LTC 475-2017 Third Quarter Analysis of Budget to Actual Reveg BN1IAMIBEACH
OFFICE OF THE CITY MANAGER
No. LTC# ��5_2017
�
I�Z�7►�I
DATE
LETTER TO COMMISSION
Mayor Philip Levine and Members of the City
Jimmy L. Morales, City Manager
September 29, 2017
r�mission
SUB�ECT: THIRD QUARTER ANALYSIS O� BUDGET TO ACTUAL
EXPENSES FOR THE NINE MONTHS ENDING JUNE 30, 2017,
BUDGET PROJECTIONS THROUGH SEPTEMBER 30, 2017
REVENUES AND
WITH OPERATING
The purpose of this LTC is to provide the Mayor and Commission with the status of the FY
2016/17 budget to actual revenue and expenses reflected at the end of the third quarter with
projections through September 30, 2017. The City's Charter requires that "the City Manager
shall make public a quarterly report showing the actual expenditures during the quarter just
ended against one quarter of the proposed annual expenditures set forth in the budget."
At this stage of projecting revenues and expenditures for year-end of the current fiscal year,
there are items that remain pending in the City's financial management system. However, with
nine full months of data, we have more clarity of what the issues could be at year-end. It should
be noted that this analysis is a preliminary projection that will be updated after the year-end
numbers are available in October.
The First FY 2016/17 budget amendment, adopted by the City Commission on November 18,
2016, recognized a preliminary year-end surplus of $4.558 million. Of this surplus, $2,230,250
was allocated to the 11 percent emergency reserves, $1,092,000 funded encumbered and
unencumbered rollover requests, and the remainder, which was $1,235,750, was set aside to
supplement the 6 percent optional emergency reserves. The Second Budget Amendment,
approved on February 8, 2017, added $445,740 from other sources to the General Fund,
$733,260 from General Fund Balance, realigned $491,000 within the General Fund, and
appropriated $1,218,000 to the Special Revenue Funds. The Third FY 2016/17 budget
amendment was adopted by Commission on April 26, 2017 and appropriated $7,111,389 to the
Enterprise Funds, $297,000 to the Special Revenue Funds, and realigned $70,000 within the
General Fund.
Accordingly, the projections presented below are compared to the amended budget including
the three budget amendments adopted by Commission to-date.
GENERALFUND
Based upon this third quarter analysis, it is projected that General Fund revenues will exceed
expenditures bv $4,351,000, which is $3,724,000 higher than the $627,000 surplus projected in
the first quarter analysis and $1,616,000 higher than the $2,735,000 surplus projected in the
second quarter analysis. Please note that the third auarter qroiections do not include the fiscal
impact of Hurricane Irma.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page2of12
General Fund Overview
An analysis of the actual nine-month operating revenues and expenditures for the period
October 1, 2016 through June 30, 2017, reveals an operating budget surplus of $51.3 million.
While the surplus as of June 30th 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 three quarters (historically 90-100 percent). Ad valorem tax
revenues represent approximately 50 percent of total budgeted revenues and represent
approximately 58 percent of the revenues received through the third quarter of the fiscal year.
Actuals as of Amended Budget
General Fund Adopted Budget Amended Budget 3/4 of Amended Budget 6/30/2017 O�.er /(Under)
Reeenues $ 317,252,000 $ 319,523,000 $ 239,642,250 $ 271,234,784 $ 31,592,534
Expenditures $ 317,252,000 $ 319,523,000 $ 239,642,250 $ 219,887,042 $ (19,755,208)
� Surplusl (Gap) $ 51,347,742 �
As of June 30, 2017, revenues collected were approximately 84.9 percent of budget or $271.2
million. Conversely, actual expenditures were approximately 68.8 percent of budget or $219.9
million; however, there are often delays in the processing of expenditures until close-out of the
fiscal year.
General Fund Year-End Projections
The projected year-end operating revenues and expenditures through September 30, 2017
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 June 30 2017,
some of the projections have incorporated more recent information, if available. It is important
to note that the third auarter proiections do not include the fiscal imaact of Hurricane Irma, as
departments submitted their proiections weeks before this event. The Budget Office is actively
working with each department to assess how the emergency expenditures related to the
hurricane will impact the numbers being presented at this point.
A summary of preliminary projected General Fund Revenues and Expenditures as of
September 30, 2017, reflects a proiected surplus of revenues over exqenditures totalina
$4,351,000, which is $1,616,000 higher than the $2,735,000 surplus projected in the second
quarter analysis. It should be noted that this analysis is a preliminary projection that will be
updated after the projected year-end numbers are available in October.
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 2016/17 to be slightly below
budget by $614,000. It is important to note that in the last few years, property tax collections
have been below prior year levels due to higher levels of appeals and adjustments.
Overall revenues are projected to be 0.5 percent or $1,628,000 below the amended budget. As
in prior years, significant variances to budget in excess of $300,000 or 10 percent by revenue
category are explained below:
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 3 of 12
Other Taxes — This category includes franchise and utility taxes on electricity, gas, fuel,
cable-television and telephones. Collections are projected to be 1.7 percent or $393,000
below the amended budget due to declining costs and usage rates.
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 the amended budget by 4.5 percent or $1,377,000 primarily due to increases in
revenues collected for building permits, certificates of occupancy, elevator inspections and
planning and fire plans reviews from building activities.
Charges for Services — This category includes ambulance fees, off duty charges for fire
and police, golf course fees, as well as various parks and recreation fees. Actual collections
are projected to be below the amended budget by 7.6 percent or $928,000, primarily due to
a reduction in revenues by the golf courses. Due to less visitors as a result of the
Convention Center renovation project, there has been a significant reduction in business at
the Miami Beach Golf Club. In addition, $300,000 in funds from the Children's Trust, which
were previously budgeted in the General fund, are now being deposited in a separate
Special Revenue Fund for grants management purposes.
Fines and Forfeits — This category includes traffic and parking fines, building code
violations, code enforcement violations, and is projected to be below the amended budget
by 18.5 percent or $332,000. This is primarily due to lower revenue recognition in Building
Code Violations, which was originally expected to rebound in the second half of the fiscal
year, but due to vacancies in the department, revenues have continued to trend similar to
the first half of the fiscal year.
Interest — This category includes interest revenues for all investments, repurchase
agreements, pooled cash, as well as unrealized gain/loss revenues for investments held
both less than a year and over a year. Revenues are projected to be below the amended
budget by $878,000, primarily due to a decrease in interest revenues on current
investments.
Rents and Leases — This category includes revenues from various rentals and leases
realized from City owned properties. Projected collections are 8.4 percent or $537,000
lower than the amended budget primarily due to changes in contract terms for Colony
Theater ($190,000) and Live Nation ($142,000).
Miscellaneous — This category includes revenue from various categories such as
concessions, reimbursements and miscellaneous revenue categories like beach access
fees and sale of city property. Projected collections are 7.7 percent or $969,000 higher than
the amended budget primarily due to an increased projection in Design Review fees
($915,000) from planning and building activities.
General Fund Operating Expenditures
As of June 30, 2017, actual expenditures were approximately 68.8 percent of budget or $219.9
million. Year-end projections through September 30, 2017 indicate that expenditures will be
$313.5 million, approximately 1.9 percent or $6.0 million below the amended budget. The
expenditure projections are based through the third quarter and will be updated once the year-
end transactions are posted.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 4 of 12
A comparison of actual and projected expenditures to budget by Department is provided in the
attached Schedule A. As in prior years, departments projected to exceed budget or with
significant variances to budget in excess of $300,000 or 10 percent are explained below:
Building — The department is projected to be $1,329,000, or 8.8%, below the amended
budget primarily due to savings in professional services for usage of contracted inspectors,
as well as personnel services expenditures resulting from budgeted positions which have
been vacant throughout the year. Positions in the Building Department are highly
specialized and require specific credentials, which results in positions being vacant for
extended periods of time while the department searches for qualified candidates to fill them.
� .
Variance
Projected vs Amended
Amended Budget Projected Budget % O�,er /(Under)
Expenditures $ 15,083,000 $ 13,754,000 $ (1,329,000) -8.8%
Communications — The department is projected to be $70,000, or 3.5%, above the
amended budget primarily due to three (3) positions which were added mid-year for a Media
Assistant to produce original programming for the City's government access television
station, a Community Resources Coordinator to ensure that goals and objectives of projects
are accomplished, and a temporary Visual Communications Specialist for photography, in
conjunction with the reclassification of budgeted positions.
Amended Budget
Expenditures $ 1,995,000 $
Variance
Projected vs Amended
Projected Budget
2, 065, 000 $ 70, 000
% O�er / (Under)
3.5%
Emergency Management — The department is projected to be $599,000, or 5.8%, above
the amended budget primarily due to increases in the usage of contracted services for
security guard services citywide to enhance public safety, as well as emergency call taker
services due to staffing shortages in the E-911 call center managed by the department's
Public Safety Communications Unit (PSCU). The PSCU is responsible for operating the
City's centralized emergency call center where all emergency calls are received and routed
to the appropriate first responders. Since this unit requires mandatory staffing levels 24
hours per day/7 days per week and the department has been unable to fill numerous
vacancies, the department has relied on outside call taker services and additional overtime
for existing personnel.
Amended Budget
Expenditures $ 10,370,000 $
Variance
Projected vs Amended
Projected Budget
10, 969, 000 $ 599, 000
% O�r / (Under)
5.8%
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 5 of 12
Parks and Recreation — The department is projected to be $605,000, or 1.9%, below the
amended budget primarily due to salary savings and other related personnel services
expenditures. The department has had several vacancies throughout the year, as well as
some turnover in personnel resulting in projected year-end savings.
Variance
Projected vs Amended
Amended Budget Projected Budget % O�,er /(Under)
Expenditures $ 31,934,000 $ 31,329,000 $ (605,000) -1.9%
Police — The department is projected to be $668,000, or 0.6%, below the amended budget
primarily due to savings in regular, court, and holiday overtime for sworn personnel resulting
from organizational changes in the department, as well as several vacancies being filled.
. , Variance
Projected vs Amended
Amended Budget Projected Budget % O�r /(Under)
Expenditures $ 104,401,000 $ 103,733,000 $ (668,000) -0.6%
Public Works — The department is projected to be $1,120,000, or 7.6%, below the
amended budget primarily due to savings in personnel services expenditures resulting from
several vacancies in the department's Engineering and Greenspace Management divisions,
as well as savings in citywide grounds maintenance, which include all right-of-ways and city
facilities, resulting from additional maintenance being conducted internally by existing
department personnel.
. .
Variance
Projected vs Amended
Amended Budget Projected Budget % O�,er /(Under)
Expenditures $ 14,746,000 $ 13,626,000 $ (1,120,000) -7.6%
Citywide Accounts — The Citywide budget is projected to be $1,255,260, or 6.6%, below
the amended budget primarily due to savings in accumulated leave settlements and excess
pension plan costs totaling $813,000. In addition, savings of $247,000 are also projected for
tuition assistance reimbursements resulting from lower participation in the program than
originally anticipated.
�- .
Variance
Projected vs Amended
Amended Budget Projected Budget % O�,er /(Under)
Expenditures $ 18,899,260 $ 17,644,000 $ (1,255,260) -6.6%
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 6 of 12
ENTERPRISE FUNDS
The City accounts for proprietary operations in Enterprise Funds. Sanitation, Sewer,
Stormwater, Water, Parking, and Convention Center 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 nine-month operating expenditures for the period October 1, 2016
through June 30, 2017, reveals that all enterprise funds have expenditures less than three-
quarters of their budget. However, this may not be fully representative of expenditure trends, as
there is often a lag in expenditures, particularly related to those billed by outside entities.
FY 2016/17 Adopted Budget
Budget Amendment - 11/18/16
Budget Amendment - 02/OS/17
Budpet Amendment - 04/26/17
� FY 2016/17 Amended Budqet
�
3/4 Adopted Budget
3/4 Amended Budqet
�Expenditures as of 6/30/2017
Expenditures Above/(Below) Amended Budget
% Variance
Sanitation Sewer
20,624,000 54,156,000
262,000 516,000
- 700,000
20,886,000 55,372,000
15,468,000 40,617,000
15,664,500 41,529,000
13,671,355 36,057,502
(1,993,145) (5,471,498)
-9.5% -9.9 %
Storrtmater Water Parking
28,334.000
198,000
28,532,000
21,250,500
21,399,000
13,281,942
(8,117,058)
-28.4 %
34,402,000 60,815,000
393,000 553,000
420,000 -
35,215,000 61,368,000
25,801,500 45,611,250
26,411,250 46,026,000
23,456,532 37,166,377
(2,954,718) (8,859,623)
-8.4 % -14.4 %
Convention
Center
11,038,000
5,991,389
17,029,389
8,278,500
12,772,042
9,327,957
(3,444,085)
-20.2%
The projected year-end operating revenues and expenditures through September 30, 2017, is,
however, a more realistic snapshot of any anticipated surplus or shortfall at this point in time. In
addition, while the actual revenues and expenditures presented are as of June 30, 2017, the
projections have incorporated more recent information, as available.
As represented below, revenues are projected to be equivalent or in excess of expenditures for
all funds.
Sanitation Sewer Stormwater Water Parking Convention
Center
FY 2016/17 PROJECTED REVENUES
ChargesforServices 16,141,000 50,495,000 28,480,000 34,951,000 48,776,000
Other 5,02Q000 1,597,000 595,000 1,265,000 8,636,000 15,623,000
FY2016/17 Revenue Projection 21,161,000 52,092,000 29,075,000 36,216,000 57,412,000 15,623,000
FY 2016/17 Expenditure Prolection 2Q049,000 51,843,000 22,500,000 34,576,000 56,549,000 15,623,000
Surplus/(Shortfall) 1,112,000 249,000 6,575,000 1,640,000 863,000 0�
Proiected Expense versus Budpet (837,000) (3,529,000) (6,032,000) (639,000) (4,819,000) (1,406,389)�
As in prior years, departments projected to exceed budget or with significant variances to
budget in excess of $300,000 or 10 percent are explained below:
Sanitation — The department is projected to be $837,000, or 4%, below the amended
budget primarily due to savings in personnel services expenditures resulting from numerous
vacant positions that the department has been unable to fill. In addition, savings are also
projected for residential solid waste collection services resulting from a lower rate per unit
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 7 of 12
than originally anticipated. The Sanitation fund is projected to net an overall surplus of $1.1
million as of year-end.
Sewer — The Sewer Division is projected to be $3,529,000, or 6%, below the amended
budget primarily due to savings in sewer treatment fees and deferral of the 2017 Water and
Sewer bond issuance. The projected savings in sewer treatment fees is attributed to new
construction projects being designed with contractors being responsible for dewatering
costs. Increased oversight of ongoing projects has also reduced the number of contractors
pumping ground water directly into the City's sewer system thereby reducing future impacts
to the City. Similarly, the projected savings in debt service costs is mainly due to unforeseen
delays in preparation of the bond feasibility studies and engineering reports that needed to
be completed prior to issuance of the bonds. As a result of the delays, the bonds are not
expected to be issued in fiscal year 2017. Overall, the Sewer fund is projected to net a year-
end surplus of $249,000 as of year-end.
Water — The Water Division is projected to be $639,000, or 2%, below the amended budget
primarily due to savings resulting from deferral of the 2017 Water and Sewer bond issuance
resulting from unforeseen delays in preparation of the bond feasibility studies and
engineering reports that needed to be completed prior to issuance of the bonds. As a result
of the delays, the bonds are not expected to be issued in fiscal year 2017. The Water
Enterprise fund, as of year-end, is projected to net a surplus of $1.6 million.
Storm Water — The Storm Water Division is projected to be $6,032,000, or 21 %, below the
amended budget primarily due to savings resulting from deferral of the 2017 Storm Water
bond issuance resulting from unforeseen delays in preparation of the bond feasibility studies
and engineering reports that needed to be completed prior to issuance of the bonds. Like
the Water and Sewer bonds, the Storm Water bonds are not expected to be issued in fiscal
year 2017. Overall, the Storm Water fund is projected to net a year-end surplus of
$6,575,000 as of year-end.
Parking — The Parking Enterprise Fund is projected to be $4,819,000, or 8%, below the
amended budget primarily due to $1.7 million in savings resulting from transportation
operations, specifically trolley operations, which were delayed in FY2016/17. The Parking
Department partially subsidizes transportation operations throughout the City. Overall, the
Parking Enterprise is projected to net a surplus of $863,000 as of year-end.
Convention Center — The department is projected to be $1,406,389, or 8%, below the
amended budget due to the unexpected loss of three events during the current fiscal year
(FIME, Maison, and Supercon) resulting from the ongoing Convention Center Renovation
Project. Overall, expenditures are projected to exceed revenues by $1.5 million, which will
require the usage of prior year fund balance at year-end.
INTERNAL SERVICE FUNDS
The City accounts for those goods and services provided by one Department to other
Departments citywide on a cost reimbursement basis as Internal Service Funds. Central
Services, Fleet Management, Information Technology, Property Management, Risk
Management, and Medical & Dental Insurance (Seff Insurance) are included in this grouping.
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 8 of 12
An analysis of the actual nine-month operating expenditures for the period October 1, 2016
through June 30, 2017 reveals that all funds have expenditures less than three-quarters of the
FY 2016/17 Amended Budget, except for Fleet Management.
FY 2016/17 Adopted Budget
Budget Amendment - 11/18(16
Budget Amendment - 02/OS/17
Budqet Amendment - 04/26/17
�Amended Budqet
3/4 Adopted Budget
3/4 Amended Budqet
�Expenditures as of 6/30/2017
Expenditures Above/(Below) Amended Budget
% Variance
CenVal Services Fleet Information Property Risk
Management Technology Management Management
1,015,000 9,547,000 16,828,000
50,000 202,000
1,015,000 9,597,000 17,030,000
761,250 7,160,250 12,621,000
761,250 7,197,750 12,772,500
708,218 7,401,170 10,346,784
(53,032) 203,420 (2,425,716)
-5.2% 2.1% -142%
8,409,000 17,580,000
- 5,000
8,409,000 17,585,000
6, 306, 750 13,185,000
6,306,750 13,188,750
5,066,711 9,227,236
(1,240,039) (3,961,514)
-14.7 % -22.5 %
Medical &
Dental
Insurance
3Q532,000
30,532,000 �
22,899,000
22,899,000
21,156,280 �
(1,742,720)
-5.7 %
Based on the more realistic projection of year-end operating revenues and expenditures through
September 30, 2017, and incorporating more recent information as available, all Internal Service
Funds are expected to have revenues equal to or in excess of expenditures.
FY 2016l17 PROJECTED REVENUES
Charges for Services
Other
FY 2016/17 Revenue Projection
FY 2016/17 Expenditure Prolection
Surplus/(Shortfall)
Fleet Information Property Risk Medical &
Central Services Management Technology Management Management Dental
Insurance
639,000 8,853,000 15,801,000
360,000 535,000 733,000
999,000 9,418,000 16,534,000
999,000 9,418.000 16,534,000
0 0 0
8,180,000 16,861,000 30,664,000
18,000 172,000 853,000
8,198,000 17,033,000 31,517,000
8,198,000 17,033,000 30,532,000
0 0 985,000
�Prolected Expense versus Budpet (16,0001 (179,000) (496,000) (211.0001 (552,000) 0 �
As in prior years, departments projected to exceed budget or with significant variances to
budget in excess of $300,000 or 10 percent are explained below:
Risk Management — The department is projected to be $552,000, or 3%, below the
amended budget primarily due to projected savings in property insurance expenditures
resulting from the ongoing Convention Center renovation project. While the project is under
construction, funding is to be re-allocated in order to fund the builder's risk policy. Overall,
revenues are projected to equal expenditures as of year-end.
Information Technology — The department is projected to be $496,000, or 3%, below the
amended budget primarily due to savings in personnel related expenditures resulting from
several department vacancies throughout the year, as well as savings in miscellaneous
operating expenditures. As a result, expenditures are projected to equal expenditures as of
year-end.
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for revenues and expenditures that are legally
restricted or committed for specific purposes other than debt or capital projects. Special
Revenue Funds include the Resort Tax fund as well as 7th Street Garage Operations; 5th &
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 9 of 12
Alton Garage Operations; Art in Public Places; Tourism and Hospitality Scholarship Program;
Green/Sustainability Fund; Waste Hauler Additional Services and Public Benefit Contribution
Fund; Education Compact Fund; Red Light Camera Fund; Emergency 911 Fund; Information
and Communications Technology Fund; People's Transportation Plan Fund; Concurrency
Mitigation Fund; Miami Beach Cultural Arts Council; Police Special Revenue Account; Police
Confiscation Trust Funds (Federal and State); and Police Training and School Resources Fund.
All special revenue funds are projected to be at or below their amended budgets as of year-end.
More detailed information is provided for the Resort Tax fund below.
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.
The 2 percent Resort Tax Fund operating revenues are projected to be lower than budget by
approximately $3,398,000 due to revenues continuing to trend lower than budget as a result of
ongoing economic stresses adversely impacting tourism citywide. By the same token,
expenditures are projected to be lower than budget by $1,103,000, primarily resulting from
savings in personnel service expenditures in the amount of $617,000. These savings are due to
the additional Code Compliance Officer and Police Officer positions that were added as
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 10 of 12
enhancements for FY2016/17 that were not filled at the time that was originally anticipated.
Additional savings in operating expenditures are projected due to one-time savings in the build-
out of the City's centralized call center, as well as machinery and equipment for the Police
Department's Entertainment District Unit and contributions to the Miami Beach Visitors and
Convention Bureau, which are based on actual revenues collected.
The proceeds of the one percent (1 percent) tax are used as follows: 45% allocated for
Transportation initiatives in tourist-related areas; 15% allocated equally among North Beach,
Middle Beach and South Beach for capital projects that enhance Miami Beach's tourist related
areas, and 10% allocated to various arts and cultural programs. The 1 percent Resort Tax Fund
operating revenues are projected to be lower than budget by approximately $926,000. All
revenues collected are to be transferred based on the allocations previously mentioned;
therefore, the transfers to Transportation, the Arts, and North, Middle, and South Beach Quality
of Life are projected to be lower than budget by approximately $926,000.
The proceeds of the additional one percent (1 percent) tax for the Convention Center is to be
used strictly for the repayment of debt that was issued in 2015 in the amount of approximately
$200 million for renovation of the Miami Beach Convention Center. The 1 percent Resort Tax
Fund operating revenues are projected to be lower than budget by approximately $926,000.
FY2016/17 debt service expenditures are projected to be $12,452,000 and the balance of
$926,000 will be set-aside in escrow for debt service coverage.
Revenues
2°/o Resort Tax
1% Resort Tax
Ariditional 1% for Convention Center
Transfer in from Fund Balance
Total Revenues
Expenditures
General Fund Contribution
Contributions to VCAand GMCVB
Contribution to Mt. Sinai
Other Operating/Other Uses
Marketing
Contingency
Priditional 1% Debt Service for Convention Center
Transfer to Capital, Transp, and Arts
Total Expenditures
Surplus / (Gap)
RESORT TAX FUND
Amended ,q�tuals as of June FY 2016/17 Year-
FY 2016/17 30, 2017 End Projection
Budget
Over/(Under) %
Amended Over!(Under)
Budget as of Amended
Year-End Budget
59,657,000 4Q894,820 56,258,500 (3,398,000) -5]%
14,065,000 9,769,666 13,139,000 (926,000) -6.6%
14,065,000 9,769,666 13,139,000 (926,000) -6.6%
1,755,000 0 1,755,000 (Ol 0.0%
89,542,000 60,434,151 84,291,500 (5,250,000) -5.9%�
37,609,000 28,206,750 37,609,000 - 0.0%
9,332,000 5,916,657 9,335,000 3,000 0.0%
1,000,000 0 1,000,000 - 0.0%
13,091,000 5,853,350 12,014,500 (1,077,000) -82%
350,000 263,870 350,000 - 0.0%
30,000 0 0 (30,000) -100%
14,065,000 377 13,139,000 (926,000) -6.6%
14,065,000 9,769,666 13,139,000 (926,0001 -6.6%
89,542,000 50,010,670 86,586,500 (2,955,000) -3.3%�
0 10,423,482 (2,295,000) �
In total, projected revenues are estimated to be less than budget by $5.25 million and
expenditures to also be lower than budget by approximately $2.95 million. The result is a
projected net operating gap of approximately $2.3 million for the 2 percent, 1 percent, and
additional 1 percent revenues and expenditures, combined.
CONCLUSION
This analysis of budget to actual operating revenues and expenses with projections through
September 30, 2017, provides the status of the FY 2016/17 Budget for the first nine months of
the fiscal year. Although the first nine months of any fiscal year do not provide a definitive
indication of where we will be at year-end, we have more clarity of what the potential issues
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 11 of 12
could be at year-end.
Based on preliminary projections, the General Fund is anticipated to have a$3.2 million surplus
at vear-end, which is $2,624,000 higher than the $627,000 surplus projected in the first quarter
analysis and $516,000 higher than the $2,735,000 surplus projected in the second quarter
analysis. At this time, all other funds are projected to either break even or net a surplus. It
should be noted that this analysis is a preliminary projection, which does not include the fiscal
impact of Hurricane Irma, and will be updated after the year-end numbers are available in
October.
C �'
JLM/`�OS
LTC - Analysis Of Budget To Actual Revenues And Expenses For The Nine Months Ending June 30,
2017, With Operating Budget Projections Through September 30, 2017
Page 12 of 12
CITYOF MIAMI BEACH
FY 2016/17 GENERAL FUND
3rd QUARTER
REVENUES
Ad Valorem Taxes
Ad Valorem Tazes - Capital Renewal & Replacement
Ad Valorem Tazes - Normandy Shores
OtherTaxes
Licensesand Permits
Intergovernmental
Charges for Services
Golf Courses
Fines and Forfeitures
Interest
Rents and Leases
Miscellaneous
Other-Resort Tax CoMribution
OthervNomOperating Revenues
Fund Balance/Retained Eamings
Transfer in from South Pointe RDA
Transfer i n from Proceeds from Segafredo Colony Cafe
Lease
PriorYearSurplusfrom Parking Fund
TOTALREVENUES
EXPENDITURES
Building
Capital Improvement Projects
City Attorney
City Clerk
City Manager
Code Compliance
Communications
Emergency Management
Environment & Susiainability
Finance
Fire
Housing & Comm Services
Human Resources/Labor Relations
Mayor and Commission
Office of Budget & Performance Improv
Organizational Development &Perf Initiatives
Parks and Recreation
Planning
Police
Procure me nt
Public Works
Tourism, Cultural, & Economic Development
Citywide Accounts & Operating Contingency
Citywide-Normandy Shores
Ci[ywide-Transfers-Info & Comm Technology Fund
Citywide-Transfers-Pay-As-You 6oCapftal Fund
Capital Renewal & Replacement
TOTAL EXPENDINRES
EXCE55 OF REVENUES OVER/(UNDER) EXPENDITURES
SCHEDULE A
Amended %Ac[uai of � • Ouer/(Under) I %Over/(Under)
FV 2016/17 Actuals as of
FY 2016/17 Amended Amended Amended
Adopted Budget gud¢et �une30,2017 gudBet Budget Budget
159,950,OD0
662,000
169,000
23,732,000
30,348,000
11,439,000
6,167,000
6,007,000
1,799,000
2,500,000
6,426,000
12,575,000
37,609,000
11,469,000
0
0
159,950,000
662,000
169,000
23,732,000
30,348,000
11,439,000
6,167,000
6,007,000
1,799,000
2,500,000
6,426,000
12,575,000
37,609,000
11,469,000
1,825,260
370,000
75,740
is�,sso,nz
662,000
169,000
14,321,662
25,709,344
7,826,532
4,346,084
4,525,749
1,014,091
(233,777)
4,663,706
8,689,SS4
28,206,747
8,237,250
0
370, 000
75,740
6,400,000 6,400,000 4,800,000
317,252.000 319,523,000 271.234,784
15,146,OW
5,051,000
5, 370, 000
1,560,000
3,625,000
5,845,W0
1,995,000
9,509,000
1,064,000
5,746,000
71,938,000
2,798,000
2,780,000
2,093,000
2,499,000
629,000
31,934,000
4,156,000
104,470,000
2,258,000
14,698,000
3,680,000
14, 694, 000
257,000
395,000
2,400,000
662,000
317,252,000
0
15,083,000
5,051,000
5,370,000
1,622,000
3,630,000
s,9a�,000
1,995,000
10,370,000
1,223,000
5,816,000
71,938,000
2,798,000
2,780,000
2,283,000
2,658,000
629,000
31,934,000
4,306,000
104,401,000
2,288,000
14,746,000
3,755,740
15,185,260
257,000
395,000
2,400,000
662,000
319,523,000
0
9,795,956
3,457,110
3,502,348
1,065,581
2,641,224
4,153,952
1,407,953
7,422,779
679,411
3,880,792
52,369,300
1,780,201
1,887,001
1,475,761
1,595,298
aas,na
21,214,283
3,077,890
78,387,291
1,601,425
8,732,771
2,727,452
6,625,486
0
0
0
0
219.887,042
51,347,742
98.7%
100.0°�
100.0°/
603%
84.7°h
68.4%
70.5%
753%
56.4%
-9.4%
72.6%
69.1%
75.0°�
71.8%
0.0%
100.0°h
100.0'h
159,336,000
662,000
169,000
23,339,000
31,725,000
11,263,000
5,705,000
5,541,000
1,467,OW
1,622,000
5,889,000
13,544,660
37,609,000
11,353,000
1, 825, 260
370,000
75,740
159,336,000
662,000
169,000
23,339,000
31,725,000
11,263,000
5,705,000
5,541,000
1,467,000
1,622,000
5,889,000
13,544,000
37,609,000
11,353,000
1,525,000
370,000
76,000
( 614, 000)
0
0
(393,000)
1,377,000
(176,000)
(462,OW)
(466,000)
(332,000)
(878,000)
(537,000)
969,000
0
(116,000)
(260�
(0)
260
75.0°� 6,400,000 6,400,000 0
84.9% 317.895,660 317,895,000 (1,628.000)
64.9°h
68.4°6
65.2°,fi
65.7%
72.8%
69.8°h
70.6°h
71.6°h
55.6%
66.7°h
72.8%
63.6°k
67.9%
64.6°h
60.0°h
64.5%
0.66
71.5%
75.1%
70.0%
59.2°6
72.6°h
43.6%
0.0°�
0.0%
0.0°h
0.0°h
68.8%
13,754,000
4,756,000
5,285,000
1,537,000
3,600,000
s,szo,aoo
2,065,000
10,969,000
1,130,000
5,527,900
71,803,000
2, 686,100
2,690,000
2,187,500
2,490,000
617,000
31,329,000
4,298,200
103,733,000
2,259,000
13,626,000
3,734,700
13,929,401
257,000
395,000
2,400,000
662,000
313,540,801
4,354,859
13,754,000
4,756,C00
5,285,000
1,537,000
3,600,000
5,820,000
2,065,000
10,969,000
1,130,000
5,528,000
71,803,000
2,687,000
2,690,000
2,158,000
2,490,000
617,000
31,329,000
4,299,000
103,733,000
2,259,000
13,626,000
3,735,000
13,930,000
257,000
395,000
2,400,000
662,000
313,544,000
4,351,000
(1,329,000)
(295,000)
(85,000)
(85,000)
(30,000)
(127,000)
70,000
599,000
(93,000)
(288,000)
(135,000)
( ll1,000)
(90,000)
(95,000)
(168,000)
(12,000)
(605,000)
(7,000)
(668,000)
(29,000)
(1,120,000)
(20,740)
(1,255,260)
0
0
0
0
(5.979,000)
0.4%
0.0°h
0.0'h
-1.7°,6
4.5°6
-1.5%
-7.5%
-7.8°h
18.5°k
351%
S.4%
7.7%
0.0%
-1.0°h
0.0%
O.Q'/o
0.3h
O.Q'/
-0.5%
8.8%
-5.8%
1.6%
-5.2°h
-0.8°h
2.1%
3.5%
5.8%
-7.6'k
-5.0%
0.2%
-4.0°�
-3.2%
4.2%
-6.3�
-1.4°�
1.9%
-0.2%
-0.6^/0
-1.3%
-7.6°h
-0.6°h
-8.3%
0.0°.6
0.0°,6
0.0°h
0.0%
-1.9%