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LTC 128-2025 Fiscal Year 2025 First Quarter AnalysisMIAMI BEACH OFFICE OF THE CITY MANAGER LTC# LETTER TO COMMISSION TO: FROM: DATE: SUBJECT: Honorable Mayor Steven Meiner and Members of the City Commission Eric Carpenter, City Manager� )7.H,,�;;;;" '1-':;;M;:;;==1-;.�- March 24, 2025 Fiscal Year 2025 First Quarter Analysis The purpose of this Letter to the Commission (L TC) is to provide the Mayor and City Commission with an update on the status of the Fiscal Year (FY) 2025 operating budget as of the first quarter, which ended December 31, 2024, and to provide projections through the end of the current fiscal year ending September 30, 2025. It is important to emphasize that this analysis is a projection based on actual data from the first three (3)months of the fiscal year, as well as any additional data and information that may be available. While these projections are not a definitive representation of trends for the remainder of the current fiscal year, they do provide a glimpse of potential areas of opportunity and/or concern. Assumptions for both revenues and expenditures have been made, which continue to be refined as more data and information becomes available. SUMMARY As of the first quarter of the current fiscal year (FY 2025), revenue and expenditure projections for the General Fund through September 30, 2025 reflect a projected year-end surplus of approximately $1.9 million, while the Resort Tax budget reflects a projected year-end shortfall of approximately $0.5 million. In order to address the year-end shortfall in the Resort Tax budget projected as of the first quarter, the Administration is recommending that the budgeted contribution from the Resort Tax budget to the General Fund of $42.1 million in FY 2025 for tourism-related expenditures that are budgeted in the General Fund be reduced by $0.5 million to $41.6 million for FY 2025, should these projections be realized as of year-end. It is also recommended that the additional combined FY 2025 surplus of approximately $1.3 million from the Miami Beach and Normandy Shores Golf Courses' operations projected as of the first quarter in the General Fund be set aside and transferred to fund a portion of the Miami Beach Golf Course Renovation capital project that currently has an estimated cost totaling $9.2 million, of which $3.3 million is funded. FY 2025 General Fund Resort Tax Projected Surplus/(Shortfall) as of Q1 $1,960,000 ($520,000) Recommended Year-end Adjustments/Set Asides: Reduction in budgeted contribution from Resort Tax Fund to General Fund (520,000) 520,000 for tourism-related expenditures budgeted in the General Fund Set aside Additional Projected FY 2025 Golf Course Surplus (Miami Beach (1,334,000) and Normandy Shores) for Miami Beach Golf Course Renovation Project Remaining Projected Surplus/(Shortfall) as of Q1 $106,000 $- 128-2025