Hallandale Beach approves start of 3 Islands special assessment process with $1.1 million district contribution and targeted exemptions

HALLANDALE BEACH, Fla. — The Hallandale Beach City Commission voted 4-1 to adopt a resolution initiating the process to impose a non‑ad valorem special assessment for the 3 Islands neighborhood to fund road, curb, crosswalk, landscaping, guardhouse and other traffic and safety improvements.

The action, taken after a staff presentation and more than an hour of questions and discussion, amended the draft resolution to reflect a $1,100,000 contribution from the 3 Islands Safe Neighborhood District and to incorporate voluntary exemptions for certain folios. The resolution directs staff to mail notice to affected property owners and set a public hearing on the proposed assessment for June 18. Staff said the mailer would go out by May 29.

Finance Director Giovanni Nesti told commissioners the assessment process is intended to finance a project with a not‑to‑exceed budget of approximately $4.6 million. He summarized options presented at a May 7 budget workshop that varied by the size of a district or city contribution, which folios (property parcels) would be assessed, and whether the district would pay the first year’s payment on behalf of residents.

Paul Lambert, a consultant with Lambert Advisory, cautioned commissioners about voluntary exemptions. “You need to be very, very cautious…because it’ll cost the city additional dollars,” Lambert said, noting that non‑mandatory exemptions would reduce the assessment base and shift costs to either the city’s general fund or the remaining assessed property owners.

Commission discussion centered on how many folios would be exempted, the district’s reserves and operating needs, and whether the district should cover the first year’s payment to ease residents’ immediate cash flow. Staff said the district had about $1.5 million in reserves as of Sept. 30, 2024 and projected roughly $1.6 million by the end of fiscal year 2025. Staff estimated annual operating costs for the district at about $200,000 a year (primarily for police coverage), a figure commissioners used when discussing how large a contribution the district could safely make without depleting reserves.

City staff and consultants presented several implementation details: the assessment calculation used a 4% interest rate for financing, administrative and collection costs estimated at 7% (broken down by staff as a 4% early payment discount requirement, 2% Broward County Property Appraiser billing fee, and a 1% city administrative fee), and the possibility of a promissory note from the general fund for five years at 4% if the city chose internal financing. Staff also said the plan is to place unpaid assessments on the property tax roll if owners do not pay; that process makes the assessments lienable and improves collectability.

On specific counts, staff told commissioners there are roughly 4,061 folios within the proposed assessment area. Of those, 88 folios currently pay $0 in taxes under mandatory or discretionary exemption categories; commissioners and staff discussed carving out additional voluntary exemptions for categories such as long‑term low‑income seniors or a percentage of disabled veteran exemptions. Staff said exempting roughly 64 voluntary folios would reduce the number of assessed folios to about 3,997 and would lower the per‑folio annual assessment by a few dollars under the illustrative scenarios.

After questions about potential overlap with other infrastructure projects, public works staff and the city engineer clarified that the city’s five‑year capital improvement plan did not already include the paving work in the 3 Islands scope. They noted, however, that a separate water main project scheduled for bid opening on June 23 will require spot patching where the pipe is installed; the 3 Islands paving project would resurface whole streets in scope once the separate work is complete.

During the roll call the commission recorded four yes votes and one no vote. Vice Mayor Lasner voted yes; Commissioner Lee Matau voted no; Mayor Cooper, Commissioner Adams and Commissioner Butler voted yes. The motion as amended—authorizing the assessment process while reflecting the $1,100,000 district contribution and the voluntary exemptions—carried 4‑1.

Next steps stated on the record: staff will send the required notices to property owners by May 29, and the commission will hold a public hearing on June 18 to consider imposition of the assessment and the preliminary assessment roll. The adopted resolution and ordinance language set a maximum assessment amount; staff said the final assessment could be set at or below that ceiling but could not be raised above it without restarting the process.

The commission’s action initiates a process that staff and consultants said could lower the Safe Neighborhood District’s millage rate in future budget actions once the assessment is in place, but any millage changes would be considered separately during the city’s budget hearings.

Ending — The resolution adopted does not finalize assessments; it starts the legally required notice, public hearing and preliminary assessment roll process. Commission debate focused on balancing the district’s reserve health and operating needs with the goal of reducing long‑term costs for residents while funding safety and paving improvements in the 3 Islands neighborhood.