C6A-Report- Special Finance And Citywide Projects Committee Meeting Of July 8 20(9 MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeochfl.gov
COMMITTEE MEMORANDUM
TO: Mayor Matti H. Bower and Membe
FROM: Jimmy L. Morales, City Manager:-----
DATE: September 11, 2013
SUBJECT: REPORT OF THE SPECIA FINANCE AND CITYWIDE
PROJECTS COMMITTEE MEETI G ON JULY 8, 2013
The agenda is as follows:
OLD BUSINESS
1. Update on potential municipal marketing partnership for Sunscreen
Licensing deal or Sponsorship with Energizer
ACTION
The Committee recommended only pursuing the licensing agreement with
BL3 Holdings where the upside is greater.
Tourism and Cultural Development Director Max Sklar presented this item.
Tourism and Cultural Development Director Max Sklar stated that the City has
been involved in efforts to maximize its strong brand presence by partnering with
corporate entities in a manner that generates good publicity and marketing for
the City, while at the same time generating revenue or providing savings to the
City. He then went on to give a brief explanation of both the negotiation with
Energizer, and then the negotiations with BL3 Holdings.
The Committee recommended only pursuing the licensing agreement with BL3
Holdings where the upside is greater.
NEW BUSINESS
1. Discussion: Status Update on FY 2013/14 General Fund Operating
Budget
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Agenda Item C G;. A
Date IJ-11-13
ACTION
The Committee requested that all questions be directed to Assistant City Manager
Kathie Brooks before the next meeting so that all request can be addressed.
Assistant City Manager Kathie G. Brooks presented this item.
Assistant City Manager Kathie G. Brooks began with a summary of the FY
2013/14 Current Service Level (CSL) budget for the General Fund. This
summary shows the current year's FY 2012/13 budget and compares it to the FY
2013/14 CSL budget. The CSL budget reflects budget increases or decreases
necessary to provide the current level of services in the coming year. In total,
revenues are expected to increase by $6.1 mIll ion for FY 2013/14 principally due
to increased property tax as a result of higher property values as well as
increased licenses and permits revenue offset by decreases across a number of
categories. Chairperson Deede Weithorn stated, over the summer, there will be
a reconciliation of the Building Department related revenues versus expenditures
which may or not be available to offset the projected gap in the General Fund.
Ms. Brooks then stated that on the expenditure side, CSL expenditures typically
have increased between 6 percent and 8 percent annually due to salary and
benefit increases and other normal cost of living adjustments. However, FY
2013/14, increases are estimated to result in an approximately $11.0 million (4.3
percent) increase in expenditures, similar to the FY 2012/13 CSL increase of 4.6
percent. The resulting gap between General Fund CSL expenditures and CSL
revenues as of the July 1, 2013 Certified values is approximately $4.9 million.
Ms. Brooks went on to discuss the Millage Levy. The first building block in
developing a municipal budget is the establishment of the value of one mill of
taxation, wherein the mill is defined as $1.00 of ad valorem tax for each $1,000 of
property value. For the City of Miami Beach, the value for each mill is
determined by the 2013 Certification of Taxable Value and has been set at $24.6
million. Florida Statutes permit a discount of up to five percent for early payment
discounts, delinquencies, etc. Therefore, the 95 percent value of the mill is $23.4
million. Net of Center City RDA tax increment available to the General Fund, the
value of one mill at 95 percent is $20.0 million. As with the preparation of
budgets for the last five years, departments are continuing to analyze and
present their budget from two perspectives: 1) a review for potential efficiencies,
reorganizations to reduce cost, etc. without impacting services; and 2) performing
a modified zero-based analysis of each department budget, identifying potential
service reduction alternatives versus core functions. Given the extensive
reductions in recent years, it's not expected there will be significant cost
reductions through efficiencies and service reductions. One of the priorities for
cost reduction categories under consideration is reform of the Fire and Police
pension plan. Commissioner Jorge Exposito requested to see a list of those
positions that have been vacant more than 6 months and an estimation of resort
tax revenue. Chairperson Weithorn stated her concern in regards to the water
rate increases from Miami Dade County that also need to be discussed. The
Committee requested that all questions be presented to Assistant City Manager
Kathie Brooks before the next meeting so that all request can be addressed.
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2. Review of Budget Advisory Committee Recommendations for Health
Insurance Plans
ACTION
The Committee recommended not pursuing the BAC recommendation for
health insurance reform, and delaying the change for the renewal period
from calendar year to fiscal year until 2014. In addition they also agreed
that the City Administration should look at a way to equitably distribute the
City cost (in dollar amounts paid) throughout the five plans.
Assistant City Manager Kathie G. Brooks presented this item.
Assistant City Manager Kathie G. Brooks stated the Budget Advisory Committee
(BAC) reviewed the City of Miami Beach Self-Insured Health Care Insurance
Plans for active employees and retirees. The premiums paid by the City and its
enrolled active employees and retirees for health care insurance was discussed
by the Committee as a Whole as part of the Mayor's and Commissioner's
proposed budget for FY 2012/13. Director of Human Resources Sylvia Crespo-
Tabak and Human Resources Administrator Sue Radig provided a brief summary
of different Scenarios that Gallagher provided. Gallagher also provided the BAC
members with a synopsis of the City's five medical insurance plans, as well as
the plans' history from participating in a fully insured health care plan
implemented in the late 1980's, to the current self-funded plans that were
implemented in 2010. Gallagher representative Richard Schell stated the current
medical plans are projected to incur at least a 1 0 percent, or $1.7 million cost
increase for Fiscal Year 2013/14.
Commissioner Ed Tobin stated that employees should receive the best
healthcare available and there should be a discussion on developing a Wellness
Plan. Commissioner Libbin stated the plans should be fair to employees across
the board. The Committee recommended not pursuing the BAG
recommendation for health insurance reform, and delaying the change for the
renewal period from calendar year to fiscal year until 2014. In addition they also
agreed that the City Administration should look at a way to equitably distribute
the cost throughout the five plans.
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