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2002-24940 Reso RESOLUTION NO. 2002-24940 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING TENTATIVE BUDGETS FOR THE GENERAL, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR 2002103 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED AT 5:01 P.M., THURSDAY, SEPTEMBER 26, 2002. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City of Miami Beach hereby adopts tentative budgets for the General, Enterprise, and Internal Service Funds for Fiscal Year 2002/03 as summarized and listed below, subject to a second public hearing scheduled at 5:01 P.M., Thursday, September 26,2002. REVENUES GENERAL ENTERPRISE INTERNAL CATEGORY SERVICE TOTALS GENERAL OPERATING REVENUES Ad Valorem Taxes $61,050,914 $61,050,914 Ad Valorem Taxes-RDA SO.Pointe 5,948,507 5,948,507 Ad Valorem Taxes-RDA City Center 7,380,783 7,380,783 Ad Valorem Taxes-Normandy Shores 78,000 78,000 Other Taxes 19,464,517 19,464,517 Licenses and Permits 9,636,980 9,636,980 Intergovernmental 11,424,000 11,424,000 Charges for Services 4,749,650 4,749,650 Fines and Forfeits 1,573,000 1,573,000 Interest 4,662,500 4,662,500 Rents and Leases 1,964,582 1,964,582 Miscellaneous 6,228,625 6,228,625 Other-Resort Tax contribution 16,318,450 16,318,450 Other-Non Operating revenues 6,839,896 6,839,896 Subtotal $157,320,404 $157,320,404 DEBT SERVICE Ad Valorem Taxes $10,424,846 $10,424,846 Subtotal $10,424,846 $10,424,846 FUND TOTAL $167,745,250 $167,745,250 ENTERPRISE FUNDS Convention CenterrrOPA $13,422,716 $13,422,716 Parking 19,586,828 19,586,828 Sanitation 6,639,049 6,639,049 Sewer 28,271,930 28,271,930 Stormwater 7,220,000 7,220,000 Water 19,329,810 19,329,810 FUND TOTAL $94,470,333 $94,470,333 REVENUES (cont.) GENERAL ENTERPRISE INTERNAL CATEGORY SERVICE TOTALS INTERNAL SERVICE FUNDS Central Services $733,834 $733,834 Fleet Management 5,448,031 5,448,031 Information Technology 10,502,542 10,502,542 Property Management 6,735,213 6,735,213 Risk Management 14,010,148 14,010,148 FUND TOTAL $37,429,768 $37,429,768 TOTAL - ALL FUNDS $167,745,250 $94,470,333 $37,429,768 $299,645,351 APPROPRIATIONS GENERAL ENTERPRISE INTERNAL CATEGORY DEPARTMENT/FUNCTION SERVICE TOTALS MAYOR & COMMISSION $1,084,947 $1,084,947 ADMINISTRATIVE SUPPORT SERVICES CITY MANAGER 1,714,296 1,714,296 Media Relations 254,770 254,770 CITY CLERK 1,249,064 1,249,064 Central Services $733,834 733,834 FINANCE 3,247,214 3,247,214 Information Technology 10,502,542 10,502,542 Management & Budget 579,521 579,521 FLEET MANAGEMENT 5,448,031 5,448,031 HUMAN RESOU~CES 1,708,121 1,708,121 Risk Management 14,010,148 14,010,148 INTERNAL AUDIT 379,368 379,368 PROCUREMENT 733,902 733,902 Grants Management 150,685 150,685 CITY ATTORNEY 2,969,646 2,969,646 ECONOMIC DEV. & CULTURAL ARTS Economic Development ECONOMIC DEVELOPMENT 1,118,268 1,118,268 BUILDING 4,255,249 4,255,249 PLANNING 2,255,752 2,255,752 Cultural Art ARTS, CULTURE & ENTERTAIN. 519,046 519,046 BASS MUSEUM 1,114,049 1,114,049 Tourism & Conventions CONVENTION CENTERlTOPA 13,422,716 13,422,716 OPERATIONS NEIGHBORHOOD SERVICES 3,008,413 3,008,413 PARKING 19,586,828 19,586,828 APPROPRIATIONS (cont.) GENERAL ENTERPRISE INTERNAL CATEGORY DEPARTMENT/FUNCTION SERVICE TOTALS PARKS & RECREATION 21,752,4n 21,752,4n PUBLIC WORKS 5,457,520 5,457,520 Property Management 6,735,213 6,735,213 Sanitation 6,639,049 6,639,049 Sewer Operations 28,271,930 28,271,930 Stormwater Operations 7,220,000 7,220,000 Water Operations 19,329,810 19,329,810 CAPITAL IMPROVEMENT PROGRAM 2,160,358 2,160,358 PUBLIC SAFETY FIRE 27,006,551 27,006,551 POLICE 53,789,261 53,789,261 CITYWIDE ACCTS-RDA So. Pointe 5,948,507 5,948,507 CITYWIDE ACCTS-RDA City Center 7,380,783 7,380,783 CITYWIDE ACCTS-Normandy Shores 78,000 78,000 CITYWIDE ACCTS-Operating Contingency 1,025,690 1,025,690 CITYWIDE ACCTS-Other 6,378,946 6,378,946 Subtotal $157,320,404 $94,470,333 $37,429,768 $289,220,505 DEBT SERVICE Debt Service $10,424,846 $10,424,846 Subtotal $10,424,846 $10,424,846 TOTAL - ALL FUNDS $167,745,250 $94,470,333 $37,429,768 $299,645,351 PASSED and ADOPTED this 11th day of September. 2002. ATTEST: ~A&6' f~ . CITY CLERK FUNDING APPROVAL: AND BUDGET APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION All JiAill,11 9-6-ol- '~ Date * CITY OF MIAMI BEACH . NOTICE Of PUBLIC HEARINGS . ..~.. ~ w NOTICE IS HEREBY given that public hearings will.be held by the Mayar and City Cammissian of the City af Miami Beach, Flarida, in the Cammissian Chambers, 3rd flaar, City Hall, 1700 Canventian Center Drive, Miami Beach, Flarida, an Wednesday, Septemoer 11,2002, at the tImes listed below, to' can sider the follawing OG first reading: -i :r: ~ o :> ::< , :> : c:: C) c: ~ -i ~ ~ at 5:01 p.m.: A public hearing on the propased millage rates and Budget far Fiscal Year 2002103 far the City af Miami Beach. at 5:02 p.m.: A public hearing an the proposed millage rate and budget for Fiscal Year 2002103 for the Normandy Shores Lacal Gavernment Neighborhood Impravement District. Inquiries may be directed to' the Office af Management and BUdge~ at (305) 673-7510. ~ Ii l:r lal "I II E Robert E. Parcher, City Clerk City af Miami Beach Pursuant to' Sectian 286.0105, Fla. Stat., the City hereby advises the public that: It a persan decides to' appeal any decisian made by the City Cammissian with respect to' any matter cansidered at its meeting ar its hearing, such persan must ensure that a verbatim recard af the proceedings is made, which recard includes the testimany and evidence upan which the appeal is to be based. This natice daes not censtitute censent by the City fer the intreductien ar admissien af atherwise inadmissible ar irrelevant evidence, ner dees it autherize challenges ar appeals nat atherwise allawed by law. ln accardance with the Americans with Disabilities Act ef 1990, persans needing special accommodation to' participate in this proceeding shauldcontact the City Clerk's office nO' later than four days prier to' the preceeding, telephone (305) 673-7411 for assistance; if hearing impaired, telephone the Flerida Relay Service numbers, (800) 955- 8771 (TDD) or (~o,01955-8770 (VOICE), fer assistan~e. . E at CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m -=- Condensed Title: A Resolution adopting the tentative budgets for the General, Enterprise, and Internal Service Funds for Fiscal Year 2002/03 subject to a second public hearing scheduled at 5:01 p.m., Thursday, September 26, 2002. Issue: Shall the City Commission approve the tentative budgets for the General, Enterprise, and Intemal Service Funds for Fiscal Year 2002103 and set a second public hearing for September 26,2002. Item Summary/Recommendation: The Administration recommends adopting the tentative budgets for the General, Enterprise, and Internal Service Funds for Fiscal Year 2002/03 subject to a second public hearing on September 26, 2002. Advisory Board Recommendation: I Financial Information: Source of Funds: IFin:ttJ $157,320,404 10,424,846 94,470,333 37,429,768 $299,645,351 . . ApprOVed . General Fund Operating Debt Service Enterprise Funds Internal Service Funds City Clerk's OffIce Legislative Tracking: I Jose Cruz Sign-Offs: . Department Director . T:\AGENDA\2002\SEP1102\REGULAR\BU AGENDA ITEM DATE /?7A~ ?-I/-o:L CITY OF MIAMI BEACH COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez ~C City Manager ~t' \... . DATE: September 11, 2002 TO: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING TENTATIVE BUDGETS FOR THE GENERAL, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR 2002103 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED AT 5:01 P.M., THURSDAY, SEPTEMBER 26,2002. ADMINISTRATION RECOMMENDATION SUBJECT: The Administration recommends that the City Commission adopt the attached Resolution which establishes tentative budgets for the General, Enterprise, and Internal Service Funds for Fiscal Year (FY) 2002/03. PROCEDURE As outlined in the companion Agenda Item R7 A 1, Section 200.065, Florida Statutes specifies the manner in which budgets are adopted. First, the tentative millage rate for both the general operating and debt service is adopted, then immediately thereafter, tentative budgets by fund are adopted. The attached Resolution adopting tentative budgets for the General, Enterprise, and Internal Service Funds for Fiscal Year 2002/03 is therefore presented to you at this time for adoption. BACKGROUND On July 31, 2002, the Administration released a Proposed Budget totaling $158,558,414 for the General Fund balanced with 7.299 mills, exclusive of debt service. This millage maintained current basic service levels, funded operational costs for projects expected to be completed during FY 2003, and funded enhanced service levels. The process to balance this budget was an extremely challenging one. A significant effort was made to balance the needs of the community with those operational costs for decisions made in previous years. Growth in revenues was not as robust as expected prior to September 11 and although continued revenue growth is anticipated, it has not fully regained momentum. As part of the annual budget process, the Administration looked carefully for efficiencies and savings within the current and proposed operations of all Departments and were able to achieve savings of approximately $7.8 million. Additionally, it was necessary to explore other areas where increases could be made and as a result, a number of fees that are paid to the City were reviewed. In doing so, the budget included a series of increases which bring the fees charged for certain services closer to their actual costs as well as closer to the levels other municipalities in South Florida charge for those services. (A number of the fee increases originally proposed were subsequently removed following discussions at the July 31st Commission meeting.) The proposed budget included new or increased services in the net amount of $1.2 million. In the Police Department, three sworn Police Officer positions will be moved from administrative functions to patrol duty in order to enhance the police presence in our community. Additionally, funding has been provided for an additional info tech position to support the CAD/RMS system. In the Fire Department, funding is being provided to implement the minimum staffing ordinance passed by the Commission on March 20, 2002 to take effect on November 1, 2002. This enhancement will provide the required minimum staffing of four firefighters for each Ladder Truck, Pumper or Quint, three staff for each Rescue Unit, and one officer for each EMS Supervisor Unit. In the Parks Department, funding has been included for the programs, operations and maintenance of the new Flamingo Park Pool which will be offset by a proposed increase of user fees for both residents and non-residents. Additionally, the partial year operation al cost of North Shore Park and Youth Center, which is currently under construction and expected to open during the upcoming fiscal year, has been funded. The cost of maintaining new community streetscape projects has also been provided, along with additional bus drivers to assist with providing transportation for our children who participate in parks programs. The Parks Department will also reallocate currently funded but vacant positions, to provide for one position to manage contracts and one to develop opportunities for program sponsorships and fundraising. In the area of Neighborhood Services, an initiative to provide a passport application office and increased personnel for an improved citizen response team has been funded, along with an info tech position to assist with the creation of online newsletter publications throughout the year. An additional crew was provided to increase the frequency of sweeping in residential areas in the North Beach area along with an additional crew for the South Beach Service Team was funded by the Sanitation Enterprise Fund. Funding for a new GIS and infrastructure management system has been provided by the Water, Sewer and Stormwater Enterprise Funds. These enhancements will improve the geographical mapping capabilities of the City and will be beneficial during the planning and implementation of the City's Capital Improvement Program and will provide a system for accurate utility and as-built information to be digitally incorporated into our database. Additionally, funding has been provided for manhole restoration and expanded capacity to provide ADA required curb cuts. Finally, the City will hire a dedicated publicist to promote the City as an important international tourist and business destination throughout the world which will be funded by taxes from tourist events and activities. ANALYSIS At the July 31,2002 meeting, the Mayor and Commission requested that the Administration return with adjustments to departmental budgets so that certain fees would not have to be increased in order to achieve a balanced budget. Therefore, increases to the fees for occupational licenses, certificates of use, fire inspections, sidewalk cafes and park user fees have been eliminated. These reductions totaled approximately $1.3 million. Fee increases that remained totaled approximately $300 thousand and included: Police off-duty administration, Police towing administration, lien letters and the newly established passport office. During August, the Administration met and reviewed each proposed departmental budget with the goal of identifying possible savings and efficiencies which would have the least impact on service delivery. Many items had previously been identified by departments as possibilities for savings with their budget submission. The following changes are additional savings or efficiencies that will reduce the operating costs of the City: General Fund . The Mayor and Commission will save a total of $60,651 by deferring a vacant position for 1 year ($51,651) and reducing operating costs ($9,000). . The City Manager's Office achieved savings of $139,168 by deferring a vacant position for 1 year ($131,168) and reducing operating costs ($8,000). . The City Clerk's Office saved operating expenses by $6,552. . The City Attorney's Office will save $78,000 in the area of professional services provided by outside counsel and $59,643 by reducing operating costs. . The Economic Development Department will save $2,000 in operating expenses. . The Building Department will achieve $51,173 in savings by deferring a vacant position for 1 year and another $12,100 by reducing operating costs. . Savings of $48,575 in the Planning Department were achieved by deferring a vacant position for 1 year ($35,475) and a reduction in operating costs of $13,100. . The Arts, Culture & Entertainment Department reduced $8,800 in operating expenses. . The Bass Museum achieved savings of $65,869 by reducing operating expenses and eliminating a vacant position. . The Neighborhood Services Department has achieved a savings of $73,354 by reducing operating expenses. . The Parks & Recreation Department will achieve savings of $31,000 due to reallocating pool guard positions while the Normandy Pool is closed for construction. . The Police Department will save $297,815 through a series of changes which include: moving 5 sworn officers from the Police Building lobby to patrol functions and replacing them with contracted security personnel; moving a sworn officer from the AUI/DUI division to patrol and creating a non-sworn position; reducing two civilian positions as they become vacant during FY2002/03. An additional $162,000 of savings was achieved in the area of operating costs. . Their will be a net reduction to Citywide accounts of $67,000. These savings are generated as follows: $67,000 from the combination of the North and Middle Beach pressure cleaning crews; $50,000 by eliminating the Lincoln Road Tram and $25,690 from a reduction in the City's contribution to security services for the Normandy Shores Special Taxing District. Some of these savings will be used to increase the Operating Contingency by $75,690. . Savings of $100,000 were achieved in various departments citywide due to a reduction in the cost of the copier contract. Internal Service Funds . Information technology saved $79,954 by reducing operating expenses and eliminating an enhanced position for newsletter. . Risk Management saved $175,000 by reducing claims reserves for Police and Public Official Liability. Normandv Shores Local Government Neiahborhood Improvement District At the July 31, 2002 Commission meeting, the Mayor and Commission adopted Resolution 2002-24942, which set the proposed operating millage rate for the District at 0.801 mills. At this millage, in accordance with the enabling legislation no property owner's tax would exceed $500. The tax levy at 0.801 mills would have generated proceeds of $52,310 of the $120,000 operating budget to provide security services for the district. The difference between the revenues generated from such ad valorem tax proceeds and the total budgetary requirement of the District was to have been funded by the General Fund in the amount of $67,690 or 56% of the total operating budget. The General Fund has funded this difference for each of the eight years since the District was established. However, the Mayor and City Commission directed the Administration to take the actions necessary to limit the General Fund contributions to 35% of the operating costs of the District as have previously been discussed by the Finance and Citywide Projects Committee. The Administration met with the Normandy Shores Local Government Neighborhood Improvement District representatives on August 29th and they agreed with the Administration's recommendation to eliminate the $500 cap on the highest valued home in the District and to amend the proposed millage from 0.801 mills to 1.194 mills. This millage will generate an additional $25,690 or $78,000 in total, which represents 65% of the operating budget of the District. Further, it will limit the contribution from the General Fund to $42,000 or 35% of the operating budget which represents a reduction of $25,690. The Schedule of Adjustments below summarizes the recommended adjustments made to revenues and expenditures subsequent to the July 31, 2002 Commission meeting to achieve a balanced budget: SCHEDULE OF ADJUSTMENTS (REVENUES AND EXPENDITURES): General Fund Revenues Increase (Decrease) Occupational License Certificate of Use Fire Inspection Fee Sidewalk Cafe Fee Parks fees (net of $400k Flamingo) Flamingo Park fees Total ($292,200) ( 36,500) ( 65,000) ( 120,000) ( 350,000) ( 400.000) ($1,263,700) Normandv Shores District Ad Valorem Tax Total Budget _$ 25.690 ($1,238,010) Expenditures Increase (Decrease) Mayor & Commission City Manager Finance Management & Budget Internal Audit Human Resources City Clerk City Attorney Economic Development Building Planning Arts, Culture & Entertainment Bass Museum Media Relations Neighborhood Services Parks & Recreation Public Works Police Fire Citywide Accounts Total ($ 64,885) ( 152,215) ( 8,128) ( 345) ( 345) ( 2,386) ( 11,604) ( 143,209) ( 4,506) ( 69,453) ( 57,105) ( 9,134) ( 68,763) ( 55,854) ( 20,910) ( 35,005) ( 2,896) ( 476,829) ( 13,128) ( 67.000) ($1,263,700) Normandv Shores District Guard Gate Expenses Total Budget _$ 25.690 ($1,238,010) INTERNAL SERVICE FUNDS Revenues Increase (Decrease) I nformation Technology Risk Management T atal Budget ($ 79,954) ( 175.000) {$254,954} Expenditures Increase (Decrease) Information Technology Risk Management T atal Budget ($ 79,954) ( 175.000) {$254,954} The Attached Exhibit A includes a chart which provides a comparison by Fund and Department of the following items: 1) July 31st FY 2002/03 Proposed Budget at 7.299 mills including increases to both current and enhanced service levels; 2) The impact of the reduction; 3) The Revised FY 2002/03 budget at 7.299 mills, and 4) The current FY 2001/02 Adopted Budget. CONCLUSION The Administration recommends adoption of the attached Resolution which incorporates the revisions discussed above and establishes tentative budgets for General, Enterprise, and Internal Service Funds for Fiscal Year 2002/03, subject to a second public hearing scheduled at 5:01 P.M., Thursday, September 26,2002. J1YC EXHIBIT A CITY OF MIAMI BEACH PropoHd FlseIIl Year 2002103 Expenditure Budget PropoHd Budget FY 2002103 Proposed Adpted Budget Budget Revised Revised FY 03 Bud VII Budget .. of 7131102 Reductions Budget Adopted FY 02 Bud FUNDIDEPARTMENT FY 2001102 FY 2002103 sfter 7131102 FY 2002103 Inc (Dee) GENERAL FUND MAYOR AND COMMISSION $1,112,334 $1,149,832 ($64,885) $1,084,947 ($27,387) CITY MANAGER 1,588,107 1,866,511 (152,215) 1,714,296 126,189 FINANCE 2,962,943 3,255,342 (8,128) 3,247,214 284,271 MANAGEMENT & BUDGET 558,762 579,866 (345) 579,521 20,759 INTERNAL AUDIT 349,587 379,713 (345) 379,368 29,781 HUMAN RESOURCES 1,661,420 1,710,507 (2,386) 1,708,121 46,701 CITY CLERK 1,455,720 1,260,668 (11,604) 1,249,064 (206,656) PROCUREMENT 663,067 733,902 733,902 70,835 GRANTS MANAGEMENT 183,431 150,685 150,685 (32,746) CITY ATTORNEY 3,140,348 3,112,855 (143,209) 2,969,646 (170,702) ECONOMIC DEVELOPMENT 993,171 1,122,774 (4,506) 1,118,268 125,097 BUILDING 3,753.214 4,324.702 (69,453) 4,255,249 502,035 PLANNING 2,203,866 2,312,857 (57,105) 2,255,752 51,886 ARTS, CULTURE & ENT. 534,420 528,180 (9,134) 519,046 (15,374) BASS MUSEUM OF ART 1,100,869 1,182,812 (68,763) 1,114,049 13,180 MEDIA RELATIONS 368,759 310,624 (55,854) 254,770 (113,989) NEIGHBORHOOD SERVICES 2,750,916 3,029,323 (20,910) 3,008,413 257,497 PARKS AND RECREATION 17,325,466 21,787,482 (35,005) 21,752,477 4,427,011 PUBLIC WORKS 5,021,467 5,460,416 (2,896) 5,457,520 436,053 CAPITAL IMPROVE. PROG. 1,807,257 2,160,358 2,160,358 353,101 POLICE 48,783,034 54,266,090 (476,829) 53,789,261 5,006,227 FIRE 23,772,675 27,019,679 (13,128) 27,006,551 3,233,876 CITYWIDE ACCTS-RDA So.Pointe 5,416,030 5,948,507 5,948,507 532,477 CITYWIDE ACCTS-RDA City Ctr 6,418,507 7,380,783 7,380,783 962,276 CITYWIDE ACCTS-Normandy Sh. 54,494 52,310 25,690 78,000 23,506 CITYwIDE ACCTS-Opereting Contg 950,000 950,000 75,690 1,025,690 75,690 CITYWIDE ACCTS-Other 6,468,319 6,521,636 (142,690) 6,378,946 (89,373) SUBTOTAL OPERATING $141,398,183 $158,558,414 ($1,238,010) $157,320,404 $15,922,221 DEBT SERVICE 9,768,132 10,424,846 10,424,846 656,714 TOTAL GENERAL FUND $151,166,315 $168,983,260 ($1,238,010) $167,745,250 $16,578,935 INTERNAL SERVICE FUNDS INFORMATION TECHNOLOGY $9,165,685 $10,582,496 ($79,954) $10,502,542 $1,336,857 RISK MANAGEMENT 13,045,839 14,185,148 (175,000) 14,010,148 964,309 CENTRAL SERVICES 690,003 733,834 733,834 43,831 PROPERTY MANAGEMENT 6,180,601 6,735,213 6,735,213 554,612 FLEET MANAGEMENT 5,516,431 5,448,031 5,44&,031 (68,400) TOTAL INTER SRVC FUNDS $34,598,559 $37,684,722 ($254,954) $37,429,768 $2,831,209 ENTERPRISE FUNDS CONVENTION CENTERlTOPA $13,840,495 $13,422,716 $13,422,716 ($417,779) WATER 18,519,500 19,329,810 19,329,810 810,310 SEWER 27,608,000 28,271,930 28,271,930 663,930 STORMWATER 5,44&,150 7,220,000 7,220,000 1,773,850 SANITATION 5,660,865 6,639,049 6,639,049 978,184 PARKING 19,250,202 19,586,828 19,586,828 336,626 TOTALENTERP~SEFUNDS $90,325,212 $94,470,333 $0 $94,470,333 $4,145,121 TOTAL $276,090,086 $301,138,315 ($1,482,964) $299,645,351 $23,555,285