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2016-29654 Reso RESOLUTION NO. 2016-29654 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY) 2016/17. WHEREAS, the budgets for the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds for Fiscal Year 2016/17 were approved on September 27, 2016, with the adoption of Resolution No. 2016-29579; and WHEREAS, the preliminary year-end analysis for FY2015/16 shows that the General Fund has an operating surplus of $4,558,000; and WHEREAS, $851,000 was set aside from FY 2015/16 General Fund surplus for encumbrances from FY 2015/16 for goods or services which had been procured, but not received and expended at year end, that the Administration is recommending be carried over to the FY 2016/17 operating budget; and WHEREAS, there were also approximately $241,000 in projects in the General Fund that were budgeted in FY 2015/16 and which have not yet been expended or encumbered and the funding is recommended to be carried forward and spent in FY 2016/17, and WHEREAS, there is $1,806,000 in Enterprise Fund encumbrances, and $257,000 in Internal Service Fund encumbrances, and $766,000 in Special Revenue Fund encumbrances from FY 2015/16 for goods or services which were procured in FY 2015/16, but not yet received and expended, which the Administration also recommends be carried over to the respective FY 2016/17 operating budgets; and WHEREAS, there were also approximately $116,000 in projects in Enterprise Funds, and $3,092,000 in projects in Special Revenue Funds that were budgeted in FY 2015/16, and which have not yet been expended or encumbered, which the Administration recommends to be carried forward and spent in FY 2016/17; and WHEREAS, prior year appropriations fully fund the prior year encumbrances and projects; and WHEREAS, it is proposed that $3,466,000 of the year-end surplus be reserved in the General Fund Emergency Reserves; and WHEREAS, the City's financial policies adopted pursuant to Resolution 2006-26341 and Resolution 2002-24764 require that one-time revenues (such as the year-end surplus) must be used for non-recurring expenses, and that at least half of each annual year-end surplus must be allocated to the City's Capital Reserve Fund; and WHEREAS, it is recommended that the Commission waive the policy that requires that at least half of the FY 2015/16 year-end surplus be used to fund the City's Capital Reserve Fund, and instead allocate funds to the 6 percent optional reserve. Exhibit "A" FY 2016/17 Carryforward Carryforward FY 2016/17 GENERAL FUND Adopted Encumbrances Appropriations Other Amended Budget from FY 2015/16 from FY 2015/16 Budget REVENUES Operating Revenues 'Ad Valorem Taxes $159,950,000 $ 159,950,000 Ad Valorem Taxes-S Pte Costs $ - $ - Ad Valorem Cap.Renewal&Replacement $ 662,000 $ 662,000 Ad Valorem Taxes-Normandy Shores $ 169,000 $ 169,000 Other Taxes 5 23,732,000 $ 23,732,000 Licenses and Permits $ 30,348,000 $ 30,348,000 Intergovernmental $ 11,439,000 $ 11,439,000 Charges for Services $ 12,174,000 $ 12,174,000 Fines&Forfeits $ 1,799,000 $ 1,799,000 Rents and Leases $ 6,426,000 $ 6,426,000 Miscellaneous $ 12,575,000 $ 12,575,000 Resort Tax Contribution $ 37,609,000 $ 37,609,000 Other $ 20,369,000 $ 20,369,000 Fund Balance/Retained Earnings $ _ - 851,000 241,000 $ 1,092,000 Total General Fund $317,252,000 $ 851,000 $ 241,000 $ - $ 318,344,000 FY 2016/17 Carryforward Carryforward FY 2016/17 Adopted Encumbrances Appropriations Other Amended Budget from FY 2015/16 from FY 2015/16 Budget APPROPRIATIONS Department Mayor and Commission $ 2,093,000 $ 2,093,000 City Manager $ 3,625,000 5,000 $ 3,630,000 Communications $ 1,995,000 $ 1,995,000 Budget&Performance Improvement $ 2,499,000 159,000 $ 2,658,000 Org Dev&Performance Initiative $ 629,000 $ 629,000 Finance $ 5,746,000 45,000 $ 5,791,000 Procurement $ 2,258,000 30,000 $ 2,288,000 Human Resources/Labor Relations $ 2,780,000 $ 2,780,000 City Clerk $ 1,560,000 2,000 $ 1,562,000 City Attorney $ 5,370,000 $ 5,370,000 Housing&Comm.Development $ 2,798,000 $ 2,798,000 Building $ 15,146,000 17,000 $ 15,163,000 Environment&Sustainability $ 1,064,000 59,000 $ 1,123,000 Code Compliance $ 5,845,000 102,000 $ 5,947,000 Planning $ 4,156,000 24,000 $ 4,180,000 Tourism,Culture,and Econ.Development $ 3,680,000 $ 3,680,000 Parks&Recreation $ 31,934,000 $ 31,934,000 Public Works $ 14,698,000 $ 14,698,000 Capital Improvement Projects $ 5,051,000 $ 5,051,000 Police $104,470,000 259,000 $ 104,729,000 Fire $ 71,938,000 $ 71,938,000 Emergency Management $ 9,509,000 $ 9,509,000 Citywide Accounts-Other $ 13,376,000 367,000 23,000 $ 13,766,000 Citywide Accounts-Operating Contingency $ 1,318,000 $ 1,318,000 Citywide Accounts-Normandy Shores $ 257,000 $ 257,000 Subtotal General Fund $313,795,000 $ 851,000 $ 241,000 $ - $ 314,887,000 TRANSFERS Capital Renewal&Replacement $ 662,000 $ 662,000 Capital I nvestement Upkeep Account $ - $ - Info&Comm Technology Fund $ 395,000 $ 395,000 Pay-As-You-Go Capital Fund $ 2,400,000 $ 2,400,000 Capital Reserve Fund $ - $ - Building Reserve $ - $ - Subtotal Transfers $ 3,457,000 $ - $ - $ - $ 3,457,000 Total General Fund $317,252,000 $ 851,000 $ 241,000 $ - $ 318,344,000 Exhibit "A" FY 2016/17 Carryforward Carryforward FY 2016/17 ENTERPRISE FUNDS Adopted Budget Encumbrances from Appropriations from Other Amended FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Convention Center $ 11,038,000 $ 11,038,000 Parking $ 60,815,000 437,000 116,000 $ 61,368,000 Sanitation $ 20,624,000 262,000 $ 20,886,000 Sewer Operations $ 54,156,000 516,000 $ 54,672,000 Stormwater Operations $ 28,334,000 198,000 $ 28,532,000 Water Operations $ 34,402,000 393,000 $ 34,795,000 Total Enterprise Funds $ 209,369,000 $ 1,806,000 $ 116,000 $ - $211,291,000 FY 2016/17 Carryforward Carryforward FY 2016/17 INTERNAL SERVICE FUNDS Adopted Budget Encumbrances from Appropriations from Other Amended FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Central Services $ 1,015,000 $ 1,015,000 Fleet Management $ 9,547,000 50,000 $ 9,597,000 Information Technology $ 16,828,000 202,000 $ 17,030,000 Property Management $ 8,409,000 $ 8,409,000 Risk Management $ 17,580,000 5,000 $ 17,585,000 Medical and Dental Insurance $ 30,532,000 $ 30,532,000 Total Internal Service Funds $ 83,911,000 $ 257,000 $ - $ - $ 84,168,000 FY 2016/17 Carryforward Carryforward FY 2016/17 SPECIAL REVENUE FUNDS Adopted Budget Encumbrances from Appropriations from Other Amended FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Resort Tax $ 86,722,000 221,000 1,510,000 $ 88,453,000 Transportation $ 10,187,000 461,000 797,000 $ 11,445,000 People's Transportation Plan Fund $ 3,766,000 42,000 $ 3,808,000 7th Street Garage $ 2,320,000 $ 2,320,000 5th&Alton Garage $ 771,000 $ 771,000 Art In Public Places $ 473,000 $ 473,000 Tourism and Hospitality Scholarship Prgm $ 184,000 $ 184,000 Information and Communitation Tech Fund $ 534,000 34,000 235,000 $ 803,000 Education Compact $ 235,000 $ 235,000 Sustainability Fund $ 350,000 30,000 $ 380,000 Residential Housing $ 771,000 $ 771,000 Red Light Camera Fund $ 1,516,000 $ 1,516,000 E-911 Fund $ 351,000 $ 351,000 Cultural Arts Council $ 1,679,000 350,000 $ 2,029,000 Normandy Shores $ 257,000 $ 257,000 Tree Preservation $ 90,000 $ 90,000 Police Confiscation $ 336,000 8,000 170,000 $ 514,0(X) Police Special Revenue $ 105,0(X) $ 105,000 Police Training $ 30,000 $ 30,0(X) Waste Haulers Add Sery&Public Benefit $ 70,000 $ 70,000 Total Special Revenue Funds $ 110,747,000 $ 766,000 $ 3,092,000 $ - $114,605,000 • NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that following a duly noticed public hearing on November 18, 2016, the City Commission hereby waives the policy for FY 2015/16 requiring that at least half of the year-end surplus in the General Fund be used to increase funding in the City's Capital Reserve Fund and, instead, allocates funds to the 6 percent optional reserve; and, hereby adopts the first amendment to the FY 2016/17 General Fund, Enterprise Fund, Internal Service Fund, and Special Revenue Funds budgets as set forth in Exhibit "A." PASSED and ADOPTED this 18th day of November, 2016. ATTEST: PHILIP LEVINE, Y• �r %%%%%%%%%%%%%%%%% B�� 1 11 RAPHAEL E. GRAN D ....0 9 1* INCORP ORATED: Ja APPROVED AS TO FORM & LANGUAGE e., CH 2j.e'"/'. & FOR EXECUTION ,Y-N`ZO/Af\-- II 15 tL City Attorney" to Resolutions - R7 B MIAMI BEAC COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: November 18, 2016 2:47 p.m. Public Hearing SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY)2016/17. RECOMMENDATION Adopt the resolution amending the FY 2016/17 General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the First Amendment to the General Fund, Enterprise Fund, Internal Service Fund, and Special Revenue Fund Budgets for Fiscal Year(FY)2016/17. KEY INTENDED OUTCOMES SUPPORTED Ensure Expenditure Trends Are Sustainable Over The Long Term Legislative Tracking Budget and Performance Improvement ATTACHMENTS: Description ❑ MEMO- FY16/17 First Operating Budget Amendment ❑ Resolution Page 12 of 28 MIAMI BEAC City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: November 18, 2016 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY) 2016/17 ADMINISTRATION RECOMMENDATION Adopt the resolution amending the FY 2016/17 General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets. KEY INTENDED OUTCOME SUPPORTED Ensure expenditure trends are sustainable over the long term. GENERAL FUND ANALYSIS The preliminary year-end analysis for FY 2015/16 shows that the General Fund has a preliminary operating budget surplus of$4.5 million or 1.5 percent of the amended General Fund operating budget. The detailed year-end analysis will be distributed by LTC on the second week of December. FY15/16 General Fund Budget Adopted Budget as amended through Preliminary FY 2015/16 November,2016 Year-End Difference Reeenues $ 306,411,000 $ 301,576,000 $ (4,835,000) Expenditures $ 306,411,000 $ 297,018,000 $ (9,393,000) Surplus/(Deficit) $ 4,558,000 The City's financial policies require that an 11 percent Emergency Reserve is funded in the General Fund and recommends that an additional 6 percent of optional Emergency Reserves are also funded. As of the end of FY 2015/16, the Emergency Reserve totaled 15.8 percent. General Fund Position at 9-30-15 Requirement at 9-30-16 Difference Percent 11% Required Reserve $ 30,917,577 $ 33,147,827 $ (2,230,250) 10.3% 6%Optional Reserve $ 16,554,324 $ 18,021,240 $ (1,466,916) 5.5% Page 13 of 28 First Amendment to the FY 16/17 General Fund,Enterprise,Internal Service,and Special Revenue Funds Budgets Page 2 Allocating$2,230,250 of the year-end surplus will keep the 11 percent Emergency Reserves fully funded to match the proportional growth in the General Fund budget during FY 2015/16. This item will be reflected in the City's Financial Statements and no appropriation is necessary in this budget amendment. The City's financial policies require that one-time revenues (such as the year-end surplus) must be used for non-recurring expenses, and that at least half of the annual year-end surplus must be allocated to the City's Capital Reserve Fund. However,the Administration recommends that the Capital Reserve transfer requirement be waived and instead allocate funds to the 6 percent optional reserve. Of the $4.5 million surplus, it is proposed to roll-over$851,000 into FY 2016/17 to cover purchase orders that were encumbered, but not spent during FY 2015/16 due to timing issues between fiscal years. Similarly, it is proposed to roll-over $241,000 for projects that were budgeted, but not completed during FY 2015/16, to carry forward the appropriation for these projects into FY 2016/17. The remainder of the year-end funds, $1,235,750, are proposed to be added to the 6 percent of optional Emergency Reserves. General Fund-.Reserve,Proposal Position at 9-30-15 Funding Proposal Total Funded Percent 11%Required Reserve $ 30,917,577 $ 2,230,250 $ 33,147,827 11.0% 6%Optional Reserve $ 16,554,324 $ 1,235,750 $ 17,790,074 5.9% The following tables summarize the proposed changes in appropriations to the General Fund: Projected Surplus $4,558,000 (excluding non-cash impact of losses on investments) Changes in Expenditure Appropriations Reserve-Encumbrances 851,000 Reserve-Set Aside for FY2015/16 Projects in FY2016/17 241,000 Reserve-Contribution for 11%Required Emergency Reserves 2,230,250 Reserve-Contribution for 6%Optional Emergency Reserves 1,235,750 Revised Net Surplus $ Page 14 of 28 First Amendment to the FY 16/17 General Fund,Enterprise,Internal Service,and Special Revenue Funds Budgets Page 3 FY 2016/17 Carryforward Carryforward FY 2016/17 GENERAL FUND Adopted Encumbrances Appropriations Other Amended Budget from FY 2015/16 from FY 2015/16 Budget REVENUES Operating Revenues Ad Valorem Taxes $159,950,000 $ 159,950,000 Ad Valorem Taxes-S Pte Costs $ - $ - Ad Valorem Cap.Renewal&Replacement $ 662,000 $ 662,000 Ad Valorem Taxes-Normandy Shores $ 169,000 $ 169,000 Other Taxes $ 23,732,000 $ 23,732,000 Licenses and Permits $ 30,348,000 $ 30,348,000 Intergovernmental $ 11,439,000 $ 11,439,000 Charges for Services $ 12,174,000 $ 12,174,000 Fines&Forfeits $ 1,799,000 $ 1,799,000 Rents and Leases $ 6,426,000 $ 6,426,000 Miscellaneous $ 12,575,000 $ 12,575,000 Resort Tax Contribution $ 37,609,000 $ 37,609,000 Other $ 20,369,000 $ 20,369,000 Fund Balance/Retained Earnings $ - 851,000 241,000 $ 1,092,000 Total General Fund $317,252,000 $ 851,000 $ 241,000 $ - $ 318,344,000 FY 2016/17 Carryforward Carryforward FY 2016/17 Adopted Encumbrances Appropriations Other Amended Budget from FY 2015/16 from FY 2015/16 Budget APPROPRIATIONS Department Mayor and Commission $ 2,093,000 $ 2,093,000 City Manager $ 3,625,000 5,000 $ 3,630,000 Communications S 1,995,000 $ 1,995,000 Budget&Performance Improvement $ 2,499,000 159,000 $ 2,658,000 Org Dev&Performance Initiative $ 629,000 $ 629,000 Finance $ 5,746,000 45,000 $ 5,791,000 Procurement $ 2,258,000 30,000 $ 2,288,000 Human Resources/Labor Relations $ 2,780,000 $ 2,780,000 City Clerk $ 1,560,000 2,000 $ 1,562,000 City Attorney $ 5,370,000 $ 5,370,000 Housing&Comm.Development $ 2,798,000 $ 2,798,000 Building $ 15,146,000 17,000 $ 15,163,000 Environment&Sustainability $ 1,064,000 59,000 $ 1,123,000 Code Compliance $ 5,845,000 102,000 $ 5,947,000 Planning $ 4,156,000 24,000 $ 4,180,000 Tourism,Culture,and Econ.Development $ 3,680,000 $ 3,680,000 Parks&Recreation $ 31,934,000 $ 31,934,000 Public Works $ 14,698,000 $ 14,698,000 Capital Improvement Projects $ 5,051,000 $ 5,051,000 Police $104,470,000 259,000 $ 104,729,000 Fire $ 71,938,000 $ 71,938,000 Emergency Management $ 9,509,000 • $ 9,509,000 Citywide Accounts-Other $ 13,376,000 367,000 23,000 $ 13,766,000 Citywide Accounts-Operating Contingency $ 1,318,000 $ 1,318,000 Citywide Accounts-Normandy Shores $ 257,000 $ 257,000 Subtotal General Fund $313,795,000 $ 851,000 $ 241,000 $ - $ 314,887,000 TRANSFERS Capital Renewal&Replacement $ 662,000 $ 662,000 Capital Investement Upkeep Account $ - $ - Info&Comm Technology Fund $ 395,000 $ 395,000 Pay-As-You-Go Capital Fund $ 2,400,000 $ 2,400,000 Capital Reserve Fund $ - $ - Building Reserve $ - $ - Subtotal Transfers $ 3,457,000 $ - $ - $ - $ 3,457,000 ' Total General Fund $317,252,000 $ 851,000 $ 241,000 $ - $ 318,344,000 Page 15 of 28 First Amendment to the FY 16/17 General Fund,Enterprise,Internal Service,and Special Revenue Funds Budgets Page 4 ENTERPRISE, INTERNAL SERVICE, AND SPECIAL REVENUE FUNDS FY 2016/17 BUDGET AMENDMENT There are $1,806,000 of encumbrances in the Enterprise Funds, $257,000 in Internal Service Fund encumbrances, and $766,000 in Special Revenue Fund encumbrances, for goods or services which were procured in FY 2015/16, but not yet received and expended, which are recommended to be carried over to the respective FY 2016/17 operating budgets. Similarly, it is proposed to carry forward appropriation of$116,000 in the Enterprise Funds, and $3,092,000 in the Special Revenue Funds into FY 2016/17 for projects that were budgeted, but not completed during FY 2015/16. Prior year appropriations fully fund the encumbrances and projects. FY 2016/17 Carryforward Carryforward FY 2016/17 ENTERPRISE FUNDS Encumbrances from Appropriations from Other Amended Adopted Budget FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Convention Center $ 11,038,000 $ 11,038,000 Parking $ 60,815,000 437,000 116,000 $ 61,368,000 Sanitation $ 20,624,000 262,000 $ 20,886,000 Sewer Operations $ 54,156,000 516,000 $ 54,672,000 Stormwater Operations $ 28,334,000 198,000 $ 28,532,000 Water Operations $ 34,402,000 393,000 $ 34,795,000 Total Enterprise Funds $ 209,369,000 $ 1,806,000 $ 116,000 $ - $211,291,000 FY 2016/17 Carryforward Carryforward FY 2016/17 INTERNAL SERVICE FUNDS Adopted Budget Encumbrances from Appropriations from Other Amended FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Central Services $ 1,015,000 $ 1,015,000 Fleet Management $ 9,547,000 50,000 $ 9,597,000 Information Technology $ 16,828,000 202,000 $ 17,030,000 Property Management $ 8,409,000 $ 8,409,000 Risk Management $ 17,580,000 5,000 $ 17,585,000 Medical and Dental Insurance $ 30,532,000 $ 30,532,000 Total Internal Service Funds $ 83,911,000 $ 257,000 $ - $ - $ 84,168,000 FY 2016/17 Carryforward Carryforward FY 2016/17 SPECIAL REVENUE FUNDS Adopted Budget Encumbrances from Appropriations from Other Amended FY 2015/16 FY 2015/16 Budget REVENUE/APPROPRIATIONS Resort Tax $ 86,722,000 221,000 1,510,000 $ 88,453,000 Transportation $ 10,187,000 461,000 797,000 $ 11,445,000 People's Transportation Plan Fund $ 3,766,000 42,000 $ 3,808,000 7th Street Garage $ 2,320,000 $ 2,320,000 5th&Alton Garage $ 771,000 $ 771,000 Art In Public Places $ 473,000 $ 473,000 Tourism and Hospitality Scholarship Prgm $ 184,000 $ 184,000 Information and Communitation Tech Fund $ 534,000 34,000 235,000 $ 803,000 Education Compact $ 235,000 $ 235,000 Sustainability Fund $ 350,000 30,000 $ 380,000 Residential Housing $ 771,000 $ 771,000 Red Light Camera Fund $ 1,516,000 $ 1,516,000 E-911 Fund $ 351,000 $ 351,000 Cultural Arts Council $ 1,679,000 350,000 $ 2,029,000 Normandy Shores $ 257,000 $ 257,000 Tree Preservation $ 90,000 $ 90,000 Police Confiscation $ 336,000 8,000 170,000 $ 514,000 Police Special Revenue $ 105,000 $ 105,000 Police Training $ 30,000 $ 30,000 Waste Haulers Add Sep.,&Public Benefit $ 70,000 $ 70,000 Total Special Revenue Funds $ 110,747,000 $ 766,000 $ 3,092,000 $ - $114,605,000 Page 16 of 28 First Amendment to the FY 16/17 General Fund,Enterprise,Internal Service,and Special Revenue Funds Budgets Page 5 CONCLUSION The resolution amending FY 2016/17 budgets will allow the first amendment to the departmental appropriations within the General Fund, Enterprise Funds, Internal Service Funds and Special Revenue Fund budgets to be enacted. This action is necessary to allow for the funding of encumbrances for good and services procured, but not yet received and expended at the end of FY 2015/16, as well as projects that were budgeted in FY 2015/16, but had not been expended or encumbered. The amendment also adds$3,466,000 to the General Fund reserves. JLM/CGR Page 17 of 28