R7A2-Adopt Final Budgets For FY 2012-13COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting final budgets fo
General, G.O. Debt Service, RDA Ad Valorem Taxes, Ente lise, and Internal Service Funds for Fiscal Year 2012/13
¥ • ... ... ..... -.
Minimize taxes; Control Costs of payroll including salary and fringes; Ensure expenditure trends are sustainable over
the long term; Improve the City's overall financial health and maintain overall bond rating; Increase community
satisfaction with city services
Supporting Data (Surveys, Environmental Scan, etc.): The 2012 results continue to show 89% of residents
reported their overall quality of life within the City as either 'excellent" or "good". Businesses continue to rate the City of
Miami Beach as 'one of the best' or an 'above average place' to run a business. The survey also identified areas
where the City could improve. Foremost among these were storm drainage, traffic, homelessness, parking, and
management of special events, are areas that received comparatively low ratings in the residential survey. Business
owners rated storm drainage, public transportation, parking, experience with the building department, and traffic low
comparatively low.
e Mayor and City Commission adopt the attached resolution establishing the final budgets above?
Item Summary/Recommendation:
Based on direction provided by the Finance and Citywide Projects Committee meetings in July and August 2012 and
subsequent refinements at the first budget hearing, the approximately $2.9 million shortfall between Current Service
Level revenues and expenditures has been fully addressed through employee givebacks of $3 million, although this
only partially offsets the additional employee health and pension cost of $7.3 million in the General Fund.
In addition, the total cost of additions and service enhancements in the General Fund ($3.7 million and $0.1 million in
charge backs from Internal Service Funds), as well as the decrease in the Building Development process fees and
the additional decrease in the tentative millage (0. 7 mills) tentatively adopted at the first budget hearing, has been
more than offset by almost $1 million in efficiencies, an increase in the resort tax transfer to the General Fund by $4
million for tourism eligible expenditures, and small revenue enhancements. The resulting surplus of $0.8 million is
recommended to be set aside for FY 2012/13 to partially offset the loss ofthe one-time pension credit ($2.2 million in
the General Fund). The resulting total Proposed General Fund Operating Budget for FY 2012/13 is$ $256,280,000,
which is $11.9 million or 4.9 percent more than the FY 2012/12 Adopted Budget of $244,336,7 40.
Historically, the General Fund budget has increased between 6 percent and 8 percent annually, primarily due to
increases in salary and benefit costs. The $11.9 million increase for FY2012/13 is primarily personnel cost increases
(although offset by employee givebacks), increased internal services charges backs including Police liability claims
and increases in debt service for replacement of vehicles and equipment, as well as proposed service
enhancements.
Advisory Board Recommendation:
Financial Information:
Source of
Funds: 1
Account
General Fund Operating
G.O. Debt Service
RDA Funds-Ad Valorem Taxes
OBPI ternal Service Funds
----~~------------------------------~ Financial Impact Summary: This budget represents more than $70 million in predominantly recurring reductions
over the last 6 years, and the General Fund Operating budget is $18.6 million (8 percent) more than in FY2006/07, in
spite of 15 percent growth in the Consumer Price Index (CPI} in a similar period, and a over 126 percent growth in
ension costs, and man new facilities and ro·ects comin on line.
City Clerk's Office Legislative Tracking:
-Offs:
Department Director Assistant City ager
MIAMI BEACH
125
AGENDA ITEM R 7 A 2.
DATE 9-27 -/).
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Co n
FROM: Kathie G. Brooks, Interim City Manager
DATE: September 27, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING FINAL BUDGETS
FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD VALOREM
TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR
FISCAL YEAR 2012/13
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution
which establishes final budgets for the General, G.O. Debt Service, RDA Ad Valorem
Taxes, Enterprise, and Internal Service Funds for Fiscal Year (FY) 2012/13.
PROCEDURE
As outlined in the companion General Operating Millage Agenda Item, Section 200.065,
Florida Statutes specifies the manner in which budgets are adopted. First, the final millage
rate for both the general operating and debt service is adopted, then immediately thereafter,
final budgets by fund are adopted. The attached Resolution adopting final budgets for the
General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal Service
Funds for FY 2012/13 is therefore presented to you at this time for adoption.
CHANGES TO PROPOSED BUDGET AT FIRST BUDGET HEARING
• The Operating budget millage was decreased from 6.1122 to 6.0909, resulting in a
$400,000 reduction in property tax revenue and reduced revenues to the General
fund of $400,000
• Employee givebacks of $3 million in the General Fund were tentatively approved to
partially offset $7.3 million of pension and health cost increases in the General Fund
• The millage reduction from 6.1122 to 6.0909 resulted in a reduction in the transfer to
the Redevelopment Agency from $17,385,000 to $17,318,000
• Based on changes in Building Development Process fees adopted on first reading
on September 12, 2012, FY 2012/13 General Fund revenues were reduced by
$295,000
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Adopting Final Budgets
September 27, 2012
Page 2
BACKGROUND
Over the last several years, the City of Miami Beach has adopted budgets that provided tax
and fee relief, while at the same time providing improved services that address needs and
priorities identified by the community (primarily in public safety, cleanliness, landscaping and
beautification, recreation and cultural arts programming, renewal and replacement funding
for our facilities, and building/development functions); and providing structural changes that
enhanced capital funding and reserves. Exhibits A through E attached to my FY 2012/13
Proposed Workplan and Budget message (Attachment 1) provide details of the
efficiencies/reorganizations, service reductions, revenue enhancements, and service
enhancements considered as part of the development of the proposed FY 2012/13 Work
Plan and Budget. As a result of these initiatives, the proposed budget continues 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 performance arts
and movies in the parks, free access to pools and youth centers, reduced fee recreation
programming, enhanced maintenance of our newly renovated facilities, etc.-the services
that our residents and businesses told us yet again are important to them during the 2012
Community Satisfaction Survey.
Between FY 2007/08 and FY 2011/12, the General Fund absorbed more than $41 million in
reductions (almost 17 percent of the $244 million FY 2011/12 General Fund budget) and
reductions of approximately $49 million and 269 positions across all funds. Combined with
more than $20 million in employee "givebacks" between FY 2009/10 and FY 2011/12, this
represents almost $69 million In combined ~<givebacks" and reductions over 6 vears. The FY
2012113 budget adds $1 million in efficiency reductions and anticipates $3 million In
additional employee givebacks in the General Fund.
FY 2012/13 Budget Development Process
As in past years, the Proposed Work Plan and Budget was developed through an intensive
review process with our City Commission. Preliminary budget information was provided to
the Commission at a Committee of the Whole meeting on July 6, 2012, where budget
strategies and priorities were established. Additional budget briefings were held with the
Finance and Citywide Projects Committee (FCWPC) on July 9, July 10, July 25, and August
22, 2012, including a discussion of capital project priorities, projected General Fund
revenues and expenditures, proposed efficiencies, impacts of service level alternatives,
potential revenue enhancements, and potential service enhancements.
At the time of adoption of the preliminary millage in July, it was estimated that the City's
General Fund had a gap of $4.4 million, an improved position from the estimated gap of $5.4
million at the same time in the development of the FY 2011/12 budget. Between setting the
preliminary millage in July and finalizing the Proposed Work Plan and Budget, as we
committed to do, we refined our projections. Our revenues, in particular, tend to have
greater fluctuations than expenditures, and we were conservative early in the process and
refined these projections over the summer. Changes since July include increased revenue
estimates (primarily building development process fees, and rents and leases, offset by
decreased interest earnings). As a result, the projected Current Service Level (CSL) gap
was reduced to $3.3 million as discussed at the August 22 , 2012 meeting.
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Adopting Final Budgets
September 27, 2012
Page 3
At the August 22, 2012 FCWPC meeting, an approach to balance the General Fund budget
was discussed. This approach included $3 million in employee givebacks; $932,000 in
efficiencies; bringing in an additional $4 million in Resort Tax revenues to the General Fund
to offset tourism-eligible expenditures, and modest increases in revenues. These were
offset by $.2 million in additions for living wage, operating costs associated with bringing
capital projects on line; and $3.5 million for various service enhancements-the majority of
which was related to Police service enhancements ($0.9 million) and Building Service
enhancements ($0. 7 million due to increased demand and offset by increased revenue); and
a transfer of $1.4 million to fund capital projects.
Based on the final valuation for the Fire and Police pension, the City's annual contribution for
FY 2012/13 was reduced by approximately $400,000 after the August 25, 2012 FCWPC
meeting, as compared to the preliminary estimate initially received; resulting in a reduction of
the pension allocation to Fire and Police. As a result, the Commission directed the
administration at the first public hearing to return this savings to the taxpayers with a millage
reduction rather than reduce the employee givebacks. This results in a millage reduction of
0.0213 mills from the proposed millage rate, from 6.1122 to 6.0909.
Approaches To Balance The General Fund Budget
Based on direction provided at the FCWPC meetings in July and August 2012, and
subsequent refinements at the first budget hearing, the approximately $2.9 million shortfall
between Current Service Level revenues and expenditures has been fully addressed
through employee givebacks of $3 million, although this only partially offsets the additional
employee health and pension cost of $7.3 million in the General Fund.
In addition, the total cost of additions and service enhancements in the General Fund ($3.7
million and $0.1 million in charge backs from Internal Service Funds), as well as the
decrease in the Building Development Process fees and the additional decrease in the
tentative millage ($0.7 million combined) adopted at the first budget hearing, has been more
than offset by almost $1 million in efficiencies, an increase in the resort tax transfer to the
General Fund by $4 million for tourism eligible expenditures, and small revenue
enhancements. The resulting surplus of $0.8 million is recommended to be set aside for FY
2013/14 to partially offset the loss of the one-time pension credit ($2.2 million in the General
Fund). The resulting total Proposed General Fund Operating Budget for FY 2012/13 is $
$256,280,000, which is $11.9 million or 4.9 percent more than the FY 2011/12 Adopted
Budget of $244,336,7 40.
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Adopting Final Budgets
September 27, 2012
Page 4
Preliminary Current Service Level (CSL )Budget
... Expenditures
Net CSL Gap
! $252,712,000
$255,573,000
" L\\\~%R\:;:U~~~::~~,,~
($7.2 million in pension increases across all funds and $5.7 million in the General Fund.
$1.9 million health increase Citywide and $1.6 million in the General Fund, including
the $0.86 million impact of the expiration of the five percent of salaries giveback
towards hea.lth for Police and Fire)
Living Wage FY 2012/13 Increase
Landscape Maintenance Impact of New Capital Projects
Minimal Impact Reductions/Efficiencies
Service Reductions
Other Additions and Enhancements
Additional Building Positions in Response to Increased Demand
Enhancements for Police Services
Enhancements for Internal Affairs
Enhancements for Outside Audits
Other Service Enhancements
Transfer to Pay As You Go
General Fund Impacts of Change to Health Insurance Start Date for New Employees
General Fund Impact of Internal Service Fund Enhancements
Resort Tax -transfer to GF
Additional CIP Chargeback Revenues
Revenue Enhancements
Reduction of Millage by .0213 (to reduce surplus)
Reduction of Building Development Permit Fees
(3,000,000)
62,000
81,000
(932,000
702,000
947,000
50,000
150,000
306,000
1,400,000
(24,000)
134,000
4,000,000
Historically, the General Fund budget has increased between 6 percent and 8 percent
annually, primarily due to increases in salary and benefit costs. The $11.9 million increase
for FY2012/13 is primarily personnel cost increases (although offset by employee
givebacks), increased internal services charges backs including Police liability claims and
increases in debt service for replacement of vehicles and equipment, as well as proposed
service enhancements.
The FY 2012/13 proposed General Fund Budget is about $20 million (8 percent) more than
the FY 2006/07 budget, despite pension contribution increases of $29 million during the
129
Adopting Final Budgets
September 27, 2012
Page 5
same period. Inflation from October, 2006 through June, 2012, a similar period, was
approximately 15 percent. This reflects a decrease across all other expenditures during that
time, and even offsetting increases in health and salaries, a growing concern to us, as there
is and should be a limit to the proportion of budget allocated to these costs. At this point,
annual contributions to the City's two pension plans alone represent more than $52 million
(20 percent) of the total General Fund budget. As a result, pension reform continues to be a
high priority for the City, with recommendations from the Budget Advisory Committee
presented to the Commission on August 29, 2012. This timing allows negotiated pension
reform to be incorporated into the current set of contract negotiations with the City's five
unions.
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 2012/13
Operating Budget. The City's 11 percent reserve is projected to be fully funded in FY
2011/12 from reserve levels as of September 30, 2011, at $26.7 million, in addition to
funding $11.9 million or 4.9 percent towards the additional6 percent contingency goal, for a
total fund balance reserve of almost $38.6 million, if there are no additional changes in fund
balance, and no additional transfers made.
In addition to reductions and employee givebacks, today's General Fund Operating Budget
also reflects greater diversification of revenues since FY 2006/07. 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 $37 million; approximately 15 percent of the Proposed
General Fund FY 2012/13 Budget. a large part of these alternative sources are attributed to,
property tax revenues represent less than half (45 percent) of the total funding for the
General Fund budget, as compared to 59 percent in FY 2006/07, a significant reduction
over the past several years.
Together, salaries and fringe benefits represent 73 percent of Current Service Level (CSL)
costs, with salaries and pension representing approximately 67 percent of the total current
service level (CSL) budget of $255.5 million, (including the impacts of merit/steps increases,
pension contributions, etc.)
OTHER OPPORTUNITIES TO REDUCE THE FY 2012/13 GENERAL FUND BUDGET
There has been discussion of additional reductions in the millage rate. It is important to
note that the recommendations regarding the City's operating millage was made after a
careful review of expenditures.
The $0.8 million is the net surplus available after the recommended employee givebacks,
efficiencies, additions and enhancements, and revenue increased incorporated into the FY
2012/13 General Fund proposed operating budget. The equivalent millage for $0.8 million is
0.0443 which could be reduced for FY 2012/13. However given the loss of the one time
pension credit carried forward from FY 2011/12 to FY 2012/13, it is recommended that the
surplus be set aside to help offset this loss in FY 2013/14.
In addition, the millage could be significantly further reduced in lieu of providing $2.85 million
in General Fund enhancements (excluding Building enhancements which are offset by
130
Adopting Final Budgets
September 27, 2012
Page6
increased revenue). This is equivalent to a reduction of 0.1520 mills. However, I believe it
will provide greater value to our community to provide a return for the increased values by
increasing our service levels. These enhancements include:
• Enhancements to Police services, including 6 police officers for additional Patrol
along Washington Avenue, 4 police officers for a crime suppression team, 2 officers
for along the beaches in North Beach, additional overtime for homeless outreach
and additional staffing for our records unit and detention center
• Enhanced internal controls in Police Internal Affairs and through a regular outside
audit of high risk areas
• Additional staff to help manage leases and rental contracts and monitor special
events and concessions; as well as providing for grants software and equipment
needs at the Colony Theatre
• $1.4 million provides a transfer for funding Pay-as-You Go funding for capital
projects
ANALYSIS OF VACANT POSITIONS
At the request of the FCWPC on August 22, 2012, Attachment 2 provides a listing of vacant
positions distributed via a Letter to the Commission on July 31, 2012. At that time, there
were a total of 44 vacant positions in the General Fund, with an annual value of $2.8 million.
However, several of these vacant positions were already identified for elimination as part of
our $1 million in efficiencies reductions. Further some critical positions have been hired in
the interim, including the Urban Forrester, Police positions, and School Crossing Guards.
This leaves a balance of 30 positions on the list with a value of $1.9 million. I consider the
remaining positions to be critical to our ongoing operations and would not recommend them
for elimination.
USE OF ONE-TIME REVENUES
The City's policy regarding use of one-time revenues states that "The City of Miami Beach
will use onetime, non-recurring revenue for capital expenditures or one time expenditures
and not subsidize recurring personnel, operations, and maintenance cost".
Similar to the FY 2010/11 and FY 2011/12 budgets, FY 2012/13 General Fund revenues
reflect the use of $3.4 million in prior year surplus (revenues in excess of expenditures)
specifically set aside for this purpose Building Department reserves of $1.5 million are also
included. As noted above, the carry-forward of the savings from the $2.2 million allocation of
the one-time pension credit to the General Fund is also reflected as a one-time revenue for
FY 2012/13. In total, the General Fund Operating Budget reflects a total of $7.1 million in
one-time revenues, offset by $1.4 million proposed transfer to capital.
PROPOSED FY 2012/13 ENTERPRISE FUND BUDGETS
Enterprise Funds are comprised of Sanitation, Water, Sewer, Stormwater, Parking, and
Convention Center Departments. The Proposed FY 2012/13 Enterprise Funds Budget is
$161.1 million. This represents an increase of $4.4 million (2.8 percent)from the FY 2011/12
budget of $156.7 million, primarily due to:
• Increases in salary, pension and health cost similar to those described in the General
131
Adopting Final Budgets
September 27, 2012
Page 7
Fund, although in the Sanitation Department Proposed Budget incorporated reduced
personnel costs and increased use of temporary employees based on historical
information ($2.1 million)
• Increases in sewer treatment and DERM fees charged by Miami-Dade County ($4.6
million)-with associated increases sewer revenues collected by the City
• Increases in funding for future renewal and replacement projects and equipment, which
is determined by prior year depreciation amounts ($2.2 million)
These increases are offset by decreases in debt service payments by the Stormwater Fund
($2 million), as the debt service for bonds sold in FY 2012/13 along with the associated
refinancing of existing bonds resulted in lower than budgeted debt service costs; reduced
operating costs in the Convention Center offset by reduced revenues due to an accounting
treatment change of electrical revenues ($1.2 million); reduced funding needed to be
transferred for the Stormwater Rate Stabilization Fund ($1 million); and other miscellaneous
reductions ($0.3 million).
PROPOSED FY 2012/131NTERNAL SERVICE FUND BUDGETS
Internal Service Funds are comprised of the Central Services, Fleet Management,
Information Technology, Risk Management and Property Management Divisions. The
Proposed FY 2012/13 Internal Service Fund budget is $59.3 million. This represents an
increase of $5.0 million (9.3 percent) from the FY 2011/12 budget of $54.3 million, primarily
due to increases in salary, pension and health cost similar to those described in the General
Fund, as well as, increases in Police liability claims ($0.75 million) and debt service for
replacement of vehicles and equipment ($1.1 million). 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.
CONCLUSION
In summary, the proposed FY 2012/13 General Fund operating budget maintains current
service priorities for the community, despite property tax rates set at 1.3 mills (17 percent)
lower than FY 2006/07 when property values were similar to the 2011 certified values.
The Administration recommends adoption of the attached Resolution which establishes final
budgets for General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and Internal
Service Funds for FY 2012/13.
KGB/TF
132
Attachment A
IBE
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
Kathie G. Brooks, Interim City Manager
Tel: 305-673-701 0, Fax: 305-673-7782
September 12, 2012
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)
2012/13, commencing on October 1, 2012 and ending on September 30, 2013 (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 2013/14
through FY 2016/17. The total Proposed General Fund Operating Budget is $256,975,000,
which is $12.6 million or 5 percent more than the FY 2011/12 adopted budget of
$244,336,7 40.
Further, General Fund reserve levels as of September 30, 2011 for the 11 percent emergency
reserve and the 6 percent contingency goal were a total of $40.5 million. The General Fund 11
percent requirement for FY 2012/13 based on the proposed operating budget net of capital
transfers and reserves for FY 2013/14 is $27.7 million, resulting in $12.8 million (a 5.1 percent
additional contingency), if there are no additional changes in fund balance, and no additional
transfers made.
Budget Highlights
• The FY 2012/13 budget adds $1 million in reductions and $2.6 million in
employee givebacks to almost $69 million in reductions in predominantly
recurring expenditures over the last 5 years
• General operating millage rate is reduced by .0533 mills (and more than 0.1
mills since FY 2010/11}, which together with the 0.316 mills decline in debt
service results in a total decline of 0.849 mills
• The proposed millage is J .3 mills below FY 2006/07 when property values
were at a similar level
• The General Fund Operating budget is 8 percent more than in FY 2006/07,
in spite of J 5 percent growth in the Consumer Price Index (CPI} in a similar
period, 126 percent growth in pension costs, and many new facilities and
pro;ects coming on line
• General Fund enhancements of $3.5 million provide improved services to the
community providing a return to the community for the increase in property
tax levy
133
fY 2/13 Proposed Work Plan Budget Message
September 12, 2012
Page 2
The City's Proposed Operating Budget in total FY 12/13 is $441,37 6,000 including the
General Fund, General Obligation Debt Service, Enterprise Funds end T rcnsfers to the
Redevelopment District. This reflects an of $17.3 million, or 4.1 percent over the prior
year total Adopted Operating Budget of . In addition, the budget for Internal
Funds, which are wholly supported by transfers from the General Fund, Enterprise Funds
and the Redevelopment District, is $59,328,000, an of $5 million, or 9.3 percent, over
year total adopted operating budget of $54,280A45.
City of Miami Beach has experienced significant change in the years, due to
changes in property tax legislation, values that first increased and then declined, and
increasing pension plan contributions to the down tum in the investment market. Today,
property values in FY 2012/13 are similar to 2006/07, 1 billion versus billion.
their peak in FY 2007/08, property values have declined almost $3.8 billion
(approximately 14 percent) through FY 2012/13, almost billion in new construction
added to the roll. Without the new construction, the decline in values would be even at 29
percent. Outside the City Center RDA, which impacts General Fund Property revenues, the
decline in values is even more significant at 20 percent, even after new construction.
In FY 2010/11 the city's approach to addressing the then deficit of $32 million included a
distribution of ihe shortfall taxpayers and employees. Taxpayers had their tax rate
increased from 5.6555 to 6.21 an 0.56 mills. The goal of ihe Commission has been
to bring them back to that level as property It should remembered that
between FY 2009/10 and FY 2010/11 billion which, together with
pension cost increases 1 drove the need an in the 12/1 3 values are still
short of 2009/10 values by $1.6 billion. As values FY 2009/10 values 1 through
further in the future, this will provlde the opportunity to bring the millage to 5.6555.
In 11/12 the took its first step in that direction with a reduction in the millage rate of
0.05 mills. The proposed millage rate for 2012/13 the operating millage by an
mills a total of 0.0849 mills including the reduction in debt
"""'"'"~"'"' millage. operating millage reduction between 2010/11 and the proposed
12/13 millage is 0.1 033. Over two years, this reduction represents 1 of the goal to back
to a millage rate of 5.6555.
Proposed Budget recommends a total combined millage rate for the City of Miami Beach
which is comprised of a general operating millage rare of Ia decrease of
mills), a Fund Capital Renewal and Replacement millage of 0.1083, and a voted debt
millage rote of 0.2568 (a decrease of 0.0316 mills).
As shown in the table below, ln prior years the City of Miami Beach significantly reduced tax rates
as property values increased. Between FY 1999/00 and FY 2009/101 total combined City of
Beach millage rates declined approximately 8 mills. In 2007/08 the millage
134
FY 2012/13 Work cmd Budget
September 12, 2012
Page 3
by approximately 1 mills,
n.rnn"".-'" of over $400.
Property Value, Millage levy
Final/
Taxable Revised
Property Taxable Total General Total
Values Value Fund/ROA
General Fund
Total
{Including s.
Pointe, and
Renewal&
of 0.56 mills i.n operating tax rcde in FY 201 0/11, City of Miami
millage rates today remain more than mills lower than in FY
1999/00 (25 percent), and approximately 1.3 mills lower than 2006/07 when property
to values. As o result, the proposed property tax is approximately $27 million
lower in FY 2012/13 than it was in FY 2006/07.
98 11119 '00 '01 '02 '03 '04 '05 '06 '07 'OS '00 '10 11 12 13
Fiscal Years
135
FY 2012/13 Proposed Work Plan
September 1 2012
Page 4
i250
~00
!150
>< ~100
i ] 50
~ 0
Message
'07 '08 '09 '10 '11 '12 '13
-Property -~~~-Tax including Debt
Today's General reflects diversification revenues since FY
2006/07. The Budget includes resort taxes and a transfer Parking
Operations Fund year-end surplus as as Parking Fund reimbursements and right-of-
way paid to the General that almost $37 million; approximately 15 percent af the
General Fund 2/13 Budget In large
Between FY 2007/08 and FY 2011/12, the Fund absorbed more them $41 million in
reductions [almost 17 percent the $244 million FY 2011/12 General Fund budget)
reductions of approximately $49 million positions Combined with more
than $20 million in employee "glve-bocks 11 FY 2009/10 and FY 2011/12, this represents
almost $69 million in combined 11Qivebacks" and reductions over 5 years.
Internal Service Funds
136
2012/13 Proposed Work Plan and Budget Message
12,2012
The FY 2Df 2/J 3 budget adds .$ f million in eHklency reductions and anticipates
$2 .. 6 million in employee give&a,ks.
Of nate, the FY 2012/13 proposed Fund Budget is $20 million (8 percent! more
than FY 2006/07 budget, despite pension contribution of $29 million during the
same period. Inflation from 2006 through June, 2012, a similar was
approximately 15 This refle~ts a across all expenditures during that time,
and even offsetting increases in health and a growing concern to us, as there is and
should be a limit to the proportion budget allocated to these costs. At this point, annual
contributions to the City's two alone more than million (20 percent) of
the total General Fund budget. As a result, pension reform continues to a high priority for the
City, with recommendations from Budget Advisory Committee presented to Commission on
August 29, 2012. This timing allows pension reform to be incorporated the current set of
contract negotiations.
in past years, the Proposed Work Plan and Budget was developed through an intensive review
process with our City Commission. Preliminary budget information was provided to the
Commission at a Commission of the Whole meeting on July 2012 and budget strategies and
priorities were established. Additional budget briefings were held with finance and Citywide
Projects Committee on July July 10, July 25, and August including a discussion of capital
project priorities, projected General Fund revenues ond expenditures, proposed efficiendes,
impacts of service level alternatives, potential revenue enhancements, and potential service
enhancements.
At the time of adoption of the in July, it was that the Ciiy had a gap of
$4.4 million, an improved position from the estimated gap of .4 million at the same time in the
development of the FY 11/12 budget. Between setting preliminary millage in July and
finalizing the Proposed Work Plan Budget, as we committed to do, we refined our projections.
Our revenues, in particular, tend to hove greater fluctuations than expenditures, and we were
conservative early in the process and refine these projections over the summer. Changes since July
increased revenue estimates (primarily building development process rents and
offset by decreased interest earnings). As a result, the projected Current Service Level {CSLl
gap was reduced to $3.3 mitlion as discussed at the August 22 , 2012 meeting.
At the August 22 FCWPC meeting, an approach to balance the General fund budget was
This approach included $2.6 million in employee givebacks; $932,000 in efficiencies;
$bringing in an additional $4 million in Resort Tax revenues to the to offset tourism-
expenditures, and modest in revenues. These were offset by million in
for living wage, operating costs bringing capital projects on line, and
various service enhancements -the majority of which was related to Police service enhancements
137
FY 2012/13 Proposed Work Pkm and Budget Message
September 12, 2012
Page 6
and Building
projects.
!due to demand); and a transfer $1 .4 million to fund capita!
Since August 2012
Operating budget has continued to
incorporated:
with the finance and Citywide committee, the Proposed
refined. The following ore the significant that have
• Based on the final valuation for the and Police pension, the City's annual contribution
for FY 2012/13 has by approximately $400,000 compared to the
preliminary initially resulting in a reduction of the pension allocation to
Fire Police. o result, the recommended level employee givebacks, which
been driven increases in health and pension costs, is proposed to be similarly reduced
from $3 million to million in the General Fund.
• Based on further discussions with the Flncmce Deportment regarding the accounting
treatment of the $2.5 million pension credit in both plans in FY 11/12, the
method of application of the credit to help pension has been changed.
Rather than applying the against expenditures in FY 2012/1 been
presented to the Committee Whole to the FCWPC, the credit from FY20l1/12
will be carried as revenues from FY 2011 2 to FY 2012/13, the full
pension contribution will be in expenditures for FY 2012/13. net impact on
available funds, however, remains the same.
• Two positions which had recommended for from classified positions (data
entry clerk and administrative aide) to unclassified positions been removed from the
proposed list of reductions as it was determined that the significant portion of the savings
was to the turnover each of the
• General Fund operating costs offset by in the capital and
debt category, to reflect the anticipated from the initiatives implemented by
Amaresco, in which energy operating cost savings are anticipated to offset by
increased debt service issued to fund the cost of the initiatives.
Historically, the General Fund budget has between 6% and annually, primarily due
to increases in salary and benefit costs. In FY 2012/13, the $12.6 milllon (5.2%) increase in
expenditures includes a $1.1 million reserve recommended to set aside for FY 2013/1 to help
offset the loss of the carry forward of the FY 2012/13 credit of million. Net
of this reserve, the increase is $11 million !4.~/o), and is similarly driven by in salary
and benefit costs (primarily pension and health).
noted above, a primary driver of FY 2011/12 operating budget
and the fY 2012/13 proposed operating budget ore personnel costs increases, primarily increases
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12/13 Proposed Work Plan and
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Page 7
Message
in health and pension costs. In the General fund the estimated combined increase is
approximately million is direct allocations to the Fund as well as on additional
Internal Service Fund charges which ore due to pension and health in those funds.
increase is $9.1 million. The proposed employee $2.6 million are intended
to partially the employee health and pension cost in the General Fund. While not
specifically the intent is to negotiate similar levels of givebacks in all funds for a total of
$3.5 million in citywide.
It should be noted
bargaining
Proposed Operating Budget assumes status quo for all
nnr·A""rnArlto: are negotiated. As a result, the Proposed Operating
Budget assumes no
The impact of this is approximately
employee givebacks above.
Communications Workers of America bargaining unit.
million in the Fund which is in addition to the
with the preparation of budgets for the last five years; departments are continuing to analyze
and present their budget from two perspectives: 1) reviewing for potential efficiencies,
reorganizations to -etc., without impacting services; and 2) performing a modified zero-
based analysis of department identifying potential service reduction alternatives
versus core functions. For each of the potential service reductions, departments provided the type of
impact and the magnitude of the impact. functions were defined as those functions which, if
cut, it impossible for the department to provide service at a reasonable level.
In spire of the significant reductions in the Fund over the
proactive Jn locating additional efficiencies in the General Fund. For FY 2012/13 =~...:c..!..
million of efficiencies are built into the proposed General Fund budget. However, the focus of the
fY 2012/13 was to provide service enhancements in areas of than identify
areas for reducing levels.
Proposed revenue enhancements for FY 2012/13, projected to generate additional
totaling $263,000, as shown in Altochment including Police Department
Department transport fee increases to mirror the Miami-Dade rates, Parks
will pavilion rental rare fees, and Colony theater fees.
Potential enhancements for FY 2012/13 are proposed at a cost of $3 million in the
General Fund, providing a return on value for the property tax levy. ore also
$200 100 in additions related to living wage increases the operating cost projects
coming on-line, as well as $1 million in in funds.
The $3 million of enhancements in the Fund provides the following:
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12/13 Proposed Work Plan and Budget Message
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Page 8
• Just under one million in the Police Department are proposed to
suppression and beach closure activities
• $700,000 of enhancements to add contract staffing to the Building
Department to address increased activity in that area and ensure customer responsiveness
• $200,000 for internal controls
• $200,000 for additional to manage leases and rental contract and monitor
events and as well as providing for grants software and equipment
needs at the Colony
• $1.4 million provides a transfer for funding Pay-as-You funding for capital projects
Based on an outside consultant study conducted in 2010 using FY 2007/08 acrual costs, it is
estimated that there are approximately $50.5 million in resort tax expenditures in the
General Fund.
include associated with officers serving entertainment areas; a portion of fire
rescue services Fire Stations 1 &2; ocean rescue enhanced compliance provided
to respond to evening entertainment area violations and staffing events; other code
compliance activities in tourism and visitor related facilities/areas; Tourism and Culture Department
and the Cultural Arts Council; museums and theaters (Garden Bass Museum 1 and Colony
Theater); golf courses (net of revenues); Memorial Day oiher event homeless
services; July , Visitor funding; holiday lights; Museum; Miami Design l"r.,,~,rvrn'lnn
league (MDPl); Orange Bowl; monuments; etc. However, $8.8 million of these costs were
~ru ... ,nr<=•n as addressed by funding for the South Pointe area pursuant to the
County Convention Development Tax inter!ocal agreement, thereby in
approximately $41.7 million in eligible Resort Tax expenses in the General Fund.
on 2011 I 12 resort tax collections to it is estimated that will an additional
million available in resort tax collections to additional funding for these General Fund
activities in 12/1 The total Resort transfer to the General Fund for FY
201 2/13 is approximately $31 million.
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2012/13 Proposed Work Plan and Budget Message
September 12, 20 12
9
The City's policy _regarding use of one-time revenues states that !rfhe City of Miami Beach will use
onetime, non-recurring revenue capital expenditures or one time expenditures and not
recurring personnel, operations, maintenance
Similar to the FY 0/11 FY 2011 /12 budgets, FY 2012/13 General Fund revenues reflect
the use of $3.4 million in surplus (revenues in excess of expenditures) specifically set
for this purpose Building Department reserves of $1 million are also included. As noted
above, the carry-forward the savings from the $2 million allocation of the pension
credit to the General Fund is also reflected as a one-time revenue for FY 2012/1 In total, the
General Fund Operating Budget a total of $7.1 million in one-time revenues, offset by $1.4
million proposed to
In addition, the million in prior operating surplus, as was initiated in FY
2010/11, budget is also included.
While this is generally not a financial practice, it is being at this time
so as to allow for a gradual decline in the use of one-time revenues for recurring expenditures over
the next few in prior budgets, the intent will be 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 ovoiloble to used in
fiscal years.
The 2012/13 budget set aside of a reserve of $1 . 1 mill ion for FY 201 3/14 to help
offset the of the onetime pension credit of million for FY 2012/13 thot not be
available in FY 2013/14.
The $1.1 million is the net surplus available the recommended employee givebacks,
efficiencies, additions and and revenue increased incorporated into the FY
2012/13 General proposed operating uu"'~'"" The equivalent millage for $1.1 million is
0,0585.
Exhibits A through E a summary of the efficiencies/reorganizations, reductions,
revenue enhancements, and service enhancements considered as part of the development of the
proposed FY 2012/i 3 Work Plan ond Budget. As a result of these initiotives 1 the proposed budget
continues our on providing "value of services for tax dollars paid" by continuing to provide
to the community of or at significantly reduced ~s, including free arts
movies in the free access to and youth centers 1 fee recreation programming,
enhancement maintenance of our newly renovated facilities, etc. -the services that our residents
ond told us again are important to them during the 2012 Community Satisfaction
Survey.
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FY 2012/13 Proposed Work Plan and Budget Message
September 12, 2012
Page 10
In 2012, the City of Miomi Beach conducted its fourth set of comprehensive statistically valid
community satisfaction surveys. The Community to provide resident input on
quality of life, city services, and and to identify improvement
Overall, when compared to the 2009 residential survey, the City remained stable in most of the
areas Residential respondents provided highest positive ratings for the aptpecaralnce
and maintenance of the city's public buildings and public schools, the appearance playgrounds
and recreation programs. A high 89% of residents rated Miami Beach excellent or good as
a place to live the standard of living outlook improved 80% in 2 compared to in
2009. Business results also remained in many of survey items from the 2009 survey.
Businesses continue to rate the City of Miami Beach as 'one the best' or an average
place' to run a business. These results indicate a stable level of satisfaction with Quality of in
Miami Beach and services provided by the City, although there is need for improvement in specific
areas.
Detailed are available on the City's
the 2012/13 Proposed Work Plan and Budget in
and in the Strategic Planning section of
document.
summary our Citywide Work Plan is attached (Exhibit F) for your review along with the
highlights presented on the following pages.
a priority for our and
We will maintain that have been implemented
in recent years. City uses a quantitative index to assess impact of
efforts and shown significant overall improvement. Between FY
2005/06 and FY 1, .5 percent of public areas Citywide were
rated as or dean as compared to 65.2 percent in FY 2005/06.
None-the-less, our continue to view as an important
~"""'"~"'"' area, and in the 2012 survey, it wos as the most important
.,.,. ..... ,,... .. to . As a result, no reductions in are recommended
in existing sanitation services, and additional funding is proposed for
enhanced pressure cleaning on Uncoln Washington Avenue, and
Drive.
The resident surveys in 2005, 2007, 2009, and 2012 confirmed that safety is one of the top
quality of life factors for our residents and increasing the visibility of police in neighborhoods as
142
FY 2012/13 Proposed Work Plan
September 12,2012
11
Budget Message
one of the most important areas for City to to improve public safety, trends
reflect an in Part I crimes and in 2011 the City of Miami Beach experienced an increase
(9 percent} in total violent and non-violent crimes combined, when compared to 201 0. Of
significance, however, while non-violent (which include burglary, larceny and auto theft)
9.6 percent, violent increased percent. Despite the recent
has a 7 percent decline in total violent and non-violent crimes 2001 in spite
the 30 percent increase in daily population special events 2001. However, the Miami
crime rate is slightly below the latest nationwide and non-violent crimes
reported by the fBI for the first six months 12 by 5.2 and 5.7 percent, respectively.
Nationwide, crime declined by percent and crimes declined by 3
The Proposed Work and Budget two A TV officers to the North
area For working the night shift to enforce four Police Officers
in the South and Citywide to form an additional
Police Officers in the South area for a walking along Washington Ave,
one Detention Officer to current staffing levels, an enhancement to
Records Unit, and additional overtime the Neighborhood Resource
Homeless Outreach Program. The Proposed Budget and Work Plan
increases security coverage on Uncoln Road between the hours of 1 am
and 6 am, allowing for 24 hour between the security services and
Police
maintenance and our residential neighborhoods and business continues
a priority, along protecting quality of life enjoyed by all of our community.
In to maintaining initiatives implemented in recent years, the Proposed Work Plan and
budget converts a in Real Housing and Community Development the
Tourism into two full-time positions to provide enhanced monitoring of
concessions Funding is also provide through the Resort fund to provide the
enhanced level for Spring cmd Memorial Day as was implemented in FY
2011
The Proposed Work Plan and Budget maintains $219,000 in funding for reforestation, replacement
of landscaping, pavers, up-lighting, etc. through the Capital Investment Account
The availability of quality recreation programs continues to be one of the highest priorities for our
community. As a the Proposed Work Plan Budget reflects no reductions in our offering of
recreation programs. Successful recreation for teens and seniors also continue to be a
priority, along with weekly in visual or performing arts in after school programs and summer
camps
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FY 2012/13 Proposed Work Plan and Budget Message
1 2012
The City's business and tourism sectors ore an integral part of our City as reflected in our vision
statement, and has demonstrated significant improvement over the last lwo including
increases in Resort in the last lwo years/ in Parking department revenues,
increases in Building development activity, In to continue to enhance customer service in
Building Department, the Proposed Work Plan Budget adds approximately $700,000 in
positions to the Building department in response to the increased actlvily. However, in order to
remain flexible and responsive to changes in demand levels, these resources are added through
contracted rather than as full time positions. A condominium ombudsman function will also
be though the use of existing resources in the Building Department.
ln addition/ enhancements funded through the Resort Tax Fund to enhance c:.t"r'"'"'·""
development though tourism initiatives that include marketing for Washington Avenue
similar to other marketing initiatives currently funded through Greater Miami
Convention and Visitors Bureau for the funding for a grant to the f!U-Wo!fsonian over lwo
to provide a master plan for the Museum site that will be used to access $1 0 million in
Miami-Dade County Obligation Bond funding for expanding and revitalizing their facilities
on Washington Avenue Lennox Avenue, and funding for re-instatement of the Festival the
in North Beach. Further, the Proposed Work Plan and funding through the
Resort Tax Fund for tourism-related economic development activities in North Beach that were
initiated in FY 2011/12.
The proposed Budget Work Plan provides for continued improvements and maintenance of our
facilities and neighborhoods infrastructure by appropriating $1 .2 million in our capital budget to
shortfalls in funding For the ground portions of our neighborhood right of way
(primarily milling and resurfacing), T,ogether with the transfer of 1.4 million from the
$2.7 million in you go funding is included in Proposed 2012/13
budget to seawall repairs at Muss Park as well os the addition of a potential launch at
that facility (subject to input), improvements to our facilities (irrigation at Fisher
Park, Stillwater Crespi Park Field Renovation, Flamingo Park Madvac System,
Tatum Park Outdoor Sand Volleyball) and the additional above ground funding for the following
neighborhood
• Bayshore Bid
• Bayshore, Lower North Road Bid Pack B
• Bayshore Lake Poncoast Pack C
• Bayshore Neighborhood Sunset II
• Bayshore Neighborhood Sunset Isles Ill IV
144
FY 2012/13 Proposed Work Plan Budget Message
September 1 2012
13
Funding for Resort to tourism-eligible quality of life projects funding received
throug.h the Convention Development tax lnterlocal Agreement with Miami-Dade County. These
projects include:
• Middle Beach Recreation Corridor Phase II
• Baywalk I
• Flamingo Park
• Par 3 Golf Course Moster Plan
• 61h Street Restrooms
• North Shore Open Pork Replacement Fitness Circuit/Trail
• Beach Access
• Citywide Dune Restoration and Enhancement
• Alton Rood Irrigation System from 51h to Michigan
• Collins Ave, 5tt. Street to lincoln
• Citywide Dune Restoration and Enhancement
Further Enterprise and special revenue funds such as the Redevelopment Agency, South Pointe
Center, and Transportation {PTP}will provide funding for:
• Collins Park Parking
• Collins Conal Enhancement Project
• Seawall-Botanical Garden/Collins Canal
• lincoln Rood landscaping
• Aluminum lighting Replacement-City
• Beachwalk lighting ....... , ....... ~
• Euclid Ave Improvements at Lincoln Rd
• flamingo 6!11 Street ROW improvements
• South Pointe
• Playground Fence
• Main Rehabilitation~ Alton South sr.
• Convention -Replace vorious disconnects/bus ducts/electrical panels. Exhibit Hall
Chairs, C&D Carpet1 and lwo 1 00 ton chilled water interior bus duds,
C & D ballroom disconnects, chilled water · and install ADA Automatic Doors,
• Sunset Harbor AIPP funding
• Surface lots ot Harding Ave & 71 St., North Shore Youth 6972 Bay Drive,
Bonito Drive, 4001 Prairie Avenue and Museum Surface lot
• Relocation of Parking Meter Sign and Shop to accommodate Relocation of the Property
Management Facility
• Plate Recognition Software for Parking Enforcement
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FY 2012/13 Proposed Work Plan and Budget Message
September 12, 2012
14
• Continued Replacement Master Meters and Revenue Control Equipment Upgrades
• Street Infrastructure Improvements -Crosswalks, Mast Arm Painting, Pedestrian
Speed Radar Units
• Additional Funding for the West Bridge
As noted earlier, between FY FY 2011/12, the General Fund absorbed more than
$41 million in reductions (almost "'"'~'"""'n of the $244 million FY 2011/12 Fund
budget} reductions of approximately million and 269 n"'"'mnn
further, a total of approximately $15 million in employee "give-backs"' were achieved
between 2009/10 and FY 201 11, $20 million through FY 11/12, through a
combination of freezing cost living adjustments for all employees For two and one-half
years, elimination of merit for all employee except members of the Fraternal
Order of Police and International Association of Firefighters} lAFF, increased
contribution to pension for all employees except members of IAFF, pension plan
changes for Miami Beach Employees Retirement Plan, contributions for take-
home by FOP members for 18 months, holiday pay for members,
and increased contributions health insurance by of the and IAFF for 18
Combined with more than $20 million in employee "give-backs" FY 2009/10
2011/12, this represents almost $69 million in combined "givebacks" and reduclions over
5 )I!Ors, with no significant impacts to the services provided to our communily,.
Although the to have stabilized, impact of recent recession impacted both
property tax revenues as well as costs through FY 2/13 likely further into the
furure. Therefore, the strategy continues to consider the long term financial sustainability of
the City. Beginning with development of FY 2009 I 1 0 a strategy was developed to
short-term, mid-term and long-term fincmcial needs.
• to short-term financial needs included ongoing efficiencies
by employees.
• Mid-term financial sustainability was addressed by pension from current
employees in the Miami Beach Employees Retirement Plan
• Longer term financial sustainability is by the pension plan restructures that
been put in new employees in Miami Beach Employee Retirement Plan. For
example, for Employees) plan restructure proposed new employees is
projected by the City's acruary ro reduce the City's annual required contribution by almost
$1 million in FY 201 2/13, with additional reductions annually os the number of employees
in the Miami Empfoyees Retirement Plan hired after October 1, 201 0 continues to
increase. Further, additional pension plan reform recommendations have been developed
146
2012/13 Proposed Work Plan and Budget Me:ssa~~e
12, 2012
by the City's Budget Advisory Committee for
presented to the City Commission on August
Fire and Police Pension Plan which were
2012.
All of the givebacks achieved, the 18 increased contribution to health by FOP and
IAFF and the increased contributions for take-home vehicles by FOP members 18 months,
represent ongoing, recurring savings to City and the employee give-backs contribute
significantly Inwards the City's goal (key intended outcome) to control payroll costs.
With the planned $1.16 million in efficiencies and $2.6 million
incorporated in the Proposed Work Plan and Budget for FY 2012/1
and employee Givebacks is almost $73 million.
in employee 11givebacks"
6 year total of reductions
Despite the dramatic impact of five years of reductions due to property tax reform exacerbated by a
dramatic in property values and dramatic in pension costs, Proposed Work
Plan and Budget benefits specifically for City Miami residents, including:
• Our "Culture in the Parks"
• 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 athletic leagues.
• access to City pools on and during non-programmed hours;
• Free genera! admission to our Youth Centers on weekends and during non-programmed
hours;
• Learn-to-Swim programs for 3 to 4 year old
• rates for programs
• "family friendly" Movies in Park;
• admission to museums on Miami Beach, including the Bass and Wolfsonicm Museums
and the Jewish Museum on Wednesdays, Fridays and Saturdays;
147
FY 2012/13 Work Plan and Message
12,2012
Page 16
• access to the majorily of our programs and populations programs,
including several free dances that throughout the year;
• of charge play at the Por 3 golf course all residents;
• analysis of residents' homes our Police Department; and
• Free child safeiy seat checks by our Fire Department.
have also prioritized Key Intended Outcomes to ensure the long-term sustainabilily our City
government, including improved communications with our residents, ensuring financial sustainabilily
ensuring that we have the best possible to deliver services to our community.
environmental sustainability, the City established a permanent committee in 2007/08
called the Sustainability with the objective of providing a mechanism to discuss green
(environmental} of concern to the community. In FY 2011/1 based on recommendations
from Sustainability Committee, the City implemented a recycling ordinance. FY 2012/13
uu,_,..,.,, includes funding for an intensive education and outreach campaign and six months,
beginning in January 201 warnings will issued. The sustainahility Officer will responsible
conducting outreach, recycling guidance, and if issue warnings. Once the recycling
program been implemented, the Sustainability can other sustainabillly issues
(greening restaurants, etc. Administration will back to the Commission before issuing any fines.
This enhancement has been funded from the Waster haulers Additional Services Public Benefit
Fund.
To promote transparency of operations and strengthen internal controls, the City posted on-
line all expenditures and referrals and, in FY 2009/10, the Cily also began posting on-
line Internal Audit and Performance Improvement reports. The Proposed Work Plan and Budget
provides funding for initiative that will help strengthen our Internal controls and help promote
transparency, including funding for a review/audit of one area the operations year,
beginning to restructure the lnternol Affairs division in the Police Department with the conversion of
a supervisor position to permanently assigned to the division rather than rotating
for this position, and by providing Automoted Vehicle locator (AVL} in Parks
Recreation vehicles, Department vehicles, and Public Works Fund vehicles.
Proposed revenue enhancement initiatives include the purchase of grants research software to
used by six the addition of o full·time to help manage
in City as revenues have grown from $3.4 million to $5.4 million in the last 3 years.
The Proposed Work Plan Budget continues funding to enhance communications with our
residents, enhance the availability of city and processes that can be and
n<;rlrTQ>rl via the internet, and our technology infrastructure. To that the Proposed
Work Plan continues to fund the City's MB Magazine, and MB TV.
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FY 2/13 Proposed Work Plan Budget Message
September 1 2012
17
Further, the Proposed Work Plan and Budget includes a $0.4 million transfer to the Information and
Communications Technology Fund. Projects to funded in FY 2012/13
• T echnolog)' Enhancements for New Accela Permitting System: replaces or enhances the
ticketing, queuing and calling for the permit application and walk-thru plan review
process. Includes portable printers for inspectors Code Compliance Officers, a payment
kiosk for the Code Compliance Division. Includes an improved plans management
tracking and a mechanism to obtain on the Accela Citizen portal.
• Enhancement to Eden Accounts Payable module: will allow documents to attached lo
invoices providing easy to backup information and eliminating the need for
r1"''""r'"""',.,,~ to maintain multiple copies of the same document. _Upgrade of Automated
to the workflow and with a new user interface
data collection, allowing data cleanliness database and
,.,,.,,,.,.,, .. ,.,r,., of reports from the central
• existing outdated application at the Police
a program can interface with the City's poyroll which will
nrr•r~·~<t of processing off-duty pay.
• recommended by the City focus group Technology
applications such os Report It! And a parking
application to locate gorages availoble parking.
• License Plate Recognition: (Funded by the Police confiscation Fund and Parking Fund)
includes the purchase of two mobile Automatic License Plate Reader systems to enhance
safety and prevention The Parking Department is pursuing the same
technology for its parking payment
(Funded by the Fund) includes
the City's parking aa1·aa1as with a central
monitoring station. work will completed in three phases.
• Moster Meter Replacement (Funded by the Parking Fund) wlU purchase and install 750 new
multi pay stations for on-street off-street pmking locations. This will replace 500
pay stations and expand the use of pay stations in Middle and North beach.
• There are other projects that do not require funding but are planned to under
development next with in·house staffing resources: re-writing of the pending City
Commission documents log and lobbyist and board committee programs, in the Office
of The City Clerk, complete a historic buildings map and provide hotel
and restaurant information far the Visitor and Convention Authority (VCA) for
development of a visitor information website and data aggregation portal.
the City established a financial of funding at 5% the General Fund
budget as transfers for capital projects and capital proiects contingency. The purpose of
was multi-faceted;
1 . To provide flexibility in the operating that would allow the budget to reduced
without Impacting during difficult economic times;
To ensure that the City funded upkeep on our General Fund facilities, and right-of-
landscaping, lighting, etc.
149
2012/13 Proposed Work Plan
1 2012
Page 18
3. To provide a mechanism to address additional of small new projects prioritized by
4.
the community and the Commission of having to delay for a larger General
Obligation Bond issue;
provide contingency funding so that projects where bids were
not have to deloyed, during a heated construction
lead to further increases in costs.
than budgeted did
where delays
In recent years this funding was dramatically reduced due to funding constraints, and at the same
reflecting in construction industry in those years. The Proposed Work Pion
and Budget incorporates an increase of 0 .5% from 1% in FY 2011/12 bringing the total to almost
1 .5% in 20 l 3 for capital components,
Fund is the primary source of funding the majority of City Revenues ore
n ...... v.,.r~ from ad valorem property taxes, franchise and utility business and permit
fees, revenue sharing from various statewide taxes, user fess services, fines, rents and
l~;;e:$:>1~;m fees and income. Additionally, intergovernmental revenues from Miami-Dade
County and contribute funding for tourist-related activities provided by General Fund
departments.
first step in preparing the FY 2011/12 budget is an evaluation of Current Service level (CSL}
revenues and expenditures. revenues represent the amount revenues that would be
generated based on existing tax and CSL expenditures represent the
expenditures associated with the same level of service next as in the current budget
year.
July 1, 2012, the n2012 Certification of Taxable Value" from the Property
Appraiser's Office stating the taxable value for the of Miami Beach is $23,072,321,980
including $96,864,87 4 in new construction. The preliminary 2012 value represents on increase of
$ 1.1 billion or more the July 1, 1 Certification of Taxable Value of
$21,978,289,928 , on increase of 5.0 percent excluding new construction.
comparative values the Miami Beach Redevelopment Agency City
redevelopment district increased from to $3,60BJ18,451, on increase of
$0.1854, billion or a 5.4 percent increase in values over 2011 certified values. In addition,
u~::.,e~;:.:.t~u values within the area formerly known as the SoiJth Pointe redevelopment
increased from $3,446,036,913 to $3,618,097,360, on of $0.172 billion, or a
5 percent in values over 2011 certified values. As a result, values in the areas
the City Center RDA/South Pointe area increased by 4. 9 from $1 l 089 billion to
billion, an increase $0.7366 billion.
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FY 20 12/1 3 Work Plan and Budget Message
September 12, 2012
Page 19
excluding City Center increased from $1 billion to $19.463 billion, an
,,..,..., . .,,..,,""of $0.9086 or Values outside the City Center area determine General
Fund revenues.
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. the City of Miami Beach, this value for each mill is determined by the 2012
Certification Taxable Value and has set at $23,072,322. Florida Statutes permit a
discount of to five percent for early delinquencies, etc. Therefore, 95
percent of mill is $21,918,706.
In FY 2011/12, the operating millage rate for general City operations was adopted at 6.1655.
on the July 1 , 2012 Certification of Taxable Value, 6. 1655 mills would generate
approximately $ 135, 139,781 ln general tax revenues, em increase of $6,407,992 over FY
2011/12 budgeted property tax revenues Citywide Fund, RDA and South
Pointe orea). The General Fund properly tax revenues will $5.76 million, if the fY
2011/12 millage rate is maintained.
further, the January, 1 11 tax roll Citywide declined by $1.2 billion the July 1, 2011
valuation and the July 1, 2012 valuation due to adjustments, which is part of the
reason that the FY 2012/13 "roll-back rate 11 is significantly less than the FY 20 11/12 current
millage rate. The area outside of City Center RDA declined by $1 billion.
151
FY 2012/13 Proposed Work Plan and Budget Message
September 12, 2012
Page 20
Further, pursuant to recenrly
above the roll-back rate up to
Commission or referendum:
State legislation, the City may to approve millage rates
constitutional cop of 1 0 mills subied to the following votes by the
.. Option 1: A majority of the Commission ls required to a millage up to 8.0844
(equivalent to 1 of prior year maximum ad valorem proceeds allowed by a majority
vote, net the impact the Increment Districts}. The adjustment of 1 00.447% reflects the
statewide per capita personal income increase for the prior year
• Option II: A two-thirds approval of 7 votes) of the Commission is required to a
millage up to (equivalent to a 1 0% in the ad valorem revenues above Option
!).
• Option Ill: A unanimous of the Commission or referendum is required to approve a
millage above up to the 1 0 mill cop
The general service nn\JmF~n for FY 2012/13 is approximately $5.9 million.
on the July 1, 2012 Certified Value the Property Appraiser, these bonds would
levy a voted debt millage of 0.2568 mills. This represents a of
0.0316 mills.
illustrated below is a comparison of the millage rates valorem revenues to the
City of Miami Beach for FY 2011/12 (final) and FY 20] 2/13 {preliminary) including RDA lt is
recommended that in the General Fund, 0.1 OB3 mills of the total continue to be
dedicated to renewal and replacement.
%1nci{Dec)
From From FY
City of Miami Millage Rates 06107 FY11112 FY 12113 FY10/11 00107
Operating
Capital Renewal & Replacement
Sub-total Millage
DebtSer.tce
Total
152
2012/13 Proposed Work Pion and Budget
September 1 2012
Page 21
Jf recommended rates are tentatively odopted 1 the Ci!y of Miami Beach's total
operating millage will decrease by from the current and the voted debt millage
will by 0.0316 mills. This represents a totoll"i.,.,..r ... ..,., ... of 0.0849 mills.
Amendment 10 to Constitution took effect on January 1, 1 and limited the increase in
assessed value of norne~;rec1a property to percentage increase in the consumer price index
(CPI} or three percent whichever is less. For 2011, CPl has been determined to 3.2
percent therefore, ""''"""'"" is capped at 3% for increased values as of January 1, 201
Overall, based on an analysis homesteaded in the 2010 tax roll (the latest
available from Miami-Dade County Property Appraiser at this time}, the median of
homesteaded property in Miami Beach for 2012 (as of August 2011) was $119,461, the
average Applying increase to the market of all existing homesteaded
properties from the 2011 tax roll, and the 3 percent CPI adjustment, the impact of the millage rate
adiustment to homesteaded would be as shown in the Following table.
0peratlfl9 762 $ 1.745
Voted Deb! 32 73
784 $ 1,818
$Change in Taxes
Operating $ 15 $ 36
Voted Debt (2) 2
Total Miami Beach
urce: Miami-Dade County Property Appraiser File as of 8117/iO
of Miami Beach property owners must also pay property taxes to Miami-Dade County, the
Miami-Dade County School Board 1 the Children's Trust, the South Water Management
District, and the Florida Inland District
The countywide tax rate for Miami-Dade is proposed to decrease from 4.8050 mills to
mills; the library tax rate is proposed to n.:>r'r"'n from 0.1795 mills to 0.1725 mills; and
debt service millage the same at 0.2850.
153
FY 2012/13 Proposed Work Plan and Budget Message
September 1 12
The tax rate for the Miami-Dade School District is 8.0050; 0.2.440 mills than the
year millage of 8.2490. Children's Trust millage is maintained at 0.5 mills. The
proposed tax rote for the South Florida Water Management District is 0.3928; which is the some
as the current year. The proposed tax rote Florida Inland Navigation District is 0.03.45;
nrn,nnt"IAn from the FY 201 0/11 millage.
With the Proposed millage rates for FY 2012/13, Miami Beach portion of the FY 2012/13 tax:
bill is approximately 31 percent of the total bill. Of note, even with the recently proposed millage
decreases by the CounfXt the County millage is 1.2 mills less than their millage in FY 2006/07, as
compared to the City's proposed millage which is 1.3 mills less than the City millage in FY
Further, the School Board millage is only minimally below the 2006/07 millage
despite the recently proposed decrease. The significant difference in the total overlapping
rate is a direct result of Citis to keep the millage rates as low as possible
A summary of tax rate changes is provided in the following
%ofFY
Variance Variance 12113
FY 12113 from 11112 from 06107 Total
154
FY 20 12/1 3 U!JU'"t:u Work Plan and Budget Message
September 12,
Page
on
the proposed millage rates to the median and January 1, 2011 taxable of
1 and $277,201, respectively, half of hornestea1ded properties would pay than
for all taxing jurisdictions combined, taxes generated would
approximately homesteaded "'"'"'"'""r 1" taxing jurisdictions, the highest
component is Miami-Dade School for a median value and $2,219
an valued property.
following table ...... ,...., .. ,"'"'c
a result of these
City o"f Miami Beach
Operating
Voted Debt
Total Miami Beach
Miami Dade County
Schools
Change in Taxes
City o"f Miami Beach
Operating
Voted Debt
Total Miami Beach
Miami Dade County
Schools
Total
in properly taxes for homesteaded properties as
proposed tax rates and potential changes from 2010
743 $
34 $
As with the City of Beach millage impacts combined jurisdictional millage rates
for non-homesteaded properties will likely reflect declines in properly values, although individual
properties vary.
the revenue for FY 2012/1 based on the July 1, 2012 Certification of Taxable Value
from the Miami-Dade Property Appraiser1 values of existing properties increased by 5
155
FY 2012/13 Work Plan and Budget Message
.'"\l'!nl'Ptmn~r 12, 2012
percent the July 1, 2011 tax roll certification. This compares to taxable value
of at least 8 per from July 1, .2001 through July 1, 2007, but decreases
on of 6.4% beiWeen FY 2008/09 and FY 1/12.
(CSl) revenues ore expected to by million for FY
principally due to on million property tax as a result higher property
value, mlllion in carry forward of a pension credit from FY 2011/12 as well as $3.3
million in licenses revenue, reflecting the increases in building development
activity. These ore offset by across a number of categories. These decrease
include in the following categories: taxes due to declining telephone utility tax
revenue 1 intergovernmental revenue due to in tax revenue and revenues received for
911 costs which have moved to a separate fund, charges due to fire transport
fines & than expected light camera revenue, investment due to
in the miscellaneous revenue category due to corporate
bonus revenue in FY 2011/12.
The total revenue estimate at this is $252.7 million, an increase of $8 million from the
FY 2011/12 uuv1..11~:::u budget.
Property Tax Citywide 98,"198,923 102,042,000 40% 3,843,077
Property Tax South Pointe "10,439,424 10,850,000
Capita! Renewal/Replacement 1,755,752 1,825,000 1% 69,248
108,469 0% 20,531
Subtotal 110,502,568 114,846,000 45°/o 4,343.432
Other Taxes 24,278,385
"'
(255,385)
Li.censes & Permits "17,074,053 20,328,000 8% 3,253,947
lntergowmmental Rewnue 10,091,000 9,827,000 4%
for Ser.Aces 4,879,252 4,458,000 2%
Golf Courses 5,805,119 5,979,000 2%
Fines & Forfeits 2,574,000 2,192,000 1%
Interest 3,430,000 2,983,000 1%
Rents & Leases 6,034,143 13,439,000 3%
Miscellaneous 12,423,449 11,830,000 5%
Other~ Resort Taxes 26,965,440 26,985,000 11%
Other-Reserws -Bldg Dept 1,546,709 1,500,000 "1%
-perking Surplus Transfer 7,200,000 7,200,000
OTHER -Plior Year Setaside 3,551,120 3,400,000
Prior Yr Set Aslde Pension Credit 2,210,000
All Other
156
FY 2012/13 Work Plan and Budget Message
September 12, 2012
Page 25
On the expenditure side, CSl expenditures typically have increased beiween 6% and 8% annually
due to salary and benefit and other normal cost of living adjustments. In FY 201 3,
increases are estimated to result in on approximately $11 million !4.6%) in
expenditures, majority of which is due to the following:
• A $1.4 million increase to reflect previously salary adjustments for employees,
including the impact of 5% step increases employees not at the maximum of their range in
the and IAFF bargaining units; and a maximum of 2 merit
increase for employees in the Supervisor's Association (GSA) unit, the
Ameri.can Federation of State, County and Municipal Employees bargaining unit (AFSCME) and
unclassified employees. ls no COlA included for any employees nor are there merits for
CWA consistent with the status quo of their current agreement.
• A $0.2 million increase primarily due to Fire Department overtime cost, although the Fire
Department overtime budget is projected at a below prior year actual costs.
• A $5.7 million increase in pension plan contribution costs which will partially offset in FY
2011/12 by the carryforward of year end fund balance due to a credit of $2.2
million ($2.5 million wide), as well as $0.1 million increases in costs.
• A $1 million in health care which reflect both an anticipated 1 0% increase in
health insurance costs as well as impact of the expiration of IAFF FOP 5 percent of
salaries to ciiy health costs.
• A $0.3 million increase in Benefits/ primarily due to leave payouts associated with
employees employment with the City.
• A $3.2 million Increase in Internal Service Fund to Departments to
similar in salary and pension costs as above that are then charged to
the Fund, as as equivalent increases in health insurance costs for retirees,
1nrr.::~n"~'~" in Police liability claims and in service fleet vehicles. It is important
to note that fuel in FY 2012/13 are budgeted at current prices. Should increase
further, the General Fund will to fund these
• A $1.7 million decrease in other operating costs primarily due to the offsetting move of 911
expenditures to a separate fund, decreased rent as Fire Prevention is now in a city facility,
decreased copier rental costs with the new and maintenance
anticipated from initiatives implemented by Amaresco, as well as continued refinement
in operating needs.
• A $.3 million increase in capital costs due to increased transfers to the Renewal and
Replacement Fund as a result of the increased values the dedicated millage, as well as
increases in debt r~sulting from debt to the Amaresco initiative.
157
FY 2012/13 Proposed Work and Budget Message
ntAnrthAr 1 12
Page 26
as
rtime/Other 4.2%
Benefits
Pension ~ F&P 35,602,142 38,532,000 15.1% 2,929,858
Pension -MBERP 10,964,684 13,756,000 5.4% 2,791,316
Other Pension 5,802,867 5,913,000 2.3% 110,133
Health and life 10,782,000 4.2% 1,634,342
Other Benefits 4,043,146 4,333,000 1.7% 289,854
Total Benefits 65,560,497 73,316,000 28.7% 7.755,503
Total Salary and Benefits 177,106,353 186,514,000 73.0% 9,407,647
Operating 9.9%
Sel"'lice Funds 15.4%
The restJltlng gop between General Fund
$2.9 million.
CSL revenues is approximately
It is important to that ,.,. .... ,~ ...... 1''n"' costs ore approximately $1 million less than the fY 2011 /12
budget, reRecting the various cost savings initiatives by City such as re-bidding
contracts, and careful line item expenditures.
Together, salaries and fr.inge percent of CSL costs 1 with
representing approximately 67 percent the total current service level (CSL)
million, (including the of merit/steps contributions, etc.}
pension
of $2.55.6
on direction provided by the Finance and Citywide Projects Committee meetings in Jvly and
August 2012, the approximately $2.9 million shortfall between Current Service level revenues and
expenditures been addressed through employee givebacks of $2 million, which partially
offsets the additional employee health and pension cost ..
total cost of additions and service enhancements in the General Fund ($3.7 million] has been
more than offset by departmental efficiencies, an additional resort tax transfer, revenue
enhancements, resulting in a surplus of $1.1 million to be as a set aside the FY13/14
budget, to offset the loss of the one time carryforward of the $2.1 million FY 2011/12 pension
credit to FY 12/1
158
FY 2/13 Proposed Work Plan and Budget Message
September 1 2012
Page
The resulting total Proposed General fund Operating Budget for FY 2012/13 is $ $256,975,000,
which is $12.6 million or 5 percent more than FY 2012/1 2 Budget of
$244,336,7 40.
NetCSL Gap
million in pension increases across all funds prior to a one credit and $5.7 million In
eneral Fund. $1.9 mmion health increase citywide and $1.6 million ln the General Fund,
including the $.86 million impact of the expiration of the five percent of salaries giveback
health insurance for Police and Fire
FY 20121131ncrease
..... r~.,,.,.,~., Maintenance Impact of New Projects
!Ul,n!m,.llmpact Reductions/Efficiencies
Service Reductions
1 Art,otti<cm~:: and Ennancemer'lts
Additional Building Positions in Response to Increased Demand
Enhancements for Internal Affairs and Ouside Audits
Transfer to Pay As You Go
Other Service Enhancements
Fund Impact of Change to Health Insurance Start Date for New Employees
Genera! Fund Impact of Internal Service Fund Enhancements
159
$ 252,712,000
$ 255,573,000
702,000
200,000
1.400,000
1.253,000
2012/13 Proposed Work Plan and Budget IVIt:;:>::~u~~t)'
September 12,2012
An analysis was performed to determine what the impact on tax revenue would with
further millage reductions. following table illustrates millage rate for reducing
the operating property tax revenue by $1 million as well as the impact of reducing the millage to
the roll-back rate.
Proposed Proposed Proposed "lu;su~~u Proposed Proposed
General
Fund ·Renewal & Operating Debt Total Changeln
Millage Replmnt Millage Millage Millage iotaiMHiap
Revenue Impact Rate Rate Rate Rate Rate Rate
Decrease of $1 million from GF
revenue at proposed mmage rate $ 1,000,000 £.0039 0.1083 6.1122 0.2568 6.3600 0.0$33
Reducing millage rates would also
$1,640,000 respectively for the two
revenues to the Redevelopment District by $180,000 and
Enterprise Funds are comprised Sanitation, Water, Sewer, Stormwater, Convenrion
Departments. The Proposed FY 2012/13 Funds Budget is 61.1 million. . This
represents an $4.4 million (2.8 percent] from the FY 1 /12 budget of $156.7 million,
primarily to:
• in pension and health cost similar to described in the General Fund,
although in the Sanitation Department Proposed Budget incorporated reduced personnel costs
and use of temporaries on historical information ($2.1 million)
• Increases in treatment and DERM charged by Miami-Dade County {$4.6 million) -
with sewer revenues by the City
• in funding for future and replacement and equipment which is
determined by year depredotion amounts ($2.2 million)
inr'r""n""'"" area offset by decreases in service payments by the Stormwater Fund ($2
million}as debt service for bonds sold in 2011/12 along with the associated refinancing of
existing resulted in lower than debt reduced operating costs in the
Convention offset by revenues due to an treatment change of l:!lll'>l~rnr
revenues ($1 million); reduced funding to be for the Stormwater Rate
Stabilizotion Fund ($1 million); and other miscellaneous reductions ($0.3 mil!ion).fee impact is 37
cents household month.
160
FY 12/13 Proposed Work Plan and .......... M"'' Message
September 1 2012
Page 29
Internal Funds are comprised of Management, Information
Technology, Risk Management and Management Divisions. The Proposed 2012/13
Internal Fund is $59.3 million. This represents on increase of million (9.3
percent} from FY 20 ll/12 budget, primarily due to in salary, pension and health cost
to those in the General Fund as well as increases in Police liability ($.75
million}, and debt For replacement of vehicles and equipment ($1 .1 mHiion). These costs ore
allocated to the General Fund Enterprise Fund departments, and Risk
Fund reimburses General Fund for the cost of legal services.
2012/13 Resort Tax budget is $54.2 million, an increase million !14
FY 2011/1 This the continued in resort tax revenues, consistent
indicators throughout the County, but especially in Miami Beach. Of the
• $4 million is transferred to the Fund For tourism-related services by
General Fund departments foro total of $30.47 million.
• $0.72 million is to increase funding for Memorial Day and Spring Break to
deployed in FY 2011/12 as well as provide enhanced holiday decorations
• $0.05 milliqn is for the contractual adjustment in the transfer to the Miami
Convention and Visitors Bureau, for a total of $5.31 million.
• $0.39 miJiion and $0.30 million ore transferred for quality of life capitol .......... .,.,r·rc:
arts and the Miami Beach Visitors Convention Authority based on funding
total of mi[lion $2. 11 million, respectively.
The Debt $0.38 million from $5.52 million to $5.90 million, and
by $0.10 million
Further, $100,000 continues to funded for a Miami marketing $83,000
for tourism related economic development activities in North Beach. In addition $148,000 was
added in FY 2012/13 for a Washington Tourism Enhancement Initiative; and $100,000
towards attracting a moior event such as Miss USA pageant places $.48 in
contingency.
Although development of our budget this year been challenging, through rigorous review
and good leadership, Work Plan and Budget for FY 12/13 is balanced and
enables the City of Miami to continue delivering outstanding, enhanced services to our
residents, businesses visitors, providing relief in our Funds, and
structural enhancements to ensure the sustoinobility the
161
2/13 Proposed Work Plan and Budget Message
12,2012
In summary, the Proposed FY 2012/13 General Fund operating budget maintains current service
priorities for the community, despite property tax rates set at 1 .3 mills (17 percent) lower than FY
2006/07. Further, I am also recommending keeping water, sewer, and stormwater rates other
than the sewer pass through for in the Miami-Dade County wholesale sewer rate.
The development of this Proposed Work Plan and and
the Commission as we sought to balance a budget in spite increases, particularly in
the Fire Police Pension system, as well as a significant increase in health insurance. I would
llke to thank Mayor Matfi Herrero Bower, and Members of the Miami Beach City Commission,
for your continued support and leadership with the budget and in helping to
accomplish so much on behalf of our residents and for the entire Miami I would
also like ro recognize those bargaining units that previously agreed to employee so
we can to personnel costs as well as our employees for continued
commitment ro the City1 s of providing excellent public and working so hard to help
accomplish so many results that benefit the community despite the challenges and
uncertainty of the post ., .. v ... rnl
Finally, I would like to all throughout City who worked so hard to identify
opportunity for cost reductions in their departments 1 as well as itemize altematives with a
range service impacts to meet the required cost reductions. I would particularly like to thank my
Assistant Chief Financial and all Department and Division Directors. I
appreciate towards a reduced budget that still allows us to accomplish
our goals. In like to recognize and thank Tim Finch, Budget Officer; Dr. leslie
Rosenfeld, Director Organizational Development, Daniels, Glen Hall, Tameka
Stewart, and Rodriquez, Management Analysts; and Office Jennifer
White.
Interim
162
Pension Internal Service CSL with Pension and Internal Service Alloactlons (rounded to the Addtl. Efficiency
1il.i:lll$l$ 0" :~.w.m CSL with Pension and Internal Service :It In addition, In FY 2009/10 there are 23 Police and Property Management poa!tlona budgeted In the City Canter RDA and 19.6 FT po<lona budgeted through grants and spacial revenue funds. The FY 2010111 Proposed Budgat for the RDA mcommends reducing 1FT positions trhough efflclancela and 4FT posith -in Exllibi!~>S • D. -~he City Center RDA budget also lnc:ludoa the reduc:tion of 1 full time position u pert of minimal service
EXHIBITS
POSITIVE IMPACT OR MINIMAL SERVICE IMPACT, EFFICIENCIES, ETC.
D
Community Policing Reconfiguration-Eliminate 1 Police Commander in
Technical Svcs plus 1 Administrative Aide I position in CID and repla
with 3 Crime Analyst positions
ency Manager from full-time to part-ti
· · n to be vacated 1/1/13)
Replace CAC supplemental funding from General Fund wilh an increase in
of Life Fundin (estimated increase of $200,000 from FY12 to FY13)
Total General Fund Without Transfers
Total General Fund
INTERNAL SERVICE FUNDS
165
LFUND
.t'&lministralive Al<le l am:!~ wi!A aR 4 OfliGe
~level ef Administrative~~ by
SIGN SHOP & METER SHOP UNITS -Convert 1 Parking Operations
upervisor from full time to part time. No decrease in Level of Service
SIGN SHOP & METER SHOP UNITS -Convert 1full-time Meter Tech II
and 1 full-time Meter Tech I TO 3 PT Meter Tech Is No decrease in Level
of Service
FORCEMENT -Convert 3 fu!f-tlme Pkg Enforcement Specialfs! Is to 4
part-time Pkg Enforcement Specialist Is. No decrease in level of Service
OTHER FUNDS
period for newly hired unclassified employees enrolling
s this is the same as what currently exists for newly hired
166
GENERAL FUND
Police
!i~m;l$ 4 ~ ~ Qlf")M & 4 ~ ~ ~ ~ ~-'*'
i!~ {() 11>e puhll<l elemoo!ary arul mkWla &ll!mels in Miami Se&lli-h Elimii1Slioo will r-esult m nq
~ belf>!l a~ w !he pllbtiG ooheelll in Miami Eaooh-; wtllllh ~ads-!e, a weaterj
di~<Wi!hi<HhlHl{)WIWII.ffii\~~
167
$
EXHIBITD
POTENTIAL REVENUE ENHANCEMENTS
GENERAL FUND
Pollee
consistent with Miami-Dade County which is to not start charging the
iolation. and havin it raise with additional violations and ca ed $500.
Fire
Increase Fire Transport Fees to Miami Dade County Levels for FY 12012113 and
add charges similar to Hialeah and Coral Gables
SERVICES AND TRANSPORT
ED liFE SUPPORT (ALS)
jsl>EC1Al1YCARE TRANSPORT (ALS SCT)
ai\51C LIFE SUPPORT (BLS) TRANSPORT
BACKBOARD
CAAl>lAC MONITOR!~
CERVICAL COLLAR
NsoUJTIONS
PROCEDURES AND EQUIPMENT
MILEAGE: PER MILE OR I'RACT!ON
OXYGeN PER TANK OR FRACTION
SPECIAL HANDLING (EXTRICATION, ETC.)
ecreation
Miami Beach M!aml-Dade
N!A N!A
$600.00 $00(1.'00
$600.00 $600.00
$tl00 $900.00
$500.00 $800.00
$25.00 $2$.00
$25.00 $25.00
$21Hl0 $25.00
$25.00 $25.00
$1l:LOO $15.00
$$0.00 $$0.00
$25.00
Increase Staff Rental Rates. Example below show est. rental revenues collected in FY11 & compare them to
est proposed rates for the total est increases in revenues. Staffing: $63,000 est. collected in FY 11;
Proposed 40% increase (from $25 to $35 p/hr) in FY 13 is $88,000. Difference (Est. Revenue Increase)=
Prop!>sed Increase in Resident Nor!h Shore Open Space Pavillon :Rental Rates. Examples below show est
rental revenues collected In FY11 & oomparatl to est. proposed rates for the total estimated increases in
revenues.
Pavillom;; $21,000 est. collected in FY 11: Proposed 100% increase (from $75 to $125) in FY 13 is $35,000.
Difference st Revenue lncrea~ "'$14,000
uce events charging 30% of ticket sales rather than theatre and equipment rental
168
Fiscal
Impact
$25
Cumulative
Department Cumulative
Impact
$ 199000
238000
TOTAL
POTENTIAL
GENERAL
ND
I Living Wage -existing contracts with living wage
Living wage -potential impact for expiration of current golf course management agreement
1$150,000-pending contract negotiation/re-bid)
Additions Since FY 2011/12 Budget
Locations added to the Parks & Recreation's Greenspace Management Division's areas of
responsibility after the completion of the budget process with additional costs identified at the
following locations:
CITYWIDE MOWING:
o Dickens & Tatum Waterway 21 Bumpouts & Medians (CIP)-$22,140
o Bonita Drive South -$768
o North Shore Park & Youth Center (Sports Field) increase for Bermuda -$34,001
• Miami Beach High School Swale, Dade Blvd N. to Par 3-$7,350
o Hibiscus Island Hurricane Evacuation Site -$2,250
GROUNDS MAINTENANCE:
o Flamingo Neighborhood Streetscape Swales & Bumpouts -$3,500
o Washington Avenue Dog Park Increase-$1,250
• Normandy Business District (FDOT/CIP) -$3,000
o 71 st Street Sidewalk Planters (FDOT/CIP)-$6,000
In addition the following will be added to the RDA budget .
Bass Museum (Renovated Site) CITY CENTER /RDA $8,100
o Soundscape Park Special Events (additional service required to facilitate the 38 plus events
held at this Park: Movies, Wallcasts, Opera Nights, etc)-$19,200
Total Additions
Internal Affairs Reorganization -Add 1 Investigator Supervisor and eliminate a Major position
after 5 months in FY 2012/13 through attrition-currently the Police Department has one
Lieutenant position underfilling a vacant Major position due to Reorganization --when a
lieutenant is vacated in Februa 2013, the Ma or position can be eliminated.
Add 2 ATV Police Officers in the North area working 2200 to 0800 hours (10pm to Bam) to
implement and enforce the beach closure. This number has been refined to exclude new
vehicles, fuel, maintenance and depreciation costs for the additional Police Department
union positions being proposed, as they will not impact the FY 2012113 budget. These
vehicle costs of $16,200 will im subs ent ars.
4 Police Officers in the South and Citywide to form an additional Crime Suppression Team
gaan! for the squad would be assigned from the lA reorg). This enhancement will be offset
by the elimination of $100,000 in overtime. This number has been refined to exclude new
vehicles, fuel, maintenance and depreciation costs for the additional Police Department
union positions being proposed, as they will not impact the FY 2012113 budget. These
vehicle costs of $152,400 willlm ct subs uent ars.
Add 1 Detention Officer to augment current staffing levels in all three shifts including weekends.
This number has been refined to exclude new vehicles, fuel, maintenance and
depreciation costs for the additional Police Department union positions being
proposed, as they will not impact the FY 2012113 budget. These vehicle costs of $38,100
will im act subse uent ears.
hancement-additional Records Technician and Data Entry Clerk will reduce
nit by $00,000.
ei hbomooo Resource Officer for additional Homeless Outreach
169
62,000
62 000 t--i--TBD
81 000 81,000
43000 I I
50 000 50,000
50,000
165,000 215,000 2.0
4.0
Bulldln
Increase temporary labor to provide support in the violations section of department to become
construction without permits and unsafe structures.
contractor to revlew/a!.idlt one area of the city's operations per year , ClP
for FY 2013.
mln!um OmbUdsman -reassign duties ro utilize existing
d
Reinstate Festival of the Arts
I Information Technology Funding For Automated Vehicle L
Recreation vehicles, additional Fire vehicles and Public W
ICE FUNDS
roject Coordinator/Business Analyst to facilitate the review of business process
requirement and data gathering for departments in order to identify technoly improvements,
focusln on customer solutions.
170
(),!)
UNDS
g contracts with living wage in Public Works Stormwater, Sewer,
Convention Center
Water
AVl Furniin for Public Works Water Vehicles
Stormwater
AVL Fundin for Public Works Stormwater Vehicles
Total Enter rise Funds $
)Grand Total All City Funds
e
6am, allowing for
Lincoln Road Mall Manager /"Point Person"-reassign duties to utilize existing
1 LlriCOIIn K1oad Tourism Enhancement Initiative-Increased pressure cleaning from bi-weekly to
1 MSW I & 1 MSWI!; includes $34,000 for vehicle & equipment costs
Locations added to the Parks & Recreation's Greenspace Management Division's areas of
responsibility:
In the RDA
• Bass Museum (Renovated Site) CITY CENTER /RDA $8,100
• Soundscape Park Special Events (additional service required to facilitate the 38 plus events
held at this Park: Movies, Wallcasts, Opera Nights, etc) -$19,200
lTotaiRDA
Resort Tax
!Total Resort Tax
Overtime for Spring Break and Memorial Day Weekend consistent v.1!h
FY 2011/12
171
0
0
83000
s1M,ooo I s a:J,ooo I 2.o I o.o I
Enhance the environmental sustainability of the community through comprehensive citywide
RecycHng Program • First
year includes an intensive educa!lon and outreach campaign and after six months, beginning
January 2013, warnings wll! be issued • Sustalnabllity
Officer wlll be responsible for conducting outreach, mcycllng guidance, and If naceseary, Issue
warnings, • Once !he Recycling
Program has bean Implemented, the Sustainab!!ity Officer can address other sustainabl!lty
issues (greening restaurants. etc), • Administration wm go
back to Commission before Issuing fines. • Enhancement funded from
the Waste haulers Additional Services an Public Benefit Fund
!Total Sustainabillty
172
95,000 95,000 1.0
ses,lloo I ~Sss,ooll I u I (to I
ATTACHMENT 2
LISTING OF POSITIONS VACANT AND NOT FILLED BY CONTRACT OR
TEMPORARY
as of 7/23/12; updated for Proposed Efficiency Reductions & Recent Hires
Position Name
ERAL FUND
Performance Improvement
OBPI
OBPI ement Consultant
Code Com liance liance Administrator
Code Com liance Code Com liance Officer
Code Com liance Code Com liance Officer -PT
Human Resources/Labor HR Assistant Director
r I PT Year Round
Real Estate, Housing and
Community Dev incl. Office
of Communi Services Administrative Aide I
Total General Fund
173
Number of
Positions
1
1
1
1
1
1
1
1
5
3
1
1
1
1
1
1
1
1
30
Number of
Months
Vacant
10
2 69,394
31 200
RESOLUTION NO., _____ _
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FINAL
BUDGETS FOR THE GENERAL, G.O. DEBT SERVICE, RDA AD
VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE
FUNDS FOR FISCAL YEAR 2012/13
WHEREAS, the Manager's proposed General Fund operating budget released
September 7th, 2012 was $256,975,000 and the total proposed operating budget for FY 2012/13
was $441 ,376,000 including the General Fund, General Obligation Debt Service, Enterprise Funds
and Transfers to the Redevelopment District; and
WHEREAS, during the first public hearing on the FY 2012/13 budget the City
Commission approved to further reduce the millage for FY 2012/13 from 6.1122 to 6.0909 reducing
the surplus by $400,000, rather than reducing employee givebacks from $3.0 million to $2.6 million
and recognizing a reduction in the citywide budget as a result of reducing Building Development
process fees, thereby reducing the General Fund budget to $256,280,000 and the total operating
budget to $440,614,000; and
WHEREAS, the $3 million in employee givebacks in the General Fund partially
offsets the $7.3 million increase in pension and health costs; and
WHEREAS, the tentatively adopted General Fund budget includes $932,000 in
efficiencies; brings in an additional $4 million in Resort Tax revenues to the General Fund to offset
tourism-eligible expenditures, and includes increases in revenues for Police false alarm fees, rental
rates for Parks & Recreation, and minor increases in service fees at the Colony Theater; and
WHEREAS, the General Fund tentatively adopted budget includes additions for
living wage and operating costs associated with bringing capital projects on line, Building service
enhancements offset by increased Building service revenues (due to increased demand); and $2.85
million in enhancements as a return on taxpayer value for $4 million in increased property taxes; and
WHEREAS, the FY 2012/13 tentatively adopted General Fund budget is about $20
million (8 percent) more than the FY 2006/07 budget despite pension contribution increases of $29
million during the same period, and 15 percent inflation from October, 2006 through June, 2012; and
WHEREAS, the tentatively adopted budget for Internal Service funds, which are
wholly supported by transfers from the General Fund, Enterprise Funds and the Redevelopment
district, is $59,328,000, including additions and enhancements totaling $153,000 and efficiencies of
$30,000; and
WHEREAS, the tentatively adopted budget for Enterprise Funds is $161 ,088,000
including potential additions and enhancements totaling $417,000 offset by efficiencies of $196,000;
and
WHEREAS, the proposed General Fund budget increases $11.9 million over FY
2011/12, primarily due to personnel cost increases (although offset by employee givebacks),
increased internal services charge backs including Police liability claims and increases in debt service
for replacement of vehicles and equipment, as well as proposed additions and service
enhancements; and
174
NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City of Miami Beach hereby
adopts final budgets for the General, G.O. Debt Service, RDA Ad Valorem Taxes, Enterprise, and
Internal Service Funds for Fiscal Year 2012/13 as summarized and listed below:
Revenue Summary
by Fund and Major Category
G.O. DEBT INTERNAL
REVENUES GENERAL SERVICE RDA ENTERPRISE TOTALS SERVICE
GENERAL OPERATING REVENUES
Ad Valorem Taxes $ 102,171,000 $ 102,171,000
Af Valorem • South Pointe Costs 10,296,000 10,296,000
Ad Valorem • Capital Renewal & Repl. 1,850,000 1,850,000
Ad Valorem Taxes-Normandy Shores 129,000 129,000
Other Taxes 24,023,000 24,023,000
Licenses and Permits 20,033,000 20,033,000
Intergovernmental 9,827,000 9,827,000
Charges for Services 10,668,000 10,668,000
Fines and Forfeits 2,199,000 2,199,000
Interest 2,983,000 2,983,000
Rents and Leases 6,464,000 6,464,000
Miscellaneous 11,830,000 11,830,000
Other/ Resort Tax Contribution 39,497,000 39,497,000
Reserves-Buildiing Dept Operations 1,500,000 1,500,000
Prior Year Set Aside for Pension Credit 2,210,000 2,210,000
FY 09 Surplus Set Aside 3,400,000 3,400,000
Prior Year Surplus From Parking Op Fund 7,200,000 7,200,000
Sub-total $ 256,280,000 $ 256,280,000
G.O. DEBT SERVICE FUND
Ad Valorem Taxes $ 5,630,000 $ 5,630,000
Other $ 298,000 $ 298,000
Sub-total $ 5,928,000 $ 5,928,000
FUND TOTAL $ 256,280,000 $ 5,928,000 $ 262,208,000
RDA FUND-City TIF only
AD VALOREM TAXES
Property Taxes-RDA City Center (net) $ 17,318,000 $ 17,318,000
FUND TOTAL $ 17,318,000 $ 17,318,000
ENTERPRISE FUNDS
Convention Center $ 12,702,000 $ 12,702,000
Parking 47,657,000 $ 47,657,000
Sanitation 17,302,000 $ 17,302,000
Sewer Operations 37,465,000 $ 37,465,000
Storm Water 11,926,000 $ 11,926,000
Water Operations 34,036,000 $ 34,036,000
FUND TOTAL $ 161,088,000 $ 161,088,000
INTERNAL SERVICE FUNDS
Central Services $ 906,000
Fleet Management 9,700,000
Information Technology 16,366,000
Property Management 8,862,000
Risk Management 23,494,000
FUND TOTAL $ 59,328,000
TOTAL ALL FUNDS $ 256,280,000 $ 5,928,000 $ 17,318,000 $ 161,088,000 $ 440,614,000 $ 59,328,000
175
TOTAl EXPENDITURES BY FUND AND DEPARTMENT
Fiscal Year 2012/13
G.O. DEBT INTERNAL
FUNCTION/DEPARTMENT GENERAL SERVICE RDA ENTERPRISE TOTALS SERVICE
MAYOR & COMMISSION $1,648,000 $1,648,000
ADMINISTRATIVE SUPPORT SERVICES $14,187,000
CITY MANAGER 2,313,000
Communications 893,000
BUDGET & PERFORMANCE IMPROV 2,160,000
FINANCE 4,426,000
Procurement 1,063,000
Information Technology 16,366,000
HUMAN RESOURCES/LABOR RELATIONS 1,827,000
Risk Management 23,494,000
CITY CLERK 1,505,000
Central Services 906,000
CITY ATTORNEY 4,318,000 $4,318,000
ECONOMIC DEV. & CULTURAL ARTS $32,107,000
Economic Development
REAL ESTATE, HOUSING & COMM. DEV. 2,498,000
BUILDING 10,985,000
PLANNING 3,419,000
Cultural Arts
TOURISM & CULTURAL DEV 2,503,000
CONVENTION CENTER 12,702,000
OPERATIONS $193,194,000
CODE COMPLIANCE 4,647,000
PARKS & RECREATION 28,772,000
PUBLIC WORKS 6,548,000
Property Management 8,862,000
Sanitation 17,302,000
Sewer 37,465,000
Stormwa!er 11,926,000
Water 34,036,000
CAPITAL IMPROVEMENT PROJECTS 4,841,000
PARKING 47,657,000
FLEET MANAGEMENT 9,700,000
PUBLIC SAFETY $157,205,000
POLICE 94,963,000
FIRE 62,242,000
CITYWIDE ACCOUNTS $10,836,000
CITYWIDE ACCTS-Normandy Shores 187,292
CITYWIDE ACCTS-Operating Contingency 1,000,000
CITYWIDE ACCTS-Other 4,038,708
Carryforward from Prior Year Set Asides 5,610,000
Transfers $2,014,000
Capital Investment Upkeep Fund 219,000
Info & Comm Technology Fund 395,000
Pay-as-you-go Capital 1,400,000
CAPITAL RENEWAL & REPLACEMENT 1,859,000 $1,859,000
G.O. DEBT SERVICE 5,928,000 $5,928,000
RDA-City TIF Transfer only
City Center 17,318,000 17,318,000
TOTAL-All FUNDS $256,280,000 $5,928,000 $17,318,000 $161,088,000 $440,614,000 $59,328,000
176
PASSED and ADOPTED this 27th day of September, 2012.
ATTEST:
CITY CLERK
177
MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
/'')
/ j
I
Date
~~!iE f THURSDAY,
MiamiHe(a!d.com I MIAMI HERALD
lA
CITY OF MIAMI BEACH
NOTICE OF A SPECIAL
·CITY COMMISSION MEETING AND PUBLIC HEARINGS
-oL .,_,,..,_
NOTICE IS HEREBY given that a Special Commission Meeting regarding the Second Public Hearings to consider the adoption of the Millage
Rate and Budget for FY 2012/2013 will be held by the City Commission of the City of Miami Beach, Florida, on Thursday, September 27,
2012, commencing at 5:00p.m., in the Commission Chambers, 3rd Floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida.
5:01p.m.
THE SECOND PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE MILLAGE RATES AND BUDGETS FOR FISCAL YEAR (FY)
2012/2013 FOR THE CITY OF MIAMI BEACH. .
5:02p.m.
THE SECOND PUBLIC HEARING TO CONSIDER THE ADOPTION OF THE OPERATING MILLAGE RATE AND BUDGET FOR FISCAL YEAR
(FY) 2012/2013 FOR THE NORMANDY SHORES LOCAL GOVERNMENT NEIGHBORHOOD IMPROVEMENT DISTRICT.
In addition, the City Commission may be discussing other City related bu.siness at this meeting.
Inquiries concerning this meeting should be directed to the Office of Budget and Performance Improvement at 305.673.7510.
INTERESTED PARTIES are invited to appear at this meeting, or be represented by an agent, or to express their views in writing addressed
to the City Commission, c/o the City Clerk, 1700 Convention Center Drive, 1st Floor, City Hall; Miami Beach, Florida 33139. Copies of these
items are available for public inspection du'ring normal business hours in the City Clerk's Office, 1700 Convention Center Drive, 1st Floor,
City Hall, Miami Beach, Florida 33139.
Rafael E. Granado, City Clerk
City of Miami Beach
Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that: if a person decides to appeal any decision made by the
City Commission with respect to l1,ny ·matter considered at its meeting or its hearing, such person must ensure that a verbatim record of
the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. This notice does not
constitute consent by the City for the introduction or admission of otherwise Inadmissible or irrelevant evidence, nor does it authorize
challenges or appeals not otherwise ailow~d by law.
To request this material in accessible format, sign language interpreters, information on access for persons with' disabilities and/or any
accommodation to review any document or participate in any City-sponsored proceeding, please contact us five days in advance at
305.673.7411 (voice) or TTY users may also call the Florida Relay Service at 711.
Ad II 726' , .
178