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R7E-Set Public Hearing Adopt Fifth Amendment To Budgets For Fiscal Year FY 2013-COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION SETTING A PUBLIC HEARING TO ADOPT THE FIFTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FYI2O13I14. lntended Outcome Ensure expenditure trends are sustainable over the long term. Supporting Data: ln the 2014 Community Survey, both residents and businesses reported the following area for the City related to value for taxes paid: Percentage of residents rating the Overall Value of City services for tax dollars paid as excellent or good (Residents: 58%; Businesses 54%) Item Summarv/Recommendation : 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 First Amendment to the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds budgets for FY 2013114 was approved on January 15,2014, by resolution 2014-28469. The Second Amendment was approved on April 23, 2014, by resolution 2014-28564. The Third Amendment was approved on June 11,2014, by resolution 2014-28628. The Fourth Amendment was approved on July 23, 2014, by resolution 2014-28672. Section 166.2a1($(c.), Florida Statutes, requires that a municipality's budget amendment must be adopted in the same manner as the original budget. 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 Fifth Amendment would address any necessary budget amendments required by state law for funds, departments, or accounts that exceed their appropriated authority per the year-end close-out process. Actual expenditures as of the public hearing date are preliminary in nature due to the fact that the City's financial records for FY 2013114 will not be formally closed until after the external auditors have completed their review, in May or June of 2015. Any other necessary amendments to the operating budgets beyond the 60 day threshold, within budgeted fund totals, would be delegated to the City Manager. AGEI*DA NAM K-7 E Financial lnformation: Source of Funds @ Amount Account John Woodruff, OBPI Director {s MIAMIBTACH ceJra lo'zz- l{470 g MIAMIBEACH City of Miqmi Beoch, I700 Convention Center Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISSION MEMORANDUM Mayor Philip Levine and Members Jimmy L. Morales, City Manager DATE: October 22,2014 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,A PUBLIC HEARING TO ADOPT THE FIFTH AMENDMENT TO THE RAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND AND SPECIAL REVENUE FUND BUDGETS FOR FrscAL YEAR (FYl 2013114 ADMINISTRATION RECOMMENDATION Adopt the Resolution and Set the Public Hearing for November 19, 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 FiscalYear 2013114were 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, lnternal Service Funds, and Special Revenue Funds budgets for FY 2013114 was approved on January 15, 2014, by resolution 2014-28469. The Second Amendment was approved on April 23,2014, by resolution 2014-28564. The Third Amendment was approved on June 11,2Q14, by resolution 2014-28628. The Fourth Amendment was approved on July 23, 2014, by resolution 2014-28672. Section 166.241(4)(c.), Florida Statutes, requires that a municipality's budget amendment must be adopted in the same manner as the original budget. 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 Fifth Amendment would address any necessary budget amendments required by state law for funds, departments, or accounts that exceed their appropriated authority per the year-end close-out process. Actual expenditures as of the public hearing date are preliminary in nature due to the fact that the City's financial records for FY 2013114 will not be formally closed until after the external auditors have completed their review, in May or June of 2015. Any other necessary amendments to the operating budgets beyond the 60 day threshold, within budgeted fund totals, would be delegated to the City Manager. TO: FROM: City C 471 Fifth Amendment to the FY 2013h4 General Fund, Enterprise, lnternal Service, and Special Revenue Fund Budgets Page 2 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. lnternal Service Funds. 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 Mayorand 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. 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. 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. 472 Fifth Amendment to the FY 2013/14 General Fund, Enterprise, lntemal Seruice, and Special Revenue Fund Budgets Page 3 Special Revenue Funds include the Resort Tax Fund as well as 7th Street Garage Operations; sth & 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 CulturalArts Council; Police Special Revenue Account; Police Confiscation Trust Funds (Federal and State); and Police Training and School Resources 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. CONCLUSION The Administration recommends that the Mayor and City Commission set a public hearing to be held on November 19, 2014 to adopt the Fifth Amendment to the General Fund, Enterprise Fund, lnternal Service Fund, and Special Revenue Fund Budgets for FiscalYear (FY) 2013t14. JLM/JW^(flD\-__ 473 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, SETTING A PUBLIC HEARING TO ADOPT THE FIFTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR (FY 2013114. WHEREAS, the budgets for the General Fund, Enterprise Funds, lnternal Service Funds, and Special devenue Funds for Fiscal Year 2013114 were approved on S"pi".O"r gO, Zotg, with the adoption of Resolution Nos. 2013-28351 and 2013-28355; and WHEREAS, the First Amendment to the General Fund, Enterprise Fun!, lnternal service Fund, and speciat Revenue Fund budgets for Fiscal Year 2013/14 was approved on January 1'5,2O14,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 2013114 was "ppror"O on April 23,2O14,with the adoption of Resolution No' 2014-28564; and WHEREAS, the Third Amendment to the General Fund, Enterprise Fund, lnternal service Fund, and Special Revenue Fund budgets for Fiscal Year 2013/14 was "ppr"r"o on June 11,2}14,with the adoption of Resolution No. 2014-28628; and WHEREAS, the Fourth Amendment to the General Fund, Enterprise Fund, lnternal Service Fund, and Special Revenue Fund budgets for Fiscal Year 2013/14 was il;il"d on Juty 2g, zo14,with the adoption of Resolution No. 2014-28672; and WHEREAS, per Florida Statute 166.241, the City has 60 days following the end of the fiscal year to amend a budget for that year and the Fifth Amendment would address any necessary budget imendmenti required by state law. for funds' departments, or accounis thai exceed their appropriated authority per the year-end close-out process; and WHEREAS, the Administration requests that the Mayor a$ CilV Commission set a public hearing to be held on November 19,2014 to adopt the Fifth Amendment to the Fiicat year (FY) iolznq budgets for the General Fund, Enterprise Fund, lnternal Service Fund, "n'O Sp""i"l Reveiue Fund budgets for Fiscal Year (FY) 2013114; and WHEREAS, the key intended outcome supported by the Fifth Amendment to the Budgeti roi riscat'Vear (Fn 2ofit14 for the General Fund, Enterprise Fund, lnternal Service Fund, and Speciai Revenue Fund is to ensure expenditure trends are sustainable over the long term. 474 NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY coMMlsstoN oF rnr ctrv oF MtAMt BEACH that the Mayor and city commission no"OV set a public hearing on November 19, 2014, to adopt the Fifth Amendment to the Geneial Fund, Enterprisi Fund, lnternal Service Fund, and Special Revenue Fund Budgets for Fiscal Year (FY) 2013114. PASSED and ADOPTED this 22"d day of October, 2014' ATTEST: PHILTP LEVINE, MAYOR PlqPHAtl E. GRANADO, CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION $ - q'ln( Date 475