94-21436 ResoRESOLUTION NO. 94-.21436
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AUTHORIZING THE THIRD AMENDMENT
TO THE FISCAL YEAR 1993/94 BUDGET TO PROVIDE FOR: 1) THE
REALLOCATION OF FUNDING BETWEEN GENERAL FUND DEPARTMENTS
THEREBY INCREASING THE APPROPRIATIONS OF CERTAIN
DEPARTMENTS AND DECREASING THE APPROPRIATIONS. OF OTHER
DEPARTMENTS.
WHEREAS, a review of departmental expenditures and
encumbrances ' indicates savings in some departments and
overexpenditures of appropriations in other departments; and
WHEREAS, Florida Statutes prohibit the overexpenditure of
departmental budgets, therefore, necessitating increased
appropriations to the following General Fund departments:
City Attorney
Police
Fire
$ 45,200;
$307,000;
$ 48,000;and
WHEREAS,,the aforestated increases will be offset by decreases
to the following General Fund departments:
City Clerk
Finance
General Services
Public Works
Beach Patrol
Citywide
$ 70,000;
$ 60,000;
$ 65,000;
$ 35,000;
$ 40,000;
$130,200;and
WHEREAS, these increased appropriations to certain General
Fund departments will be funded by reallocating appropriations from
other departments which have generated savings during the fiscal
year, the net of which results in no overall expenditure increase
within the General Fund; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City
Commission of the City of Miami Beach hereby authorizes the third,
amendment to the FY 1993/94 operating expenditure budget for the
General Fund whose overall appropriation remains constant at
$81,798,899, as summarized herein.
FY 1993194
FY 1993194
Current Budget
Increase/
Amended Budget
As of Sept. 22,1994
(Decrease)
As of Dec. 21,1994
GENERALFUND
OPERATING REVENUES
Ad Valorem Taxes
$36,173,626 ,
$0
$36,173,626
Other Taxes
14,963,731
0
14,963,731
Licenses and Permits
5,614,044
0
5,614,044
Intergovernmental
9,411,120
0
9,411,120
Charges for Service
1,655,000
0
1,655,000
Fines and Forfeits
2,551,654
0.
2,551,654
Interest
775,000
0
775,000
Rents and Leases
1,025,052
0
1,025,052
Miscellaneous
6,330,252
0
6,330,252
Other
3,205,136
0 .
3,205,136
Fund Balance
94,284
0
94,284
Subtotal
$91,798,899
$0
$81,798,899
GENERAL OBLIGATION
DEBT SERVICE
Ad Valorem Taxes
$10,148,977
$0
$10,148,977
Special Assessments
250,000
0
250,000
Subtotal
$10,398,977
0
$10,398,977
Total Revenues
$92,197,876
$0
$92,197,876
EXPENDITURES
Mayor and Commision
$502,967
$0
$502,967
City Manager
1,410,803
0
1,410,803
City Attorney
2,380,150
45,200
2,425,350
Children and Families Affairs
45,000
0
45,000
City Clerk
649,682
(70,000)
579,682
Community Relations/PIO
455,120
0
455,120
Finance
1,378,748
{60,000)
1,318,748
Management and Budget
619,470
0
619,470
Human Resources
1,095,539
0
1,095,539
Building Services
2,758,596
0
2,758,596
Devel,Design & Hist Pres
1,310,166
0
1,310,166
Rec, Culture & Parks
9,174,368
(40,000)
9,134,368
General Services
1,961,811
(65,000)
1,896,811
Public Works
1,921,894
(35,000)
1,886,894
Fire
15,687,251
48,000
15,735,251
Police
30,230,923
307,000
30,537,923
Citywide
10,216,411
(130,200)
10,086,211
Subtotal
$81,798,899
0
$81,798,899
GENERAL OBLIGATION
DEBT SERVICE
Debt Service
$10,398,977
$0
$10,398,977
Subtotal
$10,398,977
0
$10,398,977
Total Expenditures
$92,197,876
$0
$92,197,876
PASSED and ADOPTED this 21st day of Decembei
Attest by:
ITY CLERK (�
Funding Approved
MANAGE�T AND BUDGET
FORM
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO.
TO: Mayor Seymour Gelber and DATE: December 21, 1994
Members of the City Commission
FROM: Roger M. Carlto
City Manager
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING THE FISCAL YEAR 1993/94
BUDGET FOR THE GENERAL FUND.
RECOMMENDATION•
The Administration recommends that the City Commission approve the
third amendment to the Fiscal Year (FY) FY 1993/94 budget for the
General Fund to provide reallocation of appropriations by adopting
the attached Resolution.
BACKGROUND:
On September 8, 1994, the Administration presented the second
amendment to FY 1993/94 budgets for General, Enterprise, and
Internal=_�ervice Funds which was subsequently adopted by the
Commission. on September 22, 1994. At that time, the City
Commission was apprised that another amendment may be necessary to
provide for either unanticipated expenditures or transactions which
occurred as part of the fiscal year end closing process. At this
writing, our review of the City's general ledger indicates that
there are three departments which have exceeded their annual
expenditure appropriations. As Florida Statutes prohibit the
overexpenditure of departmental budgets, it is necessary for a
budget amendment to the General Fund for FY 1993/94 to be reviewed
and approved by the City Commission. The increased allocations
will be offset by savings in other areas. Members of the Budget
Advisory -Committee (BAC) were advised of this proposed amendment
during their meeting of December 13, 1994, by way of a brief oral
update.
I. GENERAL FUND DEPARTMENT APPROPRIATION REALLOCATIONS
A. City Attorney - $45,200
This amendment provides an additional $45,200 to cover
AGENDA ITEM R-1-b
DATE I ") _� 1-9 V
Amending FY 1993/94 General Fund Budget
Page 2
December 21, 1994
payment of fees incurred when outside counsel is engaged
to represent the City of Miami Beach in suits which
require expertise'in the area of labor relations. The
$45,200 represents a two percent (20) overexpenditure for
the existing $2,380,150 overall budget of the City
Attorney's Office.
This overexpenditure will be funded through reallocated
departmental savings identified elsewhere within the
General Fund.
B. Police - $307,000
This. amendment provides an additional $307,000 to fund
the City's share of pension contributions due to the
Supplemental Police/Fire Pension Plan as established in
the final actuarial valuation prepared as of October 1,
1993, for the period October 1, 1993 through September
30, 1994, issued by memorandum dated April 26, 1994,
prepared by the Pension Plan Administrator. Since the
adopted budget was predicated on an annual estimated
—contribution for both the Base and Supplemental Plans
totaling $4,907,728, while the final valuation for both
the Base and Supplemental Plans totaled $5,287,451, a
gap of $379,723 resulted. Since the contributions for
the Base Plan are "fixed" one year in advance, no change
resulted. However, the Supplemental Plan is not fixed at
the time of annual budget adoption, hence an estimate is
used for budgetary purposes. As noted previously,
"final" valuations were not issued until April 26, 1994.
Since State Statute prohibits deferral of current year
contributions for the Supplemental Plan to future years,
this gap had to be paid concurrent with Fiscal Year
1993/94. The gap between the estimate and the final
valuation caused the department's overall expenditure
budget to be exceeded by $307,000. The department was
able to absorb only a portion of this increase.
Therefore, an amendment is now requested. The $307,000
represents a one percent (lo) overexpenditure for the
existing $30,230,923 overall budget of the Police
Department.
Amending FY 1993/94 General Fund Budget
Page 3
December 21, 1994
This overexpenditure will be funded through reallocated
departmental savings identified elsewhere within the
General Fund.
C. Fire - $48,000
This amendment provides an additional $48,000 to fund the
City's share of pension contributions due to the
Supplemental Police/Fire Pension Plan as established in
the final actuarial valuation prepared as of October 1,
1993, for the period October 1, 1993 through September
30, 1994, issued by memorandum dated April 26, 1994,
prepared by the Pension Plan Administrator. Since the
adopted budget was predicated on an annual estimated
contribution for both the Base and Supplemental Plans
totaling $3,486,989, while the final valuation for both
the Base and Supplemental Plans totaled $3,756,786, a
gap of $269,797 resulted. Since the contributions for
the Base Plan are "fixed" one year in advance, no change
resulted. However, the Supplemental Plan is not fixed at
the time of annual budget adoption, hence an estimate is
wised for budgetary purposes. As noted previously,
"final" valuations were not issued until April 26, 1994.
Since State Statute prohibits deferral of current
contributions for the Supplemental Plan to future years,
this gap had to be paid concurrent with Fiscal Year
1993/94. The gap between the estimate and the final
valuation caused the department's overall expenditure
budget to be exceeded by $48,000. Due to the fact that
other expenditure line items were underbudget, the
department was able to absorb in large measure the
majority of this increase, with the exception of $48,000.
Therefore, an amendment in a like amount is now
requested. The $48,000 represents less than a one
percent overexpenditure for the existing $15,687,251
overall budget of the Fire Department.
This overexpenditure will be funded through reallocated
departmental savings identified elsewhere within the
General Fund.
Amending FY 1993/94 General Fund Budget
Page 4
December 21, 1994
SUMMARY:,
1. GENERAL FUND APPROPRIATION REALLOCATIONS
A. REALLOCATION OF CURRENT EXPENDITURES
Increased Appropriations
DEPARTMENT AMOUNT
City Attorney 45,200
Police 307,000
Fire 48.000
Total Increase $400,200
Decreased Appropriations
DEPARTMENT
AMOUNT
City Clerk
70,000
Finance
60,000
General Services
65,000
Public Works
35,000
Bea�Patrol
40,000
Citywide
130,200
Total Decrease
($400,200)
NET INCREASE/(DECREASE)
IN EXPENDITURES
-0-
CONCLUSION•
The attached Resolution will enact the third amendment to
departmental appropriations within the General Fund for FY 1993/94.
This action is necessary to comply with Florida Statutes which
stipulate that we may not expend more than appropriations provide.
Reallocation of departmental savings will provide the source for
this third budget amendment. Comparing actual revenues and
expenditures to adopted revenues and expenditures for the General
Fund indicates that a balanced budget was maintained for the year.
At this writing, actual operating revenues received by the General
Fund from all sources total $81,633,514, which is close to adopted
revenues from all sources totaling $81,798,899. Actual operating
expenditures incurred by all departments within the General Fund
total $79,382,838, which compares favorably to adopted operating
Amending FY 1993/94 General Fund Budget
Page 5
December 21, 1994
expenditures totaling $81,798,899. This activity resulted in an
excess of actual operating revenues over actual operating
expenditures totaling $2,250,676. As set forth in the Five -Year
Financial and Strategic Operating Plan, we anticipate that a
$1,038,599 contribution to fund balance will still be achieved
after reserving $1,212,077 for Prior Year Encumbrances.
This will bring the total Fund Balance at September 30, 1994, to
$6,774,727, of which $1,212,077 is reserved for Prior Year
Encumbrances. At September 30, 1994, fund balance would then
represent 8.3 0 of budget. Turning to Fiscal Year 1994/95, a
$430,000 contribution to fund balance is budgeted. The goal of the
Five -Year Financial and Strategic Operating Plan is to achieve a
general fund balance which represents ten percent (10%) of budget
at September 30, 1997, thus bringing reserves to prudent levels.
The prudent fiscal practices of the City of Miami Beach have
resulted in this financial performance.
It is important to note that these numbers are preliminary in
nature due to the fact that the City's financial records are not
yet clos until after the external auditors complete their review.
Historically, this occurs in- mid January, with the City's
Comprehensive Annual Financial Report (CAFR) for the Year Ended
September 30, 1994, available in early March, which will be
presented to the Audit, Capital Improvements, and Finance
Committees, and the City Commission for review.
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