November 2004 To: Our Members From: The Board of Directors Status Report on Incorporation/Annexation Performance of new cities formed from the unincorporated area of Miami-Dade County led us to question the level of service we receive for the tax dollars we pay. We requested that a Municipal Advisory Committee (MAC) be formed to study this question. As your board of directors, representing the homeowners of the MAC area, we prepared this report and a booklet of frequently asked questions to share the information we have learned. The MAC process is a series of public meetings that provides information to the citizens of the neighborhood on the services provided by the County. The MAC process has been ongoing for more than one year and a budget has been finalized. Board members of the Homeowners Association have spent many hours attending these meetings to become educated on the issues facing our community. Our community studied three possible options: incorporation, annexation or retention of the status quo. The goals of incorporation are: to improve public safety through a visible local police force, improve public service through more responsive staffing, upgrade neighborhood compliance standards through stricter code enforcement and improve public areas through grant applications and capital improvements. Incorporation would also place zoning decisions in the hands of the local community. This would result in replacing layers of bureaucracy with a small and efficient local government responsive to us, the residents. The second possible option was annexation into Aventura, a well run city, with proven government and low taxes. Annexation is a process driven by the existing city, which means that it is not within our power or control. In September 2004 the City of Aventura completed a feasibility study on annexation and determined that it would not be economically feasible for them to annex our area. The Aventura City Commission accepted this report and has eliminated this option as a possibility for our area. In concluding their deliberation the Mayor and City Commissioners encouraged us to move forward with our incorporation study and pledged their support for our community. The third option is to maintain the status quo. While the status quo may seem reasonable, this option may not allow the neighborhood to incorporate at a future time. The City of North Miami Beach wants to annex significant commercial properties along Miami Gardens Drive. We will lose our opportunity to control the neighborhood’s destiny, as the reduced MAC area will no longer be financially viable for incorporation. Furthermore, we have seen over the years that the County’s exit costs keep rising. We, as a board, are presenting this information so you, as the homeowner, can make an informed decision. We believe, for several reasons, this opportunity may not present itself again. The County Commission is not required to appoint another MAC, mitigation (exit) costs keep rising, boundaries may change, and there are politics in play, between old cities, new cities, and the County, that are uncontrollable and impact our lives politically and economically. Status Report on Incorporation/Annexation – Page 2 Background Information: Over the last ten years the County has allowed eight new cities to be created. They are Key Biscayne, Aventura, Pinecrest, Sunny Isles Beach, Palmetto Bay, Miami Lakes, Miami Gardens and Doral. At the present time there are eight ongoing incorporation (MAC) studies similar to ours. They are in Cutler Ridge, Goulds, Fountainbleau, Princeton (Plant), Redlands, The Falls, North Central Dade and Biscayne Gardens. There are also many annexation applications in progress. The new cities have exceeded the County’s initial expectations. The Village of Pinecrest has repaved many of its streets, greatly increased the presence of an on-the-street police force, established a one-year reserve for future administrative costs, and lowered taxes. Since incorporating, the City of Aventura has improved public safety, acquired land for parks and a school, landscaped public areas and lowered taxes. Although County staff predicted the Village of Key Biscayne would fail, it has the lowest taxes of any city in Miami-Dade County. Miami Lakes, Doral and Palmetto Bay met stiff resistance from the County and were denied the right to incorporate for several years. They persevered with their incorporation movements, agreeing to pay the County mitigation (an exit fee) and retain County staffing for local police services and other functions for at least three years. This raised the cost and set the standard for future incorporation movements. The Village of Palmetto Bay is similar to our community in many ways. They incorporated in 2002 and projected a $500,000 surplus after paying mitigation and specialized police costs. They have a $2.5 million surplus at the end of their first year. They received a $500,000 storm water and drainage grant to relieve flooding; and they received a $250,000 grant from the Safe Neighborhood Park program. They are the last city to qualify for a larger share of the new half-penny transit tax. They have a new 44-acre park, a new baseball field for Palmetto High School, and new bay front property. They plan to resurface streets and landscape public areas. They have succeeded in upgrading their community in a short amount of time. This information is to provide you with a brief summary of some of the accomplishments, as well as the issues that new cities have experienced. The rules keep changing for new cities being formed, and for this reason the Board of Directors urges you to participate in the remaining steps of the process. At this time, every homeowner has their own opinion on the direction our community should go, but this study has brought to light some consensus. First, we all want to protect our homes and property values. Second, the incorporation trend in Miami-Dade County is self-evident (see attachment). Third, it is better to draw our own boundaries than become part of another city, other than Aventura. For these reasons we encourage you to get involved and make an educated decision. What can you do? Please review the frequently asked questions booklet and become educated on the issues. Please attend both of the upcoming meetings on this subject. Our next General Homeowners Meeting will be held on December 22, 2004, 7 P.M. at the McDonald Center in North Miami Beach. The first of two Public Hearings on incorporation will be held November 17, 2004, 7:00PM at the Highland Oaks Middle School. We strongly encourage your attendance at these meetings. 2