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C7DD-Set Public Hearing Adopt Third Amendment To Budgets For FY 2012-13-------------------------------- COMMISSION ITEM SUMMARY Condensed Title: A Resolution setting a Public Hearing to adopt the Third Amendment to the General Fund, Enterprise Fund, Internal Service Fund and S eclal Revenue Fund Bud ets for Fiscal Year FY 2012/13. Key Intended Outcome Supported: Improve the City's overall financial health and maintain overall bond rating. Supporting Data: N/A Item Summary/Recommendation: The budgets for the General Fund, Enterprise Fund, Internal Service Fund and Special Revenue Fund for Fiscal Year 2012/13 were approved on September 27, 2012 with the adoption of Resolution No. 2012- 28014. The First Amendment was approved on April17, 2013 with the adoption of Resolution No. 2013- 28185. The Second Amendment was approved on September 30, 2013 with the adoption of Resolution No. 2013-28361. The Administration requests that the Mayor and City Commission set a public hearing to be held on November 25, 2013, to adopt the Third Amendment to the General Fund, Enterprise Fund, Internal Service Fund and Special Revenue Fund budgets for Fiscal Year (FY) 2012/13. The Second Amendment amended various department budgets that were projected to overspend their appropriation based on the third quarter projections. The additional expenses above budget were offset by reducing appropriation in other departments or by offsetting additional revenue. The Third Amendment, if needed, is intended to amend any budgets that overspend their appropriation following the close of the fiscal year. If no budgets overspend their appropriation, then the Third Amendment will not be necessary. Per Florida Statute 166.241, the City has 60 days following the end of the fiscal year to amend a budget for that year. The City of Miami Beach provides a wide range of municipal services including Police; Fire-Rescue; Parks and Recreation; Water, Sewer, Stormwater, and Sanitation; and Public Works. The City's annual operating budget allows us to address the needs of the community and includes: • The General Fund • General Obligation Debt Service Fund • Enterprise Funds • Transfers to the Redevelopment Agency • Other Special Revenue Funds The Administration requests that the Mayor and City Commission set a public hearing to be held on November 25, 2013, to adopt the Third Amendment to the General Fund, Enterprise Fund, Internal Service Fund and Special Revenue Fund budgets for Fiscal Year {FY) 2012/13. Financial Information: Source of Amount Funds ~ Cit Clerk's Office Le islative Trackin Assistant City Manager MIAMI BEACH 458 Account AGENDA ITEM DATE C7DD IO-{b-13 -·---------· ----------------------------- MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miomi Beach, Florida 33139, www.micmibeochA.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and M bers of ~mission FROM: Jimmy L. Morales, City Manager DATE: October 16,2013 rl SUBJECT: A RESOLUTION SETTING A ~UBLIC HEARING TO ADOPT THE THIRD AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY) 2012/13 ADMINISTRATION RECOMMENDATION Adopt the Resolution. KEY INTENDED OUTCOME SUPPORTED Improve the City's financial health and maintain overall bond rating. ANALYSIS The budgets for the General Fund, Enterprise Fund, Internal Service Fund and Special Revenue Fund for Fiscal Year 2012/13 were approved on September 27, 2012 with the adoption of Resolution No. 2012-28014. The First Amendment was approved on April 17, 2013 with the adoption of Resolution No. 2013-28185. The Second Amendment was approved on September 30, 2013 with the adoption of Resolution No. 2013-28361. The Administration requests that the Mayor and City Commission set a public hearing to be held on November 25, 2013, to adopt the Third Amendment to the General Fund, Enterprise Fund, Internal Service Fund and Special Revenue Fund budgets for Fiscal Year (FY) 2012/13. The Second Amendment amended various department budgets that were projected to overspend their appropriation based on the third quarter projections. The additional expenses above budget were offset by reducing appropriation in other departments or by offsetting additional revenue. The Third Amendment, if needed, is intended to amend any budgets that overspend their appropriation following the close of the fiscal year. If no budgets overspend their appropriation, then the Third Amendment will not be necessary. Per Florida Statute 166.241, the City has 60 days following the end of the fiscal year to amend a budget for that year. The City of Miami Beach provides a wide range of municipal services including Police; Fire- Rescue; Parks and Recreation; Water, Sewer, Stormwater, and Sanitation; and Public Works. The City's annual operating budget allows us to address the needs of the community and includes: • The General Fund • General Obligation Debt Service Fund • Enterprise Funds 459 Commission Memorandum Page2 • Transfers to the Redevelopment Agency • Other Special Revenue Funds The General Fund is the primary operating fund for the City and includes much of the usual activities of any municipality including Police, Fire, Parks and Recreation, Public Works Streets and Engineering, Building, Tourism and Culture as well as general administrative functions, and the Office of the Mayor and Commission. Within the General Fund, Citywide Accounts reflect expenditures that do not fall under the purview of a particular Department such as accumulated leave payments, grants to social service agencies, non-profits, and special studies. They are monitored by the Office of Budget and Performance Improvement and the City. General Obligation Debt is the debt service funding required for voter-approved bonds issued with the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects. No assets are used as collateral. The Enterprise Fund Budget is comprised of Departments that use revenues received for services provided to the general public on a continuing basis and are primarily financed through user charges. The criteria used to determine if an operation should be an enterprise fund includes: 1) that it generates revenues; 2) that it provides services to the community; and 3) that it operates as a stand-alone entity, without subsides from taxes etc. The City's Enterprise Fund Departments are: Convention Center, Sanitation, Stormwater, Water, Sewer, and Parking. The City of Miami Beach Redevelopment Agency is a separate entity, whose Chairperson and Board of Directors are also the City's Mayor and City Commission. Special Revenue Funds include the Resort Tax Fund as well as 71J1 Street Garage Operations; 51h & Alton Garage Operations; Art in Public Places; Tourism and Hospitality Scholarship Program; Green/Sustainability Fund; Waste Hauler Additional Services and Public Benefit Contribution Fund; Education Compact Fund; Red Light Camera Fund and Emergency 911 Fund. The Resort Tax Fund is supported primarily by taxes levied on hotel, motel, rooming house and short term apartment room rents as well as on food and beverages sold at retail in any restaurant, as authorized by State Statute, and is used to fund tourism-eligible expenditures. Internal Service Funds are used to account for the financing of goods and services provided by one department to other departments on a cost-reimbursement basis. Internal Service Fund rates are set to recover the full cost of providing a particular service. The Internal Service Funds budgeted expenditures are completely offset by revenues received from the General Fund, Enterprise Fund Departments and Special Revenue Funds. The City's Internal Service Fund Departments are Information Technology, Central Services, Risk Management, Property Management, and Fleet Management. CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, set a public hearing on November 25, 2013, to adopt the Third Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Fund Budge1q,or Fiscal Year (FY) 2012/13. JLM:K~~~ 460 RESOLUTION TO BE SUBMITTED 461