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R7A-Adopt 1st Amendment Gen Ent Internal-Special Rev Fund Budgets FY 14-15COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FISCAL YEAR 2014t15. lntended Outcome Su Ensure exoenditure trends are sustainable over the lonq 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: o Percentage of residents rating the Overall Value of City services for tax dollars paid as excellent or oood (Residents: 58%: Businesses 54%) Item Summary/Recommendation : The budgets for the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds for Fiscal Year 2O14115 were approved on December 4,2014, with the adoption of Resolutions No. 2014- 288860. The first amendment would allow for the funding of encumbrances for good and services procured, but not yet received and expended at the end of FY 2013114, as well as projects that were budgeted inFY 2013114, but had not been expended or encumbered. The preliminary year-end analysis for FY 2013114 shows that the General Fund has a preliminary operating budget surplus of $4.8 million or 1 .8 percent of the amended General Fund operating budget. The detailed year-end analysis was distributed by LTC on November 17,2014. Of the $4.8 million surplus, it is proposed to reserve $350,000 to be rolled-over into FY 2014115 to cover purchase orders that were encumbered, but not spent during FY 2013114 due to timing issues between fiscal years. Similarly, it is proposed to reserve $681,000 for projects that were budgeted, but not completed during FY 2013114, to carry forward the appropriation for these projects into FY 2014115. This budget amendment would reserve an additional $1 .464 million in the reserve for Future Building Department needs to cover the additional surplus attributable to Building Department net revenues over expenditures. The remainder of $1.5 million Munis/Energov project budget is also proposed to be funded from one-time year- end funds. The City recently issued bids for contracted grounds maintenance for parks and athletic fields. The difference in cost between what was budgeted and the new bid (pro-rated) is approximately $523,000 and is proposed to be funded from one-time year-end funds. The remainder of the year-end funds, $306,000, is proposed to be added to the existing $1 million General Fund Contingency in the Citywide Account. The amendment also adds appropriation for a sponsorship in the General Fund, unanticipated revenue to the PTP fund, and additional fund balance in the Transportation Fund. Financial lnformation: Source of Funds @ Amount Account $4,974,000 General Fund $298,000 Enterprise Funds $321,000 lnternalService Funds $2,567,000 Special Revenue Funds John Woodruff, OBPI Director oxra &-17- //& MIAMIBTACH 526 g MIAMI BEACH City of Miomi Beoch, 1700 Convention Cenler Drive, Miomi Beoch, Florido 33139, www.miomibeochfl.gov COMMISSION MEMORANDUM TO:Mayor Philip Levine and Members of the City Co(rmission FRoM: Jimmy L. Morales, City Manager DATE: December 17,2014 MIAMI BEACH, FLORIDA, ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND AND spEclAL REVENUE FUND BUDGETS FOR FTSCAL YEAR (FY}2014t15 ADMINISTRATION RECOMMENDATION Adopt the resolution amending the FY 2014115 General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds budgets. KEY INTENDED OUTCOME SUPPORTED Ensure expenditure trends are sustainable over the long term. GENERAL FUND ANALYSIS The preliminary year-end analysis for FY 2013114 shows that the General Fund has a preliminary operating budget surplus of $4.8 million or 1 .8 percent of the amended General Fund operating budget. The detailed year-end analysis was distributed by LTC on November 17,2014. FY 2013/14 Budget General Fund Revenues Expenditures Surplus/(Deficit) amended through November.2014 $ 273,413,000 273,413,000 $ 274,117,000 269,293,000 4,824,000 Difference 704,000 1 4,824,000 2013-14 Year-End Of the $4.8 million surplus, it is proposed to reserve $350,000 to be rolled-over into FY 2014115 to cover purchase orders that were encumbered, but not spent during FY 2013114 due to timing issues between fiscalyears. Similarly, it is proposed to reserve $681,000 for projects that were budgeted, but not completed during FY 2013114, to carry forward the appropriation for these projects into FY 2014t15. 527 First Amendment to the FY 201 4/1 5 General Fund, Enterprise, lnternal Seruice, and Special Revenue Funds Budgets Page 2 Further, it is important to note that a significant portion of the surplus is due to Building Department revenues in excess of budget, resulting in a surplus of $1.464 million attributable to Building. This surplus is without a budgeted transferof $1.5 million from Building Reserve into the General Fund. lnstead, it is proposed to reserve an additional $1.464 million in the reserve for Future Building Department needs to cover the additional surplus attributable to Building Department net revenues over expenditures. The General Fund still owes a $3.3 million balance of Building Department revenues from prior years. The Munis/Energov information technology projectwill replace the City's current Eden ERP system with Munis, the City's current Permits Plus permitting and licensing software with Energov, and include a full business process review of all functional areas of both systems. Of the $7.2 million overallcostforthe Munis/Energov project, $5.7 million was appropriated on July 30, 2014. The remainder of $1.5 million project budget is proposed to be funded from one-time year-end funds. The City recently issued bids for contracted grounds maintenance for parks and athletic fields. The new cost to the General Fund for this service totals $1.59 million and the FY 2014115 budget included $833,000. The difference, approximately $761,000, can be pro- rated to $523,000 through the rest of FY 2014115. The pro-rated amount of $523,000 is proposed to be funded from one-time year-end funds. This item will also impactthe Current Service Level budget for FY 2015116. The remainder of the year-end funds, $306,000, is proposed to be added to the existing $1 million General Fund Contingency in the Citywide Account. The City's financial policies require that one-time revenues (such as the year-end surplus) must be used for non-recurring expenses, and that at least half of the annual year-end surplus must be allocated to the City's Capital Reserve Fund. However, the Administration recommends that the Capital Reserve transfer requirement be waived for the FY 2013114 year-end surplus and that the balance of the General Fund surplus be allocated as outlined above. RECOMMENDED CHANGES IN APPROPRIATIONS Projected Surplus (excluding non-cash impact of losses on investments) Changes in Expenditure Appropriations Reserve - Encumbrances Reserve - Set Aside lor FY 2013114 Projects inFY 2O14115 Reserve - Set Aside for Future Building Department Needs Munis/Energov Project - Fund Remainder of Project Budget Parks & Recreation - Add'tl funding for Grounds Maintenance Citywide - Additional Contingency Revised Net Surplus 4,824,000 350,000 681,000 1,464,000 1,500,000 523,000 306,000 528 First Amendment to the FY 2014/15 General Fund, Enterprise, lnternal Seruice, and Special Revenue Funds Budgets Page 3 ln addition, the City has received a sponsorship of $150,000 from Citibank in support of the Soundscape Cinema Series as approved in Resolution 2014-28663. This budget amendment would recognize the additional revenue and add $150,000 of appropriation to the Citywide Accounts budget. Carryforuard carryfoilard FY 2014/15 Adopted Encumbrancs Appropriatlms Eudt€t fiomFlzol3l10 fromFY2013/14GENERAT FUND REVENUES Operadng Rdenu6 Ad Valorem Taxes Ad Valorem Taxes- S Pte Clsts Ad Valorem Cap. Renewal & Replacement Ad Valorem Taxes- Normandy Shores Other Taxes Licenss and Pemlts lntergovernmental charges for seruices Fines & Forfeits I nterest Rents and Leases Miscellaneous Reson Tax Contribution Other Reserue-Building Depanment Ops. Prior Year surplus frcm ParkinE Op. Fund Additional surplus Fund Balance from FY 2013/14 Total General Fund APPROPRI,ATIONS D€partment Mayor and commission City Manager communi6tions Budget & Performance lmprovement org Dev & Perfomance lnitiative Finance Prwurement Human Resources/Labor Relations city Clerk City Attomey Housing & comm, Development Euilding de compliance Planning Tourism, culture, and Econ. Development Park & RecEation Public works Capital lmprovement Prcjects Police Fire Emergency Management Cltywide Accounts€ther Citywide Accounts-OpeEting Contingency Citywide Accounts-Normandy Shores Subtotal GeneEl Fund TRANSFERS Reserve-set Aside for Future Bldg Needs Subtotal TransfeE Total General Fund FV 2014/15 Amended Budtet 7L4,420,M 11,159,000 2,180,0O0 145,000 24389,000 26,111,000 10,495,000 11,010,000 2,436,O@ 3,285,000 7,L2O,M 12,581,000 34084,000 10,753,000 1,500,000 8,400,m0 150,000 3,793,000 7L4,420,@O 11,159,000 2,18o,OOo 145,000 24,389,O@ 26,261,O@ 10,495,000 11,010,000 2,436,@O 3,285,000 7,12O,OOO 12,581,000 34084,000 10,763,0m 1,500,000 8,400,000 4,824,OOO 1,916,000 3,415,m0 1,410,m0 2,242,@O 572,@O 5,308,000 r,667,@O 2,t72,@O 1,374,000 5,O17,OOO 2,405,@O 13,590,000 5,553,000 3,920,m0 3,509,oOO 29,L47,O@ 10,911,000 4,903,m0 94,855,000 63,244,OOO 8,853,000 8,624,000 1,000,000 222.@O 20,000 3,OOO 8,000 1,916,000 3,415,000 1,410,000 2,262,OOO 572,000 5,308,000 1,570,000 2,195,000 L,374,OOO 5,O17,OOO 2,405,000 13,590,000 5,599,000 3,936,000 3,509,OOO 29,725,O& 11,014,000 4,903,000 94970,000 63,284,000 8,857,0@ 9,430,000 1,306,000 222,OOO 45,0m 15,000 55,mO 103,0o0 105,000 4,000 36,000 15O,0Oo 306,000 27s,479,M Gpital Reneml & Replacement 5 Capital lnvestement Upkeep Account lnfo & Comm Technology Fund Pay-As-You€o capital Fund capital Prc.l Not Financed by Bonds-Munis/EneBov 2,180,000 225,000 395,000 1,400,000 2,180,000 225,000 395,000 1,4oO,OOo 1,500,000 L,454,OOO 1,500,000 L,464,@O 280.079,mO S 350,@0 5 58t,mo s 3,943,m0 5 285,053,(xro 529 First Amendment to the FY 2014/15 General Fund, Enterpri*, lnternal Service, and Special Revenue Funds Budgets Page 4 ENTERPRISE. INTERNAL SERVICE. AND SPECIAL REVENUE FUNDS FY 2014/15 BUDGET AMENDMENT There are $260,000 of encumbrances in the Enterprise Funds, $145,000 in lntemalService Fund encumbrances, and $1,876,000 in Special Revenue Fund encumbrances, for goods or services which were procured in FY 2013/14, but not yet received and expended, which are recommended to be carried over to the respective FY 2013114 operating budgets. Similarly, it is proposed to carry fonrvard appropriation of $38,000 in the Enterprise Funds, $176,000 in the lnternalservice Funds, and $348,000 in the Special Revenue Funds into FY 2014115 for projects that were budgeted, but not completed during FY 2013114. Prior year appropriations fully fund the encumbrances and projects. This budget amendment would add $126,000 in additional PTP fund revenue from Miami- Dade County, which would be appropriated to fund the operation of the South Beach Local. ln addition, this amendment would appropriate $217,000 of unanticipated fund balance in the Transportation Fund to fund trolley operations. Carrytoruard Carrviomrd Approprlatlont FY 2014/15 Adpoted EncumbGnc6 frm FY Budcet from FY 2013/14 ml3/14 FY 2014/15 Amended Budget ET{TERPRISE FUNDS REVENUVAPPROPRIATIONS Convention Center Parking Sanitation Sewer OpeEtions Stomwater OpcEtions W.ter OpeEtions Total Enterprlse Funds INIERNAL SERVICE FUNDS REVENUVAPPROPRIATIONS CentElSeruices Fleet Management lnfomation Technoloty Prcperty Management Risk Manatement Medical and Oental lnsunnce Tffil lnt.rnal Serulce Funds SPEOAL REVENUE TUT{DS REVENUE/APPROPRIANONS Resort Tax Tnnsportation People's TEnsportation Plan Fund 7th Street GaEte sth & Alton Garage{ity's Share of Shortfall Art ln Public Places Touriim and Hospitality Scholarship Pgmmt lnformation and communit.tioh Tech Func Edqcation compad Green/Sustainability Funds Red LightCameE Fund E-911 Fund CultuEl Arts council Normandv Shgres Police confisGtion Trust - FedeEl Polie Confis@tion TrEt -State Polie Special RevenG Polie Tninlnt Waste HauleR Add seru & Public Benefit Total Spslal Rsenue Funds carMward Carryfomrd Approprlatlons FY 2014/15 Adpoted Encumbrancei frm FY s 12,162,000 50,109,000 20,067,0OO 43,276,W 20 804,000 t2,L62,OOO 50,140,000 20,325,0(x) 43,276,OOO 20,813,000 33,428,000 31,000 220,000 9,000 179A45,000 tY 20t4lr9 from FY 2013/14 S 1,046,000 LO,747,OOO 1s,529,000 123,000 L76,OOO 9.754.OOO 16.000 s 1,045,000 10,747,OOO 15,928,000 9,770,000 t4,s24,OOO 6,000 14,530,000 26,696,000 26,696,000 carMomrd CarrytoMrd Appropiations fY 2014/15 adpoted Encumbmncg from FY Budret from FY 2013/14 2073114 F',t 20t4lti Other Amended Budget 62,889,000 2,739,OOO 1,450,000 2,385,000 587,(x)0 720,OOO 742,O@ 395,000 107,0O0 355,000 896,000 388,000 1,307,000 222,@O 580,000 175,000 75,000 45,000 L,2U,OOO 208,000 140,000 101,000 69,000 54,351,000 2L1,OOO 3,096,000 125,000 L,677,OOO 2r8s,oo0 587,000 789,000 142,000 395,000 107,000 356,000 896,000 433,000 L,467,O@ 255,000 683,00O 277,OOO 75,000 45,000 45,000 160,000 33,000 103,000 101,000 530 First Amendment to the FY 201 4/1 5 General Fund, Enterprise, lnternal Service, and Special Revenue Funds Budgets Page 5 CONCLUSION The resolution amending FY 2014115 budgets will allow the first amendment to the departmental appropriations within the General Fund, Enterprise Funds, lnternal Service Funds and Special Revenue Fund budgets to be enacted. This action is necessary to allow for the funding of encumbrances for good and services procured, but not yet received and expended at the end of FY 2013114, as well as projects that were budgeted inFY 2013114, but had not been expended or encumbered. The amendment also adds appropriation for a sponsorship in the General Fund, unanticipated revenue to the PTP fund, and additional fund balance in the Transportation Fund. JLM/JW @ 531 RESOLUTTON NO._ A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA" ADOPTING THE FIRST AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUND, INTERNAL SERVICE FUND, AND SPECIAL REVENUE FUND BUDGETS FOR FTSCAL YEAR (FY2014115. WHEREAS, the budgets for the General Fund, Enterprise Funds, lnternal Service Funds, and Special Revenue Funds for Fiscal Year 2014115 was approved on December 4,2014, with the adoption of Resolution No. 2014-288860; and WHEREAS, $350,000 was set aside from FY 2013114 General Fund surplus for encumbrances from FY 2013114 for goods or services which had been procured but not received and expended at year end that the Administration is recommending be carried over to the FY 2014115 operating budget; and WHEREAS, there were also approximately $04t,000 in projects in the General Fund that were budgeted in FY 2013114 and which have not yet been expended or encumbered and the funding is recommended to be carried forward and spent in FY 2014115; and WHEREAS, there is $260,000 in Enterprise Fund encumbrances, and $145,000 in Internal Service Fund encumbrances, and $1,876,000 in Special Revenue Fund encumbrances from FY 2013114 for goods or services which were procured in FY 2013114 but not yet received and expended, which the Administration also recommends be carried over to the respective FY 2014115 operating budgets; and WHEREAS, there were also approximately $38,000 in projects in Enterprise Funds, $176,000 in projects in lnternal Service Funds, and $348,000 in projects in Special Revenue Funds that were budgeted in FY 2013114 and which have not yet been expended or encumbered, which the Administration recommends to be carried fonuard and spent inFY 2014115; and WHEREAS, prior year appropriations fully fund the prior year encumbrances and projects; and WHEREAS, the General Fund has unanticipated sponsorship revenue of $150,000 from Citibank in support of the Soundscape Cinema Series as approved in Resolution 201 4-28663; and WHEREAS, unanticipated PTP fund revenues of $126,000 is available from Miami-Dade County to help fund operations for the South Beach Local; and WHEREAS, $217,000 of fund balance in the Transportation Fund is available to fund trolley operations; and WHEREAS, the City's financial policies adopted pursuant to Resolution 2006- 26341 and Resolution 2002-24764 require one-time revenues (such as the year-end surplus) must be used for non-recurring expenses, and that at least half of each annual year-end surplus must be allocated to the City's Capital Reserve Fund; and 532 WHEREAS, it is recommended that the Commission waive the policy that requires that at least half of the FY 2013114 year-end surplus be used to fund the City's Capital Reserve Fund; and WHEREAS, in the General Fund it is recommended that $1.464 million be set aside in a reserve for Future Building Department needs, $1.5 million to fund the remainder of the Munis/Energov project, $523,000 for higher costs associated with contracted grounds maintenance in the Parks & Recreation Department, and $306,000 for additional Contingency funding; and WHEREAS, Section 932.7055 of the Florida Statutes sets forth the purpose and procedures to be utilized for the appropriation and expenditures of the Police Confiscation Trust Fund; and WHEREAS, the proceeds and interest earned from the Police Confiscation Trust Fund is authorized to be used for crime prevention, safe neighborhood, drug abuse education and prevention programs, or for other law enforcement purposes; and WHEREAS, the Chief of Police is authorized to expend these funds upon request to the City of Miami Beach Commission, and only upon appropriation to the Miami Beach Police Department by the City of Miami Beach Commission; and WHEREAS, the Chief of Police of the City of Miami Beach has submitted a written certification which states that this request complies with the provisions of Section 932J055 of the Florida Statutes (written certification attached as Exhibit "B"), and the Guide to Equitable Sharing of Federally Forfeited Property for Local Law Enforcement Agencies; and WHEREAS, funds in the amount of $204,000 are available in the Police Confiscation Trust Funds; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSTON OF THE CITY OF MIAMI BEACH, FLORIDA, that following a duly noticed public hearing on December 17, 2014, the City Commission hereby waives the policy for FY 2014115 requiring that fifty percent of year-end surplus in the General Fund be used to increase funding in the City's Capital Reserve Fund; and that the first amendment to the FY 2014115 General Fund, Enterprise Fund, lnternal Service Fund, and Specia! Revenue Funds budgets is adopted as shown on Exhibit "A'. PASSED and ADOPTED this 17th day of December,2014. ATTEST: PHILIP LEVINE, MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION rz- \' oIrt Date RAPHAEL E. GRANADO, CITY CLERK 533 GENERAL FUND Exhibit "A" FY 2014/15 Adopted ,Encumbrances Appropriations .!!om|t 29r3ll.1;!rcry1Y zoLslll j .- . othgfPqdff! I FY20l4llsAmended I EydF-"j_ . . APPROPRIATIONS ; I is 5.017.0(n i .5,017,qQ0-i 45,000 222foo: ; : ! 22zP00 l s 27s.879.000:s 35O,OOOis 681.000is 979,000i$277,889,ON TRANSFERS Capital Renew€l & Replacement .. ^-g-Sp"i!-e_L"tug:tp"r,e-a-t-.upts-9p49s^-o""u.$i lnlo_&c9mmlegIlo-lgsyfgnd r ?ay-As:ygq:Gg cep!!q! fu{td gapllelf ro,!!_o!f!!ltt-cgdby-Botd9:My1ts/,E1-e-1goy Reserve-SetAsid,e,f elFqtuf ePlig!!_e.94!..-_ 2,180,000 225,O00 3qsr00! 1 _,1,.990j000, I 1500,000 . 7,164,000 lSubtotal Transfers Total General Fund s 28o,O79,111r9:s 350,OOO:s 681,000:9 3,943,000 s 28s,053,qro 534 Exhibit "A" S 179,846,000iS zeo,ooo:S 38,ooo,S liir:i::,;::liCarryforward i Canyfonmrd ;APproPriations FY2o14/lSAdpoted : Encumbrances i fromFY FY2OL4ES Amended Risk Management Medjg?! and qe-nlat lniltFnc-e_ T_ol9l !n!_emtt Sgrvjcg E_undq : : Carryforward r i Carryforward ; APpropriations : FY2o14/l5Adpoted: Encumbrances ; fromFY j Eudset t fromFlZOLSlL4 2O,-3lL4 Other F(z0t0il9 Amended Budget 62,889,000 388,000j.. - -..45,999 1,307,fi)0 r 160,000 2ZZ!q9 ) _ 3_3rQ99 ..... ..-...- .. .. ^ ; . *.-.--* - .* --- ---s-'.c.f..f.".i.-""---*---.-193-,999 , , , ,,,, ,,, ,, 175|000 .,.,,,,,,,,, 101,000i zs,ooo: 45,000 535 i EEi itEE Ei EHn 5i -E* Ei i!; qE€ iE g{ l =Isu et;g Et l=t gE EiH [i I igi ii Eie ?;i$ ;;Ei" *i oEs E\ ?'E:E rql iiE If *" ESIEIFatIIis*EI5iEEEiigEiE€Eii=I iai* frltti fu gii EE f,5t ;f IiE ilE EE 5 t5g! 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