FY 13-14 Proposed Millage and Operating Budget 9-30-13 2nd PH FY 2013/14 Proposed Millage
and Operating Budget
September 30, 2013
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General Fund 5.7551 mills
Renewal & Replacement 0.1083 mills
Operating Millage Rate 5.8634 mills (6.0909 FY 2012/13, 0.2275 decrease)
G.O. Debt Service 0.2529 mills (0.2568 FY 2012/13, 0.0039 decrease)
Total 6.1163 mills (6.3477 FY 2012/13, 0.2314 decrease)
Operating Millage Rolled-
Back Rate
5.5158 mills
Setting Final Millage Rates:
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•FY 2010/11 rate increase of 0.56 mills to help offset $32 million deficit
•From 5.6555 to 6.2155
•Proposed Goal: Reduce millage rate to 5.6555 as property values rise
•Millage reductions to date represent 63 percent of the goal
•FY 2011/12: 0.05 mills
•FY 2012/13: 0.0746 mills
•FY 2013/14 (Proposed): 0.2275 mills
•Total to date is 0.3521; 0.2079 remains
•Each 0.05 mill is approximately $1 million
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Operating millage rates remain almost 1.5 mills or 20% lower than FY 2006/07.
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Total Millage Reduced 0.2314 mills
FY 06/07 FY 12/13 FY 13/14 Inc/(Dec)
From
FY12/13
From
FY 06/07
Operating 7.1920 5.9826 5.7551 -0.2275
Capital Renewal & Replacement 0.1820 0.1083 0.1083 0.0000
Sub-total Operating Millage 7.3740 6.0909 5.8634 -0.2275 -3.7%-20.5%
Debt Service 0.2990 0.2568 0.2529 -0.0039
Total 7.6730 6.3477 6.1163 -0.2314 -3.6%-20.3%
City of Miami Beach Millage Rates
% Inc/(Dec)
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Budget development process
•Finance & Citywide Projects Committee Meetings
•July 8, 2013
•July 10, 2013
•August 21, 2013
•August 22, 2013
•Regular Commission Meeting
•July 17, 2013
•Budget Workshop
•September 23, 2013
•Commission Budget Hearings
•September 11, 2013 – First Public Hearing
•September 30, 2013 – Second Public Hearing
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Increase in certified values
•6.9 percent Citywide and 6.8 percent outside the City Center Redevelopment
Area – as compared to a 5 percent increase Citywide last year
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Budget workshop held on September 23, 2013
•Commission discussed reducing the millage rate by 0.0275
mills to 5.7551 mills
•In the General Fund, the Commission recommended the
proposed efficiencies of $617,000, proposed revenue
enhancements of $370,000, and $365,000 of the $1,683,000
in proposed enhancements, with the balance of $1,318,000
set aside in a reserve for future consideration
Changes made after First Public Hearing
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•Original FY 2013/14 General Fund Current Service Level (CSL)
budget gap of $4.9 million as of July 8, 2013
•CSL gap has since been updated to $1.9 million due to:
•Employee givebacks from union agreements resulting in a
net $4.6 million savings
•Millage rate decrease of 0.2 mills resulting in a reduction of
property tax revenue of $4.0 million
•Adjustments to revenues and expenditures for a net $2.3
million in additional revenue
CSL budget gap
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•Proposed efficiencies resulting in $617,000 of savings
•Proposed service level enhancements totaling $365,000
•Additional $1,318,000 set aside in reserves
•Changes resulting in $3.0 million of additional revenue
Approaches to balance $1.9 million gap in General Fund
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Proposed efficiencies resulting in $617,000 of savings
•Re-scope the Municipal Wi-Fi Project ($323,000)
•Eliminate payout option for Executive Planning Days ($128,000)
•Eliminate two vacant positions ($110,000)
•Offset 50 percent of an existing position to absorb Lincoln Road
Mall Manager duties ($56,000)
Approaches to balance $1.9 million gap in General Fund
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Proposed Service Level Enhancements of $365,000
•$157,000 in the Police Department to add seven dispatcher positions
to ensure continuity of operations
•Includes offsetting reduction in overtime of $199,000
•$208,000 for the creation of a “Green Team” to provide a higher level
of regulation of commercial grease traps in the city offset by revenues
generated from a new permit fee
Approaches to balance $1.9 million gap in General Fund
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Changes in revenue resulting in $3.0 million of additional revenue
•Additional millage rate reduction of 0.0275 ($550,000 less)
•$2.0 million increase in resort tax transfer for tourism eligible expenditures
•New permit for a higher level of local regulation of grease traps ($210,000) –
offset by costs for new “Green Team”
•A new false alarm fee in fire and updated false alarm fees in Police consistent
with Miami-Dade County ($106,000)
•Increase in fire inspection and fire prevention fees for code compliance in
nightclubs and other assembly occupancies ($36,000)
•New commercial fitness rental permit fee for businesses using city
parks/property for fitness classes ($18,000)
•$1.2 million increase in parking fund transfer
Approaches to balance $1.9 million gap in General Fund
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•Historically, the General Fund budget has increased between 6 and 8
percent annually, primarily due to increases in salary and benefit costs
•Proposed General Fund Budget reflects a $7.8 million or 3.0 percent
increase
•The proposed General Fund operating budget is only 7 percent more
than in FY 2006/07 in spite of 16 percent growth in CPI, 127 percent
growth in pension costs, and many new facilities and projects coming
on line
•The proposed property tax levy is approximately $25 million less than
in FY 2006/07
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Impact of Proposed Millage Levy
on Homestead Properties
Median Average Median Average
2012 Preliminary Taxable Value 122,582$ 295,315$ 124,666$ 300,335$
City of Miami Beach
Operating 747$ 1,799$ 731$ 1,761$
Voted Debt 31 75 32 76
Total Miami Beach 778$ 1,874$ 763$ 1,837$
$ Change in Taxes
Operating (16)$ (38)$
Voted Debt 1 1
Total Miami Beach (15)$ (37)$
* Source: Miami-Dade County Property Appraiser's - 2013-average-median-homestead-residential-
values file
FY 2012/13
FY 2013/14
with 1.7% CPI
Homesteaded Properties
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•The annual increase in market value of a non-homestead
property is capped at 10 percent
•Does not apply to school millages
•The city-wide average increase in property values is 6.9 percent
•The property value of individual properties may increase more
or less than 6.9 percent, but not more than 10 percent
•Because of the decrease in the proposed millage rate of 0.2039,
the taxable value of a property would have to increase by more
than 3.6% to pay more property taxes to the City than last year
Impact of Proposed Millage Levy
on Non-Homestead Properties
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Sanitation, Water, Sewer, Stormwater, Parking, and Convention Center
$160.8 million - $0.3 million decrease (0.2 percent)
•Increases in salary and health cost similar to the General Fund
•Increases in pension due to the continued recognition of investment
losses from 2008, which are recognized over five years
•Increases in funding for future renewal and replacement projects and
equipment determined by prior year depreciation amounts
•Offset by decreases in water and sewer treatment DERM fees,
decreases in Internal Service charges, debt service reduction in water
and sewer
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Central Services, Fleet Management, Information Technology, Risk
Management and Property Management
$75.5 million - $16.1 million increase
•Primarily due to a different accounting treatment of $15.8 million for
medical and dental benefits that was previously not appropriated in
the budget
•Increases in salary, pension, and health costs similar to the
Enterprise funds
•Costs are completely allocated to the General and Enterprise Fund
departments
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Authorization for Overtime Expenditure
•Discussed at budget workshop on September 23, 2013
•Concern regarding ability of departments to exceed authorized overtime
budgets
•Requested that the City Manager present a mechanism of adopting the
budget so departments are not able to exceed authorized overtime
budgets without Commission approval
•Beginning in FY 2013/14, overtime expenditures over and above
authorized budget amounts will require approval by the City Commission
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Next Step
•Beginning of the FY 2013/14 Fiscal Year
•October 1, 2013