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FY 2010-11 City Manager's Budget Message City Commission Meeting SUPPLEMENTAL MATERIAL City Hall, Commission Chambers, 3rd Floor, 1700 Convention Center Drive September 15, 2010 Mayor Matti Herrera Bower Vice-Mayor Jorge Exposito Commissioner Michael Góngora Commissioner Jerry Libbin Commissioner Edward L. Tobin Commissioner Deede Weithorn Commissioner Jonah Wolfson City Manager Jorge M. Gonzalez City Attorney Jose Smith City Clerk Robert E. Parcher Visit us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings. SUPPLEMENTAL AGENDA C7 - Resolutions R7G2 A Resolution Adopting Tentative Budgets For The General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, And Internal Service Funds For Fiscal Year 2010/11 Subject To A Second Public Hearing Scheduled On Monday, September 20, 2010 At 5:01 p.m. (Office of Budget & Performance Improvement) (City Manager’s Budget Message) ATTENTION ALL LOBBYISTS Chapter 2, Article VII, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City Commission, any City Board or Committee, or any personnel as defined in the subject Code sections. Copies of the City Code sections on lobbyists laws are available in the City Clerk's office. Questions regarding the provisions of the Ordinance should be directed to the Office of the City Attorney. AGENDA ITEM R7G2 ATTACHMENT City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov Jorge M. Gonzalez, City Manager Tel: 305-673-7010, Fax: 305-673-7782 September 10, 2010 Honorable Mayor Matti Herrera Bower and Members of the City Commission: I am pleased to transmit the Proposed Work Plan and Operating Budget for Fiscal Year (FY) 2010/11, commencing on October 1, 2010 and ending on September 30, 2011 (Proposed Work Plan and Budget), including the Proposed Work Plan, the Proposed Operating Budget, the Proposed Capital Budget, and the associated Capital Improvement Program for FY 2010/11 through FY 2014/15. The total Proposed General Fund Operating Budget is $237,518,114, which is $11.2 million or 5 percent more than the FY 2009/10 adopted budget of $226,336,026. Further, the City’s 11% reserve is projected to be fully funded in FY 2010/11 from reserve levels as of September 30, 2009 at $26.1 million, in addition to funding $13.6 million or 5.7 percent towards the additional 6% contingency goal for a total fund balance reserve of almost $40 million. In summary, the Proposed Work Plan and Budget maintains current service priorities for the community, despite property tax rates set at 1.2 mills (16 percent) lower than FY 2006/07 when property values were similar to the 2010 certified values. Further, I am also recommending keeping water, sewer, and stormwater rates flat and reducing household sanitation fees, resulting in a combined reduction of almost $140 per household per year from our expected rates just one year ago. It is important to note that this is the first time we have recommended a modest increase to the millage since property values began an unprecedented and steep decline over the last several years. Since their peak in FY 2007/08, property values have declined more than $4.7 billion, approximately 18 percent, despite almost $3 billion in new construction added to the roll. Without the new construction, the decline in values would be even greater, at 28 percent. Outside the City Center RDA, which impacts General Fund Property Tax revenues, the decline in values is even more significant at 20 percent, even after new construction. As a result, property tax revenues to the General Fund would be $28 million (20 percent) below FY 2006/07 peak levels. Even with the Maintains current service priorities for the community, despite property tax rates sixteen percent less than FY 2006/07 when property values were similar to the 2010 certified values AND with reductions in household water, sewer, and stormwater rates from our expected rates just one year ago. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 2 modest proposed increase in millage, total property tax revenues will still be approximately $18 million below FY 2006/07 levels. The General Fund has absorbed almost $43 million in recurring reductions and almost 20 percent of the FY 2009/10 Adopted General Fund budget that is $226 million (and almost $50 million and 245 positions across all funds. Despite this significant reduction, the City of Miami Beach has essentially kept services and enhancements that were added through FY 2006/07 to address needs and priorities identified by the community, despite increases in costs such as pension, living wage impacts, fuel, and other operating expenses. We have continued to focus on priorities: public safety, cleanliness, landscaping and beautification, recreation and cultural arts programming, renewal and replacement funding for our facilities, building/development functions, and structural changes that enhanced capital funding and reserves, while bringing on line several capital projects with expanded operations and maintenance and resulting increases in operating costs such as: North Shore Park and Youth Center, South Pointe Park, Normandy Shores Golf Course, Normandy Isle Park and Pool, Beachfront Bathrooms, Colony and Byron Carlyle Theatres, Beachwalk and Baywalk, multiple streetscapes, to name just a few. Further, while a significant portion of property taxes in our City are collected from hotels, restaurants and other businesses; a significant source of revenue to the General Fund is from non- property tax tourism and business-related sources which have increased steadily over the years. The Proposed Work Plan and Budget includes resort taxes and a transfer of Parking Operations Fund year-end surplus as well as Parking Operations Fund reimbursements and right-of-way fees paid to the General Fund that total almost $32 million; approximately 13 percent of the Proposed General Fund FY 2010/11 Budget. This is an increase of 22 percent from just the year before. But for these additional non ad valorem revenues, the millage rate would need to be set at a rate that is 1.7 mills than what is proposed. OVERVIEW The Proposed Work Plan and Budget was developed through an intensive review process with our City Commission. Commission Retreats were held on January 22 and 23 and again on April 30 and May 1 of this year. Preliminary budget information was provided to the Commission and budget strategies and priorities were established. Between June 3 and August 25, a series of 5 budget briefings were held with the Finance and Citywide Projects Committee, including a discussion of capital project priorities, Current Service Level expenditures, potential efficiencies, impacts of service level alternatives, revenue enhancements, potential service enhancements and the City’s Budget Advisory Committee also provided additional input. Early in the development of the City’s budget for FY 2010/11, I communicated that we were anticipating that the City’s General Fund would be facing its most difficult budget year in many years. Our preliminary estimates early in the calendar year estimated a budget gap that ranged from approximately $26 to $40 million, as discussed in our Commission retreats in January and May of this year. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 3 We continued to refine our estimates as more information became available, the most significant of which were the City’s annual required contributions to the Fire and Police and General Employees pension plans and the certification of property values in the City from the County property appraiser. At the time of adoption of the proposed millage in July, it was estimated that the City had a $32 million gap to address due to the following: • Increases in the General Fund portion of the City’s annual required contributions to the Fire and Police and General Employees pension plans, primarily due to the downturn in the market and updated assumptions in the Fire and Police Pension Plan • Increases in health insurance costs • Increase in Internal Service Fund charge-backs to Department primarily due to increases in the Risk Management Fund for claims incurred but not reported, as well as increased costs of legal services • The impact from those bargaining units that had not yet reached agreement with the City as of May, 2010 (American Federation of State, County and Municipal Employees – AFSCME, Communications Workers Union - CWA, Fraternal Order of Police - FOP, and International Association of Fire Fighters – IAFF), due to salary increases from merits and steps received in the current Fiscal Year that had not been budgeted and further increases for FY 2010/11, as well as increased pension costs to reflect the fact that the budgeted 2 percent employee give-back to pension had not yet been achieved • The impact of the decline in property values throughout the City, resulting in a loss of $13.7 million in property values outside the City Center Redevelopment Area (RDA), a loss of 11.8 percent and almost half of the projected budget gap. Together, salaries and fringes represent approximately 73 percent of the total current service level (CSL) General Fund budget of $246 million, (including the impacts of merit/steps increases, pension contributions, etc.). It is important to note, that approximately $28 million in other operating costs (12 percent of CSL budget) reflected a decrease of almost $500,000 despite absorbing approximately $270,000 of the first year impacts of the new living wage requirements. This reflects the results of various cost savings initiatives by the City such as re-bidding contracts, careful review of department line item expenditures, other efficiencies, etc. Since July, as we committed to do, we continued to refine our projections further. Our revenues, in particular, tend to have greater fluctuations than expenditures, and, as a result, we are usually conservative early in the process and refine these projections over the summer. Changes since July include increased revenue estimates (primarily franchise and utility taxes, sales taxes, business tax receipts and fire inspection fees, building development process fees, rents and leases, increased reimbursements from capital projects and administrative fees charged to enterprise funds, offset by decreased interest earnings). As a result, the projected gap has been reduced to $29 million. Balancing the budget with such a significant gap has been almost a year-long process. No sooner did we adopt the budget for FY 2009/10 last September, than we began working on approaches to balance the FY 2010/11 budget. Foremost among these was the importance of employee “give- backs”. With the adoption of the FY 2009/10 budget, we had only recently began our FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 4 negotiations on the bargaining unit agreements, four of which were set to expire September 30, 2009, and one of which was due to expire April 30, 2010. In the FY 2009/10 budget, we included a modest “give-back” amount in the General Fund budget of $3.5 million, knowing that negotiations would take time to conclude. For the FY 2010/11 budget, the Commission direction was significantly more aggressive as we were directed to pursue an additional $11 million, for a combined total of $15.3 million across all funds from employee “give-backs”. In addition to employee “give-backs”, we evaluated each department, once again, for efficiencies, and tweaking service levels to achieve recurring reductions with minimal service impacts, as well as evaluating potential new revenue sources. The various approaches used to balance the General Fund budget are shown in the following chart. Exhibits A through F provide a summary of the efficiencies/reorganizations, service reductions, and revenue enhancements to address the $29 million General Fund budget gap, as recommended by the Finance and Citywide Projects Committee. In spite of all the challenges and these proposed reductions, we believe the proposed budget will continue our focus on providing “value of services for tax dollars paid” by continuing to provide services to the community free of charge or at significantly reduced fees, including free arts and movies in the parks, free access to pools and youth centers, reduced fee recreation programming, etc. – the services that our residents and businesses told us yet again this year are important to them during the Community Satisfaction Survey. In summary, I am proposing that the General Fund budget gap be addressed through the following means: • $7.3 million Additional Employee “Give-backs” (almost $9 million in total impact to the General Fund Budget) Millage Recapture Employee “Give-backs” Revenue Enhancements Efficiencies & Reductions Resort Tax Transfers FY 2008/09 Surplus Transfer of Prior Year Surplus from The Parking Fund FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 5 This in addition to $2 million in reductions already included in the General Fund CSL expenditures from employee merit “givebacks” by the Unclassified/”Others” employees and Governmental Supervisors Association (GSA), and from the Year 1 impacts of no cost of living adjustment (COLA) for Police and Fire on the City’s contribution to the Police and Fire pension fund. Further, there are an additional $3 million in “givebacks” in other funds – a total of approximately $12 million in savings in FY 2010/11. To date we have not reached agreement with CWA. • $1.1 million Revenue Enhancements These include increases to Rescue transport fees consistent with rates being proposed by the Miami-Dade County Fire Department; eliminating the non- resident sibling discount in our recreation programs; increasing pool fees for non-residents; increasing the activity fees in our after schools and summer camps to cover the costs of supplies; modest increases to tennis fees; increases in sidewalk café fees; establishing a commercial banner program throughout the city, charging a late fee for special event applications, establishing fees for wedding ceremony permits; and increasing revenues from anticipated corporate sponsorships. Additional details are contained in Exhibit E attached. • $1.5 million Efficiencies and Reductions These include a reduction of approximately $740,000 through recurring efficiencies, $80,000 in savings from extending the current winter schedule for pools from September through May; $46,000 in reduced contributions to multiple non-profit organizations and elimination of the $90,000 reduced contribution to the Police Athletic League; $45,000 from reducing one of two victims advocate positions to part-time; $21,000 in savings by reducing the change-out frequency for our hanging basket program, and approximately $230,000 from reductions in administrative support staff. An additional $260,000 in savings are programmed from the General Fund impact of recurring efficiencies in the Information Technology and Property Management Funds. Additional details are contained in Exhibits A through D attached. These initiatives result in a net reduction of 18 full time positions and 5 part time positions in the General and Internal Service Funds. • $2.0 million Increased transfers from Resort Tax to the General Fund Additional funds are available due to increased resort tax revenues and decreased debt service to cover tourism eligible expenses in the General Fund FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 6 • $3.66 million FY 2008/09 Year-end Surplus This was set aside to address potential shortfalls in FY 2010/11, however, it will require a waiver of City policy as described below. • $3.6 million Transfer of Prior Year Surplus from The Parking Operating Fund There are sufficient funds available for prior year’s revenue in excess of expenditures to provide for this transfer. However, the City must raise Parking fees as described below for these funds to be recurring. • $10.1 million Millage Recapture Operating millage increase of 0.5600 needed to recapture a portion of the $13.7 million revenue loss due to decline in property values outside of the City Center RDA . Further, it is estimated that approximately 40 percent could either have no impact or could actually experience a savings, due to offsetting declines in property values. Further, an additional 50 percent of homeowners are estimated to have their taxes increase less than $300. As a result, approximately 90 percent of homesteaded properties will have less than a $300 per year ($25 per month) impact, Additional Employee “Give-Backs” As noted above, approximately one-quarter of the budget shortfall is anticipated to be addressed through employee “give-backs”. To-date we have ratified and approved agreements with four of our five bargaining units: The American Federation of State, County and Municipal Employees (AFSCME), the Government Supervisors Association (GSA), the Fraternal Order of Police (FOP), and the International Association of Fire Fighters (IAFF). Each of these bargaining units has agreed to significant concessions over the 3 year terms of their agreements. In addition, similar concessions began to be implemented for non-bargaining unit employees as early as October 2009. As a result between FY 2009/10 and FY 2010/11, approximately $13 million in concessions Citywide will be achieved from these groups. Regrettably, in August, after more than a year of negotiations, we declared Impasse with the Communications Worker’s of America bargaining unit (CWA). The employee give-backs in the General Fund budget assume approximately $1.4 million in concessions from CWA to be achieved by the end of the fiscal year, towards a target of $2 million in CWA concessions across all funds. Efficiencies and Reductions In addition to employee “give-backs”, we have identified approximately $1.3 million in recurring efficiencies and reductions in the General Fund while only tweaking service levels in the few areas described above. The impact of additional efficiencies in the Internal Service Funds Departments result in a total savings of $1.5 million in the General Fund. We have also reviewed our FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 7 operations to identify, where possible, privatizing and outsourcing of functions. While our contracts with AFSCME, GSA, FOP and IAFF, preclude this possibility, at least in the short-term, we have identified several potential areas that could result in recurring annual savings of approximately $1 million in the General Fund, and more than $1 million outside the General Fund. (See attached Exhibit D) Several of these initiatives will take significant time and effort time to implement, with some requiring competitive procurement, time to negotiate contracts, and transition periods. For budget purposes, we have assumed full implementation by mid fiscal year, however, it is my intent to move as quickly as possible to maximize the savings. Any savings beyond that budgeted will be used to reduce our use of the FY 2008/09 year-end surplus set-aside as described below. It is important to note, that the initiatives described in Exhibit D are conceptual, and it is my intent to maximize savings from this approach. The proposed budget incorporates the reduction of an additional 54 full-time positions from these initiatives (offset by the addition of 67 part-time positions) in the General and 22 full-time positions in Internal Service Funds (a total of 133 full-time positions offset by the addition of 53 positions Citywide). However, the actual number of positions impacted could differ from those presented above. Use of One-Time Revenues The City’s policy regarding use of one-time revenues states that “The City of Miami Beach will use one time, non-recurring revenue for capital expenditures or one time expenditures and not subsidize recurring personnel, operations, and maintenance cost”. Recognizing early that the FY 2010/11 would be a very challenging budget year, the year-end surplus (revenues in excess of expenditures) from FY 2008/09, in the amount of $3.657 millio, was set aside for possible use in balancing the FY 2010/11 budget, as needed. Given the City’s policy regarding the use of one-time revenues such as the year-end surplus, the City Commission directed staff to identify one-time expenditures in the FY 2010/11 budget that these funds could be used for. However, the nature of expenses in the General Fund operating budget are such that, while the specific line items may be unique to that fiscal year, the level of funding required for that line item is generally a recurring expense (e.g. capital investment upkeep used to maintain our landscaping, uplighting etc., information and communications technology funding, funding for facility renewal and replacement projects, etc.). As a result, it is recommended that the Commission waive this policy for this one-time use of the FY 2008/09 year-end surplus. While this is generally not a recommended financial practice, it is being recommended at this time only because of the unusual extent of the FY 2010/11 projected budget gap. Please note that this recommendation is made cautiously. It is my intention to expend these dollars last during the fiscal year, so that if any savings are achieved throughout the year, the amount of funds needed from this source will be reduced, in which event the funds will be available to be used in subsequent fiscal years. If the use of the FY 2008/09 surplus can be spread over FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 8 several years, while not providing a recurring funding source, it will at least provide a multi-year funding source. CONTINUE TO ADDRESS PRIORITIES IDENTIFIED BY THE COMMUNITY In 2009, the City of Miami Beach conducted its third set of statistically-valid community surveys. The Community Survey was designed to provide resident input on quality of life, city services, and taxes; and to identify key drivers for improvement. Impressively, all 31 of the residential tracking questions from 2007 experienced increases in each of the areas measured by an overall average of approximately 7.0%; and 28 of 32 business tracking questions experienced increases measured by an overall average of approximately 8.8%. It is unusual for an entity to see improvement across such a broad range of areas, and the significant percentage increase in each of these areas is even more unusual. These results indicate a high level of satisfaction with Quality of Life in Miami Beach and the services provided by the City. Detailed survey results are available on the City’s website. However, the following are example of the dramatic results from the survey. QUALITY OF LIFE ¾ Approximately 85% residential respondents reported their overall quality of life within the City of Miami Beach, and Miami Beach as a place to live, as either “excellent” or “good” (84.8%, and 86.6%, respectively). ¾ Slightly more than three-quarters of all residential respondents, 78.3%, reported they either “definitely would” (49.4%) or “probably would” (28.9%) recommend the City of Miami Beach to others as a place to live. This number is consistent with 76.0% recorded previously in 2007. ¾ Residential respondents reported the following as leading changes which would make Miami Beach a better place to live, work, play or visit: “more police” (19.3%), “less traffic congestion” (18.6%), “clean garbage from streets” (16.3%) and “more parking/parking lots” (15.1%). CITY SERVICES ¾ Residential respondents provided the highest positive ratings for: “The appearance of playgrounds” (87.3% in 2009 from 80.0% in 2007), “The appearance and maintenance of the City’s public buildings” (87.2% in 2009 from 81.0% in 2007) and “The maintenance of parks” (85.1% in 2009 from 76.0% in 2007). ¾ While the lowest positive residential ratings were reported for the following three services or programs, each showed improvement from the 2007 survey: “Cleanliness of canals/waterways” (61.2% in 2009 from 54.0% in 2007), “The job the City is doing to FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 9 address homelessness” (43.6% in 2009 from 32.0% in 2007) and “Storm drainage” (43.7% in 2009 from 42.0% in 2007). ¾ Business respondents provided the highest positive ratings for: “The maintenance of parks” (85.4% in 2009 from 75.0% in 2007), “The appearance and maintenance of the City’s public buildings” (85.0% in 2009 from 77.0% in 2007) and “Overall quality of the beaches” (84.9% in 2009 from 77.0% in 2007). ¾ Despite increases in positive business ratings, the lowest positive business ratings were reported by businesses to be the following: “Cleanliness of canals/waterways” (61.4% in 2009 from 51.0% in 2007), “Storm drainage” (45.3% in 2009 from 37.0% in 2007) and “The City’s ability to address homelessness” (31.6% in 2009 from 28.0% in 2007). ECONOMY/TAXES ¾ Just under two-thirds of all residential respondents, 64.9%, and over half of all business respondents, 54.7%, reported the value of City services for the tax dollars paid is either “excellent” or “good”. This number is up significantly from 2007. Importantly, value of City services for the tax dollars paid is significantly higher among the 73.5% of residents who understand that “28% or less” (73.5% excellent/good) of their Property Tax bill goes to fund City Services as compared to those who believe “29% or higher” (68.2% excellent/good) of their Property Tax bill goes to fund City Services. ¾ After being presented with a short list of City services, residential respondents selected “Cleanliness” (64.1%) most frequently as the service which the City should strive not to reduce if reductions become necessary. This was followed by “Code enforcement” (28.7%) and “Arts & Culture” (24.2%). BUSINESS AND CITY GOVERNMENT ¾ More than two-thirds of all business respondents, described the City Government as doing an “excellent” (or “good” job meeting expectations, and responded that they would “definitely” or “probably” recommend the City of Miami Beach to others as a place to run a business.68.4% and 66.8%, respectively. ¾ Half of all business respondents, 51.0% (from 42.0% in 2007), described the City of Miami Beach as “one of the best” (20.5% in 2009 from 17.0% in 2007) or an “above average” (30.5% in 2009 from 25.0% in 2007) place to run a business. ¾ Three-quarters of all business respondents, 74.5%, reported either “better” (25.2% in 2009 from 43.0% in 2007) or “about the same now as it was in the past” (49.3% in 2009 from 39.0% in 2007) when referring to Miami Beach as a place to do business. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 10 ¾ Business respondents identified the following top five responses when asked what they feel are the most important potential challenges which might face their business over the next several years: “high property taxes” (46.9%), “high rent” (29.6%), “high insurance” (18.6%), “restrictive government codes” (18.1%) and “competitive pressure from other businesses” (17.9%). Of these, “high property taxes” and “restrictive government codes” directly relate to City government. ¾ More specifically when asked what the City of Miami Beach can do to ensure their business succeeds: “address parking issues/more parking” (15.2%), “nothing/satisfied with the City” (14.3%) and “help the tourism industry” (12.5%). CITYWIDE WORK PLAN A summary of our Citywide Work Plan is attached (Attachment G) for your review along with the highlights presented below. Cleaner and Safer The resident surveys in 2005, 2007 and 2009 confirmed that safety is one of the top quality of life factors for our residents. In contrast to recent trends, in 2009, the City of Miami Beach experienced a modest increase (1.52%) in total Part I Crimes reported (violent crimes and non-violent crimes combined), when compared to 2008. While non-violent crimes (which include burglary, larceny and auto theft) increased 2.73%, of significance, however, is the 8.94% decline in violent crimes (including an 18% decline in rapes and 17.39% decline in aggravated assaults). This is significantly lower than the nationwide decline of 5.5% in violent crime as reported by the Federal Bureau of Investigation. The Proposed Work Plan and Budget maintains 2 marine officers added in FY 2005/06; the use of motor units to assist the Parking Department with traffic enforcement; the use of Patrol officers for the Neighborhoods contact program initiated in FY 2005/06; and lifeguard coverage for 100% of our publicly accessible beaches. While the Proposed Work Plan and Budget recommends conversion of one of two victims advocate positions to part time, there are no other public safety reductions in service recommended. Cleanliness of our City continues to be a priority for our residents and businesses. We will maintain expanded services that have been implemented in recent years, The City uses a quantitative index to assess the impact of these efforts and results have shown significant overall improvement. Between FY 2005/06 and FY 2008/09, the scores improved by 17 percent overall. None-the-less, our residents continue to view cleanliness as an important service area, and in the 2009 survey, it was cited as the most important service to retain. As a result, no reductions are recommended in sanitation services. Maintains public safety service and continues to focus on cleanliness Citywide FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 11 More Beautiful and Vibrant; Mature and Stable; Unique Historic and Urban Environment Funding for landscaping and beautification continues to be a priority. During FY 2009/10 the City completed the construction of the Mid-Beach Community Garden within Pinetree Park and the dog park at Washington Avenue renovation of fitness facility at Brittany Bay Park. We also have begun construction of Outdoor Fitness Center at 6th Street and Ocean Drive within Lummus Park and have begun design for the construction of the North Beach Dog Park. In addition over 400 trees were planted Citywide bringing the reforestation program total to 4,250 trees installed to date. Further, in addition to on-going re-forestation efforts, the following projects are programmed to be underway in Fiscal Year 2010/11: • Fire Station #3 Landscape Restoration • North Beach Police Sub-Station Landscape Restoration • Fairway Irrigation • NSPYC-Sports Field Restoration • Polo Park-Sports Field Restoration • Restorative Tree Wells on Collins from 64th to 75th. The Proposed Work Plan and Budget provides $200,000 in funding for reforestation, replacement of landscaping, pavers, up-lighting, etc. through the Capital Investment Upkeep Account. In keeping with the ongoing effort to reduce costs where possible without negatively impacting service levels, in FY 2008/09, the City, began re-bidding large full service landscape maintenance contracts within the Parks and Recreation Department and the full service landscape maintenance for the Parking Facilities. The results of these efforts have produced a savings of $517,000 in FY 2009/10 and will result in a savings in FY 2010/11 of $ 1.26 million when compared to budgeted amounts. The combined savings projected over five years are over $6 million. In addition, as one of the City’s recommended cost reduction approaches, the frequency of replacements of hanging baskets on 41 Street and 71 street will be reduced. The availability of quality recreation programs continues to be one of the highest priorities for our community. Eighteen percent of residents responding to the Community Satisfaction Survey identified recreation as a service that the City should strive not to reduce. I am please to present a Proposed Work Plan and Budget that reflects no reductions in our offering of recreation programs. Successful recreation programs for teens and seniors also continue to be a priority, along with weekly classes in visual or performing arts in after school programs and summer camps. Further, efforts are already underway for a “Sleepness Night” event in November 2012, which will be funded from sources other than the General Fund. Continues funding for landscaping, pavers, and up-lighting replacement as well as reforestation FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 12 Ensuring compliance with code regulations was highlighted as a priority, during this fiscal year, especially with regard to littering on the beaches on weekends, spring break, etc. I am proposing adding nine part time code enforcement officers to support these efforts, similar to the level of effort we deployed earlier this year. Homeless outreach and placement services are also maintained to ensure continuing resources to address homelessness. Much has been accomplished in the last several years, with the census count for the number of homeless in the City declining from 314 in November 2000 to 98 in January 2008, and has since increased to 149 in January 2010. Despite the decrease since 2000, homelessness remains a major concern throughout the City. Cultural, Entertainment and Tourism Capital and an International Center for Innovation and Business After lengthy negotiations, in FY 2008/09, the Board of County Commissioners approved Building Better Communities General Obligation Bond funds for a Master Plan Study to be developed by Arquitectonica. The City’s Capital Improvement Plan includes $55 million in funding from County’s General Obligation Bond to expand and enhance the Miami Beach Convention Center, and the Master Plan will allow the City to develop a comprehensive assessment of funding needs related to this project. The Convention Center Master Plan process began this year in partnership with Arquitectonica, and with the benefit of input from a Steering Committee comprised of interested and knowledgeable stakeholders. Preliminary plans have been presented that expand the existing facility footprint to include two new exhibit halls, more than 80,000 square feet of new meeting rooms, a ballroom/multi-purpose space, a new parking garage, and other venue upgrades and amenities designed to make the facility competitive in the long term. The proposed campus expansion plan currently also includes the development of a convention center hotel. Preliminary cost estimates (hard and soft costs) for the current project scope are being reviewed and refined, and phasing plans are being finalized for review. Identification of funding sources is currently underway. In addition, the Resort Tax component of the Proposed Work Plan and Budget maintains $5 million to be transferred to the Greater Miami Convention and Visitors Bureau and $1.6 million to be transferred to the Miami Beach Visitors Convention Authority. In addition, $200,000 is funded to continue a Miami Beach marketing campaign, towards maximizing Miami Beach as a destination brand. Adds part- time staffing for enhanced code enforcement on weekends and during spring break FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 13 Well-Improved Infrastructure Along with, and related to, growth management, traffic flow continues to be one of our community’s major concerns. In FY 2010/11, we will continue to focus enforcement for vehicles blocking traffic lanes and intersections, including the implementation of red-light cameras, which in addition to reducing severe accidents at intersections, we hope will alleviate vehicles blocking traffic at busy intersections. Further, the City has approved a contract with a vendor for a Self- service Bicycle Rental Program which, in addition to supporting environmental sustainability, will also increase multi-modal mobility throughout the City. We adopted the City’s first Bikeways Master Plan in October 2007, and 209 bike racks have been installed to date. An additional 35 bike racks are estimated to be installed by September 30, 2010. In addition, the City continues to coordinate and fund the South Beach Local, the most successful bus circulator in the County. Although ridership has declined from prior years, the average monthly ridership of 135,000 passengers in FY 2008/09 was still significantly greater than the 60,000 in prior years for the Electrowave. The overall decrease in ridership can be attributed to numerous factors including a change in the method for collecting ridership data, changes in the economy, and changes in transit service, as the County experienced a system-wide decrease in transit ridership of approximately 10% when comparing summer 2008 ridership data with summer 2009 data. In spite of the ridership decreases, the South Beach Local is Miami-Dade Transit’s (MDT) most successful operating bus circulator. In addition, we continue to explore the establishment of similar circulators for the mid and north beach areas. Further, the City has worked with Miami-Dade County to implement the Airport Flyer/Route 150 which provides direct bus service to the airport from Miami Beach seven (7) days per week, operating from 6 a.m. to 11 p.m., with service approximately every thirty (30) minutes. The new route uses the regular MDT 40-foot buses with interior space provided for luggage. The buses are branded with a special logo for easy identification and to help promote ridership. The fare is $2.35 each way, which is the fare for all MDT express buses. Since its implementation on December 13, 2009, ridership has increased to an average of approximately 900 passengers per weekday and an average of over 30,000 passengers per month. The Proposed Work Plan and Budget includes capital funding for on-going renovation of several parking lots that are anticipated to provide additional parking spaces when complete. Further, the new City Hall garage and the Alton and 5th facility provide 1,150 additional parking spaces combined, and construction is almost complete on the City garage adjacent to the New World Symphony new performing Arts project that will provide a significant increase to the number of parking garage spaces in the City Center area. Further, in the spring of 2010, the City issued a Request For Letters of Interest for a development of a new parking garage in the North Beach Town Center or surrounding area. The Administration is currently evaluating the responses received, which include mixed use projects with up to 500 public parking spaces. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 14 Implementation of the City’s capital improvement program also continues as a top priority. In addition to the previously mentioned parking garages, in FY 2009/10, the City completed several major projects with a total value of approximately $80 million: • Neighborhood Right of Way Improvements and Underground infrastructure Upgrades o Nautilus (Bid Package 7) o Normandy Isle Normandie Sud (Bid Package 4) o Normandy Shores (Bid Package 3) o Oceanfront (Bid Package 6) - Phase 1a/1b - 40 & 41 St & Collins Ave • Normandy Shores Golf Course Club House • Miami Beach Golf Course Cart Barn • 35th St. Beachfront Restrooms • Multi-Purpose Municipal Parking Facility Offices • Seawall Repairs: Bonita Drive (Normandy Isle Channel) and Sunset Lake Park • Pump Station Landscaping - Pump Station 27 at Collins and 55th Street 17th Street Parking Garage - A/C Unit for Penthouse Office and Elevator Machine Room Door Replacement • Surface lot P 81. (18A) 6400 Collins Avenue adjustment for emergency vehicles The following capital projects are anticipated to begin construction in FY 2010/11. In total, this represents approximately $200 million of projects anticipated to begin construction in for FY 2010/11, generating jobs and stimulating the economy in our region. • Neighborhood/Right-of-Way (ROW) Improvements Bayshore BP 8A - Central ROW Improvements Bayshore BP 8B - Lower North Bay Road - ROW Improvements Bayshore BP 8C - Lake Pancoast ROW Improvements Bayshore BP 8E Sunset Islands 1 & 2 ROW Improvements Star Island BP 13A ROW Improvements Biscayne Point BP 1 ROW Improvements City Center BP 9B ROW Improvements City Center BP 9C ROW Improvements (Lincoln Road) La Gorce BP 5 ROW Improvements North Shore BP 2 ROW Improvements South Pointe Streetscape Phase III, IV, & V BP 12D/E/F ROW Improvements Venetian Islands BP-13C ROW Improvements Flamingo Neighborhood BP-10A ( 7th to 9th St. / Meridian to Wash. Ave.) ROW Improvements on Prairie Ave. Milling & Resurfacing 71st to 81st St. Milling & Resurfacing 69th to 71st St. Milling & Resurfacing 71st to 87th Terr. Collins Canal Enhancement Project FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 15 24" PVC Sanitary Sewer Improvements James Ave between 17 & 19 Sts Belle Isle Outfall Pipes Replacement Drainage Improvements Washington & So. Pointe Drainage Improvements No. Bay Road & 56th St. Drainage Improvements 44th St. & Royal Palm • 17th Street Parking Garage - Elevator Signage Package • 17th Street Parking Garage - Miscellaneous, Waterproofing and Structural Repairs • 17th Street Parking Garage - Rooftop Elevator Enclosures • 42nd Street Parking Garage - Paint & 2008/09 Misc. Repairs • 42nd Street Parking Garage Light Pole Replacement • 42nd Street Parking 2009/10 Garage Maintenance • Sunset Harbor Parking Garage • Surface lot 17X Collins Ave. and 13 Street • Surface lot 4D at 1619 West Avenue • Surface Parking Lot 12X at 900 Washington Ave. • Surface Parking Lot 13X - Washington Ave. & 10th Street • Surface Parking Lot 9E - at 6933 Harding Ave. • Flamingo Park (Tennis Center, Skate Park, Football Field & Track) • Lummus Park - Serpentine Walkway Fleet Management - Plumbing Fixture Replacement • Muss Park Pavilion • Collins Park Playground Feature • 53rd Street Beachfront Restrooms • Botanical Garden Improvements • Fire Station 2 Administration Building • Fleet Management - Roof Replacement • Fleet Management - Sanitary Line Replacement & Waste System Upgrade • Fleet Management – Plumbing Fixture Replacement • Public Works Yard • Miami Beach Golf Course Drainage Remediation • South Pointe Park Remediation • Pump Station Landscaping - Pump Station 22 at Normandy Shores Golf Course – west of Hagan • Pump Station Landscaping - Pump Station 29 at Indian Creek and 63 Street • Seawalls - Normandy Isle Channel (Bordeaux, Trouville, Versailles) • Seawall Rehabilitation - Pine Tree Dr. & 63rd St. • Seawall Restoration - Flamingo Drive FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 16 Further, the City is developing a new Stormwater Management Master Plan that will create a comprehensive model to evaluate the existing system, identify and prioritize areas that are experiencing reduced Levels of Service, and assess long-term solutions. In addition, the Proposed Work Plan and Budget maintains funding of the City’s pavement assessment and repair program, street light maintenance and assessments, broken sidewalk replacement, a regular maintenance program for outfall and catch basin cleaning; assessments of our facilities to identify and plan for these renewal and replacement needs and funding for the capital renewal and replacement program for general fund facilities. Value of Services For Tax Dollars Paid With the planned reductions incorporated in the Proposed Work Plan and Budget our 4 year total of reductions of approximately $50 million. The employee “give-backs” in FY 2010/11 total almost $9 million in total impact to the General Fund Budget, including approximately $2 million from employee merit “givebacks” by the Unclassified/”Others” employees and Governmental Supervisors Association (GSA), and from the Year 1 impacts of no cost of living adjustment (COLA) for Police and Fire on the City’s contribution to the Police and Fire pension fund that were deducted from the projected CSL expenditures early in the process. Further, there are an additional $3 million in “givebacks” in other funds – a total of approximately $12 million in savings in FY 2010/11 and almost $15 million between FY 2009/10 and FY 2010/11. Along with the $47.5 million in savings in the table above, this represents more than $60 million in combined givebacks and reductions over 4 years. However, the employee give-backs in the General Fund budget assume approximately $ Impacts FT PT $ Impacts FT PT Public Safety (7,062,591)$ (67.0) (12.0) (311,792)$ (22.0) 41.0 Operations (4,594,163) (60.5) (10.0) (772,660) (36.0) 22.0 Administrative Support (2,632,653) (31.9) (7.0) (164,856) (2.0) (1.0) Economic & Cultural Development (1,581,951) (16.0) (4.0) (91,047) (7.0) Citywide (1,256,000) - - 85,259 - - Subtotal (17,127,358)$ (175.4) (33.0) (1,255,096)$ (67.0) 62.0 Transfers (22,512,948) - - - - Total* (39,640,306)$ (175.4) (33.0) (1,255,096)$ (67.0) 62.0 Internal Service Funds (2,940,333) (31.10) (5.00) (596,196) (27.0) - Enterprise Funds (2,731,026) (31.50) (5.00) (239,342) (33.0) (10.0) GRAND TOTAL (45,311,665)$ (238.0) (33.0) (2,090,634)$ (127.0) 52.0 Total 3-Year * In FY 2010/11, there are also $259,000 General Fund Reductions due to reductions in Internal Service charges which are additional reductions to the General Fund General Fund (excluding employee give-backs) FY 2010/11 Proposed FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 17 $1.4 million in concessions from CWA that have yet to be achieved and a target of $2 million in CWA concessions across all funds. The significant employee give-backs achieved from four of our five bargaining units to date as well as other non-bargaining unit employees in the City contribute significantly towards our new strategic goal (key intended outcome) to control payroll costs. In combination with the partial millage recapture (the first after three years of declining property values), and despite the dramatic impact of four years of reduction due to property tax reform exacerbated by a dramatic downturn in property values, the Proposed Work Plan and Budget preserves benefits specifically for City of Miami Beach residents, including: • Our free “Culture in the Parks” series; • Access to free cultural arts programs (theater, dance, music and visual arts) for children involved in after school and summer camps; • Scholarship specialty camps in the summer, in addition to children participating in day camps; and programs for traveling athletic leagues. • Free access to City pools on weekends and during non-programmed hours; • Free general admission to our Youth Centers on weekends and during non-programmed hours; • Free Learn-to-Swim programs for 3 to 4 year old residents; • Reduced resident rates for recreation programs • Free “family friendly” Movies in the Park; • Special programming by the Miami City Ballet for the Miami Beach community, including a new contemporary dance series; • Free admission to museums on Miami Beach, including the Bass and Wolfsonian Museums every day and the Jewish Museum on Wednesdays, Fridays and Saturdays; • Free bi-annual Sports Expo for our residents – hosted in fall and spring, residents have an opportunity to register for sports programs offered throughout the year - games and activities (bounce house, climbing wall, music, inflatable slide, etc.) are provided; • Free access to the majority of our senior citizen programs and special populations programs, including several free dances that take place throughout the year; • Free of charge play at the Par 3 golf course for all residents; • Free crime analysis of residents’ homes by our Police Department; and • Free child safety seat checks by our Fire Department. Environmental Sustainability, Communications, Customer Service and Internal Support Functions We have also prioritized Key Intended Outcomes to ensure the long-term sustainability of our City government, including improved communications with our residents, ensuring financial sustainability and ensuring that we have the best possible employees to deliver services to our community. Regarding environmental sustainability, the City established a permanent committee in FY 2007/08 called the Sustainability Committee, with the objective of providing a mechanism to discuss green FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 18 (environmental) issues of concern to the community. To date, the City has implemented the several initiatives recommended by the Committee: • Development of the Sustainability Plan. The Sustainability Plan will assist in the accomplishment of the Key Intended Outcome (KIO) to enhance the environmental sustainability and guide the Sustainability Committee. The Plan provides structure to green initiatives in order to successfully protect the City’s natural resources and enhance the social, economic, and environmental well-being of the community. The Plan focuses on ten (10) specific Program Areas: Green Building & Housing; Solid Waste Management; Water Conservation & Quality; Energy Conservation; Alternative Transportation; Natural Resources & Ecosystem Management; Community Outreach & Civic Participation; Green Procurement; Economic Development & Planning; and Air Quality & Climate Change. The Sustainability Committee and the Neighborhoods and Community Affairs Committee have approved the Plan and it will be referred to the Finance Committee at September’s Commission meeting. • Energy Conservation: The City Commission awarded a $13.7 million energy conservation contract to Ameresco, an Energy Services Company. The contract will implement six (6) Energy Conservation Measures (ECM) that once completed will result in “guaranteed” energy savings of $1.1 million for the initial year, the annual savings are escalated at 3.75% per year. The project payback time of just slightly over thirteen (13) years. These ECM’s include the following projects: • Facility Lighting and Lighting Controls Upgrades city wide • Domestic Water Conservation city wide • HVAC Controls in various city facilities • Geothermal District Cooling plant • Geothermal Cooling Police Station • Power Transformer Replacement All ECMs are scheduled to be completed in the next 24 months. Reducing energy consumption cuts operating costs, increases efficiencies, decreases dependence on natural resources and reduces green house gas emissions. • Solid Waste Management: The City’s Recycling Program has expanded to include recycling in selected public areas, which includes parks, beach entrances, high pedestrian traffic areas, and many City facilities. The Program also now single-stream (co-mingled) recycling for single-family residences through collaboration with Miami-Dade County. A new Citywide recycling ordinance is also under development that will increase the City’s commercial and multi-family recycling rates. In addition, the City has amended it’s Solid Waste Ordinance requiring franchise contractors in the City of Miami Beach to: • Offer recycling for any and all accounts serviced by the contractor (including, without limitation, any and all commercial and residential accounts). • Offer a recycling proposal to every account that to the maximum extent that’s commercially feasible; maximize recycling activity in the City. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 19 • Each recycling proposal shall disclose the anticipated savings offset as a result of the recycling and the consequent reduction of solid waste disposal. • Effective May 1, 2010, all contracts between a franchise waste contractor and the account holder shall be modified to include q provision to offer/ provide recycling. • Alternative Transportation: A contract for the implementation of a self-service bicycle program in the City of Miami Beach as recently been approved by the City Commission. The program is expected to be one of the largest programs operated by a municipality in the U.S. and will significantly increase accessibility to alternative transportation options within the City, decrease traffic by lessening the number of automobiles trips and reduce green house gas production. • Green Building: A voluntary green building ordinance has been adopted that provides incentives to participants who are doing new construction or renovating buildings using the U.S. Green Building Council’s LEED standards in Miami Beach. The green building practices preserve natural resources, reduce green house gas production, and increase indoor air quality and occupant health. • Water Quality/Conservation: As part of the new Stormwater Management Master Plan, the study will consider future climate projections into the planning, engineering design, construction, and operations of the stormwater system. The Proposed Work Plan and Budget continues funding to enhance communications with our residents, enhance the availability of city services and processes that can be accessed and transacted via the internet, and preserve our technology infrastructure. To that end, the Proposed Work Plan and Budget continues to fund the City’s MB Magazine, and MB TV. Although the Proposed Work Plan and Budget reduces 3 positions in the Information Technology Department, it still includes a $0.7 million transfer to the Information and Communications Technology Fund, a reduction of $100,000 from the prior year. Projects to be funded in FY 2010/11 include: • Year 5 of 5 in project financing for the City’s WiFI project • Year 5 of 5 in project financing for the Storage Area Network (SAN) • Year 5 of 10 in project financing for Enterprise Uninterrupted Power Supply (UPS) and Generator • Year 5 of 5 in project financing for Public Safety Voice Over IP (VOIP) • Upgrade to the recreation administration software • GPS Tracking Software for Parking and Code vehicles (the Building component of the project will be funded from the Building Training and Technology Fund) • Upgrades to the City’s records imaging software to address increased storage needs and to the enterprise vault for networking FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 20 To promote transparency of City operations and strengthen internal controls, the City has posted on- line all expenditures and Committee referrals. In FY 2009/10, the City also began posting on-line Internal and Performance Improvement reports. In FY 2005/06, the City established a financial goal of funding at least 5% of the General Fund operating budget as transfers for capital projects and capital projects contingency. The purpose of this goal was multi-faceted: 1. To provide flex in the operating budget that would allow the budget to be reduced without impacting services during difficult economic times; 2. To ensure that the City funded needed upkeep on our General Fund facilities, and right-of- way landscaping, lighting, etc. 3. To provide a mechanism to address additional scope of small new projects prioritized by the community and the Commission instead of having to delay these for a larger General Obligation Bond issue; and 4. To provide contingency funding so that projects where bids were higher than budgeted did not have to be delayed, especially during a heated construction market where delays often lead to further increases in costs. The Proposed Work Plan and Budget incorporates a reduction from the 5% to 1% for capital components, taking advantage of the flexibility during this difficult financial year, and, at the same time, recognizing that the construction industry prices have declined. It is our intent to increase this in the future to 5% in better financial times. GENERAL FUND FINANCIAL SUMMARY The General Fund is the primary source of funding for the majority of City services. Revenues are derived from ad valorem property taxes, franchise and utility taxes, business license and permit fees, revenue sharing from various statewide taxes, user fess for services, fines, rents and concession fees and interest income. Additionally, intergovernmental revenues from Miami-Dade County and Resort Taxes contribute funding for tourist-related activities provided by General Fund departments. PROPOSED TAX RATES The Administration is recommending a total combined millage rate for the City of Miami Beach of 6.5025. The total proposed operating millage is 6.2155 mills, including a general operating millage rate of 6.1072 and a General Fund Capital Renewal and Replacement millage of 0.1083. The proposed voted debt service millage rate is increased from 0.2568 to 0.2870, an increase of 0.0302 mills. Further, the combined millage rate overall remains approximately 2.2 mills lower than it was in FY 1999/00. In addition, the millage rate is almost 1.2 mills lower than it was in FY 2006/07, when property values were similar to the July 1, 2010 certified values. As a result, the proposed property tax levy is lower in FY 2010/11 than it was in FY 2006/07. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 21 Property Values and Ad Valorem Taxes On July 1, 2010, the City received the "2010 Certification of Taxable Value" from the Property Appraiser's Office stating that the taxable value for the City of Miami Beach is $22,104,742,947 including $556,626,578 in new construction. The preliminary 2010 value represents a decrease of $2.59 billion or 10.5 percent less than the 2009's July 1 Certification of Taxable Value of $24.695 billion, and a decline of 12.7 percent, excluding new construction. The comparative assessed values for the Miami Beach Redevelopment Agency City Center redevelopment district decreased from $3,446,724,524, to $3,404,963,718, a decrease of $0.0418, billion or a 1.2 percent decrease in values over 2009 certified values. In addition, assessed values within the geographic area formerly known as the South Pointe redevelopment district decreased from $3,559,454,762, to $3,324,165,654, a decrease of $0.2353 billion, or a 6.6 percent decrease in values over 2009 certified values. As a result, taxable values in the areas outside the City Center RDA/South Pointe area decreased by 13.1 percent, from $17.6887 billion to 15.3756 billion, a decrease of $2.3 billion. 0 50 100 150 200 250 '07'08'09'10'11Combined Tax Levy (Millions)0 10 20 30 Property Values (Billions)Property Values Tax Levy including Debt FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 22 COMPARATIVE ASSESSED VALUES (in billions) Jan. 1 2010 Value (in billions) As of July 1 2009 (For FY 2009/10 Budget) Revised Value (For FY 2009/10 Projection) Change in 2009 Values As of July 1 2010 (For 2010/11 Budget) $ (in billions) % RDA – City Ctr $ 3.4467 $ 3.4461 $ (0.0007) $ 3.4050 $ (0.0418)-1.2% -1.2% South Pointe 3.5595 3.5499 (0.0095) 3.3242 $ (0.2353)-6.6% -6.4% General Fund 17.6887 16.1064 (1.5824) 15.3756 $ (2.3131)-13.1% -4.5% Total Citywide $24.6949 $ 23.1024 $ (1.5925) $ 22.1047 $ (2.5902)-10.5% -4.3% % Change from Final Value Change from 2009 Value (Budget)Jan. 1 2009 Value (in billions) Further, the following table shows that while property values Citywide are similar to FY 2006/07 levels Citywide, they are more than $1 billion lower outside the City Center RDA than in FY 2006/07. It should also be noted that since their peak in FY 2007/08, property values have declined more than $4.7 billion, approximately 18 percent, despite almost $3 billion in new construction added to the roll. Without the new construction, the decline in values would be even greater, at 28 percent. Outside the City Center RDA, which impacts General Fund Property Tax revenues, the decline in values is even more significant at 20 percent, even after new construction. As a result, property tax revenues to the General Fund would be $28 million (20 percent) below FY 2006/07 peak levels. Jan. 1 2006 Value (in billions) Jan. 1 2007 Value (in billions) Jan. 1 2009 Value (in billions) Jan. 1 2010 Value (in billions) As of July 1 2006 (For FY 2006/07 Budget) As of July 1 2007 (For FY 2007/08 Budget) As of July 1 2009 (For FY 2009/10 Budget) As of July 1 2010 (For 2010/11 Budget) $ (in billions) % RDA – City Ctr $ 3.0036 $ 3.5853 $ 3.4467 $ 3.4050 $(0.1803)-5.0% South Pointe 2.9057 3.4232 3.5595 3.3242 (0.0990)-2.9% General Fund 16.8307 19.8416 17.6887 15.3756 (4.4659)-22.5% Total Citywide $ 22.740 $ 26.850 $ 24.6949 $ 22.1047 $(4.7453)-17.7% Citywide Net of City Ctr $ 19.7364 $ 23.2648 $ 21.2482 $ 18.6998 $(4.5650)-19.6% Change from 2007 Value (Budget) FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 23 Value of One Mill The first building block in developing a municipal budget is the establishment of the value of one mill of taxation, wherein the mill is defined as $1.00 of ad valorem tax for each $1,000 of property value. For the City of Miami Beach, this value for each mill is determined by the 2010 Certification of Taxable Value and has been set at $22,104,743. Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is $20,999,506. The 95 percent value of 1 mill outside the City Center RDA/South Pointe area is $14,941,432, and $17.8 million outside the City Center RDA. Impacts of Decline in Property Values In FY 2009/10, the operating millage rate for general City operations was adopted at 5.6555. Based on the July 1, 2010 Certification of Taxable Value, 5.6555 mills would generate approximately $118,762,706 million in tax revenues, a decrease of $13,916,285 from current year budgeted property tax revenues Citywide (General Fund, City Center RDA and the South Pointe area). The General Fund property tax revenues will decrease by $13.7 million, unless the millage rate is adjusted to offset the decline in property values. The rollback rate is the millage rate required to produce the same level of Citywide property tax revenues in FY 2010/11 as collected in FY 2009/10, thereby forgoing any revenues associated with growth in assessed values. The rollback rate is calculated by dividing the prior year property tax revenues by the current year property values, after new construction, major improvements, annexations, deletions, and tax increment districts are removed from current year property values. For FY 2010/11, the resulting Roll-Back Rate is 6.2030, 0.5475 mills more than the millage rate adopted for FY 2009/10. However, because most of the decline in values occurred outside the City Center RDA, an increase millage of 0.7588 is required to recapture the revenue loss to the General Fund. The recommended increase of 0.56 mills will only partially recapture the General Fund impact of the property value declines. Determining the Voted Debt Service Millage Levy The general obligation debt service payment for FY 2010/11 is approximately $6.03 million, reflecting an increase of $2,286. Based on the July 1, 2010 Certified Taxable Value from the Property Appraiser, these bonds would require the levy of a voted debt service millage of 0.2870 mills. This represents an increase of 0.0302 mills. Despite this increase, the debt service millage remains significantly below historic levels. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 24 Combining the Operating and Voted Debt Service Millage Levies Illustrated below is a comparison of the combined millage rates and ad valorem revenues to the City of Miami Beach for FY 2009/10 (final) and FY 2010/11 (preliminary) including RDA. It is recommended that in the General Fund, 0.1083 mills of the total operating millage continue to be dedicated to renewal and replacement, resulting in approximately $1.77 million in renewal and replacement funding. If these recommended millage rates are tentatively adopted, then the City of Miami Beach’s total operating millage will be adjusted by 0.5600 as compared to the current year, and the voted debt service millage will be adjusted by 0.0302 mills, however, still 1.2 mills below the FY 2006/07 millage rate when property values were similar to today. The following table reflects the resulting property tax levy for FY 2010/11 based on these tax rates and provides historical trends for both taxable values based on the July 1 Certified Taxable Values each year, and the resulting tax levy. 020406080100120140160180200220240 9899'00'01'02'03'04'05'06'07'08'09'10'11Combined Tax Levy (Millions)0 10 20 30 Property Values (Billions)Property Values Tax Levy including Debt FY 06/07 FY 09/10 FY 10/11 Inc/(Dec) From FY 09/10 From FY 06/07 Operating 7.1920 5.5472 6.1072 0.5600 Capital Renewal & Replacement 0.1820 0.1083 0.1083 0.0000 Sub-total Operating Millage 7.3740 5.6555 6.2155 0.5600 9.9% -16% Debt Service 0.2990 0.2568 0.2870 0.0302 Total 7.6730 5.9123 6.5025 0.5902 10.0% -15% City of Miami Beach Millage Rates % Inc/(Dec) FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 25 Impact on Homesteaded Properties The impact of the millage change to homesteaded properties will vary significantly based on how much below market value the property is assessed and the taxable value of the property. In addition for those properties significantly below market value will like be impacted by the CPI adjustment to assessed values. Amendment 10 to the State Constitution took effect on January 1, 1995 and limited the increase in assessed value of homesteaded property to the percentage increase in the consumer price index (CPI) or three percent (3%), whichever is less. For 2009, the CPI has been determined to be 2.7 percent and therefore, the increase is capped at 2.7% for increased values as of January 1, 2010. Overall, based on an analysis of the homesteaded properties in the 2009 tax roll, approximately one-third of homesteaded properties in Miami Beach were assessed at market value for 2009, and therefore will likely decline in taxable value similar to the overall decline. Further, an additional 16 percent of properties were assessed between 0 and 20 percent of market value, and may decline to offset the increased millage rate. As importantly, based on information from the Miami-Dade County Property Appraiser, the median value of homesteaded property in Miami Beach for 2009 was $133,110, and the average $288,709. The following chart shows the distribution of 2009 property values as of February, 2010. over 2M 2%1M to >2M 3%500K to >1M 8% 300K to >500K 11% 130K to >300K 27% 1K to >130K 43% 0 6% 2009 Taxable Value of Homesteaded Properties While impacts to homesteaded versus non-homesteaded properties are not available from the Property Appraiser at this time, overall single family and condominium values declined by 13.7 percent, and existing single family and condominium properties (net of new construction) declined by almost 17 percent. If homesteaded properties similarly declined by 17 percent, the impact of the millage increase would be an annual savings of $68 for the median value property, and $149 for the average value property. Even with no decline or with the 2.7 percent CPI adjustment, these properties would only experience annual increases between $78 and $221. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 26 Median Average Median Average Median Average Median Average Taxable Value 133,110$ 288,709$ 110,481$ 239,628$ 133,110$ 288,709$ 136,704$ 296,504$ City of Miami Beach Taxes Operating 753$ 1,633$ 687$ 1,489$ 827$ 1,794$ 850$ 1,843$ Voted Debt 34 74 32 69 38 83 39 85 Total Miami Beach 787$ 1,707$ 719$ 1,558$ 865$ 1,877$ 889$ 1,928$ $ Change in Taxes Operating (66)$ (144)$ 74$ 161$ 97$ 210$ Voted Debt (2) (5) 4 9 5 11 Total Miami Beach (68)$ (149)$ 78$ 170$ 102$ 221$ * Source: Miami-Dade County Property Appraiser File as of 2/17/10 Homesteaded Properties FY 2010/11 (as of January 1 2010)FY 2009/10 (as of January 1 2009)*with 17% Decline with no change with 2.7% CPI Applying the decline to the market value of all existing homesteaded properties from the 2009 tax roll, and the 2.7 percent CPI adjustment, the impact of the millage rate adjustment to homesteaded properties would be as shown in the following table. Further, it is estimated that approximately 40 percent could either have no impact or could actually experience a savings, due to offsetting declines in property values. Further, approximately 50 percent more homeowners are estimated to have their taxes increase less than $300. As a result, approximately 90 percent of homesteaded properties will have less than a $300 per year ($25 per month) impact. This was confirmed with the latest information provided by the property appraiser. PRECENT CUMULATIVE  PERCENT Greater than $5,000 in savings 0.0% 0.0% $3,001 ‐ $5,000 savings 0.1% 0.1% $2,001 ‐ $3,000 savings 0.3% 0.5% $1,001 ‐ $2,000 savings 1.3% 1.8% $501 ‐ $1,000 savings 3.0% 4.8% $301 ‐ $500 savings 4.1% 8.9% $251 ‐ $300 savings 2.1% 11.0% $201 ‐ $250 savings 3.7% 14.7% $101 ‐ $200 savings 8.4% 23.1% $1 ‐ $100 savings 9.7% 32.8% $0 impact 5.4% 38.2% $1 ‐ $100 increase 33.2% 71.4% $101 ‐ $200 increase 13.9% 85.3% $201 ‐ $250 increase 3.3% 88.6% $251 ‐ $300 increase 2.2% 90.9% $301 ‐ $500 increase 4.5% 95.4% $501 ‐ $1,000 increase 2.9% 98.3% $1,001 ‐ $2,000 increase 1.2% 99.5% $2,001 ‐ $3,000 increase 0.2% 99.7% $3,001 ‐ $5,000 increase 0.2% 99.9% Greater than $5,000 increase 0.1% 100.0% FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 27 Impact on Non-Homesteaded Properties It is anticipated that, the increased millage rate for commercial properties, would, on average be offset by the decline in property values, although individual properties could vary significantly. Historical Perspective It is important to remember that in prior years, the City of Miami Beach significantly reduced tax rates as property values declined. Between FY 1999/00 and FY 2009/10, property tax rates declined approximately 2.8 mills. In FY 2007/08 alone, the property tax rate declined by approximately 1.8 mills, with annual savings to the average homesteaded property of over $400. In addition, in FY 2005/06 and FY 2006/07, the City funded $200 and $300 homeowner dividends paid to homesteaded property owners in the City. Even with the modest millage rate increase proposed for FY 2010/11, the proposed taxes for an average value property, is approximately $330 less than it would have been with the FY 2006/07 millage rate. Total  Citywide General  Fund/RDA  Millage Total   including  Debt General Fund  Total (including  S. Pointe, and  Renewal &  Replacement) Annual Cumulative FY1997/98 6.46$             9.2100 7.4990 57.45$          46.78$                FY1998/99 6.97$             8.9830 7.4990 60.37$          44.66$                FY1999/00 7.66$             8.6980 7.4990 64.29$          47.36$                FY2000/01 8.37$             8.5550 7.3990 69.08$          49.75$                FY2001/02 9.40$             8.3760 7.2990 75.97$          54.37$                FY2002/03 10.56$           8.3220 7.2990 84.81$          61.05$                FY2003/04 12.09$           8.1730 7.2990 95.39$          68.17$               $13.15 $13.15 FY2004/05 14.04$           8.1730 7.4250 110.74$       79.38$               $31.05 $44.20 FY2005/06 17.45$           8.0730 7.4810 135.91$       111.69$             $35.63 $79.83 FY2006/07 22.74$           7.6730 7.3740 168.38$       140.31$             ($30.75)$49.08 FY2007/08 26.85$           5.8970 5.6555 150.42$       125.33$             ($436.00)($386.92) FY2008/09 26.90$           5.8930 5.6555 150.59$       125.94$             ($86.00)($472.92) FY2009/10 24.70$           5.9123 5.6555 138.70$       115.73$             ($80.00)($552.92) FY2010/11 22.10$           6.5025 6.2155 136.55$       112.04$             $221.00 ($331.92) Taxable  Property  Values  (billions) Budget  Year Millage Rates Tax Levy (in millions) Impact to a average value  property with CPI adjustment to  assessed value Even with the modest proposed increase in millage, total property tax revenues will still be approximately $18 million below FY 2006/07 levels. Finally, Miami Beach continues to provide more tangible value for tax dollars paid than many other taxing jurisdictions. For example, in FY 2009/10, it is estimated that the homesteaded property owner of an average value homesteaded property would have paid approximately $1,700 in FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 28 property taxes to the City as compared to over $4,000 to the County, the school board and other local taxing jurisdictions, approximately $2,400 in sales taxes to the state, and approximately $7,000 in income taxes to the Federal government. Overlapping Jurisdictional Operating and Debt Service Millage Levies City of Miami Beach property owners must also pay property taxes to Miami-Dade County, the Miami-Dade County School Board, the Children’s Trust, the South Florida Water Management District, and the Florida Inland Navigation District. Based on the FY 2010/11 Proposed Budget for Miami-Dade County released on July 7, 2010, the countywide tax rate is proposed to increase from 4.8379 mills to 5.4275 mills; the library tax rate is proposed to decrease from 0.3822 mills to 0.3500 mills; and the debt service millage is proposed to increase from 0.2850 to 0.4450. The proposed tax rate for the Miami-Dade School District is 8.2490 which is 0.254 mills greater than the prior year millage of 7.995. The Children’s Trust millage is maintained at 0.5 mills. Using tax rates known at this time, the changes in tax rates are estimated in the following table. With the recommended millage rates for FY 2010/11, the Miami Beach portion of the FY 2010/11 tax bill is anticipated to be 29 of the total bill based on tax rates known at this time. Of note, it appears that the millage rates proposed by the other taxing jurisdictions brings them up to virtually the same millage rates as they had in FY 2006/07. The significant difference in the total overlapping millage rate is a direct result of the City’s effort to keep the millage rates as low as Variance from 09/10 City of Miami Beach Millage Rates Operating 7.1920 5.5472 6.1072 0.5600 Capital Renewal & Replacement 0.1820 0.1083 0.1083 0.0000 Subtotal Operating Millage 7.3740 5.6555 6.2155 0.5600 Voted Debt Service 0.2990 0.2568 0.2870 0.0302 Total 7.6730 5.9123 6.5025 0.5902 29% Miami Dade County Countywide 5.6150 4.8379 5.4275 0.5896 Library 0.4860 0.3822 0.3500 -0.0322 Debt Service 0.2850 0.2850 0.4450 0.1600 Subtotal 6.3860 5.5051 6.2225 0.7174 28% School Board 8.1050 7.9950 8.2490 0.2540 39% Children's Trust 0.4220 0.5000 0.5000 0.0000 2% Other 0.7360 0.6585 0.6585 0.0000 3% Total 23.3220 20.5709 22.1325 1.5616 100% % of TotalFY 06/07 FY 09/10OVERLAPPING TAX MILLAGE FY 10/11 FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 29 possible. In spite of the modest recommended adjustment, the City’s efforts will result in an overlapping millage rate that is still 1.2 mills lower than what it was in FY 2006/07. Property Tax Changes The following table provides examples of changes in property taxes for homesteaded properties as a result of these declines in values, using the proposed tax rates. Median Average Median Average Median Average Median Average 2009 Taxable Value 133,110$ 288,709$ 110,481$ 239,628$ 133,110$ 288,709$ 136,704$ 296,504$ City of Miami Beach Operating 753$ 1,633$ 687$ 1,489$ 827$ 1,794$ 850$ 1,843$ Voted Debt 34$ 74$ 32$ 69$ 38$ 83$ 39$ 85$ Total Miami Beach 787$ 1,707$ 719$ 1,558$ 865$ 1,877$ 889$ 1,928$ Miami Dade County 733$ 1,589$ 687$ 1,491$ 828$ 1,796$ 851$ 1,845$ Schools 1,064$ 2,308$ 911$ 1,977$ 1,098$ 2,382$ 1,128$ 2,446$ Other 154$ 144$ 128$ 120$ 154$ 144$ 158$ 148$ Total 2,738$ 5,748$ 2,445$ 5,146$ 2,945$ 6,199$ 3,026$ 6,367$ Change in Taxes City of Miami Beach Operating (66)$ (144)$ 74$ 161$ 97$ 210$ Voted Debt (2)$ (5)$ 4$ 9$ 5$ 11$ Total Miami Beach (68)$ (149)$ 78$ 170$ 102$ 221$ Miami Dade County (46)$ (98)$ 95$ 207$ 118$ 256$ Schools (153)$ (331)$ 34$ 74$ 64$ 138$ Other (26)$ (24)$ -$ -$ 4$ 4$ Total (293)$ (602)$ 207$ 451$ 288$ 619$ with 17% Decline FY 2009/10 (as of January 1 2009)* FY 2010/11 (as of January 1 2010) with no change with 2.7% CPI As the City of Miami Beach millage rates, impacts of the combined jurisdictional millage rates for non-homesteaded properties will likely be offset by declines in property values, although individual properties may vary. GENERAL FUND CURRENT SERVICE LEVEL REVENUES Initial projections in May, 2010 of Current Service Level non ad-valorem revenues were essentially unchanged from the FY 2010, with increases in revenues from franchise fees and utility taxes projected to be offset by declines in golf course revenues and interest earnings. Current Service Level revenues represent the amount of revenues that would be generated based on existing fees and charges. The revenue projections were refined over the summer to reflect increased franchise and utility taxes, sales taxes, business tax receipts and fire inspection fees, building development process fees, rents and leases, increased reimbursements from capital projects and administrative fees charged to enterprise funds, offset by decreased interest earnings. Total revised Current Service Level revenues are $217 million, reflecting the $13.7 million decline in property values, offset by the increase of approximately $4 million in increased non-ad valorem revenues. The projected FY 2010/11 revenues for the Proposed Work Plan and Budget are reflected in the following chart; approximately $10 million less than FY 2009/10 revenues if no other actions were taken. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 30 GENERAL FUND EXPENDITURES Historically, Current Service Levels (CSL) expenditures have increased between 6% and 8% annually due to salary and fringe increases and other normal CPI adjustments to other operating expenses However, the FY 2010/11 budget is significantly impacted by increased pension costs, an increase of almost $15 million in the General Fund, primarily due to increases in the Fire and Police Pension Plan contribution requirements. Further the FY 2009/10 budget included the assumption that merits or step adjustments to salaries would be frozen. However, this had not occurred at the time of the preparation of the CSL budget, with the exception of merit freezes for non-bargaining unit employees and employees of the Government Supervisor’s Union (GSA). As a result the FY 2010/11 General Fund CSL budget reflects salary and wage increases of $3 million above the FY 2009/10 adopted budget. It is important to note that, had the non-bargaining unit and GSA employees not frozen their merits, the increase in the FY 2010/11 salaries would have been $4.5 million. The Internal Service Fund charge-backs to Department also increased significantly, in part due to their share of the impact on merit increases but primarily due to increases in the Risk Management Fund for claims incurred but not reported, as well as increased costs of legal services. Together, salaries and fringe represent 73 percent of CSL personnel costs, with salaries and pension representing approximately 67 percent of the total current service level (CSL) budget of Revenues FY 2009/10 Budget FY 2010/11 CSL Budget Inc/(Dec) over FY 2009/10 Total Budget Operating Millage Property Tax Citywide 103,809,283$ 91,032,159$ (12,777,124)$ Property Tax South Pointe 9,896,609 9,231,271 (665,338) Property Tax Normandy Shores 2,026,707 1,777,254 (249,453) Capital Renewal/Replacement 95,795 100,517 4,722 Subtotal 115,828,394 102,141,201 (13,687,193) Other Taxes 24,040,704 25,417,600 1,376,896 Locenses and Permits 14,526,875 15,311,704 784,829 Intergovernmental Revenues 9,172,470 9,618,140 445,670 Charges for Services 3,961,750 4,444,228 482,478 Golf Courses 5,731,538 5,504,155 (227,383) Fines and Forfeits 3,182,000 3,211,263 29,263 Interest 5,336,000 3,552,000 (1,784,000) Rents and Leases 4,578,161 4,844,352 266,191 Miscellaneous 8,590,050 10,747,513 2,157,463 Other - Resort Tax Reimbursement 22,465,440 22,465,440 - Other - Non-operating Revenues 8,922,644 9,611,712 689,068 Subtotal 110,507,632 114,728,107 4,220,475 Total 226,336,026$ 216,869,308$ (9,466,718)$ FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 31 $246 million, (including the impacts of merit/steps increases, pension contributions, etc.). It is important to note that, for the second year in a row, the City is keeping health insurance at current year levels, reflecting success from the City’s recently implemented self-insurance program. It should be noted that approximately $28 million in other operating costs (12 percent of CSL budget) reflected a decrease of approximately $500,000 almost half of which was offset by approximately $270,000 of the first year impacts of the new living wage requirements. This $500,000 savings reflects the results of various cost savings initiatives by the City such as re- bidding contracts, careful review of department line item expenditures, other efficiencies, etc. As a result, there is an estimated increase of $19.7 million in CSL expenditures. Again, it is important to note that, had the non-bargaining unit and GSA employees not frozen their merits, the increase in the FY 2010/11 CSL budget would have been $21.2 million. Approaches to Balance The difference between $216.9 million of CSL revenues and $246 million of CSL expenditures resulted in a gap of $29.1 million which had to be addressed. Based on direction provided by the Finance and Citywide Projects Committee meetings between July and August, 2010, and following the strategy laid out in our retreats in January and May of this year, approximately $1.5 million in General Fund expenditure recurring reductions were identified (in addition to the $43 million in recurring reductions over the last 3 years). Further, an additional $1.1 million in revenue enhancements were also identified. Expenditures FY 2009/10 Budget FY 2010/11 CSL Budget % of FY 2010/11 CSL Inc/(Dec) over FY 2009/10 Total Budget Salaries 98,060,582$ 101,066,227$ 41% 3,005,645$ Other Wages 12,538,260 12,575,804 5% 37,544 Pension Plan 36,383,351 51,379,704 21% 14,996,353 Health & Life Insurance 8,653,098 8,660,967 4% 7,869 Other Fringes 5,146,670 5,152,588 2% 5,918 Total Operating 28,509,680 28,311,504 12% (198,176) Internal Services 32,044,877 34,415,587 14% 2,370,710 Capital 3,784,286 3,224,581 1% (559,705) Debt 1,215,222 1,215,222 0% - Total 226,336,026$ 246,002,184$ 100% 19,666,158$ Note: The CSL budget was subsequently reduced to $237,528,114 as described below FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 32 "Gap" To Be Addressed (29,132,876)$ Efficiencies and Reductions General Fund 1,255,095 Impacts of Internal Service Adjustments 258,485 Subtotal 1,513,580$ Revenue Enhancements Non-Property Tax Enhancements 1,107,417 Increase Resort Tax Contribution 2,000,000 Transfer of Prior Year Surplus from The Parking Operating Fund 3,600,000 FY 2008/09 Year-end Surplus 3,657,000 Subtotal 10,364,417$ Additional Employee “Give-backs” (almost $9 million in total impact to the General Fund Budget - GSA and Unclassifieds/Other merit savings already in CSL)7,288,108$ Other Adjustments Decrese in uniform expenses from sponsorships 54,000 Additional Revenues from Increased FOP reimbursement for take- home program 64,154 Subtotal 118,154$ Millage Recapture 10,103,931$ Surplus 255,314$ Enhancements (255,314) Balanced Budget -$ Proposed Approaches to Balance As a result, the approximately $29.1 million shortfall between Current Service Level revenues and expenditures has been addressed through the following: • $7.3 million Additional Employee “Give-backs” (almost $9 million in total impact to the General Fund Budget) • $1.1 million Revenue Enhancements • $1.5 million Efficiencies and Reductions • $2.0 million Increased transfers from Resort Tax to the General Fund • $3.7 million FY 2008/09 Year-end Surplus • $3.6 million Transfer of Prior Year Surplus from The Parking Operating Fund • $10.1 million Millage Recapture FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 33 It is important to note that we have also reviewed our operations to identify, where possible, privatizing and outsourcing of functions. While our contracts with AFSCME, GSA, FOP and IAFF, preclude this possibility, at least in the short-term, we have identified several potential areas that could result in recurring annual savings of approximately $1 million in the General Fund, and more than $1 million outside the General Fund. (See attached Exhibit D) Several of these initiatives will take significant time and effort time to implement, with some requiring competitive procurement, etc. For budget purposes, we have assumed full implementation by mid fiscal year, however, it is my intent to move as quickly as possible to maximize the savings. Any savings beyond that budgeted will be used to reduce our use of the FY 2008/09 year-end surplus set-aside. Further the initiatives described in Exhibit D are conceptual, and it is my intent to maximize savings from this approach. The proposed budget incorporates the reduction of an additional 54 full-time positions from these initiatives (offset by the addition of 67 part-time positions) in the General and 22 full-time positions in Internal Service Funds (a total of 133 full-time positions offset by the addition of 53 positions Citywide). However, the actual number of positions impacted could differ from those presented above. Of note, the Current Service Level expenditures reflect no additional transfers to the 11 percent Emergency Reserve or towards the City’s additional 6 percent contingency goal. Reserve levels are sufficient to fund the 11 percent reserve for the Proposed FY 2010/11 Operating Budget. The City’s 11percent reserve is projected to be fully funded in FY 2010/11 from reserve levels as of September 30, 2009 at $26.1 million, in addition to funding $13.6 million or 5.7 percent towards the additional 6 percent contingency goal, for a total fund balance reserve of almost $40 million if there are no additional changes in fund balance, and no additional transfers made. The resulting total Proposed General Fund Operating Budget for FY 2010/11 is $237,518,114, which is $11.2 million or 5 percent more than the FY 2009/10 Adopted Budget of $226,336,026. ENTERPRISE FUNDS Enterprise Funds are comprised of Sanitation, Water, Sewer, Stormwater, Parking, and Convention Center Departments. The Proposed FY 2010/11 Enterprise Funds Budget is $155.8 million. This represents an increase of $15.2 million from the FY 2009/10 Enterprise Fund Budget, an increase of 10.8 percent. However, of this amount, $8.1 million is primarily due to rate stabilization funds from prior years reflected as FY 2010/11 revenues for debt coverage calculation purposes only – these are not due to increased expenditures. The additional $8.1 million is budgeted as FY 2010/11revenues in the water and sewer funds from prior year surplus so that the net revenues at year-end are sufficient to exceed the bond coverage requirements. Since they are not anticipated to be needed to cover expenditures, they are projected to return to the water and sewer rate stabilization funds at year end and would then be available for debt coverage calculations in the following year. Were these funds not available from prior year surplus, water and sewer rate increases would be needed to meet debt coverage requirements. FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 34 An additional $3.6 million is due to revenues from increased rates in the Parking Fund, the proceeds of which are directed to reserves. The remaining $3.5 million increase is primarily the result of true up charges from the Miami-Dade which in FY 2009/10 was a credit and in FY 2010/11 is an additional charge. Utility Rate Relief for Homeowners We are pleased to be able to provide relief in several areas affecting overall homeowners expense, where fee increases had been previously programmed, thereby providing a net benefit for our taxpayers. In the enterprise fund budget, I am recommending no increases in water, sewer and stormwater fees and, in fact, a decrease in household sanitation fees which were bid and negotiated this summer. During the FY 2009/10 budget development process, we had initially forecast that water, sewer and stormwater fees would need to increase by $0.33 per thousand gallons, $0.45 per thousand gallons and $1.27 per month, respectively for FY 2010/11 for debt service and bonding capacity. The combined monthly impact of these then-proposed fee increases for an average household user of 11,000 gallons would have been approximately $9.85 per month, or $118.20 per year. However, due to lower operating costs than previously projected, in part due to the “employee give-backs,” as well as the use of rate stabilization funds from prior years, I do not see a need to recommend any increases in these rates for FY 2010/11. Further, in the Sanitation Fund, I am recommending decreasing the household fee by $1.58 per month (almost $20 per year) by passing through the savings from the new residential waste collection contract to our users. In short, the combined impact from the reduction in the household sanitation fee, and the cost avoidance from not raising the water, sewer and stormwater fees as previously programmed, represents a combined household reduction of almost $140 per year from our projections a year ago. This reduction is significantly more than the $74 impact of the proposed increase of 0.56 mills on the median household with a taxable value of $133,000 in 2009, and almost completely offsets the impact of the mill adjustment for the average household (assuming the 2009 average taxable value with no declines in taxable value). Parking Operations In terms of parking rates, the proposed rates submitted for your consideration reflect the recommendations approved during the August 25, 2010 Finance and Citywide Projects Committee meeting. As you may recall, these recommendations include increasing hours of enforcement in South Beach until 3am; increasing meter parking rates (other than for I-Park device users who are residents) from $1.25 per hour to $1.50 per hour; and increasing hotel hang tag rates from $6 per tag to $10 per tag. As we discussed, to the extent that the increased parking revenues result in additional revenues in excess of expenditures at the end of FY 2010/11, these funds will be used FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 35 to offset the $3.6 million transfer from the Parking Operating Fund to the General Fund in FY 2010/11. The Enterprise Funds budget include a modest reduction through efficiencies, including a reduction of 4 full-time positions offset by the addition of 4 part-time positions. These savings also are offset by $235,000 from 4 full-time positions transferred from the General Fund into the Water and Sewer Funds. Additional details are contained in Exhibits A through F attached. In the Parking Fund, the proposed budget also incorporates the reduction of an additional 33 full-time positions and 14 part-time positions from outsourcing Parking enforcement as shown on Exhibit D, with an anticipated savings of $400,000 in the first year, and annually recurring savings of over $1 million. However, the actual number of positions impacted could differ from those presented above. The Water, Sewer and Stormwater Funds also reflect the impact of an additional Information Technology position. Further the Parking Fund incorporates the addition of overtime to address quality of life issues in South Pointe on weekends, as well as 3 par-time positions for the increased hours of enforcement in South Beach. INTERNAL SERVICE FUNDS Internal Service Funds are comprised of the Central Services, Fleet Management, Information Technology, Risk Management and Property Management Divisions. The Proposed FY 2010/11 Internal Service Fund budget is $52.4 million. This represents an increase of $2.6 million (5 percent) from the FY 2009/10 budget, primarily due to increases in the Risk Management Fund for claims incurred but not reported, as well as increased costs of legal services. These costs are completely allocated to the General Fund and Enterprise Fund departments, and the Risk Management Fund reimburses the General Fund for the cost of legal services. The Information Technology Fund includes the impact of the reduction of 2 full-time positions, and the Property Management Fund, includes the reduction of 3 full-time positions for a total reduction of approximately half a million dollars. Further, through outsourcing of several functions and 22 full- time positions in the Property Management Fund, we hope to be able to achieve annual recurring savings of over $400,000 in the long term. (See attached Exhibits A through D) RESORT TAX BUDGET The Proposed FY 2010/11 Resort Tax budget is $41.3 million, an increase of $2.4 million (a 6 percent increase) from FY 2009/10. This reflects the rebound of resort tax revenues from the downturn in last fiscal year. Of the $2.4 million increase: FY 2010/11 Proposed Work Plan and Budget Message September 10, 2010 Page 36 • An additional $2 million is proposed to be transferred to the General Fund for tourism- related services provided by General Fund departments for a total transfer of $24.47 million. • An additional $0.14 million for the contractual CPI adjustment in the transfer to the Greater Miami Convention and Visitors Bureau, for a total of $5.14 million. • An additional $0.12 million and $0.1 million is transferred for quality of life capital projects and the arts and the Miami Beach Visitors Convention Authority based on funding formulas, for a total of $3.58 million and $1.6 million, respectively. The Debt service is reduced by $0.23 million to $4.8 million, and administrative expense are reduced by $0.05 million, resulting in an additional $0.3 million in contingency for a total of $0.4 million in contingency. Further, and $200,000 continues to be funded for a Miami Beach marketing campaign; with marketing funds added to by contributions from the Greater Miami Convention and Visitors Bureau, The Miami Beach Visitors Convention Authority, and the Cultural Arts Council to market Miami Beach as a local destination. CONCLUSION Although the development of our budget this year has been challenging, through rigorous review and good leadership, the Proposed Work Plan and Budget for FY 2010/11 is balanced and enables the City of Miami Beach to continue delivering outstanding, enhanced services to our residents, businesses and visitors, providing fee relief in our Enterprise Funds, and continuing structural enhancements to ensure the long-term sustainability of the City. In summary, the proposed FY 2010/11 General Fund operating budget maintains current service priorities for the community, despite property tax rates set at 1.2 mills (16 percent) lower than FY 2006/07 when property values were similar to the 2010 certified values. Further, I am also recommending keeping water, sewer, and stormwater rates flat and reducing household sanitation fees, resulting in a combined reduction of almost $140 per household per year from our expected rates just one year ago. 11% Increase in Health InsuranceLiving Wage Impacts to General Fund ($270,000)CSL Budget Addtl. Efficiency Reorg. Etc.Potential Service Reductions Plan BTotal% of CSLGeneral Fund$'sFT PT $'s % FT PT %FT PTMayor & Commission1,478,523$ 19.0 - (47,000)$ -3% -1.0 0.0 -5% 1,670,099$ -$ (95,801)$ (95,801)$ -6.4% -1.3 0.0City Manager2,293,523$ 10.0 - (333,005)$ -15% -3.0 0.0 -30% 2,435,596$ -$ (15,862)$ (15,862)$ -0.7% -0.3 0.0Communications914,249$ 5.0 - (367,859)$ -40% -4.0 0.0 -80% 898,292$ -$ -$ -$ 0.0% 0.0 0.0OBPI1,993,560$ 12.0 - (298,449)$ -15% -3.0 0.0 -25% 1,881,900$ -$ -$ -$ 0.0% 0.0 0.0Finance4,416,396$ 32.5 - (588,321)$ -13% -10.0 0.0 -31% 4,260,074$ -$ -$ -$ 0.0% 0.0 0.0Procurement901,633$ 9.0 - (82,017)$ -9% -1.0 0.0 -11% 1,002,303$ -$ -$ -$ 0.0% 0.0 0.0Human Resources/Labor Relations 1,764,137$ 15.1 1.0 (413,742)$ -23% -5.5 1.0 -28% 1,751,962$ -$ -$ -$ 0.0% 0.0 0.0City Clerk1,567,479$ 9.6 - (79,899)$ -5% -1.4 0.0 -15% 1,537,852$ -$ -$ -$ 0.0% 0.0 0.0City Attorney4,227,546$ 19.0 1.0 (422,362)$ -10% -3.0 0.0 -15% 4,178,202$ -$ (53,193)$ (53,193)$ -1.3% -0.3 -1.0Real Estate, Housing & Community Dev 1,944,541$ 9.9 - (281,910)$ -14% -4.0 0.0 -40% 2,017,258$ -$ -$ -$ 0.0% 0.0 0.0(incl. Community Services)Building8,601,507$ 72.0 - (601,165)$ -7% -8.0 0.0 -11% 9,633,219$ -$ -$ (34,842)$ (34,842)$ -0.4% -7.0 0.0Planning2,983,728$ 26.0 - (254,146)$ -9% -3.0 0.0 -12% 3,274,012$ (56,205)$ -$ (56,205)$ -1.8% 0.0 0.0TCD2,644,076$ 13.5 - (485,903)$ -18% -2.0 0.0 -15% 2,694,596$ -$ -$ -$ 0.0% 0.0 0.0Code Compliance (Neigborhood Svcs*) 4,094,956$ 36.0 3.0 (843,826)$ -21% -10.0 0.0 -26% 4,117,957$ -$ -$ (38,719)$ (38,719)$ -1.0% -11.0 11.0Parks & Recreation29,059,224$ 181.5 129.0 (2,493,547)$ -9% -44.0 0.0 -14% 28,738,322$ (213,972)$ (168,890)$ (56,297)$ (439,159)$ -1.5% -21.0 11.0Public Works6,545,304$ 44.5 - (1,211,653)$ -19% -13.5 0.0 -30% 6,623,984$ (234,882)$ -$ (234,882)$ -3.6% -4.0 0.0CIP3,843,831$ 35.0 (3,963)$ 0% 1.0 0.0 3% 4,737,049$ (59,900)$ -$ (59,900)$ -1.5% 0.0 0.0Police81,127,849$ 493.0 14.0 (4,810,010)$ -6% -60.0 0.0 -12% 91,591,717$ (59,365)$ (44,771)$ (104,136)$ -0.1% -2.0 1.0Fire50,900,788$ 302.0 48.0 (2,252,582)$ -4% -7.0 0.0 -2% 58,571,871$ (115,612)$ -$ (92,044)$ (207,656)$ -0.4% -20.0 40.0Citywide 11,824,469$ - (1,256,000)$ -11% 0.0 0.0 0% 11,324,380$ -$ (136,642)$ 221,901$ 85,259$ 0.7% 0.0 0.0Subtotal 223,127,319$ 1344.6 196.0 (17,127,359)$ -8% -182.4 1.0-12%242,940,645$ (739,936)$ (515,159)$ -$ (1,255,095)$ -0.5% -67.0 62.0PRELIMINARY CSL INCLUDE3-Year Prior ReductionsPositions/% of FY 2009/10 BudgetPROPOSED FY 2010/11 EXHIBIT A - PRIOR YEAR REDUCTIONS , PRELIMINARY CSL & SUMMARY OF IMPACTS OF PROPOSED REDUCTIONSFY 2009/10 Adopted Budget$ Impact/% of FY 2009/10 BudgetPOS. Impacts CSL Budget Addtl. Efficiency Reorg. Etc.Potential Service Reductions Plan BTotal% of CSL FT PTGeneral Fund$'sFT PT $'s % FT PT %TransfersCapital Reserve-$ (2,500,000)$ Pay-As-You-Go Capital-$ (7,500,000)$ Info & Comm. Tech Fund800,000$ (600,000)$ 715,000$ 0.0%Capital Investment Upkeep Acct382,000$ (1,618,000)$ 200,000$ 0.0%Renewal and Replacement Fund2,026,707$ (1,056,529)$ 1,777,254$ 0.0%Homeowners Dividend(4,900,000)$ -$ -$ -$ Transfer to Risk Fund(1,000,000)$ -$ -$ -$ Transfer to 11% Reserve(3,338,419)$ -$ -$ -$ Employee ItemsEliminate FY 10 Merits and Steps(1,395,430)$ Implement Class & Comp Study(50,000)$ Increase pension contribution by 2%(2,055,345)$ Add Backs for Unnegotiated Items - GF componentFY 11 Merits/Steps forCWA, AFSCME369,285$ Total General Fund 226,336,026$ 1344.6 196.0 (43,141,082)$ -19% -182.4 1.0 -12% 246,002,184$ (739,936)$ (515,159)$ -$ (1,255,095)$ -0.5% -67.0 62.0* Neigborhood Services Department was split into various functions and significantly reduced in FY 2007/08 - Chart reflects reductions as part of Code Compliance19,666,158$ IncreaseInternal Service FundsInformation Technology 14,053,320$ 37.5 - (1,186,580)$ -8% -7.0 -19% 14,663,127$ (38,737)$ (196,660)$ (235,397)$ -1.6% -2.0 0.0Risk Management17,695,708$ 5.9 - (325,443)$ -2% -0.5 -8% 20,542,285$ -$ -$ -$ 0.0% 0.0 0.0Central Services825,568$ 4.4 - (82,064)$ -10% -1.6 -36% 856,355$ -$ -$ -$ 0.0% 0.0 0.0Property Management - Non RDA 8,414,159$ 47.0 - (1,146,942)$ -14% -19.0 -40% 8,503,647$ (222,495)$ -$ (138,304)$ (360,799)$ -4.1% -25.0 0.0Fleet Management8,813,996$ 21.0 - (199,304)$ -2% -3.0 -14% 8,375,372$ -$ -$ -$ 0.0% 0.0 0.0Total Internal Service Funds 49,802,751$ 115.8 0.0 (2,940,334)$ -6% -31.1 0.0 -27% 52,940,786$ (261,232)$ (196,660)$ (138,304)$ (596,196)$ -1.1% -27.0 0.03,138,035$ IncreaseImpact to the General Fund (259,000)$ SUB-TOTAL GENERAL FUND + INTERNALS 276,138,777$ 1460.4 196.0 (46,081,415)$ -17% -213.5 1.0 -13% 298,942,970$ (1,001,168)$ (711,819)$ (138,304)$ (1,851,291)$ -0.6% -94.0 62.0Enterprise FundsConvention Center14,095,401$ 2.0 - (468,778)$ -3% 0.0 0% 12,832,911$ -$ -$ -$ 0.0% 0.0 0.0Water 31,693,409$ 53.7 - (548,388)$ -2% -15.0 -28% 30,855,826$ 138,668$ -$ 138,668$ 0.4% 2.0 0.0Sewer35,700,599$ 32.7 - (329,183)$ -1% -9.0 -28% 39,895,484$ 96,214$ -$ 96,214$ 0.2% 2.0 0.0Stormwater11,439,438$ 25.1 - (290,428)$ -3% 0.5 2% 16,906,071$ (44,152)$ -$ (44,152)$ -0.3% -1.0 0.0Sanitation16,351,303$ 192.0 - (362,330)$ -2% -3.0 -2% 16,468,537$ -$ -$ -$ 0.0% 0.0 0.0Parking31,337,778$ 118.5 10.0 (731,919)$ -2% -5.0 -4% 34,605,368$ (18,432)$ -$ (411,640)$ (430,072)$ -1.2% -36.0 -10.0Total Enterprise Funds 140,617,928$ 424.0 10.0 (2,731,026)$ -2% -31.5 0.0 -7% 151,564,197$ 172,298$ -$ (411,640)$ (239,342)$ -0.2% -33.0 -10.0GRAND TOTAL* 416,756,705$ 1884.4 206.0 (48,812,441)$ -12% -245.0 1.0 -12% 450,507,167$ (828,870)$ (711,819)$ (549,943)$ (2,090,632)$ -0.5% -127.0 52.0FY 2009/10 Adopted BudgetPOS. ImpactsPROPOSED FY 2010/11 3-Year Prior Reductions* In addition, in FY 2009/10 there are 23 Police and Property Management positions budgeted in the City Center RDA and 19.6 FT positions budgeted through grants and special revenue funds. The FY 2010/11 Proposed Budget for the RDA recommends reducing 5 FT positions as shown in Exhibits B - D. The FY 2010/11 CSL budget for Internal Services and Enterprise Funds has already accounted for "Employee Givebacks".$ Impact/% of FY 2009/10 BudgetPositions/% of FY 2009/10 Budget Impact Cumulative Dept. Impact Full Time Part Time Proj. Vacant Filled Mgt. & Admin Non Mgt. Police (59,365)$ (59,365)$ (1.0) (1.0) (1.0) Fire (115,612)$ (115,612)$ Parks & Recreation $ (16,960)(16,960)$ (1.0) (1.0) (1.0) $ (30,847)(47,807)$ (2.0) (1.0) (1.0) (2.0) $ (103,596)(151,403)$ (2.0) (2.0) (4.0) (4.0) (62,569)$ (213,972)$ (2.0) (2.0) (2.0) Public Works (138,668)$ (138,668)$ (2.0)(2.0) (2.0) (96,214)$ (234,882)$ (2.0)(2.0) (2.0) $ (59,900)(59,900)$ The field support positions of (1) Mason and (1) Mason Helper will be transferred to the Sewer Division. These are employees working daily restoring sidewalk squares due to new clean-outs or restoring clean-outs. Eliminate two vacant full time Recreation Leaders, and two part time vacant Recreation Leaders through restructring and re-alignment of functions Eliminate 1 VACANT Part Time MSW 3 position (+benefits) Position # 4105-060 Impact: Work will be absorbed by existing staff Freeze one (1) vacant position and eliminate (2) vacant positions for FY11 and utilize a portion of the funds, $50,000 to obtain contractual professional tree services utilizing current in-house full service landscape contractors. CIP Eliminate ALL PT Concession Attendant positions from the Budget. Recreation Leader I's will be reassigned to perform tasks that include: • Compiling and maintaining necessary records and receipts. • Advise the public regarding available activities. • Adhere to all check lists, policies and procedures. • Performs varied record keeping duties such as, but not limited to attendance, field trip and sign in/out logs. These duties are listed in the Recreation Leader I job description. Impact: Elimination of these positions reduces the long term plan to increase our customer service standards within the Department. Community Information - The elimination of the two Community Information Coordinator positions and create two Public Information Specialist a reduction of salary from a pay grade 16 to a pay grade 13. EXHIBIT B - POSITIVE IMPACT OR MINIMAL SERVICE IMPACT EFFICIENCIES, ETC. Position Impacts GENERAL FUND The field support positions of Streets Supervisor and HEO II will be transferred to the Water Division. These are employees working daily restoring sidewalk squares due to new water services or water meter box replacements. Hire 3 additional firefighters to work on a weekend schedule to reduce the cost of overtime on the weekends - Hired as overage for the first year pilot stage Eliminate one Administrative Aide II- (Technical Sections/Records Unit/Alarms) Processing and maintaining Alarm Subscriber permits, billing, and renewals will be made available on-line - Police will also see if registrations of new installations can be included in the building permit process Impact Cumulative Dept. Impact Full Time Part Time Proj. Vacant Filled Mgt. & Admin Non Mgt. Position Impacts GENERAL FUND Building -$ Planning (56,205)$ (56,205)$ (739,936)$ (739,936)$ (9.0) (5.0) (8.0) (6.0) 0.0 (14.0) Impact Cumulative Dept. Impact Full Time Part Time Proj. Vacant Filled Mgt. & Admin Non Mgt. Information Technology $ (38,737) $ (38,737) Property Management $ (74,795) $ (74,795) (1.0)(1.0) (1.0) (36,316)$ (111,111)$ (111,384)$ (222,495)$ (2.0)(2.0) (2.0) (261,232)$ (261,232)$ (3.0) 0.0 0.0 (3.0) (1.0) (2.0) Property Management - City Center (66,633)$ $ (66,633) (1.0)(1.0)(1.0) Impact Cumulative Dept. Impact Full Time Part Time Vacant Filled Mgt. & Admin Non Mgt. Sewer 96,214$ 96,214$ 2.0 2.0 2.0 Water 138,668$ 138,668$ 2.0 2.0 2.0 Stormwater $ (44,152) $ (44,152) (1.0)(1.0) (1.0) Parking (18,432)$ (18,432)$ (3.0) 4.0 1.0 1.0 172,298$ 172,298$ 0.0 4.0 0.0 4.0 0.0 4.0 (895,503)$ (895,503)$ (13.0) (1.0) (8.0) (6.0) (1.0) (13.0)Grand Total Total Enterprise Funds ENFORCEMENT UNIT - Convert 1 Full Time PESII and 2 Full Time PESIs to 4 PT PESIs (30 hours week) (3 VACANT POSITIONS) Eliminate vacant Stormwater field Inspector position Total General Fund ENTERPRISE FUNDS Total Internal Services Funds INTERNAL SERVICE FUNDS The field support positions of Streets Supervisor and HEO II will be transferred from the Streets Division. Employees working daily restoring sidewalk squares due to new water services or water meter box replacements. Convert 1 SAN Architect filled position into a Senior Systems Administrator position. The current SAN environment is in steady state operations and there is a reduced need for this level of expertise. This Efficiency will allow us to provide for additional support of the server environment (physical and virtual servers) and also provide for additional after hours on call support. The field support positions of (1) Mason and (1) Mason Helper will be transferred from the Streets Division. Employees working daily restoring sidewalk squares due to new clean-outs or restoring clean-outs. Eliminate 1 Planning Technician position . Planning Technician duties can be obtained through professional services by an outside vendor Reduce Assistant Director Position to Operations Manager to provide oversight of field supervisors and workers, this would result in minimal impact to operations. Eliminate 2 Carpenter Positions. Analysis of maintenance work orders revealed 60% of carpenter hours worked could be performed by handyman or municipal service worker positions Reduce 1 Filled Service Supervisor Position - A/C Supervisor will assume duties of supervision of Building Services Technicians and Maintenance Supervisor will assume duties of Fountain Cleaning and Lincoln Road Mall repairs. Freeze Dev. Review: Planning Technician, Prepare GIS-based analysis and maps, graphics and design presentations, Compiles building and licensing data , etc. Replace one full time permit clerk position with 2 part-time Permit Clerk 1 positions to more effectively accommodate fluctuations in demand at the permit counter $4,459 Impact Cumulative Department Impact Full Time Part Time Proj. Vacant Filled Mgt & Admin Non Mgt. GENERAL FUND Police -$ -$ (44,771)$ (44,771)$ (1.0) 1.0 -$ Fire (Ocean Rescue) -$ -$ Parks & Recreation Eliminate 4 School Liaison Officers &1 School Liaison Supervisor (Total of 5 Contractual Services positions)-These positions serve as liaisons to the public elementary and middle schools on Miami Beach.Elimination will result in no officers being assigned to the public schools on Miami Beach which might lead to a greater dissatisfaction from the community $183,834 Criminal Division: Convert one Domestic Violence Coordinator/Victims Advocate (CID, Domestic Violence- Days) to Part-time. One of Two positions in department. Second position VOCA grant funded. 400 advocacy cases/year will not be handled. Criminal Division:Eliminate one (1)Public Safety Specialist assigned to CID/Administration but carry existing incumbent as an overage until vacant.The ability to review and enhance video from crime scenes may be diminished. $51,957 Eliminate Three (3) Lifeguard Towers (1 L2 and six L1'S) Note; The cost per lifeguard tower of $105,394 is the personnel cost only. For a toal cost of $316,184 EXHIBIT C - PROPOSED SERVICE ADJUSTMENTS Reduce the Overtime Budgets (1210,1220) by amending the minimum staffing ordinance to allow staffing levels to 42 personnel when there are more than 3 unscheduled absences at the start of the shift. Note:There are no reductions to the number of firefighters assigned to shifts. Projection based on 07/08, 08/09 and 09/10 OT costs for 43rd and 44th person and shift strength of 184 (the same as the last three FY). - Requires Bargaining - $800,000 Position Impacts Change the Ocean Rescue Division schedule to 5/8s on a year round schedule (reduces seasonal salaries) - Current hours of guarded beaches are: 4/10s February through October 0900-1900 (9am-7pm); 5/8s November through January 0900-1700 (9am-5pm) $450,000 Fire (65,839)$ (65,839)$ (1.0) (1.0) (1.0) (65,839)$ Close Youth Centers one day at each site on the weekends (general activities excluding parties). The Division has been opening both of the youth centers on Saturday and Sunday, free of charge to residents (Below Represents staff time). •SRYC Impact (closing on Saturdays) Eliminate one FILLED PT Rec Leader I $13,026 (+benefits) Operating Supplies = $0 Total Savings = $13,026 Daily Operational Costs Electric $50.96 (Monthly total $1,528.92 / 30 days) TOTAL DAILY COST: $523.76 / YEARLY COST: $27,235.52 • NSPYC Impact (closing on Sundays) Eliminate one FILLED PT Rec Leader I $13,026 (+benefits) Operating Supplies = $0 Total Savings = $13,026 FY 09 Weekend Stats for Building Only SRYC Bldg: 2,204 (Sat.) 1,963 (Sun.) NSPYC Bldg: 1,491 (Sat.) 71 (Sun.) NSPYC Gym: 1,516 (Sat.) 959 (Sun.) TOTAL DAILY STATS: 5,211 (Sat.) 2,993 (Sun.) Daily Operational Costs Electric $50.96 (Monthly total $1,528.92 / 30 days) TOTAL DAILY COST: $414.86 / YEARLY COST: $21,572.72 NOTE** 8,204 total entries for the weekend for 2 youth centers, both Saturday and Sunday for 51 weeks equates to a total of 1,683 equivalent open hours and average less than 5 people inside the centers, per hour. Impact: Classes currently scheduled on the weekends will be reallocated to another day/time slot in the week. Recreation Leaders' weekday duties that include building coverage and participant group leading will be absorbed by other Recreation Leaders located at the SRYC and NSPYC. NOTE** Ice Rink will remain open at the SRYC. FY 09 ENTRANCE FEES REVENUE: NSPYC: $4,785 and SRYC: $30 TOTAL EXPENSE SAVINGS = $26,052 (+benefits) Eliminate 1 FILLED Administrative Secretary position (+benefits) Impact: Elimination of this position will increase the duties of 3 other employees in the Administrative Offices at the Parks & Recreation Department. These employees will absorb the Administrative Secretary's duties to include payroll, Seniors Transportation coordinator, Golf and miscellaneous accounts payable data entry and other miscellaneous work which may greatly impact the timeliness of other work. Impact Cumulative Department Impact Full Time Part Time Proj. Vacant Filled Mgt & Admin Non Mgt. EXHIBIT C - PROPOSED SERVICE ADJUSTMENTS Position Impacts (65,839)$ (82,051)$ (147,890)$ (21,000)$ (168,890)$ City Manager $ (15,862) $ (15,862)(0.3) (0.3) (0.3) City Attorney (43,530)$ (43,530)$ (1.0) (1.0) (1.0) (9,663)$ (53,193)$ (0.3) 0.0 (0.3) 0.0 (0.3) Mayor and Commission $ (79,274)(79,274)$ (1.0) (1.0) (1.0) Eliminate part-time First Assistant City Attorney Position. This Attorney's duties (defending appellate cases, Civl Rights, and Constitutional Law) will be redistributed among remaining staff attorneys. Extend One Day Pool Schedule for 5 additional months for a Total of 9 months Currently the one pool day closures are from November - February covering September through May. Impact: Pool closures 5 additional months will reduce our Department's goal of increasing satisfaction with recreational programs. Patrons will have to travel to another pool on the day their regular pool is closed. Reduce receptionist through shared function with the City Attorney and Mayor and Commission - One-time estimated captial costs of $32,450 would need to be funded for reconfiguration of the reception areas, changing the City Attorney's door to glass, etc. - 1/3rd allocated to each of City Manager, City Attorney and Mayor and Commission offices Reduce 1 Secretary Reduce Summer Camp by one week and close all sites and only staff FT's, MSW's, Pool Guard's and Supervisors; Reduce the salaries of all Part-timers for one week. On average, we have 40% participation on the last week of summer. Impact: Approximately 400 children will not be able to attend the last week of mini- camp. OVERALL TOTAL SAVINGS = $29,946.00 (+benefits) Reduce receptionist through shared function with the City Attorney and Mayor and Commission - One-time estimated captial costs of $32,450 would need to be funded for reconfiguration of the reception areas, changing the City Attorney's door to glass, etc. - 1/3rd allocated to each of City Manager, City Attorney and Mayor and Commission offices Reduce the change-out of the hanging basket program from twice a year to once a year $ (16,527) $ (95,801)(0.3) 0.0 (0.3) 0.0 (0.3) 0.0 Citywide Reduce funding for various programs by 10%: (5,500)$ (5,500)$ (5,500)$ (11,000)$ (4,500)$ (15,500)$ (2,000)$ (17,500)$ (4,000)$ (21,500)$ (2,500)$ (24,000)$ (2,000)$ (26,000)$ (1,875)$ (27,875)$ (2,000)$ (29,875)$ (1,520)$ (31,395)$ (31,395)$ (31,395)$ (31,395)$ (31,395)$ (15,247)$ (46,642)$ (90,000)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ (136,642)$ Reduce receptionist through shared function with the City Attorney and Mayor and Commission - One-time estimated captial costs of $32,450 would need to be funded for reconfiguration of the reception areas, changing the City Attorney's door to glass, etc. - 1/3rd allocated to each of City Manager, City Attorney and Mayor and Commission offices Eliminate funding contribution but maintain funding for police officer supporting the PAL Sister Cities (FY2009/10: $15,200) Miami Beach Chamber/Visitor Ctr (FY 2009/10: $40,000) Orange Bowl (FY 2009/10: $18,750) Festival of the Arts (FY 2009/10: $55,000) Miami Design Preservation League (FY 2009/10: $25,000) July 4th Celebration non sponsored events (FY 2009/10: $45,000) Latin Chamber of Commerce (FY 2009/10: $20,000) Douglas Gardens (FY 2009/10: $21,660) Hot Meals-JVS (FY 2009/10: $46,930) July 4th Celebration non sponsored events (FY 2009/10: $45,000) Sister Cities (FY2009/10: $15,200) North Beach Development Corp. (FY 2009/10: $20,000) Jewish Museum (FY 2009/10: $55,000) S Beach/Grtr Miami Hisp. Chamber (FY 2009/10: $20,000) Latin Chamber of Commerce (FY 2009/10: $20,000) Stanley C. Myers (FY 2009/10: $21,660) Orange Bowl (FY 2009/10: $18,750) Contribution to Garden Center (FY 2009/10: $152,475) Reduce funding for various programs by an additional 10% for a total reduction of 20% to these organizations: Festival of the Arts (FY 2009/10: $55,000) Contribution to Garden Center (FY 2009/10: $152,475) S Beach/Grtr Miami Hisp. Chamber (FY 2009/10: $20,000) North Beach Development Corp. (FY 2009/10: $20,000) Miami Design Preservation League (FY 2009/10: $25,000) Boys and Girls Club (FY 2009/10: $16,606) Miami Beach Chamber/Visitor Ctr (FY 2009/10: $40,000) Jewish Museum (FY 2009/10: $55,000) (515,159)$ $ (515,159) (4.0)0.0 (1.0) (3.0) (4.0)0.0 Total Impact Cumulative Department Impact Full Time Part Time Proj. Vacant Filled Mgt & Admin Non Mgt. EXHIBIT C - PROPOSED SERVICE ADJUSTMENTS Position Impacts Information Technology $ (97,017) $ (97,017)(1.0) (1.0) (1.0) $ (99,643) $ (196,660)(1.0) (1.0) (1.0) (196,660)$ (196,660)$ (2.0) - - (2.0) (2.0) - (711,819)$ (711,819)$ (6.0) - (1.0) (5.0) (6.0) - Total 1 Senior Telecom Specialist filled position. This will mainly impact telecom system administration for the Automated Call Distribution (ACD) by having to rely upon the vendor to provide this service. (The estimated impact reflects the salary savings net of a contingency of $5,000 vendor support, as needed.) 1 Senior System Analyst filled position. This will impact special reporting and support of application interfaces by having to rely upon the vendor to provide this service as required. The City is purchasing systems with open architectures where the vendors are required to develop these interfaces. (The estimated impact reflects the salary savings net of a contingency of $15,000 for vendor support, as needed.) Presently, there are no outstanding required interfaces. Grand Total INTERNAL SERVICE FUNDS Annual Impact - Including Pension Annual Impact - Excluding Pension Year 1 Impact Assuming Full Imple- mentation by 3/31/11 Cumulative Impact Full Time Part Time GENERAL FUND $ (303,701) $ (184,088)(92,044)$ ($92,044) (20.0) 40.0 $ (310,612) $ (112,594)(56,297)$ ($148,341) (16.0) 16.0 $ (88,221) $ (53,769)(26,884)$ ($175,225) (6.0) 11.0 $ (54,105) $ (23,669) $ (11,835)($187,060) (5.0) $ (105,411) $ (69,683)(34,842)$ ($221,901) (7.0) (862,050)$ (443,803)$ (221,901)$ ($221,901)(54.0) 67.0 INTERNAL SERVICE FUNDS $ (435,233) $ (276,607)(138,304)$ ($360,205) (22.0) General Fund Estimated Impact from Internal Service Fund (82,982)$ Total General Fund Impact (304,883)$ ENTERPRISE FUNDS $ (1,031,565) $ (823,279)(411,640)$ (771,844)$ (33.0) (14.0) CITY CENTER - PROPERTY MANAGEMENT $ (93,908) $ (60,800) $ (30,400)(802,244)$ (4.0) GRANDTOTAL (2,422,756)$ (1,604,489)$ (802,244)$ (802,244)$ (113.0) 53.0 WHERE POSSIBLE, CONSIDER PRIVATIZING/OUTSOURCING, SCALING BACK FULL-TIME TO PART-TIME, ETC. SEE EXAMPLES BELOW: EXHIBIT D ANNUAL IMPACT OF CONCEPTUAL "PLAN B" REDUCTIONS - CWA ONLY Example: convert 20 out of 48 full-time lifeguards to part time, with no reduction in coverage Example: Convert staffing from25 full-time and 3 part-time code enforcement positions to 19 full-time and 14 part-time, providing more efficient coverage on weekends and nights Example: convert full-time pool guards to part time with no reduction in service level - reducing 16 FT guards to PT, bringing the PT year round and seasonal guards hours up, to provide the same service levels we are currently providing. The hours worked vary depending on the time of the year from 20 hours for everyone during the winter (Nov. – Feb.) when we are closed at one pool a day per week to 40 hours per guard in the summer (May – August). The other months (March, April and September, October) will vary as the weather changes and the pools demands increase or decrease. Example: Outsource Lincoln Road Property Management Example: Outsource Building Permit Clerks as recommended by the Watson Rice study (previously proposed in FY 2009/10 Budget) - Assume award by January 2011 and full implementation by March 2011 Total General Fund Example: Eliminate CWA positions in Property Management and replace with contract for approximately $1,000,000 to provide response as needed Example: Outsource Code Enforcement call center operations with privatized in-house support - Assume implementation of Call Center October 2010 and privatized in-house support March 2011 Example: Outsource Parking Enforcement. Estimated savings of $1,200,000 in recurring costs including pension - year 1 cost savings of $1,000,000 are net of pension savings GENERAL FUND Fire 190,000$ $ 190,000 190,000$ Parks and Recreation $ 2,925 $ 2,925 $ 22,264 $ 25,189 $ 83,550 $ 108,739 Current Rate New Rate Residents: Youth Memberships $50 $ 115 Adult Single $185 $ 250 Senior $150 $ 215 Family 2 adults/ 2 youth $ 400 $ 660 Non-Residents: Youth Memberships $75 $ 200 $250 Adult Single $375 $ 500 $550 Senior $250 $ 375 $425 Family 2 adults/ 2 youth $ 700 $ 1,200 $1,250 Pool Fees • Reinstate Adult Resident Pool Fee from free to $3.00 per admission; Resident Adults utilizing Miami Beach pools in 2009 was 52, 919 x $3.00= $158,757., with offset for resident membership rate • Increase Non-Resident Youth Pool Fee from $4.00 to $8.00, based on 2009 usage = 1,626 admissions = $13,008 – Represents an Increased revenue of $6,504. • Increase Non-Resident Adult Pool Fee from $6.00 to $10.00, based on 2009 usage = 3,940 admissions = $39,400 - Represents an increased revenue of $15,760. Fiscal Impact Increased Transport Fees Current Miami Beach fee schedule projected at $1,600,000 Basic Life Support (BLS) - $358.67 Advanced Life Suppot 1- (ALS1) $425.93 Advance Life Support 2 (ALS2) - $616.47 Proposed fees consistent with Miami Dade Fire fee schedule projected at $1,790,000 BLS- $500.00 ALS1- $600.00 ALS2- $800.00 Non-Resident Sibling Discount Revenue Increase Currently, the Parks and Recreation Department offers a sibling discount on non-resident participants enrolled in After School and Summer Day Camps. Based on the After School Spring 2009 Quarter the Department had 2 non-resident sibling participants enrolled in After School per quarter and zero in Summer Day Camps. The average saved for those 3 quarters equates to $2,925 yearly in increased revenue savings. $ 356,334 $ 57,595 $ 166,334 Increase Tennis Fees: increase court fees from $4 to $5 per hour for residents and from $8 to $9 $10 for non-residents. Increase membership fees as below - this assumes the City receives 100% of the increased revenues - requires new contract negotiation Activity Fee Modification • Maintain the current After School Registration Fee and increase the activity fee by $25 to make the fee $50 per quarter for the 3 After School program quarters. Average After School attendance in 2009 = 683 x $75.00 = $51,225. • Maintain the current Summer Camp Registration Fee and increase the activity fee by $25 to make the fee $75. Average Summer Camp attendance in 2009 = 1293 x $25.00 = $32,325 Grand Total = $83,550 EXHIBIT E - REVENUE ENHANCEMENTS Cumulative City Impact Cumulative Department Impact Public Works 177,000$ 177,000$ 177,000$ 533,334$ Code TBD TBD 533,334$ TCD 324,000$ 324,000$ 17,500$ 341,500$ 31,250$ 372,750$ 906,084$ City Clerk TBD 43,333$ 43,333$ 949,417$ Corporate Sponsorship and Advertising Items Under Development $50,000 $50,000 $50,000 $100,000 $10,000 $110,000 $48,000 $158,000 TBD TBD TBD TBD TBD TBD TBD TBD 1,107,417$ TOTAL POTENTIAL GENERAL FUND REVENUES Cumulative Department Impact Cumulative City Impact Establish wedding ceremony permit fees to approximately cover the cost of permitting ($100 $125 fee versus estimated cost of $123 per permit) Increase Special Master fee from $75 to $100 based on processing costs, current collections are approx. $130,000 per year Bus Shelter Advertising at 5th and Alton Garage Parking Valet Franchise Towing Rates - Study Underway Vacant Storefront Advertising - Limited to Business Areas Ocean Rescue and Pool Lifeguard Uniforms - anticipated to generate at least $100,000 in revenues per year in addition to $54,000 in cost avoidance from uniform purchases Commercial City Banner Program - This program is based on a CITY CODE AMENDMENT which would allow the City to contract with an advertising company to sell the City's light pole banner inventory. It would allow for four light pole banners on each pole with one being purely a commerical message and the other continuing to be used to promote events. This assumes that each pole would generate $300 per month in revenue. 30% of which would come back to the City. The esitmate is based on an average of 300 poles sold over a 12 month period, however the City could choose to use more poles and generate more revenue. Special Event Application Late Fee - Charge a late fee for applications submitted after 60 day deadline on public property and 30 day deadline on private property. Late application fee would be an additional $250 for review (no guaranteed approval). Estimate 40 late application fees in the first year for additional revenue of $10,000. For events with higher than 1,500 attendees, the fee is $500. Charge a late fee for all previously itemized permit requirements not being submitted two weeks before start of load in, with building and fire permits requiring minimum submission by this date, as is requirement of application. Late permit fee would be an additional $250. Estimate 30 late permit fees for additional revenue of $7,500. This will also aid in our ability to issue permits more efficiently and on time. For events with higher than 1,500 attendees, the fee is $500. Charge for Public Records when exceed 30 minutes Police and Fire Uniforms - anticipated to generate at least $100,000 in revenues per year in addition to $199,000 in cost avoidance from uniform purchases Official City Map - Based on a proposed partnership with Playground Maps for an "official City of Miami Beach map". The partnership includes cash plus the value of advertising for the City in the map Neighborhood Establishment Impact Fee - offset by enhancement of 3 additional Code Officers, provide opportunity for waiver for "good behavior" after year 1 - $300,000 impact - To be pursued with the industry Sponsorships on Cable TV - Study Underway Sidewalk Café Fees - Increase by $5 per sq ft from $15 per sq ft to $20 per sq ft over 2 years, plus a $25 fee per establishment to cover the cost of propane tank inspections, and adjust annually by CPI thereafter, but subject to FCWPC review Fiscal Impact Increase newsrack fees from $25 per unit to $50 per unit to cover processing and inspection costs $25000 PARKING REVENUES Potential Fee Increases $2,236,500 $2,236,500 $1,132,600 $3,369,100 $225,300 $3,594,400 $124,000 $3,718,400 $3,718,400 Advertising Items Under Development $180,000 $180,000 Parking Ticket Stubs $50,000 $230,000 Elevator Advertising - Parking Garages $80,000 $310,000 OTHER POTENTIAL REVENUES TO CONSIDER - REVENUE IMPACTS TO BE DETERMINED REHCD Fiscal Impact Cumulative Department Impact Cumulative City Impact TOTAL POTENTIAL PARKING REVENUES Parking Garage Arms - based on a total of 30 garage arms Increased Hours of Enforcement in South Beach - Expanded from 9am to midnight to 9am to 3am - Anticipated to generate $1,132,600 - offset by increased expenditures of $83,538 for 3 additional part-time employees Blue Tooth Advertising - allowing users to opt-in to receive messages and/or offers sent from transmitters along major roadways as well as City rights of way popular with visitors - and through which the City would receive revenues from the installation of transmitters Parking Meter Wrap Advertising Other Corporate Sponsorship and Advertising Items Amend Ordinance No. 2007-3553 to increase beachfront concession upland fees per unit from the current base rate of $16 per unit and max cap of $10,000 for hotels Increased hourly rate in South Beach - from $1.25 to $1.50 - with existing hours from 9am to midnight Increased Hourly rate (from $1.25 to $1.50) for the expanded hours in South Beach Increase Daily Hotel Hang Tag Rates from $6 per tag to $10 per tag FT PT GENERAL FUND Enhancements 185,314$ 185,314$ 9.0 70,000$ 255,314$ -$ 255,314$ 1.0 255,314$ 255,314$ 255,314$ 1.0 9.0 ENTERPRISE FUNDS POTENTIAL ENHANCEMENTS Sanitation 94,000$ 94,000$ Water 24,672$ 24,672$ 0.3 Sewer 24,672$ 24,672$ 0.3 Stormwater 24,672$ 24,672$ 0.4 176,376$ 176,376$ 0.0 83,538$ 259,914$ 3.0 427,930$ 427,930$ 1.0 3.0 683,244$ 683,244$ 2.0 12.0 Additional litter cans throughout Miami Beach (100) EXHIBIT F - ENHANCEMENTS Grand Total Total Create Engineering Manager position to oversee design process ($116,304) - offset by charges to capital projects Enhanced Police to address quality of life issues on weekends and spring break, including coolers, glass containers, alcohol on the beach, speeding etc. The squadof 3 officers and 1 seargeant will work primarily Friday through Monday with flex in their duties as seasons and demands change - includes 3 officers and 1 sergeant $598,014 Total Increased staffing required for expanded enforcement hours in South Beach from 12 midnight to 3 am Partial funding additional IT analyst position for Cityworks support, funded equally by Water, Sewer and Stormwater Partial funding additional IT analyst position for Cityworks support, funded equally by Water, Sewer and Stormwater Partial funding additional IT analyst position for Cityworks support, funded equally by Water, Sewer and Stormwater Parking Address quality of life issues in the South Pointe area on weekends, increasing enforcement in residential areas, and increasing enforcement and attendant at metered lots. Offset by an anticipated increase in revenues - potentially generating $448,000 in additional revenues Total Positions Add Code Detail to address quality of life issues on weekends, including beach litter during spring break, noise during special events, etc. Work to be performed by Part-Timers Assumes one code administrator per shift Staffing Levels:6 hours per day on each of 2 weekend days and an additional 30 hours per week during spring break 1 Code Administrators on overtime @ $50.48 per day 9 Part Time Code Officers @ $20 per hour Hire lobbyist to monitor and track County issues that impact Miami Beach and to represent the City's best interests at the County ($70,000) Cumulative Fund Impact Fiscal Impact ATTACHMENT G FY 2010/11 Proposed Citywide Workplan City of Miami Beach Strategic Planning Priorities VISION Cleaner and Safer; Beautiful and Vibrant; a Unique Urban and Historic Environment, a Mature, Stable residential Community with Well Improved Infrastructure; a Cultural, Entertainment and Tourism Capital and an International Center for Innovation and Business; while Maximizing Value to our Community for the Tax Dollars Paid ↓ Vision Linkage Key Intended Outcome FY 2010/11 Proposed Citywide Initiatives Increase visibility of Police • Maximize community contacts through multiple internal and external Police initiatives (i.e. Citizens Police Academy, Patrol activities, HOA meetings, etc.) to ensure optimal accountability, transparency and communication • Look into converting some of overtime dollars into additional police officers Maintain crime rates at or below national trends • Continue to develop system to provide timely information on types of crime by geographic segments of the community to allow more timely tactical deployment in response to “hot spots” • Work with IT Department to complete implementation of CAD/RMS technology solution for Records Management • Enhance lighting in business/commercial areas • Continue Neighborhood walk program to identify areas that may require lighting enhancements • Continue education outreach with nightclubs, bars, etc. on crime prevention strategies to reduce crimes against their patrons. Improve cleanliness of Miami Beach rights of way especially in business areas • Continue services to enhance cleanliness implemented in prior years related to the City Center RDA, South Pointe project area, Mid Beach and North Beach commercial districts, beaches, and alleyways • Continue to use contractors to supplement City staff to meet peak sanitation service requirements during major events • Continue public area cleanliness assessments and identification of action plans to address deficiencies • Continue to provide support in developing and implementing code enforcement-related action plans to address areas identified for improvement through cleanliness assessments • Continue to determine illegal dumping hotspots and focus enforcement patrols in the hotspot areas and coordinate with Police and Sanitation Dept. • Continue to coordinate with volunteer organizations for canal clean ups - Baynanza, Teen Job Corp, and Environmental Coalition of Miami Beach (ECOMB) enhancing outreach and volunteer recruitment to the local business community • Continue to monitor cleanliness assessment results and develop targeted action plans for improvement of cleanliness in parks; monitor contractors to ensure meeting required cleanliness activities • Continue “My Space” Program • Continue to review cleanliness assessment results to develop targeted action plans for improving cleanliness of parking garages and lots • Continue providing businesses outreach / information on the sidewalk sweeping/ maintenance regulations • Continue to coordinate with internal departments in efforts to continue dissemination of information (flyers, door hangers) regarding 1st Weekend of the Month/Neighborhood Pride program. Also, enhance coordination with Home Owner’s Associations (HOAs), volunteer organizations such as Hands on Miami Beach Day, etc. Cleaner / Safer Improve cleanliness of city beaches • Establish Quality of Life detail for weekends and spring break to address litter on the beach Vision Linkage Key Intended Outcome: FY 2010/11 Proposed Citywide Initiatives Ensure compliance with code within reasonable time frame • Continue to enhance methods/systems available for tracking response times and follow-up • Improve staff accountability, supervisor oversight of staff performance and case management • Continue to identify areas where process can be improved/streamlined • Explore implementing a special response team to address special events, natural disasters, etc • Revise policies and procedures manual • Review and revise fine schedules in Chapter 30 Ensure safety and appearance of building structures and sites Stabilize residential condominiums • Ensure solicitation of stimulus or federal dollars to stabilize housing • Pursue legislative changes to the condominium laws • Explore changes to the 40-year recertification ordinance with Miami-Dade County Maintain Miami Beach public areas & rights of way citywide • Maintain a Capital Investment Upkeep Account with a recurring source of funding to address routine recurring expenses based on a pre-defined plan needed to sustain non-facility capital improvement projects, including landscaping, up-lighting, pavers, etc. • Continue to implement citywide the reforestation plan by amending the current tree protection ordinance to fund/maintain City program • Maintain new Landscape projects for Capital Improvement Projects coming on line in FY 10//11: City Center Streetscape, Collins Park, 2300-4000 Indian Creek Bump Outs, 42nd Street, South Pointe Streetscape phases II and III, Lincoln Park and Indian Creek 6200-6900 medians and right a way. • Focus on South Pointe landscape maintenance, especially medians • Continue monitoring of parking lots by Parks Greenspace Management Protect historic building stock • Continue historic preservation initiatives currently underway, including designation of local historic districts (Morris Lapidus/Mid 20th Century District; West Avenue/Bay Road District, North Shore National Register District), sites and structures (Rod & Reel Club, North Beach Bandshell, UNIDAD Coral Rock House, City Monuments and Fountains) • Continue to ensure Public Works Department develops an ongoing maintenance plan for the City’s historic monuments. • Promote Miami-Dade County’s historic property tax abatement Maintain strong development management policies • Continue previous development management initiatives – (e.g. expanded Planning Board review of threshold projects in residential districts) • Continue to develop routine reporting mechanism to Commission through reports on the agenda or LTC on the status of various initiatives (consultant study, issues identified at growth management workshop, various ordinances, etc.) in order to keep topic of growth management current • Streamline the number of variances required to be processed by the Planning Department by amendments to the Land Development Code addressing topics of frequent routine variance applications. Increase satisfaction with family recreational activities • Continue programming for teens, adults and seniors • Continue senior transportation program funded by balance of Transportation Fund. • Enhance the Teen Club Program at North Shore Park Youth Center and at 21st Street Recreation Center • Develop plan for teen club athletics using Scott Rakow • Develop Tennis Program for Tennis Courts Planned for Par 3 • Continue arts and culture programming in the Parks, including family friendly cultural arts and events • Continue to provide and promote availability cultural activities and events, including family-friendly programming Improve the lives of elderly residents • Continue outreach to elderly residents • Continue promotion of SHARE Food Program and implement free distribution of Basic Packages to qualifying elder residents • Utilize Homeless Prevention and Rapid Re-housing funds to provide rent assistance to qualifying residents • Increase focus on coordination of and referrals to existing programs, including basic necessities, employment programs, transportation, and recreation programs Beautiful and Vibrant, Mature Stable Residential Community, Urban and Historic Environment Enhance learning opportunities for youth • Continue educational opportunities for school aged youth through the Education Compact • Ensure IB required training is complete for 100% of teachers in CMB schools • Continue youth access to City supported programs through enhanced communication efforts, etc... • Enhance youth services and programming through grant funds • Continue to provide the Youth Empowerment Network at Fienberg Fisher k-8 Center and Biscayne Elementary • Expand Success University at Miami Beach Senior High School • Pursue additional Federal Justice appropriation for After School program and Arts for learning Vision Linkage Key Intended Outcome FY 2010/11 Proposed Citywide Initiatives Reduce the number of homeless • Continue education and outreach to inform the public of available resources and services provided by the City to address homelessness; ensure follow-up information is provided to businesses and residents that have homeless-related complaints. • Continue to coordinate with internal and external partners to increase engagement and placement of homeless persons and enable enforcement of Quality of Life issues (i.e. habitual offenders, trespassing, etc.) • Continue with independent, proactive outreach, including flexible hours and days to address the chronic homeless • Continue collaborative task force with Police and Sanitation to address homeless encampments • Continue with Project Home Shore campaign targeting members of the faith community with information and resources to empower them as outreach resources to the homeless, and secure non-governmental resources for homeless services. • Continue to pursue methods to address mental health issues among the homeless and the chronically homeless, including coordinated outreach with Citrus Health targeting chronic homeless with mental health issues to enable more contacts using only one staff member, and accessing Trust-funded treatment programs and beds • Continue to pursue additional resources to provide specialized services for the chronic mentally ill homeless Increase access to workforce or affordable housing • Continue to maximize retention of existing affordable housing stock, especially among the elderly • Pursue grants that promote access to and retention of affordable housing, including for elderly • Pursue Federal HUD appropriations for the City Center housing initiative • Explore transit opportunities with Miami-Dade Transit to connect affordable housing opportunities with workplace destinations • Develop marketing plan • Advertise/Provide media information regarding major accomplishments related to affordable housing and opportunities funded by the City • Continue prioritizing funding for housing counseling for first-time homebuyers participating in the scattered sites homebuyer’s assistance program with American Dream & CDBG funding. Beautiful and Vibrant, Mature Stable Residential Community, Urban and Historic Environment (Continued) Promote and celebrate our City’s diversity • Continue to promote events that celebrate our City’s diversity, including Hispanic Heritage, Jewish History month, Black History month, Gay Pride, Disabled Community Awareness Day, etc Vision Linkage Key Intended Outcome: FY 2010/11 Proposed Citywide Initiatives Maximize Miami Beach as a Destination Brand • Continue out-of-market marketing plan to promote Miami Beach destination brand • Continue to target key events for slow periods and lesser used areas • Continue to maximize potential use of Performing Arts Theaters in the City of Miami Beach Improve Convention Center facility • Develop a strategic plan for the Convention Center (master plan) • Continue to maximize utilization and upkeep of Miami Beach Convention Center Cultural, Entertainment and Tourism Capital International Center for Innovation in Culture, Recreation and Business Diversify business base in Miami Beach • Continue to provide information on market opportunities to interested businesses • Work with State of Florida DCA on implementation of the Energy Economic Zone Pilot Program • Identify potential Incentives that may facilitate industry diversification • Work with workforce agencies to identify prospective entrepreneurs and small business owners • Maintain, grow and disseminate a database of specified and targeted economic & market information • Identify and assist new economic and entrepreneurial opportunities in Miami Beach • Identify barriers to growth for the City’s businesses that are in non-economic base industries • Continue offering the Miami Beach CARES Business Academy for existing and potential businesses to assist them in understanding the City’s processes Vision Linkage Key Intended Outcome: FY 2010/11 Proposed Citywide Initiatives Well Improved Infrastructure Enhance mobility throughout the City • Implement comprehensive bike paths/recreation corridors/ and walkway plan for Miami Beach • Continue to implement selective enforcement during shift overlaps and use of Motor Squad high accident locations within the city in order to reduce accidents and increase traffic flow. • Continue coordinated approach between Building Department, Parking and Police to enhance traffic management during/ around major construction projects, as well as Parking and Police collaboration through CLEAR Task force (Clearing of Lanes, Easements, Alleyways, & ROW) to improve traffic congestion caused by illegal loading and/or double parking in major thoroughfares throughout the City • Continue Parking and Police collaboration through CLEAR Task Force (Clearing of Lanes, Easements, Alleyways, & ROW), an internal systematic approach to improving traffic congestion caused by illegal loading and/or double parking in major thoroughfares throughout the City. • Maintain coordinated approach between Public Works, CIP and Police to enhance traffic management during/around major construction projects. • Pursue project authorization in the new federal Surface Transportation Authorization bill • Work with housing authority on 17th site Vision Linkage Key Intended Outcome: FY 2010/11 Proposed Citywide Initiatives Improve Parking Availability • Continue to develop and implement marketing plan for parking and traffic, including identification of areas of underutilized capacity through measurement of garage capacity and in support of implementation of Citywide wayfinding signage plan • Continue to work with the Office of Communications to further develop marketing plan. • Continue to pursue implementation of Walker Parking Study recommendations for development sites in the North Beach, Cultural Campus areas, South Pointe Park, and other opportunities • Continue to pursue joint venture opportunities in North Beach • Continue to survey parcels available for sale with Asset Management • Continue to pursue joint venture opportunities: ▪ North Beach Town Center Plan ▪ North Parking Facility ▪ Gansevoort Joint venture opportunity ▪ Collins Park parking garage development agreement/land swap • Continue to evaluate opportunities to acquire land where possible for additional parking • Continue to work to enhance coordination with public and private development projects • Add 53 parking spaces during FY08/09 and 88 spaces in FY09/10 as a result of projects in 69th Street and Harding Avenue, 41st Street and Royal Palm Avenue, and Ocean Dr. and 1st Street. Ensure value and timely delivery of quality capital projects • Continue to streamline capital program management • Continue implementation of FY05 initiatives to expedite: review of construction, documents, legal issues, invoice processing, and field inspections • Continue to work with departments (Public Works, Planning, Parks, etc.) to ensure expedited and timely reviews and return of comments • Continue to implement Best-Value Procurement for planning, design, and construction phase, where contractors and consultants are selected for traditional, design-build, and construction-manager-at-risk projects utilizing Best Value criteria, that is based on past performance, project management personnel experience, etc. • Continue tracking invoices from receipt date to payment date • Continue expanded public outreach and information regarding capital projects status, etc. • Continue to maintain a capital reserve fund to address unforeseen needs in approved capital projects • Pursue annual funding contribution as a continuous re-investment in City infrastructure through Pay-as-you-go, quality of life funds, grants, or other funding sources • Add New Records Supervisor position Ensure well- maintained facilities • Continue to maintain a capital replacement renewal and reserve with a dedicated source of funding for general fund facilities and to identify and implement required renewal and replacement projects as scheduled • Evaluate available funding from Renewal and Replacement fund balance • Complete 40-year recertification for City facilities Maintain City’s infrastructure • Continue to allocate resources for sidewalk, pavement, and roadway improvements in areas not scheduled or not scheduled in the short term to be addressed by CIP • Energy conservation retrofit to City Center lights • Continue to expedite CIP projects and process for roads, sidewalks and curbing citywide • Pursue Federal Infrastructure appropriations • Track results of coupons sampling and repairs using GIS (including a policy to take coupon sample in conjunction with regular repairs) • Ensure that all underground utility pre and post – construction documentation, such as material samples, pictures, videos, special reports, and/or studies are filed in GIS system • Evaluate an application similar to Boston IPhone App to take picture of an infrastructure problem and send to work order system • Developing and promotion of Miami Beach in the next 20 years as the “most mobility friendly” city, “most aging population friendly: city, etc. Improve Storm drainage citywide • Update Stormwater Master Plan Well Improved Infrastructure (Continued) Preserve our beaches • Continue federal lobbying to secure funding and sources of sand • Pursue federal beach renourishment funding • Monitor Beachfront Concessionaires permitted through a field monitoring schedule Vision Linkage Key Intended Outcome FY 2010/11 Proposed Citywide Initiatives Maximize efficient delivery of services • Continue to maximize Byron Carlyle, Colony, and other potential venues in the City including privatization where appropriate • Expand call center to cover citywide inquiries • Continue to expand City services on-line through E-government technologies • Procurement: Continue to pursue a full compliance status with the Living Wage and Equal Benefits Ordinance. • Procurement: Continue to pursue a 100% certified purchasing eligible staff • Procurement: Create tracking feedback evaluation for all projects from Project Manager (and Project Owner if different from Project Manager) - annual evaluation or evaluation at end of project if less than one year • Develop and implement an Evaluation Committee member questionnaire process • Develop process for contractor performance tracking • Continue to implement process to ensure vehicles & equipment are brought to fleet timely, to ensure PM schedules are met. Review and enhance existing process. • Implement WiFi enabled parking options • Continue to evaluate cost of in-house versus outside printing Maximizing Value for Taxpayer Dollar Control costs of payroll including salary and fringes/ Minimize Taxes/ Ensure expenditure trends are sustainable over the long term • Renegotiate all 5 labor contracts where possible to reduce recurring costs, including ensuring that City and employees participate equitably in funding increasing benefit costs • Implement consultant recommendations for the City’s classification and compensation system • Pursue pension reform across all employee groups in the city • Provide more comprehensive explanation of medical/dental benefits & coverage available, and maintain premium increases at a minimum. • Enhance City’s Wellness Programs to provide relevant health to employees. • Develop accident review committee citywide similar to Police (include Risk and Police) • Develop accident prevention training program • Continue implementation of Accident Awareness and Prevention program with HR, Risk and Police by initiating a process to monitor and verify licensing of driver & operators. • Develop General fund financial trends through FY09 • Prepare annual update regarding expenditure versus revenue-5 year projection • Develop annual City Center financial plan • Develop annual South Pointe financial plan • Implement recommendations of financial audit • Improve City Bill process Vision Linkage Key Intended Outcome: FY 2010/11 Proposed Citywide Initiatives Maximizing Value for Taxpayer Dollar (Continued) Increase community satisfaction with City government • Continue FY2006/07 initiative to track reasons for building and fire rejections trough implementation of electronic plan review • Provide Technical Training program for Plans Examiners and Inspection staff in their discipline • Improve the dispute resolution process • Replace permitting system • Implement vehicle tracking system • Produce manual of policies and procedures for Building Department • Customer service training • Eliminate the number of past due elevator inspections • Evaluate Community Rating System ratings • Review and revise all forms • TCO/PCO guidelines/streamline process • Distribute elevator billing over time • Information brochures for customers • Signage throughout the department • Continue to fund field inspector to ensure compliance with Development Review Board conditions and to identify and resolve problems at the beginning of projects, instead of at the end of the projects • Implement LaserFiche digitizing of records • Increase public notice and access to information by enabling more internet access to documents, extending notice timeframes, and developing reporting mechanisms and outreach strategies. • Attempt to resolve issues at pre-determination hearing • Continue to develop process to track turnaround time for liens • Continue to work with OBPI to develop a mechanism for surveying customer satisfaction at Customer Service/Business Tax window. • Coordinate with Building to expand call center for outsourcing of calls related to utility billings, lien letters, Certificate of Use etc. • On-line lottery applications • Prepare quarterly financial statements • Implementation of GASB 54 ‘Fund balance’ • Evaluate outsource billing based on an electronic feed - $20K to $30K per year • Continue to promote emailed bills • Pursue use of pay cards for employees without automated deposits • Reduction of credit card transaction charges - savings of approx $300-400K • Continue to improve logistics management of events to minimize disruptions, traffic, debris and noise. • Continue to ensure resident benefits from permitted special events • Continue to implement online training to deliver safety, Human Resources, and other training to employees. This self-paced training can enhance Public Safety by improving and maintaining employee knowledge, enhancing customer service and safety, and allowing training without placing units out of service. Enhance training by providing additional backfill for overtime. • Continue to analyze layout of lifeguard stands and locations to evaluate needs based on utilization rates, time of day, etc, as well as explore alternate schedules, etc • Continue with night inspection program • Continue administering Community Emergency Response Team (CERT) program which trains neighborhood teams to function as first responders to large scale disasters and to help each other and to augment emergency responders. • Continue Service Shopper initiative, provide feedback/reports and training to departments with an average service shopper score of less than 4, develop action plans and train volunteers • Coordinate annual training for contract employees in service, standards, city strategic plan, and their essential piece • Conduct annual training of non-City volunteers for Service Shopper • Conduct annual Leadership Staff Retreat • Conduct Management Team Retreats • Conduct annual OBPI retreat • Facilitate departments to improve measurement methodologies for public appearance-ROW/Parks Landscaping and garages • Provide staff with additional customer service training • Prepare Environmental Scan update • Coordinate cleanliness assessments, conduct quarterly meetings, create summary reports on results, train city employees and resident volunteers on doing assessments and assist with quarterly LTC • Continue posting requirements and tracking employee compliance with training plan • Conduct training needs and satisfaction survey • Conduct annual facilitation training • Conduct annual supervisory series • Develop on-line training modules for appropriate required and optional training modules • Facilitate employee academy twice a year • Implement Company Store • Implement E-based learning program • Continue to pursue Green initiatives: Enhance the environmental sustainability of the community ƒ Fuel-efficient vehicles ƒ Energy efficient consultant recommendations ƒ Ramping up green initiatives” e.g. greening the taxi industry – will require working with the County ƒ Work with CIP to do as an add/alternate for remaining ROW projects that incorporates more energy efficient street lighting ƒ Pursue grant funding to fund energy efficient lighting Enhance external and internal communications from and within the City • Continue implementation of WebQA as a replacement for Better Place software, and promote use of this program by residents and businesses • Continue to provide multi-session academies in English and Spanish to residents and businesses to enhance understanding of MB government • Continue to publish MB magazine quarterly to all Miami Beach addresses. • Coordinate Budget Outreach for FY10/11 Budget • Continue to produce Spanish-language news • Partner with the North Beach commercial real estate industry and other interests to create a commercial site directory • Expand communication efforts on CIP Program progress using various delivery methods • Continue communication and marketing to targeted residents/groups for upcoming events Expand e- government • Complete implementation of a new infrastructure management software application for Water, Sewer & Stormwater; implement Geographic Information System (GIS) application • Enhance intuitiveness of website • Implement FY2009/10 online priorities as approved by the IT Steering Committee. Some of these priorities are as follows: ▪ Calendar of Events ▪ Online Surveys ▪ Artist/Vendor and Street Performer and Non-Profit Vendor Lottery Application ▪ Online Applications for Recreation ▪ Emergency Information Center ▪ Fast Track Permitting System • Continue to work with IT to develop Parking website with the ability to perform business transactions online Supporting Outcomes to Sustainability of Vision Improve process through information technology • Continue to pursue GIS deployment citywide • Information Technology: Continue to maximize IT/digital connectivity through the implementation of Citywide WiFi initiative. • Pursue on-line re-fill and sales • Continue to work with IT to create a data base that is able to link information within the Dept and export to EDEN to eliminate duplicate data entry by both the Parking & Finance Dept • Review FY10/11 Information and Communication Technology business Case proposals • Summarize and track contract development Vision Linkage Key Intended Outcome: FY 2010/11 Proposed Citywide Initiatives Vision Linkage Key Intended Outcome: FY 2010/11 Proposed Citywide Initiatives Improve the City’s overall financial health and maintain overall bond rating • Continue to address funding shortfalls in the reserve for claims against the risk management fund • Continue to address liability for non-pension post-retirement benefits (health, dental, and life insurance for retirees) • Implement corporate sponsorship program. • Continue to establish advertising program goals and objectives to increase general market awareness of City of Miami Beach and promote specific departments • Monitor effect of sick sell-back program implemented in FY 2007/08 • Pursue pilot implementation of weekend staffing schedule with additional staffing to reduce OT • Evaluate “no-cash acceptance policy” for outlying locations • Implement study of eligible Resort Tax/CDT expenses • Hold annual grants workshops • Review proposed capital budget/CIP for FY2011/2012 to ensure consistency with grants appropriated • Conduct citywide grants training workshop • Create Annual Audit Plan and present to Commission in Nov 2010 • Work with State Attorney/Dade Chiefs to implement initiatives to reduce Court Overtime: e.g. revamp how and when a Police • Implement the 2010 State Legislative AgendaEconomic Development: Evaluate business improvement districts • Implement process to continuous verify stormwater billings and review for missed ERUs • Pursue alternative revenue resources related to advertising or sponsorship opportunities (develop a product to market for profit, bus ads on local, advertising on empty storefronts, sponsorship on Cable TV, etc.) • Review collection of code fines • Explore Intellectual rights for City produced events and City sponsored events • Include electric car charging stations in parking garages • Explore Kiosk machines that also sell merchandise such as gift cards • Review valet rates • Review towing rates • Respond to cities desiring police services from Miami Beach • Explore Kiosk machines that also sell merchandise such as gift cards Promote transparency of City operations • Maximize use of website for transparency Supporting Outcomes to Sustainability of Vision (Continued) Strengthen Internal controls