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HomeMy WebLinkAbout2002-24764 Reso RESOLUTION NO. 2002-24764 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ESTABLISHING A CAPITAL PROJECTS RESERVE IN THE GENERAL FUND AND APPROPRIATING $1,500,000 OF FISCAL YEAR 2000- 2001 GENERAL FUND EARNINGS FROM THE GENERAL FUND UNDESIGNATED FUND BALANCE; AND THAT IN SUBSEQUENT YEARS, ON SEPTEMBER 30TH, WHEN THERE EXISTS AN EXCESS OF GENERAL FUND REVENUES OVER EXPENDITURES ("EARNINGS"), AFTER FUNDING THE INCREASE IN THE CONTINGENCY RESERVE (11 % EMERGENCY RESERVE), THE ADMINISTRATION WILL RECOMMEND THE AMOUNT TO BE DEPOSITED INTO THE CAPITAL RESERVE FUND WHEREAS, the City has embarked on a significant Capital Improvement Program in accordance with the Capital Projects Plan adopted by the Mayor and Commission on July 21,1999; and WHEREAS, the projects contained within the Plan have been funded through the issuance of General Obligation Bonds, Water and Sewer Revenue Bonds, Stormwater Revenue Bonds, and from a variety of other sources, including among the sources, grants, tax increment funds, loans, and gas tax; and WHEREAS, the purpose of establishing this reserve would be to establish "savings account" for projects not funded from bonds, grants, or loans so that funding would be provided on a "pay-as-you-go" basis; and WHEREAS, it will also be used during the implementation ofthe adopted Capital Improvement Program to provide a source for funding unforeseen capital needs, or for unanticipated project shortfalls when reduction of project scope and/or value engineering efforts are not successful in bringing a project within; and WHEREAS, it will be used to provide an interim source for funding comprehensive maintenance programs for infrastructure within the community until the annual funding for these programs in the Capital Budget grows to a sufficient level to provide the annual maintenance required. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a Capital Projects Reserve Fund be established as part of the General Fund; that $1,500,000 be appropriated from the General Fund Undesignated Fund Balance; and that in subsequent years, on September 30th, when there exists an excess of General Fund revenues over expenditures ("earnings"), after funding the increase in the Contingency Reserve (11 % Emergency Reserve), the Administration will recommend the amount to be deposited into the Capital Reserve fund. PASSED AND ADOPTED THIS 20th DAY OF 2002. Attest ~..~f~ City Clerk APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION 1t(~J'~?-J'2- eft Date CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m - Condensed Title: A RESOLUTION, ESTABLISHING A CAPITAL PROJECTS RESERVE IN THE GENERAL FUND AND APPROPRIATING $1,500,000 OF FISCAL YEAR 2000-2001 GENERAL FUND EARNINGS FROM THE GENERAL FUND UNDESIGNATED FUND BALANCE Issue: The purpose of establishing this reserve would be 1) to establish a "savings accounf for projects not funded from bonds, grants or loans, so that funding would be provided on a "pay-as-you-go" basis; 2) to be used during the implementation of the adopted Capital Improvement Program to provide a source for funding unforeseen capital needs, or for unanticipated project shortfalls when reduction of project scope and/or value engineering efforts are not successful in bringing a project within budget.; and 3) to be used to provide an interim source for funding comprehensive maintenance programs for infrastructure within the community until the annual funding for these programs in the Ca ita I Bud et rows to a sufficient level to rovide the annual maintenance re uired. Item Summary/Recommendation: I Adopt the Resolution Advisory Board Recommendation: I Financial Information: Amount to be expended: Finance Dept. FY 2000-2001 General Fund earnings from the Undesignated Fund Balance of the General Fund Source of Funds: Agenda Item /( 7 D Date 62-~O~L CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.ll.us COMMISSION MEMORANDUM TO: Mayor David Dermer and Members of the City Commission DATE: February 20,2002 FROM: Jorge M. Gonzalez \ MA~ City Manager O1"-u SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ESTABLISHING A CAPITAL PROJECTS RESERVE IN THE GENERAL FUND AND APPROPRIATING $1,500,000 OF FISCAL YEAR 2000-2001 GENERAL FUND EARNINGS FROM THE GENERAL FUND UNDESIGNATED FUND BALANCE ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The City has embarked on a significant Capital Improvement Program in accordance with the Capital Plan adopted by the Mayor and Commission on July 21,1999. The projects contained within the plan have been funded through the issuance of General Obligation Bonds, Water and Sewer Revenue Bonds, Stormwater Revenue Bonds and from a variety of other sources including among the sources grants, tax increment funds, loans, and gas tax . Purpose The purpose of establishing this reserve would be threefold. First, it will be used to establish a "savings account" for projects not funded from bonds, grants or loans, so that funding would be provided on a "pay-as-you-go" basis. Establishing a fund for this purpose is a common practice among municipalities who cannot issue bonds or do not want to implement or increase long-term debt obligations programs. Next, it will be used during the implementation of the adopted Capital Improvement Program to provide a source for funding unforeseen capital needs, or for unanticipated project shortfalls when reduction of project scope and/or value engineering efforts are not successful in bringing a project within budget. Finally, it will be used to provide an interim source for funding comprehensive maintenance programs for infrastructure within the community until the annual funding for these programs in the Capital Budget grows to a sufficient level to provide the annual maintenance required. This will include maintenance of roads, curb/gutter, sidewalk and streetlights and other infrastructure. It is intended that a program will be established during the upcoming Capital Budget process, which would begin to set aside monies for more significant annual expenditures for these items. These funds would be used to pay annual costs for maintenance programs such as a pavement management program. The fund will allow the maintenance programs to be financed without the need for sporadic large appropriations annualizing spending to allow a level rate over time. Annual Fundina It is recommended that the initial deposit to this fund be in the amount of $1,500,000. In subsequent years, when there exists an excess of General Fund revenues over expenditures ("Earnings"), at September 30, it is recommended that the funds first be used to provide for the increase in funding the Contingency Reserve (11 % Emergency Reserve) for the ensuing fiscal year, and that the balance of such Earnings be split with 50% going to the Capital Reserve fund and 50% to the General Fund balance. JMG/PDW ~