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FY 2025 Budget Retreat PresentationFY 2025 Commission Budget Retreat May 20, 2024 Budget Development Timeline Commencement of Budget Development Process Review Budget Submissions with City Departments and City Manager City Commission establishes Budget Priorities at Budget Workshop Three Finance & Economic Resiliency Committee (FERC) Budget Briefings •June 21st •July 12th •July 19th DECEMBER FEB - APR MAY JUN - JUL Departments Submit their FY 2025 Budget Requests JANUARY Purpos e Kick off the FY 2025 budget development process with the City Commission Cover several budget-related topics and identify areas requiring additional attention Increase the efficiency of the 3 planned Finance & Economic Resiliency Committee (FERC) Budget Briefings in June and July that include the Mayor and City Commission Budget Development Timeline Cont’d Preliminary Taxable Values received from the Property Appraiser Certified Taxable Values received from the Property Appraiser City Commission meets to set Tentative Millage Rates Office of Management & Budget (OMB) finalizes City’s Proposed Budget Two Public Hearings held to Adopt Tentative and Final City Budgets •September 16th •September 25th JUNE 1st JULY 1st JULY 24th AUGUST SEPTEMBER Preliminary General Fund Budget FY 2025 Revenues $431.3 M Expenditures 437.8 M Surplus / (Gap)*($6.5 M) Property Value Increase Necessary to Balance:** 2.7% $2.5 MEstimated 1% Increase in Property Value:** **Based on Certified FY 2024 Values, pending receipt of Preliminary and Certified FY 2025 Values to be provided by Property Appraiser on June 1, 2024, and July 1, 2024, respectively *Preliminary General Fund Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2025 Community Survey Results Community Survey Results Summary 1.Perceptions of the City’s Image and Efforts to Prevent Crime Have Improved Significantly 2.Satisfaction with City Services has Increased Significantly 3.Residents and Business Leaders Feel Much Safer than They Did 2 Years Ago 4.Ratings for Customer Service by City Employees have Increased Significantly 5.Miami Beach is Setting the Standard for the Delivery of Many City Services 6.Top Opportunities for Improvement: Efforts to address homelessness Stormwater management Cleanliness of streets & canals/waterways Street and sidewalk improvements Collective Bargaining Update Bargaining Status and Goals Status: The City is currently bargaining with all 5 collective bargaining units now FOP (Police), IAFF (Fire), CWA, GSAF, and AFSCME We have completed 4 sessions between FOP and IAFF and have upcoming bargaining sessions scheduled Goals: Provide for generous, but sustainable wage increases Incentivize positions and assignments to improve retention and recruitment Manage labor and pension costs for short and long-term sustainability Avoid new and/or increased specialty and incentive pays Reach a fair labor agreement with each Union reflective of items of importance to the City and to that Union Financial Policies Balancing the Operating Budget The City is responsible for maintaining a balanced budget, which is required by Florida Statute 166.241 A budget is balanced when the sum of estimated net revenues and appropriated fund balances is equal to total expenditure appropriations General Fund Reserves Resolution No. 2019-30954 Requirement: 17%, or 2-month, General Fund Emergency Reserve Minimum of 2 months for use in a public emergency only Requires 5/7th vote by City Commission to utilize Target: Additional 8%, or 1-month, General Fund Contingency Reserve Total Reserve Target: 25%, or 3 months of Annual General Fund Budget Current: $106.9 million, or 3 months of FY 2024 General Fund Budget Resort Tax Reserves Resolution No. 2019-30664 Requirement: Minimum 2-month Reserve based on 2% Resort Tax budget Minimum of 2 months for use in a public emergency only Requires 5/7th vote by City Commission to utilize Target: Additional 4-month Reserve based on 2% Resort Tax budgetTotal Reserve Target: 50%, or 6 months of Annual 2% Resort Tax Budget Current: $40.1 million, or 6 months of FY 2024 2% Resort Tax Budget Use of General Fund Year-End SurplusResolution No. 2002-24764 All remaining year-end surplus, after funding reserves, should be transferred to the Capital Reserve Fund Note: This policy has been waived in previous years Use of Non-Recurring (One-Time) Revenues One-time, non-recurring revenues shall be used for capital expenditures or one-time expenditures rather than to subsidize recurring personnel, operations, and maintenance costs Note: This policy has been waived in previous years for specific operations such as Sanitation, Building, and Convention Center, when necessary Goal to fund at least 5% of the annual General Fund operating budget for capital needs Resolution No. 2006-26341 History of Budgeted General Fund Capital Funding for Acquisition, Maintenance, and Replacement FY 2021 Adopted FY 2022 Adopted FY 2023 Adopted FY 2024 Adopted FY 2025 PRELIMINARY General Fund $328,079,000 $354,106,000 $382,618,000 $427,648,000 $437,783,000 5% Goal per Policy 16,404,000 17,706,000 19,131,000 21,383,000 21,890,000 Capital Funding Budgeted: Pay-As-You-Go Capital (PayGo)$252,000 $3,741,000 $3,974,000 $11,145,000 $4,436,000 Capital Renewal and Replacement (CRR) Over $25K 43,000 815,000 1,944,000 2,170,000 2,170,000 Information Technology (IT) Tech 300,000 300,000 300,000 300,000 300,000 CRR Under $25K 341,000 332,000 326,000 1,393,000 1,144,000 Capital Reserve ---978,000 978,000 Total $936,000 $ 5,188,000 $ 6,544,000 $15,986,000 $9,028,000 % of General Fund 0.3%1.5%1.7%3.7%2.1% Additional Funding Needed to Meet 5% Goal $15,468,000 $12,518,000 $12,587,000 $5,397,000 $12,862,000 Dedicated Millage Rates for Capital: Pay-As-You-Go Capital (PayGo)0.0755 mills 0.0755 mills 0.1020 mills 0.1020 mills 0.1020 mills Capital Renewal and Replacement (CRR)0.0235 mills 0.0235 mills 0.0499 mills 0.0499 mills 0.0499 mills Based on Preliminary FY 2025 Budget, additional millage of 0.2958 mills required to reach 5% goal; estimated additional impact of $202 for Average Homesteaded Property Value in the City based on FY 2024 Values Note 1: As a result of COVID-19, reduced amounts transferred to capital funds in FY 2021, as part of the budget balancing plans Note 2: Additional funds have been transferred to Capital Funds at year-end Note 3: Budgeted FY 2024 Pay-As-You-Go Capital included one-time funding to be transferred for Capital Projects approved as part of adopted FY 2024 budget Budgetary Trends What’s a Millage Rate? Rate levied per $1,000 of assessed property value that will be used to identify your tax obligation Example: Home’s Assessed Value = $100,000 Total Adopted FY 2024 Millage Rate = 6.1481 Tax Levy: $100,000/1,000 = $100 $100 x 6.1481 Tax Obligation = $614.81 Overlapping Millage Miami Beach Note: “Other” category comprised of dedicated millage rates for Children’s Trust, South Florida Water Mgmt., Okeechobee Basin, Florida Inland Navigation District (FIND), and Everglades Project The City of Miami Beach portion of the property tax bill has decreased as a percentage of the total bill from 32.9% to 32.5% between FY 2007 and FY 2024 67% of Miami Beach residents’ tax bill goes to other agencies OVERLAPPING TAX MILLAGE FY 2007 Adopted % of FY 2007 Total FY 2024 Adopted Variance from FY 2007 % of FY 2024 Total City of Miami Beach 7.6730 32.9%6.1481 (1.5249)32.5% School Board 8.1050 34.8%6.6990 (1.4060)35.5% Miami-Dade County 6.3860 27.4%5.2907 (1.0953)28.0% Other: Children's Trust 0.4223 1.8%0.5000 0.0777 2.6% Other 0.7355 3.2%0.2589 (0.4766)1.4% Total 23.3218 100.0%18.8967 (4.4251)100.0% 35¢Scho ol Board 33¢City of Miami Beach 28¢Miami- Dade County 4¢Other Combined Millage *Increase in FY 2020 millage attributed to issuance of Tranche 1 (Series 2019) of General Obligation (G.O.) Bonds approved by the voters on November 6, 2018 **Increase in FY 2024 millage attributed to issuance of Tranche 1 (Series 2023A&B) of Arts and Culture (G.O.) Bonds approved by the voters on November 8, 2022 6.2155 6.1655 6.0909 5.8634 5.7942 5.7092 5.7092 5.7224 5.7288 5.7288 5.7288 5.7626 5.8155 5.8155 0.2870 0.2884 0.2568 0.2529 0.2295 0.2031 0.1796 0.1664 0.1600 0.1058 0.0577 0.0596 0.0517 0.1875 0.2650 0.2293 0.1843 0.2422 0.0904 6.5025 6.4539 6.3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 6.0221 6.0515 6.0515 6.0515 6.1481 5.2000 5.4000 5.6000 5.8000 6.0000 6.2000 6.4000 6.6000 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020*FY 2021 FY 2022 FY 2023 FY 2024** Operating Millage Prior G.O. Bonds 2018 G.O. Bond 2022 Arts & Culture G.O. Bond Overall Budget – All Funds $501.9 M $576.4 M $605.0 M $611.0 M $631.4 M $669.3 M $627.1 M $675.9 M $733.1 M $829.1 M $728.5 M $755.4 M $88.3 M $59.8 M $48.7 M $88.4 M $60.2 M $70.4 M $73.7 M $115.7 M $1,230.4 M $1,331.8 M $693.3 M $670.8 M $680.0 M $757.6 M $687.3 M $746.3 M $806.8 M $944.8 M $0.0 K $300.0 M $600.0 M $900.0 M $1,200.0 M $1,500.0 M FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Total Operating Budget *Adopted Capital Budgets for FY 2015 and FY 2016 included funding from multiple bond issuances for Convention Center facility renovation and expansion project Budgeted General Fund Expenditures $2 3 7 . 7 M $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 $3 8 2 . 6 M $4 2 7 . 6 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 $450.0 M 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 FY 2023 FY 2024 General Fund expenditures have experienced a +4.7% average annual growth since FY 2007 compared to a +3.9% average annual change since FY 2007 in the Consumer Price Index (CPI) Public Safety Public Safety as a percentage of the Adopted General Fund budget has increased from: 50% in FY 2007 to 54% in FY 2016 to 61% in FY 2024 Police $75.3 M 32% Fire $43.3 M 18% Other $119.1 M 50% FY 2007 General Fund $237.7 M Police $99.6 M 33% Fire $62.7 M 21% Other $138.0 M 46% FY 2016 General Fund $300.3 M Police $145.0 M 34% Fire $115.1 M 27% Other $167.5 M 39% FY 2024 General Fund $427.6 M Enhanced Public Safety Positions Since FY 2017, the City’s “Enhanced” Full-Time Public Safety position count (Police, Fire, Code, Park Rangers, and Homeless Services) has increased by 132 full-time positions, or 13.3%, compared to the City’s Non-Public Safety Full-Time position count which has decreased by 8 full-time positions, or 0.7%. 1,154 1,160 1,159 1,130 1,088 1,093 1,130 1,146 998 996 998 999 997 1,005 1,090 1,130 2,152 2,156 2,157 2,129 2,085 2,098 2,220 2,276 0 500 1,000 1,500 2,000 2,500 ADOPTED FY 2017 ADOPTED FY 2018 ADOPTED FY 2019 ADOPTED FY 2020 ADOPTED FY 2021 ADOPTED FY 2022 ADOPTED FY 2023 ADOPTED FY 2024 Total Non-Public Safety Positions Total Enhanced Public Safety Positions FY 2024 Budget Overview Overall Combined Budget $829.1M $115.7M Operating Capital Adopted FY 2024 Budget All Funds $944.8 M Operating Budget General Fund $427.6 M 47% Resort Tax $117.8 M 13% Adopted FY 2024 Operating $913.8 M* Less Transfers**= $829.1 M *Excludes $132.1 M for FY 2024 Internal Services Funds since costs are allocated/included within the General Fund, Special Revenue, and Enterprise Fund Dept budgets **Transfers represent interfund transfers that are budgeted between various City funds that are excluded for Government Finance Officer Association (GFOA) presentation purposes, which is $84.7 M for FY 2024 (i.e., Resort Tax Contribution to General Fund, Admin Fees, etc.) Other Funds - $368.4 M (40%) Enterprise Funds City Center RDA (City Portion) Other Special Revenue Funds 2018 G.O. Bond 2022 Arts & Culture G.O. Bond North Beach CRA (City Portion) General Fund Where the Money Comes From…. Where the Money Comes From… Property Taxes $253.2 M 59% Resort Taxes $46.1 M 11% Property and Resort Taxes comprise 70% of Total General Fund Revenues Adopted General Fund Revenues By Category $427.6 M Other Revenues - $128.3 M (30%) Other Taxes Licenses & Permits Charges For Services Miscellaneous Non-Operating Revenues Intergovernmental Rents and Leases Interest Use of Prior Year Surplus Fines and Forfeits General Fund Where the Money Goes…. Where the Money Goes By Department… Police $145.0 M 34% Fire $115.1 M 27% Homeless Services $2.7 M 0% Park Ranger Program $4.8 M 1%Code Compliance $7.4 M 2% FY 2024 General Fund Expenditures By Department $427.6 M Enhanced Public Safety (Police, Fire, Park Rangers, Homeless, and Code Compliance) comprises 64% of Total Budgeted General Fund Expenditures, which exceeds Property Taxes levied for FY 2024 Other - $152.6 M (36%) Parks & Recreation Citywide Accounts Public Works Finance City Attorney CIP Planning City Manager Facilities Management Tourism & Culture Human Resources Procurement Marketing & Communications Mayor & Commission City Clerk Economic Development Environment & Sustainability Housing & Community Services Management & Budget Where the Money Goes By Category… Salaries and Benefits $298.6 M 70% Operating Expenditures $60.8 M 14% Internal Services $52.4 M 12% Debt and Other $15.8 M 4% FY 2024 General Fund Expenditures By Category $427.6 M Public Safety (Police & Fire) makes up 72% of Budgeted Salaries and Benefits Expenditures, Enhanced Public Safety (Police, Fire, Code Compliance, Homeless Services, and Park Rangers) makes up 76% of Budgeted General Fund Expenditures FY 2024 Update as of Q2 FY 2024 Update as of Q2 Projections General Fund Resort Tax Q2 Projected Surplus/(Gap)$14.3 M ($3.0 M) Adjustment in Budgeted Resort Tax Contribution to General Fund (3.0 M)3.0 M Set-aside of Projected Golf Courses Surplus for Miami Beach Golf Course Renovation Project (2.4 M) Transfer of Red-Light Camera Fund Expenditures to General Fund (0.3 M) Remaining Q2 Surplus/(Gap)$8.6 M $- Recommended Use of Projected Q2 Surplus: •Set-aside remaining funds of $8.6 M for General Fund Reserve Requirement •Any excess after fully funding reserve levels and targets for capital needs Preliminary FY 2025 General Fund Budget Miami Beach Overall Property Values 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% 11.2%10.8% -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 FY 2023 FY 2024 New Construction Estimate FY 2019 $186.1 M FY 2020 $302.5 M FY 2021 $1,313.3 M FY 2022 $215.6 M FY 2023 $716.4 M FY 2024 $213.9 M FY 2025 $642.0 M Estimated based on building permit finalized as of 2023 Preliminary General Fund Budget Assumes no change in operating millage rate Includes average 0-3% Merit increase for Non-Police and Fire and 5% Step increase for Police and Fire Assumes 10% increase in City premiums for health and life insurance (Actives and Retirees) Does not include any enhancements or reductions unless approved during FY 2024 Does not include any cost-of-living adjustments and/or changes in pays/benefits that may result from ongoing collective bargaining negotiations Assumptions: Preliminary General Fund Budget FY 2025 Revenues $431.3 M Expenditures 437.8 M Surplus / (Gap)*($6.5 M) Property Value Increase Necessary to Balance:** 2.7% $2.5 MEstimated 1% Increase in Property Value:** **Based on Certified FY 2024 Values, pending receipt of Preliminary and Certified FY 2025 Values to be provided by Property Appraiser on June 1, 2024, and July 1, 2024, respectively *Preliminary General Fund Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2025 Preliminary General Fund Budget $ Variances in Revenues from FY 2024 Adopted to FY 2025 Preliminary $ FY 2024 Adopted:$427,648,000 Increase in General Fund Franchise and Utility Tax revenues from electricity,gas,etc.*3,719,000 Increase in General Fund revenues from Fines and Violations,Rents and Leases,and Interest Income*2,916,000 Increase in Other Miscellaneous General Fund revenues from Intergovernmental Revenues,Charges for Services,etc.*2,463,000 Increase in General Fund Licenses and Permit revenues from Fire,Planning,Public Works,and Finance*1,960,000 Decrease in Contribution from 2%Resort Tax Fund for Tourism-Eligible Expenditures based on Preliminary 2% Resort Tax Projections (Based on January 2024 study $186.5 million in tourism-eligible expenditures in General Fund) (3,264,000) Decrease in Use of Prior Year Fund Balance based on approved one-time expenditures budgeted in FY 2024 (4,199,000) FY 2025 Preliminary:$431,243,000 $ Variance $3,595,000 *Based on prior year trends and current year projections Preliminary General Fund Budget $ Variances in Expenditures from FY 2024 Adopted to FY 2025 Preliminary $ FY 2024 Adopted:$427,648,000 Police/Fire Pension Impact (Gen Fund Portion)5,154,000 5%Step for Police/Fire and 0-3%Merit for Non-Fire/Police 2,821,000 10%Increase in City’s Premium for Health Insurance –Actives and Retirees 2,722,000 General Employee (MBERP)Pension Impact (Gen Fund Portion)2,585,000 Recommended Set-aside of Projected Miami Beach and Normandy Shores Golf Course Surplus for MB Golf Course Project 1,694,000 Additional Public Safety Overtime (incl.applicable Step and Merit increases budgeted in FY 2025)1,591,000 Increases in Other Operating Expenditures based on anticipated departmental needs 893,000 Expenditures Approved/Added by City Commission Mid-Year of FY 2024 (breakdown provided on next slide)511,000 Estimated Internal Services Expenditures Impact (1,127,000) Decrease in Transfer to Pay-As-You-Go Capital (PayGo)based on one-time expenditures budgeted in FY 2024 (6,709,000) FY 2025 Preliminary:$437,783,000 $ Variance $10,135,000 Preliminary General Fund Budget Expenditures Approved During FY 2024 Included in FY 2025 Preliminary $ Additional Support Services for City Commissioners (adopted March 13, 2024 –Reso. 2024-32956) $240,000 Stipends and Allowances for Members of City Commission (adopted March 13,2024 –Reso.2024- 32972)105,000 Full-Time Constituent Services Manager (adopted April 3,2024 –Reso.2024-32997)113,000 Miami Beach Public School Graduations (adopted March 13,2024 –Reso.2024-32943)50,000 Additional Funding for First Generation Scholarships Program (adopted May 15, 2024)3,000 $ Total $511,000 Preliminary FY 2025 Resort Tax Budget Total Resort Tax Collection Trends Source: Monthly Collections Reports Published by the Finance Department $0.0 K $1.0 M $2.0 M $3.0 M $4.0 M $5.0 M $6.0 M $7.0 M $8.0 M $9.0 M $10.0 M $11.0 M $12.0 M $13.0 M $14.0 M $15.0 M Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FY 2019 FY 2022 FY 2023 FY 2024 *FY 2019 (Pre-COVID) monthly collections included for comparison purposes Preliminary 2% Resort Tax Budget FY 2025 Revenues $75.6 M Expenditures 75.6 M Surplus / (Gap)*$- *Preliminary 2% Resort Tax Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2025 Assumes FY 2025 revenues to remain flat over FY 2024 projections, which are based on actual collections reported as of March 2024 and revenues projected through the remainder of FY 2024 at approximately 95% of FY 2023 collections for the same period Preliminary 2% Resort Tax Budget $ Variances in Revenues from FY 2024 Adopted to FY 2025 Preliminary $ FY 2024 Adopted:$80,214,000 Decrease in 2% Resort Tax Collections based on projected FY 2024 2% collections (projected FY 2024 2% collections based on actual collections through March 2024 with revenues projected through September 2024 at approx. 95% of FY 2023 collections) (3,174,000) Decrease in Use of Prior Year Fund Balance based on approved one-time expenditures budgeted in FY 2024 (1,756,000) Increase in Interest Income and Other Miscellaneous 2% Resort Tax revenues (Filing Fees, Registration Fees, etc.) based on prior year trends and current year projections 331,000 FY 2025 Preliminary:$75,615,000 $ Variance ($4,599,000) $ Variances in Expenditures from FY 2024 Adopted to FY 2025 Preliminary $ FY 2024 Adopted:$80,214,000 Decrease in General Fund Contribution from $46.1 million to $42.8 million for Tourism-Eligible Expenditures based on Preliminary 2% Resort Tax Projections (Based on January 2024 study $186.5 million in tourism- eligible expenditures in General Fund) (3,264,000) Decrease in Sanitation Fund Contribution from $3.2 million to $2.1 million for Sanitation Services Provided in Tourism-Areas (Based on January 2024 study $2.1 million in services provided)(1,097,000) Decrease in GMCVB and VCA Contributions based on current agreement and legislated formula (459,000) Increase in American Black Film Festival Sponsorship from $97,000 to $200,000 for FY 2025 and FY 2026 per Commission Resolution No. 2023-32822 adopted/approved during FY 2024 103,000 Increase in Personnel Expenditures based on budgeted increases in personnel costs for FY 2025 (avg. 0- 3% Merit, 10% increase in Health and Life, etc.)85,000 Increase in Other Miscellaneous 2% Resort Tax operating expenditures 33,000 FY 2025 Preliminary:$75,615,000 $ Variance ($4,599,000) Preliminary 2% Resort Tax Budget SPOTLIGHT Preliminary FY 2025 Sanitation Budget Preliminary Sanitation Budget FY 2025 Revenues $23.5 M Expenditures 26.3 M Surplus / (Gap)*($2.8 M) *Preliminary Sanitation Surplus/(Gap) above does not take into account any enhancements and/or reductions/efficiencies to be considered for FY 2025 Over the last several years, the Sanitation Enterprise Fund has had a structural imbalance based on increasing costs and demand for services for which fees are not currently being charged and/or fees have not been adjusted to sufficiently offset the costs for the services being provided FY 2024 Sanitation Fees and Services Sanitation Fees*$ Sanitation Services Provided to Other City Depts.$10.0 million Franchise Fees 5.7 million Sanitation Fees 3.9 million Sanitation Impact Fees 1.8 million Sanitation Roll-Off Fees 1.2 million Contributions for Disposal 0.4 million Sanitation Fines 0.3 million Other/Non-Operating 0.5 million $ Total $23.8 million Sanitation Services*$ Litter Control/Street Sweeping $14.9 million Residential Collection of Solid Waste 2.7 million Cleaning of Surface Lots 1.3 million Street Sweepers 0.8 million Sidewalk Pressure Cleaning 0.7 million Enhanced Services for High Impact Periods 0.6 million Recycling Services 0.5 million Doggie Bags 0.5 million Illegal Dumping/Enforcement 0.3 million Cat Network 0.3 million Other Miscellaneous/Administrative 2.2 million $ Total $24.8 million *Based on Adopted FY 2024 Sanitation Budget Sanitation Fund Balance Trend $7 . 9 M $8 . 5 M $4 . 5 M $3 . 6 M $2 . 8 M $7 . 8 M $8 . 5 M $8 . 0 M $6 . 6 M $3 . 8 M $0.0 K $1.0 M $2.0 M $3.0 M $4.0 M $5.0 M $6.0 M $7.0 M $8.0 M $9.0 M 9/30/2016 9/30/2017*9/30/2018 9/30/2019 9/30/2020 9/30/2021**9/30/2022 9/30/2023 9/30/2024 Projected*** 9/30/2025 Projected*****Use of Sanitation Reserves for Hurricane Irma Expenses **FEMA Reimbursements ***Projected as of Q2 of FY 2024 ****Based on Preliminary Budget as of 05/01/2024 Prior Sanitation Budget Balancing RecommendationsApproved (as part of FY 2020 Budget): Reduction in Litter/Debris Removal Crew - $138K (3 Full-Time Equivalents “FTEs”) Elimination of Sanitation-Funded Full-Time Code Compliance Positions - $113K (2 FTE) Efficiency of Alternate Side Parking (ASP) Pilot Program - $92K (2 FTE) Reduction of Doggie Bag Crew - $43K (1 FTE) Franchise Fee Increase from 18% to 20% - $81K Roll Off Fee Increase - $21K NOT Approved (as part of FY 2020 Budget): Residential Backyard Service - $500K (ESTIMATED) 1-Day/Week Service - $900K Recycling Fee Pass-Thru - $231K (REPLACED w/ Proposed Big Belly Program Reduction) Increase in Residential Service Fees - $300K Sanitation Balancing Strategies Potential Options for Consideration: Immediate/Short-Term: Increase Roll Off Franchise Fees by 2-4% (from 20% to 22-24%) Approximately $28K - $57K per fiscal year Modify Roll Off Franchise Fees Ordinance to include all debris removal options excluding small renovations Pass through recycling fees charged by Miami-Dade County for weekly recycling services provided to single family homes Approximately $0.5 million annually, which is currently absorbed by the Sanitation Fund Longer-Term: Increase the Franchise Fees or City Service Fees in the new commercial/multi family waste agreement Once RFP for single hauler is crafted this component can be addressed Estimate to be determined once definitive Request for Proposal (RFP) model is established for bidding purposes Potential FY 2025 Enhancement sCommission & Committee Priorities Commission/Committee One-Time EnhancementsCommissionItems $ FY 2025 Resolution #/Meeting High Visibility Overtime $2,500,000 Educational Enhancements for Additional Services & Equipment 394,000 Commission Meeting –5/15/2024 Compacted Sand Path East of Dunes Feasibility Study 100,000 Commission Meeting –4/3/2024 Economic & Capacity Analysis for Marinas TBD Commission Meeting –3/13/2024 $ Total $2,994,000 Committee Items $ FY 2025 Meeting Intensity & Density Capacity Analysis for Zoning Districts $75,000 LUSC –3/19/2024 Clean Miami Beach Grant Award 45,000 FERC –4/19/2024 Beach Access Mats to Create Accessible Paths for Special Events 33,000 FERC –4/19/2024 $ Total $153,000The comprehensive list of all enhancement requests to be considered in the FY 2025 budget will be presented at the upcoming Finance & Economic Resiliency Committee Budget Briefings in June and July 2024. Commission Recurring Enhancements Commission Items $ FY 2025 $ FY 2026 Resolution #/Meeting Commission Committee Duties Under the City Clerk’s Office (4 Positions)$533,000 $565,000 Committee of the Whole –9/13/2023 Additional Positions (4) for Real Time Intelligence Center 325,000 382,000 Commission Meeting –1/31/2024 Educational Initiatives Enhancements 224,000 235,000 Commission Meeting –5/15/2024 Miami-Dade County Crime Lab Staffing 200,000 210,000 Commission Meeting –1/31/2024 Full-Time Bicycle & Pedestrian Coordinator Position 121,000 147,000 Commission Meeting –5/15/2024 Additional Funding –Rock Ensemble 75,000 75,000 Commission Meeting –5/15/2024 Additional Funding –PreK Scholarships Lottery Program 57,000 57,000 Commission Meeting –12/13/2023 Additional Funding –State Lobbyist Services 54,000 54,000 Commission Meeting –5/15/2024 Sister Cities –Additional Funding 15,000 15,000 Commission Meeting –3/13/2024 $ Total $1,604,000 $1,740,000 The comprehensive list of all enhancement requests to be considered in the FY 2025 budget will be presented at the upcoming Finance & Economic Resiliency Committee Budget Briefings in June and July 2024. Committee Recurring Enhancements Committee Items $ FY 2025 $ FY 2026 Meeting Code Compliance Officers (3) for Business Tax Receipt (BTR) Investigations Unit $355,000 $259,000 PSNQLC –9/21/2022 Residential Parking Decal Program Implementation (Mandatory Option –3 Positions)306,000 352,000 FERC –2/23/2024 Full-Time Condominium Ombudsman Position 170,000 177,000 FERC –3/22/2024 $ Total $831,000 $788,000 The comprehensive list of all enhancement requests to be considered in the FY 2025 budget will be presented at the upcoming Finance & Economic Resiliency Committee Budget Briefings in June and July 2024. Preliminary FY 2025 Capital Budget FY 2025-2029 Capital Improvement Plan FUND TYPE FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 TOTAL (in millions) General Obligation (GO) Bonds*$0.2 $263.0 $78.0 $-$-$341.2 Water & Sewer 3.1 149.2 97.9 17.0 31.2 298.4 Stormwater 10.2 84.1 80.2 20.0 17.9 212.4 Pay As You Go (PAYGO)34.4 43.9 18.9 17.3 8.3 122.8 Other Capital (incl. RDA Funds & Capital Reserves)31.2 11.1 7.6 10.4 6.3 66.6 Parking/Garages 10.5 28.8 11.2 -0.3 50.8 Convention Center 2.1 16.6 11.8 3.8 3.1 37.4 Transportation 8.1 10.9 12.7 2.4 -34.1 Resort Tax Quality of Life (1%)8.9 9.9 1.8 1.1 0.4 22.1 Capital Renewal & Replacement (CRR)8.1 2.6 1.4 2.5 2.3 16.9 TOTAL $116.8 $620.1 $321.5 $74.5 $69.8 $1,202.7 *FY 2025 G.O. Bond Projects reflect funding swaps to expend old G.O. Bond funds Budget Gap Summary (General Fund & Resort Tax) Fund Total Request ($M) Available Funding ($M) Difference ($M) Est. Millage Impact Est. Millage Impact ($) PAYGO $34.4 $14.0 ($20.4)0.4691 $321 CRR 8.1 2.4 (5.7)0.1311 90 Resort Tax Quality of Life (1%)8.9 8.7 (0.2)0.0046 3 Total $51.4 $25.1 ($26.3)0.6048 $414 FY 2025 Requests Average value of Homesteaded Property - $684,493 Source: Miami-Dade County Property Appraiser's 2023-average-median-homestead-residential-values file Commission/Committee Capital Project RequestsCommission Items $Resolution #/Meeting Pedestrian-Only Sand Path (East of Dunes)$3,677,634 Commission Meeting -4/3/2024 Parkview Island Water Quality Improvements 2,000,000 Resolution #2024-32954 Belle Isle Dog Parks Artificial Turf 278,850 Commission Meeting -5/15/2024 Lincoln Road Street End Railings at 10th and 14th 150,000 Resolution #2024-32993 TOTAL $6,106,484 Committee Items $Meeting Solar Energy Installations (Fleet Management Solar Panels)$800,000 PSNQLC -2/14/2024 Lummus Park Splashpad Installation 718,000 PSNQLC -3/20/2024 Miami Beach Drive Improvements 500,000 PSNQLC -2/14/2024 Venetian Causeway Entrance Signs 100,000 FERC -10/16/23 TOTAL $2,118,000 Preliminary FY 2025 Budget Recap Preliminary General Fund Budget FY 2025 Revenues $431.3 M Expenditures 437.8 M Surplus / (Gap)*($6.5 M) Property Value Increase Necessary to Balance:** 2.7% $2.5 MEstimated 1% Increase in Property Value:** **Based on Certified FY 2024 Values, pending receipt of Preliminary and Certified FY 2025 Values to be provided by Property Appraiser on June 1, 2024, and July 1, 2024, respectively *Preliminary General Fund Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2025 Preliminary 2% Resort Tax Budget FY 2025 Revenues $75.6 M Expenditures 75.6 M Surplus / (Gap)*$- *Preliminary 2% Resort Tax Surplus/(Gap) above does not take into account any enhancements to be considered for FY 2025 Assumes FY 2025 revenues remain flat over FY 2024 projections, which are based on actual collections reported as of March 2024 and revenues projected through the remainder of FY 2024 at approximately 95% of FY 2023 collections for the same period Next Steps in FY 2025 Budget Process Next Steps in FY 2025 Budget Process1st FERC Budget Briefing (Capital Budget) 2nd FERC Budget Briefing (Operating Budget) Set Maximum Millage Rates per Truth-In- Millage (TRIM) 3rd FERC Budget Briefing (Finalize Capital & Operating) City Manager & OMB Finalize Proposed Budget First Public Hearing Adopt Tentative Millage Rates & Budgets (Operating & Capital) Second Public Hearing to Adopt Final Millage Rates & Budgets (Operating & Capital) Commencement of Fiscal Year 2025 JUNE 21st JULY 12th JULY 24th JULY 19th AUGUST SEPTEMBER 11th SEPTEMBER 25th OCTOBER 1st Thank you!!!