R7E - Adopt 0.7305 Mill Rate, 1.3% Increase

Resolutions - R7 E

COMMISSION MEMORANDUM

5:02 p.m. First Reading Public Hearing

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 authorizing the City Manager to transmit the following information to the Miami-Dade County Property Appraiser:

1) Tentatively Adopted Millage Rate for the Normandy Shores Neighborhood Improvement District for Fiscal Year (FY) 2026:

General Operating

0.7305 mills (0.0484 mills less than previous year)

2) The second public hearing to consider the Normandy Shores Neighborhood Improvement District operating millage rate and budget for FY 2026 shall be held on Tuesday, September 30, 2025, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3 rd Floor, Miami Beach, Florida 33139.

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 nd ) 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 District’s 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 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 property 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 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 millage and budget of its principal taxing authority, i.e., the City of Miami Beach.

It also requires that a tentative millage rate 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 rate. Following this, another Resolution which tentatively adopts the Normandy Shores District operating budget must be approved (see accompanying Normandy Shores Local Government Neighborhood Improvement District Budget agenda item for details).

Florida Statutes requires that 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

The operating millage 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 millage and budget of its principal taxing authority, i.e., the City of Miami Beach.

It also requires that a tentative millage rate 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 rate. Following this, another Resolution which tentatively adopts the Normandy Shores District operating budget must be approved (see accompanying Normandy Shores Local Government Neighborhood Improvement District Budget agenda item for details).

Florida Statutes requires that 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.

NORMANDY SHORES PROPERTY VALUES

On July 1, 2025, the City received the 2025 Certified Taxable Values from the Miami-Dade County Property Appraiser for the Normandy Shores Local Government Neighborhood Improvement District indicating that the overall taxable property values increased approximately $42.7 million, or 9.5%, from the 2024 Certified Taxable Values of $448.6 million to the 2025 Certified Taxable Values of $491.3 million, which is comprised of a $37.0 million, or 8.2%, increase in the District’s existing values and a $5.7 million increase in new construction values.

July 2024 Certified July 2025 Certified $ Change % Change

Property Values:

Existing Values $448,663,162 $485,635,244 $36,972,082 8.2%

New Construction - 5,686,518 5,686,518 100.0%

Total Normandy Shores $448,663,162 $491,321,762 $42,658,600 9.5%

PROPOSED MILLAGE & BUDGET

Based on the 2025 Certified Taxable Values for the Normandy Shores Local Government Neighborhood Improvement District, the ad valorem millage rate proposed for FY 2026 is 0.7305 mills. The millage rate proposed for FY 2026 is 0.0484 mills, or 6.2%, less than the millage rate adopted for FY 2025 of 0.7789 mills. The levy proposed would 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. and will fund, combined with $2,000 in projected interest income, the FY 2026 budget proposed for the District.

FY 2025 Adopted

FY 2026 Proposed

Inc / (Dec)

Normandy Shores Millage 0.7789 0.7305 (0.0484)

Property Tax Revenues $332,000 $341,000 $9,000

The Normandy Shores Local Government Neighborhood Improvement District budget proposed for FY 2026, as summarized below, is $343,000, which reflects an overall increase of $7,000, or 2.1%, from the adopted FY 2025 budget of $336,000. The increase is primarily attributed to increased costs for security guard services based on the service hours proposed and anticipated hourly rates.

Expenditures in FY 2026 Budget

$

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 Administrative Fees 19,000

Guardhouse Utilities (Electricity, Telephone, etc.) 6,100

Guardhouse Janitorial Services 4,500

Other Miscellaneous Operating Expenditures

Total

$343,000

TRUTH-IN-MILLAGE PROCESS

Florida Statute 200.065, entitled “Method of Fixing Millage,” establishes specific guidelines that must be used by all local government entities, including dependent taxing districts like the Normandy Shores Local Government Neighborhood Improvement District, in setting its millage (property tax) rates. Like its principal taxing authority, the City of Miami Beach, the Normandy Shores Local Government Neighborhood Improvement District is also required to advise the Miami-Dade County Property Appraiser within 35 days from receipt of the “Certification of Taxable Value” (received July 1, 2025) of the 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 budget for FY 2026.

Maximum Millage Determination

After setting the proposed operating millage rate, the Mayor and City Commission, acting in its capacity as the Board of Directors of the Normandy Shores Local Government Neighborhood Improvement District, may, at any time prior to final adoption, lower the millage rate proposed. However, any increase above the millage rate proposed for FY 2026 of 0.7305 mills, if adopted, would require an expensive mailing and advertising process to each property owner in the District. Therefore, this proposed millage rate is viewed as the ceiling.

Adoption of the millage rate proposed for FY 2026 of 0.7305 mills for the Normandy Shores Local Government Neighborhood Improvement District, therefore, requires a majority approval (4 of 7 votes) by the Mayor and City Commission per the State of Florida’s Truth-in-Millage (TRIM) requirements.

It must be noted that, in accordance with Florida Statutes, there is an operating cap of 10 mills which cannot be exceeded without voter approval. Combining both millage rates from the dependent taxing district (0.7305 mills) and its principal taxing authority (5.8702 mills) totals 6.6007 mills, which is 3.3993 mills less than the statutory cap of 10 mills.

Second Public Hearing

The second public hearing to adopt the final FY 2026 operating millage rate and budget for the Normandy Shores Local Government Neighborhood Improvement District must be held no later than 100 days, or earlier than 97 days, from the start of the TRIM calendar (July 1 st ). In addition, it must be advertised no later than 15 days after the first public hearing and must be held two (2) to five (5) days after the advertisement appears in the newspaper.

For this reason, the second public hearing is recommended to be held on Tuesday, September 30, 2025, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3 rd Floor, Miami Beach, Florida 33139.

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.gov/city-hall/city-clerk/meeting-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 tentative millage rate of 0.7305 mills for FY 2026 for the Normandy Shores Local Government Neighborhood Improvement District, subject to a second and final public hearing scheduled on Tuesday, September 30, 2025, at 5:02 p.m., in the City Commission Chambers at 1700 Convention Center Drive, 3 rd Floor, Miami Beach, Florida 33139.

EC/JDG/TOS/RA

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Management and Budget

Sponsor(s)

Co-sponsor(s)

Condensed Title

5:02 p.m. 1st Rdg PH, Adopt Tentative Ad Valorem Millage-Normandy Shores Loc Gov. OMB

Previous Action (For City Clerk Use Only)