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November 18, 2016 Special Commission Agenda Mayor Philip Levine and Members of the City Commission Jimmy L. Morales, City Manager November 18, 2016 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE SIXTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY) 2015/16. ADMINISTRATION RECOMMENDATION Adopt the resolution amending the FY 2015/16 General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets. COMPLIANCE WITH FLORIDA STATUTES The First Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2015/16 was approved on December 8, 2015, by resolution 2015-29221. The Second Amendment was approved on January 13, 2016, by resolution 2016-29263. The Third Amendment was approved on March 9, 2016, by resolution 2016-29315. The Fourth Amendment was approved on May 11, 2016, by resolution 2016- 29398. The Fifth Amendment was approved on July 13, 2016 by resolution # 2016-29490. be adopted in the same manner as the original budget. Per Florida Statute 166.241, the City has 60 days following the end of the fiscal year to amend a budget for that year. Proposed budget amendments represent the budget amendment required by state law for funds, departments, or accounts that exceed their appropriated authority. Based on a detailed analysis comparing third quarter FY 2014/15 actual expenditures to budget which were distributed separately via Letter to Commission (LTC), all expenditures are within FY2015/16 amended budgets per their appropriated authority. The only exceptions are listed below and require a budget amendment per Florida Statute. General Fund: Police, Fire, and the Department of Emergency Management Special Revenue Funds: Normandy Shores It should be noted that actual expenditures to date are preliminary in nature due to the fact that Sixth Amendment to the FY 2015/16 General Fund, Enterprise, Internal Service and Special Revenue Funds Budgets Page 2 mprehensive Annual Financial Report (CAFR) For the Year Ended September 30, 2016, usually available in May and the External -end entries to date and adjusted for pending entries where appropriate. PROPOSED AMENDMENTS TO THE GENERAL FUND Preliminary year-end actual expenditures show that the following departments are projected to exceed their amended budget. This variance is made up from savings in several department budgets. The following departments require budget amendments. Police The department is preliminarily estimated to be above the amended budget by approximately $311,000. The variance is primarily due to increased usage of Police overtime and includes an allowance for expenditures that may post as the year-end numbers are further finalized. Police Variance Projected v Amended Amended BudgetProjectedBudget% Over / (Under) Expenditures$ 99,989,000$ 100,300,000$ 311,0000.3% Fire The department is projected to be $2.7 million above the amended budget primarily due to personnel services costs being under budgeted for the fiscal year 2015/16. During the budget development process, a salary projection model in the Eden financial system was utilized to project personnel services costs, which included salaries and benefits for both classified and unclassified personnel. The budget also includes an allowance for expenditures that may post as the year-end numbers are further finalized. Fire Variance Projected v Amended Amended BudgetProjectedBudget% Over / (Under) Expenditures$ 62,844,000$ 65,558,000$ 2,714,000 4.3% Emergency Management This account is preliminarily estimated to be above the amended budget by approximately $347,000. This is primarily due to increases in professional services resulting from augmentation of the E-911 call center in the ublic Safety Communications Unit (PSCU), as well as increased overtime usage for training of call takers and dispatchers driven by filling positions that have been vacant for an extended period of time. The budget also includes an allowance for expenditures that may post as the year-end numbers are further finalized. Emergency Management Variance Projected v Amended Amended BudgetProjectedBudget% Over / (Under) Expenditures$ 9,218,000 $ 9,565,000 $ 347,0003.8% PROPOSED AMENDMENT TO THE SPECIAL REVENUE FUNDS The City of Miami Beach currently offers certain programs and activities not supported through the general operating budget, but by outside agency grants and self-supporting user fee Sixth Amendment to the FY 2015/16 General Fund, Enterprise, Internal Service and Special Revenue Funds Budgets Page 3 programs. These Special Revenue Fund Budgets include: Resort Tax Fund; 7th Street Garage Operations; 5th & Alton Garage Operations; Art in Public Places; Tourism and Hospitality Scholarship Program; Green/Sustainability Fund; Waste Hauler Additional Services and Public Benefit Contribution Fund; Education Compact Fund; Red Light Camera Fund; Emergency 911 Fund; Information and Communications Technology Fund; Concurrency Mitigation Fund; Miami Beach Cultural Arts Council; Police Special Revenue Account; Police Confiscation Trust Funds (Federal and State); and Police Training and School Resources Fund Residential Housing Normandy Shores Transportation Fund All special revenue funds are projected to be at or under the amended budget, except for the Normandy Shores budget, which is projected to be over budget by $13,000, primarily due to repairs and maintenance. Special Revenue Fund Above/(Below) Amended Budget Normandy Shores $13,000 CONCLUSION The resolution amending FY 2015/16 budgets will allow amendments to the General Fund, and Special Revenue Fund budgets to be enacted. This action is necessary to comply with Florida Statute 166.241, which stipulates that the City has 60 days following the end of the fiscal year to amend a budget for that year. JLM/CGR Sixth Amendment to the FY 2015/16 General Fund, Enterprise, Internal Service and Special Revenue Funds Budgets Page 4 SCHEDULE A FY 2015/16 6th Budget FY 2015/16 GENERAL FUND Amended Budget Amendment Revised Budget REVENUES Operating Revenues Ad Valorem Taxes$ 140,446,000$ 140,446,000 Ad Valorem Taxes- S Pte Costs$ - $ - Ad Valorem Cap. Renewal & Replacement$ 2,716,000$ 2,716,000 Ad Valorem Taxes- Normandy Shores$ 147,000 $ 147,000 Other Taxes$ 23,940,000 $ 23,940,000 Licenses and Permits$ 29,558,000 $ 29,558,000 Intergovernmental$ 11,037,000 $ 11,037,000 Charges for Services$ 12,046,000 $ 12,046,000 Fines & Forfeits$ 2,157,000$ 2,157,000 Rents and Leases$ 6,384,000$ 6,384,000 Miscellaneous$ 12,588,000 $ 12,588,000 Resort Tax Contribution$ 36,609,000 $ 36,609,000 Other$ 22,926,000 $ 22,926,000 Fund Balance/ Retained Earnings$ 5,857,000$ 5,857,000 Total General Fund$ 306,411,000$ - $ 306,411,000 FY 2015/16 6th Budget FY 2015/16 Amended Budget Amendment Revised Budget APPROPRIATIONS Department Mayor and Commission$ 2,199,000$ 2,199,000 City Manager$ 3,809,000$ 3,809,000 Communications$ 1,748,000$ 1,748,000 Budget & Performance Improvement$ 2,435,000$ 2,435,000 Org Dev & Performance Initiative$ 603,000 $ 603,000 Finance$ 5,435,000$ 5,435,000 Procurement$ 2,114,000$ 2,114,000 Human Resources/Labor Relations$ 2,721,000$ 2,721,000 City Clerk$ 1,455,000$ 1,455,000 City Attorney$ 5,282,000$ 5,282,000 Housing & Comm. Development$ 2,674,000$ 2,674,000 Building$ 14,643,000 $ 14,643,000 Code Compliance$ 6,118,000$ 6,118,000 Planning$ 4,274,000$ 4,274,000 Tourism, Culture, and Econ. Development$ 3,936,000$ 3,936,000 Parks & Recreation$ 30,812,000 $ (800,000)$ 30,012,000 Public Works$ 14,143,000 $ (800,000)$ 13,343,000 Capital Improvement Projects$ 4,945,000$ 4,945,000 Police$ 99,989,000 $ 311,000 $ 100,300,000 Fire$ 62,844,000 $ 2,714,000$ 65,558,000 Emergency Management$ 9,218,000$ 347,000 $ 9,565,000 Citywide Accounts-Other$ 12,261,000 $ (1,772,000)$ 10,489,000 Citywide Accounts-Operating Contingency$ 2,093,000$ 2,093,000 Citywide Accounts-Normandy Shores$ 226,000 $ 226,000 Subtotal General Fund$ 295,977,000$ - $ 295,977,000 TRANSFERS Capital Renewal & Replacement$ 2,716,000$ 2,716,000 Capital Investement Upkeep Account$ 315,000 $ 315,000 Info & Comm Technology Fund$ 395,000 $ 395,000 Pay-As-You-Go Capital Fund$ 2,400,000$ 2,400,000 Capital Reserve Fund$ 2,000,000$ 2,000,000 Reserve - Public Safety Radio System$ 500,000 $ 500,000 Building Reserve$ 2,108,000$ 2,108,000 Subtotal Transfers$ 10,434,000 $ - $ 10,434,000 Total General Fund$ 306,411,000$ - $ 306,411,000 Sixth Amendment to the FY 2015/16 General Fund, Enterprise, Internal Service and Special Revenue Funds Budgets Page 5 FY 2015/16 6th Budget FY 2015/16 ENTERPRISE FUNDS Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Convention Center$ 10,737,000 $ 10,737,000 Parking$ 79,452,000 $ 79,452,000 Sanitation$ 21,177,000 $ 21,177,000 Sewer Operations$ 48,069,000 $ 48,069,000 Stormwater Operations$ 23,457,000 $ 23,457,000 Water Operations$ 35,017,000 $ 35,017,000 Total Enterprise Funds$ 217,909,000$ - $ 217,909,000 FY 2015/16 6th Budget FY 2015/16 INTERNAL SERVICE FUNDS Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Central Services$ 967,000 $ 967,000 Fleet Management$ 10,470,000 $ 10,470,000 Information Technology$ 16,277,000 $ 16,277,000 Property Management$ 9,557,000$ 9,557,000 Risk Management$ 15,699,000 $ 15,699,000 Medical and Dental Insurance$ 28,961,000 $ 28,961,000 Total Internal Service Funds$ 81,931,000 $ - $ 81,931,000 FY 2015/16 6th Budget FY 2015/16 SPECIAL REVENUE FUNDS Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Resort Tax$ 79,934,000 $ 79,934,000 Transportation$ 9,812,000$ 9,812,000 People's Transportation Plan Fund$ 3,990,000$ 3,990,000 7th Street Garage$ 2,795,000$ 2,795,000 5th & Alton Garage$ 812,000 $ 812,000 Art In Public Places$ 340,000 $ 340,000 Tourism and Hospitality Scholarship Prgm$ 174,000 $ 174,000 Information and Communitation Tech Fund$ 395,000 $ 395,000 Education Compact$ 107,000 $ 107,000 Green/Sustainability Funds$ 399,000 $ 399,000 Residential Housing$ 773,000 $ 773,000 Red Light Camera Fund$ 1,416,000$ 1,416,000 E-911 Fund$ 398,000 $ 398,000 Cultural Arts Council$ 1,478,000$ 1,478,000 Normandy Shores$ 226,000 $ 13,000$ 239,000 Tree Preservation$ 111,674 $ 111,674 Police Confiscation Trust - Federal$ 454,000 $ 454,000 Police Confiscation Trust - State$ 532,000 $ 532,000 Police Special Revenue$ 75,000$ 75,000 Police Training$ 41,000$ 41,000 Police Crash Report Sales$ 30,000$ 30,000 Waste Haulers Add Serv & Public Benefit$ 105,000 $ 105,000 Total Special Revenue Funds$ 104,397,674$ 13,000$ 104,410,674 Mayor Philip Levine and Members of the City Commission Jimmy L. Morales, City Manager November 18, 2016 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY) 2016/17 ADMINISTRATION RECOMMENDATION Adopt the resolution amending the FY 2016/17 General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets. KEY INTENDED OUTCOME SUPPORTED Ensure expenditure trends are sustainable over the long term. GENERAL FUND ANALYSIS The preliminary year-end analysis for FY 2015/16 shows that the General Fund has a preliminary operating budget surplus of $4.5 million or 1.5 percent of the amended General Fund operating budget. The detailed year-end analysis will be distributed by LTC on the second week of December. FY15/16 General Fund Budget Adopted Budget as amended through Preliminary FY 2015/16 November, 2016Year-EndDifference Revenues$ 306,411,000$ 301,576,000$ (4,835,000) Expenditures$ 306,411,000$ 297,018,000$ (9,393,000) Surplus/(Deficit)$ 4,558,000 The Cityrequire that an 11 percent Emergency Reserve is funded in the General Fund and recommends that an additional 6 percent of optional Emergency Reserves are also funded. As of the end of FY 2015/16, the Emergency Reserve totaled 15.8 percent. General Fund Position at 9-30-15Requirement at 9-30-16DifferencePercent 11% Required Reserve$ 30,917,577$ 33,147,827$ (2,230,250) 10.3% 6% Optional Reserve$ 16,554,324$ 18,021,240$ (1,466,916) 5.5% First Amendment to the FY 16/17 General Fund, Enterprise, Internal Service, and Special Revenue Funds Budgets Page 2 Allocating $2,230,250 of the year-end surplus will keep the 11 percent Emergency Reserves fully funded to match the proportional growth in the General Fund budget during FY 2015/16. propriation is necessary in this budget amendment. -time revenues (such as the year-end surplus) must be used for non-recurring expenses, and that at least half of the annual year-end recommends that the Capital Reserve transfer requirement be waived and instead allocate funds to the 6 percent optional reserve. Of the $4.5 million surplus, it is proposed to roll-over $851,000 into FY 2016/17 to cover purchase orders that were encumbered, but not spent during FY 2015/16 due to timing issues between fiscal years. Similarly, it is proposed to roll-over $241,000 for projects that were budgeted, but not completed during FY 2015/16, to carry forward the appropriation for these projects into FY 2016/17. The remainder of the year-end funds, $1,235,750, are proposed to be added to the 6 percent of optional Emergency Reserves. General Fund - Reserve Proposal Position at 9-30-15Funding ProposalTotalFunded Percent 11% Required Reserve$ 30,917,577$ 2,230,250 $ 33,147,82711.0% 6% Optional Reserve$ 16,554,324$ 1,235,750 $ 17,790,0745.9% The following tables summarize the proposed changes in appropriations to the General Fund: Projected Surplus $ 4,558,000 (excluding non-cash impact of losses on investments) Changes in Expenditure Appropriations Reserve - Encumbrances 851,000 Reserve - Set Aside for FY 2015/16 Projects in FY 2016/17 241,000 Reserve - Contribution for 11% Required Emergency Reserves 2,230,250 Reserve - Contribution for 6% Optional Emergency Reserves 1,235,750 Revised Net Surplus$ - First Amendment to the FY 16/17 General Fund, Enterprise, Internal Service, and Special Revenue Funds Budgets Page 3 FY 2016/17 Carryforward Carryforward FY 2016/17 GENERAL FUNDAdopted Encumbrances Appropriations Other Amended Budget from FY 2015/16 from FY 2015/16 Budget REVENUES Operating Revenues Ad Valorem Taxes$ 159,950,000 $ 159,950,000 Ad Valorem Taxes- S Pte Costs$ -$ - Ad Valorem Cap. Renewal & Replacement$ 662,000$ 662,000 Ad Valorem Taxes- Normandy Shores$ 169,000$ 169,000 Other Taxes$ 23,732,000$ 23,732,000 Licenses and Permits$ 30,348,000$ 30,348,000 Intergovernmental$ 11,439,000$ 11,439,000 Charges for Services$ 12,174,000$ 12,174,000 Fines & Forfeits $ 1,799,000 $ 1,799,000 Rents and Leases$ 6,426,000$ 6,426,000 Miscellaneous$ 12,575,000$ 12,575,000 Resort Tax Contribution$ 37,609,000$ 37,609,000 Other$ 20,369,000$ 20,369,000 Fund Balance/ Retained Earnings$ - 851,000 241,000$ 1,092,000 Total General Fund$ 317,252,000 $ 851,000$ 241,000$ - $ 318,344,000 FY 2016/17 Carryforward Carryforward FY 2016/17 Adopted Encumbrances Appropriations Other Amended Budget from FY 2015/16 from FY 2015/16 Budget APPROPRIATIONS Department Mayor and Commission$ 2,093,000$ 2,093,000 City Manager$ 3,625,000 5,000$ 3,630,000 Communications$ 1,995,000$ 1,995,000 Budget & Performance Improvement$ 2,499,000 159,000$ 2,658,000 Org Dev & Performance Initiative$ 629,000$ 629,000 Finance$ 5,746,000 45,000 $ 5,791,000 Procurement$ 2,258,000 30,000 $ 2,288,000 Human Resources/Labor Relations$ 2,780,000$ 2,780,000 City Clerk$ 1,560,000 2,000$ 1,562,000 City Attorney$ 5,370,000$ 5,370,000 Housing & Comm. Development$ 2,798,000$ 2,798,000 Building$ 15,146,000 17,000 $ 15,163,000 Environment & Sustainability$ 1,064,000 59,000 $ 1,123,000 Code Compliance$ 5,845,000 102,000$ 5,947,000 Planning$ 4,156,000 24,000 $ 4,180,000 Tourism, Culture, and Econ. Development$ 3,680,000$ 3,680,000 Parks & Recreation$ 31,934,000$ 31,934,000 Public Works$ 14,698,000$ 14,698,000 Capital Improvement Projects$ 5,051,000$ 5,051,000 Police$ 104,470,000 259,000$ 104,729,000 Fire$ 71,938,000$ 71,938,000 Emergency Management$ 9,509,000$ 9,509,000 Citywide Accounts-Other$ 13,376,000 367,000 23,000 $ 13,766,000 Citywide Accounts-Operating Contingency$ 1,318,000$ 1,318,000 Citywide Accounts-Normandy Shores$ 257,000$ 257,000 Subtotal General Fund$ 313,795,000 $ 851,000$ 241,000$ - $ 314,887,000 TRANSFERS Capital Renewal & Replacement$ 662,000$ 662,000 Capital Investement Upkeep Account$ -$ - Info & Comm Technology Fund$ 395,000$ 395,000 Pay-As-You-Go Capital Fund$ 2,400,000$ 2,400,000 Capital Reserve Fund$ -$ - Building Reserve$ -$ - Subtotal Transfers$ 3,457,000$ -$ -$ - $ 3,457,000 Total General Fund$ 317,252,000 $ 851,000$ 241,000$ - $ 318,344,000 First Amendment to the FY 16/17 General Fund, Enterprise, Internal Service, and Special Revenue Funds Budgets Page 4 ENTERPRISE, INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FY 2016/17 BUDGET AMENDMENT There are $1,806,000 of encumbrances in the Enterprise Funds, $257,000 in Internal Service Fund encumbrances, and $766,000 in Special Revenue Fund encumbrances, for goods or services which were procured in FY 2015/16, but not yet received and expended, which are recommended to be carried over to the respective FY 2016/17 operating budgets. Similarly, it is proposed to carry forward appropriation of $116,000 in the Enterprise Funds, and $3,092,000 in the Special Revenue Funds into FY 2016/17 for projects that were budgeted, but not completed during FY 2015/16. Prior year appropriations fully fund the encumbrances and projects. Carryforward Carryforward FY 2016/17 FY 2016/17 ENTERPRISE FUNDSEncumbrances from Appropriations from Other Amended Adopted Budget FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Convention Center$ 11,038,000$ 11,038,000 Parking$ 60,815,000 437,000 116,000$ 61,368,000 Sanitation$ 20,624,000 262,000 $ 20,886,000 Sewer Operations$ 54,156,000 516,000 $ 54,672,000 Stormwater Operations$ 28,334,000 198,000 $ 28,532,000 Water Operations$ 34,402,000 393,000 $ 34,795,000 Total Enterprise Funds$ 209,369,000 $ 1,806,000 $ 116,000 $ -$ 211,291,000 Carryforward Carryforward FY 2016/17 FY 2016/17 INTERNAL SERVICE FUNDSEncumbrances from Appropriations from Other Amended Adopted Budget FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Central Services$ 1,015,000$ 1,015,000 Fleet Management$ 9,547,000 50,000$ 9,597,000 Information Technology$ 16,828,000 202,000 $ 17,030,000 Property Management$ 8,409,000$ 8,409,000 Risk Management$ 17,580,000 5,000$ 17,585,000 Medical and Dental Insurance$ 30,532,000$ 30,532,000 Total Internal Service Funds$ 83,911,000$ 257,000$ - $ -$ 84,168,000 Carryforward Carryforward FY 2016/17 FY 2016/17 SPECIAL REVENUE FUNDSEncumbrances from Appropriations from Other Amended Adopted Budget FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Resort Tax$ 86,722,000 221,000 1,510,000$ 88,453,000 Transportation$ 10,187,000 461,000 797,000$ 11,445,000 People's Transportation Plan Fund$ 3,766,000 42,000$ 3,808,000 7th Street Garage$ 2,320,000$ 2,320,000 5th & Alton Garage$ 771,000$ 771,000 Art In Public Places$ 473,000$ 473,000 Tourism and Hospitality Scholarship Prgm$ 184,000$ 184,000 Information and Communitation Tech Fund$ 534,000 34,000 235,000$ 803,000 Education Compact$ 235,000$ 235,000 Sustainability Fund$ 350,000 30,000$ 380,000 Residential Housing$ 771,000$ 771,000 Red Light Camera Fund$ 1,516,000$ 1,516,000 E-911 Fund$ 351,000$ 351,000 Cultural Arts Council$ 1,679,000 350,000$ 2,029,000 Normandy Shores$ 257,000$ 257,000 Tree Preservation$ 90,000$ 90,000 Police Confiscation$ 336,000 8,000 170,000$ 514,000 Police Special Revenue$ 105,000$ 105,000 Police Training$ 30,000$ 30,000 Waste Haulers Add Serv & Public Benefit$ 70,000$ 70,000 Total Special Revenue Funds$ 110,747,000 $ 766,000$ 3,092,000$ -$ 114,605,000 First Amendment to the FY 16/17 General Fund, Enterprise, Internal Service, and Special Revenue Funds Budgets Page 5 CONCLUSION The resolution amending FY 2016/17 budgets will allow the first amendment to the departmental appropriations within the General Fund, Enterprise Funds, Internal Service Funds and Special Revenue Fund budgets to be enacted. This action is necessary to allow for the funding of encumbrances for good and services procured, but not yet received and expended at the end of FY 2015/16, as well as projects that were budgeted in FY 2015/16, but had not been expended or encumbered. The amendment also adds $3,466,000 to the General Fund reserves. JLM/CGR