WHY INCORPORATE?
Skylake
Highland Lakes
Enchanted Lakes
& Ojus
Frequently Asked Questions
A project of the Sky Lake-Highland Lakes Area Homeowners Association
Revised 11/15/2004
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HISTORICAL BACKGROUND
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 studies. They are in Cutler
Ridge, Goulds, Fountainbleau, Princeton (Plant), Redlands, The Falls, North Central Dade, and
Northeast Dade. There are also many annexation applications in progress.
The new cities have exceeded 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, created a school, landscaped
public areas and lowered taxes. Aventura, Pinecrest and the Village of Key Biscayne were
predicted to fail. Surprisingly, these new cities have outperformed all expectations having the
lowest taxes, best services and best appearances of the 34 cities 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, but
agreed to pay the County mitigation and to 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 service
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; they received a $250,000 grant from the Safe
Neighborhood Park program. They were the last city to qualify for a larger share of the new
halfpenny transit tax. They have a new 44-acre park, a new baseball field for the Palmetto High
School and new bay front property. They plan to resurface streets and landscape the right of way.
They have succeeded in enhancing their community in a very short time.
We have looked to Aventura, a well-run city, with a proven government and low taxes, to annex
our area. Annexation is a process driven by the existing city and is not in our power or control. In
September 2004 the City of Aventura completed a feasibility study on annexation and
determined it would not be economically feasible for them to annex our area. The Aventura City
Commission accepted this report and has eliminated annexation as an option for our area. The
Mayor and City Commissioners encouraged us to move forward with our incorporation study
and pledged their support for our community.
In the meantime, policies in Miami-Dade County towards new cities continue to raise the cost of
departure. In the last few years they have added mitigation and specialized police service costs
and reduced transit funding. For these reasons, and the possibility that the Skylake Mall and
other significant commercial properties on Miami Gardens Drive may be annexed by the City of
North Miami Beach, we cannot afford to wait.
The incorporation of our area will replace layers of bureaucracy with a small and efficient local
government responsive to us, the residents. Our desire is to improve public safety with a
substantially enhanced local police patrol; to improve public areas with grants and more efficient
contractors; to improve neighborhood compliance standards with stricter code enforcement and
place zoning decisions in the hands of our community.
We have the same desires as the residents of Pinecrest, Palmetto Bay, Miami Lakes and
Aventura to attain a high level of local services at a reasonable cost, to have a better quality of
life for our residents and maintain high property values. We believe our goals can be obtained
through a better use of the same tax dollars that we presently pay the County.
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FREQUENTLY ASKED QUESTIONS REGARDING INCORPORATION:
Question 1. Why do we want to create our own city?
Answer. We pay municipal taxes to Miami-Dade County. However, we have limited
access and little voice in local decisions. Our municipal services are provided by County
staff that we did not elect and do not live in our community. This is not a government of,
by and for the people. Those who live within smaller governments have a sense of
belonging in their community and have greater pride in their neighborhoods.
Government works best when it is closest to the people.
Question 2. Would it make sense to be annexed to the City of Aventura?
Answer. It appears to make sense. However, this is not within our control. Annexation is
a process driven by an existing City. We cannot force Aventura to annex our area.
Question 3. Would it make sense to approach the City of Aventura?
Answer. We have approached Aventura. Aventura has studied our area and determined it
would not be economically feasible to annex our area. The City of Aventura has
eliminated this possibility as an option.
Question 4. Why was it not economically feasible for Aventura?
Answer. By County Ordinance electric franchise fees of $410,000 and utility taxes of
$993,700 would be retained by the County. These revenue losses as well as other factors
created a budget challenge in excess of one million dollars.
Question 5. What are the proposed boundaries of the new city?
Answer. The proposed boundaries are:
West – Interstate 95 from 215th south to Snake Creek
East – Florida East Coast Railway along West Dixie Highway
South – The boundaries of the of City North Miami Beach
North – N.E. 215 street or County Line Road
(See map on page 6)
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Question 6. What is a MAC?
Answer. A MAC is a Municipal Advisory Committee. A committee comprised of men
and women who reside in an area under study, who have been appointed by the County
Commissioner of their district, to evaluate the feasibility, desire and viability of creating
a new municipality, annexing to an existing municipality or retaining the status quo. The
MAC will meet with County departments to learn about local service options, prepare a
budget, conceptual agreements, hold public hearings and make a recommendation to the
Board of County Commissioners (BCC).
Question 7. Will I get to Vote on incorporation or annexation?
Answer. Yes. After the MAC makes a recommendation to the BCC (Board of County
Commissioners), the BCC will gather further information from the community and
County staff. The BCC will either approve or disapprove the MAC recommendation.
Any change from the status quo will be put to a full vote of the electorate residing within
the boundary area.
Question 8. Does our unincorporated area presently pay municipal taxes?
Answer. Yes, all residents of unincorporated Miami-Dade County pay the equivalent of a
municipal tax for UMSA (Unincorporated Municipal Service Area). This is known as the
UMSA millage, which is currently at 2.447. It approximates 10% of your property tax
bill and equates to $245 per $100,000 of taxable value. In addition, all residents of
Miami-Dade County pay taxes to support education and countywide services.
Question 9. Can our proposed city incorporate without raising taxes?
Answer. We believe we can, based on the MAC budget. The County presently collects
more revenue from residents in our area than it spends to provide municipal services.
The County defines our area as a “donor community” which means that the excess taxes
collected in our area is used by the County in other areas.
Question 10. How do tax rates in newly created cities compare with municipal tax
rates charged by the County in the unincorporated area?
Answer. All of the new cities have comparatively low tax rates and some are lower than
the County. Key Biscayne has the lowest and Sunny Isles Beach has the highest at 3.35
mills or, $335 per $100,000 of taxable value. Most newly created cities keep the County
millage of 2.447 and, while not increasing taxes, provide better municipal services. The
law requires that new cities retain the same tax rate previously charged by the County in
the first year of incorporation.
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Question 11. If we incorporate aren’t we adding a new layer of government and
another layer of costs?
Answer. Yes and no. Creating a new local government to replace the County for
municipal services will not cost more. In Miami-Dade everyone now pays for two layers
of government. It makes no difference whether you live in the unincorporated area or in a
city. Through the formation of our new city we will gain control of the portion of our tax
dollars paid to the County for municipal services (UMSA) and control local decisions on
those services. The cost of municipal government is shifted to the new city from the
County.
Question 12. What about the economies of scale?
Answer. Governments do not become more cost effective as they become larger. In fact,
the incremental cost of government services goes up with the growth in size. In addition,
municipalities in the State of Florida pay the same price, under a collective purchasing
agreement, for vehicles and equipment.
Question 13. Is a big government more or less efficient than a small one?
Answer. Less efficient. In big government the bureaucracy becomes too large to manage
efficiently. We believe we can do a far better job providing local services by replacing
layers of bureaucracy with a small community government tailored to meet the needs of
our residents.
Question 14. What are the basic municipal services provided by existing city
governments in Miami-Dade County?
Answer. The primary role of city government is to provide for public safety with a local
police force. Other basic services include code enforcement; management of parks and
recreation facilities; maintenance of local roads, storm water drainage, public area
landscaping, building department and growth management through planning and zoning.
Question 15. How much would it cost us to provide municipal services for ourselves
in the proposed city?
Answer. According to the budget passed unanimously by the Municipal Advisory
Committee and accepted by County budget staff, the first year revenues would be $6.5
million with a surplus of $74,021. The significant expenditures would be local and
specialized police service costs of $3.7 million and annual mitigation fees of $785,000,
both payable to Miami-Dade County. This is proposed without any increase in taxes.
Question 16. Who prepared the MAC budget?
Answer. The MAC budget was prepared by a budget committee, comprised of area
residents, that have significant experience in accounting, auditing and government
finance. The budget was based upon revenue estimates provided by the County and
expense estimates based on comparable city budgets.
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Question 17. What revenues does UMSA presently collect?
Answer. Revenue sources available to a municipality include property taxes, utility
taxes, franchise fees, communications tax, sales tax, license fees, permit fees, fines and a
variety of other fees and service charges. Additional revenues come from Federal, State
and County revenue sharing and/or grants. Only about 27% of city’s revenue comes
from ad valorem property taxes.
Question 18. How does the quality of service compare between the unincorporated
areas and the cities in the County?
Answer. Generally speaking, the quality of service provided by the County to
unincorporated area residents is lower than the existing cities provide to their residents.
City governments can and do provide greater police presence, shorter response times, and
staff all their departments with personnel far more familiar with local conditions, and
who are trained to respond to local needs. The County, due to its size, hundreds of square
miles and over 2.2 million people, cannot provide comparable services.
Question 19. How will police, parks, fire and rescue, garbage and trash, and library
services be affected by the formation of a new city?
Answer. The major change in our new city would be the creation of a “man on the
street” police force. We would have a police presence in our neighborhoods 24 hours and
7 days a week. There will be 32 sworn officers dedicated to our area. The level of service
of law enforcement will increase dramatically and our police would be solely responsive
to our citizens’ needs. The County would continue to provide specialized police services
such as S.W.A.T., helicopter support, medical examiner, narcotics and homicide
investigations. Highland Oaks Park and Ojus Park would be part of the city’s new Parks
Department. Greynolds Park will stay with the County. Fire and rescue, garbage, and
library services would remain with the County. These, like the special services of the
police department are included in countywide taxes.
Question 20. Will the new city have start up expenses and capital needs?
If so, how will we fund these expenses and capital needs?
Answer. Yes. These expenses will be funded by the UMSA taxes now paid to the
County. All the new cities start by renting office space. Other property and equipment is
leased as well. Over time, financing is arranged to purchase facilities and equipment
using the same cash flow. This has all been provided for in the MAC budget.
Question 21. What is mitigation?
Answer. Mitigation is a fee assessed by County Ordinance 02-26. The Code requires
that new municipalities mitigate the negative impact of their incorporation on the UMSA
budget at least 1 mill ($1 for every $1,000) of their taxable value in the first year of
existence. This amount is calculated as $785,000 and is provided for in the MAC budget.
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Question 22. The Village of Palmetto Bay has been cited as an example of a new
city. How has it performed?
Answer. They incorporated in 2002. There has been no increase in taxes. They pay
mitigation and specialized police costs. They projected a first year surplus of $500,000
and ended with a surplus of $2.5 million. The municipal police force has been
dramatically improved. They purchased the 44-acre Coral Reef Park. They purchased bay
front property. They built a baseball field for use by Palmetto High School and made
other park improvements. They plan to resurface roads and landscape public areas. The
new city now enjoys new capital improvements, enhanced services, local control over
zoning and development, new park property and has significant reserves in the bank.
Question 23. Does the County segregate tax dollars raised for municipal purposes,
to be spent in the unincorporated areas, from money raised for countywide
purposes?
Answer. No. The County has used these dollars to our disadvantage. The County uses
UMSA revenues to balance its budget. UMSA revenues are used to meet shortfalls in
countywide operations.
Question 24. If all the unincorporated areas are incorporated, what will happen to
the County government?
Answer. It will remain to do the job for which it was created, namely, operate
countywide services such as the airport, seaport, public health, public transportation,
public safety, etc. Providing municipal services in UMSA is only a small part of what the
County does. The UMSA budget represents approximately 8% of the total county
budget.
Question 25. What would happen if all or most of the other unincorporated areas in
Miami-Dade County are incorporated or annexed, and we maintain our status quo?
Answer. If we do not go forward, part of the area in our MAC could be annexed by
other adjacent cities and our area may no longer be viable. The City of North Miami
Beach has requested to annex the Skylake Mall and other significant commercial
properties on Miami Gardens Drive. If our area is no longer viable, we could be forced
into annexation with an adjacent area and lose the opportunity for self-determination.
Finally, we cannot expect our County Commissioner to appoint another MAC.
Question 26. What will happen to the special taxing districts in our area?
Answer. Nothing. Incorporation has no effect on the taxing districts. However,
incorporation will substantially enhance local police patrol. The roving patrol taxing
districts in Highland Ranch and Oak Forest may be dissolved if a majority of the
homeowners in those districts petition for dissolution. The additional cost assessed in
2003 for Highland Ranch and Oak Forest homeowners was $2,226 and $1,104
respectively.
For more information on incorporation visit the Miami-Dade County Government
Website at www.miamidade.gov/inc/home.asp
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