Budget PresentationCommission Retreat
FY2017/18 Budget
June 22, 2017
MAMBEACH
8:30 AM
9:00 AM
9:05 AM
9:35 AM
10:00 AM
11:OOAM
12:30 PM
Breakfast
Welcome & Overview
Capital Budget Update
Operating Budget Update
Budget Challenges
Proposed Enhancements
Working Lunch: Strategic Plan Update
Capital Budget Update
MAMBEACH
Operating Budget Update
MAMBEACH
Jan -Feb
Feb -Ma r
Mar -May
May -June
June 1st
BUDGE TIMELIN
Initiate Budget Development Process
Dept. Directors confer with ACM's during budget development
for approvals; input received from Boards /Committees;
workplan and budget submission due at the end of March
Commission establishes budget priorities
Work plan /Budget planning workshops with departments,
Departmental reviews with OBPI and with City Manager
Brief City Commission regarding preliminary General Fund
Budget
Preliminary Certification of Taxable Value
BUDGE TIMELIN
July 1St "Certification of Taxable Value," received from the Property
Appraiser
Mid -July City Commission meets to set tentative millage rates
June -Aug Finance Committee budget briefings
Aug City Manager and OBPI develop Proposed Budget
Sept First and second public hearings to adopt millage rate, operating
and capital budgets
6
Operating Budget Trends
MAMBEACH
GENERAL FUND EXPENDITURES
• Average 4.4% growth since FY 2007/08
340.0
320.0
300.0
280.0
260.0
240.0
220.0
200.0
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
237.7
230.6
235.4
226.3
237.5
2006 -07 2007 -08 2008 -09 2009 -10 2010 -11
244.3
256.3
2011 -12 2012 -13
264.1
280.1
2013 -14 2014 -15
300.3
317.3
1
0
0
0
0
0
0
0
2015 -16 2016 -17
8
ii
it
2,500
2,000
1,500
1,000
500
POSITION COUNT
Positions are on par with FY 2006/07 Level (all funds)
1,509
1,441
1,399
1,345
1,273
1,322
1,337
1
1,469
632
1,520
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17
• General Fund Other Funds
9
COMBINED MILEAGE
Current combined millage rate is the lowest in the history of Miami Beach and is
3.3 mills or 36% less than in FY 1997/98 and 1.8 mills or 23% less than in FY
2006/07
10.0000
9.0000
8.0000 -
7.0000 -
6.0000 -
5.0000 -
4.0000 -
3.0000 -
2.0000 -
1.0000 -
0.0000
9.2100
8.9830
8.6980 8 5550
8.3760 8.3220
8.1730 8.1730 8.0730
7.6730
6.5025 6.4539 6.3477
5.8970 5.8930 5.9123 6.1163 6.0237 5.9123 5.8888
�e ,��e ,� °e , ° ° \ °ti , \°ti , °�� °� , °�� °o , °�\°� , °�\°° , ° °� °� , °�\°� , °�� °� , °�\ti° a� °\ titi ,�\ titi ,���ti3 ,�tio ,�\ti� ,��ti° ,y�\ti�
10
OVERLAPPING MILEAGE RATES
City of Miami Beach portion of property tax bill has decreased
as a percentage of the total bill from 33% to 30%
OVERLAPPING TAX MILLAGE
FY 06/07
%of FY
06/07
Total
FY 16/17
%of FY
16/17
Total
Variance
from 06/07
City of Miami Beach
7.6730
33%
5.8888
30%
- 1.7842
Miami Dade County
6.3860
27%
5.3509
28%
- 1.0351
School Board
8.1050
35%
7.3220
38%
- 0.7830
Children's Trust
0.4220
2%
0.5000
3%
0.0780
Other
0.7360
3%
0.3627
2%
- 0.3733
Total
23.3220
19.4244
- 3.8976
11
PROPERTY TAX REVENUE
• Property Tax revenues are 102% more than in FY 2006/07
• In FY 16/17, Property Taxes comprised 51% of General Fund Revenues
compared to 59% in FY 2006/07
N
c
0
350
300
250
200
150
100 -
50
8
96
1
1
1
10
1
1
1
1
1
1
1
1
1
3
3
15b
L
2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17
Property Tax Revenue Non - Property Tax Revenue
12
PROPERTY TAX REVENUE
• Preliminary 2017 property assessment values reflect an increase in
existing property values from the 2016 Certified Taxable Value
($34.697 billion) to the 2017 Preliminary Taxable Value ($37.294
billion) of approximately 7.5 percent or $2.596 billion.
- Includes $812 million of new construction compared to $1.156 billion of new
construction in the 2016 Certified Taxable Value (a decrease of 30.3 percent or $353
million).
July 2016
Certified
June 2017
Preliminary
Property Assessment
Existing Values 33,532,510,312
36,482,000,000
New Construction 1,165, 246, 796
812,
000,
000
Total 34, 697, 757,108
37, 294,
000,
000
City Center RDA 5, 612, 744, 843
Citywide Total 29, 085, 012, 265
6,175,
31,119,
000,
000,
000
000
Property Tax Revenue Projection 160, 612, 000
171,
964,
000
Property Tax Revenue Projection Variance 11,352,000
13
PROPERTY TAX REVENUE
• The preliminary 2017 property assessment values reflect a slowdown in
the property value increases we have experienced for the past several
years, as shown in the decline from July 2015 increase in certified
values to the June 2017 preliminary estimate.
14
July 2013
Certified
July 2014
Certified
July 2015
Certified
July 2016
Certified
June 2017
Preliminary
Property Assessment
Existing Values
24, 578, 430, 867
26, 952,138, 331
30, 430, 853, 418
33, 532, 510, 312
36, 482, 000, 000
New Construction
78,146, 022
152, 208,101
267, 037, 447
1,165, 246, 796
812, 000, 000
Total
24, 656, 576, 889
27,104, 346, 432
30, 697, 890, 865
34, 697, 757,108
37, 294, 000, 000
Percent Increase
12.0%
9.9%
13.3%
13.0%
7.5%
City Center RDA
3, 871, 409, 731
4,186, 683, 074
4, 821, 643,185
5, 612, 744, 843
6,175, 000, 000
Percent Increase
24.3%
8.1%
15.2%
16.4%
10.0%
Citywide Total
20, 785,167,158
22, 917, 663, 358
25, 876, 247, 680
29, 085, 012, 265
31,119, 000, 000
14
FY 201 7 /18 Draft
Operating Budget
MAMBEACH
• General Fund
TYPES OF FUNDS
• Enterprise Funds — Parking, Sanitation, Water, Sewer and Stormwater, Convention
Center
• Internal Service Funds — Fleet, Property Management, Central Services, Risk
Management, Information Technology, Medical & Dental Insurance
• G.O. Debt Service Fund
• Redevelopment Agency (RDA) Fund
• Special Revenue Funds — examples include Education Compact, Transportation, Arts
in Public Places, Red Light Camera, Wastehaulers, Cultural Arts Council, etc.
• Resort Tax
16
The Current Service Level (CSL) budget represents the cost of
providing the same level of service as in the prior fiscal year and
provides the baseline of funding for the upcoming budget process
• CSL Revenues increased $12.06 million
• CSL Expenditures increased $1 1.39 million
• Net projected surplus of $674,000
• On June 1St received initial property values which increased 7.5 percent
over last year
— Final property values are expected July 1st
17
General Fund FY2017/18 CSL Budget
FY 2016/17 FY 2017/18
General Fund Revenues Adopted Proposed $ Variance % Variance
Property Tax Revenue
Ad Valorem 159,950,000 171,637,968 11,687,968 7.3%
Renewal & Replacement 662,000 708,000 46,000 6.9%
Normandy Shores 169,000 169,000 - 0.0%
Non - Property Tax Revenue
Other Taxes 23,732,000 22,448,640 (1,283,360)
Licenses and Permits 30,244,000 29,778,000 (466,000)
Intergovernmental 11,439,000 11,251,227 (187,773)
Charges f o r Services 12,174, 000 11, 509, 000 (665, 000)
Fines & Forfeits 1,799,000 1,527,783 (271,217)
Rents & Leases 6,426,000 5,969,000 (457,000)
Miscellaneous 13,165, 000 15,197, 000 2,032,000
Resort Tax Contribution 37,609,000 37,609,000 -
Parking Fund Contribution 6,400,000 6,400,000 -
Other Non - Operating Revenue 13,483,000 15,114,408 1,631,408
- 5.4%
- 1.5%
- 1.6%
- 5.5%
-15.1%
- 7.1%
15.4%
0.0%
0.0%
12.1%
Total 317, 252, 000 329, 319, 026 12, 067, 026
3.8%
Property Tax Revenue
160, 781, 000
172, 514, 968
11, 733, 968
7.3%
Non Property Tax Revenue
156, 471, 000
156, 804, 058
333,058
0.2%
Percent Property Tax
51%
52%
18
EXPENDITURE
General Fund Expenditures
Building
CIP
City Attorney
City Clerk
City Manager
Code Compliance
Communications
Emergency Management
Enviornment & Sustainability
Finance
Fire
Housing & Community Services
Human Resources
Internal Audit*
Mayor and Commission
OBPI
ODPI
Parks & Recreation
Planning
Police
Procurement
Public Works
TCED
Citywide Accounts
Internal Service Allocation
Capital Renewal & Replacement
FY 2016/17
Adopted
15,146, 000
5,051,000
5,370,000
1,560,000
3,625,000
5,845,000
1,995,000
9,509,000
1,064,000
5,746,000
71, 938, 000
2,798,000
2,780,000
923,000
2,093,000
1,576,000
629,000
31, 934, 000
4,156, 000
104, 470, 000
2,258,000
14, 698, 000
3,680,000
17, 746, 000
662,000
FY 2017/18
Proposed
15,447, 000
5,151, 000
5,707,000
1,656,000
4,041,000
5,984,000
2,093,000
10,448, 000
1,263,000
6,047,000
75, 235, 000
3,298,000
2,903,000
961,000
2,312,000
1,616,000
655,000
32, 962, 000
4,424,000
109, 825, 000
2,403,000
16, 052, 000
3,993,000
12, 854, 000
607,000
708,000
$ Variance % Variance
301,000 2.0%
100,000 2.0%
337,000 6.3%
96,000 6.2%
416,000 11.5%
139,000 2.4%
98,000 4.9%
939,000 9.9%
199,000 18.7%
301,000 5.2%
3,297,000 4.6%
500,000 17.9%
123,000 4.4%
38,000 4.1%
219,000 10.5%
40,000 2.5%
26,000 4.1%
1,028,000 3.2%
268,000 6.4%
5,355,000 5.1%
145,000 6.4%
1,354,000 9.2%
313,000 8.5%
(4,892,000) -27.6%
607,000
46,000 6.9%
Total
317,252,000
328, 645, 000 11, 393, 000
3.6%
Surplus
674,026
674,026
19
Budget Challenges
MAMBEACH
FY2017/18 GENERAL FUND
CSL BUDG
• Projected Revenues: $12.06M
(Increased by $383,000 for Millage Rate Transfer from Debt Service Reduction)
Pending finalization of Administrative Fees
• Projected Expenditures: $11.39M
• Projected Surplus: $674,000
21
BEST PRACTICE
• Reduce Contribution from Parking Fund by
$4.4M (Reduction in Revenues)
• Purchase Motor Vehicle and Equipment
Replacements with Cash versus Equipment
Loan (Increase in Expenditures by $2.2M)
• Would Result in a General Fund Gap of
$5.9M
22
FY201 7/18 2% RESORT TAX
CSL BUDGET
• Projected Revenues: $56.1M
• Projected Expenditures: $59.6M
— Pending final Administrative Fee Transfer to the
General Fund
• Projected Gap: $3.5M
— Potential gap of up to $5.6M with Administrative
Fee transfer to General Fund
23
FY201 7/18 CSL BUDGET
ADMINISTRATIVE FEES
• General Fund Revenue projections are pending final
Administrative fees
• Option A:
— General Fund Surplus: $2.1M
— Resort Tax Gap: $5.6M
• Option B:
— General Fund Surplus: $22K
— Resort Tax Gap: $3.5M
Fund
425
425
427
435
440
480
463
465
168
160
Proposed FY 2017/18 Adminstrative Fees
Department
Water
Sewer
Stormwater
Sanitation
Convention Center
Parking
Anchor Garage
Anchor Shops
City Center & RDA
Resort Tax
466 & 467 Penn Garage and Shops
480 Parking ROW fees
168 RDA CMB Contribution
FY 2016/17
Adopted
1,473, 000
2,507,000
673,000
1,206,000
293,000
2,080,000
242,000
18,000
984,000
272,000
81,000
2,381,000
407,000
12, 617, 000
FY 2017/18
Proposed
758,000
1,053,000
1,203,000
1,650,000
572,000
3,252,000
102,000
6,000
380,000
2,383,000
25,000
2,285,000
407,000
14, 076, 000
Variance
(715, 000)
(1,454,000)
530,000
444,000
279,000
1,172, 000
(140, 000)
(12, 000)
(604, 000)
2,111, 000
(56, 000)
(96, 000)
1,459,000
2
RESORT TAX FUNDING OPTIONS
• Release $1 OM Appropriated in Light Rail Project
• Release the Additional 1 Month Reserve ($1.6M)
• Reduce Transfer to Sanitation Fund by Half
($1.8M)
• Reduce Transfer to Greater Miami Convention
and Visitor Bureau (Section 4.01 (i) of Contract)
25
RESORT TAX FUNDING OPTIONS
Fully Fund FY2017/18 Resort Tax CSL Gap of
$3.493 million
Option 1:
Release Funds from Light Rail Capital Project
Fund FY2018 Gap
Resort Tax Available Balance
$ 10, 000, 000
$ (3,493,000)
$
6,507,000
Option 2:
Take Projected Balance Available from 6% Reserve $ 1,612,104
Reduce General Fund Subsidy $ 1,880,896
$
3,493,000
Option 3:
Take from FY2017/18 Sanitation Fund Contribution $ 3,671,000
Revised FY2017 /18Sanitation Fund Contribution $ 178,000
$
3,493,000
Fully Fund FY2017/18 Resort Tax CSL Gap of
$5.604 million * **
Option 1:
Release Funds from Light Rail Capital Project
Fund FY2018 Gap
Resort Tax Available Balance
Option 2:
Take Projected Balance Available from 6% Reserve
Reduce FY2017/18 High Impact Period Funding (Special Events)
Reduce FY2017/18 Sanitation Fund Contribution
10, 000, 000
(5,604,000)
4,396,000
1,612,104
320,896
3,671,000
5,604,000
26
FY201 7/18 PARKING
CSL BUDG
• FY1 7 Budgeted Transfer to the General
Fund: $6.4M (FY18: $6.4M)
• FY1 7 Budgeted Transfer to the Transportation
Fund: $2.5M (FY18: $4.6M; $2.1 M )
27
PARKING FUNDING OPTIONS
Amount Available after Funding FY18 Capital Projects
FY17 Projected Surplus (Q2)
FY17 Projected Transfer to Fund Balance for R &R (Q2)
Projected Fund Balance on 10/1/17
Liieserves[ et lsideC rsIbill9/30/16
11% Reserve
6% Reserve
Uwe fully Transfer SC.4M to GU
Option 1:
Take From FY17 YE Surplus & F.B.
Take from FY17 Set Aside for R &R
Option 2:
Take From FY17 YE Surplus & F.B.
Take from FY17 Set Aside for 6% Reserve
Option 3:
Take From FY17 YE Surplus & F.B.
Take from FY17 Set Aside for R &R
Take from FY17 Set Aside for 6% Reserve
1,388,459
1,472,900
7,572,000 Set aside for replacement items
8,960,459
4,944,390
2,696,940
2,861,359
1,538,641
4,400,000
2,861,359
1,538,641
4,400,000
1,538,641
1,430,680
1,430,680
4,400,000
28
FY 2017/18 SECURITY GUARD
CSL BUDGET
• FY 201 6/17 Budget: $4.65M
• FY 2017/18 Budget Request: $5.09M
(Based on Current Locations)
• Funding Gap: $442,987
($382,398 in General Fund)
29
EDUCATION COMPACT UND
• At end of FY 2017/18, Education Compact fund is expected to experience a
$330,000 shortfall if all enhancement requests are funded
Projected Fund Balance at end of FY17 $4,301
FY18 Projected Revenues
Contributions - Intl Baccalaureate (IB)
Contributions - Education Support (Waste Haulers)
Contributions - Chamber Donation for IB (No contractual commitment but annually recurring)
Total Revenues
FY18 Projected Expenses
IB
Miami -Dade Public Schools Agenda Planners
Substitute Teacher Incentive Program
Total Expenditures
FY18 Proposed Revenues vs. CSL Expenditures
FY18 Budget Development Enhancement Requests
VPK - Year 3 1 School Year 2018 -2019
FIU Dual Enrollment Program 1 School Year 2018 -2019
Nurse Initiative - Behavioral Health (Note 2) 1 School Year 2018 -2019
Education Compact Expanded Clerical Support (Note 3)
MDC Dual Enrollment Program 1 School Year 2018 -2019
Common Threads (Note 1)
Nurse Initiative w/ Surfside, Bal Harbour, Bay Harbor, North Bay Village, Miami Beach Chamber (Per
Reso # 2016 - 29345) 1 School Year 2018 -2019
Anti - Defamation League - No Place For Hate
Total FY18 Enhancement Requests
Total Education Compact Related Expenditures
FY18 Proposed Revenues vs. CSL Expenditures with Enhancements
Projected Fund Balance at end of FY18
$15,000
$75,000
$10,000
$100,000
$50,000
$18,000
$3,000
$71,000
$29,000
$141,000
$62,000
$54,000
$39,000
$28,000
$19,000
$16,000
$4,000
$363,000
$434,000
($334,000)
($329,699)
30
ITENTIA TUBE RISK FACTORS
• Boom /bust real estate cycles in South Florida
• Increased reliance on Resort Taxes
• Collective Bargaining Agreement impacts
• Potential reduction in revenues based on vote to increase
Homestead Exemption
31
FY1 8 Enhancements
MAMBEACH
FY18 ENHANCEMENTS
ENERAL FUND
• City Prosecutor - $72,000
• In -House Operations of North Shore Tennis
Center - $115,000
FY1 8 ENHANCEMENTS
RESORT TAX
• Homeless Trust Fund - $3.5M
• Special Events Art Deco
— Youth Music Festival
— 4th of July Fireworks at North Beach
• Holiday Lighting - $700,000
34
FY1 8 ENHANCEMENTS
TRANSPORTATI O N
• Transit Extension to Omni - $2.134M
• Express Trolley Service - $1.650M
35
• Finance and Citywide Projects Committee
meetings —full Commission
-July 10th
• General Fund budget including enhancements,
efficiencies, and revenue adjustments
-July 21St
• Finalize operating and capital budgets
36
• Set preliminary millage rate on July 28th
• Two budget hearings in September
— September 13t" and September 25t"
- Tentative millage rate at first public hearing
—Final millage rate at second public hearing
37
Strategic Plan Update
MAMBEACH