LTC 100-2019 FY 2018/19 First Quarter Analysis MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC# 100-2019 LETTER TO COMMISSION
TO: Mayor Dan Gelber and Members of t e City Co ission
FROM: Jimmy L. Morales, City Manager _
DATE: February 22, 2019
SUBJECT: FY 2018/19 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 2018/19 operating budget to actual revenues and
expenses incurred for the first quarter ending December 31, 2018, with projections through
fiscal year-end September 30, 2019. 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 does not necessarily provide 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 forthcoming. Certain assumptions for both revenues and
expenditures have been made that will be further refined and adjusted for in later projections as
additional data and information becomes available. These assumptions, along with our
continued efforts at managing the City's resources and ongoing adjustments to line item
revenues and expenditures throughout the year, will impact projections going forward.
The operating budgets for the General Fund, Enterprise Funds, Internal Service Funds, and
Special Revenue Funds for Fiscal Year (FY) 2018/19 were approved on September 26, 2018
with the adoption of Resolution 2018-30512.
The First Amendment to the FY 2018/19 operating budget adopted by the City Commission on
November 14, 2018, as amended, through Resolution No. 2018-30608, recognized a
preliminary FY 2017/18 year-end surplus of approximately $12.8 million in the General Fund. It
is important to note that of this preliminary surplus, $3.6 million was attributed to a one-time loan
repayment from the Water and Sewer Fund to the General Fund for funds originally borrowed to
cover reserve requirements as set forth in Resolution 2006-26175. An additional $1.9 million
was attributed to a one-time reclassification of revenues from the City's General Obligation
(G.O.) Debt Service Fund which resulted from an analysis that was conducted of the City's ad-
valorem tax allocation based on previously levied millage rates for debt service.
Based on the preliminary surplus of $12.8 million in the General Fund, the Administration
recommended that it be allocated for the following: $1.4 million to 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; $2.8 million to be carried forward into FY 2018/19 for
projects that were originally budgeted in FY 2017/18, but not completed due to timing issues
between fiscal years; $1.1 million to be set-aside to fund "one-time" expenditures adopted in the
FY 2018/19 General Fund budget, as allowable in accordance with Resolution No. 2006-26341;
LTC—FY 2018/19 First Quarter Analysis
Page 2 of 11
$5.1 million to be set-aside to achieve the City's goal of maintaining an additional 6 percent (%)
contingency reserve in the General Fund; $935,000 to be carried forward into FY 2018/19 for
additional one-time expenditures; $729,000 to be set-aside as General Fund contingency in the
FY 2018/19 operating budget for funding of temporary storm water pumps; and $729,000 to be
carried forward and transferred to the Pay-As-You-Go Capital Fund to provide for additional
funding capacity of unforeseen and/or unanticipated capital projects during FY 2018/19.
FY 2017/18
Estimated General Fund Year-End Surplus: $ 12,757,000
Carryforward of FY18 to FY19 Encumbrances $ (1,383,000)
Carryforward of FY18 to FY19 Appropriations $ (2,786,000)
Use of Fund Balance for One-Time Items Budgeted in FY19 $ (1,073,000)
Transfer to Reserve to Fund Additional 6% Contingency Goal $ (5,122,000)
Additional One-Time Use of FY18 Year End Surplus $ (935,000)
Set-Aside for Temporary Storm Water Pumps $ (729,000)
Transfer to Pay-As-You-Go Capital Fund $ (729,000)
Total $ 0
The first quarter projections include the projected $212,000 impact of the labor agreement
reached between the City and the Communications Workers of America (CWA) for the period of
October 1, 2016 to September 30, 2018, which was ratified by the CWA on November 9, 2018
and subsequently adopted by the City Commission through Resolution 2018-30614, providing
for a cost of living adjustment of 1% to be made commencing the first full pay period after
October 1, 2018. As part of this agreement, the parties also agreed to provide additional cost of
living adjustments in the amount of 2% and 1% to be made on the first full pay periods after
October 1, 2019 and October 1, 2020, respectively.
Secondly, these projections also include the savings realized from the hiring freeze that was
declared by the Administration effective June 1, 2018, in an effort to identify significant one-time
savings to offset diminishing increases in taxable property values.
GENERAL FUND
General Fund First Quarter Status
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2018 through December 31, 2018 reveals an operating budget surplus of $101.6 million.
While the actual surplus as of December 31, 2018 may seem unusual as compared to the
projection for the current fiscal year ending September 30, 2019, it should be noted that the City
receives a larger percentage of its ad valorem property taxes during the first quarter of the fiscal
year as compared to subsequent quarters during the same fiscal year. Ad valorem property tax
revenues represent approximately 52.8% of total budgeted revenues adopted in FY 2018/19
and 75.5% of actual revenues received during the first quarter of the fiscal year.
As of December 31, 2018, total revenues collected were approximately 50.2% of the current
amended budget, or $177.0 million. Conversely, expenditures were approximately 21.4% of the
current amended budget, or $75.5 million. It is, however, important to note that there are often
delays in expenditures during the first quarter of the fiscal year.
LTC—FY 2018/19 First Quarter Analysis
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FY 2018/19 Budget
1/4 of Amended Actuals as of Variance from 1/4
General Fund Adopted Budget Amended Budget Budget 12/31/18 Amended Budget
Over/(Under)
Revenues $ 345,645,000 $ 352,582,000 $ 88,145,500 $ 177,046,663 $ 88,901,163
Expenditures $ 345,645,000 $ 352,582,000 $ 88,145,500 $ 75,457,883 $ (12,687,617)
Excess of Revenues Over/(Under)Expenditures $ 101,588,780
General Fund Year-End Projections
Year-end operating revenues and expenditures projected through September 30, 2019 provide
a more realistic indication of any estimated year-end surpluses or shortfalls as of this point in
time. Further, while actual revenues and expenses presented are as of December 31, 2018,
these projections have incorporated more recent information, if available.
A summary of the preliminary General Fund revenues and expenditures projected through
September 30, 2019 reflects a year-end surplus of $1.6 million. It should be noted that this
analysis is a preliminary projection based on experience during the first quarter of the fiscal
year, which is not a definitive indication of the experience over the remainder of the current
fiscal year. It does, however, provide a first glance in identifying any potential concerns later in
the fiscal year.
FY 2018/19 Budget
General Fund Adopted Budget Amended Budget Projected Difference %Over/(Under)
Revenues $ 345,645,000•$ 352,582,000 $ 352,048,000 $ (534,000) -0.2%
Expenditures $ 345,645,000 $ 352,582,000 $ 350,425,000 $ (2,157,000) -0.6%
Excess of Revenues Over/(Under)Expenditures $ 1,623,000
General Fund Operating Revenues
Property tax collections for FY 2018/19 are being projected at approximately 95.0% of total
property taxes assessed, which is consistent with the original adopted budget allowing for
discounts, as well as a level of adjustment for appeals consistent with historical levels. The
realized impact of these appeals and adjustments for the FY 2018/19 budget will be provided by
the Miami-Dade County Property Appraiser in July 2019 when the City's certified property
values are received.
As of December 31, 2018, actual revenues were approximately 50.2% of the current amended
budget, or $177.0 million. As of December 31, 2018, revenues through fiscal year-end
September 30, 2019 are projected to be $352.0 million, which is approximately 0.2%, or
$534,000, below the current FY 2018/19 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 and utility taxes on electricity, gas, fuel,
cable-television and telephones. Collections are projected to be 4.0%, or $1.0 million,
below the current amended budget due to usage rates, particularly those for electricity,
which are trending lower than budget.
Licenses and Permits — This category includes business tax receipts, licenses/
building/special use permits, and sidewalk café fee revenues and is projected to be above
the current amended budget by 1.6%, or $498,000, primarily due to revenues collected
from business tax receipts, right-of way permits, and fire inspections, as well as planning
LTC—FY 2018/19 First Quarter Analysis
Page 4 of 11
and fire plans review activities trending higher than budget by approximately $1.4 million.
These projected revenues are, however, projected to be partially offset by a decrease in
building permit revenues of $852,000 due to a reduction in the number of building permits
issued, the recently implemented private provider discounts, and diminishing job size
valuations that directly impact permit revenues.
For a detail of General Fund revenues by category, refer to the attached Schedule A.
General Fund Operating Expenditures
As of December 31, 2018, actual expenses were approximately 21.4% of the current FY
2018/19 amended budget, or $75.5 million. As of December 31, 2018, expenditures through
fiscal year-end September 30, 2019 are projected to be $350.4 million, which is approximately
0.6%, or $2.2 million, below the current FY 2018/19 amended budget. These projections are
based on an analysis of the first quarter, as well as any additional information available.
A comparison of actual expenses and projected expenditures to budget by department, as of
December 31, 2018, 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:
Building — The department is projected to be 5.9%, or $904,000, below the current
amended budget due to a slowdown in the number of building permits being issued. As a
result of this, net savings of $443,000 are projected in operating expenditures driven
primarily by a decline in the need for outside inspection and engineering services of
$464,000 offset slightly by an increase in miscellaneous operating expenditures of $21,000.
The department is also projected to have savings of $461,000 in personnel services costs
due to numerous vacancies, as well as a reorganization of positions to better align the
current staffing needs of the department with current operations.
Building
Variance
Amended Budget Projected Projected vs %Over/(Under)
Amended
Budget
Expenditures $ 15,250,000 4 $ 14,346,000 , $ (904,000) -5.9%
Communications —The department is projected to be 2.4%, or $62,000, above the current
amended budget, primarily due to staffing changes within the department as part of the
department's ongoing effort to meet the City's demands for enhanced and diversified
marketing, advertising, and media promotions. We will continue to monitor these expenses
and amend the department's budget at year-end, if necessary.
Communications
Variance
Amended Budget Projected Projected vs %Over/(Under)
Amended
Budget
Expenditures $ 2,589,000 $ 2,651,000 $ 62,000 2.4%
Police — In addition, while the Police Department's projections through September 30, 2019
do not meet the previously mentioned criteria requiring an explanation, it is important to note
LTC-FY 2018/19 First Quarter Analysis
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that the department's projected savings of 0.05%, or $53,000, as of year-end includes
$256,000 of un-reimbursable overtime incurred related to the FDOT MacArthur Causeway
project, as well as $242,000 of reimbursable overtime related to Hurricane Michael
deployments. Without these unbudgeted overtime costs, the projected department savings
as of year-end would have been 0.5%, or $551,000, below the current FY 2018/19 amended
budget.
ENTERPRISE FUNDS
The City accounts for those goods and services provided by a particular department to external
users for which a fee is charged as Enterprise Funds. The City's Sanitation, Water, Storm
Water, Sewer, Parking, and Convention Center operations comprise this category of proprietary
funds.
An analysis of the actual three-month operating expenses for the period October 1, 2018
through December 31, 2018, reveals that all Enterprise Funds have expenses less than one-
quarter of their current FY 2018/19 amended budgets. As previously mentioned, this is not
representative of typical trends for a full fiscal year, as there is often a lag in expenditures,
particularly those billed by outside entities.
ENTERPRISE FUNDS
Sanitation Sew Stonn Water lifter Parking Convention
Center
FY 2018/19 Adopted Budget 22,392,000 50,679,000 29,390,000 34,555,000 53,609,000 19,374,000
Budget Amendment-11/14/18 155,000 1,643,000 384,000 1,635,000 456,000 321,000
FY 2018/19 Am ended Budget 22,547,000 52,322,000 29,774,000 36,190,000 54,065,000 19,695,000
1/4 Adopted Budget 5,598,000 12,669,750 7,347,500 8,638,750 13,402,250 4,843,500
1/4 Amended Budget 5,636,750 13,080,500 7,443,500 9,047,500 13,516,250 4,923,750
Revenues as of 12/31/18 4,606,708 11,763,589 6,873,783 8,032,269 11,697,899 1,764,403
Expenditures as of 12/31/18 4,464,936 11,101,880 3,543,686 7,398,424 7,979,082 1,599,697
Expenditures Above/(Below)1/4 Amended Budget -1,171,814 -1,978,620 -3,899,814 -1.649,076 -5,537,168 -3,324,053
%Variance -5.2% -3.8% -13.1% -4.6% -102% -16.9%
Year-end operating revenue and expenditure projections through September 30, 2019 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, 2018, the year-end projections incorporate more recent information available.
As reflected below, revenues for all Enterprise Funds are projected to be equivalent to or in
excess of expenditures as of year-end. It is, however, important to note that as part of the FY
2018/19 Sanitation operating budget, the City's policy of "not utilizing one-time, non-recurring
revenue to subsidize recurring personnel, operating, and maintenance costs" was waived for FY
2018/19, as adopted by Resolution 2018-30512, appropriating $2.9 million of prior year fund
balance in the Sanitation Fund to fund recurring expenditures in FY 2018/19. The projections
below include the use of approximately $2.3 million of prior year fund balance from the
Sanitation Fund to fund recurring costs projected in FY 2018/19.
LTC—FY 2018/19 First Quarter Analysis
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ENTERPRISE FUNDS
Sanitation Sewer Storrs ter Water Parking Convention
Center
FY 2018/19 Adopted Budget 22,392,000 50,679,000 29,390,000 34,555,000 53,609,000 19,374,000
Budget Amendment-11/14/18 155,000 1,643,000 384,000 1,635,000 456,000 321,000
FY 2018/19 Amended Budget 22,547,000 52,322,000 29,774,000 36,190,000 54,065,000 19,695,000
FY 2018/19 Projections
Charges for Services 14,589,000 51,021,000 30,512,000 35,348,000 48,377,000 7,254,000
Other 7,619,000 1,301,000 0 715,000 3,999,000 11,246,000
FY 2018/19 Revenue Projections 22,208,000 52,322,000 30,512,000 36,063,000 52,376,000 18,500,000
$Ovsr5Under)Mended Budget -339,000 0 738,000 -127,000 -1,889,000 -1,185,000
Over/(Under)Amended Budget -1.5% 0.0% 2.5% -0.4% -3.1% -6.1%
FY 2018/19 Expenditure Projections 22,208,000 52,322,000 29,774,000 36,063,000 52,376,000 18,500,000
$Over!Under)Amended Budget -339,000 0 0 -127,000 -1,889,000 -1,195,000
%Over/(Under)Amended Budget -1.5% 0.0% 0.0% -0.4% -3.1% -6.1%
Excess of Revenues Over/(Under)Expenditures 0 0 738,000 0 0 0
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 1.5%, or $339,000, below the current
amended budget, primarily due to projected savings in personnel costs of $592,000
resulting from several vacant positions that the department has been unable to fill or is in
the process of filling, including the Sanitation Director position. These projected personnel
costs savings are, however, anticipated to be partially offset by additional operating
expenditures of $253,000 for usage of outside temporary labor necessary to supplement
permanent department staffing resulting from the current vacancies in the department.
Parking - Expenditures are projected to be 3.1%, or $1.7 million, below the current
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 of
approximately $1.4 million. This decrease is directly related to the diminished demand and
usage of on-street and off-street parking adversely impacted by private on-demand ride
booking services. Additional savings of $306,000 are also projected for the Parking
Department's transportation subsidy based on a projected increase in contributions from
the 1% Quality of Life Resort Tax subsidy that also funds transportation operations.
Convention Center - Expenditures are projected to be 6.1%, or $1.2 million, below the
current amended budget, primarily due to the loss of 18 different shows and events,
including the Home Show, South Florida Boat Show, and Condo and HOA Expo, as
reported by Spectra, the company currently contracted by the City for management of the
Miami Beach Convention Center. The projected reduction in expenditures resulting from
the loss of these shows, combined with the $4.8 million Convention Development Tax
(CDT) bonus projected to be received from Miami-Dade County for FY 2018/19, are
projected to provide an additional $664,000 to be set-aside for future renewal and
replacement of existing Convention Center capital assets.
INTERNAL SERVICE FUNDS
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, Risk Management (Self
Insurance), and Medical and Dental comprise this category of proprietary funds.
An analysis of the actual three-month operating revenues and expenses for the period October
LTC—FY 2018/19 First Quarter Analysis
Page 7 of 11
1, 2018 through December 31, 2018, reveals that all Internal Service Funds, except Central
Services, have expenses less than one-quarter of their current FY 2018/19 amended budgets.
This is primarily due to expenditures typically incurred later in the fiscal year. In contrast, Central
Services has expenses greater than one-quarter of its current FY 2018/19 amended budget due
to the annual payments for metered postage services that are made at the beginning of each
fiscal year.
INTERNAL SERVICE FUNDS
Central Salaam Fleet Infometion Properly Risk Management Medical 3 Dental
Management Technology Management Insurance
FY 2018/19 Adopted Budget 1,101,000 11,492,000 16,614,000 9,733,000 19,460,000 37,938,000
Budget Amendment-11/14/18 12,000 40,000 110,000 316,000 1,166,000 0
FY 2018/19 Am ended Budget 1,113,000 11,532,000 16,724,000 10,049,000 20,626,000 37,938,000
1/4 Adopted Budget 275,250 2,873,000 4,153,500 2,433,250 4,865,000 9,484,500
1/4 Amended Budget 278,250 2,883,000 4,181,000 2,512,250 5,156,500 9,484,500
Revenues as of 12/31/18 263,261 2,741,942 3,959,140 2,407,000 4,719,713 8,807,002
Expenditures as of 12/31/18 313,132 2,284,905 3,225,932 1,458,015 2,352,425 6,670,676
Expenditures Above/(Below)1/4 Amended Budget 34,882 (598,095) (955,068) (1,054,235) (2,804,075) (2,813,824)
%Variance 3.1% -5.2% -5.7% -10.5% -13.6% -7.4%
Year-end operating revenue and expenditure projections through September 30, 2019 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in
time. Furthermore, while the actual revenues and expenses presented above are as of
December 31, 2018, the year-end projections incorporate additional information available.
As reflected below, revenues for all Internal Service Funds are projected to be equivalent to or
in excess of expenditures as of year-end.
INTERNAL SERVICE FUNDS
Central Services ormstManagementMedical S Dental
ManagenentFleet
Technology
lManagenentProperty Risk Management
Insurance
FY 2018/19 Adopted Budget 1,101,000 11,492,000 16,614,000 9733.000 19.460.000 37,938,000
Budget Amendment-11/14/18 12,000 40,000 110,000 316,000 1,166,000 0
FY 2018/19 Amended Budget 1,113,000 11,532,000 16,724,000 10,049,000 20,626,000 37,938,000
FY 2018/19 Projections
Charges for Services 1,059,000 11,108,000 15,862,000 9,693,000 18,540,000 0
Other 43,000 404,000 828,000 164,000 2,086,000 35,375,000
FY 2018/19 Revenue Projections 1,102,000 11,512,000 16,690,000 9,857,000 20,626,000 35,375,000
$Over/(Under)Amended Budget (11,000) (20,000) (34,000) (192,000) 0 (2,583,000)
%Over/(Under)Amended Budget -1.0% -0.2% -0.2% -1.9% 0.0% -6.8%
FY 2018/19 Expenditure Projections 1,102,000 11,512,000 16,690,000 9,857,000 20,626,000 35,375,000
S Over/(Under)Amended Budget (11,000) (20,000) (34,000) (192,000) 0 (2,583,000)
Over/(Under)Amended Budget -1.0% -0.2% -02% -1.9% 0.0% -6.8%
Excess of Revenues Over/(Under)Expenditures 0 0 0 0 0 0
Departments projected to exceed budget, or with significant variances to budget in excess of
$300,000, or 10 percent, are explained below:
Medical and Dental - Expenditures are projected to be 6.8%, or $2.6 million, below the
current amended budget due to medical claims trending lower than budgeted in FY 2018/19
based on current claims experience and adjusted actuarial forecasts as of the end of the
first quarter of FY 2018/19. It is important to note that despite the better-than-anticipated
claims experience realized during the first quarter, claims can fluctuate significantly
throughout the year; therefore, we will continue to monitor trends over the coming months.
SPECIAL REVENUE FUNDS
Special Revenue Funds consist of revenues and expenditures which are legally restricted or
LTC—FY 2018/19 First Quarter Analysis
Page 8 of 11
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, Residential Housing
Program, 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 the Adopt-a-Bench Program.
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2018 through December 31, 2018, reveals that all Special Revenue Funds, except the 5th &
Alton Garage, Police Unclaimed Property, Waste Hauler, and Police Training Fund have
expenses less than one-quarter of their current FY 2018/19 amended budgets due primarily to
expenditures that are typically incurred in the latter part of the fiscal year. The Police Unclaimed,
Police Training, and 5th & Alton Garage Funds have expenses that are more than one-quarter of
their current FY 2018/19 amended budgets due to one-time expenses such as equipment,
training, insurance, etc. being incurred during the first quarter of the fiscal year. The actuals
incurred for these funds through December 31, 2018 are not representative of typical trends for
a full fiscal year.
While all Special Revenue Funds are projected to be at or below their current FY 2018/19
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:
Red-Light Camera - This fund is projected to be 40.4%, or $532,000, below the current
amended budget due to delays in the installation of an additional five red light cameras
originally anticipated to be installed and fully operational by January 2019, as well as
revenues generated from the existing red-light cameras trending lower than budgeted, which
includes one existing camera that is offline. Overall, expenditures are projected to exceed
revenues by $103,000. This shortfall will be offset by the use of the Red-Light Camera's
fund balance.
Red Light Camera
Variance
Amended Budget Projected Projected vs %Over/(Under)
Amended
Budget
Expenditures $ 1,316,000 S 784,000 $ (532,000) -40.4%
RESORT TAX FUND
The City's Resort Tax Fund is primarily supported by 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 tourism 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
LTC—FY 2018/19 First Quarter Analysis
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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)
• Golf courses (net of revenues)
• Memorial Day and other special event costs
• Homeless services
• July 4th, Visitor Center funding, Holiday Lights, Festival of the Arts, Jewish Museum,
MDPL, Orange Bowl, Monuments, etc.
These allowable uses have led to increased tourism-related activities, such as special events
including Art Basel, Air and Sea Show, and various concerts.
Two percent Resort Tax collections are projected to be 0.8%, or $449,000, above the current
FY 2018/19 amended budget as of year-end, which was originally adopted assuming a
conservative 1.0% increase over FY 2017/18 collections.
Total two percent Resort Tax expenditures are projected to be 0.04%, or $22,000, above the
current FY 2018/19 amended budget as of year-end resulting from an increase in the projected
contribution to the Miami Beach Visitor and Convention Authority (VCA), which is based on a
percentage of total two percent collections.
The proceeds of the one percent bed tax commencing FY 2018/19, as adopted by the City
Commission through Resolution 2018-30512, are to be utilized as follows: 60% allocated for
Transportation initiatives in tourist-related areas; 10% allocated equally among North Beach,
Middle Beach and South Beach for capital projects that enhance Miami Beach's tourist related
areas; and 10% allocated to various arts and cultural programs.
One percent Resort Tax operating revenues are projected to be 0.6%, or $82,000, above the
amended budget as of year-end. Concurrently, since transfers for Transportation initiatives in
tourism-related areas, North, Middle, and South Beach quality of life projects, and various arts
and cultural programs are directly based on the proceeds of the one percent tax, one percent
Resort Tax expenditures are equally projected to be 0.6%, or $82,000, above the current
amended budget as of year-end.
Lastly, the proceeds of the additional one percent bed tax levied solely for the purposes of
expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center,
including debt service related thereto, as well as providing Capital Renewal and Replacement
funding for the Miami Beach Convention Center, is projected to be 0.6%, or $82,000, above the
LTC-FY 2018/19 First Quarter Analysis
Page 10 of 11
current amended budget as of year-end. Since the proceeds of the additional one percent bed
tax must first provide for the payment of debt service and any excess, based on proceeds, be
set-aside for Capital Renewal and Replacement funding for the Miami Beach Convention
Center, additional one percent bed tax expenditures are also projected to be 0.6%, or $82,000,
above the current amended budget as of year-end.
Overall, combined Resort Tax revenues are projected to be 0.2%, or $186,000, above the
current amended budget as of year-end, while expenditures are simultaneously projected to be
0.2%, or $186,000, above the current amended budget as of year-end as well. These
projections will be further refined as additional information and data becomes available.
RESORT TAX FUND
FY 2018/19 Amended %Actual of FY2018/19 Over/(Under) %Over/(Under)
Adopted FY 2018/19 Actuals as of Amended Year End Amended Amended
12/31/18
Budget Budget Budget Projections Budget Budget
I
Revenues
2%Resort Tax 59,628,000 59,628,000 8,080,079 13.5% 80,077,000 449,000 0.8%
Miscellaneous Revenues 343,000 343,000 16,787 4.9% 352,000 9,000 2.8%
Transfer In from Fund Balance 851,000 1,101,000 0 0.0% 885,000 (436,000) -39.8%
1%Resort Tax(OOL) 14,421,000 14,421,000 1,839,491 12.8% 14,503,000 82,000 0.6%
Additional 1%for Convention Center 14,421,000 14,421,000 1,839,491 12.8% 14,503,000 82,000 0.6%
Total Revenues 69,464,000 89,91000 11,755,829 13.1% 90,100,000 186,000 0.2%
Expenditures
General Fund Contribution 35,836,000 35,836,000 8,959,000 25.0% 35,836,000 0 0.0%
Sanitation Fund Contribution 1,812,000 1,812,000 453,000 25.0% 1,812,000 0 0.0%
Contribution to GMCVB 8,651,000 6,651,000 931,793 14.0% 6,851,000 0 0.0%
Contribution to VCA 2,882,000 2,882,000 186,359 6.5% 2,884,000 22,000 0.8%
Contribution to Mt.Sinai 1,000,000 1,000,000 0 0.0% 1,000,000 0 0.0%
Other Operating/Other Uses 12,261,000 12,711,000 2,227,110 17.5% 12,711,000 0 0.0%
Marketing 200,000 200,000 12,083 8.0% 200,000 0 0.0%
Transfer to NB,MB,SB Capital,Transp,and Arts(C)OL) 14,421,000 14,421,000 1,839,491 12.8% 14,503,000 82,000 0.6%
Addfl 1%Cons.Center Debt Service 8 Cap.Ren 8 Repl. 14,421,000 14,421,000 0 0.0% 14,503,000 82,000 0.8%
Total Expenditures 89,484,000 89,914,000 14,608,834 16.2% 90,100,000 186,000 0.2%
Excess of Revenues Over/(Under)Expenditures 0 0 (2,853,006) 0 I
CONCLUSION
This analysis of budget to actual operating revenues and expenses as of December 31, 2018,
with projections through September 30, 2019, provides the status of the current amended FY
2018/19 budget for the first three months of the fiscal year. Although the first quarter of any
fiscal year is not necessarily the most definitive 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 first quarter projections, the General Fund is anticipated to have a surplus
totaling $1.6 million as of year-end. All funds will continue to be monitored over the coming
months and projections will be further refined as the fiscal year progresses and additional data
and information becomes available.
J LM/JW/TOS
LTC-FY 2018/19 First Quarter Analysis
Page 11 of 11
SCHEDULE A
CITY OF MIAMI BEACH
FY 2018/19 GENERAL FUND
1ST QUARTER
FY2018/19 FY2016/19 %Actual of FY2018/19 Over/(Under) %Over/(Under)
Adopted Amended Actuals as of Amended Year End Amended Amended
Budget Budget 12191/18 Budget Projections Budget - Budget
REVENUES
Ad Valorem Taxes 179,020,000 179,020,000 130,289,914 72.8% 179,020,000 0 0.0%
Ad Valorem Taxes-Pay-As-You-Go Capital 2,400,000 2,400,000 2,400,000 100.0% 2,403,000 0 0.0%
Ad Valorem Taxes-Capital Renewal&Replacement 748,000 748,000 748,000 100.0% 748,000 0 0.0%
Ad Valorem Taxes-Normandy Shores 165,000 165,000 165,000 100.0% 165,000 0 0.0%
Other Taxes 25,262,000 25,282,000 4,294,186 17.0% 24,253,000 (1,009,000) -4.0%
Licenses and Permits 31,454,000 31,829,000 12,873,701 40.4% 32,327,000 498,000 1.6%
Intergovernmental 12,115,000 12,115,000 2,081,816 17.2% 11,950,000 (165,000) -1.4%
Charges for Services 12,503,000 12,503,000 2,841,224 22.7% 12,726,000 223,000 1.8%
Fines and Forfeitures 1,860,000 1,860,000 459,242 24.7% 1,841,000 (19,000) -1.0%
Interest 3,617,000 3,617,000 2,383,909 65.9% 3,320,000 (297,000) -8.2%
Rents and Leases 5,899,003 5,899,000 2,070,448 1.0% 8,182,000 283,000 4.8%
Ntscellaneous 14,118,000 14,116,000 2,574,076 18.2% 14,058,000 (60,000) -0.4%
Other-Resort Tax Contribution 35,836,000 35,838,000 8,959,000 25.0% 35,836,000 0 0.0%
Other-Non-Operating Revenues 19,577,000 19,577,000 4,906,149 25.1% 19,589,000 12,000 0.1%
Fund Balance/Retained Earnings 1,073,000 1,073,000 0 0.0% 1,073,000 0 0.0%
Prior Year-End Surplus Carryover 0 6,562,000 0 0.0% 6,562,000 0 0.0%
TOTAL REVENUES 345,645,000 352,582,000 177,046,663 50.2% 352,048,000 (534,000) -0.2%
EXPENDITURES
Building 15,243,000 15,250,000 3,160,839 20.7% 14,346,000 (904,003) -5.9%
Capital Improvement Projects 5,227,000 5,227,000 1,055,968 20.2% 5,052,000 (175,000) -3.3%
City Attorney 5,818,000 8,124,000 1,207,597 19.7% 6,101,000 (23,003) -0.4%
City Clerk 1,755,000 1,785,000 368,984 20.9% 1,750,000 (15,000) -0.8%
City Manager 4,129,000 4,129,000 996,749 24.1% 4,119,000 (10,000) -0.2%
Code Compliance 6,215,000 6,353,000 1,293,867 20.4% 8,202,000 (151,000) -2.4%
Communications 2,339,000 2,589,000 517,737 20.0% 2,651,003 62,000 2.4%
Emergency Management 1,513,000 0 0 - 0 0 -
Environment&Sustainability 1,482,000 1,492,000 279,253 18.7% 1,472,000 (20,003) -1.3%
Finance 6,714,000 6,933,000 1,478,589 21.3% 8,875,000 (58,000) -0.8%
Fire 87,551,000 89,625,000 20,516,813 22.9% 89,598,000 (29,000) 0.0% ,
Housing&Comm Services 3,624,003 3,700,000 680,090 18.4% 3,841,000 (59,000) -1.6%
Human Resources/Labor Relations 3,003,000 3,105,000 600,095 19.3% 3,049,000 (58,000) -1.8%
Mayor and Commission 2,416,000 2,416,000 515,438 21.3% 2,350,000 (88,003) -2.7%
Internal Audit 832,000 1,100,000 132,339 12.0% 1,075,000 • (25,000) -2.3%
Office of Budget&Performance Improv 1,875,000 1,880,000 417,352 22.2% 1,850,000 (30,003) -1.6%
Office of Inspector General 484,000 484,000 0 0.0% 484,000 0 0.0%
Org Development&Pert Initiatives 893,000 1,059,000 153,108 14.5% 1,035,000 (24,000) -2.3%
Parks and Recreation 38,880,000 39,076,000 8,805,374 22.5% 38,970,000 (106,000) -0.3%
Planning 4,686,000 5,513,000 1,100,469 20.0% 5,503,000 (10,003) -0.2%
Police 112,094,000 112,708,000 26,081,287 23.1% 112,655,000 (53,003) 0.0%
Procurement 2,550,000 2,692,003 544,733 20.2% 2,615,000 (77,003) -2.9% ,
Public Works 15,178,003 15,349,000 2,715,838 17.7% 15,221,000 (128,000) -0.8%
Tourism,Culture,&Economic Development 5,373,003 5,373,000 1,128,444 21.0% 5,303,000 (73,000) -1.4%
Citywide Accounts&Operating Contingency 12,292,000 14,210,000 1,707,122 12.0% 14,083,000 (127,000) -0.9%
Citywide-Normandy Shores 253,000 253,000 0 0.0% 253,000 0 0.0%
Citywide-Transfers-Info&Comm Technology Fund 300,000 300,000 0 0.0% 300,000 0 0.0%
Citywide-Transfers-Pay-As-You Go Capital Fund 2,400,000 3,129,000 0 0.0% 3,129,000 0 0.0%
Citywide-Transfers-Capital Renewal&Replacement 748,000 748,000 0 0.0% 748,030 0 0.0%
TOTAL EXPENDITURES 345,645,000 352,582,000 75,457,883 21.4% 350,425,000 (2,157,000) -0.8%
EXCESS OF REVENUES OVER/(UNDER)EXPENDITURES 0 0 101,588,780 1,623,000