LTC 100-2018 FY 2017_18 First Quarter AnalysisM 0' ' I
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OFFICE OF THE CITY MANAGER
LTC# 100-2018
TO: Mayor Dan Gelber and Members ofli �e Ci*CommsssJi
FROM: Jimmy L. Morales, City Manager
DATE: February 23, 2018
SUBJECT: FY 2017/18 First Quarter Analysis
The purpose of this Letter to Commission (LTC) is to provide the Mayor and Members of the
City Commission with the status of the FY 2017/18 budget to actual revenue and expenses
incurred for the first quarter ending December 31, 2017, with projections through fiscal year-end
September 30, 2018. The City's Charter requires that "the City Manager shall make public a
quarterly report showing the actual expenditures during the quarter just ended against one
quarter of the proposed annual expenditures set forth in the budget."
The first quarter of any fiscal year is not necessarily the clearest indication of the experience for
the remainder of the fiscal year, but does, however, provide a first glance in identifying any
potential issues. Certain assumptions for both revenues and expenditures have been made that
will be further refined and adjusted for in later projections as additional information becomes
available. 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
impact the projections going forward.
The First Amendment to the Fiscal Year (FY) 2017/18 budget adopted by the City Commission
on November 13, 2017, pursuant to Resolution No. 2017-30088, recognized a preliminary FY
2016/17 year-end surplus of approximately $8.1 million in the General Fund. Of this surplus,
$3.6 million was set aside for encumbrances and projects which were delayed in FY 2016/17,
$3.0 million was set-aside to be carried forward as part of the FY 2017/18 adopted budget, $1.5
million was set aside in reserves based on the Building Department's operations, which is
restricted for Building related activities, and $3.4 million was set aside for emergency Hurricane
Irma expenditures.
FY 2016117
Estimated General Fund Year -End Surplus: $ 8,076,000
Carryforward of FY17 Encumbrances (2,403,000)
Carryforward of FY17 Appropriations (1,139,000)
Building Reserve (1,534,000)
FY17 Reserve Set -Aside for FY18 (3,000,000)
Sub -Total $ 0 1
Hurricane Irma Related Expenditures (3,390,000)
Use of General Fund Emergency Reserves 3,390,000
Tota 1 $ 0
LTC — FY 2017/18 First Quarter Analysis
Page 2 of 11
GENERALFUND
General Fund First Quarter Status
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2017 through December 31, 2017 reveals an operating budget surplus of $110.3 million.
While the actual surplus as of December 31, 2017 seems unusual as compared to the
projection for the current fiscal year ending September 30, 2018, it should be noted that the City
receives a greater percentage of ad valorem taxes during the first quarter of the fiscal year. Ad
valorem tax revenues represent approximately 53.1 percent of total budgeted revenues and
represent 80.4% of the revenues received during the first quarter of the fiscal year.
As of December 31, 2017, revenues collected were approximately 54.6% of the amended
budget or $183.0 million. Expenditures were approximately 21.7% of the amended budget or
$72.7 million; however, it is important to note that there are often delays in expenditures during
the first quarter of the fiscal year.
Actuals as of Variance from 1/4
General Fund Adopted Budget Amended Budget 1/4 ofAmended Budget 12/31/2017 Amended Budget
Over/(Under)
Revenues $ 330,850,000 $ 334,869,000 $ 83,717,250.00 $ 182,991,555 $ 99,274,305
Expenditures $ 330,850,000 $ 334,869,000 $ 83,717,250.00 $ 72,687,220 $ (11,030,030)
Excess of Revenues Over/(Under) Expenditures $ 110,304,335
General Fund Year -End Projections
Projected year-end operating revenues and expenditures through September 30, 2018 provide
a more realistic snapshot of any anticipated year-end surpluses or shortfalls as of this point in
time. Further, while the actual revenues and expenses presented are as of December 31, 2017,
some of the projections have incorporated more current information, if available.
A summary of the preliminary General Fund revenues and expenditures projected through
September 30, 2018 reflects a year-end surplus of $711,000. It should be noted that this
analysis is a preliminary r)roiection based on the experience of the first quarter, which is not
necessarily a definitive indication of the experience for the remainder of the current fiscal year. It
does, however, provide a first glance in identifying any potential concerns later in the fiscal year.
Revenues $ 330,850,000 $ 334,869,000 $ 335,352,000 $ 483,000 0.1%
Expenditures $ 330,850,000 $ 334,869,000 $ 334,641,000 $ (228,000) -0.1%
Excess of Revenues Over/(Under) Expenditures $ 711,000
General Fund Operating Revenues
For a detail of General Fund revenues by category, see attached Schedule A.
At this time, property tax collections for FY 2017/18 are being projected at approximately 95
percent of total property taxes assessed, which is consistent with the original adopted budget
thus allowing adjustments for discounts, as well as a level of adjustments for appeals consistent
with long-term historical levels. It is important to note that in the last few years property tax
collections have been below prior year levels due to higher levels of appeals and adjustments.
LTC — FY 2017/18 First Quarter Analysis
Page 3 of 11
The impact of appeals and adjustments for the FY 2017/18 budget will be provided by the
Miami -Dade County Property Appraiser in July when the certified property values are received.
Overall, revenues are projected to be 0.1%, or $483,000, above the amended budget. As in
prior years, significant variances to budget in excess of 10%, or $300,000, by revenue category
are explained below:
Other Taxes — This category includes franchise tax revenues such as electricity, gas,
waste contractors, and cable TV, as well as utility tax revenues, and is projected to be
above the amended budget by 3.0%, or $685,000, primarily due to projected increases in
franchise and utility collection for electricity and telephone, based on collections to date.
Charges for Services — This category includes revenues from activities and programs
offered by the Parks and Recreation Department such as after school and summer classes,
as well as public safety, passport, and lot clearing services, and is projected to be below
the amended budget by 5.8%, or $711,000, primarily due to projected decreases in
revenues from after-school and summer programs resulting from an increasing number of
children receiving scholarships, as well as diminished demand for rescue and off-duty fire
watch services.
Miscellaneous — This category includes revenues from various categories such as
concessions, reimbursements, and miscellaneous revenue categories such as beach
access fees and sale of city property. Projected collections are 4.0%, or $563,000, above
the amended budget, primarily due to the City vacating a 20 -foot -wide public right-of-way
that runs parallel to Alton Road between Alton Road and West Avenue from Lincoln Road
to 17th Street pursuant to the development agreement that was executed between the City,
1698 Alton Road Ventures, LLC, and 1681 West Ventures, LLC, as adopted by Resolution
No. 2016-29639. In connection with vacating the parcel, the City received a voluntary
contribution of $665,000 from the developer. Of this amount, $532,000 went to the General
Fund and the remaining balance of $133,000 went to the Transportation Trust Fund
pursuant to Resolution No. 2016-29500 adopted by Commission July 13, 2016, which
outlines that 20% of all one-time unrestricted capital payments to the City of $500,000 or
more be deposited in a trust fund for capital or acquisition costs associated with mass
transit.
General Fund Operating Expenditures
As of December 31, 2017, actual expenses were approximately 21.7% of budget, or $72.7
million. As of December 31, 2017, expenditures through fiscal year-end September 30, 2018 are
projected to be $334.6 million, which is approximately 0.1%, or $228,000, below the current
amended budget for FY 2017/18. These projections are based on an analysis of the first
quarter, as well as additional information available, and will be monitored continually.
A comparison of actual expenses and projected expenditures to budget by department as of
December 31, 2017 is provided in the attached Schedule A. As in prior years, departments
projected to exceed budget, or with significant variances to budget in excess of 10%, or
$300,000, are explained below:
LTC — FY 2017/18 First Quarter Analysis
Page 4 of 11
Emergency Management — The department is projected to be above the amended budget
by $898,000 as a result of expenditures related to Hurricane Irma, which continued in FY
2017/18. These included additional consulting services for financial recovery efforts,
temporary office personnel to prepare and compile required documentation, additional
security guard services, and rental of machinery and equipment.
Variance
Amended Budget Projected Projected vs Amended % Over / (Under)
Budget
Expenditures $ 3,181,000 $ 4,079,000 $ 898,000 28.2%
Parks and Recreation — The department is projected to be 0.9%, or $332,000, above the
amended budget as a result of expenditures related to Hurricane Irma as well, which
continued to be incurred in FY 2017/18. These expenditures included structural repairs to
shade structures in several playgrounds, fence repairs, tree removal and clean-up services,
irrigation system repairs, additional landscaping, and repairs to the Normandy Shores golf
course driving range net.
Variance
Amended Budget Projected Projected vs Amended % Over / (Under)
Budget
Expenditures $ 36,496,000 $ 36,828,000 $ 332,000 0.9%
Citywide Accounts — The Citywide Accounts are projected to be above the amended
budget by 2.5%, or $382,000, primarily due to a $278,000 increase in 415 Excess Benefit
Pension Plan City contributions for retirees based on the new IRS tax limits which were set
after adoption of the FY 2017/18 budget, as well as a $150,000 increase in water, sewer,
and storm water utility usage in the City's General Fund facilities.
Citywide Accounts
Variance
Amended Budget Projected Projected vs Amended % Over / (Under)
Budget
Expenditures
ENTERPRISE FUNDS
15,132,000 $ 15,514,000 $ 382,000 2.5%
The City accounts for proprietary operations in its Enterprise Funds. Convention Center,
Parking, Sanitation, Sewer, Storm Water, and Water are included in this category. Expenditures
in these funds are budgeted to be fully offset by charges for services.
An analysis of the actual three-month operating expenses for the period October 1, 2017
through December 31, 2017, reveals that Sanitation, Storm Water, Parking, and Convention
Center have expenses less than one-quarter of their amended budget as of December 31,
2017. This, however, is not representative of trends for a full fiscal year, as there is often a lag in
expenditures, particularly related to those billed by outside entities. Conversely, Water and
Sewer have expenses more than one-quarter of their amended budget as of December 31,
2017, due primarily to Miami -Dade County Environmental Resources Management (DERM)
fees which are paid at the commencement of each fiscal year based on prior year operations.
LTC — FY 2017/18 First Quarter Analysis
Page 5 of 11
FY 2017/18 Adopted Budget
Budqet Amendment - 11/13/17
FY 2017/18 Amended Budqet
21,221,000 49,666,000 28,327,000 38,321,000 58,734,000 12,688,000
1,503,000 439,000 458,000 877,000 551,000 937,000
22,724,000 50,105.000 28,785.000 39,198,000 59,285,000 13,625,000
1/4 Adopted Budget 5,305,250 12,416,500 7,081,750 9,580,250 14,683,500 3,172,000
1/4 Amended Budget 5,681,000 12,526,250 7,196,250 9,799,500 14,821,250 3,406,250
Revenues as of 12/31/2017 3,626,397 11,390,865 6,699,158 7,941,741 11,145,548 52,513
lExpenditures as of 12/31/2017 5,129,241 13,276,228 5,380,413 12,660,455 9,406,583 1,559,867
Expenditures Above/(Below) Amended Budget (551,759) 749,978 (1,815,837) 2,860,955 (5,414,667) (1,846,383)
% Variance -2.4% 1.5% -6.3% 7.3% -9.1% -13.6%
Year-end operating revenue and expenditure projections through September 30, 2018 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in
time. In addition, while the actual revenues and expenses presented above are as of December
31, 2017, the year-end projections have incorporated more recent information, if available.
As represented below, Sewer, Storm Water, Water, Parking, and Convention Center revenues
are projected to be equivalent to or in excess of expenditures at year-end. For Sanitation,
however, expenditures are projected to be in excess of revenues due to expenditures related to
citywide debris removal and disposal as a result of Hurricane Irma.
FY 2017/18 Adopted Budget
Budget Amendment - 11/13/17
FY 2017/18 Amended Budqet
FY2017/18 PROJECTIONS
Charges for Services
Other
FY 2017/18 Revenue Projections
$ Overl(Under) Amended Budget
% Over/(Under) Amended Budget
FY 2017/18 Expenditure Projections
$ Overl(Under) Amended Budget
% Over/(Under) Amended Budget
I Excess of Revenues Overl(Under) Expenditures
21,221,000
49,666,000
28,327,000
38,321,000
58,734,000
1,503,000
439,000
458,000
877,000
551,000
22,724,000
50,105,000
28,785,000
39,198,000
59,285,000
17,743,000
51,142,000
29,111,000
34,825,000
46,252,000
5,164,000
511,000
36,000
4,133,000
9,944,000
22,907,000
51,653,000
29,147,000
38,958,000
56,196,000
183,000
1,548,000
362,000
(240,000)
(3,089,000)
0.8%
3.1%
1.3%
-0.6%
-5.2%
23,917,000
49,852,000
28,727,000
38,958,000
56,196,000
1,193,000
(253,000)
(58,000)
(240,000)
(3,089,000)
5.2%
-0.5%
-0.2%
-0.6%
-5.2%
(1.010,000)
1.801,000`
420;000
0
0
12,688,000
937,000
13,625,000
10,019,000
3,316,000
13,335,000
(290,000)
-2.1
13,335,000
(290;000)
-2.1
01
As in prior years, departments projected to exceed budget, or with significant variances to
budget in excess of $300,000 or 10 percent, are explained below:
Sanitation — Expenditures are projected to be 5.2%, or $1,193,000, above the amended
budget due to expenditures related to citywide debris removal and disposal as a result of
Hurricane Irma, as previously mentioned. Since the projected overage is due to the impact
of Hurricane Irma, Sanitation's emergency reserves will be utilized to fund these
unforeseen expenditures with the estimation that sixty percent of these hurricane -related
expenditures will be reimbursed by the Federal Emergency Management Administration
(FEMA) in the near future, resulting in approximately $477,000 of potential unreimbursed
expenditures in the Sanitation Fund. Once received, the reimbursements would be utilized
to replenish these emergency reserves.
Parking — Expenditures are projected to be 5.2%, or $3,089,000, below the amended
budget, primarily due to a decrease in the amount available to be set-aside for capital
renewal and replacement of existing Parking Department assets in the amount
approximately $3.07 million. This reduction is directly related to demand and usage of on -
street and off-street parking, which has been significantly impacted by private on -demand
LTC — FY 2017/18 First Quarter Analysis
Page 6 of 11
ride booking services. In addition, savings are also projected for the Parking Department's
transportation subsidy based on a projected increase in contributions of the 1% Quality of
Life Resort Tax subsidy which also funds transportation operations.
INTERNAL SERVICE FUNDS
The City accounts for those goods and services provided by one department to other
departments citywide on a cost reimbursement basis as Internal Service Funds. Central
Services, Fleet Management, Information Technology, Property Management, Medical and
Dental, and Risk Management (Self Insurance) comprise this category of proprietary funds.
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2017 through December 31, 2017, reveals that Fleet Management, Information Technology,
Property Management, and Risk Management all have expenses less than one-quarter of the
FY 2017/18 Amended Budget, which are primarily due to expenditures that are typically incurred
later in the fiscal year. Conversely, Central Services and Medical and Dental have expenses
that are more than one-quarter of the FY 2017/18 Amended Budget. For Central Services, this
is due to annual payments for metered postage services which are made at the beginning of
each fiscal year. For Medical and Dental, this is due to large medical claims which have been
incurred during the first quarter of the fiscal year.
FY2017/18 Adopted Budget
1,074,000
8,803,000
16,250,000
8,664,000
19,270,000
31,962,000
Budget Amendment -11/13/17
0
14,000
480,000
386,000
0
0
IFY2017/18Amended Budget
1,074,000
8,817,000
16,730,000
9,050,000
19,270,000
31,962,000
1/4 Adopted Budget
268,500
2,200,750
4,062,500
2,166,000
4,817,500
7,990,500
1/4 Amended Budqet
268,500
2,204,250
4,182,500
2,262,500
4,817,500
7,990,500
Revenues as of 12/31/2017
275,811
2,323,576
3,950,210
2,181,675
4,429,903
8,090,234
Expenditures as of12/31/2017
277,308
2,113,972
2,511,721
1,756,006
3,340,269
8,295,075
Expenditures Above/(Below) Amended Budget
8,808
(90,278)
(1,670,779)
(506,494)
(1,477,231)
304,575
% Variance
0.8%
-1.0%
-10.0%
-5.6%
-7.7%
1.0%
Year-end operating revenue and expenditure projections through September 30, 2018 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in
time. Additionally, while the actual revenues and expenses presented above are as of
December 31, 2017, the year-end projections have incorporated more recent information, if
available.
As represented below, Central Services, Information Technology, Property Management, Risk
Management, and Medical and Dental revenues are projected to be equivalent to or in excess
of expenditures as of year-end. For Fleet Management, however, expenditures are projected to
be in excess of revenues due to additional financing expenditures associated with the City's
outstanding equipment loan, which has historically been utilized to fund the acquisition of
vehicles for the City's General Fund departments. It is important to note that Internal Service
departments function on a cost reimbursement basis; therefore, should Fleet Management
exceed its amended budget as of year-end of FY 2017/18, the overage will be charged back to
the applicable departments as such.
LTC — FY 2017/18 First Quarter Analysis
Page 7 of 11
Excess of Revenues Over/(Under) Expenditures _ 0
iforrhkfwon
Central3ervices
Fleet
rvieuicara
Dental
aohno(ogy
Management
FY 2017/18 Adopted Budget
1,074,000
8,803,000
Budget Amendment - 11/13/17
0
14,000
IFY 2017/18 Amended Budget
1,074,000
8,817,000
FY 2017/18 PROJECTIONS
16,730,000
9,050,000
Charges for Services
1,068,000
8,475,000
Other
5,000
401,000
FY 2017/18 Revenue Projections
1,073,000
8,876,000
$ Overl(Under) Amended Budget
(1,000)
59,000
% Over/(Under) Amended Budget
-0.1%
0.7
�FY2017/18 Expenditure Projections
1,073,000
8,876,000
$ Over/(Under) Amended Budget
(1,000)
59,000
% Over/(Under) Amended Budget
-0.1%
0.7%
Excess of Revenues Over/(Under) Expenditures _ 0
iforrhkfwon
Properly
Risk
rvieuicara
Dental
aohno(ogy
Management-
Management
lnsurerlg"
16,250,000
8,664,000
19,270,000
31,962,000
480,000
386,000
0
0
16,730,000
9,050,000
19,270,000
31,962,000
15,611,000
8,630,000
17,848,000
32,715,000
1.013,000
251,000
1,168,000
1,007,000
16,624,000
8,881,000
19,016,000
33,722,000
(106,000)
(169,000)
(254,000)
1,760,000
-0.6%
-1.9%
-1.3%
5.5%
16,624,000
8,881,000
19,016,000
33,722,000
(106;000)
(169,000)
(254,000)
1,760,000
-0.6%
-1.9%
-1.3%
5.5%
0
0
0_
01
Fleet Management — Expenditures are projected to be 0.7%, or $59,000, above the
amended budget due to additional financing expenditures associated with the City's
outstanding equipment loan, which has historically been utilized to fund the acquisition of
vehicles for the City's General Fund departments. As previously mentioned, should Fleet
Management exceed its amended budget as of year-end of FY 2017/18, the overage will be
charged back to the applicable departments at year-end.
Medical and Dental — Expenditures are projected to be 5.5%, or $1,760,000, above the
amended budget due to medical claims trending higher than budget based on current year-
to-date claims experience and adjusted actuarial forecasts resulting from this unforeseen
claims experience. Since claims can vary significantly throughout the year, this is a
conservative projection, and we will continue to monitor the trend over the upcoming
months. If the claims experience continues to trend at current levels for the remainder of the
fiscal year available fund balance may be realized to cover the projected shortfall year-end
shortfall.
SPECIAL REVENUE FUNDS
Special Revenue Funds consist of revenues and expenditures which are legally restricted or
committed for specific purposes other than debt service and/or capital projects. Special
Revenue Funds include Resort Tax, as well as 7th Street Garage Operations, 5th & Alton Garage
Operations, Tourism and Hospitality Scholarship Program, Tree Preservation and
Commemorative Tree Trust Fund, Waste Hauler and Sustainability Contributions, Education
Compact Fund, Red Light Camera Program, Emergency 911 Fund, Information and
Communications Technology Fund, People's Transportation Plan (PTP) Fund, Miami Beach
Cultural Arts Council, Police Unclaimed Property and Crash Report Sales Funds, Police
Confiscation Trust Funds (Federal and State), and Police Training and School Resources Fund.
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2017 through December 31, 2017, reveals that all Special Revenue Funds, except the Police
Federal Confiscation and Police Training and School Resources Fund, have expenses less than
one-quarter of the FY 2017/18 Amended Budget, which are primarily due to expenditures that
are typically incurred later in the fiscal year. The Police Federal Confiscation and Police Training
and School Resources Fund have expenses that are more than one-quarter of the FY 2017/18
Amended Budget due to one-time annual expenses, such as equipment purchases, which were
incurred in the first quarter of the fiscal year.
LTC — FY 2017/18 First Quarter Analysis
Page 8 of 11
While all Special Revenue Funds are projected to be at or below their FY 2017/18 amended
budgets as of year-end, departments projected to exceed budget, or with significant variances
to budget in excess of 10%, or $300,000, are further explained below:
5t" & Alton Garage — The fund is projected to be 12.6%, or $80,000, below the amended
budget due primarily to decreases in transient, tenant, and valet parking revenues resulting
from increased usage of on -demand ride booking services, thereby reducing the budgeted
set-aside funded renewal and replacement. Additionally, savings in miscellaneous insurance
are also projected based on the operator's current insurance carrier.
Red Light Camera — The fund is projected to be 47.0%, or $627,000, below the amended
budget due to delays in the installation of an additional five red light cameras which were
originally projected to be installed and fully operational effective January 2018 and
diminishing revenues generated from the existing red light cameras which are operational.
Due to ongoing policy discussions at the local and State level regarding the entire program,
it is unknown at this time if the additional five cameras will be installed in the near future.
This has resulted in a reduction of the projected expenditures of the program, which is
directly correlated to revenues generated from the violations which are issued.
Tree Preservation — The fund is projected to be 21.2%, or $39,000, below the amended
budget due primarily to the after effects of Hurricane Irma since many of the City's canopy
trees were lost resulting in a drastic decrease in requests for tree removal permits.
Commemorative Tree Trust — The fund is projected to be 50.0%, or $5,000, below the
amended budget due primarily to a decrease in anticipated donations.
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
• Ocean Rescue services
• Sidewalk pressure cleaning in South, Middle and North Beach visitor areas
• South Beach sanitation
• Enhanced Code Compliance/Enforcement provided to respond to evening entertainment
area violations and staffing of special events
• Other Code Compliance/Enforcement activities in tourism and visitor related
facilities/areas
• Tourism and Cultural Development Department and the Cultural Arts Council
• Museums and Theatres (Garden Center, Bass Museum, Colony and Byron Carlyle
Theatres)
LTC — FY 2017/18 First Quarter Analysis
Page 9 of 11
• Golf courses (net of revenues)
• Memorial Day and other special event costs
• Homeless services
• July 4t", Visitor Center funding, Holiday Lights, Festival of the Arts, Jewish Museum,
MDPL, Orange Bowl, Monuments, etc.
These allowable uses have led to increased tourism related activities, such as special events
including Art Basel, Air and Sea Show, and various concerts.
Two percent Resort Tax Fund operating revenues are projected to be at budget, which was
based on a 1% increase over FY 2016/17 actuals. Although the January 2018 collections
increased by approximately 16.0%, or $859,000, over January 2017 collections, October 2017
through December 2017 collections, combined, decreased by approximately 4.9%, or $544,000,
compared to the same period of the prior fiscal year. Combined, two percent collections from
October 2017 through January 2018 have yielded a 1.9%, or $315,803 increase, over prior year
collections for the same period last fiscal year.
For this reason, the two percent Resort Tax operating revenues are conservatively being
projected at budget as of year-end. As additional information becomes available, these
projections will be adjusted accordingly. Two percent Resort Tax Fund expenditures, however,
are projected to be below the amended budget by approximately by 0.2%, or $129,000, based
on savings in salaries and benefits resulting from position vacancies in the Internal Audit and
Code Compliance Division that have not yet been filled.
The proceeds of the additional one percent bed tax are used as follows: 45% is allocated for
Transportation initiatives in tourist -related areas; 15% is allocated equally among North Beach,
Middle Beach and South Beach for capital projects that enhance Miami Beach's tourist related
areas; and 10% is allocated to various arts and cultural programs. The 1 percent Resort Tax
Fund operating revenues and expenditures are projected to be at budget as of year-end. Like
the two percent collections, although the one percent January 2018 collections increased
approximately 21.9%, or $287,000, over January 2017 collections, the October 2017 through
December 2017 one percent collections, combined, decreased 8.6%, or $219,000, compared to
the same period of the prior fiscal year. Similar to the 2% revenues, the one percent Resort Tax
operating revenues are being conservatively projected at budget as of year-end. Since the
transfers for transportation initiatives, quality of life projects, and arts and cultural programs are
based on collections, the one percent Resort Tax expenditures are equally projected to be at
budget as well.
Lastly, the proceeds of the additional 1% bed tax for Convention Center debt service are also
projected to be at budget. Since all proceeds from the additional 1% bed tax assessed must be
set-aside to fund current and future debt service obligations, expenditures for the additional 1%
Convention Center bed tax are also projected to be at budget as of year-end as well.
Overall, projected revenues and expenditures are both estimated to be 0.2%, or $129,000,
below the amended budget as of year-end.
LTC — FY 2017/18 First Quarter Analysis
Page 10 of 11
Revenues
2% Resort Tax
1 % Resort Tax
Additional 1 % for Convention Center
Miscellaneous Revenues
Transfer In from Fund Balance
Total Revenues
Expenditures
General Fund Contribution
Contributions to VCA and GMCVB
Contribution to Mt. Sinai
Other Operating/Other Uses
Marketing
Contingency
Additional 1 % Debt Service for Convention Center
Transfer to Capital, Transp, and Arts
Total Expenditures
Excess of Revenues Over/(Under) Expenditures
CONCLUSION
56,485,000
56,485,000
7,963,983
56,485,000
0.0%
13,271,000
13,271, 000
1,757,385
13, 271,000
0.0%
13,271,000
13,271,000
1,757,385
13, 271,000
0.0%
206,000
206,000
84,806
77,000
(129,000)
-62.6%
0
173,000
0
173,000
(0)
0.0%
83,233,000
83,406,000
11,563,558 1
83,277,000
(129,000)1
-0.2%
34,950,000
34,950,000
8,737,500
34,950,000
-
0.0%
9,254,000
9,254,000
0
9,295,000
41,000
0.4%
1,000,000
1,000,000
0
1,000,000
-
0.0%
11,037,000
11,210,000
1,913,581
11,040,000
(170,000)
-1.5%
200,000
200,000
1,037
200,000
0.0%
250,000
250,000
0
250,000
0.0%
13,271,000
13,271,000
0
13,271,000
0.0%
13,271,000
13,271,000
1,757,385
13,271,000
-
0.0%
83,233,000
83,406,000
12,409,502 1
83,277,000
(129,000)1
-0.2%
0
0 1
(845,944)1
0
1
This analysis of budget to actual operating revenues and expenses as of December 31, 2017,
with projections through September 30, 2018, provides the status of the FY 2017/18 Amended
Budget for the first three months of the fiscal year. Although the first quarter of any fiscal year is
not necessarily the most reliable indication of the experience for the remainder of the fiscal year,
it does provide a first glance in identifying any potential issues.
Based on preliminary projections, the General Fund is anticipated to have a surplus totaling
$711,000 as of year-end. We will continue to monitor all funds throughout the upcoming
months.
J LM/JW/TOS
LTC - FY 2017/18 First Quarter Analysis
Page 11 of 11
SCHEDULE A
CITY OF MIAMI BEACH
FY 2017/18 GENERAL FUND
1st QUARTER
FY 2017/18
FY 2017/18
Actuals as of
%Actual of
Adopted
Amended
December 31,
Amended
Budget
Budget
2017
Budget
REVENUES
Ad Valorem Taxes
174,642,000
174,642,000
146,210,041
83.7%
174,642,000
0
0.01/4
Ad Valorem Taxes - Capital Renewal & Replacement
721,000
721,000
721,000
100.0%
721,000
0
0.0°k I
Ad Valorem Taxes - Normandy Shores
181,000
181,000
181,000
100.0%
181,000
0
0.00ri I
Other Taxes
22,856,000
22,856,000
3,725,561
16.3%
23,541,000
685,000
3.0°h
Licenses and Permits
30,940,000
31,417,000
8,286,269
26.4%
31,336,000
(81,000)
-0.30 l
Intergovernmental
11,255,000
11,255,000
2,049,874
18.2%
11,526,000
271,000
2.4%
Charges for Services
12,246,000
12,246,000
2,558,191
20.9%
11,535,000
(711,000)
-5.8%
Fines and Forfeitures
1,351,000
1,351,000
387,321
28.7%
1,365,000
14,000
1.0%
Interest
692,000
692,000
186,376
26.9%
692,000
0
0.0%
Rents and Leases
5,947,000
5,947,000
2,127,714
35.8%
5,689,000
(258,000)
-4.3%
Miscellaneous
14,245,000
14,245,000
3,364,707
23.6%
14,808,000
563,000
4.0%
Other -Resort Tax Contribution
34,950,000
34,950,000
8,737,500
25.0%
34,950,000
0
0.0%
Other -Non -Operating Revenues
20,824,000
20,824,000
4,456,000
21.4%
20,824,000
(0)
0.0%
Prior Year -End Surplus Carryover
0
3,542,000
0
0.0%
3,542,000
0
0.0%
TOTAL REVENUES
330,850,000
334,869,000
182,991,555
54.6%
335,352,000
483,000
0.1%1
EXPENDITURES
Building
15,369,000
15,761,000
3,164,534
20.1%
15,466,000
(295,000)
-1.9%I
Capital Improvement Projects
5,090,000
5,090,000
1,082,271
21.3%
4,862,000
(228,000)
-4.59A
City Attorney
5,815,000
5,859,000
1,120,918
19.1%
5,708,000
(151,000)
-2.6%•
City Clerk
1,730,000
1,760,000
362,172
20.6%
1,756,000
(4,000)
-0.2%
City Manager
3,969,000
3,969,000
881,159
22.2%
3,937,000
(32,000)
-0.8%
Code Compliance
5,990,000
6,015,000
1,341,174
22.3%
5,844,000
(171,000)
-2.8%
Communications
2,136,000
2,136,000
415,903
19.5%
2,121,000
(15,000)
-0.7%
Emergency Management
3,270,000
3,181,000
470,395
14.8%
4,079,000
898,000
28.2%
Environment & Sustainability
1,265,000
1,265,000
233,756
18.5%
1,253,000
(12,000)
-0.9"h
Finance
6,059,000
6,073,000
1,397,619
23.0%
6,058,000
(15,000)
-0.2%
Fire
82,468,000
83,414,000
19,540,332
23.4%
83,373,000
(41,000)
0.0%
Housing & Comm Services
3,237,000
3,345,000
681,772
20.4%
3,337,000
(8,000)
-0.2%
Human Resources/Labor Relations
2,807,000
2,807,000
604,911
21.6%
2,805,000
(2,000)
-0.1%
Mayor and Commission
2,310,000
2,310,000
517,464
22.4%
2,300,000
(10,000)
-0.4%
Internal Audit
848,000
1,037,000
179,603
17.3%
997,000
(40,000)
-3.9%
Office of Budget & Performance Improv
1,708,000
1,765,000
366,836
20.8%
1,734,000
(31,000)
-1.8%
Organizational Development & Perf Initiatives
887,000
888,000
162,277
18.3%
888,000 '
0
0.0%
Parks and Recreation
35,735,000
36,496,000
8,184,972
22.4%
36,828,000
332,000
0.9%
Planning
4,518,000
4,693,000
1,009,616
21.5%
4,627,000
(66,000)
-1.4%
Police
108,654,000
109,082,000
25,537,807
23.4%
108,847,000
(235,000)
-0.2%
Procurement
2,433,000
2,486,000
524,858
21.1%
2,382,000
(104,000)
-4.2%
Public Works
15,268,000
15,773,000
2,787,325
17.7%
15,643,000
(130,000)
-0.8%
Tourism, Culture, & Economic Development
4,519,000
4,532,000
717,031
15.8%
4,282,000
(250,000)
-5.5%
Citywide Accounts& Operating Contingency
11,367,000
11,734,000
1,402,515
12.0%
12,116,000
382,000
3.3%
Citywide -Normandy Shores
277,000
277,000
0
0.0%
277,000 `
0
0.0%
Citywide -Transfers -Pay -As -You Go Capital Fund
2,400,000
2,400,000
0
0.0%
2,400,000
0
0.0%
Citywide -Transfers -Capital Renewal & Replacement
721,000
721,000
0
0.0%
721,000
0
0.0%
TOTAL EXPENDITURES
330,850,000
334,859,000
72.687`220
21.7°%
I
334,641,000
(228,000)
-0.1%1
EXCESS OF REVENUES OVER/(UNDER) EXPENDITURES
0
0
110.304,335
711.000
I