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2013-28361 Reso RESOLUTION NO., 2013-28361 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,ADOPTING THE SECOND AMENDMENT TO THE FISCAL(FY)2012/13 GENERAL FUND AND ENTERPRISE FUND BUDGETS WHEREAS, the Administration has performed a projection of year-end revenues and expenditures and it is anticipated that the General Fund will have an overall initial operating budget surplus of$62,000; and WHEREAS, although the General Fund is not projected to be over budget as a total; and WHEREAS, the City of Miami Beach adopts the budget at the departmental level; and WHEREAS, Florida Statutes require that actual expenditures not exceed budget at the level at which the budget is adopted; and WHEREAS, a budget amendment is required for departments that are projected. to overspend their appropriation; and WHEREAS,based on the third quarter analysis,three General Fund department budgets will need to be amended, primarily due to employee givebacks not achieved in FY 2012 /13 as the focus of labor negotiations was long term pension reform in the Fire and Police Pension Plan; and WHEREAS, the Sewer budget is anticipated to be over budget; primarily due to sewer treatment costs being over budget, which is offset by higher than budgeted sewer revenues; and WHEREAS,the Convention Center budget is also anticipated to be over budget;primarily due to an increase in the number of events, which is offset by revenues being projected over budget. NOW,THEREFORE,BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF.MIAMI BEACH, FLORIDA,that the second amendment to the FY 2012/13 General Fund budget and Enterprise Funds is adopted as shown on the following pages. GENERAL FUND FY 2012/13 1 Recommend I FY 2012113 Amended Changes to Amended 4/17/2013 Appropriation 1 09/30/13 ........................................... .... ......... _... ...... .._..... ........ ......... .... .. .... REVENUES Operating Revenues Ad Valorem Taxes $ 102,171,000; $ 102,171,000 .Ad Valorem Taxes-S Pte Costs 10,296,000: I 10,296,000 _....._...._.._......__......_.._...............__..........__..._.._...._.._..._..... ..............................._<..........__...._.._._._...................._.._..........._._...__.._....._..... .._........_..............,._......_.................._............................ Ad Valorem Cap.Renewal&Replace. 1,850,000 1,850,000 ........._..._.__._._... ..........._........................_...._.........._..............._._._.._._................._....................._.........................._....._......_........._................_..........._..................................................................._................................................._.............; Ad Valorem Taxes-Norm Shores 129 000 ; 129,000 Other Taxes 24,023 000; j 24 0.091. Licenses and Permits 20,033,000 I 20,033,000 Intergovemmental 9,827,000 9,827,000 ...................................................._.. .... ... .......... .. ...._ ... Cha es for Services Incl. Golf Courses 10,668,000 10 668,000 �9__ ...... ........... ......... _._.. _..._.. .......... . ...... . ...... . ..... Fines and Forfeits 2,199,000 2,199,000 ..............................................................................................._................................................._.__.........................._........_._.;;....._......................_.._................._....._.............................. ........................_, Interest 2,983,000 2,983,0001 _.............._..... ._ .., .._.. .. Rents and Leases 6,464,000 6,464,000 Miscellaneous 11,830,000 ', 1 11,830,000 Other-Resort Tax contribution 30,965 000` j 30 965,000 ... . . . .. Other-Non-Operating Revenues 8,532 000 f 8 532,000 11 Reserves Building Department Ops. 1,500,000 1,500,000 . :Prior Year Set Aside for Pension Credit 2,210,000 , 2,210,000 . FY 09 Surplus Set Aside 3,400,000: 3 400 000 Prior Year Surplus from Parking Operation Fund 7,200,000 7,200,000 .............__........._...._...._................. ............_...._._......................._.._........__._._..........................__........................_._............._..._..........._.............._.......__.............._........o................_......................................._............._...._............._............_................_. Reserve-Carryfroward for FY 2011/12 Encumberances 440,000 1 440,000 ... .... .. .......................... ....... Reserve-Caryfroward for FY 2011/12 Appropriations 950,000€ , 950,000 ................................................................................................................... _..._...._._._......._...._.Total General Fundy $ 257,670,000€ $ 01 $ 257,670,000 APPROPRIATIONS ..._....._..._...._.__..._.... ......................................................................................................................................................................,. De artment Mayor and Commission $.. 1,648.000' $ (22,000); $.:.._.... 1,626,000 Manager 2,745,000 (37 000) 2,708,000 .,.,:...City .,.. _.._._...:..: .. w_ rcm , Communications 893,000 (46,000) 847,000 ....................._...._..._........._..............._......._....__._.............._..............._......._..............................................._......._......._....<........................................._.._.........._.....: ......_............_...._............................__...__......_.._................_..._....... City Clerk 1,505,0 00..................................(71,000)3......................_1,434,000 Finance 4,426 000: (198,000)1 4,228,000 's Office of Budget&Perf Improve _:. 2,160 000 (325 000), ...... _.1 835,000 w. . Human Resources/Labor or Relations 1,827 000 (177,000)1 1,650,000 Procurement 1,068,000...: (80,000):.............................988,000...; City Attorney 4,318,000' 225,000' 4,543,000 .._._......._.................._._...._._.................................................................................._................._........_._...._...._................._._......._._..._......_..._............_.............._._........._.._........._._............,................................._............................_._..__............._._....... ;Real Estate,...Housing...&...Comm...Dev.:............._.... ..._._._._......__........................_... 1,048,000..;.........................._(210,000).1.............._...........__838,000...1 Community Services __..,.,......_.......... _,........,_....._ _ ;..._........................460,000 ........_...... . ..._...(2 000)' ... ._..__ 458,000 Homeless Services 990 000 (72,000y 918,000 _..,_ Building 11,072,000 (1,92 000)F 10,880,000 Code Compliance 4,647,000 (256,000)( 4,391,000 .. . ....... . .. ...... ..................................... .......... ...... ......... . Planning ....... :...................................................................:...............................:.:..................._3,419,000.....:........................(319,000).1........_..........._3.100.000...: Tourism&Cultural Development 2,503,000 (59,000)1 2,444,000 w. ................ ....._.. Parks and Recreation 28,798 000 (100,000)1 28 698 000 Public Works 6,688,000 (97,000)1 6,591,000 Capital Improvement . ... ._........ ._.. Fire 62,263 000 (1,157 000)1 61,106,000 Police 94,970,000= 1,553,0001 96,523,000 ... y a Cit wide Accounts 10 298,708 3,245 0001; 13,543,708 Citywide Acc-Operating Contingency 1,000 000 (1,00 000); - : Citywide Accounts-Transfer to Normandy Shores 187,292 26,000 213,292 Sub Total General Fun $ 253,792,000 $ $ 253,7 , Capital Reserve Fund 0 Pay-As-You-Go Capital Fund 1,400,00 :..._K.... H._-- �z 1 400,000 Capital Investment&Upkeep Account 224,000< 0 ? 224,000 ..................................................................................................................................................._............................................................................................................_........................................_;,...............................................................;........................................................ .......; Info&Comm Technology ..............._.........................................................................................<....._._...................395,000 0 i 395,00 0 , ................... ................... ................<...............__.._........................ ................._..............._< CAPITAL RENEWAL&REPLACEMENT 1,859,000 0 1,859,000 Sub`Dotal Yransfers , Total General Fund."$ 257,670,000 $ 0 $ 257,670,000 ti FY 2012/13 Recommend FY 2012/13_ Amended Changes to Amended ENTERPRISE FUNDS 4/17/2013 Appropriation 09/30/13 `REV/EXP APPROPRIATIONS Convention Center $ 12,702,000 $ 1,792 000 $ 14,494,000 ........ .............................. .. .>.... . ... ...... .... . Parking 47,702,000 -47,702',-0,60, 7 702 000 Sanitation 17,328,000 : 17,328,000 : _.._.....................__...._..__........_.._.... _........._............_......._.._._........_.........._....._._.._..................._.................................. ..........; ;Sewer Operations ........... 38,535,000 .».»._..,. .. Stormwater Operations 11,984,000 : 11,984,000 ......................................................._._.................................._....................-..,-...........,.....y..............................................,.......,,.,.:......:.........,,.........................,...............-.................,.......f..._,.....-.............,.............._...............,...... >WaterOperations 34,684,000 [ 34,684,000 Total Enterprise Funds; $ 162,130,000 : $ 2,597,000 = $ 164,727,000 Passed and adopted this 301h day of September, 2013. May& ATTEST: .INCORP ORATED City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Ci t rney , Dat COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION ADOPTING THE SECOND AMENDMENT TO THE FISCAL(FY)2012/13 GENERAL FUND AND ENTERPRISE FUND BUDGETS Key Intended Outcome Supported: Ensure expenditure trends are sustainable over the long term Improve the City's overall financial health and maintain overall bond rating Supporting Data(Surveys, Environmental Scan, etc.): N/A Item Summa /Recommendation: The budgets for the General Fund and Enterprise Fund budgets for Fiscal Year 2012/13 were approved on September 27,2012 with the adoption of Resolution No.2012-28014.The First Amendment was approved on April 17, 2013 with the adoption of Resolution No. 2013-28185. Overall,there is a preliminary estimated operating budget surplus of$62,000(0.2 percent)in the General Fund. The estimates are based on third quarter projections and reflect a significant improvement from second quarter projections which estimated a$2 million shortfall. Although the total General fund expenditure is below budget, Florida Statutes require that actual expenditures not exceed budget at the level at which the budget is adopted,which in Miami Beach is at the departmental level. Therefore, a budget amendment is required for departments that are projected to overspend their appropriation. Based on the third quarter analysis, the Police Department, Citywide Accounts and the City Attorney's office need to be amended. The Police department is projected to be$1.5 million above budget primarily as a result of$1.4 million in budgeted employee givebacks that have not been achieved and a projected$0.6 million over budget in overtime costs.Citywide Accounts is projected to be$2.3 million above budget primarily due to charges for accumulated leave payout,which are projected to exceed the$1.9 million budgeted by$4.1 million, the most significant portion of this was due to an increase in leave used for Fire and Police pension buybacks driven by the 2010 Fire and Police Pension Plan changes that became effective on June 27, 2012. The City Attorney's Office is projected to be$0.2 million above budget primarily due to charges for outside legal fees,directly related to labor/union negotiations. The additional expenses above budget will be offset by reducing appropriation in other departments in the General Fund that are projected to end the year under budget. The Convention Center and Sewer Enterprise Funds require a budget amendment. The Convention Center is projected to be over budget by approximately$1.8 million primarily due to an increase in the number of events, which have offsetting revenue. The Sewer Fund expenses are projected to be over budget by$0.8 million primarily due to increased sewer treatment expenses,which is offset by higher than budgeted Sewer revenues. This amendment allows for additional contingency of$0.9 million, pending the year end closeout reflecting final FY 2012/13 expenditures. Financial Information: Source of Amount Account Funds: FY 2012/13 $0 General Fund $2,597,000 Enterprise Funds OBPI Financial Impact Summary: Sign-Offs: ArtmpptDirector Assi§tpn ty anager City Manager MIAMIBEACH AfaENDA ITEM DATE - 1 .�- MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me bers the City Commission FROM: Jimmy L. Morales, City Manager DATE: September 30, 2013 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE SECOND AMENDMENT TO THE FISCAL (FY) 2012/13 GENERAL FUND AND ENTERPRISE FUND BUDGETS ADMINISTRATION RECOMMENDATION Adopt the resolution amending the FY 2012/13 General Fund and Enterprise Fund budgets. GENERAL FUND ANALYSIS The Fiscal Year 2012/13 projected actuals as of September 30, 2013 are presented in the following pages. It is important to note that the numbers are based on the third quarter projections and may be adjusted after the Finance Department finalizes all FY 2012/13 expenses. The proposed budget amendment represents the budget amendment required by state law for departments or accounts that exceed their appropriated authority. In past years, the budget amendment was prepared in November of the next fiscal year. In an effort to provide this information on a more timely basis, the analysis and recommended amendments presented herein are therefore still subject to change. We will continue to refine the estimate and present an update once the year-end close-out process is complete, typically in the March timeframe. The following comparisons show that, overall, there is a preliminary estimated operating budget surplus of $62,000 (0.02 percent) in the General Fund and assumes no additional contingency is spent for the remainder of the year. This projection is an improvement from the second quarter projection of a $2 million shortfall. A detailed analysis of the related projections is outlined in the Third Quarter Letter to Commission. Adopted Budget as FY 2012/13 amended through Third Quarter General Fund April 17,2013 Projection Budget/Projected Revenues $ 257,670,000 $ 256,756,000 $ (914,000) Expenditures* 257,670,000 256,694,000 (976,000) Surplus/(Deficit) $ - $ 62,000 $ 62,000 Second Amendment to the FY 2012/13 General Fund and Enterprise Fund Budgets Page 2 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. There are no changes in any of the collective bargaining agreements throughout the remainder of the fiscal year. The Administration has been successful in negotiating some-significant changes through the collective bargaining process, totaling $4,635,000 to the General Fund in FY 2013/14. Implementation of long term pension changes for current and future employees are projected to result in savings of$5,664,000 to the General Fund (CWA$120,000, IAFF $2,152,000 and FOP $3,392,000). CWA impacts for three percent merit eligibility, eleven percent extension of the salary range for Lifeguard II and Lieutenants, changes to holiday pay and increase of union time bank hour resulting in $507,000 increase in salaries, and a $30,000 increase for reinstated shift differential. IAFF impacts for increase on call supplement f o r Fire Investigators and PIO's, and increase paramedic recertification pay resulting in an increase in salaries of $57,000 and increase of $80,000 in capital and debt for take-home vehicle assignments. FOP impacts for implementation of voluntary annual physical fitness assessment incentive resulting in an increase in benefits of$355,000. Second Amendment to the FY 2012/13 General Fund and Enterprise Fund Budgets Page 3 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) `CWA includes$183,000 of givebacks built into the FY2012/13 CSL Budget GENERAL FUND FY 2012/13 BUDGET AMENDMENT General Fund Operating Revenues At this time, we are projecting property tax collections for FY 2012/13 at 99 percent of total budgeted property taxes revenues. The adopted budget includes 95 percent of total property taxes assessed, 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 provided by the Miami-Dade County Property Appraiser in July, 2013 reflect a 4.6 percent reduction in property tax values. Overall revenues are projected to be approximately $0.9 million above the amended budget. However Building Development Process Fee revenues (Licenses and Permits), are projected to exceed the budget by approximately $3.2 million (16 percent). This increase is projected to be offset by declines in Interest Earnings, Electricity Franchise and Communications tax revenues, a continuing trend in recent years. The budgeted included $1.5 million to be transferred in from the Building department reserve to cover budgeted operating losses in that department. This is not being recommended to be transferred since building revenues are projected to be in excess of operating expenditures. General Fund Operating Expenditures Although the total General Fund expenditure is below budget, Florida Statutes require that actual expenditures not exceed budget at the level at which the budget is adopted, which in Miami Beach is at the departmental level. Therefore, a budget amendment is required for departments that are projected to overspend their appropriation. Based on the third quarter analysis, three departments' budgets will need to be amended. Explanations of these variances are provided below, as well as a summary of estimated actual FY 2012/13 revenues and expenditures. The additional expenses above budget will be offset by reducing appropriation in other departments in the General Fund that are projected to end the year under budget. Second Amendment to the FY 2012/13 General Fund and Enterprise Fund Budgets Page 4 Police Department — Is projected to be approximately $1,553,000 or 1.6%, above the amended budget. In addition to the $1.4 million in budgeted employee givebacks that have not been achieved, and overtime costs projected to be $663,000 over the FY 2012/13 budget. Amended Variance Budget 2012/13 Projected/ (April Amended Police Amendment) Projected Budget Expenditures 94,970,000 96,523,000 1,553,000 Citywide Accounts — Is projected to be $2,270,000 or 5.2% above the amended budget primarily due to charges for accumulated leave payout, which are project to exceed the $1.9 million budget by $4.1 million. This issue has been highlighted since the FY 2011/12 year end and is projected in all quarterly projections in FY 2012/13. The most significant portion of this overage was due to an increase in leave used for Fire and Police pension buybacks, 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. Amended Variance Budget 2012/13 Projected/ (April Amended Citywide Amendment) Projected Budget Expenditures 15,364,000 17,634,000 2,270,000 City Attorney's Office — Is projected to be $225,000 or 5.2% above the amended budget primarily due to charges for outside legal fees. The Office has experienced higher than budgeted expenses for outside legal fees directly related to labor/union negotiations for the City's five labor unions whose contracts were up for renewal. Amended Variance Budget 2012113 Projected/ (April Amended City Attorney Amendment) Projected Budget Expenditures 4,318,000 4,543,000 225,000 Second Amendment to the FY 2012/13 General Fund and Enterprise Fund Budgets Page 5 The following table shows General Fund revenue and expenditure projections for FY 2012/13 as of the third quarter. CITY OF MIAMI BEACH FY 2012113 GENERAL FUND PROJECTIONS Quarter 3 %Actual of Over/(Under) %Over/ FY 2012/13 FY13 FY 2012/13 Amended (Under) FY 2012/13 Amended Actuals as of Amended Projection as Budget As of Amended Adopted Bud et Bud et June 30,2013 Budget of Quarter 3 Quarter 3 Budget REVENUES Ad Valorem Taxes $ 102,171,000 $ 102,171,000 $ 95,884,935 94% $ 101,053,000 (1,118,000) -1.1% Ad Valorem TaxesS Pte Costs 10,296,000 10,296,000 9,696,229 94% 10,183,000 (113,000) -1.1% Ad Valorem Cap.Renewal&Replace. 1,850,000 1,850,000 2,154,718 116% 1,829,000 (21,000) -1.1% Ad Valorem Taxes-Norm Shores 129,000 129,000 0 0% 127,000 (2,000) -1.6% Other Taxes 24,023,000 24,023,000 13,982,633 58% 22,743,000 (1,280,000) -5.3% Licenses and Permits 20,033,000 20,033,000 18,814,534 94% 23,278,000 3,245,000 16.2% Intergovernmental 9,827,000 9,827,000 6,911,978 70% 9,982,000 155,000 1.6% Charges for Services 4,689,000 4,689,000 3,674,884 78% 4,436,000 (253,000) -5.4% Golf Courses 5,979,000 5,979,000 4,703,751 79% 5,773,000 (206,000) -3.4% Fines and Forfeits 2,199,000 2,199,000 2,070,034 94% 2,611,000 412,000 18.7% Interest 2,983,000 2,983,000 2,942,390 99% 2,866,000 (117,000) -3.9% Unrealized Gains/(Losses)-Investment 0 0 (2,860,106) 0% 0 0 0.0% Rents and Leases 6,464,000 6,464,000 5,914,135 91% 6,772,000 308,000 4.8% Miscellaneous 11,830,000 11,830,000 5,022,341 42% 11,406,000 (424,000) -3.6% Other-Resort Tax contribution 30,965,000 30,965,000 23,636,250 76% 30,965,000 - 0.0% Other-Non Operating revenues 8,532,000 8,532,000 6,399,276 75% 8,532,000 (0) 0.0% Reserve-Building Department Ops. 1,500,000 1,500,000 0 0% 0 (1,500,000) -100.0% Prior Year-End Carryover 3,400,000 4,790,000 0 0% 4,790,000 - 0.0% Prior Yr Surplus from Parking Oper Fd 7,200,000 7,200,000 5,400,000 75% 7,200,000 - 0.0% Prior Yr Set Aside for Pension Credit 2,210,0 0 2,210,000, 01 0% 2,210,000, - 0.0% TOTAL REVENUES 256,280,000 257,670,000 1 204,347,981 1 79%1 256,756,000 1 (914,500)l Unrealized Gains/(Losses)-Investment 2,860,106 Total Net of Unrealized Gains/ Losses 256,280,000 257,670,000 1 207,208,087 1 80%1 256,756,000 1 (914,000)l EXPENDITURES Mayor and Commission 1,648,000 1,648,000 1,181,907 72% 1,621,000 (27,000) -1.6% City Manager 2,313,000 2,745,000 2,005,177 73% 2,699,000 (46,000) -1.7% Communications 893,000 893,000 581,234 65% 837,000 (56,000) -6.3% City Clerk 1,505,000 1,505,000 938,425 62% 1,417,000 (88,000) -5.8% Finance 4,426,000 4,426,000 3,196,441 72% 4,183,000 (243,000) -5.5% Office of Budget&Perf Improve. 2,160,000 2,160,000 1,231,359 57% 1,762,000 (398,000) -18.4% Human Resources/Labor Relations 1,827,000 1,827,000 1,167,349 64% 1,610,000 (217,000) -11.9% Procurement 1,063,000 1,068,000 704,744 66% 970,000 (98,000) -9.2% City Attorney 4,318,000 4,318,000 3,232,402 75% 4,543,000 225,000 5.2% Real Estate,Housing&Comm Dev 1,048,000 1,048,000 599,240 57% 791,000 (257,000) -24.5% Community Services 460,000 460,000 333,774 73% 458,000 (2,000) -0.4% Homeless Services 990,000 990,000 610,898 62% 902,000 (88,000) -8.9% Building 10,985,000 11,072,000 7,590,112 69% 10,837,000 (235,000) -2.1% Code Compliance 4,647,000 4,647,000 3,230,204 70% 4,333,000 (314,000) -6.8% Planning 3,419,000 3,419,000 2,178,380 64% 3,028,000 (391,000) -11.4% Tourism&Cultural Development 2,503,000 2,503,000 1,615,759 65% 2,431,000 (72,000) -2.9% Parks and Recreation 22,153,000 22,179,000 15,236,752 69% 22,627,000 448,000 2.0% Golf Courses 6,619,000 6,619,000 4,662,548 70% 6,048,000 (571,000) -8.6% Public Works 6,548,000 6,688,000 4,387,649 66% 6,569,000 (119,000) -1.8% Capital Improvement Program 4,841,000 4,858,000 2,877,079 59% 4,087,000 (771,000) -15.9% Fire 62,242,000 62,263,000 45,275,439 73% 60,784,000 (1,479,000) -2.4% Police 94,963,000 94,970,000 73,052,960 77% 96,523,000 1,553,000 1.6% Citywide Accounts 8,817,535 9,467,535 8,103,057 86% 12,712,000 3,244,292 34.3% Citywide Acc-Operating Contingency 1,000,000 1,000,000 0 0% 0 (1,000,000) -100.0% Citywide Accounts-Normandy Shores Transfer 187,292 187,292 0 0% 213,000 25,708 13.7% Citywide Accounts-Transfers 2,014,173 2,019,173 79,107 4% 2,019,000 - 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-Car onward Pension Credit Surplus 01 01 0 0% 01 0 0.0% TOTAL EXPENDITURES 256 280,000 257,670,000 1 184,071,995 71% 256,694,000 (976,000)l -0.4% EXCESS OF REVENUES OVER/ UNDER EXPENDITURES $ (0)1$ 0 23,136,093 1 0% 62,0001 62,000 1 13.7% Additional appropriation necessary for the budget amendment will be realigned from other General Fund departments that are projected expend less than the amended budget. The exact amounts of realigned appropriations by department can be found in the accompanying resolution. Second Amendment to the FY 2012/13 General Fund and Enterprise Fund Budgets Page 6 ENTERPRISE FUNDS.FY 2012/13 BUDGET AMENDMENT The City accounts for proprietary operations in Enterprise Funds. Convention Center, Parking, Sanitation, Sewer, Stormwater, and Water are in this grouping. As highlighted in the third quarter projections, the Sewer and Convention Center Funds require budget amendments as the FY2012/13 year end expenses are projected to exceed the adopted budgets. Explanations of these variances are provided below, as well as a summary of estimated actual FY 2012/13 revenues and expenditures. Convention Sewer Center ENTERPRISE FUNDS Sanitation r w ate r W ate r P Budget Amendment(April 2013) 17,328,000 37,730,000 11,984,000 ! 34,684,000 47,702,000 12 702,000 w... __ ---,. •,__,.m_. _..... w w _w 3/4 of Amended Budget 12,996,000 28,297,500 8,988,000 i 26,013,000 = 35,776,500 9,526,500 _................. _ .. __.,,..,. _,.,,. ..............� .. ... ...... . Expenditures as of 6130/13 11,245,723 27,005,386 _ 8,433,676 I 22,027 858 28,767,164 10,026,117 ................_........................................._......................................_....... ...........................................................................................................................................................:.......................................................................................................`........................... ........................,....-..-....-..-............................................................................ ........e............................................... Expenditure Above/(Below)3/4 of Amended Budget (1,750,277) (1,292,114) (554,324) (3,985,142); (7,009,336): 499,617 Convention Sanitation Sewer Stormwater; Water Parking Center .. ._.. ..... ....... . .. REVENUES Projected Revenues _.,..._,_......, :, _,..._,rc..... _....... ..: .:.. Charges for Service $ 16,453,500 $ 35,184,000 ` $ 11,611,000 # $ 32,820 000 35,898,000 9,619,451 Other $ 378,500 $ 574,000 : 161,000 $ 353,660"< $ 11,555,000 5,825,067 .......•.,...,_... ......... ..._.:.:.. . Total Rojection $ 16,832,000 $ 35,758,000 # $ 11,772,000 f $ 33,173,000 $47,453,000 $15,444,518 EXPENDITURES ___ ,._M _,__,.•w, Projected Expenditures $ 16,831,400 $ 38,535,000 $ 11,926,000 $29,810,000 $47,453,000 ' $14,494,000 ......_ ........ ......... ._....... ................................... . - .. ...... . ......... Surplus/(Shortfall) $ 600 : $ (2,777,000) $ (154,000); $ 3,363,000 $ ; $ 950,518 #,... ........... Projected Rate Stabilization Revenue $ - $ 2,777,000 1 $ 154,000 $ - $ - $ - Surplus/(Shortfall)Net of Budgeted Rate s i Stabilization $ 600 $ - $ - i $ 3,363,000 = $ - $ 950,518 Variance from Expenditure Amended Budget-Over/(Under) $ (496,600) $ 805,000 $ (58,000)' $ (4,874,000)= $ (249,000): 1,792,000 Sewer Projected expenditures are anticipated to exceed the amended budget by $805,000 due to higher than anticipated sewer treatment costs and a reallocation of debt service expenses from Water to Sewer, based on updated data provided by the Finance department. A budget amendment is necessary to cover the additional $805,000 in projected expenditures over the amended budget. The required appropriation for the budget amendment will be realigned from fund balance. Overall, projected revenues are higher than the amended budget due to increased demand that is projected to offset the additional expenditures above budget. Convention Center Projected expenditures are anticipated to exceed the amended budget by $1.8 million due to an increase.in the number of events at the-Convention Center. A budget amendment is necessary to cover the additional $1.8 million in projected expenditures over the amended budget. The- required appropriation for the budget amendment will be realigned from fund balance. Overall, projected revenues are higher than the amended budget due to increased events that is projected to result in a surplus of$0.9 million. Second Amendment to the FY 2012/13 General Fund and Enterprise Fund Budgets Page 7 CONCLUSION It should be noted that these projections are preliminary in nature due to the fact that the City's financial records will not be closed until after the fiscal year is closed and external auditors complete their review. Historically, this occurs in April, with the City's Comprehensive Annual Financial Report (CAFR) For the Year Ended September 30, 2013, usually available in May and the External Auditor's Report available in July. This amendment allows for additional contingency of$0.9 million, pending the year end closeout reflecting final FY 2012/13 expenditures. If it is necessary, a resolution further amending the FY 2012/13 budgets will allow the third amendment to the departmental appropriations to be enacted. This action is necessary to comply with Florida Statutes which stipulate that we may not expend more than our appropriations provide. xj� JLM: KGB/JW b' M L e m U L rna a Na Cy m o m c m C E m ° U O vi iao ca �= C/) 'o m 0 c° a a V) w o w Cl)m o m >, �- a� U¢ w �N aim dm 0m O w �-'' ° `° c � M > c a CL m p rn F- m C o ca t Ca d C N >+ ) m it C C O m U) E ¢LL jL¢ m LL c o o c ,°-c c°m- N! 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