R7F - Adopt Tentative Operating Budget for Fy26

Resolutions - R7 F

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 which establishes the tentative operating budget for the District for Fiscal Year (FY) 2026 in the amount of $343,000, subject to a second 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.

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In 2015, as part of a "clean up" Ordinance to repeal three other safe neighborhood districts that were no longer active, the Mayor and City Commission adopted Ordinance No. 2015-3928.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 rate 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 tentative millage rate for the District has been adopted (see accompanying Normandy Shores Local Government Neighborhood Improvement District Millage agenda item for details).

ANALYSIS

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

To provide the level of services requested by the District for FY 2026, an ad valorem millage rate of 0.7305 mills is proposed for FY 2026. This levy will 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. The millage rate proposed for FY 2026, combined with $2,000 in projected interest income, will fund the FY 2026 budget proposed for the District.

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 FY 2026 operating budget of $343,000 for the 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.

Attachment A – FY 2026 Proposed Normandy Shores Budget

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 Operating Budget-Normandy Shores Loc Gov. OMB

Previous Action (For City Clerk Use Only)