TITLE
RESOLUTION CALLING SPECIAL ELECTION IN MIAMI-DADE COUNTY, FLORIDA, TO BE HELD ON FEBRUARY 5, 2002, FOR THE PURPOSE OF SUBMITTING TO THE ELECTORS RESIDING WITHIN THE BOUNDARIES OF A PROPOSED NEW MUNICIPALITY IN THE AREA OF PALMETTO BAY THE QUESTION OF WHETHER THE BOARD OF COUNTY COMMISSIONERS SHOULD BE AUTHORIZED TO CREATE A NEW MUNICIPALITY IN THE AREA OF PALMETTO BAY PURSUANT TO SECTION 5.05 OF THE MIAMI-DADE COUNTY HOME RULE CHARTER

BODY
WHEREAS, Section 5.05 of the Home Rule Charter establishes the framework by which new municipalities may be created in Miami-Dade County; and
WHEREAS, the Palmetto Bay Municipal Advisory Committee (the "Committee"), a group of Palmetto Bay area residents appointed by the Board of County Commissioners (the "Board") to address the issues which have impeded the area's incorporation efforts thus far, has submitted its Palmetto Bay Area Municipal Advisory Committee report and resolution (attached hereto and incorporated herein by reference as Composite Exhibit A) which offer acceptable solutions to the issues relating to incorporation which concern the Board; and
WHEREAS, the Palmetto Bay Area Municipal Advisory Committee report provides in a conceptual agreement that the new municipality will, among other things, contract with the Miami-Dade Police Department for patrol police services for an initial period of three years, and
WHEREAS, the Palmetto Bay Area Municipal Advisory Committee understands and acknowledges that the special conditions for incorporation include remaining a part of the Miami-Dade Fire Rescue District, the Miami-Dade Library System, the Miami-Dade Solid Waste Collection System, contributing to a municipal services trust fund, as well as contracting and paying for specialized polices services from the Miami-Dade County Police Department; and
WHEREAS, the Palmetto Bay Area Municipal Advisory Committee understands and acknowledges that payment for contracted specialized police services will continue from year-to-year and the costs upon which such payments are based will be recalculated every three years and will be determined based upon the municipality's utilization over the previous three years; and
WHEREAS, the Palmetto Bay Area Municipal Advisory Committee understands and acknowledges that payment for the specialized police services will come from the municipality's millage revenue or other available municipal revenues; and that payment of specialized police services shall remain so long as any of the special conditions for incorporation exist; and
WHEREAS, the Board is desirous of calling a special election resolution in reliance upon the representations contained in the Report and Resolution of the Palmetto Bay Area Municipal Advisory Committee and the statements contained in this resolution,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:
Section 1. The matters set for above are hereby incorporated by reference in this Resolution.
Section 2. A special Election is hereby called and shall be held in Miami-Dade County, Florida, on Tuesday, February 5, 2002, for the purpose of submitting to the qualified electors residing within the boundaries of a proposed new municipality in the area of Palmetto Bay the question of whether or not the Board of County Commissioners should be authorized to create a new municipality in the area of Palmetto Bay pursuant to Section 5.05 of the Miami-Dade Home Rule Charter. The boundaries of the proposed new municipality are as follows:
Beginning at the centerline of SW 136th street and the centerline of US 1, the point of beginning, thence travel south southwesterly along the centerline of US 1 to the centerline of SW 160th street, thence travel west to the centerline of south bound US1, thence travel south southwesterly along the said centerline of south bound US1 to the centerline of SW 184th street, thence travel east to the high water mark of Biscayne Bay, thence travel northerly along the western shore of Biscayne Bay following the high water mark to the intersection with the boundary of the City of Coral Gables, thence meander north along the southern and western boundaries of the City of Coral Gables to the centerline of SW 136th street, thence travel west along the centerline of SW 136th street to the point of beginning
A sketch of the boundaries of the proposed new municipality is attached to this Resolution as Exhibit B.
Section 3. The special election is called in reliance upon the representations of the Palmetto Bay Area Municipal Advisory Committee contained in its report adopted by resolution dated August 29, 2001 (Composite Exhibit A).
Section 4. Notice of such a special election shall be published in accordance with Section 100.342, Florida Statutes (2000).
Section 5. The results of such special election shall be determined by a majority of the qualified electors residing within the boundaries of a proposed new municipality in the area of Palmetto Bay voting upon the question. The polls at such special election shall be open from 7:00 a.m. until 7:00 p.m. on the day of such special election. All qualified electors residing within the boundaries of a proposed new municipality in the area of Palmetto Bay, Miami-Dade County, Florida, shall be entitled to vote at said special election. The County registration books shall remain open at the Office of the Miami-Dade County Supervisor of Elections until thirty (30) days prior to the date of such special election, at which time the registration books will be closed in accordance with the provisions of the general election laws. Votomatics shall be used in such special election, and the question shall appear on a votomatic in substantially the following form:
PROPOSED NEW MUNICIPALITY: PALMETTO BAY
SHALL THE MIAMI-DADE COUNTY BOARD OF COUNTY COMMISSIONERS BE AUTHORIZED TO CREATE A NEW MUNICIPALITY IN THE AREA OF PALMETTO BAY WITH THE FOLLOWING BOUNDARIES?

NORTHERN BOUNDARY:
SW 136 Street and the City of Coral Gables

EASTERN BOUNDARY:
Biscayne Bay

SOUTHERN BOUNDARY:
SW 184 Street

WESTERN BOUNDARY:
South Dixie Highway
YES
*
NO
*

Section 6. Such question shall appear on the votomatic ballot as a separate question or proposal. Those electors desiring to adopt or approve such proposal shall be instructed to punch out the black dot on the ballot card immediately opposite the number on the ballot page designated as "YES". Those qualified electors desiring to reject or disapprove the question shall be instructed to punch out the black dot on the ballot card immediately opposite the number on the ballot page designated "NO".
Section 7. Absentee paper ballots may be used by qualified electors residing within the boundaries of a proposed new municipality in the area of Palmetto Bay for voting on this question at said special election. The form of such absentee ballot shall be in accordance with the requirements prescribed by the general election laws, and shall have printed thereon the
question or proposal hereinabove set forth, with a proper place for voting either "YES" or "NO" following the statement of the question or proposal aforesaid.
Section 8. A sample ballot showing the manner in which the question or proposal aforesaid will appear on the votomatic at this special election shall be published and provided in accordance with the applicable provisions of the general election laws.
Section 9. This special election on the proposal aforesaid shall be held and conducted in accordance with applicable provisions of the General laws relating to special elections and the provisions of the Miami-Dade County Home Rule Charter. The County Manager, the Finance Director, the Supervisor of Elections and the Clerk of The County Commission are hereby authorized and directed to take all appropriate actions necessary to carry into effect and accomplish the provisions of this resolution. The special election shall be a nonpartisan election. Election Inspections Boards, inspectors and clerks to serve as elections officials in connection with this special election shall be appointed in accordance with the provisions of the general election laws.
Section 10. This special election shall be canvassed by the County Canvassing Board, in accordance with the provisions of Section 2.07 of the Home Rule Charter.

HEADER
RECOMMENDATION

It is recommended that the Board approve the attached resolution calling for a special election for the residents of Palmetto Bay to determine whether the area of Palmetto Bay should be incorporated subject to the following conditions:

1. The Palmetto Bay municipal charter must incorporate the terms and conditions outlined in the conceptual agreement between the Palmetto Bay Area Municipal Advisory Committee (PBAMAC) and Miami-Dade County (see attachment 1). This agreement requires the proposed municipality to remain a part of the Miami-Dade Fire�Rescue District, Miami-Dade Library System, and the County�s solid waste collection service area. It also requires the prospective city to contract and pay for specialized police services as long as any of the special conditions outlined in the conceptual agreement for incorporation are in effect and contract for local police patrol services for an initial three year period. This agreement was approved unanimously by the PBAMAC.

2. A mandated annual payment to the Municipal Service Trust Fund (MSTF), initially valued at the equivalent of one mill of property tax revenues and, then, adjusted annually as outlined in the conceptual agreement approved by the PBAMAC, will be required.

Given recent developments regarding the obligations accepted by Miami Lakes as part of its incorporation process, the Board of County Commissioners� resolution calling for a special election by Palmetto Bay residents regarding the incorporation of their community restates the PBAMAC�s commitment to the County regarding the special conditions under which the incorporation can proceed. The obligation to contract with the Miami-Dade Police Department and pay for specialized police services as long as any of the special conditions outlined in the conceptual agreement for incorporation are in effect is specifically addressed.


3. That all decisions pertaining to utilities and county governmental facilities whose continued operation and future development are of countywide significance be consistent with the Miami-Dade Comprehensive Development Master Plan.

The terms negotiated with Palmetto Bay are consistent with those negotiated with the Miami Lakes Area Municipal Advisory Committee. The differences between the two agreements are highlighted under the Palmetto Bay Agreement section of this report.

What we have agreed to thus far, are conceptual terms. Over the next several weeks we will be developing specific conditional municipal charter and contractual language to effectuate our accords and ensure all incorporation agreements are adhered to.

BACKGROUND

On November 6, 1995, the Alliance of Palmetto South Homeowners Association petitioned to incorporate an area to be called Palmetto Bay. County staff reviewed the application and recommended denial because the proposal exceeded the fiscal equity guidelines and divided the Perrine Census Designated Place. On June 3, 1996, the Boundaries Commission recommended denial of the proposed incorporation. On July 24, 1996, the Planning Advisory Board recommended approval of the proposed incorporation. On September 17, 1996, the Board of County Commissioners (BCC) held and concluded a public hearing regarding the subject incorporation, at this meeting the BCC deferred the proposed incorporation. Subsequent to the public hearings of the Boundaries Commission, Planning Advisory Board and the County Commission, the Census Designated Places boundaries were modified as a result of the 2000 Census and the proposed incorporation no longer splits a Census Designated Place.

On April 12, 1999, then County Manager, Merrett Stierheim, sent a report to the Board of County Commissioners on the incorporation issue. In that report he presented a series of incorporation policies that taken collectively represented the best approach to managing incorporations and the fairest process for all individuals impacted by future incorporations.

The recommended policies required that new cities be allowed to proceed only under the following conditions: first, the new city had to remain in the Miami-Dade Fire and Rescue District, the Miami-Dade Public Library System, and the County solid waste collection system, and continue to receive and pay for specialized law enforcement services from the Miami-Dade Police Department. Second, the new city�s boundaries had to be drawn to ensure the area was revenue neutral or the new city had to agree to mitigate the adverse fiscal impact caused by the new incorporation on the remaining unincorporated area.

On May 20, 2000, the Board of County Commissioners approved a resolution sponsored by Commissioner Katy Sorenson creating the PBAMAC. Since it was anticipated that the PBAMAC�s advisory report would not be completed within one year from its creation, on April 21, 2001, the Board approved an ordinance, sponsored by Commissioner Katy Sorenson, extending the Committee�s term pursuant to Section 2-11.36.1 of the Code of Miami-Dade County that requires that committees that will exist for a year or greater be created by ordinance. The PBAMAC was charged with reviewing incorporation related issues and concerns, and addressing the manner in which those concerns could be alleviated in the event Palmetto Bay was incorporated as a new municipality.

These policy recommendations and others were included in the Incorporation and Annexation Report and Policy Recommendations I transmitted to the Board July 12, 2001.

THE PALMETTO BAY AGREEMENT

As was the case with Miami Lakes, the Palmetto Bay conceptual agreement addresses virtually all of the recommended policies on future incorporation. The resolution considered by the PBAMAC calls for the new Village of Palmetto Bay to remain in the Miami-Dade Fire-Rescue District, the Miami-Dade Public Library System, the County�s solid waste collection system and to contract with the County to continue to receive and pay for specialized law enforcement services from the Miami-Dade Police Department.

The cities created in the 1990s, Pinecrest, Sunny Isles Beach, Aventura, and Key Biscayne have opted not to provide specialized police services, however, they are not paying for these services directly. The cost of these services has been added to the countywide budget, thereby requiring all county residents to absorb the cost. If this trend were allowed to continue, the remaining countywide millage capacity would be exhausted well before the rest of UMSA incorporates.

The cost of the specialized police services provided to Palmetto Bay will be paid so long as any of the special conditions for incorporation exist. Modifications to these special conditions would require a charter change, which must be approved by two-thirds vote of the County Commission. The costs of the specialized police services will be recalculated every three years and will be determined based upon the municipality�s utilization rate over the previous three years (which will include a base cost for service availability) minus the Palmetto Bay residents� contribution for specialized police costs through the countywide taxes.

Additionally, the conceptual agreement calls for the Village to continue to receive patrol services from the Miami-Dade Police Department for an initial three-year period. This is important to the region since it helps ensure the County has a large enough pool of officers to respond to major incidents or emergencies while the Village will benefit from having a large, well established, and highly professional police force. As is the case in the agreement with the Town of Miami Lakes, the Miami-Dade Police Department will be expected to be every bit as responsive and efficient a service provider to the Village as a small town police force would be. The Village will determine the desired contractual service level and will direct policing activities within the boundaries of Palmetto Bay.

Prior to any contract termination, the services of an independent mediator will be sought to attempt to resolve any disputes in hopes of avoiding a contract termination. After the initial contract period expires, the contract will be renewed for additional contract periods as agreed to between the Village and the County based on the abovementioned parameters.

The PBAMAC conceptual agreement calls for the Village to make a mitigation payment of one mill of municipal property tax revenues, after incorporation, to the County into a Municipal Service Trust Fund (MSTF). The amount to be paid into the MSTF will be set at a dollar value during the first year of operation of the Village of Palmetto Bay. This dollar value will be the equivalent of one mill of property tax revenue based on the preliminary tax roll for the Village of Palmetto Bay for that year. That amount (which is approximately $1.578 million) will be adjusted annually based on the Consumer Price Index (CPI) for the Miami area, all categories, but shall otherwise not be subject to any increases.

The mitigation amount paid by Palmetto Bay will not exceed the millage equivalent paid by the Town of Miami Lakes the prior year times the tax roll for Palmetto Bay for the current year.

The mitigation payment for Palmetto Bay will be reduced if any sub-area is removed from the proposed incorporation area by mandate of the Board of County Commissioners. The amount of the reduction will be the net surplus. If the Board of County Commissioners determines that these areas should be removed through the incorporation of language in the Palmetto Bay charter approving the de-annexation of the areas and their subsequent annexation to Coral Gables, charter language should also specify that as part of the annexation Coral Gables must agree to allow the County to retain franchise fees and utility taxes derived from these areas as if Coral Gables was annexing them from the County.

If the Burger King property located at 17777 Old Cutler Road becomes tax-exempt property, mitigation will be reduced by 40 percent of the value of the taxes lost by the municipality.

The MSTF, to which the Town of Miami Lakes also contributes, will help maintain the police and other services in the remaining UMSA (including neighboring areas) while providing for technical and professional assistance and support from the County to the Village. Subject only to the abovementioned criteria and significant changes in the economic or geographic composition of UMSA, the mitigation payment is to be made in perpetuity.

The mitigation payment does not represent the full difference between the Palmetto Bay area�s revenues and expenses. The required mitigation payment will still leave Palmetto Bay revenues to invest in service enhancements and establish a municipal government.

Also, like the agreement with Miami Lakes, we agreed to grant the Village favored nation status meaning that if the County approves any future incorporation of a donor area that is less restrictive than the Village�s conceptual agreement, the Village agreement will be modified accordingly.

Staff was directed to study the incorporation proposal with the following as the municipality�s boundaries:

On the north, SW 136 Street and the City of Coral Gables;
On the south, SW 184 Street;
On the west, The right-of-way of the former FEC railroad; (the MAC changed this western boundary to South Dixie Highway) and,
On the east, Biscayne Bay.

Therefore, the body of this report incorporates staff�s findings based upon the boundaries identified in the resolution.

BOUNDARIES COMMISSION RECOMMENDATION

The Miami-Dade County Boundaries Commission held an advertised public meeting on June 3, 1996. They reviewed the subject application and recommended denial (see attachment 2).

PLANNING ADVISORY BOARD RECOMMENDATION

The Miami-Dade County Planning Advisory Board held an advertised public hearing on June 24, 1996. They reviewed the subject application and recommended approval (see attachment 3).

LEGAL PROCESS AND TIMETABLE

The companion resolution calls for a vote of the residents of the Palmetto Bay incorporation area on January 15, 2002. If there is an affirmative vote of the residents, the Board must then appoint a charter committee to create the Village�s charter. The Village charter must incorporate all the terms and conditions to be approved in the PBAMAC resolution. Failure to include these terms in the proposed municipal charter will significantly reduce the County�s ability to enforce the terms of the conceptual agreement. The municipal charter must also direct the new village officials to enter into a binding contract with the County within 45 days of the election of a village council to accept these contractual terms and conditions.

If the above terms are not included in the municipal charter, the Board is not compelled to proceed with the Palmetto Bay charter vote and the incorporation process can then terminate.

Municipal elections will be called for the middle part of the year 2002. Once the Village is constituted, the Village and the County will enter into a transition agreement for the allocation of the Village�s revenues for the balance of fiscal year 2001-02, as well as the binding contract regarding the above outlined incorporation terms and agreements.

INCORPORATION REPORT

The County Code, Section 20-23(b)(3), contains a set of guidelines that the Boundaries Commission, the Planning Advisory Board, and the County Commission are to consider in developing their recommendations and actions on incorporation. These guidelines were developed with the intent of assuring both that the proposed new city is fiscally viable and that the potential negative impact of the creation of the new city on the remaining unincorporated municipal service area (UMSA) is minimized.

At its supplementary public hearing on the incorporation petition, the Board of County Commissioners should review the application in terms of the guidelines.

This report provides the information required by the Miami-Dade County Code.

Summary of Petition

The petitioners have stated that they wish to form a new municipality for the following reasons:

- to improve public safety;
- to improve local parks and recreation services;
- to improve public area maintenance;
- to improve other basic public services;
- to improve the process of development regulation; and
- to provide for enhanced public participation in local government.

Profile of the Area

The estimated 2000 population of the area is 24,469 persons. Table 1 reports selected demographic and economic characteristics of the area. Overall, compared to the County as a whole, the residents of Palmetto Bay are more affluent and more likely to be white, not of Hispanic origin. There are very few Black, non-Hispanic residents. Housing in the area is more likely to be owner-occupied and likely to be single unit detached.

Table 1
Social and Economic Characteristics
The Palmetto Bay Area and Miami-Dade County
Palmetto Bay Miami-Dade
Population Characteristics, 2000
Total Population 24,469 2,253,362
Percent Hispanic Origin 27.3 57.3
Percent White, Not Hispanic 84.4 20.7
Percent Black, Not Hispanic 7.7 19.0
Percent Other Not Hispanic 2.4 3.0
Income *1990
Median household income $64,114.23 $26,909.00
Per-capita income $25,998.16 $13,686.00
Housing *1990
Percent Owner occupied 83.5 57.4
Percent Single unit detached 84.8 38.9
Source: U.S. Census Bureau, Census 2000 Redistricting (Public Law 94-171) Summary
File, Table PL1. Miami-Dade County, Department of Planning and Zoning, 2001.
*Note: The income and housing figures are based on 1990 census tract data.

Development Profile of the Area

The proposal encompasses an area of approximately 9.9 square miles. Table 2 reports the 1998 land use profile of the area.

Table 2
1998 Land Uses
Palmetto Bay Miami-Dade
Land Use % %
Residential 45.1 18.2
Commercial/Office 3.6 2.5
Industrial/Utilities 18.0 18.3
Parks/Recreation* 21.6 15.1
Institutional 5.6 2.4
Agricultural 1.3 15.4
Vacant/Expressways 4.8 28.1

GUIDELINES ANALYSIS

1. The Suitability of the Proposed Boundaries to Provide for a Municipal Community that is Both Cohesive and Inclusive.

A. Does the area not divide a Census Designated Place to the extent possible?

Census designated places (CDPs) are areas that are identified locally and recognized by the Census Bureau for the purpose of reporting data. They include all existing cities and certain unincorporated areas that are defined, in cooperation with local agencies, as recognizable and relatively cohesive communities.

The Palmetto Bay area is comprised of land inside two CDPs � The Cutler CDP and the East Perrine CDP. The combined boundaries of these two CDPs define the boundaries of the Palmetto Bay area.

B. Are there adjacent areas of ethnic minority or lower income residents in which a majority of residents have petitioned to be included in the incorporation?

No.

C. Does the area have contiguity and not create any unincorporated enclave areas?

The area is contiguous and does not create an unincorporated enclave.

D. Does the area have natural or built barriers as boundaries, to the extent feasible?

The area is bounded on the west by South Dixie Highway. The north and south boundaries are streets. The eastern boundary is the Biscayne Bay.

These boundaries are built or natural.

E. Does the area include a mixture of residential and non-residential land uses?

Planned Land Uses: The 2005-2015 Land Use Plan Map of the County shows the area to be predominantly in the "Residential Estate Density" land use category. A pocket of �Residential Low Density� land use category is located on the southwestern portion of the area. A corridor of �Business and Office� land use category is located along South Dixie Highway on the western boundary of the area.

According to the CDMP the residential densities permitted in the "Residential Estate Density" category is up to 2.5 dwelling units per acre and in the �Residential Low Density� category is up to 6 dwelling units per acre.

Existing Land Uses: The Existing Land Use Map (1998) of the County shows the area to be predominantly residential with a business and office corridor along South Dixie Highway.

2. Is there evidence of support of area residents and property owners sufficient to warrant the costs of balloting of electors?

As required by the resolution establishing the PBAMAC, two public hearing were held at Southwood Middle School on August 23 and 27, 2001, to discuss the incorporation of Palmetto Bay. The meetings were well attended and although there was significant opposition to contracting with the Police Department and paying a mitigation fee, the great majority of the people attending the meetings remained in support of incorporation.

3. What are the existing and projected property tax costs for municipal-level services to the average homeowner in the area as currently unincorporated and as incorporated as a comparable Miami-Dade County city with a similar per-capita property tax base?


Municipal Revenue

Property Tax Revenue Based on Tax Roll & Millage $3,861,944
Franchise Fees Allocated based on tax roll/population $793,811
FPL Property Adjustment ($390,321)
Sales Tax Based on $59 per person $1,470,457
Utility Taxes Allocated based on tax roll/population $2,002,635
Communication Tax Allocated based on tax roll/population $1,450,640
Alcoholic Beverage License Based on $0.22 per person $5,483
Occupational License Based on $3.23 per person $80,501
Police Fees Based on $3.10 per person $77,261
Fines and Forfeitures Based on $7.19 per person $179,196
Interest Based on 1.46% of all revenues $117,239
Miscellaneous Revenues Based on $0.75 per person $18,692

State Revenue Sharing Based on $7.75 per person $188,271
Gasoline Taxes Per Interlocal Agreement $610,000
Grants $100,000

Estimated Municipal Revenue $10,565,809



Cost of Providing Municipal Services

Police Local Patrol $3,900,000
Overtime $195,000
Specialized Police $400,000
Total Police $4,495,000

Parks and Recreation $885,000

Public Works
Public Works $630,000
QNIP Payment $100,000
Total Public Works $730,000

General Government
Building and Planning $116,000
Village Council $63,000
Village Manager $295,000
Village Clerk $160,000
Finance $205,000
Village Attorney $180,000
Other General Government $880,000
Total General Government $1,899,000

Mitigation $1,578,236
Contingency $978,573

Cost of Providing Services $10,565,809

Revenues minus Expenses $0


4. Are there any suitable alternatives to incorporation, including annexation to an existing municipality?

This area could be annexed by Pinecrest, however, Pinecrest has not expressed an interest in annexing the Palmetto Bay area.

5. Is the area totally contained in the Urban Development Boundary depicted on the future land use map of the Dade County Comprehensive Development Master Plan?

The area is totally contained inside the Urban Development Boundary of the County�s CDMP.

6. What is the impact of the proposal on the revenue base of the unincorporated area and on the ability of the County to effectively and efficiently provide services to adjacent remaining unincorporated areas?

The analysis was conducted using the appropriate allocation methodologies to estimate the revenues and expenses for a given area. Due to the fact that the Old Cutler area and the Kings Bay area had at one point expressed a desire not to be included in Palmetto Bay, the analysis shows those areas separately in order to determine the financial impact of their inclusion.

The Old Cutler and Kings Bay areas have significantly higher per capita taxable values than the rest of Palmetto Bay.

It is estimated that the incorporation of Palmetto Bay will result in the loss of approximately $9.7 million in UMSA revenues and the reduction of $5.9 million in UMSA expenses, for a net loss of approximately $3.7 million.

Based on the terms of the conceptual agreement, Palmetto Bay will contribute the equivalent of one mill or $1.578 million to a Municipal Services Trust Fund (MSTF) to help maintain services in the unincorporated area. This amount would grow annually based on the Consumer Price Index.

The amount is based on Palmetto Bay�s requirements to operate its municipal government and provide some service improvements to its residents. It is also consistent with the level contributed by Miami Lakes, a municipality that has a very similar profile in terms of population and tax base.

Therefore, the impact of the incorporation to the UMSA budget will be an adverse fiscal mpact of about $2.1 million per year.
UMSA REVENUE AND EXPENSE ESTIMATE
Based on FY 01-02 Budget Assumptions Base Old Cutler Kings Bay Total

2000 Taxable Property Rolls $1,599,151,225 $23,940,000 $38,210,000 $1,661,301,225
2000 Census Population 23,832 200 437 24,469
2001 -02 UMSA Millage 2.447 2.447 2.447 2.447
Police Calls for Service for 2000 19,296 82 180 19,558
Cost per Police Call $197 $197 $197 $197
Cost per Lane Mile $1,382 $1,382 $1,382 $1,382

Per Capita Taxable Value $65,847 $119,700 $87,437 $66,657


Gross Revenue Loss to UMSA

Property Tax Revenue Based on Tax Roll & Millage $3,717,467 $55,652 $88,825 $3,861,944
Franchise Fees Allocated based on tax roll/population $767,576 $9,574 $16,661 $793,811
FPL Property Adjustment ($390,321) ($390,321)
Sales Tax Based on $59 per person $1,432,874 $11,800 $25,783 $1,470,457
Utility Taxes Allocated based on tax roll/population $1,936,447 $24,154 $42,034 $2,002,635
Communication Tax Allocated based on tax roll/population $1,402,695 $17,497 $30,448 $1,450,640
Alcoholic Beverage License Based on $0.22 per person $5,343 $44 $96 $5,483
Occupational License Based on $3.23 per person $78,444 $646 $1,412 $80,501
Police Fees Based on $3.10 per person $75,287 $620 $1,355 $77,261
Fines and Forfetuires Based on $7.19 per person $174,616 $1,438 $3,142 $179,196
Interest Based on 1.23% of all revenues $113,165 $1,494 $2,580 $117,239
Miscellaneous Revenues Based on $0.75 per person $18,215 $150 $328 $18,692

Gross Revenue Loss to UMSA $9,331,807 $123,069 $212,663 $9,667,539

Cost of Providing UMSA Services

Police Police calls times cost per call $3,801,312 $16,154 $35,460 $3,852,926
Parks and Recreation Dept Based on cost of park $327,000 $0 $0 $327,000
Public Works
Lanes miles times cost per lane mile $511,340 $1,380 $3,450 $516,170

Planning, Team Metro and others Direct cost times 9.3% $431,488 $1,631 $3,619 $436,737
Capital - Debt payment and pay-as Direct cost times 11.7% $542,839 $2,051 $4,552 $549,443
Policy Formulation/Internal Support Direct cost times 5.3% $245,902 $929 $2,062 $248,893

Cost of Providing UMSA Services $5,859,880 $22,145 $49,143 $5,931,169

Net Budget Loss to UMSA $3,471,927 $100,923 $163,520 $3,736,369
It is important to point out that these estimates are based on an allocation of FY 2001-02 revenues and expenses and they do not reflect the budgetary impact of the September 11, 2001 events. As of October 25, 2001, the best estimates indicate that the Sales Tax related revenues for FY 2001-02 will drop by about 7% from the budgeted numbers, however, there is no long-term economic assessment available to us at this point to reflect an adjustment in the municipal revenues due to this event.

7. Potential Revenue Sources and Facilities to be made available to the proposed municipality upon incorporation.

As outlined in the table above, all of the eligible municipal revenues will be available to the Palmetto Bay area. The only facilities that will be made available to Palmetto Bay are local parks within the boundaries of the proposed new municipality and they include Coral Reef Park, Perrine Park and Perrine West Side Park.

These parks will be transferred to Palmetto Bay contingent upon UMSA residents being able to continue to utilize the park and not be required to pay fees for services provided at the park.

8. Financial impacts of the incorporation on the remaining unincorporated areas of Miami-Dade County. Does the proposed incorporation fall between $20,000 and $48,000 per capita taxable value?

As discussed in Section 5, the financial impact to UMSA from the incorporation of Palmetto Bay is approximately $2.1 million. The per capita taxable value for Palmetto Bay is approximately $66,700. If the Old Cutler and Kings Bay areas are not included, this drops to approximately $65,800.

9. Any other factor that arises by virtue of any special or unique circumstances of a given area.

There are no unique circumstances arising from the incorporation of Palmetto Bay.

10. Current Service Level Information

Police Services

Background:

The proposed municipality of Palmetto Bay encompasses an area of approximately 8.6 square miles. The population estimate, based on 2000 census figures, is approximately 24,469.


Factors For Consideration:

Calls for Service: The Cutler Ridge Police District is comprised of 786 grids. The proposed incorporation area is made up of 36 grids. The proposed municipality�s area represents approximately 4.6 percent of the area patrolled by the Cutler Ridge District. The below figures represent calls to the entire district for service and the proposed incorporation area:

Palmetto Bay Incorporation Area Cutler Ridge District

1998 1999 2000 1998 1999 2000

20,141 19,558 22,345 179,839 169,397 188,135

Based on the aforementioned figures for calendar years 98, 99, and 00, the Palmetto Bay area represents 11.2, 11.5, and 11.9 percent, respectively, of the service demands for the Cutler Ridge District.

Types of Calls: Of the 2000 calls for service in the proposed area of incorporation, 7,944 were two-officer type calls. This means that two officers had to respond for officer-safety reasons, placing a limitation on available manpower to deal with other policing concerns within the area.

Base Staffing: The proposed area of incorporation represents approximately 11.5 percent of the total calls for service for the district. Based on this percentage alone, minimum staffing requirements for the area would be 22 officers. This staffing level does not account for supervisory or investigative concerns. The following represents minimum staffing levels needed to service to the area, providing for viable response times, supervisory, officer safety, and relief concerns:

Sergeants** 5
Officers 22
PSA 3
Detectives 4
Community Oriented Policing (COPs) 5
TOTAL 39

SHIFT CONFIGURATION*

Day Shift
Afternoon Shift Midnight Shift
Two Sergeants** Two Sergeants** One Sergeant
Eight Officers Eight Officers Six Officers
Two GIU Detectives Two GIU Detectives
One PSA Two PSAs
Two COPs Officers Three COPs Officers
* Varied hours
** The second sergeant serves as an administrative, investigative, and relief supervisor

Note: This shift configuration calls for officers on each shift to have different days off to allow for relief coverage. There would not actually be seven officers on any given day providing road patrol coverage.

The above minimum staffing configurations do not reflect clerical requirements, equipment, or specialized service concerns. They represent minimum staffing for the area based on size (square miles), population density, and calls for service.

Fire-Rescue Services

Primary Fire-Rescue service is provided from the following stations:

? Station 50 � 9798 Hibiscus Drive
? 1 Advanced Life Support (ALS) rescue, 3 paramedics
? 1 ALS Engine, 4 firefighters, 2 paramedics
? Station 4 � 9201 SW 152 St
? 1 Engine, four people minimum
? 1 ALS Rescue, 3 people minimum
? Station 23 � 7825 SW 104 St.
? 1 65� Aerial, 4 people minimum EMT level
? 1 ALS Rescue, 3 people
? Station 34 � 10850 SW 211 St.
? 1 50� Telesquirt, 4 people
? 1 ALS Rescue, 3 people
? 1 � 100� platform
? Station 49 � 10850 SW 57 Avenue
? 1 ALS Rescue, 3 people

The alarm volume in calendar year 2000 was 1,668 alarms and is consistent with the prior year�s number. The department average for calendar year 2000 was $13,000 per structure fire incident.

Travel time for reported life threatening alarms and building fires averaged just over 5 minutes in calendar year 2000. The average for the department was 5.5 minutes for the same period.

It is difficult to fairly and perfectly attribute costs of a regional service to a specific area, especially when the services of the whole region are at the disposal of any one area on an as-needed basis.

Incorporation will have no impact on the Fire-Rescue District since the future municipality of Palmetto Bay will remain in the district. The PBAMAC has addressed this issue in its conceptual agreement. If the Board of County Commissioners approves the conceptual agreement, this condition will be included in its municipal charter.

Although incorporation will not have an effect on the Fire District, if any subarea leaves Palmetto Bay for Coral Gables, that action will impact the Fire District. For example, the Old Cutler Road area contributes approximately $60K per year and the Kings Bay�s contribution is approximately $100K per year. However, the loss of the service areas will not result in a reduction in expenses.

Community and Economic Development

Relative to the federal Community Development Block Grant Program (CDBG), the incorporation of this area will not result in a city with a population of 50,000 or more, its creation would not directly have an adverse impact on the amount of funding received for this program from the United States Housing and Urban Development (USHUD). However, once created, the new municipality would be given the option to remain or withdraw from participating in the County�s CDBG program.

Should the newly incorporated municipality decide to withdraw from the County�s program, the CDBG funding based primarily on the number of low and moderate income person would then flow to the State of Florida small cities CDBG program.

Based on the 2000 census, the estimated potential loss of USHUD CDBG would be approximately $50 per each low and moderate-income person in the newly created city.

Solid Waste Collection

Section 1.01A(9) of the Miami-Dade County Home Rule Charter provides the County with the authority to provide and regulate waste collection service in the entire county. Additionally, Ordinance 96-30 provides that the Department of Solid Waste Management shall continue to collect any residential solid waste from any part of the unincorporated municipal area that becomes a municipality. In the Palmetto Bay�s conceptual agreement, the MAC members expressed their willingness to commit the new municipality to remaining in the solid waste collection system.

The litter program and illegal dumping activities funded by the UMSA budget will not be provided by the department in Palmetto Bay unless an agreement is reached with the municipality.

Building Department

The Building Department operates from the fees collected by permits, inspection and fines related to the construction and renovation of property. The department�s records indicate the following level of activity in the proposed incorporation area:

Plans Processed Fees Collected Permits Issued
FY 2000-01 (thru March) 2,149 $418,300 1,219
FY 1999-00 5,404 $862,000 3,551
FY 1998-99 4,264 $738,000 3,222

The level of activity in the proposed incorporation area represents about two percent of the overall activity in the unincorporated municipal service area and does not represent a significant financial impact to the County, as the workload will reduce proportionate to the loss of fees collected and the department has a large number of vacancies that have not been filled.

The Building Department has also initiated discussions with the Town of Miami Lakes for the provision of building services to that municipality in exchange for retaining the fees. The department would be willing to entertain similar discussions with the proposed municipality of the Palmetto Bay.

Team Metro

The majority of code enforcement responsibilities of Team Metro will be transferred to the new municipality. Team Metro would be interested in exploring with the new municipality the provision of enforcement services for illegal dumping and unsafe structures.

Parks and Recreation/Safe Neighborhood Parks Program

There are 5 parks within the proposed Palmetto Bay boundaries, these include:

1. Coral Reef Park
2. Perrine Park
3. Perrine Wayside Park
4. Bill Sadowski Park
5. Deering Estate

Three of these parks are considered neighborhood parks and will be transferred to the new municipality of the Palmetto Bay. They are Coral Reef Park, Perrine Park and Perrine Wayside Park. The net annual cost of operating these parks is $327,000 per year. The remaining parks are considered countywide parks and will continue to be managed, operated and funded by the County.

Approximately $1.2 million of Safe Neighborhood Park funds have been identified for the Coral Reef and Perrine parks.


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