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LTC 176-2003 CITY OF MIAMI BEACH Office of the City Manager Letter to Commission No. 176 To: From: Subject: Mayor David Dermer and Members of the City Commission Date: July 28, 2003 Jorge M. Gonzalez ~ fg,~ City Manager ' Transmittal of Bud0get Message and Summary Spreadsheet The purpose of this Letter to Commission is to transmit to you an advance copy of my budget message and summary spreadsheet which will be included in the Proposed Budget for FY 2003/2004. The budget process this year has been an extremely challenging one but has resulted in what I believe to be a very responsible plan that is fiscally prudent and manageable. The Proposed Budget will be forwarded to you under separate cover later today. As you know this represents a point of departure for discussion and analysis as we proceed to reach final approval of our spending plan in September 2003. At the July 30th Commission Meeting, you will be asked to set a tentative millage for the coming year. You will also have an opportunity to provide guidance, direction or ask questions regarding the Proposed Budget. In an effort to keep you as informed as possible throughout the development of the Proposed Budget, we have presented four budget briefings to you, your staff and the public. We will also provide a summary presentation on Wednesday. I hope the attached documents will give you advance information in preparation for Wednesday's meeting. Please feel free to contact me should you require additional information or wish to discuss this matter directly. JMG\REP Attachments 1. Budget Message 2. Summary spreadsheet ..---..- Office of the City Manager July 30, 2003 CITY OF MIAMI BEACH 1700 Convention Center Drive Miami Beach, Florida 33139 www. miamibeachfl.gov Honorable Mayor David Dermer and Members of the City Commission: I am pleased to submit my recommended Operating Budget for the fiscal year commencing on October 1, 2003 and ending on September 30, 2004. The proposed FY 2003/04 General Fund Operating Budget, net of the Redevelopment Agency (RDA), is $152.4 million. The projected General Fund balance as of September 30, 2003 is $29.5 million with an emergency contingency reserve of $17.3 million. The proposed budget recommends maintaining the current rate of 7.299 mills. During the past year, the City of Miami Beach continued to make great progress in achieving our vision of becoming a community that is cleaner and safer; more beautiful and vibrant; mature and stable with a well-improved infrastructure; a unique historic, urban environment; a cultural, entertainment, and tourism capital; and an international center for innovation in culture, recreation, and business. Our efforts were recognized nationally this year when we were presented the 2003 Ali-America City Award, a prestigious national award which recognizes civic excellence and communities that best exemplify the spirit of citizen involvement and cross-sector collaborative problem solving. Miami Beach was the only community in the State of Florida and one of only ten throughout the country to be presented with this award. Miami Beach 2003 Our successes were accomplished despite a particularly challenging fiscal year caused by the effects of the continuing slowdown of the national economy and its ripple effects in our region. In these uncertain economic times, when communities throughout Miami- Dade County, the State of Florida and the country continue to have to raise their millage rates to provide their basic services, the City of Miami Beach has not, and again, will not. In fact, the City of Miami Beach has managed to maintain our strong financial position throughout these challenging times. Standard and Poor's, one of the nation's bond-rating services, has upgraded their rating on the City's bonds to an AA- from an A+, which is the second upgrade for the City from this firm in a six month period. In addition, Moody's has affirmed their A1 rating and has upgraded their outlook for the City from stable to positive. This is a very significant accomplishment for the City of Miami Beach and reflects on the City's positive financial condition and leadership. Throughout the past three years, I have focused the Administration on the following priorities that were identified through our five-year visioning effort: · Implementation of the Capital Improvement Program (ClP); · Implementation of our strategic plan and economic development program; · Investment in organizational and leadership development of internal staff; We are committed to providing excellent public service and safely to all who live, work, and play in our vibrant, tropical, histodc communitjz FY2003/04 Budget Message July 30, 2003 Page 2 · The delivery and quality of services offered to our residents; and · Implementation of our electronic government solutions. By staying focused on these priorities, we have been able to accomplish a great deal. I would like to take this opportunity to highlight some of these accomplishments for you. The Capital Improvements Project (ClP) Office completed the staffing and relocation of the department and developed a five-year implementation schedule for all construction- funded programs. Internally, the department established an information management system to keep all appropriate City departments connected and updated regarding all ClP projects; created accountability mechanisms to ensure high quality, timely work by the City's architects, engineers, and contractors; and drafted a community information operating charter aimed at managing and mitigating all ClP-related community and business issues. The planning process was completed and improvements were initiated in eight of the City's 13 neighborhoods. Several major projects were completed including phase I of the South Pointe Streetscape; the Miami Beach Golf Club golf course; the Chase Avenue streetscape; phase II of the North Shore Open Space Park; the expansion of the Bass Museum; the Espanola Way streetscape; and improvements in many parks throughout the City. Several projects are currently in construction with many nearing completion, including the Miami Beach Regional Library which is scheduled to open its doors this fall, as well as the North Shore Youth Center and the Normandy Park and Pool. Our economic development efforts included initiatives that have continued to expand and diversify the City's economic base in order to ensure that appropriate and sustainable economic growth occurs in Miami Beach. We continued to focus our efforts on attracting significant private investment to our community and secured the relocation of several corporations to Miami Beach including LNR Property Corporation a Fortune 500 Company, SR Teleperformance USA and the William Morris Agency, one of the leading talent agencies in the world. The updated master plan for the City Center Redevelopment Agency that anticipates the expansion of the New World Symphony and the Frank Gehry designed Soundspace facility has been approved. The Department of Tourism and Cultural Development was created and staffed to leverage and coordinate all issues that contribute to these important areas of our economy. This past year, we were able to capitalize and expand on the extraordinary events that occurred in Miami Beach, including the first-ever MTV Latin Music Video Awards which drew a world-wide viewing audience of over 400 million; the first-ever Miami Beach Thanksgiving parade which was broadcast by the CBS Television Network on Thanksgiving Day and watched by several million viewers; and the first-ever Art Basel / Miami Beach event which made our community the epicenter of the art world bringing thousands of visitors to Miami Beach and generating many positive stories in the media world-wide. Other accomplishments include the completion of the Citywide Parking Demand Analysis; several public-private partnerships which yielded approximately 1,200 new parking spaces; the completion of the temporary Baywalk in South Pointe; and the successful sale of the Altos del Mar lots in North Beach for future development. FY2003/04 Budget Message July 30, 2003 Page 3 The organizational and leadership development of our staff remains a priority and there were several accomplishments in this area. Several key hires were made including the Director of Tourism and Cultural Development, our Fire Marshall and an Organizational Development Specialist. Leadership development opportunities were created for all City departments which focused on team-building, mission alignment, goal setting, performance measures and internal leadership development. The Citywide employee "intranet" was developed as a way to improve and enhance internal communications among all City staff. Several internal key processes were streamlined in order to more efficiently address the needs of all City departments. We continued our partnerships with Barry University, Florida International University and Miami-Dade Community College to offer an expanded array of college and graduate level courses in Miami Beach for our employees and residents alike. We continuously enhance and implement new customer service initiatives to improve the delivery of services and meet the needs of our residents and businesses. Our neighborhood service initiatives enable us to continually reach out to and involve our residents in order to empower and deliver better services to them. This past year, there were a total of 12 neighborhood meetings throughout the South, Middle, and North Beach areas. These meetings bring City Hall to the neighborhoods and afford residents an opportunity to further connect with their government. We continued and improved the Neighborhood Leadership Academy, the Volunteer Network and the Community Emergency Response Teams (CERT). The City's Answer Center has been staffed with a customer service manager and four full-time call center customer service representatives who are providing information to residents on the telephone and over the internet. We implemented a very successful neighborhood blitz program that consisted of a beautification effort in the North Beach area. Through our Office of Community Services, we served 30 youth through our Truancy Intervention Program and expanded programming in the Log Cabin Training Center to include counseling, art, and cooking. We continued and expanded our active deployment of our Homeless Outreach Team and hired two formerly homeless individuals to be part of our peer counseling staff. Through these efforts, we have continued to address the issues affecting the homeless population on Miami Beach. We continue to make progress with our implementation of electronic government solutions that provide electronic access to City services and information. The City's website was redesigned and enhanced to better serve our residents and businesses in both English and Spanish. We have implemented several "on-line" capabilities including the ability to pay utility bills, business license bills and parking citations; register and pay for parks programs, register a neighborhood association, submit a passport application, apply for a film permit, apply for a special event permit, register a burglar alarm, receive an updated traffic advisory, and download a web cast of all City Commission meetings. We continue to provide live web casting of City Commission and various other City meetings. This year, in an effort to provide even better communication with our Spanish-speaking residents, the City of Miami Beach became the first municipality in South Florida to offer Secondary Audio Program (SAP) in Spanish on our government-access cable channel 20 that provides a live translation of City Commission and various other City meetings FY2003/04 Budget Message July 30, 2003 Page 4 from English into Spanish. We also implemented a "listserve" function which facilitates the electronic mailing of Citywide correspondence and newsletters via the world wide web. Our goal through the implementation of electronic government solutions is to create a virtual City Hall that can be accessed by anyone, anytime, anywhere. By staying focused on these priorities, the City of Miami Beach will continue to evolve into a world-class, vibrant, tropical, historic community that provides outstanding services to our residents, businesses and for the more than ten million visitors from around the world who come to our City every year. It is my intention to again provide a fiscally responsible budget that will help us achieve our goals and priorities. The proposed budget continues and builds on the comprehensive efforts that we have been working on for the past three years. The proposed budget recommends maintaining the current millage rate of 7.299. In order to maintain this rate and provide a balanced budget, certain difficult choices were made. The proposed budget recommends implementing over $6.2 million of newly identified efficiencies within the organization generated through reallocation and reduction of current operating expense. Further, 68 positions have been eliminated, 15 of which were filled. Additionally, this budget incorporates increases in fees, some of which had not been increased in over 11 years, totaling approximately $1.6 million. Finally, it includes realignments in several City departments, which will result in the increased ability to provide services through the reallocation of funding from staffing to contract services. With these adjustments, we are able to not only continue to provide service at generally the same levels, but to recommend several service level enhancements primarily in the areas of Parks, Community Policing, and Public Works- Sanitation. All of the recommended changes are discussed in greater detail in the financial summary below. Financial Summary The General Fund is the primary source of funding for all City services. Revenues are derived from ad valorem property taxes, franchise and utility taxes, business license and permit fees, revenue sharing from various statewide taxes, user fess for services, fines, rents and concession fees and interest income. Additionally, Resort Taxes provide funding for tourist related functions that are classified within the General Fund. The proposed FY 2003/04 General Fund budget, net of RDA, is $152.4 million. This 44% represents an increase of $8.31million or 5.8% over the FY 2002/03 adopted General Fund ~r~& budget, net of RDA, of $144.0 uc~,~ million. The average annual ,% 13% increase in the FY 2000/01, FY2001/02 and FY2002/03 General Fund budgets, net of RDA, was $9.93 million and represented an average increase over the prior year's budget of 8% each year. This FY 2003/04 General Fund Revenue Other 2% FY2003/04 Budget Message July 30, 2003 Page 5 was an extremely challenging budget process and by the time we had completed this proposed budget we had achieved approximately $6.2 million of resource efficiencies and eliminated 68 positions, 15 of which were filled. These efficiencies combined with those from last year's efforts produce a two-year total of $13.2 million in efficiencies gained and 102 positions eliminated. General Fund Revenues As in the past several years, the largest increase in budgeted revenues for FY 2003/04 come from ad valorem property tax, which includes a levy for the general operations of the City as well as a levy for the debt service on outstanding general obligation bonds. I am recommending that the City's FY 2002/03 operating millage rate of 7.299 remain the same for FY 2003/04 and am recommending a decrease of 0.149 in the current debt service millage rate from 1.023 to 0.874. Although the overall millage will decrease (0.149), due to increases in assessed value there will be a net increase in the amount of taxes that the average residential homeowner will pay to the City in the coming fiscal year. Property Tax Levy vs. Values Property Values and Ad Valorem Taxes According to the 2003 Certification of Taxable Value received from the Miami-Dade County Property Appraisers Office, the taxable value for the City of Miami Beach increased from $10.56 billion to $12.09 billion and included over $438.10 million in new construction. This preliminary value represents an increase of $1.53 billion or 16.5% over 2002's final value and represents the largest increase that the City has experienced in its recent history. General Operating Tax Rates The comparative assessed values for the Miami Beach Redevelopment Agency South Pointe redevelopment district increased from $920.7 million to $1.3 billion, an increase of $387 million, or a 42% increase in values over 2002 values. The City Center redevelopment district assessed values increased from $1.36 billion to $1.5 billion, an increase of $139 million, or a 10.2% increase in values over 2002 values. The proposed millage rate of 7.299 mills for general City operations will generate ad valorem tax revenues of $85.18 million (of which $17.02 million will be transferred to the Redevelopment Agency) for a net revenue total of $68.16 million in the General Fund. The total amount is $10.8 million more than the prior year levy of $74.4 million, reflecting a 14.5% increase. The net General Fund ad valorem budgeted revenue increased from $61.00 million to $68.16 million, an increase of $7.16 million, or an 11.7% increase from FY 2002/03. FY2003/04 Budget Message July 30, 2003 Page 6 General Obligation Debt Service Millage The general obligation bond debt service payment for FY 2003/04 is $10.2 million, a decrease of $0.2 million or 2.2% from reduced outstanding principal on the debt. This decrease is due to the payment of bonds. These bonds require the levy of a debt service millage of 0.874 mills, which is the result of the significant and continued increases in assessed values. This reduction is 0.149 mills (14.6%) less than the FY 2002/03 rate of 1.023 mills. Opportunity To Establish A Milla,qe For Maintenance For the upcoming FY 2003/04 the City has an opportunity to establish a restricted account for the maintenance of City parks, streets, sidewalks, buildings and other facilities. This concept is in response to concerns expressed by our citizens throughout the development and implementation of our Capital Improvement Program and the Administration's desire to maintain the City in a "world class" manner. This opportunity would result in a restricted amount for FY 2003/04 of approximately $1.4 million to be used exclusively to provide for additional infrastructure maintenance over and above the $13.5 million already included in the City's Proposed FY 2003/04 Budget. The funding of this restricted account could be accomplished by adding the amount of the FY 2003/04 Debt Service Millage reduction (1.023 - 0.874 = 0.149 mills) to the FY 2003/04 General Operating Millage (7.299 + 0.149 = 7.448). Therefore, the Total City millage would not increase but would remain at 8.322 as it was in FY 2002/03. City property owners would pay the same total tax millage for FY2003/04 as they did in FY 2002/03. The chart below illustrates the "Millage for Maintenance" concept. "Millage for Maintenance" Tax Levy FY 2002/03 FY 2003/04 Inc/(Dec) General Operating 7.299 7.4~, 8 0.149 Debt Service 1.023 0.874 (0o149) TOTAL 8.322 8.322 (0.000) As assessed values in the City continue to rise over the upcoming years, the cost of debt service on outstanding general obligation bonds will be spread over a larger value FY2003/04 Budget Message July 30, 2003 Page 7 resulting in a decrease in debt service millage each year. If the City were to continue this process, thereby, adding the decrease in debt service millage each year to the general operating millage until the amount of the millage associated with maintenance reached 0.5 mills, it would generate (based on today's value of a mill) a minimum of $4.6 million for additional infrastructure maintenance each year. Impact of "Millaqe for Maintenance" on the Homeowner Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in assessed value of homesteaded property to the percentage increase in the consumer price index (CPI) or 3%, whichever is less. For 2003, the CPI has been determined to be 2.4 % and therefore, the increase is capped at 2.4% for increased values as of January 1, 2003. The $25,000 homestead exemption is applied after the increase in value as follows: assuming a $200,000 residential property in Miami Beach, that value is increased by the 2.4% to a new value of $204,800. The homestead exemption of $25,000 is then deducted, yielding a taxable value of $179,800. Using the proposed tax rates, that increased value is then taxed as follows: FY 2003/04 FY 2003/04 Proposed Millage for Milla.qe Maintenance Difference General Operating @ 7.299 @ 7.448 0.149 Debt Service 0.874 0.874 0.000 Total 8.173 8.322 0.149 Increase Increase Increase Over Over from Millage FY2002/03 FY2002/03 for Maintenance Miami Beach $13.15 $39.94 $26.79 Miami-Dade County 32.46 32.46 0 School Board 17.08 17.08 0 Other 3.52 3.52 0 Totals $ 66.21 $ 93.00 $26.79 At the combined proposed millage rate of 8.173, the total dollars for both operating and debt service paid to the City, when compared to the prior year's taxable value of $200,000 and 8.322 millage rate, would increase by $13.15. The overall taxes from all taxing jurisdictions combined would increase by $66.21. This, of course, assumes that the other taxing jurisdictions adopt these millages. For illustrative purposes, under the previously discussed "Millage for Maintenance" concept at the combined millage rate of 8.322, the total dollars for both operating and debt service paid to the City when compared to the prior year's taxable value of $200,000 and the FY 2002/03 8.322 millage rate, would increase by an additional $26.79. FY2003/04 Budget Message July 30, 2003 Page 8 Other General Fund Revenues The General Fund will reduce its Waste Collection Franchise fee by the remaining 2% which will be moved to the Sanitation Fund, leaving no Waste Collection Franchise fees in the General Fund. It was our desire not to raise our millage and so we looked at our current user fees and evaluated them in comparison to the cost or value of the services being provided and with rates charged in surrounding communities. As a result, we have proposed a series of responsible fee increases that are comparable to fees for similar services provided by other municipalities and that will begin to adjust for inflation and bring our user fees more in line with the cost or value of the services provided. These fee increases include occupational licenses, certificates of use, fire inspection, building permits; fire plans analysis and sidewalk caf6 fees. Parks user fees reflect adjustments in all areas and begin to bring fees closer to the cost of services provided, particularly at our pools, and after school and summer programs. These fee increases are estimated to produce additional revenues of $1.63 million which is included in the proposed FY 2003/04 budget. Interest revenues are projected at $2.8 million which is a $1.9 million decrease from the FY 2002/03 budget. This decrease is primarily due to declining interest rates and a shorter average life of our investment portfolio. In the area of rents and leases the City has budgeted increases from the 777 Building, Penrod's and other rents and leases totaling approximately $0.5 million. Other revenue areas, which include Intergovernmental revenues, fines and forfeits, other taxes and miscellaneous revenues, have a cumulative projected increase of approximately $56 thousand. General Fund Expenditures The increased cost to maintain current service levels, with some improvements in the FY 2003/04 General Fund Budget total approximately $7.1 million. Enhancements total approximately $1.2 plus a $3.6 million increase from the Redevelopment Agency for community policing in redevelopment districts. Major current service level increases as well as enhancements to the service level are described below by functional area. Public Safety Public Safety is comprised of the Police and Fire Departments. The FY 2003/04 proposed budget for this area is $84.8 million in current service levels. An additional $3.6 million will be provided to initiate community policing initiatives in the FY 2003/04 General Fund Expenditures City Attorney 5% 2% Admln Support 7% Public Safety 56% Operations 23% Mayor & ~- Commission FY2003/04 Budget Message July 30, 2003 Page 9 redevelopment districts. This amounts to 56% of the total General Fund budget and represents an increase of $4.0 million from the FY 2002/03 budget. In the Police Department, several enhancements are being proposed. To increase police visibility on the streets and promote stronger community partnerships, several officers will be reassigned to proactive uniform patrol positions throughout the City. One sergeant and four officers have been reassigned from the Criminal Investigations Division, Special Investigations Squad. This transfer will not eliminate the services currently provided, but will enhance specialized field operations. Two officers have also been reassigned from the Criminal Investigations Division, School Resource Office to assume uniform patrol duties. Their duties as police liaisons to the schools will be assumed by two retired police officers who will be contracted to provide a continued presence in the schools. One sergeant from the Support Services Division will be reassigned to uniform patrol. In addition, fifteen new sworn officers will be funded by RDA for the redevelopment districts within Miami Beach as part of our continued community policing initiatives. The combined efforts will result in a total of twenty three additional sworn uniform officers for the Patrol Division. Operations Operations is comprised of the Public Works, Neighborhood Services, Parks and Recreation, and Parking Departments and the Capital Improvement Program Office. The proposed FY 2003/04 budget is $35.8 million in current service levels from the General Fund portion. This amounts to 23% of the total General Fund budget, net of RDA, and represents an increase of $3.4 million from the FY 2002/03 budget. The Parks and Recreation Department will undergo a reorganization that will enable the department to be much more responsive and accountable for quality recreation services. A key component of this reorganization is the creation of designated facility managers who will have the responsibility for the management and the offering of services in their respective facilities. The larger City facilities, including the new North Shore Park and Youth Center, the expanded Scott Rakow Youth Center and Flamingo Park will each have their own manager. Each of the facilities will also have additional resources to deliver the services desired and requested by our citizens. The North Shore Park and Youth Center, Normandy Isle Park and Pool and the expanded Scott Rakow Youth Center, will receive approximately $1.1 million in staff and resources to open and operate under our new structure and service levels. Programming at Fairway, Tatum and Normandy Shores Parks will be redirected to the newer expanded facilities, and these parks will be used for athletic programs, open field play, and as satellite facilities when needed to accommodate program volume from the newer facilities in North Beach. These changes reflect a conscious effort by the department to effectively manage their resources and provide quality programming throughout the City. The City's Beach Patrol will be supplemented by a new Park Ranger program which will provide additional security and monitoring of our parks and beaches, improved customer service and enhanced public safety. This program will deploy 11 full-time Park Rangers throughout our parks and beaches and two part-time Park Rangers to provide support and relief. These enhancements are being funded through our FY2003/04 Budget Message July 30, 2003 Page 10 community policing program from the Redevelopment Agency and with reallocated security funds from Parks and Recreation. As a result of this program, it is recommended that the City close two lifeguard towers located on 81st and 83r~ Streets and shift remaining area lifeguard towers located on 77th, 79th, and 85th Streets to provide coverage in the North Shore Open Space Park. It is also recommended that the Beach Patrol shifts be reduced from ten hours to eight hours during nine months of the year and that temporary lifeguard positions be reduced. The Public Works Department will also undergo a reorganization that will streamline the department and the services it provides. As a result, several enhancements are proposed. The Sanitation Division has consolidated litter routes allowing savings to fund two crews that will be dedicated to the operation of the new MadVac XL 600's that will replace hand-sweeping crews in residential areas. Mechanization of this function will increase the frequency in these residential areas and allow the Division to reassign hand-sweeping crews to areas currently being cleaned on an as needed basis. This service enhancement continues to make the Division more proactive to litter control around the City. Additional savings will be used to fund the South Beach Service Team Superintendent position who will act as a link between the business owners and the City of Miami Beach. This enhancement is a vital part of the City's vision to consolidate the customer service core, to restructure the organization to include a middle management layer and ensure the success of the Sanitation, South Beach Service Team. Additional enhancements in this department include the creation of an additional streetlight maintenance crew to maintain the newly constructed capital projects and provide adequate maintenance and repair of citywide lighting; the establishment of a waterway maintenance program that will address erosion, debris, seawalls and docks; increasing the stormwater drainage system cleaning capability through the use of additional contractual services; continuing the development of an Infrastructure Management System which will integrate all the maintenance efforts within the various divisions of the Public Works Department into a centralized maintenance management system; and continuing the development of a City Geographic Information System (GIS) which would provide a detailed layered presentation of all maintenance, construction and infrastructure. Economic Development and the Arts Economic Development and the Arts is comprised of the Building and Planning Departments and Economic Development, Tourism and Cultural Development, the Convention Center and the Bass Museum. The proposed FY 2003/04 budget is $9.5 million in current service levels from the General Fund. This amounts to 6% of the total General Fund budget and represents an increase of $244,000 from the FY 2002/03 budget. Enhancements in this area include the addition of one Senior Building Inspector to enhance our Building Code Compliance program; and the funding of one Planner and an Office Associate III to provide the concurrency function that is being transferred from the Public Works Department. FY2003/04 Budget Message July 30, 2003 Page 11 Administrative Support Services Administrative Support Services is comprised of the Finance, Human Resources Departments, the Grants Management, Internal Audit and Procurement Divisions, and the Offices of Management and Budget, City Clerk and City Manager. The FY 2003/04 proposed budget for this area is $10.1 million, which includes $32,000 in enhancements and represents 7% of the General Fund budget. City Attorney The proposed FY 2003/04 budget for the City Attorney is $3.1 million, represents 2% of the total General Fund budget and reflects an increase of $126,000 over the FY 2002/03 budget. Internal Support Services Internal Support Services is comprised of the Central Services, Fleet Management, Information Technology, Risk Management and Property Management Divisions. The proposed FY 2003/04 budget for this area is $37.9 million in current service levels. This represents an increase of $465,700 from the FY 2002/03 budget, primarily as the result of increases in salaries and contract maintenance. These costs are completely allocated to the General Fund and Enterprise Fund departments. Citywide Maintenance and Repairs Budqet The Administration, in an effort to maintain the City of Miami Beach as a world-class city, has positioned a cooperative team of skilled professionals responsible for the upkeep and routine maintenance of citywide assets and facilities. The City has and continues to make a significant investment in the preservation and enhancement of its assets, earmarking approximately $13.5 million in FY 2003/04 for this effort. The departments and divisions providing maintenance and repair services strive to provide efficient, FY 2003/04 Maintenance Budget Utilities 10% Streets& Sidewalks 12% Landscape 12% Parks & P Isygrounds 27% Admln -Facilities 7% Cultural 9% P ubllc Safety Facilities 11% Psrking Garages & Lots 12% accountable, and courteous services that enhance the quality of life for all who live, work, and play in our vibrant, tropical, and historic community. The maintenance and repairs budget, which totals over $13.5. million, includes line item budgets for both current and new city-wide maintenance programs necessary to maintain, improve, and enhance public facilities and infrastructure to meet the service FY2003/04 Budget Message July 30, 2003 Page 12 demands of residents and visitors to the City of Miami Beach. The City is also investigating and seeking funds for other significant areas where conditions warrant funding for routine maintenance and/or renovations, i.e. citywide canal clean up and old city hall structural repairs and is actively seeking grants in order to begin maintenance work for these two key areas. Bud.qet Recommendation The Administration recommends that the Mayor and City Commission adopt the following: 1) Proposed Millage Rates for FY 2003/04: General Operating Debt Service 7.299 mills 0.874 mills 8.173 mills (7.299 last year) (.1.023 last year) (8.322 last year) 2) Rolled-Back Rate (Truth in Millage) 6.527 mills 3) The first public hearing to consider the proposed millage rates and tentative budgets for FY 2003/04 shall be at 5:01 p.m., Thursday, September 4, 2003 in the City Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida. Conclusion Although the past fiscal year was an extremely challenging one due to the ongoing economic situation affecting the world, the City of Miami Beach was able to continue to deliver outstanding services to our residents, businesses and visitors. In order to continue to provide these outstanding services and provide certain important enhancements and present a balanced budget, we have had to make some difficult choices, which include identifying over $13.2 million in efficiencies and eliminating over 100 positions during the last two budgets. I believe that these are all necessary in order to achieve our vision of becoming a community that is cleaner and safer; more beautiful and vibrant; mature and stable with a well-improved infrastructure; a unique historic, urban environment; a cultural, entertainment, and tourism capital; and an international center for innovation in culture, recreation, and business. Acknowled.qements I would like to thank all our employees for their commitment to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic community. Without our committed staff, we would not be able to accomplish so many wonderful results that benefit our community. I appreciate everything they do every day to make Miami Beach a better place for all of us. This year's budget preparations have been incredibly challenging and I would like to thank all the staff from throughout the City who worked so hard to ensure that they FY2003/04 Budg~ Message July30,2003 Page13 submitted department budgets that are fiscally prudent and balanced. In particular, I would like to thank the Assistant City Managers and the Department Directors for their hard work and many long hours devoted to submitting budgets that identified significant efficiencies from their current year's budget without dramatically affecting the current levels of service. I know that this has not been an easy process but I appreciate all of us working together to accomplish our goals. The development of this year's proposed budget has taken a great deal of time, energy, commitment and skill. I would like to thank our Chief Financial Officer, Patricia Walker, for her dedication and leadership in this area. I would also like to thank Jose Cruz, Carmen Carlson, William Gonzalez, Joseph Reilly, and Sailyn Arce from the Office of Management and Budget, as well as Georgina Echert, Ramon Duenas, Manuel Marquez and the rest of the Finance staff for their time, effort, and professionalism in preparing this budget. Finally, I would like to thank you, Mayor Dermer and the Members of the City Commission, for your guidance and direction in helping to accomplish so much on behalf of our residents and for the entire City of Miami Beach. Together, we really are making Miami Beach a better place. Respectfully submitted, e M. le ~ -- City Manager CITY OF MIAMI BEACH Proposed Fiscal Year 2003/04 Appropriation Summary by Fund and Department IAd°pt°d I"r°ject°d I Pr°p°s°d IPr°p04'Adp031 FUND/DEPARTMENT FY 2002/03 FY 2002/03 FY 2003~04 Variance % Diff. GENERAL FUND MAYORAND COMMISSION $ 1,084,947 $ 1,085,345 $ 1,177,053 $ 92,106 8.49% ADMINISTRATIVE SUPPORT City Manager 1,714,296 1,700,600 1,837,838 123,542 7.21% Media Relations 254,770 261,269 234,928 (19,842) -7.79% Finance 3,247,214 3,319,269 3,249,728 2,514 0.08% Management & Budget 579,521 565,106 666,514 86,993 15.01% Internal Audit 379,368 344,953 319,328 (60,040) -15.83% Human Resources 1,532,480 1,502,114 1,502,603 (29,877) -1.95% Labor Relations 175,641 157,039 161,247 (14,394) -8.20% City Clerk 1,249,064 1,318,986 1,322,995 73,931 5.92% Procurement 733,902 732,513 676,106 (57,796) -7.88% Grants Management 150,685 148,585 176,225 25,540 16.95% CITY ATTORNEY 2,969,646 2,980,909 3,095,528 125,882 4.24% ECON DEV & CULTURAL ARTS Economic Development 1,118,268 1,100,138 836,400 (281,868) -25.21% Building 4,255,249 4,154,705 4,568,255 313,006 7.36% Plannin~l 2,255,752 2,188,379 2,287,154 31,402 1.39% Tourism & Cultural Development 519,046 519,782 674,329 155,283 29.92% Bass Museum of Art 1,114,049 1,199,485 1,140,450 26,401 2.37% OPERATIONS Neighborhood Services 3,008,413 3,011,364 3,053,844 45,431 1.51% Parks & Recreation 21,752,477 22,211,029 24,920,808 3,168,331 14.57% Public Works 5,457,520 5,268,883 5,510,893 53,373 0.98% Capital Improvement Program 2,160,358 2,026,143 2,276,274 115,916 5.37% PUBLIC SAFETY Police 53,789,261 53,522,919 56,504,946 2,715,685 5.05°/ Fire 27,048,464 27,529,323 28,339,156 1,290,692 4.77% ClTYVVlDE Citywide Accounts-Other 6,336,946 6,598,361 6,704,034 367,088 5.79% Citywide Accounts-Normandy Shores 120,000 120,000 125,800 5,800 4.83°/ Operating Contingency 983,777 983,777 1,000,000 16,223 1.65% TOTAL GENERAL FUND $143,991,114 $144,550,976 $152,362,436 $ 8,371,322 5.81% DEBT SERVICE 10,424,846 I $ 10,424,846 I $ 10,200,337 I $ RDA FUNDS $ ClTYWIDE ACCOUNTS-RDA So Pointe ~ $ 5,948,507 ClTYWIDE ACCOUNTS-RDA City Cente~ 7,380,783 TOTAL RDA FUNDS ! $ 13,329,290 {224,509)1 -2.15%I 5,832,27315 8,653,82615 2,705,319 45.48% 7,274,555 8,362,848 982,065 13.31% $ 13,106,828 $ 17,016,674 $ 3,687,384 27.66% ENTERPRISE FUNDS CONVENTION CENTER/TOPA $ 13,422,716 $ 13,287,239 $ 14,160,053 $ 737,3375.49% WATER OPERATIONS 19,329,810 18,606,024 19,155,070 (174,740) -0.90% SEWER OPERATIONS 28,271,930 28,349,364 28,694,036 422,106 1.49% STORMWATER 7,220,000 6,923,660 7,905,000 685,000 9.49% SANITATION 6,639,049 6,985,090 7,055,545 416,496 6.27% PARKING 19,586,828 20,805,501 20,161,582 574,754 2.93% TOTAL ENTERPRISE FUNDS $ 94,470,333 $ 94,956,878 $ 97,131,286 $ 2,660,953 2.82% ITOTAL GF,DEBT, RDA,ENTERPRISE I $262,215,583 I $263,039,528 I $276,710,733 I $ 14,495,150 I 5'53%1 INTERNAL SERVlCEFUNDS* INFORMATION TECHNOLOGY $ 10,502,542 $ 10,302,472 $ 11,003,795 $ 501,253 4.77% RISK MANAGEMENT 14,010,148 13,001,738 14,101,455 91,307 0.65% CENTRAL SERVICES 733,834 697,229 738,003 4,169 0.57% PROPERTY MANAGEMENT 6,735,213 6,881,822 6,685,950 (49,263) -0.73% FLEET MANAGEMENT 5,448,031 4,984,376 5,366,265 (81,766) -1.50% TOTAL INTERNAL SERVICE FUNDS $ 37,429,768 $ 35,867,637 $ 37,895,468 $ 465,7001.24% Presented for informational purposes only; costs have already been allocated within the GF and Enter )rise Fund Depts.