2007-26651 ResoRESOLUTION NO. 2007-26651
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD
IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM
MILEAGE OF 1.0363 MILLS FOR FISCAL YEAR (FY) 2007/08 FOR
THE NORMANDY SHORES LOCAL GOVERNMENT
NEIGHBORHOOD IMPROVEMENT DISTRICT, WHICH IS TWO
HUNDRED SIXTY-SIX AND SIX TENTHS PERCENT (266.6%)
GREATER THAN THE "ROLLED-BACK" RATE OF 0.2827 MILLS.
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 September 26, 2007, a public hearing was held before the Mayor and
City Commission, acting as the Board, to discuss the operating millage rate and operating
budget for the District for FY 2007/08.
NOW THEREFORE, BE IT DULY RESOLVED BY THE BOARD OF DIRECTORS OF
THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT
DISTRICT, that, pursuant to Section 200.065, Florida Statutes, there is hereby levied and Ad
Valorem millage rate of 1.0363 mills for the District for FY 2007/08 on all taxable and non-
exempt real and person property located within the boundaries of the District for the purpose
of providing security services, which millage rate is greater tha he "R Iled-back" rate of
0.2827 mills by two hundred sixty-six and six tenths percent (2 6. %).
PASSED and ADOPTED this 26th day of
Chai~i6~ks6n of the District
AT EST: ' D~Gid Dermer
~ ~~~ u
Secretary to the District
Robert Parcher
APPROVED AS TO
FORM & LANGUAGE
~& F EXECUTION
a
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e a
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Board Of Directors of The Normandy Shores Local Government Neighborhood
Improvement District adopting the final Ad Valorem Millage Rate Of 1.0363 Mills For The Normandy
Shores Neighborhood Improvement District, which is two hundred and sixty six and six tenths percent
(266.6%) above the Calculated Rolled-Back Rate of 0.2827 Mills.
Key Intended Outcome Supported:
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 their quality of 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 important
areas that the City can address with regards to public 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 final Ad Valorem Millage Rate?
Item Summa /Recommendation:
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 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.
The first public hearing on the tentative District millage rate and budget for FY 2007/08 was held on
September 17, 2007. The millage rates presented herein are those which were tentatively adopted at the
end of the first ublic hearin held on that da .
Adviso Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: ~
N/A 2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Sign-Offs:
De me t Direc r Assistant City Manager City Manager
~ MIAMIBEACH
U
AGENDA ITEM R1 ~'
DATE q~u0'~~
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 Manage
DATE: September 26, 2007
SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES
LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING
THE FINAL AD VALOREM MILEAGE OF 1.0363 MILLS FOR FISCAL YEAR (FY)
2007/08 FOR THE NORMANDY SHORES LOCAL GOVERNMENT DISTRICT,
WHICH IS TWO HUNDRED SIXTY-SIX AND SIX TENTHS PERCENT (266.6%)
GREATER THAN THE "ROLLED-BACK" RATE OF 0.2827 MILLS.
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 final adopted millage rate for the Normandy Shores Neighborhood Improvement
District for FY 2007/08:
General Operating 1.0363 mills (0. 338 mills last year)
2) The final adopted millage rate of 1.0363 mills is 266.6% greater than the "Rolled- back"
Rate of 0.2827 mills.
The first public hearing on the tentative District millage rate and budget for FY 2007/08 was held
on September 17, 2007. The millage rates presented herein are those which were tentatively
adopted at the end of the first public hearing held on that day.
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 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 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 guard gate. This cost will
eventually be funded from the golf course operation of the Normandy Shores Golf Course. It was
Page 2
Normandy Shores Millage
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.
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 $47,305.
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 final millage be adopted first. This is accomplished by adopting a
Resolution which states the percent increase or decrease over the "Rolled-back" rate. Following
this, another Resolution which adopts the Normandy Shores District operating budget must be
approved. (See accompanying Agenda item R762 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 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 prioryearwas 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.
The operating expenditures to provide security services at the current service level to this district
is $157,184, a 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, $55,013, and the Normandy Shore taxing district is required
to fund $65%, or $102,171.
In addition to the $102,171 for security services in FY 2007/08, the taxing district needs to repay
$46,649 to the City of Miami Beach for the FY 2006/07 shortfall, for a total of $148,820 to be paid
Page 3
Normandy Shores Millage
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 $148,820 in property tax revenues by the
district.
On September 17, 2007, the Mayor and City Commission adopted Resolution 2007-26639 which
set the tentative ad valorem millage at 1.0363. The operating budget to provide security services
at the current service level required by this district and repay the City for the shortfall in FY
2006/07 is $203,833. The difference between the revenues which will be generated from ad-
valoremtax proceeds and the current service level budgetary requirement of the district must be
supplemented by a contribution from the General Fund in the amount of $55,013 or 35% of the
operating budget ($203,833) for the current service levels. The General Fund has funded this
difference 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 $47,305.
The final 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 $148,820.
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.
CONCLUSION
The City Commission, acting in its capacity as the Board of Directors of the District, should adopt
the attached Resolution which adopts the final millage.
JMG:KGB:JC
F:\obpi\$BUD\BUDDOC\BUDRESOS\08-RESOS\2nd Pub Hrg 09-26-071NS Millage Memo 2PH cm 08.doc
` --_ [A MIAMI BEACH
CITY OF MIAMI BEACH
NOTICE OF A SPECIAL
CITY COMMISSION MEETING
W ~ Ial Commission Meeting regarding the 2nd Proposed Budget Public Hearings for FY 2007/
°' NOTICE IS HEREBY given that a Spec' 26, 2007, commencing
2008 will be held by the Cdy Commission of the City of Miami Beach, Flonda, on Wednesday, Se .
mmisswn Chambers, 3rd floor, Cdy Ha11,1700 Convention Center Drive, MIamI Beach, Florida. `
~ at 5:00 P.M., in the Co
i
~ '; The s coed public hearing adopting the proposed millage rate and budget for FY 2007/2008 for the City of Miami Beach.
_ 5.'02 p.m.
The second public hearing adopting the proposed millage rate and budget for FY 2007/2008 for the Normandy Shores Loca
~ Government Neighborhood Improvement Distract.
In addition, the City Commission will be discussing other C'Ity related business at this meeting.
° Inquiries concerning this meeting should be directed to the Office of Budget and Performance Improvement at (305) 673-7510.
Robert E. Paroher, City Clerk
City of Miami Beach
al any decision made
Pursuant to Section 286.0105, Fla. State th~Y m tte~con~id tat i~bmee II 9 oa ~~ring, Isu~ch pePson must ensure that a
°' by the C'dy Commission with respect
verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to
.based. This nofice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or Irrelevant
Is not otherwise allowed by law.
evidence, nor does it authorize challenges or appea ns with disabilities, and/or
~ Int tars, information on access for Ipersoe contact (305) 604-2489
To request this material in accessible format, sign language ' ~ s nsored proceeding, p
any accommodation to review any document or participate in any city- po
O, (305~73.721g(fTY) five days in advance to initiate your request. TIY users may also call 711 (Florida Relay Service).
I Ad 114451