LTC 006-2005 (326-2005) Analysis of Budget to Preliminary Actual Revenues & Expenses for Yr. End 09/04
CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. . 326-2005
m
From:
Mayor David Dermer and Date: January 5, 2005
Members of the City Commission
Jorge M. Gonzalez C.
City Manager
ANALYSIS OF UDGET TO PRELIMINARY ACTUAL REVENUES AND
EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 2004, FOR GENERAL,
ENTERPRISE, AND INTERNAL SERVICE FUNDS.
To:
Subject:
ANALYSIS
We are presenting the following analysis to keep the Mayor and Commission informed of
the status of the FY 03/04 Budget to preliminary actual revenue and expenses for the year
ended September 30, 2004. The year-end budget to preliminary actual comparisons for
General, Enterprise, and Internal Service Funds are presented in the following pages. It
shows that overall, there will be an operating budget surplus of $1,298,386 (less than 1 %)
in the General Fund which will be used to fund the 11 % General Fund Reserve.
It must be noted that this actual is preliminary in nature due to the fact that the City's
financial records will not be closed until after the external auditors complete their review.
Historically, this occurs in April, with the City's Comprehensive Annual Financial Report
(CAFR) For the Year Ended September 30, 2004, available in May of 2005.
I. GENERAL FUND OVERVIEW
At this writing, operating revenues received from all sources by the General Fund total
$154,960,505, which is $2,598,069 more than the adopted budget of $152,362,436.
Operating expenditures incurred by all departments in the General Fund total
$153,662,119, which is $1,299,683 more than the adopted budget of $152,362,436.
Summing the revenue surplus of $2,598,069 and the overexpenditures of $1,299,683
equals a budget surplus of $1 ,298,386 (including open encumbrances of $1 ,532,056).
A summary of preliminary General Fund Revenues and Expenditures as of September 30,
2004 follows:
Budget
General Fund FY 03/04
Revenues $ 152,362,436
Expenditures 152,362.436
Surplus/(Deficit) $ 0
Prelim Actual/Ene
as of 12/17
$ 154,960,505
153,662,119
$ 1,298,386
Budget! Actual
Over/(Under)
$ 2,598,069
1,299,683
$ 1,298,386
Note: * Includes current year encumbrances totaling $1,532,056.
For a detail of General Fund Revenues and Expenditures by category and classification,
see "Attachment A". Detailed comments on those revenue and expenditure categories with
significant variance are shown below.
General Fund Operating Revenues
As of September 30,2004, revenues collected of $154,960,505 represent a surplus of
$2,598,069 or 2%.
1. Ad Valorem Property Taxes - Year-end collections of $68,872,936 are $622,202
or 1 % over the budget creating a surplus of $622,202.
2. Other Taxes - This category includes franchise and utility taxes on services which
are sensitive to local economic indicators. Based on actual collections of
$20,068,846 a surplus of $625,796 or 3% resulted at year-end. This was due to an
increase in revenues from taxes on electricity.
3. Licenses and Permits - This category includes licenses and building and special
use permits, Based on actual collections of $13,092,903, a surplus of $2,088,998
or 19% resulted at year-end. This is primarily due to higher than anticipated
revenues from occupational licenses, certificates of use and certificates of
occupancy.
4. Intergovernmental - This category includes state-shared revenues such as
cigarette, gas, and sales taxes. Based on actual collections of $11,363,545, a
shortfall of $1 00,455 or 1 % resulted at year-end. This is mainly due to a decrease in
local option gas tax revenue collections.
5. Charges for Services - This category includes admissions at recreational centers
and facilities, and fees for fire rescue services. Based on actual collections of
$5,455,965, a shortfall of $ 470,940 or 8% resulted at year-end. This is mainly due
to a decrease in fire rescue revenues and lower than expected revenues from park
sponsorships.
6. Fines and Forfeits - This category includes traffic citations, and code and fire
violation fines. Based on actual collections of$1 ,699,537, a shortage of $59,140 or
4% resulted at year-end. This is due to a decrease in fire and code enforcement
violation revenues. Anticipated revenues from traffic ticket surcharges and police
cost recovery are pending final resolution with the County.
7. Interest - This category includes interest income from City investments. Based on
actual collections of $2,159,747, a shortage of $640,253 or 23% resulted at year-
end. This is primarily due to lower than anticipated interest rates during the first half
of the fiscal year.
8. Rents and Leases - This category includes rents and leases on City-owned
facilities such as South Pointe Park Restaurant, Old City Hall, and others. Based on
actual collections of $2,444,766, a shortage of $32,619 or 1 % resulted at year-end.
This is primarily due to lower than anticipated revenues from various facilities.
9. Miscellaneous -This category includes concessions, planning fees, and other
reimbursements. Based on actual collections of$5,916,663, a shortage of$163,711
or 3% resulted at year-end. This is due primarily to lower than expected revenues
from construction management charges to capital projects.
10. Other - This category includes interfund transfers from Internal Service and
Enterprise Funds to reimburse the General Fund for general and administrative
services provided. For the first time in several years, rates were raised by 5.8% to
match the growth in fiscal year 2004 General Fund expenses. This created a
surplus of less than 2% or $402,004.
11. Fund Balance - This category includes reappropriation of prior year encumbrances
totaling $326,187.
General Fund Operating Expenditures
As of September 30,2004, actual expenditures of $154,634,318 were 1% over budget or
$1,299,683. Significant variances to budget by General Fund department are discussed below.
1.
Building
Budget
FY 03/04
$4,568,255
Prelim Actual/Enc*
as of 12/17/04
$4,976,329
Budget/Actual
Over/(Under)
$408,074
This department is expected to spend 9% over its budget and generate a year-end deficit of
$408,074. This is due primarily to additional staffing approved at mid-year to meet the growing
service demands of the construction industry as well as computer system enhancements to
improve customer service. These costs were offset primarily from the Building Training/Capital
account as well as higher than anticipated revenues from permits.
2.
Capital Improvement Program
Budget Prelim Actual/Enc*
FY 03/04 as of 12/17/04
$2,276,274 $1,967,267
Budget/Actual
Over/(Under)
($309,007)
This department is expected to expend 86% of its budget and generate a year-end surplus of
$309,007 due primarily to unfilled vacant positions.
3.
Citywide Accounts
Budget
FY 03/04
$7,565,251
Prelim Actual/Enc*
as of 12/17/04
$9,220,411
Budget! Actual
Over/(Under)
$1,655,160
The Citywide Accounts are expected to expend 22% over their budget and generate a year-
end shortfall of $1,655, 160. This is due primarily to a mid-year appropriation of $2,000,000 for
the purchase of library books for the new regional library located on Miami Beach which was
offset by lower expenses for other citywide accounts.
4.
Fire
Budget
FY 03/04
$33,746,998
Prelim Actual/Enc*
as of 12/17/04
$34,039,416
Budget/Actual
Over/(Under)
$292,418
The totals for this department reflect the incorporation of the Ocean Rescue Division during
mid-year (formerly Beach Patrol Division of Parks and Recreation Department). This
department is projected to spend less than 1 % over its budget and generate a year-end deficit
of $292,418. This is primarily due to higher than anticipated cash buyouts of unused sick leave
balances as well as overtime usage.
5.
Neighborhood Services
Budget Prelim Actual/Enc*
FY 03/04 as of 12/17/04
$3,053,844 $2,899,180
Budget/Actual
Over/(Under)
($154,664)
The Neighborhood Services Department is expected to spend 95% of its budget and generate
a year-end surplus of $154,664 due primarily to vacant positions.
6.
Parks and Recreation
Budget Prelim Actual/Enc*
FY 03/04 as of 12/17/04
$19,561,995 $19,693,247
Budget/Actual
Over/(Under)
$131,252
The Parks and Recreation Department is expected to spend 1 % over its budget and generate
a year-end shortfall of $131,252 due primarily to prior year encumbrances that are pending
reappropriation.
7.
Public Works
Budget
FY 03/04
$5,698,044
Prelim Actual/Enc*
as of 12/17/04
$5,166,356
Budget/Actual
Over/(Under)
($531,688)
The Public Works Department is expected to spend 91 % of its budget and generate a year-
end surplus of $531 ,688 due primarily to vacant positions.
8.
Tourism & Cultural Development
Budget Prelim Actual/Enc*
FY 03/04 as of 12/17/04
$674,329 $537,179
Budget/Actual
Over/(Under)
($137,150)
This department is expected to spend 80% of its budget and generate a year-end surplus of
$137,150 due primarily to a vacant publicist position.
Note: * Includes encumbrances.
II. ENTERPRISE FUNDS
The City accounts for proprietary operations in Enterprise Funds. Convention Center, Parking,
Sanitation, Sewer, Stormwater, and Water are included within this grouping. Based upon our
review, all funds operated within budget or at a significant surplus. For a detail of Enterprise
Fund Revenues and Expenses by department, see "Attachment B."
III. INTERNAL SERVICE FUNDS
The City accounts for those goods and services provided by one department to other
departments citywide on a cost reimbursement basis. Central Services, Fleet Management,
Information Technology, Property Management, and Risk Management (Self Insurance) are
included in this grouping. Based upon our review, all funds operated within budget. For a detail
of Internal Service Fund Revenues and Expenses by department, see "Attachment C."
CONCLUSION
This analysis of preliminary operating revenues and expenses for General, Enterprise, and
Internal Funds for the year ended September 30,2004, is presented as part of our on-going
efforts to keep the Commission informed of the status of the FY 03/04 Budget.
JMG/KGB/J1-6
Attachments A-C
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ATTACHMENT A
FY 2003/04 General Fund Operating Summary
REVENUES
Ad Valorem Taxes
Other Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeits
Interest
Rents and Leases
Miscellaneous
Other - Resort Tax contribution
Other - Non Operating revenues
Other - Fund Balance
TOTAL REVENUES
EXPENDITURES
Mayor and Commission
City Manager
Communications
City Clerk
Finance
Office of Budget & Perf. Improve.
Human Resources
Labor Relations
Procurement
City Attorney
Economic Development
Building
Planning
Tourism & Cultural Development
Bass Museum of Art
Neighborhood Services
Parks and Recreation
Public Works
Capital Improvement Program
Fire
Police
Citywide Accounts
TOTAL EXPENDITURES
Adopted
FY 2003/04
$ 68,250,734 $ 68,872,936
19,443,050 20,068,846
11,003,905 13,092,903
11,464,000 11,363,545
5,925,965 5,455,025
1,758,677 1,699,537
2,800,000 2,159,747
2,477,385 2,444,766
6,080,374 5,916,663
16,318,450 16,318,450
6,839,896 7,241,900
0 326,187
$152,362,436 $ 154,960,505
$ 1,164,053 $ 1,149,256
1,837,838 1,821,698
234,928 153,263
1,364,398 1,401,666
3,249,728 3,307,341
1,292,264 1,283,929
1,372,406 1 ,402,21 0
161,247 161,247
676,106 663,698
3,095,528 3,160,818
836,400 875,164
4,568,255 4,976,329
2,287,154 2,212,636
674,329 537,179
1,140,450 1,120,116
3,053,844 2,899,180
19,561,995 19,693,247
5,698,044 5,166,356
2,276,274 1,967,267
33,746,998 34,039,416
56,504,946 56,449,692
7,565,251 9,220,411
$152,362,436 $ 153,662,119
$ 622,202
625,796
2,088,998
(100,455)
(470,940)
(59,140)
(640,253)
(32,619)
(163,711 )
0
402,004
326,187
$ 2,598,069
$ (14,797)
(16,140)
(81,665)
37,268
57,613
(8,335)
29,804
0
(12,408)
65,290
38,764
408,074
(74,518)
(137,150)
(20,334)
(154,664)
131,252
(531,688)
(309,007)
292,418
(55,254)
1,655,160
$ 1,299,683
1$
o $
1 ,298,3861 I $ 1,298,3861
ATTACHMENT B
FY 2003/04 Enterprise Fund Operating Summary
CONVENTION CENTERlTOPA
REVENUES
CHARGES FOR SERVICES
Rents and Leases
Concessions
Telephones
Electrical Income
Services
Miscellaneous and Other
Subtotal
OTHER
Convention Development Tax
Interest Earnings
Retained Earnings
Subtotal
TOTAL REVENUES
EXPENSES
Payroll and Fringes
Operating
Electricity
Management Fees to GF
Depreciation
Capital
TOTAL EXPENSES
Adopted
FY 2003/04
$ 4,896,517 $ 4,535,642
1,080,611 1,446,036
382,050 294,617
1,049,692 868,550
514,602 335,336
452,731 505,393
$ 8,376,203 $ 7,985,574
$ 2,660,000 $ 2,660,000
48,850 34,712
3,075,000 3,291,110
$ 5,783,850 $ 5,985,822
$14,160,053 $ 13,971,396
$ 3,994,808 $ 4,506,791
5,236,245 4,474,664
1,154,000 1,174,341
700,000 740,600
3,075,000 3,075,000
0 0
$14,160,053 $ 13,971.396
1$
o $
$ (360,875)
365,425
(87,433)
(181,142)
(179,266)
52,662
$ (390,629)
$ 0
(14,138)
216,110
$ 201,972
$ (188,657)
$ 511,983
(761,581 )
20,341
40,600
0
0
$ (188,657\
o 1 I $
01
FY 2003/04 Enterprise Fund Operating Summary
PARKING
REVENUES
CHARGES FOR SERVICES
Meters
Parking Citations
Attended Parking
Permits
Preferred Lot
Garages
Space Rental
Valet
Towing Fees
Subtotal
OTHER
Interest Earnings
Miscellaneous
Subtotal
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Management Fees to GF
Depreciation
Contributions to Electrowave/Transp.
Debt Service
Capital
TOTAL EXPENSES
Adopted
FY 2003/04
$ 9,875,046 $ 10,724,488
3,000,000 3,411,426
1,635,896 1,859,160
625,000 935,719
519,932 586,233
3,725,053 3,979,978
266,584 257,152
410,000 434,002
120,000 161,594
$20,177,511 $ 22,349,752
$ 340,000 $ 270,000
197,990 111,359
$ 537,990 $ 381,359
$20,715,501 $ 22,731,111
$ 5,553,532 $ 5,206,368
7,033,787 6,554,300
2,300,000 2,433,400
1,633,409 1,633,409
1,794,667 1,650,000
2,186,106 2,186,106
214,000 208,434
$20,715,501 $ 19,872,017
$ 849,442
411,426
223,264
310,719
66,301
254,925
(9,432)
24,002
41,594
$ 2,172,241
$ (70,000)
(86,631\
$ (156,631 \
$ 2,015,610
$
$
1$
o $
2,859,09411 $ 2,859,0941
FY 2003/04 Enterprise Fund Operating Summary
SANITATION
REVENUES
CHARGES FOR SERVICES
Sanitation Fees
Franchise Tax-Waste Contractors
Franchise Tax-Right of Way
Trash Removal
Roll Off
Impact Fee-Construction
Impact Fee-Commercial
Violations/Fines
Subtotal
OTHER
Interest Earnings/Other
Retained Earnings
Stormwater Fund Contribution
Subtotal
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Garbage Contracts
Management Fees to GF
Depreciation
Debt Service - Loan Program
Capital
TOTAL EXPENSES
Adopted
FY 2003104
$ 2,821,444 $ 2,696,933
1,799,038 1,929,123
253,833 248,525
21,500 32,340
318,000 452,177
600,000 670,341
719,188 620,321
75,000 36,277
$ 6,608,003 $ 6,686,037
$ 30,000 $ 26,946
36,000 0
381,542 381,542
$ 447,542 $ 408,488
$ 7,055,545 $ 7,094,525
$ 3,403,418 $ 3,043,284
1,186,357 1,506,664
1,780,220 1,565,274
250,000 264,500
195,378 213,485
204,172 204,172
36,000 73,458
$ 7,055,545 $ 6,870,837
1$
223,68811 $
o $
$ (124,511 )
130,085
(5,308)
10,840
134,177
70,341
(98,867)
(38,723'
$ 78,034
$ (3,054)
(36,000)
0
$ (39,054
$ 38,980
$ (360,134 )
320,307
(214,946)
14,500
18,107
0
37,458
$ (184,708)
223,6881
FY 2003/04 Enterprise Fund Operating Summary
SEWER OPERATIONS
REVENUES
CHARGES FOR SERVICES
Sewer User Fees
Sewer Connection Fees
Sewer Fees-Cities
Subtotal
OTHER
Interest Earnings
Miscellaneous
Retained Earnings
Subtotal
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Sewer Treatment
Management Fees to GF
DERM Fee
Depreciation
Debt Service
Capital
TOTAL EXPENSES
Adopted
FY 2003/04
$ 23,825,000 $ 23,987,427
65,000 114,194
3,080,000 2,085,369
$ 26,970,000 $ 26,186,990
$ 95,000 $ 40,547
530,000 637,725
1,099,036 292,851
$ 1,724,036 $ 971,123
$ 28,694,036 $ 27,158,113
$ 1,666,193 $ 1,804,190
2,506,889 2,162,073
15,300,000 13,609,000
1,312,814 1,388,957
1,747,500 1,749,122
1,080,000 971,541
4,489,640 4,489,640
591,000 292,851
$ 28,694,036 $ 26,467,374
1$
690,73911 $
o $
$
$
$ (54,453)
107,725
806,185
$ 752,913
$ 1,535,923
$
$
690,7391
FY 2003/04 Enterprise Fund Operating Summary
STORMWATER
REVENUES
Stormwater Fees
Interest Earnings
Other
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Reserves
Contribution Sanitation
Management Fees to GF
Depreciation
Debt Service
Capital
TOTAL EXPENSES
Adopted
FY 2003/04
$ 7,730,000 $
60,000
115,000
$ 7,905,000 $
7,850,000
55,000
15,000
7,920,000
$ 1,003,205 $ 971,360
796,390 800,511
946,863 15,591
381,542 381,542
250,000 264,500
130,000 77,704
3,575,000 3,571,696
822,000 705,338
$ 7,905,000 $ 6,788,242
$ 120,000
(5,000)
(100,000'
$ 15,000
$
$
1$
o $
1,131,75811 $ 1,131,7581
FY 2003/04 Enterprise Fund Operating Summary
WATER OPERATIONS
REVENUES
CHARGES FOR SERVICES
Water Sales
Firelines
Water Connection Fees
Water Tappina
Subtotal
OTHER
Interest Earnings
Miscellaneous
Retained Earnings
Subtotal
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Water Purchase
Management Fees to GF
DERM Fee
Depreciation
Debt Service
Capital
TOTAL EXPENSES
Adopted
FY 2003/04
$17,590,000 $ 20,273,046
125,000 100,855
5,000 977
200,000 211,686
$17,920,000 $ 20,586,564
$ 32,000 $ 13,653
500,000 604,764
703,070 703,070
$ 1,235,070 $ 1,321,487
$19,155,070 $ 21,908,051
$ 2,950,162 $ 2,933,319
2,364,396 2,460,883
5,760,000 6,584,120
1,582,082 1,673,843
1,290,000 1,290,000
660,000 660,000
3,310,360 3,310,360
1,238,070 946,772
$19,155,070 $ 19,859,297
$ 2,683,046
(24,145)
(4,023)
11,686
$ 2,666,564
$ (18,347)
104,764
0
$ 86,417
$ 2,752,981
$ (16,843)
96,487
824,120
91,761
0
0
0
(291,298)
$ 704,227
1$
o $
2,048,75411 $ 2,048,7541
ATTACHMENT C
FY 2003/04 Internal Service Funds Operating Summary
CENTRAL SERVICES
REVENUES
Inter-departmental Charges
Interest
Retained Earnings
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Postage
Depreciation
Capital
TOTAL EXPENSES
Adopted
FY 2003/04
$
735,503 $
2,500
o
738,003 $
781,007
1 ,433
o
782,440
$
$ 267,546 $ 282,031
302,153 271,243
162,160 157,157
6,144 3,092
0 0
$ 738,003 $ 713,523
1$
68,9171 I $
o $
$
45,504
(1,067)
o
44,437
$
$ 14,485
(30,910)
(5,003)
(3,052)
0
$ (24,480
68,9171
FY 2003/04 Internal Service Funds Operating Summary
FLEET MANAGEMENT
REVENUES
Inter-departmental Charges
Sale of City Property
Other
Interest
Motor Fuel Tax Refund
Retained EarninQs
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Fuel
Depreciation
Debt Service
Capital
TOTAL EXPENSES
Adopted
FY 2003104
$ 4,840,444 $ 5,229,724
220,000 253,302
38,321 7,087
110,000 79,758
85,000 65,502
72,500 35,840
$ 5,366,265 $ 5,671,213
$ 1 ,225,769 $ 1,052,187
1,753,041 1,616,901
1,053,800 1,209,984
721,436 721,436
539,719 960,866
72,500 35,840
$5,366,265 $5,597,214
1$
73,9991 I $
o $
$ 389,280
33,302
(31,234)
(30,242)
(19,498)
i36,660'
$ 304,948
$ (173,582)
(136,140)
156,184
0
421,147
(36,660'
$230,949
73,9991
FY 2003/04 Internal Service Funds Operating Summary
I INFORMATION TECHNOLOGY
REVENUES
Inter-departmental Charges
Other/Interest
Retained Earninas
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Telephone
Depreciation
Debt Service
Capital
TOTAL EXPENSES
Adopted
FY 2003104
$ 8,390,795 $
80,000
2,533,000
$ 11,003,795 $
7,694,089
27,595
1,545,373
9,267,057
$ 3,174,348 $ 2,965,658
2,579,997 2,352,577
999,300 862,164
1,527,150 780,976
190,000 42,290
2,533,000 1,545,373
$ 11,003,795 $ 8,549,038
$
$
$
$
1$
o $
718,0191 I $ 718,0191
FY 2003/04 Internal Service Funds Operating Summary
PROPERTY MANAGEMENT
REVENUES
Inter-departmental Charges
Other/Interest
Construction Projects
Retained EarninQs
TOTAL REVENUES
EXPENSES
Payroll & Fringes
Operating
Depreciation
Capital
TOTAL EXPENSES
Adopted
FY 2003/04
$ 6,025,213 $ 6,399,438
11,000 2,718
634,737 338,181
15,000 13,635
$ 6,685,950 $ 6,753,972
$ 3,153,682 $ 3,111 ,798
3,330,768 3,181,367
185,000 231,301
16,500 13,635
$ 6,685,950 $ 6,538,101
1$
$ 374,225
(8,282)
(296,556)
(1,365'
$ 68,022
$
$
o $
215,871 I I $ 215,871 I
FY 2003/04 Internal Service Funds Operating Summary
Adopted
RISK MANAGEMENT FY 2003/04
REVENUES
Inter-departmental Charges $ 13,022,455 $ 13,082,731 $
Other/Interest 100,000 80,962
Retained Earnings 979,000 0
TOTAL REVENUES $ 14,101,455 $ 13,163,693 $
EXPENSES
Operating $ 501,949 $ 524,755 $
Administrative Fees 637,506 637,506
Non-OperatinQ 12,962,000 11,840,884
TOTAL EXPENSES $ 14,101,455 $ 13,003,145 $
1$ 0 $ 160,5481 1$ 160,5481