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LTC 436-2019 FY 2020 BUDGET DEVELOPMENT PROCESS UPDATE MIAMI BEACH OFFICE OF THE CITY MANAGER LTC# 436-2019 LETTER TO COMMISSION TO: Mayor Dan Gelber and Members of e City a, mission FROM: Jimmy L. Morales, City Manager l DATE: August 5, 2019 SUBJECT: FY 2020 BUDGET DEVELOPMENT PROCESS UPDATE The purpose of this Letter to Commission (LTC) is to provide an update regarding the FY 2020 budget development process. At the first public hearing on September 11th, Administration will present a balanced FY 2020 budget that closes a preliminary $4.4 million gap through efficiencies and administrative reductions that avoid major cuts to public facing programs and services. The City Commission will finalize and adopt the FY 2020 budget at the second public hearing on September 25th The two budget public hearings in September are the culmination of a robust budget process that started during the Spring and featured an all-day budget planning workshop with the City Commission on May 21St and three half-day budget workshops with the full Commission on June 14th, July 19th, and July 26th. I am proud to share that this year's budget process incorporated feedback from the 2019 Community Survey, built on the second year of program budgeting (activity-based costing), and included the first use of an innovative zero-based budgeting exercise. Other accomplishments demonstrating the financial strength of the City of Miami Beach include outstanding credit ratings received from S&P (AA+) and Moody's (Aa2), as well as our recently announced FEMA Class 5 Community Rating Score. In addition, the City recently updated its Investment Policy and was one of only two municipalities in the State of Florida to have their Investment Policy assigned a AAAf/S1 rating by Standard & Poor's and was one of only 208 applicants to be approved in the last 10 years by the Association of Public Treasurers of the USA and Canada. Please note that the Proposed FY 2020 operating and capital budget documents will be distributed approximately one week in advance of the first public hearing on September 11th to facilitate briefings and Commission input. If you have any questions regarding the FY 2020 budget process, please feel free to contact John Woodruff, Chief Financial Officer. JLM/JW