LTC 210-2013 Analysis of Budget to Actual Revenues and Expenses ending March 31, 2013 IM MIAMI BEACH RE ( FJVFn
OFFICE OF THE CITY MANAGER 2013 JUN I I P11 1' 2 1
NO. LTC #' 211 0-2013 LE R cT&C0MMIt�I6N
TO: Mayor Matti Herrera Bower and M mbers of City Commission
FROM: Jimmy Morales, City Manager
DATE: June 17, 2013
SUBJECT: ANALYSIS OF BUDGET TO A UAL REVENUES AND EXPENSES FOR THE SIX
MONTHS ENDING MARCH 31, 013, WITH OPERATING BUDGET PROJECTIONS
THROUGH SEPTEMBER 30, 2013
The purpose of this LTC is to provide the Mayor and Commission with the status of the FY
2012/13 budget and a comparison of actual revenue and expenses reflected at the end of the
second quarter with projections through September 30, 2013.
At this stage of projecting the fiscal year end, there are issues still to be determined. The first 6
months of any fiscal year do not provide a definitive indication of where we will be at the end of
the year. However, with six full months of data we have an idea of what the issues are. Certain
assumptions on both revenue and expenditures were made that are still developing and will be
adjusted in later projections. Those assumptions, as well as our continued effort at managing
the City's expenditures, will affect our projections going forward.
The FY 2011/12 year-end budget amendment adopted by the City Commission in November,
2012, identified approximately $1.4 million in encumbrances and set asides for projects
budgeted in FY 2011/12 that will instead be spent in FY 2012/13. The FY 2012/13 budget
amendment adopted in April, 2013 reflected the carry forward of these unspent funds.
Accordingly, the projections presented below are compared to the April budget amendment.
GENERALFUND
Upon review, it is projected that the General Fund expenditures will exceed revenues by
approximately $2 million, an improvement from the first quarter projection of a $3.75 million
shortfall.
Both the first and second quarter shortfalls are driven by employee givebacks that have not
been achieved to date, particularly in the Fraternal Order of Police (FOP) and the International
Federation of Fire Fighters (IAFF) bargaining units, as well as accumulated leave payouts
related to the previously negotiated changes in the Fire and Police Pension Plan that amended
the timeframe for eligibility to purchase prior creditable service. However, the second quarter
projection reflects improvement due to salary savings in part due to several high-level positions
that were held vacant pending my appointment, as well as the savings resulting from unspent
contingency.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 2 of 13
General Fund Overview
An analysis of the actual six-month operating revenues and expenditures for the period
October 1, 2012 through March 31, 2013, reveals an operating budget surplus of $60.1 million.
While the surplus as of March 31s' seems unusual as compared to the projection for the fiscal
year ending on September 30th, it should be noted that the City receives a greater percentage
of ad valorem taxes during the first two quarters, (historically 80 percent). Ad valorem tax
revenues represent approximately 45 percent of total budgeted revenues and represent 59
percent of the revenues received in the first two quarters of the fiscal year.
As of March 31, 2013, total General Fund revenues collected were approximately 61 percent of
the amended budget or $156.4 million. This year, 81 percent of the budgeted property tax
revenue was received in the first two quarters, as compared to the historical level of 80 percent
as noted above. The remaining 55 percent of revenues are at approximately 33 percent of the
adopted budget as of March 31, 2013, as compared to approximately 45 percent in prior years.
This is primarily due to interest earning revenues which are reflected as negative $0.8 million
for the first six months. This is due to an accounting reversal of "Unrealized Gains on
Investments" which was accounted for at the end of FY 2011/12. This is a non-cash impact,
and, if the City's investment status is similar at the end of FY 2012/13 as it was in FY 2011/12,
there will be a similar offsetting accounting entry for a net gain/loss of $0 at year-end. In
addition, the actuals do not reflect the budgeted use of prior year carryover. If revenues are
adjusted for these items, actuals would be 47 percent of budget
Expenditures are approximately 37 percent of the FY 2012/13 adopted budget, lower than in
prior years; however, there are often delays in expenditures in the first half of the fiscal year.
FY 2012/13 Budget
Variance from 1/4
Amended Budget 1/4 of Amended Amended Budget
General Fund 2013 Budget Actual as of 3/31/13 Over/(Under)
Revenues $ 257,670,000 $ 64,417,500 $ 156,352,336 $ 91,934,836
Expenditures $ 257,670,000 $ 64,417,500 $ 96,248,752 $ 31,831,252
Surplus/(Deficit) $ - $ - $ 60,103,584 $ 60,103,584
General Fund Year-End Projections
The projected year-end operating revenues and expenditures through September 30, 2013,
provide a more realistic snapshot of anticipated year-end shortfalls or surpluses at this point in
time. Further, while the actual revenues and expenditures presented are as of March 31, 2013,
some of the projections have incorporated more recent information, if available.
A summary of preliminary projected General Fund Revenues and Expenditures as of
September 30, 2013, is as follows and reflects revenues short of expenditures by
approximately $1.4 million if no additional contingency is spent for the remainder of the year,
and $1.8 million, as explained above, assuming that half of the budgeted contingency is fully
expended over the remaining half of the fiscal year.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 3 of 13
FY 2012/13 Budget
Variance
Amended Budget Projected/
2012/13(April Amended
General Fund Amendment) Projected Budget
Revenues $ 257,670,000 $ 258,702,000 $ 1,032,000
Expenditures` 257,670,000 260,049,000 2,379,000
Surplus/(Deficit) $ - $ (1,347,000) $ (1,347,000)
Operating Contingency $ 475,000 475,000
Net surplus(Deficit) $ (1,822,000) $ (1,822,000)
Prior to Expenditure of Operating Contingency
Status of Employee Givebacks
The FY 2012/13 General Fund budget includes nearly $3 million of General Fund employee
givebacks. At the time of budget development, the $3 million in employee givebacks were
allocated across all salary groups proportionate to salaries. Subsequently targets were
developed for each salary group proportionate to each group's share of the City's total pension
and health costs, since these have been the major cost drivers of personnel costs in recent
years. The initial budget assumed merit and step increases for all seven (7) salary groups.
However, it was anticipated that a large share of the employee givebacks for FY 2012/13 would
be achieved through negotiating merit and step freezes, adherence to the Fair Labor
Standards Act (FLSA) for the purposes of calculating overtime, as well as a reduction or
elimination of various "extra" pays for those employees covered by the FOP and the IAFF.
The reality is that employees covered by the FOP and the IAFF have not experienced a freeze
in their step increases in the last four (4) years, while the American Federation of State, County
and Municipal Employees (AFSCME) and the Government Supervisors Association of Florida
(GSAF) experienced a freeze on merit increases for two (2) years. Merits for employees
covered by GSAF were reinstated effective October 1, 2012 and merits for employees covered
by AFSCME have been reinstated effective April 1, 2013; however, the maximum merit
increase was reduced from four percent to two percent once reinstated. In comparison, this is
the third year of no merit increases for employees covered by the Communication Workers
Association (CWA) as it is a "status quo" provision in the CWA collective bargaining
agreement. Furthermore, this is the fourth straight year that employees in the "Unclassified"
and "Other' salary groups have not received any merit increases. These assumptions are
utilized for the projections throughout the remainder of the fiscal year.
The chart below provides a summary of the budgeted employee givebacks by salary group, the
target employee givebacks by salary group and the employee givebacks achieved to date,
while assuming that there are no changes in any of the collective bargaining agreements
throughout the remainder of the fiscal year.
i
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 4 of 13
General Fund
General Fund Givebacks
Budgeted Achieved-- Difference from
SALARY GROUP Target Givebacks current status Budget
AFSCME $ 322,000 $ 119,000 $ - $ (119,000)
CWA $ 417,000 $ 291,000 $ 183,000 $ (108,000)
FOP $ 1,396,000 $ 1,342,000 $ - $ (1,342,000)
GSA $ 74,000 $ 32,000 $ $ (32,000)
IAFF $ 900,000 $ 900,000 $ $ (900,000)
Unclassified/Others $ 673,000 $ 499,000 $ 735,000 $ 236,000
Total $ 3,782,000 $ 3,183,000 $ 918,000 $ (2,265,000)
In addition, other savings have been achieved by senior management positions being held
vacant in anticipation of the hiring of a new City Manager. However, both of the budgets for the
Fire Department and Police Department are forecasted to be over budget by $0.7 million and
$1.4 million, respectively.
Accumulated Leave
The accumulated leave payout budget for FY 2012/13 is $1.9 million and was developed based
on experience in the prior year. Expenditures are projected to be $6.4 million, a difference of
$4.5 million. The most significant portion of this increase was due to an increase in leave used
for Fire and Police pension buybacks.
As explained in the FY 2011/12 year-end agenda item and the first quarter LTC, this is
primarily driven by the 2010 Fire and Police Pension Plan changes that became effective on
June 27, 2012, with the Third District Court of Appeal's unanimous decision that the collective
bargaining process set out in the Public Employee Relations Act is the final word on
implementing the collective bargaining rights guaranteed by the Florida Constitution. Included
in the negotiated pension changes was the ability for a member to exercise their right to buy
back prior creditable service upon vesting (ten years of service) compared to the previous
pension benefit that provided the ability for a member to buy back prior creditable service upon
twenty years of creditable service with the City.
The 225 members that had ten or more years of creditable pension service time as of
September 30, 2010, were notified that they have until September 30, 2013, to exercise their
right to purchase these buybacks. As a result, there continues to be an influx of members who
are exercising this right and purchasing creditable pension service time following the Third
District Court of Appeal's decision. The members have until September 30, 2013, to elect this
option. The buyback payouts through March 31, 2013, totaled $2.2 million. Based on eligibility
to elect this payout, an additional $4.2 million is projected before the September 30, 2013,
deadline. Given the potential for additional purchases in FY 2012/13, we will continue to closely
monitor this over the remainder of year, but thereafter anticipate this to decline to prior year
levels.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 5 of 13
Medical Insurance
It is important to note that as of the second quarter projection, no additional transfers are
projected to the health self-insurance plan.
As of September 2012, the City's benefits consultant, Gallagher Benefit Services, projected a
loss for FY 2012/13, with a 12 percent premium increase, of $309,000. The City's budget for
FY 2012/13 assumed a 10 percent increase in the City's share of premium costs. However,
premium increases for FY 2012/13 were subsequently deferred pending review of the entire
health plan structure by the City's Budget Advisory Committee.
Fortunately, plan expenditures declined significantly during the first quarter of FY 2012/13 as
compared to the first quarter of FY 2011/12, and, in fact, claim expenditure per plan member
for calendar year 2012 declined overall by 9 percent as compared to calendar year 2011. This
trend has continued through the second quarter, with FY 2012/13 YTD claims declining by 13.5
percent to date as compared to FY 2011/12. As of April 2013, Gallagher Benefit Services is
projecting premiums slightly in excess of claims for FY 2012/13 if no premium increases are
implemented.
General Fund Operating Revenues
For a detail of General Fund Revenues by category, see attached Schedule A.
At this time, we are projecting property tax collections for FY 2012/13 at 95 percent of total
property taxes assessed and consistent with the original adopted budget, thereby allowing
adjustments for discounts, as well as a level of adjustments due to appeals similar to long-term
historical levels. It is important to note that, in the last two (2) years, property tax collections
have been significantly below prior year levels due to higher levels of appeals and adjustments.
The impact of appeals and adjustments for the FY 2012/13 budget will be provided by the
Miami-Dade County Property Appraiser in July.
Overall revenues are projected to be approximately $1 million above the amended budget,
similar to the first quarter projection. However Building Development Process Fee revenues
(Licenses and Permits), are projected to exceed the budget by approximately $2.1 million
(almost 11 percent). This increase is projected to be offset by significant declines in Interest
Earnings and Communications tax revenues, a continuing trend in recent years.
As in prior years, significant variances to budget in excess of $300,000 or 10 percent by
revenue category are explained below:
Licenses and Permits — This category includes business tax receipts, licenses/
building/special use permits, and sidewalk cafe fee revenues and is projected to be in
excess of budget by $2.1 million (11 percent above the amended budget) primarily due to
increases in Building Development Process Revenues, reflecting continuing improvement
in the economy.
Interest Earnings — This category is projected to be in below budget by $0.5 million
(approximately 18 percent below the amended budget).
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 6 of 13
General Fund Operating Expenditures
As of March 31, 2013, actual expenditures were approximately 37 percent of budget or $60
million. Year-end projections through September 30, 2013, indicate that expenditures will be
$260 million, approximately $2.9 million (1 percent) over the amended budget, assuming that
three quarters of the contingency is spent over the remaining three quarters of the year.
Citywide Accounts are projected to be above budget by approximately $3.9 million due to
leave liability payouts (driven by an influx of Fire and Police Pension Plan buybacks) projected
to be above budget by approximately $4.5 million, as explained above. This is offset by small
savings in various accounts.
A comparison of actual and projected expenditures to budget by Department is provided in
Schedule A. The other major drivers of expenditures above budget are the Fire and Police
departments, as explained previously. However, as in prior years, Departments with significant
variances to budget in excess of$300,000 or 10 percent are explained below:
Office and Budget and Performance Improvement (OBPI) — In part due to the
additional employee givebacks from Unclassified employees as explained above, but also
due to a number of vacancies, including the Director, the OBPI is projected to be
approximately $287,000 below the amended budget (approximately 13 percent).
Amended Variance
Budget 2012/13 Projected/
(April Amended
OBPI Amendment) Projected Budget
Expenditures 2,160,000 1,873,000 (287,000)
Real Estate Housing and Community Development (REHCD) — In part due to the
additional employee givebacks from Unclassified employees as explained above, REHCD
is projected to be approximately $209,000 below the amended budget (approximately 20
percent).
Amended Variance
Budget 2012/13 Projected/
(April Amended
REHCD Amendment) Projected Budget
Expenditures 1,048,000 839,000 (209,000)
Planning — In part due to the additional employee givebacks from Unclassified employees
as explained above, but also due to a number of vacancies, including the Planning
Director, the Planning Department is projected to be approximately $398,000 below
budget (approximately 12 percent).
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 7 of 13
Variance
Amended Budget Projected/
2012/13(April Amended
Planning Amendment) Projected Budget
Expenditures 3,419,000 3,021,000 (398,000)
Fire -The Fire Department is projected to be approximately $700,000 above the amended
budget (approximately one (1) percent above the amended budget). In addition to the $1
million in budgeted employee givebacks that have not been achieved to date, overtime is
projected to be $196,000 over budget. Overtime is projected to be above budget in Ocean
Rescue by $282,000 due to difficulties in hiring temporary and part-time positions, while
the remainder of the Department is projected to be under budget. It is important to note
that while the additional three (3) Firefighters hired as part of a pilot program to reduce
weekend overtime have yet to be deployed on a weekend specific shift, the overtime is
reduced in part due to the fact that the Department hired additional positions for the last
class in anticipation of Fire Department employees that will be separating from the City
this year. An LTC regarding projected overtime in the Fire Department for FY 2012/13 will
be provided under separate cover.
Amendeded Variance
Budget 2012/13 Projected/
(April Amended
Fire Amendment) Projected Budget
Expenditures 62,263,000 62,963,000 700,000
Police — The Police Department is projected to be approximately $1,410,000 above the
amended budget (approximately 2 percent above the amended budget). In addition to the
$1.4 million in budgeted employee givebacks that have not been achieved to date,
overtime is projected to be $537,000 over budget as shown on Schedule B. The primary
driver represented on Schedule B for the overtime above budget is identified as
"manpower shortage". The Department has been working to significantly reduce the
number of vacancies during the current fiscal year and continues to deploy newly-hired
officers as they complete their post-academy orientation and field training required for all
new officers. The Police Chief is aware of the projection and has been instructed to take
the necessary actions to ensure that overtime is brought closer in line with budget.
Proposed Variance
Amended Budget Projected/
2012/13(April Amended
Police Amendment) Projected Budget
Expenditures 94,970,000 96,380,000 1,410,000
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 8 of 13
ENTERPRISE FUNDS
The City accounts for proprietary operations in Enterprise Funds. Convention Center, Parking,
Sanitation, Sewer, Stormwater, and Water are included in this grouping. The expenditures for
these funds are budgeted to be fully offset by charges for services.
An analysis of the actual six-month operating expenditures for the period October 1, 2012
through March 31, 2013, reveals that all funds except Sewer and Convention Center have
expenditures less than one-half of their budget. However, this is not representative, as there is
often a lag in expenditures, particularly related to those billed by outside entities. Sewer has
expenditures in the first six months in excess of one-half of their budget, primarily as 78
percent of the annual debt service payment was incurred in the half.
I Convention
ENTERPRISE FUNDS J Sanitation I Sewer Stormwater Water Parking Center
Budget Amendment(April 2013) I 17,328,000 37,730,000 11,984,000 34,684,000 47,702,000 12,702,000
1/2 Amended Budget 8,664,000 I 18,865,000 5,992,000 17,342,000�23,8 51,000 6,351,000
Expenditures as of 3/31/13 6,494,150 19,196,221 5,807,608 I 14,274,118 , 18,502,710 7,010,245
I
Expenditure Above/(below) 1/2 of
Amended Budget (2,169,850) 331,221 I (184,392) (3,067,882) (5,348,290) 659,245
The projected year-end operating revenues and expenditures through September 30, 2013, is,
however, a more realistic snapshot of anticipated surplus or shortfall at this point in time. In
P P P P
addition, while the actual revenues and expenditures presented are as of March 31, 2013, the
projections have incorporated more recent information, as available.
As represented below, for all funds, revenues are projected to be equivalent or in excess of
expenditures. Further, while Convention Center is projected to be over budget, this is primarily
due to expenditures related to the Convention Center Development project, some of which may
be reimbursed by the Miami-Dade County General Obligation Bond.
The Convention Center is projected to have a shortfall of approximately. $0.4 million and be
over budget by approximately $0.8 million. This is primarily due to an increase in the number of
events, which is offset by revenues being projected over budget. In addition, electrical
expenditures are projected to be above budget, indicating that budgeted savings from the
Amaresco energy savings initiative are not being realized. This is partially offset by increased
revenues. Public Works Department staff has been directed to work with Amaresco to address
this issue.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 9 of 13
Convention
Sanitation Sewer Stormwater Water Parking Center
REVENUES
Projected Revenues
Charges for Service $ 12,308,000 $ 35,552,000 $ 11,619,000 $ 32,267,000 1 36,598,000 9,155,000
Other $ 4,780,760 $ 3,470,000 782,000 $ 2,478,000 $ 11,481,000 5,750,000
Total Projection $ 17,088,760 $ 39,022,000 $ 12,401,000 l $ 34,745,000 $ 48,079,000 $14,905,000
EXPENDITURES
Projected Expenditures $ 17,082,227 I $ 37,431,000 $ 11,748,000 l $ 31,792,000 $47,095,300 $13,542,000
Surplus/(Shortfall) $ 6,533 $ 1,591,000 $ 653,000 I $ 2,953,000 $ 983,700 $ 1,363,000
Variance from Expenditure Amended
Budget 1 $ (245,773)1 $ (299,000), $ (236,000) $ (2,892,000)1 $ (606,700) $ 840,000
In addition, despite expenditures being close to budget, Parking is anticipated to have a
surplus of $1 million due to increased revenues. Together with the $4.8 million budgeted to be
used to increase reserves, this should provide year-end available cash balance funding
towards the annual transfer of $7.2 million to the General Fund in FY 2013/14, the same level
as budgeted for FY 2012/13.
INTERNAL SERVICE FUNDS
The City accounts for those goods and services provided by one Department to other
Departments citywide on a cost reimbursement basis. Central Services, Fleet Management,
Information Technology, Property Management, and Risk Management (Self Insurance) are
included in this grouping.
An analysis of the actual six-month operating expenditures for the period October 1, 2012
through March 31, 2013, reveals that all funds have expenditures less than one-half of the
Amended Budget, except Central Services which is slightly above budget. However, as with
Enterprise Funds, this is not representative since there is often a lag in expenditures,
particularly related to those billed by outside entities. In Risk Management, there is a significant
lag in expenditure.
CENTRAL INFORMATION PROPERTY
INTERNAL SERVICE FUNDS SERVICES FLEET MGT TECHNOLOGY MGT RISKMGT
Adopted Budget $ 906,000 1 $ 9,700,000 $ 16,366,000 $ 8,862,000 $ 23,494,000
Amended Budget(April 2013) $ 906,000 $ 9,723,000 $ 16,656,000 $ 9,004,000 $ 23,500,000
1/2 of Amended Budget $ 453,000 $ 4,861,500 $ 8,328,000 $ 4,502,000 $ 11,750,000
Expenditures as of 3131113 $ 465,612 $ 2,836,348 $ 6,026,638 $ 3,124,712 1 $ 9,045,695
Expenditure Above/(Below)112 of
Amended Budget 1 $ 12,612 $ (2,025,152) $ (2,301,362) $ (1,377,288) $ (2,704,305)
Based on the more realistic projection of year-end operating revenues and expenditures
through September 30, 2013, and incorporating more recent information as available, all
Internal Service Funds, are expected to have revenues equal to or in excess of expenditures
and be within budget.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 10 of 13
CENTRAL I INFORMATION i PROPERTY
SERVICES FLEET MGT TECHNOLOGY MGT RISKMGT
REVENUES
Projected Revenues
Charges for Service 1,098,740 9,205,000 14,604,000 I 8,554,000 23,166,000
other 2,260 486,000 ; 1,939,000 292,000 171,000
Total Projected Revenues i $ 1,101,000 I $ 9,691,000 $ 16,543,000 $ 8,846,000 $ 23,337,000
I
EXPENDITURES
Projected Expenditures $ 906,000 $ 9,542,000 ! $ 16,493,000 $ 8,846,000 i $ 23,285,000
Surplus/(Shortfall) $ 195,000 $ 149,000 I $ 50,000 I $ - I $ 52,000
Variance from Expenditure Amended
Budget I $ I $ (181,000)] $ (163,000)1 $ (158,000)1 $ (215,000)
RESORT TAX FUND
The City's Resort Tax Fund is primarily supported by Resort Taxes collected pursuant to
Chapter 67-930 (Section 6) of the Laws of Florida, as amended, and Section 5.03 of the City of
Miami Beach Charter, as amended. This legislation authorizes the use of Resort Taxes for the
promotion of the tourist industry, which includes, but is not restricted to the following: Publicity,
advertising, news bureau, promotional events, convention bureau activities, capital
improvements and the maintenance of all physical assets in connection therewith; and for the
payment of the reasonable and necessary expenses of collecting, handling and processing of
said tax.
Typically, the City has considered the following services as "Services Related to the Promotion
of Tourism":
• Police Officers serving entertainment areas
• A portion of Fire Rescue services from Fire Stations 1&2
• Ocean Rescue services
• Sidewalk pressure cleaning in South, Middle and North Beach visitor areas
• South Beach sanitation
• Enhanced Code Compliance/Enforcement provided to respond to evening
entertainment area violations and staffing of special events
• Other Code Compliance/Enforcement activities in tourism and visitor related
facilities/areas
• Tourism and Cultural Development Department and the Cultural Arts Council
• Museums and Theatres (Garden Center, Bass Museum, Colony and Byron Carlyle
Theatres)
• Golf courses (net of revenues)
• Memorial Day and other special event costs
• Homeless services
• July 4th, Visitor Center funding, Holiday Lights, Festival of the Arts, Jewish Museum,
MDPL, Orange Bowl, Monuments, etc.
These allowable uses have led to increased tourism related activities, such as special events,
Art Basel, and various concerts.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 11 of 13
The 2 percent Resort Tax Fund operating revenues are projected to be in excess of budget by
approximately $2.1 million and, as a result, payments to the Visitor's Convention Authority
(VCA), which are based on a percent of revenues, are projected to exceed budget. In addition,
savings are projected in salaries due to staff turnover and the use of contingency is projected
to be below budget.
In addition to the uses listed above, the proceeds of the additional one percent (1 percent) tax
are used as follows: Fifty percent of the amount earned is committed to the payment of a
portion of the debt service on the Miami Beach Redevelopment Agency City Center Bonds.
The remaining fifty percent is allocated equally among North Beach, Middle Beach and South
Beach for capital projects that enhance Miami Beach's tourist related areas and various arts
and cultural programs. The 1 percent Resort Tax Fund operating revenues are projected to be
in excess of budget by approximately $1.4 million and, as a result, the debt service and
transfers to North Beach, Middle Beach, and South Beach for capital projects and the transfers
to the arts and cultural programs are projected to exceed budget as represented below.
In total, the projected revenues are estimated to be in excess of budget by $3.5 million and
expenditures in excess of budget by approximately $1.2 million for the reasons described
above. This results in a net operating surplus of approximately $2.3 million for the 1 percent
and 2 percent Resort Tax revenues and expenditures, combined.
RESORT TAX FUND
I I
i
FY 2012/13 FY 2012/13 FY 2012/13 3/31/13 FY 2012/13
Revenues Adopted Budget Amendment! Amended Actual Projection I Over/(Under)
2% Resort Tax $ 44,132,000 _ $ 44,132,000 $20,362,890 $ 46,259,000 $ 2,127,000
1% Resort Tax 9,368,000 _ 9,368,000 F 4,939,848 10,773,000 1,405,000
Other Rewnues 754,000 T 754,000 669,352 724,000 (30,000)
Total Revenue I$ 54,254,000 1 $ 0 $ 54,254,000 $ 25,972,090 I $ 57,755,000 I $ 3,502,000
Expenditures I I
General Fund Contribution $ 30,965,000 $ 30,965,000 $15,482,500 $ 30,965,000 $ 0
Other Operating/Other Uses 1 4,548,079 4,548,079 577,438 4,489,000 (59,079)
Contributions to VCA and GMCVB 7,427,361 7,427,361 5,420,762 7,530,000 102,639
Marketing 248,000 248,000 _ 2,932 248,000 ;' 0
Contingency 482,241 482,241 0 242,000 (240,241)
2% Debt Sendce 1,215,319 _— 1,215,319 0 1,216,000 I 681
1% Debt Service 4,684,000 _ 4,684,000 2,469,924 5,387,000 I 703,000
Transfer to Capital and the Arts(1%) , 4,684,000 1 2,469,924 5,387,000 I 703,000
Total Expenditure I$ 54,254,000 1 $ 0 ! $ 54,254,000 1 $ 26,423,480 1 $ 55,464,000 1 $ 1,210,000
I I I I
Surplus/(Deficit) I$ (0)1 $ 0 1$ (0)1 $ (451,390)1 $ 2,292,000 1 $ 2,292,000
CONCLUSION
This analysis of budget to actual operating revenues and expenses with projections through
September 30, 2013, provides the status of the FY 2012/13 Adopted Budget for the first six
months of the fiscal year. The Administration will continue to monitor revenues and expenses,
as well as, the progress of contract negotiations with the City's five (5) collective bargaining
units throughout the fiscal year and resulting impacts on the FY 2012/13 budget.
I
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 12 of 13
SCHEDULE A
CITY OF MIAMI BEACH
FY 2012/13 GENERAL FUND PROJECTIONS
- - puarter2 -- -- -
Ova r/
%Actual (Under) %Over/
FY 2012113 FY 2012113 of FYI FY 2012113 Amended (Under)
Adopted Amended Actuals as of Amended Projection as of Budget As of Amended
Budget Budget Mar.31,2013 Budget Quarter 2 Quarter 2 Budget
REVENUES I I 1 1 1 1 1
Ad Valorem Taxes $ 102,171,000 $ 102,171,000 $ 82,728,552 81% $ 102,171,000 0 0.0%
Ad Valorem Taxes-S Pte Costs 10,296,000 10,296,000 8,336,741 81%_10,29_6,000 0 _ 0.0%
Ad Valorem Cap.Renewal&Replace. _ 1,850,000_ 1_,850,000 _ 1_,497,958 _ 81%_ 1,850,000 0 0.0%
Ad Valorem Taxes-Norm Shores 129,000 129,000 104,452 81%_ 129,000 0 0.0%
Other Taxes _ _ 24,023,000 _24,023,000 7,827,492 33%_ _23,459,000 (564,000) _-2.3%
Licenses and Permits 20,033,000 20,033,000 13,564,812 68% 22,169,575 _2,136,575 10.7%
Intergovemmental 9,827,000 9,827,000 4,165,227 42% 9,904,000 77,000 0.8%
Charges for Services 4,689,000 _ 4,689,000 _ 2,162,521 __46% _ 4,721,500 32,500 0.7%
Golf Courses 5,979,000 5,979,000 _ 3,313,322 55% -5,856,000 (123,000) -2.1%
Fines and Forfeits 2,199,000 _ 2,199,000 1,340,503 61% 2,344,800 145,800 6.6%
Interest 2,983,000 2,983,000 1,259,121 42% 2,459,000 (524,000) -17.6%
Unrealized Gains/(Losses)-Investment _ __0__ 0 (2,095,968)_ 0% - 0 0.0%
Rents and Leases 6,464,000 _ 6,464,000 4,404,450 68% 6,374,628 _ (89,372) -1.4%
Miscellaneous 9,620,000 9,620,000 4,119,469 43%_ 9,560,640 (59,360) -0.6%
Other-Resort Tax contribution __ 30,965,000 30,965,000 _ 15,482,500 50%__30,965,000 _ _0_ 0.0%
Other-Non Operating revenues 10,742,000 _10,742,000 _4,266,184 40% 10,742,000 0 0.0%
Reserve-Building Department Ops. _ 1,500,000 _ 1,500,000 0 0%_ 1,500,000 0 0.0%
Prior Year-End Carryover 3,400,000 4,790,000 0 0% 4,790,000 0 0.0/
Pdor Yr Surplus from Parking OperI'd 7,200,000 7,200,000 3,875,000 54% _ 7,200,000 0 0.0%
Prior Yr Set Aside for Pension Credit 2,210,000 2,210,000 0 0% 2,21,000 01 0.0%
TOTAL REVENUES $ 256,280,000 $ 257,670,000 $ 156,352,336 61% $ 258,702,143 $ 1,032,143 1 0.4%
Unrealized Gains/(Losses}Investment I 2,095,967.80 1 1 ! 1 1
Total Net of Unrealized Gains/(Losses) $ 256,280,000 $ 257,670,000 1$ 158,448,303 1 61% $ 258,702,143 $ 1,032,143 1 0.4%
EXPENDITURES I I I I
Mayor and Commission 1,648,000 1,648,000 _ 699,831 _ 42% 1,641,000 (7,000) -0.42%
City Manager 2,313,000 2,745,000 1,244,000 45% 2,682,000_ (63,000) -2.30%
Communications __ 893,000__ 893,000 341,612 38% 845,000 _ (48,000) 5.38%
City Clerk 1,505,000 1,505,000 529,529 35% _1,403,000 (102,000) -6.78%
Finance 4,426,000 4,426,000 1,509,283 34% 4,344,000 _(82,000) -1.9%
Office of Budget&Pert Improve. _2,160,000 2,160,000 700,774 32% 1,873,000 (287,000) -13.3%
Human Resources/Labor Relations 1,827,000 _ 1,827,000 _ 637,517 35% 1,661,000_ _(166,000) -9.1%
Procurement 1,063,000 1,068,000 432,385 40% 998,000 _ (70,000) 5.6%
City Attorney 4,318,000 _ 4,318,000 1,824,181 42% 4,450,000 _ 132,000 3.1%
Real Estate,Housing&Comm Dev 1,048,000 1,048,000 337,276 32% 839,000 (209,000) -19.9%
Community Services _ 460,000 460,000 187,269 41% 491,000 31,000 6.7%
Homeless Services 990,000 _ 990,000 _ 3_74,564 _38% 1,002,000 12,000 1.2%
Building 10,985,000 11,072,000 4,368,740 399X. _1,896,000 (176,000) -1.6%
Code Compliance 4,647,000_ _4,647,000 1,787,891 _ 38%_ 4,422,00_0 _(225,000) -4.8%
Planning 3,419,000 _ _3,41_ 83
9,000 _ 1,214,614 36% _ 3,0_21,000 (398,000) -11.6%
Tourism&Cultural Development 2,503,000 2,503,000 768, 9_ 31% 2,395,000 (108,000) -4.3
Parks and Recreation __22,153,000 2.2,179,000 8,660,371 39%_ 22,064,000 _(115,000) -0.5%
Golf Courses 6,619,000 _ 6,619,000 3,179,382 48%_ 6,424,000 (195,000) -2.9%
Public Works _6,548,000 6,688,000 2,607,941 39% 6,500,000 _(188,000) -2.8%
Capital Improvement Program 4,841,000 _4,858,000 1,580,315 33%_ 4,478,000 (380,000) -7.8%
Fire 62,242,000 62,263,000 20,997,306 34%_ 62,963,000 700,000 1.1%
Police 94,963,000 94_,970,000 36,433,085 38% 96,380,000 1,410,000 1.5%
Citywide Accounts 8,817,535 _ 9,467,535 5,809,807 61% 13,372,000 3,904,465 41.2%
Citywide Acc-Operating Contingency _ 1,000,000_ 1,000,000 _0_ 0% (1,000,000) -100.0%
Citywide Accounts-Normandy Shore 187,292 187,292 0 0616 196,000 8,708 4.69/.
Citywide Accounts-Transfers 2,014,173 2,019,173 _ 22,240 1% 2,019,000 (173) 0.0%
Reserve-Future Budget Shortfalls 831,000 831,000 0 0 831,000 0 0.0%
Capital Renewal&Replacement 1,859,000 1,859,000 0 0% 1,859,000 0 0.0%
Reserve-Canyforward Pension Credit Surplus - 0 0% - 01 0.0%
TOTAL EXPENDITURES $ 256,280,000 $ 257,670,000 $ 96,248,752 37% $ 260,049,000 $ 2,379,000 0.9%
EXCESS OF REVENUES OVER/ _ __
(UNDER)EXPENDITURES $ (0) $ 0 $ 62,199,552 11$ (1,346,857) $(1,346,858)
I I i I
Citywide Acc-Operating Contingency 1 0 1 0 1 1 476,0001 476,000 47.6%
I I i I I i
EXCESS OF REVENUES OVER/
(UNDER)EXPENDITURES(NET OF
OPERATING CONTINGENCY) $ (0)1$ 0 1$ 62,199,552 1 $ (1,822,857) $(1,822,858)
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Six Months Ending March 31,
2013, With Operating Budget Projections Through September 30, 2013
Page 13 of 13
SCHEDULE B
POLICE OVERTIME FY13 PROJECTION - EXCLUDING REIMBURSABLES BY NON CITY ENTITIES
I I I I
FY13 Adopted
FYIOActual FY11 Actual FY12 Actual Budget 3/24/13 Actual FY13Proection FY13Variance %Variance
South Pointe Spring Break 0 92,203 121,067 100,000 0 0 -100,000 -100%
South Pointe Other 72,241 69,018 137,375 100,000 126,966 238,899 138,899 1391A
City Center 174,814 350,461 452,475 450,000 125,616 356,917 -93,083 -21%
Crime Investigations 987,957 920,087 979,973 899,366 348,498 724,876 -174,490 -19%
Man po wer Shortage 921,943 829,267 1,350,536 866,000 635,718 1,318,878 452,878 52%
General Fund Regular 373,194 403,311 621,555 379,000 317,590 550,529 171,529 45%
NRO Homeless 519 10,007 45,928 10,000 24,682 43,884 33,884 339%
Spring Break 0 561,042 726,401 750,000 581,242 750,000 0 0%
Other Special Events(inclduding Spring Break
and New Year's Eve prior to FY 2010/11 and
New Year's Eve prior to FY 2011/12) 871,475 419,391 63S,138 150,000 325,037 488,039 338,039 225%
Memorial Day 0 957,044 954,704 916,000 0 954,704 38,704 4%
New Year's Eve(Previously budgeted under
Mis.Special Events) 44,671 159,817 0 105,000 106,829 106 629 1,829 2%
Misc.Special Events 0 0 0 100,000 0 50,000 -50000 -50%
lChargebacks to Sanitation/Parks/E911/Parking 580,464 401,699 160,917 160,000 67912 162,804 2,804 29,
'Other 166,986 303,908 116,475 -258000 201,217 305,849 563,849 -219%
Sub-Total $4,194,264 $5,377,256 $6,302,546 1 $4,727,365 $2,861,306 $6,052,207 $3,324,841
I I I ! I
TOTAL OVERTIME 4,194,264 5,377,256 6,302,546 5,271,000 2,861,306 6,052,207 781,207 15%
RDA-City Ctr 174,814 350,461 452475 450,000 125,616 356,937 -93,063 -21%
Spring Break 0 653,245 693,705 850,000 581,242 871,067 21,067 2%
Memorial Day 0 0 E26916 916,000 0 954,704 38,704 4%
New Year's Eve(Previously budgeted under
Mis.Special Events 0 891 105,000 106,829 106,829 1,829 2%
Parkin 148,618 110,304 0 0 0 0 0•A
Other Reimbursables 0 0 0 272,866 272,866 272,866 1001A
Sanitation 31,256 30,429 30,000 4,064 30,000 0 0%
NetGF 3839,576 1 4231,925 4,071,385 2,920,000 1,770,690 3,459805 539,805 28%
E-911 399,905 259,066 133,688 130,000 63,848 132,804 2,804 2%
Memorial Da prior to FY 12 0 857,044 0 0 0 0 0 0%
Parks 0 1,009 2,472 0 1 0 0 0 0•1A
Police GF 3,439,671 3,114,806 3,935,224 2,790,000 1,706,842 3,327,000 537,000 19%
I