96-22133 RESO
RESOLUTION NO. 96-22133
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, PROVIDING FOR THE THIRD AMENDMENT TO
FISCAL YEAR 1995/96 BUDGETS WITHIN THE GENERAL FUND, TOTALING
$57,387,646; THE PARKING ENTERPRISE FUND, TOTALING $10,795,000;
AND THE RECREATION TRUST FUND, TOTALING $80,360.
WHEREAS, the Administration has performed a review of the City's
General, Enterprise, Internal Service, and Other Funds to determine if an
amendment to departmental revenue and expense appropriations is necessary
to maintain a balanced budget; and
WHEREAS, a determination has been made that functions within the
General Fund, totaling $57,387,646; the Parking Enterprise Fund, totaling
$10,795,000; and the Recreation Trust Fund, totaling $80,360, require an
amendment to their respective appropriations to cover unanticipated
revenues and unbudgeted expenses in the current year; and
WHEREAS, in order to increase certain revenue categories within the
budget document, an amendment is necessary to increase the Other Taxes,
Fines and Forfeits, Interest, Miscellaneous, and Other categories by a
total of $57,387,646 within the General Fund; and
WHEREAS, increased revenues within the categories of Other Taxes for
$333,550; Fines and Forfeits for $161,116; Interest for $975,000;
Miscellaneous for $55,059,280; and Other for $858,700, will provide the
source for increased expenditures, totaling $57,387,646 within the General
Fund; and
WHEREAS, in order to amend certain expenditure categories within the
budget document, an amendment is necessary to increase allocations by
$58,449,096, within certain General Fund departments, while simultaneously
decreasing other allocations by $1,061,450 within the General Fund, the net
impact of which is an overall increase to the General Fund budget of
$57,387,646; and
WHEREAS, increased appropriations are necessary within the Mayor and
Commission for $21,052; City Clerk for $58,015; Finance for $37,000; Police
for $1,739,500; Citywide for $56,593,529 totaling $58,449,096; and
WHEREAS, decreased appropriations are necessary within the City
Manager for $20,000; City Attorney for $53,000; Management and Budget for
$15,000; Community Relations/PIO for $25,000; Development/Design/Historic
Preservation for $192,000; General Services for $272,600; Public Works for
$208,050; Bass Museum of Art for $35,000; Building Services for $240,800
totaling $1,061,450; and
WHEREAS, debt proceeds from the 1996 Parking Revenue Refunding Bond
Series will provide the source for increased non-operating expenses
associated with this sale within the Parking Enterprise Fund for
$10,795,000; and
WHEREAS, fund balance within the Recreation Trust Fund will provide
the source for increased operating expenditures for $80,360; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the following departmental
appropriations wi thin General, Enterprise, and Trust Funds are hereby
amended to cover revenues and expenses as enumerated as follows:
GENERAL FUND
OPERATING REVENUES
Property Taxes
Other Taxes
Licenses and Permits
Intergovernmental
Charges for Services
Fines and Forfeits
Interest
Rents and Leases
Miscellaneous
Other
Fund Balance
Subtotal
DEBT SERVICE
Ad Valorem Taxes
Subtotal
Total Revenues
APPROPRIATIONS
Mayor & Commission
City Manager
City Attorney
City Clerk
Children/Families Affairs
Community Relations/PIO
Finance
Management and Budget
Human Resources
Building Services
Development Services
Bass Museum of Art
Recreation/Culture/Parks
General Services
Public Works
Fire
Police
Citywide Accounts
Subtotal
DEBT SERVICE
Debt Service
Subtotal
Total General Fund
FY 1995/96
Amended Budget
June 19, 1996
$41,413,821
15,884,700
6,725,000
9,307,500
1,875,163
738,884
3,725,000
928,228
4,243,094
8,726,196
174.849
$ 93.742.435
$ 10.368.286
$ 10.368.286
S104.110.721
$ 549,735
1,238,918
2,083,901
687,356
68,376
580,848
1,520,596
666,379
1,220,366
3,642,167
1,760,804
627,401
11,641,527
2,464,594
2,567,628
17,844,846
33,768,909
10.808.084
$ 93.742.435
$ 10.368.286
$ 10.368.286
S104.110.721
Increase/
(Decrease)
$ 0
333,550
o
o
o
161,116
975,000
o
55,059,280
858,700
o
$57.387.646
$
$
S57.387.646
$ 21,052
(20,000)
(53,000)
58,015
o
(25,000)
37,000
(15,000)
o
(240,800)
(192,000)
(35,000)
o
(272,600)
(208,050 )
o
1,739,500
56.593.529
$ 57.387.646
$ 0
$ 0
S 57.387.646
FY 1995/96
Amended Budget
Sept 25, 1996
$ 41,413,821
16,218,250
6,725,000
9,307,500
1,875,163
900,000
4,700,000
928,228
59,302,374
9,584,896
174.849
$151.130.081
o
o
$ 10.368.286
$ 10.368.286
S161.498.367
$ 570,787
1,218,918
2,030,901
745,371
68,376
555,848
1,557,596
651,379
1,220,366
3,401,367
1,568,804
592,401
11,641,527
2,191,994
2,359,578
17,844,846
35,508,409
67 . 401.613
$151.130.081
$ 10.368.286
$ 10.368.286
S161.498.367
ENTERPRISE FUNDS
APPROPRIATIONS
Convention Center
parking
Sanitation
Sewer
Storm Water
Water
Total Enterprise
FY 1995/96
Amended Budget
June 19, 1996
$ 23,339,563
10,432,716
3,758,139
23,491,396
3,398,813
15.236.363
S 79.656.990
INTERNAL SERVICE FUNDS
APPROPRIATIONS
Central Services $
Communications
Fleet Management
Property Management
Risk Management
Total Internal Serv S
TOTAL FUNDS
OTHER FUNDS
APPROPRIATIONS
Recreation Trust
TOTAL OTHER FUNDS
702,300
4,420,407
5,672,315
3,755,827
10.338.922
24.889.771
S208.657.482
s
S
617.500
617.500
Increase/
(Decrease)
$ 0
10,795,000
o
o
o
o
S 10.795.000
$
o
o
o
o
o
o
s
S 68.182.646
s
S
PASSED and ADOPTED this ~ day of
AB:U:1- rClA~
City Clerk
)~
nd Budget
~
lVI, .. I . i i
FY 1995/96
Amended Budget
Sept 25, 1996
$ 23,339,563
21,227,716
3,758,139
23,491,396
3,398,813
15.236.363
S 90.451. 990
$ 702,300
4,420,407
5,672,315
3,755,827
10.338.922
S 24.889.771
S276.840.128
s
S
697.860
697.860
i
LEGAL ~Pk-
By 141 ~ ~ ~
r~.te '.J(Li!1b--,,,.
CITY OF
MIAMI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. 560 - q Ie,
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE: September 25, 1996
FROM:
Jose Garcia-Pedrosa ~
City Manager
A RESOLUTION O~ .H MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLbRIDA, PROVIDING FOR THE THIRD AMENDMENT TO
FISCAL YEAR 1~5/96 BUDGETS WITHIN THE GENERAL, ENTERPRISE,
AND TRUST FUNDS
SUBJECT:
ADMINISTRATION RECOMMENDATION:
Approve the Resolution.
BACKGROUND:
Resolution Number R-94-21258 directed the Administration to provide
quarterly reports on the operating budget by comparing budget to actual,
with explanations on those revenue and expense categories and
classifications which our year-end projections reveal will be at a
significant variance to budget. On April 17, 1996, the first amendment
to Fiscal Year 1995/96 was adopted to cover prior-year encumbrances, and
on June 19, 1996, the second amendment was adopted for General,
Enterprise, and Internal Service Funds. As part of the second amendment,
we advised that a third amendment would be submitted during September to
reconcile preliminary year-end projections to the amended budget. An
analysis of the third quarter which ended on June 30, 1996, was also
provided via LTC #94-1996, dated July 26, 1996, which serves as the
foundation for this budget amendment. Since Florida Statutes prohibit
the overexpenditure of departmental budgets and funds without Commission
approval, it is necessary to amend appropriations for those funds which
our year-end projections indicate will exceed their budget authorization.
The Budget Advisory Committee is scheduled to review this proposed
amendment at its September 24, 1996 meeting.
ANALYSIS DISCUSSION:
This third amendment will increase the overall amended budget (General,
Enterprise, Internal Service Funds) by $68,182,646 or 33% from
$208,657,482 to $276,840,128 . Individually, this represents a
$57,387,646 or 55% change within the General Fund, and a $10,795,000 or
14% change within the Enterprise Funds. In addition, the Recreation
Trust Fund will be increased by $80,360 or 13% from $617,500 to $697,860.
DATE
C./l CD
C}-2S- '1~
AGENDA ITEM
Fiscal Year 1995/96 Third Budget Amendment
Page 2
September 25, 1996
In keeping with sound financial planning and budgeting practices, we
will, if necessary, present a fourth and final amendment during the month
of November supported with a year-end reconciliation for the fourth
quarter to recognize any unanticipated expenses and year-end closing
transactions which impact the budget document. Our external auditors
issued a management comment with regard to increasing the frequency and
timing of budget amendments throughout the year. During Fiscal Year
1994/95 two budget amendments were adopted, whereas in Fiscal Year
1995/96 four budget amendments are planned for presentation.
To recognize increased revenues to
expenditures to five departments, offset
nine departments, a budget amendment must
five categories, increased
by decreased expenditures to
be adopted.
This budget amendment will not reduce the current year's fund balance,
but will in fact provide for a $56,277,658 contribution to total fund
balance comprised of these elements-- $46,500,000 Interlocal Agreement,
$9,052,119 Ojus, and $725,539 from an operating surplus within the
General Fund. This will allow us to accomplish a $10,000,000 permanent
reserve per Commission policy adopted on June 5, 1996; provide a reserve
for capital projects in the amount of $46,500,000; and increase
unreserved fund balance by $725,539 from the current year's operations.
No funds from either the Interlocal Aareement or Ojus transactions will
become available for exoendi ture. since they will be reflected as
"Reserved" within fund balance. thus subject to aooroval bv the
Commission prior to expenditure.
As alluded, the recommendations for increased revenues flow from our
previous quarterly reports. Therefore, our projections indicate that
increased allocations within the General Fund will be required for Other
Taxes, Fines and Forfeits, Interest, Miscellaneous, and Other revenue
categories. Other Taxes is expected to exceed its budget by $333,550 due
to increased receipts in franchise and utility taxes. Fines and Forfeits
will exceed its budget by $161,116 due to enforcement of zoning and fire
code violations in keeping with the new "get-tough" policy. Interest is
expected to exceed its budget by $975,000 due to the income to be earned
from the receipt of $46.5 million from the Interlocal Agreement, and
$9,052,119 from the sale of Ojus. Miscellaneous will exceed its budget
by $55,059,280 due to the $46.5 million Interlocal Agreement and
$9,052,119 Ojus transactions, offset by losses in beachfront concessions,
beach access fees, public telephone booth permits, and miscellaneous
revenues ($492,839). Other revenues will exceed its budget by $858,700
due to an interfund transfer from Resort Tax into the General Fund to
offset north beach quality of life improvements approved by the
Commission on December 20, 1995, and tourism related expenditures.
Fiscal Year 1995/96 Third Budget Amendment
Page 3
September 25, 1996
Turning to expenditures within the General Fund, increases within the
Mayor and Commission ($21,852) for salaries and property management
charges; City Clerk ($58,015) for unbudgeted positions and advertising;
Finance ($37,000) for salaries; Police ($1,739,500) for overtime and
fleet management charges; and Citywide ($56,593,529) for the contribution
to fund balance ($56,277,658) and special projects, outside legal fees,
and accumulated leave ($315,871) are necessary. These increases will be
offset by decreased expenditures due to unfilled positions and reduced
operating expenditures in departments such as the City Manager ($20,000);
City Attorney ($53,000); Management and Budget ($15,000); Community
Relations/PIO ($25,000); Development/Design/Historic Preservation
($192,000); General Services ($272,600); Public Works ($208,050); Bass
Museum of Art ($35,000); and Building Services ($240,800).
Within the Enterprise Fund, the non-operating transfer of $10,795,000
from the Parking operations fund to its capital projects fund is the
direct result of the 1996 Parking Revenue Refunding Bond series. This
transaction is offset by debt proceeds in a like amount. Since this
transaction caused the Parking Enterprise Fund to exceed its total
appropriation, an amendment must be presented to recognize this non-
operating transaction. You will recall that 'we did a similar budget
amendment for the Convention Center on June 19, 1996, for the non-
operating transfer of $11,500,000 to Metro Dade County per the Convention
Center Development Tax/Performing Arts Center Interlocal Agreement
transaction.
No amendments to the Internal Service Funds are planned, as our
projections indicate that these funds will remain within their annual
allocations.
The Recreation Trust Fund provides for recreational programs, events, and
classes, supported by user fees and private donations, with no General
Fund contribution. Our review of the current year indicates that
expenditures will exceed budget by about $80,360. This is due in large
measure to the increased participation in recreation playground programs,
coupled with the City'S philosophy to turn no participant away results
in fee waivers to those participants who demonstrate a financial
hardship. You will recall that we amended this budget in the prior year
for $78,833. The Administration intends to present an analysis of this
fund's operations in the fall, with recommendations to review its fee
structure and program offerings. This is wise given that two consecutive
years have resulted in deficits and fees are no longer fully supporting
the programs and activities, as was the intention upon its creation.
Fiscal Year 1995/96 Third Budget Amendment
Page 4
September 25, 1996
THIRD AMENDMENT DISCUSSION:
Having provided an analysis of General, Enterprise, and Trust Funds, we
will now present the amendments required by fund to increase
appropriations to cover unanticipated revenues, unbudgeted expenditures,
and decreased expenditures. To either increase or decrease an
appropriation (revenue and expense), a budget amendment is necessary.
I. GENERAL FUND APPROPRIATIONS (REVENUES AND EXPENDITURES)
A. Increase of Operating Revenues
INCREASED APPROPRIATIONS
CATEGORY
Other Taxes
Fines and Forfeits
Interest
Miscellaneous
Other - Interfund Transfers
Total Increase
Net Increase/(Decrease) in Operating Rev
AMOUNT
$ 333,550
161,116
975,000
55,059,280
858.700
557.387.646
S57.387.646
B. Increase and Decrease of Operating Expenditures
INCREASED APPROPRIATIONS
DEP~TMENT
Mayor and Commission
City Clerk
Finance
Police
Citywide
Total Increase
DECREASED APPROPRIATIONS
DEPARTMENT
City Manager
City Attorney
Management and Budget
Community Relations/PIa
Development/Design/Hist Pres
General Services
Public Works
Bass Museum of Art
Building Services
Total Decrease
Net Increase/(Decrease) In Operating Exp
AMOUNT
$ 21,052
58,015
37,000
1,739,500
56.593.529
558.449.096
AMOUNT
$ (20,000)
(53,000)
(15,000)
(25,000)
(192,000)
(272,600)
(208,050)
(35,000)
(240.800)
5(1.061.450)
S57.387.646
Fiscal Year 1995/96 Third Budget Amendment
Page 5
September 25, 1996
II. ENTERPRISE FUND APPROPRIATION (REVENUES AND EXPENSES)
A. Parking Revenue and Expense
INCREASED APPROPRIATIONS
Revenue
Debt-Proceeds
Total Revenue
Expense
Other - Non-Operating Transfer
Total Expense
Net Increase/{Decrease)
Appropriation Increase
AMOUNT
$10.795.000
$10.795.000
$10.795.000
$10.795.000
$10.795.000
III. TRUST FUND APPROPRIATION (REVENUES AND EXPENDITURES)
A. Recreation Trust
INCREASED APPROPRIATIONS
Revenue
Fund Balance
Total Revenue
Expenditure
Operating
Total Expense
Net Increase/{Decrease)
$
$
AMOUNT
80.360
80.360
$
S
$
80.360
80.360
80.360
CONCLUSION:
The attached Resolution will allow the third amendment to departmental
appropriations within General, Enterprise, and Trust Funds to be enacted.
This action is necessary to comply with Florida Statutes which stipulate
that we may not expend more than our appropriations provide. Increased
operating revenues and decreased expenditures within the General Fund;
debt proceeds within the Parking Enterprise Fund; and fund balance within
the Recreation Trust Fund will provide the sources for this third
amendment.
JGP:PFL:DJJ:me
attachment - Resolution
f:\budg\$bud\danielle\wp60\3rdamend.96