LTC 094-2024 Fiscal Year 2024 First Quarter AnalysisLETTER TO COMMISSION
MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC# 094-2024
TO: mbers of the City Commission
FROM: Alina T. Hudak, City Manag r
DATE: March 15, 2024
SUBJECT: Fiscal Year 2024 First Quarter Analysis
The purpose of this Letter to Commission (L TC) is to provide the Mayor and City Commission
with the status of the Fiscal Year (FY) 2024 operating budget as of the first quarter ending
December 31, 2023 with projections through the fiscal year ending September 30, 2024.
This analysis is a preliminary projection based on actual experience during the first three months
of the current fiscal year, which is not a definitive indication of the experience for the remainder
of the current fiscal year. It does, however, provide an initial glance in identifying any potential
areas of concern, as well as opportunities. For purposes of these projections, certain assumptions
have been made for both revenues and expenditures that will continue to be refined as additional
data and information becomes available.
SUMMARY
Based on the first quarter of the current fiscal year (FY 2024), revenue and expenditure
projections through September 30, 2024 for the General Fund reflect a projected year-end surplus
of approximately $10.4 million as of the first quarter, while the Resort Tax budget reflects a
projected year-end shortfall of approximately $5.3 million as of the first quarter.
In order to address the year-end shortfall currently projected in the Resort Tax budget as of the
first quarter, the Administration is recommending that the contribution from the Resort Tax budget
to the General Fund of $46.1 million budgeted in FY 2024 for tourism related expenditures in the
General Fund be reduced by $5.3 million to $40.8 million for FY 2024, should these projections
be realized at year-end.
Additional details on these projections are outlined further in the forthcoming analysis.
FY 2024 General Fund Resort Tax
Projected Surplus/(Shortfall) as of Q1
Year-end Adjustments:
Reduction in budgeted contribution from Resort Tax Fund to General Fund
for tourism related expenditures
Remaining Projected Surplus/(Shortfall) as of Q1
$10,374,000
(5,333,000)
$5,041,000
($5,333,000)
5,333,000
$0
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After accounting for the adjustment in the budgeted FY 2024 contribution from the Resort Tax
budget to the General Fund, the remaining General Fund surplus of approximately $5.0 million
projected as of the first quarter is recommended to be set aside to fund any additional General
Fund required reserve levels and targets that will be re-evaluated during the development of the
FY 2025 budget development process that recently commenced. As a reminder, the City's
General Fund reserve levels and targets are adjusted annually based on the adopted General
Fund operating budget.
Any excess surplus realized at year end, after fully funding the General Fund reserve levels and
targets for FY 2025, is recommended to be set aside for capital project funding needs. The
Adopted FY 2024-2028 Capital Improvement Plan (CIP), which was approved by the City
Commission on September 27, 2023, through Resolution No. 2023-32788, reflects approximately
$1_1billion in capital project needs over the next five years, of which approximately $1.0 billion is
unfunded from FY 2025-2028.
RESERVES
The preliminary General Fund reserve as of September 30, 2023 is $106.9 million, which is the
equivalent of 3 months, or 25.0%, based on the adopted FY 2024 General Fund budget of $427.6
million. The final audited amount as of September 30, 2023 will not be known until the City's
annual financial audit, which is currently ongoing, is finalized later on this year. The current
reserve policy for the General Fund is a required 2 months with a goal of 3 months pursuant to
Resolution No. 2019-30954 th at was adopted by the City Commission on September 11, 2019.
The preliminary 2% Resort Tax reserve as of September 30, 2023 is $40.1 million, which is the
equivalent of 6 months, or 50.0%, based on the adopted FY 2024 2% Resort Tax budget of $80.2
million. Similar to the General Fund, the final audited amount as of September 30, 2023 will not
be known until the City's annual financial audit, which is currently ongoing, is finalized later on
this year. The current reserve policy for the 2% Resort Tax budget is a minimum of 2 months with
a goal of 6 months pursuant to Resolution No. 2019-30664 th at was adopted by the City
Commission on January 16, 2019.
Since reserve levels and targets are adjusted annually based on the annual operating budgets
pursuant to the City's current reserve policies adopted by the City Commission, any additional
funding requirements for these reserves will be re-evaluated during the development of the FY
2025 budget development process that recently commenced.
ANALYSIS
All General Fund, Enterprise, Internal Service, and Special Revenue Funds budgets are projected
to be at or below their current amended budgets as of year-end with revenues projected to be
equivalent to or in excess of expenditures, except for specific General Fund departments, the
Sewer Operations and Convention Center Enterprise Funds, the Risk Management Internal
Service Fund, and the Resort Tax Special Revenue Funds budgets that will be detailed further in
this analysis.
Letter to Com m ission - Fiscal Year 2024 First Quarter Analysis
Page 3 of 15
GENERAL FUND
First Quarter Status
An analysis of actual operating revenues and expenses for the period October 1, 2023 through
December 31, 2023 reflects an operating surplus of approximately $154.3 million. While the actual
surplus as of December 31, 2023 may seem unusual when compared to the projection for the
current fiscal year ending September 30, 2024, it should be noted that the City receives a large
percentage of its annual ad valorem property tax revenues during the first several months of the
fiscal year. Ad valorem property tax revenues represent approximately 59.2% of total budgeted
revenues adopted for FY 2024 and 78.2% of actual revenues that have been collected during the
first three months of the current fiscal year.
As of December 31, 2023, total revenues collected in the General Fund were 56.0% of the current
amended budget, or $246.4 million, primarily due to the large percentage of property tax revenues
collected during the first three months of the current fiscal year. Conversely, expenditures were
20.9% of the current amended budget, or $92.1 million, since there are often delays in
expenditures until the close of the fiscal year.
FY 2024 Budget
1/4 of Amended Preliminary Variance from 1/4
General Fund Adopted Budget Amended Budget Actuals as of Amended Budget
Budget 12/31/2023 Over / (Under)
Revenues $ 427,648,000 $ 440,067,000 $ 110,016,750 $ 246,429,165 $ 136,412,415
Expenditures $ 427,648,000 $ 440,067,000 $ 110,016,750 $ 92,091,841 $ (17,924,909)
Excess of Revenues Over/(Under) Expenditures $ 154,337,323
Year-End Projections
Year-end operating revenues and expenditures projected through September 30, 2024 provide a
more realistic indication of any estimated year-end surpluses or shortfalls as of this point in time.
While actual revenues and expenses reflected in this analysis are as of December 31, 2023, these
projections also incorporate more current information that may be available.
A summary of the preliminary General Fund revenues and expenditures as of December 31, 2023
with projections through September 30, 2024 reflects a projected year-end surplus of
approximately $10.3 million in the General Fund. The Administration recommends $5.3 million be
used to address the year-end shortfall projected in the Resort Tax budget through a reduction in
the budgeted FY 2024 contribution from the Resort Tax Fund to the General Fund for tourism
related expenditures budgeted in the General Fund.
This would result in a remaining year-end surplus projected in the General Fund as of the first
quarter of approximately $5.0 million, which is recommended to be set aside to fund any additional
General Fund required reserve levels and targets that will be re-evaluated during the FY 2025
budget development process that recently commenced.
Any excess surplus realized at year end, after fully funding the General Fund reserve levels and
targets for FY 2025, is recommended to be set aside for capital project funding needs.
Letter to Commission - Fiscal Year 2024 First Quarter Analysis
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FY 2024 Budget
General Fund Adopted Budget Amended Budget Projected Difference % Over / (Un der)
Reven ues $ 427,648,000 $ 440,067,000 $ 448,366,000 $ 8,299,000 1.9%
Expenditures $ 427,648,000 $ 440,067,000 $ 437,992,000 $ (2,075,000) -0.5%
Excess of Revenues Over/(Under) Expenditures $ 10,374,000
Reduction in Contribution from Resort Tax Fund to General Fund (5,333,000)
Remaining Excess of Revenues Over/(Under) Expenditures $ 5,041,000
Operating Revenues
As of December 31, 2023, actual operating revenues collected were approximately 56.0% of the
current amended budget, or $246.4 million, with operating revenues through the fiscal year ending
September 30, 2024 projected at $448.4 million, which is approximately 1.9%, or $8.3 million,
above the current amended budget.
Property tax collections for FY 2024 are being projected at 95.0% of total property taxes assessed,
which is consistent with the original adopted budget and allows for discounts and a level of
adjustment for appeals that is consistent with historical levels. The impact of these appeals and
adjustments realized for the FY 2024 budget will be provided by the Miami-Dade County Property
Appraiser in July 2024 when the City's certified property values are received for the upcoming
year.
General Fund revenues by category with significant variances to budget in excess of 10.0%, or
$300,000, are further explained below:
Other Taxes - This category includes revenues from franchise fees for gas and electricity,
as well as utility taxes for telephone, electricity, and gas and is projected to be above the
current amended budget by 9.6%, or $2.6 million, primarily due to franchise and utility taxes
from electricity trending higher than originally anticipated based on current economic activity.
Licenses and Permits - Th is category includes revenues from business tax receipts, the
outdoor dining concession program, and Fire, Planning, and Public W orks permit services
and activities and is projected to be above the current amended budget by 6.1 %, or $1.3
million. This is primarily due to additional revenues from Fire, Planning, and Public W orks
permit review services and activities that are trending higher than anticipated from ongoing
real estate and development activity in the City.
Fines and Forfeits - Th is category includes revenues from traffic fines, violations and false
alarm fees, and code enforcement violations and is projected to be above the current
amended budget by 17.7%, or $267,000, primarily due to Fire department false alarm fees
and fines from code enforcement violations trending higher than previous years and
budgeted.
Interest - This category is comprised of various sources of interest income derived from the
City's current investments and is projected to be 21.6%, or $1.3 million, above the current
amended budget due to higher than anticipated interest rates and returns.
Letter to Commission - Fiscal Year 2024 First Quarter Analysis
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Miscellaneous - This category, among other things, includes revenues from various
categories such as chargebacks to capital projects for the Office of Capital Improvement
Projects' (CIP) operations, various beach concessions, and various types of reimbursements.
FY 2024 revenues are projected to be 23.4%, or $3.5 million, above the current amended
budget mostly due to $1.75 million received from the City's vacation of portions of Alton Court
approved pursuant to Resolution No. 2022-32250, $1.0 million received from the concession
agreement that was approved by the City Commission on October 18, 2023, through
Resolution No. 2023-32825, with the Boucher Brothers Pier Park, LLC, and $407,000 of
additional reimbursements from the State of Florida and Division of Emergency Management
for emergency aid/services provided by the City, as well as additional revenues of $244,000
projected from the City's other various beachfront concession agreements trending higher
than previous years and budget.
For a detail of General Fund revenues by category, refer to the attached Exhibit A.
Operating Expenditures
As of December 31, 2023, actual expenses were 20.9%, or $92.1 million, of the current amended
budget with operating expenditures through the fiscal year ending September 30, 2024 projected
at $438.0 million, which is approximately 0.5%, or $2.1 million, below the current amended
budget.
General Fund expenditures by department projected to exceed budget or with significant
variances to budget in excess of 10.0%, or $300,000, are further explained below:
Parks & Recreation - The department is projected to be approximately 2.2%, or $1.0 million,
below the current amended budget, primarily due to the transition of the management and
operations of the Flamingo Park Tennis Center from the City's Parks and Recreation
Department to Canas Tennis Academy, LLC that was finalized during the current fiscal year,
in accordance with Resolution No. 2023-32597 that was adopted by the City Commission. As
a result, the revenues and expenditures associated with the operations of this facility that were
part of the City's current operating budget are now the responsibility of the contractor, of which
the City will receive a fee pursuant to the approved agreement.
Parks & Recreation
FY 2024 FY 2024 Projected vs
Amended Budget Projected Amended % Over/ (Under)
Budget Variance
Expenditures $ 47,359,000 $ 46,332,000 $ (1,027,000) -2.2%
Public Wor ks - The department is projected to be below the current amended budget by
3.0%, or $527,000, resulting primarily from projected savings in personnel services
expenditures as a result of numerous vacancies for budgeted full-time positions within the
department's Engineering, Streets and Street Lighting, and Greenspace Management
divisions attributed to ongoing challenges in the recruitment of qualified candidates based on
current departmental operating needs.
Public Works
FY 2024 FY 2024 Projected vs
Amended Budget Projected Amended % Over / (Under)
Budget Variance
Expenditures $ 17,679,000 $ 17,152,000 $ (527,000) -3.0%
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Police - The department is projected to be 1.2%, or $1.8 million, above the current amended
budget primarily due to the projected usage of $5.2 million of unbudgeted police overtime for
several unanticipated initiatives and staffing details, which include enhanced high police
visibility throughout the City as a result of the Israel attacks that occurred on October 7, 2023
to ensure public safety, as well as enhanced staffing for traffic mitigation.
The department currently has several sworn and non-sworn position vacancies, which have
also resulted in the department relying on additional usage of overtime to maintain required
minimum patrol staffing and police visibility citywide. The salary savings from these vacant
positions are projected to partially offset the projected overtime overage.
The Administration will continue to monitor the department's expenditures over the upcoming
months, with a goal towards identifying savings to offset these unbudgeted overtime
expenditures in the department's General Fund budget, and if necessary, amending the
department's budget at year-end through the realignment of projected savings in other
existing General Fund department appropriations.
Police
FY 2024 FY 2024 Projected vs
Amended Budget Projected Amended % Over / (Under)
Budget Variance
Expenditures $ 146,814,000 $ 148,645,000 $ 1,831,000 1.2%
While the above-listed General Fund departments comprise those projected to exceed their
current amended budgets or with significant variances to budget in excess of 10.0%, or $300,000,
all other departments within the General Fund are projected to have savings at year-end that may
be realigned within the General Fund to address the projected department overages noted above,
should these projections be realized at year-end.
For a detail of General Fund expenditures by department, refer to the attached Exhibit A.
ENTERPRISE FUNDS
The City accounts for those goods and services provided by a particular department to external
users for which a fee is charged as Enterprise Funds. The City's Sanitation, Sewer, Storm Water,
Water, Parking, Building, and Convention Center operations comprise this category of Proprietary
Funds.
An analysis of actual three-month operating expenses for the period October 1, 2023 through
December 31, 2023 reveals that all Enterprise Funds have actual expenses that are less than
one quarter of their current FY 2024 amended budgets. It is important to note that this is not
representative of trends for a full fiscal year, as there is often a lag in processing of expenditures,
particularly those billed by outside entities for services provided.
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EN T E R P R IS E FU N D S
S anitat io n S ewe r Storm W at er Water Parki ng Building Convention
Center
FY 2024 Adopted Budget 24,789,000 64,101,000 38,463,000 44,184,000 52,993,000 18,909,000 45,678,000
FY 2024 Am ended Budaet 25,878,000 65,734,000 39,930,000 47,911,000 53,873,000 18,923,000 45,694,000
1/4 Ad opted Budget 6,197,250 16,025,250 9,615,750 11,046,000 13,248,250 4,727,250 11,419,500
1/4 Am en ded Budget 6,469,500 16,433,500 9,982,500 11,977,750 13,468,250 4,730,750 11,423,500
Preliminary Revenues as of 12/31/2023 7,052,485 16,526,484 9,974,329 11,490,982 13,055,783 5,286,051 1,942,815
Preliminary Expenditures as of 12/31/2023 5,317,280 15,680,239 2,601,303 8,757,052 6,341,596 3,617,272 1,422,602
Expenditures Above/(Bel ow) 1/4 Am ended Budget (1,152,220) (753,261) (7,381,197) (3,220,698) (7,126,654) (1,113,478) (10,000,898)
% Varian ce -4.5% -1.1% -18.5% -6.7% -13.2% -5.9% -21.9%
Year-end operating revenue and expenditure projections through September 30, 2024 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time.
While the actual revenues and expenses presented above are as of December 31, 2023, the
year-end projections incorporate more current information that may be available.
Revenues for all Enterprise Funds are projected to be equivalent to or in excess of expenditures
as of year-end. In addition, all Enterprise Funds budgets are projected to be under budget, except
for the Sewer and Convention Center Funds budgets. Revenues and expenditures for the Sewer
and Convention Center Funds budgets are projected to be above budget and are detailed further
below.
E N T E R P R IS E FU N D S
S anitat ion S ewe r Storm Wat er Water Parking Building Convention
Center
FY 2024 Adopted Budget 24,789,000 64,101,000 38,463,000 44,184,000 52,993,000 18,909,000 45,678,000
FY 2024 Am ended Bud get 25,878,000 65,734,000 39,930,000 47,911,000 53,873,000 18,923,000 45,694,000
FY 2024 Projections:
Charges for Services 22,237,500 64,812,000 38,196,000 44,395,000 43,241,000 16,728,000 25,877,000
Other 2,241,000 2,023,000 1,563,000 2,440,000 8,655,000 2,044,000 23,238,000
Use of Fund Balance/Retained Earninqs 1,239,500 0 0 0 2,205,000 0 0
FY 2024 Revenue Proiections 25,718,000 66,835,000 39,759,000 46,835,000 54,101,000 18,772,000 49,115,000
$ O v e r/(U n de r) Ame nd ed B uda et (160,000) 1,101,000 (171,000) (1,076,000) 228,000 (151,000) 3,421,000
% Over/(Under) Am en ded Budget -0.6% 1.7% -0.4% -2.2% 0.4% -0.8% 7.5%
FY 2024 Expen diture Projection s 25,718,000 66,369,000 39,759,000 46,347,000 52,620,000 18,276,000 47,885,000
$ O v e r/(U nd e r) Ame n de d B u dget (160,000) 635,000 (171,000) (1,564,000) (1,253,000) (647,000) 2,191,000
% Over/(Under) Am ended Budget -0.6% 1.0% -0.4% -3.3% -2.3% -3.4% 4.8%
R e v e nu e s O v e r/(U n de r) Ex pe n ditures 0 466,000 0 488,000 1,481,000 496,000 1,230,000
Sewer Operations - Both revenues and expenditures are projected to exceed the current
amended budget for the Sewer Operations Fund. Revenues are projected to be above the
current amended budget by approximately $1.1 million, or 1.7%, while expenditures are
projected to be above the current amended budget by $635,000, or 1.0%. This is mainly
attributed to an increase in usage of sewer treatment services by retail customers, which, in
turn, is projected to result in an increase in the projected costs incurred by the City for the
sewer treatment services that are provided by Miami-Dade County to the City. Should these
additional revenues and expenditures be realized at year-end, the Sewer Operations Fund
budget will be amended at year-end to recognize and appropriate the additional revenues
collected and expenditures incurred.
Convention Center - The Convention Center Fund budget is projected to be above the
current amended budget by approximately $2.2 million, or 4.8%, primarily due to an increase
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in the number of events (59) that have been or are now anticipated to be held this fiscal year
compared to the 43 events that were originally anticipated when the FY 2024 budget was
developed last year. Although expenditures are projected to exceed the current amended
budget, revenues are projected to be above the current amended budget by approximately
$3.4 million, or 7.5%, resulting in a projected additional surplus of approximately $1.2 million
that would be available to be set aside for renewal and replacement of Convention Center
assets and/or future operating and other expenditure obligations should these projections be
realized at year-end. Due to changes in the scheduling of events, the surplus projected as of
the first quarter may vary as of year-end; therefore, the Convention Center Fund's operations
will continue to be monitored over the coming months.
These projections will continue to be refined further as additional information becomes available.
INTERNAL SERVICE FUNDS
The City accounts for goods and services provided by one department to other departments on a
cost reimbursement basis as Internal Service Funds. Central Services, Fleet Management,
Information Technology, the Office of the Inspector General, Facilities Management, Risk
Management (Self Insurance), and Medical and Dental comprise this category of Proprietary
Funds.
An analysis of actual three-month operating revenues and expenses for the period October 1,
2023 through December 31, 2023 reveals that all Internal Services Funds have actual expenses
that are less than one quarter of their current FY 2024 amended budgets. Similar to the Enterprise
Funds, this is not representative of typical trends for a full fiscal year, as there is often a lag in
processing of expenditures, particularly those billed by outside entities for services provided.
INTERNAL SERVICE FUND S
Central Fleet Info rma tion Inspe ctor Facilities Risk Medical&
Dental
Serv ice s Manag eme nt Technology General Manag eme nt Manag eme nt Insurance
FY 2024 Adopted Budaet 1,180,000 19,952,000 19,895,000 1,724,000 12,769,000 26,740,000 49,842,000
FY 2024 Amended Budget 1,202,000 23,430,000 21,550,000 2,166,000 13,811,000 26,870,000 49,842,000
1/4 Adopted Budget 295,000 4,988,000 4,973,750 431,000 3,192,250 6,685,000 12,460,500
1/4 Amended Budaet 300,500 5,857,500 5,387,500 541,500 3,452,750 6,717,500 12,460,500
Preliminarv Revenues as of 12/31/2023 275,591 5,147,230 4,712,221 430,506 3,185,125 7,204,052 12,349,894
Preliminary Expenditures as of 12/31/2023 205,266 1,592,912 5,047,956 409,377 1,732,841 2,804,605 9,772,571
Expenditures Above/(Below) 1/4 Amended Budget (95,234) (4,264,588) (339,544) (132,123) (1,719,909) (3,912,895) (2,687,929)
% Variance -7.9% -18.2% -1.6% -6.1% -12.5% -14.6% -5.4%
Year-end operating revenue and expenditure projections through September 30, 2024 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time.
While the actual revenues and expenses presented above are as of December 31, 2023, the
year-end projections incorporate more current information that may be available.
Revenues for all Internal Service Funds are projected to be equivalent to or in excess of
expenditures as of year-end. In addition, all Internal Service Funds budgets are projected to be
under budget, except for the Risk Management Fund budget that is detailed further below.
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IN T E R N AL S E R V IC E FU N D S
C e ntral Fleet Info rma tion Inspe ct or Facili ties Risk M edic al&
Dent al S erv ice s M anag eme nt Techno log y G eneral M anag eme nt M anag eme nt Insurance
FY 2024 Adopted Budget 1,180,000 19,952,000 19,895,000 1,724,000 12,769,000 26,740,000 49,842,000
FY 2024 Amended Budaet 1,202,000 23,430,000 21,550,000 2,166,000 13,811,000 26,870,000 49,842,000
FY 2024 Projections:
Charges for Services 1,061,000 19,152,000 18,779,000 1,711,000 12,388,000 24,628,000 48,570,000
Other 38,000 913,000 315,000 9,000 291,000 2,228,000 360,000
Use of Fund Balance/Retained Earnings 34,000 3,258,000 2,291,000 340,000 938,000 184,000 0
FY 2024 Revenue Projections 1,133,000 23,323,000 21,385,000 2,060,000 13,617,000 27,040,000 48,930,000
$ O v e r/(U nde r) Ame n ded B ud aet (69,000) 1107,000) (165,000) (106,000) (194,000) 170,000 (912,000)
% Over/(Under) Amended Budget -5.7% -0.5% -0.8% -4.9% -1.4% 0.6% -1.8%
FY 2024 Expenditure Projections 1,133,000 23,323,000 21,385,000 2,060,000 13,617,000 27,040,000 48,930,000
$ O v e r/(U n de r) Amen d e d Bu dget (69,000) (107,000) (165,000) (106,000) (194,000) 170,000 (912,000)
% Over/(Under) Amended Budaet -5.7% -0.5% -0.8% -4.9% -1.4% 0.6% -1.8%
R ev e n ue s O v e r/(U n de r) Expe nditures 0 0 0 0 0 0 0
R is k M a na gem e nt - Th is fund is pro jected to be 0.6%, or $170,000, above the current
am ended budget, prim arily due to unforeseen increases in general liability and law
enfo rcem ent claim s and reserv es fo r claim s incurred but not reported (IBNR) trending higher
than budget based on the latest actuarial projections as of the first quarter of the current fiscal
year. Since claim s fluctuate, the trend w ill continue to be monitored over the coming months.
If these trends continue at current levels fo r the rem ainder of the fiscal year, this will be
addressed at year-end with the use of prior year fund balance in the Risk Management Fund.
These pro jections w ill continue to be refined as additional info rm ation becom es available.
S P E C IA L R EV E N U E FU N D S
S pecial R evenue Funds consist of revenues and expenditures which are legally restricted or
com m itted fo r specific purposes, other than debt service and/or capital projects. Special Revenue
Funds include Resort Tax, as well as Transportation and People's Transportation Plan (PTP )
Fun d opera tions , 7" Stre et G ara ge oper a tions, 5" & Al ton G ara ge oper ation s, the Tourism and
Hospitality Scholarship Pro gram , Info rm ation and Com munications Technology Fund, Education
C om pact Fund, Franchise W aste Haulers and Sustainability Contributions, the Residential
Housing P ro gram , R ed Li ght Cam era Program operations, Em er g en cy 911 Fund, Miami Beach
Cultural Arts C ouncil (CAC), Norm andy Shores and the City's three Security Guard Special
Taxing Districts (B iscayne Point, Biscayne Beach, and Allison Island), Miami City Ballet, Art in
P ublic P laces (A iPP ) operations, Tree Preservation and Com mem orative Tree Trust Fund,
Beachfront Concession Initiatives Pro gram , Beach Renourishm ent, Resiliency, Sustainability and
R esiliency, and Biscayne Bay Pro tection Trust Funds, Police Unclaimed Pro perty and Crash
Report S ales Funds, Police Confiscation Trust Funds (Federal and State), Police Training and
S chool R esources Fund, and the Adopt-a-Bench and Brick Paver Programs.
An analysis of actual three-m onth operating revenues and expenses for the period October 1,
2023 thro ugh Decem ber 31, 2023 reveals that all Special Revenue Funds have actual expenses
that are less than one quarter of their current FY 2024 am ended budgets, except for the People's
T ransportation Plan (PTP ), Art in Public Places (AiPP), and Tree Preservation Funds. Similar to
other funds, the actuals incurred thro ugh Decem ber 31, 2023 are not typically representative of
trends fo r a full fiscal year.
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Year-end operating revenue and expenditure projections through September 30, 2024 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time.
While the actual revenues and expenses presented above are as of December 31, 2023, the
year-end projections incorporate more current information that may be available.
Revenues for all Special Revenue Funds are projected to be equivalent to or in excess of
expenditures as of year-end and all Special Revenue Funds budgets are projected to be below
their current amended budgets.
R E S O R T T AX
The City's Resort Tax budget is primarily supported by 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
tourism industry, which includes, but is not restricted to City services in tourism areas and
enhanced City services during high impact periods, special events sponsorships, publicity,
advertising, promotional events, convention bureau activities, capital improvements and the
maintenance of all physical assets in connection therewith, and payment for the reasonable and
necessary expenses of collecting, handling, and processing of said tax.
2 % R e s o rt T a x
Based on actual collections for the current fiscal year from October to December, total two percent
Resort Tax revenues for FY 2024 are projected to be 7.6%, or $6.2 million, below the current
amended budget as of year-end, with the remaining months conservatively projected at
approximately 92.0% of FY 2023 collections since actual collections for the first quarter of the
fiscal year from October to December have decreased an average of approximately 8.0%
compared to prior year collections for the same quarter.
Total FY 2024 two percent Resort Tax expenditures are projected to be 1.1%, or $881,000, below
the current amended budget as of year-end primarily due to a $872,000 decrease in the combined
contributions to the Miami Beach Visitor and Convention Authority (VCA) and Greater Miami
Convention & Visitors Bureau (GMCVB) that are based on a percentage of two percent Resort
Tax collections projected below budget. Further, an additional $9,000 in year-end savings is
projected as of the first quarter due to a combination of personnel and miscellaneous
departmental operating expenditures in the 2% Resort Tax budget.
1% R e s o rt T a x (Q u ality o f Li fe)
The proceeds of the one percent bed tax, as adopted through Resolution No. 2018-30512, and
continuing in FY 2024, unless amended by the City Commission, are to be utilized as follows:
60% allocated for Transportation initiatives in tourist-related areas; 10% 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.
Based on actual collections for the current fiscal year from October to December, one percent
bed tax revenues for FY 2024 are projected to be 9.1%, or $1.7 million, below the current
amended budget as of year-end. Since transfers for Transportation initiatives in tourism-related
areas, North, Middle, and South Beach quality of life projects, and various arts and cultural
programs that are funded by the CAC are directly based on the proceeds of the one percent bed
tax, expenditures are equally projected to be 9.1%, or $1.7 million, below the current amended
L e tt e r to C o m m is s io n - Fis c al Ye a r 2 0 2 4 F irs t Q u a rt e r A n a ly s is
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budget as of year-end, of which approximately $1.0 million is allocated to Transportation initiatives
in tourism-related areas, $516,000 is allocated equally to North, Middle, and South Beach quality
of life projects, and $172,000 is allocated to various arts and cultural programs that are funded by
the CAC.
1% Resort Tax (Convention Center)
Similarly, the proceeds of the additional one percent bed tax levied solely for the purposes of
expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center,
including debt service related thereto, as well as providing capital renewal and replacement
funding for the Miami Beach Convention Center are projected to be 9.1%, or $1.7 million, below
the current amended budget as of year-end. Since the proceeds of the additional one percent bed
tax must first provide for the payment of debt service and any excess be set-aside for capital
renewal and replacement funding for the Miami Beach Convention Center, additional one percent
bed tax expenditures are also projected to be 9.1%, or $1. 7 million, below the current amended
budget as of year-end.
Total Resort Tax
Overall, due to actual Resort Tax collections for the first quarter of the current fiscal year from
October to December trending lower than prior year collections for the same period at an average
of approximately 8.0% and collections for the remaining months of the current fiscal year
conservatively projected at approximately 92.0% of prior year collections, combined Resort Tax
revenues are projected to be 8.1%, or $9.6 million, below the current amended budget as of year-
end, while expenditures are projected to be 3.6%, or $4.3 million, below the current amended
budget, resulting in a projected shortfall of $5.3 million as of year-end.
FY 2024 FY 2024 Preliminary % Actual of O ver/(Under) %
O ver/(Und er) Adopted Ame nde d Actuals as of Amended Ame nde d Ame nded Budget Budget 12/31/2023 Budget Budget Budget
Revenues
2% Resort Tax 76,614,000 76,614,000 10,149,023 13.2% 70,580,000 (6,034,000) -7.9%
Miscellaneous Revenues 1,844,000 1,844,000 477,897 25.9% 1,664,000 (180,000) -9.8%
Fund Balance/Retained Earnings/PY Surplus 1,756.000 2,844,000 0 0.0% 2,844,000 0 0.0%
1% Resort Tax (QOL) 18,810,000 18,810,000 0 0.0% 17,089,000 (1,721,000) -91%
Additional 1% Resort Tax for Convention Center 18,810 000 18,810,000 0 0.0% 17,089,000 1,721,000 -91%
Total Revenues 117,834,000 118,922,000 10,626,920 8.9% 109,266,000 9,656,000 -8.1%
Expenditures
General Fund Contribution 46,107,000 46,107,000 11,526,750 25.0% 46,107,000 0 0.0%
Sanitation Fund Contribution 3,152,000 3,152,000 788,000 25.0% 3,152,000 0 0.0%
Contribution to GMCVB 9,357,000 9,357,000 873,680 9.3% 8,776,000 (581,000) -6.2%
Contribution to VGA 3,679,000 3,679,000 234,056 6.4% 3,388,000 (291.000) -7.9%
Contribution to Mt. Sinai 1,000,000 1,000,000 0 0.0% 1,000,000 0 0.0%
Other Operating/Other Uses 16,919,000 18,007,000 1,448,590 8.0% 17,998,000 (9,000) 0.0%
Transfer to NB, MB, SB Capital, Transp, and Arts (QOL) 18,810,000 18.,810,000 0 0.0% 17.,089,000 (1,721,000) -9.1%
Addt'I 1% Con. Center Debt Service & Ca. Ren & R I. 18,810,000 18,810,000 0 0.0% 17,089,000 1,721.000 -9.1%
Total Ex enditures 117,834,000 118,922,000 14,871,076 12.5% 114,599,000 4,323,000 -3.6%
Excess of Revenues Over/ Under Ex enditures 0 0 4,244,156 5,333,000 5,333,000
Reduction in Contribution from Resort Tax Fund to General Fund 5,333,000
Excess of Revenues Over/ Under Ex enditures 0
As previously mentioned, should these projections as of the first quarter be realized at year-end,
it is recommended that the projected shortfall of $5.3 million be addressed through a reduction in
the annual contribution from the Resort Tax budget to the General Fund for tourism eligible
expenditures that are budgeted in the General Fund. For FY 2024, the budgeted contribution from
the Resort Tax budget to the General Fund is $46.1 million; therefore, the contribution for FY 2024
would be decreased at year-end to $40.8 million to address the projected shortfall.
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Note, based on the most recent cost allocation study that was completed by an outside consultant
this year using FY 2023 expenses, it was estimated that there are approximately $186.5 million
in eligible Resort Tax expenditures in the General Fund.
CITY CENTER RDA
The City of Miami Beach City Center Redevelopment Agency ("City Center RDA") is a blended
Special Revenue Fund and separate entity whose Chairperson and Board of Directors are also
the City's Mayor and City Commission. Funding, which is required to be used within the
boundaries of the City Center RDA pursuant to the approved redevelopment plan and amended
interlocal agreement, is mainly derived from a portion of the tax increment revenues (95%) that
are levied and paid annually by Miami-Dade County and the City to the City Center RDA with
respect to properties that are within the geographical boundaries of the City Center RDA.
An analysis of actual three-month operating revenues and expenses for the period October 1,
2023 through December 31, 2023 reveals that the City Center RDA budget has actual expenses
that are less than one quarter of the current amended budget.
Revenues for the City Center RDA are projected to be in excess of expenditures as of year-end,
with expenditures projected to be at or below the current amended budget. It is important to note
that in accordance with the amended interlocal agreement, any surplus/savings realized from the
City Center RDA's annual operations at year-end must be set aside and used to pay off the
outstanding debt that was issued in 2015 for the expansion and renovation of the Miami Beach
Convention Center facility.
FY 2024 FY 2024 Preliminary % Actual of Over/(Under) %
Over/(Under) Adopted Amended Actuals as of Amended Amended Amended Budget Budget 12/31/2023 Budget Budget Budget
Revenues
Tax Increment Funds - City 31,026,000 31,026,000 31,026,462 100.0% 31,026,000 0 0.0%
Tax Increment Funds - County 24,346,000 24,346,000 25,198,183 103.5% 24,346,000 0 0.0%
Miscellaneous Revenues 288,000 288,000 81,482 28.3% 341,000 53,000 18.4%
Fund Balance/Retained Earn in s/PY Sur lus 6,054,000 6,343,000 0 0.0% 6,343,000 0 0.0%
Total Revenues 61,714,000 62,003,000 56,306,127 90 .8% 62,056 ,000 53,000 0.1%
Expenditures
Admin/Operating Expenditures 892,000 892,000 217,250 24.4% 892,000 0 0.0%
Project Expenditures 13,209,000 13,498,000 2,840,163 21.0% 13,201,000 (297,000) -2.2%
Reserves. Debt Service, and Other Obli ations 47,613,000 47,613,000 1,000,000 2.1% 47,613,000 0 0.0%
Total Expenditures 61,714,000 62,003,000 4,057,413 6.5% 61,706,000 297,000 -0.5%
Excess of Revenues Over/ Under Ex enditures 0 0 52,248,714 350,000 350,000
While the City Center RDA Shops and Garages below are situated within the geographical
boundaries of the City Center RDA, first quarter actuals as of December 31, 2023 with revenue
and expenditure projections through September 30, 2024 are being presented separately in order
to eliminate any perception that the proceeds generated from these facilities' and their operations
are pooled with TIF revenues and other City Center RDA Trust Fund revenues.
An analysis of actual three-month operating revenues and expenses for the period October 1,
2023 through December 31, 2023 reveals that the City Center RDA Shops and Garages have
actual expenses that are less than one quarter of the current amended budgets.
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DA GARAGES AND SHOPS
Anchor Anchor Pennsylvania Pennsylvania Collins Park
Garage Shops Avenue Avenue Garate
Garage Shops 19
FY2024Ad ted Budget 2,894,000 714,000 948,000 296,000 1,426,000
FY 2024 Amended Budget 2,967,000 769,000 948,000 327,000 1,426,000
1/4 Adopted Budget 723,500 178,500 237,000 74,000 356,500
1/4 Amended Budget 741,750 192,250 237,000 81,750 356,500
Preliminary Revenues as of 12/31/2023 820,427 97,043 244,613 0 371,291
Preliminary Expenditures as of 12/31/2023 663,777 17,788 99,956 70,250 119,478
Expenditures Above/(Below) 1/4 Amended Budget (77,973) (174,462) (137.044) (11,500) (237.022)
% Variance -2.6% -22.7% -14.5% -3.5% -16.6%
Revenues for the City Center RDA Shops and Garages are projected to be equivalent to or in
excess of expenditures as of year-end, with expenditures projected to be at or below the current
amended budgets.
RDA GARAGES AND SHOPS
Anchor Anchor Pennsylvania Pennsylvania Collins Park
Garage Shops Avenue Avenue Garage Garage Shops
FY 2024 Adopted Budget 2,894,000 714,000 948,000 296,000 1,426,000
FY 2024 Amended Budget 2,967,000 769,000 948,000 327,000 1,426,000
FY 2024 Projections:
Charges for Services 2,967,000 0 734,000 0 1,411,000
Other 151,000 556,000 161,000 297,000 27,000
Use of Fund Balance/Retained Earnings 0 18,000 0 30,000 0
FY 2024 Revenue Projections 3,118,000 574,000 895,000 327,000 1,438,000
$ Over/(Under) Amended Budget 151,000 (195,000) (53,000) 0 12,000
% Over/(Under) Amended Budget 5.1% -25.4% -5.6% 0.0% 0.8%
FY 2024 Expenditure Projections 2,945,000 574,000 895,000 327.000 1,357,000
$ Over/(Under) Amended Budget (22,000) (195,000) (53,000) 0 (69,000)
% Over/(Under) Amended Budget -0.7% -25.4% -5.6% 0.0% -4.8%
Revenues Over/(Under) Expenditures 173,000 0 0 0 81,000
NORTH BEACH CRA
Similar to the City Center RDA, the North Beach Community Redevelopment Agency ("North
Beach CRA") is also a blended Special Revenue Fund and separate entity whose Chairperson
and Board of Directors are the City's Mayor and City Commission. Funding, which is required to
be used within the boundaries of the North Beach CRA pursuant to the approved redevelopment
plan and interlocal agreement, is mainly derived from a portion of the tax increment revenues
(60%) that are levied and paid annually by Miami-Dade County and the City to the North Beach
CRA with respect to properties that are within the geographical boundaries of the North Beach
CRA.
An analysis of actual three-month operating revenues and expenses for the period October 1,
2023 through December 31, 2023 reveals that the North Beach CRA budget has actual expenses
that are less than one quarter of the current FY 2024 amended budget.
Revenues for the North Beach CRA are projected to be in excess of expenditures as of year-end,
with expenditures projected to be at or below the current amended budget. It is important to note
that in accordance with the North Beach CRA interlocal agreement, any surplus/savings realized
from the North Beach CRA's operations at year-end must be utilized in accordance with the
adopted North Beach CRA redevelopment plan.
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FY 2024 FY 2024 Preliminary % Actual of Over/(Under) %
Over/(Under) Adopted Amended Actuals as of Amended Amended Ame nded Budget Budget 12/31/2023 Budget Budget Budget
Revenues
Tax Increment Funds - City 1,082,000 1,082,000 1,08 2,837 100.1% 1,08 2,000 0 0.0%
Tax Increment Funds - County 851,000 851,000 0 0.0% 85 1,000 0 0.0%
Miscellaneous Revenues 0 0 9,571 20,000 20,000
Fund Balance/Retained Earninas/PY Sur lus 0 863,000 0 0.0% 863,000 0 0.0%
Total Revenues 1,933,000 2,796,000 1,092,408 39.1% 2,816,000 20,000 0.7%
Expenditures
Admin/Operating Expenditures 57,000 57,000 6,268 11.0% 57,000 0 0.0%
Project Expenditures 891,000 1,650,000 20,155 1.2% 1,650,00 0 0 0.0%
Reserves. Debt Service, and Other Obligations 985,000 1,089,000 0 0.0% 1,089,000 0 0.0%
Total Expenditures 1,933,000 2,796,000 26,423 0.9% 2,796,000 0 0.0%
Excess of Revenues Over/ Under Ex enditures 0 0 1,065,985 20,000 20,000
CONCLUSION
All General Fund, Enterprise, Internal Service, and Special Revenue Funds budgets are projected
to be at or below their current FY 2024 amended budgets as of year-end with revenues projected
to be equivalent to or in excess of expenditures, except for specific General Fund departments,
the Sewer Operations and Convention Center Enterprise Funds, the Risk Management Internal
Service Fund, and the Resort Tax Special Revenue Fund budget, as detailed in the analysis
above.
The assumptions in the first quarter projections will continue to be proactively monitored between
now and the development of the second quarter projections, as well as during the FY 2025 budget
development process that just recently commenced.
ATH/JDG/TOS/RA
Letter to Commission - Fiscal Year 2024 First Quarter Analysis
Page 15 of 15
EXHIBIT A
GENERAL FUND
1ST QUARTER
FY 20 24 FY 20 24 Preliminary % Actual of Over/(under) %
Over/(Unde r) Adopted Amended Actuals as of Amended Amended Amended Budget Budget 12/31/2023 Budget Budget Budget
REVENUES
Ad Valorem Taxes 246,283,000 246,283,000 18 6,039,598 75.5% 246,283,000 0 0.0%
Ad Valorem Taxes - Pay-As-You-Go Capital 4,43 6,000 4,43 6,000 4,4 36,000 100.0% 4,43 6,000 0 0.0%
Ad Valorem Taxes - Capital Renewal & Replacement 2,170,000 2,170,000 2,170,000 100.0% 2,170,000 0 0.0%
Other Taxes 27,405,000 27,40 5,000 8,413 ,039 30.7% 30,033,000 2,628,000 9.6%
Licenses and Permits 20,971,000 20,971,000 10 ,109,081 48.2% 22,240,000 1,269,000 6.1%
Intergovernmental 14 ,227,000 14 ,227,000 3,065,56 6 21.5% 14 ,090,000 (137,000) -1.0%
Charges for Services 16 ,892,000 16 ,892,000 5,4 77 ,511 32.4% 16 ,593,000 (299,000) -1.8%
Fines and Forfeitures 1,5 11,000 1,5 11,000 476,679 31.5% 1,778,000 267,000 17.7%
Interest 6,222,000 6,222,000 4,231,746 68.0% 7,56 6,000 1,344 ,000 21.6%
Rents and Leases 7,596,000 7,596,000 1,636,58 8 1.0% 7,682,000 86,000 1.1%
Mscellaneous 14 ,780,000 14 ,780,000 5,34 8,859 36.2% 18 ,237,000 3,4 57,000 23.4 %
Other-Resort Tax Contribution 46,10 7,000 46,10 7,000 11,526,750 25.0% 46,107,000 0 0.0%
Other-Non-Operating Revenues 14 ,53 3,000 14 ,53 3,000 3,4 97,750 24.1% 14 ,533,000 0 0.0%
Fund Balance/Retained Eamin s/PY Sur lus 4,199,000 16 ,6 18 ,000 0 0.0% 16,618,000 0 0.0%
TOTAL REVENUES 427,648 ,000 440 ,06 7,000 246,429,165 66.0% 448 ,36 6,00 0 8,29 9,000 1.9%
EXPENDITURES
Mayor & Commission 2,879,000 2,8 79,000 662,800 23.0% 2,878,000 (1,000) 0.0%
City Attorney 6,955,000 7,620.000 1,438,934 18 .9% 7,398,000 (222,000) -2.9%
City Clerk 2,422,000 2,529,000 43 4,056 17 .2 % 2,399,000 (130,000) -5.1%
City Manager 4,4 11,000 4,50 5,000 886,17 1 19.7% 4,36 5,000 (140,000) -3.1%
Finance 10 ,604,000 11,984 ,000 2,255,361 18.8% 11,950,000 (34,000) -0.3%
Human Resources/Labor Relations 3,265,000 3,360,000 690,431 20.5% 3,304,000 (56,000) -1.7%
Mar k eting an d Com m unications 3,17 9,000 3,205,000 663,054 20.7% 3,190,000 (15,000) -0.5%
Office of Management and Budget 1,747,000 1,77 6,000 354 ,736 20.0% 1,668,000 (108,000) -6.1%
Procurement 3,200,000 3,266,000 665,456 20.4 % 3,198,000 (68,000) -2.1%
Code Compliance 7,360,000 7,392,000 1,53 8,77 1 20.8% 7,173,000 (219,000) -3.0%
Economic Development 2,352,000 2,54 8,000 305,236 12.0% 2,45 5,000 (93,000) -3.6%
Housing & Community Services 4,794,000 5,4 12,0 00 853,132 15.8% 5,388,000 (24,000) -0.4%
Planning 5,754 ,000 6,238,000 1,190,209 19.1% 6,088,000 (150,000) -2.4%
Tourism and Culture 3,800,000 3,800,000 1,146,760 30.2% 3,72 0,000 (80,000) -2.1%
Capital Improvement Projects 6,17 9,000 6,308,000 1,318 ,77 3 20.9% 6,111,000 (197,000) -3.1%
Environment & Sustainability 2,074,000 2,625,000 372,299 14.2% 2,593,000 (32,000) -1.2%
Facilities and Fleet Management 4,042,000 4,225,000 77 8,610 18.4% 4,067,000 (158,000) -3.7%
Parks & Recreation (including Golf courses) 46,699,000 47,359,000 9,134,939 19.3% 46,332,000 (1,027,000) -2.2%
Public Works 16,921,000 17 ,679,000 2,994,756 16.9% 17 ,152,000 (527,000) -3.0%
Fire 115 ,108,000 116 ,46 7,000 27,275,197 23.4 % 116 ,323,000 (144 ,000) -0.1%
Police 14 5,004,000 14 6,814 ,000 35,078,082 23.9% 148,64 5,000 1,831,000 1.2%
Citywide (net of individual items below): 10 ,862,000 14 ,039,000 2,054 ,079 14.6% 13 ,874,000 (165,000) -1.2%
General Fund Reserve 3,12 8,000 3,12 8,000 0 0.0% 3,128,000 0 0.0%
Capital Renewal & Replacement 2,170,000 2,17 0,000 0 0.0% 2,170,000 0 0.0%
hnfo & Comm Technology Fund 300,000 300,000 0 0.0% 300,000 0 0.0%
Capital Reserve Fund 978,000 978,000 0 0.0% 978,000 0 0.0%
Pav-As-You-Go Ca ital Fund 11,14 5,000 11,14 5,000 0 0.0% 11,145,000 0 0.0%
TOTAL EXPENDITURES 427,648,000 440,06 7,000 92,09 1,84 1 20 .9% 43 7,99 2,000 (2,075,00 0) -0.5%
EXCESS OF REVENUES OVER/ UNDER EXPENDITURES 0 0 164,33 7,323 36.1% 10,374,000
EXCESS OF REVENUES OVER/ UNDER EXPENDITURES 10,374,000
Reduction in Contribution from Resort Tax Fund to General Fund (5,333,000)
REMAINING EXCESS OF REVENUES OVER/UNDER EXPENDITURES 6,04 1,000