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2018-30609 Resolution RESOLUTION NO. 2018-30609 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FOURTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR(FY)2017/18. WHEREAS, the budgets for the General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds for Fiscal Year 2017118 were approved on September 25, 2017, with the adoption of Resolution No. 2017-30023; and WHEREAS, the First Amendment to the General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds budgets for FY 2017/18 was approved on November 13, 2017, with the adoption of Resolution No. 2017-30088; and WHEREAS, the Second Amendment to the General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds budgets for FY 2017/18 was approved on April 11, 2018, with the adoption of Resolution No. 2018-30278; and WHEREAS, the Third Amendment to the General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds budgets for FY 2017/18 was approved on July 2, 2018, with the adoption of Resolution No. 2018-30374; and WHEREAS, Section 166.241(4), .Florida Statutes, mandates that the City has 60 days following the end of the fiscal year to amend a budget for that year and Section 166.241(4)(c), Florida Statutes, requires that a municipality's budget amendment must be adopted in the same manner as its original budget; and WHEREAS, the preliminary year-end analysis for FY 2017/18 reveals that the General Fund has an operating surplus of$12,757,000 based on the City's operations; and WHEREAS, the Administration recommends that the preliminary General Fund operating surplus for FY 2017/18 be allocated as set forth in this Resolution; and WHEREAS, $1,383,000 should be set aside from the preliminary FY 2017/18 General Fund surplus for encumbrances from FY 2017/18 for goods and/or services which had been procured, but not received and expended at year end, and the Administration is proposing that this amount be carried forward to the respective FY 2018/19 operating budgets; and WHEREAS, there are also approximately $2,786,000 in projects in the General Fund that were budgeted in FY 2017/18 that have not yet been expended or encumbered that the Administration is proposing be carried forward and spent in the respective FY 2018/19 operating budgets; and WHEREAS, prior year appropriations fully fund the prior year encumbrances and projects; and WHEREAS, $1,073,000 should be set aside to fund "one-time" expenditures adopted in the FY 2018/19 General Fund budget as allowable pursuant to Resolution 2006-26341; and WHEREAS, the City's financial policies provide that, in addition to funding the increase in the required General Fund Contingency Reserve (11% Emergency Reserve), the City have a goal to maintain an additional General Fund Reserve for Contingencies equal to 6% of the General Fund budget; and WHEREAS, $5,122,000 should be set aside to achieve the City's goal of maintaining an additional General Fund Reserve for Contingencies equal to 6% of the General Fund budget; and WHEREAS, $935,000 should be carried forward to the FY 2018/19 operating budget to fund additional "one-time" expenditures from FY 2017/18 General Fund year-end surplus; and WHEREAS, the City's financial policies further provide that, on an annual basis, when there exists an excess of General Fund revenues over expenses, and after funding the increase in the General Fund Contingency Reserves (11% Emergency Reserve and 6% Contingency Reserve), funding be transferred to the Capital Reserve Fund; and WHEREAS, the Administration recommends that the aforestated policy, as adopted by Resolution 2002-24764, be waived and that excess funds of $1,458,000 be carried forward to the FY 2018/19 operating budget, of which half ($729,000) be set-aside in contingency for funding of temporary storm water pumps and the other half ($729,000) be transferred to the Pay-As-You-Go Capital Fund, as approved by the City Commission at the November 14, 2018 City Commission meeting; and WHEREAS, the preliminary year-end analysis for FY 2017/18 reveals that the Resort Tax Fund has an operating surplus of $3,960,000 based on the City's customary operations; and WHEREAS, the Administration recommends that the preliminary operating Resort Tax surplus for FY 2017/18 be allocated as set forth in this Resolution; and WHEREAS, $284,000 should be set aside from the preliminary FY 2017/18 Resort Tax Fund surplus for encumbrances from FY 2017/18 for goods and/or services which had been procured, but not received and expended at year end, that the Administration is proposing be carried forward to the FY 2018/19 operating budget; and WHEREAS, there were also approximately $166,000 in projects in the Resort Tax Fund that were budgeted in FY 2017/18 that had not yet been expended or encumbered that the Administration is proposing be carried forward and spent in the respective FY 2018/19 operating budgets; and WHEREAS, prior year appropriations fully fund the prior year encumbrances and projects; and WHEREAS, $651,000 should be set aside to fund "one-time" expenditures adopted in the FY 2018/19 Resort Tax Fund budget as allowable pursuant to Resolution 2006-26341; and WHEREAS, the City's financial policies provide that, in addition to funding a two-month Resort Tax Reserve, the City have a goal of maintaining an additional Resort Tax Fund Reserve for Contingencies equal to one-month of the Resort Tax Fund budget; and WHEREAS, $2,433,000 should be set aside to achieve the City's goal of maintaining an additional Resort Tax Fund Reserve for Contingencies equal to one-month of the Resort Tax Fund budget; and WHEREAS, there are a total of$2,281,000 in Enterprise Fund encumbrances, $157,000 in Internal Service Fund encumbrances, and $1,505,000 in Special Revenue Fund encumbrances from FY 2017/18 for goods or services which were procured in FY 2017/18, but not yet received and expended, which the Administration recommends be carried over to the respective FY 2018/19 operating budgets; and WHEREAS, there are also a total of approximately $2,203,000 in projects in Enterprise Funds, $1,487,000 in projects in Internal Service Funds, and $1,558,000 in projects in Special Revenue Funds that were budgeted in FY 2017/18 that have not yet been expended or encumbered, which the Administration recommends be carried forward and spent in the respective FY 2018/19 operating budgets; and WHEREAS, the Administration recommends that $110,000 be carried forward to the FY 2018/19 Storm Water Fund operating budget to fund an additional "one-time" expenditure from FY 2017/18 Storm Water Fund year-end surplus; and WHEREAS, this budget amendment also appropriates $2,346,000 in the Internal Services Funds, $1,787,000 in the Special Revenue Funds, and $1,879,000 in the Debt Service Funds. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that following a duly noticed public hearing on November 14, 2018, the City Commission hereby adopts, as amended and approved by the City Commission at the November 14, 2018 City Commission meeting, the Fourth Amendment to the Fiscal Year 2017/18 General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets as set forth in this Resolution and in the attached Exhibit "A," and hereby waives the City's policy, as adopted by Resolution 2002- 24764, of transferring at least 50% of year-end surplus funds to the Capital Reserve Fund and authorizes the allocation of excess funds to the operating budget as set forth herein. PASSED and ADOPTED this 14'" day of November, 2018. ATTEST: Dan Gelber, Mayor Raf el E. ranado, Cit f CIBrk APPROVED AS TO FORM & LANGUAGE & FOA EXECUTION tz -6 - City Attorney.1 Dote Exhibit "A" FY 2017/18 4th Budget FY 2017/18 GENERAL FUND Amended Budget Amendment Revised Budget REVENUES Operating Revenues Ad Valorem Taxes 174,642,000 174,642,000 Ad Valorem-Capital Renewal&Repl. 721,000 721,000 Ad Valorem Taxes-Normandy Shores 181,00 181,00 Other Taxes 22,856000 22,856,000 Licenses and Permits 31,417,000 31417,000 Intergovernmental 11,255,00 11,255,0W Charges for Services 12,246000 12,246,000 Fines&Forfeits 1,351,000 1,351,000 Interest Earnings 692,000 692,0W Rents and Leases 5,947,000 5,947,000 Miscellaneous 13,635,000 13,635,000 Resort Tax Contribution 34,950,000 34,950,000 Other Non-Operating Revenue 22,513,000 22,513,000 Fund Balance/Retained Earnings 3,542,000 3,542,000 Total General Fund 335,948,000 $ - 335,948,000 FY 2017/18 4th Budget FY 2017/18 Amended Budget Amendment Revised Budget APPROPRIATIONS Department Mayor and Commission 2,310,0M 2,310,0W City Manager 3,969,000 3,969500 Communications 2.136000 2,136,000 Budget&Performance Improvement 1,765,000 1,765,000 Internal Audit 1,037,000 1.037,000 Org Dev&Performance Initiative 888,000 888,000 Finance 6,073,000 6,073,000 Procurement 2,486,000 2,486,000 Human Resources/Labor Relations 2,807,000 2807,0.00 City Clerk 1,760,0W 1,760,000 City Attorney 5,859,00 5,859,00 Housing&Comm.Development 4,424,000 4424,000 Building 15,761,000 15,761,0W Environment&Sustainability 1,265,00 1,265000 Code Compliance 6,015,0W 6,015,000 Planning 4,693,000 4,693,000 Tourism,Culture,and Econ.Development 4532000 4532,000 Parks&Recreation 36,496,000 36,496,000 Public Works 15773,000 15,773,000 Capital Improvement Projects 5,090,000 5,090,000 Police 109,082,000 109,002,000 Fire 83414,000 83,414,000 Emergency Management 3,181,000 3,181,00 Citywide Accounts-Other 10,484,000 10,484,000 Citywide Accounts-Operating Contingency 1,250,000 1250,00 Citywide Accounts-Normandy Shores 277,000 277,000 Subtotal General Fund 332,827,000 $ - 332,827,000 TRANSFERS Capital Renewal&Replacement 721000 721,00 Capital Reserve 0 0 Capital I nvestement Upkeep Account 0 0 Info&Comm Technology Fund 0 0 Pay-As-You-Go Capital Fund 2,400,000 2,400,00 Subtotal General Fund Transfers 3,121,000 $ - 3,121,000 Total General Fund 335,948,000 $ - 335,948,000 Exhibit "A" FY2017/18 4th Budget FY2017/18 ENTERPRISE FUNDS Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Convention Center $ 13,846,000 13,846,000 Parking $ 59,285,000 59,285,000 Sanitation 5 22,724,000 22,724,000 Sewer Operations $ 50,105,000 50,105,000 Storm Water Operations $ 28,785,000 28,785,1300 Water Operations $ 39,198,000 39,198,000 Total Enterprise Funds $ 213,943,000 $ - 213,943,000 FY2017/18 4th Budget FY 2017/18 INTERNAL SERVICE FUNDS Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Central Services 1,074,000 1,074,000 Fleet Management 8,817,000 467,000 9,284,000 Information Technology 16,772,000 16.772,000 Property Management 9,050,000 9,050,000 Risk Management 19,270,000 19,270,000 Medical and Dental Insurance 31,962,00 1,879,000 33,841,000 Total Internal Service Funds 86,945,000 $ 2,346,000 89,291,000 SPECIAL REVENUE FUNDS FY 2017/18 4th Budget FY 2017/18 Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Resort Tax 84,006,000 1,505,000 85,511,000 Transportation 13,703,000 13,703,000 People's Transportation Plan Fund 3,701,0 3,701,000 7th Street Garage 2,590,000 2,590,000 5th&Alton Garage 635,000 635,000 Tourism and Hospitality Scholarship Prgm 184,000 184,000 Information and Communication Tech Fund 787,000 787,000 Education Compact 385,000 385,000 Sustaina bitty Fund 346,000 346,000 Residential Housing 694,000 694,000 Red Light Camera Fund 1,333,000 1,333,1300 E-911 Fund 185,000 282,000 467,000 Cultural Arts Council 1,857,000 1,857,000 Normandy Shores 289,000 289,000 Tree Preservation 184000 184,000 Commemorative Tree Trust Fund 10,000 10,000 Police Confiscation-Federal 155,000 155,000 Police Confiscation-State 217,000 217,000 Police Special Revenue-Unclaimed Property 75,000 75,030 Police Special Revenue-Crash Report Sales 25,0.0" 25,030 Police Training 22,000 22,000 Waste Haulers Add Sery&Public Benefit 130,000 130,000 Miami City Ballet 0 0 Adopt-A-Bench Program 60,000 60,000 Total Special Revenue Funds 111,573,000 $ 1,787,000 113,360,000 DEBT SERVICE FUNDS FY2017/18 4th Budget EY2017/18 Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS G.O.Debt Service Fund $ 5,911,000 1,879,000 $ 7,790,000 Total Debt Service Funds $ 5,911,000 $ 1,879000 $ 7,790,000 Resolutions - R7 E MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: November 14, 2018 2:25 p.m. Public Hearing SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FOURTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY) 2017/18. RECOMMENDATION See attached Memorandum. Legislative Tracking Budget and Performance Improvement ATTACHMENTS: Description ❑ Memo-4th FY18 Operating Budget Amendment Page 1227 of 1981 City of Miami Beach, 1700 Convention Center Drive, Miami Bench, Florida 33139,www.mlamibeochllyov COMMISSION MEMORANDUM TO: Mayor Dan Gelber and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: November 14, 2018 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FOURTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY) 2017/18. ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED Ensure expenditure trends are sustainable over the long term. ANALYSIS The budgets for the General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds for Fiscal Year 2017/18 were approved on September 25, 2017,with the adoption of Resolution No. 2017-30023. The First Amendment to the General Fund, Enterprise Funds, Internal Services Funds,and Special Revenue Funds budgets for FY 2017/18 was approved on November 13,2017,with the adoption of Resolution No. 2017-30088. The Second Amendment to the General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds budgets for FY 2017/18 was approved on April 11,2018,with the adoption of Resolution No. 2018-30278. The Third Amendment to the General Fund, Enterprise Funds, Internal Services Funds,and Special Revenue Funds budgets for FY 2017/18 was approved on July 2, 2018, with the adoption of Resolution No. 2018-30374. Section 166.241(4), Florida Statutes, requires that the City has 60 days following the end of the fiscal year to amend a budget for that year. Proposed budget amendments represent the budget amendment required by State law for funds, departments, or accounts that exceed their appropriated authority. Furthermore, Section 166.241(4)(c), Florida Statutes, requires that a municipality's budget amendment must be adopted in the same manner as its original budget. Based on a detailed analysis comparing preliminary year-end actual expenditures to budget, all expenditures are within the FY 2017/18 amended budgets per their appropriated authority, except those listed below, which require a budget amendment per Florida Statutes and further detailed below. Page 1228 of 1981 Fourth Amendment to the General Fund, Enterprise Funds. internal Services Funds.and Special Revenue Funds Budgets for FY 2017/18. Page 2 Internal Services Funds: Fleet Management, and Medical and Dental Special Revenue Funds: Resort Tax, and E911 Debt Service Funds: G.O. Debt Service It should be noted that actual year-to-date expenditures are preliminary in nature due to the fact that reporting of the City's financials is not finalized until completion of the annual audit conducted by outside external auditors. Historically, this occurs in April with completion of the City's Comprehensive Annual Financial Report(CAFR)For the Year Ended September 30,2018,which is usually made available in May,and the External Auditor's Report,which is generally made available in July.As a result,this analysis has considered all known year-end adjustments to date, as well as other pending adjustments where appropriate. GENERAL FUND ANALYSIS The preliminary year-end analysis for FY 2017/18 shows that the General Fund has a preliminary operating budget surplus of $12.8 million, or 4.0% over the amended General Fund operating budget. FY2017/18 Budget Amended Preliminary General Fund Budget through FY2017/18 Difference September 30, Year-End 2018 Revenues $ 335,948,000 $ 339,009,000 $ 3,061,000 Expenditures $ 335,948,000 $ 326,252,000 $ (9,696,000) Estimated Surplus/(Deficit) $ - $ 12,757,000 $ 12,757,000 It is important to note that included in this surplus is a one-time loan repayment from the Water and Sewer Fund to the General Fund of$3.6 million. The General Fund originally loaned these funds to the Water and Sewer Fund to cover the reserve requirements as detailed in Resolution No. 2006- 26175.As a result of the 2006 Water and Sewer bonds being paid off by the 2017 Water and Sewer bonds, these funds were released and returned to the General Fund. In addition,the FY 2017/18 General Fund revenues also include a one-time reclassification of$1.9 million from the City's General Obligation (G.O.) Debt Service Fund, which resulted from an analysis conducted on Ad Valorem tax allocation based on levied millage rates for debt service. Of the$12.8 million surplus,the administration is recommending that$1.4 million be carried forward into FY 2018/19 to fund goods and/or services that were procured, but not received in FY 2017/18 due to timing issues between fiscal years. Similarly, it is recommended that $2.8 million be carried forward into FY 2018/19 for projects that were originally budgeted in FY 2017/18, but not completed. After accounting for the proposed carryforward encumbrances and appropriations from FY 2017/18 to FY 2018/19, the Administration recommends that the net surplus of$8.6 million be utilized as follows: (1)$1.1 million to fund "one-time'expenditures adopted in the FY 2018/19 General Fund budget, as allowable pursuant to Resolution No. 2006-26341; (2)set-aside$5.1 million to achieve the City's goal of maintaining an additional 6% contingency reserve in the General Fund; (3) transfer$935,000 to FY 2018/19 for additional one-time items as outlined below; and (4)transfer $1.5 million to the Capital Pay As You Go Fund to allow for funding of any unforeseen capital projects during FY 2018/19. Page 1229 of 1981 Fourth Amendment to the General Fund, Enterprise Funds,Internal Services Funds-and Special Revenue Funds cudgels for FY 2017/18. Page 3 Recommended One-Time Expenditures -$935,000 • Business Case Analysis for Storm Water Resilience Program: $395,000($285,000 funded from General Fund and $110,000 funded from Storm Water Fund's FY 2017/18 year-end surplus) • Historic District Resiliency and Adaptation Guidelines $625,000 ($250,000 funded from General Fund and $375,000 funded from Planning Technology Fund) • Communications Budget for City's Resiliency Program: $250,000 • Citywide Performance Management Software: $150,000 FY 2017118 Estimated General Fund Year-End Surplus: $ 12,757,000 Carryforward of FY18 Encumbrances (1,383,000) Carryforward of FY18 Appropriations (2,786,000) Sub-Total $ 8,588,000 Use of Fund Balance for One-Time Items Budgeted in FY19 (1,073,000) Transfer to Reserve to Fund Additional 6%Target (5,122,000) Additional One-Time Use of Year End Surplus (935,000) Transfer to Capital PAYGO Fund (1,458,000) Total $ - The City's financial policies require that at least half of the annual year-end surplus must be allocated to the City's Capital Reserve Fund after funding the General Fund Contingency Reserves. The Administration recommends waiving this policy for FY 2017/18,to instead allow for the transfer of$1,458,000 to the Pay-As-You-Go Capital Fund ENTERPRISE, INTERNAL SERVICE, AND SPECIAL REVENUE ANALYSIS The City accounts for proprietary operations in its Enterprise Funds. The Convention Center, Parking, Sanitation, Sewer, Storm Water, and Water Funds comprise this category of funds. Expenditures in these funds are budgeted to be fully offset by charges for services provided. The City accounts for 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 comprise this category of Proprietary 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. These include Resort Tax, as well as the following: 7'h Street Garage Operations, 5'h&Alton Garage Operations, the 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), Police Training and School Resources Fund, and Adopt-a-Bench Program. The preliminary year-end analysis for FY 2017/18 shows that there are $2281,000 of encumbrances in the Enterprise Funds, $157,000 in Internal Service Funds encumbrances, and $1,505,000 in Special Revenue Funds encumbrances for goods and/or services that were procured in FY 2017/18, but not received, which are proposed to be carried forward into the respective FY Page 1230 of 1981 Fourth Amendment to the General Fund.Enterprise Funds Internal Services Funds.and Special Revenue Funds Budgets for FY 2017/18. Page 4 2018/19 operating budgets. Similarly, it is proposed that appropriations of$2,203,000 in the Enterprise Funds, $1,487,000 in the Internal Services Funds,and $1,558,000 in the Special Revenue Funds be carried forward into FY 2018/19 for projects that were originally budgeted in FY 2017/18, but not completed. In addition, the Administration recommends that $110,000 be carried forward to the FY 2018/19 operating budget to partially fund the Business Case Analysis for the Storm Water Resilience Program as a "one-time' expenditure from the FY 2017/18 Storm Water Fund year-end surplus. PROPOSED AMENDMENTS TO THE INTERNAL SERVICE AND SPECIAL REVENUE FUNDS Preliminary year-end actual expenditures indicate that the following Internal Services Funds departments are projected to exceed the FY 2017/18 amended budget. Fleet Management — Expenditures are estimated to be above the amended budget by $467,000, or 5.3%, mostly due to increasing gasoline and diesel fuel prices. Since the department is responsible for providing gasoline and diesel fuel to the City's fleet of vehicles, machinery, and equipment, these price fluctuations are anticipated to result in the department exceeding its amended budget as of year-end. In addition, the department is experiencing increasing costs for repairs and maintenance of older vehicles that are due for replacement, but still in use due to limited availability of funding.This projected overage has been charged back to applicable departments. Variance Amended Budget Projected Projected w Amended %Over/(Under) Budget Expenditures $ 8,817,000 $ 9,284,000 $ 467,000 5.3% Medical and Dental — Expenditures are estimated to be above the amended budget by $1,879,000, or 5.9%, due to medical claims trending higher than budget during FY 2017/18 due to numerous large claims. Although the Medical and Dental Fund balances are sufficient to absorb this year's experience, the Administration is exploring a variety of options to respond to this trend. Variance Amended Budget Projected Projected w Amended % Over/(Under) Budget Expenditures $ 31,962,000 $ 33,841,000 $ 1,879,000 5.9% E-911 Fund — The City's allocation of E911 tax revenues from Miami-Dade County are primarily based on call volume. As a result of an increase in call volume, and the resulting additional revenues collected by Miami-Dade County and disbursed to local municipalities based on the determined allocation, the City's projected E911 revenues for wireless, non- wireless,and wireless prepaid services have continued to increase over the latter months of FY 2017/18. As a result of the increased revenues collected, this proposed amendment would appropriate an additional $282,000 in E911 revenues received during the latter months of FY 2017/18, which in-turn, will be utilized to provide for funding of additional overtime and contract maintenance services in the City's E911 center. Page 1231 of 1981 Fourth Amendment to the General Fund Enterprise Funds: Internal Services Funds,and Special Revenue Funds Budgets for FY 2017/18. Page 5 Variance Amended Budget Projected Projected vs Amended %Over/(Under) Budget Expenditures 5 185,000 $ 467.000 $ 282,000 1524% G.O. DEBT SERVICE FUND The City's General Obligation (G.O,)Debt Service Fund consists of property tax revenues collected through the levy of a voted debt service millage assessed for the repayment of outstanding general obligation debt. During FY 2017/18, an analysis was conducted resulting in a reclassification of approximately$1.9 million from the G.O. Bond Debt Service Fund to the City's General Fund.This proposed amendment would appropriate the funding required to allow for this reclassification. RESORT TAX FUND Resort Tax revenues are projected to be 6.5%, or$5.5 million, above the amended budget, while expenditures are projected to be 1.8%, or$1.5 million, above the amended budget, resulting in an estimated surplus of approximately$4.0 million. It is important to note that included in this surplus is: 1. A one-time release and repayment of approximately$1.7 million in excess fund balance in the Gulf Breeze Special Obligation Bond Fund, which was previously transferred from the Resort Tax Fund to the Gulf Breeze Special Obligation Bond Fund to cover debt service related to North Beach Improvements. This debt is no longer outstanding. 2. A one-time release and repayment of approximately$127,000 in excess fund balance in the Sunshine State Loan Pool Fund, which was previously transferred from the Resort Tax Fund to the Sunshine State Loan Pool Fund to cover debt service related to North Beach Improvements. This debt is no longer outstanding. 3. A transfer of$1.6 million in estimated excess 1%Convention Center Resort Tax funds after payment of the annual debt service expense to the Convention Center Renewal 8 Replacement Fund as required by Resolution No. 2012-27902. FY 2017/18 Amended FT 2017/16 Year-it Adopted FY 2017/18 Entl 17118 1 Butlget Budget %stet tIt t{�y Revenues 2%Resort Tax 56,485000 57,085000 58.519000 1434000 25% Miscellaneous Revenues 206,000 206000 623.000 417.000 202 4% Transfer In from Fund Balance 0 173,000 1787000 1614000 932 9% 1%Resort Tax(SOL) 13271,000 13271000 14,271.000 1 000 000 7 5% Additional 1%for Convention Center 13,271,000 13271000 14271000 1000000 7 Total Revenues 83,233,000 84,006,000 89471.000 5,465,000 r 5.5% Expenditures General Fund Contribution 34950,000 34,950,0001 34,950000 0 0 0% Contributions to VCA and GMCVB 9254,000 9,254,000 9,459,000 205.000 2 Contribution to Mt.Sinai 1000,000 1000000 1,000.000 0 0 Other Operating/Other Uses 11,037000 11210,000 it 371 000 161,000 1 4% Marketing 200.000 200,000 189,000 111,000) -55% Contingency 250,000 850,000 0 (850,000) -1000% Transfer to NB,MB,SR Capital,T ransp,and Arts(DOL) 13271000 13,271,000 14271000 1,000000 7.5% Addf11%Cony.Center Debt Service 8 Cap.Ren 8 Repl. _ 13,271,000 13271000 14,271,000 1000000 75% Total Expenditures 83,233,000 84,006,000 85,511,000 1,505,000 1.8% Excess of Revenues Over/(Under)Expenditures 0 0 3,960,000 3,960,000 Page 1232 of 1981 Fourth Amendment to the General Fund. Enterprise Funds. Internal Services Funds, and Special Revenue Funds Budgets for FY 2017/18 Page s Of the estimated $4.0 million surplus,the Administration is recommending that$284,000 be carried forward into FY 2018/19 to fund goods and/or services that were procured, but not received in FY 2017/18 due to timing issues between fiscal years. Similarly, it is recommended that$166,000 be carried forward into FY 2018/19 for projects that were originally budgeted in FY 2017/18, but not completed. After accounting for the proposed carryforward encumbrances and appropriations from FY 2017/18 to FY 2018/19, the Administration recommends that the net surplus of$3.5 million be utilized as follows: (1)$651,000 to fund "one-time'expenditures adopted in the FY 2018/19 Resort Tax Fund budget, as allowable pursuant to Resolution No. 2006-26341; (2)set-aside$2.4 million to achieve the City's goal of maintaining three months of reserve in Resort Tax fund balance; and (3)transfer the remaining estimated surplus of$426,000 to the Resort Tax undesignated fund balance. FY 2017/18 Estimated Resort Tax Fund Year-End Surplus: $ 3,960,000 Carryforward of FY18 Encumbrances (284,000) Carryforward of FY18 Appropriations (166,000) Sub-Total $ 3,510,000 Use of Fund Balance for One-Time Items Budgeted in FY19 (651,000) Transfer to Reserve to Fund Additional 1-Month Target (2,433,000) Transfer to Undesignated Fund Balance (426,000) Total $ - CONCLUSION The Administration recommends that the Mayor and City Commission waive the City's policy that requires that at least 50%of the General Fund revenues in excess of expenditures be transferred to the Capital reserve Fund,and adopt the Fourth Amendment to the General Fund, Enterprise Fund, Internal Services Fund, and Special Revenue Fund budgets for Fiscal Year2017/18 as previously detailed,which is necessary to comply with Florida Statute, Section 166.241,that mandates that the City has 60 days following the end of the fiscal year to amend a budget for that year. JLM/JW/TOS Page 1233 of 1981 Fourth Amendment to the General Fund,Enterprise Funds, Internal Services Funds, and Special Revenue Funds Budgets for FY 2017/18 Page 7 GENERAL FUND FY 2117/18 9th Budget FY 2017/18 Amended Budget Amendment Revised Budget REVENUES Operating Revenues Ad Valorem Taxes 174,642,000 174,642,000 Ad Valorem-Capital Renewal&Repl. 721,000 721,000 Ad Valorem Taxes-Normandy Shores 181,000 181,000 Other Taxes 22,856.000 22,856000 Licenses and Permits 31,417,000 31,417,000 Intergovernmental 11,255,000 11,255,000 Charges for Services 12,246,000 12246000 Fines&Forfeits 1351,000 1,351,000 Interest Earnings 692,000 692,000 Rents and Leases 5,947,000 5,947,000 Miscellaneous 13,635,000 13035,000 Resort Tax Contribution 34,950,000 34,950,000 Other Non-Operating Revenue 22,513,000 22,513,000 Fund Balance/Retained Earnings 3,542,000 0542,000 Total General Fund 335,948,000 $ - 335,948,000 FY 2017/18 4th Budget FY 2017/18 Amended Budget Amendment Revised Budget APPROPRIATIONS Department Mayor and Commission 2,310,000 2,310,000 City Manager 3,969,000 3,960000 Communications 2,136,000 2,136000 Budget&Performance Improvement 1,765,000 1,765,000 Internal Audit 1,037,000 1,037,000 Org Dee&Performance Initiative 888,000 888,000 Finance 6.073,000 6,073,000 Procurement 2,486,000 2,486,000 Human Resources/Labor Relations 2,807,000 2,807,000 City Clerk 1,760,000 1,760000 City Attorney 5,859,000 5,859,000 Housing&Comm.Development 4,424,000 4,424,000 Building 15.761,000 15,761,000 Environment&Sustainability 1,265,000 1,265,000 Code Compliance 6,015,000 6,015,000 Planning 4,693,000 4,693,000 Tourism,Culture,and Econ.Development 4,532,000 4,532,000 Parks&Recreation 36,496,000 36,496,000 Public Works 15,773,000 15,773,000 Capital Improvement Projects 5.090,000 5,090,000 Police 109,082,000 109,082,000 Fire 83.414,000 83,414,000 Emergency Management 3,181,000 3,181,000 Citywide Accounts-Other 10,484,000 10,484,000 Citywide Accounts-Operating Contingency 1,250,000 1,250000 Citywide Accounts-Normandy shores 277,000 277,000 Subtotal General Fund 332,827,000 $ - 332,827,000 TRANSFERS Capital Renewal&Replacement 721,000 721,000 Capital Reserve 0 0 Capital lnvestement Upkeep Account 0 0 Info&Comm Technology Fund 0 0 Pay-As-You-Go Capital Fund 2,400,000 2,400,000 Subtotal General Fund Transfers 3,121,000 $ - 3,121,000 Page 1234 of 1981 Total General Fund 335,948,000 $ - 335,948,000 Fourth Amendment fo the General Fund,Enterprise Funds, Internal Services Funds,and Special Revenue Funds Budgets for FY 2017/18 Page 8 ENTERPRISE FUNDS FY 2017/18 4th Budget FY2017/18 Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Convention Center $ 13,846,000 13,846,000 Parking 5 59,285000 59,285,000 Sanitation $ 22,724,000 22,724,000 Sewer Operations 5 50,105,000 50,105,000 Storm Water Operations $ 28,785,000 28,785000 Water Operations $ 39,198,000 39,198,000 Total Enterprise Funds $ 213,943,000 $ - 213,943,000 INTERNAL SERVICE FUNDS FY 2017/18 4th Budget FY 2017/18 Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Central Services 1,074000 $ 1,074,000 Fleet Management 8,817,000 467,000 $ 9284,000 Information Technology 16,772,000 5 16,772,000 Property Management 9,050,000 $ 9,050,000 Risk Management 19,270,000 5 19,270,000 Medical and Dental Insurance 31,962,000 1,879,000 $ 33,841,000 Total Internal Service Funds 86,945,000 $ 2,346,000 $ 89,291,000 SPECIAL REVENUE FUNDS FY 2017/18 4th Budget FY 2017/18 Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS Resort Tax 84,006,000 1,505,000 85,511,000 Transportation 13,703,000 13,703,000 People's Transportation Plan Fund 3,701,000 3,701,000 7th Street Garage 2,590,000 2,590,000 5th&Alton Garage 635,000 635,000 Tourism and Hospitality Scholarship Prgm 184,000 184,000 Information and communication Tech Fund 787,000 787,000 Education compact 385,000 385,000 Sustainability Fund 346,000 346,000 Residential Housing 694,000 694,000 Red Light Camera Fund 1,333,000 1,333,000 E-911 Fund 185,000 282,000 467,000 Cultural Arts Council 1,857000 1,857,000 Normandy Shores 289,000 299,000 Tree Preservation 184,000 184,000 Commemorative Tree Trust Fund 10,000 10,000 Police Confiscation-Federal 155,000 155,000 Police Confiscation-State 217,000 217,000 Police Special Revenue-Unclaimed Property 75,000 75,000 Police Special Revenue-Crash Report Sales 25,000 25,000 Police Training 22,000 22,000 Waste Haulers Add Sery&Public Benefit 130,000 130,000 Miami City Ballet 0 0 Adopt-A-Bench Program 60,000 60,000 Total Special Revenue Funds 111,573,000 $ 1,787,000 113,360,000 DEBT SERVICE FUNDS FY 2017/18 4th Budget FY2017/18 Amended Budget Amendment Revised Budget REVENUE/APPROPRIATIONS G.O.Debt Service Fund $ 5.911,000 1,879,000 $ 7,790,000 Total Debt Service Funds $ 5,911,000 $ 1,879,000 $ 7,790,000 Page 1235 of 1981