98-22896 RESO
RESOLUTION NO. 98-22896
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING TENTATIVE BUDGETS FOR THE
GENERAL, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL
YEAR 1998/99 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED
FOR SEPTEMBER 23, 1998.
BE IT DUL Y RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
that the City of Miami Beach hereby adopts tentative budgets for the General, Enterprise, and Internal Service Funds for Fiscal
Year 1998/99 as summarized and listed below, subject to a second public hearing scheduled for September 23, 1998.
REVENUES INTERNAL CATEGORY
GENERAL ENTERPRISE SERVICE TOTALS
GENERAL OPERATING REVENUES
Ad Valorem Taxes $44,661,543 $44,661,543
Ad Valorem Taxes - RDA So Pointe 3,315,257 3,315,257
Ad Valorem Taxes - City Center 2,372,814 2,372,814
Ad Valorem Taxes - Norm Sh 50,850 50,850
Other Taxes 17,536,400 17,536,400
Licenses and Permits 7,583,700 7,583,700
Intergovernmental Revenues 8,796,000 8,796,000
Charges for Services 1,719,580 1,719,580
Fines and Forfeits 1,145,000 1,145,000
Interest 3,713,025 3,713,025
Rents and Leases 800,185 800,185
Miscellaneous 4,193,467 4,193,467
Other 14,221,517 14,221,517
Subtotal $110,109,338 $110,109,338
DEBT SERVICE
Ad Valorem Taxes $9,973,902 $9,973,902
Subtotal $9,973,902 $9,973,902
FUND TOTAL $120,083,240 $120,083,240
ENTERPRISE FUNDS
Convention CenterrrOP A $10,259,992 $10,259,992
Parking 13,369,300 13,369,300
Sanitation 4,704,893 4,704,893
Water Operations 16,502,121 16,502,121
Sewer Operations 27,138,953 27,138,953
Storm Water 3,745,000 3,745,000
FUND TOTAL $75,720,259 $75,720,259
INTERNAL SERVICE FUNDS
Central Services $556,368 $556,368
Information Technology 7,527,775 7,527,775
Fleet Management 7,188,231 7,188,231
Property Management 4,313,355 4,313,355
Risk Management 10,324,270 10,324,270
FUND TOTAL $29,909,999 $29,909,999
TOTAL - ALL FUNDS $120,083,240 $75,720,259 $29,909,999 $225,713,498
APPROPRIATIONS
INTERNAL DEPARTMENT
DEPARTMENT/FUNCTION GENERAL ENTERPRISE SERVICE TOTALS
ADMINISTRATION
MAYOR & COMMISSION $643,365 $643,365
CITY MANAGER 1,156,110 1,156,110
CITY ATTORNEY 2,701,458 2,701,458
CITY CLERK 1,255,708 1,255,708
CHILDREN'S AFFAIRS 96,038 96,038
ARTS,CUL TURE & ENTERTAINMENT 340,704 340,704
FINANCE 2,147,770 2,147,770
MANAGEMENT & BUDGET 452,223 452,223
INTERNAL AUDIT 290,649 290,649
HUMAN RESOURCES 1,024,185 1,024,185
RISK MANAGEMENT $10,324,270 10,324,270
COM SERVICES & DEVELOPMENT
BUILDING 2,547,653 2,547,653
CODE COMPLIANCE 1,496,129 1,496,129
PLANNING 1,402,540 1,402,540
COM/ECONOMIC DEVELOPMENT 953,700
Community/Economic Development 826,286
Log Cabin 127,414
CONVENTION CENTERffOPA $10,259,992 10,259,992
PARKING 13,369,300
Administration 1,845,278
On-Street Parking 4,145,832
Off-Street Parking 5,192,084
Debt Service 2,186,106
BASS MUSEUM 839,668 839,668
RECREATION, CULTURE & PARKS 14,876,170
Administration 204,060
Beach Patrol 3,999,398
Landscape Maintenance 3,221,817
Parks Maintenance 2,215,450
Recreation 5,235,445
PUBLIC PROPERTY MANAGEMENT
GENERAL SERVICES 20,115,540
Procurement 529,811
Central Services 556,368
Property Management 4,313,355
Information Management 7,527,775
Fleet Management 7,188,231
PUBLIC WORKS 51,001,439
Administration 308,634
Construction Management 814,150
Engineering 748,798
Environmental Resource Mgmt 144,525
Streets/Streetlights 1,599,258
Sewer Operations 27,138,953
Storm Water 3,745,000
Water Operations 16,502,121
SANITATION 4,704,893 4,704,893
APPROPRIATIONS (Continued)
INTERNAL DEPARTMENT
DEPARTMENT/FUNCTION GENERAL ENTERPRISE SERVICE TOTALS
PUBLIC SAFETY
FIRE 19,950,406 19,950,406
POLICE 39,265,454 39,265,454
CITYWIDE ACCTS 8,336,161 8,336,161
CITYWIDE ACCTS - RDA So Pointe 3,3 I 5,257 3,3 I 5,257
CITYWIDE ACCTS - RDA City Center 2,372,814 2,372,814
CONTINGENCY 500,000 500,000
SUBTOTALS $110,109,338 $75,720,259 $29,909,999 $215,739,596
DEBT SERVICE
Debt Service $9,973,902 $9,973,902
TOTAL ALL FUNDS $120,083,240 $75,720,259 $29,909,999 $225,713,498
Passed and adopted this 10th day of September, 1998.
~~
MAYOR
Attest by:
~d' ftu~
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
~Q;~ ?l3Il~
City Atto Daf8
CITY CLERK
AND BUDGET
~ITY OF MIAMI BEACH
:ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
11lp :\\ci. miami-beach. fl. us
COMl\flSSION MEMORANDUM NO. Ceo '3 ~C:16
TO:
Mayor Neisen O. Kasdin and DATE: September 10, 1998
M,mb,,, of lb' #"'on
Sergio Rodriguez
City Manager
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING TENTATIVE BUDGETS FOR
THE GENERAL, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR
FISCAL YEAR 1998/99 SUBJECT TO A SECOND PUBLIC HEARING
SCHEDULED FOR SEPTEMBER 23, 1998.
FROM:
SUBJECT:
RECOMMENDATION:
The Administration recommends that the City Commission adopt the attached Resolution which
establishes tentative operating budgets for the General, Enterprise, and Internal Service Funds for
Fiscal Year 1998/99.
BACKGROUND:
As outlined in the companion Agenda Item R-7-A-l, Florida Statutes 200.065 specifies the manner
in which budgets are adopted. First, the tentative millage rate for both general operating and debt
service is adopted, then immediately thereafter, tentative operating budgets by fund are adopted. The
attached Resolution is therefore presented to you at this time for adoption.
ANAL YSIS:
On July 10, 1998, the Administration released a Proposed Budget totaling $108,369,817 for the
General Fund balanced with 7.999 mills, exclusive of debt service. Subsequent to the release of the
Proposed FY 1998/99 Budget, the Commission at its July 15, 1998 meeting, set the proposed
tentative millage at 7.999 mills, maintaining basic current service levels with an operating budget
for the General Fund totaling $108,369,817.
At the July 15th meeting ofthe Mayor and City Commission, we presented a balanced budget which
included revenues from both a one-half mill increase in the Ad Valorem tax levy and savings of
$3,000,000 from a re-valuation of assets of the Police and Fire Pension Plan. At that time we were
directed to achieve a balanced budget without effectuating a tax increase. The Pension Board
subsequently approved the change in asset valuation and the savings will be achieved.
Therefore in order to balance the budget we searched for additional sources of revenue and were able
to achieve $5,400,000 as described below:
AGENDA ITEM K 1 A z-
DATE q -to-q8
Adopting Tentative Budgets - FY 1998/99
Page 2
September 10, 1998
1 - $4,200,000 - During July 1998, the Miami Beach Redevelopment Agency sold a third series of
tax increment revenue bonds for its City Center District (the District). This transaction was
structured to reduce the debt service requirement for FY 1999 through the substitution of previously
reserved funds with a surety policy. As a result, the demand for the Districts tax increment revenues
and supplemental resort tax payments were reduced by approximately $4,200,000. The District will
now be able to reimburse the Resort Tax fund approximately $3,200,000 which was previously
borrowed and $1,000,000 of supplemental Resort tax funds will not be required for debt service.
These funds may now be made available for other tourism related items to be paid from the General
Fund.
2 - $900,000 - A revised projection of resort taxes was made based on incremental services and
facilities which will be in operation during FY 98-99 as well as additional revenues from increased
convention center bookings, Super Bowl and Pow-Wow events produced approximately $700,000.
Additionally, $200,000 will become available as a result of a reduced requirement for funds for the
operation of the Electrowave. These funds may now be made available for other tourism related
items to be paid from the General Fund.
3 - $300,000 - Additional savings of $300,000 were achieved through the inclusion of a 1 % attrition
factor.
Therefore, the Administration recommends a reduction in the proposed operating millage rate from
7.999 mills to 7.499 mills which will be the fourth consecutive year in which our City has
maintained the same general operating millage rate.
This millage rate will fund not only the current basic service level, but service enhancements
outlined in the July Proposed Budget document and additional enhancements noted herein.
The Administration has incorporated these adjustments into the tentative budget for further
consideration during the first public hearing.
For clarity, we will enumerate each General Fund adjustment by revenue and expense category.
and provide a brief explanation thereof. If a revenue category or expenditure allocation is not
enumerated in the proceeding pages, it is because there are no proposed adjustments. To provide
consistency, the categories identified correspond to those major classifications and groupings
identified in the proposed operating budget.
SUMMARY OF ADJUSTMENTS
The proposed operating budgets for General, Enterprise and Internal Service Funds, including
General Obligation Debt Service was revised from its July 15, 1998 level of $225,911,188 to
$225,713,498 or an overall increase of $197,690, which equates to less than one percent. The
General Fund increased by $1,739,521 from $108,369,817 to $110,109,338. Enterprise Funds and
Internal Service Funds remained constant with the exception of the Water and Sewer Fund, which
decreased by $1,937,211. (See Attachment "A" for the revised General, Enterprise, and Internal
Service Funds tentative budgets).
Adopting Tentative Budgets - FY 1998/99
Page 3
September 10, 1998
A. GENERAL FUND
Revenues
Ad Valorem Taxes - Revenues within this category have been reduced by $3,360,479 to reflect the
proposed one-half mill decrease in the millage rate from 7.999 to 7.499. Of this amount $379,254
is a reduction of Ad Valorem tax for the Miami Beach Redevelopment Agency districts.
Other - Revenues within this category were increased by $5,100,000 due to an increased transfer
of Resort Tax revenues as described in items 1 and 2 above.
Expenditures
Fire - This budget was increased by $250,000. Approximately $195,000 was allocated to return
daily staffing to 42 firefighters per shift. This includes an additional 3 positions and $75,000 in
operating costs. Also $55,000 is being provided for furnishings to be replaced at the four fire
stations.
Police - This allocation was increased by $360,000 to provide funds for ten (10) additional police
officers to increase neighborhood patrols.
Citywide Accounts - Funding for this cost center was increased by a net of approximately
$1,120,000. Approximately $600,000 is provided to augment the reserve for the first year's
estimated costs ofthe Police and Fire "Rule of 70" provision in the pension plan. The annual debt
service for the installation of an incremental underground electric distribution line has been
provided in the amount of$500,000. Funds of approximately $300,000 have been included to staff
and equip four property management crews to provide pressure cleaning services for selected areas
in North and Middle Beach. Additionally, increased operating costs of approximately $400,000
have been funded for the City's internal service funds. A reduction of $ 379,254 has been included
resulting from the decrease of Ad Valorem tax millage for the Miami Beach Redevelopment Agency
districts. Additional savings of $300,000 were achieved through the inclusion of a I % attrition
factor.
GENERAL FUND SUMMARY OF ADJUSTMENTS (REVENUES AND EXPENDITURES):
REVENUES
Ad Valorem Taxes
Other
TOTAL INCREASE
Increases/(Decreases)
($3,360,479)
5.100.000
$1,739,521
EXPENDITURES
Fire
Police
Citywide
TOTAL INCREASE
Increases (Decreases)
$ 250,000
360,000
1.129.521
$1,739,521
Adopting Tentative Budgets - FY 1998/99
Page 4
September 10, 1998
B. ENTERPRISE FUND
WATER AND SEWER
The Florida Statutes require that the governing body of all municipalities annually adopt a balanced
budget. Consistent with this requirement, the Water and Sewer Fund has included within its
proposed FY 1998/99 budget a rate increase to support the current and future debt service
requirements for its existing bonds and the bonds to be issued during the upcoming fiscal year. This
will increase the water rate by $0.24 per thousand gallons, to $2.16 from $1.92 as included in the
proposed budget. This will increase the sewer rate by $0.18 per thousand gallons, to $3.65 from
$3.4 7 as included in the proposed budget. These increases will provide sufficient net revenues to
assure continued compliance with bond covenants. These proposed rate increases will utilize bond
funds for capital improvements and will not require continued contributions from retained earnings.
SANITATION
The Florida Statutes require that the governing body of all municipalities annually adopt a balanced
budget. Consistent with this requirement, the Sanitation Fund has included within its proposed FY
1998/99 budget a new commercial impact fee to cover the costs associated with the garbage/trash
removal from the streets and alleyways in the commercial areas of the City. If this fee is approved,
five additional positions can be funded in the FY 1998/99 budget to help accomplish this task.
CONCLUSION:
The Administration recommends adoption of the attached Resolution which incorporates the
revisions enumerated above and establishes tentative operating budgets for General, Enterprise, and
Internal Service Funds for Fiscal Year 1998/99, subject to a second public hearing scheduled for
September 23, 1998.
SR:PDW:JC
Adopting Tentative Budgets - FY 1998/99
Page 5
September 10,1998
Attachment A:
REVENUES INTERNAL CATEGORY
GENERAL ENTERPRISE SERVICE TOTALS
GENERAL OPERATING REVENUES
Ad Valorem Taxes $44,66 I ,543 $44,661,543
Ad Valorem Taxes - RDA So Pointe 3,3 I 5,257 3,315,257
Ad Valorem Taxes - City Center 2,372,814 2.372,814
Ad Valorem Taxes - Norm Sh 50,850 50,850
Other Taxes 17,536,400 17,536,400
Licenses and Permits 7,583,700 7,583,700
Intergovernmental Revenues 8,796,000 8,796,000
Charges for Services 1,719,580 1,719,580
Fines and Forfeits 1,145,000 1,145,000
Interest 3,713,025 3,713,025
Rents and Leases 800,185 800, I 85
Miscellaneous 4, I 93,467 4.193,467
Other 14,221,5 I 7 14,221,5 I 7
Subtotal $110,109,338 $110,109,338
DEBT SERVICE
Ad Valorem Taxes $9,973,902 $9,973,902
Subtotal $9,973,902 $9,973.902
FUND TOTAL $120,083,240 $120,083,240
ENTERPRISE FUNDS
Convention CenterrrOPA $10,259,992 $10,259,992
Parking 13,369,300 13,369,300
Sanitation 4,704,893 4,704,893
Water Operations 16,502,12 I 16,502,1 2 I
Sewer Operations 27,138,953 27,138,953
Storm Water 3,745,000 3,745,000
FUND TOTAL $75,720,259 $75,720,259
INTERNAL SERVICE FUNDS
Central Services $556,368 $556,368
Information Technology 7,527,775 7,527,775
Fleet Management 7,188,23 I 7,188,231
Property Management 4,313,355 4,313,355
Risk Management 10,324,270 10,324,270
FUND TOTAL $29,909,999 $29,909,999
TOTAL-ALL FUNDS $120,083,240 $75,720,259 $29,909,999 $225,713,498
APPROPRIATIONS
INTERNAL DEPARTMENT
DEP ARTMENT/FUNCTION GENERAL ENTERPRISE SERVICE TOTALS
ADMINISTRATION
MA YOR & COMMISSION $643,365 $643,365
CITY MANAGER 1,156,110 1,156,110
CITY A TIORNEY 2,701,458 2,701,458
CITY CLERK 1,255,708 1,255,708
CHILDREN'S AFFAIRS 96,038 96,038
ARTS,CUL TURE & ENTERT AINME 340,704 340,704
FINANCE 2,147,770 2,147,770
MANAGEMENT & BUDGET 452,223 452,223
INTERNAL AUDIT 290,649 290,649
HUMAN RESOURCES 1,024,185 1,024,185
RISK MANAGEMENT $10,324,270 10,324,270
COM SERVICES & DEVELOPMENT
BUILDING 2,547,653 2,547,653
CODE COMPLIANCE 1,496,129 1,496,129
PLANNING 1,402,540 1,402,540
Adopting Tentative Budgets - FY 1998/99
Page 6
Septem ber 10,1998
Attachment A: (Continued)
APPROPRIATIONS (Continued)
INTERNAL DEPARTMENT
DEPARTMENT/FUNCTION GENERAL ENTERPRISE SERVICE TOTALS
COMMIECON DEVELOPMENT 953,700
Community/Economic Development 826,286
Log Cabin 127,414
CONVENTION CENTER/TOPA $10.259,992 10,259,992
PARKING 13,369,300
Administration 1,845,278
On-Street Parking 4,145,832
Off-Street Parking 5,192,084
Debt Service 2,186,106
BASS MUSEUM 839,668 839,668
RECREATION, CULTURE & PARKS 14,876, I 70
Administration 204,060
Beach Patrol 3,999,398
Landscape Maintenance 3,221,8 I 7
Parks Maintenance 2,215,450
Recreation 5,235,445
PUBLIC PROPERTY MANAGEMENT
GENERAL SERVICES 20,115,540
Procurement 529,811
Central Services 556,368
Property Management 4,313,355
Information Management 7,527,775
Fleet Management 7,188,231
PUBLIC WORKS 51,001,439
Administration 308,634
Construction Management 814,150
Engineering 748,798
Environmental Resource Mgmt 144,525
StreetslS treetIi gh 15 1,599,258
Sewer Operations 27,138,953
Storm Water 3,745,000
Water Operations 16,502,121
SANITATION 4,704,893 4,704,893
PUBLIC SAFETY
FIRE 19,950,406 19,950,406
POLICE 39,265,454 39,265,454
CITYWIDE ACCTS 8,336,161 8,336,161
CITYWIDE ACCTS - RDA So Pointe 3,3 I 5,257 3,315,257
CITYWIDE ACCTS - RDA City Center 2,372,814 2,372,814
CONTINGENCY 500,000 500,000
SUBTOTALS $110,109,338 $75,720,259 $29,909,999 $215,739,596
DEBT SERVICE
Debt Service $9,973,902 $9,973,902
TOTAL ALL FUNDS $120,083,240 $75,720,259 $29,909,999 $225,713,498