Loading...
Resolution 2020-31428 RESOLUTION NO. 2020-31428 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL BUDGETS FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD VALOREM TAXES, ENTERPRISE, INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FOR FISCAL YEAR 2021. WHEREAS, the City Manager's total proposed Fiscal Year (FY) 2021 operating budget, net of transfers and Internal Service Funds, as amended at the September 29, 2020 City Commission meeting, is $627,147,000 including the General, General Obligation (G.O.) Debt Service, RDA Ad Valorem Taxes, Enterprise, and Special Revenue Funds, as shown in Composite Exhibit "A"; and WHEREAS, the proposed General Fund operating budget, as amended, totals $329,023,000; and WHEREAS, the proposed budgets for the Enterprise Funds, as amended, total $218,478,000; and WHEREAS, the proposed budgets for the Internal Service Funds, which are wholly supported by transfers from the General Fund, Enterprise Funds, the Redevelopment District, and Special Revenue Funds, total $107,038,000; and WHEREAS, the proposed budgets for the Special Revenue Funds, as amended, total $93,134,000; and WHEREAS, in order to utilize prior year fund balance/reserves to fund recurring costs in the FY 2021 budgets for the General Fund, Building Fund, and Convention Center Fund in accordance with the proposed FY 2021 budget balancing plans presented at the Finance and Economic Resiliency Committee Budget Briefings, the Mayor and City Commission would need to waive the City's established policy of not utilizing one-time, non-recurring revenue to fund recurring personnel, operating, and maintenance costs; and WHEREAS, Section 932.7055 of the Florida Statutes sets forth the purpose and procedures to be utilized for the appropriation and expenditures of the Police Confiscated Trust Fund; and WHEREAS, the proceeds and interest earned from the Police Confiscated Trust Fund are authorized to be used for crime prevention, safe neighborhoods, drug abuse education and prevention programs, or for other law enforcement purposes; and WHEREAS, the Chief of Police is authorized to expend these funds following a request to the City of Miami Beach Commission, and only upon appropriation to the Miami Beach Police Department by the City of Miami Beach Commission; and WHEREAS, the Chief of Police of the City of Miami Beach has submitted a written certification (attached as Exhibit "B") which states that this request complies with the provisions of Section 932.7055 of the Florida Statutes and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies; and WHEREAS, the Police Confiscation Trust Fund budgets for FY 2021 in the amount of $294,000 shall be funded from State Confiscation Funds in the amount of$164,000 and Federal Treasury and Justice Confiscation Funds in the amount of $130,000, as reflected in the attached Exhibit "B"; and WHEREAS, funds in the amount of$294,000 are available in the Police Confiscated Trust Funds; and WHEREAS, the City of Miami Beach is authorized to assess $2.00 from court costs for criminal proceedings for expenditures for Criminal Justice Education degree programs and training courses for officers and support personnel of the Miami Beach Police Department pursuant to Section 938.15 of the Florida Statutes; and WHEREAS, the Police Training and School Resources Fund is currently funded with the assessed criminal justice education expenditures for the City of Miami Beach pursuant to Section 938.15 of the Florida Statutes, in the amount of$25,000, as reflected in the attached Exhibit "C"; and WHEREAS, the Chief of Police of the City of Miami Beach has submitted a written certification (attached as Exhibit "C") which states that this request complies with the provisions of Sections 938.15 and 943.25 of the Florida Statutes and the guidelines established by the Division of Criminal Justice Standards and Training; and WHEREAS, the City of Miami Beach Police Department intends to utilize the $25,000 for those purposes as authorized pursuant to Section 938.15 of the Florida for education degree programs and training courses for officers and support personnel of the Miami Beach Police Department; and WHEREAS, Section 705.105 of the Florida Statutes sets forth the procedure for unclaimed evidence which is in the custody of the Miami Beach Police Department and permanently vests in the Miami Beach Police Department sixty (60) days after the conclusion of the criminal proceeding; and WHEREAS, $29,000 has been in the custody of the Miami Beach Police Department Property and Evidence Unit in excess of the statutory period set forth in Section 705.105 of the Florida Statutes; and WHEREAS, said funds have vested permanently in the Miami Beach Police Department, and have now been placed in the Police Unclaimed Property Account, as provided by Resolution No. 90-19931, adopted on March 7, 1990; and WHEREAS, the Miami Beach Police Department seeks to purchase those items identified in the attached Exhibit "D" with funds in the Unclaimed Property Account Fund; and WHEREAS, the Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City Commission on March 5, 1997; and WHEREAS, the mission of the CAC is to develop, coordinate, and promote the visual and performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment, and benefit of the residents of, and visitors to, the City of Miami Beach; and WHEREAS, the Mayor and City Commission adopted the Cultural Arts Master Plan on June 3, 1998, identifying the following program areas for the CAC: cultural arts grants; marketing; facilities; advocacy and planning; and revenue development; and WHEREAS, pursuant to its enabling legislation, the CAC's budget for each fiscal year shall be adopted by the Mayor and City Commission; and WHEREAS, accordingly, the CAC recommends a $1,750,000 budget allocation for FY 2021 to continue implementation of its programs; and WHEREAS, from January 6, 2020 through June 4, 2020, the Cultural Affairs staff and the CAC conducted its application and review process for its FY 2021 Cultural Arts Grant Programs; and WHEREAS, grants panelists, comprised of the CAC members, yielded 52 viable applications; and WHEREAS, the CAC, at its regular meeting on July 9, 2020, reviewed the grant panelists' recommendations and unanimously supported the recommended Cultural Arts awards totaling $847,805 for FY 2021, as more specifically identified in the "Proposed FY 2021 Funding" column in Exhibit "E," attached hereto; and WHEREAS, the City Manager has reviewed the recommended Cultural Arts awards and concurs with same; and WHEREAS, the Miami Beach Visitor and Convention Authority (MBVCA) was created pursuant to Chapter 67-930 of the Laws of Florida, and Sections 102-246 through 102-254 of the Code of the City of Miami Beach; and WHEREAS, pursuant to its enabling legislation, the MBVCA's budget for each fiscal year shall be presented to the Mayor and Commission; and WHEREAS, the MBVCA has recommended approval of the proposed work plan and budget for FY 2021, in the amount of $2,575,000, to continue implementation of its programs as shown in Exhibit "F." NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission of the City of Miami Beach, Florida hereby adopt the final budgets, as amended at the September 29, 2020 City Commission meeting, for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, Internal Service, and Special Revenue Funds for Fiscal Year 2021 as shown in Composite Exhibit "A" (Total Revenues and Expenditures by Fund and Department), Exhibit "B" (Confiscated Trust Funds), Exhibit "C" (Police Training & School Resources Fund), Exhibit "D" (Police Unclaimed Property Account), Exhibit "E" (Cultural Arts Council Grants), and Exhibit "F" (MBVCA) and waive the City's policy of not utilizing one-time, non-recurring revenue to fund recurring personnel, operating, and maintenance costs in the General Fund, Building Fund, and Convention Center Fund for FY 2021 in accordance with the proposed balancing plans presented at the Finance and Economic Resiliency Committee Budget Briefings. PASSED AND ADOPTED this 29th day of September, 2020. ATTEST: , .1‘;21------__ .' Dan Gelber, Mayor • �p =�P�^.!•a• 9�;,, APPROVED AS TO .' �:. .• 'S'''',, FORM &LANGUAGE Rafael E. Granad., ity Clerk - : t •; , , &FOR EXECUTION INCGRPGRATED! '', ...,—,•:•,:',..` Rek..,a,,f____. eff3 , (zda City Attorney Date COMPOSITE EXHIBIT A TOTAL EXPENDITURES BY FUND AND DEPARTMENT Fiscal Year 2021 G.O.DEBT SPECIAL INTERNAL FUNCTION/DEPARTMENT GENERAL SERVICE RDA ENTERPRISE REVENUES TOTALS SERVICE PUBLIC SAFETY $208,787,000 POLICE 115,167,000 Police Confiscations-Federal 130,000 Police Confiscations-State 164,000 Police Unclaimed Property 29,000 Police Training 25,000 Police Crash Report Sales 25,000 Red Light Camera 1,407,000 FIRE 91,171,000 E-91 I 669,000 CITYWIDE ACCOUNTS $ 15,660,000 CITYWIDE ACCTS 12,641,000 CITYWIDE ACCTS-Normandy Shores 111,000 CITYWIDE ACCTS-Operating Contingency 1,102,000 Transfers Info&Comm Technology Fund 300,000 PayAs-YouC»Capital 252,000 Capitol Renewal&Replacement 43,000 Parking 1,211,000 G.O.DEBT SERVICE $ 12,798,000 G.O.DEBT SERVICE 12,798,000 RDA-City TIF Transfer only $ 31,1 10,000 CITY CENTER 31,1 10,000 TOTAL-ALL FUNDS $329,023,000 $ 12,798,000 $ 31,110,000 $218,478,000 $ 93,134,000 $684,543,000 $ 107,038,000 Less Transfers )57,396,000) GRAND TOTAL-ALL FUNDS $627,147,000 FY 2021 APPROPRIATION BY FUND TYPE $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 _- $50,000,000 11111111111111 TOTAL•ALL FUNDS •General Fund Enterprise Fund •Internal Svcs Fund ■Debt Service Special Revenues e RDA COMPOSITE EXHIBIT A TOTAL EXPENDITURES BY FUND AND DEPARTMENT Fiscal Year 2021 G.O.DEBT SPECIAL INTERNAL FUNCTION/DEPARTMENT GENERAL SERVICE RDA ENTERPRISE REVENUES TOTALS SERVICE MAYOR&COMMISSION S 2,517,000 MAYOR&COMMISSION $ 2,517,000 ADMINISTRATIVE SUPPORT SERVICES $ 29,471,000 CITY MANAGER 4,798,000 MARKETING&COMMUNICATIONS 2,180,000 MANAGEMENT AND BUDGET 1,466,000 INSPECTOR GENERAL 1,459,000 ORG DEV&PERFORMANCE INITIATIVES 1,018,000 Education Compact 350,000 FINANCE 6,294,000 PROCUREMENT 2,699,000 INFORMATION TECHNOLOGY 17,652,000 IT Tech 300,000 HUMAN RESOURCES/LABOR RELATIONS 2,794,000 Risk Management 22,455,000 Medical&Dental Insurance 40,258,000 CRY CLERK 1,829,000 Central Services 1,042,000 CITY ATTORNEY 5,743,000 ECONOMIC DEV.&CULTURAL ARTS $ 131,253,000 ECONOMIC DEVELOPMENT ECONOMIC DEVELOPMENT 1,108,000 HOUSING&COMM.SERVICES 3,489,000 Residential Housing 813,000 BUILDING 16,596,000 ENVIRONMENT&SUSTAINABILITY 1,152,000 Tree Preservation 105,000 Commemorative Tree Trust Fund 3,000 Sustainability 590,000 Beach Renourishment 1,500,000 Beachfront Concession Initiatives 44,000 PLANNING 5,192,000 CULTURAL ARTS TOURISM&CULTURE 3,162,000 Convention Center 26,318,000 Resort Tax 69,330,000 Tourism&Hospitality Scholarships 80,000 Art in Public Places 21,000 Cultural Arts Council 1,750,000 OPERATIONS $252,947,000 CODE COMPLIANCE 6,456,000 PARKS&RECREATION 34,016,000 Adopt-A-Bench 20,000 PROPERTY MANAGEMENT 2,001,000 10,956,000 Normandy Shores 249,000 Biscayne Point 221,000 Allison Island 221,000 Biscayne Beach 221,000 PUBLIC WORKS 13,567,000 Sanitation 22,124,000 Sewer 49,226,000 Storm Water 31,159,000 Water 35,497,000 Waste Haulers 106,000 CAPITAL IMPROVEMENT PROJECTS 5,544,000 PARKING 37,558,000 5th&Alton Garage 643,000 7th Street Garage 2,028,000 FLEET MANAGEMENT 13,216,000 TRANSPORTATION 7,851,000 People's Transportation Plan 4,239,000 COMPOSITE EXHIBIT A TOTAL REVENUE SUMMARY BY FUND AND MAJOR CATEGORY Fiscal Year 2021 G.O.DEBT SPECIAL INTERNAL FUNCTION/DEPARTMENT GENERAL SERVICE RDA ENTERPRISE REVENUES TOTALS SERVICE GENERAL OPERATING REVENUES Ad Valorem Taxes $ 193,218,000 Ad Valorem Capital Renewal&Rept 807,000 Ad Valorem Pay-As-Vou.Capital 2,592,000 Ad Valorem Normandy Shores 18,000 Other Taxes 24,083,000 Licenses and Permits 13,925,000 Intergovernmental 11,254,000 Charges for Services 13,061,000 Fines 8 Forfeits 1,069,000 Interest Earnings 2,769,000 Rents 8 Leases 5,954,000 Miscellaneous 15,125,000 Resort Tax Contribution 18,639,000 Other Non-Operating Revenue 16,910,000 Use of General Fund Reserves 9,599,000 FUND TOTAL $329,023,000 $329,023,000 O.O.DEBT SERVICE FUND Ad Valorem Taxes 12,798,000 FUND TOTAL $ 12,798,000 $ 12,798,000 RDA FUND-CITY TIF Only AD VALOREM TAXES Property Taxes-RDA City Center(net) 31,110,000 FUND TOTAL $ 31,110,000 $ 31,110,000 ENTERPRISE FUNDS Budding 16,596,000 Convention Center 26,318,000 Parking 37,558,000 Sanitation 22,124,000 Sewer Operations 49,226,000 Storm Water Operations 31,159,000 Water Operations 35,497,000 FUND TOTAL $218,478,000 $218,478,000 INTERNAL SERVICE FUNDS Central Services 1,042,000 Fleet Management 13,216,000 Information Technology 17,652,000 Office of Inspector General 1,459,000 Property Management 10,956,000 Risk Management 22,455,000 Medical 8 Dental Insurance 40,258,000 FUND TOTAL $107,038,000 SPECIAL REVENUE FUNDS Education Compact 350,000 Resort Tax 69,330,000 Tourism 8 Hospitably Scholarships 80,000 Cultural Arts Council 1,750,000 Sustainability 590,000 Waste Haulers 106,000 Normandy Shores 249,000 Biscayne Point 221,000 Allison Island 221,000 Biscayne Beach 221,000 5th 6 Alton Garage 643,000 7th St.Garage 2,028,000 Transportation 7,851,000 Tree Preservation 105,000 Commemorative Tree Trust Fund 3,000 People's Transportation Plan 4,239,000 Police Confiscations-Federal 130,000 Police Confiscations•State 164,000 Police Crash Report Sales 25,000 Police Unclaimed Property 29,000 Police Training 25,000 Red Light Camera 1,407,000 Residential Housing 813,000 E-911 669,000 Information&Technology Tech 300,000 Art in Public Places 21,000 Beach Renourishment 1,500,000 Beochfront Concession Initiatives 44,000 Adop6A-Bench 20,000 FUND TOTAL $ 93,134,000 $ 93,134,000 TOTAL ALL FUNDS $329,023,000 $ 12,798,000 $ 31,110,000 $218,478,000 $ 93,134,000 $684,543,000 $107,038,000 Less Transfers 157,396,000) GRAND TOTAL-ALL FUNDS $627,147,000 EXHIBIT B CERTIFICATION I, Richard Cements, Chief of Police, City of Miami Beach, do hereby certify that the aforementioned proposed request for expenditures from the City of Miami Beach Police Confiscation Trust Fund, for the FY 2020/21 fiscal year providing funds for expenditures, complies with the provisions of Section 932.7055(4) (a), Florida Statutes, and the Guide to Equitable Sharing of Federally Forfeited Property for Law Enforcement Agencies. Cr2 '~* tA Richard Cements Chief of Police Miami Beach Police Department 111. (2A2 Date EXHIBIT B Miami Beach Police Department Confiscations - Federal & State Funds FY 2021 Proposed Budget Federal Funds (603): FY 2021 Proposed Budget Organizational Development Travel & Off-site Testing $ 70,000 Bulletproof Vest Partnership 60,000 Total Federal Funds (603) $ 130,000 State Funds46Q7): FY 2021 Proposed Budget Costs connected with the prosecution/processing of forfeitures $ 1 8,000 Crime Prevention initiatives & School Liaison Projects 15,000 AR Rifle Program/initiative- City's match for reimbursement of rifles at $500 15,000 Drug abuse treatment, drug and crime prevention education, non-profit 32,500 community based programs Departmental training 83,500 Total State Funds (607) $ 164,000 Total Federal & State Funds $ 294,000 EXHIBIT C CERTIFICATION f, Richard Cements, Chief of Police, City of Miami Beach, do hereby certify that the aforementioned proposed request for expenditures from the City of Miami Beach Police Training & School Resources Fund, for the FY 2020/21 fiscal year, to provide funds for the education of police personnel at various schools, conferences, and workshops and for the purchase of training and operational supplies, is in accordance with the guidelines established by the Division of Criminal Justice Standards and Training, as provided by Section 938.15 and 943.25, Florida Statutes. Richard Clements Chief of Police Miami Beach Police Department cilt9 J't4) Date EXHIBIT C Miami Beach Police Department Police Training and School Resources Fund FY 2021 Proposed Budget Police Training and School Resources Funds (608): FY 2021 Proposed Budget Education of police personnel at various schools, conferences, and workshops, as well $ 25,000 as training and operational supplies Total Funds $ 25,000 EXHIBIT D Miami Beach Police Department Unclaimed Property Account FY 2021 Proposed Budget Special Revenue Funds: FY 2021 Proposed Budget Community Activities $ 16,000 Law Enforcement Equipment and Supplies 8,000 Facilities Maintenance 5,000 Total Funds $ 29,000 EXHIBIT E Cultural Arts Council Grant Recommendations FY 2021 Miami Beach Cultural Anchors Recommended FY 2021 Funding Florida International University-Miami Beach Urban Studios $20,960 Florida International University-Wolfsonian $26,227 Florida International University-Jewish Museum of Florida $20,907 Friends of the Bass Museum,Inc. $26,600 Friends of the Miami-Dade Public Library,Inc. $7,617 Miami Beach Film Society(Miami Beach Cinematheque) $17,133 Miami Beach Garden Conservancy $18,550 Miami City Ballet $26,413 Miami Design Preservation League $21,280 Miami New Drama $22,533 New World Symphony $27,129 O'Cinema(Living Arts Trust) $21,280 Oolite Arts $25,293 The Holocaust Memorial Committee,Inc. $21,760 The Rhythm Foundation,Inc. $22,933 University of Wynwood $21,867 CULTURAL ANCHORS SUBTOTAL $348,482 Miami Beach Cultural Presenters Recommended FY 2021 Funding FILM Center for the Advancement of Jewish Education(CAJE) $16,289 lnffinito Art&Cultural Foundation,Inc. (Brazilian Film Festival) $15,931 Italian Film Festival(Cinema Italy) $15,573 Miami Gay and Lesbian Film Festival,Inc. $16,468 Miami Short Film Festival $7,697 SUBTOTAL $71,958 MULTI-DISCIPLINARY Edge Zones $10,874 FUNDARTE,Inc. $15,931 Miami Light Project $7,876 National Foundation for the Advancement in the Arts,Inc.(Young Arts) $17,005 South Florida Composer's Alliance $15,036 SUBTOTAL $66,722 THEATER Fantasy Theater Factory $16,110 SUBTOTAL $16,110 VISUAL ARTS Interactive Initiative $14,678 SUBTOTAL $14,678 OPERA Florida Grand Opera $15,931 The Opera Atelier $14,284 SUBTOTAL $30,215 EXHIBIT E Cultural Arts Council Grant Recommendations FY 2021 DANCE Ballet Flamenco La Rosa,Inc. $14,857 Cuban Classical Ballet of Miami Corp. $15,036 Miami Hispanic Ballet Corp. $15,215 Peter London Global Dance Company,Inc. $15,394 Siempre Flamenco,Inc. $15,036 The Dance NOW! Ensemble,Inc. $16,110 SUBTOTAL $91,648 MUSIC Buskerfest Miami $15,036 Community Arts and Culture,Inc. $15,394 Global Arts Project $15,752 Great Miami Youth Symphony of Dade County $1,128 Miami Chamber Music Society $15,573 Miami Children's Chorus,Inc. $9,957 Miami Gay Men's Chorus $2,694 Miami Music Festival $16,647 Nu Deco Ensemble,Inc. $16,826 Orchestra Miami $15,752 Patrons of Exceptional Artists,Inc. $15,215 Power Access,Inc. $15,752 Seraphic Fire $16,289 South Beach Chamber Ensemble,Inc. $12,002 South Florida Symphony Orchestra $7,686 Young Musicians Unite $16,289 SUBTOTAL $207,992 CULTURAL PRESENTERS SUBTOTAL $499,323 TOTAL $847,805 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET ADMINISTRATION RECOMMENDATION Adopt the Budget ANALYSIS BACKGROUND The Miami Beach Visitor and Convention Authority (MBVCA) was created and exists pursuant to Chapter 67-930 of the Laws of Florida and Sections 102-246 through and including 102-254 of the Code of the City of Miami Beach (CMB). According to Sec. 102-251,the MBVCA is to take "all necessary and proper action to promote the tourist industry for the city, including but not restricted to causing expert studies to be made, promotional programs, the recommendations and development of tourist attractions and facilities within the city,and to carry out programs of information, special events, convention sales and marketing, advertising designed to attract tourists, visitors and other interested persons."The MBVCA also has the duty of making all necessary rules and regulations for the efficient operations of the authority. The MBVCA is a seven-member authority. Each member is appointed by the City of Miami Beach Commission, with the goal of encouraging, developing and promoting the image of Miami Beach locally, nationally and internationally as a vibrant community and tourist destination. To this end, the MBVCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships. The MBVCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourism destinations. A budget revenue projection is provided to the MBVCA by the City of Miami Beach Budget Office annually based on 5% of the 2% Resort Tax, less 4%for administrative allowance. On an annual basis the MBVCA must provide the City with a budget, on City forms, based on this projection as outlined in Sec. 102-252, before October 1st. The MBVCA normally budgets funding below the City's projection,as the collection of funds can differ substantially from projection, such as the result of unanticipated problems like an airline strike, terrorism, economic issues or storms. In 2008, revenue collections came in $48,000 underestimated projection, and in 2001 the revenue collection was down approximately$300,000 from projection. When and if there are unallocated funds remaining at the end of the budget year,those funds are either rolled over and allocated in the next budget year, or retained in MBVCA accounts for future reserves, endowment funding; to address any funding reductions in future years. In 2001, by statute,the MBVCA began investing in the creation of an endowment fund. The MBVCA is required by law to maintain reserve bank accounts in approved public depositories,with sufficient reserves to cover one year of funding,which it does. Reserves are maintained to pay grant recipients(contracted) for the previous program funding cycle, and to ensure that sufficient funds can be invested to stimulate tourism in the future. The level of reserves was modified in 2011 in order to maximize the value and impact of tourism directed funds. The MBVCA submits an annual Program of Work to the CMB as required by Sec. 102-281. FY 2019/2020 REVIEW/TOURISM ADVANCEMENT PROGRAM(TAP) The MBVCA Tourism Advancement Program (TAP) was established to promote Miami Beach as a sophisticated tourist destination by increasing the number of visitors; through enhancement of visitors' experiences; through the allocation of funds granted to events or programs that bring visitors to the CMB and strengthen the CMB brand. In fiscal year 2019/2020, the MBVCA funded the TAP in seven categories, including: Development Opportunities, Film Incentive, Major One Time Special Event, Special Events Recurring, Special Projects, Special Projects Recurring, and Tourism Partnerships. 1 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET A total of$1,085,000 was originally awarded in FY 2019/2020, compared to $1,028,575 in FY 2018/2019. Due to the COVID-19 global pandemic, the total awarded decreased to $732,519. The decrease was due to the cancellation of several events between the months of March and September 2020 along with an overall reduction to all outstanding grants, due to the decrease in the MBVCA's budget. Grants funded in partnership with the CMB are critical, branded tourism-related programs, such as the Food Network&Cooking Channel South Beach Wine+Food Festival and UNTITLED,Art in Miami Beach; both examples of events whose beginnings in Miami Beach stem from grants provided by the MBVCA;events that could easily be recruited by other destinations. FY 2020/2021 TOURISM ADVANCEMENT PROGRAM The MBVCA strategically focuses its funding to maximize tourism and brand;to improve Miami Beach by focusing on events and projects that generate significant publicity; strengthen brand and increase tourism (generating critical resort taxes for Miami Beach).The Board pays significant attention to marquee events. Review process: For over a decade, the MBVCA has used a multi-level review process for its grant program and the process is reviewed annually. The process includes a mandatory pre-proposal staff conference regarding MBVCA policies and procedures and TAP. During the interview, MBVCA administration advises each potential applicant regarding the eligibility and appropriateness of the proposed project and determines the grant category best suited to the potential applicant. Once it is determined that the project is eligible,the MBVCA administration provides further detail, including required attachments, relevant meeting dates, deadlines, and access to the online Application Portal. The applicant is provided with an overview of the application submission process. All applications are submitted through the online Application Portal in a multi-step format.All grant formats and policies are available on the MBVCA website. By Florida law, all MBVCA meetings are advertised and open to the public;all records are public records. Annually,the MBVCA Board reviews and refines grant guidelines with respect to efficacy and effectiveness. In FY 2012/2013,the MBVCA implemented changes to its funding caps and declining scale.The new declining scale and funding caps allowed the MBVCA to diversify their funding into other areas and initiatives as requested by the City Administration and/or the Board. In FY 2019/2020 the MBVCA voted to keep the criteria for the Major One Time Special Event and Special Events Recurring grant categories at a total of 275 hotel room nights, along with 1,000,000 in contracted media impressions, and 1,000,000 in contracted viewership. The Special Projects and Special Projects Recurring hotel room night; media impressions,and viewership requirements remained at 2,000; 150,000,000, and 15,000,000, respectively. Although the criteria remainder the same, the Board voted to allow for hotel agreements to be submitted in place of fully executed contracts,to meet the hotel requirement, as long as they were entered into by the Applicant Organization.This allowed for groups to assume less risk when entering agreements and also to encourage new events to apply. The Board also allowed applicants to submit their reviews and/or audits using Generally Accepted Accounting Principles (GAAP), as well as, prepared in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA, for tax basis financial statements. The grant criteria guidelines were reviewed for clarity and accuracy, requiring fully executed agreements and contracts to be submitted prior to proceeding with the next step in the application process. The application requires hotel room block agreements;media contracts,and/or broadcast/cable/TV contracts in order to proceed with the grant submission. The criteria must be confirmed before and after funding is awarded. Grant applicants must meet two of the three criteria in place for each of the MBVCA grant categories. MBVCA grants are paid upon 2 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET performance;therefore,grantees are required to provide post-performance reports in the form of reservation or pick-up reports from Miami Beach hotels; impressions reports garnered from the organization's PR Firm, or accompanied by third party confirmation from a media monitoring/press clipping service such as BurrellesLuce to prove media impressions,and a broadcast post-performance report from a third party reporting delivery of Adult 18+ and Households (HH) in Thousands (000) from Nielsen, Over The Top (OTT), or Comscore/Rentrak for viewership. The MBVCA guidelines and application process place emphasis on defining and measuring the economic impact of each event, as well as, considering the impact and value of marketing, publicity, and television origination/viewership. Questions concerning the economic impact of the program, including requiring an explanation of various aspects of the marketing plan, and how the numbers of hotel room nights are calculated and where they are contracted, are also required as part of the application. Standardized recap sheets and point systems have been developed to give each applicant a score that rates potential success. In 2020/2021, specific point systems will be developed and implemented for each of the grant categories. The redesign will allow for a better alignment with the minimum requirements in place within each grant category,focusing the scoring on the 3 grant criteria in place, of which an applicant must meet 2. Using this tool, the MBVCA can better evaluate the applicant's long-term commitment to the community; commitment to brand enhancement; value to tourism, and economic impact. The MBVCA Board votes on each specific and individual grant, and evaluates the grant request, funds available, and possible extenuating circumstances after a formal presentation is made by the grant applicant to the Board. A question and answer period follow, with further discussion as needed. RECURRING PROJECTS: The MBVCA has a current policy in place to fund recurring projects on a declining scale. The declining scale encourages recurring events to recruit corporate and private sponsorship and; therefore, not solely rely on MBVCA funds as a means of sustaining the event year after year. The award category establishes funding caps for recurring events, funding that can be reduced based on the maximum request for the specific grant category. Below is the current scale, implemented in FY 2012/2013,and applicable to both non and for-profit agencies.The declining scale will remain in place for FY 2020/2021. Year 1 Initial Grant Award Year 2 No more than 80%of Eligible Request Year 3 No more than 70%of Eligible Request Year 4 No more than 60% of Eligible Request Year 5 New Cycle Begins CATEGORIES: TAP funds are currently awarded in seven categories, including: Development Opportunities, Film Incentive, Initiatives, Major One Time Special Event, Special Events Recurring, Special Projects, Special Projects Recurring, and Tourism Partnerships.The MBVCA has developed pre-eligibility criteria for grants within these categories.The criteria allow staff to determine eligibility and the appropriate grant category. Applicants must meet two of three of the criteria noted. 3 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET Grant Category Contracted Hotel Contracted Media Contracted Television and/or Cable Room Nights Impressions Broadcast Development 70 200,000 500,000 Opportunities Film Incentive* 200 N/A N/A Major One Time Special 200 1,000,000 1,000,000 Event Special Events Recurring 200 1,000,000 1,000,000 Special Projects 1,500 100,000,000 10,000,000 Special Projects Recurring 1,500 100,000,000 10,000,000 Tourism Partnerships 175 500,000 5,000 (visitors/attendees/participants) *Specific requirements are in place for the Film Incentive Grant Program. Budget Budget(TAP)FY 2020/2021: The MBVCA has budgeted$1,198,900 for FY 2020/2021 for its Tourism Advancement Program which reflects 47% of the total budget. This grant funding reflects a decrease of$746,100 from FY 2019/2020. This decrease is due to the reduction in the projected resort tax collections for FY 2020/2021 due to the current global pandemic and the MBVCA 50% reduction at the request of the CMB. As a result,grant funding is expected to be reduced. • The Tourism Partnerships category is budgeted at $81,000, reflecting 3% of the total budget for 2020/2021. The category currently includes applicants at the maximum request cap of$30,000. Three applications are anticipated to be received. • The Major One Time Special Event category, representing 7%of the total budget, is budgeted at$180,000 for 2020/2021, The MBVCA expects four to five new events to apply at a maximum request of$45,000 each.The MBVCA works tirelessly to stimulate and recruit new events and is willing and prepared to fund valuable tourism and brand related events. In fact,the MBVCA works with all partners,city leadership and media to solicit appropriate new projects. New applicants are expected to include FIBEGA, Slamdance Film Festival,and two to three additional projects. • The Special Events Recurring category,reflecting 19%of the total budget,has been calculated at$500,400 for FY 2020/2021 based on the established declining scale and the number of applicants anticipated to return. • The Special Projects category is budgeted at$72,000 with one applicant expected at the maximum request of$90,000 representing 3%of the total budget. • The Special Projects Recurring category is budgeted at $229,500 and represents 9%of the total budget. Anticipated applicants include the Orange Bowl Marketing Campaign; Lifetime Miami Marathon, Half Marathon, and Tropical 5K; the Food Network & Cooking Channel South Beach Wine & Food Festival; Swim Fashion Week - Paraiso Miami Beach; and Winter Music Conference. These events, recruited and sustained by the MBVCA, are all marquee events and annually fill the City's hotel rooms. • The Development Opportunities category is budgeted at $36,000 for FY 2020/2021, representing 1% of the budget; in anticipation of 2 applicants at the maximum request of$30,000 each. • The Film Incentive category is budgeted at$100,000 for FY 2020/2021 representing 1%of the budget. Partnerships • The Cultural Tourism Program will be merged with Tourism Enrichment and has been budgeted at $105,000 for FY 2020/2021., representing 4% of the budget. This revised program will allow for 4 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET partnerships with the Miami Beach Cultural Arts Council and other institutions to generate and attract between 1-3 citywide projects and initiatives that highlight the entire destination. Another project is the Miami Beach Visual Memoirs Project that was started in 2011/2012 to record, catalogue and warehouse personal and eyewitness accounts of the history of the City of Miami Beach. The deliverables included a recorded detailed history of Miami Beach through personal interviews, creating collateral materials about the history of Miami Beach and identifying comprehensive exhibit concepts that can be implemented to execute a comprehensive visual memoir library and promotional campaign. The Miami Design Preservation League(MDPL)in partnership with Close-Up Productions has conducted a total of 130 interviews to date. In previous years, components have included an exhibit that was open to the public daily and free of charge, initially from mid-October through late November 2012, re-opening during Art Deco Weekend 2013. The documentary played on a loop in the lecture hall portion of the Art Deco Welcome Center. An educational component was also developed that included a video and teacher guide for Miami Beach Middle Schools and used as a model for other educational videos to be used with Elementary and High School students. Videos were prepared for archival as part of a statewide university consortium. A digital promotional portal showcasing the video archive with links highlighting other Miami Beach historical resources and housed at institutions in Miami Beach and Miami Dade County,were also developed.The"Windows on Miami Beach" portal generated local interest and support through school contests and online displays created by students and portal partners; daily and weekly calendars of partners' events; social media linkages that drove people to the new website and its resources;easier access to the interviews,educational videos and curricula produced by the Visual Memoirs Project; patronization of museums and historic sites on Miami Beach, and promoted Miami Beach as a tourist destination through historic and artistic connections. Additionally,the project developed a video on Barbara Baer Capitman,"Barbara's Crusade",that premiered during Art Deco 2017.The project's website, miamibeachvisualmemoirs.com,was rebuilt for new and readily expandable Internet access. The project stored archives through FIU's Digital Archive continued to expand full-length interviews in an effort to stimulate interest in Miami Beach's history and historic venues. The social media exposure attracted nearly 500 followers on the project's Facebook page. The ON-MiamiBeach.com Portal added a separate "Learning and Teaching"section that included links to current videos and mini co-curations and videos about Miami Beach by the portal partners and students. The Project has continued to enhance its community and visitor awareness of the Portal through partner organizations' cross-promotional efforts and increased social media integration. New interviews continue to take place; thereby, augmenting the existing database. In addition, an architectural discussion was mounted at the Wolfsonian Museum during Art Deco Weekend 2018 that included leading architects discussing preservation architecture and the combining of styles within the expansion on Miami Beach. The Project has also continued to expand its distribution on cable, social media, digital libraries, and their linked websites. A YouTube channel has been launched featuring additional interviews conducted throughout FY 2018/2019. In addition,a total of 6 segments were produced using video material culled from the Visual Memoirs archive, along with an additional 10 interviews. In FY 2019/2020, the Project's mission was to continue to add interviews with interesting people and also enter an intensive phase of promoting the archive and video mini features to an even wider range of tourists, documentary makers, journalists, scholars and history buffs. The organizers continued to explore strategic partnerships with other institutions with a shared interest in Miami Beach history, such as a partnership with Florida International University's Digital Library. This resulted in a link with the National Digital Public Library, where usage of the archived material has increased dramatically in the past year. In addition, a program for students to produce videos incorporating interviews from the Miami Beach Visual 5 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET Memoirs(MBVM)archive was created.After several in-school presentations,the program was put on hold due to COVID-19 precautions; however, the instructor plans to make the program part of her ongoing curriculum, with plans to introduce the program on the college level in the fall. In addition, the extensive library of edited videos was used as part of the live promotional video streaming for Art Deco Weekend by the City of Miami Beach, in addition to their existing promotional outlets. An additional 4 interviews were also held as of May 2020, with an additional 2 interviews scheduled for later in the fiscal year, bringing the total number of interviews to date to 134. In 2019/2020, the MBVCA partnered with the City of Miami Beach to assist with the funding of the No Vacancy, Miami Beach project that was scheduled to take place May 7 — 17, 2020. The project is a contemporary art experience that celebrates artists, provokes critical discourse, and invites the public to experience Miami Beach's famed hotels as destination art spaces by turning hotels into temporary cultural institutions. The art was to have been exhibited throughout ten hotels in Miami Beach -lobbies, restaurants, lounges, patio areas, rooms, balconies and swimming pools may serve as the canvas. Due to the pandemic,the project was postponed until 2020/2021, where the MBVCA expects to once again partner with the City to bring the project to fruition. Initiatives The MBVCA expects to support new initiatives in FY 2020/2021. Strategic plans, goals and initiatives are developed through consultation; the result of ongoing communications with the Mayor, Commission, and City Administration. Public Relations Initiative In FY 2013/2014, the MBVCA issued a Request for Qualifications (RFQ) for a P.R. agency of record to enhance Miami Beach's image, after their initial Request for Proposals (RFP) issued in FY 2011/2012. The MBVCA selected Hill & Knowlton/SAMCOR (H+K) to support the MBVCA efforts by continuing to increase brand awareness through strategic media outreach to consumer and travel trades, major event recruitment, and business and corporate communications programs. There is an allotment of$250,000, representing 10% of the total budget,towards this effort. The current contract with H+K runs through September 30, 2020 in FY 2019/2020. Objectives include comprehensive destination marketing and communications consulting services to continue to expand public relations and marketing; an increase to the overall social media footprint through all social media handles, both MBVCA and Experience Miami Beach, and marketing of Miami Beach to international and national visitors, complimenting the efforts of the GMCVB. H+K has an extensive presence in the US and internationally. The agency's ability to network and leverage its global relationships is crucial to the growth of the'Miami Beach' brand. H+K created and distributed a total of 15 press releases and pitches during their first year as agency of record, garnering 3,416,581,560 media impressions and 12 press releases during their second year, generating 3,913,341,910 media impressions. In their third year, H+K generated 2,783,369,818 media impressions through the issuance of 12 press releases and a Harris Poll Survey that was conducted to determine why people visit Miami Beach. During their fourth year, H+K developed and released a total of 12 press releases and 1 pitch, generating a total of 1,492,734,059 media impressions,valued at$15,615,214.75. During its fifth year H+K wrote and released 12 press releases,generating 1,410,465,887 media impressions,valued at$15,638,438.52. During its sixth year, a total of 15 press releases were written and distributed, generating 1,272,729,422 impressions valued at $14,353,222.76. During their seventh year, a total of 15 press releases and 1 Audio News Release (ANR) were distributed generating 1,302,477,118 impressions valued at$1,583,728.46. During their eighth year, a total of 13 press releases were distributed,generating a total of 1,042,610,221 impressions with a value of$1,041,811.24. In their ninth year in working with the MBVCA,H+K has released a total of 9 press releases to date,generating a total of 575,786,090 media impressions, with a value of$3,019,177.30. H+K will continue to work with the MBVCA, in collaboration with the GMCVB and City of Miami Beach, to ensure the development and delivery of a cohesive 6 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET message and marketing campaign as part of luring tourists back to Miami Beach, post-COVID-19,and into the next fiscal year. Destination Marketing The Destination Marketing allocation reflects a 15%of the total budget for FY 2020/2021. This allocation provides for the additional placement of stories and press releases on the PR Newswire as well as the continuation of our Blogger Program, FAM trips, and online sweepstakes to promote increased activity on our social media channels. Projects will include the continuation of the Forbes Travel Guide Online Hospitality Training,offered free of charge to Miami Beach-based employees. The online training will allow for a larger number of employees to be trained virtually and according to their role within the organization through the availability of specific Learning Paths. A new registration platform will also allow the ease of registration through the MBVCA's website directly. The MBVCA is also expected to partner with the City of Miami Beach and the GMCVB to assist with the cost of the destination's re-branding initiative with Lewis & Lois,that will take place in FY 2020/2021. App Marketing The MBVCA wishes to continue to provide visitors with timely and relevant information about the City of Miami Beach; its public and private attractions,services, hotels, businesses, and events in order to enhance visitors' (and residents') experiences. Visitors to Miami Beach - all visitors worldwide — are increasingly using technology to navigate cities or make decisions about leisure experiences, dining, parking, entertainment and travel in general. Worldwide,technology is king. Many visitors already use the free Miami Beach Wi-Fi service, CMBWiFi,to access the information they need at select public locations around town. Since its latest version release, the Miami Beach Information (MBI) App has added new and exciting features for the end-user that include a side-swipe feature; listing the information in an A-Z format; the addition of new categories that included Shopping, Nightlife, Art & Culture, and Restaurants, and the creation of "My Miami Beach"section where users can add events, photos,and itineraries as they navigate the App.The App also features a "Deals" section that has special promotional rates or offers developed by MBVCA grantees that can be cross promoted through MBVCA grantees and special media pages such as Facebook,Twitter, and Instagram. The App has now been downloaded nearly 14,850 times (as of June 2020), across the Android and iOS platforms. Approximately half of all downloads come from European users seeking to learn about Miami Beach. Funding has not been allocated for FY 2020/2021 due to the current pandemic and the reduction to the operating budget. The MBVCA will continue to promote the use of the App through their various social media channels. In addition, virtual events and promotions will also be featured on the App. IT Development The MBVCA's preliminary review of opportunities and needs was initiated in spring 2011 in consultation with area experts, and subsequent to a public meeting sponsored by the MBVCA, as a situational analysis. The MBVCA released an RFP in January 2012 and awarded a one-year contract to Just Program LLC dba Solodev on May 22, 2012. The purpose of the RFP was to develop a Miami Beach-focused web-based digital content management system(CMS)and modifiable database to support third party mobile applications via an application programming interface (API). Currently, the API is fully functional with 252 different categories of businesses, each averaging 90 different services and amenities. Web and App developers can use these attributes to create new and exciting experiences for their end-users. Due to the budget reduction, $0 has been allocated in FY 2020/2021 towards IT development and marketing of the API/App in FY 2020/2021. The MBVCA will continue to work with City personnel to ensure the business information within the API is the most up to date. 7 EXHIBIT F MBVCA FY 2020/2021 COMMISSION MEMO AND BUDGET Research and Development The MBVCA will develop a strategic list of major events worldwide as the result of ongoing communications and consulting with all partners. We expect to investigative some of these events with the goal of the development of a new major event for the destination. Due to the reduction in the FY 2020/2021 budget,the MBVCA has not allocated funding towards this effort. They will continue to work with their PR firm of record, to compile a list of major events that could be attracted to the destination. The MBVCA will also to continue to work with local partners. Projected Cash Flow Reserve The MBVCA has budgeted $2,000 of the total budget, for cash flow reserve in FY 2020/2021. The City of Miami Beach allots resort tax payments to the MBVCA a month after its collection; therefore, as a fiscal responsibility, the MBVCA has built in a projected cash flow reserve to its budget to ensure that all grants awarded will have the necessary funds to be reimbursed upon proper request and documentation. Administration and Overhead The MBVCA's administration and benefits costs are budgeted at$432,000 for FY 2020/2021.This figure represents 17%of the total budget. The overhead allocation is budgeted at$150,000 which reflects 6%of the overall budget. The decrease from FY 2019/2020 is attributed to the reduction in costs related to office supplies,office equipment upgrades,and the elimination of cost of living and merit increases.The total administration and overhead are 23% of the total budget. Reserves A total of$1,500,000 is being transferred from reserves to supplement the FY 2020/2021 budget. CONCLUSION During their July 27, 2020 meeting, the MBVCA Board recommended the Mayor and City Commission adopt the MBVCA Budget for FY 2020/2021 in the amount of$2,575,000 as reflected in Exhibit A. 8 EXHIBIT F MIAMI BEACH VISITOR AND CONVENTION AUTHORITY FY 2020/2021 APPROVED REDUCED PROPOSED %OF PROPOSED FY 2020.2021 FY 2019.2020 FY 2019.2020 FY 2020.2021 VARIANCE BUDGET REVENUES Unrestricted Rollover $ 375,000 $ 375,000 $ - $ (375,000) -100% Reserves $ - $ - $ 1,500,000 $ 1,500,000 100% Projected Resort Tax $ 2,940,000 $ 1,906,048 $ 1,075,000 $ (1,865,000) -63% TOTAL REVENUES $ 3,315,000 $ 2,281,048 $ 2,575,000 $ (740,000) -22% EXPENDITURES Administration&Benefits $ 449,500 $ 449,500 $ 432,000 $ (17,500) 17% Operating Expenses $ 215,500 $ 200,108 $ 150,000 $ (65,500) 6% Capital $ 5,000 $ - $ (5,000) 0% Total Administration $ 670,000 $ 649,608 $ 582,000 $ (88,000) 23% GRANTS -Tourism Advancement Program Tourism Partnerships $ 90,000 5 90,000 $ 81,000 $ (9,000) 3% Major One Time Special Event $ 265,000 $ - $ 180,000 $ (85,000) 7% Special Events Recurring $ 786,000 $ 475,000 $ 500,400 $ (285,600) 19% Special Projects $ 90,000 $ 180,000 $ 72,000 $ (18,000) 3% Special Projects Recurring $ 374,000 $ 251,000 $ 229,500 $ (144,500) 9% Film Incentive $ 250,000 $ - $ 100,000 $ (150,000) 4% Development Opportunities $ 90,000 $ 150,000 $ 36,000 $ (54,000) 1% Total Tourism Adv.Program $ 1,945,000 $ 1,146,000 $ 1,198,900 $ (746,100) 47% PARTNERSHIPS Cultural Tourism $ 165,000 $ - $ - $ (165,000) 0% Tourism Enrichment $ 80,000 $ 30,000 $ 105,000 $ 25,000 4% Total $ 245,000 $ 30,000 $ 105,000 $ (140,000) 4% MARKETING/PR/TECHNOLOGY Marketing/Communications and PR $ 250,000 $ 250,000 $ 250,000 $ - 10% Destination Marketing $ 108,000 $ 108,000 $ 387,100 $ 279,100 15% APP Marketing $ 10,000 $ - $ - $ (10,000) 0% IT Development $ 30,000 $ 45,000 $ - $ (30,000) 0% Total 5 398,000 $ 403,000 $ 637,100 $ 239,100 25% OTHER Initiatives $ 50,000 $ 50,000 $ 50,000 $ - 2% R&D 5 5,000 $ 440 $ - $ (5,000) 0% Projected Cash Flow Reserve $ 2,000 5 2,000 $ 2,000 $ - 0% Total Other $ 57,000 $ 52,440 $ 52,000 $ (5,000) 2% TOTAL $ 3,315,000 $ 2,281,048 $ 2,575,000 $ (740,000) -22% UPDATED 2/27/2020 Resolutions - R7 B MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 29, 2020 5:01 p.m. Second Reading Public Hearing SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL BUDGETS FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD VALOREM TAXES, ENTERPRISE, INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FOR FISCAL YEAR 2021. RECOMMENDATION See attached Memorandum. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item, pursuant to Bond Funds? City Code Section 2-14? Yes No Strategic Connection Organizational Innovation - Ensure strong fiscal stewardship. Legislative Tracking Office of Management and Budget ATTACHMENTS: Description ❑ Memo-Final FY 2021 Operating Budgets ❑ Resolution and Attachments ❑ Ad Page 24 of 281 MAMl BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 331 39,www.miamibeachfl.gov COMMISSION MEMORANDUM TO Mayor Dan Gelber and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 29, 2020 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL BUDGETS FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD VALOREM TAXES, ENTERPRISE, INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FOR FISCAL YEAR 2021 ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution which establishes the final budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, Internal Service, and Special Revenue Funds for Fiscal Year(FY) 2021. PROCEDURE As outlined in the companion General Operating Millage Agenda Item, Section 200.065, Florida Statutes, specifies the manner in which budgets are adopted. First, the final millage rate for both the general operating and debt service is adopted, then immediately thereafter, the final budgets by fund are adopted. The attached Resolution adopting the final budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, Internal Service, and Special Revenue Funds for FY 2021 is, therefore, presented to you at this time for adoption. FINANCIAL IMPACT OF COVID-19 On March 1, 2020, the Governor issued an Executive Order directing the Surgeon General of the State of Florida to issue a public health emergency, and in response to the pandemic outbreak of COVID-19, the Governor declared a State of Emergency on March 9, 2020. In direct response to the first confirmed case of COVID-19 in Miami-Dade County on March 11, 2020, the Miami-Dade County Mayor declared a State of Emergency for Miami-Dade County.The City Manager declared a State of Emergency in the City of Miami Beach on March 12, 2020. Subsequently, both the County and the City issued various Emergency Orders temporarily closing public and private facilities, including the temporary closure of all non-essential retail and commercial establishments and identifying essential retail and commercial businesses which may remain open. These actions have greatly limited the amount of economic activity taking place in the City of Miami Beach and continue to result in significant impacts to the City's finances. In response to the projected revenue losses through the end of the fiscal year, the Administration presented the City's budget-balancing plan to the Finance and Economic Resiliency Committee Page 25 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 2 (FERC) on April 17, 2020. These plans emphasized cost reductions as much as possible, including a reduction in capital expenditures, and judiciously using reserves to make up the difference. The chart below summarizes the total projected gap between the General Fund and Resort Tax Fund Preliminary FY 2021 Budgets, as presented at the June 16, 2020 FERC meeting. NON-COVID-19 COVID-19 General Fund ($6.0 million) ($13.8 million) Resort Tax 0 ($18.3 million) Total ($6.0 million) ($32.1 million) PROPERTY VALUES UPDATE On July 1, 2020, the City received the 2020 Estimated Taxable Values from the Miami-Dade County Property Appraiser indicating that the overall taxable value for the City of Miami Beach was $41.7 billion, including $1.3 billion in new construction. Overall, this represents a 4.1 percent increase in values from the 2019 Certification of Taxable Value provided by the Miami-Dade County Property Appraiser on July 1, 2019. Overall Property Value Trend r- .- 35.0% 30.3% I I 30.0% 25.0% 18.1% 20.0% 15.0% ° 13.3%13.0% 9.9/° ° 6.9% .8% 10.0/° 5.0% . . 4.0% 3.1%4.1% 5.0% % 0.6% 0.0% -5.0% ° :.2 -10. '. -10.0% -15.0% ' -1--- FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 It is important to note that while the City's overall values increased by 4.1 percent, existing property values increased by 0.8 percent. Additionally, of the $1.3 billion in new construction values, 77 percent was generated by 4 properties. Page 26 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 3 Existing Property Value Trend ; 30.0% 25.8% I I 25.0% 20.0% 16.8% ° • 12.3% 15.0% 9.3% 9.2% 10.0% 6.5% , 5.3% 4.5% ° ( 5.0% --4/ . 3.5/° 2.3% -0.6% -1.0° -'' �` 0.8% 0.0% -5.0% -10.0% -12.7% .-15.0% -1 ,-20.0% , FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY • 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 The Preliminary FY 2021 General Fund budget based on the 2020 Estimated Taxable Values as of June 1, 2020 provided by the Miami-Dade Property Appraiser's Office reflected a revenue increase of$5.9 million, or 3.2 percent. The 2020 Certified Taxable Values provided by the Miami- Dade County Property Appraiser's Office as of July 1, 2020 reflect an increase in values of$258 million, or 0.6 percent, compared to the 2020 Estimated Taxable Values provided by the Miami- Dade County Property Appraiser's Office as of June 1, 2020, for an overall increase in citywide General Fund property tax revenues of$3.3 million. Of this increase, $1.4 million was due to the increase in property values. In addition, the preliminary property tax revenue projections as of June 1, 2020 assumed property values within the City Center RDA would increase by approximately 5.0 percent over the certified July 1, 2019 values based on historical trends. However, based on the certified July 1, 2020 values provided by the Miami-Dade County Property Appraiser's Office, property values within the City Center Redevelopment Agency (RDA) decreased by approximately $54.0 million, or 0.9 percent, from the certified July 1, 2019 values. This reduction in the RDA's property value resulted in a $1.9 million increase in citywide General Fund property tax revenues over the revenues projected as of June 1, 2020. Citywide General Fund Revenues Change Increase Due to July 2020 Property Value Increase 1,404,000 Increase Due to July 2020 RDA Property Value Decrease 1,898,000 Total Increase in Property Tax Revenue Projection $3,302,000 Page 27 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 4 June 2020 July 2020 $ Preliminary Certified Change Property Assessment Property Values 41,485,000,000 41,742,998,986 257,998,986 City Center RDA 6,571,291,425 6,204,385,940 (366,905,485) Citywide Total - Net of City Center RDA 34,913,708,575 35,538,613,046 624,904,471 Property Tax Revenue Projection 193,315,000 196,617,000 3,302,000 GENERAL FUND BUDGET DEVELOPMENT As in past years, the Proposed Work Plan and Budget was developed through an intensive review process with our City Commission. Extensive preliminary budget information was provided in meetings with the Finance and Economic Resiliency Committee on June 16, July 17, and July 24, 2020. The General Fund is the primary source of funding for many 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 fees for services, fines, rents and concession fees, and interest income.Additionally, intergovernmental revenues from Miami-Dade County and Resort Tax contribute funding for tourist-related activities provided by General Fund departments. At the June 16, 2020 Finance and Economic Resiliency Committee (FERC) 1st Budget Briefing, the Mayor and City Commission were briefed regarding the Preliminary FY 2021 General Fund budget, including the projected impact of COVID-19 on the City's revenues. The preliminary budget represents the cost of providing the same level of services as in the prior year and serves as the baseline of funding for the annual budget development process. Based on the 2020 Certified Taxable Values provided by the Miami-Dade County Property Appraiser's Office as of July 1, 2020, citywide values increased approximately $1.6 billion, or 4.1%, over the 2019 Certified Taxable Values, which resulted in an increase of $9.2 million in General Fund property tax revenues. Property taxes comprise approximately 60.1% of total FY 2021 General Fund revenues and are a key driver of the proposed revenues. At the July 17, 2020 FERC meeting, the Administration identified a combination of revenue and expenditure refinements, expenditure reductions/efficiencies, and expenditure enhancements, including those recommended due to the projected impact of COVID-19 on the City's revenues. These recommendations, if approved by the Committee, would have resulted in a proposed unallocated General Fund surplus of$2,000,000. Page 28 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 5 FY 2021 Balancing Strategies $ Preliminary Non-COVID-19 Surplus/(Gap) based on July 1st Values (2,725,000) Projected Impact of COVID-19 on General Fund Revenues (7,850,000) Total Surplus/(Gap) ($10,575,000) Recurring Revenue Refinements 941,000 Recurring Expenditure Refinements 841,000 Recurring Expenditure Reductions/Efficiencies 2,984,000 Recurring Expenditure Enhancements (41,000) Use of General Fund Reserves due to COVID-19 10,000,000 Reduction in Resort Tax Contribution due to COVID-19 (14,875,000) Transfer from City Center RDA for COVID-19 3,295,000 One-Time Expenditure Reductions due to COVID-19 9,430,000 Net $2,000,000 Based on direction received from the FERC on July 17, 2020 and July 24, 2020, the changes below were incorporated into the Proposed General Fund Operating Budget, which, if approved, would have resulted in a balanced budget for FY 2021. FY 2021 Balancing Strategies $ Preliminary Surplus/(Gap)as of July 24, 2020 FERC Meeting $2,000,000 Reduction in use of General Fund Reserve (2,000,000) Reimbursement from Miami-Dade County Public Schools for Police Officers in Schools based on Addendum to Current Agreement for 281,000 2021 School Year Additional Funding for Cat Trap, Vaccinate, Neuter& Release (10,000) Program Adjustment for FY 2021 Living Wage Enhancement 22,000 Additional FY 2021 General Fund Operating Contingency (293,000) Net $0 The Committee accepted the Administration's recommendations as summarized above. Adjustments Subsequent to Budget Briefings Over the summer recess, the Administration further refined the FY 2021 Proposed budget based on recommendations from the Budget Briefings, updated FY 2020 third quarter projections, and Page 29 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 6 refinements to recommended enhancements. These adjustments are based on the changes below. Revenue Refinements—($510,000) • Finalization of calculation of General Fund Administrative Fees— ($510,000) Expenditure Refinements— ($594,000) • Reduction in the Internal Service Department Chargebacks based on finalization of the FY 2021 Internal Service Department Budgets— ($542,000) • Increase in General Fund contribution to Office of Inspector General (OIG) Fund based on finalization of the FY 2021 OIG budget—$30,000 • Reduction in Transfer to Normandy Shores based on Final FY 2021 Budget—($3,000) • Increase for Miami Beach Efforts & Small Business Support Strategic Campaign — $11,000 • Reduction in the set-aside for General Fund Contingency— ($90,000) Recurring Expenditure Enhancements—$27,000 • On July 29, 2020, the City Commission adopted Resolution 2020-31374 authorizing the Miami Beach Police Department to proceed with development of a Public Safety Citizens on Patrol. Volunteer Program, which also approved funding for the creation of this program—$27,000 Recurring Expenditure Efficiencies/Reductions— $57,000 • As part of the balancing plan presented at the July 17, 2020 2nd FERC Budget Briefing, it was recommended that the full-time Program Supervisor position in the Office of Organizational Development & Performance Initiatives be eliminated in FY 2021. However, based on organizational changes recommended by the Administration, at the July 24, 2020 FERC 3rd Budget Briefing, the Administration recommended that the Program Supervisor position not be eliminated in FY 2021. First Public Hearing At the first public hearing held on September 16, 2020,the Administration presented the proposed FY 2021 budget to the Mayor and City Commission. As a result of the ongoing expressed concern regarding the recommended budget reductions necessary to right-size the Parking Department due to the impact of COVID-19 and ride-sharing services and the impact of these reductions to a number of employees, primarily in Parking Enforcement,the Mayor and City Commission directed the Administration to phase-in the recommended right-sizing reductions in the Parking Department over up to a 12 month period and to utilize additional General Fund reserves to offset the impact of the approved phase-in approach. The Administration originally estimated that the fiscal impact of this approach would be $500,000, which has been included in the Proposed Operating Budget. Update on Parking Positions As of September 24, 2020, 22 Parking employees have accepted new positions in other departments, 4 have refused, and 14 are pending responses. The combined fiscal impact of the 18 positions that have not accepted positions or are pending responses is estimated at $1,279,000. This will result in an increase in the use of General Fund Reserves by $779,000 Page 30 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 7 (from $500,000 to $1,279,000). It is important to note that because the City Commission tentatively adopted the General Fund budget of$328,079,000 at the first public hearing on September 16, 2020,the proposed changes to the budget as outlined above,will need to be amended on the floor at the second public hearing on September 29, 2020. As a result, the memo and resolution for this item remain consistent with the budget tentatively adopted at the first public hearing on September 16, 2020. Adjustments Subsequent to First Public Hearing Subsequent to the first public hearing on September 16, 2020, the Administration received 5 one- time enhancement requests totaling $378,000 for consideration and potential funding at the second public hearing on September 29, 2020. The requests are summarized below. • $200,000 for the creation of a Miami Beach Artist-in-Residence program which addresses the need to activate empty spaces in Miami Beach commercial districts by attracting, retaining, and supporting the revitalization of the artistic community • $60,000 contribution to the Miami Beach Senior High Parent Teacher Student Association (PTSA) for the renovation of the school courtyard • $60,000 for a reimbursement program to restaurants for delivery services • $33,000 for fencing and landscaping at the school playfield area, basketball courts, and parking lot at Miami Beach Senior High School to provide community access on Sundays (additional days to be discussed during quarterly scheduled meetings) • $25,000 for fencing and security cameras at Miami Beach South Pointe Elementary to provide access to the outdoor basketball courts for community use during weekends and potentially non-school days It is important to note that at the first public hearing on September 16, 2020, the Administration presented a balanced FY 2021 General Fund budget, as amended, which included the proposed use of$8.5 million of General Fund reserves. Therefore, any additional funding proposed by the Mayor and City Commission to be used for the enhancement requests summarized above would require an increase in the proposed use of General Fund reserves for FY 2021. Finance & Economic Resiliency Committee At the FERC meeting on September 23, 2020 an important legal issue was discussed that impacts the proposed millage rate for the Normandy Shores Neighborhood Improvement District. During the legal review of legislation governing the City's 35% subsidy to the district, it was discovered that the $500 cap on the highest valued home in the District is still legally in place. In 2015, the City Commission adopted ordinance 2015-3928 which repealed 3 neighborhood districts that were no longer active and re-adopted the legislation for the Normandy Shores District because the original ordinance was never codified in the City Code. However, that ordinance mistakenly adopted the 1993 version that included the $500 cap and not the intended 2002 version that eliminated the cap. As a result, the City Commission will not be able to adopt the millage rate of 0.7497 that was tentatively adopted at the first public hearing on September 16, 2020. Instead, the millage rate will need to be significantly decreased to 0.0773 mills in order to comply with the $500 cap. This will result in a $155,000 loss of revenue from property tax revenue to the District, and a resulting $155,000 reduction in the Operating Budget. Page 31 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 8 The FERC agreed with the staff recommended approach to balance the proposed FY 2021 budget for the Normandy Shores District, which included the use of $118,000 of Normandy Shores' Fund Balance reserves; a$20,000 reduction in the Normandy Shores FY 2021 Proposed Budget and the use of anticipated Normandy Shores FY2020 savings to add to available fund balance. The FERC also chose not to reduce the proposed City subsidy of$93,100 to the district at this time and instead revisit it before the FY 2022 budget development process. FY 2021 GENERAL FUND BUDGET Based on the direction given at the various Budget Briefings during the summer, the budget adjustments made over the summer recess, and direction given by the Mayor and Commission at the first public hearing on September 16, 2020, the Administration proposes the FY 2021 General Fund budget as noted below, which, if approved, will result in a balanced budget. September 29, 2020 Proposed Budget $ Revenues 328,079,000 Expenditures 328,079,000 Surplus/(Gap) $ 0 The charts below reflect the major revenue and expenditure categories of the Proposed FY 2021 General Fund budget. FY 2021 GENERAL FUND REVENUES Other Revenues Non Operating 3.0% Use of General Fund Charges for Services Miscellaneous Revenue f Reserves (incl.Golf Courses) 4.6', 3.8% 2.6% 4.0% Intergovernmental 3.4% Other Taxes.._-- Property Tax 7.3% 60.0% Licenses and Permits 4.2% RDA Contribution_ 1.3% Parking Contribution.7 0.0% Resort Tax Contribution 5.7% Page 32 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 9 FY 2021 GENERAL FUND EXPENDITURES Other 22.6%_ Police 35.1% Public Works 4.1% Parks&Recreation (including Golf courses) 10.4°! Fire 27.8°4 Attachment A—Recommended Expenditure Reductions/Efficiencies — ($2,810,000) Attachment A reflects a listing of all recommended FY 2021 service reductions and efficiencies with detailed descriptions, which are summarized below: FY 2021 Reductions/Efficiencies $ P Year 1 Positions Efficiency in Renegotiated Contract Savings from Grounds 1,361,000 0.00 Maintenance, Parks Landscape, Body Camera, etc. Efficiency in Proposed Police Staffing Plan Changes 795,000 0.00 Efficiency in Elimination of Fleet Management Director and 199,000` 0.00 Conversion of 2 Admin Positions into 1 Admin Position (Int Svcs.) Efficiency in Elimination of Assistant Environment& Sustainability 136,000 1.00 Director Position Efficiency in Civilianization of(2) Sworn Positions to Civilian 120,000 0.00 Positions Efficiency in Elimination of Emergency Management Specialist 101,000 1.00 Position Efficiency in Elimination of Financial Analyst II Position 91,000 1.00 Efficiency in Elimination of Legislative Manager Position 86,000 1.00 Efficiency in Elimination of Safety Officer Position (Int Svcs.) 39,000` 0.00 Impact of Reallocating Portion of Senior Capital Projects (118,000) (0.75) Coordinator Position from Parking to CIP Total $2,810,000 3.25 Estimated savings from Internal Service Fund Reductions Page 33 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 10 Attachment A — Recommended "One-Time" Expenditure Reductions/Efficiencies — ($9,430,000) Attachment A also reflects a listing of all recommended "one-time" FY 2021 service reductions and efficiencies to offset the projected impact of COVID-19 on the City's revenues, including detailed descriptions, which are summarized below: FY 2021 Reductions/Efficiencies Full-Time Year 1 Positions Decrease in Lifeguard Hours and Boat expenditures 329,000 0.00 Up to Five Furlough Days for All Groups based on Salary 1,757,000 0.00 Tiers Travel and Training Freeze 430,000 0.00 Non-Essential Tuition Reimbursement Freeze 115,000 0.00 Hiring Freeze 2,799,000 0.00 Freeze on Non-Essential Expenditures 4,000,000 0.00 Total $9,430,000 0.00 Attachment B — Recommended Expenditure Enhancements — $110,000 Attachment B reflects a listing of all recommended FY 2021 expenditure enhancements, which are detailed below: • Living Wage— $19,000 This enhancement increases the total minimum living wage rate from $15.00 per hour including health benefits to $15.15 per hour including health benefits, effective January 1, 2021. The proposed increase is comprised of a 1% increase in the living wage rate and 1% increase in the health benefits rate. • Public Safety Citizens on Patrol Volunteer Program — $27,000 This enhancement is to establish a Public Safety Citizens on Patrol Volunteer Program to meet the changing needs of the community and further promote an enhancement of the City's Community Policing philosophy by having members of the new program assist in patrolling neighborhoods, parks, schools, and commercial areas as additional eyes in public spaces throughout the City in accordance with Resolution 2020-31374 adopted by the City Commission on July 29, 2020. • Trap, Neuter, Vaccinate, and Release (TVNR) Program—$10,000 This enhancement is to allocate additional funding of $10,000 to continue the Trap, Neuter, Vaccinate, and Release(TVNR) Program for FY 2021 based on direction from the Finance and Economic Resiliency Committee at its July 17, 2020 meeting. • General Fund Impact of Recommended Internal Service Fund Enhancements— $54,000 This enhancement will fund the estimated General Fund impact of the proposed enhancements on the FY 2021 Internal Service Funds. Internal Service Fund budgets are completely allocated to the General, Enterprise, and Special Revenue Funds. Page 34 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 11 USE OF RESERVES As noted at the June 16, 2020 FERC meeting,the General Fund reserve balance is approximately $80.6 million, or 23.3%, as of September 30, 2019. The projected use of this balance during FY 2020 (excluding COVID-19 related expenses that are considered reimbursable) is $2.8 million. If the City Commission approves the General Fund's budget balancing recommendations outlined by the Administration for FY 2021, including the additional $1,341,000 proposed to be transferred to the Parking Enterprise Fund per direction from the Mayor and City Commission on September 16, 2020, the remaining General Fund reserve balance would be $69.3 million, or 19.8%. This balance would still exceed the minimum 17.0% General Fund unrestricted budgetary fund balance recommended by the Government Finance Officers Association (GFOA). General Fund Reserve Amount Current Reserve(as of FYE 09/30/2019) $80.6 million Use of Reserve in FY 2020 ($2.8 million) Proposed Use of Reserve in FY 2021 ($8.5 million) Remaining Reserve $69.3 million It is important to note that at the first public hearing on September 16, 2020, the Administration presented a balanced General Fund budget, as amended, which included the proposed use of $8.5 million of General Fund reserves for FY 2021. Therefore, any additional funding proposed by the Mayor and City Commission to be used for the enhancement requests summarized above would require an increase in the proposed use of General Fund reserves for FY 2021 a noted below. General Fund Reserve Amount Current Reserve(as of FYE 09/30/2019) $80.6 million Use of Reserve in FY 2020 ($2.8 million) Proposed Use of Reserve in FY 2021 ($8.5 million) Remaining Reserve $69.3 million Additional Use of Reserve in FY 2021 for Parking ($0.8 million) Remaining Reserve $68.5 million Additional Use of Reserve for One-Time ($0.3 million) Enhancements Remaining Reserve $68.2 million PARKING & RDA FUND TRANSFERS TO THE GENERAL FUND The Proposed FY 2021 General Fund budget includes a $3.3 million decrease in Pension Debt expenditures that resulted from the planned retirement of the City's Pension Debt in FY 2021. Additionally, FY 2022's budget will recognize an additional $1.2 million savings as there will be no further Pension Debt expenditures, which represents $4.5 million of recurring savings in the Page 35 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 12 operating budget. It is important to note that the Administration's long-term objective has been to reduce the subsidy from the Parking Enterprise Fund to the General Fund in order reduce the burden on the Parking Enterprise Fund. Consistent with this strategy, and due to the significant reduction in revenues being experienced by the Parking Fund resulting from COVID-19, the Proposed FY 2021 budget includes the elimination of this $1.2 million transfer to the General Fund in FY 2021. History of Transfer to General Fund from Parking Fund 9.0 8.0 7.0 N N - 6.0 v — 2 5.0 --- 0 4.0 v --- 3.0 c0 M 2.0 ry N 1.0 0.0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Similarly, the Administration's objective has been to reduce the General Fund's reliance on the transfer from the City Center Redevelopment Agency (RDA) Fund, which became available through approval of the Fourth Amendment to the Interlocal Agreement between the City of Miami Beach, the Miami Beach Redevelopment Agency, and Miami Dade County. Like the Parking Enterprise Fund, the City's long-term objective is to reduce the General Fund's reliance on this one-time source of funding from the RDA, which ends in FY 2024. Recommended Use of RDA Funds Expenditure FY 2021 FY 2022 FY 2023 FY 2024 Transfer to General Fund for 3,295,000 0 0 0 COVID-19 impact Transfer to General Fund to replace parking transfer until FY 1,119,000 0 0 0 2022 Fleet Replacement&Capital 1,152,000 5,775,000 5,994,000 0 Needs Total $5,566,000 $ 5,775,000 $5,994,000 I $0 Page 36 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 13 To eliminate the City's reliance on Parking Funds and RDA one-time funds, the Proposed FY 2021 budget includes offsetting the savings from the Pension Debt against the reduction in transfer from the RDA, which would release the RDA funds to be utilized for one-time purposes in the budget through FY 2023. Use of Resort Taxes to offset Tourism Eligible Expenditures in the General Fund Based on an outside consultant study conducted in FY 2020 using actual expenses for FY 2019, the study estimated that there are approximately $151.5 million in eligible Resort Tax expenditures in the General Fund. These include expenditures associated with police officers serving entertainment areas; a portion of fire rescue services from Fire Stations 1 & 2; ocean rescue services; enhanced code compliance provided to respond to evening entertainment area violations and staffing of special events; other code compliance activities in tourism and visitor related facilities/areas; operations of the Tourism and Culture Department and the Cultural Arts Council; museums and theaters (Garden Center, Bass Museum, and Colony Theater); golf courses (net of revenues); Memorial Day and other special event costs; homeless services; July 4th; Visitor Center funding; holiday lighting; Jewish Museum; Miami Design Preservation League (MDPL); etc. Due to the projected impact of COVID-19 on the City's Resort Tax revenues for FY 2021, the total Proposed Resort Tax Fund transfer to the General Fund for FY 2021 is $18.6 million, which is approximately a $18.1 million, or 49.3%, decrease from the FY 2020 transfer of $36.8 million. Although the uncertainty of when the economy will return to normalcy still remains, it is anticipated that FY 2022 Resort Tax revenues transferred to the General Fund will return to a level that is closer to historical actuals (approximately 90% of the FY 2020 budget). 2% RESORT TAX FUND At the June 16, 2020 and July 17, 2020 FERC Budget Briefings, the Mayor and City Commission were also briefed regarding the Preliminary FY 2021 Resort Tax budget. FY 2020 FY 2021 $ Adopted Preliminary Variance Variance Revenues 64,177,000 46,102,000 (18,075,000) (28.2%) Expenditures 64,177,000 57,862,000 (6,315,000) (9.8%) Surplus/(Gap) $0 ($11,760,000) Based on actual collections as of May 2020, the projected 2% Resort Tax gap for FY 2021 is approximately $11.8 million. This assumes that, as time elapses, 2% Resort Tax revenues will gradually rebound from the impact of COVID-19 during FY 2020 and continue into FY 2021. For FY 2021, the assumptions utilized by the Administration project that the City will collect, on average, approximately 75% of the revenues that would have been collected without the impact of COVID-19 based on prior year trends. Page 37 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 14 Approach to Balance As a result of the preliminary $11.8 million gap projected for FY 2021, the Administration recommended the following expenditure refinements, service reductions/efficiencies, and one- time expenditure enhancements, which if approved by the Committee, would have resulted in a balanced Resort Tax budget. FY 2021 Balancing Strategies $ Preliminary Surplus/(Gap) ($11,760,000) Expenditure Refinements 8,963,000 Recommended Reductions/Efficiencies 3,697,000 Recommended"One-Time" Expenditure Enhancements (900,000) Net $0 The Committee accepted the Administration's recommendations as summarized above. Adjustments Subsequent to Budget Briefings Over the summer recess, the Administration further refined the FY 2021 Proposed budget based on refinements to projected FY 2021 expenditures. These adjustments are comprised of the changes below. Expenditure Refinements—$12,000 • Increase in the Internal Service Department Chargebacks based on finalization of the FY 2021 Internal Service Department Budgets—$15,000 • Reduction in the Administrative Fees paid to the General Fund based on the Final FY 2021 Resort Tax budget— ($230,000) • Increase in Resort Tax Contribution to Offset Decrease in Administrative Fees paid to General Fund based on Final FY 2021 Resort Tax budget—$227,000 Recurring Expenditure Efficiencies/Reductions— ($12,000) • Reduction in FY 2021 contribution to the Miami Beach Visitors and Convention Authority based on the VCA's proposed FY 2021 budget— ($12,000) FY 2021 2% RESORT TAX BUDGET Based on the direction given at the various Budget Briefings during the summer, and the budget adjustments made over the summer recess summarized above, the Administration proposes the FY 2021 Resort Tax budget as noted below, which, if approved, will result in a balanced budget. Page 38 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 15 September 16, 2020 Proposed Budget $ 2% Revenues 46,102,000 2% Expenditures 46,102,000 Surplus/(Gap) $0 Attachment A — Recommended "One-Time" Expenditure Reductions/Efficiencies — ($3,709,000) Attachment A reflects a listing of all recommended "one-time" FY 2021 service reductions and efficiencies with detailed descriptions for the 2% Resort Tax Fund, which are summarized below: FY 2021 Reductions/Efficiencies $ Full-Time Year 1 Positions Greater Miami Convention and Visitors Bureau (GMCVB) 2,600,000 0.00 Contract Savings from One-Year Agreement Miami Beach VCA 50% Reduction based on Negotiated 1,087,000 0.00 Agreement Up to Five Furlough Days for All Groups based on Salary Tiers 22,000 0.00 Total $3,709,000 0.00 Attachment B— Recommended "One-Time" Resort Tax Enhancements —$900,000 In addition, the following Resort Tax item, which is considered a `one-time" enhancement, is being recommended for funding in FY 2021: • Police Services-National College Football Championship—$900,000 This enhancement request is to fund necessary overtime, rentals, security guards, and equipment to provide comprehensive police services and resources for the 2021 National College Football Championship. The request amount is based on experience with past Super Bowls, Memorial Day, Spring Break and other high-impact events. Overall, the total FY 2021 Resort Tax budget is$69.3 million, which is a decrease of$24.3 million, or 26.0%, from the adopted FY 2020 budget. This decrease assumes that, as time elapses, 2% Resort Tax revenues will gradually rebound from the impact of COVID-19 during FY 2020 and continue into FY 2021. For FY 2021, the assumptions utilized by the Administration project that the City will collect, on average, approximately 75% of the revenues that would have been collected without the impact of COVID-19 based on prior year trends. The FY 2021 Resort Tax budget includes: • $18,639,000 (decrease of $18,118,000 from FY 2020) provided to the General Fund to support continuing tourism eligible expenditures such as Code enforcement, cleanliness, the Park Ranger program, homelessness at Lummus Park, increased support for the Page 39 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 16 Miami Beach Botanical Gardens and the City's cultural facilities, public safety programs such as Ocean Rescue, Police services on Lincoln Road, Ocean Drive/Lummus Park, Collins Avenue, Washington Avenue, ATV officers, Boardwalk security, special traffic enforcement and staffing during high impact periods. Funding also supports Code Compliance enforcement in the entertainment areas, a portion of the operational costs of the Tourism and Culture Department and Economic Development Department, and a portion of the management agreements for operations of the Bass Museum, Colony Theatre, and Byron Carlyle Theatre. • $5,780,000 (increase of$3,241,000 over FY 2020) contribution to the Sanitation Fund for cleaning services provided throughout the entertainment areas. This includes a one-time transfer of $2,758,000 in FY 2021 for prior year Sanitation Fund services provided throughout the City's tourism areas. • $4,527,000 (decrease of $2,600,000 over FY 2020) contribution to the Greater Miami Convention and Visitors Bureau (GMCVB) based on an amended agreement with the GMCVB for one year to assist the City with the projected loss of Resort Tax revenue during FY 2021 due to the impact of COVID-19. • $4,323,000 (one-time increase of $900,000 for the College Football National Championship 2021) for enhancing City services, inclusive of Goodwill Ambassadors, during high impact periods such as Memorial Day, July 4th, Spring Break, and Art Basel. • $1,075,000 contribution to the Miami Beach Visitor and Convention Authority(VCA) based on an updated legislated contribution formula for one year to assist the City with the projected loss of resort tax revenue during FY 2021. The VCA will receive 2.5% instead of 5.0% of 2% Resort Tax collections, net of the 4% allowance, for FY 2021. • $1,000,000 (year six of a fifteen-year annual grant) contribution to Mount Sinai Medical Center to fund the design and construction of a new emergency room facility. It is important to note that the FY 2020 contribution was deferred to a subsequent fiscal year as part of the City's COVID-19 balancing plan. • $1,000,000 (increase of $793,000 over FY 2020) in contingency for unforeseen expenditures incurred during FY 2021. • $500,000 (decrease of $175,000 over FY 2020) for enhanced holiday decorations throughout the City's tourism areas. • $542,000 to support the initiative to provide better service by adding attendants to the beachfront restrooms in Lummus Park and 21st street on weekends, holidays, and during high impact periods. • $350,000 contribution to partially offset expenditures for the Miami Beach Air and Sea Show. • $200,000 to continue the local Miami Beach marketing campaign, which is matched with funds from the Greater Miami Convention and Visitors Bureau (GMCVB), the Miami Beach Visitor and Convention Authority (VCA), and the Cultural Arts Council (CAC). Page 40 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 17 • $188,000 sponsorship to Miami Beach Pride for the annual Pride festival, which includes $25,000 for rental of a Ferris wheel. • $151,000 City subsidy for the Ocean Drive Tourist Oriented Policing Services Off-Duty Police program. • $150,000 sponsorship to the Orange Bowl Committee to expand and deepen the Committee's footprint in Miami Beach for the College Football National Championship to be held in Miami in 2021. • $135,000 for Memorial Day weekend cultural activation events. • $100,000 contribution to partially offset expenditures for the Miami Design Preservation League—Art Deco Weekend • $100,000 to provide funding for activation of cultural programming to increase the City's portfolio of free arts and cultural events throughout the City. • $100,000 contribution towards the July 4th fireworks event in North Beach. • $82,000 allocated for professional consulting fees ($61,000) and annual audit services ($21,000). • $49,500 for continuation of the Enhanced Secret Shopper Program • $36,000 for the painting of lifeguard stands on the beach every other year so that they are on a constant painting cycle instead of an ad-hoc or as-needed basis. • $25,000 for completion of an updated Resort Tax Cost Allocation Study • $10,771,000 for North, Middle, and South Beach Quality of Life (QOL) Capital Projects that enhance Miami Beach's tourist related areas, plus continued support of transportation initiatives and various arts and cultural programs based on the following allocation adopted by the City Commission commencing FY 2019: Transportation—60%, North Beach (QOL) — 10%, Middle Beach (QOL) — 10%, South Beach (QOL)— 10%, Arts— 10%. • $10,771,000 for debt service associated with the Resort Tax revenue bonds issued in 2015 for the expansion and renovation of the Miami Beach Convention Center and Convention Center Renewal and Replacement projects in accordance with Resolution 2012-27902. Due to the impact of COVID-19 on the City's Resort Tax revenues, an additional $1,686,000 is budgeted in the 2% Resort Tax Fund for coverage of the required FY 2021 debt service. Page 41 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 18 FY 2021 ENTERPRISE FUND BUDGETS Enterprise Funds are comprised of Sanitation, Water and Sewer, Storm Water, Parking, Convention Center, and Building Departments. The FY 2021 Enterprise Funds Budget is $217.8 million. This represents a decrease of$11.5 million, or 5.0%, from the FY 2020 budget of$229.3 million, primarily due to the following: • Water reflects an overall decrease of$1.4 million, or 3.8%, primarily due to the elimination of one-time expenditure enhancements budgeted in FY 2020, as well as a reduction in the budgeted set-aside for renewal and replacement of Water assets that is based on projected revenues in excess of expenditures. These decreases are, however, partially offset by increases in operating expenditures and expenditure enhancements recommended for FY 2021, as outlined in Attachment B. • Sewer reflects an overall decrease of$3.2 million, or 6.1%, primarily due to the elimination of one-time expenditure enhancements budgeted in FY 2020, as well as a reduction in the budgeted set-aside for renewal and replacement of Sewer assets and transfers to reserves that are based on projected revenues in excess of expenditures. These decreases are, however, partially offset by increases in operating expenditures and expenditure enhancements recommended for FY 2021, as outlined in Attachment B. • Storm Water reflects an overall decrease of $839,000, or 2.6%, primarily due to the elimination of one-time expenditure enhancements budgeted in FY 2020, as well as a reduction in the budgeted set-aside for renewal and replacement of Storm Water assets, which is partially offset by increases in operating expenditures and expenditure enhancements recommended for FY 2021, as outlined in Attachment B. PARKING FUND As a result of the significant decline in Parking revenues due to COVID-19 restrictions, the Preliminary FY 2021 Parking Fund budget reflected a gap of $13.8 million, as discussed at the July 17, 2020 FERC meeting. This gap assumed that there would be no transfer to the General Fund and no transfer to the Transportation Fund from the Parking Fund. Recommended Reductions in the Parking Fund At the Finance & Economic Resiliency Committee meetings on July 17 and July 24, 2020, the Committee was briefed on the recommended budget reductions necessary to right-size the Parking Department. Although recognizing the financial need for the recommended changes, the Committee expressed concern regarding the impact to a significant number of employees, especially in parking enforcement. As a result, the Committee requested that the Administration review the recommendation to determine if there is any way to help mitigate the impact to the affected employees, especially given the economic impacts from COVID-19. Following the meeting, the Administration engaged the Human Resources Department to determine the potential to place the full-time positions that were either proposed for elimination or to be converted to part-time positions. The analysis showed that due to the high number of currently vacant positions from the hiring freeze enacted in March, all full-time employees impacted by the proposed reductions including those in the Parking Department, will be offered a Page 42 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 19 full-time position with the City, based on their individual skills and abilities and willingness to accept different work in another department. The full-time parking staff that do not choose to accept alternative work would have an opportunity to stay in Parking, but on a part-time basis. In the Parking Department, this means that all 8 filled full-time positions proposed for elimination and all 32 filled full-time positions proposed to be converted to part-time would have an opportunity to continue their service to the City by accepting full-time positions in other departments. In addition, by avoiding the conversion of full-time positions to part-time, many of the current 16 filled part-time positions would no longer be proposed for elimination as they could serve as part of the in-house component of the new 50% in-house and 50% contract model proposed for parking enforcement. ALL PARKING Full-Time Part-Time Filled Vacant Filled Vacant Eliminated positions 8 6 16 10 Convert from FT to PT 32 1 - - Enforcement only Full-Time Part-Time Filled Vacant Filled Vacant Eliminated positions - - 16 10 Convert from FT to PT 32 1 - - Non-Enforcement only Full-Time Part-Time Filled Vacant Filled Vacant Eliminated positions 8 6 - - First Public Hearing At the first public hearing held on September 16, 2020, the Administration presented the proposed FY 2021 budget to the Mayor and City Commission. As a result of the ongoing expressed concern regarding the recommended budget reductions necessary to right-size the Parking Department due to the impact of COVID-19 and ride-sharing services and the impact of these reductions to a number of employees, primarily in Parking Enforcement, the Mayor and City Commission directed the Administration to phase-in the recommended right-sizing reductions in the Parking Department over up to a 12 month period and to utilize additional General Fund reserves to offset the impact of the approved phase-in approach. The Administration originally estimated that the fiscal impact of this approach would be $500,000, which had been built into today's Proposed Operating Budget. Update on Parking Positions As of September 24, 2020, 22 Parking employees have accepted new positions in other departments, 4 have refused, and 14 are pending responses. The combined fiscal impact of the 18 positions that have not accepted positions or are pending responses is estimated at $1,279,000. This will result in an increase in the use of General Fund Reserves by $779,000 (from $500,000 to $1,279,000). Page 43 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 20 It is important to note that because the City Commission tentatively adopted the Parking Fund budget of$36,847,000 at the first public hearing on September 16, 2020, the proposed changes to the budget as outlined above, will need to be amended on the floor at the second public hearing on September 29, 2020. As a result, the memo and resolution for this item remain consistent with the budget tentatively adopted at the first public hearing on September 16, 2020. SANITATION FUND During the development of the FY 2020 budget, the Administration conducted a Zero-Based budget exercise for the Sanitation Fund, which has been structurally imbalanced for a few years. The City Commission adopted several recommendations that helped close a portion of the imbalance, but two are still pending. The first is the implementation of the Alternate Side Parking (ASP) program with an estimated savings of$228,000. This program has been placed on hold as a result of the COVI D-19 pandemic due to neighborhood parking impacts. The second item is the pending implementation of the recycling fee pass-through from Miami-Dade County, which would generate $231,000 of revenue. A significant impact affecting the Sanitation Fund for the FY 2021 budget is the loss of$1.5 million of revenue from the Parking Fund. As part of the Parking Fund's budget balancing plan, Parking will pay only the actual cost of the positions providing sanitation services and potentially transition to a private service provider at some point during the fiscal year. As a result, Sanitation has identified $1.2 million of reductions that will help address the $1.5 million impact from Parking as noted below and detailed in Attachment A. FY 2021 Reductions/Efficiencies $ Full-Time Year 1 Positions Eliminate 11 Full-Time Sanitation Positions 559,000 11.00 Efficiency in Reduction of Temporary Labor 506,000 0.00 Used to Provide Sanitation Services Efficiency in Reduction of Sanitation Operating Expenditures including the Big 145,000 0.00 Belly contract Up to Five Furlough Days for All Groups 44,000 0.00 based on Salary Tiers Total $1,254,000 11.00 It is important to note that these reductions may result in decreased response times to service requests in areas such as RDA, NBRC, and the MXE and lower cleanliness scores. To address the remainder of the Parking impact, additional efficiencies and cost saving opportunities will continue and be evaluated over the next 3 to 6 months. Page 44 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 21 CONVENTION CENTER FUND As a result of the cancelation of events at the Convention Center and the creation of the Alternate Care Facility due to COVID-19, the Preliminary FY 2021 Convention Center Fund budget reflects a gap of$5.6 million. The Administration's recommended adjustments, which are necessary to respond to the decline in Convention Center revenues, would result in a balanced budget if approved by the City Commission and are outlined in Attachment A. Use of Convention Center Fund Reserves At the Finance & Economic Resiliency Committee meetings on July 17, 2020, the Committee was briefed on the amount of reserves projected to be used during FY 2020 and FY 2021 in the Convention Center Fund. The third quarter analysis showed that although the reserve at the end of FY 2019 totaled $12.9 million, that$1.9 million is projected to be used during FY 2020 and $5.1 million during FY 2021 to balance the budget due to the significant impact of COVID-19 to events in the Convention Center. The Committee expressed concern given the slow pace of recovery from COVID-19 that contingency planning should take place given that there is a reasonable likelihood that additional currently scheduled events may be canceled or rescheduled. Following the meeting, staff met with Spectra, the operator of the Convention Center, and determined that 17 events with a net revenue of $1.7 million would be at risk if events were not able to be held during the first quarter (October through December 2020). Of the $1.7 million, half of the amount would be attributable to Art Basel (room rental is at $750,000). Spectra confirmed that they have a contingency plan to cut expenses that could offset the potential loss of $1.7 million of net revenue. The expense reductions include $1.1 million in personnel cost savings (frozen positions, furloughed positions, no merit/COLA) and 600,000 in operational savings (reduction in capital expenses and various other areas). For the second quarter (January through March), Spectra has identified 24 events with a net revenue of $2.2 million that would be at risk if they have to be canceled or rescheduled. The capacity for Spectra to make additional reductions would be reduced in the second quarter to approximately$700,000 given the expense reductions that would be needed to offset the potential loss in the first quarter. As a result, it is likely that approximately $1.5 million of revenue is at risk would have to come from the use of additional Convention Center reserves over and above the $5.1 million assumed in the FY 2021 Budget. FY 2021 INTERNAL SERVICE FUND BUDGETS Internal Service Funds are comprised of Central Services, Fleet Management, Information Technology, Risk Management, Medical and Dental, Property Management, and Office of the Inspector General. The FY 2021 budgets for Internal Service Funds is $107.0 million, which is an increase of$8.1 million, or 8.2%, over the FY 2020 budget. Page 45 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 22 A major driver of the FY 2021 budget increase is a $2.9 million, or 7.7%, increase in the Medical and Dental Fund budgets based primarily on a projected increase in paid medical and prescription claims based on FY 2020 third quarter actuarial projections and claims experience. Another significant driver of the FY 2021 budget increase is a $2.8 million, or 14.2%, increase in the Risk Management Fund budget primarily due to an increase in premiums across all lines of insurance projected for FY 2021, as well as projected claims based on FY 2020 third quarter actuarial projections. It is important to note that prior to FY 2021, the Office of the Inspector General was included in the budget as a General Fund entity. Beginning in FY 2021, this $1.5 million budget is included as an Internal Service Fund. Internal Service costs are completely allocated to the General Fund and Enterprise Fund departments, as well as Special Revenue Funds. The Risk Management Fund, however, reimburses the General Fund for the cost of legal services provided. TRANSPORTATION FUND As a result of the significant decline in Resort Tax and Parking revenues due to COVID-19, the Preliminary FY 2021 Transportation Fund budget reflected a gap of$4.7 million, which included a $2.37 million reduction in revenues from the 1% Resort Tax Fund and a $981,000 decrease in the transfer from the Parking Fund (as noted above in the Parking balancing plan). The Administration's recommended adjustments, which are necessary to respond to the decline in Resort Tax and Parking revenues, would result in a balanced budget if approved by the City Commission, and include adjustments to trolley services as noted below, as well as other budget adjustments as outlined further in detail in Attachments A and B. Trolley Service The recommended balancing plan assumes that a modified trolley service will be reinstated with an adjusted level of service as outlined in the table below. It is important to note that trolley vehicle assignment, service frequency, and service hours will be subject to change based on demand and the service levels could be increased incrementally, depending on budget availability. It also includes the operation of the Middle Beach Freebee at the service level approved by the City Commission, as well as the costs for cleaning and sanitizing the vehicles. The Administration is currently pursuing dedicated Freebee service for seniors. Current Proposed Level of Service Level of Service Hours 18 12-14 (8 am to 12 am) (8 am to 9 pm) Vehicles 25 15 Routes All Eliminate 11th Street Loop; Modify Belle Isle Loop Frequency 20 minutes 30 minutes Page 46 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 23 USE OF ONE-TIME REVENUES FOR RECURRING EXPENDITURES The City's current policy regarding the use of one-time revenues states that "the City of Miami Beach will use one-time, non-recurring revenue for capital expenditures or one-time expenditures and not subsidize recurring personnel, operations, and maintenance cost." Due to the projected impact of COVID-19 on the City's revenues, the FY 2021 budgets for the General Fund, Building Fund, and Convention Center Fund require the use of fund balance for recurring FY 2021 operating expenditures as set forth in the budget balancing plans presented at the FERC Budget Briefings. As a result, it is recommended that the Mayor and City Commission waive this policy, as adopted by Resolution No. 2006-26341, providing for the one-time use of fund balance for the FY 2021 General Fund, Building Fund, and Convention Center Fund. During the upcoming fiscal year, the Administration will continue to explore and recommend further actions to ensure that these funds move toward being structurally balanced. BUDGET AND POSITION TRENDS The Current Economic Conditions Report (Environmental Scan) prepared by BusinessFlare Economic Development Solutions in October 2019 shows that the average daily population in the City has grown from 163,062 in 2007 to 196,483 in 2018, which is approximately 20.5%. Having 20.5% more people in the City over the last eleven years, without a proportional increase in the budget, can impact the level of services provided over time. The chart below reflects the General Fund budget and General Obligation Bond Debt Service budget divided by the Average Daily Population (ADP) from FY 2007 to FY 2018. The chart shows that the General Fund Budget per ADP has increased by approximately 1.2% each year since FY 2007. General Fund and G.O. Debt by Average Daily Population FY 2007- FY 2018 $1,800 $1,600 • $1,400 ' ' $1,200 $1,000 I $800 I I I I I I I I I I $600 I I I I I I I I I I I $400 I $200 1 I I I I I I I I $- I I I I I I I I I I FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 •GO Debt per ADP $40 $38 $35 $33 $33 $30 $29 $29 $29 $31 $30 $30 ■GFExp per ADP $1,458 $1,427 $1,346 $1,243 $1,294 $1,212 $1,258 $1,277 $1,385 $1,565 $1,631 $1,684 Total per ADP $1,498 $1,465 $1,381 $1,276 $1,327 $1,242 $1,287 $1,305 $1,415 $1,596 $1,662 $1,714 2 Page 47 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 24 Despite the 20.5% growth in ADP and tourism, the City's position count is 2.8%, or 59 positions, less in FY 2021 than in FY 2007, as reflected in the chart below. The overall position count in FY 2021 is 2.9%, or 61 positions, less than in FY 2020. The FY 2021 position count assumes the Administration's original recommended position reductions, which may be adjusted at the second public hearing, based on Commission direction regarding the Parking position reductions. Position Count FY 2007 - FY 2021 2,300 2,200 2,127 2,160 2,156 2,157 2 129 2,100 2,050 .. _._. .. -�69 2,068 2,000 . II .. _. 1 942 11,800,900 =AM Nam 1,700 618 II II II III II609 . 608 • III I I 585 600 II 624 II b20 ; 620 : 603 ; 640 1,500 , I 1I 582 1 521 1 5741 566 : 571 I1 MINION III N 1,500 I♦ MI 1,400 1.200 I I I IIIli III I I III 1.200 I I I II I II I III I I II 1,100 1,900 III II III III I II ■ I I III I NI 900 00It 700 1,5091 1,,1,1 1 ._ I I I I I ,. I ,H1 1.4591 1,53,51 1,536 1,5371 1 5261 ;,28 600 � . � :'3� =11111 '3'7111 1 MINI 500 400 • I U ■ II ■ I I III I I U 300 I I I ■ III ■ II I II II I I ■ III 200 ■ III II MINIM 100 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016•FY 2017 FY 2018'FY 2019 FY 2020 FY 2021 El Other Funds 618 609 608 582 521 574 . 566 571 585 600 • 624 620 620 • 603 640 ■General Fuld 1,509 • 1,441 1,399 1,345 1,273 1,322 1,337 • 1,371 1,442 I_469 1,536 1,536 1,537 1,526 1,428 i Total 2,127 2,050 2.007 1 927. 1.794 1 896. 1903 1,942 2,027 2,069 2,160 2,156 2,157 2,129 2,068 CORONA VIRUS RELIEF FUND Miami-Dade County has received an allocation from the Coronavirus Relief Fund (CRF) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. $100 million of that funding is being allocated for an award program for local municipalities. Of the $100 million, $75 million is for operational costs and $25 million for new municipal programs. Funds from this program may only be used to (1) cover costs that are necessary expenditures incurred due to the public health emergency with respect to COVID-19, (2) were not accounted for in the budget most recently approved as of March 27, 2020, and (3) were incurred during the period of March 1, 2020 through December 30, 2020. The County will consider reimbursement for COVID-19 related and incurred operating expenses, as well as certain new programs proposed by municipalities. The following are not eligible under the program: (1) equipment and capital expenses; (2) loss of revenue; (3) utility payment forgiveness. Page 48 of 281 Adopt Final Budgets for FY 2021 September 29, 2020 Page 25 Examples of eligible costs for the $75 million program include: • Costs to enable remote work • FEMA cost share (the 12.5% local cost component of FEMA PA) • Personnel costs for hours dedicated to mitigating or responding to COVID-19 • Contact tracing • Public health • Expenses to facilitate compliance with public health precautions Examples of eligible costs for the $25 million program include: • Rental and mortgage assistance programs • Job training • Childcare • Small business grants for business interruption The City of Miami Beach has executed an interlocal agreement with the County and as of September 8th has submitted approximately $13.8 million of year-to-date expenditures for potential reimbursement. Between now and December, additional COVID-19 related costs are estimated to be incurred that may also be eligible for reimbursement. Funding awards are pending, and periodic updates will be provided to the City Commission as to the status of these funds. Any funds received from the program would be one-time in nature and the Administration's recommendation would be to restore all reserve amounts in the General Fund and Resort Tax Fund that have been or will be used to balance the FY 2020 and FY 2021 budgets. Please note that virtually all the COVID-19 related expenses have been incurred in the General Fund and reserves in both funds have been used to cover budget shortfalls from the economic impact of COVID-19. Any funds over and above that amount are recommended to be put towards the General Fund reserve goal of 3 months, or 25% of total revenue, and/or the Resort Tax reserve goal of 6 months, or 50% of the 2% Resort Tax. CONCLUSION The Administration recommends adoption of the attached Resolution which adopts the final budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, Internal Service, and Special Revenue Funds budgets for FY 2021. Attachment A— FY 2021 "One-Time" Service Reductions and Efficiencies Attachment A— FY 2021 "Recurring" Service Reductions and Efficiencies Attachment B— FY 2021 "One-Time" Service Enhancements Attachment B — FY 2021 "Recurring" Service Enhancements JLM/JW/TOS Page 49 of 281 ATTACHMENT A FY 2021 ONE-TIME EFFICIENCIES AND REDUCTIONS Requested Recommended Year 2 PositionsY Efficiency/Reduction Fund Efficiency/ Efficiency/ Program Description Impact FT P Reduction Reduction CITYWIDE Furlough days for all employees in all bargaining units using a tiered approach based on employee salary: Employees earning$50,000 and less-1 day Citywide Furloughs General Fund $1,757,000 $1,757,000 $C Multiple Programs Employees earning between$50,001 and$60,000-2 days Employees earning between$60,001 and$70,000.3 days Employees earning between$70,001 and$80,000-4 days Employees earning greater than$80,000-5 days Furlough days for all employees in all bargaining units using a tiered approach based on employee salary: Employees earning$50,000 and less-1 day Citywide Furloughs Internal Service $150,000 $150,000 $0 Multiple Programs Employees earning between$50,001 and$60,000-2 days Employees earning between$60,001 and$70,000-3 days Employees earning between$70,001 and$80,000-4 days Employees earning greater than$80,000-5 days Furlough days for all employees in all bargaining units using a tiered approach based on employee salary: Employees earning$50,000 and less-1 day Citywide Furloughs Resort Tax $22,000 $22,000 $0 Multiple Programs Employees earning between$50,001 and$60,000-2 days Employees earning between$60,001 and$70,000-3 days Employees earning between$70,001 and$80,000-4 days Employees earning greater than$80,000-5 days Furlough days for all employees in all bargaining units using a tiered approach based on employee salary: Employees earning$50,000 and less-1 day Citywide Furloughs RDA $33,000 $33,000 $0 Multiple Programs Employees earning between$50,001 and$60,000-2 days Employees earning between$60,001 and$70,000-3 days Employees earning between$70,001 and$80,000-4 days Employees earning greater than$80,000-5 days Furlough days for all employees in all bargaining units using a tiered approach based on employee salary: Employees earning$50,000 and less-1 day Citywide Furloughs Enterprise $310,000 $310,000 $0 Multiple Programs Employees earning between$50,001 and$60,000-2 days Employees earning between$60,001 and$70,000-3 days Employees earning between$70,001 and$80,000-4 days Employees earning greater than$80,000-5 days • Page 50 of 281 ATTACHMENT A FY 2021 ONE-TIME EFFICIENCIES AND REDUCTIONS Requested Recommended Year 2 Positions 1 Efficiency/Reduction Fund Efficiency/ Efficiency/ Im act Program Description Reduction Reduction P PT 1 Furlough days for all employees in all bargaining units using a I tiered approach based on employee salary: Special I Employees earning$50,000 and less-1 day Citywide Furloughs Revenue $26,000 $26,000 SG Multiple Programs Employees earning between$50,001 and$60,000-2 days Employees earning between$60,001 and$70,000-3 days Employees earning between$70,001 and$80,000-4 days Employees earning greater than$80,000-5 days Citywide Travel and Training General Fund $430,000 $430,000 $0 Multiple Programs Freeze 80%of expenditures budgeted for training and travel Freeze Non-Essential Tuition General Fund $115,000 $1 15,000 $0 Multiple Programs Freeze expenditure budgeted for non-essential tuition Reimbursement Freeze reimbursement Citywide Hiring Freeze General Fund $2,799,000 $2,799,000 SG Multiple Programs Freeze vacant positions included in the budget,allowing for the flexibility to fill critical positions on an as-needed basis Freeze on Non-Essential Freeze budget for non-essential expenditures while the uncertainty Expenditures General Fund $4,000,000 $4,000,000 $0 Multiple Programs of revenues persists FIRE To reflect impact of COVID-19,temporarily reduce lifeguard hours Lifeguard and Boat Savings General Fund $329,000 $329,000 $0 Ocean Rescue during non-peak times and use of Ocean Rescue boat to weekends and special events. Page 51 of 281 ATTACHMENT A FY 2021 ONE-TIME' EFFICIENCIES AND REDUCTIONS Requested Recommended Year 2 Positions Efficiency/Reduction Fund Efficiency/ Efficiency/ Impact Program Description Reduction Reduction TOURISM&CULTURE Amended agreement with the GMCVB for one year to assist the City absorb the projected loss of resort tax revenue during FY 2021 due to the impact of COVID-19. Instead of a flat baseline fee with an incentive fee,the GMCVB will receive 10.5%from the proceeds Greater Miami Convention and of the 2%Resort Tax. This methodology will generate an estimated Visitors Bureau Agreement Resort Tax $2,600,000 $2,600,000 $0 Resort Tax-GMCVB savings of$2.6 million in FY 2021 based on the most current (GMCVB) Resort Tax projections. Converting the base fee into a percentage also provides downside protection to the City if the collections from the 2%Resort Tax come in below projection. This methodology allows the City to better manage the uncertainties related to the financial impact of COVID-19 in FY 2021. Miami Beach Visitor and Revised VCA agreement for one year to assist the City absorb the Convention Authority(VCA) Resort Tax $1,087,000 $1,087,000 $0 Miami Beach Visitor's projected loss of resort tax revenue during FY 2021. The VCA will Agreement and Convention Authority receive 2.5%instead of the 5%required in the City Charter from the proceeds of the 2%Resort Tax. Grand Total of Positions Recommended 0 0 ONE-TIME Requested Recommended Year 2 Fund Efficiency/ Efficiency/ Reduction Reduction Impact General Fund $9,430,000 $9,430,000 $0 $104,000 $104,000 $0 Internal Service impact(%based on FY 2020 Preliminary Allocations) $9,534,000 $9,534,000 SO Internal Service $150,000 $150,000 $0 Resort Tax $3,709,000 $3,709,000 $0 RDA $33,000 $33,000 $0 Enterprise $310,000 $310,000 $0 Special Revenue $26,000 $26,000 $0 Page 52 of 281 ATTACHMENT A FY 2021 RECURRING EFFICIENCIES AND REDUCTIONS Requested Recommended Year 2 Positions Efficiency/Reduction Fund Efficiency/ Efficiency/ Impact Program Description pr pT Reduction Reduction CAPITAL IMPROVEMENT PROJECTS(CIP) Impact of Reallocating Portion of Senior Capital Projects Coordinator General Fund $1 18,000 $1 18,000 $152,000 Construction Reduce cost burden to the Parking Fund by reallocating a portion of a Position from Parking Enterprise Management Senior Capital Projects Coordinator position to the General Fund. Fund Renegotiated Contract Savings- Body Camera Agreement General Fund $a 000 $6,000 $6,000 Multiple Programs Savings from renegotiation of body camera contract. ENVIRONMENT&SUSTAINABILITY Full-Time Assistant Environment& The tasks of the eliminated Assistant Director position will be Sustainability Director Position General Fund $136,000 $136,000 $178,000 1 Administration distributed among the remaining staff in the department to minimize (Vacant) the impact to operations. FINANCE Full-Time Financial Analyst 11 The tasks of the eliminated Financial Analyst II position will be Position(Filled) General Fund $91,000 $91,000 $116 000 1 Off-Duty Police distributed among the remaining staff in the department to minimize the impact to operations. FIRE Full Time Emergency Specialist The tasks of the eliminated Emergency Specialist position will be Position(Filled) General Fund $10 I,000 $101,000 $132,000 1 Multiple Programs distributed among the remaining staff in the department to minimize the impact to operations. Renegotiated Contract Savings- Body Camera Agreement General Fund $1,000 $1,000 $1,000 Prevention Savings from renegotiation of body camera contract. Page 53 of 281 ATTACHMENT A FY 2021 RECURRING EFFICIENCIES AND REDUCTIONS Requested Recommended Year 2 Positions Efficiency/Reduction Fund Efficiency/ Efficiency/ Im act I Program Description Reduction Reduction P FT PT FLEET MANAGEMENT Full-Time Fleet Management Elimination of Director position from consolidation of the Fleet Internal Service $215,000 $215 000 $280,000 1 Administration Management department to a division in the Property Management Director Position(Filled) department. Reclassification of an Office Associate IV position to a Senior Convert Full-Time Office Associate Administrative Manager position to effectively absorb workload from IV Position(Vacant)to Senior Internal Service -$27,000 -$27 000 i -$35,000 Administration position reductions associated with the consolidation of the Fleet Administrative Manager Position Management department to a division in the Property Management department. Eliminate Full Time Office Associate Elimination of Office Associate IV position from consolidation of the IV Position(Filled) Internal Service $70,000 $70,000 $90,000 1 Administration Fleet Management department to a division in the Property Management department. HUMAN RESOURCES/LABOR RELATIONS Full-Time Safety Officer Position The tasks of the eliminated Safety Officer position will be distributed (Filled) Internal Service $80,000 $80,000 $105,000 1 Safety among the remaining staff in the deportment to minimize the impact 14 to operations. Renegotiated Contract Savings- Internal Service $72,000 $72,000 $72,000 Multiple Programs Savings from renegotiation of Humana(Wellness)and Corvel Humana&Corvel (Workers Compensation)contracts for several programs. OFFICE OF THE CITY MANAGEF Full-Time Legislative Manager The tasks of the eliminated Legislative Manager position will be Position(Filled) General Fund $86,000 $86,000 $111,000 1 Multiple Programs distributed among the remaining staff in the department to minimize the impact to operations. OFFICE OF THE INSPECTOR GENERAL Impact of Reallocating Portion ofReduce cost burden to the Parking Fund by reallocating a portion of a Deputy Chief Auditor and Auditor Internal Service -$69,000 -$69,000 -$92,000 -1 OIG•Infernal Audit Deputy Chief Auditor and Auditor position to the new Inspector Positions from Parking Enterprise Fund General Fund. Page 54 of 281 ATTACHMENT A FY 2021 RECURRING EFFICIENCIES AND REDUCTIONS I Requested Recommended Year 2 I Positions Efficiency/Reduction Fund Efficiency/ Efficiency/ Program Description Reduction Reduction Impact FT PT PARKING The Parking department currently has approximately 704 parking pay stations for on-street and off-street metered parking.This reduction would remove all on-street(curbside)and off-street(lots)parking pay Parking Initiative#1-Remove All stations thus providing for the phone application(Parkmobile)as the On-street(curbside)and Off-street Enterprise $1,691,000 $1,691,000 $1,772,000 4 Meters only Parking payment option(Touchless Parking Payment Option).In (lots)Parking Pay Stations addition,it includes the elimination of four Full-time positions that maintain the pay stations,as well as repurposing of other Parking positions to performance maintenance in the City's garages. The Parking department currently hos approximately 704 parking pay Parking Initiative#1-Remove All Special stations for on-street and off-street metered parking.This reduction On-street(curbside)and Off-street Revenue $80,000 $80,000 $80,000 Meters would remove all on-sheet(curbside)and off-street(lots)parking pay (lots)Parking Pay Stations stations thus providing for the phone application(Parkmobile)as the only Parking payment option(Touchless Parking Payment Option). The Parking department currently has approximately 704 parking pay Parking Initiative#1-Remove All stations For on-street and off-street metered parking.This reduction On-street(curbside)and Off-street RDA $198,000 $198,000 $198,000 Meters would remove all on-street(curbside)and off-street(lots)parking pay (lots)Parking Pay Stations stations thus providing for the phone application(Parkmobile(as the only Parking payment option(Touchless Parking Payment Option). Due to the reduction in demand for parking and the recent pandemic, the Parking Department has been Forced to scale back projects and reduce services.As a result,this reduction would reduce Parking enforcement operations.This proposed reduction changes the status of 28 full-time Parking Enforcement Specialist positions and 5 full-time Parking Initiative#2•Reduce Dispatcher positions to part-time status,and eliminates 22 part-time Parking Enforcement Operations Enterprise $1,166,000 $1,166,000 $1,786,000 33 -7 Enforcement Parking Enforcement Specialist positions and 4 part-time Parking Dispatcher positions that are proposed to be replaced with an outside contracted services provider. This change would result in a model where 50%of enforcement is in-house,with the remainder contracted out to provide additional flexibility and resiliency to deal with high impact events and occasional shocks resulting in revenue downturns (COVID-19,Zika,hurricanes,etc.) Page 55 of 281 ATTACHMENT A FY 2021 RECURRING EFFICIENCIES AND REDUCTIONS Requested RecommendedYear 2 Positions Efficiency/Reduction Fund Efficiency/ Efficiency/ Impact Program Description Reduction Reduction FT PT The Parking Department has historically funded positions in other departments due to the demand and support required for parking operations.Due to the reduction in demand for parking and the recent pandemic,the Parking Department has been forced to scale Parking Initiative#3- back projects and reduce services.For this reason,this proposed Eliminate/Transfer Costs for Other Department Positions Funded by Enterprise $509,000 $509,000 $663,000 6 Multiple Programs reduction would eliminate three positions funded by Parking for the Parking Finance Department and one position funded by Parking for Property Management,as well as transfer a portion of one position funded by Parking for the Office of Capital Improvement Projects(CIP)to CIP and two positions partially funded by Parking for the Office of the Inspector General)OIG)to the OIG's office. Due to the reduction in demand for parking and the recent pandemic, Parking Initiative#4A- the Parking Department has been forced to scale back projects and Eliminate/Reduce Parking Enterprise $1,163,000 $1,163,000 $1,165,000 Multiple Programs reduce services.As a result,this reduction would reduce Parking Operations Services and Activities services and activities related to the maintenance and operation of the City's municipal garages and lots. Due to the reduction in demand for parking and the recent pandemic, the Parking Department has been forced to scale back projects and Parking Initiative#4B-Grounds reduce services.As a result,this reduction would reduce the level of Maintenance Agreement Enterprise $277,000 $277,000 $277,000 Multiple Programs services for grounds maintenance in the City's parking facilities from 36 to 24,as well as recognize the projected savings from the new Greenspace Management cost proposal anticipated to be implemented in FY 2021. Due to the reduction in demand for parking and the recent pandemic, the Parking Department has been forced to scale back projects and Parking Initiative#4B-Grounds reduce services.As a result,this reduction would reduce the level of Special Maintenance Agreement(7th Street $80,000 $80,000 $80,000 Multiple Programs services for grounds maintenance in the City's parking facilities from Garage Fund) Revenue 36 to 24,as well as recognize the projected savings from the new Greenspace Management cost proposal anticipated to be implemented in FY 2021. Due to the reduction in demand for parking and the recent pandemic, Parking Initiative#413-Grounds the Parking Department has been forced to scale back projects and reduce services.As a result,this reduction would reduce the level of Maintenance Agreement(RDA Anchor and Pennsylvania Avenue RDA $11,000 $11,000 $11,000 Multiple Programs services for grounds maintenance in the City's parking facilities from Garage Funds) 36 to 24,as well as recognize the projected savings from the new Greenspace Management cost proposal anticipated to be implemented in FY 2021. Page 56 of 281 ATTACHMENT A FY 2021 RECURRING EFFICIENCIES AND REDUCTIONS Requested I Recommended I Year 2 Positions Efficiency/Reduction Fund Efficiency/ I Efficiency/ Impact Program Description Reduction Reduction FT PT Due to the reduction in demand for parking and the recent pandemic, the Parking Department has been forced to scale back projects and reduce services.As a result,this reduction would reduce the level of Parking Initiative#4C-Reduce Sanitation services utilized by the Parking Department for the first Sanitation Level of Services and Enterprise $556,000 $556,000 $297,000 Multiple Programs quarter of FY 2021 while the procurement process for an outside Outsource Functions contractor is taking place.Subsequent to completion of the procurement process,an outside contractor is anticipated to be used by Parking for Sanitation services at 80%of prior year service levels beginning in the second quarter of FY 2021. Due to the reduction in demand for parking and the recent pandemic, Parking Initiative#5-Reduce the Parking Department has been forced to scale back projects and Parking Positions due to Reduction reduce services.This reduction would eliminate 6 operational and of Services and Activi Utilization Enterprise $500,000 $500,000 $650,000 6 Multiple Programs y/ administrative positions and convert the two Assistant Parking Director in Municipal Garages positions to a Senior Parking Operations Manager and Contract Compliance Administrator. PARKS&RECREATION Renegotiated Contract Savings- General Fund $500.000 $500,000 $500,000 Parks Grounds Savings from renegotiation of grounds maintenance contract. Parks Landscape Agreement Maintenance POLICE This reduction reflects the cost impact from civilianization of two Civilianization of Police Positions General Fund $120,000 $120,000 $247,000 Multiple Programs sworn positions in the Technical Services division. An additional five positions are also being considered for civilianizotion over the next 12 to 18 months. Police Staffing Plan Changes General Fund $795,000 $795,000 $795,000 Multiple Programs Savings from less overtime due to staffing plan changes which include adding more officers to the daily staffing configuration. Renegotiated Contract Savings- Body Camera Agreement General Fund $59,000 $59,000 $59,000 Multiple Programs Savings from renegotiation of body camera contract. Page 57 of 281 ATTACHMENT A FY 2021 RECURRING EFFICIENCIES AND REDUCTIONS Requested Recommended 2 Positions Efficiency/Reduction Fund Efficiency/ Efficiency/ impact Program Description Reduction Reduction FT PT PUBLIC WORKS Renegotiated Contract Savings- Contract Landscape Greenspace Maintenance General Fund $795,000 $795,000 $795,000 Maintenance Savings from renegotiation of grounds maintenance contract. Agreement PUBLIC WORKS-SANITATION Due to a permanent reduction of$1.5 million of revenue from the Parking Fund,this reduction will eliminate 11 Sanitation positions in the Sanitation Fund,which is comprised of(2)Heavy Equipment Eliminate(11)Full-Time Sanitation Enterprise $559,000 $559,000 $719,000 11 Multiple Programs Operator I positions;(1)Municipal Service Worker Ill position;(5) Positions Municipal Service Worker II positions;and(3)Municipal Service Worker I positions. This reduction may result in decreased response time to service requests in areas such as RDA,NBRC&MXE and lower cleanliness scores. Due to a permanent reduction of$1.5 million of revenue from the Parking Fund,this reduction reduce temporary labor which may result Reduce Sanitation Temporary Labor Enterprise $506,000 i $506,000 $506,000 Multiple Programs in decreased response time to service requests in areas such as RDA, NBRC&MXE and lower cleanliness scores. Reduce Sanitation Operating Due to a permanent reduction of$1.5 million of revenue from the Expenditures Enterprise $145,000 $145,000 $145,000 Multiple Programs Parking Fund,this reduction would eliminate the Big Belly contract along with other miscellaneous reductions. Page 58 of 281 ATTACHMENT A FY 2021 RECURRING EFFICIENCIES AND REDUCTIONS Requested Recommended Year 2 Positions Efficiency/Reduction Fund Efficiency/ Efficiency/ Program Description Impact Reduction Reduction FT PT TRANSPORTATION Due to a permanent reduction of revenue from the Parking Fund and a significant loss of Resort Tax revenue from the impact of COVID-19, Eliminate Full-Time Office Associate Special $73,000 $73,000 $95,000 1 Multiple Programs the Transportation Department will eliminate an Office Associate IV IV Position(Filled) Revenue position. The tasks of the eliminated position will be distributed among the remaining staff in the department to minimize the impact to operations. Due to a permanent reduction of revenue from the Parking Fund and a significant loss of Resort Tax revenue from the impact of COVID-19, Eliminate Full-Time Transportation Special the Transportation Department will eliminate a Transportation Manager(Filled) Revenue $147,000 $147,000 $191,000 1 Multiple Programs Manager position. The tasks of the eliminated position will be distributed among the remaining staff in the department to minimize the impact to operations. Convert Full-Time Transportation Special Reclassification of a Transportation Analyst position to a Senior Analyst Position(Vacant)to Senior -$27,000 -$27,000 -$36,000 Multiple Programs Transportation position to effectively absorb workload from two Transportation Position Revenue position reductions. • Due to a permanent reduction of revenue from the Parking Fund and significant loss of Resort Tax revenue from the impact of COVID-19, Special the Transportation Department will be reducing the service level of the Trolley Operations $5,526,000 $5,526,000 $5,526,000 Multiple Programs trolley program as follows:from 18 hours of service to 12-14;25 Revenue vehicles to 15;frequency of 20 minutes to 30 minutes;and elimination of the 11th Street Loop and modification of the Belle Isle stop. Grand Total of Positions Recommended RECURRING Requested Recommended Year 2 Fund Efficiency/ Efficiency/ Impact Reduction Reduction General Fund $2,572,000 $2,572,000 $2,805,000 $238,000 $238,000 $293,000 Internal Service impact(%based on FY 2020 Preliminary Allocations) $2,810,000 $2,810,000 $3,098,000 Internal Service $341,000 $341,000 $420,000 Resort Tax $0 $0 $0 RDA $209,000 $209,000 $209,000 Enterprise $7,072,000 $7,072,000 , $7,980,000 Special Revenue $5,879,000 $5,879,000 $5,936,000 Page 59 of 281 ATTACHMENT B FY 2021 ONE-TIME ENHANCEMENTS Requested I Recommended i Year 2 Positions Enhancement Fund Program Description Enhancement Enhancement Impact FT pT ORGANIZATIONAL DEVELOPMENT PERFORMANCE INITIATIVES This enhancement commits to funding$250,000 for a pilot Early Childcare Pilot Program € program for early childcare pre-kindergarten stipend for the 2021- General Fund $0 $250,000 Education Initiatives 22 schoolyear,which would require fundingto be appropriated as (One-Timet 9 part of the City's FY 2022 budget. POLICE This enhancement request is to fund necessary overtime,rentals, security guards,and equipment to provide comprehensive police College Football Playoff services and resources for the 2021 National College Football Championship(One-Time) Resort Tax $900,000 $900,000 $0 Resort Tax Championship.The request amount is based on experience with past Super Bowls,Memorial Day,Spring Break and other high- impact events. PUBLIC WORKS DEPARTMENT-STORM WATER This enhancement request is to increase funding for rental of temporary pumps and accessories to fulfill the City Commission's request to increase deployment of portable temporary pumps Temporary Pumps during King Tides,Hurricane Season,and rain events.The amount Enterprise $418,000 $41 8,000 $0 Storm water Maintenance requested is for the deployment of 14 tem ora pumps for six 6 (One-Time) 9temporary P P ( j months.This is being submitted as a one-time request for FY 2021. The need for temporary pumps will be revaluated as part of the FY 2022 budget process. This enhancement request is to increase funding to address the Storm Water System Maintenance Backlog(One-Time) Enterprise $400,000 $400,000 $0 Storm water Maintenance backlog of maintenance for 48 existing injection wells to improve drainage and decrease flooding throughout the City. Page 60 of 281 ATTACHMENT B FY 2021 ONE-TIME ENHANCEMENTS Enhancement Fund Requested Recommended Year 2 Positions P Enhancement Enhancement Impact FT PT Pr ram Description PUBLIC WORKS DEPARTMENT-WATER This enhancement request is for the evaluation of the fire hydrants Fire Hydrant Density Evaluation Water System throughout the City's the water system,which serve as an essential Enterprise $150,000 $150,000 Management art of the firefighting process,as theyallow firefighters to access a (One-Time) 9 P 9 9 9 steady flow water supply during emergency operations. This enhancement request is to upgrade the City's infrastructure by Water Fuel Tank Enterprise $51,000 $51,000 $0 Water System replacing old diesel tanks that are corroding and inefficient so that (One-Time) Maintenance they are compliant with the Miami-Dade County Department of Regulatory and Economic Resources(DERM). TOURISM&CULTURE This enhancement allocates an additional$1.0 million of Cultural Arts Council(CAC)reserve in the FY 2021 budget to provide Additional COVID-19 Relief additional funding relief to Cultural Organizations in the City of Funding for Cultural Organizations Special $500,000 $500,000 $0 Grants Program Miami Beach impacted by COVID-19 as recommended by the Revenue CAC and supported by the City Administration. $500,000 is (One-Time) recommended for appropriation at the commencement of FY 2021 with the remaining$500,000 balance to be appropriated mid- year of FY 2021. Grand Total of Positions Recommended 0 0 ONE-TIME Fund Requested ommended Year 2 Enhancement nhancement Impact General Fund $0 $0 $250,000 $0 s $0 $0 Internal Service impact(%based on FY 2020 Preliminary Allocations) $0 $0 $250,000 Internal Service $0 $0 $0 Resort Tax $900,000 $900,000 $0 RDA $0 $0 $0 Enterprise $1,019,000 $1,019,000 $0 Special Revenue $500,000 $500,000 $0 Page 61 of 281 ATTACHMENT B FY 2021 RECURRING ENHANCEMENTS Requested Recommended Year 2 Positions Enhancement Fund Enhancement Enhancement Impact Program Description CITYWIDE This enhancement increases the total minimum living wage rate from $15.00 per hour including health benefits to$15.15 per hour Living Wage General Fun $19,000 Multiple Programs including health benefits,effective January 1,2021.The proposed increase is comprised of a 1%increase in the living wage rate and I 1%increase in the health benefits rote. This enhancement increases the total minimum living wage rate from $15.00 per hour including health benefits to$15.15 per hour Living Wage Internal Service $9,000 $9 000 $0 Multiple Programs including health benefits,effective January 1,2021.The proposed increase is comprised of a 1%increase in the living wage rate and 1%increase in the health benefits rate. This enhancement increases the total minimum living wage rate from $15.00 per hour including health benefits to$15.15 per hour Living Wage RDA $6,000 $6 000 $0 Multiple Programs including health benefits,effective January 1,2021.The proposed increase is comprised of a 1%increase in the living wage rate and 1%increase in the health benefits rate. This enhancement increases the total minimum living wage rate from $15.00 per hour including health benefits to$15.15 per hour Living Wage Enterprise $60,000 $60,000 $0 Multiple Programs including health benefits,effective January 1,2021.The proposed increase is comprised of a 1%increase in the living wage rate and 1%increase in the health benefits rate. -i This enhancement increases the total minimum living wage rate from $15.00 per hour including health benefits to$15.15 per hour Living Wage Special Revenue $30,000 $30,000 $0 Multiple Programs including health benefits,effective January 1,2021.The proposed increase is comprised of a 1%increase in the living wage rate and 1%increase in the health benefits rate. POLICE This enhancement is to establish a Public Safety Citizens on Patrol Volunteer Program to meet the changing needs of the community and Public Safety Citizens on Patrol further promote an enhancement of the City's Community Policing Volunteer Program General Fund $27,000 $27,000 $27,000 Multiple Programs 9 philosophy by having members of the new program assist in patrolling neighborhoods,parks,schools,and commercial areas as additional eyes in public spaces throughout the City. PROPERTY MANAGEMENT This enhancement request is for the addition of a full-time Admin Officer position in the Property Management Department to:(1) manage the day to day operations of the City's current Special Taxing District,as well as the additional two that will be transferred effective FY 2021 from Miami-Dade County;and(2)enhance Full-Time Admin Officer Position Internal Service $69,000 $69,000 $88,000 1 Special Taxing Districts property maintenance and services of the City's assets. It is proposed that this full-time position be split funded as follows• 50%Property Management and 50%split evenly between the 3 Special Taxing Districts Page 62 of 281 ATTACHMENT B FY 2021 RECURRING ENHANCEMENTS Requested Recommended Year 2 Positions I Enhancement Fund Program Description Enhancement Enhancement Impact FT PT PUBUC WORKS GENERAL FUND This enhancement is to allocate additional funding of$10,000 to Trap,Neuter,Vaccinate,and ! continue the Trap,Neuter,Vaccinate,and Release(TVNR)Program Release(TVNR)Program General Fund $10,000 $10,000 Cat Network for FY 2021 based on direction from the Finance and Economic Resiliency Committee at its July 17,2020 meeting. PUBLIC WORKS DEPARTMENT-SEWER This enhancement request is to enhance emergency maintenance Sewer Pump Emergency Sewer Maintenance and repairs for sewer pumping stations to address unplanned issues Enterprise $200,000 $200,000 $200,000 Maintenance Management such as sewer main breaks for the City's aging sewer infrastructure system. This enhancement request is for the Sewer System Evaluation Survey (SSES)program.SSES is a EPA issued Consent Decree program with requirements as outlined in Miami-Dade Code Chapter 24 for all SSES Cycle III,Phase I,II,&III Sewer System private and publicly operated Volume Sewer Customers to aim to Consent Decree Enterprise $400,000 $400,000 $400,CCC Maintenance eliminate or reduce l&I.SSES requirements are part of Domestic Wastewater Annual Operating Permit.Failure to comply with code will result in system failures(sewer system overflow,I&I);the system in moratorium status;and civil&/or criminal penalties per Domestic Wastewater Annual Operating Permit. Grand Total of Positions Recommended 1 0 RECURRING Fund Requested Recommended Year 2 Enhancement '' Enhancement Impact General Fund $56,000 $ $56,000 $37,000 $54,000 f: $54,000 $61,000 Internal Service impact(%based on FY 2020 Preliminary Allocations) $110,000 $110,000 $98,000 Internal Service $78,000 $78,000 $88,000 Resort Tax $0 $0 $0 RDA $6,000 $6,000 $0 Enterprise $660,000 - $660,000 $600,000 Special Revenue $30,000 $30,000 $0 Page 63 of 281 Os IN/Ad Al iv,?BEACH t CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARINGS SEPTEMBER 29, 2020 VIRTUAL CITY COMMISSION MEETIP C The September 29,2020 City of Miami Beach Commission Meeting will be held as a Virtual Meeting with the I-r nor.Commissioners, and City stall participatt ig through video conferencing.The Virtual City Commission Meeting will be oroadci s live on Miami Beach TV(MBTVti viewable on the City's webalte at https://www,mlamtbeachILgov/govemmenUmbtve as well as 1 Atlantic Broadband Cable channel 660,AT&T tl-verse channel 99.Hotwire Communications channel 395,and ROKU devil on PEG.TV channel, and on social media at https://wwwlacebook.eom/cityofmlamibeach.To participate or provide common .,the public may join the Virtual City Commission Meeting al:hops://us02web.zoom.us/i/82602220652 or via telephone at 1..12.626.6799(U.S.)or 888.475.4499(Toll Free).The Webinar ID is:82602220652e.Members of the public wanting to speak a I a Item Outing the Virtual City Commission Meeting,must dick the'raise hand"Icon if using the Zoom app or press'9 on the tel iphms to raise their hand. NOTICE IS HEREBY GIVEN that the following public hearings will be heard by the Mayor ono City Commissioners of the City of Miami Beach,Ftortda,on September 29,2020 at the totiowing tknes,or as soon thereafter ac the natter cae be heard: 5:01 nee.Second Reading Public Hearing A RESOLUTION OF THE MAYOR AND CRY COMMISSION OF THE CITY OF MIAMI BEACH. FLORIDA,ADOPTING: 1)THE FINAL AD VALOREM MILLAGE OF 5.7288 MILLS FOR FISCAL YEAR 2021 FOR GENERAL OPERATING PURPOSES,WHICH IS TWO AND EIGHT TENTHS PERCENT(2,8%)MORE THAN THE'ROLLED-BACK'RATE OF 5.5126 MILLS:AND 2)THE DEBT reee SERVICE MILLAGE RATE OF 0.3227 MILLS.This Resolution is being heard pursuant to Sections §§ '66.041 and 200.066 ES. inquiries may be directed to the Office of Budget&Performance Improvemen!at 305.673.75/0. $,Q/Dan.Second Reading Public Hearing Tf A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FINAL BUDGETS FOR THE GENERAL.G.O.DEBT SERVICE,RDA AD VALOREM TAXES,ENTERPRISE,INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FOR FISCAL YEAR 2021. this Resolution is being heard pursuant to Sections§§ 166.041 end 200.065 ES Inquiries may be directed to the Office of Budget&Performance Improvement at 305.673.7510. 5:02 sem.Second Readmit Public Hearing A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL AD VALOREM MILLAGE RATE OF 0.7497 MILLS FOR FISCAL YEAR 2021 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT,WHICH IS TWO AND TWO TENTHS PERCENT(2.2%)LESS THAN THE"ROLLED-BACK"RATE OF 0.7666 MILLS.This Resolution is being heard pursuant to Sections§§166.041 and 200.065 F.S.Inquiries maybe directed to the Office of Budget&Performance Improvement et 305.673.7510 55:02 rem.Second Reading Public Hearing A RESOLUTION OF THE BOARD OF DIRECTORS OF THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT ADOPTING THE FINAL.OPERATING BUDGET FOR FISCAL YEAR 2021.Ns Resolution is being heard pursuant to Sections§§ 166041 and 200.065 ES.Inquiries may be directed to the Office of Budget&Performance Improvement al 305.673.7516. 5:03 am.Second Reading Public Hearing A RESOLUTION OF THE MAYOR AND CiTY COMMISSION OF THE CITY OF MIAMI BEACH,FLORIDA,ADOPTING THE FINAL CAPITAL IMPROVEMENT PLAN FOR FISCAL YEARS 2021-2025 AND ADOPTING THE CITY OF MIAMI BEACH FINAL CAPITAL BUDGET FOR FY 2021,This Resolution is being heard pursuant to Sections§§168.041 and 200.065 F.S.Inquiries may be directed to the Office of Budget&Performance improvement at 305.673.7510. k tNTERESTED PARTIES are invited to lake part in this meeting or be represented by an agent.The public may submit written comments by sending an email to'.CltyClerkkvmlamlbeach0,gov by 5:00 p.m.the day before the Virtual City Commission Meeting, Please tdentlfy the Agenda limn Number In the email subject line.Emalls received will be forwarded to the Mayor and Commissioners and wilt be Included as a part of the meeting record. Copies of Agenda Items are available for public inspection al:https:Nwetw.miamibeach0.gov/c8yhall/cityclerk/agenda-archive- main-page-2e This meeting,or any Item therein,may be continued,and under such circumstances,additional legal notice need not be provided. Pursuant to Section 286,0105,Fie Stat.,the City hereby advises the public teat It a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing,such person must ensure that a verbatim record of the proceedings Is made,which record includes the testimony and evidence upon which the appeal Is to be based. This notice does not constitute consent by the City for the Introduction or admission of otherwise inadmissible or Irrelevant evidence,nor does it authorize challenges or appeals not otherwise allowed by law. To request this material tri alternate format, alga language Interpreter (ilve-day notice required), information on access for persons with disabilities.andior any accommodation to review any document or participate In any City-sponsored proceedings, call 300.604.2489 and select 1 for English or 2 for Spanish,then option 6;TTY users may call via 711(Florida Relay Service). AUDIO/VISUAL PRESENTATIONS Members of the public may present audio/visual(AV)materials relating to Agenda Items at Virtual City Commission meetings by utilizing the City's AV equipment,provided that materials are submitted to the Department at Marketing and Communications by 8:30 a.m.,one(1j business day prior to the meeting.Advance submittal of a presentation MU allow the Communications Department to plan for the use of the appropriate AV equipment.AV materials must be submitted via email at communicationseimlamibeachtl.gov. The body of the email must include a notation listing the name or group.contact person,daytime telephone number,email address. description/title of the presentation,and Agenda Item Title as well as the Agenda Item Number.Please reference"Audio/Visual Material"in the email subject tine.Acceptable formats for electronic submission are.pol..ppt..pptx,.pps,.ppsx.mine.avi,and o .MOV.(Note that.pdf Is the preferred format for PowerPoint presentations.) cc Please note that Governor DeSantls'Executive Order Number 20-69,as extended by Executive Orders 20-121,20-123.20-139, co▪ 0 20-150,and 20-193,suspended the requirement of Section 112.286,Florida Statutes,the Florida Sunshine Law,that a quorum ier ea p must be present In person,and that a local government body meet at a specific pubic place.The Executive Order also allows local bat see government bodies to utilize communications media technology,such as telephonic and video conferencing for local government wi• = body meetings. Rafael E.Grenade,City Clerk City of Miami Beach Ad:09292020-01 Page 86 of 281