2011-27732 Reso RESOLUTION NO. 2011 - 27732
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING
TENTATIVE BUDGETS FOR THE GENERAL, G.O. DEBT
SERVICE, RDA AD VALOREM TAXES, ENTERPRISE, AND
INTERNAL SERVICE FUNDS FOR FISCAL YEAR 2011/12
SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON
TUESDAY, SEPTEMBER 27, 2011 AT 5:01 P.M.
WHEREAS, the Manager's proposed General Fund operating budget released
August 31, 2011 was $245,175,318 and the total proposed operating budget for FY 2011/12 was
$425,633,275 including the General Fund, General Obligation Debt Service, Enterprise Funds and
Transfers to the Redevelopment District; and
WHEREAS, the budget for Internal Service Funds, which are wholly supported by
transfers from the General Fund, Enterprise Funds and the Redevelopment District, is $54,349,331;
and
WHEREAS, the proposed General Fund operating Budget included an additional
$1 million in electrical franchise fee revenues anticipated from a new agreement with Florida Power
and Light; and
WHEREAS, the proposed Enterprise Fund budgets included the additional
expenses from a Miami -Dade County fee wholesale rate increase for sewer users, anticipated to
result in $732,062 additional expenditures and these expenses were anticipated to be offset by a
pass- through increase to the sewer fee, resulting in additional expenditures; and
WHEREAS, the Commission deferred consideration of the FPL agreement and did
not approve the pass- though fee increase to the sewer fee at the September 14 Commission
meeting; and
WHEREAS, the Commission amended the sewer budget to offset the decreased
revenues by decreasing the funds to be set -aside for future "true -ups" with Miami -Dade County; and
WHEREAS, the Commission amended the General Fund budget by decreasing
contingency ($410,885), decreasing transfers to the Information and Communications Technology
Fund ($114,115), and increasing the corporate sponsorship revenues due to funds previously
anticipated to be collected in FY 2010/11 that will now be collected in FY 2011/12 ($475,000); and
WHEREAS, the Commission amended the General Fund budget to include an
additional position in the capital improvements office ($81,679) to be funded be charge -backs to
capital projects.
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City of Miami Beach hereby
adopts tentative budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise,
and Internal Service Funds for Fiscal Year 2011/12 as summarized and listed below, subject to a
second public hearing scheduled at 5:01 P.M., Tuesday, September 27, 2011.
G.O. DEBT INTERNAL
REVENUES GENERAL SERVICE RDA ENTERPRISE TOTALS SERVICE
GENERAL OPERATING REVENUES
Ad Valorem Taxes $ 99,009,520 $ 99,009,520
Af Valorem - South Pointe Costs 10,524,084 10,524,084
Ad Valorem - Capital Renewal & Repl. 1,755,752 1,755,752
Ad Valorem Taxes - Normandy Shores 108,469 108,469
Other Taxes 24,278,385 24,278,385
Licenses and Permits 17,074,053 17,074,053
Intergovernmental 10,091,000 10,091,000
Charges for Services 10,684,371 10,684,371
Fines and Forfeits 2,574,000 2,574,000
Interest 3,430,000 3,430,000
Rents and Leases 6,034,143 6,034,143
Miscellaneous 12,423,449 12,423,449
Other - Resort Tax Contribution 26,465,440 26,465,440
Reserves- Buildiing Dept Operations 1,546,709 1,546,709
Other - Non Operating Revenues 7,981,502 7,981,502
FY 09 Surplus Set Aside 3,551,120 3,551,120
Prior Year Surplus From Parking Op Fund 7,200,000 7,200,000
Sub - total $ 244,731,997 $ 244,731,997
G.O. DEBT SERVICE FUND
Ad Valorem Taxes $ 6,021,612 $ 6,021,612
Sub - total $ 6,021,612 $ 6,021,612
FUND TOTAL $ 244,731,997 $ 6,021,612 $ 250,753,609
RDA FUND -City TIF only
AD VALOREM TAXES
Property Taxes -RDA City Center (net) $ 17,010,810 $ 17,010,810
FUND TOTAL $ 17,010,810 $ 17,010,810
ENTERPRISE FUNDS
Convention Center $ 13,478,680 $ 13,478,680
Parking 44,720,629 44,720,629
Sanitation 15,929,943 15,929,943
Sewer Operations 34,458,433 34,458,433
Storm Water 14,586,215 14,586,215
Water Operations 33,519,573 33,519,573
FUND TOTAL $ 156,693,473 $ 156,693,473
INTERNAL SERVICE FUNDS
Central Services $ 886,490
Fleet Management 8,179,436
Information Technology 15,298,740
Property Management 8,234 369
Risk Management 21 750,296
FUND TOTAL $ 54,349,331
TOTAL ALL FUNDS $ 244,731,997 $ 6,021,612 $ 17,010,810 $ 156,693,473 $ 424,457,892 $ 54,349,331
APPROPRIATIONS
G.O. DEBT INTERNAL
FUNCTION /DEPARTMENT GENERAL SERVICE RDA ENTERPRISE TOTALS SERVICE
MAYOR &COMMISSION $ 1,584,212 $ 1,584,212
ADMINISTRATIVE SUPPORT SERVICES
CITY MANAGER 2,336,327 2,336,327
Communications 910,044 910,044
BUDGET &PERFORMANCE IMPROV 1,917,857 1,917,857
FINANCE 4,276,843 4,276,843
Procurement 963,052 963,052
Information Technology $ 15,298,740
HUMAN RESOURCES /LABOR RELATIONS 1,773,263 1,773,263
Risk Management 21,750,296
CITY CLERK 1,560,677 1,560,677
Central Services 886,490
CITY ATTORNEY 4,160,237 4,160,237
ECONOMIC DEV. & CULTURAL ARTS
Economic Development
REAL ESTATE, HOUSING & COMM DEV. 815,684 815,684
Homeless Services 922,163 922,163
BUILDING 9,978,689 9,978,689
PLANNING 3,358,427 3,358,427
Cultural Arts
TOURISM & CULTURAL DEV
Tourism & Cultural Development 2,428,085 2,428,085
CONVENTION CENTER $ 13,478,680 13,478,680
OPERATIONS
Code Compliance 4,357,351 4,357,351
Community Services 434,911 434,911
PARKS & RECREATION 28,136,411 28,136,411
PUBLIC WORKS 6,379,427 6,379,427
Property Management 8,234,369
Sanitation 15,929, 943 15, 929, 943
Sewer 34,458,433 34,458,433
Stormwater 14,586, 215 14, 586, 215
Water 33,519,573 33,519,573
CAPITAL IMPROVEMENT PROJECTS 4,745,322 4,745,322
PARKING 44,720,629 44,720,629
FLEET MANAGEMENT 8,179,436
PUBLIC SAFETY
POLICE 92,315,929 92,315,929
FIRE 58,956,279 58,956,279
CITYWIDE ACCOUNTS
CITYWIDE ACCTS - Normandy Shores 166,875 166,875
CITYWIDE ACCTS - Operating Contingency 778,270 778,270
CITYWIDE ACCTS -Other 8,922,525 8,922,525
Transfers
Capital Investment Upkeep Fund 196,500 196,500
Info & Comm Technology Fund 600,885 600,885
CAPITAL RENEWAL & REPLACEMENT 1,755,752 1,755,752
G.O. DEBT SERVICE $ 6,021,612 6,021,612
RDA -City TIF only
City Center (Net) $ 17,010,810 17,010,810
TOTAL - ALL FUNDS $ 244,731,997 $ 6,021,612 $ 17,010,810 $ 156,693,473 $ 424,457,892 $ 54,349,331
-20//—.2-7732
PASSED and ADOPTED this 14th day of September, 2011.
11
ATTEST:
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CITY CL E.RK :.INCORPIORATED1 * 1
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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"AW'r Attomew Date
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting tentative
budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal Service
Funds for Fiscal Year 2011/12 subject to a second public hearing scheduled on Tuesday, September 27,
2011 at 5:01 P.M.
Key Intended Outcome Supported:
Minimize taxes; Control Costs of payroll including salary and fringes; 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.): Based on the 2009 community survey, quality
of life in the City is rated highly, the City is seen as an `excellent' or `good' place to live, work, play or visit,
and over %'s of residents would recommend it to others as a place to live. Impressively, 31 of the
residential tracking questions from 2007 experienced increases in each of the areas measured by an
overall average of approximately 7.0 %; and 28 of 32 business tracking questions experienced increases
measured by an overall average of approximately 8.8 %. Important findings were: Cleanliness of
canals /waterways, the job the city is doing to address homelessness, and storm drainage were all
identified as areas for improvement, although improved from prior surveys; cleanliness, code
enforcement, and arts and culture were identified as services the city should strive not to reduce; and
value of service for tax dollars paid, cleanliness of streets, satisfaction with contacting the City
government handling of special events, traffic flow, code enforcement, police ratings, condition of roads,
availability of public parking, and consistency of inspections were all identified as key drivers of overall
satisfaction levels.
Issue:
Shall the Mayor and City Commission adopt the attached resolution establishing tentative budgets for the
General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal
Year 2011/12 and setting the date for the second public hearing?
Item Summary /Recommendation:
The FY 2011/12 Proposed Work Plan and Budget maintains current service priorities for the community,
despite property tax rates set at 1.2 mills (16 percent) lower than FY 2006/07 when property values were
similar to the 2011 certified values.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 $245,175,318 General Fund Operating
2 $ 6,021,612 G.O. Debt Service
_V_ 3
$ 17,010,810 RDA Funds -Ad Valorem Taxes
4 $157,425,535 Enterprise Funds
T otal
$425,633,275 *Net of Internal Service Funds
OBPI $ 54,349,331 Internal Service Funds
Financial Impact Summary: This budget represents more than $63 million in reductions in predominantly
recurring reductions over the last 4 years, and the General Fund Operating budget is 3 percent more than in FY
2006/07, in spite of 13 percent growth in the Consumer Price Index (CPI) in a similar period, over 80 percent growth
in pension costs, and many new facilities and projects coming on fine.
City Clerk's Office Legislative Tracking:
Sign -Offs:
Depa me t Direct Assistant City Manager Cit Manager
AGENDA ITEM R7A 2_
e
M IAMIBEACH DATE _! ^4
q y l
CA- MIAMIB
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: September 14, 2011
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING TENTATIVE
BUDGETS FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD
VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS
FOR FISCAL YEAR 2011/12 SUBJECT TO A SECOND PUBLIC
HEARING SCHEDULED ON TUESDAY, SEPTEMBER 27, 2011 AT
5:01 P.M.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution
which establishes tentative budgets for the General, G.O. Debt Service, RDA Ad Valorem
Taxes, Enterprise, and Internal Service Funds for Fiscal Year (FY) 2011/12.
PROCEDURE
As outlined in the companion General Operating Miliage Agenda Item, Section 200.065,
Florida Statutes specifies the manner in which budgets are adopted. First, the tentative
millage rate for both the general operating and debt service is adopted, then immediately
thereafter, tentative budgets by fund are adopted. The attached Resolution adopting
tentative budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise,
and Internal Service Funds for FY 2011/12 is therefore presented to you at this time for
adoption.
Additional details are contained in my Budget Message which is attached, however,
highlights of that document are outlined below.
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 improved services that address needs and
priorities identified by the community (primarily in public safety, cleanliness, landscaping and
beautification, recreation and cultural arts programming, renewal and replacement funding
for our facilities, and building /development functions); and providing structural changes that
enhanced capital funding and reserves.
Adopting Tentative Budgets
September 14, 2011
Page 2
In 2009, the City of Miami Beach conducted its third set of statistically -valid community
surveys. The Community Survey was designed to provide resident input on quality of life, city
services, and taxes; and to identify key drivers for improvement. Impressively, all 31 of the
residential tracking questions from 2007 experienced increases in each of the areas
measured by an overall average of approximately 7.0 %; and 28 of 32 business tracking
questions experienced increases measured by an overall average of approximately 8.8 %. It
is unusual for an entity to see improvement across such a broad range of areas, and the
significant percentage increase in each of these areas is even more unusual. These results
indicate a high level of satisfaction with Quality of Life in Miami Beach and the services
provided by the City.
However, these objectives have become increasingly more challenging in the last several
years, due to changes in property tax legislation, property values that first increased and
then declined, and increasing pension plan contributions due to the downturn in the
investment market. Between FY 2007/08 and FY 2010/11, the General Fund absorbed
more than $41 million in reductions (almost 20 percent of the $237.5 million FY 2010/11
General Fund budget) and reductions of approximately $47 million and 260 positions across
all funds. Combined with more than $15 million in employee "give- backs" between FY
2009/10 and FY 2010/11, this represents more than $62 million in combined "givebacks"
n reductions d eductions over 4 years.
Despite this significant reduction and despite increases in costs such as pension, living
wage impacts, fuel, and other operating expenses, the City of Miami Beach has essentially
kept services and enhancements that were added through FY 2006/07 to address needs
and priorities identified by the community. We have continued to focus on priorities: public
safety, cleanliness, landscaping and beautification, recreation and cultural arts
programming, renewal and replacement funding for our facilities, building /development
functions, and structural changes that enhanced capital funding and reserves, while bringing
on line several capital projects with expanded operations and maintenance and resulting
increases in operating costs for facilities as shown such as by the examples provided below:
• North Shore Park and Youth Center
• South Pointe Park, Soundscape Park
• Collins Parks and surrounding neighborhood streetscapes
• Bandshell Facility improvements
• Normandy Shores Golf Course
• Normandy Isle Park and Pool
• Beachfront Bathrooms
• Colony and Byron Carlyle Theatres
• Beachwalk and Baywalk
• Multiple streetscapes
As a result, we have been able to achieve significant value to our community. The median
taxable value for a homesteaded property on Miami Beach as of January 1, 2010 was
$119,461, resulting in $774 in total taxes paid to the City of Miami Beach, with half of the
homesteaded properties paying even less than this. In fact, 6 percent of homesteaded
properties, almost 1,000 properties, pay no taxes at all to the City of Miami Beach.
Adopting Tentative Budgets
September 14, 2011
Page 3
POTENTIAL CHANGES TO THE FY 2011/12 PROPOSED WORK PLAN AND BUDGET
During the Commission Retreat in May, 2011, at the time of adoption of the proposed
operating millage on July 13, 2011, and, again, during Finance and Citywide Projects
Committee (FCWPC) meetings in late July, 2011, it was agreed to set the proposed
operating millage at the same level as FY 2010/11, with the caveat that the Administration
should strive to reduce the millage before final adoption. Further, as highlighted in the
Proposed Work Plan and Budget distributed in August, 2011, a few potential reductions and
enhancements presented at the July, 2011 FCWPC meeting were pending additional
evaluation, a couple of which had the potential to reduce the millage.
For perspective, it is important to note that every reduction of $180,000 to the proposed FY
2011/12 General Fund budget is equivalent to 0.01 mills. Every 0.01 mills results in annual
savings of $1.19 to the median value homesteaded property, and $2.77 to the average value
property.
Based on this further review, the following items are considered potential reductions for
inclusion in the FY 2011/12 General Fund Budget. A brief explanation for each item is
provided on the following pages.
i age
Potential Reduction $ Impact Impact
Eliminate the additional contingency derived
during the balancing of the General Fund
operating budget $ (89,155) (0.005)
Reduce
ce Funding 9 in the FY 2011/12
Information and Technology Fund Transfer $ (114,115) (0.006)
Reduce Police overtime by $300,000 out of $3.3
million in General Fund overtime $ (300,000) (0.017)
Change Ocean Rescue Division Schedule to 5
days per week/8 hours per day on a year round
schedule $ (400,000) (0.022)
Total 1 $ (903,270)1 (0.050)
Adopting Tentative Budgets
September 14, 2011
Page 4
• Eliminate the additional contingency derived during the balancing of the General
Fund Operating budget— as a result of the reductions and transfers incorporated to
balance the budget, the proposed FY 2011/12 General Fund budget includes
$89,155 in additional contingency, beyond the $1,100,000 in operating contingency
typically included each year. Eliminating this additional $89,155 brings the budgeted
General Fund Operating contingency back to $1.1 million.
• Eliminate Contingency Funding in the FY 2011/12 Information and Technology Fund
Transfer — The proposed FY 2011/12 General Fund budget includes a transfer of
$715,000 to the Information and Technology Fund, the same level of transfer as in
FY 2010/11. At the time of presentation to the FCWPC in July 2011, the
Administration identified projects totaling $518,085, leaving a contingency of
$196,915. During the meeting, the Committee requested adding computers for
Code enforcement to the list of projects in the amount of $28,800, thereby reducing
the contingency to $168,115. I am comfortable reducing the transfer by $114,115 for
FY 2011/12, leaving a contingency of $54,000.
• Reduce Police overtime by $300, 000 out of $3.3 million in General Fund overtime —
Overtime in the Police Department is used to address manpower shortages; crime
investigations; pro - active crime enforcement initiatives; neighborhood community
meetings; special details; and training activities . This does not include Memorial
Day, Spring Break or other special events which are in the Proposed Resort Tax
Fund Budget; overtime within the City Center Redevelopment Area (RDA) which is
charged to the RDA Fund; nor Court overtime within the Police Department budget.
This brings the overtime levels similar to the FY 2010/11 projected expenditures.
While I do not have specific recommendations as to how this overtime reduction will
be accomplished, I would like to challenge the Police Department to find
opportunities for increased efficiencies.
• Change Ocean Rescue Division Schedule to 5 days per week/8 hours per day on a
year round schedule — This potential reduction was discussed at the July, 2011
FCWPC meeting and the Committee directed the Administration to pursue further
evaluation. While independent specific counts are not available by time of day, the
Fire Chief and I are comfortable reducing seasonal staff by $400,000, resulting in a
later morning start at lifeguard stands except Lummus Park, while retaining
approximately $100,000 in overtime for roving lifeguards on ATVs in the morning or
other unanticipated needs.
In addition to the reductions identified above, the FCWPC directed the Administration to
evaluate contracted security service being provided and asked for further analysis from the
Police Department regarding eliminating Citywide contracted security expenditures while
maintaining Redevelopment Areas (beach walks, boardwalks, Lincoln Road, etc.). Based on
the review to date, the Police Department is not recommending any reductions in contracted
security. The Police Department will continue to review throughout the year for potential
improvements.
Adopting Tentative Budgets
September 14, 2011
Page 5
Further, additional information was requested by the FCWPC regarding the proposed
addition of a position in the Capital Improvements Project (CIP) Office for project estimating
and scheduling. Since July, the CIP Director has met with Commissioners and further
clarified the role of this position as follows:
• Ensures maximum productivity and optimized delivery of construction management
and support services by developing, implementing and maintaining electronic project
management and scheduling systems that will streamline processes and increase
their efficiency.
• Allows project and construction managers to better utilize their resources and time,
and in turn improve their teams' performance by more clearly defining planning
needs, tasks, resource allocation requirements, milestones and specific timelines, to
name a few.
• Provides support to the administration by producing reports, tables and charts from a
centralized scheduling and data management tool that can be used to more globally
assess construction resource planning and workload management to more
effectively manage the capital construction program.
• Provides work planning and scheduling assistance by providing "look- ahead" activity
reports that can be used to enhance planning activities associated with
presentations to boards, regulatory agencies and Commission.
Based on these discussions, I am recommending that this position be added to the FY
2011/12 General Fund Budget, an impact of $81,679 to be offset by charge -backs to capital
projects.
Further, as the change in leadership in the Police Department progresses, there is potential
opportunity to further streamline the Department organizational structure. I hope to bring you
recommendations in this area later in the year, but anticipate that, rather than just reduce
cost, I am hopeful that streamlining will allow the potential to enhance patrol deployment. I
have, therefore, not incorporated any changes in this regard, at this time.
As a result, the total General Fund Operating Budget potentially could decrease by $0.9
million based on these reductions from $245,175,318 to $244,353,727, with a
commensurate decrease in the operating millage rate of 0.05 mills. A reduction of 0.05 mills
results in annual savings of $5.97 to the median value homesteaded property, and $13.86 to
the average value property.
Should the Commission support any or all of these reductions, they will be incorporated into
the proposed FY 2011/12 budget for consideration at the second budget hearing 9 on
Tuesday September 27, 2011.
Adopting Tentative Budgets
September 14, 2011
Page 6
OTHER OPPORTUNITIES TO REDUCE THE FY 2011/12 BUDGET
There has been discussion also, albeit to a lesser extent, of more dramatic reductions in
millage rate. It is important to note that the recommendations regarding the City's operating
millage was made after a careful review of expenditures. As shown in the table below, the
greatest component of General Fund expenditures are salaries and benefits, representing
approximately $177.6 million, or 72 percent, of the $245.2 million FY 2011/12 proposed
budget. When salaries and benefits from the internal service funds that are charged to the
General Fund are included, this increases to $185 million, or 75 percent of the General
Fund proposed budget.
Given the no layoff and wage provisions subsequently incorporated into City contracts
through September 30, 2012, reductions in personnel costs are challenging to implement for
FY 2011/12, although the proposed FY 2011/12 budget does incorporate some reductions.
However, all City bargaining agreements, except one, expire September 30, 2012, and the
pension reform initiative currently underway by the City's Budget Advisory Committee,
provides greater opportunities to further reduce personnel costs, and pension costs in
particular, for FY 2012/13, and not impact service levels to the community.
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� 6��,•�r r q'r';rs<�`>sz"r�����:.:$p9 �.��� _ � � E6 S; �'� t � ' �
4 %.t.00 <.no,; ;,e t.o% � : ...... n, ... ;!;r•., ,a . ?'i.. �: .i :o.... �. .. ....... ': S,. R��u: 9 .. .r.:.. o
x
Salaries $101.45 $101.28 41% $106.53 43%
Overtime /Othe r Wages 12.64 10.72 4% 10.85 4%
Benefits
Pension - F &P 35.60 35.60 15% 35.60 15%
Pension - MBERP 10.97 10.97 4% 12.08 5%
Other Pension Costs 5.80 5.80 2% 5.86 2%
Health and Life 9.16 9.14 4% 9.59 4%
Other Benefits 4.04 4.04 2% 4.63 2%
Total Benefits 65.57 65.55 27% 67.75 28%
Total Salary and Benefits 179.66 177.55 72% 185.13 76%
Operating 27.05 27.21 11% 52.94 22%
Internal Service Funds 36.18 36.19 15% 0%
Capital & Debt 4.18 4.23 2% 7.11 3%
Total $ 247.07 $ 245.18 1 100% $ 245.18 100%
The balance of $27.2 million in operating costs include rents and utilities; expenditures
related to our two golf courses; public safety supplies and maintenance items, contracted
landscape maintenance; supplies and expenditures related to arts, culture, parks and
recreation; general maintenance contracts, auditing services; notifications and promotions;
outside legal support and special master support; elections expenditures; grants to
organizations and social services; recruitment related expenditures, including background
checks and testing; contracted Building and Code enforcement support, including inspectors
and the CaII Center; as well as $1.2 million in operating contingency.
Adopting Tentative Budgets
September 14, 2011
Page 7
PROPOSED FY 2011/12 GENERAL FUND BUDGET
The City of Miami Beach has experienced significant change in the last several years, due to
changes in property tax legislation, property values that first increased and then declined,
and increasing pension plan contributions due to the downturn in the investment market.
However, property values and the General Fund operating budget in FY 2010/11 as
compared to FY 2006/07 are essentially the same, $22.7 billion versus $22.1 billion, and
$237.7 million versus $237.5 million, respectively.
In addition to reduction and employee givebacks, today's General Fund Operating Budget
also reflects greater diversification of revenues since FY 2006/07. In FY 2006/07, the
percentage of the budgeted supported by property taxes paid by Miami Beach property
owners was 59 percent. As of FY 2010/11, the percentage decreased to 47 percent.
Of note, the FY 2011/12 proposed General Fund budget net of pension costs, is only about
$7.5 million (3 percent) more than the FY 2006/07 budget, despite pension increases of $24
million during the same period. Inflation from October, 2006 through June, 2011, a similar
period, was approximately 13 percent. This reflects a decrease across all other
expenditures during that time, and even offsetting increases in health and salaries, a
growing concern to us, as there is and should be a limit to the proportion of budget allocated
to these costs. At this point, pension costs alone represent $52.4 million (22 percent) of the
total General Fund budget. As a result, pension reform continues to be a high priority for the
City, with recommendations anticipated from the Budget Advisory Committee in January,
2012. This timing allows for the recommendation to be incorporated into the next set of
contract negotiations which will begin next summer.
Further, while a significant portion of property taxes in our City are collected from hotels,
restaurants and other businesses; a significant source of revenue to the General Fund is
from non - property tax tourism and business - related sources which have increased steadily
over the years. The Proposed Work Plan and Budget includes resort taxes and a transfer
of Parking Operations Fund year -end surplus as well as Parking Operations Fund
reimbursements and right -of -way fees paid to the General Fund that total almost $37 million;
approximately 15 percent of the Proposed General Fund FY 2011/12 Budget. In large part
due to these alternative sources, property tax revenues represent less than half (45
percent) of the total funding for the General Fund budget, as compared to 59 percent in
FY 2006/07, a significant reduction over the past several years.
In addition, the FY 2011/12 Proposed Work Plan and Budget incorporates $400,000 in
additional funding from the corporate beverage sponsorship agreement approved by the City
Commission in July 2011, pending final negotiations. This $400,000 represents the
beginning of $7 million in cash and in -kind payments to the City estimated over the 10 years
of the agreement as we continue to pursue options to reduce the tax burden on our
residents and commercial property owners.
At the time of adoption of the proposed millage in July, it was estimated that the City had a
gap of $5.4 million, a significantly improved position from the estimated gap of $32 million at
the same time in the development of the FY 2010/11 budget. Between setting the
preliminary millage in July and finalizing the Proposed Work Plan and Budget, as we
committed to do, we refined our projections. Our revenues, in particular, tend to have
greater fluctuations than expenditures, and we are conservative early in the process and
Adopting Tentative Budgets
September 14, 2011
Page 8
refine these projections over the summer. Changes since July include increased revenue
estimates (primarily building development process fees, and rents and leases, offset by
decreased interest earnings). As a result, the projected gap has been reduced to $4 million.
The major components of the gap are explained below.
• $1.9 million increase to reflect previously bargained salary adjustments for employees
• $0.3 million increase in overtime cost primarily due to increases in Police court overtime.
• $4.2 million increase in the General Fund portion of the City's annual required
contributions to the Fire and Police ($2.2 million) and General Employees ($2 million)
pension plans.
• $2.8 million increase in health insurance costs.
• $1.1 million Increase in Internal Service Fund charge -backs primarily due to similar
increases in salary and pension costs as described above.
• $0.8 million in reduced property tax revenues.
These are partially offset by:
• $0.7 million reduction in operating expenditures.
• $6.4 million in increased non property tax revenues.
Together, salaries and fringes charged directly to the General Fund represent approximately
73 percent of the total current service level (CSL) General Fund budget of $247 million,
(including the impacts of merit/steps increases, and pension contributions). It is important to
note, that the approximately $27 million in other operating costs (11 percent of CSL budget)
reflects a decrease of approximately $700, 000. This savings reflects the results of various
cost savings initiatives by the City such as re- bidding contracts, careful review of department
line item expenditures, and other efficiencies.
Approximately $4 million of the $6.4 million increase in non property tax revenues was
planned for at the time of the adoption of the FY 2010/11 budget, through increased
transfers from prior year Parking Operating Fund surplus and sidewalk cafe fee revenue.
The remainder reflects improving conditions in the City of Miami Beach, including sales
taxes, building development process fees, and rents and lease revenues.
Exhibits A through E to my budget message provide a summary of the
efficiencies /reorganizations, service reductions, revenue enhancements, and service
enhancements considered as part of the development of the proposed FY 2011/12 Work
Plan and Budget. As a result of these initiatives, the proposed budget continues 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.
— the services that our residents and businesses told us yet again are important to them
during the 2009 Community Satisfaction Survey.
Further, the approximately $4 million gap between Current Service Level revenues and
expenditures has been addressed through the efficiencies and reductions, in addition to
transferring special event like expenditures to the resort tax fund and increasing resort tax
revenue transfers into the General Fund.
• $0.4 million Efficiencies and Reductions
Adopting Tentative Budgets
September 14, 2011
Page 9
• $2.1 million Expenditures more appropriately funded from the Resort Tax Fund
• $2.0 million Increased transfers from Resort Tax to the General Fund
This leaves approximately $0.5 million of revenues in excess of expenditures that allows for
some modest enhancements in response to community priorities, provides funding for
adjustments to the living wage requirements for contracted services, and provides
approximately $89,000 in additional operating contingency.
• $0.3 million Service Enhancements
• $0.1 million Living Wage adjustments
• $0.1 million Additional Contingency
Use of One -Time Revenues
The City's policy regarding use of one -time revenues states that "The City of Miami Beach
will use one time, non - recurring revenue for capital expenditures or one time expenditures
and not subsidize recurring personnel, operations, and maintenance cost ".
The FY 2011/12 Proposed Work Plan and Budget includes the use of $3.55 million in year-
end surplus (revenues in excess of expenditures) from FY 2009/10 year- end and the FY
2010/11 mid -year budget amendment that was set aside for possible use in balancing the
FY 2011/12 budget, as needed. As a result, it is recommended that the Commission waive
this policy for this use of prior year -end surplus. A similar amount ($3.66 million) was
included in the adopted FY 2010/11 budget. While this is generally not a recommended
financial practice, it is being recommended at this time so as to allow for a gradual decline in
the use of one -time revenues over the next few years. Please note that this
recommendation is made cautiously. As with the FY 2010/11 budget, it is my intention to
expend these dollars last during the fiscal year, so that if any savings are achieved
throughout the year, the amount of funds needed from this source will be reduced, in which
event the funds will be available to be used in subsequent fiscal years.
PROPOSED FY 2011/12 ENTERPRISE FUND BUDGETS
Enterprise Funds are comprised of Sanitation, Water, Sewer, Stormwater, Parking, and
Convention Center Departments. The Proposed FY 2011/12 Enterprise Funds Budget is
$157.4 million. This represents an increase of $1.6 million from the FY 2010/11 Enterprise
Fund Budget, an increase of 1 percent.
In addition to increases in $1.6 million in pension and internal service charges, the primary
drivers of this increase are the following:
• An additional $5.5 million is in other costs in the Parking Operating Fund primarily due
to:
o a $1.6 million increase in salaries, health insurance, and funding for post
retiree health similar to increases in the General Fund
o a $1.4 million decrease in other operating costs
o a $3.6 million increase in the prior year Parking Operating Fund surplus
transfer to the General Fund, from $3.6 million to $7.2 million, and
Adopting Tentative Budgets
September 14, 2011
Page 10
o a $1.7 million increase in the transfer to Parking Reserves from $3.6 million in
the FY 2010/11 adopted budget to $5.4 million in the FY 2011/12 proposed
budget.
• $5.8 million in debt service due to $4.4 million anticipated with the issuance of
approximately $50 million in Stormwater bonds in FY 2011/12 as well as an increase of
$1.4 million for the second year of debt service for the series 2009 Stormwater bonds.
• $0.7 million due to increase in the County wholesale rate for sewer.
These increases are offset by a $9.2 million decrease in transfers to the Water, Sewer and
Stormwater rate stabilization funds and a $3 million decrease in sewer wholesale payments
(prior to the fee increase) to Miami -Dade County as compared to budget.
Of note, the transfers to the rate stabilization fund are made for debt coverage purposes only
so that the net revenues at year -end are sufficient to exceed the bond coverage requirements.
Since they are not anticipated to be needed to cover expenditures, they are projected to return
to the water and sewer rate stabilization funds at year end and are then available for debt
coverage calculations in the following year.
Further, the Miami -Dade County wholesale rate increase of 1.092 cents per thousand gallons,
results in an average increase of $1.21 per month based on an average of 11,000 gallons per
month. The sanitation fee impact is 37 cents per household per month.
PROPOSED FY 2011/12 INTERNAL SERVICE FUND BUDGETS
Internal Service Funds are comprised of the Central Services, Fleet Management,
Information Technology, Risk Management and Property Management Divisions. The
Proposed FY 2011/12 Internal Service Fund budget is $54.3 million. This represents an
increase of $1.9 million (4 percent) from the FY 2010/11 budget, primarily due to increases in
salary, pension and health cost similar to those described in the General Fund. These costs
are completely allocated to the General Fund and Enterprise Fund departments, and the
Risk Management Fund reimburses the General Fund for the cost of legal services.
The Property Management Fund includes the modest reduction in janitorial services offset
by the purchase of a Vacuum Truck for the enhanced maintenance of Beach Showers and
the additional $50,000 in contractual support for 40 year building recertification's required by
Miami -Dade County Code.
Adopting Tentative Budgets
September 14, 2011
Page 11
CONCLUSION
In summary, the proposed FY 2011/12 General Fund operating budget maintains current
service priorities for the community, despite property tax rates set at 1.2 mills (16 percent)
lower than FY 2006/07 when property values were similar to the 2011 certified values.
The Administration recommends adoption of the attached Resolution which establishes
tentative budgets for General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and
Internal Service Funds for FY 2011/12, subject to a second public hearing scheduled on
Tuesday, September 27, 2011 at 5:01 P.M.
Attachment
JMG:KGB:JC
MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
Jorge M. Gonzalez, City Manager
Tel: 305 -673 -7010, Fax: 305-673-7782
August 31, 2011
Honorable Mayor Matti Herrera Bower and Members of the City Commission:
I am pleased to transmit the Proposed Work Plan and Operating Budget for Fiscal Year (FY)
2011/12, commencing on October 1, 2011 and ending on September 30, 2012 (Proposed Work
Plan and Budget), including the Proposed Work Plan, the Proposed Operating Budget, the
Proposed Capital Budget, and the associated Capital Improvement Program for FY 2011/12
through FY 2015/16. The total Proposed General Fund Operating Budget is $245,175,318,
which is $7.7 million or 3 percent more than the FY 2010/11 adopted budget of $237,518,1 14.
Further, General Fund reserve levels as of September 30, 2010 for the 11 percent emergency
reserve and the 6 percent contingency goal was a total of $38.6 million. The General Fund 11
percent requirement for FY 2011/12 based on the proposed operating budget net of capital
transfers is $26.7 million, resulting in $1 1.9 million (a 4.9 percent additional contingency), if there
are no additional changes in fund balance, and no additional transfers made.
The City's Proposed operating budget in total for FY 2011/12 is $425,633,275 including the
General Fund, General Obligation Debt Service, Enterprise Funds and Transfers to the
Redevelopment District. This reflects an increase of $9.1 million, 2 percent, over the prior year total
adopted operating budget of $416,512,891. In addition, the budget for Internal Service Funds,
which are wholly supported by transfers from the General Fund, Enterprise Funds and the
Redevelopment District, is $54,349,331, an increase of $1.9 million, 4 percent, over the prior
year total adopted operating budget of $52,434,877.
Budget Highlights
• This budget represents more than $63 million in reductions in
predominantly recurring reductions over the last 5 years
General operating millage rate is kept flat, and remains 1.2 mills below
FY 2006/07 when property values were at a similar level — resulting in a
net tax levy reduction of $29 million
• The General Fund Operating budget is 3 percent more than in FY
2006/07, in spite of 13 percent growth in the Consumer Price Index (CPI)
in a similar period, over 80 percent growth in pension costs, and many
new facilities and projects coming on line
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 2
The City of Miami Beach has experienced significant change in the last several years, due to
changes in property tax legislation, property values that first increased and then declined, and
increasing pension plan contributions due to the downturn in the investment market. However,
property values and the General Fund operating budget in FY 2010/11 as compared to FY
2006/07 are essentially the same, $22.7 billion versus $22.1 billion, and $237.7 million versus
$237.5 million, respectively.
Since their peak in FY 2007/08, property values Citywide have declined almost $4.9 billion,
approximately 18 percent, despite almost $3 billion in new construction added to the roll. Without
the new construction, the decline in values would be even greater, at 29 percent. Outside the City
Center RDA, which impacts General Fund Property Tax revenues, the decline in values is even more
significant at 20 percent, even after new construction.
Between FY 2007/08 and FY 2010/11, the General Fund absorbed more than $41 million in
reductions (almost 20 percent of the $237 million FY 2010/11 General Fund budget) and
reductions of approximately $47 million and 260 positions across all funds. Combined with more
than $15 million in employee "give- backs" between FY 2009/10 and FY 2010/11, this represents
more than $62 million in combined "givebacks" and reductions over 4 years.
Total 4 -Year Reductions*
General Fund $ Impacts FT PT
Public Safety $ (7,282,340) (69.0) 1.0
Operations (5,716,536) (59.5) (23.0)
Administrative Support (2,797,510) (31.9) -
Econ & Cultural Dev (1,193,426) (17.0) -
Citywide (1,392,642) - -
Subtotal Reductions $ (18,382,454) (177.4) (22.0)
Transfers $ (22,734,851) - -
Total General Fund Reductions $ (41,117,305) (177.4) (22.0)
Internal Service Funds $ (3,398,225) (37.1) - _
Enterprise Funds (2,558,728) (31.5) 8.0
GRAND TOTAL REDUCTIONS ** _ $ (47,074,258) (246.0) _ (14.0)
Estimated Employee Givebacks $ (15,297,085)
GRAND TOTAL REDUCTIONS AND GIVEBACKS $ (62,371,343) (246.0) (14.0)
* FY 2010/11 Budget included reductions for contracting out/converting positions to part -time mid -year, resulting in $221,901
in department savings offset by increased operating contingency in the General Fund. These were not implemented and the
FY 2010/11 reductions shown above exclude these "Plan B" reductions
** The City Center RDA also includes the reduction of 1 full time position as part of minimal service impact efficiencies (4
full time positions as part of "Plan B" were not implemented)
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 3
In addition to reduction and employee givebacks, today's General Fund Operating Budget also
reflects greater diversification of revenues since FY 2006/07. In FY 2006/07, the percentage of
the budgeted supported by property taxes paid by Miami Beach property owners was 59 percent.
As of FY 2010/11, the percentage decreased to 47 percent.
It is important to remember that in prior years, the City of Miami Beach significantly reduced tax
rates as property values increased. Between FY 1999/00 and FY 2010/11, property tax rates
declined approximately 2.2 mills. In FY 2007/08 alone, the property tax rate declined by
approximately 1 .8 mills, with annual savings to the average homesteaded property of over $400.
In addition, in FY 2005/06 and FY 2006/07, the City funded $200 and $300 homeowner
dividends paid to homesteaded property owners in the City.
Property Value, Millage and Property Tax Levy
Impact to a average value
homesteaded property with
CPI adjustment to assessed
Millage Rates Budgeted Tax Levy (in millions) value
General Fund
Taxable Total (including
Property General Total S. Pointe, and
Budget Values Total Fund /RDA including Renewal &
Year (billions) Citywide Millage Debt Replacement) Annual Cumulative
FY1997/98 $ 6.46 9.2100 7.4990 $ 57.45 $ 46.78
FY1998/99 $ 6.97 8.9830 7.4990 $ 60.37 $ 44.66
FY1999/00 $ 7.66 8.6980 7.4990 $ 64.29 $ 47.36
FY2000 /01 $ 8.37 8.5550 7.3990 $ 69.08 $ 49.75
FY2001/02 $ 9.40 8.3760 7.2990 $ 75.97 $ 54.37
FY2002/03 $ 10.56 8.3220 7.2990 $ 84.81 $ 61.05 *W >, A*
FY2003/04 $ 12.09 8.1730 7.2990 $ 95.39 $ 68.17`
FY2004/05 $ 14.04 8.1730 7.4250 $ 110.74 $ 79.38'
FY2005/06 $ 17.45 8.0730 7.4810 $ 135.91 $ 111.69 ,*0.
FY2006/07 $ 22.74 7.6730 7.3740 $ 168.38 $ 140.31 r`
FY2007/08 $ 26.85 5.8970 5.6555 $ 150.42 $ 125.33 ($436.00) ($436.00)
FY2008/09 $ 26.90 5.8930 5.6555 $ 150.59 $ 125.94 ($86.00) ($522.00)
FY2009/10 $ 24.70 5.9123 5.6555 $ 138.70 $ 115.73 ($80.00) ($602.00)
FY2010/11 $ 22.10 6.5025 6.2155 $ 136.55 $ 112.14 $221.00 ($381.00)
Further, the per capital tax levy was $1,649 for FY 2006/07 as compared to an estimated $1,276
for FY 2010/11, a decrease of $374, per resident, or 23 percent.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 4
Total Combined Millage
p Millage Rate
• I •
1 1 1 1 1 1 II 1 1
v
i
�v
rl
p 1111111111111i
98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 11
Fiscal Years
Miami Beach continues to provide more tangible value for tax dollars paid than many other taxing
jurisdictions. In FY 2010/11, it is estimated that the homesteaded property owner of an average
value homesteaded property would have paid approximately $1,700 in property taxes to the City
(28 percent of the tax bill) as compared to over $4,000 to the County, the school board and other
local taxing jurisdictions. For comparative purposes, it is estimated that in FY 2009/10, a
homesteaded property owner of an average value property would have paid approximately
$2,400 in sales taxes to the state, and approximately $7,000 in income taxes to the Federal
government.
Despite this significant reduction and despite increases in costs such as pension, living wage
impacts, fuel, and other operating expenses, the City of Miami Beach has essentially kept services
and enhancements that were added through FY 2006/07 to address needs and priorities identified
by the community. We have continued to focus on priorities: public safety, cleanliness,
landscaping and beautification, recreation and cultural arts programming, renewal and
replacement funding for our facilities, building /development functions, and structural changes that
enhanced capital funding and reserves, while bringing on line several capital projects with
expanded operations and maintenance and resulting increases in operating costs for facilities as
shown such as by the examples provided below:
• North Shore Park and Youth Center
• South Pointe Park, Soundscape Park
• Collins Parks and surrounding neighborhood streetscapes
• Bandshell Facility improvements
• Normandy Shores Golf Course
• Normandy Isle Park and Pool
• Beachfront Bathrooms
• Colony and Byron Carlyle Theatres
• Beachwalk and Baywalk
• Multiple streetscapes
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 5
As a result, we have been able to achieve significant value to our community. The median taxable
value for a homesteaded property on Miami Beach as of January 1, 2010 was $1 19,461,
resulting in $774 in total taxes paid to the City of Miami Beach, with half the properties paying
even less than this. In fact, 6 percent of homesteaded properties, almost 1,000 properties, pay no
taxes at all to the City of Miami Beach.
Of note, the FY 2011/12 proposed General Fund budget net of pension costs, is only about $7.5
million (3 percent) more than the FY 2006/07 budget, despite pension increases of $24 million
during the same period. Inflation from October, 2006 through June, 2011, a similar period, was
approximately 13 percent. This reflects a decrease across all other expenditures during that time,
and even offsetting increases in health and salaries, a growing concern to us, as there is and
should be a limit to the proportion of budget allocated to these costs. At this point, pension costs
alone represent $52.4 million (22 percent) of the total General Fund budget. As a result, pension
reform continues to be a high priority for the City, with recommendations anticipated from the
Budget Advisory Committee in January, 2012. This timing allows for the recommendation to be
incorporated into the next set of contract negotiations which will begin next summer.
Further, while a significant portion of property taxes in our City are collected from hotels,
restaurants and other businesses; a significant source of revenue to the General Fund is from non -
property tax tourism and business - related sources which have increased steadily over the years.
The Proposed Work Plan and Budget includes resort taxes and a transfer of Parking Operations
Fund year -end surplus as well as Parking Operations Fund reimbursements and right -of -way fees
paid to the General Fund that total almost $37 million; approximately 15 percent of the Proposed
General Fund FY 2011/12 Budget. In large part due to these alternative sources, property tax
revenues represent less than half (45 percent) of the total funding for the General
Fund budget, as compared to 59 percent in FY 2006/07, a significant reduction over the past
several years.
In addition, the FY 2011/12 Proposed Work Plan and Budget incorporates $400,000 in
additional funding anticipated from the corporate beverage sponsorship, the beginning of $7
million in cash and in -kind payments to the City estimated over the 10 years of the agreement as
we continue to pursue options to reduce the tax burden on our residents and commercial property
owners
As in past years, the Proposed Work Plan and Budget was developed through an intensive review
process with our City Commission. Commission Retreats were held on May 20, 2011 and May
21, 2011. Preliminary budget information was provided to the Commission and budget strategies
and priorities were established. Between June 29, 2011 and July 29, 2011, three additional
budget briefings were held with the Finance and Citywide Projects Committee, including a
•
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 6
discussion of capital project priorities, projected General Fund revenues and expenditures,
proposed efficiencies, impacts of service level alternatives, potential revenue enhancements, and
potential service enhancements. In addition, the Mayor and several Commissioners individually
reviewed budgets for Police, Fire, Parks and Recreation and the Building department. The City's
Budget Advisory Committee also provided additional input, with individual members reviewing
specific department budgets for Police, Fire, Parks and Recreation, Building, Capital Improvements
Office, Information Technology, Property Management, and Communications departments.
At the time of adoption of the proposed millage in July, it was estimated that the City had a gap of
$5.4 million, a significantly improved position from the estimated gap of $32 million at the same
time in the development of the FY 2010/11 budget. Between setting the preliminary millage in July
and finalizing the Proposed Work Plan and Budget, as we committed to do, we refined our
projections. Our revenues, in particular, tend to have greater fluctuations than expenditures, and
we are conservative early in the process and refine these projections over the summer. Changes
since July include increased revenue estimates (primarily building development process fees, and
rents and leases, offset by decreased interest earnings). As a result, the projected gap has been
reduced to $4 million. The major components of the gap are explained below:
• $1.9 million increase to reflect previously bargained salary adjustments for employees
• $0.3 million increase in overtime cost primarily due to increases in Police court overtime.
• $4.2 million increase in the General Fund P ortion of the City's required annual re uired contributions to
the Fire and Police ($2.2 million) and General Employees ($2 million) pension plans.
• $2.8 million increase in health insurance costs.
• $1.1 million Increase in Internal Service Fund charge -backs primarily due to similar increases in
salary and pension costs as described above.
• $0.8 million in reduced property tax revenues.
These are partially offset by:
• $0.7 million reduction in operating expenditures.
• $6.4 million in increased non property tax revenues.
Together, salaries and fringes charged directly to the General Fund represent approximately 73
percent of the total current service level (CSL) General Fund budget of $247 million, (including the
impacts of merit /steps increases, and pension contributions). It is important to note, that the
approximately $27 million in other operating costs (11 percent of CSL budget) reflects a decrease
of approximately $700,000. This savings reflects the results of various cost savings initiatives by
the City such as re- bidding contracts, careful review of department line item expenditures, and other
efficiencies.
Approximately $4 million of the $6.4 million increase in non property tax revenues was planned
for at the time of the adoption of the FY 2010/11 budget, through increased transfers from prior
year Parking Operating Fund surplus and sidewalk cafe fee revenue. The remainder of reflects
improving conditions in the City of Miami Beach, including sales taxes, building development
process fees, and rents and lease revenues.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 7
Exhibits A through E provide a summary of the efficiencies /reorganizations, service reductions,
revenue enhancements, and service enhancements considered as part of the development of the
proposed FY 2011/12 Work Plan and Budget. As a result of these initiatives, the proposed budget
continues 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. — the services that our residents and businesses told us yet again are important to them during
the 2009 Community Satisfaction Survey.
Further, the approximately $4 million gap between Current Service Level revenues and expenditures
has been addressed through the efficiencies and reductions, in addition to transferring special event
like expenditures to the resort tax fund and increasing resort tax revenue transfers into the General
Fund.
• $0.4 million Efficiencies and Reductions
• $2.1 million Expenditures more appropriately funded from the Resort Tax Fund
• $2.0 million Increased transfers from Resort Tax to the General Fund
This for approximately $0.5 million of revenues in excess of expenditures that allows for some
modest enhancements in response to community priorities, provides funding for adjustments to the
living wage requirements for contracted services, and provides approximately $89,000 in
additional contingency.
• $0.3 million Service Enhancements
• $0.1 million Living Wage adjustments
• $0.1 million Additional Contingency
Efficiencies, Reductions, and Revenue Enhancements versus Service Enhancements
As with the preparation of budgets for the last four years, departments are continuing to analyze
and present their budget from two perspectives: 1) reviewing for potential efficiencies,
reorganizations to reduce cost, etc., without impacting services; and 2) performing a modified zero -
based analysis of each department budget, identifying potential service reduction alternatives
versus core functions. 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 basic service at a reasonable level.
However, given the significant reductions in the General Fund in the last 4 years, most of the
reductions identified for FY 2011/12 are more focused on Enterprise Funds. While these do not
impact the General Fund millage and property taxes paid by Miami Beach property owners,
reductions in these funds in prior years has enabled us to keep the City portion of utility user fees
flat longer than previously anticipated.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 8
Increased use of Resort Tax Funds to Offset Expenses Currently in the General
Fund
Based on an outside consultant study conducted in 2010 using FY 2007/08 actual costs, it is
estimated that there are approximately $50.5 million in eligible resort tax expenditures in the
General Fund.
These include expenses associated with police officers serving entertainment areas; a portion of fire
rescue services from Fire Stations 1 &2; ocean rescue services; enhanced code compliance provided
to respond to evening entertainment area violations and staffing of special events; other code
compliance activities in tourism and visitor related facilities /areas; Tourism and Culture Department
and the Cultural Arts Council; museums and theaters (Garden Center, Bass Museum, and Colony
Theater); golf courses (net of revenues); Memorial Day and other special event costs; homeless
services; July 4th; Visitor Center funding; holiday lights; Jewish Museum; Miami Design Preservation
League (MDPL) Orange Bowl; monuments; etc. However, $8.8 million of these costs are addressed
by dedicated funding for the South Pointe area pursuant to the Miami -Dade County Convention
Development Tax interlocal agreement, thereby resulting in approximately $41.7 million in eligible
Resort Tax expenses in the General Fund.
Based on FY 2010/11 resort tax collections to date, it is estimated that there will be an additional
$4.2 million available in resort tax collections to provide additional funding for these General Fund
activities in FY 2011/12.
The Proposed Work Plan and Budget includes approximately $2.1 million in special event like
expenditures, which can be easily quantified and do not require allocation studies, are more
appropriately charged directly to the Resort Tax Fund. Further, it is recommended that an
additional $2 million in Resort Tax funds be transferred to the General Fund to offset other tourism -
eligible expenses in the General Fund, with approximately $82,000 remaining in the Resort Tax
Fund to fund an initiative for enhanced management of major special events. The total proposed
Resort Tax Fund transfer to the General Fund for FY 2011/12 is $26.5 million compared to $24.5
million in FY 2010/11.
Other Potential Reductions or Revenue Enhancements
In the July 13, 2011 Commission agenda item setting the preliminary millage for FY 2011/12, I
mentioned a couple of additional opportunities to further reduce expenditures or increase revenues
including a decrease in funding for Claims Incurred but Not Reported (IBNR) in the Risk
Management Fund, which ultimately impacts the General Fund, as well as the potential for
increased transfers from the Building Operations Reserve. In addition, due to a change in
approach by the State Division of Retirement, there is the potential for the City to realize a credit on
its FY 2010/11 Annual Required Contribution to the Fire and Police Pension Plan as well the Miami
•
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 9
Beach Employees Retirement Plan which could be used to reduce expenses in future years.
However, the amount of this credit will not be known until September 30, 2011, after the FY
2011/12 budget is adopted.
Further, given recent events, no decreases in funding for IBNR claims or pension plans are
recommended at this time. Recent events have resulted in greater uncertainty in the future of the
City's IBNR claims and the recent downturn in the stock market could lead to further increases in
pension funding requirements for FY 2012/13. Therefore, it is recommended that any credit on the
FY 2010/11 pension contribution requirement, be set aside to reduce potential pension increases
in FY 2012/13.
The amount of non - permit fee funding that the General Fund is having to contribute in support of
Building Department operations has been increasing as costs have increased while revenues
collections remain essentially at FY 2007/08 levels. However, at this time I am not recommending
increases in transfers to the General Fund from Building Operations Reserves. Building Department
permit revenues reflect an increase since the FY 2011/12 CSL budget was presented to the
Commission at the July 13, 2011 meeting. In addition, maintaining the current level of transfer
from the Building Operations Reserve to the General Fund will ensure that the use of Building
Operations Reserves will be available at essentially current levels through FY 2012/13.
FY 2009/10 Actual FY 2011/12 FY 2011/12
Preliminary CSL Proposed Budget
Building Revenues* $ 9,443,040 $ 8,675,063 $ 9,187,413
Building Expenditures 10,852,427 11,784,989 11,791,872
Surplus /(Deficit) $ (1,409,387)1 $ (3,109,926) $ (2,604,459)
*includes use of $T mown Building operating reserves
Finally, it is my intent to continue to examine opportunities to further reduce costs between now and
the first budget hearing scheduled for September 14, 2011. Any changes to the proposed budget
will be incorporated into the Commission agenda item at that time.
Use of One - Time Revenues
The City's policy regarding use of one -time revenues states that "The City of Miami Beach will use
one time, non - recurring revenue for capital expenditures or one time expenditures and not subsidize
recurring personnel, operations, and maintenance cost ".
The FY 2011/12 Proposed Work Plan and Budget includes the use of $3.55 million in year -end
surplus (revenues in excess of expenditures) from FY 2009/10 year- end and the FY 2010/11 mid-
year budget amendment that was set aside for possible use in balancing the FY 2011/12 budget,
as needed. As a result, it is recommended that the Commission waive this policy for this use of
prior year -end surplus. A similar amount ($3.66 million) was included in the adopted FY 2010/11
budget. While this is generally not a recommended financial practice, it is being recommended at
this time so as to allow for a gradual decline in the use of one -time revenues over the next few
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 10
years. Please note that this recommendation is made cautiously. As with the FY 2010/11 budget,
it is my intention to expend these dollars last during the fiscal year, so that if any savings are
achieved throughout the year, the amount of funds needed from this source will be reduced, in
which event the funds will be available to be used in subsequent fiscal years.
In 2009, the City of Miami Beach conducted its third set of statistically -valid community surveys. The
Community Survey was designed to provide resident input on quality of life, city services, and
taxes; and to identify key drivers for improvement. Impressively, all 31 of the residential tracking
questions from 2007 experienced increases in each of the areas measured by an overall average
of approximately 7.0 %; and 28 of 32 business tracking questions experienced increases measured
by an overall average of approximately 8.8 %. It is unusual for an entity to see improvement across
such a broad range of areas, and the significant percentage increase in each of these areas is even
more unusual. These results indicate a high level of satisfaction with Quality of Life in Miami Beach
and the services provided by the City.
Detailed survey results are available on the City's website and in the Strategic Planning section of
the FY 2011/12 Proposed Work Plan and Budget in Brief document.
CITYWIDE WORK PLAN
A summary of our Citywide Work Plan is attached (Exhibit F) for your review along with the
highlights presented on the following pages.
Cleaner and Safer
The resident surveys in 2005, 2007 and 2009 confirmed that safety is one of the top quality of life
factors for our residents. In contrast to recent trends, in 2010, the City of Miami Beach
experienced an increase (2.80 percent) in total violent crimes and non - violent crimes combined,
when compared to 2009. Of significance, however, while non - violent crimes (which
include burglary, larceny and auto theft) increased 3.60 percent, violent crimes declined 4.64
percent. Despite the recent increase, there has been a 21 .85 percent decline in total violent crimes
and non - violent crimes since 2000 in Tight of the increase in daily population and special events.
Despite this long term trend, the Miami Beach crime rate is slightly above the latest total nationwide
violent crimes and non - violent crimes reported by the FBI for the first six months of 2010.
Nationwide, violent crime declined by 6.2 percent and property crimes declined by 2.8 percent.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 1 1
The Proposed Work Plan and Budget maintains 2 marine officers added in FY 2005/06; the use of
Patrol officers for the Neighborhoods contact program initiated in FY 2005/06; and lifeguard
coverage e for 100% of our publicly accessible beaches. The Proposed Work Plan and Budget does
g P Y P g
not recommend any reductions in public safety in service. However, we are
Maintains continuing to evaluate lifeguard stand staffing during non -peak hours and the
public safety use of contracted security personnel for additional efficiencies.
service and
continues to
Cleanliness of our City continues to be a priority for our residents and
focus on businesses. We will maintain expanded services that have been
implemented in recent years, The City uses a quantitative index to assess the
cleanliness impact of these efforts and results have shown significant overall
Citywide improvement. Between FY 2005/06 and FY 2009/10, 79.4 percent of
public areas Citywide were rated as clean or very clean as compared to
65.2 percent in FY 2005/06. None - the -less, our residents continue to view cleanliness as an
important service area, and in the 2009 survey, it was cited as the most important service to retain.
As a result, no reductions in service levels are recommended in existing sanitation services, and
additional funding is proposed for enhanced cleaning of heavily used parking Tots using contractual
services.
More Beautiful and Vibrant; Mature and Stable; Unique Historic and Urban
Environment
Funding for landscaping and beautification continues to be a priority. During Continues
FY 2010/11 the City completed the construction of the Mid -Beach Community funding for
Garden within Pinetree Park and the dog park at Washington Avenue, as •
well as the renovation of fitness facility at Brittany Bay Park. We also landscaping,
completed the construction of Outdoor Fitness Center at 6 t Street and Ocean Pavers, and
Drive within Lummus Park and the new multi- faceted playground with safety up- lighting
surfacing and a shade structure at South Pointe Park. Additionally we have replacement
begun the construction of the North Beach Dog Park which is anticipated to as well as
be complete by December, 201 1 . reforestation
Of major significance, during FY 2010/11 the City completed the construction of the nationally
recognized and award winning Soundscape Park and the FY 2011/12 budget incorporates
funding for the maintenance of the newly installed landscaping for South Pointe and for the City
Center areas as well as maintenance of the Soundscape Park.
As part of the City's reforestation program, 400 trees were planted Citywide bringing the
reforestation program total to 4,250 trees installed to date. Further, in addition to on -going re-
forestation efforts, the following projects are programmed to be underway in Fiscal Year 2011/12:
• Fire Station #3 Landscape Restoration
• North Beach Police Sub - Station Landscape Restoration
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 12
• Fairway Drive swale Irrigation
• NSPYC- Sports Field Restoration
• Polo Park -Sports Field Restoration is currently in the design phase.
• Restorative Tree Wells on Collins from 64th to 75th
• Replacement of the Fisher Park Playground, safety surface, and the installation of a shade
system
• Installation of a new playground, safety surface, shade system and FF &E at Indian Beach
Park located on 46th and Collins on the beach
• Replacement of safety surfacing Lummus Park Playground at 14th Street
The Proposed Work Plan and Budget provides almost $200,000 in funding for reforestation,
replacement of landscaping, pavers, up- lighting, etc. through the Capital Investment Upkeep
Account.
The availability of quality recreation programs continues to be one of the highest priorities for our
community. Eighteen percent of residents responding to the 2009 Community Satisfaction Survey
identified recreation as a service that the City should strive not to reduce. I am please to present a
Proposed Work Plan and Budget that reflects no reductions in our offering of recreation programs.
Successful recreation programs for teens and seniors also continue to be a priority, along with
weekly classes in visual or performing arts in after school programs and summer camps. Further,
efforts are underway for a "Sleepness Night" event in November 2011, which will be funded from
sources other than the General Fund.
Ensuring compliance with code regulations was highlighted as a priority, during last fiscal year,
especially with regard to littering on the beaches on weekends, spring break, etc. The nine part
time code enforcement officers added in FY 2010/11 continue to support these efforts.
Homeless outreach and placement services are expanded to provide part-time Adds part -
staffing on weekends. While much was accomplished between 2000 and 2008, time staffing
with the census count for the number of homeless in the City declining from 314 in for enhanced
November 2000 to 98 in January 2008, the census count has been more erratic homeless
in recent years, with counts of 149 in January 2010 and 177 in January 2011. outreach on
weekends
Cultural, Entertainment and Tourism Capital and an International Center for
Innovation and Business
After lengthy negotiations, in FY 2008/09, the Board of County Commissioners approved Building
Better Communities General Obligation Bond funds for a Master Plan Study for the Miami Beach
Convention Center (MBCC) to be developed by Arquitectonica. The Master Plan was completed in
FY 2010/11 and all information has been published online at
http: / /www.miamibeachfl.gov /news /scroll.aspx ?id = 58484. The City continues to pursue various
funding options for the master plan and also issued an RFP on May 24, 201 1, for a consultant who
will conceptualize and recommend ideas and options to maximize the City's resources assets and
attract private investments to address identified needs, including but not limited to: the expansion
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 13
and enhancement of the Convention Center, and the potential development of an adjacent
Convention Center Hotel. The consultant may also identify potential redevelopment options for
public assets in the area surrounding the Convention Center campus to support the Convention
Center project. A synopsis of the anticipated timeline is as follows:
September 201 1
• Award of contract to selected consultant
• Begin new briefing and discussion with new County Mayor and new County
Commissioners regarding MBCC Master Plan and Financing Alternatives.
Fall / Winter 2011
• Review information provided by consultant and determine methodology and
approach for next steps of development, such as procurement strategies (e.g. design
competition, RFP, RFQ, etc.) and program management options.
• Restart State legislative efforts and alternatives.
In addition, the Resort Tax component of the Proposed Work Plan and Budget maintains $5.25
million to be transferred to the Greater Miami Convention and Visitors Bureau and $1.8 million to
be transferred to the Miami Beach Visitors Convention Authority. Further, $100,000 is funded to
continue a Miami Beach marketing campaign, towards maximizing Miami Beach as a destination
brand and $82,000 for enhanced management of major events.
Well- Improved Infrastructure
Along with, and related to, growth management, traffic flow continues to be one of our
community's major concerns. In FY 2011/12, while discontinuing the use of Police Officers on
overtime to enforce "Clearing of Lanes, Easements and Alleyways" (CLEAR), we will continue
monitoring of red -light cameras. In addition to reducing severe accidents at intersections, we hope
red light camera enforcement will alleviate vehicles blocking traffic at busy intersections.
Further, the Self- service Bicycle Rental Program (Deco Bike) implemented this year has increased
multi -modal mobility throughout the City, in addition to supporting environmental sustainability. We
adopted the City's first Bikeways Master Plan in October 2007, and an estimated 244 bike racks
have been installed to date. We have also adopted the City's Traffic Calming Manual in June
2011. The criteria in City's Traffic Calming Manual has a lower threshold than the County. This
will allow the implementation of more traffic calming devices throughout the City. Traffic calming
ensures the development of a safe, efficient and integrated transportation system in the City that
promotes neighborhood livability using adequate technical planning and traffic engineering
practices.
The City continues to coordinate and fund the South Beach Local, the most successful bus circulator
in the County. Although ridership has declined from prior years, the average monthly ridership of
141,000 passengers in FY 2010/11 was still significantly greater than the 60,000 in prior years
for the Electrowave. The overall decrease in ridership can be attributed to numerous factors
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 14
including a change in the method for collecting ridership data, changes in the economy, and
changes in transit service, as the County experienced a system -wide decrease in transit ridership of
approximately 10% when comparing summer 2009 ridership data with summer 2010 data. In
spite of the ridership decreases, the South Beach Local is Miami -Dade Transit's (MDT) most
successful operating bus circulator. In addition, we continue to explore the establishment of similar
circulators for the mid and north beach areas. The City has also received a grant from the Miami
Dade County Metropolitan Planning Organization for a transit planning study for local transit
circulator improvements in the North and Middle Beach neighborhoods. This study will help
evaluate existing transit service and recommend solutions to improve quality of transit service.
Further, the City has worked with Miami -Dade County to implement the Airport Flyer /Route 150
which provides direct bus service to the airport from Miami Beach seven (7) days per week,
operating from 6 a.m. to 11 p.m., with service approximately every thirty (30) minutes. The new
route uses the regular MDT 40 -foot buses with interior space provided for luggage. The buses are
branded with a special logo for easy identification and to help promote ridership. The fare is
$2.35 each way, which is the fare for all MDT express buses. Since its implementation on
December 1 3, 2009, ridership has increased to an average of approximately 1,420 passengers
per weekday and an average of over 44,000 passengers per month.
The Proposed Work Plan and Budget includes capital funding for on -going renovation of several
parking lots that are anticipated to provide additional parking spaces when complete; the new City
Hall garage and the Alton and 5'h facility provide 1,150 additional parking spaces combined; and
construction is complete on the City garage adjacent to the New World Symphony new performing
Arts project that provided a significant increase to the number of parking garage spaces in the City
Center area. Further, the Sunset Harbor Garage is under construction and we are in the process of
soliciting an architect for the design of the Collins Park garage.
Implementation of the City's capital improvement program also continues as a top priority. In
addition to the previously mentioned parking garages, in FY 2010/11, The total value of the
Capital Improvement Program (CIP) has grown from approximately $400 million to over $1.2
billion, including approximately 300 completed projects. During FY 2010/11, the CIP Office
oversaw the completion of 51 projects, with a total value of approximately $57 million. The
completed projects ranged from essential parking garage repairs, seawalls, general facility
improvements, underground utility infrastructure rehabilitation, and neighborhood improvements, to
magnificent recreational facilities and parks.
Projects that were completed in the past year include the following:
• Neighborhood Right of Way Improvements and Underground infrastructure Upgrades
o Flamingo Lummus Streets /Sidewalks Improvements — 7th Street to 9►h Street from
Washington Avenue to Meridian Avenue
o South Pointe Streetscape Phase II BP 12C Streets /Sidewalks Improvements - Second,
Third and Fourth Streets from Alton Road to Washington Avenue, and include
Michigan, Jefferson, Meridian and Euclid Avenues
o Venetian Causeway Cross Street Water Main Extensions — Venetian Causeway
between Rivo Alto, DiLido and San Marino Islands on Venetian Way
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 15
o Oceanfront Phase II BP 6 Streets /Sidewalks Improvements - Area west of Collins
Avenue bounded by 23rd Street to the South, 63rd Street to the north, and Indian
Creek Waterway to the west. Venetian Islands BP13C1 - Venetian Causeway Cross
Street Water Main Extensions
o New World Symphony /Lincoln Lane North and Pennsylvania Avenue Improvements
• Scott Rakow Youth Center Roof Replacement and Phase II Renovations
o New entryway and expanded parking lot
o Upgraded life- safety systems, including: alarms, sprinklers and security features and
ADA compliance
o Various new rooms: soundproof music room, new fitness room, new multipurpose
room, new computer room,
o Renovated reading room, game room and bowling lane
o New floors, ceilings, elevator, restrooms, and snack bar
• Bandshell Facili ty Improvements
o Refinishing terrazzo floor and structural canopies
o Installing pre -cast decorative open blocks around the perimeter of the facility
o Installing soaring pylons that serve as the three public entrances
o Installing special materials to enhance outdoor acoustics
o New lighting
o Expanded backstage facilities, including new dressing rooms and additional storage
• Collins Park /Rotunda and Streets /Sidewalks Improvements
o New pedestrian walkways and paths to accommodate bicycles
o Landscape enhancements
o Restoration of the rotunda
o Installation of an interactive Art in Public Places by artist Brian Tolle
• Seawall lmprovements
o Lincoln Road Street End
o Pine Tree Drive and 63rd Street
o Washington Court
o Rue Bourdeaux
o Trouville Esplanade
• Utlility Improvements
o Sunset Island 1 - Outfalls 1 and 2
o North Shore Water Mains crossing FDOT Right -of -Way along 71st Street
o North Shore Water Main at 69 Street from Harding Avenue to Indian Creek Drive
o 24" PVC Sanitary Sewer Improvements (James Avenue within City Center)
o Stormwater Pipe Repairs (Washington Avenue from 18th to 20th Streets)
o Belle Isle Outfall Pipes Replacement Phase
o Upsizing Under - capacity Water Mains on Indian Creek from 25th Street to 41st Street
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 16
o Pump Station 22 Landscaping
• Parking Improvements
o Surface Parking Lot 9A at 6948 Harding Avenue
The proposed Work Plan and Budget enhances CIP project supervision by adding 2 pool cars and
provides supplementary cost estimating and project support, both of which are offset by increased
chargeback to capital projects. The following capital projects are already in construction or are
anticipated to be in construction in FY 2011/12.
• Neighborhood Right of Way Improvements and Underground Infrastructure Upgrades
o South Pointe Streetscape Phase III, IV, & V Streets /Sidewalks Improvements — Alton
Road, Collins Avenue, Collins Court, Ocean Drive and Ocean court between South
Pointe Drive and 5th Street, South Pointe Drive, Biscayne Court, Jefferson Avenue,
Commerce Street and 1St Street between Washington Avenue and Ocean Drive.
o Biscayne Point Streets /Sidewalks Improvements
o Star Island Streets /Right of Way Improvements
o Venetian Islands - Venetian Causeway Streets /Sidewalks Improvements
o City Center Streets /Sidewalks Improvements - Lincoln Road between Collins Avenue
and Washington Avenue
o City Center Streets /Sidewalks Improvements — 16 Street to just south of Dade
Boulevard, between Washington Avenue to just east of Collins Avenue
o Central Bayshore Improvements
o Sunset Islands 1 and 2 Improvements
o Traffic Signalization Project - 69 Street at Indian Creek Drive
o Upsizing Under - capacity Wastewater Lines on Indian Creek from 25th Street to 41st
Street
• Roadway Milling and Resurfacing Projects
o Byron Avenue 79st Street to 86th Street
o Dickens Avenue from 71St Street to Tatum Waterway Drive
o Indian Creek Drive between Abbot Avenue and 71 St Street
• Botanical Garden Improvements
• Sunset Harbor /Purdy Avenue Garage
• Fire Station 2 (Historic Building and 2 Hose Tower Refurbishment)
• Convention on ention Center ADA Compliance Improvements /Restroom Renovations
• 7th Street Parking Garage Structural Repairs programmed in FY2008/09
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 17
The Proposed Work Plan and Budget maintains funding assessments of our facilities to identify and
plan for these renewal and replacement needs and funding for the capital renewal and
replacement program for general fund facilities. Since the 2004 Resolution establishing a Capital
Renewal and Replacement Fund to provide a dedicated source of support for Capital Renewal and
Replacement (CRR) projects, over 115 facility projects have been funded, totaling approximately
$16 million, through FY 2010/11. Twenty seven projects valued at approximately $4 million were
completed in FY 2010/11. Over 20 additional active projects are in the procurement and
construction phases, with a value of approximately $4 million.
Facility Improvements/ Renewal and Replacement Projects that were completed in the past year
include the following:
• 1701 Meridian 2nd Floor Improvements
• 225 Washington Avenue Improvements
• City Hall (Building Department Renovations, Upgrade Halon System, City Hall Southeast
Small Passenger Elevator)
• Fire Station 1 (Acoustical Ceiling and Lighting, Fire Alarm System Replacement, Interior and
Bay Doors Replacement, Replace Exterior Windows to Impact Resistant, Roof Flashing
Replacement, Air Distribution, Exhaust Fan and Window Unit)
• Fire Station 3 - Ceiling Replacement and Lighting, Overhead Door and Interior Doors
Replacement, Replace Exterior Windows to Impact Resistant, Air Distribution, Exhaust Fan
and Vehicle Bay Exhaust, Roof AC Curbs Replacement)
• Flamingo Pool Deck - Structural Assessment
• Fleet Management - Electrical Upgrades
• Police Garage /Station (Glass Blocks Replacement, Ceiling Replacement Restroom
Renovation)
• South Shore CC Chiller Pipe Replacement Phase II
• Lummus Park Temperature and Date Monument
The following renewal and replacement projects are anticipated to be in construction in FY
2011/12.
• Police Building - Elevators Renovation
• Fleet /Sanitation Buildings Waterproofing & Paint
• City Hall Impact Glass
The Proposed Work Plan and Budget maintains funding of the City's pavement assessment and
repair program, street light maintenance and assessments, broken sidewalk replacement, and a
regular maintenance program for outfall and catch basin cleaning. In addition, while the Proposed
Work Plan and Budget provides funding for a Vacuum Truck for enhanced maintenance of
beachfront shower facilities, modest reductions in janitorial services in our facilities are also
incorporated, particularly for those areas with less public contact.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 18
Further, the City is developing a new Stormwater Management Master Plan that will create a
comprehensive model to evaluate the existing system, identify and prioritize areas that are
experiencing reduced Levels of Service, and assess long -term solutions.
Value of Services For Tax Dollars Paid
With the planned $1.15 million in reductions incorporated in the Proposed Work Plan and Budget
our 5 year total of reductions and employee Givebacks is approximately $63.5 million.
FY 2011112 Proposed
General Fund $ Impacts Fr PT
Public Safety ($52,755) - -
Operations (89,331) (1.4) -
Administrative Support (61,184) (1.0) 1.0
Econ & Cultural Dev - - -
Citywide (75,000) - -
Subtotal $ (278,270) (2.4) 1.0
Transfers - - -
Total $ (278,270) (2.4) 1.0
Internal Service Funds (100,000) - -
Enterprise Funds (774,293) (7.6) -
GRAND TOTAL $ (1,152,563) (10.0) 1.0
However, despite the dramatic impact of five years of reductions due to property tax reform
exacerbated by a dramatic downturn in property values and dramatic increases in pension costs,
the Proposed Work Plan and Budget preserves benefits specifically for City of Miami Beach
residents, including:
• Our free "Culture in the Parks" series;
• Access to free cultural arts programs (theater, dance, music and visual arts) for children
involved in after school and summer camps;
• Scholarship specialty camps in the summer, in addition to children participating in day
camps; and programs for traveling athletic leagues.
• Free access to City pools on weekends and during non - programmed hours;
• Free general admission to our Youth Centers on weekends and during non - programmed
hours;
• Free Learn- to-Swim programs for 3 to 4 year old residents;
• Reduced resident rates for recreation programs
• Free "family friendly" Movies in the Park;
• Special programming by the Miami City Ballet for the Miami Beach community, including a
new contemporary dance series;
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 19
• Free admission to museums on Miami Beach, including the Bass and Wolfsonian Museums
every day and the Jewish Museum on Wednesdays, Fridays and Saturdays;
• Free access to the majority of our senior citizen programs and special populations programs,
including several free dances that take place throughout the year;
• Free of charge play at the Par 3 golf course for all residents;
• Free crime analysis of residents' homes by our Police Department; and
• Free child safety seat checks by our Fire Department.
We have also prioritized Key Intended Outcomes to ensure the Tong -term sustainability of our City
government, including improved communications with our residents, ensuring financial sustainability
and ensuring that we have the best possible employees to deliver services to our community.
Environmental Sustainability, Communications, Customer Service and Internal
Support Functions
Regarding environmental sustainability, the City established a permanent committee in FY 2007/08
called the Sustainability Committee, with the objective of providing a mechanism to discuss green
(environmental) issues of concern to the community. To date, the City has implemented the several
initiatives recommended by the Committee:
• Development of the Sustainability Plan. The Sustainability Plan will assist in the
accomplishment of the Key Intended Outcome (KIO) to enhance the environmental
sustainability and guide the Sustainability Committee. The Plan provides structure to green
initiatives in order to successfully protect the City's natural resources and enhance the social,
economic, and environmental well -being of the community. The Plan focuses on ten (10)
specific Program Areas: Green Building & Housing; Solid Waste Management; Water
Conservation & Quality; Energy Conservation; Alternative Transportation; Natural Resources
& Ecosystem Management; Community Outreach & Civic Participation; Green Procurement;
Economic Development & Planning; and Air Quality & Climate Change. The Plan also acts
as a guiding document for the Sustainability Committee and serves to focus its agenda and
initiatives.
• Energy Conservation: The City Commission awarded a $13.7 million energy
conservation contract to Ameresco, an Energy Services Company. The contract will
implement six (6) Energy Conservation Measures (ECM) that once completed will result in
" guaranteed" energy savings of $1.1 million for the initial year, the annual savings are
escalated at 3.75% per year. The project payback time of just slightly over thirteen (13)
years. The Domestic Water Conservation city wide project has been completed, and the
Geothermal Cooling Police Station project will be completed by the end of September
2011. The remaining ECM projects are as follows:
• Facility Lighting and Lighting Controls Upgrades city wide
• HVAC Controls in various city facilities
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 20
• Geothermal District Cooling plant
• Power Transformer Replacement
All ECMs are scheduled to be completed by the end of FY 2012. Reducing energy
consumption cuts operating costs, increases efficiencies, decreases dependence on natural
resources and reduces green house gas emissions.
• Solid Waste Management: The City's Recycling Program has expanded to include
recycling in selected public areas, which includes parks, beach entrances, high pedestrian
traffic areas, and many City facilities. The Program also now includes single- stream (co-
mingled) recycling for single - family residences through collaboration with Miami -Dade
County. A new Citywide recycling ordinance is also under development that will increase
the City's commercial and multi- family recycling levels. In addition, the City has amended
it's Solid Waste Ordinance requiring franchise contractors in the City of Miami Beach to:
• Offer recycling for any and all accounts serviced by the contractor (including, without
limitation, any and all commercial and residential accounts).
• Offer a recycling proposal to every account that to the maximum extent that's
commercially feasible; maximize recycling activity in the City.
• Each recycling proposal shall disclose the anticipated savings offset as a result of the
recycling and the consequent reduction of solid waste disposal.
• Effective May 1, 2010, all contracts between a franchise waste contractor and the
account holder were modified to include a provision to offer/ provide recycling.
• Dedicate a percentage of their revenues to be used toward education, hazardous waste
events, additional recycling bins in public rights -of -way, and for sustainable initiatives.
• Green Buildings and Infrastructure: A voluntary green building ordinance has been
adopted that provides incentives to participants who are doing new construction or
renovating buildings using the U.S. Green Building Council's Leadership in Energy and
Environmental Design (LEED) standards in Miami Beach. LEED is an internationally
recognized green building certification system, providing third -party verification that a
building or community was designed and built using strategies intended to improve
performance in metrics such as energy savings, water efficiency, CO emissions reduction,
improved indoor environmental quality, and stewardship of resources and sensitivity to their
impactshe green building practices preserve natural resources, reduce green house gas
production, and increase indoor air quality and occupant health. The design of the new
Property Management Facility will be a minimum LEED Silver Certified by the US Green
Building Council. The Project is being designed by Wolfberg Alvarez & Partners and was
approved by the Design Review Board in June 7, 201 1 .
Further, the City is testing some new ways to build and maintain infrastructure. This year,
the City is incorporating pervious and high albedo (reflective) concrete, cisterns and other
energy, water saving features, and LED lighting (light emitting diode lighting which has
lower energy consumption, longer lifetime, improved robustness, smaller size, and greater
durability and reliability), into 5 test sites including alleys, parking lots, bike paths and
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 21
parks. Benefits of applying these green features include better visibility and safety,
improved groundwater recharge, decreased urban runoff, increased water quality, and
decreased heat island effect.
• Water Quality /Conservation: As part of the new Stormwater Management Master
Plan ( SWMMP), the study will consider future climate projections into the planning,
engineering design, construction, and operations of the stormwater system. The new
SWMMP will create a comprehensive model that will evaluate the existing system to identify
areas that are experiencing reduced Levels of Service. The SWMMP will then prioritize
problem areas and identify existing and future regional operational and maintenance
needs. In addition, the SWMMP will evaluate cost - effective alternatives for improvements to
current capital improvement projects and develop environmental applications to meet water
quality criteria. The SWMMP will make capital improvement plan projections and provide
an outline of available funding options and opportunities, including grants, loans, and /or
stormwater utility rate revenues.
The Proposed Work Plan and Budget continues funding to enhance communications with our
residents, enhance the availability of city services and processes that can be accessed and
transacted via the internet, and preserve our technology infrastructure. To that end, the Proposed
Work Plan and Budget continues to fund the City's MB Magazine, and MB W. In addition, the
Proposed Work Plan and Budget includes funding for expanded use of the City's contracted call
Center (currently used for Building calls) to handle calls related to Utility billing and Parking.
Further, the Proposed Work Plan and Budget still includes a $0.7 million transfer to the Information
and Communications Technology Fund. Projects to be funded in FY 2011/12 include:
• Uninterrupted Power Supply (UPS) and Generator: annual debt service payments (payment
6 of 10 through FY 2015/16): Power supply for Citywide Information Technology System
• CitiSourced Mobile Application: Mobile application which will provide branded,
customized application for iPhone, Android, Blackberry and Windows 7, providing
residents the ability to report issues, such as potholes and graffiti, right from their
smartphone.
• Conduit Repairs at Scott Rakow, Fire Station No. 1, and between Fire Station No. 4 and
Police North End Sub - Station: Repair of numerous conduit issues at these City facilities which
are preventing adequate network connectivity and causing technical issues for users and
equipment at these sites.
• Interactive Voice Response (IVR): Replacement of existing IVR which is 11 years old and
uses hardware and software that is beyond its life cycle. The new solution will improve the
ability and reliability of the system, using current up- to-date Voice Extensible Markup
Language technology. The City will not be able to continue accepting Credit Card
payments through the IVR with the current technology.
• Log Management for Payment Card Industry-Data Security Standard (PCI -DSS) Compliance:
Implementation of a robust log management infrastructure and automated processes to
analyze and manage system, application and network event Togs to help detect and prevent
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 22
serious breaches and ensure compliance to PCI standards and mitigate the risk of
unauthorized access to credit card data.
• Pretty Good Privacy (PGP) Universal and PGP Whole Disk Encryption: Encryption solution to
provide Finance, Budget, Human Resources and Labor Relations with disk encryption
software for all of the IT workstations and laptops to safeguard information of a sensitive
nature when the machines are off.
• Camera Upgrade for the Commission Chamber: Replacement of current obsolete cameras
with new upgradable modular robotic cameras. The current cameras are 8 to 10 years old
and are no longer being manufactured and replacement parts are difficult to find.
• Replacement of 3 Macintosh Computers in Communications: Replacement of Macintosh
computers used for video editing which are 5 to 8 years old and are run on a processor no
longer supported by Apple. These computers would include the most current version of
Video Editing software.
• Replacement of North Shore Youth Center Computer Lab computers: Replacement of the 12
computers, switch, routers and software at the North Shore Park Youth Center.
• Six (6) Laptops for Quality of Life Code Enforcement Team.
To promote transparency of City operations and strengthen internal controls, the City has posted on-
line all expenditures and Committee referrals and, in FY 2009/10, the City also began posting on-
line Internal and Performance Improvement reports.
In FY 2005/06, the City established a financial goal of funding at least 5% of the General Fund
operating budget as transfers for capital projects and capital projects contingency. The purpose of
this goal was multi- faceted:
1. To provide flexibility in the operating budget that would allow the budget to be reduced
without impacting services during difficult economic times;
2. To ensure that the City funded needed upkeep on our General Fund facilities, and right-of-
way landscaping, lighting, etc.
3. To provide a mechanism to address additional scope of small new projects prioritized by
the community and the Commission instead of having to delay these for a larger General
Obligation Bond issue; and
4. To provide contingency funding so that projects where bids were higher than budgeted did
not have to be delayed, especially during a heated construction market where delays often
lead to further increases in costs.
The Proposed Work Plan and Budget incorporates a reduction from the 5% to 1% for capital
components, taking advantage of the flexibility during this difficult financial year, and, at the same
time, recognizing that the construction industry prices have declined. It is our intent to increase this
in the future to 5% in better financial times.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 23
GENERAL FUND FINANCIAL SUMMARY
The General Fund is the primary source of funding for the majority of City services. Revenues are
derived from ad valorem property taxes, franchise and utility taxes, business license and permit
fees, revenue sharing from various statewide taxes, user fess for services, fines, rents and
concession fees and interest income. Additionally, intergovernmental revenues from Miami -Dade
County and Resort Taxes contribute funding for tourist-related activities provided by General Fund
departments.
The first step in preparing the FY 2011/12 budget is an evaluation of Current Service Level (CSL)
revenues and expenditures. CSL revenues represent the amount of revenues that would be
generated based on existing tax rate, fees and charges. CSL expenditures represent the
expenditures associated with providing the same level of service next year as in the current budget
year.
PROPOSED TAX RATES
The Administration is recommending a total combined millage rate for the City of Miami Beach of
6.5039. The total proposed operating millage is 6.2155 mills, including a general operating
millage rate of 6.1072 and a General Fund Capital Renewal and Replacement millage of 0.1083.
The Proposed voted debt service millage rate is increased from 0.2870 to 0.2884, an increase of
0.0014 mills. Further, the combined millage rate overall remains approximately 2.2 mills lower
than it was in FY 1999/00. In addition, the millage rate is almost 1.2 mills lower than it was in FY
2006/07, when property values were similar to the July 1, 201 1 certified values. As a result, the
proposed property tax levy is lower in FY 2011/12 than it was in FY 2006/07 by approximately
$29 million.
1 250 30
0 'D
200 - °
150 - �..�, - 20
x 1111
100_ '10—
E 50
i 1 J 1 1
'07 '08 '09 '10 '11 '12
a Property Values —_-- Tax Levy including Debt
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 24
Property Values and Ad Valorem Taxes
On July 1, 2011, the City received the "2011 Certification of Taxable Value" from the Property
Appraiser's Office stating that the taxable value for the City of Miami Beach is $21,978,289,928
including $98,792,544 in new construction. The preliminary 2011 value represents a decrease of
$0.1265 billion or 0.6 percent less than the July 1, 2010 Certification of Taxable Value of $22.1
billion, and a decline of 1.2 percent excluding new construction. This decline was somewhat
mitigated by $99 million in new construction and renovations for an overall 0.6 percent decline in
Citywide property tax values. However, because property values in the City Center Redevelopment
Area increased by 0.5 percent, the decline outside the City Center RDA, which impacts the City's
General Fund revenues, was greater, at 0.8 percent.
This decrease compares to changes in taxable value of at (east an 8 percent increase per year
from July 1, 2001 through July 1, 2007. However, it is significantly less than the overall 10.5
percent decrease last year.
The comparative assessed values for the Miami Beach Redevelopment Agency City Center
redevelopment district increased from $3,404,963,718 to $3,423,353,944, an increase of
$0.0184, billion or a 0.5 percent increase in values over 2010 certified values. In addition,
assessed values within the geographic area formerly known as the South Pointe redevelopment
district increased from $3,324,165,654 to $3,446,036,913, an increase of $0.1219 billion, or a
3.7 percent increase in values over 2010 certified values. As a result, taxable values in the areas
outside the City Center RDA /South Pointe area decreased by 1.7 percent, from $15.3756 billion
to $15.1089 billion, a decrease of $0.2667 billion.
FY 2010/11 TO FY 2011/12 COMPARATIVE ASSESSED VALUES (in billions)
an.
Value (in Change from 2010
Jan. 1 2010 Value (in billions) billions) Value (Budget)
As of July 1 Kevised As of July 1 % Change
2010 Value (For 2011 from Prior
(For FY FY Change in (For Year
2010/11 2010/11 2010 2011/12 $ Revised
Budget) Projection) Values Budget) (in billions) % Value
RDA - City Ctr $ 3.4050 $ 2.9780 $ (0.4270) $ 3.4234 $ 0.0184 0.5% 15.0%
South Pointe 3.3242 3.1138 (0.2104) 3.4460 $ 0.1219 3.7% 10.7%
General Fund 15.3756 14.6281 (0.7476) 15.1089 $ (0.2667) -1.7% 3.3%
Total Citywide $ 22.1047 $ 20.7198 $ (1.3849) $ 21.9783 $ (0.1265) -0.6% 6.1%
Citywide Net of
City Ctr $ 18.700 $ 17.742 $ (0.958) $ 18.555 $ (0.1448) -0.8% 4.6%
Further, the following table shows that while property values Citywide are similar to FY 2006/07
levels Citywide, they are more than $1 billion lower outside the City Center RDA than in FY
2006/07. It should also be noted that since their peak in FY 2007/08, property values have
declined almost $4.9 billion Citywide, approximately 18 percent, despite almost $3 billion in new
construction added to the roll. Without the new construction, the decline in values would be even
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 25
greater, at 29 percent. Outside the City Center RDA, which impacts General Fund Property Tax
revenues, the decline in values is even more significant at 20 percent, even after new construction.
FY 2006/07 AND FY 2007/08 COMPARATIVE ASSESSED VALUES (in billions)
Jan. 1 2006 Jan. 1 2007
Value (in Value (in Jan. 1 2011 Change from 2006 Change from 2007
billions) billions) Value (in billions) Value (Budget) Value (Budget)
HS or July 1 HS or July 1 Hs or July 1
2006 2007 2011 (For
(For FY (For FY 2011/12 $ $
2006/07 2007/08 Budget) (in billions) % (in billions) %
RDA - City Ctr $ 3.0036 $ 3.5853 $ 3.4234 $ 0.4198 14.0% $ (0.1620) -4.5%
South Pointe 2.9057 3.4232 3.4460 $ 0.5403 18.6% $ 0.0228 0,7%
General Fund 16.8307 19.8416 15.1089 $ (1.7218) -10.2% $ (4.7327) -23.9%
Total Citywide $ 22.740 $ 26.850 $ 21.9783 $ (0.7617) -3.3% $ (4.8718) -18.1%
Citywide Net of
City Ctr $ 19.7364 $ 23.2648 $ 18.555 $ (1.1814) -6.0% $ (4.7098) -20.2%
Value of One Mill
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 2011
Certification of Taxable Value and has been set at $21,978,290. 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 $20,879,376.
Impacts of Decline in Property Values
In FY 2010/11, the operating millage rate for general City operations was adopted at 6.2155.
Based on the July 1, 2011 Certification of Taxable Value, 6.2155 mills would generate
approximately $129,775,762 in tax revenues, a decrease of $746,668 over FY 2010/11
budgeted property tax revenues Citywide (General Fund, City Center RDA and the South Pointe
area). The General Fund property tax revenues will decrease by $0.85 million, if the FY 2010/11
millage rate is maintained.
Further, the January, 1 2010 tax roll Citywide declined by almost $1.4. billion between the July 1,
2010 valuation and the July 1, 2011 valuation due to appeals, adjustments, etc., which resulted in
the FY 2011/12 "roll -back rate" being less than the FY 2010/11 current millage rate. The area
outside of City Center RDA declined by almost $1 billion.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 26
State Legislated Operating Millage Requirements
Pursuant to 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 the following votes by the
Commission or referendum:
• Option I: A majority of the approval of the Commission Millage is required to approve a
millage up to 8.1906 (equivalent to 100.55% of prior year maximum ad valorem proceeds
allowed by a majority vote, net of the impact of the Tax Increment Districts). The adjustment of
100.55% reflects the statewide per capita personal income increase for the prior year
• Option 11: A two- thirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 9.0097 (equivalent to a 10% increase in the ad valorem revenues above Option
g P e (q P
• Option III: A unanimous approval of the Commission or referendum is required to approve a
millage above 9.0097 up to the 10 mill cap.
Determining the Voted Debt Service Millage Levy
The general obligation debt service payment for FY 2011/12 is approximately $6.02 million.
Based on the July 1, 2011 Certified Taxable Value from the Property Appraiser, these bonds would
require the levy of a voted debt service millage of 0.2884 mills. This represents an increase of
0.0014 mills.
Combining the Operating and Voted Debt Service Millage Levies
Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the
City of Miami Beach for FY 2010/11 (final) and FY 2011/12 (preliminary) including RDA. In the
General Fund, 0.1083 mills of the total operating millage continues to be dedicated to renewal and
replacement, resulting in approximately $1.76 million in renewal and replacement funding.
% Inc /(Dec)
From From FY
City of Miami Beach Millage Rates FY 06107 FY 10/11 FY 11/12 Inc /(Dec) FY10/11 06/07
Operating 7.1920 6.1072 6.1072 0.0000
Capital Renewal & Replacement 0.1820 0.1083 0.1083 0.0000
Sub -total Operating Millage 7.3740 6.2155 6.2155 0.0000 0.0% -16%
Debt Service 0.2990 0.2870 0.2884 0.0014
Total 7.6730 6.5025 6.5039 0.0014 0.0% -15%
_ r
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 27
If these recommended millage rates are adopted, then the City of Miami Beach's total operating
millage will remain unchanged from the current year, and the voted debt service millage will
increase by 0.0014 mills.
Impact on Homesteaded Properties
Overall, based on an analysis of the homesteaded properties in the recently released 2011 tax roll,
the median value of homesteaded property in Miami Beach for 2011 is $119,461, and the
average is $277,201. Applying the proposed millage rates to these taxable values, half of the
homesteaded properties would pay Tess than $777, while the average taxes generated would be
approximately $1,803 per homesteaded property.
Homesteaded Properties Tax Levy Based on
January 1, 2011 Taxable Values
Median ( Average
Taxable Value $ 119,461 $ 277,201
City of Miami Beach
Taxes
Operating $ 743 $ 1,723
Voted Debt 34 80
Total Miami Beach $ 777 $ 1,8031
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 Tess. For 2010, the CPI has been determined to be 1.5
percent and therefore, the increase is capped at 1.5 percent for increased values as of January 1,
2011.
The impact of the millage change to homesteaded properties will vary significantly based on how
much below market value the property is assessed and the taxable value of the property. Those
properties significantly below market value will likely be impacted by the CPI adjustment to
assessed values. Based on a prior analysis of the homesteaded properties in the 2009 tax roll,
approximately 33 percent of homesteaded properties in Miami Beach were assessed at market
value and therefore were likely to decline in taxable value similar to the overall decline.
Further, the median value of homesteaded property from the prior year 2010 tax role in Miami
Beach was $1 19,000, and the average was $271,200. The impact to the median and average
properties between the 2010 and 2011 depends on the change in value for each individual
property. A range of examples are provided below. However, even assuming the maximum
increase of 1.5 percent from the 2010 value, the increase for half of the homesteaded properties
would be $12 or Tess, and for $27 for an average value property.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 28
Impact on Homesteaded Properties Assuming Changes in Taxable Value from January 1, 2010
FY 2010/11 (as of Potential Change as of FY 2011/12 (as of January 1 2011)
January 1 2010)* with 0.6% Decline with no change with 1.5% CPI
Median I Average Median 1 Average Median I Average Median I Average
Taxable Value $ 119,000 $ 271,000 $ 118,286 $ 269,374 $ 119,000 $ 271,000 $ 120,785 $ 275,065
City of Miami Beach
Taxes
Operating $ 740 $ 1,684 $ 735 $ 1,674 $ 740 $ 1,684 $ 751 $ 1,710
Voted Debt 34 78 34 78 34 78 35 79
Total Miami Beach $ 774 $ 1,762 $ 769 $ 1 ,752 $ 774 $ 1,762 $ 786 $ 1,789
$ Change in Taxes
Operating $ (5) $ (10) $ $ - $ 11 $ 26
Voted Debt - - - - 1 1
Total Miami Beach $ (5) $ (10) $ - $ - $ 12 $ 27
* Source: Miami -Dade County Property Appraiser File as of 8/17/10
Non - Homesteaded Properties
It is anticipated that overall for commercial properties would, on average, reflect a decline based
on the overall decline in property values, although individual properties could vary significantly.
Overlapping Jurisdictional Operating and Debt Service Millage 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.
The countywide tax rate for Miami -Dade County is proposed to decrease from 5.4275 mills to
4.8050 mills; the library tax rate is proposed to decrease from 0. 2840 mills to 0.1795 mills; and
the debt service millage increased from 0.4450 to 0.2850.
The proposed tax rate for the Miami -Dade School District is 8.0050; 0.2440 mills less than the
prior year millage of 8.2490. The Children's Trust millage is maintained at 0.5 mills. The
proposed tax rate for the South Florida Water Management District is 0.4363; 0.1877 mills Tess
than the prior year millage of 0.6240. The proposed tax rate for the Florida inland Navigation
District is 0.0345; unchanged from the FY 2010/11 millage.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 29
A summary of the tax rate changes is provided in the following table.
% of FY
Variance Variance 11/12
OVERLAPPING TAX MILLAGE FY 06/07 FY 10/11 FY 11/12 from 10/11 from 06/07 Total
City of Miami Beach Millage Rates
Operating 7.1920 6.1072 6.1072 0.0000 - 1.0848
Capital Renewal & Replacement 0.1820 0.1083 0.1083 0.0000 - 0.0737
Subtotal Operating Millage 7.3740 6.2155 6.2155 0.0000 - 1.1585
Voted Debt Service 0.2990 0.2870 0.2884 0.0014 - 0.0106
Total 7.6730 6.5025 6.5039 0.0014 - 1.1691 31%
Miami Dade County
Countywide 5.6150 5.4275 4.8050 -0.6225 - 0.8100
Library 0.4860 0.2840 0.1795 -0.1045 - 0.3065
Debt Service 0.2850 0.4450 0.2850 -0.1600 0.0000
Subtotal 6.3860 6.1565 5.2695 -0.8870 - 1.1165 25%
School Board 8.1050 8.2490 8.0050 -0.2440 - 0.1000 39%
Children's Trust 0.4220 0.5000 0.5000 0.0000 0.0780 2%
Other 0.7360 0.6585 0.4708 -0.1877 - 0.2652 3%
Total 23.32201 22.0665 20.7492 - 1.3173 - 2.5728 100%
With the Proposed millage rates for FY 2011/12, the Miami Beach portion of the FY 2011/12 tax
bill is approximately 31 percent of the total bill. Of note, even with the recently proposed millage
decreases by the County, the County millage is 1.1 mill less than their millage in FY 2006/07, as
compared to the City's proposed millage which is 1.2 mills less than the City millage in FY
2006/07. Further, the School Board millage is only minimally below the FY 2006/07 millage
rate, despite the recently proposed decrease. The significant difference in the total overlapping
millage rate is a direct result of the City's effort to keep the millage rates as low as possible.
Impact of Combined Tax Rates of Overlapping Jurisdictions on Homesteaded
Properties
Applying the proposed millage rates to the median and average January 1, 2011 taxable values of
$1 19,461 and $277,201, respectively, half of the homesteaded properties would pay less than
$2,478 for all taxing jurisdictions combined, while the average taxes generated would be
approximately $5,753 per homesteaded property. Of these taxing jurisdictions, the highest
component is the Miami -Dade School Board, at $956 for a median value property, and $2,219
for an average valued property.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 30
Homesteaded Properties Tax Levy Based on January 1, 2011
Values
I I Median I Average
Taxable Value Millage $ 119,461 $ 277,201
City of Miami Beach
Taxes
Operating 6.2155 $ 743 $ 1,723
Voted Debt 0.2884 34 80
Total Miami Beach 6.5039 $ 777 $ 1,803
Miami Dade County
Countywide 4.8050 574 1,332
Library 0.1795 21 50
Debt Service 0.2850 34 79
Subtot 5.2695 62 1,461
School Board 8.0050 956 2,219
Children's Trust 0.5000 60 139
Other 0.4708 56 131
Total 20.7492 2,478 5,753
The following table provides examples of changes in property taxes for homesteaded properties as
a result of these declines in values, using the proposed tax rates and potential changes from 2010
values.
Imeact on Homesteaded Properties Assuming Changes in Taxable Value from January 1, 2010
FY 2010/11 (as of January FY 2011/12
1 2010)* with 0.6% Decline with no change with 1.5% CPI
Median I Average Median 1 Average Median 1 Average Median 1 Average
2010 Taxable Value $ 119,000 $ 271,000 $ 118,286 $ 269,374 $ 119,000 $ 271,000 $ 120,785 $ 275,065
City of Miami Beach
Operating $ 740 $ 1,684 $ 735 $ 1,674 $ 740 $ 1,684 $ 751 $ 1,710
Voted Debt $ 34 $ 78 34 78 34 78 35 79
Total Miami Beach $ 774 $ 1,762 $ 769 $ 1,752 $ 774 $ 1,762 $ 786 $ 1,789
Miami Dade County $ 733 $ 1,668 $ 623 $ 1,419 $ 627 $ 1,428 $ 636 $ 1,449
Schools $ 982 $ 2,235 $ 947 $ 2,156 $ 953 $ 2,169 $ 967 $ 2,202
Other $ 138 $ 314 $ 115 $ 262 $ 116 $ 263 $ 117 $ 267
Total $ 2,627 $ 5,979 $ 2,454 $ 5,589 $ 2,470 $ 5,622 $ 2,506 $ 5,707
Change in Taxes
City of Miami Beach
Operating $ (5) $ (10) $ - $ (0) $ 11 $ 26
Voted Debt $ (0) $ 0 $ (0) $ 0 $ 1 $ 1
Total Miami Beach $ (5) $ (10) $ (0) $ (0) $ 12 $ 27
Miami Dade County $ (110) $ (249) $ (106) $ (240) $ (97) $ (219)
Schools $ (35) $ (79) $ (29) $ (66) $ (15) $ (33)
Other $ (23) $ (52) $ (22) $ (51) $ (21) $ (47)
Total $ (173) $ (390) $ (157) $ (357) $ (121) $ (272)
As with the City of Miami Beach millage rates, impacts of the combined jurisdictional millage rates
for non - homesteaded properties will likely reflect declines in property values, although individual
properties may vary.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 31
GENERAL FUND CURRENT SERVICE LEVEL REVENUES
While property values appear to have started to stabilize, other revenues such as sales taxes
(Intergovernmental Revenues), licenses and permits, and rents and leases have started to rebound.
In addition, sidewalk cafe revenues reflected under Licenses and Permits incorporate the previously
approved $2.50 per sq. ft. per year increase effective October 1 and Business Tax Receipt
revenues reflect a previously approved 5 percent increase. Corporate Sponsorships (Miscellaneous)
are projected to increase by $400,000 due to a sponsorship program approved by the City
Commission in July, 2011, pending final negotiations. However, uniform sponsorships which were
included in the FY 2010/11 budget been g have be n delayed resulting in a slightly lower overall
increase. Further, the budget reflects decreased revenues previously anticipated from the red Tight
cameras (under Fines and Forfeits), and the Commercial Pole Banner Program (Miscellaneous).
Other new initiatives reflected in the FY 2011/12 CSL budget include a new Florida Power and
Light (FPL) franchise agreement anticipated to generate approximately $1 million (offsetting
declining revenues in the current fiscal year), $140,000 in additional bus shelter advertising
revenues from a new agreement currently under negotiation, and $370,000 in ground lease
revenues and administrative fees associated with the New RDA Pennsylvania garage.
Further, similar to the FY 2010/11 budget, FY 2011/12 CSL revenues reflect the use of $3.55
million in prior year surplus specifically set aside for this purpose along with $7.2 million in prior
year Parking Fund operating surplus as planned last year during the development of the FY
2010/11 budget.
As anticipated, the non -ad valorem revenue projections were refined over the summer to reflect
increased franchise and utility taxes, sales taxes, business tax receipts and fire inspection fees,
building development process fees, rents and leases, increased reimbursements from capital
projects and administrative fees charged to enterprise funds, offset by decreased interest earnings.
As a result the projected CSL revenues reflect an increase of approximately $1.2 million increase
from the estimate included with the July, 2011 millage memo. This is in addition to the almost $4.7
million increase in ad valorem revenues based on the June 1, 2011 preliminary property values
and $1 million increase in non ad- valorem revenues from the estimate presented at the May
Commission Retreat. The total CSL revenue estimate at this time is $243.1 million, an increase of
$5.6 million from the FY 2010/11 adopted budget.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 32
Operating Millage
Property Tax Citywide $ 100,222,022 $ 99,009,520 $ (1,212,502)
Property Tax South Pointe 10,145,339 10,524,084 378,745
Capital Renewal/Replacement 1,777,254 1,755,752 (21,502)
Property Tax Normandy Shores 100,517 108,469 7,952
Subtotal 112,245,132 111,397,825 (847,307)
Other Taxes $ 25,417,600 $25,278,385 (139,215)
Licenses and Permits 15,506,204 17,074,053 1,567,849
Intergovernmental Revenues 9,618,140 10,091,000 472,860
Charges for Services 4,843,895 4,879,252 35,357
Golf Courses 5,504,155 5,805,119 300,964
Fines and Forfeits 3,211,263 2,574,000 (637,263)
Interest 3,552,000 3,430,000 (122,000)
Rents and Leases 4,892,352 6,034,143 1,141,791
Miscellaneous 11,392,781 11,790,870 398,089
Other - Resort Taxes 24,465,440 24,465,440 -
Other - Reserves - Bldg Dept 1,546,709 1,546,709 -
Other - Parking Surplus Transfer 3,600,000 7,200,000 3,600,000
Other - Prior year set aside 3,657,000 3,551,120 (105,880)
All Other 8,065,443 7,981,502 (83,941)
Subtotal 125,272,982 131,701,593 6,428,611
r..`�rme, `.swiri.p av frpa."v„ sir: wn<k. a+wf w + +nktn,•w.. ►+s` a.M..' wwr.awe— -...k. M*alr �e MA IM
GENERAL FUND CURRENT SERVICE LEVEL EXPENDITURES
On the expenditure side, CSL expenditures (i.e. the cost of providing the same level of service as in
the prior fiscal year — CSL expenditures) typically have increased between 6 percent and 8 percent
annually due to salary and benefit increases and other normal cost of living adjustments. In FY
2011/12, increases are estimated to result in an approximately $9.7 million (4 %) increase in
expenditures, the majority of which is due to the following:
• A $1.9 million increase to reflect a previously bargained salary adjustments for employees,
including a 3 percent Cost of Living Adjustment (COLA) for bargaining employees as of April,
2012; the impact of step increases for employees in the FOP and IAFF bargaining units; a
maximum of 2 percent performance -based merit increase for employees in the Government
Supervisor's Association (GSA) bargaining unit; and a maximum of 2 percent performance -
based merit increase for employees in the American Federation of State, County and Municipal
Employees bargaining unit (AFSCME) as of May, 2012. In addition, the 3 percent COLA and
2 percent performance -based merit increase has been included for unclassified and other
employees consistent with past practice of treating all employees equally.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 33
• A $0.3 million increase in overtime cost primarily due to increases in Police court overtime.
• A $4.2 million increase in the General Fund portion of the City's annual required contributions
to the Fire and Police ($2.2 million) and General Employees ($2 million) pension plans,
primarily due to the continued recognition of investment losses from FY 2007/08 and FY
2008/09, updated mortality and revised investment rate of return assumptions in the Miami
Beach Employees Retirement (MBERP) plan, and revised investment rate of return assumptions in
the Fire and Police Pension Plan.
• A $2.8 million increase in health insurance costs based on an estimated 10 percent increase
over the current Fiscal Year, as well as the expiration of the FOP and IAFF additional 5 percent
contribution to City health insurance costs which was for an 18 month period, and which will
expire in February, 2012 and January, 2012, respectively.
• A $1.1 million Increase in Internal Service Fund charge -backs to departments primarily due to
similar increases in salary and pension costs as described above that are then charged back to
the general fund, as well as equivalent increases in health insurance costs for retirees, and
increases in fuel prices. It is important to note that fuel prices in FY 2011/12 are budgeted at
current prices. Should prices increase further, the General Fund will need to fund these
increases.
It is important to note that operating costs are approximately $0.7 million Tess than the FY 2010/11
budget, reflecting the continuation of various cost savings initiatives by the City such as re- bidding
contracts, and careful review of department line item expenditures.
In addition, this reflects a decrease in expenditures of approximately $1 million from the estimate
presented at the Commission retreat in May, 2011 primarily due to refinements in estimates for the
Miami Beach Employees Retirement Plan annual contribution requirements, police overtime, and
internal service fund charges.
Together, salaries and fringe represent 73 percent of CSL personnel costs, with salaries and
pension representing approximately 67 percent of the total current service level (CSL) budget of
$246 million, (including the impacts of merit /steps increases, pension contributions, etc.)
It should be noted that approximately the $27 million in other operating costs (1 1 percent of CSL
budget) reflects a decrease of more than $700,000. This savings reflects the results of various cost
savings initiatives by the City such as re- bidding contracts, careful review of department line item
expenditures, other efficiencies, etc.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 34
Salaries $ 99,515,410 $101,447,870 41% $ 1,932,460
Overtime /Other Wages 12,347,060 12,642,593 5% 295,533
Benefits
Pension - F &P 33,429,345 35,602,142 14% 2,172,797
Pension - MBERP 8,940,594 10,965,525 4% 2,024,931
Other Pension Costs 5,848,934 5,802,867 2% (46,067)
Health and Life 6,355,606 9,155,788 14% 2,800,182
Other Benefits 3,965,449 4,041,231 2% 75,782
Total Benefits 58,539,928 65,567,553 27% 7,027,625
Total Salary and Benefits 170,402,398 179,658,016 73% 9,255,618
Operating 27,778,666 27,046,930 11 % (731,736)
Internal Service Funds 35,216,360 36,183,091 15% 966,731
Capital & Debt 4,120,690 4,184,534 2% 63,844
Total $ 237,518,114 $ 247,072,571 100% $ 9,554,457
The resulting gap between General Fund CSL revenues and CSL expenditures is approximately $4
million.
APPROACHES TO BALANCE
Based on direction provided by the Finance and Citywide Projects Committee meetings in July
2011, and following the strategy discussed in our retreat in May of this year, the approximately $4
million shortfall between Current Service Level revenues and expenditures has been addressed
through transferring $2.1 million in expenditures to the resort tax fund as well as increasing resort
tax revenue transfers into the General Fund while allowing some modest enhancements in response
to community priorities as well as funding for programmed living wage increases for City contracts.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 35
Proposed CSL Budget
Revenues $ 243,099,418
Expenditures $ 247,072,571
Net CSL Gap $ 3,973,153
Resort Taxes - move Special Event and Holiday Decoration expenses from GF (2,093,000)
Resort Tax - transfer to GF (2,000,000)
(4,093,000)
Living Wage FY 2011/12 Increase $ 54,266
Minimal Impact Reductions /Efficiencies (203,270)
Service Reductions (75,000)
Service Enhancements 324,392
Additional CIP Chargeback Revenues (75,900)
General Fund Impacts of Internal Service Reductions (90,046)
General Fund Impact of Internal Service Fund Enhancements 96,250
Revenue Enhancements -
$ 30,692
r
Of note, the Current Service Level expenditures reflect no additional transfers to the 11 percent
Emergency Reserve or towards the City's additional 6 percent contingency goal. Reserve levels are
sufficient to fund the 11 percent reserve for the Proposed FY 2011/12 Operating Budget. The
City's 11percent reserve is projected to be fully funded in FY 2011/12 from reserve levels as of
September 30, 2010 at $26.7 million, in addition to funding $11.9 million or 4.9 percent towards
the additional 6 percent contingency goal, for a total fund balance reserve of almost $38.6 million,
if there are no additional changes in fund balance, and no additional transfers made.
The resulting total Proposed General Fund Operating Budget for FY 2011/12 is $ $245,175,318,
which is $7.6 million or 3 percent more than the FY 2010/11 Adopted Budget of $237,518,114.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 36
Enterprise Funds are comprised of Sanitation, Water, Sewer, Stormwater, Parking, and Convention
Center Departments. The Proposed FY 2011/12 Enterprise Funds Budget is $157.4 million. This
represents an increase of $1.6 million from the FY 2010/11 Enterprise Fund Budget, an increase of 1
percent.
In addition to increases in $1.6 million in pension and internal service charges, the primary drivers of
this increase are the following:
• An additional $5.5 million is in other costs in the Parking Operating Fund primarily due to:
o a $1.6 million increase in salaries, health insurance, and fundin g for post retiree health
similar to increases in the General Fund
o a $1.4 million decrease in other operating costs
o a $3.6 million increase in the prior year Parking Operating Fund surplus transfer to the
General Fund, from $3.6 million to $7.2 million, and
o a $1.7 million increase in the transfer to Parking Reserves from $3.6 million in the FY
2010/11 adopted budget to $5.4 million in the FY 2011/12 proposed budget.
• $5.8 million in debt service due $4.4 million anticipated with the issuance of approximately
$50 million in Stormwater bonds in FY 2011/12 as well as an increase of $1.4 million for the
second year of debt service for the series 2009 Stormwater bonds.
• $0.7 million due to increase in the County wholesale rate for sewer.
These increases are offset by a $9.2 million decrease in transfers to the Water, Sewer and Stormwater
rate stabilization funds and a $3 million decrease in sewer wholesale payments (prior to the fee
increase) to Miami -Dade County as compared to budget.
Of note, the transfers to the rate stabilization fund are made for debt coverage purposes only so that
the net revenues at year -end are sufficient to exceed the bond coverage requirements. Since they are
not anticipated to be needed to cover expenditures, they are projected to return to the water and
sewer rate stabilization funds at year end and are then available for debt coverage calculations in the
following year.
Further, the Miami -Dade County wholesale rate increase of 1.092 cents per thousand gallons, results
in an average increase of $1.21 per month based on an average of 11,000 gallons per month. The
sanitation fee impact is 37 cents per household per month.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 201 1
Page 37
Internal Service Funds are comprised of the Central Services, Fleet Management, Information
Technology, Risk Management and Property Management Divisions. The Proposed FY 2011/12
Internal Service Fund budget is $54.3 million. This represents an increase of $1.9 million (4 percent)
from the FY 2010/11 budget, primarily due to increases in ses in salary, pension and health cost similar to
g �P Y Y,P
those described in the General Fund. These costs are completely allocated to the General Fund
and Enterprise Fund departments, and the Risk Management Fund reimburses the General Fund for
the cost of legal services.
The Property Management Fund, includes the modest reduction in janitorial services offset by the
purchase of a Vacuum Truck for the enhanced maintenance of Beach Showers and the additional
$50,000 in contractual support for 40 year building recertification's required by Miami -Dade
County Code.
The Proposed FY 2011/12 Resort Tax budget is $47.1 million, an increase of $5.8 million (14
percent) from FY 2010/11. This reflects the continued increase in resort tax revenues, consistent
with other tourism indicators throughout the County, but especially in Miami Beach. Of the $5.8
million increase:
• An additional $2 million is transferred to the General Fund for tourism - related services
provided by General Fund departments for a total transfer of $26.47 million.
• An additional $2.1 million is used to address special event and holiday decorations,
budgeted in the General Fund in prior years.
• An additional $0.12 million is for the contractual CPI adjustment in the transfer to the
Greater Miami Convention and Visitors Bureau, for a total of $5.25 million.
• An additional $0.72 million and $0.22 million is transferred for quality of life capital
projects and the arts and the Miami Beach Visitors Convention Authority based on funding
formulas, for a total of $4.30 million and $1.82 million, respectively.
The Debt service is increased by $0.72 million from $4.8 million to $5.52 million, and
administrative expense are increased by $0.13 million
Further, $100,000 continues to be funded for a Miami Beach marketing campaign (a decrease
from $200,000 in FY 2010/11); with marketing funds added to by contributions from the Greater
Miami Convention and Visitors Bureau, the Miami Beach Visitors Convention Authority, and the
Cultural Arts Council to market Miami Beach as a local destination; and $82,000 is set aside for
enhanced management of major events.
FY 2011/12 Proposed Work Plan and Budget Message
August 31, 2011
Page 38
Although the development of our budget this year has been challenging, through rigorous review
and good leadership, the Proposed Work Plan and Budget for FY 2011/12 is balanced and
enables the City of Miami Beach to continue delivering outstanding, enhanced services to our
residents, businesses and visitors, providing fee relief in our Enterprise Funds, and continuing
structural enhancements to ensure the long -term sustainability of the City.
In summary, the Proposed FY 2011/12 General Fund operating budget maintains current service
priorities for the community, despite property tax rates set at 1 .2 mills (16 percent) lower than FY
2006/07 when property values were similar to the 2011 certified values. Further, I am also
recommending keeping water, sewer, and stormwater rates flat, other than the sewer pass through
for increases in the Miami -Dade County wholesale sewer rate.
The development of this year's Proposed Work Plan and Budget has challenged our City staff and
the Commission as we sought to balance a budget which began with double -digit percentage
declines in property values at the same time as unusually high pension increases, particularly in the
Fire and Police Pension system. I would like to thank Mayor Matti 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 those bargaining units
that have willingly agreed to employee "give- backs" so that we can begin to control personnel costs
as well as 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 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.
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; Laura Aker, Tameka Otto -
Stewart, and Paula Rodriquez , Management and Budget Analysts; and Office Associate Jennifer
White.
Respectfully submitted,
9e z'`
ity Manager
ATTACHMENT A: FY 2011/12 BUDGET - PRIOR YEAR REDUCTIONS , PRELIMINARY CSL
PRELIMINARY CSL INCLUDES
10% Increase in Health Insurance
Does not include increases to living wage
4 -Year Prior Reductions
(Adjusted For FY 2010/11 PLAN B*) PROPOSED FY 2011/12
CSL Budget Prior
Positions/ % of to Pension and Addtl. Potential
$ Impact/ % of Adjusted Adjusted FY 2010/11 FY 2010/11 Adopted Budget Internal Service CSL with Pension Efficiency Service % of POS.
FY 2010/11 Budget Budget Adjusted For Plan B** Adjustments $ change % Chg and Internal Reorg. Etc. Reductions Total CSL Impacts
Service
General Fund $'s % FT PT % $'s JFT PT Alloactions FT PT
Mayor & Commission $ (142,801) -9% -2 3 0 0 -13% $ 1,534,322 17.7 - $ 1,527,973 $ (6,349) -0.4% $ 1,585,966 $ - $ - $ - 0.0% 0.0 0.0
City Manager $ (348,867) -15% -3.3 0.0 -34% $ 2,350,894 9.7 - $ 2,289,970 $ (60,924) -2.6% $ 2,338,580 $ - $ - $ - 0.0% 0.0 0 0
Communications $ (367,859) -42% -4.0 0.0 -80% $ 878,482 5.0 - $ 903,810 $ 25,328 2.9% $ 910,044 $ - $ - $ - 0.0% 0.0 0.0
I
OBPI $ (298,449) -16% -3.0 0.0 -25% $ 1,820,829 12.1 - $ 1,840,264 $ 19,435 1.1% $ 1,919,495 $ - $ - $ - 0.0% 0.0 0.0
Finance $ (588,321) -14% -10.0 0.0 -31% $ 4,124,205 32.0 - $ 4,170,241 $ 46,036 1.1% $ 4,278,985 $ - $ - $ - 0.0% 0.0 0.0
Procurement $ (82,017) -8% -1.0 0.0 -11% $ 969,238 9.0 - $ 1,006,322 $ 37,084 3.8% $ 1,008,971 $ (45,388) $ - $ (45,388) -4.5% -1.0 1.0
Human Resources/Labor Relations $ (413,742)1 -24% -5.51 1.0 -29% $ 1,697,128 14.3 1.0 $ 1,746,366 $ 49,238 2 9% $ 1,789,995 $ (15,796) $ - $ (15,796) -0.9% 0.0 0.0
cv Clerk $ (79,899) -5% -1.4 0.0 -15% $ 1,500,597 9.6 - $ 1,529 6 24 $ 29,027 1.9% $ 1,561,930 $ - $ - $ - 0.0% 0.0 0.0
I
City Attorney $ (475,555) -12% -3.3 -1.0 -23% $ 4,002,642 18.7 - $ 4,113,552 $ 110,910 2.8% $ 4,162,519 $ - $ - $ - 0.0% 0.0 0.0
Real Estate, Housing & Community Dev $ (281,910) -14% -4.0 0.0 -40% $ 1,966,198 9.9 - $ 1,961,510 $ (4,688) -0.2% $ 2,082,264 $ - $ - $ - 0.0% 0.0 0.0
(incl. Community Services)
Building $ (601,165) -6% -8.0 0.0 -11% $ 9,351,733 73.0 - $ 9,646,766 $ 295,033 3.2% $ 9,984,484 $ - $ - $ - 0.0% 0 0 0.0
(0 Planning $ (310,351) -10% -4.0, 0.0 -16% $ 3,113,588 25.0 - $ 3,259,483 $ 145,895 4.7% $ 3,360,447 $ - $ - $ - 0.0% 0.0 0.0
TCD $ (485,903) -18% -2.0 0.0 -15% $ 2,643,624 13.5 - $ 2,569,257 $ (74,367) -2.8% $ 2,475,993 $ (64,997) $ - $ (64,997) -2.6% -0.5 0.0
Code Compliance (Neigborhood Svcs') $ (843,827) -20% -13.0 3.0 -21% $ 4,185,650 35.0 12.0 $ 4,278,337 $ 92,687 2.2% $ 4,434,492 $ - $ - $ - 0.0% 0.0 0.0
1
Parks & Recreation $ (2,876,409) -10% -27.0 -26.0 -18% $ 27,829,008 172 0 128.0 $ 27,749,938 $ (79,070) -0.3% $ 28,001,933 $ (24,334) $ - $ (24,334) -0.1% -1.0 0.0
Public Works $ (1,446,535) -23% -17.5 0.0 -42% $ 6,372,884 41.4 - $ 6,280,035 $ (92,849) -1.5% $ 6,382,083 $ - $ - $ - 0.0% 0.0 0.0
I
CIP $ (63,863) -1% 1.0 0.0 3% $ 4,520,748 35.0 - $ 4,501,159 $ (19,589) -0.4% $ 4,587,743 $ - $ - $ - 0.0% 0.0 0.0
Police $ (4,914,146) -6% -62.0 1.0 -12% $ 88,920,529 491.0 15.0 $ 90,878,568 $ 1,958,039 2.2% $ 93,081,562 $ (52,755) $ - $ (52,755) -0.1% 0.0 0.0
Fire $ (2,368,194) -4% -7.01 0.0 -2% $ 56,207,375 303.0 48.0 $ 57,523,168 $ 1,315,793 2.3% $ 59,080,467 $ - $ - $ - 0.0% 0.0 0.0
ayt wide $ (1,614,544) -15% 0.0 0.0 0% $ 10,836,186 - - $ 11 „464,517 $ 628,331 5.8% $ 11,377,366 $ - $ (75,000) $ (75,000) -0.7% 0.0 0.0
Subtotal _ $ (18,604,357) -8% -177.4 -22.0 -13% $ 234,825,860 1326.9 204.0 $ 239,240,860 1 $ 4,415,000 1.90 $ 244,405,319 $ (203,270) $ (75,000) $ (278,270) -0.1% -2.5 1.0
General Fund
Transfers
Capital Reserve $ (2,500,000) $ -
Pay -As- You -Go Capital $ (7,500,000) $
Info & Comm. Tech Fund $ (600,000) $ 715,000 $ 715,000 $ - 0.0% $ 715,000 0.0%
Capital Investment Upkeep Acct $ (1,618,000) $ 200,000 $ 196,500 $ (3,500) -1.8% $ 196,500 0.0%
Renewal and Replacement Fund $ (1,056,529) $ 1,777,254 $ 1,755,752 $ (21,502) -1.2% $ 1,755,752 0.0%
Homeowners Dividend $ (4,900,000) $ -
Transfer to Risk Fund $ (1,000,000) $ -
Transfer to 11% Reserve $ (3,338,419)_ $
PENSION INCREASE $ 4,197,728 $ 4,197,728
INTERNAL SERVICE FUNDS INCREASE $ 966,731 $ 966,731
Total General Fund $ (41,117,305) -17% -177.4 -22.0 -13% ' $ 237,518,114 1326.9_ 204.0 _ $ 247,072,571 1 $ 9,554,457 4.0% , $ 247,072,571 $ (203,270) $ (75,000) $ (278,270) -0.1% - 2.5 1.0
• Neigborhood Services Department was split into various functions and significantly reduced in FY 2007/08 - Chart reflects reductions as part of C, $ (141,968)
•• FY 2010/11 Budget included reductions for contracting out/converting positions to part-time, resulting in $221,901 in department Plan B savings offset by increased contingency.
These were not implemented and the FY 2010111 Department budget have been adjusted to reflect the impact. I
i
PREUMMNARY CSL INCLUDES
10% Increase in Health Insurance
Does not include increases to living wage 1
4 -Year Prior Reductions
(Adjusted For FY 2010/11 PLAN B*) PROPOSED FY 2011/12
CSL Budget Prior
Positions/ % of to Pension and Addtl. Potential
$ Impact/ % of Adjusted Adjusted FY 2010/11 FY 2010/11 Adopted Budget Internal Service CSL with Pension Efficiency Service % of POS.
FY 2010/11 Budietlfillget Ad usted For Pla B ** Ad ustments $ change % Chg and internal Reorg. Etc. Reductions Total CSL Impacts
Internal Service Funds -�
Information Technology $ (1,421,977) -10% -10.0 0.0 -28% $ 14,427,730 35.5 - $ 15,178,419 $ 750,689 5.2% $ 15,298,740 $ $ - $ - 0.0% 0.0 0.0
Risk Management $ (325,443) -2% -0.5 0.0 -7% $ 20,542,249 6 7 - $ 21,728,686 $ 1,186,437 5.8% $ 21,750,296 $ - $ - $ - 0.0% 0.0 0.0
Central Services $ (82,064) -10% -1.6 0.0 -36% $ 856,355 4.4 - $ 879,036 $ 22,681 2.6% $ 886,490 $ - $ - $ - 0.0% 0.0 0.0
Property Management- Non RDA $ (1,369,437) -17% -22.0 0.0 -50% $ 8,371,475 44.0 - $ 8,161,281 $ (210,194) -2.5% $ 8,222,278 $ - $ (100,000) $ (100,000) -1.2% 0.0 0.0
Fleet Management $ 099,304) -2% -3.0 0.0 -14% $ 8,375,372 21.0 - $ 8,119,683 $ (255,689) -3.1% $ 8179,436 $ - $ - $ - 0.0% 0.0 0.0
PENSION INCREASE $ 269 9 37 $ 269,937
INTERNAL SERVICE FUNDS INCREASE $ 198 $ 198
o Total Internal Service Funds $ (3,398,225) -6% -37.11 0.0_ -41% $ 52,573,181 111.6 0.0 $ 54,337,240 I $ 1,764,059 3.4% $ 54,337,240 $ - $ (100,000)_ $ (100,00) -0.2% 0.0 0.0
SUB -TOTAL GENERAL FUND + INTERNALS1 $ (44,515,530)1 -15 %1 - 214.57 -22.01 -14 %1I$ 290,091,295 1 204.01 $ 301,409,811 1 11,318,516 1 0.11 301,409,811 1$ (203,270)f $ (175,000)1 $ (378,270)1 -0.1 %11 -2.51 1.0
Enterprise Funds
Convention Center $ (468,778) -4% 0.0 0.0 0% $ 12,832,911 2 0 =Il $ 13,248,922 $ 416,011 3.2% $ 13,168,247 $ 64,997 $ - $ 64,997 0 5% 0.5 0.0
Water $ (409,720) -1% -13.0 0.0 -23% $ 31,030,070 56.2 - $ 33,556,126 _ $ 2,526,056 8.1 %,$ 33,626,226 $ (244,993) $ - $ (244,993) -0.7% -4.0 0.0
Sewer $ (232,969) -1% -7.0 0.0 -20% $ 40,024,931 7 35.1 $ 34,429,024 $ (5,595,907) - 14.0% $ 34,704,578 $ $ $ 0.0% 0.0 0.0
Stormwater $ (334,580) -2% -0.5 0.0 -2% $ 16,893,083 23.3 ' - $ 15,315,220 $ (1,577,863) -9.3% $ 15,607,441 $ (315,595) LIMIIIMI $ (315,595) -2.0% -2.0 0.0
Sanitation $ (362,330) -2% -3.0 0.0 -2% $ 16,562,258 , 187.0 0k $ 15,669,054 $ (893,204) -5.4% $ 15,901,776 $ (110,902) $ - $ (110,902) -0.7% -2.0 0 0
Parking $ (750,351) -2% -8.0 8.0 0% $ 38,858,490 116.0 17.0 $ 38,362,809 $ (495,681) _ -1.3% $ 39,138,694 , $ - $ (167,800) $ (167,800) -0.4 %„ 0.0 0.0
PENSION INCREASE $ 818,583 _ .. INTERNAL SERVICE FUNDS INCREASE _ $ 7 47,224 ,
Total Enterprise Funds ' $ (2,558,728)' -2 %' -31.51 8.0 -6 %_ $ 156,201,743 _ 419.6_ 17.0 _ $ 152,146,962 1 $ (5,620,588), -2.6 %I $ 152,146,962 ' $ (606,493) ' $ (167,800) $ (774,293) -0.5 % -7.5 0.0
GRAND TOTAL ** $ 47,074 258 -11% -246.0 -14.0 -13% 446,293 038 1858.1 221.0 $ 453,556,773 $ 5,697,928 1.6% $ 453,556,773 $ 809,763 $ 342,800 $ 1,152,563 -0.3% -10.0 1.0
I " FY 2010/11 Budget included reductions for contracting out/converting positions to part - time, resulting in $221,901 in department Plan B savings offset by increased contingency.
These were not implemented and the FY 2010/11 Department budget have been adjusted to reflect the impact.
ATTACHMENT B - POSITIVE IMPACT OR MINIMAL SERVICE IMPACT, EFFICIENCIES, ETC.
Position Impacts
Cumulative Full Part Proj. Mgt. & Non
GENERAL FUND Impact Dept. Impact Time Time Vacant Filled Admin Mgt.
Police
Replace a captain with a sergeant position
(52,755) (52,755)
Parks & Recreation
Eliminate One (1) Full Time vacant - Municipal Service Trainee as
functions have been absorbed by other positions (24,334) (24,334) (1.0) (1.0) _ (1.0)
TCD
Revise allocation for Director (35 %) and Administrative Support (15 %) to
charge to Convention Center (64,997)_ (64,997) (0.5) (0.5) (0.5)
Procurement
Convert 1 vacant full -time coordinator position to part -time 1 (45,388)1 (45,388)1 (1.0)1 1.0 1 1 1 I
Human Resources /Labor Relations
Replace HR Specialist w /FT OA IV and professional services 1 (15,796) 1 (15,796)1 l 1 � 1
%A •
imina e un•mg or estiva o t e A s since t o event is no onger
viable as an arts festival and redirect to this funding to enhance north
beach economic development activities at the Bandshell and Byron
Carlyle $49,500 -
Total General Fund' $ (203,270)1 $ (203,270)1 (2.5)1 1.0 1 (1.0)1 (0.5)1 (0.5)1 (1.0)
Position Impacts
Cumulative Full Part Proj. Mgt. & Non
ENTERPRISE FUNDS Impact Dept. Impact Time Time Vacant Filled Admin Mgt.
Convention Center
Revise allocation for Director (35 %) and Administrative Support (15 %) to
charge to Convention Center 64,997 64,997 0.5 0.5 0.5
Sanitation
Eliminate Two HEOII Positions (1 filled, 1 vacant) as service now provided
by City waste contractor (110,902) (110,902) (2.0) (1.0) (1.0) (2.0)
Water
Eliminate the third Water Construction Crew, due to decreased breaks as
CIP program is implemented as well as decreased housing /condominium
development (244,993) (244,993)
(4.0) (4.0) _ (4.0)
Stormwater
Outsource Vac -Con Truck crew used for cleaning drains, catch basins,
etc. - Eliminates 2 MSW1s and avoids replacement of Vac -Con truck (315,595) (315,595) (2.0) (2.0) (2.0)
Total Enterprise Funds' $ (606,493)1 $ (606,493)1 (7.5)1 - 1 (1.0)1 (6.5)1 0.5 1 (8.0)
Grand Total 1 $ (809,763)1 $ (809,763)1 (10.0)1 1.0 1 (2.0)1 (7.0)1 - 1 (9.0)1
41
ATTACHMENT C - PROPOSED SERVICE ADJUSTMENTS
Position Impacts
Cumulative
Department Full Part Proj. Mgt & Non
Impact Impact Time Time Vacant Filled _Admin Mgt.
GENERAL FUND
Police
Eliminate 4 Scheel I:ieisen Gf#+cers & 4 Scheel Uiaicon Supew+sor (Total of 5 Contractual
Sewieee pescitiene) These position sewe as liaisons to the p444alie elementary aa4 middle
schools Off Miami Leash- Elimination w444 teach iR fie effieefs being assigned te the subtle
schools AR Miami Seach which leads te a gfeatef dissatiefactien ffem within the community. 5
positions - 5482534 $ -
Eliminate Citywide contracted security expenditures of $731,673 while maintaining RDA areas PENDING
(beach walks, boardwalks, Lincoln Road etc.). FURTHER
EVALUTATION $ -
€4ifj inete eRe (-1-) Ritblie Safety Specialist assigned to GlalAdministfatien, The ability te feview
and efrhanee videe #rem efi+ a cocnca will be loct. Crimes will ge unsolved wittieut this
$
Fire
Fire (Ocean Rescue)
Eliminate One (1) Lifeguard Tower (1 L2 and 2 L1'S) Notc: reflects total of personnel coots,
-
PENDING
Change the Ocean Rescue Division schedule to 5/8s on a year round schedule (reduces FURTHER
seasonal salaries) EVALUTATION $ -
Parks & Recreation
. $avings: 54 008-
accocc to the poolc.
$ the RYC and N8PYC. NOTE ** lac Rink will remain open at the SRYC.
.. - $
cuoh as Rapids, cto
$ -
42
ATTACHMENT C - PROPOSED SERVICE ADJUSTMENTS
Position Impacts
Cumulative
Department Full Part Proj. Mgt & Non
Impact Impact Time Time Vacant Filled Admin _Mgt.
Citywide
Eliminate funding for County lobbyist $ (75,000) $ (75,000)
•° y • • Z -_.
Jewisla-MueetifFr $ $ (75,000)
- - - - - - $ $ (75,000)
$ $ (75,000)
$ $ (75,000)
$ $ (75,000)
$ $ (75,000)
OFange -Bawl- $ $ (75,000)
$ $ (75,000)
Cictcr Citics $ $ (75,000)
$ 46,030 $ (75,000)
Seuglas- Gardens- $ 21,660 $ (75,000)
$ 21,660 $ (75,000)
$ 16,606 $ (75,000)
$ $ (75,000)
organizatierns:
$ (75,000)
- = _ $ (75,000)
$ (75,000)
$ (75,000)
$ (75,000)
$ (75,000)
Orange -Bawl- $ (75,000)
$ (75,000)
Sister Cities- $ (75,000)
Het- Meals -JVS- $ (75,000)
Deaglas- 6ardons- $ (75,000)
== $ (75,000)
44- $ (75.000)
$ (75 non)
Total] $ (75,000)1 $ (75,000) 1 - 1 - 1 - 1 - 1 - 1 -
Position Impacts
Cumulative
Department Full Part Proj. Mgt & Non
INTERNAL SERVICE FUNDS Impact Impact Time Time Vacant Filled Admin Mgt.
Property Management
Reduce janitorial level of service in 23 of 33 City facilities. Full janitorial service of the non -
common areas in these facilities will be reduced
$ (100,000) $ (100,000)
Total Internal Service Funds' $ (100,000)1 $ (100,000)1 - - 1 - 1 - 1 - 1 -
Grand Total! $ (175,000)1 $ (175,000)1 - 1 - 1 - 1 - 1 - 1 -
Position Impact
Cumulative
Department Full Part Proj. Mgt & Non
ENTERPRISE FUNDS Impact Impact Time Time Vacant Filled Admin Mgt.
Parking
Eliminate Police Overtime paid by Parking for "Clearing of Lanes, Easements and Alleyways
Right -of Way" (CLEAR) program $ (167,800) $ (167,800)_ _
Total Enterprise Fund $ (167,800) $ (167,800) - -
Grand Total $ (342,800) $ (342,800) - - - - - -
43
ATTACHMENT D - PROPOSED REVENUE ENHANCEMENTS
Cumulative
Fiscal Impact Department Cumulative
Impact Fund Impact
GENERAL FUND
Parks and Recreation
-•- _ - . - • 11a!! $ - $ -
Cumulative
Fiscal Impact Department Cumulative
Impact Fund Impact
ENTERPRISE FUNDS
Sanitation
15% and 25% $350,000 $0 $0
44
ATTACHMENT E - PROPOSED ADDITIONS AND SERVICE ENHANCEMENTS Cumulative Positions
Fund
Fiscal Impact Impact FT JT
GENERAL FUND
Potential Additions
Impact of FY 2011/12 Living Wage increase from $10.72 to $12.17 - subject to
Commission Approval - $365,159 Citywide Impact 54,266 54,266
Potential Enhancements
Police
Increase Police patrol on Washington Ave - two Police Officers will be assigned
form Thursday through Sunday from 11 p to 9a - includes purchacc of 1 golf cart 54,266
Code
--- - - -- - . _ - - - -- — -- .. ... 54,266
Enhance deployment flexibility for Code quality of Life Officers added as part -
time in FY 2010/11 by adding 2 vehicles, 2 ATVs, 4 Bicycles and 8 Laptops -
Bicycles and vehicles to be provided from other sources - computers to be
funded from Information and Communications Technology Fund 54,266
Parks and Recreation
Landscape Maintenance for South Pointe Phase 11 and Phases III -V ROW
projects coming on line (contracted) 159,000 213,266
Public Works
Increase Sustainability education and outreach for sustainability initiatives as per
FCWPC direction $40,000 - Funding to be provided from other sources 213,266
CIP
Enhance project supervision by adding 2 pool cars - offset by CIP chargebacks
to capital projects 41,400 254,666
Provide supplementary cost estimating and project support througoutside
contractual services - offset by CIP chargebacks to capital projects 34,500 289,166
PENDING
Enhance project performance tracking & scheduling measures by hiring an FURTHER
additional person - offset by CIP chargebacks to capital projects EVALUATION 289,166
REHCD
Enhance services to homeless individuals by adding 2 part-time case workers
assigned to provide homeless outreach services to the Entertainment District
from the hours 5pm to 12 am, Tuesdays thru Saturdays, and an OAII for intake.
The enhancement includes support equipment 89,492 378,658 3.0
Citywide
- - -- - - =- -- e "= -- - ----•--e •- -- 2-.2 - - - -
Rcsort Tax $40,000 378,658
Total $ 378,658 $ 378,658 - 3.01
45
Cumulative Total
INTERNAL SERVICE FUNDS Fiscal Impact Fund FT 'PT
Potential Additions
Impact of FY 2011/12 Living Wage increase from $10.72 to $12.17 - subject to
Commission Approval - $365,159 Citywide Impact _ 6,639 _ 6,639 _
Potential Enhancements
Property Management
Improve Beach Shower Drainage & Maintenance - $17,500 funded from RDA,
balance from General Fund $ 52,500 52,500
Conduct required 40 Year Building Re- Certification of City Building Required by
Miami -Dade Coun b outside contract sus sort 50,000 102,500
Total Internal Service Funds) $ 109,139 1 $ 109,139 1 - 1 -
Cumulative Total 1
ENTERPRISE FUNDS Fiscal Impact Fund FT IPT
Potential Additions
Impact of FY 2011 /12 Living Wage increase from $10.72 to $12.17 - subject to
Commission Approval - $365,159 Citywide Impact 283,754 283,754
Potential Enhancements
Sanitation
position $ -
positions $398,977 $ -
Water
Expand contracted call center use for Water and Parking - proposed to be
funded by Water and Parking - total cost of $75,000 $ 37,500 $ 37,500
Parking
Expand contracted call center use for Water and Parking - proposed to be
funded by Water and Parking - total cost of $75,000 $ 37,500 $ 37,500
Explore outsourcing of dispatch operations or add 4 part-time Dispatchers to
provide coverage for leave, etc. in lieu of using part-time Parking Enforcement
Specialists - offset by increased revenues from parking enforcement $ 128,123 $ 165,623 4.0
Outsource enhanced sanitation for Parking lots and garages $ 250,000 $ 415,623
Total Enterprise Funds $ 736,877 1 $ 736,877 1 - 1 4.0
Grand Total All City Funds $ 1,224,674 1 $1,224,674 - 1 7.0
46
Cumulative Total
RDA Fiscal Impact Fund FT I PT
Potential Additions
Impact of FY 2011/12 Living Wage increase from $10.72 to $12.17 - subject to
Commission Approval - $365,159 Citywide Impact 20,161 _ 20,161 _
Potential Enhancements
Soundscape Maintenance City Center (RDA) - Greenspace, Bathroom
Maintenance, Pressure Cleaning and Litter Control 159,072 $ 179,233
Soundspace Security/ Lincoln Road Service Enhancement (includes FY 2011/12
living wage increase) 159,997 $ 339,230
Additional ROW maintenance for CIP projects coming on line - including:
Washington Ave, All new side streets including : James, Lincoln, Lincoln Way. 90,000 $ 429,230
Improve Beach Shower Drainage & Maintenance - $17,500 funded from RDA,
balance from General Fund 17,500 $ 446,730
(Total RDA 1 $446,730 1 $ 446,730 1 - 1 -
47
EXHIBIT F
FY 2011/12 Proposed Citywide Work Plan
City of Miami Beach
Strategic Planning Priorities
VISION
Cleaner and Safer; Beautiful and Vibrant; a Unique Urban and Historic Environment, a Mature, Stable residential
Community with Well Improved Infrastructure; a Cultural, Entertainment and Tourism Capital and an International
Center for Innovation and Business; while Maximizing Value to our Community for the Tax Dollars Paid
o Key
.7 x Intended Existing Citywide Initiatives
Outcome
Increase • Look into converting some of overtime dollars into additional police officers
visibility of • Increase patrol on Washington Avenue
Police
Maintain • Develop system to provide timely information on types of crime by geographic segments of the community to
crime rates allow more timely tactical deployment in response to "hot spots"
at or below • Work with IT Department to complete implementation of CAD /RMS technology solution for Records
national Management
trends • Enhance security for Soundscape Park
ces Improve • Continue to coordinate with internal departments in efforts to continue dissemination of information (flyers,
cleanliness door hangers) regarding 1st Weekend of the Month/Neighborhood Pride program. Also, enhance coordination
of Miami with Home Owner's Associations (HOAs), volunteer organizations such as Hands on Miami Beach Day, etc.
Beach rights • Work with Code and Sanitation to develop performance measures for City Center RDA using GIS
a) of way • Increase level of service for heavily used parking lots and garages
U
especially in
P Y • Identify by District and cleanliness historical data sidewalks that fail the established targets and reallocate
business resources as needed
areas
Improve
cleanliness
of city
beaches
48
c Key
o
-x Intended Existing Citywide Initiatives
J Outcome:
Ensure • Enhance methods /systems available for Code tracking response times and follow -up
compliance • Revise Code policies and procedures manual
with code • Review and revise fine schedules in Chapter 30, using a consultant for the review /revision of Chapter 30
within of the City Code of Ordinances
reasonable • Explore scheduling altematives for special master meetings allowing for backlog if needed to minimize
time frame meeting length and overtime
• Enhance deployment flexibility for Code "quality of life" officers by adding laptops for part-time staff
Ensure safety
and
appearance of
building
c structures and
sites
° Maintain • Facilitate departments to improve measurement methodologies for public appearance- ROW /Parks
c Miami Beach Landscaping and garages
public areas & • Initiate landscape Maintenance of the South Pointe Phase II Project
rights of way • Initiate landscape Maintenance of South Pointe Phase III, IV & V Project
citywide • Initiate landscape maintenance for City Center ROW projects coming on line (Washington Ave and side
= streets — James, Lincoln and Lincoln Way)
• Provide maintenance for the new Soundscape Park
co
• Protect historic • Explore changes to the 40 -year recertification ordinance with Miami -Dade County
-2 building stock
Maintain strong • Expand previous development management initiatives — (e.g. expanded Planning Board review of
development threshold projects in residential districts)
o management • Work with CIP and other entities to implement recommendations of the North Beach Master Planning
:Cu
Strategy where feasible.
a Increase • Develop plan for teen club athletics using Scott Rakow
satisfaction • Develop Tennis Program for Tennis Courts Planned for Par 3
P
9
• with family • Implement Mobile APPS (Tee Times, Tennis, Facility Rentals, etc)
m recreational • Replace computers in North Shore Park computer lab
activities • Review Programming and Management Bandshell /Unidad
Improve the
lives of elderly
2 residents
a Enhance
learning • Pursue additional Federal Justice appropriation for After School program and Arts for learning
opportunities
for youth
Reduce the • Continue with Project Home Shore campaign targeting members of the faith community with information
number of and resources to empower them as outreach resources to the homeless, and secure non - govemmental
m homeless resources for homeless services.
• Expand homeless outreach services for weekend services
Increase • Explore transit opportunities with Miami -Dade Transit to connect affordable housing opportunities with
access to workplace destinations
workforce or • Develop marketing plan for affordable housing /, including advertising and providing media information
affordable regarding major accomplishments related to affordable housing and opportunities funded by the City
housing
Promote and
celebrate our
City's
diversity
49
a) Key
'N Y Intended Existing Citywide Initiatives
5. 3 Outcome:
Maximize • Develop infrastructure to ensure Miami Beach in the next 20 years as the "most mobility friendly" city, "most
Miami Beach aging population friendly: city, etc.
as a
Destination
a Brand
.15 Improve
m Convention • Develop, issue and award RFP for food and beverage concession at the Miami Beach Convention Center
Center facility • Hire a consultant through an RFQ to assist the City in finding private sector participation in the Convention
03 Center Expansion and Enhancement Project.
o
' Diversify • Work with State of Florida DCA on implementation of the Energy Economic Zone Pilot Program
c business • Identify potential Incentives that may facilitate industry diversification
— , base in Miami • Identify barriers to growth for the City's businesses that are in non - economic base industries
Beach
a)
v Improve • Continue FY2006/07 initiative to track reasons for building and fire rejections trough implementation of
c Building electronic plan review
Development • Provide Technical Training program for Plans Examiners and Inspection staff in their discipline
tII Related • Improve the dispute resolution process for building development permits
o Processes • Replace permitting system for building development process
- (New KIO) • Produce manual of policies and procedures for Building Department
• Implement customer service training for building development process
a
v • Eliminate the number of past due elevator inspections
E • Evaluate Community Rating System ratings
• Review and revise all building development process forms
• Develop Temporary Certificate of Occupancy(TCO)/ Partial Certificate of Occupancy PCO
guidelines /streamline process
• Prepare Information brochures for Building customers
• Implement signage throughout the department
• Explore functionality of current and future permitting software systems to determine if there is the possibility of
publishing on the website the location and status(workflow) of permit application
• Develop tracking for the number of times a supervisor has to over -rule inspectors for changes to plans work
w being directed in the field with Building Development Process Task Force in streamlining plan review processes
and validating performance targets
• Periodically hold public forum for customers to provide feedback on Building department services and
suggestions for improvement
• Evaluate Integration of Fire Prevention into building department activities /space with goal of improved customer
service
50
a)
o cz Key Intended Existing Citywide Initiatives
E Outcome:
Enhance • Implement comprehensive bike paths /recreation corridors/ and walkway plan for Miami Beach.
mobility • Pursue project authorization in the new federal Surface Transportation Authorization bill
throughout the • Work with housing authority on 17 site
City • Purchase and install bicycle parking racks
• Focus on long term transportation plans with the County using PTP dollars
• Work with County to identify how Intelligent Transportation Systems can be used in Miami Beach
• Implement a system for tracking the percent of traffic system that is heavily congested (LOS E or F)
• Enhance education and marketing programs informing residents about bicycle paths and bike lanes in Miami
Beach and promote bike friendly capital projects currently underway
• Evaluate /enhance education programs informing residents and visitors about bicycle paths throughout the
City
Improve • Continue to develop and implement marketing plan for parking and traffic, including identification of areas of
Parking underutilized capacity through measurement of garage capacity and in support of implementation of Citywide
Availability wayfinding signage plan
• Continue to pursue joint venture opportunities for North Beach Parking Facility
• Continue to evaluate opportunities to acquire land where possible for additional parking
• Add 53 parking spaces during and 88 spaces in as a result of projects in 69 Street and Harding Avenue, 41
Street and Royal Palm Avenue, and Ocean Dr. and 1 Street.
• Explore outsourcing of dispatch operations or add 4 part -time Dispatchers to provide coverage for leave, etc.
in lieu of using part-time Parking Enforcement Specialists - offset by increased revenues from parking
enforcement
Ensure value • Create and apply a standard close -out procedure to all CIP projects in order to assure proper transition to
and timely owner department
delivery of • Enhance existing database enhancements to produce additional project monitoring reports
quality • Evaluate & implement means to secure post - construction resident and business feedback for ROW projects to
2 capital determine satisfaction with project communication and project quality
projects • Implement intemal tools to manage projects
• Initiate construction of the following ROW projects that will improve roads and sidewalks in Biscayne Pt.,
CD
Bayshores A/B /C; Sunset Isl. 1 & 2; Ven. 1st; & City Center 9B
o • Institute a contractor Quality Assurance /Quality Control program that will serve to provide measures to gauge
a. the progress and successful completion of a project across various attributes.
• Produce graphical project scheduling and measurement tool
a) • Enhance project supervision by adding 2 cars
• Provide supplementary cost estimating and project support through outside contractual service
Note; the following initiative is still pending further evaluation
• Enhance performance tracking and scheduling by hiring an outside person
Ensure well- • Conduct 40 year recertification of City Buildings required by Miami -Dade County through the use of outside
maintained services
facilities • Pursue possible contracting out of maintenance staff for beach restrooms
• Continue ongoing remediation and monitoring activities at the Miami Beach and Normandy Shores Golf
Courses
• Improve beach shower drainage and maintenance
Maintain • Establish baseline values for water, sewer, and storm water pipes
City's • Complete assessment of streetlight poles /fixtures
infrastructure • Develop GIS monitoring map to manage pavement program
• Develop GIS baseline infrastructure maps that also reflect planned improvements over the next five years for:
roadways, sidewalks, seawalls, sewer, water, street lighting
Improve • Update Stormwater Master Plan
Storm • Develop GIS baseline storm water infrastructure map that also reflects planned improvements over the next
drainage five years
citywide • Increase Code Enforcement for Restaurant Drains
• Develop an implementation plan for the 2011 stormwater plan, pending approval by the City Commission
• Develop GIS baseline street lighting infrastructure that also reflects planned improvement over the next five
years
Preserve our • Continue federal lobbying to secure funding and sources of sand for beach re- nourishment
beaches • Monitor Beachfront Concessionaires permitted through a field monitoring schedule
51
o ca Key Intended
Outcome Existing Citywide Initiatives
Maximize • Implement Human Resources Workflow Processing Software
efficient delivery • Implement WiFi enabled parking options
of services/ • Implement LaserFiche digitizing of records in Planning
• Continue to explore other meter payment options
• Streamline special event permitting process & review bond requirements
• Work with OBPI to develop a program to assess effectiveness of Code Compliance enforcement efforts,
similar to Internal Audits' review of the parking enforcement efforts
• Develop and implement customer feedback mechanisms for Fleet Management services
• Create service level agreements with departments for preventive maintenance (oil changes) based on new
engine technology, improved synthetic fluids and manufacturers recommendation and track impact on fleet
expense
0 • Evaluate internal processes and cost effectiveness of decommissioning vehicles /equipment for auction
• Offer quarterly emergency management team section training
a • Implement high priority initiatives derived from the June 2011 emergency management table -top exercise after
action reports
• Prepare a resident re -entry plan for after emergency events
• Initiate partnerships with the business community to both encourage the creation of business continuity plans
and to better involve the business community in disaster mitigation, preparation, response and recovery
v, Control costs of • Work with State Attomey /Dade Chiefs to implement initiatives to reduce court overtime
payroll including • Pursue pilot implementation of weekend staffing schedule for Fire Fighters with additional staffing to reduce
E salary and overtime
F fringes/ Minimize • Assist and support the Mayor's pension reform efforts through the Budget Advisory Committee (BAC)
2 Taxes/ Ensure
expenditure • Continue implementation of Accident Awareness and Prevention program with HR, Risk and Police by
trends are initiating a process to monitor and verify licensing of driver & operators.
sustainable over • Develop accident review committee citywide similar to Police
the long term • Pursue use of pay cards for employees without automated deposits
• Continue to analyze layout of lifeguard stands and locations to evaluate needs based on utilization rates, time of'
day, etc, as well as explore altemate schedules, etc
• Implement recommendations of Code financial audit
Increase • Continue to work with OBPI to develop a mechanism for surveying customer satisfaction at Customer
community Service /Business Tax window.
satisfaction with • Replace Licensing module
City govemment • Expand Service Shopper to contracted operations and charge enterprise funds as appropriate
• Develop a process improvement plan to evaluate City processes on a regular basis
• Procure an outside contract to improve Quality Assurance /Quality Control and identify consistency issues in
the Fire Prevention Bureau
• Facilitate 2012 Community Satisfaction Survey
• Expand contracted call center for use by Water and Parking
• Coordinate between Finance, Planning, and OBPI to revise Certificate of Use fees to reflect full cost
52
o cs, Key
Intended Existing Citywide Initiatives
5. 3 Outcome:
Enhance the • Continue to pursue Green initiatives:
environmental • Fuel- efficient vehicles
sustainability of • Achieve LEED certification for the following City facilities moving into construction: Flamingo Park
the community Tennis Center, Sunset Harbor Parking Garage, Prop. Mgmt Facil., and 6th & 53rd St. restrooms.
• Seek opportunities to implement sustainable green initiatives in ROW projects
• Encourage County to provide information on residential recycling participation on a quarterly basis
• Increase education and outreach for sustainability initiatives
Enhance extemal • Update CIP Website to provide current Capital Program status and enable expanded communications
and internal with the Miami Beach community to address project related concerns and follow -up status.
communications • Partner with the North Beach commercial real estate industry and other interests to create a commercial
o from and within site directory.
th e City • Enhance information on City accomplishments
• Explore a civic pride campaign
• Include elected officials on current event programming
• Replace three Macintosh computers in Communications department to improve efficiency and capability
of departments editing of video
N • Upgrade cameras in Commission chamber
Expand e-
0
government • Complete on —line application for Calendar of Events
• Complete on —line application for Online Surveys
• Complete on —line application for Artist/Vendor and Street Performer and Non -Profit Vendor Lottery
Application
• Complete on —line application for Online Applications for Recreation
• Complete on —line application for Emergency Information Center
Q • Complete on —line application for Fast Track Permitting System
• Enhance intuitiveness of website
cn
• Continue to work with IT to develop Parking website with the ability to perform business transactions
online
• Create an On -line lottery applications
• Conduct IT charette to solicit input for potential mobile apps, online applications, etc.
• Implement mobile application to enable residents and business owners to report issues, such as potholes
and graffiti
• Implement Pretty Good Privacy (PGP) encryption solution to safeguard data and secure transmittal of
sensitive information via email
• Implement website satisfaction survey
• Explore phone apps that can be developed related to arts, tourism, etc.
• Transition to a paperless cultural grants application process
• Implement City works Mobile Inventory Management to improve efficiency of material and work order
management in the Public Works warehouse storeroom
53
a)
o ft Key Intended
c Outcome: Existing Citywide Initiatives
J
Improve process • Continue to work with IT to create a data base that is able to link information within the Dept and export to EDEN
through to eliminate duplicate data entry by both the Parking & Finance Dept
information • Summarize and track contract development
technology • Develop City Clerks records disposition log
• Upgrade Parks and Recreation software (Safari Recware)
• Implement Laserfiche Enterprise Upgrade
• Implement Symantec Enterprise Vault for Police network storage
• Automate service shopper data entry process
• Implement GPS tracking system for Building and Code vehicles
• Develop a Plan for the expansion of AVL devices and systems to all City vehicles and equipment
• Explore electronic filing of elections reporting
• Explore opportunities for providing additional online Parking services i.e. renewal and purchase of residential
permits, on- street and off - street parking, etc.
• Pursue grant funding for Net - Witness providing ability to investigate normal and abnormal events taking place on
the network
• Enhance oversight on the network/application for payment card industry data security adherence and monitoring
• Evaluate FY11 meter reading automation pilot to develop recommendations for phased implementation starting
FY13
• Evaluate thin client solution for further deployment Citywide
• Implement log management for Payment Card Industry (PCI) - Data Security Standard (DSS) Compliance
v • Repair conduits at Scott Rakow Youth Center, Fire Station 4, Police Norht End Sub Station and Fire Station 1
o • Replace Interactive Voice Response (IVR) system to reduce possibility of hardware failure and increase ability to
„, expand services
Improve the • Document Budget — Work Plan Development and Monitoring Procedures
City's overall • Evaluate amending ordinance to increase beachfront concession upland fees
financial health • Evaluate "no -cash acceptance policy" for outlying locations
and maintain • Evaluate business improvement districts
• overall bond • Implement process to continuous verify stormwater billings and review for missed ERUs
• rating • Pursue alternative revenue resources related to advertising or sponsorship opportunities (develop a product to
(r) market for profit, sponsorship on Cable TV, advertising on parking garage arms, sponsorship for ocean rescue
o and pool lifeguard uniforms, sponsorship for Police and Fire uniforms, official City map, Blue Tooth advertising,
a) parking garage striping and pillars advertising, parking ticket stub advertising, parking elevator advertising)
8 • Explore Neighborhood Establishment Impact Fee
• Include electric car charging stations in parking garages
0 • Explore Kiosk machines that also sell merchandise such as gift cards
c • Procure master meter map program
• Evaluate sponsorship on Cable TV
a • Prepare a Disaster Recovery Plan
• Prepare a Post Disaster Redevelopment Plan
Promote
transparency
of City
operations
Strengthen
Internal
controls
Attract and • Conduct training needs and satisfaction survey
Maintain a • Implement Company Store
Workforce of • Implement E -based learning program
Excellence • Develop on -line training modules for appropriate required and optional training modules
(New KIO) • Provide Code staff with additional customer service training
• Conduct an annual analysis reflecting the wage growth from the 2008 Classification Study
• Establish an employee web portal to improve dissemination of emergency management information to City
employees
54