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R7C-Set Public Hrg Adopt Third Amendment General-Enterprise-Internal Budgets FYCOMMISSION ITEM SUMMARY Condensed Title: A Resolution Setting a Public Hearing to Adopt the Third Amendment to the General Fund, Enterprise Fund, lnternal Service Fund, and Special Revenue Fund Budgets For Fiscal Year (FY) 2013t14. Clerk's Office islative Tracki AGEHDA ITEil R1 C Ensure expenditure trends are sustainable over the long term. Supporting Data; N/A Item Summary/Recommendation: The budgets for the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds for Fiscal Year 2013/14 were approved on September 30, 2013 with the adoption of Resolutions No. 2013-28351 and No. 2013-28355. The First Amendment to the General Fund, Enterprise Funds, lntemal Service Funds, and Special Revenue Funds budgets for FY 2013/14 was approved on January 15,2014, by resolution 2014- 28469. The Second Amendment to the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds budgets for FY 2013114 was approved on April 23,2014, by resolution 2014-28564. Section 166.2a1(4)(c.), Florida Statutes, requires that a municipality's budget amendment must be adopted in the same manner as the original budget. The Third Amendment will increase funding in the City Attorney's Office for a dedicated Police Legal Advisor position to provide legal support to the Police Department. The position will maintain an office in the Police Department, but will report directly to the Gity Attorney's Office. This action restores a similar position that was eliminated during the FY 2003/04 budget process. Beginning in FY 2014115, a portion of the position costs will be reimbursed to the General Fund through legal and administrative fees charged with claiming and obtaining confiscation trust funds. Any other necessary amendments to the operating budgets in the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds will also be addressed as part of the Third Amendment. Financial Information: Source of Funds @ Amount John Woodruff, OBPI Director (s MIAMIBTACH o*te S-71'lV 604 4 MIAMIBEACH City of Miomi Beoch, I200 Convention Center Drive, Miomi Beoch, Florido 33I 39, www.miomibeochfl.gov COMMISSION MEMORANDUM Mayor Philip Levine and Members oflthe City Co/{mission Jimmy L. Morales, City Manager DATE: May 21 ,2014 SUBJECT: A RESOLUTION OF THE MAYOR Al.lD CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTINF A PUBLIC HEARING TO ADOPT THE THTRD AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND AND SPEGIAL REVENUE FUND BUDGETS FOR F|SGAL YEAR (FY) 2013114 ADMIN ISTRATION RECOMM EN DATION Adopt the Resolution and Set the Public Hearing for June 11,2014. KEY INTENDED OUTCOME SUPPORTED Ensure expenditure trends are sustainable over the long term. ANALYSIS The budgets for the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds for Fiscal Year 2013114 were approved on September 30,2013 with the adoption of Resolutions No. 2013-28351 and No. 2013-28355. The budget for the Police Confiscation Trust Funds for Fiscal Year 2013114 was approved on September 30, 2013 with the adoption of Resolution No. 2013-28359. The First Amendment to the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds budgets for FY 2013114 was approved on January 15,2Q14,by resolution 2014-28469. The Second Amendment to the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds budgets for FY 2013/14 was approved on April 23, 2014, by resolution 2014-28564. Section 166.2a1(4)(c.), Florida Statutes, requires that a municipality's budget amendment must be adopted in the same manner as the original budget. The Third Amendment will increase funding in the City Attorney's Office for a dedicated Police Legal Advisor position to provide legal support to the Police Department. The position will maintain an ofilce in the Police Department, but will report directly to the City Attorney's Office. This action restores a similar position that was eliminated during the FY 2OO3l04 budget process. Beginning in FY 2014115, a portion of the position costs will be reimbursed to the General Fund through legal and adminlstrative fees charged with claiming and obtaining confiscation trust funds. 605 Third Amendment to the FY 2013/14 General Fund, Enterpise, lnternal Seruice, and Swcial Revenue Funds Budgets Page 2 Any other necessary amendments to the operating budgets in the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds will also be addressed as part of the Second Amendment. The City of Miami Beach provides a wide range of municipal services including Police; Flre- 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. lnternal Service Funds. OtherSpecial 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 lmprovement 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. lntemal 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. lnternal Service Fund rates are set to recover the full cost of providing a particular service. The lnternal Service Funds budgeted expenditures are completely offset by revenues received from the General Fund, Enterprise Fund Departments and Special Revenue Funds. The City's lnternal Service Fund Departments are lnformation Technology, Central Services, Risk Management, Property Management, and Fleet Management. 606 Third Amendment to the FY 2013/14 General Fund, Enteerise, lnternal Sevice, and Special Revenue Funds Budgets Page 3 Special Revenue Funds include the Resort Tax Fund as well as 7th Street Garage Operations; 5th & 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; Emergency 911 Fund; lnformation and Communications Technology Fund; People's Transportation Plan Fund; Concurrency Mitigation Fund; Miami Beach Cultural Arts Council; Police Special Revenue Account; Police Confiscation Trust Funds (Federal and State); and Police Training and School Resources Fund. The ResortTax 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. CONCLUSION The Administration recommends that the Mayor and City Commission set a public hearing to be held on June 11,2014 to adopt the Third Amendment to the General Fund, Enterprise Fund, lnternal Service Fund, and Special Revenue Fund Budgets for Fiscal Year (FY) 2013t14. JLM: JW ^@ 607 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CIry COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA SETTING A PUBLIC HEARING TO ADOPT THE THIRD AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (Fn 2U3t14. WHEREAS, the budgets for the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds for Fiscal Year 2013114 were approved on September 30, 2013, with the adoption of Resolution Nos. 2013-28351 and 2A13-28355; and WHEREAS, the First Amendment to the General Fund, Enterprise Fund, lnternal Service Fund, and Special Revenue Fund budgets for Fiscal Year 2013/14 was approved on January 15,2014, with the adoption of Resolution No.2014-28469; and WHEREAS, the Second Amendment to the General Fund, Enterprise Fund, lnternal Service Fund, and Special Revenue Fund budgets for Fiscal Year 2013/14 was approved on April 23,2014, with the adoption of Resolution No.2014-28564; and WHEREAS, the Administration requests that the Mayor and City Commission set a public hearing to be held on June 11,2014 to adopt the Third Amendment to the Fiscal Year (FY) 2013114 budgets for the General Fund, Enterprise Fund, lnternal Service Fund, and Special Revenue Fund budgets; and WHEREAS, 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; and WHEREAS, the City's annual operating budget allows the needs of the community to be addressed and includes: the General Fund; General Obligation Debt Service Fund; Enterprise Funds; Transfers to the Redevelopment Agency; and Other Special Revenue Funds; and WHEREAS, 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; and WHEREAS, 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 and non-profits, and special studies; and WHEREAS, General Obligation Debt is the debt service funding required for voter-approved bonds issued based upon the belief that a municipality will be able to repay its debt obligation through taxation or revenue from projects, and no assets are used as collateral; and 608 WHEREAS, the Enterprise Funds 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, and 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, or other sources; and WHEREAS, the City's Enterprlse Fund Departments are: Convention Center, Sanitation, Stormwater, Water, Sewer, and Parking; and WHEREAS, 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; and WHEREAS, Special Revenue Funds include the Resort Tax Fund as well as 7ft Street Garage Operations; 5s & Alton Garage Operations; Art in Public Places; Tourism and Hospitality Scholarship Program; lnformation and Communications Technology Fund; Education Compact Fund; Green/Sustainability Fund; Red Light Camera Fund, Emergency 911 Fund; Miami Beach Cultural Arts Council; People's Transpo(ation Plan Fund; Police Confiscation Trust Funds (Federal and State); Waste Hauler Additional Services and Public Benefit Contribution Fund; Concurrency Mitigation Fund; Police Special Revenue Account, and Police Training and School Resources Fund; and WHEREAS, the Resort Tax Fund is supported primarily by taxes levied on hotel, motel, rooming house and short lerm 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; and WHEREAS, lnternal 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 and lnternal Service Fund rates are set to recover the full cost of providing a particular service, and the lnternal Service Funds budgeted expenditures are completely offset by revenues received from the General Fund, Enterprise Fund Departments, and Special Revenue Funds; and WHEREAS, the City's lnlernal Service Fund Departments are lnformation Technology, Central Services, Risk Management, Property Management, and Fleet Management; and WHEREAS, the Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, set a public hearing to adopt the Second Amendment to the General Fund, Enterprise Fund, lntemal Service Fund, and Special Revenue Fund Budgets for Fiscal Year (FY) 2013114; and WHEREAS, the key intended outcome supported by the Third Amendment to the Budgets for Fiscal Year (FY) 2013114 for the General Fund, Enterprise Fund, lntemal Service Fund, and Special Revenue Fund is to ensure expenditure trends are sustainable over the long term. 609 NOW THEREFORE, BE !T DULY RESOLVED BY COMMISSION OF THE CITY OF MIAMI BEACH that the hereby set a public hearing on June 11,2014, to adopt General Fund, Enterprise Fund, lnternal Service Fund, Budgets for Fiscal Year (FY) 2013114. PASSED and ADOPTED this 21"t day of May, 2014. ATTEST: PHILIP LEVINE, MAYOR RAPHAEL E. GRANADO, CITY CLERK THE MAYOR AND CITY Mayor and City Commission the Third Amendment to the and Special Revenue Fund citvAttornffih- 610 THIS PAGE INTENTIONALLY LEFT BLANK 611