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2008-26898 ResoRESOLUTION NO. 2008-26898 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR {FY) 2008/09. 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 FY 2008/09 operating expenses; and WHEREAS, on September 17, 2008, pursuant to Section 200.065 of the Florida Statutes, 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 2008/09. 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 final operating budget for the District for FY 2008/09 as summarized herein and listed below: Revenues Ad Valorem Tax City's General Fund $ 98,981 53,297 Total $ 152,278 Expenses Security Service Maintenance $ 138,902 13,376 Total $ 152,278 PASSED and ADOPTED this 17th day of September, 2008. airpers n of a District ATTEST: ~' `'"`~ ~ Cti~ Secretary to the District Matti Herrera Bower Robert Parcher APPROVED AS TO ~~ OR EXECUT ON 14 DY ate COMMISSION ITEM SUMMARY Condensed Title: A resolution adopting the final operating budget for the Normandy Shores Local Government Neighborhood Improvement District for Fiscal Year (FY) 2008/09. Ke 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 Cit can address with re ards to ublic safet . 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, approve the final operating budget for the District for FY 2008/09 in the amount of $152,278? The operating expenditures to provide security services at the current service level to this district is $152,278, a 25% decrease from the FY 2007/08 amount of $203,833. In FY 2007/08, the budget included a $46,649 one-time repayment to the City for a property tax collection shortfall that occurred in FY 2006107. The FY 2007108 budget would have been $157,184 net of the one-time repayment. Therefore, the FY 2008/09 budget reflects a decrease of $4,906 or 3.1 percent from the FY 2007/08 budget for operations reflecting a savings in operating costs. The tentative ad valorem millage recommended by the Administration is 0.7227 mills to provide the current level of security required by this district. This tax levy will generate proceeds of $98,981.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 $53,297 or 35% of the total operating budget. The General Fund has funded this difference for each of the fifteen years since the District was established. The amount provided by the General Fund for this purpose in FY 2007/08 was $55,013. Board Recommendation Financial Information: Source of Amount Accour Funds: 1 $ 98,981 Normandy Sh District 2 53,297 General Fund Total $ 152,278 Financial Impact Summary: Citv Clerk f~ ~ /~ AGENDA STEM ~ ~~~ ~' 1 ~ ~! 'V 1 ~ I DATE v m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, vaww.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 17, 2008 SUBJECT: A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL OPERATING BUDGET FOR FISCAL YEAR (FY) 2008/09. Adopt the Resolution which establishes the final operating budget for the District for FY 2008/09 in the amount of $152,278. 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 2008/09 represents its fifteenth 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 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 capon 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 final millage for Normandy Shores District has been adopted (See accompanying Agenda Item R7B1 for details). FY 2008/09 Normandy Shores Budget September 17, 2008 Page 2 of 2 ANALYSIS The final operating budget for the District is as follows: Revenues Ad Valorem Tax $ 98,981 City's General Fund 53,297 Total $ 152,278 Expenses Security Service $ 138,902 Maintenance 13,376 Total $ 152,278 On September 8, 2008, the Mayor and City Commission adopted the tentative operating budget for the District in the amount of $152,278 and an operating millage of 0.7227. This tax levy will generate proceeds of $98,981. The total operating expenditures to provide the current service level to this district is $152,278 for FY 2008/09. The City of Miami Beach General Fund is required to provide 35% of the total operating expenditures ($53,297), and the City has funded the 35% for each of the fifteen years since the District was established. The amount provided by the General Fund for this purpose in FY 2007/08 was $55,013. The $152,278 in FY 2008/09 represents a $51,555 decrease (25%) from the FY 2007/08 budget of $203,833. In FY 2007/08, the budget included a $46,649 one-time repayment to the City for a property tax collection shortfall that occurred in FY 2006/07. The FY 2007/08 budget would have been $157,184 net of the one-time repayment. Therefore, the FY 2008109 budget reflects a decrease of $4,906 or 3.1 percent from the FY 2007/08 budget for operations reflecting a savings in operating costs. CONCLUSION The 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. JMG:KGB:JC~