2009-27023 ResoRESOLUTION NO. 2009-2023
and funds; and
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST
AMENDMENT TO THE GENERAL, ENTERPRISE, AND
INTERNAL SERVICE FUNDS BUDGETS FOR FISCAL YEAR (FY)
2007/08 TO APPROPRIATE PRIOR YEAR ENCUMBRANCES
AND AMEND CERTAIN BUDGETS.
WHEREAS, Florida Statutes prohibit the over expenditure of departmental budgets
WHEREAS, additionally, $0.2 million in General Fund prior year encumbrances
require an amendment because certain services and capital items were purchased during FY
2006/07 with FY 2006/07 budgeted funds and were paid during FY 2007/08; and
WHEREAS, the budget for the Human Resources, Economic Development, Public
Works, Fire, and Police Departments, as well as the Capital Investment & Upkeep Account and
Capital Renewal and Replacement Account reflect additional expenses in excess of budget that are
offset by increased revenue and expenditure savings in other areas; and
WHEREAS, the Administration has performed a detailed review and it is anticipated
that the General Fund will have an overall operating budget surplus of $6.75 million; and
WHEREAS, the City's financial policies adopted pursuant to Resolution 2006-
26341 and Resolution 2002-24764 require one time revenues (such as the year-end surplus) must
be used for non-recurring expenses, and that at least half of each annual year-end surplus must be
allocated to the City's Capital Reserve Fund; and
WHEREAS, however, the City's Capital Reserve was established in FY 2005/06 at
a time when the industry was at a peak, with project bids often coming in significantly higher than
budgeted; today is a very different market, with construction bids being received significantly under
project budgets; and the Capital Reserve has accumulated approximately $10 million in funding; and
WHEREAS, in 2004, the Governmental Accounting Standards Board (GASB)
statements established standards related to benefits paid to retirees other than pensions (OPEB),
requiring City of Miami Beach to report under these standards forthe period 10/1/07 though 9/30/08,
and annually thereafter; and the City has determined that it is in the best interest of the City to
establish an OPEB trust in which event the net OPEB obligation for FY 2007/08 would be reduced
from $11.057 million to $6.901 million if the trust is funded over time; and
WHEREAS, the City has performed an updated analysis of building permit fee
revenues and building department expenses pursuant to Florida Statute that requires that
unexpended building fee revenues be carried forward to future year to fund allowable activities in
enforcing the Florida Building Code, and this analysis has shown the carry forward balance to be
$10.475 million through September 30, 2008, primarily due to the ongoing review of certain
inconsistencies in the application of building permit fee ordinance, and the implementation of new
processes which required upfront and back-end disclosure of the actual cost of remodeling and
square footage of new facilities, over the last two years, and while this can be funded over time, the
City recognizes that it is prudent to put some funds aside now that may be needed later; and
WHEREAS, as a result, it is recommended that the Commission waive the
requirement that at least half of the FY 2007/08 year-end surplus be used to fund the City's Capital
Reserve; and
WHEREAS, therefore, it is recommended that the budget be further increased by
using the $6.75 million surplus as follows: $2.25 million to fund the City's FY 2007/08 accrued
liability for post-employment (retiree health) benefits pursuant to new requirements of GASB 45; and
$4.5 million to a reserve for future Building Department needs; and
WHEREAS, the Enterprise Fund Budget of the Stormwater Operations requires an
amendment to fund expenditures in excess of its budget of $353,368 primarily due to prior year
encumbrances for capital items and higher than anticipated depreciation costs; and
WHEREAS, the Internal Service Fund Budgets of the Central Service and Fleet
Management Funds require an amendment; The Central Service Fund excess of expenditures of
$74,203 is primarily due to higher than anticipated operating costs and the Fleet Management Fund
excess of expenditures of $1,172,510 is primarily due to higher fuel costs.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the first amendment to the Fiscal
Year 2007/08 General Fund, Enterprise and Intemal Service Funds budgets is adopted as shown on
the following pages:
REVENUES FY 2007108 Changes Recommended FY 2007/08
Adopted Budget in Rev/Exp Additional Amended Budget
Appropriation* Appropriation
GENERAL FUND
OPERATING REVENUES
Ad Valorem Taxes $ 121,832,447 $ (1,695,325) $ 0 $ 120,137,122
Ad Valorem Taxes-Capital Renew/Rep/. 3,266,096 0 0 3,266,096
Ad Valorem Taxes-S.Pointe Cap R & R. 234,435 0 0 234,435
Ad Valorem Taxes-Normandy Shores 148,820 0 0 148,820
Other Taxes 22,833,300 1,212,364 0 24,045,664
Licenses and Permits 14,941,425 4,386,394 0 19,327,819
Intergovernmental 10,713,940 (383,878) 0 10,330,062
Charges for Services 8,242,350 (245,690) 0 7,996,660
Fines and Forfeits 1,975,000 366,561 0 2,341,561
Interest 6,200,000 1,637,849 0 7,837,849
Rents and Leases 4,371,150 53,442 0 4,424,592
Miscellaneous 7,479,914 (529,996) 0 6,949,918
Other-Resort Tax contribution 20,696,309 0 0 20,696,309
Other-Non Operating revenues 7,689,351 (26,308) 0 7,663,043
Total General Fund Revenues $ 230,624,537 3 4,775,413 $ 0 S 235,399,950
APPROPRIATIONS
Department
MAYOR & COMMISSION $ 1,403,877 (31,145) $ 0 $ 1,372,732
CITY MANAGER 2,289,042 (6,865) 0 2,282,177
Communications 1,224,962 (123,340) 0 1,101,622
BUDGET & PERFORMANCE IMPROVE 1,904,001 (175,835) 0 1,728,166
FINANCE 4,274,374 (209,467) 0 4,064,907
Procurement 926,568 (26,323) 0 900,245
HUMAN RESOURCES 1,802,168 30,724 0 1,832,892
CITY CLERK 1,669,012 (37,897) 0 1,631,115
CITY ATTORNEY 4,213,126 (206,166) 0 4,006,960
ECONOMIC DEVELOPMENT 933,299 26,663 0 959,962
BUILDING 8,689,391 (200,027) 0 8,489,364
PLANNING 3,215,399 (263,638) 0 2,951,761
TOURISM & CULTURAL DEVELOPMENT 3,147,135 (313,371) 0 2,833,764
NEIGHBORHOOD SERVICES 5,532,938 (380,242) 0 5,152,696
PARKS & RECREATION 28,142,606 (1,097,765) 0 27,044,841
PUBLIC WORKS 6,222,817 188,977 0 6,411,794
CAPITAL IMPROVEMENT PROJECTS 3,376,245 (504,929) 0 2,871,316
POLICE 76,957,768 651,751 0 77,609,519
FIRE 45,744,552 1,186,012 0 46,930,564
CITYWIDE ACCOUNTS
Capital Investment & Upkeep 1,280,000 105,793 0 1,385,793
Normandy Shores District 203,833 0 203,833
Operating Contingency 1,300,000 0 1,300,000
Other Accounts 11,270,893 (843,055) 0 10,427,838
Sub Total General Fund $ 215,724,006 $ (2,230,145) $ 0 $ 213,493,861
Transfers
Capital Reserve Fund $ 2,500,000 $ 0 $ 0 $ 2,500,000
Pay-As-You-Go Capital Fund 7,500,000 7,500,000
Info & Comm Technology Fund 1,400,000 1,400,000
Reserve Future Building Dept Needs 0 4,500,000 4,500,000
GASB 45 Reserve-OPEB 0 2,246,568 2,246,568
CAPITAL RENEWAL & REPLACEMENT 3,266,096 258,990 3,525,086
S. POINTE CAPITAL R & R 234,435 234,435
Sub Total Transfers $ 14,900,531 $ 258,990 $ 6,746,568 $ 21,906,089
Total General Fund E 230,624,537 3 (1,971,155) S 6,746,568 S 235,399,950
FY 2007/08 Changes Recommended FY 2007/08
Adopted Budget in Rev/Exp Additional Amended Budget
Appropriation* Appropriation
ENTERPRISE FUNDS
APPROPRIATIONS
Convention Center
Parking
Sanitation
Sewer Operations
Stormwater Operations
Water Operations
Total Enterprise Funds
Total General and Enterprise Funds
INTERNAL SREVICE FUNDS
APPROPRIATIONS
Central Services
Fleet Management
Information Technology
Property Management
Risk Management
Total Internal Service Funds
* Includes prior year encumbrances.
$ 16,979,466 $ 0 $ 0 $ 16,979,466
26,875,393 0 26,875,393
14,774,232 0 14,774,232
30,268,117 0 30,268,117
8,150,000 353,368 0 8,503,368
23,976,566 0 23,976,566
$ 121,023,774 $ 353,368 $ 0 $ 121,377,142
$ 351,648,311 $ (1,617,787) $ 6,746,568 $ 358,777,092
$ 830,544 $ 74,203 $ 0 $ 904,747
7,628,820 1,172,510 0 8,801,330
13,611,746 0 13,611,746
9,758,999 0 9,758,999
16,917,691 0 16,917,691
$ 48,747,800 $ 1,246,713 $ 0 $ 49,994,513
Passed and adopted this 2ndday of March; -~= 2009.
yr
ATTEST: Matti Herrera Bower
P t~/~/~~~,""L
City Clerk
Robert Parcher
APPROVED AS TO
FORM 8~ LANGUAGE
~ FOR EXECUTION
2 2Q d 4
' Attomey~~ Dat
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution to adopt the first amendment to the General and Enterprise and Internal Service Funds Budgets
for Fiscal Year (FY) 2007/08 to appropriate prior year encumbrances and amend certain budgets.
Key Intenaea outcome Supportea:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial health and maintain overall bond rating
Supporting Data (Surveys, Environmental Scan, etc.):
• In response to recent Governmental Accounting Standards Board standards related to reporting of liabilities
for benefits paid to retirees other than pensions (OPEB), it is recommended that the City establish an OPEB
trust to reduce the City's OPEB liability. The General Fund component of the Net Pension Obligation for FY
2007/08 with a funded trust is $6.29 million, of which $4 million has been set aside in prior years.
• The City has updated the analysis of building permit fee revenues and building department expenses,
pursuant to Florida Statute, that requires unexpended building fee revenues to be carried forward to future
years to fund allowable activities in enforcing the Florida Building Code. This analysis shows the carry
forward balance to be $10.475 million through September 30, 2008, primarily due to $10.6 million in the past
two years from the implementation of new processes and procedures. The City expects to fund this carry
forward balance over time, as current recurring revenues are not sufficient to cover the fully-burdened cost of
expenditures of the Building Department. None-the less, it is prudent to put some funds aside now, since the
Department has several initiatives underway requiring funding. In addition, the expenditures associated with
building inspections will lag years behind the collection of building permit fee revenues, and the recent
downturn in the econom is ex ected to result in reduced buildin ermit fee revenues in the u cumin ears.
Issue:
Whether to ado t the first amendment to the FY 2007/08 Bud ets?
Item 5ummary~Kecommenaacion:
Five General Fund departments as well as the Capital Investment Upkeep Account and the Renewal and
Replacement Reserve have FY 2007/08 expenses in excess of appropriations thereby requiring budget
amendments. The year-end surplus in the General Fund is estimated at $6.75 million, net of these impacts. On
the expense side, this is primarily due to the City's continued implementation of pro-active cost-saving
measures early in the year in response to Property Tax Reform on-going discussions resulting incost-savings
across many City departments for a total savings of approximately $2 million Citywide. On the revenue side,
approximately $4.8 million in additional revenues were realized primarily due to increased electrical and
telephone taxes, increased interest earnings, and increased building permit revenues. These increases were
partially offset by reduced ad-valorem property taxes, intergovernmental, charges for services, miscellaneous
revenue, and increased rent/lease and fines and forfeit revenues. With the exception of the Public Works
Department and Citywide Accounts expenditures and increased interest earnings and utility taxes, the year-end
results are very similar to those projected for FY 2007/08 as part of the information provided in August.
Our financial policies require one time revenues to be used fornon-recurring expenses, and at/easthaKof
each annual year-end surplus to be allocated to the Capital Reserve Fund. However, the City's Capital
Reserve was established when the industry was at a peak, and project bids were often coming in significantly
higher than budgeted. Today is a different market and the Capital Reserve has accumulated funding. As a
result, it is recommended that the Commission waive the requirement that at least half of the FY 2007/08 year-
end surplus be used to fund the City's Capital Reserve. Rather, it is recommended that the General Fund
budget be increased by using the $6.75 million surplus as follows: $2.25 million to fund the City's FY 2007/08
accrued liability for post-employment (retiree health) benefits pursuant to new requirements of GASB 45; and
$4.5 million to a reserve for future Building Department needs.
In the Enterprise Funds budgets, The Stormwater Fund is over by $353,368 that will be offset by Retained
Earnings. In the Internal Service Funds budgets, the Central Services Fund exceeded its budget by $74,203
and The Fleet Mana ement Fund exceeded its bud et b $1,172,510, offset b char es to de artments.
Financial Information:
Source of Amount Account
Fund 1 $ 4,775,413 General Fund
2 $ 353,368 Enterprise Funds
3 $ 1,246,713 Internal Service Funds
OBPI Total $ 6,375,494
Financial Im act Summa
Sign-Offs:
Dep t Dir r Assistant City Mana er ana er
r
~ MIAMIBEACH
~ ~
AGEI~IDA ITEM /_
DATE 2',2 ~ ~ 9
m MIAMIBEACH
Cify of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
To: Mayor Matti H. Bower and Members of the City Co fission
FROM: Jorge M. Gonzalez, City Manager
DATE: February 25, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE
GENERAL, ENTERPRISE AND INTERNAL SERVICE FUNDS BUDGETS FOR
FISCAL YEAR (FY) 2007/08 TO APPROPRIATE PRIOR YEAR
ENCUMBRANCES AND AMEND CERTAIN BUDGETS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
ANALYSIS
The first amendment to the FY 2007/08 General Fund, Enterprise and Internal Service
Funds Budgets, appropriates funds to cover prior year encumbrances, and amends certain
department budgets.
GENERAL FUND
LTC No. 048-2009, Analysis of Budget to Preliminary Actual Revenues and Expenses for
the Year Ended September 30, 2008, provided an overview of additional appropriations of
certain departments where our year-end estimates indicate their appropriations will exceed
budget. These are more than offset by increased revenues and savings in other
departments. In addition, the LTC reflected estimates that the General Fund will have a
year-end surplus of $6.75 million and recommended appropriate uses for the surplus.
A detailed review was performed to identify all outstanding prior year encumbrances that will
require a carry forward of their funding from FY 2006/07 to FY 2007/08. In an accrual based
budget, it is standard practice to recognize expenditures for projects still underway at the
end-of one fiscal year and carry them forward into the next fiscal year. We have identified
encumbrances totaling $.02 million within the General Fund for services and capital items
that were purchased during FY 2007/08 with FY 2006/07 budgeted funds and were paid
during FY 2007/08, thereby needing to be carried forward to FY 2007/08 budget. The
breakdown of these by department is provided in the table on the following page.
First amendment to the FY 2007/08 General Fund, Enterprise and Internal Service Funds
Budgets
Page 2
Reappropriation of
Department Prior Year Encumbrances Purpose
Fire Department $61,050 Prof. Svcs./Operating Exp.
Capital Investment Upkeep Account 105.793 Capital
Total Expenditure Increase $166,843
In addition to the prior year encumbrances, additional appropriations are needed for the
following departments where expenses exceeded budgeted appropriations. These
additional department appropriations are offset by savings in other departments as shown
below:
The Fire Department exceeded its budget by $1,186,012 or 2.6%. The majority, or
$737,388, of the over expenditure in the Fire Department can be primarily attributed to
underestimating benefit needs for the budget year for items such as holiday pay and
health insurance. However, this was partially offset by savings in health insurance
contingency in the Citywide Accounts. The remaining over expenditure can be attributed
mainly to $304,050 from internal service costs in Fleet Management (due to higher fuel
costs) and $83,524 from Property Management (due to renovations for Beach Patrol
facilities and stands). The remaining $61,050 represents prior year encumbrances that
must be brought forward as stated above.
• The Police Department exceeded its budget by $651,751 or 0.8% due primarily to higher
than anticipated internal service costs in Fleet Management as a result of higher fuel
costs and overtime.
• The Capital Renewal and Replacement Reserve exceeded its budget by $258,990 or
7.4% due to a transfer of prior year South Pointe Capital and Renewal Replacement
funds to set up the separate reserve required for these funds.
• The Public Works Department exceeded its budget by $188,977 or 3% due primarily to
higher than anticipated internal service costs in Fleet Management as a result of higher
fuel costs and maintenance and electrical costs for WiFi FDOT poles.
• The Human Resources Department exceeded its budget by $30,724 or 1.7% due to
unanticipated contractual labor obligations.
• The Economic Development Department exceeded its budget by $26,663 or 2.9% due
to higher than anticipated costs for Property Management internal service charges.
The General Fund reflects a surplus of revenues over expenses of $6.75 million. On the
expense side, this is primarily due to the City's continued implementation ofpro-active cost-
saving measures very early in the Fiscal Year 2007/08 in response to Property Tax Reform
discussions that were on-going during the fiscal year. These measures resulted in
significant cost-savings in almost every City department except for the Fire and Police
Department s for a total savings of approximately $2 million Citywide. With the exception of
the Public Works Department and Citywide Accounts, the expenditures are very similar to
those projected for FY 2007/08 as part of the information provided in August in the Proposed
FY 2008/09 Work Plan and Operating Budget.
First amendment to the FY 2007/08 General Fund, Enterprise and Internal Service Funds
Budgets
Page 3
In addition, on the revenue side, approximately $4.8 million in additional revenues were
realized primarily due to increased electrical and telephone taxes (Other Taxes), increased
interest earnings due to higherthan budgeted interest rates for longerterm investments and
fund balances, and increased building permit revenues (Licenses and Permits). These
increases were partially offset by reduced ad-valorem property taxes, intergovernmental,
charges for services, miscellaneous revenue, and increased rent/lease and fines and forfeit
revenues. With the exception of increased interest earnings and utility taxes, these were
anticipated in the FY 2007/08 third quarter projections that were included in the Proposed FY
2008/09 Work Plan and Operating Budget.
The City's financial policies adopted pursuant to Resolution 2006-26341 and Resolution
2002-24764 require one time revenues (such as the year-end surplus) must be used for
non-recurring expenses, and that at least half of each annual year-end surplus must
be allocated to the City's Capital Reserve Fund. However, the City's Capital Reserve
was established in FY 2005/06 at a time when the industry was at a peak, and project bids
were often coming in significantly higher than budgeted. Today is a very different market,
with construction bids being received significantly under project budgets, and at the same
time, the Capital Reserve has accumulated approximately $10 million in funding.
Further, pursuant to the Governmental Accounting Standards Board (GASB) standards
established in 2004, related to reporting of liabilities for benefits paid to retirees other than
pensions (OPEB), the City of Miami Beach has determined that it is in the best interest of the
City to establish an OPEB trust as it reduces the City's OPEB liability. Although, GASB
standards require the City to recognize the liability for OBEP benefits as incurred, it does not
prescribe that these must be funded or how. The City has the options of never funding the
liability; funding when and if funds become available; or funding pursuant to a plan that will
provide full funding over a reasonable timeframe. None-the-less, unfunded liabilities
typically affect the financial rating of the City. The Net Obligations for the City for FY
2007/08 range from $6.901 million with a Trust that is funded over time to $11.057 million
without a Trust. The General Fund component of the Net Pension Obligation for FY 2007/08
is $6.29 million, of which $4 million has been set aside from prior year-end surpluses.
As importantly, the City has performed an updated analysis of building permit fee revenues
and building department expenses. Pursuant to Florida Statute, it is required that
unexpended building fee revenues be carried forward to future years to fund allowable
activities in enforcing the Florida Building Code. This analysis has shown the carry forward
balance to be $10.475 million through September 30, 2008. This is primarily due to the
ongoing review of the application of building permit fee ordinance, and the implementation of
new processes which required upfront and back-end disclosure of the actual cost of
remodeling and square footage of new facilities, over the last two years, which resulted in $6
million above revenue budget in FY 2006/07 and an additional $4.6 million above revenue
budget for FY 2007/08. The City expects to fund this carry forward over time, as current
recurring revenues are not sufficient to cover the fully-burdened cost of expenditures of the
Building Department. None-the less, the City recognizes that it is prudent to put some funds
aside now, that may be needed later, since the Department has several improvement
initiatives underway that will require funding in the near-term. In addition, the expenditures
associated with building inspections will lag years behind as compared to when the building
permit fee revenues were collected, and the recent downturn in the economy is expected to
result in reduced building permit fee revenues in the upcoming years.
First amendment to the FY 2007/08 General Fund, Enterprise and Internal Service Funds
Budgets
Page 4
As a result, it is recommended that the Commission waive the requirement that at least half
of the FY 2007/08 year-end surplus be used to fund the City's Capital Reserve. Rather, it is
recommended that the General Fund budget be increased by using the $6.75 million surplus
as follows:
• $2.25 million to fund the City's FY 2007/08 accrued liability for post-employment (retiree
health) benefits pursuant to new requirements of GASB 45; and
• $4.5 million to a reserve for future Building Department needs.
Please note that this allocation does not reinstate the prior levels for the following items that
were reduced at the September 17 budget hearing, since the increase in Fire Rescue Fees
had not been approved by Miami-Dade County:
$0.42 million reductions in the Capital Investment Upkeep Account funds to $0.58
million; and
$0.3 million to reduction in the City's operating contingency to $1 million
A summary of the resulting increases and decreases to revenues and expenditures is
provided in the following section.
First amendment to the FY 2007/08 General Fund, Enterprise and Internal Service Funds
Budgets
Page 5
GENERAL FUND
Revenues
Reductions:
Ad Valorem Taxes (1,695,325)
Intergovernmental Revenues (383,878)
Charges for Services (245,690)
Miscellaneous (529,996)
Other Non-Operating Revenue (26,308)
Total Reductions (2,881,197)
Increases:
Other Taxes 1,212,364
Licenses and Permits 4,386,394
Fines and Forfeits 366,561
Interest 1, 637,849
Rents and Leases 53,442
Total Increases 7,656,610
Total Inc./(Dec.) to Revenue 4,775,413
Expenses
Reductions:
Mayor and Commission (31,145)
City Manager (6,865)
Communications (123,340)
City Clerk (37,897)
Finance (209,467)
Office of Budget & Performance Improvement (175,835)
Procurement (26,323)
City Attorney (206,166)
Building (200,027)
Planning (263,638)
Tourism & Cultural Development (313,371)
Neighborhood Services (380,242)
Parks and Recreation (1,097,765)
Capital Improvement Projects (504,929)
Citywide Accounts-Other (843,055)
Total Reductions (4,420,065)
Increases:
Human Resources 30,724
Economic Development 26,663
Public Works 188,977
Police 651, 751
Fire 1,186,012
Citywide Accounts-Capital Investment Upkeep Account 105,793
Capital Renewal & Replacement 258,990
Total Increases 2,448,910
Subtotal Inc./(Dec.) to Expenses (1,971,155)
Recommended Transfers
Reserve Future Building Department Needs 4,500,000
GASB 45 Reserve-OPEB 2,246,568
Total Increases 6,746,568
Total Inc./(Dec.) to Expenses 4,775,413
First amendment to the FY 2007/08 General Fund, Enterprise and Internal Service Funds
Budgets
Page 6
ENTERPRISE FUNDS
The City accounts for proprietary operations in Enterprise Funds. Convention Center,
Parking, Sanitation, Sewer, Stormwater, and Water are included in this grouping. In the
Enterprise Funds, the Stormwater Operations Fund Budget must be amended. The
Stormwater Fund is over by $353,368 due to prior year encumbrances for capital items and
higher than anticipated depreciation costs. These expenses will be offset by Retained
Earnings.
ENTERPRISE FUNDS
Stormwater Operations Fund
Revenue Appropriation
Retained Earnings
Total Revenue Increase
Expenditure Appropriation
Capital-Prior Year Encumbrances
Depreciation
Total Expenditure Increase
INTERNAL SERVICE FUNDS
$ 353,368
$ 353,368
$ 158,245
195,123
$ 353,368
The Internal Service Funds is composed of the Central Services, Property Management,
Risk Management, Fleet Management and Information Technology Funds. The Central
Services and Fleet Management Funds must be amended because they have exceeded
their expenditure budgets.
The Central Services Fund exceeded its budget by $74,203 primarily due to higher than
anticipated operating costs. This amount will be offset by increased interdepartmental
charges.
The Fleet Management Fund exceeded its budget by $1,172,510 primarily due to higher
than anticipated operating costs arising from higher prices for fuel. However, the increased
operating expenditures are offset by increased interdepartmental charges.
INTERNAL SERVICE FUNDS
Central Services Fund
Revenue Appropriation
Interdepartmental Revenues $ 74,203
Total Revenue Increase $ 74,203
Expenditure Appropriation
Payroll and Fringes $ 19,633
Operating Costs 54,570
Total Expenditure Increase $ 74,203
First amendment to the FY 2007/08 General Fund, Enterprise and Internal Service Funds
Budgets
Page 7
Fleet Management Fund
Revenue Appropriation
Interdepartmental Charges
Total Revenue Increase
$ 1,172,510
$ 1,172,510
Expenditure Appropriation
Payroll and Fringes
Operating Costs-Fuel
Capital-Prior Year Encumbrances
Total Expenditure Increase
CONCLUSION
$ 71,895
967,862
132,753
$ 1,172,510
The attached Resolution will allow the first amendment to departmental appropriations within
the General Fund, Enterprise and Internal Service Funds Budgets to be enacted. This action
is necessary to comply with Florida Statutes which stipulate that we may not expend more
than our appropriations provide.
JMG:KGB:JC