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RESOLUTION 92-20603 . RESOLUTION NO. 92-20603 A RESOLUTION ADOPTING THE AD VALOREM MILLAGE OF 9 . 302 MILLS FOR GENERAL OPERATING PURPOSES WHICH IS 3. 52% LESSER THAN THE CALCULATED "ROLLED-BACK" RATE OF 9 . 642 ; AND 2 . 545 MILLS FOR DEBT SERVICE FOR THE CITY OF MIAMI BEACH, FLORIDA, FOR FISCAL YEAR 1992/93 . WHEREAS, Florida Statutes 200. 065 prescribes the method for taxing authorities to establish millage rates and adopt fiscal budgets; and, WHEREAS, the first public hearing to consider the proposed millage rates and budget was held on September 10, 1992 ; and, WHEREAS, the City Commission of the City of Miami Beach adopted tentative millage rates and budgets for fiscal year 1992/93 on September 10, 1992 ; and, WHEREAS, the City of Miami Beach has complied with all other requirements prescribed by Florida Statutes 200. 065. NOW THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that, pursuant to Florida Statutes 200. 065 there is hereby, levied a tax for the Fiscal Year 1992/93 , on all taxable and non-exempt real and personal property located within the corporate limits of the City of Miami Beach, Florida, as follows: (a) For the purpose of operating the government of the City, the rate assigned amounts to 9 . 302 mills. Also included are appropriate reserves and contingencies, which are not limited to reserves for tax discounts and abatements of uncollected taxes. The millage rate herein reflected is 3 . 52% lesser than the calculated "rolled-back" rate of 9 . 642 . (b) For the purpose of providing payment on the principal and interest portions of the General Obligation Bond Debt outstanding, the rate assigned amounts to 2 . 545 mills. PASSED and ADOPTED this 23th day !►f September, 1' •2 . - --,MA4OR 14 Attest by: 11R ACkAk a \[ --e'''-lw"-- City Clerk Form proved: A0°' aw‘i----f-e-- 1 ' , #/ fji, City Attorney 1 L:me 1 CITY OF MIAMI BEACH (!:;1 CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 5N -9 DATE: September 23 , 1992 TO: Mayor Seymour Gelber and Members of the City Commission FROM: Roger M. Carlt. ; 40, City Manager P SUBJECT: ADOPTING: 1) AD VALOREM OPERATING MILLAGE RATE OF 9.302 MILLS WHICH IS 3.52% LESSER THAN THE ROLLED BACK RATE OF 9.642 MILLS; 2) THE DEBT SERVICE MILLAGE RATE OF 2.545 MILLS; AND 3) BUDGETS FOR FY 1992/93 RECOMMENDATION: The Administration recommends that the City Commission adopt the attached resolutions which sets the following: 1) Adopted millage rates for FY 1992/93 General Operating 9 . 302 mills ( 9. 743 last year) Debt Service 2 . 545 mills ( 2 . 200 last year) Total 11.847 mills (11. 943 last year) The tentatively adopted millage rate of 9 . 302 mills is 3 . 52% lesser than the "rolled back" rate of 9 . 642 mills. 2) Adopt General Fund budget of $87, 776, 860 (including Debt Service) for FY 1992/93 . Also included, are budgets for the Enterprise ($41,710, 741) and Internal Service ($14 , 387 , 831) Funds. PROCEDURE: Florida Statutes 200. 065, requires that at the conclusion of the second public hearing on the tentatively adopted millage rate and budget, the City Commission proceed in the following specific manner: 1. Adopt an Ad valorem millage rate for FY 1992/93 operating purposes. This is accomplished by adopting a resolution that includes the percent increase or decrease over the "rolled back" rate and the required Debt Service millage rate. This resolution must be read aloud, in its entirety, prior to adoption. 2 . Adopt an operating budget for FY 1992/93 . This is accomplished by adopting the attached companion resolution. Also included, are budgets for the Enterprise and Internal Service Funds. 1 AGENDA ITEM DATE �� September 23 , 1992 Page - 2 - DISCUSSION: On September 10, 1992 , the City Commission adopted a tentative millage rate and budget for FY 1992/93 after a public hearing. This action is required prior to a second public hearing scheduled for September 23 , 1992 . During the first public hearing held prior to the adoption of the tentative millage rate and budget, requests were made by members of the public, employees, City boards and members of the Commission for additional information and considerations. The following information responds to those requests: A. BUDGET ADVISORY COMMITTEE (BAC) The BAC's report on the millage rates and proposed budget for FY 1992/93 was presented to the Commission on September 10, 1992 . This report was supportive of the initiatives proposed for returning the City to fiscal health. Detailed in BAC's report was support for the various elements of the budget including downsizing, wage and pension reform, fee increases, and shifts in service levels. The Administration recognizes and appreciates the many hours of dedicated community service by members of the BAC and is encouraged by their support of the budget. As previously stated, the Administration will continue to work closely with the BAC. B. RECREATION, CULTURE AND PARKS The Administration shares the concerns expressed regarding the condition of parks, recreational facilities and programs. While many of these issues have been addressed in the tentatively adopted budget, it is the Administration's firm commitment to develop and propose projects and programs that will make our citizens and visitors proud by putting the sparkle back in the parks and public areas such as road medians. However, in order to accomplish this, we must ensure that the needs of our community have been correctly identified and prioritized in a manner in which the funds are utilized. To achieve this, the search process for the new Director of Recreation, Culture and Parks will be completed in the next 45 days. This process will ensure that the benefits from our limited resources would be maximized and that the best possible professional as well as policy judgement is applied. Consistent with this approach, the Administration is proposing the following steps to address and respond to these concerns: 1. The top priority is to recruit a Director for the new Recreation, Culture and Parks Department that will be sensitive to the needs and requirements of our community. The resumes are due by September 21, 1992 and a screening committee will be established, including members of the Parks and Recreation Advisory Board, as well as users of the system. The initial focus for the new Director will be the development of a close working relationship with our various parks, culture and recreation boards and users to develop a prioritized list of needs. A key component of this analysis will be a review of the Transition Team's Subcommittee on the Quality of Life report on Parks and Recreation. 2 September 23 , 1992 Page - 3 - 2 . The funding to begin the process of revitalizing the parks system will be set aside through an increased allocation for the Recreation, Culture and Parks Department of $100, 000 from anticipated increases in interest earnings resulting from recent changes to the City's investment policy. An additional supplement of $50, 000 for recreational programming from the proposed Housing Authority support for programs related to their clients will be provided. The total additional funding available would be $150, 000. This funding would be released after the prioritized list of needs have been approved by the City Commission. 3 . The elimination of seven (7) positions in the Parks Maintenance division will be delayed up to 90 days to assist in the clean-up and restoration efforts of our parks. This delay is not expected to have any impact on the budget since all uninsured costs are expected to be fully reimbursed through grants funded by the Federal Emergency Management Agency (FEMA) . 4 . Community Center - Senior Dances The department is currently reviewing the operational structure of the community centers and will be presenting recommendations for restructuring programs and fees. Monies made available from this process could be reallocated to youth oriented programs. 5. If the one percent (1%) increase in Resort Tax is successful, a new source of funding would be available to address "Quality of Life" issues, such as landscaping, flower beds, etc. These proposed program changes aimed at improving the level of services would have no impact on the millage level necessary to support the tentatively adopted budget for FY 92/93 . The staffing reductions proposed will be made, if necessary, subsequent to a plan approved by the City Commission, at a later date. C. BUILDING MAINTENANCE Following Hurricane Andrew, the damage survey indicates that many of our public facilities are in need of repair. In order to accomplish this, it is proposed that of the seven (7) positions scheduled for elimination, those positions directly related to the repair process be delayed for up to ninety (90) days so that such repairs may be implemented. Please be reminded, however, that the proposed reductions in the Building Maintenance operations are directly related to the elimination of in-kind services that were being provided to special events and the privatization of the City's bus bench program. These reductions are still scheduled for implementation and would be made at the appropriate time. This delay is not expected to have any impact on the proposed budget since all uninsured costs associated with these repairs are expected to be fully reimbursed by FEMA. D. CODE ENFORCEMENT The FY 92/93 Budget provides for an increase of two (2) Code Enforcement/Compliance Officers and the income from the Housing Authority includes one (1) Code Enforcement/Compliance Officer that would be dedicated to North Beach area. The addition of three (3) Code Enforcement Officers will result in an increase from 9 to 12 positions (33 . 3%) available for code compliance function. 3 September 23 , 1992 Page - 4 - E. PRIVATIZATION The cost-benefits of privatization for City services has always and will continue to be a matter for debate. Throughout the process for privatization, the overriding concern for the City has to be the effective delivery of those services privatized in relation to the cost incurred. During the past, the City has, in varying degrees, privatized certain functions. These functions include: metered parking coin collection, golf courses, janitorial and custodial services for public facilities, street sweeping, garbage collection and disposal, the Miami Beach Convention Center and Theater of the Performing Arts. Privatization efforts considered for FY 1992/92 are as follows: 1. SCHOOL CROSSING GUARDS - The initial proposal to privatize the School Crossing Guard program would have provided $36, 000 in savings. After review it was determined that equivalent savings could be achieved from an adjustment in the hours which will be fully implemented after the first week of school. 2 . BUS BENCHES - Currently construction and maintenance of bus benches is performed by Building Maintenance personnel. The program is proposed for privatization similar to the program for bus shelters. The Request for Proposal (RFP) is being developed for consideration by the City Commission. 3 . FIRE RESCUE TRANSPORTATION FILLING - On September 2 , 1992 , the City Commission authorized a one (1) year experimental program for the private billing for fire rescue transportation services provided by the City. 4 . SANITATION - The proposed budget for FY 1992/93 provides for the privatization of the remaining five (5) garbage routes being serviced by City employees; an alternative proposal for an employee/minority owned company is also under consideration. For many reasons, all directly related to the clean-up efforts following Hurricane Andrew, it is expected that this privatization effort will be delayed up to 90 days. It is expected that there will be minimal or no employee lay-offs from this proposal from the transition to private waste collection. Plans to transfer and/or re- train existing employees for positions in the new "Litter Prevention Program" or new Storm Water function are being developed. 5. BUILDING MAINTENANCE - Contrary to disinformation being spread by certain individuals, there is no proposal to further privatize building maintenance activities. F. DE-PRIVATIZATION It is acknowledged that for varying reasons, privatization may not always provide the service or responsiveness as compared to those services provided by City employees. An area where privatization is not providing the required service or responsiveness is in the "Streetsweeping" and "Litter Can" programs. 4 September 23 , 1992 Page - 5 - It is proposed that the contracts for streetsweeping and litter cans be canceled. The City will provide its own "Litter Prevention" program. Implementation of this program will be concurrent with privatization of the remaining five waste collection routes and will be delayed up to ninety (90) days, since funding for the "Litter Prevention" program is derived from the savings due to privatization of waste collection. WAGE AND PENSION REFORM: A major factor for returning the City of Miami Beach to fiscal health is downsizing and wage and pension reform. During the two (2) iegular City Commission meetings held this month, the City Commission took major steps towards achieving this goal by adopting required ordinances on first and/or second reading. Ordinances adopted on both first and second reading that will be effective on October 1, 1992 are: 1. Creation and establishment of City departments and divisions that are necessary for the implementation for the downsized organization. 2 . Creation of a two-tiered salary system for new Unclassified employees and new or revised position classification titles that are consistent with the responsibilities of a downsized organization. 3 . Creation of a bifurcated pension system that is consistent with the "Green Report" for new Unclassified employees. Ordinances scheduled for second reading on October 8, 1992 , with an effective date of October 18, 1992 are: 1. Establishment of an early retirement incentive program for eligible Unclassified employee members. 2 . Reduction of prospective pension benefits for existing Unclassified employees. 3 . Creation of a "Defined Contribution" plan for new and existing Unclassified employees with the option for new and existing Unclassified employees to select participation in either the "Defined Benefit" or "Defined Contribution" plans. The City Commission has demonstrated an extra-ordinary commitment to wage and pension reform through the process for adoption and implementation of these ordinances related to employees in the Unclassified service. The Administration is committed to ensuring that this process is continued and completed through negotiations with our various employee bargaining units. CONCLUSION: Returning the City of Miami Beach to fiscal health requires a deliberate plan of action and a difficult commitment to ensure that the plan is effectively implemented. The plan of action for the City of Miami Beach consists of a number of steps and actions that must be accomplished; these steps are: 1. Rebuilding General Fund balance; 2 . Increasing user fees to comparable levels with other jurisdictions while reducing reliance on Ad valorem taxes; 5 September 23 , 1992 Page - 6 - 3 . Initiating comparable fees with other jurisdictions; 4 . Establish self-supporting General Obligation Debt Service; 5. In three years, increase the allocation of Local Option Gas Tax fund from $350, 000 to $1, 200, 000 for capital projects; 6. In three years, increase allocation of Resort Tax fund from $700, 000 to $1, 500, 000 for tourist related projects; and, 7. Reduce expenses using the concepts of downsizing, bifurcated salaries and pension reform. This soundness of this plan was reviewed by the bond rating agencies of Moody's and Standard and Poors, as evidenced by their continued "A" rating for the City of Miami Beach. Deviation from the total commitment to fiscal health may jeopardize the bond ratings. To date, the City Commission has demonstrated an extra- ordinary commitment to the fiscal reform process. It is important for the City of Miami Beach to continue to maintain this course of action. Allowing for unplanned events (e.g. Hurricane Andrew) within the parameters of the millage rates and budgets proposed for FY 1992/93 prior to the hurricane, requires a final set of difficult decisions. At the second public hearing, your Administration believes that the adjustments referenced in this memorandum will mitigate certain difficult decisions in conjunction with the concerns expressed by the City Commission and speakers during the first public hearing. RMC: PFL:me 6 .n.cJULU l lUIN AU. 92-2U603 Adopting the Ad Valorem Millage of 9.302 Mills for general operating purposes which is 3.52% lesser than the calculated "Rolled-Back" rate of 9/642; and 2.545 mills for debt service for the City of Miami Beach, Florida, for fiscal year 1992/93.