Loading...
LTC 350-2025 Fiscal Year 2025 Third Quarter AnalysisMIAMI BEACH OFFICE OF THE CITY MANAGER LTC# TO: FROM: DATE: SUBJECT: LETTER TO COMMISSION Honorable Mayor Steven Meiner and Members of the City Commission Eric Carpenter, City Manager� � August 26,2025 Fiscal Year 2025 Third Quarter Analysis The purpose of this Letter to the Commission (L TC} is to provide the Mayor and City Commission with an update on the status of the Fiscal Year (FY) 2025 operating budget as of the third quarter, which ended June 30, 2025, and to provide projections through the end of the current fiscal year ending September 30, 2025. It is important to emphasize that this analysis is a preliminary projection based on actual data for the first nine (9) months of the current fiscal year, as well as any additional data and information that may be available. While these projections are not a definitive representation of trends for the remainder of the current fiscal year, they do provide an initial glimpse of potential areas of opportunity and/or concern. Assumptions have been made relating to both revenues and expenditures that will continuously be refined as more data and information become available. In addition, based on the directive from the Mayor and City Commission adopted through Resolution No. 2025-33759 on June 25, 2025, the Administration continues to assess and identify cost-saving and efficiency opportunities across all departments. These efforts are being approached with careful consideration to ensure that the level of service provided to residents and businesses remains unaffected. Examples include hiring freezes on non-essential vacant positions, as well as the Information Technology Department negotiating a new Enterprise Agreement with Microsoft that aims to either maintain current or reduce costs despite the City's growing technological needs and increased usage. SUMMARY As of the third quarter of the current fiscal year (FY 2025), revenue and expenditure projections for the General Fund through September 30, 2025 reflect a projected year-end surplus of approximately $17.0 million, which is an increase of $10.8 million over the surplus of $6.2 million that was projected as of the second quarter of the current fiscal year. The Resort Tax budget reflects a projected year-end surplus of approximately $0.9 million, which is an increase of approximately $1.2 million compared to the $0.3 million shortfall projected as of the second quarter of the current fiscal year. Considering the City's current financial outlook, the Administration recommends that the Mayor and City Commission strategically evaluate key factors that will have an impact on the General Fund budget when considering all decisions with fiscal implications, while keeping in mind that any excess one-time funds play a critical role in closing budget gaps for key capital projects, ensuring infrastructure and public assets are maintained and improved. Of the $17.0 million General Fund surplus projected as of the third quarter of the current fiscal year, it is recommended that approximately $1.4 million, which is based on the additional combined FY 2025 projected surplus from the Miami Beach and Normandy Shores Golf Courses' operations, be set aside and transferred to the Capital Pay-As-You-Go (PayGo) Fund to fund a portion of the Miami Beach Golf Course Renovation project. This project currently has an estimated cost totaling $9.2 million, of which $3.3 million has been funded as of the current fiscal year. 350-2025 Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 2 of 17 After accounting for the item above, the Administration is recommending that a portion of the remaining General Fund surplus of approximately $15.6 million be set aside to partially fund the General Fund required reserve levels and targets. The projected amount currently needed to maintain this reserve fully funded based on the proposed FY 2026 General Fund budget of $483.4 million is $6.8 million, of which $3.1 million is budgeted in the current year, resulting in a difference of approximately $3.7 million that would be needed. The remaining projected General Fund surplus of $11.9 million is recommended to be set aside for capital project funding needs, which may include the purchase of the property located at 7605 Collins Avenue from the Building Department for approximately $6.5 million, to be discussed at the end of the fiscal year. Similarly, it is recommended that the projected FY 2025 surplus of $0.9 million in the Resort Tax budget as of the third quarter be set aside to fund additional required Resort Tax reserve levels and targets. FY 2025 General Fund Resort Tax Projected Surplus/(Shortfall) as of Q3 $17,037,000 $906,000 Recommended Year-end Adjustments/Set Asides: Set aside Additional Projected FY 2025 Golf Course Surplus (Miami Beach (1,454,000) -and Normandy Shores) for Miami Beach Golf Course Renovation Project Remaining Projected Surplus/(Shortfall) as of Q3 $15,583,000 $906,000 Additional Set aside for 25% General Fund Reserve and Reserve Target (3,683,250) -(based on Proposed FY 2026 Budget) Remaining Projected Surplus/(Shortfall) as of Q3 $11,899,750 $906,000 RESERVES The City's General Fund reserve as of September 30, 2024, is $114.0 million, which is the equivalent of three (3) months, or 25%, of the adopted FY 2025 General Fund budget of $456.2 million. The current reserve policy for the General Fund reflects a requirement of two (2) months, with a goal of three (3) months, pursuant to Resolution No. 2024-33340, which was adopted by the Mayor and City Commission on October 30, 2024. The 2% Resort Tax reserve as of September 30, 2024, is $38.3 million, which is the equivalent of six (6) months, or 50%, of the adopted FY 2025 2% Resort Tax budget of $76.6 million. The current reserve policy for the 2% Resort Tax budget reflects a minimum of two (2) months, with a goal of six (6) months, pursuant to Resolution No. 2019-30664 that was adopted by the Mayor and City Commission on January 16, 2019. Additional funding requirements for these reserves will continue to be re-evaluated and refined as part of the year-end process for FY 2025 and finalization of the FY 2026 budgets, since the required reserve levels and targets are adjusted annually based on the final annual operating budgets adopted pursuant to the City's current reserve policies. THIRD QUARTER ANALYSIS All General Fund, Enterprise, Internal Service, and Special Revenue Funds budgets, including the City Center RDA and North Beach CRA budgets, are projected to be at or below their current FY 2025 amended budgets as of year-end with revenues projected to be equivalent to or in excess of expenditures, except for specific General Fund departments, the Convention Center Enterprise Fund, the Information Technology Internal Services Fund, and the Normandy Shores and Resort Tax Special Revenue Funds budgets that will be detailed further in the analysis below. Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 3 of 17 GENERAL FUND Third Quarter Status An analysis of actual operating revenues and expenses for the period October 1, 2024 through June 30, 2025 reflects an operating surplus of approximately $101.1 million. While the actual surplus as of June 30, 2025 may seem unusual compared to the projection for the current fiscal year ending September 30 , 2025, it should be noted that the City receives a large percentage of its annual ad valorem property tax revenues during the first several months of the fiscal year and there is often a lag in processing of expenditures, particularly those that are billed by outside entities. Ad valorem property tax revenues represent approximately 61.0% of the total General Fund revenues budgeted based on the adopted FY 2025 General Fund budget, and 66.8% of actual General Fund revenues that have been collected during the first nine months of the current fiscal year. As of June 30, 2025, total revenues collected in the General Fund were 89.3% of the current amended budget, or $418.0 million, primarily due to the large percentage of property tax revenues collected during the first nine months of the current fiscal year. Conversely, expenditures were 67.7% of the current amended budget, or $316.9 million, since there are often delays in the receipt and processing of expenditure until the close of the fiscal year. FY 2025 Budget Adopted Amended 3/4 of Amended Preliminary Variance from 3/4 General Fund Budget Budget Budget Actuals as of Amended Budget 06/30/2025 O-.er / (Under) Re-.enues $ 456 ,164,000 $ 468 ,368 ,000 $ 351 ,276 ,000 $ 418 ,033 ,451 $ 66,757 ,451 Expenditures 456 ,164,000 468,368,000 351 ,276 ,000 316 ,918 ,765 (34 ,357 ,235) Excess of Revenues Over/(Under) Expenditures $ 101,114,686 Year-End Projections Year-end operating revenues and expenditures projected through September 30, 2025 provide a realistic indication of any estimated year-end surpluses or shortfalls as of this point in time. While the actual revenues and expenses reflected in this analysis are as of June 30, 2025, these projections do incorporate more current information that may be available. A summary of the preliminary General Fund revenues and expenditures as of June 30, 2025, with projections through September 30, 2025, reflects a projected year-end surplus of approximately $17 .0 million. The Administration recommends that approximately $1.4 million be set aside and transferred to the Capital Pay-As-You-Go (PayGo) Fund to fund a portion of the Miami Beach Golf Course Renovation project based on the additional combined surplus of the Miami Beach and Normandy Shores Golf Courses' operations projected as of the third quarter for the current fiscal year. This would result in a remaining projected year-end surplus of approximately $15.6 million, of which $3.7 million is recommended to be set aside to maintain the General Fund required reserve levels and targets totaling 25%, or three months, fully funded based on the proposed FY 2026 General Fund budget of $483.4 million, and the remaining projected surplus of $11.9 million to be set aside for capital project funding needs, which may include the purchase of the property located at 7605 Collins Avenue from the Building Department for approximately $6 .5 million, to be discussed at the end of the fiscal year. '·' Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 4 of 17 FY 2025 Budget General Fund Adopted Amended Budget Budget Re1.enues $ 456,164,000 $ 468 ,368 ,000 $ Expenditures 456,164 ,000 468 ,368 ,000 Excess of Revenues Over/(Under) Expenditures $ Additional Projected Golf Courses Surplus for MB Golf Renovation Project Remaining Excess of Revenues Over/(Under) Expenditures $ Gen Fund Reser1.e and Reser1.e Target (based on Proposed FY 2026 Budget) Remaining Excess of Revenues Over/(Under) Expenditures $ -- Operating Revenues Projected Difference % O1.er / (Under) 477,583 ,000 $ 9,215,000 2.0% 460 ,546 ,000 (7,822 ,000) -1.7% 17 ,037,000 (1,454,000) 15,583,000 (3 ,683 ,250) 11,899,750 As of June 30, 2025, actual operating revenues collected in the General Fund were approximately 89.3% of the current amended budget, or $418 .0 million, with operating revenues through the fiscal year ending September 30, 2025 projected at approximately $477.5 million, which is 2.0%, or $9.2 million, above the current amended budget. General Fund revenues by category projected to exceed budget or with significant variances to budget in excess of 10%, or $300,000, are further explained below: Ad Valorem Property Taxes -This category reflects property taxes that are levied and collected by the City based on the operating millage rate that was adopted by the Mayor and City Commission for FY 2025 of 5.8522 mills and the City's property values for FY 2025, which is projected to be above the current amended budget by 0.4%, or $1.1 million, based on current year trends. It is important to note that the City's budgeted property tax revenues include a discount of 5%, as permitted per Section 200.065, Florida Statutes, to account for early payment discounts, delinquencies, and adjustments for appeals, etc. Other Taxes -This category includes revenues from franchise fees for gas and electricity, as well as utility taxes for electricity, gas, and telephone and is projected to be below the current amended budget by 5.6%, or $1.8 million, primarily due to franchise fees and utility taxes from electricity trending lower based on usage/consumption. Licenses and Permits -This category includes revenues from business tax receipts, outdoor dining concessions, and Fire, Planning, and Public Works permit services and activities and is projected to be above the current amended budget by $6.4 million. This is primarily due to additional revenues from Fire, Planning, and Public Works permit review services and activities that are trending higher than anticipated from ongoing real estate and construction activity in the City. It is important to note, however, that the projection for the current year includes one-time permit-related revenues in excess of $6.0 million related to two large projects within the City, which are the Miami Beach Convention Center Hotel and the Perigon. Intergovernmental -This category includes revenues from local option gas tax, motor fuel tax, sales tax proceeds, and half-cent sales tax proceeds that are received from Miami-Dade County and the State of Florida and is projected to be 6.7%, or $948,000, below the current amended budget primarily due to sales tax, half-cent sales tax, and motor fuel tax proceeds trending lower than budgeted based on current economic activity. Charges for Services-This category includes revenues from the operations of the Miami Beach and Normandy Shores golf courses, activities and programs offered by the Parks and Recreation Department, such as after school and summer classes, and public safety, passport, ambulance/rescue, and lot clearing services, and is projected to be above the current amended i'l I l'i Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 5 of 17 budget by 12.7%, or $2.2 million, primarily due to increased revenues from the operations of both the Miami Beach and Normandy Shores golf courses that continue to trend higher than originally anticipated based on usage and demand. Fines and Forfeits -This category includes revenues from traffic fines, violations and false alarm fees, and code enforcement violations and is projected to be above the current amended budget by $4 .7 million, primarily due to the one-time revenues that were collected by the City for outstanding General Fund violations, invoices, and special magistrate fines, etc. associated with the Deauville settlement agreement that was approved by the Mayor and City Commission on June 27, 2025, of which approximately $4.3 million was for General Fund related items. Interest -This category is comprised of various sources of interest income derived from the City's current investments and is projected to be $3.4 million, below the current amended budget. This is due to the implementation of a change in the methodology utilized to allocate interest income across the City's various funds. The implementation of this change in methodology is anticipated to result in a lower projected amount for the current fiscal year in the General Fund . Despite this change implemented in the current fiscal year, the City's overall interest income is projected to remain relatively flat compared to the budget since the total amount of interest income projected for the current fiscal year is not projected to experience a major decrease, but simply a shift in its allocation between the City's various funds . Rents and Leases -This category includes revenues from various rentals and leases of City owned properties . FY 2025 revenues are projected to be 11.6%, or $938,000, above the current amended budget primarily due to revenues from several of the City's leases trending higher than budgeted since revenues collected by the City for some of its leases and agreements are based on a percentage of sales, such as the Miami Beach Marina, Pier Park, and Smith and Wollensky . For a detail of all General Fund revenues by category, refer to the attached Exhibit A. Operating Expenditures As of June 30, 2025, actual expenses were 67.7%, or $316.9 million, of the current amended budget with operating expenditures through the fiscal year ending September 30, 2025, projected at approximately $460.5 million, which is 1.7%, or $7.8 million, below the current amended budget. General Fund expenditures by department projected to exceed budget or with significant variances to the budget in excess of 10%, or $300,000, are further explained below: City Attorney -The City Attorney's Office is projected to be below the current amended budget by 5.4%, or $450,000 , primarily due to projected savings in personnel services expenditures, which stem from several vacant positions that have remained unfilled during the current fiscal year due to challenges in the recruitment of qualified candidates. The City Attorney's Office continues to be actively engaged in recruiting qualified candidates to fill these roles, strategically aligning hires with the evolving needs and priorities of the department. City Attorney FY 2025 FY 2025 Projected vs Amended Bud get Projected Amended % O-.er I (Under) Budget Variance Expenditures $ 8,283,000 $ 7,833,000 $ (450,000) -5.4% ii ,, -"~- Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 6 of 17 City Manager -The City Manager's Office, similar to the City Attorney's Office, is projected to be below the current amended budget by 8.2%, or $389,000. This is mainly due to projected savings in personnel expenditure resulting from budgeted positions that have remained vacant during the current fiscal year. While the City Manager's Office continues working towards filling some of these positions, two positions have been identified in the G.O. Bond Division that are not anticipated to be filled that are proposed to be eliminated as part of the FY 2026 budget development process based on operational efficiencies that have been identified where costs could be reduced in the City Manager's Office without compromising the level of services. City Manager FY 2025 FY 2025 Projected 1B Amended Budget Projected Amended % Over / (Under) Budget Variance Expenditures $ 4 ,716,000 $ 4,327,000 $ (389 ,000) -8.2% i ~ Finance -The department is projected to be below the current amended budget by 4.3%, or $451,000, primarily due to projected savings from budgeted positions that have been vacant at different points in time during the current fiscal year, which the department has or is in the process of trying to fill, and lower-than-anticipated operating expenses for items such as contracted temporary labor and professional services, as well as contracted maintenance, used by the department, as needed, for various purposes. These factors, combined, are anticipated to generate projected savings as of year-end for the department in the current fiscal year. Finance FY 2025 FY 2025 Projected 1B Amended Budget Projected Amended % Over / (Under) Budget Variance Expenditures $ 10,466 ,000 $ 10,015,000 $ (451 ,000) -4.3% : •• ' - Capital Improvement Projects -The department is projected to be 7.6%, or $506,000, below the current amended budget primarily due to projected savings in personnel services expenditures resulting from several budgeted full-time positions that the department has been unable to fill or is in the process of filling based on the current evolving needs of the department. The department has been attempting to fill these budgeted positions; however, the volume of candidates that are both interested and qualified has been very limited due to the competitive labor market. Capital Improvement Projects FY 2025 FY 2025 Projected 1B Amended Budget Projected Amended % Over / (Under) Budget Variance Expenditures $ 6 ,686,000 $ 6,180,000 $ (506,000) -7.6% --~ Parks & Recreation -The department is projected to be below the current amended budget by 0.9%, or $449,000, as a result of several staffing-related factors. First, a number of positions within the department have remained vacant for an extended period due to challenges in recruitment that stem from the currently competitive labor market. Second, a freeze has been implemented on specific non-essential budgeted positions to strategically manage costs and prioritize critical functions. Together, these factors are expected to result in current year projected savings at year- end. It is important to note that while this will provide short-term savings, the department will continue to evaluate staffing needs to ensure long-term operational effectiveness. 1,, 1, Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 7 of 17 Parks & Recreation FY 2025 FY 2025 Amended Budget Projected Expenditures $ 49,527,000 $ 49 ,078 ,000 Projected \6 Amended % O\€r I (Under) Budget Variance $ (449,000) -0 .9% ! ·' - Public Works -The department is projected to be below the current amended budget by 3.0%, or $563,000, primarily due to several positions that have remained vacant longer than anticipated. These vacancies have proven difficult to fill because of factors such as a competitive labor market, specialized skill requirements, and limited applicant pools. While these unfilled positions present operational challenges, they are projected to result in current year projected savings at year-end. The department continues to explore targeted recruitment strategies to address these gaps. Public Works FY 2025 FY 2025 Projected \6 Amended Budget Projected Amended % O\€r I (Under) Budget Variance Expenditures $ 18 ,953 ,000 $ 18 ,390,000 $ (563,000) -3.0% ~ Fire -The department is projected to be above the current amended budget by 1.1 %, or $1.4 million, resulting primarily from additional personnel expenditures that are associated with the collective bargaining agreements that were approved by the Mayor and City Commission during FY 2025. While the department is projected to exceed its current amended FY 2025 budget, funding totaling approximately $7.7 million was budgeted in a centralized account within the Citywide Accounts budget in the General Fund to address the estimated impacts of the collective bargaining agreements that were pending approval at the time the FY 2025 budgets were adopted by the Mayor and City Commission . As a result, should these projections be realized at year-end, a budget amendment will be recommended as part of the year-end process to realign funding that was allocated in the Citywide Accounts budget for the estimated impacts of the collective bargaining agreements to the Fire department budget accordingly. Fire FY 2025 FY 2025 Projected \6 Amended Budget Projected Amended % O\€r I (Under) Budget Variance I ,, :: Expenditures $ 123,317,000 $ 124,690 ,000 $ 1,373 ,000 1.1% -J 'i ~ Police -The department, similar to the Fire department, is projected to be above the current amended budget by 1.9%, or $2.9 million, resulting from additional personnel expenditures that are associated with the collective bargaining agreements that were approved by the Mayor and City Commission during FY 2025. In addition, the department is projected to exceed the FY 2025 overtime budget, due to several factors, including higher than anticipated expenditures for the continuation of enhanced high police visibility throughout the City as a result of the attacks that occurred in October 2023, in order to ensure public safety. While the department is projected to exceed its current amended FY 2025 budget, funding totaling approximately $7.7 million was budgeted in a centralized account within the Citywide Accounts budget in the General Fund to address the estimated impacts of the collective bargaining agreements that were pending approval at the time the FY 2025 budgets were adopted by the Mayor and City Commission . As a result, should these projections be realized at year-end, a budget amendment will be recommended as part of the year-end process to realign funding that Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 8 of 17 was allocated in the Citywide Accounts budget for the estimated impacts of the collective bargaining agreements to the Police department budget accordingly. Police Projected vS FY 2025 FY 2025 Amended Budget Projected Amended % O~r I (Under) Budget Variance Expenditures $ 152,654,000 $ 155,514,000 $ 2,860,000 1.9% -- Citywide Accounts -The Citywide Accounts budget in the General Fund represents a grouping of budgeted expenditures that are related to the City's overall operations that are not readily identifiable to any specific department. This category of accounts is projected to be 17.9%, or $7 .1 million, below the current amended budget, primarily due to the funding that was allocated to address the estimated impacts of the collective bargaining agreements that were pending approval at the time the FY 2025 budgets were adopted by the Mayor and City Commission. As a result of the collective bargaining agreements that have been approved by the Mayor and City Commission during FY 2025, the projected expenditures associated with the approved agreements are being accounted for in each of the applicable General Fund departments' projections . Additionally, approximately $0.6 million in savings is being projected in the budgeted General Fund contribution to the Educational Initiatives Fund based on one-time funding that is projected to be available for appropriation in the current fiscal year in the Education Initiatives Fund for education initiatives that were approved by the Mayor and City Commission. c·tyw·d A t 1 1 e ccoun s Projected vS FY 2025 Amended Budget FY 2025 Projected Amended % O~r / (Under) Budget Variance Expenditures $ 39,867 ,000 $ 32,742,000 $ (7 ,125,000) -17 .9% ~J While the above-listed General Fund departments comprise those projected to exceed their current amended budgets or with significant variances to budget in excess of 10.0%, or $300,000, all other departments within the General Fund are projected to have savings at year-end that may be realigned within the General Fund budget to address the projected department overages that were noted above if these projections are realized as of year-end. For a detail of General Fund expenditures by department, refer to the attached Exhibit A. ENTERPRISE FUNDS The City accounts for those goods and services provided by a particular department to external users for which a fee is charged as Enterprise Funds. The City's Sanitation, Sewer, Storm Water, Water, Parking, Building, and Convention Center operations comprise this category of Proprietary Funds. Year-end operating revenue and expenditure projections through September 30, 2025 provide an indication of anticipated year-end surpluses or shortfalls as of this point in time. Revenues for all Enterprise Funds are projected to be equivalent to or in excess of expenditures as of year-end . In addition, all Enterprise Funds budgets are projected to be under budget, with the exception of the Convention Center Fund budget that is detailed further below. Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 9 of 17 ENTERPRISE FUNDS Sanitation Sewer Storm Water FY 2025 Adopted Budget 27 ,305,000 64,025 ,000 40 ,259,000 FY 2025 Am ended Budget 28,419,000 65 ,853,000 41 ,982 ,000 FY 2025 Projections : Charges for Services 18,554,000 63,051,000 40,003,000 Other 6,178,500 4,732 ,000 4,124,000 Use of Fund Balance/Retained Earnings 3,379,500 - FY 2025 Revenue Projections 28 ,112,000 67,783 ,000 44,127,000 $ Over/(Under) Amended Budget (307,000) 1,930,000 2,145,000 % Over/(Under) Amended Budget -1 .1% 2 .9% 5.1% FY 2025 Expenditure Projections 28 ,112,000 64,251 ,000 41 ,914,000 $ Overl(Under) Amended Budget (307,000) (1,602,000) (68,000) % Over/(Under) Amended Budget -1 .1% -2.4% -0.2% Revenues Overl(Under) Expenditures 3,532,000 2,213,000 ~- Water Parking Building Convention Center 46 ,140,000 54,092,000 19,366,000 48 ,570,000 49,227 ,000 55 ,570 ,000 19,494,000 49 ,630,000 46 ,753,000 58,729,000 22 ,012 ,000 51 ,483 ,000 5 ,318,000 2,921 ,000 899,000 7,238,000 -- 52,071 ,000 61 ,650 ,000 22,911 ,000 58,721,000 2,844,000 6,080,000 3,417,000 9,091,000 5.8% 10 .9% 17.5% 18.3% 49,131 ,000 53,596 ,000 19 ,089 ,000 54 ,917 ,000 (96,000) (1,974,000) (405,000) 5,287,000 -0 .2% -3.6% -2.1% 10.7% 2,940,000 8,054,000 3,822,000 3,804,000 An analysis of actual operating expenses for the period October 1, 2024 through June 30, 2025 reflects that all Enterprise Funds have actual expenses that are less than three quarters of their current amended budgets. It is important to note that this is not representative of trends for a full fiscal year, as there is often a lag in the processing of expenditures, particularly those billed by outside entities for services provided. ENTERPRISE FUNDS Sanitation Sewer Storm Water Water Parking Building Convention Center FY 2025 Adopted Budget 27,305,000 64,025,000 40,259,000 46 ,140,000 54,092 ,000 19,366,000 48,570 ,000 FY 2025 Amended Budget 28,419 ,000 65 ,853,000 41 ,982 ,000 49 ,227,000 55 ,570 ,000 19,494,000 49,630,000 3/4 Adopted Budget 20,478 ,750 48 ,018,750 30 ,194,250 34,605,000 40 ,569,000 14,524,500 36 ,427 ,500 3/4 Amended Budget 21 ,314,250 49 ,389 ,750 31 ,486,500 36,920 ,250 41,677,500 14,620,500 37 ,222,500 Preliminary Revenues as of06/30/2025 17,436,134 48 ,501 ,764 31,494,035 37 ,098,595 46,024 ,253 18 ,062,401 10 ,757 ,712 Preliminary Expendrtures as of 06130/2025 19,174,374 38 ,919,432 20,432,251 28,981,711 29 ,847,208 13 ,064,914 11 ,325 ,917 Expendrtures Above/(Below) 314 Amended Budget (2 ,139,876) (10,470 ,318) (11 ,054,249) (7 ,938 ,539) (11 ,830 ,292) (1 ,555,586) (25 ,896,583) % Variance -10 .0% -21 .2% -35 .1% -21 .5% -28.4% -10 .6% -69 .6% Convention Center -The Convention Center Fund budget is projected to be above the current amended budget by approximately $5.3 million, or 10.7%, primarily due to an increase in the number of events (98) that have been held or are currently anticipated to be held in the current fiscal year compared to the 71 events that were originally anticipated when the FY 2025 budget was developed last year. Although expenditures are projected to exceed the current amended budget, revenues are projected to be above the current amended budget by approximately $9.1 million, or 18.3%, resulting in a projected additional surplus of approximately $3.8 million that would be available to be set aside for the renewal and replacement of Convention Center assets and/or future operating and other expenditure obligations should these projections be realized at year-end. Due to changes in the scheduling of events, the surplus projected as of the third quarter may still vary as of year-end; therefore, the Convention Center Fund's operations will continue to be monitored over the coming months. These projections will continue to be refined further as additional information becomes available. Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 10 of 17 INTERNAL SERVICES FUNDS The City accounts for goods and services provided by one department to other departments on a cost reimbursement basis as Internal Service Funds. Central Services, Fleet Management, Information Technology, the Office of the Inspector General, Facilities Management, Risk Management (Self Insurance), and Medical and Dental comprise this category of Proprietary Funds. Year-end operating revenue and expenditure projections through September 30, 2025 provide an indication of anticipated year-end surpluses or shortfalls as of this point in time. Similar to the Enterprise Funds, revenues for all Internal Services Funds are projected to be equivalent to or in excess of expenditures as of year-end. In addition, all Internal Services Funds budgets are projected to be under budget, with the exception of the Information Technology Fund budget that is detailed further below. INTERNAL SERVICES FUNDS Central Fleet Information Inspector Facilities Risk Medical& Dental Services Management Technology General Management Management Insurance FY 2025 Adopted Budget 1,152,000 19,121 ,000 20 ,351,000 1,947 ,000 13 ,322 ,000 27 ,961 ,000 52 ,354,000 FY 2025 Amended Budget 1,176,000 20,432,000 21 ,187,000 2,281 ,000 14,096 ,000 28 ,157,000 52,467,000 FY 2025 Projections: Charges for Services 1,087,000 18,064,000 18,693 ,000 1,932 ,000 12 ,382,000 25,204 ,000 Other 78 ,000 1,712 ,000 1,003,000 23 ,000 330 ,000 2 ,929 ,000 51 ,732,000 Use of Fund Balance/Retained Earnings 520 ,000 1,744,000 78 ,0 00 1,336,000 - FY 2025 Revenue Projections 1,165,000 20,296,000 21,440,000 2,033,000 14 ,048,000 28,133,000 51,732 ,000 $ Over/(Under) Amended Budget (11,000) (136,000) 253,000 (248,000) (48 ,000) (24,000) (735,000) % Over/(Under) Amended Budget -0 .9% -0 .7% 1.2% -10.9% -0.3% -0 .1% -1.4% FY 2025 Expendtture Projections 1,165,000 20 ,296,000 21 ,440 ,000 2,033,000 14,048,000 28,133,000 51 ,732 ,000 $ Over/(Under) Amended Budget (11,000) (136,000) 253,000 (248,000) (48,000) (24,000) (735,000) % Over/(Under) Amended Budget -0.9% -0 .7% 1.2% -10.9% -0 .3% -0 .1% -1.4% Revenues Over/(Under) Expenditures . . ·~ An analysis of actual operating revenues and expenses for the period October 1, 2024 through June 30, 2025 reflects that all Internal Services Funds have actual expenses that are less than three quarters of their current amended budgets with the exception of Information Technology Fund budget due to certain operating expenses that are incurred disproportionately in the early part of the fiscal year, rather than following a uniform distribution throughout the fiscal year. Similar to the Enterprise Funds, this is not representative of typical trends for a full fiscal year, as there is often a lag in the processing of expenditure, particularly those that are billed by outside entities for services provided. INTERNAL SERVICES FUNDS Central Fleet Information Inspector Facilities Risk Medical & Dental Services Management Technology General Management Management Insurance FY 2025 Adopted Budget 1,152 ,000 19,121 ,000 20 ,351,000 1,947,000 13 ,322 ,000 27 ,961 ,000 52,354 ,000 FY 2025 Amended Budget 1,176,000 20,432 ,000 21 ,187,000 2 ,281,000 14 ,096,000 28 ,157,000 52,467,000 3/4 Adopted Budget 864 ,000 14,340,750 15,263,250 1,460,250 9 ,991 ,500 20 ,970 ,750 39 ,265,500 3/4 Amended Budget 882 ,000 15,324,000 15,890,250 1,710 ,750 10 ,572 ,000 21 ,117,750 39 ,350 ,250 Preliminary Revenues as of 06/30/2025 865,311 14,451,149 14,450,2 45 1,462,613 9,346,976 21 ,674,731 36 ,238,551 Preliminary Expendttures as of 06/30/2025 792 ,994 11 ,336,971 16,110,150 1,332 ,445 9,224,071 17 ,781 ,966 35 ,773 ,711 Expenditures Above/(Below) 3/4 Amended Budget (89 ,006) (3 ,987,029) 219,900 (378 ,305) (1,347 ,929) (3,335,784) (3,576 ,539) % Variance -10.1 % -26 .0% 1.4% -22.1 % -12.7% -15.8% -9.1% - 1,; Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 11 of 17 Information Technology-The Information Technology Fund budget is projected to be 1.2%, or $253,000, above the current amended budget resulting from a contractual dispute that began last fiscal year and remained unresolved until the middle of the current fiscal year. The matter was recently resolved, which resulted in unexpected expenditures being incurred in the current fiscal year that were not budgeted. The department has been and continues to work on identifying potential savings in other budgeted operating expenditures to mitigate the impact of these unbudgeted expenditures. If this projection is realized at year end, the overage will be addressed at year-end through the use of prior year fund balance that is available in the Information Technology Fund. These projections will continue to be refined as additional information becomes available. SPECIAL REVENUE FUNDS The City's Special Revenue Funds consist of revenues and expenditures which are legally restricted or committed for specific purposes, other than debt service and/or capital projects. Special Revenue Funds include Resort Tax, as well as Transportation and People's Transportation Plan (PTP) Fund operations, 7th Street Garage operations, 5th & Alton Garage operations, the Tourism and Hospitality Scholarship Program, Information and Communications Technology Fund, Education Initiatives Fund, Franchise Waste Haulers and Sustainability Contributions, the Residential Housing and Homeless Relocation Programs, Red Light Camera Program operations, Emergency 911 (E-911) Fund, Miami Beach Cultural Arts Council (CAC), Festival of the Arts, Normandy Shores and the City's three Security Guard Special Taxing Districts (Biscayne Point, Biscayne Beach, and Allison Island), Miami City Ballet, Art in Public Places (AiPP) operations, Tree Preservation and Commemorative Tree Trust Fund, Beachfront Concession Initiatives Program, Beach Renourishment, Resiliency, Sustainability and Resiliency, and Biscayne Bay Protection Trust Funds, Police Confiscation Trust Funds (Federal and State), Police Training and School Resources Fund, and the Adopt-a-Bench and Brick Paver Programs. An analysis of actual operating revenues and expenses for the period October 1, 2024 through June 30, 2025 reflects that all Special Revenue Funds have actual expenses that are less than three quarters of their current amended budgets, with the exception of the People's Transportation Plan (PTP) Fund, 5th & Alton Garage, and Police Training operations due to certain operating expenses that are incurred more heavily in the early part of the fiscal year, rather than being evenly incurred throughout the fiscal year. Similar to other funds, the actuals incurred through June 30, 2025 are not typically representative of trends for a full fiscal year. Year-end operating revenue and expenditure projections through September 30, 2025 provide a more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time. While the actual revenues and expenses are as of June 30, 2025, the year-end projections incorporate more current information and data that may be available. Revenues for all Special Revenue Funds are projected to be equivalent to or in excess of expenditures as of year-end and all Special Revenue Funds budgets are projected to be under budget, except for the Normandy Shores Fund that is further detailed below. Normandy Shores -The Normandy Shores Local Government Neighborhood Improvement District is projected to be 2. 7%, or $9,000 above the current amended budget due to unforeseen damages to the gate that have led to additional repair costs. While current year expenditures are projected to exceed the current year budget, the overage would be offset by increased miscellaneous revenues projected in the current fiscal year if these projections are realized at year end. Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 12 of 17 Normandy Shores FY 2025 FY 2025 Amended Budget Projected Revenues $ 336 ,000 $ 347,000 Expenditures 336 ,000 345,000 Surplus/{Shortfall) $ -$ 2,000 ~ RESORT TAX Projected -.s Amended % Over I (Under) Budget Variance $ 11,000 3 .3% 9,000 2.7% $ 2,000 - The City's Resort Tax budget is primarily supported by taxes collected pursuant to Chapter 67-930 (Section 6) of the Laws of Florida, as amended, and Section 5.03 of the City of Miami Beach Charter, as amended. This legislation authorizes the use of Resort Taxes for the promotion of the tourism industry, which includes, but is not restricted to City services in tourism areas and enhanced City services during high impact periods, special events sponsorships, publicity, advertising, promotional events, convention bureau activities, capital improvements and the maintenance of all physical assets in connection therewith, and payment for the reasonable and necessary expenses of collecting, handling, and processing of said tax. 2% Resort Tax Based on actual collections for the current fiscal year from October 2024 to July 2025, total two percent Resort Tax revenues for FY 2025 are projected to be approximately 2.3%, or $1.8 million, above the current amended budget as of year-end, with the remaining months conservatively projected at approximately 100.1 % of FY 2024 collections since actual collections for the first ten months of the fiscal year are trending approximately 0.1 % above prior year collections for the same period. Total FY 2025 two percent Resort Tax expenditures are projected to be 1.2%, or $0.9 million, above the current amended budget as of year-end due to a $0.8 million increase in expenditures for additional public safety measures implemented during the City's high impact periods, such as Spring Break, that were not part of the current fiscal year budget, as well as a $0.1 million increase in the combined contributions to the Miami Beach Visitor and Convention Authority (VCA) and Greater Miami Convention & Visitors Bureau (GMCVB) that are based on a percentage of two percent Resort Tax collections projected above budget. 1% Resort Tax (Quality of Life) The proceeds of the one percent (1 %) bed tax, as adopted through Resolution No. 2018-30512, and continuing in FY 2025, are to be utilized as follows: 60% allocated for Transportation initiatives in tourist-related areas; 10% allocated equally among North Beach, Middle Beach and South Beach for capital projects that enhance Miami Beach's tourism-related areas; and 10% allocated to various arts and cultural programs. Based on actual collections for the current fiscal year from October 2024 to July 2025, one percent bed tax revenues for FY 2025 are projected to be 2.6%, or $0.5 million, above the current amended budget as of year-end. Since transfers for Transportation initiatives in tourism-related areas, North, Middle, and South Beach quality of life projects, and various arts and cultural programs that are funded by the CAC are directly based on one percent bed tax collections, expenditures are equally projected to be 2.6%, or $0.5 million, above the current amended budget as of year-end, of which approximately $278,000 is allocated to Transportation initiatives, $138,000 is allocated equally to North, Middle, and South Beach quality of life projects combined , and $46,000 is allocated to various arts and cultural programs that are funded by the CAC. :., ,.; 1: ' Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 13 of 17 1 % Resort Ta x (Convention Center) Similarly, the proceeds of the additional one percent bed tax levied solely for the purposes of expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center, including debt service related thereto, as well as providing capital renewal and replacement funding for the Miami Beach Convention Center are projected to be 2.6%, or $0.5 million, above the current amended budget as of year-end. Since the proceeds of the additional one percent bed tax must first provide for the payment of debt service and any excess be set-aside for capital renewal and replacement funding for the Miami Beach Convention Center, additional one percent bed tax expenditures are also projected to be 2.6%, or $0 .5 million , above the current amended budget as of year-end. Total Resort Tax Overall, due to actual Resort Tax collections for the first ten months of the current fiscal year from October 2024 to July 2025 trending slightly above collections for the same period of the prior yea r at an average of approximately 0.1 % and collections for the remaining months of the current fiscal year conservatively projected at approximately 100.1 % of prior year collections , combined Resort Tax revenues are projected to be 2.4%, or $2.7 million, above the current amended budget as of year-end, while expenditures are projected to be 1.6%, or $1.8 million, above the current amended budget, resulting in a projected surplus of approximately $0.9 million as of year-end, which the Administration recommends be set aside to fund required reserve levels and targets. FY 2025 FY 2025 Prellrrinary % Actual of Over/(Under) % Over/(Under) P<fopted Amended Actuals as of Amended Amended Amended Budget Budget 06/30/2025 Budget Budget Budget Revenues 2% Resort Tax 73,440 ,000 73 ,440,000 55,929,914 76.2% 74,189,000 749,000 1.0% Miscellaneous Revenues 2 ,175,000 2 ,175,000 2,438,127 112.1% 3,237,000 1,062,000 48.8% Fund Balance/Retained Earnings/PY Surplus 1,000 ,000 1,987,000 0.0% 1,987,000 0.0% 1% Resort Tax (QOL) 17,607,000 17,607 ,000 13,977,434 79.4% 18,069,000 462 ,000 2.6% Additional 1% Resort Tax for Convention Center 17 ,607,000 17,607 ,000 13,977,434 79.4% 18,069,000 462 ,000 2.6% Total Revenues 111,829,000 112,816,000 86,322,909 76.5% 115,551,000 2,735,000 2.4% Expenditures General Fund Contribution 42 ,117,000 42,117 ,000 31 ,587 ,750 75.0% 42,117,000 0.0% Sanitation Fund Contribution 2,055,000 2,055,000 1,541 ,250 75.0% 2 ,055,000 0.0% Contribution to GMCVB 9,051 ,000 9,051 ,000 5,102,945 56.4% 9,123,000 72,000 0.8% Contribution to VGA 3,526 ,000 3,526,000 2,365 ,412 67.1% 3,562 ,000 36,000 1.0% Contribution to Mt. Sinai 1,000,000 1,000,000 0.0% 1,000,000 0.0% Other Operating/Other Uses 18,866,000 19 ,853 ,000 13 ,896 ,468 70.0% 20 ,650,000 797,000 4.0% Transfer to NB , MB , SB Capital , Transp, and Arts (QOL) 17,607,000 17,607 ,000 13,977,434 79.4% 18,069,000 462,000 2.6% Addt'I 1 % Conv. Center Debt Service & Cap. Ren & Repl. 17,607,000 17,607,000 0 .0% 18,069,000 462,000 2 .6% Total Expenditures 111,829,000 112,816,000 68,471,259 60.7% 114,645,000 1,829,000 1.6% Excess of Revenues Over/(Under) Expenditures 17,851 ,650 906,000 906,000 CITY CENTER RDA The City of Miami Beach City Center Redevelopment Agency (City Center RDA) is a blended Special Revenue Fund and separate entity whose Chairperson and Board of Directors are also the City's Mayor and City Commission. Funding, which is required to be used within the boundaries of the City Center RDA pursuant to the approved redevelopment plan and amended interlocal cooperation agreement, is mainly derived from a portion of the tax increment revenues (95%) that are levied and paid annually by Miami-Dade County and the City to the City Center RDA with respect to properties that are within the geographical boundaries of the City Center RDA. An analysis of actual operating revenues and expenses for the period October 1, 2024 through June 30, 2025 reflects that the City Center RDA budget has actual expenses that are less than three quarters of the current amended budget. Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 14 of 17 Revenues for the City Center RDA are projected to be above expenditures as of year-end with expenditures projected to be equivalent to or below the current amended budget. It is important to note that in accordance with the most recent amended interlocal cooperation agreement, any surplus/savings realized from the City Center RDA's annual operat ions at year-end must be set aside and utilized to pay off the outstanding debt that was issued in 2015 fo r the expansion and renovation of the Miami Beach Convention Center. FY 2025 FY 2025 Preliminary %Actual of Over/(Under) % Over/(Under) Adopted Amended Actuals as of Amended Amended Budget Amended Budget Budget 06/30/2025 Budget Budget Revenues Tax Increment Funds -City 33,909,000 33,909 ,000 33 ,909 ,557 100 .0% 33 ,909,000 0.0% Tax ncrement Funds -County 26,460,000 26,460,000 26,460 ,176 100 .0% 26,460,000 0.0% Mscellaneous Revenues 373,000 373 ,000 976 ,501 261 .8% 1,103 ,000 730,000 195.7% Fund Balance/Retained Earnings/PY Surplus 6 ,200,000 16,441 ,000 0.0% 16,425,000 (16,000) -0 .1% Total Revenues 66,942 ,000 77 ,183,000 61,346,234 79 .5% 77 ,897,000 714,000 0.9% Expenditures Admin/Operating Expenditures 768,000 768,000 552 ,000 71 .9% 768,000 0.0% Proj ect Expend itures 13,756,000 13,997,000 9,432 ,605 67.4% 13,655,000 (342,000) -2 .4% Reserves , Debt Service, and Other Obligations 52 ,418,000 62 ,418,000 34 ,583,592 55.4% 62,760,000 342,000 0 .5% Total Expenditures 66,942 ,000 77,183,000 44,568,196 57.7 % 77 ,183,000 0 .0% Revenues Over/(Under) Expenditures 16,778,038 714,000 714,000 While the City Center RDA Garages and Shops below are located within the geographical boundaries of the City Center RDA, actual revenues and expenses as of June 30, 2025 with revenue and expenditure projections through September 30, 2025 are being presented separately in order to eliminate any misperception that the revenues generated from these facilities and their operations are pooled with TIF revenues and other City Center RDA Trust Fund revenues. An analysis of actual operating revenues and expenses for the period October 1, 2024 through June 30, 2025 reflects that the City Center RDA Garages and Shops all have actual expenses that are less than three quarters of the current amended FY 2025 budgets with the exception of Pennsylvania Avenue Garage and Pennsylvania Avenue Shops as a result of the disproportionate timing of certain operating expenses that are predominantly incurred in the early part of the fiscal year rather than distributed evenly throughout the fiscal year. RDA GARAGES AND SHOPS Anchor Anchor Pennsylvania Pennsylvania Collins Park Avenue Garage Shops Avenue Garage Shops Garage FY 2025 Adopted Budget 3,510 ,000 1,118,000 1,050,000 292,000 1,584,000 FY 2025 Amended Budget 3 ,510 ,000 1,118,000 1,050 ,000 292,000 1,6 10 ,0 00 3/4 Adopted Budget 2 ,632 ,500 838,500 787,500 219,000 1,188,000 3/4 Amended Budget 2,632,500 838,500 787,500 219 ,000 1,207,5 00 Prel iminary Revenues as of 06/30/2 025 2,362,262 768 ,621 798 ,080 2 ,979 1,220 ,8 28 Prelimi nary Expenditures as of 06/3 0/2025 2 ,401 ,800 136 ,798 905,188 223 ,418 1,104,324 Expenditures Above/(Below) 3/4 Amended Budget (230,700) (701 ,702) 117,688 4,418 (103,176) % Variance -8.8% -83.7% 14.9% 2.0% -8.5% ~ ~ -----~ Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 15 of 17 Revenues for the City Center RDA Garages and Shops are all projected to be equivalent to or in excess of expenditures as of year-end and expenditures are projected to be at or below the current amended budgets. RDA GARAGES AND SHOPS Anchor Anchor Pennsylvania Pennsylvania Collins Park Avenue Garage Shops Avenue Garage Shops Garage FY 2025 Adopted Budget 3,510,000 1,118 ,000 1,050,000 292.000 1,584,000 FY 2025 Amended Budget 3,510 ,000 1,118,000 1,050,000 292,000 1,610 ,000 FY 2025 Projections: Charges for Services 2,819,000 608,000 954 ,000 -1,473,000 Other 390,000 445,000 51,000 69,000 100,000 Use of Fund Balance/Retained Earnings ---223,000 - FY 2025 Revenue Projections 3,209 ,000 1,053,000 1,005,000 292,000 1,573,000 $ Over/(Under) Amended Budget (301,000) (65,000) (45,000) -(37,000) % Over/(Under) Amended Budget -8.6% -5.8% -4 .3% 0.0% -2.3% FY 2025 Expenditure Projections 3,209 ,000 1,020 ,000 946 ,000 292,000 1,573,000 $ Over/(Under) Amended Budget (301,000) (98,000) (104,000) -(37,000) % Over/(Under) Amended Budget -8.6% -8.8% -9.9% 0.0% -2.3% Revenues Over/(Under) Expenditures -33,000 59,000 -- ~ = NORTH BEACH CRA Similar to the City Center RDA, the North Beach Community Redevelopment Agency (North Beach CRA) is also a blended Special Revenue Fund and separate entity whose Chairperson and Board of Directors are the City's Mayor and City Commission. Funding, which is required to be used within the boundaries of the North Beach CRA pursuant to the approved redevelopment plan and interlocal agreement, is mainly derived from a portion of the tax increment revenues (60%) that are levied and paid annually by Miami-Dade County and the City to the North Beach CRA with respect to properties that are within the geographical boundaries of the North Beach CRA. An analysis of actual operating revenues and expenses for the period October 1, 2024 through June 30, 2025 reflects that the North Beach CRA budget has actual expenses that are less than three quarters of the current amended FY 2025 budget. Revenues for the North Beach CRA are projected to be in excess of expenditures as of year-end and expenditures are projected to be at the current year amended budget. It is important to note that in accordance with the current North Beach CRA interlocal agreement, any surplus/savings realized from the North Beach CRA's operations at year-end must be utilized in accordance with the North Beach CRA redevelopment plan. ,: ,, Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 16 of 17 FY 2026 FY 2026 Prellninary Adopted Amended .Actuals as of Budget Budget 06/30/2026 Revenues Tax Inc rement Fu nds -City 1,396,000 1,396,000 1,396,436 Tax Increment Fu nds -Counly 1,090 ,000 1,090 ,000 1,090,237 Mscellaneous Revenues 20 ,000 20 ,000 115,266 Fund Balance/Retaine d Earnings /PY Surplus g75,ooo Total Revenues 2,606,000 3,481 ,000 2,601,939 Expenditures Admin/O perat ing Expend itures 129 ,000 129 ,0 00 82,434 Project Expen ditu res 1,049,000 1,049,000 258 ,845 Reserves , Debt Service , and Other Obligations 1,328,000 2,303 ,000 Total Expenditures 2,606,000 3,481 ,000 341 ,279 Excess of Revenues Over/(Unde r) Expenditure s 2,260,660 CO NCLUSIO N % .Actual of Overl(Under) 'llo Overl(Under) .Arrended Anwncled Amancled Budget Budget Budget 100.0% 1,396,000 0.0% 100.0% 1,090 ,000 0.0% 576.3% 164,000 144,000 720 .0% 0.0% 975,000 0.0% 74.7% 3,626,000 144,000 4.1% 63 .9% 129 ,000 0.0% 24.7% 1,049,000 0.0% 0.0% 2,303,000 0.0% 9.8% 3,481 ,000 0.0% 144,000 144,000 All General Fund , Enterprise, Internal Service, and Specia l Revenue Funds budgets , includ ing the City Center RDA and North Beach CRA budgets , are projected to be at or below their curre nt FY 2025 amended budge t s as of year-end with revenues projected to be equivalent to or in excess of expenditures, except for specific General Fund departments, the Convention Center Enterprise Fund, the Information Technology Internal Services Fund, and the No rmandy Shores and Resort Tax Special Revenue Funds budgets as previously detailed in the analysis above . Current year trends will continue to be proactively monitored between now and the completion of the year-end projections in conjunction with finalization of the FY 2026 budgets and any material variances will be disclosed and discussed at upcoming Finance and Economic Resiliency Committee (FERC) and/or City Commission meetings. Quarterly updates w ill also be provided on cost-saving and efficiency opportuni t ies across all departments based on the directive from the Mayor and City Commission . EC/JDG/TOS/RA Letter to Commission -Fiscal Year 2025 Third Quarter Analysis Page 17 of 17 EXHIBIT A GENERAL FUND FY 202 5 FY 2025 Prelininary %.Actual of Adopted Amended Actuals as of Amended Budget Budget 06/30/2025 Budget REVENUES Ad Valorem Taxes 269,271,000 269,271 ,000 270,329,544 100.4% Ad Valorem Taxes -Pay-As-You-Go Capital 4,850,000 4,850,000 4,850,000 100.0% Ad Valorem Taxes -Capital Renewal & Replacement 4,118,000 4,118,000 4,118,000 100.0% Other Taxes 31 ,124 ,000 31 ,124,000 18,935,958 60.8% Licenses and Permits 22 ,931 ,000 22,931 ,000 22,766,732 99.3% Intergovernmental 14,129,000 14,129,000 9,177,514 65.0% Charges for Ser'lices 17 ,160 ,000 17 ,160,000 16,100,389 93.8% Fines and Forfeitures 1,955 ,000 1,955,000 1,702,462 87.1% Interest 8,172,000 8,1 72 ,000 4,410,562 54 .0% Rents and Leases 8,118,000 8,118,000 7,268,037 1.0% Miscellaneous 17,294 ,000 17,314,000 15,999,252 92.4% Other-Resort Tax Contribution 42,117,000 42,117,000 31,587,750 75 .0% Other-Non-Operating Revenues 14,925,000 14,925,000 10,787,250 72.3% Fund Balance/Retained Earnings/PY Surplus 12,184,000 0.0% T OTAL REVENUES 456,164,000 468,368,000 418,033,451 89.3% EXPENDITURES Mayor & Commission 3_3g5_000 ~.101 ,000 2,562 ,633 62.5% City Attorney 7,625,000 8,283,000 4,666,135 56.3% City Clerk 2,720,000 2,832 ,000 1,736,662 61 .3% City Manager 4,640 ,000 4,716,000 2 ,782 ,263 59 .0% Finance 9,134,000 10,466,000 6,644,092 63.5% Human Resources/Labor Relations 3,417,000 3,452,000 2,338,669 67.7% Marketing and Communications 3,318,000 3,344 ,000 2,045,038 61 .2% Office of Management and Budget 1,849,000 1,874 ,000 1,257,602 67.1% Procurement 3,409 ,000 3,447 ,000 2,270,243 65.9% Code Compliance 7,636 ,000 7,710,000 5,425,362 70.4% Economic Development 2,540,000 3,242 ,000 1,088,325 33.6% Housing & Community Services 5,622 ,000 5,979,000 3,524,133 58.9% Planning 6,043 ,000 6,414 ,000 3,884,594 60.6% Tourism and Cu lture 4 ,273,000 4,273,000 2 ,753,476 64.4% Capital Improvement Projects 6,600 ,000 6 ,686 ,000 3,964,348 59 .3% Environment & Sustainability 2,126,000 2,597 ,000 1,222 ,210 47.1% Facilities Management 4,448,000 4,634,000 2,980,251 64.3% Parks & Recreation 48 ,315 ,000 49,527 ,000 33,187 ,762 67.0% Public Works 17,988 ,000 18,953,000 12 ,085,682 63.8% Fire 121 ,772 ,000 123,317,000 88,762,492 72 .0% Pol ice 151 ,926 ,000 152 ,654,000 112,143,903 73.5% Citywide (net of individual items below): 17 ,500 ,000 20,334 ,000 5,597,891 27.5% Pay-As-You-Go Capital Fund 8,349 ,000 8,433 ,000 8,349,000 99.0% General Fund Reserve 3,128,000 3,128,000 0 .0% Capital Renewal & Replacement 4 ,368 ,000 4,368 ,000 4,368,000 100.0% Info & Comm Technology Fund 300,000 300 ,000 300,000 100.0% Capital Reserve Fund 978 ,000 978,000 978,000 100.0% Ed ucation Compact Fund 2,245 ,000 2,326,000 0.0% TOTAL EXPENDITURES 456,164,000 468,368,000 316,918,765 67 .7% REVENUES OVER/(UNDER) EXPENDITURES 101,114,686 21.6% REVENUES OVER/(UNDER) EXPENDITURES Additional Set aside of Projected Go~ Courses Surplus for Miami Beach Golf Course Renovation Project REMAINING REVE NUES OVER/(UNDER) EXPENDITURES Additional General Fund Reserve and Reserve Target (based on Proposed FY 2026 Budget) REMAINING REVENUES OVER/(UNDER) EXPENDITURES I Over/(Under) % Over/(Under) Amended Amended .. Budget Budget 270,338,000 1,067 ,000 0.4% 4 ,850,000 0.0% 4 ,118,000 0.0% 29,369,000 (1,755 ,000) -5.6% 29,328,000 6,397 ,000 27.9% 13,181 ,000 (948 ,000) "'6 .7% 19 ,338,000 2,178,000 12.7% 6 ,668 ,000 4,7 13,000 241.1% 4 ,805,000 (3,367,000) -41 .2% 9 ,056,000 938 ,000 11 .6% 17 ,306,000 (8,000) 0.0% 42 ,117,000 0.0% 14 ,925,000 0.0% 12 ,184,000 0.0% 477,583,000 9,215,000 2.0% 3,811 ,000 (290,000) -7.1% 7,833,000 (450,000) -5.4% 2 ,714,000 (118,000) -4.2% 4 ,327,000 (389,000) -8.2% 10,015,000 (451,000) -4.3% 3,322,000 (130,000) -3.8% 3,146,000 (198,000) -5.9% 1,785,000 (89,000) -4.7% 3,260,000 (187,000) -5.4% 7,552,000 (158,000) -2.0% 3,103,000 (139,000) -4.3% 5,800,000 (179,000) -3.0% 6 ,162 ,000 (252,000) -3.9% 4,182,000 (91,000) -2 .1% 6 ,180,000 (506,000) -7.6% 2,542,000 (55,000) -2.1% 4,398,000 (236,000) -5.1 % 49,078,000 (449,000) -0.9% 18,390 ,000 (563,000) -3 .0% 124,690,000 1,373 ,000 1.1% 155,514,000 2,860,000 1.9% 13,742 ,000 (6,592,000) -32.4% 8,433 ,000 0.0% 3,128,000 0.0% 4,368,000 0 .0% 300,000 0.0% 978,000 0 .0% 1,793,000 (533 ,000) -22.9% 460,546,000 (7,822,000) -1.7% 17,037,000 I 17,037,000 (1 ,454,000) l!f 15,583,000 (3,683,250) 11,899,750 ~~"