2009-27104 ResoRESOLUTION NO. 2009-27io4-
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE
PROPOSED MILEAGE RATES FOR FISCAL YEAR (FY)
2009/10, THE CALCULATED "ROLLED-BACK" RATE, AND
THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC
HEARING; FURTHER AUTHORIZING THE CITY MANAGER
TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE
COUNTY PROPERTY APPRAISER IN THE FORM
REQUIRED BY SECTION 200.065, FLORIDA STATUTES
WHEREAS, Section 200.065, Florida Statutes, has specified the method by which
municipalities may fix the millage rate and adopt an annual budget; and
WHEREAS, in the May 2009 Commission Retreat, the Commission established
priorities and requested more detailed budget briefings; and
WHEREAS, the Commission directed Administration to generally preserve recently
enacted City initiatives in support of community priorities; and
WHEREAS, at the July 9th, 2009 Finance and Citywide Projects Committee meeting,
the Committee directed staff to set the proposed operating millage in July at the same rate
as the current year; and
WHEREAS, at the July 6th though July 9th, 2009 Finance and Citywide Projects
Committee meetings, the Committee discussed expenditure reductions and revenue
enhancements to balance the General Fund FY 2009/10 budget with the operating millage
at the same rate as in the current year; and
WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County
Property Appraiser of the Proposed Millage Rates, the "Rolled-Back" Rate, and the date,
time, and place of the first public hearing.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following
recommendations of the Administration be and are hereby ratified for transmittal to the
Miami- Dade County Property Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Millage Rates for FY 2009/10
General Operating 5.5472 mills
Capital Renewal & Replacement 0.1083 mills
Total Operating Millage 5.6555 mills
Debt Service 0.2568 mills
Total Combined Millage 5.9123 mills
R7E - 7/22/09
2009-27104
2) "Rolled-Back" Rate 6.6107 mills
3) The first public hearing on the proposed millage rate and the tentative budget for FY
2009/10 shall be held on Thursday, September 10, 2009 at 5:01 P.M., in the City
Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach,
Florida.
PASSED and ADOPTED, this 22"d day of Jam, 2009.
AT EST: M
Matti Herrera Bower
CITY LERK
Robert Parcher
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
1-~' ~ ~ ~ t
it ne'"_" "~'„'~
Y to
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA SETTING
1) THE PROPOSED OPERATING MILEAGE RATE; 2) THE REQUIRED DEBT SERVICE MILEAGE RATE; 3) THE
CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC HEARING
TO CONSIDER THE MILEAGE RATES AND BUDGETS FOR FISCAL YEAR (FY) 2009/10; FURTHER
AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES
Ke Intended outcome 5u or[ea:
Ensure expenditure trends are sustainable over the long term; Improve the City's overall financial health and maintain
overall bond rating: Increase community satisfaction with city services
Supporting Data (Surveys, Environmental Scan, etc.):
~ In the 2009 survey, 65% of residents and 55% of businesses rated the value of city services for tax dollars paid as
excellent or good. This represents an improvement of 19% for resident ratings when compared to 2007 and 15%
when compared to 2005. Business ratings remain steady when compared to 2007, but improved by 14% when
compared to 2005. The value of city services for tax dollars paid appeared as a key driver for residents' perceptions
of recommending Miami Beach as a place to live, Miami Beach govemment meeting their expectations, and Miami
Beach as a place to live; and for businesses' perceptions of City govemment meeting their expectations; Miami
Beach as a place to run a business and recommending Miami Beach as a place to run a business. In addition, rating
for the value of city services for tax dollars paid appeared higher (73.5% excellent or good) among those residents
that believe that'28% or less' of their property tax bill goes to fund city services. Businesses identified 'high property
taxes' as the most important potential challenge which might face their business over the next several years.
~ Over the last several years, the City of Miami Beach has adopted budgets that provided tax and fee relief while at
the same time providing improving services that address needs and priorities identified by the community (primarily
in public safety, cleanliness, landscaping and beautification, recreation and cultural arts programming, renewal and
replacement funding for our facilities, and building/development functions); and providing structural changes that
enhance capital funding and reserves. However, these objectives have become increasingly more challenging in
the last three years. In the last two years alone, the General Fund has absorbed almost $28 million in reductions
(and more than $31 million across all funds) in a General Fund budget that is $235 million in FY 2008/09.
~ Between FY 1999/2000 & FY 2008/09 City of Miami Beach Total Combined Millage decreased by 2.8 mills (11.8%)
to 5.8930. In FY 2008/09, total millage for all taxino jurisdictions within the City of Miami Beach was 20.4258, and
remains lower than most municipalities in Miami-Dade County.
Issue:
Shall the Mayor and City Commission adopt the resolution?
Item Summa /Recommendation:
The total proposed operating millage is maintained at 5.6555 mills, including a general operating millage rate of
5.5472 and a General Fund Capital Renewal and Replacement millage of 0.1083. The rollback rate is the millage rate
required to produce the same level of Citywide property tax revenues in FY 2009/10 as collected in FY 2008/09 and is
calculated as 6.6107. The proposed voted debt service millage rate is increased from 0.2375 to 0.2568, an increase
of 8.1 percent, however still lower than the 0.2415 for FY 2007/08.
Advisory Board Recommendation:
I _ -----
Financial Information:
_-
Source of Funds: Amount Account
OBPI
Financial Impact Summary: In FY 2008/09, the adopted operating millage rate for general City operations
was 5.6555. In FY 2009/10, 5.6555 mills is anticipated to generate approximately $132.7 million in total tax
revenues, a decrease of $11.8 million over current year budgeted property tax revenues Citywide (General Fund, City
Center RDA and the South Pointe area). However, General Fund property tax revenues will decrease by $10.2
million.
City Clerk's Office Legislative Tracking:
Sipn-Offs•
De nt Direct Assistant Cit Mana er Ci Mana er
s
m MIAMIBEACH
~./
AGENDA ITEM ~ `~
DATE 7 2-z-~
m MIAMIBEACH
City of Miami Bsach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager s-~
DATE: July 22, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA SETTING 1) THE PROPOSED OPERATING MILEAGE
RATE; 2) THE REQUIRED DEBT SERVICE MILEAGE RATE; 3) THE
CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE
OF THE FIRST PUBLIC HEARING TO CONSIDER THE MILEAGE RATES AND
BUDGETS FOR FISCAL YEAR (FY) 2009/10; FURTHER AUTHORIZING THE CITY
MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DARE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065,
FLORIDA STATUTES.
SUMMARY
The Administration is recommending a total combined millage rate for the City of Miami Beach
of 5.9123. The total proposed operating millage is maintained at 5.6555 mills, including a
general operating millage rate of 5.5472 and a General Fund Capital Renewal and
Replacement millage of 0.1083. The proposed voted debt service millage rate is increased
from 0.2375 to 0.2568, an increase of 8.1 percent. Further, the combined millage rate overall
remains approximately 2.8 mills lower than it was in FY 1999/00, and remains lower than most
municipalities in Miami-Dade County.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the attached
resolution which authorizes the City Manager to transmit the following information to the Miami-
Dade County Property Appraiser:
1) Proposed Millage Rates for FY 2009/10:
General Operating 5.5472 mills
Capital Renewal & Replacement 0.1083 mills
Sub-Total Operating Millage 5.6555 mills
Voted Debt Service 0.2568 mills
Total 5.9123 mills
2) "Rolled-Back" Rate (Truth in Millage) 6.6107 mills
(no change from FY 2007/08)
(0.2375 last year, 8.1 % increase)
(5.8930 last year, 0.3% increase)
3) The first public hearing to consider the proposed millage rates and tentative budgets for FY
2009/10 shall be Thursday September 10, 2009 at 5:01 p.m., in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 2
The rollback rate is the millage rate required to produce the same level of property tax revenues
in FY 2009/10 as collected in FY 2008/09. Further, pursuant to recently enacted State
legislation, the City may elect to approve millage rates above the roll-back rate up to the
constitutional cap of 10 mills subject to the following votes by the Commission or referendum:
• Option I: Millage up to 6.9048 (equivalent to a 2.5% increase in Property Tax revenues, net
of the impact of the Tax Increment Districts) requires majority of the approval of the
Commission
• Option II: Millage up to 7.5953 (equivalent to a 10% increase in Property Tax revenues
above Option I) requires atwo-thirds approval (5 of 7 votes) of the Commission
• Option III: Millage above 7.5953 requires unanimous approval of the Commission or
referendum up to the 10 mill cap
BACKGROUND
Over the last several years, the City of Miami Beach has adopted budgets that provided tax and
fee relief while at the same time providing improving services that address needs and priorities
identified by the community (primarily in public safety, cleanliness, landscaping and
beautification, recreation and cultural arts programming, renewal and replacement funding for
our facilities, and building/development functions); and providing structural changes that
enhance capital funding and reserves. However, these objectives have become increasingly
more challenging in the last three years. In the last two years alone, the General Fund has
absorbed almost $28 million in reductions (and more than $31 million across all funds) in a
General Fund budget that is $235 million in FY 2008/09.
On the expenditure side, Current Service Level (i.e. providing the same level of service as in
the prior fiscal year) expenditures typically have increased between 6% and 8% annually due to
salary and fringe increases and other normal cost of living adjustments. In FY 2009/10, these
increases were estimated to result in an approximately $10 million (4.5%) increase in
expenditures, the majority of which is due to annual merit and step increase in salaries in
existing contracts, as well a $6 million increase in required pension contributions primarily due
to the downtum in the market.
On the revenue side, based on the July 1, 2009 Certification of Taxable Value from the Miami-
Dade County Property Appraiser, there is an 8.2 percent decline in Citywide property tax values
from the July 1, 2008 tax roll certification to the July 1, 2009 tax roll certification. Values of
existing properties declined even further (14.8 percent), but this decline was offset by a 6.6
percent in new construction (an unprecedented $1.8 billion). This compares to increases in
taxable value of at least an 8 percent increase per year from July 1, 2001 through July 1, 2007.
Further, other revenues such as sales tax, golf course revenues, interest earnings, etc. have
decreased due, in large part, to the downtum in the market.
As a result, there was an initial gap in the range of $24 million between General Fund Current
Service Level expenditures and Current Service Level revenues. This estimate included the
impact of reduced property tax revenues as well as anticipated growth in current service level
expenditures (i.e. the cost of providing the same level of service as in the current year). These
increases included:
• Salary adjustments for merit and step increases etc.
• Increases in health insurance and pension benefit costs
• Increases in operating costs
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 3
Preliminary
Projected
Changes For FY Projected
Adopted Budget 2009/10 as of Changes as of
REVENUES: FY 2008/09 April 2009 Jul 1 , 2009
Ad Valorem -City 123,818,211 TBD (10,013,338)
Millage-Capital Renewal & Repl 2,218,974 TBD (192,267)
Interest Earnings 6,310,000 (974,000) (974,000)
Franch 8, Util taxes 24,001,750 338,000 338,000
Licenses 3,881,000 (336,000) (336,000)
Permits 10,926,042 (458,000) (458,000)
Other Intergovernmental 10,001,420 (667,000) (667,000)
Charges for Service 4,386,181 (377,000) (377,000)
Rents and Leases 4,483,002 92,000 92,000
Other Sources 7,162,550 214,877 214,877
Miscellaneous 9,760,555 TBD TBD
Resort Tax 21,865,440 TBD TBD
Golf Courses 6,551,800 (1,105,800) (1,105,800)
New/Enhanced Revenues - TBD TBD
TOTAL ,
Millage-Capital Renewal & Repl 2,218,974 TBD TBD
Merit and Step Salary Increases 102,502,142 3,075,481 3,075,481
Health Insurance-Active 9,017,128 901,713 901,713
Health Insurance -retiree 4,865,790 486,579 486,579
Pension -Police & Fire 19,497,889 3,156,162 3,156,162
Pension -General 7,896,519 2,843,838 2,843,838
Other Fringes 17,840,182 385,000 385,000
Internal Service Funds 26,116,216 588,000 588,000
Fuel 2,329,655 (768,000) (768,000)
Elections - 150,000 150,000
Citywide Accts 8~ Contingency 11,616,269 TBD TBD
Transfers to Capital 8,680,000 TBD TBD
Golf Courses 7,163,910 (798,910) (798,910)
All Other Costs 14,856,217 470,000 470,000
Preliminary CSL Budget ~ 234,600,891 a 245,856,788 S 245,856,788
Maintenance 8 Service of new projects coming 766,034 0 0
on line
GASB 45 (OPEB) - TBD TBD
11 % Emergency Reserve - TBD TBD
6% Contingency goal - TBD TBD
TOTAL 235,366,925 245,856,788 245,856,788
Over/ Under 5 0 3 13,762,786 S 23,968,391
This high-level projection was based primarily on trend analysis from prior years. Through
refinements to the projections, as each department carefully reviewed their detailed line item
Current Service Level proposed operating budgets, this gap was reduced to $19.2 million.
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 4
Major changes from the April projection included the following:
Revenue increases
• Gotf Course Revenues: $0.3 million
• Business Tax Receipts: $0.5 million
• Various Other $0.2 million
$1.0 million
Expenditure decreases
• Health insurance remaining at current levels $1.4 million
• Elimination of MBGC underground utilities debt (FY09 final pmt) $0.5 million
• Elimination of health insurance contingency $0.4 million
• Reduction in landscape maintenance and contingency $0.4 million
• More conservative projections in the Recreation Department $0.3 million
• Fire Department reductions, primarily in overtime and uniforms $0.2 million
• Multiple other reductions across all department line items $0.6 million
$3.8 million
To further reduce this gap, as with the preparation of budgets for the last two years,
departments were directed to analyze and present their budget from two perspectives:
The first was to once again review for potential efficiencies, reorganizations to reduce cost,
etc. without impacting services.
The second was to again perform a modified zero-based analysis of each department
budget, identifying potential service reduction alternatives versus core functions. For each
of the potential service reductions, departments provided the type of impact and the
magnitude of the impact. Core functions were defined as those functions which, if cut,
render it impossible for the department to provide basic service at a reasonable level.
DECISION-MAKING PROCESS
The budget development process has included participation from within and from outside City
Hall. In 2009, the City of Miami Beach conducted its third set of statistically-valid community
surveys. The Community Survey was designed to provide resident input on quality of life, city
services, and taxes; and to identify key drivers for improvement. Impressively, 31 of the
residential tracking questions from 2007 experienced increases in each of the areas measured
by an overall average of approximately 7.0%; and 28 of 32 business tracking questions
experienced increases measured by an overall average of approximately 8.8% with decreases
in only 4 of 32 questions and an average of only 0.63%. Further the 2009 Community surveys,
sought input from residents as to which services were most important to retain, which areas
were most important to improving public safety, and which services were key drivers of overall
satisfaction.
• Residents selected the following services as those the city should strive not to reduce:
• Cleanliness (64.1 %)
• Code enforcement (28.7%)
• Arts and Culture (24.2%)
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 5
• Both residents and businesses reported the following areas for the City to address in
an effort to improve public safety:
• Preventing crime (Residents: 44.9%, Business: 43.9%)
• Increasing police visibility (Residents: 32.4%, Business: 33.1 %)
• Other areas that were "negative drivers" of overall perception included:
• Code enforcement for residents and businesses
• Consistency of inspections for businesses
• Availability of parking for businesses
In May, the Commission held a two day retreat and began to consider the economic projection
and their impacts on the budget. Major economic revenue and expenditure drivers were
discussed and alternatives for long-term solutions were debated. In early July, a series of
budget briefings were held with the Finance and Citywide Projects Committee (FCWPC),
including a discussion of capital project priorities, potential revenue enhancements and impacts
of potential service level alternatives. These meetings were also attended by members of the
City's Budget Advisory Committee, unions, interested stakeholders, and the general public.
• Attachments A - D provide a summary of the efficiencies/reorganizations, service
reductions and revenue enhancements tentatively agreed to to-date to address the $19.2
million gap in the General Fund as well as similar tentative agreements in the City's Internal
and Enterprise Service Funds.
The downturn in the economy is anticipated to impact both property tax revenues as well as
pension costs for FY 2010/11 and likely further into the future. Therefore, rather than select
easy fixes for FY 2009/10 alone, the City continues to consider the long term financial
sustainability of the City, as the City will continue to be subject to constraints in at least the next
few years.
Despite these reductions, it is anticipated that the proposed budget will continue our focus on
providing "value of services for tax dollars paid" by continuing to provide services to the
community free of charge or at significantly reduced fees, including free arts and movies in the
parks, free access to pools and youth centers, reduced fee recreation programming, etc.
STATUTORY REQUIREMENTS
FS 200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be
used by all local government entities insetting millage (property tax) rates. Under the statute,
the City is required, within 35 days of receipt of the "Certification of Taxable Value" (received
July 1, 2009), to advise the Miami-Dade County Property Appraiser of the proposed general
operating millage rate, the calculated "rolled-back" rate and the date, time, and place of the first
public hearing to consider the proposed millage rates and tentative budgets for FY 2009/10.
The required Debt Service millage rate must also be set at the same time.
After setting the proposed operating millage rate, the Commission may, at any time prior
to the final adoption, lower the rates by adjusting priorities. Increasing the millage rate
may only be accomplished by an expensive mailing and advertising process to every
property owner on Miami Beach.
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 6
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2009, the City received the "2009 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is $24,694,916,494
including $1,782,256,132 in new construction. The preliminary 2009 value represents a
decrease of $2.204 billion or 8.2 percent over 2008's July 1 Certification of Taxable Value of
$26,898,698,386.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district decreased from $3,707,103,133 to $3,446,724,524, adecrease of
$260,378,609, or a 7.0 percent decrease in values over 2008 certified values. In addition,
assessed values within the geographic area formerly known as the South Pointe
redevelopment district decreased from $3,684,154,640, to $3,559,454,762, adecrease of
$124,699,878, or a 3.4 percent decrease in values over 2008 certified values. As a result,
taxable values in the areas outside the City Center RDA/South Pointe area decreased by 9.3
percent, from $19.507 billion to 17.689 billion, a decrease of $1.8 billion.
COMPARATIVE ASSESSED VALUES (in billions)
an.
Jan. 1 2008 Value (in Value (in Change from 2008
billions) billions) Value (Bud et)
so uy
2008 Final Value As of July 1
(For FY (For FY 2009 % Change
2008/09 2008/09 (For 2009/10 $ from Final
Budget) Projection) Budget) (in billions) % Value
RDA -City Center 3.7071 3.3591 3.4467 $ (0.2604) _7.0% 2.6%
South Pointe Area 3.6842 3.6502 3.5595 $ (0.1247) -3.4% -2.5%
General Fund 19.5074 18.8747 17.6887 $ (1.8187) -9.3% -6.3%
Total Citywide 26.8987 25.8840 24.6949 $ (2.2038) _g.2% -4.6%
DETERMINING THE OPERATING MILEAGE LEVY
The first building block in developing a municipal budget is the establishment of the value of
one mill of taxation, wherein the mill is defined as $1.00 of ad valorem tax for each $1,000 of
property value. For the City of Miami Beach, this value for each mill is determined by the 2009
Certification of Taxable Value and has been set at $24,694,916,494. Florida Statutes permit a
discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the
95 percent value of the mill is $23,460,170. The 95 percent value of 1 mill outside the City
Center RDA/South Pointe area is $17,138,899.
Impacts of Millage Roll-back
In FY 2008/09, the operating millage rate for general City operations was adopted at 5.6555.
Based on the July 1, 2009 Certification of Taxable Value, 5.6555 mills would generate
approximately $132,678,991 million in tax revenues, a decrease of $11,840,316 over current
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 7
year budgeted property tax revenues Citywide (General Fund, City Center RDA and the South
Pointe area). The General Fund properly tax revenues will decrease by $10.2 million,
precluding the City from absorbing normal increases in salary and fringes and other normal
increases due to inflation, and requiring significant reductions in current service levels.
The rollback rate is the millage rate required to produce the same level of Citywide property tax
revenues in FY 2009/10 as collected in FY 2008/09, thereby forgoing any revenues associated
with growth in assessed values. The rollback rate is calculated by dividing the prior year
property tax revenues by the current year property values, after new construction, major
improvements, annexations, deletions, and tax increment districts are removed from current
year property values. For FY 2009/10, the resulting Roll-Back Rate is 6.6107, 0.9552 mills
more than the millage rate adopted for FY 2008/09.
DETERMINING THE VOTED DEBT SERVICE MILEAGE LEVY
The general obligation debt service payment for FY 2009/10 is approximately $6.0 million,
reflecting a decrease of $42,613. Based on the July 1, 2009 Certified Taxable Value from the
Property Appraiser, these bonds would require the levy of a voted debt service millage of
0.2568 mills. This represents an increase of 0.0193 mills.
COMBINING THE OPERATING AND VOTED DEBT SERVICE MILEAGE LEVIES
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the
City of Miami Beach for FY 2008/09 (final) and FY 2009/10 (preliminary) including RDA. It is
recommended that in the General Fund, 0.1083 mills of the total operating millage be dedicated
to renewal and replacement, resulting in $2.027 million in renewal and replacement funding.
Cit
f Mi
i B
h Mill
R
t FY 08/09 ~ FY 09110 Incl(Dec) % Inc/(Dec)
y o
am
eac
age
a
es
_. ~
Operating _
5.5472 _
5.5472
0.0000 ~
0.0%
Capital Renewal & Replacement 0.1083 0.1083 0.0000 _ 0.0%
Voted Debt Service __
____,...,_,~_~ 0.2375, 0.2568 0.0193 8.1%
Total 5.8930 5.9123 0.0193 ~ 0.3%
If these recommended millage rates are tentatively adopted, then the City of Miami Beach's
total operating millage will remain unchanged as compared to the current year, and the voted
debt service millage will increase by 0.0193 mills.
COMBINING JURISDICTIONAL OPERATING AND DEBT SERVICE MILEAGE LEVIES
City of Miami Beach property owners must also pay property taxes to Miami-Dade County, the
Miami-Dade County School Board, the Children's Trust, the South Florida Water Management
District, and the Florida Inland Navigation District.
Based on the FY 2009/10 Proposed Budget for Miami-Dade County released on July 15, 2009,
the countywide tax rate is proposed to increase from 4.8379 mills to 4.9201 mills; the library tax
rate is proposed to decrease from 0.3822 mills to 0.2570 mills; and the debt service millage is
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 8
proposed to increase from 0.2850 to 0.3900. Proposed tax rates for other jurisdictions are
unavailable at this time and are shown as unchanged.
Using tax rates known at this time, the changes in tax rates are estimated as follows:
Y 08109
OVERL
P
G
X MILEAGE
i
FY 09/10
%
Incl(Dec) 'Inc/(Dec) Of
Total
Mills
A
PIN
TA
_...~.. __..~ ...._. .__~ ..._ ....
N:
~_~ ~ ~ .__
~
,
City of Miami Beach Millage Rates
Operating __ f
_
5.5472 ~
,
;
_
5.5472
_
~ 0.0000 ~ 3
~
Capital Renewal & Replacement 0.1083 0.1083 0.0000
Debt Service 0.2375 0.2568 0.0193
Total 5.8930 5.9123 0.0193; 0.3% 29%
. . ~
Miami Dade County _ ._..___.___V_______
..~.~..
i .....__.
Countywide _
~ 4.8379 4.9201 0.0822
Library _
.~. ~,.e.~~~~.~,.4~.a....~. 0.3822=
_ 0.2570 -0.1252
~
Debt Service
~ __..
,
0.2850 ~
0.3900
0.1050' _
Subtotal 5.5051' 5.5671 0.0620€ 1.1%j 27%
~~
School Board ~_w~
Children's Trust
Other
~~
~_.~_
~~. ~.~ P~.
7.9480`
0.4212
0.6585(
_~..___
7.9480
0.4212
0.6585 i
~W0.0~~~
0.0000
0.0000`
0.0%~
0.0%
0.0%
__
~ 39%
2%
3%
Total 20.4258 20.5071 0.0813= 0.4% 100%
In FY 2008/09, the Miami Beach portion of the total tax bill was 29 percent. With the
recommended millage rates for FY 2009/10, the Miami Beach portion of the tax bill be
maintained at 29 percent based on tax rates known at this time.
COMBINED MILEAGE LEVY IMPACT ON PROPERTY OWNERS
Homesteaded Properties
Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the
increase in assessed value of homesteaded property to the percentage increase in the
consumer price index (CPI) or three percent (3%), whichever is less. For 2008, the CPI has
been determined to be 0.1 percent and therefore, the increase is capped at 0.1 % for increased
values as of January 1, 2009. However, given the downturn in the market, the average
homesteaded property value in Miami Beach declined. Based on information from the Miami-
Dade County Property Appraiser, the taxable value of the average homesteaded in Miami
Beach as of January 1, 2008 was $297,281. As of January 1, 2009, the average taxable value
for homesteaded property had declined to $282,801, a decline of 4.9%. It would be anticipated
that more recently purchased properties would have experienced a greater decline, while
longer term homesteaded properties may have experienced the 0.1 % increase.
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 9
Non-Homesteaded Properties
Non Homesteaded properties would have experienced a more significant decline. The average
taxable value for all residential properties (both homesteaded and non-homesteaded declined
from $360,895 to $328,557, a decline of 9%. Given that the change in taxable value for all
existing properties was 14.8 percent, it can be imputed that the decline in commercial
properties was even greater.
Property Tax Changes
The following table provides examples of changes in property taxes as a result of these
declines in values.
PROPERTY TAX CHANGES
Residential Other
Homesteaded All Example 1 Exam le 2
FY 2008/09 Taxable Value (as of January 1 2008) $ 297,281 $ 360,895 $ 500,000 $ 1,000,000
2008 Taxes
City of Miami Beach
Operating $ 1,681 $ 2,041 $ 2,828 $ 5,656
Voted Debt 71 86 119 238
Total Miami Beach $ 1,752 $ 2,127 $ 2,947 $ 5,894
Miami Dade County 1,637 1,987 2,753 5,505
Schools 2,318 2,814 3,899 7,797
Other 321 390 540 1,080
Total $ 6,028 $ 7,318 $ 10,139 $ 20,276
Chan a -4.9% -9.0% -14.8% -14.8%
FY 2009/10 Taxable Value (as of January 1 2009) $ 282,801 $ 328,557 $ 426,000 $ 852,000
2009 Taxes @ Proposed Tax Rates
City of Miami Beach
Operating $ 1,599 $ 1,858 $ 2,409 $ 4,818
Voted Debt 73 84 109 219
Total Miami Beach $ 1,672 $ 1,942 $ 2,518 $ 5,037
Miami Dade County 1,574 1,829 2,372 4,743
Schools 2,205 2,562 3,322 6,643
Other 305 355 460 920
Total $ 5,756 $ 6,688 $ 8,672 $ 17,343
$ Change in Taxes
City of Miami Beach
Operating $ (82) $ (183) $ (419) $ (838)
Voted Debt 2 2 10 19
Total Miami Beach $ 80 $ 185 $ 429 $ 857
Miami Dade County (63) (158) (381) (762)
Schools (113) (252) (577) (1,154)
Other 16 35 80 160
Total $ 272 $ (630 $ 1,467 $ 2,933
" Source: Miami-Dade Coun Pro e A raiser
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 10
ADDRESSING THE GAP
Based on direction provided by the Finance and Citywide Projects Committee meetings
between July 6 and July 9, 2009, approximately $12.5 million in General Fund expenditure
reductions have been identified (in addition to the $27.7 million in reductions over the last 2
years). Further, an additional $3.3 million in potential revenue enhancements have been
identified.
Gap with July 1 Certified Tax Roll $ (23,968,391)
Revised CSL Expenditure Estimate of $242 million $ 3,800,000
Potential Revised CSL Revenue Estimate of $223 million 1,000,000
Jul 7 "Workin Gap" with Jul 1 Certified Tax Roll $ 19,168,391
Cost Cutting/Efficiencies, Reorganizations, Reallocations, etc. $ 1,382,701
Reductions in Structural Budget Components -Minimal Impact 7,590,267
Service Adjustments 2,830,982
Additional Structural Budget Components -Reduction 100,000
Impacts of Internal Service Adjustments -estimated at 60% 609,529
Subtotal $ 12,513,479
Potential Revenue Enhancements
Increase Resort Tax Contribution $ 600,000
Redlight Camera Revenues $ 1,000,000
Pursue Collections for non-Payment of Rescue Fees
Non-Residents TBD
Residents TBD
Non-Property Tax Enhancements $ 205,815
Restructure Building Development Process Fees -revisit annually 1,539,000
Subtotal $ 3,344,815
Employee "Give Backs"
Eliminate FY 2009/10 Merits and Steps $ 1,537,741
Implement Commission Recommendations re Class & Comp 50,000
Increased Employee Pension Contribution (2%) 2,110,043
Subtotal $ 3,697,784
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 11
In balancing the proposed budget that will be released in the next month, it is anticipated that
additional refinements will be incorporated to ensure that revenues match expenditures,
including the following:
• Refining resort tax revenue estimates to reflect reduced revenues from the FY 2008/09
budget -this results in revenues similar to the FY 2007/08 level but less than the FY
2008/09 budget;
• Refining administrative and management fees paid bynon-General Fund departments for
support services provided by the General Fund based on finalizing non-General Fund
budgets;
• Finalizing the Building Development Process Fee study refining the estimated General
Fund revenue impacts from resulting proposed fee schedules; and
• Incorporating further potential savings from service level adjustments and revenue
enhancements on which the administration has been directed to bring back to the Finance
and Citywide Projects meeting on July 21, 2009:
o Revising the City's minimum staffing ordinance for the Fire Department, to provide the
Fire Chief with the discretion to go below the 44 minimum staffing positions to 42 in
periods of high unanticipated leave usage as the Chief deems appropriate
o Maintaining 8 hour days, five days a week for all lifeguards year round and providing
flexibility of the hours of service by lifeguards during low utilization periods and locations
o Re-spacing lifeguard stands and reducing the total number of lifeguard stands
o Reductions to funding of various Citywide accounts
o Increased sidewalk fee revenues;
o Potential revenues from Collection of Fire Rescue Fees.
It is also important to note that it is assumed that the Proposed Operating Budget will
Incorporate "Give-backs" from employees, including elimination of salary step and merit
increases for eligible employees and increased pension contributions.
It should be noted that all potential employee "Give-backs" will require collective bargaining with
our five bargaining units. Each union president has acknowledged the economic reality and the
City's financial circumstances, and has expressed a willingness to assist in developing
appropriate solutions. The likelihood that formal agreements on these issues will be in place in
advance of the September meetings to adopt the budget is remote. Therefore, by setting the
millage rates as herein proposed, the City is making certain assumptions on the employee
"Give-backs" based on good faith comments made by bargaining unit representatives. Should
they not materialize, for whatever reason, the City will need to identify alternate, commensurate
revenue and/or expenditure adjustments to ensure a balanced budget by the end of the fiscal
year.
FIRST PUBLIC HEARING
The first public hearing on the proposed millage rates and tentative budgets for FY 2009/10
must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd)
from the start of the TRIM ("Truth In Millage") calendar (July 1st). Other guidelines are: 1) the
public hearing cannot be scheduled on a Sunday or on those days utilized by Miami-Dade
County or the Miami-Dade County School Board for their public hearings; and 2) if on a day
other than Saturday, the public hearing must be after 5:00 P.M.
FY 2009/10 Proposed Millage Rate
July 22, 2009
Page 12
Based on these guidelines, the first hearing must be held between September 3rd and
September 18th. These dates are unavailable for the following reasons:
September 6 and 13 Sundays
September 3 and 17 Proposed dates for Miami-Dade County Public
Hearings
September 9 Miami-Dade County School Board Public
Hearing
Of the remaining days, it is recommended that the first public hearing be set for Thursday,
September 10, 2009 at 5:01 P.M., in the City Commission Chambers, City Hall, 1700
Convention Center Drive, Miami Beach, Florida.
JMG:KGB
- _ _____
ATTACHMENT A -SUMMARY OF EFFICIENCIES REORGANIZATIONS ETC. AND POTENTIAL SERVICE REDUCTIONS
2-Year Prior Reductions FY 2008110 Bud et Poskion Im acts
S Im Cts
POS FY 2008/09
Ado ed Bud et
CSL Bud et Efficiency
Reo .Etc. Potential Service
Reductions
Total Full
Time Part
Time Proj.
Vac.
Filled Mgt b
Admin Non
M % of
CSL
General Fund
Ma or & Commission $ 47 000 -1.0 $ 1461 678 $ 1 470 999 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0 0.0%
C' Mana er $ 247 555 -2.0 $ 2 351 552 $ 2 404 279 $ $ 85 450 $ 85 450 -1.0 0.0 0.0 -1.0 -1.0 0.0 3.6
Communications $ 314 232 -3.0 $ 1 084 579 $ 1,026,423 $ $ 53 627 $ 53 627 -1.0 0.0 -1.0 0.0 -1.0 0.0 5.2%
OBPI $ 223 058 -2.0 $ 1 991 966 $ 1 911 909 $ $ 75 391 $ 75 391 -1.0 0.0 0.0 -1.0 -1.0 0.0 3.9%
Finance $ 588 321 -10.0 $ 4 216 476 $ 4 246 307 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Procurement $ 82 017 -1.00 $ 919 616 $ 926 502 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0 0.0%
Human ResourceslLabor Relations $ 292 568 -3.5 $ 1868 568 $ 1 910 709 $ 36 606 $ 84 568 $ 121 t74 -2.0 1.0 -2.0 0.0 -2.0 0.0 6.3%
Ci Clerk $ 64 773 -1.0 $ 1561 692 $ 1 593 188 $ $ 15126 $ 15126 -0.4 0.0 0.0 -0.4 -0.4 0.0 0.9%
Ci Attome $ 314 493 -2.0 $ 4 263 893 $ 4365 512 $ $ 107 869 $ 107 869 -1.0 0.0 0.0 -1.0 -1.0 0.0 2.5%
Real Estate Housin 8 Commun' Dev $ 130 649 -2.0 $ 1 619642 $ 1 686 853 $ $ 85 263 $ 85 263 -1.0 1.0 0.0 -1.0 -1.0 0.0 5.1 %
Buitdin $ 150 000 0.0 $ 8990 621 $ 9 283 347 $ 372 072 $ 79 093 $ 451 165 -15.0 0.0 -5.0 -10.0 -3.0 -12.0 4.9%
Plannin $ 254 146 -3.0 $ 3127 421 $ 3 027 382 $ - $ $ 0.0 0.0 0.0 0.0 0.0 0.0 0.0%
TCD $ 408 033 -2.0 $ 2968 414 $ 2941 991 $ $ 108 695 $ 108 695 -1.0 1.0 0.0 -1.0 0.0 -1.0 3.7%
Code Com liance Nei boyhood Svcs $ 778 042 -9.0 $ 4 237 038 $ 4 423 478 $ $ 65 784 $ 65 784 -1.0 0.0 0.0 -1.0 -1.0 0.0 1.5%
Commun' Services $ - 0.0 $ 441 561 $ 456 691 $ 41 173 $ 41 173 -1.0 0.0 -1.0 0.0 -1.0 0.0 9.0%
Parks & Recreatlon $ 1 857 953 -31.0 $ 31 045 463 $ 29 683 052 $ 245440 $ 390 154 $ 635 594 -13.0 0.0 -13.0 0.0 0.0 -13.0 2.1 %
Public Works $ 1080 840 -10.5 $ 6 513 259 $ 6 771 145 $ 130 813 $ $ 130 813 -3.0 0.0 -1.0 -2.0 0.0 3.0 1.9%
CIP $ 33 990 0.0 $ 3 578 721 $ 3 678 077 $ 40 027 $ 10000 $ 30 027 1.0 0.0 0.0 1.0 0.0 1.0 -0.8%
Police $ 3 226 585 -39.0 $ 80 798 978 $ 82,086 679 $ 627 797 $ 953 627 $ 1581 424 -21.0 0.0 -2.0 -19.0 -8.0 -13.0 1.9%
Fire $ 1 592 419 -3.0 $ 49 790 544 $ 49 765 365 $ $ 660163 $ 660163 F.0 0.0 5.0 -1.0 -2.0 -0.0 1.3%
C' 'de $ 1 231 000 0.0 $ 11 616 269 $ 11 625340 $ 10 000 $ 15000 $ 25 000 0.0 0.0 0.0 0.0 0.0 0.0 0.2%
$ $
Subtotal f 12 919 675 -125.0 E 224 467 951 f 225 285 228 f 1382 701 f 2 830 882 f 4 213683 -67.4 3.0 -30.0 -37.4 -22.4 -45.0 1.9%
Transfers
Ca hal Reserve
$ -
$ 2 500 000
$ 2500 000
$ 2 500 000
$ 2 500 000
100.0
Pa -OwYou-Go Ca kal
IMO 8: Comm. Tech Fund $ 3 000 000
$ 300 000 $ 4 500 000
$ 1 100 000 $ 4500 000
$ 1 100 000 $ 4 500 000
$ 300 000 $ -
$ $ 4 500 000
$ 300 000 100,Oo~
27.3%
Ca kal Investment U ee Acct
Renewal and Re lacement Fund $ 1 420 000
$ 864 262 $ 560 000
$ 2 218 974 $ 580 000
$ 2 218 974 $ 98 000
$ 192 267 $ 100 000
$ $ 198 000
$ 192 267 34,1 %
g.7°/,
Homeowners DlvWend $ 4900 000 $ $ $ $
Transfer to Rlsk Fund $ 1 000 000 $ $ $ g
Transfer to 11% Reserve $ 3 338 419 $ $ $ g
IMemal Servce Fund Ad ustmeM $ - $
Pension Ad ustment $ - $ 5 829 254 $
Nealth Insurance Ad tmeM $ - $
Em to ee trams
Eliminate FY 10 Merits and Ste s $ 1 537 741 $ 1 537 741
Increase nsion contribution b 2% $ 2 110043 $ 2 110043
Total General Fund S 27 742 356 -125.0 f 235 368 925 f 242 013466 S 8 972 968 f 6 578 766 S 15 551 734 -67.4 3.0 -30.0 -37.4 -22.4 j5.0 6.4%
Intamal Service Funds
IMormadon Technolo $ 948 148 -5.0 $ 13 799 605 $ 14 350 752 $ - $ 238 432 $ 238 432 -2.0 0.0 0.0 -2.0 0.0 -2.0
Risk Mana ement $ 325443 -0.5 $ 17 704 575 $ 17 695 708 $ - $ - $ 0.0 0.0 0.0 0.0 0.0 0.0
Central Services $ 15 137 0.0 $ 855 411 $ 837 744 $ - $ 66 927 $ 66 927 -1.6 0.0 0.0 -1.6 -0.6 -1.0
Pro Mana ement
Fleet Mana ement
Pension Ad~ustment
Total IMemal Service Funds $ 447 045
$ 98 940
S 1834 713 -7.0 $ 9 499118
-1.0 $ 8 704 379
-13.5 f 60 563 088 $ 8 959 904
$ 8 813996
$ 247 434
S 50 658104 $ 547 581
$ -
f 647 581 $ 162 943
$ -
f 468 302 $ 710 524
$
f 1 015 883 -13.0
0.0
•16.6 0.0
0.0
0.0 ~.0
0.0
-4.0 -9.0
0.0
-12.6 -1.0
0.0
-1.8 -12.0
0.0
-15.0
TOTALS 29 577 069 -138.5 S 285 930 013 f 292 671 560 E 9 520 b49 S 7047 068 S 16 567 617 -84.0 3.0 -34.0 -60.0 -24.0 -60.0
as of 7/07/09 FCWPC
ATTACHMENT B -POSITIVE IMPACT OR MINIMAL SERVICE IMPACT EFFICIENCIES, REORGANIZATIONS, ETC.
Position Im acts
Cumulative Full Part Proj. Mgt & Non
GENERAL FUND Im act De t. Im ct Time Time Vacant Filled Admin M t.
Police
Eliminate position in Patrol Division (Salary, Medicare, Health Insurance).
Minimal or no impact as this was an over-promotion due to the settlement
of a lawsuit. $ 100,722 $ 100,722 -1.0 -1.0 -1.0
Civilianize Sergeant position in Property 8 Evidence Unit and replace with
Property ~ Evidence Supervisor @ 1 grade above Property & Evidence
Tech II $ 59,297 $ 160,019 0.0
Civlianize IT Coordinator position currently filled by Officer (Entails
eliminating a Police Officer position) and replace with Information Tech I .
Additional savings per year in Pension costs of $28,521.88 (55.32% for
sworn) and $12,770.83 (25.2°~ for non-sworn) are $15,751.05. Calculating
over 10 years, the savings would total $157,510.50.
$ 893 $ 160,912 0.0
Replace 2 sworn Police Officer positions in Backgrounds with 1 Civilian
Investigator (~ OAV level $1,793.77 biweekly)~liminate 2 officers
(Salaries Medicare, Health Insurance)
$ 62,297 $ 223,209 -1.0 -1.0 -1.0
Eliminate Security Coordinator position (Salary, Medicare, Health
Insurance) This position oversees the city-wide security contract. It
ensures that the contractor is providing the services as required by the
contract and handles any complaints and issues relating to that service.
This function will be assumed by a Sergeant who is responsible for the
Telestaff function. This may result in less oversight, possible decrease in
performance and increased dissatisfaction with the security guards.
$ 52,320 $ 275,529 -1.0 -1.0 -1.0
Eliminate Overtime Community Skate Patrol -will attempt to staff with on-
duty services
$ 4,295 $ 279,824 0.0
Eliminate Instructor Pay of 2.5% -Provision sunsets in the current contract
on 9/30/2009 $ 78,324 $ 358,148 0.0
Eliminate Special Event Response Pay @ 5%-Provision sunsets in the
curcent contract on 9/30/2009
$ 178,896
$ 537,044
0.0
Eliminate 1 Sergeant in the Internal Affairs Division (Salaries, Medicare,
Health Insurance)-This sergeant serves as an administrative role and
handles all phone complaints received by the unit. This will result in a 20%
increase workload for the remaining investigators. This may jeopardize
some internal investigations that may not be completed within the state
mandated 180 day rule. $ 90,753 $ 627,797 -1.0 -1.0 -1.0
Parks and Recreation
Eliminate 2 Full Time MSW 2 Position (plus benefits); one at Flamingo
Park and one at Normand Isle Park. $77,038 $77,038 -2.0 -2.0 -2.0
Eliminate 1 Full Time Office Associate 3 Position lus benefits at NSPYC $34,788 $111,826 -1.0 -1.0 -1.0
Eliminate two (2) vacant Municipal Service Worker Trainee positions.
Staffing Imuact:
Two (2) Full Time -Municipal Service Worker Trainee = $24,960 x 2 =
$49,920 (plus benefits)
OVERALL TOTAL SAVINGS - 9 920 $49,920 $161,746 -2.0 -2.0 -2.0
Reduction of South Pointe Park Staffing to offset cost of contracting full-
service landscape maintenance of the park.
Staffing Imuact:
Two (2) Full Time -Municipal Service Worker I's - $27,118 x 2 =
$54,236 (plus benefits)
Two (2) Full Time -Municipal Service Worker II's - $29,458 x 2 =
$29,458 (plus benefits)
OVERALL TOTAL SAVINGS - 83 694 $83,694 $245,440 -4.0 -4.0 -4.0
Public Works
Engineering -Eliminate GF CEIII position. (to be funded by Stormwater
Fund in FY10 $ 77,664 $ 77,664 -1.0 -1.0 -1.0
Streets and Streetlighting -Eliminate two (2) Electrician positions currently
filled. In eliminating the two positions, PW will contract construction
services. $ 53,149 $130,813 -2.0 -2.0 -2.0
Position Im acts
Cumulative Full Part Proj. Mgt.B Non
GENERAL FUND Im ct De t. Im act Time Time Vacant Filled Admin M t.
CIP
Other Contractual Services -Based on historical use, there should not be
any impact to the service level of mailings currently utilized in the
De artment. $40,000 $ 40,000
Capital Projects Coordinator moved from Property Management to CIP
and offset by Renewal and Replacement Funding -All Renewal &
Re lacement ro~ects will move to CIP. $ 80,027 $ 40,027 1.0 1.0 1.0
Building
IMPLEMENTATION OF OUTSOURCE CALL CENTER. The
implementation of the outsource call center will require an increase in of
$130,000 in outside contractual services and the elimination of two
positions currently involved in answering call in-house. The two positions
include a Office Associate IV and a Clerk Typist. The Clerk Typist will be
utilized as a greeter and a vacant Permit Clerk position will be eliminated in
its lace. $ - $ - -2.0 -2.0 -2.0
AUTOMATION OF RECORDS MANAGEMENT FUNCTION. With the
automation of the records management function, the staffing required to
support this function will be reduced from 4 to 3, thereby eliminating a
Clerk osition in that unit. $ 43,162 $ 43,162 -1.0 -1.0 -1.0
RE-STRUCTURE ELEVATOR FUNCTIONS. Eliminate one vacant
Elevator Inspector and contract out annual inspections and witnessing test
at a lower total cost. This will also provide the flexibility to catch-up and
sta current with elevator ins ections. $ 13,200 $ 56,362 -1.0 -1.0 -1.0
ADJUSTMENT OF RESOURCES TO MATCH DEMAND LEVELS. Based
on a standard of 15 inspections per day and the level of inspections as of
February 2009, we are recommending to eliminate four vacant positions
without any degradation on the level of services provided to our customer.
This work is currently being conducted by outside contracted staff. The
four positions include two building inspectors, one Senior Mechanical
Ins ector, and one Senior Plumbin Ins ector. $ 295,695 $ 352,057 -4.0 -4.0 ~.0
DEVELOPMENT SERVICES COORDINATOR -The scope of the position
will be modified to handle the administrative and support functions of the
permitting area and the position will be replaced with a tower level
professional position. The Permit Clerk Its report directly to the Assistant
Director for Su ort Services. $ 20,015 $ 372,072 0
Human Resources/Labor Relations
Replace existing HR Specialist position (Testing) with apart-time (24 hours
per week) entry level Office Associate III (paid at a straight hourly wage
with no benefits other than FICA Alternative (457)) in order to provide more
administrative support to Employee Relations which currently only has one
employee with a large workload.
$ 36,606 $ 36,606 -1.0 1.0 -1.0 -1.0
Ci ide
Reduce tuition reimbursement budget to level of prior year actuals $ 10,000 $ 10,000
Total General Fund Without Trans rs 1, ,7 1 1,382,701 - 4.0 -16.0 -8.0 -5. -1 .0
Position Im acts
Cumulative Full Part Proj. Mgt.B Non
INTERNAL SERVICE FUNDS Im act De t. Im act Time Time Vacant Filled Admin M t.
Pro a Mana ement
Reduce 1 vacant Carpenter position -Position has been vacant for 6
months or more without si nificant im act. $ 59,164 $ 59,164 -1.0 -1.0 -1.0
Eliminate 1 vacant A/C Mechanic position - Position has been vacant for 6
months or more without si nificant im act $ 76,384 $ 135,548 -1.0 -1.0 -1.0
Eliminate 1 vacant MSW III position -Position has been vacant for 6
months or more without si nificant im act. $ 41,119 $ 176,667 -1.0 -1.0 -1.0
Reduce One Electrician Q $64,582. Increase response time for electrical
situations occuring daily within the City. Increased backlog of electrical
workorders. Two Temporary Electricians @ $25.94 per hour be acquired at
a cost of $53,955.(2 ~ 1,080 hours $25.94per hr). $ 10,627 $ 187,294 -1.0 -1.0 -1.0
Eliminate two Painters ~ $105,569. Increased response time to remove
graffiti and regular maintenance and repairs. 4 Contract Painters would be
acquired for 20 hrs per week at a cost of 52 834. (1,080 Estimated hrs
x$12.23 per hr x 4) $ 52,735 $ 240,029 -2.0 -2.0 -2.0
Move Capital Projects Coordinator to CIP and eliminate 2 Construction
Managers and 1 Planning Technician -All Renewal & Replacement
ro'ects will move to CIP. $ 307,552 $ 547,581 -4.0 -4.0 -4.0
Total Internal Services Funds $ 547,581 $ 547,581 -10.0 -3.0 -7.0 0.0 -10.0
ENTERPRISE FUNDS
Im ct Cumulative
De t. Im act Full
Time Part
Time
Vacant
Filled Mgt. B
Admin Non
M t.
Sewer
Eliminate one 1 Sewer Pi efitter and 3 MSW Its $ 125,330 $ 125,330 -4.0 -4.0 -4.0
Water
Eliminate one (1) HEO I, two (2) water pipefitters, one MSW I, and one (1)
Field Ins ector
$ 205,488
$ 205,488
-5.0
-5.0
-5.0
stormwater
imina a pecia role s oor ina or osi ion an rep ace wi
position. (transferred from Public Works Engineering in FY10) -New SW
CEIII to absorb stormwater duties (ERU coordination and stormwater
desi n
23,972
z3,s~2
.0
Total Ente rise Funds $ 354,790 $ 354,790 -9.0 -9.0 0.0 0.0 -9.0
ni ~rtinu ei Teouenvec
n~~nvnmcn, - - - - ---
Position Im ets
Cumulative
Department Full Part Proj. Mgt & Non
I m act I m act Time Time Vacant Filled Admin M t.
GENERAL FUND
Police
Eliminate 50°k of funding for Police Officer who works with the Police Athletic
League (PAL) and bill PAL for this funding (Salary, Medicare, Health Insurance). This
will reduce the PAL's revenue which is used for programming for underpriviliged
youth programs throughout the Ctty. $ 49,574 $ 49 574
Eliminate 2 Sgts. as part of CALEA (Salaries, Medicare, Health Insurance, Overtime)
Elimination of these two sergeants posttions will have minimal impact if CALEA
reaaccreditation is no longer sough. Our hope is that we will be able to maintain
State Accreditation at a minimum. $ 193 951 $ 243 525 -2.0 -2.0 -2.0
Eliminate 4 Public Safety Specialist positions (Salary, Medicare, Health Insurance}
These positions serve as PSS on the street relieving police officers from routine
report type calls. This will result in officers handling more report calls allowing less
time for proactive policing.
$ 196 093
$ 439 618
-4.0
-4.0
-4.0
Reduce Citywide contracted security contingency -Department may nd be able to
respond to requests that develop throughout the year $ 50 000 $ 469 618
Eliminate 2 vacant Police Officers (Salaries, Medicare, Health Insurance)-The two
police officer positions are currently vacant and will not be replaced. We will
experience more OT due to daily staffing goals.
$ 114,611 $ 604 229 -2.0 -2.0 -2.0
Eliminate 1 PaVOI Police Officer (Patrol, Records ConVol Center- Day shift only).
Replace this sworn officer with one of the remaining PSS's. Customer service will
still be provided, however the quality of the service will not be at the same level.
$ 57306 $ 661535 -t.0 -1.0 -1.0
Eliminate 1 Police Firearms Specialist (Salary, Medicare, Health Insurance)- This
position is one of two in the department. The other position is a Police Sergeant.
This will require the police sergeant to oversee and conduct all firearms related
Veining, qualifications, and repairs to weapons. It is a loss of 50°h of the productivity
in this function in a hi h liabil' area. $ 88,035 $ 749,570 -1.0 -1.0 -1.0
Technical. Eliminate remaining 1 civilian position used for State accreditation -
Departmentwould try to pursue Accreditation status with remaining resources.
$ 42,907 $ 792 477 -1.0 -1.0 -1.0
Technical. Eliminate one AdministraVative Aide II (Technical Services/Records Unit)
This position acts as a back-up to the Records Supervisor in the unit. Quality
assurance checks will be eliminated. All remaining employees will report to the
remaining Records Supervisor. Until the final implementation of the CAD/RMS/FBR
project this reduction will severely impact the operations of the Records Untt.(Hatt to
reflect elimination of the positions mid-year (assuming implementation of RMS field
reporting by that time. ). $ 32,299 $ 824,776 -1.0 -1.0 -1.0
Technical. Eliminate two (2) Records Technician (Technical Services/Records Unit)
Until CAD/RMS is fully deployed, there will be an increase delay in Public Records
request from media, City Legal, public and Courts. Until the final implementation o
the CAD/RMS/FBR project this reduction will severely impact the operations of the
Records Untt.(Half to reflect elimination of the positions mid-year (assuming
implementation of RMS field reporting by that time.). $ 48,440 $ 873 216 -2.0 -2.0 -2.0
Technical. Eliminate three (3) Data Entry Clerk positions (Technical Services/
Records Unft) Until CAO/RMS is fully deployed, cannot meet current KPI of data
entry within 10 days. Retrieval of investigative information will be impacted. Unti l
the final implementation of the CAD/RMS/FBR project this reduction will severely
impact the operations of the Records Untt.(Hatt to reflect elimination of the posttions
mid-year (assuming implementation of RMS field reporting by that time. ). $ 80,411 $ 953 627 -3.0 -3.0 -3.0
Fire
Reduce the Overtime Budgets (1210,1220) by amending the minimum staffing
ordinance to allow staffing levels to 42 personnel when there are more than 3
unscheduled absences at the start of the shift. Note:There are no reductions to the
number of firefighters assigned to shifts. Projection based on 06/07, 07108 and 08/09
OT costs for 43rd and 44th person and shift strength of 184 (the same as the last
three F . $425 799 PENDING $
Freeze Assistant Fire Marshal sttion $ 103,351 $ 103,351 -1.0 -1.0 -1.0
Transfer three FFI from the FPB (1230) to Suppression (1210) and hire three (3) less
FFI's replacing retiring FFI in January 2010. Note: Costs include salary, FICA,
uniforms and ui ment and costs for hirtn ainin $ 282,958 $ 386 309 -3.0 -3.0 -3.0
Reduce 1210 1220 1230 Overtime for Fire Certification Trainin $ 100 000 $ 486 309
Eliminate one Civilian Fire Inspector from Existing Construction section. Note: With
the transfer of the 3 FFIs from the FPB back to shut, this elimination will leave
sung levels sufficient to only inspect merchantile, office and hotel occupancies to
once eve two ears. $ 48,516 $ 534,825 -1.0 -1.0 -1.0
Position Im act s
Cumulative
Department Full Part Prof. Mgt 8 Non
Im act Im act Time Time Vacant Filled Admin M t.
Fire Ocean Rescue
Eliminate D/C of Ocean Rescue and replace with Administrative professional to
assist wtth Internal Affairs QA and efficient measures. $ 60 338 $ 595,163 -1.0 -1.0 -1.0
Change the Ocean Rescue Division schedule to 5/8s on a year round schedule
reduces seasonal salaries - $400 000 PENDING $ 595 163
Eliminate Three (3) Lifeguard Towers (1 L2 and six L1'S) Note; The cost per
lifeguard tower of $182,828 is the total of personnel costs and operating costs less
the Overtime and seasonal If aurd line items in the BBD sheet. $547 844 PENDING $ 595 163
Reduce ORD OT by half (reduces the ability to remain after hours when the beaches
are crowded $ 65 000 $ 660,163
Code Compliance
Eliminate Code AdminisVative Aide II: The posttion handles payroll, research
requests, public records requests and allows clerical to concerKrate on processing
code cases. This will cause a delay in processing record requests and code cases.
(salary and fringes, minus pension)
$ 65,784
$ 65,784
-1.0
-1.0
-1.0
' $ 65,784 0.0
Office of Community Services
Eliminate Otfice Associate 3; this posttion is currently vacant and provides support
for youth and elder services by assisting with intakes, referrals and programming
everts. The elimination of this position will impact our ability to offer support to the
Youth Empowerment Network and the Miami Beach Service Partnership as well as
the s with which walk-in clients are served. $ 41,173 $ 41,173 -1.0 -1.0 -1.0
Parks 8 Recreation
Eliminate 1 Full Time Customer Service Representative Position (plus benefits) at
Normandy Isle Park.
Im°act: Elimination of this posttion reduces the long term plan to increase our
customer service standards within the De artment. $32,032 $32,032 -1.0 -1.0 -1.0
Keep 2 major outside summer field trip per participant; eliminate the rental of 4
summer buses and 1 major outside summer field trip.
Currently, the Department rents 9 buses (Q1 $100,000 and spends $109,000 on 3
field trips to outside vendors, 2 trips to the SRYC Ice Rink, 15 trips to a City Pool, 24
tournaments at a City Facility/Park plus the Bonus Trip. Each site will conduct a
variety of small scale special events to compensate for the reduction in major field
trips.
Ism pact: The elimination of the bus rentals & field trips will result in campers not
participating in 1 high cost trip such as Boomers, Gameworks, Rapids, etc. This is a
$99,000 reduction with no staffin impact. $99,000 $131,032
Keep 1 major outside summer field trip per participant; eliminate the rental of 6
summer buses and 2 major outside summer field trips.
Currently, the Department rents 9 buses (~ $100,000 and spends $109,000 on 3
field trips to outside vendors, 2 trips to the SRYC Ice Rink, 15 trips to a City Pool, 24
tournaments at a City Facility/Park plus the Bonus Trip. Each site will conduct a
variety of small scale special events to compensate for the reduction in major field
trips.
Imoad: The elimination of the bus rentals & field trips will result in campers not
participating in 2 high cost trips such as Boomers, Gameworks, Rapids, etc. This is a
$149,000 reduction with no sta/fing impact. Must Delete Above line item ($99,000)
as well as this one ($50,000 to amount to the $149,000 reduction. $50,000 $181,032
Eliminate 1 Full Time Assistant Ice Rink Manager (plus benefts) at the Scott Rakow
Youth Center.
Im act: Reduction of overta covers a in the ice rink. $47,292 $228,324 -1.0 -1.0 -1.0
Reduce the Recreation Review from 3 to 2 issues yearly. Currently the Dept. prints
65,000 and mails to 57,000 homes, with the proposed reduction the Dept. will now
only print 12,000 issues 2 x a year and mail to only 8,000 homes.
Imp~t. Less advertising to our residents about available programs may reduce
rticipation. $68,513 $296,837
Position Im act s
Cumulative
Department Full Part Proj. Mgt & Non
Im act Im act Time Time Vacant Filled Admin M t.
Parks 8 Recreation (continued)
Reduce contract mowing service levels at certain city-maintained skes (city staff
would continue to provide landscape maintenance services); the adjustment would
bring these sites in line with most other city sites that receive contrail mowing.
Adjust Level of Service for various Parks and Greenspace locations from A (36) to B
(34) annually services at two (2) sites: Lummus Park, Lir>coln Road Mall;
adjustments from A (36) to C (30) annual services at nine (9) sites: Marjory
Stoneman Douglas Park, North Shore Park 8 Youth Center, Normandy Park, Polo
Park, II Villagio, 555 17th Street, City Hall, South Beach Police SutaStation, Main
Police Station; adjust from B (34) to C (30) annual services at six (6) sites; Sunset
Island II Park, La Goroe Park, Maurice Gibb Park, chops at Sunset 3 & 4, 29th & N
Bay Rd, Sunset 3 & 4 Sunset Dr; adjust from C (30) to D (24) yearly services at six
(6) sRes; Attos Del Mar Park, 1 center median across from Penrods, 23rd St. &
Flamingo Dr. bridge approach, 24th St. & Lake Pancoast Dr. bridge approach, Sreet
ends Indian Creek 40th -27th, Dade Blvd. Canal
(IMPACT) mowing service frequencies will be adjusted and the affected locations
will receive services at the same level as most City locations. Litter service at these
sites will continue to be provided by in-house staff at the current level of service
at five (5) times per week 260 services annually. $7 g58 $304 695
Reduce contracted "full service" frequencies (that means sites that receive both
mowing and landscape maintenance services); the adjustment affects both mowing
and landscape maintenance and would bring these stes in line with other city
contracted full service sites. Adjust the landscape maintenance at full service
contracted sites from B (34) to C (30) annual services at five (5) sites: Star/Buoy
Park, Bay Road, Alton Road medians, Palm and Hibiscus Islands
medians (IMPACT) mowing at these locations will be adjusted to 30 cycles per year,
hedge pruning/trimming will occur from every two weeks to every three weeks, weed
control adjusts from once every four weeks to every five weeks, mulch
application adjusts from ten week to twelve week intervals, litter service adjusts from
138 to 134 services annual) $31,223 $335,918
Reduce the cky-staffed landscape maintenance services at those sites previously
identified above to receive contrail mowing adjustments. Adjust locations from A
(36) to B (34) annual services at one (1) site: Lummus Park; adjust from A (36) to C
(30) annual services at nine (9) sites: Marjory Stoneman Douglas Park,NOrth Shore
Park 8 Youth Center, Normandy Park, Polo Park, II Villagio, 555 17th Street, City
Hall, South Beach Police Sub-Station, Main Police Station; adjust from B (34) to C
(30) annual services at six (6) skes: Sunset Island II Park, La Gorce Park, Maurice
Gibb Park, chops at Sunset 3 & 4, 29th & N Bay Rd, Sunset 3 & 4 Sunset Dr.
(IMPACT) City staffed landscape maintenance service would be adjusted as follows:
hedge pruningRrimming will occur from every two weeks to every three weeks, weed
confrol adjusts from once every four weeks to every five weeks, mulch
application adjusts from ten week to twelve week intervals. Landscape service
frequencies at the affected locations will be the same level as most of the other City
locations. Litter service at these locations will continue to be provided by in-house
Greenspace and Recreation staff at the current service level of five (5) times per
week 260 services annual) . 2 FT sitions will be im acted. $54,236 $390 154 -2.0 -2.0 -2.0
CIP
Professional Services -The reduction of funds allocated for Professional Services
will limit the flexibility to secure supplemental professional services that could be
used to assist the De artment when needs occur. $ 10,000 $ 10,000
Real Estate, Housing & Community Development
iminate seat anager pose io , ,
and replace with
part-time field
monitor. $ 85,263 $ 85,2113 -1.0 1.0 -1.0 -1.0
Building
EXPLORE OUTSOURCING PERMIT CLERK FUNCTION as per Watson Rice
recommendation #16 - Im ail to be detennined u n recei of ro sale $ 79 093 $ 79 093 -7.0 -7.0 -7.0
Position Im act s
Im act Cumulative
Department
Im act
Full
Time
Part
Time
Proj.
Vacant
Filled
Mgt 8
Admin
Non
M t
TCD
Reduce Arts in the Parks from 8 events to 6. $ 20,000 $ 20 000
E{irniaate-Replace funding for 2010 Sleepless Night -Eliminating this funding
requires the event to be fully funded by private sponors. Eliminating this funding may
also im the Kni M Foundation Grant received for $150,000, which wires a 1 to
$ 57,870
$ 77,870
~~ $ 77,870
Replace Field Monitor Position with a parttlme position: This represents salary,
benefds, and cellphone. The Field Monitor is shared with Asset Mgmt who no longer
has a Field Monitor as a resuH of the FY 08 budget cut. This position inspects and
enforces the regulations of the special event and film pennks for TCD, as well as
assists in processing wedding ceremony requests and demonstrations. The position
also monitors beach concessions and the markets for Asset Mgmt and assists with
field inspections. The part time position would be dedicated to TCD.
30,825
108,695
1.0
.0
1.0
1.0
CI Mana er
Transfer Agenda Coordinator position and function to City Clerk's Office to
consolidate and obtain efficiencies in administrative su rt functions
$ 85,450
$ 85,450
-1.0
-1.0
-1.0
Communications
Eliminate full-time office support, archiving, and managemem of accts, advertising
revenues 8 other enerel office to art-time sition
$ 37,117
$ 37 117
-1.0
-1.0
-1.0
Eliminate Cit a 0327 $635.00 r ad $ 16 510 $ 53,627
OBPI
Eliminate Management Consultam (also impacts Grants and Budget) including
support cost. Impact to be partially offset by Office Associate
$ 75 391
$ 75,391
-1.0
-1.0
-1.0
Human Resouroes/Labor Relations
Labor Relations Director position (Salary) -leaving $20,000 for a professional
services agreement (PSA) to be negotiated for individual to hear Step III grievances
and help with upcoming labor negotiations with all five (5) collective bargaining units
(unions)
84,568
84,568
1.0
1.0
1.0
CI Clerk
Eliminate OAV as of December and use support from 60°~ of the administrative
sRion transferred from the Mana er's Office
$ 15,126
$ 15 126
-0.4
-0.4
-0.4
CI Attome
Freeze Legal Secretary position -IMPACT -duties will have to be distributed to othe
secretaries within the department.
$ 63,031
$ 63,031
-1.0
-1.0
-1.0
Reduce part-time First Assistant City Attorney from 40 hrs per pay period to 20 hours
per pay period -IMPACT -workload will have to be distributed among other
attorneys greater workload to existing staff
44,838
107 869
Position Im acts
Im act Cumulative
Department
Im act
Full
Time
Part
Time
Proj.
Vacant
Filled
Mgt 8
Admin
Non
M t.
CI Ide
Reduce funding for various programs by 10°~
Festival of the Arts PENDING $ -
Jevdsh Museum PENDING $ -
Jul 4th Celebration non s nsored eveMS PENDING $ -
Latin Chamber of Commerce PENDING $ -
Miami Beach ChamberNisitw Ctr PENDING $ -
Miami Desi n Preservation Le ue PENDING $ -
North Beach Develo ent C PENDING $ -
Oran a Bowl PENDING $ -
S Beach/Grtr Miami His .Chamber PENDING $ -
Sister Cities PENDING $ -
Hot Meals-JVS PENDING $ -
Dou las Gardens PENDING $ -
Stanle C. M ers PENDING $ -
Bo sand Girls Club PENDING $ -
Contribution to Garden Center PENDING $ -
$ -
Eliminate Funding fw Vote Miami Beach $ 15,000 $ 15,000
Transfers
Reduce Capital Investment & Upkeep Account so that refon:station is reduced from
$200,000 to $100,000
$ 100,000
$ 100,000
Total 2,930, 2,930, 2 -43.4 -14.0 - 9.4 -1 -26.0
Position Im act s
Cumulative
Department Full Part Prof. Mgt& Non
Im act Im ct Time Tlme Vacant Filled Admin M t.
INTERNAL SERVICE FUNDS
Information Teehnolo
Reduce Professional Services by $5,000 from Applications and by $5,000 from Support
Divisions. Impacts the ability to obtain vendor after hours support for applications such as
EDEN, AGive STrategy, Perrnfts Plus, Telestaff and the like during updates and planned
maintenance in addtlon to dealing with unforeseen technical issues that arise in the
environment.
10,000
10,000
1 Info Tech I filled position.
May impact support for City Wide Desktops
$ 75,662
$ 85,662
-1.0
-1.0
-1.0
Replace 1 Senior Systems Analyst and 1 Systems Analyst position with an entry
level sition - ma im im lamentation of new a lications
$ 152,770
$ 238 432
-1.0
-1.0
-1.0
Central Services
Eliminate Central Services Admin Aide 1 with function absorbed by .40% of
administrative sition Vansfemed from the Mana er's Office
$ 22 931
$ 22 931
-0.6
-0.6
-0.6
Elimnate 1 Duplicating Equipment Operator with functions absorbed by other
onnel in division. This ma resuks in increased tumaound times and dale s.
$ 43 996
$ 66,927
-1.0
-1.0
-1.0
Pro Mana ement
Reduce One Administrative Aide I. Additional accounts payable workload would be
distributed amongst remaining administrative staff which would result in longer
g 55 g32
$ 55,832
-1.0
-1.0
-1.0
Reduce One MSW-III ~$ $38,359. Contracted temporary labor would be acquired at
a estimated cost of 17,632 for full time (624 hrs ~ $12.23 per hr as needed when
extra help is required by Tradesmen.
30 727
86,559
1.0
1.0
1.0
Reduce One Vacant A!C Mechanic position Position has been vacant for more than
six months and have been unable to find ualified a licants.
$ 76 384
$ 162 943
-1.0
-1.0
-1.0
Fleet
$
Total $468,302 $ 468,302 -6.6 0.0 -1.0 -5.6 -1.6 -5.0
ATTACHMENT D -REVENUE ENHANCEMENT ALTERNATIVES
Fiscal Impact ~ Department ~ Cumulative ~
NERAL FUND
ice
- ~$ - ~$ -
Public Works
Increase sidewalk fees by $5 from $15/year per foot (The current square footage 74,130
times $5/year = $370,650/year) -Raise $1 per year for 5 years for a total of $5 -impact to
average cafe of 1,200 sq ft is $1,200 PENDING $ - $ -
i G~~~~~o
Business Tax Recei t ro osed $15 A lication Fee $ 18,000 $ 18,000
Lien Statements - $25 fee increase per statement: Certified will increase form $75 to $100
and uncertified would increase from $50 to $75 -Condos increase to $150 for certified and
$113 for uncertified $ 122,650 $ 140,650
Lotte A lication ro osed $35 a lication fee increase to $50 $ 25,000 $ 165,650
$ 165,650 ~
Increased Lobbyist Fee to Miami Dade County Levels (from $125 to $490 annually, while
maintaining the current $25 fee per issue) -increase per issue to $100 $ 40,165 $ 40,165 $ 205,815