LTC 095-2020 Fiscal Year 2020 First Quarter Analysis MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC# 095-2020 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of'the City"Commission
FROM: Jimmy L. Morales, City Manag
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DATE: February 20, 2020
SUBJECT: Fiscal Year 2020 First Quarter An lysis
The purpose of this Letter to Commission (LTC) is to provide the Mayor and members of the
City Commission with the status of the Fiscal Year (FY) 2020 operating budget to actual
revenues and expenses incurred for the first quarter ending December 31, 2019, with
projections through fiscal year-end September 30, 2020, as set forth in the City's Charter which
specifies that "the City Manager shall make public a quarterly report showing the actual
expenditures during the quarter just ended against one quarter of the proposed annual
expenditures set forth in the budget."
The first quarter of any fiscal year does not necessarily provide the clearest indication of the
experience for the remainder of the fiscal year, but does, however, provide a first glance in
identifying any potential issues that may be forthcoming. Certain assumptions for both revenues
and expenditures have been made that will be further refined and adjusted for in later
projections as additional data and information becomes available. These assumptions, along
with our continued efforts at managing the City's resources and ongoing adjustments to line
item revenues and expenditures throughout the year, will impact projections going forward.
SUMMARY
A summary of the preliminary General Fund revenues and expenditures as of December 31,
2019 with projections through September 30, 2020 reflects a projected year-end surplus of $1.9
million, or 0.5 percent (%), of the current amended FY 2020 budget.
Unless otherwise noted below and further detailed in this LTC, all General Fund, Enterprise
Funds, Internal Service Funds, and Special Revenue Funds budgets are projected to be at or
below their current FY 2020 amended budgets as of year-end with revenues projected to be
equivalent to or in excess of expenditures.
General Fund: Police
Internal Services Funds: Medical and Dental
BACKGROUND
The operating budgets for the General Fund, Enterprise Funds, Internal Service Funds, and
Special Revenue Funds for FY 2020 were adopted by the Mayor and City Commission on
September 25, 2019, through Resolution No. 2019-31004.
The First Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and
Special Revenue Funds budgets for FY 2020 was adopted by the Mayor and City Commission
Letter to Commission—Fiscal Year 2020 First Quarter Analysis
Page 2 of 10
on November 25, 2019, through Resolution No. 2019-31081.
The Second Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and
Special Revenue Funds budgets for FY 2020 was adopted by the Mayor and City Commission
on January 15, 2020, through Resolution No. 2020-31138.
The Third Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and
Special Revenue Funds budgets for FY 2020 was adopted by the Mayor and City Commission
on February 12, 2020.
It is important to note that the first quarter projections for FY 2020 include the impacts of all five
collective bargaining agreements, including applicable increases in previously existing and
newly provided additional specialty pays, ratified by the City and the International Association of
Fire Fighters (IAFF) on May 8, 2019 through Resolution No. 2019-30831, the Government
Supervisors Association of Florida (GSAF) on July 17, 2019 through Resolution No. 2019-
30909, the Fraternal Order of Police (FOP) on July 31, 2019 through Resolution No. 2019-3093,
the Communications Workers of America (CWA) on October 30, 2019 through Resolution No.
3019-31070, and American Federation of State, County, and Municipal Employees (AFSCME)
on December 11, 2019 through Resolution No. 2019-31106. Of all five collective bargaining
agreements, two were ratified subsequent to the adoption of the FY 2020 budget (CWA and
AFSCME).
GENERAL FUND
General Fund First Quarter Status
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2019 through December 31, 2019 reveals an operating budget surplus of $101.6 million.
While the actual operating surplus as of December 31, 2019 may seem unusual as compared to
the projection for the current fiscal year ending September 30, 2020, it should be noted that the
City receives a larger percentage of its ad valorem property taxes during the first quarter of the
fiscal year as compared to subsequent quarters during the same fiscal year. FY 2020 ad
valorem property tax revenues represent approximately 53.6% of total budgeted revenues and
75.5% of actual revenues collected during the first quarter of the fiscal year.
As of December 31, 2019, total revenues collected were approximately 48.3% of the current
amended budget, or $179.6 million. Conversely, expenditures were approximately 21.0% of the
current amended budget, or $78.0 million.
FY 2020 Budget
1/4 of Amended Actuals as of Variance from 1/4
General Fund Adopted Budget Amended Budget Budget 12/31/19
Amended Budget
Oxer/(Under)
Re\enues $ 350,143,000 $ 371,874,000 $ 92,968,500 $ 179,588,350 $ 86,619,850
Expenditures $ 350,143,000 $ 371,874,000 $ 92,968,500 $ 78,022,490 $ (14,946,010)
Excess of Revenues Over/(Under)Expenditures $ 101,565,860
General Fund Year-End Projections
Year-end operating revenues and expenditures projected through September 30, 2020 provide
a more realistic indication of any estimated year-end surpluses or shortfalls as of this point in
time. While actual revenues and expenses presented in the LTC are as of December 31, 2019,
these projections have incorporated more current information, if available.
Letter to Commission—Fiscal Year 2020 First Quarter Analysis
Page 3 of 10
A summary of the preliminary General Fund revenues and expenditures projected through
September 30, 2020 reflects a year-end surplus of $1.9 million, or 0.5%, of the current FY 2020
amended budget. As previously mentioned, it should be noted that this analysis is a preliminary
projection based on experience during the first quarter of the fiscal year and any additional
information that may be more current, which is not a definitive indication of the experience over
the remainder of the fiscal year. It does, however, provide a first glance in identifying any
potential concerns that may arise in the latter part of the fiscal year.
FY 2020 Budget
General Fund Adopted Budget Amended Budget Projected Difference %Oeer/(Under)
Re'.enues $ 350,143,000 $ 371,874,000 $ 372,271,000 $ 397,000 0.1
Expenditures $ 350,143,000 $ 371,874,000 $ 370,285,000 $ (1,589,000) -0.4%
Excess of Revenues Over/(Under)Expenditures $ 1,986,000
General Fund Operating Revenues
As of the first quarter, FY 2020 property tax collections are being projected at 95.0% of total
property taxes assessed, which is consistent with the original adopted budget allowing for
discounts and a level of adjustment for appeals that is consistent with historical levels. The
impact of these appeals and adjustments realized for the FY 2020 budget will be provided by
the Miami-Dade County Property Appraiser in July 2020 when the City's certified property
values are received.
As of December 31, 2019, actual operating revenues were approximately 48.3% of the current
amended budget, or $179.6 million, with operating revenues through fiscal year-end September
30, 2020 projected at $372.3 million, which is approximately 0.1%, or $397,000, above the
current amended budget. Significant variances to budget in excess of 10.0%, or $300,000, by
revenue category are explained below:
Licenses and Permits - This category is primarily comprised of revenues generated from
business tax receipts, various types of permits, plans reviews, and sidewalk café fees and
is projected to be above the current amended budget by 2.7%, or $812,000, primarily due
to revenues collected from planning and fire plans review activities, as well Public Works
permits, trending higher than budget by approximately $995,000. These revenues are,
however, projected to be slightly offset by a decrease in other miscellaneous license and
permit revenues of$183,000 based on current year trends as of first quarter.
For a detail of General Fund revenues by category, refer to the attached Exhibit A.
General Fund Operating Expenditures
As of December 31, 2019, actual expenses were approximately 21.0% of the current FY 2020
amended budget, or $78.0 million, with operating expenditures through fiscal year-end
September 30, 2020 projected at $370.3 million, which is approximately 0.4%, or $1.6 million,
below the current FY 2020 amended budget. These projections are based on experience during
the first quarter of the fiscal year and any additional information that may be more current.
A comparison of actual expenses and projected expenditures to budget by department, as of
December 31, 2019, is provided in the attached Exhibit A. Departments projected to exceed
budget, or with significant variances to budget in excess of 10.0%, or $300,000, are explained
below:
Letter to Commission—Fiscal Year 2020 First Quarter Analysis
Page 4 of 10
Police — The department is projected to be 0.2%, or $234,000, above the current amended
budget primarily due to increased usage of Police overtime. During the first quarter of the
fiscal year, the Patrol Division had several vacancies, which resulted in the department
relying on increased usage of unbudgeted overtime to maintain required minimum patrol
staffing and police visibility citywide to ensure public safety. In addition, the Major Crimes
Unit (including Special Victims) was tasked with the investigation of numerous cold case
sexual batteries. These investigations were in response to sexual assault kits that had gone
untested, and due to recent changes to Florida Law, needed to be investigated more
thoroughly requiring the use of additional overtime. Based on a number of officers recently
released from the Field Training Officer (FTO) program and deployed to positions that would
have a potential impact on patrol overtime though, it is anticipated that the current trend in
necessary overtime may trend downward in the coming months. We will continue to monitor
the department's expenditures over the course of the remainder of the year in an effort to
identify savings to offset these unbudgeted overtime expenditures in the department's
current General Fund operating budget, and if necessary, amend the department's budget
at year-end through the realignment of existing General Fund appropriations.
Police
FY 2020 FY 2020 Projected vs
Amended Budget Projected Amended %Over/(Under)
Budget Variance
Expenditures $ 116,314,000 $ 116,548,000 $ 234,000 0.2%
ENTERPRISE FUNDS
The City accounts for those goods and services provided by a particular department to external
users for which a fee is charged as Enterprise Funds. The City's Sanitation, Water, Storm
Water, Sewer, Parking, and Convention Center operations comprise this category of proprietary
funds.
An analysis of the actual three-month operating expenses for the period October 1, 2019
through December 31, 2019, reveals that all Enterprise Funds have expenses less than one-
quarter of their current FY 2020 amended budgets. As previously mentioned, this is not
representative of typical trends for a full fiscal year, as there is often a lag in expenditures,
particularly those billed by outside entities.
Sanitation Sever Storm Vater „Vater paw Convention
FY 2020 Adopted Budget 22,420,000 52,415.000 31,998,000 36.915,000 55.532.000 30.002.000
Budget Amendment-1125/19 634,000 826.000 432,000 2,163,000 129,000 1,525,000
Budget Amendment-01/15/20 0 0 799,000 0 0 0
Budget Amendment-02/12/20 0 0 0 0 0 0
FY 2020 Amended Budget 23,054,000 53,241,000 33,229,000 39,078,000 55,661,000 31,527,000
1/4 Adopted Budget 5,605,000 13,103,750 7,999,500 9,228,750 13,883,000 7,500,500
1/4 Amended Budget 5.763,500 13,310,250 8,307,250 9,769,500 13,915,250 7,881,750
Revenues as of 12/31/19 4,136,305 11,510,147 6,947,992 7,473,959 11,797,530 (2,659,979)
Expenditures as of 12/31/19 4,775,755 12,237,402 4,383,210 7,399,967 7,376,515 783,169
Expenditures Above/(Below)1/4 Amended Budget (987.745) (1,072.848) (3,924,040) (2,369.533) (6,538.735) (7.098,581)
%Variance -4.3% -2.0% -11.8% -6.1% -11.7% -22.5%
Year-end operating revenue and expenditure projections through September 30, 2020 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in
time. Further, while the actual revenues and expenses presented above are as of December 31,
2019, the year-end projections incorporate more current information, if available.
Letter to Commission—Fiscal Year 2020 First Quarter Analysis
Page 5 of 10
As summarized in the table below, revenues for all Enterprise Funds are projected to be
equivalent to or in excess of expenditures as of year-end. It is, however, important to note that
as part of the adopted FY 2020 budget, the City's policy of "not utilizing one-time, non-recurring
revenue to subsidize recurring personnel, operating, and maintenance costs" was waived, as
adopted by Resolution No. 2019-31004, for the Sanitation Fund. The projections below include
the use of approximately $1.4 million of prior year fund balance from the Sanitation Fund to fund
recurring costs projected in FY 2020.
ENTERPRISE FUNDS
Sanitation Sewer Stormletter Vetter PaddingConvention
Center
FY2020 Adopted Budget 22,420.000 52,415,000 31,998,000 36,915,000 55,532,000 30,002,000
Budget Amendment-11/25/19 634,000 826,000 432,000 2,163,000 129,000 1,525,000
Budget Amendment-01/15/20 0 0 799,000 0 0 0
Budget Amendment-02/12/20 0 0 0 0 0 0
FY 2020 Amended Budget 23,054,000 53,241,000 33,229,000 39,078,000 55,661,000 31,527,000
FY 2020 Projections:
Charges for Services 9,485,000 50,929,000 31,065,000 35,008,000 50,292,000 17,607,000
Other 13,203,000 2,260,000 2,100,000 3,803,000 3,182,000 12,565,000
FY 2020 Revenue Projections 22,688,000 53,189,000 33,165,000 38,811,000 53,474,000 30,172,000
$Overl(Under)Amended Budget (366,000) (62,000) (64,000) (267,000) (2,187,000) (1,366,000)
%Over/(Under)Amended Budget -1.6% -0.1% -0.2% -0.7% -3.9% -4.3%
FY 2020 Expenditure Projections 22,688,000 53,189,000 33,165,000 38,811,000 53,474,000 30,172,000
$Over/(Under)Amended Budget (366,000) (62,000) (64.000) (267,000) (2,167,000) (1,356,000)
%Over/(Under)Amended Budget -1.6% -0.1% -0.2% -0.7% -3.9% -4.3%
Revenues Oved(Under)Expenditures 0 0 0 0 0 0
Enterprise Funds budgets projected to exceed budget, or with significant variances to budget in
excess of 10.0%, or$300,000, are explained below:
Sanitation - Expenditures are projected to be 1.6%, or $366,000, below the current
amended budget, primarily due to projected savings in personnel costs of $693,000
resulting from several vacant positions that the department has been unable to fill or is in
the process of filling. These projected personnel costs savings are, however, anticipated to
be partially offset by additional operating expenditures of $327,000 primarily for usage of
outside temporary labor services necessary to supplement permanent department staffing
resulting from the current vacancies in the department.
Parking - Expenditures are projected to be 3.9%, or $2.2 million, below the current
amended budget, primarily due to diminished demand and usage of on-street and off-street
parking adversely impacted by private on-demand ride booking services resulting in a
decrease in the amount available to be set-aside for capital renewal and replacement of
existing Parking Department assets and reserves in the amount of approximately $1.8
million. Additional savings of $381,000 are also projected in personnel and operating
expenditures based on expenditures trending lower than budget.
Convention Center - Expenditures are projected to be 4.3%, or $1.4 million, below the
current amended budget, primarily due to changes in the current mix of events that have
taken place and that are expected to take place compared to what was originally budgeted
in FY 2020, as well as firm/speculative events that did not materialize as originally
anticipated.
INTERNAL SERVICE FUNDS
The City accounts for goods and services provided by one department to other departments
citywide on a cost reimbursement basis as Internal Service Funds. Central Services, Fleet
Management, Information Technology, Property Management, Risk Management (Self
Insurance), and Medical and Dental comprise this category of proprietary funds.
Letter to Commission—Fiscal Year 2020 First Quarter Analysis
Page 6 of 10
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2019 through December 31, 2019, reveals that all Internal Service Funds, except Central
Services and Information Technology, have expenses less than one-quarter of their current FY
2020 amended budgets, primarily due to expenditures typically incurred later in the fiscal year.
In contrast, Central Services and Information Technology have expenses greater than one-
quarter of their current FY 2020 amended budgets due to annual payments for metered postage
services and software licensing that are made at the beginning of each fiscal year.
INTERNAL SERVICE FUNDS
Central Services Fleet Information Property Medical&Dental
Risk Management
Wnagement Te� Management Insurance
FY 2020 Adopted Budget rte` - tl
d9 1,115.000 12.938.000 16,848,000 11.001.000 19.655,000 37.367,000
Budget Amendment-11/25/19 4,000 461,000 530,000 491,000 122,000 0
Budget Amendment-01/15/20 0 0 0 0 0 0
Budget Amendment-02/12/20 0 0 0 0 0 0
FY 2020 Amended Budget 1,119,000 13,399,000 17,378,000 11,492,000 19,777,000 37,367,000
1/4 Adopted Budget 278,750 3,234,500 4,212,000 2,750,250 4,913,750 9,341,750
1/4 Amended Budget 279,750 3,349,750 4,344,500 2,873000 4,944,250 9,341,750
Revenues as of 12/31/19 275,722 3,172,648 3,932,640 2,385,500 4,574,333 9,084,026
Expenditures as of 12/31/19 325,778 2,119,016 4,432,984 1,724,200 3,284,651 7,986,091
Expenditures Above/(Below)1/4 Amended Budget 46,028 (1,230,734) 88.484 (1,148,800) (1,659,599) (1,355,659)
%Variance 4.1% -9.2% 0.5% -10.0% -8.4% -3.6%
Year-end operating revenue and expenditure projections through September 30, 2020 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in
time. Further, while the actual revenues and expenses presented above are as of December 31,
2019, the year-end projections incorporate more current information, if available.
As summarized in the table below, revenues for all Internal Service Funds are projected to be
equivalent to or in excess of expenditures as of year-end.
INTERNAL SERVICE FUNDS
Central Sarvioes Fkat nntoRisk Management Medical&Dental
Management TechnologyInforin Management
ynt Insurance
FY 2020 Adopted Budget 1.115,000 12.938,000 16,848,000 11,001,000 19,655,000 37,367,000
Budget Amendment-11/25/19 4.000 461.000 530,000 491,000 122,000 0
Budget Amendment-01/15/20 0 0 0 0 0 0
Budget Amendment-02/12/20 0 0 0 0 0 0
FY 2020 Amended Budget 1,119,000 13,399,000 17,378,000 11,492,000 19,777,000 37,367,000
FY 2020 Projections:
Charges for Services 1,004,000 12,396,000 15,978,000 9,556,000 17,717,000 0
Other 45,000 954,000 1,400,000 1,711,000 1,938,000 37,977,000
FY 2020 Revenue Projections 1,049,000 13,350.000 17,378.000 11,267.000 19,655,000 37,977,000
$Over/(Under)Amended Budget (70,000) (48,000) 0 (226,000) (122,000) 810,000
%Over/(Under)Amended Budget -6.3% -0.4% 0.0% -2.0% -0.6% 1.6%
FY 2020 Expenditure Projections 1.049.000 13,350,000 17,378,000 11.267.000 19.655.000 37,977,000
$Over/(Under)Amended Budget (70,000) (48,000) 0 (226,000) (122,000) 410,000
____ %Over/(Under)Amended Buqget -63% _ -0.4% 0.0% -2.0% -0-6% 1.6%
Revenues Over/(Under)Expenditures 0 0 0 0 0 0
Internal Service Funds budgets projected to exceed budget, or with significant variances to
budget in excess of 10.0%, or $300,000, are explained below:
Medical and Dental - These funds are projected to be 1.6%, or $610,000, above the
current amended budget due to medical and pharmacy claims trending higher than budget
based on current year-to-date claims experience, which includes several large claims and
adjusted actuarial forecasts resulting from this claims experience. Since claims can
fluctuate significantly throughout the year, this is a conservative projection, and the trend
will continue to be monitored over the coming months. If claims experience continues to
trend at current levels for the remainder of the fiscal year, available fund balance may be
realized to cover the projected year-end shortfall.
Letter to Commission—Fiscal Year 2020 First Quarter Analysis
Page 7 of 10
SPECIAL REVENUE FUNDS
Special Revenue Funds consist of revenues and expenditures which are legally restricted or
committed for specific purposes other than debt service and/or capital projects. Special
Revenue Funds include Resort Tax, as well as 7th Street Garage Operations, 5th &Alton Garage
Operations, Normandy Shores and Biscayne Point Taxing Districts, Tourism and Hospitality
Scholarship Program, Tree Preservation and Commemorative Tree Trust Fund, Beachfront
Concession Initiatives Program, Beach Renourishment Fund, Waste Haulers and Sustainability
Contributions, Education Compact Fund, Red Light Camera Program, Emergency 911 Fund,
Residential Housing Program, Information and Communications Technology Fund,
Transportation and People's Transportation Plan (PTP) Fund, Miami Beach Cultural Arts
Council and Art in Public Places Operations, Miami City Ballet, Police Unclaimed Property and
Crash Report Sales Funds, Police Confiscation Trust Funds (Federal and State), Police Training
and School Resources Fund, and the Adopt-a-Bench Program.
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2019 through December 31, 2019, reveals that all Special Revenue Funds, except the
Education Compact Fund and Police Unclaimed Property have expenses less than one-quarter
of their current FY 2020 amended budgets primarily due to expenditures that are typically
incurred in the latter part of the fiscal year. The Education Compact Fund and Police Unclaimed
Property have expenses that are more than one-quarter of their current FY 2020 amended
budgets due to one-time expenses incurred during the first quarter of the fiscal year for
agreements, equipment, training, etc. The actuals incurred for these funds through December
31, 2019 are not representative of typical trends for a full fiscal year.
While all Special Revenue Funds are projected to be at or below their current FY 2020
amended budgets as of year-end, departments projected to exceed budget, or with significant
variances to budget in excess of 10.0%, or$300,000, are further explained below:
Red-Light Camera - This fund is projected to be 43.1%, or $566,000, below the current
amended budget due to delays in the installation of an additional five red light cameras
originally anticipated to be installed and fully operational by January 2020, as well as
revenues generated from the existing red-light cameras trending lower than budgeted
resulting from existing cameras that are or anticipated to be temporary offline for necessary
repairs. Overall, expenditures are projected to exceed revenues by $43,000. Should this
projected shortfall be realized at year-end, it will be offset by the use of the Red-Light
Camera's fund balance.
Red Light Camera
FY 2020 FY 2020 Projected vs
Amended Budget Projected Amended %Oeer/(Under)
Budget Variance
Expenditures $ 1,313,000 $ 747,000 $ (566,000) -43.1%
RESORT TAX FUND
The City's Resort Tax Fund is primarily supported by taxes collected pursuant to Chapter 67-
930 (Section 6) of the Laws of Florida, as amended, and Section 5.03 of the City of Miami
Beach Charter, as amended. This legislation authorizes the use of Resort Taxes for the
promotion of the tourism industry, which includes, but is not restricted to the following: Publicity,
advertising, news bureau, promotional events, convention bureau activities, capital
improvements and the maintenance of all physical assets in connection therewith; and for the
payment of the reasonable and necessary expenses of collecting, handling and processing of
said tax.
Letter to Commission—Fiscal Year 2020 First Quarter Analysis
Page 8 of 10
Typically, the City has considered the following services as "Services Related to the Promotion
of Tourism:"
• Police Officers serving entertainment areas
• A portion of Fire Rescue services from Fire Stations 1 & 2
• Ocean Rescue services
• Sidewalk pressure cleaning in South, Middle and North Beach visitor areas
• South Beach sanitation
• Enhanced Code Compliance/Enforcement provided to respond to evening entertainment
area violations and staffing of special events
• Other Code Compliance/Enforcement activities in tourism and visitor related
facilities/areas
• Tourism and Cultural Development Department and the Cultural Arts Council
• Museums and Theatres (Garden Center, Bass Museum, Colony and Byron Carlyle
Theatres)
• Golf courses (net of revenues)
• Memorial Day and other special event costs
• Homeless services
• July 4th, Visitor Center funding, Holiday Lights, Festival of the Arts, Jewish Museum,
MDPL, Orange Bowl, Monuments, etc.
These allowable uses have led to increased tourism-related activities, such as special events
including Art Basel and the Air and Sea Show.
Total two percent Resort Tax revenues are projected to be 0.1%, or $38,000, below the current
FY 2020 amended budget as of year-end, which was originally adopted assuming a
conservative 2.0% increase over total projected FY 2019 collections.
Total two percent Resort Tax expenditures are projected to be 0.1%, or $38,000, below the
current FY 2020 amended budget as of year-end resulting from projected savings in
miscellaneous operating expenditures of $50,000 that is anticipated to be slightly offset by an
increase in the projected contribution to the Miami Beach Visitor and Convention Authority
(VCA) of $12,000, which is based on a percentage of total two percent collections.
The proceeds of the one percent bed tax. as adopted through Resolution No. 2018-30512, and
continuing in FY 2020, unless amended by the City Commission, are to be utilized as follows:
60% allocated for Transportation initiatives in tourist-related areas; 10% allocated equally
among North Beach, Middle Beach and South Beach for capital projects that enhance Miami
Beach's tourist related areas; and 10% allocated to various arts and cultural programs.
One percent Resort Tax operating revenues are projected to be 0.7%, or $106,000, below the
amended budget as of year-end. Concurrently, since transfers for Transportation initiatives in
tourism-related areas, North, Middle, and South Beach quality of life projects, and various arts
and cultural programs are directly based on the proceeds of the one percent tax, one percent
Resort Tax expenditures are equally projected to be 0.7%, or $106,000, below the current
amended budget as of year-end.
Lastly, the proceeds of the additional one percent bed tax levied solely for the purposes of
expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center,
including debt service related thereto, as well as providing Capital Renewal and Replacement
Letter to Commission-Fiscal Year 2020 First Quarter Analysis
Page 9 of 10
funding for the Miami Beach Convention Center, is projected to be 0.7%, or $106,000, below the
current amended budget as of year-end. Since the proceeds of the additional one percent bed
tax must first provide for the payment of debt service and any excess, based on proceeds, be
set-aside for Capital Renewal and Replacement funding for the Miami Beach Convention
Center, additional one percent bed tax expenditures are also projected to be 0.7%, or $106,000,
below the current amended budget as of year-end.
Overall, combined Resort Tax revenues are projected to be 0.3%, or $250,000, below the
current amended budget as of year-end, while expenditures are simultaneously projected to be
0.3%, or $250,000, below the current amended budget as well. These projections do not include
the impact from hosting the Super Bowl, which will be reflected in the second quarter. The
Resort Tax projections will continue to be further refined as additional information and data
becomes available.
ESORT TAX FUND
FV 2026 Fr 2o20 Actuals as of %Actual of FY 2020 Over/(Under) %Over/(Under)
Adopted Amsndad Year End
12131/19 Arc nded Budget Amended Budget Amended Budget
Budget Budget Projections
Revenues
2%Resort Tax 61,298,000 61,298,000 7,474,060 12.2% 61,498,000 200,000 0.3%
Mscellaneous Revenues 937,000 937,000 15.538 1.7% 956,000 19,000 2.0%
Transfer In from Fund Balance 1,942,000 2,889,000 0 0.0% 2,632,000 (257000) -8.9%
1%Resort Tax(OOL) 14,725000 14.725,000 2,568,729 17.4% 14,619,000 (106,000) -0.7%
Additional 1%for Convention Center 14,725,000 14,725,000 2,568,729 17.4% 14,619,000 (106,000) -0.7%
Total Revenues 93,627,000 94,674,000 12,627,066 13.4% 94,324,000 (260,000) -0.3%
Expenditures
General Fund Contribution 36,757,000 36,757,000 9,189,250 25.0% 36.757,000 0 0.0%
Sanitation Fund Contribution 2,539,000 2,539,000 634,750 25.0% 2,539,000 0 00%
Contribution to GMCVB 7,127,000 7,127,000 300,262 4.2% 7,127,000 0 0.0%
Contribution to VCA 2,940,000 2,940,000 192,595 66% 2,952,000 12,000 0.4%
Contribution to M.Sinai 1,000900 1,000,000 0 0.0% 1,000,000 0 0.0%
Other Operating/Other Uses 13,814,000 14.497,000 2,033,182 14.0% 14,447,000 (50,000) -0.3%
Marketing 200,000 284,000 12,578 4.8% 264,000 0 0.0%
Transfer to NB,M3,SB Capital,Transp,and Arts(OOL) 14,725,000 14,725,000 2,568,729 17.4% 14,619,000 (106,000) -0.7%
Addfl 1%Conv.Center Debt Service&Cap.Ren&Repl. 14,725,000 14,725,000 0 0.0% 14,619,000 (106,000) -0.7%
Total Expenditures 93,627,000 94,674,000 14,931,348 16.6% 94,324,000
(250,000) -0.3%
Excess of Revenues Over/(Under)Expenditures 0 0 (2,304,290) 0
CONCLUSION
This analysis of budget to actual operating revenues and expenses as of December 31, 2019,
with projections through September 30, 2020, provides the status of the current amended FY
2020 budget for the first three months of the fiscal year. Although the first quarter of any fiscal
year is not a definitive indication of the experience for the remainder of the fiscal year, it does
provide a first glance in identifying any potential issues that may be forthcoming.
Based on preliminary first quarter projections, the General Fund is anticipated to have a year-
end surplus totaling $1.9 million, or 0.5%, of the current FY 2020 amended budget. All funds will
continue to be monitored over the coming months and projections will be further refined as the
fiscal year progresses and additional information and data becomes available.
JLMOS
Letter to Commission-Fiscal Year 2020 First Quarter Analysis
Page 10 of 10
EXHIBIT A
!CITY OF MIAMI BEACH
•
FY 2020 GENERAL FUND
1ST QUARTER
FY 2020 FY 2020 %Actual of FY 2020 Overl(Under) %Over/(Under)
Adopted Amended Amended
as of Amended Year End Amended Amended
Budget Budget 12131119 Budget Projections Budget Budget
•
REVENUES
Ad Valorem Taxes 184,150,000 184,150,000 132,215,597 71.8% 184,150,000 0 0.0%
Ad Valorem Taxes-Pay-As-You-Go Capital 2,470,000 2,470,000 2,470,000 100.0% 2,470,000 0 0.0%
Ad Valorem Taxes-Capital Renewal&Replacement 769,000 769,000 769,000 100.0% 769,000 0 0.0%
Ad Valorem Taxes-Normandy Shores 174,000 174,000 174,000 100.0% 174,000 0 0.0%
Other Taxes 23,995,000 23,995,000 4,382,098 18.3% 24,042,000 47,000 0.2%
Licenses and Permits 30,437,000 30,525,000 12,712,616 41.6% 31,337,000 812,000 2.7%
Intergovernmental 12,081,000 12,081,000 2,053,898 17.0% 11,857,000
Charges for Services 12,522,000 13,227,00D 2,943,627 22.3% 13,010,000 (217,000) -1.6%
Fines and Forfeitures 1,756,000 1,756,000 261,442 14.9% 1,475,000
Interest 3,461,000 3,461,000 3,342,934 96.6% 3,461,000 (281,000 0) -16.0%
0.0%
Rents and Leases 5,959,000 5,959,000 1,401,934 1.0% 5,959,000 0 0.0%
Miscellaneous 14,780,000 14,780,000 3,058,455 20.7% 15,040,000 260,000 1.8%
Other-Resort Tax Contnbution 36,757,000 36,757,000 9,189,250 25.0% 36,757,000 0 0.0%
Other-Non-Operating Revenues 18,454,000 18,454,000 4,613,500 25.0% 18,454,000 0 0.0%
Fund Balance/Retained Earnings 2,378,000 15,974,000 0 0.0% 15,974,030 0 0.0%
Prior Year-End Surplus Carryover 0 7,342,000 0 0.0% 7,342,000 0 0.0%
TOTAL REVENUES 360,143,000 371,874,000 179,588,350 48.3% 372,271,000 397,000 0.1%
EXPENDITURES
Mayor&Commission 2,500,000 2,500,000 530,545 21.2% 2,424,000
City Manager 4,314,000 4,314,000 927,294 21.5% 4,193,000 (1261,000) -2.8%
Marketing and Communications 2,424,000 2,460,000 446,847 18.2% 2,417,000 (43,000) -1.7%
Office of Management and Budget(prey.OBPI) 1,963,000 2,013,000 434,568 21.6% 1,998,000 (17,000) -0.8%
Office of Inspector General(incl.Internal Audit) 1,455,000 1,983,000 253,354 12.8% 1,964,000 (19,000) -1.0%
Org.Dev Peformance Initiatives 1,284,000 1,390,000 180,801 13.0% 1,362,000 (28,000) -2.0%
Finance 6,530,000 6,645,000 1,445,995 21.8% 6,516,000 (129,000) -1.9%
Procurement 2,726,000 2,735,000 588,447 21.5% 2,661,000 (74,000) -2.7%
Human Resources/Labor Relations 2,728,000 2,791,000 559,029 20.0% 2,724,000 (67,000) -2.4%
City Clerk 1,790,000 1,851,000 389,389 21.0% 1,809,000
(42,000) -2.3%
CityAttomey 6,078,000 6,333,000 1,220,410 19.3% 6,201,000
(132,000) -2.1%
Housing&Community Services 3,895,000 4,433,000 673,715 15.2% 4,322,000 (111,000) -2.5%
Building 14,085,000 14,215,000 3,172,603 22.3% 14,176,000 (39,000) -0.3%
Planning 5,510,000 5,768,000 1,072,595 18.6% 5,674,000 (94,000) -1.6%
Environment&Sustainability 1,632,000 1,761,000 309,229 17.6% 1,753,000 (8,000) -0.5%
Tourism&Cultural Development 3,545,000 3,572,000 995,876 27.9% 3,534,000
Economic Development 2,491,000 2,591,000 380,050 14.7% 2,578,000 (13,000) -0.5%
Code Compliance 6,488,000 6,533,000 1,451,712 22.2% 6,378,000 (155,000) -2.4%
Parks&Recreation(including Golf courses) 37,864,000 38,942,000 7,535,669 19.4% 38,727,000 (215,000) -0.6%
Public Works 15,391,000 15,833,000 2,749,166 17.6% 15,554,000 (79,000) -0.5%
Capital Improvement Projects 5,327,000 5,327,000 1,039,801 19.5% 5,240,000 (87,000) -1.6%
Police 115,174,000 116,314,000 27,867,958 24.0% 116,548,000 234,000 0.2%
Fire 90,647,000 91,247,000 21,690,537 23.8% 91,143,000 (104,000) -0.1%
Citywide(Net of Individual Items Below): 10,227,000 12,652,000 2,107,101 16.7% 12,520,000 (132,000) -1.0%
Normandy Shores 267,000 267,000 0 0.0% 267,000 0 0.0%
Pay-As-You-Go Capital 2,939,000 2,939,000 0 0.0% 2,939,000 0 0.0%
Info&Comm.Tech Fund 300,000 300,000 0 0.0% 300,000 0 0.0%
Capital Renewal and Replacement Fund 769,000 769,000 0 0.0% 769,000 0 0.0%
Building Fund 0 13,596,000 0 0.0% 13,596,000 0 0.0%
TOTAL EXPENDITURES 350,143,000 371,874,000 78,022,490 21.0% 370,285,000 (1,589,000) -0.4%
EXCESS OF REVENUES OVER/(UNDER)EXPENDITURES 0 0 101,56%%8600 1,986,000 •