LTC 097-2013 Analysis of budget Dec 31, 2012 thru Sep 30, 2013 ® MIAMI BEACH P
OFFICE OF THE CITY MANAGER 2013 M ,R 26 Pr'; 4: 13_ _
NO. LTC# TO COMMISSION
097-2013
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Kathie Brooks, Interim City Manager/,N
DATE: March 26, 2013
SUBJECT: ANALYSIS OF BUDGET TO ACTUAL REVENUES AND EXPENSES FOR THE
THREE MONTHS ENDING DECEMBER 31, 2012, WITH OPERATING BUDGET
PROJECTIONS THROUGH SEPTEMBER 30, 2013
The purpose of this LTC is to provide the Mayor and Commission with the status of the FY
2012/13 budget to actual revenue and expenses reflected at the end of the first quarter with
projections through September 30, 2013.
At this stage of projecting the fiscal year-end, there are many areas left to be determined. The
first quarter of any fiscal year is not necessarily the most reliable indication of the experience
for the remainder of the fiscal year, but does provide a first glance in identifying any potential
issues. Certain assumptions for both revenue and expenditures were made that are still
developing and will be adjusted for in later projections. These assumptions, along with our
continued effort at managing the City's resources and ongoing adjustments to line item
revenues and expenditures throughout the year will affect our projections going forward.
The FY 2011/12 year-end budget amendment adopted by the City Commission in November,
2012, identified approximately $1.4 million in encumbrances and set asides for projects
budgeted in FY 2011/12 that will instead be spent in FY 2012/13. These unspent funds were
identified to be carried forward to FY 2012/13; however, the budget amendment required in
order to expend these funds in FY 2012/13 has been pending completion of the FY 2011/12
external audit, and will be presented to the City Commission in April. Accordingly, the
projections presented below are compared to both the adopted budget, as well as, to the
proposed April budget amendment.
GENERALFUND
Upon review, it is projected that the General Fund expenditures will exceed revenues by
approximately $3.8 million, despite revenues being approximately $2.6 million over the adopted
budget and $1.2 million over the proposed amended budget once the carry-forward funds from
FY 2011/12 are taken into account. This shortfall is primarily due to employee givebacks that
have not been achieved to date, particularly in the Fraternal Order of Police (FOP) and the
International Federation of Fire Fighters (IAFF) bargaining units, as well as accumulated leave
payouts related to the previously negotiated changes in the Fire and Police Pension Plan that
amended the timeframe for eligibility to purchase prior creditable service.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012,With Operating Budget Projections Through September 30, 2013
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General Fund Overview
An analysis of the actual three-month operating revenues and expenditures for the period
October 1, 2012 through December 31, 2012, reveals an operating budget surplus of $15.8
million. While the surplus as of December 31s' seems unusual as compared to the projection
for the fiscal year ending on September 301h, it should be noted that the City receives a greater
percentage of ad valorem taxes during the first quarter, (historically 60 percent). Ad valorem
tax revenues represent approximately 45 percent of total budgeted revenues and represent 51
percent of the revenues received in the first quarter of the fiscal year.
As of December 31, 2012, revenues collected were approximately 25 percent of budget or
$64.8 million. This year, 29 percent of the budgeted property tax revenue was received in the
first quarter, as compared to the historical level of 60 percent as noted above. However, this
was due to delayed payments from the County and additional revenues received in January
2013, which supports projecting 100 percent of the budgeted ad valorem revenue.
The remaining 49 percent of revenues are at approximately 25 percent of the adopted budget
as of December 31, 2013, a level similar to prior fiscal years.
Expenditures are approximately 19 percent of the FY 2012/13 adopted budget; however, there
are often delays in expenditures in the first quarter of the fiscal year.
FY 2012/13 Budget
Variance from 1/4 Variance from 1/4
Original Adopted 1/4 of Adopted Actual as of Adopted Budget Proposed Amended 1/4 of Proposed Amended Budget
General Fund Budget 2013 Budget 12/31/12 Over/(Under) Budget(April 2013) Amended Budget Over/(Under)
Revenues $ 256,280,000 $ 64,070,000 $ 64,831,219 $ 761,219 $ 257,670,000 $ 64,417,500 $ 413,719
Expenditures $ 256,280,000 $ 64,070,000 $ 49,021,842 $ (15,048,158) $ 257,670,000 $ 64,417,500 $ (15,395,658)
Surplus/(Deficit) $ - $ - $ 15,809,377 $ 15,809,377 1 $ - $ - $ 15,809,377
General Fund Year-End Projections
The projected year-end operating revenues and expenditures through September 30, 2013,
provide a more realistic snapshot of anticipated year-end shortfalls or surpluses at this point in
time. Further, while the actual revenues and expenditures presented are as of December 31,
2012, some of the projections have incorporated more recent information, if available.
A summary of preliminary projected General Fund Revenues and Expenditures as of
September 30, 2013, is as follows and reflects revenues short of expenditures by
approximately $3 million if no additional contingency is spent for the remainder of the year, and
$3.8 million, as explained above, assuming that that three quarters of the budgeted
contingency is fully expended over the remaining three quarters of the fiscal year.
While this shortfall, represents less than 2 percent of the adopted budget or the proposed
amended budget, it none-the-less represents a challenge if the City is unable to achieve the
assumed employee givebacks over the remainder of the year through labor contract
negotiations with the City's five (5) collective bargaining units.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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FY 2012/13 Budget
Variance
Projected/
Proposed Amended Variance Proposed
Adopted Budget Budget 2012/13 Projected/ Amended
General Fund 2012/13 (April Amendment) Projected Adopted Budget Budget
Revenues $ 256,280,000 $ 257,670,000 $ 258,869,000 $ 2,589,000 $ 1,199,000
Expenditures* 256,280,000 257,670,000 261,875,000 5,595,000 4,205,000
Surplus/(Deficit) $ - $ - $ (3,006,000) $ (3,006,000) $ (3,006,000)
Operating Contingency $ 750,000 $. 750,000
Net surplus(Deficit) $ (3,756,000) $ (3,756,000)
*Prior to Expenditure of Operating Contingency
Status of Employee Givebacks
The FY 2012/13 General Fund budget includes nearly $3 million of General Fund employee
givebacks. At the time of budget development, the $3 million in employee givebacks were
allocated across all salary groups proportionate to salaries. Subsequently targets were
developed for each salary group proportionate to each group's share of the City's total pension
and health costs, since these have been the major cost drivers of personnel costs in recent
years. The initial budget assumed merit and step increases for all seven (7) salary groups.
However, it was anticipated that a large share of the employee givebacks for FY 2012/13 would
be achieved through negotiating merit and step freezes, adherence to the Fair Labor
Standards Act (FLSA) for the purposes of calculating overtime, as well as, a reduction or
elimination of various "extra" pays for those employees covered by the FOP and the IAFF.
The reality is that employees covered by the FOP and the IAFF have not experienced a freeze
in their step increases in the last four(4) years, while the American Federation of State, County
and Municipal Employees (AFSCME) and the Government Supervisors Association of Florida
(GSAF) experienced a freeze on merit increases for two (2) years. Merits for employees
covered by GSAF were reinstated effective October 1, 2012 and merits for employees covered
by AFSCME will be reinstated effective April 1, 2013; however, the maximum merit increase
was reduced from four percent to two percent once reinstated. In comparison, this is the third
year of no merit increases for employees covered by the Communication Workers Association
(CWA) as it is a "status quo" provision in the CWA collective bargaining agreement.
Furthermore, this is the fourth straight year that employees in the "Unclassified" and "Other"
salary groups have not received any merit increases. These assumptions are utilized for the
projections throughout the remainder of the fiscal year.
The chart below provides a summary of the budgeted employee givebacks by salary group, the
target employee givebacks by salary group and the employee givebacks achieved to date,
while assuming that there are no changes in any of the collective bargaining agreements
throughout the remainder of the fiscal year.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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General Fund
General Fund Givebacks
Budgeted Achieved-- Difference from
SALARY GROUP Target Givebacks current status Budget
AFSCME $ 322,000 $ 120,000 $ - $ (120,000)
CWA $ 417,000 $ 61,000 $ 183,000 $ 122,000
FOP $ 1,396,000 $ 1,320,000 $ - $ (1,320,000)
GSA $ 74,000 $ 35,000 $ $ (35,000)
IAFF $ 900,000 $ 960,000 $ $ (960,000)
Unclassified/Others $ 673,000 $ 504,000 $ 735,000 $ 231,000
Total $ 3,782,000 $ 3,000,000 $ 918,000 $ (2,082,000)
In addition, other savings have been achieved by senior management positions being held
vacant in anticipation of the hiring of a new City Manager. However, both of the budgets for the
Fire Department and Police Department are forecasted to be over budget by $1 million and
$1.8 million respectively.
Accumulated Leave
The accumulated leave payout budget for FY 2012/13 is $1.9 million and was developed based
on experience in the prior year. Expenditures are projected to be $6.3 million, a difference of
$4.4 million. The most significant portion of this increase was due to an increase in leave used
for Fire and Police pension buybacks.
As explained in the FY 2011/12 year-end agenda item, this is primarily driven by the 2010 Fire
and Police Pension Plan changes that became effective on June 27, 2012, with the Third
District Court of Appeal's unanimous decision that the collective bargaining process set out in
the Public Employee Relations Act is the final word on-implementing the collective bargaining
rights guaranteed by the Florida Constitution. Included in the negotiated pension changes was
the ability for a member to exercise their right to buy back prior creditable service upon vesting
(ten years of service) compared to the previous pension benefit that provided the ability for a
member to buy back prior creditable service upon twenty years of creditable service with the
City.
The 225 members that had ten or more years of creditable pension service time as of
September 30, 2010, were notified that they have until September 30, 2013, to exercise their
right to purchase these buybacks. As a result, there continues to be an influx of members who
are exercising this right and purchasing creditable pension service time following the Third
District Court of Appeal's decision. The members have until September 30, 2013, to elect this
option. The payouts through December 31, 2012, totaled $2.2 million. Based on eligibility to
elect this payout, an additional $4.1 million is projected before the September 30, 2013,
deadline. Given the potential for additional purchases in FY 2012/13, we will continue to closely
monitor this over the remainder of year, but thereafter anticipate this to decline to prior year
levels.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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Medical Insurance
It is important to note that as of the first quarter projection, no additional transfers are projected
to the health self-insurance plan.
As of September 2012, the City's benefits consultant, Gallagher Benefit Services, projected a
loss for FY 2012/13, with a 12 percent premium increase, of $309,000. The City's budget for
FY 2012/13 assumed a 10 percent increase in the City's share of premium costs. However,
premium increases for FY 2012/13 were subsequently deferred pending review of the entire
health plan structure by the City's Budget Advisory Committee.
Fortunately, plan expenditures declined significantly during the first quarter of FY 2012/13 as
compared to the first quarter of FY 2011/12, and, in fact, claim expenditure per plan member
for calendar year 2012 declined overall by 9 percent as compared to calendar year 2011.
Although Gallagher Benefit Services is projecting a shortfall in premiums of $490,000 for FY
2012/13 if no premium increases are implemented, the City is not projecting additional
transfers at this time and will continue to monitor this over the next quarter.
General Fund Operating Revenues
For a detail of General Fund Revenues by category, see attached Schedule A.
At this time, we are projecting property tax collections for FY 2012/13 at 95 percent of total
property taxes assessed and consistent with the original adopted budget, thereby, allowing
adjustments for discounts, as well as, a level of adjustments due to appeals similar to long-term
historical levels. It is important to note, that in the last two (2) years, property tax collections
have been significantly below prior year levels due to higher levels of appeals and adjustments.
The impact of appeals and adjustments for the FY 2012/13 budget will be provided by the
Miami-Dade County Property Appraiser in July.
Overall revenues are projected to be $2.6 million above the original budget. However, once the
previously approved carry-forward revenues from FY 2011/12 are included, the overall
projected revenues will be only $1.2 million above the proposed amended budget. This
increase of approximately $1.2 million is primarily due to Building Development Process Fee
revenues (Licenses and Permits), which are projected to exceed the budget by almost $1.8
million (almost 9 percent). However, this increase is expected to be offset by Charges for
Services revenues (including Golf Courses revenues), Interest, Rents and Leases, and
Miscellaneous revenues that are trending below the FY 2012/13 adopted budget.
As in prior years, significant variances to budget in excess of $300,000 or 10 percent by
revenue category are explained below:
Licenses and Permits — This category includes business tax receipts, licenses/
building/special use permits, and sidewalk cafe fee revenues and is projected to be in
excess of budget by $1.8 million (9 percent above budget) primarily due to increases in
Building Development Process Revenues, reflecting continuing improvement in the
economy.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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General Fund Operating Expenditures
As of December 31, 2012, actual expenditures were approximately 19 percent of budget or$49
million. Year-end projections through September 30, 2013, indicate that expenditures will be
$261.9 million, approximately $6.3 million (2 percent) over the original adopted budget and $5
million over the proposed amended budget, assuming that three quarters of the contingency is
spent over the remaining three quarters of the year.
Citywide Accounts are projected to be above budget by approximately $4.2 million due to the
leave liability payouts (driven by an influx of Fire and Police Pension Plan buybacks) projected
to be above budget by approximately $4.4 million, as explained above. This is offset by small
savings in various accounts.
A comparison of actual and projected expenditures to budget by Department is provided in the
Schedule A. the other major drivers of expenditures above budget are the Fire and Police
departments, as explained previously. However, as in prior years, Departments with significant
variances to budget in excess of$300,000 or 10 percent are explained below:
Planning — In part due to the additional employee givebacks from Unclassified employees
as explained above, but also due to a number of vacancies, including the Planning
Director, the Planning Department is projected to be approximately $323,000 below
budget (approximately 9 percent).
Variance
Proposed Variance Projected/
Amended Budget Projected/ Proposed
Adopted Budget 2012/13(April Adopted Amended
Planning. 2012/13 Amendment) Projected Budget Budget
Expenditures 3,419,000 3,419,000 3,096,000 (323,000) (323,000)
Real Estate Housing and Community Development (REHCD) — Schedule A reflects
REHCD with a variance of more than 10 percent under budget. However, this is net of
the Community Services and Homeless Services Divisions of the Department. Once
these Divisions are included (as reflected in the adopted budget resolution) the variance is
only 3 percent, reflective of reallocation of resources among the Divisions in the
Department.
Variance
Proposed Variance Projected/
Amedned Budget Projected/ Proposed
Adopted Budget 2012/13(April Adopted Amended
REHCD 2012/13 Amendment) Projected Budget Budget
Expenditures 2,507,000 2,507,000 2,420,000 (87,000) (87,000)
Capital Improvements Projects Office (CIP)— In part due to the additional employee
givebacks from Unclassified employees as explained above, but also due to vacancies,
the Department is projected to be approximately $364,000 below the adopted budget and
$381,000 below the proposed amended budget (approximately 8 percent). This savings is
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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also reflected as a reduction in the reimbursements from capital projects for this
Department.
Variance
Proposed Variance Projected/
Amended Budget Projected/ Proposed
Adopted Budget 2012/13(April Adopted Amended
PIP 2012/13 Amendment) Projected Budget Budget
Expenditures 4,841,000 4,858,000 4,477,000 (364,000) (381,000)
Fire - The Fire Department is projected to be approximately $1,045,000 above the
adopted budget and $1,024,000 above the proposed amended budget (less than 2
percent above budget). In addition to the $1 million in budgeted employee givebacks that
have not been achieved to date, overtime is projected to be $129,000 over budget.
Overtime is projected to be above budget in Ocean Rescue by $248,000 due to difficulties
in hiring temporary and part-time positions, while the remainder of the Department is
projected to be under budget. It is important to note that while the additional three (3)
Firefighters hired as part of a pilot program to reduce weekend overtime have yet to be
deployed on a weekend specific shift, the overtime is reduced in part due to the fact that
the Department hired additional positions for the last class in anticipation of Fire
Department employees that will be separating from the City this year. An LTC regarding
projected overtime in the Fire Department for FY 2012/13 will be provided under separate
cover.
Proposed Variance
Amendeded Projected/
Budget 2012/13 Variance Proposed
Adopted Budget (April Projected/ Amended
Fire 2012/13 Amendment) Projected Adopted Budget Budget
Expenditures 62,242,000 62,263,000 63,287,000 1,045,000 1,024,000
Police — The Police Department is projected to be approximately $1,813,000 above the
adopted budget and $1,806,000 above the proposed amended budget (approximately 2
percent above budget). In addition to the $1.4 million in budgeted employee givebacks
that have not been achieved to date, overtime is projected to be $455,000 over budget as
shown on Schedule B. The primary driver represented on Schedule B for the overtime
above budget is identified as "manpower shortage". While the Department has been
working to significantly reduce the number of vacancies during the current fiscal year, the
recently hired positions were unable to be deployed to date, as they were participating in
post-academy orientation and field training required for all new officers. The Police Chief
is aware of the projection and has been instructed to take the necessary actions to ensure
that overtime is brought in line with budget. In addition, the Department has been
instructed not to deploy the FY 2012/13 service enhancements until the additional
positions are hired and deployed to the streets.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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Proposed Variance Projected/
Amended Budget Projected/ Proposed
Adopted Budget 2012/13(April Adopted Amended
Police 2012/13 Amendment) Projected Budget Budget
Expenditures 94,963,000 94,970,000 96,776,000 1,813,000 1,806,000
ENTERPRISE FUNDS
The City accounts for proprietary operations in Enterprise Funds. Convention Center, Parking,
Sanitation, Sewer, Stormwater, and Water are included in this grouping. The expenditures for
these funds are budgeted to be fully offset by charges for services.
An analysis of the actual three-month operating expenditures for the period October 1, 2012
through December 31, 2012, reveals that all funds except Sewer have expenditures less than
one-quarter of their budget. However, this is not representative, as there is often a lag in
expenditures, particularly related to those billed by outside entities. Sewer has expenditures in
the first quarter in excess of one-quarter of their budget, primarily as 72 percent of the annual
debt service payment was incurred in the first quarter.
Convention
ENTERPRISE FUNDS Sanitation Sewer Stormwater Water Parking Center
Adopted Budget 17,302,000 37,465,000 11,926,000 34,036,000 47,657,000 12,702,000
Proposed Budget Amendment(April 2013) 17,328,000 37,730,000 11,984,000 34,684,000 47,702,000 12,702,000
114 ofAdopted Budget 4,325,500 9,366,250 2,981,500 8,509,000 11,914,250 3,175,500
114 of Proposed Amended Budget 4,332,000 9,432,500 2,996,000 8,671,000 11,925,500 3,175,500
Expenditures as of 12131/12 2,855,660 11,597,299 2,662,388 8,011,266 7,986,994 2,994,833
Expenditure Above/(below) 1/4 of Adopted
Budget (1,469,840) 2,231,049 (319,112) (497,734) (3,927,256) (180,667)
Expenditure Above/(below) 114 of Proposed
Amended Budget (1,476,340) 2,164,799 (333,612) (659,734) (3,938,506) (180,667)
The projected year-end operating revenues and expenditures through September 30, 2012, is,
however, a more realistic snapshot of anticipated surplus or shortfall at this point in time. In
addition, while the actual revenues and expenditures presented are as of December 31, 2012,
the projections have incorporated more recent information, as available.
As represented below, for all funds, exclusive of the Convention Center, revenues are
projected to be equivalent or in excess of expenditures. Further, while Sewer, Water, and
Convention Center are projected to be over budget, once the proposed amendment is adopted
only Water and Convention Center are anticipated to be over budget.
Although the Water Fund is projected to have a surplus, the expenditures are projected to be in
excess of both the budget and the proposed amended budget. This is attributed to water usage
above budget which results in increased expenditures to purchase water from Miami-Dade
County. This increased expenditure is offset by increased revenues.
The Convention Center is projected to have a shortfall of approximately $0.4 million and be
over budget by approximately $0.8 million. This is primarily due to electrical expenditures
above budget, indicating that budgeted savings from the Amaresco energy savings initiative
are not being realized. This is partially offset by increased revenues. Public Works Department
staff has been directed to work with Amaresco to address this issue.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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Sanitation Sewer Stormwater Water Parking Convention Center
REVENUES
Projected Revenues
Charges for Service $ 13,151,000 $ 36,613,000 $ 11,574,000 $ 33,459,000 36,244,000 8,455,000
Other $ 4,063,000 $ 3,459,000 751,000 $ 2,334,000 $ 11,604,000 4,605,000
Total Projection $ 17,214,000 $ 40,072,000 $ 12,325,000 $ 35,793,000 $ 47,848,000 $ 13,060,000
EXPENDITURES
Projected Expenditures $ 16,937,000 $ 37,519,000 $ 11,882,000 $ 34,996,000 $ 47,217,000 $ 13,486,000
Surplus/(Shortfall) $ 277,000 $ 2,553,000 $ 443,000 $ 797,000 $ 631,000 $ (426,000)
Variance from Expenditure Adopted
Budget $ (365,000) $ 54,000 $ (44,000) $ 960,000 $ (440,000) $ 784,000
Variance from Expenditure Proposed
Amended Budget $ (391,000) $ (211,000) $ (102,000) $ 312,000 $ (485,000) $ 784,000
In addition, despite expenditures being close to budget, Parking is anticipated to have a
surplus of $0.6 million due to increased revenues. Together with the $4.8 million budgeted to
be used to increase reserves, should provide year-end available cash balance funding towards
the annual transfer of $7.2 million to the General Fund in FY 2013/14, the same level as
budgeted for FY 2012/13.
INTERNAL SERVICE FUNDS
The City accounts for those goods and services provided by one Department to other
Departments citywide on a cost reimbursement basis. Central Services, Fleet Management,
Information Technology, Property Management, and Risk Management (Self Insurance) are
included in this grouping.
An analysis of the actual three-month operating expenditures for the period October 1, 2012
through December 31, 2012, reveals that all funds have expenditures less than one-quarter of
the Adopted Budget, as well as, the proposed amended budget. However, as with Enterprise
Funds, this is not representative since there is often a lag in expenditures, particularly related
to those billed by outside entities. In Risk Management, there is a significant lag in
expenditures due to personnel changes and delayed processing of payments.
CENTRAL INFORMATION
INTERNAL SERVICE FUNDS SERVICES FLEET MGT TECHNOLOGY PROPERTY MGT RISK MGT
Adopted Budget $ 906,000 $ 9,700,000 $ 16,366,000 $ 8,862,000 $ 23,494,000
Proposed Amended Budget(April 2012) $ 906,000 $ 9,723,000 $ 16,656,000 $ 9,004,000 $ 23,500,000
1/4 ofAdopted Budget $ 226,500 $ 2,425,000 $ 4,091,500 $ 2,215,500 $ 5,873,500
1/4 of Proposed Amended Budget $ 226,500 $ 2,430,750 $ 4,164,000 $ 2,251,000 $ 5,875,000
Expenditures as of 12/31/12 $ 205,025 $ 1,953,762 $ 1,923,181 $ 1,509,018 $ 845,488
Expenditure Above/(Below)1/4 of Adopted
Budget $ (21,475) $ (471,238) $ (2,168,319) $ (706,482) $ (5,028,012)
Expenditure Above/(Below)1/4 of Proposed
Amended Budget $ (21,475) $ (476,988) $ (2,240,819) $ (741,982) $ (5,029,512)
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012,With Operating Budget Projections Through September 30, 2013
Page 10 of 14
Based on the more realistic projection of year-end operating revenues and expenditures
,through September 30, 2013, and incorporating more recent information as available, all
Internal Service Funds, excluding the Risk Management Fund, are expected to have revenues
equal to or in excess of expenditures. Risk Management revenues are projected to be under
budget by $162,000. The Risk Management Internal Service charges to other Departments
are determined through the budget development process and are charged to a Department
based on 1/12th of budget. Should the revenue shortfall be realized, additional charges may
have to be made to General Fund and Enterprise Departments which could then affect those
budgets. We will continue to monitor these.
While Information Technology and Risk Management are projected to be above the adopted
budget, if the proposed amendment to carry forward funds for projects from FY 2011/12 is
approved, we anticipate all Internal Service Funds to be within budget.
CENTRAL INFORMATION
SERVICES FLEET MGT TECHNOLOGY PROPERTY MGT RISK MGT
REVENUES
Projected Revenues
Charges for Service 994,000 9,205,000 14,604,000 8,640,000 22,457,000
Other 6,000 501,000 2,202,000 279,000 881,000
Total Projected Revenues $ 1,000,000 $ 9,706,000 $ 16,806,000 $ 8,919,000 $ 23,338,000
EXPENDITURES
Projected Expenditures $ 891,000 $ 9,586,000 $ 16,580,000 $ 8,824,000 $ 23,500,000
Surplus/(Shortfall) $ 109,000 $ 120,000 $ 226,000 $ 95,000 $ 162,000)
Variance from Expenditure Adopted Budget (15,000) (114,000) 214,000 (38,000) 6,000
Variance from Expenditure Amended Budget $ (15,000) $ (137,000) $ (76,000) $ (180,000) $ -
RESORT TAX FUND
The City's Resort Tax Fund is primarily supported by Resort 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 tourist 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.
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
O Ocean Rescue services
• Sidewalk pressure cleaning in South, Middle and North Beach visitor areas
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
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• 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,
Art Basel, and various concerts.
The 2 percent Resort Tax Fund operating revenues are projected to be in excess of budget by
approximately $0.5 million and, as a result, payments to the Visitor's Convention Authority
(VCA) which are based on a percent of revenues, are projected to exceed budget. In addition,
significant savings are projected in salaries due to staff turnover and a reduction in the
projected use of contingency.
In addition to the uses listed above, the proceeds of the additional one percent (1 percent) tax
are used as follows: Fifty percent of the amount earned is committed to the payment of a
portion of the debt service on the Miami Beach Redevelopment Agency City Center/ Bonds.
The remaining fifty percent is allocated equally among North Beach, Middle Beach and South
Beach for capital projects that enhance Miami Beach's tourist related areas and various arts
and cultural programs. The 1 percent Resort Tax Fund operating revenues are projected to be
in excess of budget by approximately $0.8 million and, as a result, the debt service and
transfers to North Beach, Middle Beach, and South Beach for capital projects and the transfers
to the arts and cultural programs are projected to exceed budget as represented below.
In total, the projected revenues are estimated to be in excess of budget by $1.2 million and
expenditures in excess of budget by approximately $0.6 million for the reasons described
above. This results in a net operating surplus of approximately $0.6 million for the 1 percent
and 2 percent Resort Tax revenues and expenditures, combined.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
Page 12 of 14
RESORT TAX FUND
i
I I
FY 2012/13
FY 2012/13 Proposed FY 2012113 I 12131/12 FY 2012113
Revenues_ _ __ Adopted Budget JAmendment Amended_ Actual Projection Over/(Under)
2%Resort Tax 44,132,000 _ $ 44,132,000 $ 6,494,228 $ 44,624,896 $ 492,896
1%_Resort Tax 9,368,0001 _ 9,368,000 1,446,981 1 10,125,109 757,109
Other Revenues 754,000 I 754,000 29,563, 724,822 1 (29,178)
Total Revenue I$ 54,254,000 i$ 1$ 54,254,000 $ 7,970,772 1 $ 55,474,827 1$ 1,220,827
—_
Expenditures I r
General Fund Contribution $—30,965,000 — — $ 30,965,000 $ 7,741,250 $ 30,965,000 $ -
Other Operating/Other Uses I 4,548,079 316,561 _ 4,450,072 (98,007)
Contributions to VCA and GMCVB 7,427,361 j _ 7,427,361 I __3,894,142 7,450,995 23,634
Marketing 248,000 i 248,000 2,500 248,000 1 -
Contingency _ 482,2411 482,2411 361,6811 (120,560)
2%Debt Service _ 1,215,319 1,215,319 — 1,215,319 1 -
1%Debt Service 4,684,000 4,684,000 364,442 5,062,555 1 378,555
Transfer to Capital and the Arts(1%_)_1 4,684,000 4,684,000 721,992 5,062,556 1 378,556
Total Expenditure 1 $ 54,254,000 1 $ 1 $ 54,254,000 1 $ 13,040,887 1 $ 54,816,178 1 $ 562,176
Surplus/(Deficit) 1 $ (0)1 $ 1$ (0)1 $ (5,070,115)1 $ 658,649 I$ 658,649
CONCLUSION
This analysis of budget to actual operating revenues and expenses with projections through
September 30, 2013, provides the status of the FY 2012/13 Adopted Budget for the first three
months of the fiscal year. The Administration will continue to monitor revenues and expenses,
as well as, the progress of contract negotiations with the City's five (5) collective bargaining
units throughout the fiscal year and resulting impacts on the FY 2012/13 budget.
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
Page 13 of 14
SCHEDULE A
ver (Under)
FY 2012/13 Proposed %Actual of Over/(Under) Proposed
Proposed FY 2012/13 FY13 FY 2012/13 Adopted Amendment
FY 2012113 Amendment Amended Actuals as of Adopted Projection as of Budget As of As of
Adopted Budget Aril Budget Dec.31,2012 Budget Quarter 1 Quarter 1 Quarter 1
REVENUES
Ad Valorem Taxes $ 102,171,000 $ 102,171,000 $29,604,012 29% $ 102,171,000 $ 0 -
Ad Valorem Taxes-S Pte Costs 10,296,000 10,296,000 2,983,262 29% 10,296,000 0
Ad Valorem Cap.Renewal&Replace. 1,850,000 1,850,000 536,037 29% 1,850,000 0
Ad Valorem Taxes-Norm Shores 129,000 129,000 37,378 29% 129,000 0 -
Other Taxes 24,023,000 24,023,000 3,252,399 14% 24,150,000 127,000 127,000
Licenses and Permits 20,033,000 20,033,000 9,272,746 46% 21,792,000 1,759,000 1,759,000
Intergovernmental 9,827,000 9,827,000 1,681,895 17% 9,837,000 10,000 10,000
Charges for Services 4,689,000 4,689,000 909,114 19% 4,513,000 (176,000) (176,000)
Golf Courses 5,979,000 5,979,000 1,329,047 22% 5,895,000 -84,000 (84,000)
Fines and Forfeits 2,199,000 2,199,000 451,870 21% 2,211,000 12,000 12,000
Interest 2,983,000 2,983,000 (1,237,802) -41% 2,827,000 (156,000) (156,000)
Rents and Leases 6,464,000 6,464,000 1,319,003 20% 6,345,000 (119,000) (119,000)
Miscellaneous 11,830,000 11,830,000 2,880,417 24% 11,656,000 (174,000) (174,000)
Other-Resort Tax contribution 30,965,000 30,965,000 9,678,750 31% 30,965,000 0
Other-Non Operating revenues 10,742,000 10,742,000 2,133,092 20% 10,742,000 0
Reserve-Building Department Ops. 1,500,000 1,500,000 0 0% 1,500,000 0
Prior Year-End Surplus Carryover 3,400,000 1,390,000 4,790,000 0 0% 4,790,000 1,390,000
Prior Yr Surplus from Parking Oper Fd 7,200,000 7,200,000 0 0% 7,200,000 0
Prior Yr Set Aside for Pension Credit 2,210,000 2,210,000 0 0% 2,210,000 0
TOTAL REVENUES $ 256,280,000 $ 1,390,000 $ 257,670,000 $64,831,219 25% $ 258,869,000 $ 2,589,000 1,199,000
Total Net of Unrealized Gains/ Losses $ 256,280,000 $ 1,390,000 $ 257,670,000 $64,831,219 25% $ 258,869,000 $ 2,589,000 $ 1,199,000
EXPENDITURES
Mayor and Commission 1,648,000 - 1,648,000 358,394 22% 1,641,000 (7,000) (7,000)
City Manager 2,313,000 432,000 2,745,000 754,809 33% 2,697,000 384,000 (48,000)
Communications 893,000 - 893,000 183,742 21% 843,000 (50,000) (50,000)
City Clerk 1,505,000 1,505,000 255,438 17% 1,395,000 (110,000) (110,000)
Finance 4,426,000 4,426,000 1,466,109 33% 4,344,000 (82,000) (82,000)
Office of Budget&Perf Improve. 2,160,000 2,160,000 357,046 17% 1,999,000 (161,000) (161,000)
Human Resources/Labor Relations 1,827,000 - 1,827,000 306,741 17% 1,763,000 (64,000) (64,000)
Procurement 1,063,000 5,000 1,068,000 318,503 30% 978,000 (85,000) (90,000)
City Attorney 4,318,000 - 4,318,000 914,324 21% 4,336,000 18,000 18,000
Real Estate,Housing&Comm Dev 1,048,000 1,048,000 178,464 17% 929,000 (119,000) (119,000)
Community Services 460,000 - 460,000 93,465 20% 491,000 31,000 31,000
Homeless Services 990,000 990,000 178,851 18% 1,000,000 10,000 10,000
Building 10,985,000 87,000 11,072,000 2,094,801 19% 11,012,000 27,000 (60,000)
Code Compliance 4,647,000 - 4,647,000 895,101 19% 4,521,000 (126,000) (126,000)
Planning 3,419,000 3,419,000 615,721 18% 3,096,000 (323,000) (323,000)
Tourism&Cultural Development 2,503,000 - 2,503,000 302,599 12% 2,393,000 (110,000) (110,000)
Parks and Recreation 22,153,000 26,000 22,179,000 4,113,854 19% 22,301,000 148,000 122,000
Golf Courses 6,619,000 - 6,619,000 2,013,303 30% 6,504,000 (115,000) (115,000)
Public Works 6,548,000 140,000 6,688,000 1,291,690 20% 6,547,000 (1,000) (141,000)
Capital Improvement Program 4,841,000 17,000 4,858,000 810,441 17% 4,477,000 (364,000) (381,000)
Fire 62,242,000 21,000 62,263,000 10,448,012 17% 63,287,000 1,045,000 1,024,000
Police 94,963,000 7,000 94,970,000 17,546,322 18% 96,776,000 1,813,000 1,806,000
Citywide Accounts(') 8,817,535 650,000 9,467,535 3,524,113 40% 13,641,000 4,823,465 4,173,465
Citywide Acc-Operating Contingency 1,000,000 - 1,000,000 0 0% 0 (1,000,000) (1,000,000)
Citywide Accounts-Normandy Shore 187,292 - 187,292 0 0% 196,000 8,708 8,708
Citywide Accounts-Transfers 2,845,173 5,000 2,850,173 0 0% 2,850,000 4,827 (173)
Capital Renewal&Replacement 1,859,000 1,859,000 0 0% 1,859,000 0
TOTAL EXPENDITURES $ 256,280,000 $ 1,390,000 $ 257,670,000 $49,021,842 19% $ 261,875,000 $ 5,596,000 $ 4,206,000
EXCESS OF REVENUES OVER/
UNDER EXPENDITURES $ 0 $ 0 1$15,809,377 1 $ (3,006,000)1$ 3,007,000 $ 3,007,000
Ci ide Acc-Operating Contingency 0 1 01 01 1 750,000 1 750,000 1 750,000
EXCESS OF REVENUES OVER/
(UNDER)EXPENDITURES(NET OF
OPERATING CONTINGENCY) $ (0)1$ 0 $ 0 1$15,809,377 1 $ (3,756,000)1$ (3,757,000)1$ 3,757,000
LTC -Analysis Of Budget To Actual Revenues And Expenses For The Three Months Ending December
31, 2012, With Operating Budget Projections Through September 30, 2013
Page 14 of 14
SCHEDULE B
POLICE OVERTIME FY13 PROJECTION - EXCLUDING REIMBURSABLES BY NON CITY ENTITIES
- - -- FY13
FY13 Adopted Projection as
FY10 Actual FY11 Actual FY32 Actual Budget YTD Actual of Jan 2013 FY13 Variance %Variance
South Pointe Spring Break 0 92,203 121,067 100,000 0 121,000 21,000 21%
South Pointe Other 72,241 69,018 137,375 100,000 49,359 117,000 17,000 17%
City Center 174,814 350,461 452,475 450,000 117,491 349,000 (101,000) -22%
Crime Investigations 987,957 920,087 979,973 899,366 239,052 829,000 (70,366) -8%
Manpower Shortage 921,943 829,267 1,350,536 866,000 450,530 1,338,000 472,000 549'.
General Fund Regular 373,194 403,311 621,555 379,000 191,806 479,000 100,000 26%
NRO Homeless 519 10,007 45,928 10,000 12,267 32,000 22,000 216%
Spring Break 0 561,042 726,401 750,000 0 750,000 0 0%
Other Special Events(incldudingSpring Break
and New Year's Eve priorto FY 2010/11 and
New Year's Eve prior to FY 2011/12) 871,475 419,391 635,138 150,000 204,534 368,000 218,000 145%
Memorial Day 0 857,044 954,704 916,000 0 955,000 39,000 4%
New Year's Eve(Previously budgeted under
Mis.Special Events) 44,671 159,817 0 105,000 106,829 107,000 2,000 2%
Misc.Special Events 0 0 0 100,000 0 50,000 (5Q000) -5095
!Char ebackstoSanitation/Parks/E911/Parkin * 580,464 401,699 160,917 160000 35,923 137,000 (23,000) -14%
(Other* 166,986 303,908 116,475 -258,000 95,417 216,000 474,000 -184%
Sub-TotalTotal $4,194,264 $5,377,256 $6,30 ,546 $4,727,365 $1,503,207 $5,848,000 $1,120,634
_ I
TOTALOVERTIIVIE 4,194,264 5,377,256 6,302,546 5,271,000 1,503,207 5,847,000 576,000 11%
RDA-City Ctr 174,814 350,461 452,475 450000 117,491 349,000 (101,000) -22%
Spring Break 0 653,245 693,705 85Q000 0 871,000 21,000 2%
Memorial Day 0 0 954,704 916,000 0 955,000 39,000 4%
New Year's Eve(Previously budgeted under
Mis.Special Events) 0 891 104,782 105,000 106,829 107,000 2,000 2%
Parking 148,618 110,304 313 0 0 0 0 0%
OtherReimbursables 0 0 -1,734 0 183,434 183,000 183,000 100%
Sanitation 31,256 30,429 26,916 30,000 2,036 20,000 (10,000) -33%
Net General Fund 3,839,576 4,231,925 4,071,385 2,920,000 1,093,416 3,362,000 442,000 159/
E-911 399,905 259,066 133,688 130000 33,886 117,000 (13,000) -10%
Me mona'Day prior to FY 12 0 857,044 0 0 0 0 0 0%
Parks 0 1,009 2,472 0 0 0 0 0%
Police GF 3,439,671 3,114,806 3,935,224 2,790,000 1 1,059,530 1 3,245,000 455,000 3b%