Download Incorporation and Annexation Report and Policy Recommendations

Incorporation and Annexation Report
Policy Recommendations
Miami-Dade County
2001-02
Incorporation History


After 1991, seven additional areas were
considered for incorporation: Aventura,
Pinecrest, Sunny Isles Beach, Destiny,
East and West Kendall, and
Westchester
Of these, Aventura, Pinecrest and
Sunny Isles Beach became
municipalities
Incorporation History

A public opinion survey in 1995 indicated
that most residents were familiar with the
incorporation issue and that most were
unsure or would rather wait for more
information before voting on the issue

In a 1996 straw ballot, more voters were in
favor of creating community councils than
incorporation
Incorporation History

After the straw ballot, and under new
Code provisions, Palmetto Bay, Doral,
and Miami Lakes applied for
incorporation

After a public hearing in 1996, the BCC
did not allow these areas to go forward
and imposed a one year moratorium on
annexations and incorporations
Incorporation History

Several committees and task forces
studied the incorporation and
annexation issues from numerous
perspectives
Revenue Sharing Task Force

The Task Force identified two
alternatives as countywide revenue
sources; each called for a one-half cent
sales tax but differed from each other in
that:
– All cities were eligible to receive
funding
– Only cities that had below average per
capita taxable values were eligible for
funding
Manager’s Incorporation
Report, April 1999



Policy calling for total incorporation by
2007 repealed
Proposed new cities to remain within firerescue, libraries, and solid waste
collection systems, and to receive and pay
specialized law enforcement services from
the County
Fiscal neutrality of areas through
boundaries or mitigation strongly
recommended
Manager’s Incorporation
Report, April 1999

Consider the “town” alternative

Put on ballot the appropriate
amendment to implement and enhance
the enforceability of these conditions
Subsequent Actions

Miami Lakes Municipal Advisory
Committee (MAC)

Palmetto Bay MAC

October 3, 2000, Charter Amendment
Subsequent Actions

Incorporation of Miami Lakes

Incorporation of Palmetto Bay

Creation of MACs in Redland, Doral,
Country Club Lakes, West Dade, North
Central and West Kendall
Incorporation and Annexation
Fundamental Policy
Recommendations
Annexation

When viable, annexation is the
preferred option to control number
of municipalities and ensure fiscal
strength of existing cities and areas
pursuing local governance
Annexation

Working with the Miami-Dade
League of Cities, initiate a review to
identify potential annexation areas
for existing municipalities
Annexation

Consider increasing the UMSA millage
to enhance services and to make UMSA
tax rate somewhat more comparable
with municipal rates

In certain circumstances share utility tax
and franchise fee revenue from
annexed area with annexing city
Annexation - Enclave Areas

A Charter amendment presented to the
voters to grant the Board of County
Commissioners the authority to force
the annexation of enclave areas
completely surrounded by one or more
municipalities and meeting pre-defined
thresholds for population and
geographic size
Regional-type Municipal
Services

New municipalities must continue to
receive these services from the County:
– Fire-Rescue
– Library
– Solid Waste Management
– Specialized Police
Local Police Services

New municipalities should enter into a
contract with the Miami-Dade Police
Department for an initial period (3-5
years) after incorporation for patrol and
purely local police services
Revenue Neutrality Policy

Proposed municipalities should
generally be revenue neutral, through
boundaries and mitigation payments

Revenue neutral means that the
projected revenue loss to UMSA is not
greater than the projected reduction in
service cost
Revenue Neutrality Policy

A minimum municipal population of
10,000-15,000 is recommended to prevent
the creation of an inordinate number of
new cities in Miami-Dade County

If recommended policies are adopted, a
large number of new cities can be created
without adversely impacting UMSA of
County “regional-type” municipal services
Mitigation Policy

With respect to the County’s business
resource areas:
– Provide for the retention of commercial
and industrial areas in UMSA, or
– Retain 100 percent of the difference in
revenues generated and agreed upon
expenses in commercial and industrial
areas
Mitigation Policy

With regard to all other areas, mitigation
payments should be calculated based
on the difference between current
revenues generated and expenses
incurred in the area less a reasonable
allocation for setting up a local
government and minor improvements in
service
Limited Purpose Governments
- “Towns”


Create limited purpose governments
(“towns”) for areas desiring more local
autonomy
Towns will, most likely, be appropriate
under one of two scenarios:
– Area is too small to be a separate
municipality
– Area does not have the tax base to
support full-fledged government
“Towns”

“Towns” obtain funds to purchase
enhancements to local police, code
enforcement, parks, landscape
maintenance, etc.

County establishes minimum standards
for all municipal services as an UMSAwide baseline
Regulatory Control Over Areas
of Countywide Significance

The County should retain regulatory
control over areas of countywide
significance
Incorporation and Annexation
Policies Supporting the
Incorporation and Annexation
Processes
Countywide Revenue Sharing

While controversial, countywide
revenue sharing is an important enough
concept to deserve serious
consideration
Countywide Revenue Sharing

A limited assistance program will need
to be implemented to assist
municipalities with low tax bases fund
their specialized police service costs
UMSA-wide
Incorporation Plan
Total Incorporation of MiamiDade County

If a pre-determined trigger point for the
reduced size of UMSA is reached, the
BCC should adopt an aggressive policy
toward annexation and incorporation of
the remainder of UMSA
Boundary Disputes

To resolve boundary disputes, a set of
guiding principles should be adopted,
which can be used to arbiter disputes
on a case-by-case basis
Areas Outside the Urban
Development Boundary

Annexations and incorporations that
include areas outside the urban
development boundary should continue
to be considered on a case-by-case
basis
Areas Outside the Urban
Development Boundary

The County should retain approval
authority over all land use decisions in
such areas
Areas Outside the Urban
Development Boundary

No incorporation/annexation of areas
with environmentally sensitive areas,
such as well fields, should be allowed
Enclaves, Efficiency in Service
Delivery

Existing enclaves should be eliminated
through modification of boundaries or,
alternatively, through contracting for
services with municipalities
Financial Issues
Franchise Fee Distribution

Franchise fees transferred to
municipalities should reflect net of all
contractual discounts exercised by FPL
Payment of QNIP Debt

New municipalities need to be
responsible for paying their share of
QNIP debt service based on the cost of
the improvements made within their
proposed municipal boundaries
Financial Impact to UMSA

The creation of Country Club Lakes,
Redland, and the annexation to Medley,
do not have an adverse financial impact
on UMSA
Municipal Advisory
Committees (MACs)

It is recommended that there be no
more than two active MACs at any
given time

MACs should be appointed for two
years
Peripheral Issues

Revise method of funding specialized
police services

Municipal Assistance Task Forces

Competitive Government Contracting
Specialized Police Service

86% of County residents pay directly for
specialized police services

14% of County residents only pay for
specialized services through countywide
taxes
Specialized Police Service

Newly created cities like Key Biscayne,
Pinecrest, Aventura, and Sunny Isles
Beach are not directly paying for
specialized police costs. Without a
change in policy, as new incorporations
occur, more of the burden will switch to
the countywide budget
Specialized Police Service

The total cost of specialized police
services in the County is estimated at
approximately $155 million; the
countywide budget does not have
sufficient capacity to absorb these
expenditures
Specialized Police Service

Existing municipalities should either
provide their own specialized police
services or contract with another
municipality or the County

All municipalities receiving specialized
police services from the County should
contract and pay for such services
Specialized Police Service

Given that this policy, unlike the
mitigation policy, is under the County’s
control, it would be unfair to charge only
new cities for specialized services

County will have to establish a program
to assist municipalities with a lower per
capita tax base to cover the costs of
specialized police services
Specialized Police Service

Recognizing that municipalities will
need time to plan for contracting and
paying for specialized police services,
this policy should be effective no earlier
than FY 2002-03
Competitive Government

Opportunities for the County to provide
other municipal services on contractual
basis to new and existing municipalities
should be pursued aggressively