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FY 2023 Budget Workshop Presentation for WebsiteFY 2023 Commission Budget Workshop Miami Beach Introduction Budget Workshop Purpose Kickoff the FY 2023 budget process with the City Commission Cover several budget-related topics and identify any areas requiring additional attention Increase efficiency of the 3 planned FER C budget briefings that include the Mayor and City Commission 3 Budget Timeline Ja n –Feb Initiate Budget Development Process Feb –Mar R eview Budgets with Departments and City Manager May 20 City Commission establishes Budget Priorities at Budget Workshop Jun –Jul Finance and Economic R esiliency Committee (FER C) Budget Briefings June 24 July 15 July 22 4 Budget Timeline (cont.) June 1 Preliminary T axable V alue received from the Property Appraiser July 1 Certification of T axable V alue received from the Property Appraiser July 20 City Commission meets to set tentative millage rates August City Manager a nd O MB finalize Proposed Budget Document September 1 st public hearing on September 14 2 nd public hearing on September 28 5 Community Survey Re sults 2022 Resident Survey Preliminary Findings Report PRESENTED BY ETC INSTITUTE MAY 20, 2022 DRAFT 7 ETC Institute is the Nation’s Leading Provider of Market Research for Local Governments For more than 35 years, our mission has been to help local governments gather and use survey data to help make better decisions DRAFT 8 Agenda ●Purpose, Methodology, and Demographics ●5 Things to Remember ●Other Findings ●Summary ●Questions DRAFT 9 Purpose To objectively assess resident satisfaction with the delivery of City services To gather input from residents to help City leaders set priorities for the community To track the City’s performance against itself and other communities over time DRAFT 10 Methodology Survey Description Similar to previous surveys conducted by ETC Institute. The last survey was conducted in 2019. Method of Administration Administered by mail, phone and online. ETC Institute encouraged participation with texts and emails. Sample The sample was designed to ensure the results would be statistically valid for five subareas of the City (South Pointe, South Beach, the Condo Corridor, Mid Beach, and North Beach) Margin of Error 1,361 completed surveys were collected +/-2.6% at the 95% level of confidence DRAFT 11 Good Representation by AGE DRAFT 12 Good Representation by RACE Distribution Is Similar to the Census DRAFT 13 Good Representation by YEARS OF RESIDENCY DRAFT 14 Good Representation by INCOME DRAFT 15 Location of Survey Respondents Good representation of responses throughout the City. •There were a total of 1 ,361 respondents. •The distribution for all 5 are as is within 10% of the actual population for each area, and the data for each area is statistically valid. Miami Beach 2022 Resident Survey RespondentsDRAFT North Beach Mid Beach South Beach South Pointe Condo Corridor 16 5 Things to Remember 1.The City of Miami Beach Is Setting the Standard for the Quality of City Services in Most Areas! 2.The City’s Strengths and Weaknesses Have Been Magnified During the Pandemic 3.Although Most Residents Feel Safe, Perceptions of Safety Have Decreased Significantly During the Pandemic 4.Travel Patterns in Miami Beach Have Changed During the Pandemic 5.There Are Opportunities for Improvement DRAFT 17 The City of Miami Beach Is Setting the Standard for the Quality of City Services in Most Areas! THINGS TO REMEMBER #1 DRAFT 18 The City is Setting the Standard for Service Delivery in Most Major Categories Ratings for Fire Services, EMS, Parks/Recreation Programs, and the Appearance of Public Buildings Are Among the Best in the Nation! >4% HIGHER than National >4% LOWER than NationalDRAFT 19 The City is Setting the Standard for Customer Service! Ratings for Streets, Sidewalks, and Stormwater Are Below the National Average >4% HIGHER than National >4% LOWER than NationalDRAFT 20 The City is Setting the Standard as a Place to Live >4% HIGHER than National >4% LOWER than National Satisfaction with the Overall Quality of City Services Rated Significantly Above the National Average, but the City is Trailing in Ratings for its Efforts to Plan Growth and Prevent Crime DRAFT 21 The City’s Strengths and Weaknesses Have Been Magnified During the Pandemic THINGS TO REMEMBER #2 DRAFT 22 81.8% Satisfaction increased in the 8 areas that were rated highest before the Pandemic! >4% HIGHER than 2019 >4% LOWER than 2019 The City’s Ratings Increased in the Areas Where It Received the Highest Ratings Before the Pandemic 23DRAFT 23 Satisfaction increased in 6 of the 7 areas of parks and recreation that were assessed! >4% HIGHER than 2019 >4% LOWER than 2019 Ratings for Parks and Recreation Services Increased in Most Areas DRAFT 24 The City Ratings Decreased in the Areas Where It Received the Lowest Ratings Before the Pandemic The Decreases in Miami Beach Were Generally Less than the National Average, Which Is the Reason the City Still Compares Favorably in Most Areas 60.5% >4% HIGHER than 2019 >4% LOWER than 2019 Areas Where MB Rates Below the National Average DRAFT 25 Although Most Residents Feel Safe, Perceptions of Safety Have Decreased During the Pandemic THINGS TO REMEMBER #3 DRAFT 26 Most Residents Feel Safe in Miami Beach DRAFT 27 Although Most Residents Feel Safe, Ratings for Safety Have Decreased in All Areas +8.1% >4% HIGHER than 2019 >4% LOWER than 2019DRAFT 28 >4% HIGHER than National >4% LOWER than National Ratings for Public Safety at Night Have Decreased More in Miami Beach the Other Areas of the Nation During the Pandemic DRAFT 29 Travel Patterns Have Changed in Miami Beach Since the Pandemic Began THINGS TO REMEMBER #4 DRAFT 30 Residents Are More Likely to Drive Their Car, Walk, and Bike for Trips Within Miami Beach Since the Pandemic Began >4% HIGHER than 2019 >4% LOWER than 2019 The Percentage of Residents Who Report Using Rideshare and Public Transportation Services Have Both Decreased by Nearly One-Third Since 2019. DRAFT 31 Residents Are More Likely to Drive Their Car for Trips to the Mainland Since the Pandemic Began The Percentage of Residents Who Report Using Rideshare Services Has Decreased by nearly One-Third, and Usage of Public Transportation Has Decreased by Nearly Half Since 2019.>4% HIGHER than 2019 >4% LOWER than 2019DRAFT 32 The Increase in Car, Bike, and Pedestrian Traffic in Miami Beach Has Been Accompanied By Rising Concerns About Pedestrian and Bicycle Safety >4% HIGHER than 2019 >4% LOWER than 2019DRAFT 33 There A re Opportunities for Improvement THINGS TO REMEMBER #5 DRAFT 34 Stormwater & Drainage Improvements Were the Most Important Type of Capital Improvement Project Satisfaction with Stormwater Drainage Has Decreased by 11% Since 2019, and Miami Beach Rated 13% Below the National Average DRAFT 35 Opportunities for Improvement for Major Categories of City Services Importance-Satisfaction Analysis Miami Beach, Florida Category of Service Most Important % Most Important Rank (out of 28) Satisfaction % Satisfaction Rank (out of 28) Importance- Satisfaction Rating I-S Rating Rank (out of 28) Efforts to address homelessness 24.6%7 20.4%28 0.1958 1 Cleanliness of canals/waterways 26.8%6 34.7%27 0.1750 2 Condition of streets 29.9%3 42.9%23 0.1707 3 Cleanliness of streets in your neighborhood 41.2%1 59.6%18 0.1664 4 Efforts to manage stormwater drainage and flooding 21.9%9 38.3%24 0.1351 5 Condition of sidewalks (few or no cracks)21.3%10 37.9%25 0.1323 6 Quality of Police services 38.0%2 65.2%15 0.1322 7 Availability of Police in your neighborhood 29.8%4 62.2%16 0.1126 8 Cleanliness of streets in business/commercial areas 21.0%11 47.0%22 0.1113 9 High Priority (I-S = 0.10-0.20) Among 28 major categories of city services that were assessed, the top 9 opportunities for improvement to enhance overall satisfaction with City services are listed above. DRAFT 36 Ratings for Safety Were Not Strongly Correlated with Satisfaction with the City’s Efforts to Prevent Crime. This Suggests the Concerns About Crime Are Related to Other Factors. DRAFT How Safe Do You Feel In Your Neighborhood During the Day? How Safe Do You Feel In Your Neighborhood At Night? How Satisfied Are You with The City’s Efforts to Prevent Crime? 37 Ratings for the Enforcement of the Cleanup of Litter/Debris and the Condition of Sidewalks Were Strongly Correlated with Satisfaction with the City’s Efforts to Prevent Crime. DRAFT How Satisfied Are You with the Condition of Sidewalks? How Satisfied Are You with the Enforcement of codes related to the clean-up of litter and debris on private property How Satisfied Are You with The City’s Efforts to Prevent Crime? 38 OTHER FINDINGS DRAFT 39 The Percentage of Residents Who Do Not Think the City is Enforcing Codes Enough Has Increased Since 2019 +12% Since 2019 DRAFT 40 MB Magazine and the City’s Website Are the Top Sources of Information for Residents Usage of Nextdoor Has More than Doubled since 2019 >4% HIGHER than 2019 >4% LOWER than 2019DRAFT 41 The City’s Email News is the Most Preferred Source of Information DRAFT 42 Support for Tax Increases to Maintain City Assets Is Mixed 38% Willing 33% Not Willing 29% Neutral/Don’t Know DRAFT 43 Most Residents Support the Use of Existing Tax Dollars to Address Sea-Level Rise The Percentage Who Are Supportive Has Not Changed Significantly During the Pandemic 80% in 2022 vs. 82% in 2019 DRAFT 44 Most Residents Think the City’s Arts & Cultural Activities Contribute to the Quality of Life in Miami Beach DRAFT 45 Summary 1.The City of Miami Beach Is Setting the Standard for the Quality of City Se rvice s in Most Are as! 2.The Ci ty’ s Strengths and Weaknesses Have Been Magni fi ed During the Pandemic 3.Although Most Resi dents Feel Safe, Percepti ons of Safety Have Decreased Si gni fi cantly Duri ng the Pandemi c 4.Travel Patterns in Miami Beach Have Changed During the Pande m ic 5.The City Should Use the Importance -Satisfaction Analysis to Help Gui de Pri ori ti es for I mprovement DRAFT 46 Questions? THANK YOU! DRAFT 47 FY 2022 Budget Overview Types of Funds GENERAL FUND ENTERPRISE FUNDS I NT ER NAL SERVICE FUNDS G.O. DEBT SERVICE FUNDS RDA FUND RESO RT TAX FUND O THER SPECIAL REVENUE FUNDS 49 General Fund $354,106,000 Mayor & Commission City Manager Capital Improvement Projects City Attorney Housing & Community Services City Clerk Code Compliance Marketing & Communications Economic Development Human Resources Finance Fire Planning Management &Budget Public Works Police Parks & Recreation Citywide Accounts Environment & Sustainability Procurement Tourism & Culture Property Management Organizational Development Performance Initiatives 50 G.O. Debt Service Fund $ 11,492,000 Enterprise Funds $ 230,287,000 Water Operations Sewer Operations Storm Water Operations Parking Department Convention Center Operations Sanitation Building Operations 51 Internal Service Funds $ 115,023,000 Information Technology Central Services Fleet Management Risk Management Property Management Medical & Dental Inspector General Redevelopment Agency (RDA) $ 29,805,000 City Center –City of Miami Beach TIF only 52 Special Revenue Funds (excl. Resort Tax) $ 24,803,000 Education Compact Cultural Arts Council Franchise Waste Haulers Environment & Sustainability Special R evenue Funds Normandy Shores Taxing District Biscayne Point Special Taxing District Allison Island Special Taxing District Bisca yne Bea ch Special Taxing District 5 th & Alton Garage F und 7 th Street Garage Operations Transportation Fund T ree Preservation Fund Commemorative T ree Trust Fund People’s Transportation Plan Police Special R evenue Funds IT Te ch Fund E-911 Fund Other Special R evenue Funds 53 Resort Tax Fund $ 81,838,000 2 % Ta x 1 % Ta x 1 % Ta x Eligible tourism-related expenditures in General Fund Quality of Life Capital Projects Convention Center Renovation Debt Service GMCVB & VCA Arts Convention Center Capital R enewal &R eplacement Sanitation in tourist areas Transportation Ta x Collections 54 Operating $ 675.9 M$ 70.4 M FY 2022 Total Budget $ 746.3 Million Capital 55 Where the Money Comes From… Property Tax 56% Other T axes 7% Re s o r t Ta x Contribution 7%Other R evenues 8% Charges for Services 4%Fines and Forefeits 0% Interest 1% Rents and L eases 2% Miscellaneous 4% L icenses & Permits 4% Non Operating 4% Intergovernmental 3% Other 22% FY 2022 General Fund Revenues $354.1 Million Property and Resort Taxes comprise 63%of Total General Fund Revenues GENERAL FUND 57 Where the Money Goes… Police $ 121 M 34% Fire $ 96 M 27% Pa rks & Re c. $ 39 M 11% Public Works $15 M 4% Other $ 83 M 24% FY 2022 General Fund Expenditures $354.1 Million Public Safety (Police & Fire) comprises 61% of Total General Fund Expenditures GENERAL FUND 59 Personnel Services $258 M Operating Expenditures $51 M 14% Internal Services $39 M 11% Debt and Other $6 M 2% Personnel Services comprise 73%of Total General Fund Expenditures FY 2022 General Fund Expenditures $354.1 Million GENERAL FUND 60 Salaries $ 139 M Pension Contributions $ 63 M Health & L ife Insurance $ 34 M 13% Overtime & Other Wages $ 23 M 9% FY 2022 General Fund Personnel Services $257.7 Million Salaries comprise 54% of General Fund Personnel Services Expenditures Pension contributions comprise 24% of General Fund Personnel Services Expenditures GENERAL FUND 61 Budget Trends Combined Millage T he current combined millage rate is 33%less than in FY 1999 and 21%less than in FY 2007 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Debt Service Millage 0.2990 0.2415 0.2375 0.2568 0.2870 0.2884 0.2568 0.2529 0.2295 0.2031 0.1796 0.1664 0.1600 0.2933 0.3227 0.2889 Operating Millage 7.3740 5.6555 5.6555 5.6555 6.2155 6.1655 6.0909 5.8634 5.7942 5.7092 5.7092 5.7224 5.7288 5.7288 5.7288 5.7626 Total Combined 7.6730 5.8970 5.8930 5.9123 6.5025 6.4539 6.3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 6.0221 6.0515 6.0515 0.0000 1.0000 2.0000 3.0000 4.0000 5.0000 6.0000 7.0000 8.0000 Mi l l a g e R a t e s 63 Overlapping Millage Miami Beach For Mia mi -Dade County property owners, each property tax dollar paid is split as shown above 36¢School Boa rd 31¢City of Miami Beach 28¢Miami-Dade County 5¢Other 64 Overlapping Millage The City of Miami Beach portion of the property tax bill has decreased as a percentage of the total bill from 33% to 31% between FY 2007 and FY 2022 OVERLAPPING TAX MILLAGE FY 2007 % of FY 2007 Total FY 2022 % of FY 2022 Total Variance from FY 2007 City of Miami Beach 7.6730 32.9%6.0515 31.3%(1.6215) Miami Dade County Countywide 5.6150 24.1%4.6669 24.2%(0.9481) Library 0.4860 2.1%0.2840 1.5%(0.2020) Debt Service 0.2850 1.2%0.5075 2.6%0.2225 Subtotal 6.3860 27.4%5.4584 28.3%(0.9276) School Board 8.1050 34.8%7.0090 36.3%(1.0960) Children's Trust 0.4223 1.8%0.5000 2.6%0.0777 Other 0.7355 3.2%0.2995 1.6%(0.4360) Total 23.3218 100.0%19.3184 100.0%(4.0034) 65 Police $121.2 M 34% Fire $96.0 M 27% Other $136.9 M 39% Public Safety Tre nd Police $75.3 M 32% Fire $43.3 M 18%Other $119.1 M 50% Public Safety as a percentage of the General Fund budget has increased from 50% in FY 2007 to 61%in FY 2022 FY 2007 General Fund $237.7 M FY 2022 General Fund $354.1 M 66 General Fund R evenues *FY 2022 Other Revenues includes $23.6 million of American Rescue Plan Act Funds. FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022* Total Revenues $231 $235 $226 $238 $244 $256 $264 $280 $300 $317 $331 $346 $350 $329 $354 Property Taxes $125 $126 $116 $112 $110 $114 $117 $128 $143 $161 $175 $182 $188 $197 $200 Resort Taxes $21 $22 $24 $24 $27 $31 $33 $34 $37 $38 $35 $36 $37 $19 $25 Other Revenues $85 $88 $86 $101 $107 $111 $114 $118 $120 $119 $121 $127 $126 $114 $129 $0 $50 $100 $150 $200 $250 $300 $350 $400 67 General Fund Expenditures Expenditures have experienced an average 2.8% growth since FY 2008 $3 5 0 . 1 *Commencing in FY 2021, $16.6 million for Building Operations and $1.5 million for the Office of the Inspector General transf erred out of the General Fund to stand-alone funds. In addition, FY 2021 includes $9.4 million of one -time COVID-19 expenditure reductions budgeted in FY 2021. $2 3 0 . 6 M $2 3 5 . 4 M $2 2 6 . 3 M $2 3 7 . 5 M $2 4 4 . 3 M $2 5 6 . 3 M $2 6 4 . 1 M $2 8 0 . 1 M $3 0 0 . 4 M $3 1 7 . 3 M $3 3 0 . 9 M $3 4 5 . 6 M $3 5 0 . 1 M $3 2 9 . 0 M $3 5 4 . 1 M $0.0 K $50.0 M $100.0 M $150.0 M $200.0 M $250.0 M $300.0 M $350.0 M $400.0 M FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 68 Position Count Tre nd Positions are 1.4% or 29 positions less in FY 2022 than in FY 2007 *The FY 2022 count does not include the 15 Police Officers and 2 Sergeants added during FY 2021 as one -time enhancements or 9 Code Compliance Officers added in FY 2022 on a one -time basis as an enhancement FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Other Funds 618 609 608 582 521 574 566 571 585 600 624 620 620 603 657 661 General Fund 1,509 1,441 1,399 1,345 1,273 1,322 1,337 1,371 1,442 1,469 1,536 1,536 1,537 1,526 1,428 1,437 Total 2,127 2,050 2,007 1,927 1,794 1,896 1,903 1,942 2,027 2,069 2,160 2,156 2,157 2,129 2,085 2,098 1,509 1,441 1,399 1,345 1,273 1,322 1,337 1,371 1,442 1,469 1,536 1,536 1,537 1,526 1,428 1,437 618 609 608 582 521 574 566 571 585 600 624 620 620 603 657 661 2,127 2,050 2,007 1,927 1,794 1,896 1,903 1,942 2,027 2,069 2,160 2,156 2,157 2,129 2,085 2,098 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 69 General Fund FY 2022 Q2 General Fund Update General Fund $ Q1 Projected Surplus 5,100,000 Appropriated (2,300,000) Remaining Q1 Projection 2,800,000 Q2 Projected Surplus 15,800,000 Appropriated in Q1 (2,300,000) Q2 Projected Surplus 13,500,000 71 FY 2022 Q2 Re so rt Ta x Update 2% Resort Tax Fund $ Q1 Projected Surplus 6,500,000 Appropriated (3,800,000) Remaining Q1 Projection 2,700,000 Q2 Projected Surplus 19,100,000 Appropriated in Q1 (3,800,000) Q2 Projected Surplus 15,300,000 72 FY 2022 Q2 Reserves Update 2% Resort Tax Fund $ Q2 Projected Reserve $38.4M 2% Resort Tax Reserve Policy (6 months)$28.6M Spring Break Programming –Set Aside ($3.2M) Above/(Below) Policy Goal $6.6M General Fund $ Q2 Projected Reserve $96.1M General Fund Reserve Policy (3 months)$88.5M Above/(Below) Policy Goal $7.6M Recommended use of Q2 projected reserves •Meet the reserve policy target amounts •Set-aside $3.2M of Resort Tax for Spring Break programming •Set-aside remaining funds of $14.2M for capital project gaps 73 The Current Service Level (CSL) budget represents the cost of providing the same level of service as in the prior fiscal year Provides the baseline of funding for the upcoming budget process to which enhancements and reductions are applied 1.Assumes no change in operating millage rate 2.Does not include any enhancements or reductions unless approved during FY 2022 3.Assumes 10% increase for health and life insurance (Actives and R etirees) 4.Assumes increase in Resort Tax contribution for Tourism-eligible expenditures in General Fund back to Pre-COV I D amount of $36.8 million 5.Includes average 0 -3% Merit for Non-Police and Fire and 5% Step for Police and Fire 6.Includes 17 police officers previously added as one-time 7.Does not include impacts of pending Collective Bargaining Agreements FY 2023 Preliminary General Fund Budget As s u m p t i o n s 75 FY 2023 Preliminary General Fund CSL Budget Fisca l Ye a r 2023 R evenues $ 353.1M Expenditures $ 364.1M Surplus / (Gap)($11.0M) Property Value Increase Necessary to Balance:5.5% $2.0MEstimated1% Increase in Property Value: Notes: Includes making 17 police officers previously added as one-time permanent ($2.3M) Does not include impacts from CBA’s currently under negotiation 76 FY 2023 Expenditure V ariances Expenditure Budget Variances Items $ Fire/ Police Pension Impact IAFF a nd FO P Employees 537,000 MBERP Pension Impact General Employees (366,000) 5% Step Police & Fire 1,641,000 0 –3% Merit Non-Police & Fire 752,000 Health Insurance –Active Employees 10% Increase in City Portion 2,012,000 Health Insurance –R etirees 10% Increase in City Portion 1,491,000 Internal Service Costs Fleet, Property, Info. Tech, Risk Mgmt., Central Svcs., & Inspector General 2,913,000 77 Expenditure Budget Variances $ 15 Police Officers and 2 Sergeants added as one-time in FY 2021 2,331,000 Municipal Prosecution Program approved mid -year of FY 2022 (3 Full-Time Positions and Professional Services)399,000 2 Crime Analyst positions and 1 Detention Officer in the Police Department added mid-year of FY 2022 (Matrix Study)166,000 Sworn Police positions added mid -year of FY 2022 (1 Asst. Chief, 1 Sergeant, and R eclassification of Police Officer to Executive Officer to the Chief)447,000 2 additional Police Officer positions based on incremental increase in revenues from Smith and Wollensky lease (2 added in FY 2022; 2 recommended in FY 2023; and 2 projected thru FY 2025) 336,000 Total $ 12,659,000 FY 2023 Expenditure Variances 78 Collective Bargaining Update Expiring Agreements Fraternal Order of Police (FOP) 408 Intl. Assoc. of Fire Fighters (IAFF) 199 Communications Workers of America (CWA) 303 Gov. Supervisors Assoc. of Florida (GSAF) 67 American Federation of State, County and Municipal Employees (AFSCME) 350 All 5 collective bargaining agreements have expired as of FY 2022 80 Bargaining Sessions The City is currently bargaining with all 5 collective bargaining units now We have completed 17 sessions We have scheduled 7 upcoming bargaining sessions 81 COLA Proposals from Unions Original proposed COL As ranged from: FY 2022 4% -$7 million FY 2023 5% -$16.5 million FY 2024 6% -$29 million R epresenting $52 million in salary increases citywide To FY2022 8% -$14 million FY2023 8% -$30 million FY2024 8% -$47 million Representing $91 million in salary increases citywide 82 Other Significant Asks from the Unions Several new 5% specialty pays Increases to afternoon and night shift differential pay, up to a 10% differential pay Increase of second language pay by 2.5% to 5% Additional increases of pensionable specialty percent pays Across the board reclassifications of bargaining unit member salaries Employee pension contribution reduction from 10% to 8% Early retirement option 83 COLA Proposals from City Proposed COL As have ranged from: FY 2022 2% -$3.5 million (one time bonus) FY 2023 3% -$5.4 million FY 2024 2% -$9 million R epresenting $18 million in salary increases citywide To FY2022 1% -$1.7 million FY2023 3% -$7 million FY2024 3% -$13 million Representing $22 million in salary increases citywide 84 Bargaining Highlights Bargaining items discussed: Addition of Juneteenth holiday New police officers (19) to reduce overtime and “forced” shifts New firefighters (13) in order to implement an “A day” or an additional rest day Year round 4/ 10 shifts for lifeguards to result in an increase of public access hours Incentivizing difficult shifts, difficult work assignments, and hard to fill positions Increasing select uniform cleaning and meal allowances where needed due to inflation Discussion of furloughs 85 City’s Goals Provide for generous but sustainable wage increases Incentivize positions and assignments to improve retention and recruitment Manage labor and pension costs for sustainability Avoid new pensionable pays and adjust pensionability of specialty pays where possible End past practices where needed The City will notice an end to certain past practices that restrict management rights or create unnecessary inefficiencies. This gives a union an opportunity to negotiate regarding the practice. R each a fair labor agreement with each Union reflective of items of importance to the City and to that Union 86 Property Va lues Overall Property Value Tre nd 30.3% 18.1% 0.2% -8.2% -10.5% -0.6% 5.0%6.9% 9.9% 13.3%13.0% 7.8% 4.0%3.1%4.1% 0.3% - 15.0% - 10.0% -5 .0 % 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 88 New Construction Tre nd $0.79 $0.29 $0.20 $1.78 $0.56 $0.10 $0.10 $0.08 $0.15 $0.27 $1.17 $0.86 $0.19 $0.30 $1.31 $0.22 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 $ B i l l i o n 89 25.8% 16.8% -0.6% -14.8%-12.7% -1.0% 4.5%6.5% 9.3% 12.3% 9.2% 5.3%3.5%2.3%0.8%-0.2% - 20.0% - 15.0% - 10.0% - 5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Existing Property Value Tre nd 90 Lien Statements byMonth 91 Number of Sales by Property T ype 92 Median Sales by Property T ype 93 Listing Inventory byProperty T ype 94 Resort Tax Fund Resort Tax Be d Ta x 4% 3% 7% Visitor staying at a hotel on Miami Beach will pay 14% 96 Resort Tax Summary Miami Beach has a 4% bed tax and 2% food & bev. tax 2% Resort Tax (FY 2022 = $57.2M) ○Consists of 2% bed tax and 2% food & beverage tax ○Funds tourism-related expenditures 1% Resort Tax (FY 2022 = $12.2M) ○Consists of 1% bed tax ○Quality of life expenditures: transportation (60%), arts & culture (10%), capital projects in North, Mid, South Beach (10% each) 1% Resort Tax (FY 2022 = $12.2M) ○Consists of 1% bed tax ○Debt service on the Convention Center Renovation bonds ○Excess funds set aside for renewal and replacement of Convention Center assets 97 Resort Tax Occupancy (monthly) 98 Resort Tax Average Daily R ate (monthly) 99 Resort Tax Rooms (monthly) 100 Resort Tax Food & Beverage (monthly) 101 Total Resort Tax Collected (monthly) 102 FY 2022 Re so rt Ta x Projections FY 2022 Adopted B udget ($75.3M) ○$13.3M less than FY 2019 ($88.6M) ○85% of last normal year Updated FY 2022 projection for Q2 ($105.2M) ○$16.6M more than FY 2019 103 FY 2023 Re so rt Ta x Projections Strong domestic travel has been driving the recovery ○Pent up demand during COVID-19 ○Miami Beach as attractive outdoors destination ○Uncertainty re: trend as other destinations open up Still recovering… ○Conventions and meetings ○Cruise industry ○International travel Currently assuming 1%growth for FY 2023 104 FY 2023 Preliminary Resort Tax Fund CSL Budget Fisca l Ye a r 2023 R evenues $ 71.8M Expenditures $ 70.8M Surplus / (Gap)$1.0M Note : Does not include $3.2M programming costs for Spring Break 105 Expenditure FY 2023 Notes Increase in GMCVB Contribution 1,975,000 Reflects proposed contract terms: 10% of gross 2% collections, net of 4% City allowance, plus up to $2M incentive fee Increase in VCA Contribution 988,000 Based on legislated formula: 5% of gross 2% collections, net of 4% City allowance Increase in Contribution to Sanitation for Services Provided in Tourism-Areas 654,000 Based on study completed in January 2022 ($3.7 million in services provided); provides for pre-COVID service levels Resort Tax Expenditure Variances 106 Pre-Approved from FY 2022 $ Police –Enhanced Staffing for Spring Break 1,722,000 Code –9 O fficers (6 in ADCD, 3 for STR)602,000 Fire –Enhanced Staffing for High Impact Periods 170,000 Housing –Homeless Trust Contribution 125,000 Housing –Domestic Violence Services 125,000 Re so rt Ta x Expenditure V ariances 107 Pre-Approved from FY 2022 $ Police –Enhanced Staffing for College Football Playoffs 110,000 Police –Enhanced Staffing for Formula 1 110,000 TCD –No V acancy Program 75,000 TCD –Programming for Pride Park, Collins Park, Collins Canal Park 75,000 TCD –Collins Park Fireworks Celebration 50,000 Total $ 6,781,000 Resort Tax Expenditure Variances 108 Potential Enhancements Potential Enhancements Items $Resolution # / Committee Meeting Commission Requests Additional Funding for Marine Patrol 1,200,000 FERC –2/25/22 Health & Wellness Incentive 750,000 FERC –4/29/22 Additional North Beach Cleaning Crew 271,000 2022 -32039 School Resource Officer-Nautilus & MB High 178,000 FERC –3/30/22 Additional Beachwalk Cleaning Crew 117,000 FERC –3/30/22 Business Retention Parking Incentive 26,000 FERC –4/29/22 $ 2,542,000 Department Requests (All Funds)$ 19,722,000 Total Requests $ 22,264,000 110 Police Marine Patrol Current staffing ○Morning and afternoon shift with 6 officers and 1 sergeant Proposed staffing ○Enhances both shifts with another 4 officers and 1 sergeant ○Add 1 additional boat for a total of 6 ○Provides stronger waterway coverage from 9 am to 1 am, 7 days a week Estimated recurring cost of $1.2M and one -time cost of $155K for additional boat 111 Homeless Outreach After Hours Contract for enhanced services with New Hope ○T wo teams of 2 to cover after hour shifts from 7 pm to 3 am, 7 days a week ○Access to a recovery residence for up to 6 people T otal cost of $364K 112 Fire Boa t Currently located in North Beach and staffed by a Rescue unit ○R eactive only ○Current fire boat pumping capacity is 1,250 GPM Proposed location and staffing ○Move to Marine Patrol Facility; more optimal coverage area ○Provide pro -active patrols to help enforce/ report regulations and collaborate with other agencies ○Can serve as a reserve/ back up unit to other areas ○New fire boat has pumping capacity of 5,000 GPM ○Requires 14 new firefighter positions and 3 captain positions Ye a r 1 = $1.9M (could be pro-rated) and Y ear 2 = $2.8M 113 Park Ra ng e rs Propose providing additional coverage by converting 29 part- time park rangers to full-time over next 3 years ○10 in FY 2022, 10 in FY 2023, and 9 in FY 2024 ○Adds coverage on Ocean Drive ○Adds coverage of the Beachwalk (46 th to 79 th Street) ○Adds partial coverage for a Rover to North and South Beach Parks (7 hours a day each) ○FY 2022 cost (pro-rated) = $98K ; annual cost = $414K ○FY 2023 cost = $414K ; FY 2024 cost = $381K 114 Spring Break Programming Spring Break programming estimated at $3.2M Enhanced police staffing for Spring Break estimated at $1.7M is included in CSL Potential offsetting revenue from event sponsorships: T BD R ecommendation: Set aside $3.2M 115 Capital Project Gaps Capital Project Cost Increases CO VID -19 has disrupted global supply chains resulting in a spike in prices that are dramatically impacting the City’s capital project costs ○Contractors are forced to build high contingencies to compensate for pricing of commodities, labor, transportation, fuel, etc. ○Inability to commit to delivery schedules ○Uncertainty regarding how long the impact will last Various cost impacts from scope changes, normal cost inflation, permitting delays, competition with private sector construction, etc. 117 Capital Project Cost Increases 12-month percent change in Producer Price Indexes U.S. Bureau of Labor Statistics 118 Capital Project Cost Increases 119 Potential Capital Project Gaps GO Bond projects Project Budget Description 72nd Street Complex $101.7M Pending final contract negotiations Maurice Gibb Park $11.6M Bids due in June Fire Station #1 $18.4M Updated cost estimate in June; estimated $1.8M needed to relocate childcare facility NB Ocean R escue Facility $7.0M ($2M County) TBD pending negotiations with County re: proposed scope change Bayshore Park (Par 3) $23.1M $7.0M; bids due in August 120 Potential Capital Project Gaps GO Bond projects continued Project Budget Description Marine Patrol $2.7M $3.4M; scope changed from renovation to new construction Police Headquarters $10.0M $1.5M Skate Park $950K $1.5M; scope change for restrooms and lighting Chase Ave & 34 th St Shared Use Path $1.3M $700K; DR B ordered change of materials from asphalt to concrete 121 Potential Capital Project Gaps Other Project Budget Description Pine Tree Traffic Circle $1.1M ($500K County) Pending negotiations with County re: scope changes from resident input Collins Park Rotunda $1.2M $1.2M; scope change to include external panel rehabilitation Pride Park Screen Enclosures Est. $300K $1.0M; larger than originally anticipated and required per DRB order Palm & Hibiscus Pump Station L andscaping $300K $600K; added scope for maintenance driveways North Shore Park Youth Center R estrooms $1.4M $400K 122 Potential New Capital Projects Items $Resolution # / Meeting Commission Requests Citywide Interim Flooding Solutions (Hot Spots) –($25.8M over 6 years)5,200,000 Commission Meeting Discussion -4/6/22 Slow Streets 2.0 (option 2: $2.7M)1,200,000 Commission Meeting Discussion -4/6/22 Pickleball & Paddle Courts 1,230,000 Resolution # 2022-32106 Renovation of City Hall Restrooms 325,000 Resolution # 2022-32074 Feasibility Study for Baywalk at Mt. Sinai 250,000 Resolution # 2022-32125 Henry Liebman Square Security Enhancements 114,000 PSNQOL –5/18/22 Acoustic System -UNIDAD 80,000 FERC –4/29/22 Total $ 8,339,000 123 Capital Project Funding Opportunities FY 2022 Reserves in General and Resort T ax Funds -$14.2M Seagull Hotel street vacation: $7.4M Potential sale of 2 vacant parcels identified by Facilities Management and CBRE’s asset inventory study: $6.1M L incoln L ane Class A Office Space: $4.5M (timing varies) Current NB L ibrary Site: TBD pending RFP 124 Unfunded Projects Collins Park Cultural Facility: $4.75M Byron Carlyle: $15M to renovate, $22M to reconstruct T he Fillmore: $23M to renovate B arclay: $15 to $20M Old Fire Station #1: $6 to $8M South Beach Promenade: $17M 125 Unfunded Needs for Next 5 Y ears R enewal & R eplacement: $20 million Pay -As -You -Go (PAYGO): $41 million Streets & Sidewalks: $20 million Smart Street Lighting: $50 million Transportation Master Plan projects: $60 million Future Above Ground: $TBD Stormwater, Water & Sewer: See next section 126 Resilience Capital Projects Why Resilience? Miami Beach is vulnerable to compound flood risk and damage from storm surge, rainfall, and sea level rise. Significant infrastructure improvements are needed, including: Water and sewer infrastructure Stormwater infrastructure Road elevation Seawalls Dune restoration These investments provide quality of life co-benefits today New roads, sidewalks, lighting, bike lanes, landscaping Wa t e r & S e w e r Critical Capital Needs Update $122 million of critical needs were identified in the 2019 Master Plan Commission approved a funding plan for the $122 million in 2020 Additional $35.8 million request to complete all projects through Fiscal Y ear 2024 128 Wa t e r & S e w e r Critical Capital Needs Update 5 -year schedule of rate increases approved in November 2020 FY 2023 rate increase is 3.6% Bonds of approx. $50 million will likely be issued in FY 2023 Fiscal Year Rate Increase FY 2021 0.0% FY 2022 1.0% FY 2023 3.6% FY 2024 3.6% FY 2025 3.7% 129 << 130 >>Status Update for Approved 5 -year Critical Needs Plan -Ongoing Potable Water System Project -Ongoing Sanitary Sewer System Project Progress to Date: Total underway $80 M $16.8 M awarded for construction/rehabilitati on $4.8 M awarded in design for pipelines and pump stations - construction cost estimated at $63.2 M 130 << 131 >>Update to 5 -Year Plan & Funding Needs Summary 131 << 132 >>Updated 25 -Year Water and Sewer Master Plan $538 M Total $ 488 M + $ 35.8 M + $ 8.9 M + $ 5.7 M Grant Funds through 2024 Grant Funds 2025-2027 Additional request through 2024 Master Plan 132 Wa t e r & S e w e r Capital Update A portion of the capital needs for Water & Sewer will be addressed as part of the implementation of Neighborhood Improvement projects Funding for these projects will require future rate increases that will depend on the projects selected and timing of implementation 133 RE S I L I E N C E Indian Creek •Phase III –Project close to completion •Seawall construction work –Ongoing –Fully Funded West Ave II •Phase II –Funded $105 M (Approved) + CO’s, Harmonization, and Escalation (Unfunded) •Contractor has requested termination Current Neighborhood Projects 134 RE S I L I E N C E First Street •Estimated Cost: $46 M (funded) + $20 M (Grant) + $5M (GO Bond) •Next step: Design (Ongoing, design and permitting completion in 2024) North Beach Town Center •Estimated Cost: $10 M (grant funded design) + $4M (GO Bond –above ground) + $115 M (unfunded) •Next step: Design Negotiations (Ongoing) Current Neighborhood Projects 135 Projects in Progress 1.West Ave 2.Indian Creek 3.First St. 4.North Shore Town Center 136 RE S I L I E N C E Public Seawalls 53 Miles of Seawall 4.15 Miles are Public 1 Mile completed Seawall Prioritization plan completed (66 Seawalls identified which includes 3 L iving Shoreline projects) $42 M in Construction Cost $10 M available from GO B ond $12 M available from Citywide Seawalls Funding Gap = $20 M in future years 137 Flooding Heat Map & T op 10 Hot Spots (L and Use Committee Referral) Interim Flood Solution Priority Neighborhood Level of Flooding Complaints NIP Priority No. 1 Nautilus D 49 2 La Gorce A 48 3 Lakeview A 42 4 La Gorce C 33 5 Flamingo/Lummus C 5 6 Flamingo/Lummus D 8 7 Flamingo/Lummus G 6 8 Nautilus B 36 9 City Center A 29 10 Nautilus A 22 138 Interim Flood Solutions Implementation Plan (L and Use Committee R eferral) Priority Neighborhood Estimate d Project Cost (Millions) Project Implementation Plan FY 23 FY 24 FY 25 FY 26 FY 27 FY 28 1 Nautilus D $3.2 Design Construction 2 La Gorce A $2.0 Design Construction 3 Lakeview A $2.6 Design Construction 4 La Gorce C $4.9 Design Construction 5 Flamingo/Lummus C $2.3 Design Construction 6 Flamingo/Lummus D $2.5 Design Construction 7 Flamingo/Lummus G $2.2 Design Construction 8 Nautilus B $1.4 Design Construction 9 City Center A $2.3 Design Construction 10 Nautilus A $2.4 Design Construction Total $25.8 139 Resiliency Fund Commitments Resiliency Funds Available 57,176,165$ Indian Creek Dr. Flooding Mitigation (6,862,745) Bayshore Park (3,500,000) FY 2022 Revenue 10,686,189 Updated Total Available for Appropriation 57,499,609$ Appropriated Projects West Ave. Ph II Improvements (15,000,000) First Street Project (19,224,594) Funding for Seawalls in Capital Budget (25% funding of $20 million)(5,000,000) $666K to be appropriated to Resiliency Fund for 5 years (FY 2021, FY 2022, FY 2023)(1,999,998) Stormwater funding for Lincoln Road Project (1,800,000) Available for Appropriation 14,475,017$ Programmed Projects ($14.5 million) Funding for Seawalls in Capital Budget (25% funding of $20 million)(5,000,000) $666K to be appropriated to Resiliency Fund for 5 years (FY 2024 & FY 2025)(1,333,332) North Beach Town Center (remainder of project to be funded by future rate increase)(8,141,685) Total 0$ 140 Recommendation: Hold $14.5M of available funds pending West Avenue project Proposed G.O. Bond Arts & Culture Item deferred from May 4 th Commission meeting ○R equires voter referendum The Administration developed an inventory of needs by working with key arts and cultural institutions ○Current recommendation of a $115 million bond program Implementation costs estimated at $350K for 3 positions in Facilities & Fleet Management 141 Proposed G.O. Bond Arts & Culture Bond Program Amount Annual Debt Service Equivalent Millage Ra te Annual Cost to Average Homeowner $100M 6,000,000 0.1732 $108 $115M 7,500,000 0.2165 $136 $150M 9,000,000 0.2598 $163 $200M 12,000,000 0.3464 $217 $250M 15,000,000 0.4330 $271 142 PARKING BUDGET UPDATE 143 Current Year Status •Parking revenues continue to increase toward pre-pandemic levels •Landscaping, security and janitorial contracts have been reinstated •Post-Pandemic staffing levels are being increased to meet parking demand 144 Current Year Status FY 2022 FY 2022 FY 2022 VarianceBudgetProjected Operating Revenues: Meters and Garages 33,752,000 36,115,300 2,363,300 Other 9,089,000 8,081,500 (1,007,500) General Fund Transfer 0 0 0 Use of Prior Year Fund Balance 1,317,000 1,861,200 544,200 Total Revenues $44,158,000 $46,058,000 $1,900,000 Operating Expenditures: Salaries & Benefits 11,518,200 10,467,585 (1,050,615) Operating Expenditures 26,591,000 26,846,968 255,168 Other 6,048,000 6,020,859 (27,141) Total Expenditures $44,158,000 $43,335,412 $(822,588) Surplus/(Gap)$0 $2,722,588 145 FY 2022 FY 2023 VarianceProjectedPreliminary Operating Revenues: Meters and Garages 36,115,300 36,593,900 478,600 Other 8,081,500 8,059,100 (22,400) General Fund Transfer 0 0 0 Use of Prior Year Fund Balance 1,861,200 382,000 (1,479,200) Total Revenues $46,058,000 $45,035,000 $ (1,023,000) Operating Expenditures: Salaries & Benefits 10,467,585 11,196,200 728,615 Operating 15,406,568 15,690,800 284,232 Funded R&R 6,906,400 4,777,000 (2,129,400) Debt Service 6,020,859 6,046,000 25,141 Internal Charges 3,874,000 3,874,000 0 Capital 660,000 382,000 (278,000) Total Expenditures $43,335,412 $41,966,000 $ (1,369,412) Surplus/(Gap)$2,722,588 $3,069,000 FY 2023 Budget 146 FY 2023 Budget •FY 2023 Parking revenues projected almost 100%of FY 2019 Actuals (Pre- COVID) •FY 2023 Parking Budget includes the following: Debt Service for Parking R evenue Bonds Increased service levels for janitorial and landscape maintenance Increased revenue (valet & space rentals) Increased garage revenue from MBCC events Budgeted allocations for R enewal and R eplacement of Parking Assets 147 Transportation Fund Transportation Funding $3 5 0 . 1 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $14,552,758 $11,118,190 $12,498,051 $11,336,000 $15,471,000 Tr a n s p o r t a t i o n 149 $0.0 K $2.0 M $4.0 M $6.0 M $8.0 M $10.0 M $12.0 M FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Re so rt Ta x Q O L Parking PTP Funds Other Enhancement Requests Tr a n s p o r t a t i o n Improve Frequency of Citywide Trolley Services –$2.4M Add six vehicles to increase frequency from 30 minutes to 20 minutes Slow Streets 2.0 Option #1 –Phased approach -13th St. & Jefferson Ave -$1.2M Option #2 –Neighborhood-wide -$2.7M 150 Trolley L evel of Service Tr a n s p o r t a t i o n Pre -CO VID L evel of Service FY 2022 FY 2023 Proposed Hours 18* (6 am to 12 am) 15 (8 am to 11 pm) 15 (8 am to 11 pm) Vehicles 25 15 21 Route s 4 4 4 Frequency Average of 15 to 20 minutes Average of 30 minutes Average of 20 minutes *Except for Sundays which was 16 hours (8 am to 12 am) 151 Building Fund Revenue, Expenditures, and Fund B alance Tre nd - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2015 2016 2017 2018 2019 2020 2021 2022 Projection Fundbalance History Revenue History Expenditure History 153 Cost Impa cts FY 2020 and FY 2021 experienced a spike in salary and operating expenses due to: ○Enhanced staffing in Building Code Enforcement due to new stricter requirements for recertification of buildings and enforcement of building code compliance ○Enhanced staffing of plan review and clerical staff and overtime due to new legislation requiring shorter turn around times on residential projects ○Enhanced staffing of Building Customer Service Center due to increased volume of calls and emails to assist customers with new way of processing applications online ○Vehicle fleet replacement to Electric and Hybrid vehicles ○Building Department now pays rent to the General Fund for space in City Hall 154 Building Fee Comparables 155 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Miami Bea ch Coral Gables Sunny Isles Hallandale Bea ch Key Bisca yne W est Palm Bea ch Doral Ft L auderdale City of Miami Base Building Permit Fee Residential Commercial 156 Building Department Analysis Building department budgeted expenditures for FY 22 are $17,456,00 and revenue is $11,695,000 resulting in a budgeted gap of $5 million Increasing percentage fee from 1.9% to 2.2% commercial permit and 1.7% to 2% residential would be inline with other cities T his increase could potentially generate approximately $750,000 in additional revenue In order to alleviate some of this increase to homeowners, the department will provide a 5% reduction on the percentage for assessing the permit fee for residential permits and condominium owners 157 40% 25% 30% 15% 33% 17% 30% 15% 30% 15% 30% 15% 10% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Private provider Review & Inspection Private provider Inspection only Miami Beach Coral Gables City of Miami Sunny Isles Doral FT L auderdale Hallandale B each Private Provider Discount Summary of Proposed Fee Changes Proposed fee changes will help reduce the use of fund balance including: ○Increasing the percentage charged for building permit fee from 1.9% to 2.2% for Commercial permits and from 1.7% to 2% for Residential permits ○R educing the discount given for private provider jobs from 40% to 25% for Private Provider review and inspections, and from 25% to 12% for private provider inspections, due to the level of oversight and rechecking that is required to ensure complete compliance of the Florida Building Code ○Setting a Minimum Job Value for the construction cost valuation required on all permit applications to be $161.68 per square foot for new construction and alteration, that is adjusted annually by the ENR*index used for construction cost valuations. ○Setting minimum permit fee of $125 158* Construction & Building Cost Index 159 Private Provider Discount •After careful review Private Provider Discounts need to be adjusted to reflect city building department actual expenses •Decreasing private provider credit from 40% to 25% for Private provider review & inspection and 25% to 12% for inspections only would be inline with other cities •T his is estimated to generate $350,000 in additional revenue. •Currently City of Miami Beach offers the highest private provider discount compared to other neighbor cities. North Beach Community Redevelopment Agency North Beach CRA R edevelopment Plan Goals ○Goal 1: Economic Development ○Goal 2: Resiliency & Infrastructure ○Goal 3: Cultural Arts, B randing & Marketing, and Communication ○Goal 4: Neighborhood Character ○Goal 5: Quality of Life ○Goal 6: L everaging R esources 161 North Beach CRA Q: How does tax increment financing (TIF) work in general? A: A portion of property tax growth (the “increment”) is captured for local use. Q: What portion of the increment is dedicated to the North Beach CRA? A: 60% of the City and County incremental growth will go to North Beach CRA Trust Fund. Base Year Year 1 Year 2 T ax value: $1,050,000 T axes due: $2,625 I ncrement: $125 x 60% T ax value: $2,000,000 T axes due: $5,000 I ncrement: $2,500 x 60% T ax value: $1,000,000 T axes due: $2,500 Increment: $0 North Beach CRA TRUST FUND 162 North Beach CRA 163* B ased on 3% taxable value growth assumption. North Beach CRA Funding recommendations ○FY2023 Initial Priorities: Beautification, Enhanced City Services, Small Business Development, Arts and Culture Tourism and Branding ○Additional Priorities beyond FY 2023: Affordable and Workforce Housing, Office Development, Infrastructure ○During initial five years, no less than 50% of increment revenue should remain in the Trust Fund to be designated for future project(s) with significant redevelopment impact. ○Expedited building permit process for qualified properties within the district, potentially administered through Building Department’s North Beach office. 164 FY 2023 Preliminary General Fund CSL Budget Fisca l Ye a r 2023 R evenues $ 353.1M Expenditures $ 364.1M Surplus / (Gap)($11.0M) Property Value Increase Necessary to Balance:5.5% $2.0MEstimated1% Increase in Property Value: Notes: Includes making 17 police officers previously added as one-time permanent ($2.3M) Does not include impacts from CBA’s currently under negotiation 165 FY 2023 Preliminary Resort Tax Fund CSL Budget Fisca l Ye a r 2023 R evenues $ 71.8M Expenditures $ 70.8M Surplus / (Gap)$1.0M Note : Does not include $3.2M programming costs for Spring Break 166 Next Steps Next Steps FERC Budget Briefing Operating Budget July 15 th FERC Budget Briefing Finalize Capital & Operating Budgets July 22 nd Finalize maximum millage rates for Property Appraiser July 20 th FERC Budget Briefing Capital Budget June 24 th 168 Next Steps City Manager and OMB finalize Proposed Budget August •FIRST PUBLIC HEARING o Adopt tentative millage rates o Adopt tentative operating and capital budgets September 14 th Beginning of Fiscal Y ear 2023 October 1 st •SECO N D PUBLIC HEARIN G o Adopt final millage rates o Adopt final operating and capital budgets September 28 th 169 Thanks!