 Mills;
And The Date, Time And Place Of The First Public Hearing To Consider The Operating Millage Rate And
Budget For Fiscal Year (FY) 2007/08 Scheduled On Wednesday, September 12, 2007 At 5:02 P.M.
Ke Intended outcome 5u orted:
Increase resident ratings of public safety services; Maintain crime rates at or below national trends
Supporting Data (Surveys,- Environmental Scan, etc.):
Safety across the City (preventing crime, drugs, gangs, speeding cars)was ranked number one by
residents as one of the most important areas affecting theirqualityof life and it was also mentioned as
one of the changes that would make Miami Beach a better place to live, work, play, or visit. Safety
during the day appeared as a key driver for resident's perceptions of Miami Beach as a place to live
and overall quality of life. Also, crime prevention was ranked number four by residents as one of the
most im ortant areas that the Cit can address with re ards to ublic safety.
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 Proposed General Operating Millage Rate; the Calculated Rolled-Back Rate; and sets the date, time
and place for the first public hearing?
item summaryiKecommendatlon:
An increase in the millage rate above the FY 2006/07 millage rate is required to address an error by the
Miami-Dade County Property Appraiser with the Certified 2006 Taxable Value. Last June, the City
received a 2006 Certified Taxable Value for Normandy Shores in the amount of $269,642,346, an increase
of 155 percent over 2005's final value of $105,441,735. As a result, the City decreased the millage rate for
the Normandy Shores dependent taxing district from 0.814 to 0.338, a decrease of 58 percent.
On June 29' 2007, the City received a revised 2006 taxable value from the Property Appraiser in the
amount of $126,517,149. The reduction was a correction to an error made by the PropertyAppraiser last
year. Had the millage been based on this correct value for FY 2006/07, it should only have been reduced
from 0.814 to 0.720. Therefore, property tax collections in FY 2006/07 are projected to be $46,649 less
than budgeted resulting in a shortfall which will need to be advanced from the City and repaid by the
Normandy Shores taxing district in FY 2007/08. Accordingly, the Normandy Shores taxing district millage
needs for FY 2007/08 needs to be set at the level needed to cover FY 2007/08 expenditures (0.7115) as
well as repay the FY 2006/07 shortfall (0.3248) for a total Normandy Shores millage of 1.0363.
Board Recommendation:
Financial Information:
Source of Amount Account
Funds: ~
2
OBPI Total
Financial Impact Summary:
Clerk's Office Legislative
Si n-Offs:
Department Director Assistant City Manager City Manager
~ _ ~?K
+~ MIAMI BEACH AGENDA~ATE ~ ~~"
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~~
DATE: July 11, 2007 v
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY
SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT
SETTING 1) THE PROPOSED GENERAL OPERATING MILEAGE RATE FOR
THE NORMANDY SHORES NEIGHBORHOOD IMPROVEMENT DISTRICT; 2)
THE CALCULATED ROLLED-BACK RATE; AND, 3) THE DATE, TIME AND
PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE OPERATING
MILEAGE RATE AND BUDGET FOR FISCAL YEAR (FY) 2007/08; FURTHER
AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO
THE MIAMI-DADE COUNTY PROPERTY APPRAISER IN THE FORM
REQUIRED BY SECTION 200.065, FLORIDA STATUTES
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) Proposed Operating Millage Rate of the Normandy Shores
Neighborhood Improvement District for FY 2007/08:
General Operating 1.0363 mills
2) "Rolled-Back" Rate (Truth In Millage) 0.2827 mills
3) The first public hearing to consider the proposed Normandy
Shores Neighborhood Improvement District operating millage
rate and tentative budget for FY 2007/08 shall be held on
Wednesday, September 12, 2007 at 5:02 P.M., in the City
Commission Chambers, City Hall, 1700 Convention Center
Drive, Miami Beach, Florida.
FY 2007/08 Normandy Shores Proposed Millage Rate
July 11, 2007
Page 2 of 5
An increase in the millage rate above the FY 2006/07 millage rate is required to address an
error by the Miami-Dade County Property Appraiser with the Certified 2006 Taxable Value.
See attached July 5, 2007 letter from the Miami-Dade County Property Appraiser. Last
June, the City received a 2006 Certified Taxable Value for Normandy Shores in the amount
of $269,642,346, an increase of 155 percent over 2005's final value of $105,441,735. As a
result, the City decreased the millage rate for the Normandy Shores dependent taxing district
from 0.814 to 0.338, a decrease of 58 percent.
On June 29' 2007, the City received a revised 2006 taxable value from the Property
Appraiser in the amount of $126,517,149. The reduction was a correction to an error made by
the Property Appraiser last year. Had the millage been based on this correct value for FY
2006/07, it should only have been reduced from 0.814 to 0.720. Therefore, property tax
collections in FY 2006/07 are projected to be $46,649 less than budgeted resulting in a
shortfall which will need to be advanced from the City and repaid by the Normandy Shores
taxing district in FY 2007/08.
Accordingly, the Normandy Shores taxing district millage needs for FY 2007/08 needs to be
set at the level needed to cover FY 2007/08 expenditures (0.7115) as well as repay the FY
2006/07 shortfall (0.3248) for a total Normandy Shores millage of 1.0363.
Pursuant to the Roll-Back component of the legislation adopted by the Florida legislature in
June, the aggregate taxes levied the City of Miami Beach and any dependent taxing district
within the City of Miami Beach for FY 2007/08 are required to be to the roll back rate plus an
additional 9% reduction. Because of reductions in the overall Citywide millage, the
aggregate taxes levied, including Normandy Shores will be 9 percent less than the Roll-Back
Rate, as required.
BACKGROUND
The Normandy Shores Local Govemment 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 2007/08 represents its fourteenth
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 annuallyforsuch 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.
FY 2007/08 Normandy Shores Proposed Millage Rate
July 11, 2007
Page 3 of 5
Statutory Requirement
FS 200.065, entitled Method of Fixing Millage establishes specific guidelines that must be
used by all local government entities, including dependent taxing districts like Normandy
Shores insetting its millage (Property tax) rates. Not unlike its principal taxing authority (City
of Miami Beach), Normandy Shores is also required to transmit within 35 days from receipt
of the Certification of Taxable Value (received June 29, 2007), to the Miami-Dade County
Property Appraiser, a proposed operating millage rate, the calculated rolled-back rate and
the date, time, and place of the first public hearing to consider the proposed operating
millage rate and tentative budget for Fiscal Year 2007/08.
Pursuant to the Roll-Back component of the legislation adopted by the Florida legislature in
June any dependent taxing district within the City of Miami Beach is required to set its FY
2007/08 to the roll back rate plus an additional 9% reduction. The rollback rate is the millage
rate required to produce the same level of property tax revenues in FY 2007/08 as collected
in FY 2006/07, thereby forgoing any revenues associated with growth in assessed values.
Under the new legislation, the City may elect to approve millage rates to generate tax levies
above these levels up to the constitutional cap of 10 mills subject to an extraordinary vote by
the Commission or referendum:
• Millage above the 9% reduction but at or below rollback requires a supermajority of the
Commission.
• Millage above rollback but at or below current millage requires unanimous approval of
the Commission.
• Millage above current levels requires a referendum.
After setting the proposed operating millage rate for Normandy Shores, the City Commission
may, at any time prior to the final adoption, lower the millage rate; however any increase
above the tentative millage rate of 1.0363, if adopted, would require an expensive mailing
and advertising process to each property owner of Normandy Shores. Therefore, this
proposed millage rate is viewed as the ceiling.
ANALYSIS
On June 30, 2006, the City received the 2007 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
represented an increase of 155 percent over 2005's final value of $105,441,735.
On June 29, 2007, the City received the 2007 Certification of Taxable Value from the
Property Appraiser's Office stating that the taxable value for Normandy Shores is
$151,165,373 which included $61,160 in new construction. At the same time, the 2006 Final
Value was revised to $126,364,329. Upon further review with the Miami-Dade County
Property Appraiser's Office, it was determined that the 2006 Certified taxable value that had
been received the prior year was in error.
Had the millage been based on the correct preliminary value for FY 2006/07 of
$126,517,149, it should only have been reduced from 0.814 to 0.720. Therefore, property
tax collections in FY 2006/07 are projected to be $46,649 less than budgeted resulting in a
shortfall which will need to be advanced from the City and repaid by the Normandy Shores
taxing district in FY 2007/08.
FY 2007/08 Normandy Shores Proposed Millage Rate
July 11, 2007
Page 4 of 5
Operating Millage and Budget
The tentative ad valorem millage recommended by the Administration is 1.0363 mills to
provide the current level of security required by this district as well as repay the City of Miami
Beach for the shortfall in FY 2006/07. This tax levy will generate proceeds of $148,819.
The total operating expenditures to provide security services at the current service level to
this district is $157,184, an 16% increase over the FY 2006//07 amount of $135,254, due to
increased contract costs. Of this amount, the City of Miami Beach General Fund is required
to provide 35% of the total operating expenditures, $55,014. The General Fund has funded
35% of the operating costs of the district for each of the thirteen years since the District was
established. The amount provided by the General Fund for this purpose in FY 2006/07 was
$47, 339.
This leaves a balance of $102,170 to be funded by the Normandy Shore taxing district in
addition to the repayment of $46,649 to the City of Miami Beach for the FY 2006/07 shortfall,
for a total $148,819 to be funded by the Normandy Shores taxing district in FY 2007/08.
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 2007 Certification of Taxable Value and
has been set at $151,165. 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
$143,607. Accordingly, $1.0363 mills are required to generate $148,819 in property tax
revenues by the district.
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 (1.0363) and the principal taxing authority (5.6555) totals 6.6918 mills, which is
3.3082 mills less than the 10 mill cap.
First Public Hearing
The first public hearing on the proposed operating millage rate and tentative budget for FY
2007/08 must be held no later than 80 days (September 18th) or earlier than 65 days
(September 3rd) from the start of the TRIM calendar (July 1st). Other guidelines are: 1) The
public hearing cannot be scheduled on a Sunday or on those days utilized by Miami-Dade
County or the Miami-Dade County School Board for their public hearing; 2) If on a day other
than Saturday, it must be held after 5:00 P.M.; and 3) must be held immediately following
discussion of the tentative millage and budget of its principal taxing authority (City of Miami
Beach).
Based on these guidelines, the first hearing must be held between September 3rd and
September 18th. These dates are unavailable for the following reasons:
September 9 and 16 Sundays
September 6 and 20 Proposed dates for Miami-Dade County
Public Hearings
September 5 Miami-Dade County School Board Public
Hearing
FY 2007/08 Normandy Shores Proposed Millage Rate
July 11, 2007
Page 5 of 5
Of the remaining days, it is recommended that the first public hearing be set for Wednesday,
September 12, 2007 at 5:02 P.M., in the City Commission Chambers, City Hall, 1700
Convention Center Drive, immediately following the City of Miami Beach's public hearing.
JMG:KB:JC
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Administrative Division
111 !VW 1st street • suite 710
Miami, Florida 3312&1984
T 305-375-4008 F 305-375-3024
Sent Via Fax #850-488-9482
July 5, 2007
Ms. David Beggs
Revenue Program Admin. 1
Fiorida Department of Revenue
725 S. Calhoun Street
Tallahassee, FL 32399
Dear Mr. Beggs:
miamidade.gav
Pursuant to our conversation and my email on July 2nd regarding Normandy
Shore's 2006 DR-420, please note the following:
Normandy Shores is a dependent district within the City of Miami Beach.
Our office inadvertently reported the just value as the taxable value on their
2006 DR-420. Consequently, the taxing authority significantly reduced the
2006 millage rate from 0.814 in 2005 to 0.338 for 2006. The expected
revenue, based on the incorrectly stated value and understated millage rate,
was $91,139. Actual revenue collected based on the reported 2006 DR-
403BM is $42,857.
The City's concern now is in proceeding to properly calculate the 2007
required revenue and rollback millage rate to adequately fund this district.
As instructed by the Department of Revenue, my office has reviewed all of
the pertinent figures on the 2001 and 2006 DR-403CC/BM's and noted all
corrections as required. As you can see from the attached copy of Normandy
Shore's 2006 DR-420 and 2006 DR-403BM, there is a significant difference
between the expected revenue from the DR-420 and the actual collections
found on the DR-403BM.
For your consideration, I have attached a worksheet reflecting the DR-420
calculations indicating a revised calculation using the correct taxable value
for Normandy Shores. This worksheet indicates a revised 2006 rollback rate
of 0.681 instead of the erroneous 0.319 listed on the original 2006 DR-420.
This correction also revises the 2007 DR-420 roll back rate to 0.603.
In light of the Department's instructions to Property Appraisers and Taxing
Authorities to verify and validate corrections, I am asking that you take
URGENT NOTICE of this correction that must be made. Without a doubt,
not correcting this error will perpetuate this discrepancy sad unduly penalize
this jurisdiction in future years, which will hinder proper funding to
Normandy Shores residents with required contractual services.
~ ~
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Property Appraisal
Administrative Divis'ron
111 NW 1st Street • Suite 710
Miami, Florida 3312&1984
T 305-375-4008 F 305-375-3024
miamidade.gov
Mr. David Beggs
Revenue Program Admin. 1
Florida Department of Revenue
July 5, 2007
Page - 2 -
The City has scheduled their preliminary proposed budget hearing for next
Tuesday, July 17th. Prior to the scheduled hearing, both the City Budget
Director and I would like to conference call with you to discuss this matter
tomorrow morning at 9:00 a.m.
Sincerely,
~~ ~~~
Marcus Saiz de la Mora
Acting Property Appraiser
Miami-Dade County
cc: Kathie Brooks, Director of Budget and Improvement
City of Miami Beach
Enclosures: 2006 DR-420 Original
200'7 DR-420
2006 DR-403BM
2006 DR-420 Spreadsheet
Spreadsheet Reflecting Normandy Shores
2006 DR 420 Taxable Values
(1) Current Year Taxable Value of Real Property
(2) Current Year Taxable Value of Personal Property
(3) Current Year Taxable Value of Centrally Assessed Property
(4) Current Year Gross Taxable Value (1) + (2) + (3)
(5) Current Year Net New Taxable Value
(6) Current Year Adjusted Taxable Value (4) - (5)
(7) Prior Year Final Gross Taxable Value
(8) Prior Year Operating Millage Levy
(9) Prior Year Ad Valorem Proceeds (7) x (8)
(10) Current Year Rolled-Back Rate (9) divided by (6)
(11) Current Year Proposed Operating Millage Rate
"Calculations:
Original DR-420
.338 mills x 269,642,346 reported taxable value (line (4]):
91,139 in expected proceeds divided by 126,517,149 (line [4])
06 Original 06 Corrected 07 DR-420
269,232,411 126,107,214 150,226,143
409,935 409,935 939,230
0 0 0
269,642, 346 126,517,149 151,165, 373
514,306 514,306 61,160
269,128,040 126,002,843 151,104,213
105,441, 735 105,441, 735 126, 364, 329
0.814 0.814 0.720
85,830 85,830 91,139
0.319 0.681 0.603
0.338 0.720
91,139 2006 Expected Proceeds
0.720369639 mills
Rounded to .720 mills