2008-26861 ResoRESOLUTION NO.
2008-26861
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING THE
PROPOSED MILEAGE RATES FOR FISCAL YEAR (FY)
2008/09, THE CALCULATED "ROLLED-BACK" RATE, AND
THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC
HEARING; FURTHER AUTHORIZING THE CITY MANAGER
TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE
COUNTY PROPERTY APPRAISER IN THE FORM
REQUIRED BY SECTION 200.065, FLORIDA STATUTES
WHEREAS, Section 200.065, Florida Statutes, has specified the method by which
municipalities may fix the millage rate and adopt an annual budget; and
WHEREAS, in the May 2008 Commission Retreat, the Commission established
priorities and requested more detailed budget briefings; and
WHEREAS, the Commission directed Administration to generally preserves recently
enacted City initiatives in support of community priorities; and
WHEREAS, at the July 10~', 2008 Finance and Citywide Projects Committee
meeting, the Committee directed staff to set the proposed operating millage in July at the
same rate as the current year; and
WHEREAS, the City of Miami Beach is required to advise the Miami-Dade County
Property Appraiser of the Proposed Millage Rates, the "Rolled-Back" Rate, and the date,
time, and place of the first public hearing.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following
recommendations of the Administration be and are hereby ratified for transmittal to the
Miami- Dade County Property Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Millage Rates for FY 2008/09
General Operating 5.5472 mills
Capital Renewal & Replacement 0.1083 mills
Total Operating Millage 5.6555 mills
Debt Service 0.2375 mills
Total Combined Millage 5.8930 mills
2) "Rolled-Back" Rate 5.6349 mills
zoo Y- z ~ p~ l
3) The first public hearing on the proposed millage rate and the tentative budget for FY
2008/09 shall be held on Monday, September 8, 2008 at 5:01 P.M., in the City
Commission Chambers, City Hall, 1700 Convention Center Drive, Miami Beach,
Florida.
PASSED and ADOPTED, this 16th day of July, 2008.
ATTEST: ~ ~ MAYOR
Matti Herrera Bower
C CLERK
Robert Parcher
APPROVED AS TO
FORM & LANGUAGE
R~ FO~ECUTION
"T~
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA SETTING
1) THE PROPOSED OPERATING MILEAGE RATE; 2) THE REQUIRED DEBT SERVICE MILEAGE RATE; 3) THE
CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST PUBLIC HEARING
TO CONSIDER THE MILEAGE RATES AND BUDGETS FOR FISCAL YEAR (FY) 2008/09; FURTHER
AUTHORIZING THE CITY MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA STATUTES
Intenaea outcome su
Ensure expenditure trends are sustainable over the long term; Improve the City's overall financial health and
maintain overall bond rating; Increase community satisfaction with city services
Supporting Data (Surveys, Environmental Scan, etc.):
In the 2007 survey, 46% of residents and 55% of businesses rated the value of city services fortax dollars paid
as excellent or good. The value of city services for tax dollars paid appeared as a key driver for residents'
perceptions of overall quality of life and city government meeting their needs; one of the areas most important
to resident's quality of life; and for businesses' perceptions of City government; its interest in hearing their
concerns, Miami Beach as a place to run a business, and whether the City is doing better, the same, or worse
versus a few years ago.
The Adopted FY 2007/08 General Fund Operating Budget reduced the City's total millage rate by 1.7760 mills
to a rate of 5.8970 mills, an unprecedented 23% decrease in millage, a reduction of $44 million in property tax
revenues based on the FY 2006/07 millage rate, and a reduction of $17.5 million (11 %) from FY 2006/07
budgeted property tax revenues. The adopted FY 2007/08 budget identified re-organizational efficiencies;
removed departmental contingencies; significantly reduced overtime, travel, training, subscriptions, supplies,
contracts, etc.; and strategically reduced services that were not as closely aligned with our strategic plan or
that had not been as successful in achieving desired results -reducing $20.7 million and almost 100 positions
(86 full-time and 7part-time).
Between FY 1999/2000 & FY 2007!08 City of Miami Beach Total Combined Millage decreased by 2.8 mills
(11.8%) to 5.6555. In FY 2007/08, total millage for all taxingjurisdictionstyithin the City of Miami Beach was
20.1746, and remains lower than most municipalities in Miami-Dade County.
Issue:
Shall the Mayor and City Commission adopt the resolution?
Item Summa
The Administration is recommending reducing the City's total combined millage rate to 5.8930 for FY 2008/09, a
reduction of 0.004 mills and 0.1 percent. The total proposed operating millage is maintained at 5.6555 mills,
including a general operating millage rate of 5.5472 and a General Fund Capital Renewal and Replacement millage
of 0.1083. The proposed debt service millage rate is reduced from 0.2415 to 0.2375, a reduction of 1.7 percent.
The rollback rate is the millage rate required to produce the same level of Citywide property tax revenues in FY
2008/09 as collected in FY 2007/08 and is calculated as 5.6349, 0.0206 mills less than the millage rate adopted for
FY 2007/08.
Adviso Board Recommendation:
Financial Information:
Source of Amount Account
Funds: ~
0 2
OBPI Total
Financial Impact Summary: In FY 2007/08, the operating millage rate for general City operations was
adopted at 5.6555. Based on the July 1, 2008 Certification of Taxable Value, 5.6555 mills would generate
approximately $144,519,307 million in tax revenues, an increase of $261,307 over current year budgeted property tax
revenues Citywide (General Fund, City Center RDA and the South Pointe area). However, the General Fund
property tax revenues will decrease by $1.4 million. This decrease in General Fund property tax revenue precludes
the Cit from absorbin normal increases in sala and frin es and other normal increases due to inflation.
Ci Clerk's Office Le islative Trackin
Sian-Offs•
D t Dire t Assistant Ci Mana er Mana er
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~ MIAMIBEACH
ENDA ITEM `Z
DATE " ~ d
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: July 16, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA SETTING 1) THE PROPOSED OPERATING MILEAGE
RATE; 2) THE REQUIRED DEBT SERVICE MILEAGE RATE; 3) THE
CALCULATED "ROLLED-BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE
OF THE FIRST PUBLIC HEARING TO CONSIDER THE MILEAGE RATES AND
BUDGETS FOR FISCAL YEAR (FY) 2008109; FURTHER AUTHORIZING THE CITY
MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065,
FLORIDA STATUTES.
SUMMARY
The Administration is recommending reducing the City's total combined millage rate to 5.8930,
a reduction of 0.1 percent. The total proposed operating millage is maintained at 5.6555 mills,
including a general operating millage rate of 5.5472 and a General Fund Capital Renewal and
Replacement millage of 0.1083. The proposed debt service millage rate is reduced from
0.2415 to 0.2375, a reduction of 1.7 percent. Further, the combined millage rate overall is
approximately 2.8 mills lower than it was in Fiscal Year 1999/00, and remains lower than most
municipalities in Miami-Dade County.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the attached
resolution which authorizes the City Manager to transmit the following information to the Miami-
Dade County Property Appraiser:
1) Proposed Millage Rates for FY 2008/09:
General Operating 5.5472 mills
Capital Renewal 8~ Replacement 0.1083 mills
Sub-Total Operating Millage 5.6555 mills (no change from FY 2007/08)
Debt Service 0.2375 mills (0.2415 last year. 1.7°/a decrease)
Total 5.8930 mills (5.8970 last year, 0.1 % decrease)
2) "Rolled-Back" Rate (Truth in Millage) 5.6349 mills
3) The first public hearing to consider the proposed millage rates and tentative budgets for FY
2008/09 shall be Monday, September 8, 2008 at 5:01 p.m., in the City Commission
Chambers, City Hall, 1700 Convention Center Drive, Miami Beach, Florida
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 2
The rollback rate is the millage rate required to produce the same level of property tax revenues
in FY 2008/09 as collected in FY 2007/08, net of the impacts of Florida Constitution
Amendment 1 approved in January 2008 which reduced the City's taxable values by $463
million and property tax revenues by approximately $2.6 million. Amendment 1 provided
constitutional changes to the homestead exemption and changes in the assessment of
affordable housing, working waterfronts and a $25,000 exemption of tangible personal property.
The rollback rate is calculated by dividing the prior year property tax revenues by the current
year property values, after new construction, major improvements, annexations, deletions and
tax increment districts are removed from current year property values.
Under the recently enacted State legislation, the City may elect to approve millage rates above
the roll-back rate up to the constitutional cap of 10 mills subject to an extraordinary vote by the
Commission or referendum:
• Millage up to 5.7436 (equivalent to a 4.15% increase in Property Tax revenues, net of the
impact of Amendment 1) requires majority of the approval of the Commission
• Millage up to 6.4643 (equivalent to a 10% increase in Property Tax revenues, net of the
impact of Amendment 1)requires atwo-thirds approval (5 of 7 votes) of the Commission
• Millage above 6.4643 requires unanimous approval of the Commission or referendum up to
the 10 mill cap.
BACKGROUND
Over the last several years, the City of Miami Beach has adopted budgets that provided tax and
fee relief while at the same time providing service levels enhancements (primarily in public
safety, cleanliness of rights-of-ways and other public areas, landscaping and beautification,
parks and cultural arts programming, and building/development functions) that address needs
and priorities identified by the community; and providing structural changes that enhance
capital funding and reserves.
Pursuant to State legislation, the Adopted FY 2007/08 General Fund Operating Budget reduced
the City's total millage rate by 1.7760 mills to a rate of 5.8970 mills, an unprecedented 23
percent decrease in millage as well as a reduction of $44 million in property tax revenues based
on the FY 2006/07 millage rate, and a reduction of $17.5 million (11 %) from FY 2006/07
budgeted property tax revenues. Based on an extensive review of each and every component
of City expenditures, the adopted FY 2007/08 budget identified re-organizational efficiencies,
removed departmental contingencies, and made significant reductions in items such as
overtime, travel, training, subscriptions, supplies, contracts, etc. for a savings of approximately
$5.6 million. Further, strategic reductions service were recommended where services were not
as closely aligned with our strategic plan or where they had not been as successful in achieving
desired results. Including the $5.6 million identified above, over $20.7 million and
approximately 100 positions were eliminated (86 full-time and 7part-time).
The development of the FY 2008/09 budget was again anticipated to be a challenging process
due to the combination of the impact of Amendment 1, the downturn in the real estate market,
the legislated limitation in property tax revenue growth to 4.15 percent based on statewide
income growth for the current year, and the significant prior year reductions already made by
the City as noted above. On the expenditure side, Current Service Levels expenditures
typically have increased between 6% and 8% annually due to salary and fringe increases and
other normal CPI adjustments. On the revenue side, based on the July 1, 2008 Certification of
Taxable Value from the Miami-Dade County Property Appraiser, even without the impact of
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 3
Amendment 1, property values only increased 1.7 percent from the 2007 tax roll certification to
the 2008 tax roll certification 0.7 percent was due to new construction. This compares to,
property tax increases between 14 and 30 percent per year in the last 5 years, and at least an 8
percent increase per year over the last 10 years.
In the longer term, the property tax revenue growth limitation will continue to have an impact. In
addition, property values may be reduced depending on how long the market takes to recover.
Both of these will contribute to an ongoing structural imbalance in the City's budget that must
be addressed. With the new limitation on property tax revenue growth as well as the downturn
in the economy, revenues are now projected to grow on average 3 percent per year (except for
FY 2009/10 due tonne-time projected construction impacts), while expenditures are projected
to grow at approximately 5% per year, even without any cost of living adjustments that may be
approved beyond FY 2008/09.
DECISION-MAKING PROCESS
The budget development process has included participation from within and from outside City
Hall. In follow-up to the City's first ever set of community satisfaction surveys in 2005, the City
conducted a set of follow-up community surveys in January 2007. Based on the 2007
Community Satisfaction Surveys, it appears that many of the recent service level
enhancements have been increasing community satisfaction levels with our services,
particularly businesses satisfaction; and resident satisfaction with cleanliness, availability of
family-friendly cultural activities, handling of special events (by South Pointe residents), and
increased satisfaction with the amount of information received from the City (when getting
information directly from the City).
A Commission Retreat was held on May 1 and 2 where preliminary budget information was
provided to the Commission and priorities were established. In addition, the Commission
provided direction regarding departments where more detailed budget briefings were desired.
Preliminary projections provided at the time of the Commission Retreat estimated a General
Fund shortfall of $12.5 million. This estimate included the impact of reduced property tax
revenues as well as anticipated growth in current service level expenditures (i.e. the cost of
providing the same level of service as in the current year). These increases included:
• Salary adjustments for cost of living, merit increases etc.
• Increases in health insurance and pension benefit costs
• Increases in operating costs, especially fuel
• Expenditures for the maintenance and service of newly completed capital projects
As with the preparation of the FY 2007/08 budget, departments were directed to analyze and
present their budget from two perspectives:
• The first was to once again review for potential efficiencies, reorganizations to reduce cost,
etc.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 4
• The second was to again perform a modified zero-based analysis of each department
budget, identifying potential services reductions versus core functions. Each of the potential
service reductions have stakeholders who would be impacted in some way and each of
them have been implemented in response to a need or priority in our community. For each
of the potential service reductions, departments provided the type of impact and the
magnitude of the impact. Core functions were defined as those functions which, if cut,
render it impossible for the department to provide service at any reasonable level.
Between June 17 and June 30, a series of budget briefings were held with the Finance and
Citywide Projects Committee, including a discussion of capital project priorities, as well as
reviews of Sanitation, Property Management, Greenspace Management, Capital Improvements
Office, and Code Compliance budgets. These budget briefings reviewed Current Service Level
expenditures and impacts of service level alternatives.
On July 1, 2008, the City received the Certification of Taxable Value from the Miami-Dade
County Property Appraiser. The certified value was not only lower than the City preliminary
estimate which had been based on the 4.15 percent revenue cap, but was also lower than the
June 1, 2008 preliminary value provided by the property appraiser. At the July 8 and July 10,
2008, Finance and Citywide Projects Committee meeting, an updated Current Service Level
estimate was provided to the Committee, reflecting a gap of $14.6 million. This estimate
incorporated the impact of the July 1, 2008 Certification of Taxable Value as well as
refinements to Current Service Level expenditures. In addition, proposed
efficiencies/reorganizations, potential service reduction alternatives, and potential revenue
enhancements were presented to the Committee for review. Department budget briefings were
also conducted with the City's Budget Advisory Committee.
Attachment A provides a summary of the efficiencies/reorganizations and service reductions
recommended by the Committee to address the $14.6 million gap. Despite these reductions,
the budget will continue our focus on providing "value of services for tax dollars paid" by
continuing to provide services to the community free of charge or at significantly reduced fees,
including free arts and movies in the parks, free access to pools and youth centers, reduced fee
recreation programming, etc.
STATUTORY REQUIREMENTS
FS 200.065, entitled "Method of Fixing Millage" establishes specific guidelines that must be
used by all local government entities in setting millage (property tax) rates. Under the statute,
the City is required, within 35 days of receipt of the "Certification of Taxable Value" (received
July 1, 2008), to advise the Miami-Dade County Property Appraiser of the proposed general
operating millage rate, the calculated "rolled-back" rate and the date, time, and place of the first
public hearing to consider the proposed millage rates and tentative budgets for FY 2008/09.
The required Debt Service millage rate must also be set at the same time.
After setting the proposed operating millage rate, the Commission may, at any time prior
to the final adoption, lower the rates by adjusting priorities. Increasing the millage rate
may only be accomplished by an expensive mailing and advertising process to every
property owner on Miami Beach.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 5
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2008, the City received the "2008 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is $26,898,698,386,
including $204,624,492 in new construction. The preliminary 2008 value represents an
increase of $48.6 million or 0.2 percent over 2007's June 29 Certification of Taxable Value of
$26,850,061,663 and is net of the $463 million impact of Amendment 1.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from $3,585,310,480, to $3,707,103,133, an increase of
$121,792,653, or a 3.4 percent increase in values over 2007 certified values. In addition,
assessed values within the geographic area formerly known as the South Pointe
redevelopment district increased from $3,452,319,916, to $3,684,154,640, an increase of
$231,834,724, or a 6.7 percent increase in values over 2007 certified values. As with Citywide
values, 2007 Taxable Values for City Center and the South Pointe area, were revised to
$3,465,784,338 and $3,414,814,691, adecrease of $119.5 million (3.3 percent) and $37.5
million (1.1 percent), respectively, as of July 1, 2008. As a result, taxable values in the areas
outside the City Center RDA/South Pointe area decreased by 1.6 percent, from $19.812 billion
to 19.507 billion, a decrease of $305 million.
Further, "2008 Certification of Taxable Value" from the Property Appraiser's Office, also
decreased the estimated "2007 Taxable Value" from $26.850 billion to $26.136 billion, a
decrease of $714 million. This difference between 2007's preliminary and final values
represents the loss of 2.7 percent due to appeals, value adjustments, etc., while prior year
differences have been less than 1 percent. This is in addition to typical discounts due to early
payments that have averaged about 3 percent per year. The majority of this loss occurred in
areas outside the City Center Redevelopment District and the South Pointe area, and is higher
than historic levels for the second year. As a result, property tax revenues in FY 2007/08 are
anticipated to be approximately $1.5 million less than budgeted.
DETERMINING THE OPERATING MILEAGE LEVY
The first building block in developing a municipal budget is the establishment of the value of
one mill of taxation, wherein the mill is defined as $1.00 of ad valorem tax for each $1,000 of
property value. For the City of Miami Beach, this value for each mill is determined by the 2008
Certification of Taxable Value and has been set at $26,898,698,386. Florida Statutes permit a
discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the
95 percent value of the mill is $25,553,763. The 95 percent value of 1 mill outside the City
Center RDA/South Pointe area is $18,666,667.
Impacts of Millage Roll-back
In FY 2007/08, the operating millage rate for general City operations was adopted at 5.6555.
Based on the July 1, 2008 Certification of Taxable Value, 5.6555 mills would generate
approximately $144,519,307 million in tax revenues, an increase of $261,307 over current year
budgeted property tax revenues Citywide (General Fund, City Center RDA and the South
Pointe area). However, the General Fund property tax revenues will decrease by $1.4 million.
This decrease in General Fund property tax revenue precludes the City from absorbing normal
increases in salary and fringes and other normal increases due to inflation.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 6
The rollback rate is the millage rate required to produce the same level of Citywide property tax
revenues in FY 2008/09 as collected in FY 2007/08, thereby forgoing any revenues associated
with growth in assessed values. The rollback rate is calculated by dividing the prior year
property tax revenues by the current year property values, after new construction, major
improvements, annexations, deletions, and tax increment districts are removed from current
year property values. For FY 2008/09, the resulting Roll-Back Rate is 5.6349, 0.0206 mills less
than the millage rate adopted for FY 2007/08.
DETERMINING THE DEBT SERVICE MILEAGE LEVY
The general obligation debt service payment for FY 2008/09 is approximately $6.1 million,
reflecting a decrease of $92,107. Base on the July 1, 2008 Certified Taxable Value from the
Property Appraiser, these bonds would require the levy of a reduced debt service millage of
0.2375 mills. This represents a reduction of 0.0040 mills.
COMBINING THE OPERATING AND DEBT SERVICE MILEAGE LEVIES
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the
City of Miami Beach for FY 2007/08 (final) and FY 2008/09 (preliminary) including RDA. It is
recommended that in the General Fund, 0.1083 mills of the total operating millage be dedicated
to renewal and replacement, resulting in $2.219 million in renewal and replacement funding.
FY 07108 FY 08109 Incl(Dec) %Incl(Dec)
City of Miami Beach Millage Rates
Operating 5.5173 5.5472 0.0299 1%
Capital Renewal 8~ Replacement 0.1382 0.1083 (0.0299) -22%
Debt Service 0.2415: 0.2375 (0.0040) -2%
Total ; 5.8970` 5.8930
If these recommended millage rates are tentatively adopted, then the City of Miami Beach's
overall combined tax rate millage will decrease by 0.0040 mills as compared to the current year,
as the total operating millage will remain unchanged and the debt service millage will decrease
by 0.0040 mills.
COMBINING JURISDICTIONAL OPERATING AND DEBT SERVICE MILEAGE LEVIES
City of Miami Beach property owners must also pay property taxes to Miami-Dade County, the
Miami-Dade County School Board, the Children's Trust, the South Florida Water Management
District, and the Florida Inland Navigation District.
As of the July 1 Preliminary estimates of Taxable value, the countywide tax rate is proposed to
increase from 4.5796 mills to 4.8834 mills. The library tax rate is proposed to decrease from
0.3842 mills to 0.3583 mills. The Children's Trust tax rate is proposed to decrease from 0.4223
mills to 0.4212 mills. Proposed tax rates for other jurisdictions are unavailable at this time and
are shown as unchanged.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 7
Using tax rates known at this time, the changes in tax rates are estimated as follows:
Of
. % Total
OVERLAPPING TAX MILEAGE ' FY 07108 FY 08!09 Incl(Dec) ;Inc/(Dec) Mills
City of Miami Beach Millage Rates
. _ ~
.
Operating 5.5173 5.5472 ..0.0299
Capital Renewal & Replacement 0.1382 0.1083 -0.0299
Debt Service 0.2415 _ 0.2375 -0.0040.....
Totali 5.8970'' 5.8930! -0.0040'. 0% 29%
Miami Dade County... _
_ _
Countywide
_ 4.5796 4.8834 ..
....0.3038......_
Library 0.3842 0.3583 _
-0.0259..._..
Debt Service __ 0.2850 0.2850 ...0.0000.....
Subtotal 5.2488 5.5267'... 0.2779 5% 27%
School Board 7.9480 _ 7.9480 0.0000 0% 39%
Children's Trust 0.4223
_ _ _ 0.4212
_
_ -0.0011
. 0% 2%
Other
0.6585 0.6585 0.0000.
... 0% 3%
Total 20.1746 20.4474 0.2739 1 % 100%
In FY 2007/08, the Miami Beach portion of the total tax bill was 29 percent. The
recommended millage rates for FY 2008/09 will place the Miami Beach portion of the tax
bill at 29 percent based on tax rates known at this time.
COMBINED MILEAGE LEVY IMPACT ON PROPERTY OWNERS
Homesteaded Property Owners
Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the
increase in assessed value of homesteaded property to the percentage increase in the
consumer price index (CPI) or three percent (3%), whichever is less. For 2007, the CPI has
been determined to be 4.1 percent and therefore, the increase is capped at 3% for increased
values as of January 1, 2008. The homestead exemption is applied after the increase in value
as follows.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 8
Below are examples on the impact of the reduced millage and the 3% increase in values based
on the prior tax rates.
Change in Taxes Paid by Homesteaded Properties
_.
FY 2~7 Assessed Value , $ 250,000 ' $ 336,000 ' $ 500,000 ' $ 1,000,000
Less $25,000 Exemption $ (25,-000) $ (25,000) $ (25,000) $ (25,000)
FY 2007 Taxable Value $ 225,000 ! $ 311,000 $ 475,000: $ 975,000
2007 Taxes __ _
City of Miami Beach $ 1,327 $ 1,834 $ 2,801 $ 5,750
Miami Dade County
_ $ 1,181 $ 1,632 $ 2,493 $ 5,118
Other
_ - -- $ 2,031 $ 2,808 $ _ 4,289 $ _..8,803
Total:. $ 4,539 ; $ 6,274 $ 9,583 $ 19,670
FY 2008 Assessed Value - 3% incr. $ 257,500 '! $ 346,080 ' $ 515,000 $ 1,030,000
Less $25,000 Exemption $ (50,000) $ (50,000) $ (50,000) $ (50,000)
FY 2008 Taxable Value $ 207,500 $ 296,080: $ 465,000 $ 980,000
2008 Taxes
City of Miami Beach $ 1,223 $ 1,745 $ 2,740 $ 5,775
Miami Dade County
_ _ $
_ 1,147
.. $ 1,636 $ 2,570 $ 5,416
Other
_ $ 1,873 $ 2,673 $ 4,198 ... $ 8,847..
Total $ 4, 243 ' $ 6, 054 ' $ 9, 508 $ 20, 038
$ Change in Taxes
City of Miami Beach $ (104) $ (89) $ (61) $ 26
Miami Dade County $ (34) $ 4 $ 77 $ 299
_ _
Other
.
. _
$
(158)
$
(135)
$
(91)`
$
_ _ _44
:
,Total' $ (296) $ (220) $ (75)' $ 368
Non-homesteaded Properties
Impacts for non-homesteaded properties will vary based on the increase or decrease in
assessed value for each individual property.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 9
Change in Taxes Paid by Non-Homesteaded Properties
FY 2007 Taxable Value $ 500,000 ' $1,000,000 $ 5,000,000 $10,000,000
2007 Taxes
CityofNiamiBeach $ 2,949 $ 5,897 $ 29,485 $ 58,970
Miami Dade County $ 2,624 $ 5,249 $ 26,244 $ 52,488
Other $ 4,514 $ 9,029 $ 45,144 $ 90,288
Total $ 10,087 $ 20,175 $ 100,873 $ 201,746
FY 2008 Taxable Value - No change ' $ 500,000 : $1,000,000 $ 5,000,000 $10,000,000
2008 Taxes
CityofCu~amiBeach $ 2,947 $ 5,893 $ 29,465 $ 58,930
Miami Dade Couniy $ 2,763 , $ 5,527 $ 27,634. $ 55,267
Other $ 4,514 $ 9,028 $ 45,139 $ 90,277
Total $ 10,224 $ 20,447 $ 102,237 $ 204,474
$ Change in Taxes
_
_
CityofMiami Beach $ (2) $ (4) $ (20) $ (40)
Miami Dade County
_ $ 139 $ 278 $ 1,390 $ 2,779
__
Other $ (1) $ (1) $ (5) $ (11)
- Total $ 136 $ 273 $ 1,364 $ 2,728
FY 2008 Taxable Value - 10% increase $ 550,000 $1,100,000 $ 5,500,000 $11,000,000
2008 Tames
CiiyofNfamiBeach $ 3,241 $ 6,482 $ 32,412 $ 64,823
Nkami Dade County
_ $ 3,040 $ 6,079 $ 30,397 $ 60,794
Other $ 4,965 $ 9,930 $ 49,652 . $ 99,305
Total $ 11,246 $ 22,492 $ 11 P,461 $ 224,921
$ Change in Taxes
CityofNtami Beach $ 293 $ 585 $ 2,927 $ 5,853
Ntami Dade County $ 415 $ 831 $ 4,153 $ 8,306
Other $ 451 $ 902 $ 4,508 $ 9,017
Total $ 1,159 $ 2,318 $ 11,588 $ 23,175
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 10
GENERAL FUND FY 2008/09 BUDGET STATUS
General Fund Revenues
Based on current projections, current service level non ad-valorem revenues are anticipated to
grow by approximately $1.8 million. The increased revenues include:
• Increased interest earning due to higher fund balance;
• Increased cable, wireless and electrical franchise revenues;
• Decreased intergovernmental revenues due to lower sales tax and motor fuel tax revenues;
Increased revenues anticipated from the November re-opening of Normandy Shores Golf
Course ($2,169,950);
• Decreased revenues from the Smith and Wollensky and Penrod's Pier Park lease
agreements due to lower restaurant revenues;
• Increased Miscellaneous revenues due to increased CIP charge-backs to offset increased
CIP office costs; and
• A reduction of RDA revenues previously used to offset RDA expenses in the General fund
as the expenses have been moved out of the General Fund.
Operating Millage
Property Tax Citywide $ 114,114,196 $ 113,091,960 $ (1,022,236)
Property Tax South Pointe 7,718,251 7,718,251 0
Capital Renewal and Replacement 3,500,531 3,083,236 (417,295)
Subtotal 125,332,978 123,893,447 (1,439,531)
Interest Revenues 6,200,000 6,310,000 110,000
Franchise Fees and Taxes 22,833,300 23,447,110 613,810
Licenses and Permits 14,941,425 14,941,425 -
Intergovernmental Revenues 10,713,940 10,001,420 (712,520)
Charges for Services 8,242,350 10,412,300 2,169,950
Rents and Leases 4,371,150 4,221,150 (150,000)
Miscellaneous 7,479,915 7,604,595 124,680
Resort Tax 20,696,309 20,696,309 -
All Other Sources" 9,813,170 9,491,296 (321,874)
Subtotal 105.291,559 107,125,605 1,834,046
"Fines & Forfeits & Other
Expenditures Projections
Historically, Current Service Levels expenditures have increased between 6% and 8% annually
due to salary and fringe increases and other normal CPI adjustments to other operating
expenses.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 11
In FY 2008/09 Current Service Level expenditures are projected to increase by $15 million, (an
increase of 6.5 percent). Major drivers of expenditures in FY 2008/09 continue to be:
Increases in salaries and fringes due to previously approved 4% COLA increase as well
as average merit/step increases of 3%;
Increases in benefit and overtime costs for the following reasons -
o Increases in pension contributions for the Fire and Police Pension based on
the actuarial estimates ($2,413,792);
o Decreases in the General fund share of other pension contributions due to a
partial "fresh-start" allowing the City to take advantage of accumulated savings
($776,051);
o Increases in health insurance, based on a 15% cost increase ($1,268,564);
and
o Increased in overtime and other fringes in concert with the increases noted
above.
Current Service Level expenditure projections for FY 2008/09 also include:
• Increases in other internal service costs primarily due to increases in fuel ($789,700),
Information Technology, and similar growth in personnel costs as in the General Fund;
• Increases in various other operating costs Citywide based on normal inflationary growth
($549,702);
• Expenditures associated with 11 months of Normandy Shores Golf Course operation are
also included in Current Service Level Expenditures as compared to 3 months of operation
as well as grow-in costs budgeted in FY 2007/08 ($445,812);
• Service and maintenance .costs for newly completed capital projects including the North
Beach Recreational Corridor and South Pointe Park ($766,034); and
• Reductions in the transfer to the renewal and replacement fund in concert with the reduced
revenues noted above.
Current Service Level expenditures also reflect no additional transfers to the 11 percent
Emergency Reserve as current reserve levels are sufficient to fund the 11 percent reserve for
the proposed FY 2008/09 Operating Budget. However, reserves will fall short of the 17%
emergency and contingency goal in the financial policy adopted by the Commission in
September 2006. This will be funded with year-end surplus from FY 2007/08, if any exists, but
will be funded after the 50% of surplus required fro the Capital Reserve and any amounts due
to be held for the Building development process.
Salaries (including COLA & Merits/Steps) $ 98,317,840 $ 105,123,719 $ 6,805,879
Benefits and Overtime 56,172,268 59,733,773 3,561,505
Operating Expenses 25,885,902 26,435,604 549,702
Internal Services 31,705,997 33,383,160 1,677,163
Transfer to Renewal and Replacement 3,500,531 3,083,236 (417,295)
Other Transfers 12,680,000 12,680,000 -
Capital 342,677 342,677 -
Debt Service 2,019,322 2,019,322 -
Maintenance & Service of New Projects - 2,777,743 2,777,743
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 12
The net effect of these changes in revenues and expenditures is a gap of approximately $14.6
million, prior to any efficiency reductions, reorganizations, service reductions, etc.
ADDRESSING THE GAP
Based on direction provided by the Finance and Citywide Projects Committee on July 8 and
July 10, 2008, approximately $8.8 million in expenditure reductions have been identified (in
addition to the $20.7 million in reductions identified in the FY 2007/08 budget). Further, an
additional $1.2 million in revenue enhancements have been identified, leaving a remaining gap
of approximately $4.5 million.
As discussed at the July 8th Finance and Citywide Projects Committee meeting, it is anticipated
that this can be addressed by a combination of factors:
• Refinement of health insurance estimates;
• Refinement of administrative and management fees paid by non-General Fund
departments for support services provided by the General Fund;
• Further savings from service level reductions which need to be refined:
o Greenspace management level-of-service reductions from B to C
o Closing each of the pools one day a week during the winter months;
• Potential further savings from service level reductions and revenue enhancements on
which the administration needs further guidance:
o Re-spacing lifeguard stands and reducing the total number of lifeguard stands
o Reductions to funding of various Citywide accounts
o Increased sidewalk fee revenues;
• Increased transfers of resort tax revenues due to projected increased receipts anticipated
for the next fiscal year to be used to offset tourism-related expenses in the General Fund;
• Further reductions in the pay-as-you-go fund, based on the prioritization of capital projects
at the June 30, 2008 Finance and Citywide Projects Committee meeting; and
• Additional use of South Pointe/CDT funding for operating in lieu of capital projects, based
on the prioritization of capital projects at the June 30, 2008 Finance and Citywide Projects
Committee meeting.
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 13
As part of this effort, key enhancements made to the operating budget in prior years in
response to community priorities as directed at the Commission Retreat were preserved,
including:
• Enhancements in sanitation, maintenance of right-of-way landscaping and up-lighting, etc.,
family-friendly cultural activities, communications, enhanced green space management
etc. ;
• Elimination of most park fees and expansion of free programs;
Renewal and replacement funding to maintain our facilities; and
Capital funding through pay-as-you-go and capital reserve.
Further, rather than select easy fixes for FY 2008/09 alone, the City continues to consider the
long term financial sustainability of the City, as the City will continue to be subject to growth
constraints each year going forward. And there may be additional legislated changes going
forward.
FIRST PUBLIC HEARING
The first public hearing on the proposed millage rates and tentative budgets for FY 2008/09
must be held no later than 80 days (September 18th) or earlier than 65 days (September 3rd)
from the start of the TRIM ("Truth In Millage") calendar (July 1st). Other guidelines are: 1) the
public hearing cannot be scheduled on a Sunday or on those days utilized by Miami-Dade
County or the Miami-Dade County School Board for their public hearings; and 2) if on a day
other than Saturday, the public hearing must be after 5:00 P.M.
Based on these guidelines, the first hearing must be held between September 3rd and
September 18th. These dates are unavailable for the following reasons:
September 7 and 14 Sundays
September 4 and 18 Proposed dates for Miami-Dade County Public
Hearings
September 10 Miami-Dade County School Board Public
Hearing
Of the remaining days, it is recommended that the first public hearing be set for Monday,
September 8, 2008 at 5:01 P.M., in the City Commission Chambers, City Hall, 1700 Convention
Center Drive, Miami Beach, Florida.
ACKNOWLEDGEMENTS
The development of this year's Proposed Operating Budget has taken once again been
challenging and involved significant time, energy, and hard work. I would like to thank Mayor
Herrera Bower, and the Members of the Miami Beach City Commission, for your continued
guidance, support and leadership with the budget process and in helping to accomplish so
much on behalf of our residents and for the entire Miami Beach community. I would also like to
recognize our employees for their continued commitment to the City's mission of providing
excellent public services and working so hard to help accomplish so many positive results that
FY 2008/09 Proposed Millage Rate
July 16, 2008
Page 14
benefit the entire community despite the challenges and uncertainty of the past several months.
Finally, I would like to thank all staff from throughout the City who worked so hard to identify
every opportunity for cost reductions in their departments, as well as itemize alternatives with a
wide range of service impacts to meet the required cost reductions. I would particularly like to
thank my Assistant City Managers, Chief Financial Officer, and all Department and Division
Directors. I appreciate all of us working together towards a reduced budget that still allows us
to accomplish our goals.
In particular, I would like to recognize and thank Kathie Brooks, Director of the Office of Budget
and Performance Improvement (OBPI), Jose Cruz, Budget Officer, Carmen Carlson, and
William Gonzalez, Senior Management and Budget Analysts, Management Consultants Jorge
Fraga and Isabel Stillone, and Office Associate Sailyn Arce-Christiansen. OBPI continues to
work particularly hard to continue to enhance the budget process by facilitating greater input
and direction from the City Commission and all City departments in developing the Proposed
Operating Budget, as well as ensuring that we continue to focus on our community's priorities
and measurable performance results, despite reductions in revenues.
JMG:KGB
ATTACHMENT A -TOTAL POTENTIAL REDUCTIONS
Prior Year Reductions FY 2008109 Bud et Posit ion Im acts
$ Im acts
POS
CSL Bud et
Efficiency
Reo .Etc. o n a
Serviee
Reductions
Total
Total
Im act
Proj.
Vae.
Filled
Mgt &
Admin
Non
M t
°h
General Fund
Ma or 8 Commission $ 47,000 -1.0 $1,458,532 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0°k
Cit Mana er $ 247,555 -2.0 $2 387,340 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0°k
Communications $ 136,147 -t.0 $1,235,172 $ 11,750 $ 166,335 $ 778,085 -2.0 -2.0 0.0 -2.0 0.0 14.4°h
OBPI $ 223,058 -2.0 $2,022,339 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0°k
Finance $ 453,986 -8.0 $4,443,045 $ $ 134,335 $ 134,335 -2.0 -2.0 0.0 -2.0 0.0 3.0°k
Procurement $ 33,886 0.0 $968,690 $ $ 48,131 $ 48,131 -1.0 -1.0 0.0 -1.0 0.0 5.0°k
Human ResourceslLaborRelations $ 194,274 -2.5 $1,943,999 $ 42,891 $ 55403 $ 98,294 -1.0 -1.0 0.0 -1.0 0.0 5.1°h
Ci Clerk $ 64,773 -1.0 $1,568,996 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0°k
Cit Attome $ 192,580 0.0 $4479,074 $ $ 121913 $ 121,913 -2.0 -2.0 0.0 -2.0 0.0 2.7°~
Economic Develo meat $ 59,677 -1.0 $1,000,205 $ $ 70,972 $ 70,972 -1.0 0.0 -1.0 -1.0 0.0 7.1%
Buildin $ 150,000 0.0 $9,081,356 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0%
Plannin $ 84,294 0.0 $3,328,834 $ 109590 $ 60,262 $ 169,852 -3.0 -3.0 0.0 -3.0 0.0 5.1°h
TCD $ 245,958 -1.0 $3,149301 $ 61,538 $ 100,537 $ 162,075 -1.0 -1.0 0.0 -1.0 0.0 5.1%
Nei hborhood Services $ 564,308 -8.0 $5,665,892 $ 213,734 $ $ 213,734 -1.0 -1.0 0.0 -1.0 0.0 3.8%
Parks 8 Recreation $ 1,475,901 -14.0 $31,556,141 $ $ 107683 $ 107,683 -2.0 0.0 -2.0 0.0 -2.0 0.3°h
Public Works $ 869,960 -7.5 $6,768 589 $ 93,506 $ 117,374 $ 210 880 -3.0 -2.0 -1.0 -2.0 -1.0 3.1°h
CIP $ 33,990 0.0 $3,500,926 $ $ $ 0.0 0.0 0.0 0.0 0.0 0.0°k
Police $ 1459,273 -25.0 $81,335,284 $ 167,373 $ 1,171371 $ 1,338,744 -14.0 -12.0 -2.0 -2.0 -12.0 1.6°k
Fire $ 649,307 -3.0 $50,417,121 $ 110,000 $ 854,283 $ 964,283 -3.0 0.0 -3.0 0.0 -3.0 1.9%
Ci ide $ 806,000 0.0 12,016,849 $ $ 80,000 $ 80,000 0.0 0.0 0.0 0.0 0.0 0.7%
Cit ide Securit $ 144,805 0.0 $ 285,763 $ 285,763
Subtotal $ 8 136 733 -77.0 $ 228 327 685 $ 810 382 $ 3 374 362 $ 4184 744 -36.0 -27.0 -8.0 -18.0 -18.0 1.8%
Transfers
Ca ital Reserve $ 2 500 000 0.0%
Pa -As-You-Go Ca Ital $ 7,500,000 $ 2,500,000 $ $ 2,500,000 33.3%
Info S Comm. Tech Fund $ 1,400,000 $ 300 000 $ $ 300,000 .21.4°k
Ca Ital Investment U kee Acct $ 2000,000 $ 1,000,000 $ $ 1,000 000 50.0°k
Renewal and Re lacement Fund $ 3,083,236 $ 151,194 $ 713,068 $ 864,262 28.0°k
Homeowners Dividend $ 4,900,000 $ $ $ $
Transfer to Risk Fund $ 1000 000 $ $ $ $
Transfer to 11 % Reserve $ 3,338,419 $ $ $ $
Internal Service Fund Ad ustment $ 2,112 991
Pension Ad'ustment $ 1344 678
Total General Fund $ 17 375152 -77.0 $245 578 234 S 4 761 576 $ 4 087 430 $ 8 849 006 -38.0 -27.0 -9.0 -18.0 -18.0 3.6°~
Internal Serviee Funds
Information Technolo $ 774,482 -3.0 $ $ 173 666 $ 173,666 -3.0 -2.0 -1.0 -3.0 0.0
Risk Mana ement $ 325,443 -0.5 $ $ $ 0.0 0.0 0.0 0.0 0.0
Central Services $ 10,725 0.0 $ $ 4,412 $ 4 412 0.0 0.0 0.0 0.0 0.0
Pro rt Mana ement $ 199,419 -4.0 $ 177,402 $ 70,224 $ 247,626 -3.0 -3.0 0.0 0.0 -3.0
Fleet Mana emeM $ 98,940 -1.0 $ $ 100,364 $ 100,364 -2.0 0.0 -2.0 0.0 -2.0
Total Internal Service Funds $ 1409 009 ~.5 $ 177 402 S 348 666 $ 528 068 -8.0 -5.0 -3.0 -3.0 S.0
Enter rise Funds
Convention Center $ 48,821 0.0 $ $ $ 0.0 0.0 0.0 0.0 0.0
Sanitation $ 256,060 -2.0 $ 701,683 $ $ 701,683 -14.0 -1.0 -13.0 -1.0 -13.0
Sewer $ 79,993 -1.0 $ 119,360 $ $ 119,360 -3.0 -3.0 0.0 0.0 -3.0
Water $ 200,508 -6.0 $ 142,392 $ $ 142,392 -4.0 -3.0 -1.0 0.0 -4.0
Stortnwater $ 111 316 1.5 $ 377 772 $ $ 377 772 -1.0 -1.0 0.0 0.0 -1.0
Parkin $ 468 274 0.0 $ 537 913 $ 41 000 $ 578,913 -47.0 -3.0 -44.0 -1.0 -46.0
Total Ente rise Funds $ 1 164 872 -7.5 $ 1 879 120 $ 41 000 $ 1 820 120 -68.0 -11.0 -58.0 -2.0 X7.0
Grand Total $ 19 949 133 -93.0 $ 6 818 098 $ 4 477 096 $ 11 295 194 -113.0 -43.0 -70.0 -23.0 -90.0 0
as of 7/10/08 FCWPC
ATTACHMENT B -MINIMAL SERVICE IMPACT EFFICIENCIES, REOGANI2:ATIONS, ETC.
Positions
Cum. Dept. Total Proj. Mgt 8 Non
GENERAL FUND I m act I m ct I m act Vacant Filled Admin M t
Police
Support. Eliminate Clerk Typist -The duties would be absorbed by the
Admin Aide I osition remainin
$ 40 686
$ 40 686
-1
-1
-1
Eliminate one (1) Clerk Typist (Patrol, Administration) -Handles
administrative work for Patrol Shift to include payroll and data entry -The
function has been absorbed by the Administrative Sergeant due to recent
o anizational than es
$ 39 501
$ 80,187
-1
-1
-1
Replace 3 Police officers needed for coverage of the detention facility
with detention officer positions. Detention officers are better trained and
have specific job classifications for the handling and processing of
arrested individuals. It is more efficient and effective to place detention
officers in this sitions than sworn lice officers. $ 75 206 $ 155 393 0
Patrol. Return SP RDA building to City for leasing opportunities. Figure
represents savings of operating expenses only: Cleaning services, alarm
monitoring, electric services, photocopier lease and office supplies -
There is no im act on the delive of lice services to this area
$ 11 980
$ 167 373
0
Fire
Convert eigl#{8) five (5) sworn firefighter positions to civilian inspectors
and re-assign firefighters to shift to replace eigf~t{S~five (5)- replacing fire
fi hters as the retire
$ 110 000
$ 110 000
0
Nei hborhood Services
Replace Neighborhood Services Department Director position with Code
Compliance Division Director position $ 73 834 $ 73 834 0 0
Eliminate Code Administrative Manager. Function will be absorbed by
Business Liaison osition Customer Service Mana er 77,320 $ 151 154 -1 -1 -1
Convert 3 Full Time Code Officers Positions (anticipated to be vacant by
promoting into 3 Code Admin positions) into 3 Part-time Code Officer
Positions: These 3 part time positions would handle all the special
details, animal ordinance, flyers/handbills, vendors, graffiti and any other
s ecial details r nested throw hout the ear $ 62,580 $ 213 734 0 0
Public Works
Eliminate Capital Projects Coordinator -shifting functions to operations
supervisor in Streets and Streetlighting -decreased emergency repairs
anticipated due to CIP program -This position has beeen vacant for one
ear
$ 93 506
$ 93 506
-1
-1
-1
Pfannin
Eliminate Vacant Administrative Asst. I - 1014-001, Dev. Board -
Processes all applications related to the BOA, administers the public
hearing process (being performed by AS-OAlll) $ 47 800 $ 47,800 -1 -1 -1
Convert Planner to OAIV- Assists Development Review Board
A lications Board Pre aration $ 13 990 $ 61 790 0 0
Administrative Asst. I -Unoccupied -Dev. Board -Duties will be
absorbed in Department $ 47 800 $ 109 590 -1 -1 -1
TCD
Eliminate the Cultural Facilities Manager Position (Currently Vacant):
This position has been vacant since November 2007. Since that time
SMG has assumed added responsibility. This proposal would require the
venue manager (SMG Employee) to continue with added responsibilities $ 61 538 $ 61 538 -1 -1 -1
Communications
Convert 2 Media Assistants to Professional Service contracts -currently
usin rofessional services as ositions are vacant
S 11,750
$ 11,750
-2
-2
-2
Human Resources/Labor Relations
Eliminate Vacant HR Tech II (Recruitment) Position (and Medicare) -
duties reassigned to other existing HR staff due to department
restructurin and reassi nment of duties
$ 42 891
$ 42 891
-1
-1
-1
Transfers
Reduce Pay-As-You-Go funding to reflect FY 2008/09 funding needs $2 500 000 $ 2 500 000 0
e uce n orma ion an ommunica ions ec no ogy n mg ore e
FY 2008/09 fundin needs
$ 300 000
$ 300 000
0
Reduce capital investment upkeep account funding to reflect FY 2008/09
funding needs $1 000 000 $ 1 000 000 0
uce renews and rep acement nding to re ect 08/09 nding
needs -South Pointe Renewal and Replacement South Pointe dedicated
tax increment revenues $ 151 194 $ 151 194 0
Total General Fund $ 4 761 576 -10 -8 -2 -10 0
Positions
INTERNAL SERVICE FUNDS
Im act Cumulative
Department
Im act
Total
Im act
Vacant
Filled
Mgt.B
Admin
Non
M t
Pro Mana ement
Reduce 3 vacant positions (Electrician, A/C Mechanic & Plumber) -
Positions have been vacant for 6 months or more without significant
im act.3 $59134
$ 177,402
$ 177,402
-3
-3
-3
Total Internal Services Funds $ 177 402 -3 -3 0 0 -3
Cumulative
Department Total Mgt.B Non
ENTERPRISE FUNDS Im act Im ct Im act Vacant Filled Admin M t
Sanitation
Restructure to Reclassify 1 WD supervisor ($58,427) to a HEO 1
$33 280 both vacant $ 25 147 $ 25 147 0
Restructure to Reclassify 1 HEO 2 ($58,427) to a HEO 1 ($33,280) (both
vacant $ 25 147 $ 50 294 0
Eliminate Clerk T ist sition current) filled $ 55 976 $ 106 270 -1 -1 -1
Solid waste franchisees to provide litter can collection and disposal
citywide, six (6) days a week (contingent on three year renewal of the
franchise a reement -PENDING FURTHER ANALYSIS $ 595 413 $ 701 683 -13 -1 -12 -13
Sewer
Eliminate one (1) Asst. Pumping Mechanic, one (1) HEO I, one (1) Sewer
Pi fitter $ 119 360 $ 119 360 -3 -3 -3
Water
Cut three 3 MSW II's and one 1 Control Room 0 erator $ 142 392 $ 142 392 -4 -3 -1 -4
Stormwater
Eliminate one (1) HEO I -position has been vacant for some time and functions
have been absorbed $ 41,772 $ 41,772 -1 -1 -1
Suspend funding for catch basin and pipe cleaning in North Beach due to CIP
projects underway in that area (Normandy Shores & Normandy Sud). CyGical
Geanin is a mandato element of an effective NPDES com liance r ram. $ 150,000 $ 191,772 0
Suspend funding for ouffall cleaning in North Beach due to CIP projects
underway in that area (Normandy Shores & Normandy Sud). CyGical Leaning is
a mandato element of an effecfive NPDES com liance ram. $ 186,000 $ 377,772 0
Parkin
Outsource Enforcement Unit (36 PESI - FT, 6 PEST - PT, 3 PESII - FT)
44 filled positions, 1 vacant positions) to achieve savings by last 3
months of Fiscal Year -ANNUAL SAVINGS OF APPROX $1,430,000 -
PENDING FURTHER ANALYSIS $ 357 000 $ 357 000 -45 -1 -44 -45
Reduce Marketing by 10% -Advertisements in Newspapers and
periodicals -reductions in promotional materials. Office of
Communications will provide services with the remaining $71,000 for
marketin throw h a coordinated marketin a roach $ 8 000 $ 365 000 0
Reduce contract sign maintenance. IMPACT the implementation of the
initiative to contract a sign maintenance crew for graffiti removal and
maintenance of parking regulatory signs. $ 62 000 $ 427 000 0
Reorganize Department, eliminating Assistant Director, and 3 Parking
Specialists and replace with 1 Parking Ops Supervisor, and 1 Meter
Technician II $ 110 913 $ 537 913 -2 -2 -1 -1
Total Enter rise Funds $ 1 879 120 -69 -11 -58 -2 -67
ATTACHMENT C -SERVICE REDUCTIONS
Positions
Im act Cumulative
Department
Im act
Total
Im act
Proj.
Vacant
Mgt 8
Filled Admin
Non-
Admin
GENERAL FUND
Police
Reduction of unfilled vacancies in Patrol. Planned staffing increases to Afternoon
Shift ATV (2 Officers), increase to the 4th Shift (5 Officers), and anticipated increases
to Midnight shift (5 Officers) will be impacted. Although the increase of staffing would
be ideal, Police is finalizing a new PaVol staffing plan which will provide more
effective coves a and schedulin of officers.
1,171,371
1,171,371
12
12
12
Fire
Reduce the Overtime Budgets (1210,1220) by im lementin ri iv I v li
if uncivrpcful affer the fourth quarter ursue allowing an exception to the minimum
staffing ordinance by providing for a reduction to 42 positions in instances of higher
unanticipated leave. (Note: Projection based on unscheduled leave patterns and shift
stren th of 184.
833 112
833 112
0
Reclassi 501 EMS Ca fain to Lieutenant $ 21,171 $ 854,283 0
$ 854 283 0
$ 854.283 0
Reduce one Nfeguard tower, rebca~ remaining towers and reduce 3 lifeguard
' ~ s. Note: Increases distance between remaini 28 sffinds. 125 000
TBO
$ 854 283
-
-3
-3
Nei hborhood Services
$
, $
$ -
Parks 8 Recreation
F~wenaes$-~ 900 $0
Eliminate 4 out of 12 major outdoor events at $5,000 each. The Division also holds
53 smaller cultural Tamil and movie events free of char a to the ublic each ear
$20,000
$20,000
0
$20,000
$20,000 0
Eliminate opening of SRYC on Saturdays and NSYC on Sundays for general
activities excluding parties -The Division has been opening both of the youth centers
on Saturday and Sunday, free of charge to residents. Represents staff time, including
supervision. Revenues $ 0.00. NOTE'"' 8.398 total entries for the weekend for 2
youth tpntarc both Saturday and Sunday for 51 weeks equates to a total of 1 683
iv n h v f I in i n r h r. $48,553 $68,553 -2 -2 -2
$68, 553
Close each pool one day per week in Winter (November -February) -impacts 16 PT
s $t00 640
TBD
5 88 553
TBD
TBt)
TBD
Reduce Level of Service for Parks and Green Space contracted (all contracted)
mowin from from B to C 34 to 30 cuts r ear with litter service on those da s
$ 39,130
$ 107 683
0
Reduce Level of Service fw Parks and Green Space contracted and in-house litter,
hedge trimming, matching, ebc. from B to C at various fi3cifites(litter fnxn 5 to 3 x per
week. pruningftcimming from every 2 weeks to every 3 weeks, weed control from
every 4 weeks to every 5 weeks, muk;hir~j from 10 weeks to every 12 weeks) - 3 F-f
and 1 PT positions impacted -recreation sffiff wail supplement lit6er control a2 staffed
factHties ($315 252
BD
107 883
BD
BD
Bp
Positions
Cumulative
Department Total Proj. Mgt 8 Non-
Im act Im ct Im ct Vacant Filled Admin Admin
Public Works
Eliminate Administrative Aide II for payroll, clerical, etc. by consolidating functions
with other Gericals in Department - Increase in clerical workload by 40% between
roll and rocurement activities. $ 62,201 $ 62 201 -1 -1 -1
Eliminate Bicycle Coordinator Position -duties combined with Transportation
coordinator. Loss of position will mean that there will be no position focused solely on
bi etrans rtationmatters. $ 55,173 $ 117,374 -1 -1 -1
Economic Develo ment
Advertising for co-sponsored business seminars partnering with the Small Business
Development Council (SBDC) $ 2 500 $ 2 500 0
Eliminate Administrative Secretary -duties will be transferred to remaining Gericel
staff (payroll, processing invoices, support to Collins Park Oversight Committee,
researoh,etc.) $ 68,472 $ 70,972 -1 -1 -1
Plannin
Eliminate Dev. Review Planner (Vacant)- processes building permit applications, $ 60 262 $ 60,262 -1 -1 -1
TCD
Privatize Byron Carlyle Theater - RFP would need to be issued, Commission
selection and agreement negotiated. Projected savings annual savings is $181,610.
The Byron is projected to generate $110,120 in revenue in FY 09. 3 months of
savin s are assumed for FY 09 with full ear savin s innin in FY10 $ 60,537 $ 60,537 0
Reduce Arts in the Parks to six events rear $ 40,000 $ 100 537 0
Communications
Reduce Citypage to biweekly (less frequent opportunity to communicate timely with
ublic $ 14,000 $ 14,000 0
$ 14,000 0
Reduce MBTV locally originating programming by approximately 50% will eliminate
MB Radio, reduce CityVision to Bi-Monthly (eliminate 1 Media Assistant contract
position - $ 46,885). Eliminate 1 videographer contract position - $16,100. Reduce
Still photographer/video programmer hours by 50% - $5,400.) Eliminate special, long
format prorgams, e.g., "Survey Says," "Plan & Prepare Miami Beach," Planned
Progress: CIP Program; "'MB Culture." Eliminate creative (video) Public Service
Announcements. Reduce Office Supplies 50% -$1,250. Reduce Other Operating
ex nse 50%-$4 800 $ 74,435 $ 88,435 0
Reduce MB magazine to 4x a yr (quarterly) from 6x bi-monthly (3 w/ Rec Rev).
Postage 26,400/printing 40,000/fulfillment 5,500 (0324), prof svc 6,000. Advertising
revenue loss $49 226.00 ea issue $24 613 revenue $ 77 900 $ 166,335 0
Finance
Eliminate FA2 in Customer Service, impacting processing of lotteries and issuance o
certified lien statements $ 75,005 $ 75,005 -1 -1 -1
Eliminate FS2 in Revenue Section, impacting reconciling of revenues and annual
audit re aration $ 59,330 $ 134,335 -1 -1 -1
Procurement
Eliminate Administrative Aide I position. Total starting salary is $33,643 plus 1.45%
Medicare, $5,000 health benefits. Clerical duties and responsibilities would be
transferred to Office Associate V (OAVj. OAV is currently involved in processing
purchase requisitions to purchase orders thus, the time for issuance of POs will
increase from 16 to 30 days. The amount of days it takes for evaluation committee
packages to be distributed may increase from 2 days. Customer service may be
affected adversely as a result of not having a "receptionist' to greet all visitors and/or
answer all incoming calls from internal and external customers. The time it takes to
update the vendor campaign database may increase from 5 days, advertisements
and posting in various bid notification agencies may increase from 5 days, distribution
of POs to departments and vendors may increase from 2 days, and to respond to
public records requests may increase from 5 days. The lack of typing support may
result in delays in the completion of agenda items $ 39,131 $ 39,131 -1 -1 -1
Eliminate Temporary Labor. This will result in no-back-up for absences of staff and no
additional support during high volume periods at the start and end of the fiscal year.
The time it takes to issue purchase orders and blanket purchase orders at the start of
the fiscal year will increase by 30 days -from 30 to 60 days. Additionally, the time it
takes to close-out existing POs and BPOs in EDEN will increase by 10 days -from 5
to 15 da s. $ 9,000 $ 48,131 0
Positions
Im act Cumulative
Department
Im act
Total
Im ct
Proj.
Vacant
Filled
Mgt 8
Admin
Non-
Admin
Human ResourceslLabor Relations
Reduce Training and Awards (professional developmental opportunities; SHRM
Certification and F~cam, etc.) - Impact on staff will be reduced leadership and career
develo mental o rtunities
$ 15,000
$ 15,000
0
Freeze approximately 1/4 of the vacant Labor Relations Director Position (Salary,
Allowances, Dues and Memberships, Phone, etc.) -leaving $77,000 for a
professional services agreement (PSA) to be negotiated for individual to hear Step III
grievances and help with upcoming labor negotiations with all five (5) collective
bar ainin units unions
40,403
55,403
0
C' Attome
Cut vacant Sr. Assistant City Attorney position which was unfunded as part of the FY
2007/08 efforts to accommodate the tax roll-back enacted by the State of Florida in
2007. Total savings for FY 2007!08 were calculated at $110,692. No moneta
impact in FY 2008/09 but total number of budgeted positions will decrease by 1
_
_
1
1
1
Cut one of two vacant First Assistant City Attorney positions-work to be divided
among current staff. Monetary impact to FY 2008/09 Budget is composed o
$115,242 in salary, $1,671 in Medicare, $5,000 in Health Insurance.
121,913
121,913
1
1
1
Ci ide
Reduce Holiday Decorations to $125,000 - Curzent cost is estimated at $205,000 for
installation, maintenance and approximately $40,000 in storage costs
$ 80,000
$ 80,000
0
rwrYp~ s~~na to Gitvwide Accounts by 10%
Funding for Hot Meals -JCS TBD $ 80,000
Funding fot Oouglaa GeMens TBD $ 80,000
Fundi for Sta C. Meyers TBD $ 80 000
Fundi for and dins club TBD $ so,ooo
Contributions for CuRural Arts CouncU - $801,375 to be separately funded from
Que-hY of Life Furrds
TBD
$ 80,000
Contributions for Garden Center TBD $ 80,000
F for Dade Coun D TBD S 80,000
F for Festival ~ the ARs TBO $ 80,000
Funding for Jewish Museum TBD $ 80,000
Fundi for 4th of Juty Celebration TBD $ 80.000
Funding for Latin Chamber of Commeroe TBD $ 80,000
Funding for Miami Beach Chamber/Construction $20,000 TBD $ 80,000
Funding for Miami Beach GhamtrerNisitor Center TBD $ 80,000
Fu ~ for Miami Design Preservation League TBD $ 80,000
Funding for f+Aonuments TBD $ 80,000
Funding for North Development Corp TBD $ 80,000
Funding for Orange. Bowl TBD $ 80,000
Funding far Sister Cities TBD S 80 000
Funding for S B~dVGreater tvtaimi Hispanic Chamber TBD $ 80,000
Fuf>dmg for Vote Miami Beach TBD S 80,000
Reduce Citywide contracted security expenditures while ensuring. priority areas are
maintained beach walks and boardwalks, Lincoln Road, etc. ,
$ 285,763
$ 365,763
0
Transfers
Reduce Renewal and Replacement Funding for Life Safety and critical projects only $ 713 068 $ 713 068 0
Total 4,087,4 0 -26 -19 -7 -8 -18
Positions
Cumulative
Department Total Proj. Mgt & Non-
Im act Im act Im act Vacant Filled Admin Admin
INTERNAL SERVICE FUNDS
Information Technol
Eliminate 1 out of 7 Senior Systems Analysts positions. This will impact the .NET
development environment for online citizen services by increasing the time to develop
and maintain all online a lications. $ 62,514 $ 62,514 -1 -1 -1
Eliminate 1 out of 3 Systems Analysts positions. This will impact the schedule to
com lete the Ci s new website redesi nand overhaul ro' $ 57,535 $ 120,049 -1 -1 -1
imrna e n o a es osi ion ou o e e p es is open rom
to 5:00. This impacts ability to answer over 23,000 phone calls a year. The Help
Desks abandoned call rate is currently at 4% which is at the industry benchmark
standard. The greatest impact will be to Parking, Fire, Police, Building, Code and
Fleet by reducing the ability to take calls by 33 percent. These listed users make up
50% of the calls received yearly. Also impacts the time to resolve level 1 helpdesk
related incidents, tickets that can be resolved by the Helpdesk would be forwarded to
Field Support Personnel, thereby increasing resolution time by over a week in
addition to the impact to the Field Tech's prior assignments. This Help Desk
Technician also handles offsite tape storage and rotation duties, lockbox and
assessor loads for Permits Plus. $ 53,617 $ 173,666 -1 -1 -1
Central Services
uce number o u agenda s om 31 to 19, and reduce the number pnnte
on Friday from 13 to 10, thereby reducing overtime ($880), paper costs ($3,432),
other mist costs ($100). And on Monday am, only 8 instead of 15. All other printed
agenda would be replaced by the Clerk sending a link to the agenda on the web site.
Interested parties still wishing a book can pay the current fee based on cost ($10 -
$40 $ 4,412 $ 4,412 0
Pro Mana ement
Repairs & Maint Supplies - 10% Reduction -May create a situation of deferred
maintenance resulting in increased overall maintenance cost $ 70,224 $ 70,224
Fleet
Eliminate (1) Lead Mechanic Position that multi-tasks as support Supv, Quality
Control Inspector and Mechanic (Prioritizes and expedites work flow) Impact will be
delayed work and reduction in quality inspections, both in-house and vendor.
Increased downtime for customer. No Support for supervisor during vacation, training
and sick Ume events $ 59,977 $ 59,977 -1 -1 -1
Eliminate 1 of 2 Fleet Svc Reps (Public Safety Customers Service Writer: Initial
Customer contact person who writes service orders, prioritizes, schedule and
expedites work for mechanics and vendors, maintains Customer and Vendor
communication, and performs fuel daily monitoring, ordering and weekly
reconciliation as required by DERM). Impact will be some backlog of work waiting for
scheduling causing delays for repair. No prioritzation except Police and Fire.
Increased down Ume, no follow up for PM schedules not being met by customer.
Increase in more costly repairs. Shorter life expectancy. Fuel ordering and monitoring
would be impacted. Expect increase in DERM violations because of lack of due
diligence in completing paperwork
$ 40,387 $ 100,364 -1 -1 -1
ENTERPRISE FUNDS
Parkin
Scheduled replacements of 2 VMS signs purchased in 1999 (we have a total of 10
VMS signs) IMPACT: compromise traffic flow since we lose the ability to inform
visitors/residents regarding Park-N-Ride, parking availability, special events, etc.
These signs are down about 5% of the time, however previous experience with other
signs reflect an increase in down of approx 75% to 100% after 10 years $ 41,000 $ 41 000 0
ATTACHMENT D -REVENUE ENHANCEMENT ALTERNATIVES
Fiscal Impact ~ Department ~ Cumulative
FUND
Police
Implement fuel surcharge for off-duty work (e.g. an increase of $4/hour with a minimum of
Ilncrease Transport Fees consistent with proposed County fee increase 1 $ 720,000 1 $ 720,000 1
$ 360,0001
$ 1,080,000 ~
Increase sidewalk fees by $2.50 from $15lyear per foot (The current square footage 47,721
times $2.50/year =. $119,302.50/year) TBD TBD $ 1,080,000
Parks and Recreation
Increase S. FI Resident summer rates by $10 (summer weekday: $70 to $80, summer
.weekend $85 to $95. shoulder $85 to $95, peak $115 to $125) $48,000 $48,000
Increase non-resident rack rates $5 (summer: $95 to $100, shoulder $120 to $125, peak
Establish wedding ceremony permit fees - Establish a $250 permit fee. City averages
a roximatel 100 beach ceremonies er ear. -Discount fee of $125 for residents $ 25,000 $ 25,000
Require permits and establish fees for promotional distribution acitvities -Commerical
entities frequently use the city public rights of way to distribute promotions products. The
City has found that this creates a problem for sanitation, specifically when it occurrs on the
beach. The Administration recommends regulating the activity and charging permit fees. A
$2,000 permit fee is being proposed. The City would also require a security deposit and
impose fines if a permit was not obtained. $ 50,000 $ 75,000
800
800
$ 1,162,8001
000
ENTERPRISE FUNDS
Sanitation
0 0 $ _
Increase RollOff ermit fee from 16% to 18°/, $108,653 $ 108,653
° o $ 108,653 $ 108,653
Parkin
Eliminate visitor hang tags and replace with daily coupons
$ 120,000 $ 120,000
$ 120,000
Increase Hourly Rate at Meters by $0.25 in S. Beach from $1.00 per hour to $1.25 per hour
- concurrent with implementation in-car meter allowing residents to get discounted to $1.00
erhour $ 2,393,472 $ 2,513,472
Increase Meter rental fee from $10 to $17 recover the avg revenue loss per space per day,
administrative char es, etc. $ 195,000 $ 2,708,472 $ 2,708,472
Note: Proposed Water, Sewer and Stormwater Fees will be presented separately