Resolution 2024-33340 RESOLUTION NO. 2024-33340
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING AND RESTATING
RESOLUTION NO. 2019-30954,WHICH RE-ADOPTED AND AMENDED
THE CITY OF MIAMI BEACH EXISTING FINANCIAL POLICIES SET
FORTH IN RESOLUTION NO. 2006-26341 RELATING TO
STABILIZATION FUNDS; FUND BALANCE; CONTINGENCY
PLANNING AND CASH RESERVES; USE OF NON-RECURRING
REVENUES; CAPITAL ASSET ACQUISITION, MAINTENANCE,
REPLACEMENT AND RETIREMENT; AND GUIDING THE DESIGN OF
PROGRAM AND SERVICES, TO INCORPORATE REVISIONS TO THE
STABILIZATION FUNDS AND FUND BALANCE/CONTINGENCY
PLANNING AND CASH RESERVES POLICY (GENERAL FUND
RESERVE POLICY), AS SET FORTH IN THE ATTACHED EXHIBIT A,
WHICH SHALL REPLACE AND SUPERSEDE THE GENERAL FUND
RESERVE POLICY SET FORTH IN RESOLUTION NO. 2019-30954, TO
REQUIRE A 6/7th SUPERMAJORITY VOTE OF THE CITY COMMISSION
IN ORDER TO APPROPRIATE ANY FUNDS FROM THE GENERAL
FUND RESERVES THAT WOULD REDUCE THE GENERAL FUND
RESERVE BELOW THE 17% EMERGENCY RESERVE OF THE
GENERAL FUND OPERATING BUDGET OF THE ENSUING YEAR.
WHEREAS, on September 11, 2019, the City Commission adopted Resolution No.
2019- 30954, which last amended and formalized the City's financial policies relating to
Stabilization Funds; Fund Balance; Contingency Planning and Cash Reserves; Use of Non-
Recurring Revenues; Capital Asset Acquisition, Maintenance, Replacement and Retirement;
and Guiding the Design of Programs; and
WHEREAS, the Government Finance Officers Association (GFOA) recommends that
governments establish a formal policy on the level of unrestricted fund balance that should be
maintained in the General Fund for Generally Accepted Accounting Principles (GAAP) and
budgetary purposes; and
WHEREAS, the GFOA recommends that the adequacy of unrestricted fund balance in
the General Fund should take into account each government's own unique circumstances; for
example, governments that may be vulnerable to natural disasters, more dependent on a volatile
revenue source, or potentially subject to cuts in state aid and/or federal grants, may need to
maintain a higher level in the unrestricted fund balance; and
WHEREAS,the GFOA recommends, at a minimum, that general purpose governments,
regardless of size, maintain an unrestricted budgetary fund balance in their general fund of no
less than 2 months of the general fund budget; and
WHEREAS,in light of the City's-vulnerability to storm events and dependence on volatile
Resort Tax revenues, the City Commission, in Resolution No. 2019-30954, increased the
required reserve for emergencies from 11% to 17%; increased the goal for reserve for
contingencies from 6% to 8%; and effectively increased the total reserve target from 17% to
25%, or from 2 months to 3 months of the City's General Fund Operating Budget; and
WHEREAS, the City Commission, in Resolution 2019-30664, adopted a Resort Tax
Reserve Policy that, inter alia, required a supermajority vote (5/7th) of the City Commission in
order to expend funds in the Resort Tax Reserve Emergency Fund; and
WHEREAS, the City Commission wishes to further ensure the stability and integrity of
the General Fund Reserve by amending the City of Miami Beach Financial policies relating to
Stabilization Funds; Fund Balance; Contingency Planning and Cash Reserves; Use of Non-
Recurring Revenues; Capital Asset Acquisition, Maintenance, Replacement and Retirement;
and Guiding the Design of Programs, to incorporate revisions to the Stabilization Funds and
Fund Balance/Contingency Planning and Cash Reserves Policy (General Fund Reserve
Policy), as set forth in the attached Exhibit A, to similarly require a 6/7th supermajority vote of
the City Commission in order to expend funds in the General Fund Reserve Emergency Fund.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THECITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission
hereby amend and restate Resolution No. 2019-30954, which re-adopted and amended the
City of Miami Beach existing financial policies set forth in Resolution no. 2006-26341 relating to
stabilization funds;fund balance; contingency planning and cash reserves; use of non-recurring
revenues; capital asset acquisition, maintenance, replacement and retirement; and guiding the
design of program and services, to incorporate revisions to the Stabilization Funds and Fund
Balance/Contingency Planning and Cash Reserves Policy (General Fund Reserve Policy), as
set forth in the attached Exhibit A, which shall replace and supersede the general fund reserve
policy set forth in Resolution No. 2019-30954, to require a 6/7th supermajority vote of the City
Commission in order to appropriate any funds from the general fund reserves that would reduce
the general fund reserve below the 17% emergency reserve of the general fund operating
budget of the ensuing year.
ayor Steven Meiner
NOV 0 5 2024
Rafael E. Granado, City Clerk
(Sponsored by Commissioner Joseph Magazine)
APPROVED AS TO
FORM &LANGUAGE
=� !B '�',,� &FON EXECUTION
' '•.IklCORP��aORATED:
�;.• AttoDate
FRCity rney
•
EXHIBIT A
CITY OF MIAMI BEACH FINANCIAL POLICIES
RELATING TO
STABILIZATION FUNDS; FUND BALANCE; CONTINGENCY PLANNING AND
CASH RESERVES; USE OF NON-RECURRING REVENUES; CAPITAL ASSET
ACQUISITION, MAINTENANCE, REPLACEMENT AND RETIREMENT; AND
• GUIDING THE DESIGN OF PROGRAMS AND SERVICES
Stabilization Funds & Fund Balance/Contingency Planning and Cash Reserves
1. The City of Miami Beach shall maintain the Emergency Reserve at seventeen percent
(17%) of the General Fund Operating Budget of the ensuing year (17% Emergency
Reserve) for use as defined in resolution 98-22661.
la.Any appropriation, or series of related appropriations, of any funds from the general
fund reserves that would reduce the general fund reserve below the 17% emergency
reserve of the general fund operating budget of the ensuing year must be approved by
a 6/7th'supermaiority vote of the City Commission.
2. The City of Miami Beach shall have a goal to also maintain a General Fund Reserve for
Contingencies equal to at least eight(8%)of the General Fund Operating Budget that, in
combination with the 17% Emergency Reserve, represents three (3) months of the
General Fund Operating Budget expenditures.
3. Said reserve shall be increased or decreased annually but shall be maintained at a
minimum of eight percent(8%) of the then existing General Fund Operating Budget.
4. Once the General Fund Reserve for Contingencies goal of eight percent (8%) is initially
achieved, if the amount falls below the eight percent (8%) level, a plan of action will be
required to increase the reserves over three(3)to seven (7)years to at least eight percent
(8%) and a percentage of any additional undesignated fund balance shall be earmarked
toward attainment of the eight percent(8%) level.
5.• The City of Miami Beach shall have a goal to develop and maintain appropriate levels of
• reserves in the Enterprise Funds as in the General Fund.
•
6. The City of Miami Beach shall have a goal of maintaining a reserve of one hundred percent
(100%)of pending claims in the Risk Management Fund and shall strive to fund two-thirds
(2/3) of the estimated value of insurance claims incurred but not reported.
Use of Non-Recurring Revenues
The City of Miami Beach will use one-time, non-recurring revenue for capital expenditures or one
time expenditures and not to subsidize recurring personnel, operations and maintenance cost.
Capital Asset Acquisition. Maintenance. Replacement and Retirement
1,•. The City shall maintain a dedicated portion of operating millage for General Fund
• Capital Renewal and Replacement as defined in Resolution 2005-25832.
2. The City shall have a goal to fund for the following capital needs as a permanent part of
the budget in an amount not less than five percent (5%) of the annual fiscal operating
budget of the General Fund of the City:
• Capital Renewal and Replacement - to ensure adequate funding for the
renewal and replacement of the City's General Fund facilities to extend the
useful life or replace equipment whose useful life has expired.
• Capital Reserve Fund - to help ensure adequate funding related to previously
approved capital projects for expenditures due to bids that are over-budget, change
orders, or other unforeseen items for General Fund projects.
• Pay-As-You-Go Capital Fund - to ensure adequate on-going reinvestment in capital
plant and equipment and avoid deferring capital needs until there is a major bond issue.
The City of Miami Beach Resolution 2018-30429, dated July 25, 2018, established a
dedicated millage commencing in FY 2019 to continue funding General Fund capital
projects while simultaneously allowing for growth over time with property values.
• Capital Investment Upkeep Fund - to help ensure adequate funding for
General Fund non-facility related upkeep.
• Information and Communications Technology Fund - to help ensure adequate
funding for the procurement of new or enhanced information and technology needs of
the City.
3. The City shall strive to achieve as a goal that annual General Fund revenues in excess of
• expenditures shall be transferred to the Capital Reserve Fund.
4, The City shall have a goal to develop and maintain appropriate levels of capital reserves in
the Enterprise Funds as in the General Fund.
Guiding the Desian of Programs and Services
1 ' The City of Miami Beach shall create a strategic plan that identifies multi-year strategic
priorities with corresponding result measures for each priority.
2. Annually, the City of Miami Beach shall use a strategic planning process to develop
initiatives that support the strategic plan priorities.
3. The budget process and format shall be performance-based and focused on Key Intended
-Outcomes and performance measures.
4. Any new initiatives not core.to the City's core mission or Key Intended Outcomes identified
in the strategic plan that is greater than 0.5% of budget for the fund impacted per year, or
cumulatively, shall be first considered as part of the City's annual strategic planning process
to develop initiatives.
•
Resolutions - C7 AN
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: City Attorney Ricardo J. Dopico
DATE: October 30, 2024
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING AND RESTATING RESOLUTION NO. 2019-
30954, WHICH RE-ADOPTED AND AMENDED THE CITY OF MIAMI BEACH
EXISTING FINANCIAL POLICIES SET FORTH IN RESOLUTION NO. 2006-26341
RELATING TO STABILIZATION FUNDS; FUND BALANCE; CONTINGENCY
PLANNING AND CASH RESERVES; USE OF NON-RECURRING REVENUES;
CAPITAL ASSET ACQUISITION, MAINTENANCE, REPLACEMENT AND
RETIREMENT; AND GUIDING THE DESIGN OF PROGRAM AND SERVICES, TO
INCORPORATE REVISIONS TO THE STABILIZATION FUNDS AND FUND
BALANCE/CONTINGENCY PLANNING AND CASH RESERVES POLICY
(GENERAL FUND RESERVE POLICY), AS SET FORTH IN THE ATTACHED
EXHIBIT A, WHICH SHALL REPLACE AND SUPERSEDE THE GENERAL FUND
RESERVE POLICY SET FORTH IN RESOLUTION NO. 2019-30954, TO REQUIRE
A 6/7TH SUPERMAJORITY VOTE OF THE CITY COMMISSION IN ORDER TO
APPROPRIATE ANY FUNDS FROM THE GENERAL FUND RESERVES THAT
WOULD REDUCE THE GENERAL FUND RESERVE BELOW THE 17%
EMERGENCY RESERVE OF THE GENERAL FUND OPERATING BUDGET OF
THE ENSUING YEAR.
RECOMMENDATION
BACKGROUND/HISTORY
ANALYSIS
The attached resolution is presented by the sponsor, Commissioner Joseph Magazine, for the
consideration of thMayor and City Commission.
FISCAL IMPACT STATEMENT
N/A
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
Page 778 of 2497
FINANCIAL INFORMATION
CONCLUSION
Applicable Area
Citywide
Is this a "Residents Right to Know" items Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
No No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
City Attorney
Sponsor(s)
Commissioner Joseph Magazine
Co-sponsor(s)
Condensed Title
Req. 6/7th Supermajority Vote to Appropriate General Fund Emergency Reserve. (Magazine)
CA
•
•
Page 779 of 2497