HomeMy WebLinkAboutResolution 2026-34162RESOLUTION NO. 2026-34162
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH ACCEPTING THE RECOMMENDATION OF THE FINANCE AND
ECONOMIC RESILIENCY COMMITTEE (FERC) TO APPROVE AND
FORMALLY ADOPT THE CITY OF MIAMI BEACH COMPREHENSIVE
FINANCIAL POLICIES.
WHEREAS, on October 30, 2024, the Mayor and City Commission referred Item C4O to
the Finance and Economic Resiliency Committee (FERC) to discuss the creation of a
Comprehensive Financial Policy for the City of Miami Beach; and
WHEREAS, the Government Finance Officers Association (GFOA) strongly advocates for
the adoption of formalized financial policies, recognizing their critical role in supporting strategic
and sustainable financial management; and
WHEREAS, over time, the City Commission has adopted numerous resolutions to
establish guidance on critical financial policies, addressing areas such as capital reserves, fund
balance management, allocation of nonrecurring revenues, utilization of annual surpluses, and
funding strategies for capital projects; and
WHEREAS, the City Administration recommends consolidating all previously issued
Commission directives on financial policies into a single, comprehensive framework to streamline
policy implementation, enhance transparency, and ensure alignment with the City's long-term
financial goals; and
WHEREAS, on October 30, 2024, the Mayor and City Commission ("City Commission")
approved a referral to FERC to discuss the creation of Comprehensive Financial Policies for the
City of Miami Beach ("Comprehensive Financial Policies"); and
WHEREAS, on June 4, 2025, the FERC recommended that the item be returned to the
Commission to consider a request for a referral of the Comprehensive Financial Policies to the
Budget Advisory Committee along with an analysis of total compensation as a percentage of the
General Fund budget; and
WHEREAS, on September 9, 2025 and November 12, 2025, the City of Miami Beach
Comprehensive Financial Policies were presented to the BAC; and
WHEREAS, the analysis of total compensation as a percentage of the General Fund
budget was presented and discussed and the BAC did not make any recommendations in relation
thereto; and
WHEREAS, the BAC also reviewed and discussed the Comprehensive Financial Policies
at length and provided recommendations to FERC; and
WHEREAS, on February 20, 2026, staff presented the revised Comprehensive Financial
Policies with recommendations from the BAC to the FERC; and
WHEREAS, all BAC recommendations were accepted by FERC provided, the FERC
recommended that the start date of the "Waiver of Special Event Fees" policy specify the date
June 25, 2025 as the commencement date for such policy as that was the date the Mayor and
City Commission adopted this policy pursuant to Resolution No. 2025-33757; and
WHEREAS, the Mayor and City Commission desire to formally adopt the Miami Beach
Comprehensive Financial Policies attached to this Resolution as Exhibit "A°.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission approve the recommendation of the Finance and Economic Resiliency Committee
to approve and formally adopt the Miami Beach Comprehensive Financial Policies.
PASSED AND ADOPTED this �f day of March 2026.
ATTEST:
L MAR 2 0 2026
Rafael E. Granado, City Clerk
Steven Meiner, Mayor
APPROVED AS TO
FORM &LANGUAGE
& FOR EXECUTION
313/�T4
t4mOr"" ome
EXHIBIT A
CITY OF MIAMI BEACH COMPREHENSIVE FINANCIAL POLICIES
The City of Miami Beach acknowledges that a primary factor to the long-term sound financial
management of its finances is the adoption of formal financial policies that govern the financial
management and creditworthiness of the City. This view is supported by bond rating agencies,
residents, and the Government Finance Officers Association (GFOA). The following
Comprehensive Financial Policies are primarily intended to safeguard the financial resources of the
City.
General Fund Balance/Contingency Planning
1. The City of Miami Beach shall maintain the General Fund Emergency Reserve at two
(2) months of total expenditures of the General Fund Operating Budget of the ensuing
fiscal year for use as defined below.
Prior to any expenditures from this reserve, the Mayor and City Commission
must declare an emergency affecting life, health, property, or public safety and
authorize said expenditures by a six -sevenths (6/7) vote. After any expenditure
from said reserve, all reimbursements from State and Federal Agencies for
emergency relief are to be redeposited into such reserve. Any amounts
disbursed which are not recovered from governmental agencies shall be
appropriated from Unassigned Fund Balances of the General Fund to restore
the Emergency Reserve to its then established level.
• If there is an insufficient Unassigned Fund Balance to restore said reserve to its
then established level, the Administration is directed to restore the reserve to
its appropriate level by transferring available General Fund revenues in excess
of expenditures at fiscal year-end and/or with a partial replenishment to be
spread over no more than four (4) budget years.
2. The City of Miami Beach shall have a goal to also maintain a General Fund
Contingency Reserve equal to one (1) month of the General Fund Operating Budget
that, in combination with the Emergency Reserve, represents three (3) months or
twenty-five percent (25%) of the General Fund Operating Budget expenditures for the
ensuing fiscal year.
• Said Contingency Reserve shall be increased or decreased annually, based on
the ensuing fiscal year's adopted budget. This does not preclude the
Commission from utilizing the Contingency Reserve during the fiscal year. In
the event that this reserve falls below the goal, the City shall restore the
Contingency Reserve through various methods including using fiscal year-end
General Fund surplus, a prior fiscal year surplus over the required goal
identified through annual external audit, or through the ensuing fiscal year's
surplus over the Current Service Level (CSL) budget.
• If there is an insufficient Unassigned Fund Balance to restore said reserve to its
then established level, the Administration is directed to restore the reserve to
its appropriate level by transferring available General Fund revenues in excess
of expenditures at fiscal year-end and/or with a partial replenishment to be
spread over no more than four (4) budget years.
Resort Tax Fund Balance/Contingency Planning
1. The City of Miami Beach shall maintain a minimum Resort Tax Emergency Reserve in
the 2% Resort Tax Fund of two (2) months of total expenditures of the ensuing fiscal
year for use as defined below.
Prior to any expenditures from this reserve, the Mayor and City Commission
must declare an emergency affecting life, health, property, public safety, or a
significant economic impact on resort tax collections, and authorize said
expenditures by a five -sevenths (5M vote. The Administration is directed to
restore the reserve to its appropriate level by transferring available 2% Resort
Tax revenues in excess of expenditures at fiscal year-end and/or with a partial
replenishment to be spread over no more than within four (4) budget years.
• Said Emergency Reserve shall be increased or decreased annually, based on the
ensuing fiscal year's adopted budget, but shall be maintained at a minimum
amount of two (2) months of total revenue of the 2% Resort Tax of the then
existing Resort Tax Fund Budget.
2. The City of Miami Beach shall have a goal to also maintain a Resort Tax Contingency
Reserve equal to four (4) months of the Resort Tax Operating Budget that, in combination
with the Resort Tax Emergency Reserve, represents six (6) months or fitty percent (50%)
of the 2% Resort Tax Operating Budget expenditures for the ensuing fiscal year.
Said Resort Tax Contingency Reserve shall be increased or decreased, based
on the ensuing fiscal years adopted budget, annually -
Other Fund Balance/Contingency Planning
1. The City of Miami Beach shall have a goal to develop and maintain appropriate levels of
operating and capital reserves in the applicable Enterprise, Internal Services, and Special
Revenues Funds.
2. The City of Miami Beach shall have a goal of maintaining a reserve of one hundred percent
(100%) of pending claims in the Risk Management Fund and shall strive to fund two-thirds
(2/3) of the estimated value of insurance claims incurred but not reported.
Use of Non-Recurrtno Revenues -(All Fundsl
The City of Miami Beach will use one-time, non -recurring revenue for capital expenditures and/or
one-time expenditures and not subsidize recurring personnel, operations, and maintenance costs.
Use of Lump Sum Payments
The City of Miami Beach will allocate twenty percent (20%) of any one-time, unrestricted cash
payment of $500,000 or more received by the City —such as proceeds from lease renegotiations,
legal settlements, audit findings, or other lump sum payments. These funds will be deposited into a
designated trust fund to be used for capital expenses or other one -lime costs related to
transportation, excluding reasonable transaction -related expenses and any other outstanding
obligations directly associated with the original payment.
Capital Asset Acauisition and Renewal and Replacement(RBRI
1. Capital Budget Policy - The City staff will prepare a five-year capital expenditure and
funding plan (the "Capital Improvement Plan") for all relevant funds each fiscal year.
The first year of the Capital Improvement Plan will constitute the budget for the respective
fiscal year. Annually and as part of the Capital Improvement Plan development process,
the City staff will prioritize the budget expenditures recognizing the following criteria in the
following order:
• Regulatory compliance
• Safety
• Criticality of asset renewal and replacement
• Efficiencies in joint project construction with other public agencies
• Availability of funding sources including grants, affordability, and other factors
prescribed from time to time
• Impact to the City's resiliency efforts
• Expansion/New Facilities
2. Capital Renewal and Replacement Fund - The City shall maintain a dedicated portion of
the operating millage for General Fund Capital Renewal and Replacement, which shall be
used for capital projects that extend the useful life of the City's General Fund capital assets
and shall be limited to projects defined as follows:
Projects that extend the useful life of an asset by at least 5 years with a threshold
value of at least $25,000; for example the replacement of a major component of
the asset such as roofs, HVAC systems, electrical systems, fire alarm systems,
sprinkler systems that due to significant deterioration would constrain the
remaining useful life of the capital asset or projects that significantly reduce future
maintenance cost over the remaining life of the asset in an amount that is greater
than the renewal and replacement costs of the project.
• The Mayor and Commission may authorize additional uses of the funds for
unforeseen or unanticipated events affecting life, health, property, or public safety
subject to a five -sevenths (5/7) vote.
• Appropriation of project specific expenditures from the Capital Renewal and
Replacement Fund shall be included in the City Manager's annual budget based
on an annual recommendation of the City Manager or his/her designee regarding
range of asset life extended; identification of fully depreciated or deteriorated
components of City assets; inventory requirements for large capital components
of assets; or reduction in maintenance costs over the remaining life of the asset.
• Appropriation of project specific expenditures shall be adopted by the Mayor and
City Commission.
• Interest earnings that accrue in the Capital Renewal and Replacement Fund shall
be included in the appropriation for the Fund in the following fiscal year.
• Changes among project specific appropriations may be authorized by the City
Manager to the extent that no new projects be added, and the total annual
allocation is not exceeded.
• During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Capital Renewal and Replacement Fund shall
require prior approval and authorization by a majority of the City Commission.
Excess project specific appropriations not required will be available for
re -appropriation the following year.
• Project specific appropriations that are not expended in a given fiscal year shall
remain in the Capital Renewal and Replacement Fund for the life of the project.
3. Pay -As -You -Go Capital Fund - The City shall maintain a dedicated portion of the
operating millage for Pay -As -You -Go Capital, which will provide dedicated funding for
General Fund capital projects and allow for growth over time with property values.
• Appropriation of project specific expenditures shall be adopted by the Mayor and
City Commission.
• Interest earnings that accrue in the Pay -As -You -Go Capital Fund shall be included
in the appropriation for the Fund in the following fiscal year.
• Changes among project specific appropriations may be authorized by the City
Manager to the extent that no new projects be added, and the total annual
allocation is not exceeded.
• During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Pay -As -You -Go Capital Fund shall require prior
approval and authorization by a majority of the City Commission. Excess project
specific appropriations not required will be available for re -appropriation the
following year.
• Project specific appropriations that are not expended in a given fiscal year shall
remain in the Pay -As -You -Go Capital Fund for the life of the project.
4. 5% Annual Funding for Capital Needs -The City shall have a goal to fund for the following
capital needs as a permanent part of the budget, in an amount not less than five percent
(5%) of the annual fiscal operating budget of the General Fund of the City:
• Capital Renewal and Replacement Fund - to ensure adequate funding for the
renewal and replacement of the City's General Fund facilities to extend the useful life
or replace equipment whose useful life has expired.
• Capital Reserve Fund - to help ensure adequate funding related to previously
approved capital projects for expenditures due to bids that are over -budget, change
orders, or other unforeseen items for General Fund projects.
• Pay -As -You -Go Capital Fund - to ensure adequate on -going reinvestment in capital
plant and equipment and avoid deferring capital needs until there is a major bond issue.
• Streets & Sidewalks Renewal & Replacement Fund - to help ensure adequate
funding for the renewal and replacement of the City's streets and sidewalks.
• Information and Communications Technology Fund - to help ensure adequate
funding for the procurement of new or enhanced information and technology needs of
the City.
5. Allocation of General Fund Fiscal Year End Surplus at Fiscal Year-end — After fully
funding the General Fund reserve goals, the City shall transfer to the Capital Reserve Fund
50% of the annual General Fund revenues in excess of expenditures with the remaining
50% to be transferred to either the Capital Renewal and Replacement Fund, Streets &
Sidewalks Renewal and Replacement Fund, or Pay -As -You -Go Capital Fund.
6. Allocation of Preliminary General Fund Surplus durina Budget Process- As part of
the annual budget development process, the preliminary budget presented by the City
Manager shall include a recommended allocation of projected General Fund surplus funds
according to the following priorities:
• Capital Investment Priority: Fifty percent (50%) of any projected surplus above the
Current Service Level (CSL) budget shall be transferred to support capital projects,
until the City achieves its goal of dedicating at least 5% of the annual General Fund
budget to capital needs.
• Strengthening Reserves: Twenty-five percent (25%) of any projected surplus above
the CSL budget shall be allocated to augment the ensuing year's General Fund
reserves, until such time as the City establishes and meets an appropriate reserve
contribution benchmark aligned with the growth of the General Fund budget.
7. General Fund Interest Income for Capital Projects — The City shall allocate twenty-five
percent (25%) of the total projected interest income in the General Fund, starting in FY
2025, for one-time capital expenditures. The City shall increase this percentage by five (5)
additional percent each subsequent fiscal year.
8. Review of Impact Fees — The City shall periodically review all impact fees to ensure that
the fees are equitable, reflect current economic conditions, and adequately fund the
necessary infrastructure improvements, as applicable. This review process will include an
analysis of the impact fees' effectiveness in achieving the City's goals, consideration of any
changes in development pattems, and adjustments based on inflation and other relevant
factors.
9. Waiver of Special Event Fees - The City shall have a policy that the waiver of special
event fees, including but not limited to special event application fees, permit fees, vehicle
beach access passes, square footage fees, and park user fees, as well as the subsidizing
of any City services fees, including but not limited to police, fire, and sanitation, shall be
limited to the first three years of an event (starting from June 25, 2025), with an exception
for events held during the months of July, August, and September to the extent necessary
based on financial hardship; and further, direct the City Manager to establish a review
process for fee waiver applications to ensure compliance with this policy.
10. Decrease in GO Bond Millage
• Any fiscal year in which the GO Bond Debt Service Millage will decrease, the budget
will reflect a transfer of the millage decrease to the Capital Renewal and
Replacement Fund (CRR) until such time as there is sufficient funding for all
programmed CRR projects in that fiscal year.
11. City Center RDA Closure — Use of Surplus for Capital Funding
• Upon closure of the City Center RDA, the resulting surplus will be set aside on a
recurring basis in the General Fund at the level of the year of City Center RDA
closure in the following order of precedence:
1. Fully fund the annual requirements of the Streets & Sidewalk Renewal &
Replacement Fund
• This policy will permit the City to fully fund the resurfacing of all City
streets and the replacement of all City sidewalks when scheduled.
2. The balance of the allocation is to be transferred to the Capital Renewal &
Replacement Fund
Enterprise Fund Policies
The primary objectives of these following Enterprise Fund financial policies are:
• To maintain strong operations and maintenance programs and provide the
necessary funds to finance priority and ongoing capital projects in order to deliver
high -quality utility services.
• To have available funds and access to financial resources to be able to quickly
respond to unplanned Capital Improvement Plan projects, emergencies,
catastrophic, and Force Majeure Incidents and to allow for the continued ability to
provide utility services.
• To maintain strong financial conditions aimed at preserving and enhancing the
Enterprise Fund's credit ratings to minimize capital project financing costs and to
promote long-term system sustainability.
• To maintain reasonable and justified levels of rates and fees over the long run in
accordance with good business practices.
1. Credit Rating Policy (Water, Sewer, and Stormwater Funds) - The City shall strive to
maintain financial performance for the Water, Sewer, and Stormwater Funds consistent
with that of utilities with an uninsured bond rating of 'AA" or better. A higher credit rating
can result in lower borrowing costs and lower rates over the long term for the benefit of the
customers of the systems.
2. Oneratina Reserve Policy - The City will establish and maintain cash -funded Operating
Reserves for the Enterprise Funds to provide adequate levels of working capital to i)
mitigate current and future risks regarding revenue shortfalls and unanticipated expenses;
and ii) ensure stable services and rates.
The City will maintain a minimum unencumbered and unrestricted Operating
Reserve balance equal to three (3) months, or twenty-five percent (25%) of the
current fiscal year budgeted operating expenses (the Operating Reserve Target).
• If the Operating Reserve unrestricted balance at the end of the preceding fiscal
year is less than the Operating Reserve Target, the City will develop a plan to re-
establish the operating reserves over a period not to exceed three (3) fiscal years.
3. Renewal & Replacement Reserve Policy - The City will establish and maintain for the
Enterprise Funds an ongoing cash -funded Renewal & Replacement fund for renewals,
replacements, and Capital Improvements.
• The City will maintain for the funds a minimum unappropriated and unencumbered
Renewal & Replacement Reserve equal to the prior year's annual depreciation
expense plus ten percent (t0%) (the Renewal & Replacement Reserve Target).
• The Renewal & Replacement Reserve will be in addition to the funds held on
deposit for purposes of maintaining a minimum Operating Reserve. It is
contemplated that the monies on deposit that are included as a component of the
Renewal & Replacement Reserve may be expended on renewals, replacements,
and Capital Improvements to meet the overall financial objectives and funding
needs of the Enterprise Fund.
• The balances established in this reserve are to:
• Mitigate risks regarding planned and unanticipated renewals, replacements,
and capital expenditures, or increases in materials, labor, or other costs from
ongoing or planned projects.
• Provide for changes in expenditure priorities resulting in the advancement or
addition of certain projects.
• Promote the availability of funds for renewals, replacements, and capital
reinvestment for the existing infrastructure, with the intent to limit outages and
inability to provide service from equipment or infrastructure failures or
because of Force Majeure incidents due to weather events and other
occurrences.
• Ensure reliable service and ameliorate the effects to monthly service rates
from unanticipated costs.
If the Renewal & Replacement Reserve balance at the end of the preceding fiscal
year is less than the Renewal & Replacement Reserve Target, the City will
develop a plan to re-establish the Renewal & Replacement Reserve in an amount
equal to the Renewal & Replacement Reserve Target over a period not to exceed
three (3) fiscal years. Compliance with the re-establishment of the Renewal &
Replacement Reserve Target may not be achieved through the deferral of
maintenance and/or identified capital reinvestment.
4. Ooeratina Budget Policy -The annual operating budget for each Enterprise Fund will:
• Be structurally balanced, with revenues sufficient to meet expenses (those that
are ongoing in nature).
• Reflect rates set at levels intended to support the direct and indirect costs of the
systems, with the intent to provide the lowest reasonable rates over time, not
necessarily the lowest fees and user charges during the current or budget fiscal
year, and at a level necessary to ensure the adequate maintenance and
operations of the systems.
• Reflect these financial policies and include amounts necessary to maintain the
required operating and capital reserves.
Rate and Financial Plan Review Policy (Water. Sewer, and Stormwater Funds) - The
City staff will use a formal forecasting and expenditure monitoring process in the evaluation
of the financial positions of the Water, Sewer, and Stormwater Funds.
These processes are intended to: i) minimize financing costs through proper
planning for Renewal & Replacement and Capital Improvement spending and
financing needs; ii) obtain formal endorsement by the City Commission for long-
term financial needs and sources of financing; and iii) maintain or strengthen the
credit ratings of the Water, Sewer, and Stormwater Funds.
The City shall perform a formal rate study at least once every five years, and the
City shall adopt a five-year schedule of rates, fees, and charges based on the
results of the rate study.
As part of the annual financial planning process, the City staff will prepare multi-
year operating and capital budgets to ensure rates are sufficient to meet the needs
of the utilities.
The Water, Sewer, and Stormwater Funds will be run in a business -like manner.
Rates and fees will be set to ensure the full recovery of the Water, Sewer, and
Stormwater Funds operating and capital expenditures. This practice will ensure
that the Water, Sewer, and Stormwater Funds has reduced financial risk and will
meet Federal, State, and local regulations as well as service area demands.
1. Budgeting -Grants
• The Administration shall identify all City Commission sponsored grants which
contemplate recurring funding to the grantees as a separate line item in the
proposed Operating Budget and/or budget presentations made to the City
Commission as part of the annual budget process.
The Administration shall review and make recommendations to the City
Commission on recurring grants every three (3) years, to allow for periodic review
and approval of all Commission -sponsored initiatives or grant programs which
involve recurring funding and thereby ensure that recurring grants align with the
City Commission's evolving budget priorities.
2. Budgeting — Quarterly review
The Administration shall review and report to the City Commission of adjustments
and amendments to the City of Miami Beach Annual Operating Budget for
purposes of conforming actual budget expenditures to the adopted budget and
shall occur at least once every fiscal quarter.
3. The City of Miami Beach shall create a strategic plan that identifies multi -year strategic
priorities with corresponding result measures for each priority.
4. Annually, or as needed, the City of Miami Beach shall use a strategic planning process to
develop initiatives that support the strategic plan priorities.
5. The budget process and format should be performance -based and focused on Key Intended
Outcomes and performance measures.
6. Any new initiatives that are not identified in the strategic plan that are greater than 0.5% of
budget for the fund impacted per year, or cumulatively, must be first considered as part of
the City's annual strategic planning or budget process to develop initiatives.
1. Ethics Requirements —City staff, the City Commission, consultants, and underwriters
shall be familiar with and adhere to the laws of the State of Florida, and the
requirements of Municipal Securities Rulemaking Board (MSRB), as applicable. All
debt financing participants shall always maintain the highest standards of professional
conduct. There shall be no conflict of interest between the City and any debt -financing
participant.
2. Debt Issuance
The City will utilize its various consultants to determine the amount, timing, and
structure of a debt issuance. These professional consultants may include but not
be limited to registered financial advisors, bond and disclosure counsel, rate
consultants, and general engineering consultants. All such consultants shall
provide the City with their relevant written professional opinions as to the projected
cost of proposed capital projects and maintenance, the expected revenue to be
generated by such projects, and the expected cost of financing such projects
along with legal opinions as to the disclosure, authorization, and tax exemption of
all such debt issuance.
• Debt repayments should not extend beyond the useful life of the asset financed
or 30 years, whichever is less.
• Short -Term Financing - The City may elect to issue short-term financing vehicles
such as a line of credit or commercial paper as a bridge for an anticipated funding
gap. However, the City will not use short-term borrowing to finance operating
needs.
3. Refundinas and Defeasance
• Bond refunding of outstanding debt may be pursued when a threshold of Net
Present Value (NPV) savings is greater than or equal to five percent (5%). NPV
savings shall be calculated using the aggregate amount of savings on a refunding
transaction taking into consideration the time value of money and net of all costs
of issuance. The City's financial advisor must confirm the calculation that the NPV
savings meets the threshold requirement as defined in this paragraph.
• However, a determination that a bond refunding meets the minimum NPV savings
threshold will not necessarily result in the City refunding any bond series.
4. Disclosures
The CFO will coordinate for the City, through a third -party service, annual
disclosure filings, as well as other disclosures.
The City will not disseminate any financial information to any investor or investors
where such information is not readily available to all investors. However, general
financial information disseminated by the City via means such as the City's web
site is for general informational purposes only and is not intended by the City to
be relied upon by others for investment purposes.
Review
This policy is to be reviewed at least every five (5) year period starting from initial policy approval
dale.
Resolutions - C7 D
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: March 18, 2026
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH ACCEPTING THE RECOMMENDATION OF THE FINANCE AND
ECONOMIC RESILIENCY COMMITTEE (FERC) TO APPROVE AND FORMALLY
ADOPT THE CITY OF MIAMI BEACH COMPREHENSIVE FINANCIAL POLICIES.
RECOMMENDATION
The City Administration ("Administration") recommends that the Commission accepts the Finance and
Economic Resiliency Committee's ("FERC" or "Committee ") recommendation to approve the Cityof Miami
Beach Comprehensive Financial Policies.
BACKGROUND/HISTORY
On October 30, 2024, the Mayor and City Commission ("City Commission") referred Item C40 to the FERC,
to discuss the creation of a Comprehensive Financial Policy for the City of Miami Beach.
On tune 4, 2025, the FERC recommended the item return to Commission to consider a request of a referral
of the Miami Beach Comprehensive Financial Policies to the Budget Advisory Committee along with an
analysis of total compensation as a percentage of the General Fund budget and to return to FERC to
discussion. As part of the discussion at FERC, it was recommended that a policy be added to have all
impact tees periodically reviewed by the Administration. That recommendation is included in the attached
version of the policies.
On September 9, 2025 and November 12, 2025, the City of Miami Beach Comprehensive Financial Policies
were presented to the BAC. The BAC reviewed and discussed the Policies at length and provided
recommendations. The analysis of total compensation as a percentage of the General Fund budget was
presented and discussed but the BAC did not recommend any additions to the Policies.
On February 20, 2026, staff presented the revised Comprehensive Financial Policies with
recommendations from the BAC. All BAC recommendations were accepted by FERC provided, the FERC
recommended that the start date of the "Waiver of Special Event Fees" policy specify the date June 25,
2025 as the commencement date for such policy as that was the date the Mayor and City Commission
adopted this policy pursuant to Resolution No. 2025-33757.
ANALYSIS
The Government Finance Officers Association (GFOA) strongly advocates for the adoption of formalized
financial policies, recognizing their critical role in supporting strategic and sustainable financial
management. By implementing comprehensive written policies, governments can enhance fiscal
discipline, ensure consistency in decision -making, and position themselves for long-term success. These
policies serve as a robust framework to guide financial practices providing a clear roadmap that empower
governments to:
159 of 1677
• Institutionalize good financial management practices - Formal policies usually outlive their
creators, and, thus, promote stability and continuity. They also prevent the need to re -invent
responses to recurring issues.
• Clarify and crystallize strategic intent for financial management- Financial policies define a shared
understanding of how the organization will develop its financial practices and manage its
resources to provide the best value to the community.
• Define boundaries - Financial policies define limits on the actions staff may take. The policy
framework provides the boundaries within which staff can innovate in order to realize the
organization's strategic intent.
• Support good bond ratings and thereby reduce the cost of borrowing.
• Promote long-term and strategic thinking - The strategic intent articulated by many financial
policies necessarily demands a long-term perspective from the organization.
• Manage risks to financial condition- A key component of governance accountability is not to incur
excessive risk in the pursuit of public goals. Financial policies identify important risks to financial
condition.
• Comply with established public management best practices - The Government Finance Officers
Association (GFOA), through its officially adopted Best Practices endorsement of National
Advisory Council on State and Local Budgeting (NACSLB) budget practices and the GFOA
Distinguished Budget Presentation Award Program, has recognized financial policies as an
essential part of public financial management.
Over time, the City Commission has adopted numerous resolutions to establish guidance on critical
financial policies, addressing areas such as capital reserves, fund balance management, allocation of
nonrecurring revenues, utilization of annual surpluses, and funding strategies for capital projects. Certain
policies, such as the application of General Fund interest earnings toward capital projects, have been
embedded within annual budget resolutions. Recognizing the need for a more cohesive and efficient
approach, the Administration recommends consolidating all previously issued Commission directives on
financial policies into a single, comprehensive framework. This consolidation will streamline policy
implementation, enhance transparency, and ensure alignment with the City's long-term financial goals.
The following is a list of Commission resolutions that were used as the framework for the recommended
set of Financial Policies:
1. Resolution #94-21258— Conforming Actual Budget Expenditures to the Adopted Budget
2. Resolution #96-22014 — Establishing of a Permanent Reserve for Contingencies in the General
Fund
3. Resolution #98-22661 — Establishing of Permanent Reserve for Contingencies in the General Fund
(Amended)
4. Resolution #2002-24764 — Capital Reserve Policy
S. Resolution #2004-25697— Establishing a Capital Renewal and Replacement Fund
6. Resolution #2005-25832 — Establishing a Capital Renewal and Replacement Fund (Amended)
7. Resolution #2006-26341 — Stabilization Funds, Fund Balance, Contingency Planning and Cash
Reserves, Use of Non -Recurring Revenues, and Capital Asset Acquisition, Maintenance, and
Replacement
8. Resolution #2014-28543— Establishing of a Reserve in the Resort Tax Fund
9. Resolution #2016-29500— Use of lump sum payments
10. Resolution #2018-30429 — Establishing a Capital Pay -As -You -Go (PAYGO) Fund
11. Resolution #2019-30664— Establishing of a Reserve in the Resort Tax Fund (Amended)
12. Resolution #2019-30954 — Updated General Fund Reserve Policy
13. Resolution #2023-32647 — Recommendation to Commission on Recurring Grants every 3 years
14. Resolution #2024-33340 — Updated General Fund Reserve Emergency Polity
160 of 1677
Fiscal Responsibility Measures
On March 19, 2025, the City Commission approved a resolution, agenda item C7 AH, which directs the
City Manager to work with the Chief Financial Officer to identify areas for possible implementation of
fiscal responsibility measures that would allow for a more sustainable financial expenditure trajectory for
the City without impacting the critical services provided to the community and to present at FERC as part
of the City of Miami Beach Comprehensive Financial Policies.
Regarding fiscal responsibility and strategic budgeting, a pragmatic approach could involve a combination
of strategic expenditure reductions, revenue optimizations, and cost -containment measures. Noting that
recurring items impact the FY 2026 budget and one-time items reduce how much the City can transfer to
support capital projects at year end. The BAC reviewed and discussed various measures related to fiscal
responsibility measures with several being recommended to the added to the Policies. All BAC
recommendations to the City of Miami Beach Comprehensive Financial Policies were presented and
discussed at FERC.
The attached City of Miami Beach Comprehensive Financial Policies incorporate all recommendations
from BAC and FERC.
FISCAL IMPACT STATEMENT
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: hftps:llwww.miamibeachf.aovlcity-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
CONCLUSION
The City Administration ("Administration") recommends that the Commission accepts the Finance and
Economic Resiliency Committee's ("FERC" or "Committee") recommendation to approve the City of Miami
Beach Comprehensive Financial Policies.
Applicable Area
Citywide
Is this a "Residents Riaht to Know" item. Is this item related to a G.O. Bond
Pursuant to City Code Section 2-17? Project?
No No
Was this Aaenda Item initially requested by a lobbyist which as defined in Code Sec 2-481
includes a Principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
161 of 1677
Department
Finance
Sponsor(s)
Co-sponsor(s)
Condensed Title
Accept Recommendation/Approve Miami Beach Comprehensive Financial Policies. FN
Previous Action (For City Clerk Use Only)
162 of 1677
EXHIBITA
CITY OF MIAMI BEACH COMPREHENSIVE FINANCIAL POLICIES
The City of Miami Beach acknowledges that a primary factor to the long-term sound financial
management of its finances is the adoption of formal financial policies that govern the financial
management and creditworthiness of the City. This view is supported by bond rating agencies,
residents, and the Government Finance Officers Association (GFOA). The following
Comprehensive Financial Policies are primarily intended to safeguard the financial resources of the
City.
General Fund Balance/Continaencv Planning
1. The City of Miami Beach shall maintain the General Fund Emergency Reserve at two
(2) months of total expenditures of the General Fund Operating Budget of the ensuing
fiscal year for use as defined below.
Prior to any expenditures from this reserve, the Mayor and City Commission
must declare an emergency affecting life, health, property, or public safety and
authorize said expenditures by a six -sevenths (6/7) vote. After any expenditure
from said reserve, all reimbursements from State and Federal Agencies for
emergency relief are to be redeposited into such reserve. Any amounts
disbursed which are not recovered from governmental agencies shall be
appropriated from Unassigned Fund Balances of the General Fund to restore
the Emergency Reserve to its then established level.
If there is an insufficient Unassigned Fund Balance to restore said reserve to its
then established level, the Administration is directed to restore the reserve to
its appropriate level by transferring available General Fund revenues in excess
of expenditures at fiscal year-end and/or with a partial replenishment to be
spread over no more than four (4) budget years.
2. The City of Miami Beach shall have a goal to also maintain a General Fund
Contingency Reserve equal to one (1) month of the General Fund Operating Budget
that, in combination with the Emergency Reserve, represents three (3) months or
twenty-five percent (25%) of the General Fund Operating Budget expenditures for the
ensuing fiscal year.
Said Contingency Reserve shall be increased or decreased annually, based on
the ensuing fiscal year's adopted budget. This does not preclude the
Commission from utilizing the Contingency Reserve during the fiscal year. In
the event that this reserve falls below the goal, the City shall restore the
Contingency Reserve through various methods including using fiscal year-end
General Fund surplus, a prior fiscal year surplus over the required goal
identified through annual external audit, or through the ensuing fiscal year's
surplus over the Current Service Level (CSL) budget.
• If there is an insufficient Unassigned Fund Balance to restore said reserve to its
then established level, the Administration is directed to restore the reserve to
its appropriate level by transferring available General Fund revenues in excess
163 of 1677
of expenditures at fiscal year-end and/or with a partial replenishment to be
spread over no more than four (4) budget years.
Resort Tax Fund Balance/Contingency Plannina
1. The City of Miami Beach shall maintain a minimum Resort Tax Emergency Reserve in
the 2% Resort Tax Fund of two (2) months of total expenditures of the ensuing fiscal
year for use as defined below.
Prior to any expenditures from this reserve, the Mayor and City Commission
must declare an emergency affecting life, health, property, public safety, or a
significant economic impact on resort tax collections, and authorize said
expenditures by a five -sevenths (5/7) vote. The Administration is directed to
restore the reserve to its appropriate level by transferring available 2% Resort
Tax revenues in excess of expenditures at fiscal year-end and/or with a partial
replenishment to be spread over no more than within four (4) budget years.
• Said Emergency Reserve shall be increased or decreased annually, based on the
ensuing fiscal year's adopted budget, but shall be maintained at a minimum
amount of two (2) months of total revenue of the 2% Resort Tax of the then
existing Resort Tax Fund Budget.
2. The City of Miami Beach shall have a goal to also maintain a Resort Tax Contingency
Reserve equal to four (4) months of the Resort Tax Operating Budget that, in combination
with the Resort Tax Emergency Reserve, represents six (6) months or fifty percent (50%)
of the 2% Resort Tax Operating Budget expenditures for the ensuing fiscal year.
Said Resort Tax Contingency Reserve shall be increased or decreased, based
on the ensuing fiscal year's adopted budget, annually.
Other Fund Balance/Continaencv Plannina
The City of Miami Beach shall have a goal to develop and maintain appropriate levels of
operating and capital reserves in the applicable Enterprise, Internal Services, and Special
Revenues Funds.
2. The City of Miami Beach shall have a goal of maintaining a reserve of one hundred percent
(100%) of pending claims in the Risk Management Fund and shall strive to fund two-thirds
(2/3) of the estimated value of insurance claims incurred but not reported.
Use of Non-Recurrina Revenues - (All Funds)
The City of Miami Beach will use one-time, non -recurring revenue for capital expenditures and/or
one-time expenditures and not subsidize recurring personnel, operations, and maintenance costs.
Use of Lump Sum Payments
The City of Miami Beach will allocate twenty percent (20%) of any one-time, unrestricted cash
payment of $500,000 or more received by the City —such as proceeds from lease renegotiations,
legal settlements, audit findings, or other lump sum payments. These funds will be deposited into a
designated trust fund to be used for capital expenses or other one-time costs related to
164 of 1677
transportation, excluding reasonable transaction -related expenses and any other outstanding
obligations directly associated with the original payment.
• r. r 1 1 . r
1. Capital Budget Policy - The City staff will prepare a five-year capital expenditure and
funding plan (the "Capital Improvement Plan") for all relevant funds each fiscal year.
The first year of the Capital Improvement Plan will constitute the budget for the respective
fiscal year. Annually and as part of the Capital Improvement Plan development process,
the City staff will prioritize the budget expenditures recognizing the following criteria in the
following order:
• Regulatory compliance
• Safety
• Criticality of asset renewal and replacement
• Efficiencies in joint project construction with other public agencies
• Availability of funding sources including grants, affordability, and other factors
prescribed from time to time
• Impact to the City's resiliency efforts
• Expansion/New Facilities
2. Capital Renewal and Replacement Fund - The City shall maintain a dedicated portion of
the operating millage for General Fund Capital Renewal and Replacement, which shall be
used for capital projects that extend the useful life of the City's General Fund capital assets
and shall be limited to projects defined as follows:
• Projects that extend the useful life of an asset by at least 5 years with a threshold
value of at least $25,000; for example the replacement of a major component of
the asset such as roofs, HVAC systems, electrical systems, fire alarm systems,
sprinkler systems that due to significant deterioration would constrain the
remaining useful life of the capital asset or projects that significantly reduce future
maintenance cost over the remaining life of the asset in an amount that is greater
than the renewal and replacement costs of the project.
• The Mayor and Commission may authorize additional uses of the funds for
unforeseen or unanticipated events affecting life, health, property, or public safety
subject to a five -sevenths (5/7) vote.
• Appropriation of project specific expenditures from the Capital Renewal and
Replacement Fund shall be included in the City Manager's annual budget based
on an annual recommendation of the City Manager or his/her designee regarding
range of asset life extended; identification of fully depreciated or deteriorated
components of City assets; inventory requirements for large capital components
of assets; or reduction in maintenance costs over the remaining life of the asset.
165 of 1677
• Appropriation of project specific expenditures shall be adopted by the Mayor and
City Commission.
• Interest earnings that accrue in the Capital Renewal and Replacement Fund shall
be included in the appropriation for the Fund in the following fiscal year.
• Changes among project specific appropriations may be authorized by the City
Manager to the extent that no new projects be added, and the total annual
allocation is not exceeded.
• During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Capital Renewal and Replacement Fund shall
require prior approval and authorization by a majority of the City Commission.
Excess project specific appropriations not required will be available for
re -appropriation the following year.
• Project specific appropriations that are not expended in a given fiscal year shall
remain in the Capital Renewal and Replacement Fund for the life of the project.
3. Pay -As -You -Go Capital Fund - The City shall maintain a dedicated portion of the
operating millage for Pay -As -You -Go Capital, which will provide dedicated funding for
General Fund capital projects and allow for growth over time with property values.
• Appropriation of project specific expenditures shall be adopted by the Mayor and
City Commission.
• Interest earnings that accrue in the Pay -As -You -Go Capital Fund shall be included
in the appropriation for the Fund in the following fiscal year.
• Changes among project specific appropriations may be authorized by the City
Manager to the extent that no new projects be added, and the total annual
allocation is not exceeded.
• During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Pay -As -You -Go Capital Fund shall require prior
approval and authorization by a majority of the City Commission. Excess project
specific appropriations not required will be available for re -appropriation the
following year.
• Project specific appropriations that are not expended in a given fiscal year shall
remain in the Pay -As -You -Go Capital Fund for the life of the project.
4. 5%Annual Funding for Capital Needs -The City shall have a goal to fund for the following
capital needs as a permanent part of the budget, in an amount not less than five percent
(5%) of the annual fiscal operating budget of the General Fund of the City:
• Capital Renewal and Replacement Fund - to ensure adequate funding for the
renewal and replacement of the City's General Fund facilities to extend the useful life
or replace equipment whose useful life has expired.
• Capital Reserve Fund - to help ensure adequate funding related to previously
166 of 1677
approved capital projects for expenditures due to bids that are over -budget, change
orders, or other unforeseen items for General Fund projects.
• Pay -As -You -Go Capital Fund - to ensure adequate on -going reinvestment in capital
plant and equipment and avoid deferring capital needs until there is a major bond issue.
• Streets & Sidewalks Renewal & Replacement Fund - to help ensure adequate
funding for the renewal and replacement of the City's streets and sidewalks.
• Information and Communications Technology Fund - to help ensure adequate
funding for the procurement of new or enhanced information and technology needs of
the City.
5. Allocation of General Fund Fiscal Year End Surplus at Fiscal Year-end — After fully
funding the General Fund reserve goals, the City shall transfer to the Capital Reserve Fund
50% of the annual General Fund revenues in excess of expenditures with the remaining
50% to be transferred to either the Capital Renewal and Replacement Fund, Streets &
Sidewalks Renewal and Replacement Fund, or Pay -As -You -Go Capital Fund.
6. Allocation of Preliminary General Fund Surplus during Budget Process- As part of
the annual budget development process, the preliminary budget presented by the City
Manager shall include a recommended allocation of projected General Fund surplus funds
according to the following priorities:
• Capital Investment Priority: Fifty percent (50%) of any projected surplus above the
Current Service Levef (CSL) budget shall be transferred to support capital projects,
until the City achieves its goal of dedicating at least 5% of the annual General Fund
budget to capital needs.
• Strengthening Reserves: Twenty-five percent (25%) of any projected surplus above
the CSL budget shall be allocated to augment the ensuing year's General Fund
reserves, until such time as the City establishes and meets an appropriate reserve
contribution benchmark aligned with the growth of the General Fund budget.
7. General Fund Interest Income for Capital Proiects — The City shall allocate twenty-five
percent (25%) of the total projected interest income in the General Fund, starting in FY
2025, for one-time capital expenditures. The City shall increase this percentage by five (5)
additional percent each subsequent fiscal year.
8. Review of Impact Fees — The City shall periodically review all impact fees to ensure that
the fees are equitable, reflect current economic conditions, and adequately fund the
necessary infrastructure improvements, as applicable. This review process will include an
analysis of the impact fees' effectiveness in achieving the City's goals, consideration of any
changes in development patterns, and adjustments based on inflation and other relevant
factors.
9. Waiver of Special Event Fees - The City shall have a policy that the waiver of special
event fees, including but not limited to special event application fees, permit fees, vehicle
beach access passes, square footage fees, and park user fees, as well as the subsidizing
of any City services fees, including but not limited to police, fire, and sanitation, shall be
limited to the first three years of an event (starting from June 25, 2025), with an exception
167 of 1677
for events held during the months of July, August, and September to the extent necessary
based on financial hardship; and further, direct the City Manager to establish a review
process for fee waiver applications to ensure compliance with this policy.
10. Decrease in GO Bond Millacie
• Any fiscal year in which the GO Bond Debt Service Millage will decrease, the budget
will reflect a transfer of the millage decrease to the Capital Renewal and
Replacement Fund (CRR) until such time as there is sufficient funding for all
programmed CRR projects in that fiscal year.
11. City Center RDA Closure - Use of Surplus for Capital Funding
• Upon closure of the City Center RDA, the resulting surplus will be set aside on a
recurring basis in the General Fund at the level of the year of City Center RDA
closure in the following order of precedence:
1. Fully fund the annual requirements of the Streets & Sidewalk Renewal &
Replacement Fund
• This policy will permit the City to fully fund the resurfacing of all City
streets and the replacement of all City sidewalks when scheduled.
2. The balance of the allocation is to be transferred to the Capital Renewal &
Replacement Fund
Enterprise Fund Policies
The primary objectives of these following Enterprise Fund financial policies are:
• To maintain strong operations and maintenance programs and provide the
necessary funds to finance priority and ongoing capital projects in order to deliver
high -quality utility services.
• To have available funds and access to financial resources to be able to quickly
respond to unplanned Capital Improvement Plan projects, emergencies,
catastrophic, and Force Majeure Incidents and to allow for the continued ability to
provide utility services.
• To maintain strong financial conditions aimed at preserving and enhancing the
Enterprise Fund's credit ratings to minimize capital project financing costs and to
promote long-term system sustainability.
• To maintain reasonable and justified levels of rates and fees over the long run in
accordance with good business practices.
1. Credit Rating Policy (Water. Sewer, and Stormwater Funds) - The City shall strive to
maintain financial performance for the Water, Sewer, and Stormwater Funds consistent
with that of utilities with an uninsured bond rating of "AA" or better. A higher credit rating
can result in lower borrowing costs and lower rates over the long term for the benefit of the
168 of 1677
customers of the systems.
2. Ooeratina Reserve Policy - The City will establish and maintain cash -funded Operating
Reserves for the Enterprise Funds to provide adequate levels of working capital to i)
mitigate current and future risks regarding revenue shortfalls and unanticipated expenses;
and ii) ensure stable services and rates.
• The City will maintain a minimum unencumbered and unrestricted Operating
Reserve balance equal to three (3) months, or twenty-five percent (25%) of the
current fiscal year budgeted operating expenses (the Operating Reserve Target).
• If the Operating Reserve unrestricted balance at the end of the preceding fiscal
year is less than the Operating Reserve Target, the City will develop a plan to re-
establish the operating reserves over a period not to exceed three (3) fiscal years.
3. Renewal & Replacement Reserve Policy - The City will establish and maintain for the
Enterprise Funds an ongoing cash -funded Renewal & Replacement fund for renewals,
replacements, and Capital Improvements.
• The City will maintain for the funds a minimum unappropriated and unencumbered
Renewal & Replacement Reserve equal to the prior year's annual depreciation
expense plus ten percent (10%) (the Renewal & Replacement Reserve Target).
• The Renewal & Replacement Reserve will be in addition to the funds held on
deposit for purposes of maintaining a minimum Operating Reserve. It is
contemplated that the monies on deposit that are included as a component of the
Renewal & Replacement Reserve may be expended on renewals, replacements,
and Capital Improvements to meet the overall financial objectives and funding
needs of the Enterprise Fund.
The balances established in this reserve are to:
Mitigate risks regarding planned and unanticipated renewals, replacements,
and capital expenditures, or increases in materials, labor, or other costs from
ongoing or planned projects.
Provide for changes in expenditure priorities resulting in the advancement or
addition of certain projects.
Promote the availability of funds for renewals, replacements, and capital
reinvestment for the existing infrastructure, with the intent to limit outages and
inability to provide service from equipment or infrastructure failures or
because of Force Majeure incidents due to weather events and other
occurrences.
Ensure reliable service and ameliorate the effects to monthly service rates
from unanticipated costs.
• If the Renewal & Replacement Reserve balance at the end of the preceding fiscal
year is less than the Renewal & Replacement Reserve Target, the City will
develop a plan to re-establish the Renewal & Replacement Reserve in an amount
equal to the Renewal & Replacement Reserve Target over a period not to exceed
169 of 1677
three (3) fiscal years. Compliance with the re-establishment of the Renewal &
Replacement Reserve Target may not be achieved through the deferral of
maintenance and/or identified capital reinvestment.
4. Ooeratina Budget Policy_- The annual operating budget for each Enterprise Fund will:
• Be structurally balanced, with revenues sufficient to meet expenses (those that
are ongoing in nature).
• Reflect rates set at levels intended to support the direct and indirect costs of the
systems, with the intent to provide the lowest reasonable rates over time, not
necessarily the lowest fees and user charges during the current or budget fiscal
year, and at a level necessary to ensure the adequate maintenance and
operations of the systems.
• Reflect these financial policies and include amounts necessary to maintain the
required operating and capital reserves.
5. Rate and Financial Plan Review Policy (Water. Sewer. and Stormwater Funds) - The
City staff will use a formal forecasting and expenditure monitoring process in the evaluation
of the financial positions of the Water, Sewer, and Stormwater Funds.
These processes are intended to: i) minimize financing costs through proper
planning for Renewal & Replacement and Capital Improvement spending and
financing needs; ii) obtain formal endorsement by the City Commission for long-
term financial needs and sources of financing; and iii) maintain or strengthen the
credit ratings of the Water, Sewer, and Stormwater Funds.
• The City shall perform a formal rate study at least once every five years, and the
City shall adopt a five-year schedule of rates, fees, and charges based on the
results of the rate study.
As part of the annual financial planning process, the City staff will prepare multi-
year operating and capital budgets to ensure rates are sufficient to meet the needs
of the utilities.
The Water, Sewer, and Stormwater Funds will be run in a business -like manner.
Rates and fees will be set to ensure the full recovery of the Water, Sewer, and
Stormwater Funds operating and capital expenditures. This practice will ensure
that the Water, Sewer, and Stormwater Funds has reduced financial risk and will
meet Federal, State, and local regulations as well as service area demands.
1. Budgeting - Grants
• The Administration shall identify all City Commission sponsored grants which
contemplate recurring funding to the grantees as a separate line item in the
proposed Operating Budget and/or budget presentations made to the City
Commission as part of the annual budget process.
• The Administration shall review and make recommendations to the City
170 of 1677
Commission on recurring grants every three (3) years, to allow for periodic review
and approval of all Commission -sponsored initiatives or grant programs which
involve recurring funding and thereby ensure that recurring grants align with the
City Commission's evolving budget priorities.
2. Budgeting — Quarterly review
• The Administration shall review and report to the City Commission of adjustments
and amendments to the City of Miami Beach Annual Operating Budget for
purposes of conforming actual budget expenditures to the adopted budget and
shall occur at least once every fiscal quarter.
3. The City of Miami Beach shall create a strategic plan that identifies multi -year strategic
priorities with corresponding result measures for each priority.
4. Annually, or as needed, the City of Miami Beach shall use a strategic planning process to
develop initiatives that support the strategic plan priorities.
5. The budget process and format should be performance -based and focused on Key Intended
Outcomes and performance measures.
6. Any new initiatives that are not identified in the strategic plan that are greater than 0.5% of
budget for the fund impacted per year, or cumulatively, must be first considered as part of
the City's annual strategic planning or budget process to develop initiatives.
Debt Management Policy
1. Ethics Requirements — City staff, the City Commission, consultants, and underwriters
shall be familiar with and adhere to the laws of the State of Florida, and the
requirements of Municipal Securities Rulemaking Board (MSRB), as applicable. All
debt financing participants shall always maintain the highest standards of professional
conduct. There shall be no conflict of interest between the City and any debt -financing
participant.
2. Debt Issuance
The City will utilize its various consultants to determine the amount, timing, and
structure of a debt issuance. These professional consultants may include but not
be limited to registered financial advisors, bond and disclosure counsel, rate
consultants, and general engineering consultants. All such consultants shall
provide the City with their relevant written professional opinions as to the projected
cost of proposed capital projects and maintenance, the expected revenue to be
generated by such projects, and the expected cost of financing such projects
along with legal opinions as to the disclosure, authorization, and tax exemption of
all such debt issuance.
• Debt repayments should not extend beyond the useful life of the asset financed
or 30 years, whichever is less.
• Short -Term Financing - The City may elect to issue short-term financing vehicles
such as a line of credit or commercial paper as a bridge for an anticipated funding
171 of 1677
gap. However, the City will not use short-term borrowing to finance operating
needs.
3. Refundings and Defeasance
• Bond refunding of outstanding debt may be pursued when a threshold of Net
Present Value (NPV) savings is greater than or equal to five percent (5%). NPV
savings shall be calculated using the aggregate amount of savings on a refunding
transaction taking into consideration the time value of money and net of all costs
of issuance. The City's financial advisor must confirm the calculation that the NPV
savings meets the threshold requirement as defined in this paragraph.
• However, a determination that a bond refunding meets the minimum NPV savings
threshold will not necessarily result in the City refunding any bond series.
4. Disclosures
The CFO will coordinate for the City, through a third -party service, annual
disclosure filings, as well as other disclosures.
The City will not disseminate any financial information to any investor or investors
where such information is not readily available to all investors. However, general
financial information disseminated by the City via means such as the City's web
site is for general informational purposes only and is not intended by the City to
be relied upon by others for investment purposes.
Review
This policy is to be reviewed at least every five (5) year period starting from initial policy approval
date.
172 of 1677
Exhibit B
RESOLUTION NO. 94-21218
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, REQUIRING
REVIEW AND REPORT TO THE MIAMI BEACH CITY
COMMISSION OF ADJUSTMENTS AND AMENDMENTS TO
THE CITY OF MIAMI BEACH ANNUAL BUDGET FOR
PURPOBES OF CONFORMING ACTUAL BUDGET
EXPENDITURES TO THE ADOPTED BUDGET FOR THE
CITY, SAID REPORTS TO BE MADE ON AT LEAST A
QUARTERLY BASIS FOR THE PRECEDING QUARTER'S
ACTIVITIES.
WHEREAS, as the governing body for the City of Miami Beach,
the Miami Beach City Commission should be made aware of the fiscal
state of the City of Miami Beach; and
WHERERB, the City Commission should review and approve, if
appropriate, on a regular basis any expenditures at variance with
the adopted budget; and
WHEREAS, past budget activities involving adjustments in the
City'& budget have occurred without the knowledge of the City
Commission; and
WREREAB, in order that the City Commission may hereafter be
made aware of and approve, if appropriate, previously unapproved
expenditures, a review and report to the City Commission of
adjustments and amendments to the budget for purposes of conforming
actual budget expenditures to the adopted budget is needed, said
review to occur on at least a quarterly basis Covering the
preceding fiscal quarter.
MOW, THEREPORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMIBBIOH OP THE CITY OF MIAMI BEACH, FLORIDA, that review and
report to the Miami Beach City Commission of adjustments and
amendments to the City of Miami Beach Annual Budget for purposes of
conforming actual budget expenditures to "a adopted budget &hall
occur at least once every fiscal quarter, said review concerning
the preceding quarter's activities.
DABBED End ADOPTED this 2lth da Of lY 1994.
VZCE YOA
ATTEST: CORM APPRO�'.!
CITY CI.HRR
LF:JO/ka
(Requested by Commissioner Nelsen Rasdin) 1S S
�.,.w:,�e...�.�..�..N.,m..... Doh
173 of 1677
RESOLUTION NO. 96-22014
A RESOLUTION OF THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, ESTABLISHING AND APPROPRIATING
ELEVEN PERCENT (TEN MILLION DOLLARS) OF
THE 1995/96 FISCAL YEAR BUDGET FOR THE
ESTABLISHMENT OF A PERMANENT RESERVE
FOR CONTINGENCIES, ESTABLISHING A
PROCEDURE FOR ITS USE, AND ESTABLISHING
A PROCEDURE FOR ITS REPLACEMENT AFTER
USE.
WHEREAS, the Mayor and City Commission recognize the necessity to adequately provide
the resources to operate the City in the event of a catastrophe; and
WHEREAS, such resources can be provided by the establishment of a permanent reserve
for such contingencies; and
WHEREAS, such reserve shall be maintained until the Mayor and City Commission declare
an emergency and authorize its expenditure; and
WHEREAS, any amounts expended from such reserve shall be replenished until such
reserve shall again be fully funded.
NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH as follows:
I . A permanent contingency reserve of $10,000,000 is hereby established in the General Fund
of the City to be held for use in an emergency if and when an emergency is declared and the
expenditure of such funds we authorized by a majority of the City Commission.
2. Said reserve shall be increased or decreased annually but shall be maintained at a minimum
amount of eleven percent (1 I %) of the then existing General Fund Budget.
174 of 1677
3. Prior to any expenditures from this reserve, the Mayor and City Commission most declare
an emergency and authorize said expenditures. After any expenditure from said reserve, all
reimbursements from State and Federal Agmcies for emergency relief are to be redeposited into
such reserve. Any amounts disbursed which ise not recovered from governmental agencies shall he
appropriated from Undesignated Fund Balances of the General Fund to restore the reserve to its then
established level. If there is an insufficient Undesignated Fund Balance to restore said reserve to its
then established level, the Administration is directed to restore the reserve to its aforementioned level
in an amount of not less than S 1,000,000 annually, by an amendment to the Adopted General Fund
Budget.
Passed and Adopted this 5th day of .tune , V
%tte t
City Clerk
FORM APPROVED
LEGAL DEPT.
By
Date S 7M
175 of 1677
RESOLUTION NO. 98-22661
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING
RESOLUTION NO. 96-22014 WHICH ESTABLISHED A
CONTINGENCY RESERVE FUND WHICH SHALL BE
MAINTAINED AT A MINIMUM OF ELEVEN PERCENT (11%)
OF THE ANNUAL GENERAL FUND BUDGET BY
AMENDING THE PROCEDURES FOR ITS USE.
WHEREAS, the Mayor and City Commission recognize the necessity to adequately
provide the resources to operate the City in the event of a catastrophe; and
WHEREAS, such resources can be provided by the establishment of a permanent
reserve for such contingencies; and
WHEREAS, such reserve shall be maintained until the Mayor and City Commission
declare an emergency and authorize its expenditure; and
WHEREAS, any amounts expended from such reserve shall be replenished until
such reserve shall again be fully funded; and
WHEREAS, the Mayor and City Commission passed Resolution No. 96-22014 on
June 5, 1996 which established a contingency reserve fund which shall be maintained at
a minimum of eleven percent (11%) of the annual General Fund Budget and which
established the procedures for its use and replacement; and
WHEREAS, it has now become necessary to amend Resolution No. 96-22014 to
further safeguard and clarify the use of the contingency reserve funds.
NOW, THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH that Resolution No. 96-22014 is hereby amended as
follows:
1. A permanent contingency reserve of $46;989668 is hereby established in an
amount not less than eleven percent (11%) of the annual fiscal budget of4r0he
General Fund of the City to be held for use in en a public emergency if and when
an emergency is declared affecting life health property or public safety, and the
expenditure of such funds is authorized by a five -sevenths (,5n) vote of majority of
the City Commission.
2. Said reserve shall be increased or decreased annually but shall be maintained at
a minimum amount of eleven percent (11%) of the then existing General Fund
Budget.
176 of 1677
3. Prior to any expenditures from this reserve, the Mayor and City Commission must
declare an emergency affecting life health pmpady or public safety and authorize
said expenditures by a five -sevenths (5/7) vote, After any expenditure from said
reserve, all reimbursements from State and Federal Agencies for emergency relief
are to be redeposited into such reserve. Any amounts disbursed which are not
recovered from governmental agencies shall be appropriated from Undesignated
Fund Balances of the General Fund to restore the reserve to its then established
level. If there is an insufficient Undesignated Fund Balance to restore said reserve
to its then established level, the Administration is directed to restore the reserve to
its aforementioned level in an amount of not less than one million dollars
($1,000,000) annually, by an amendment to the Adopted General Fund Budget.
Passed and Adopted this tstn day of February, 1998.
Attest:
City Clerk
At -
Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
tY A� Ua�
177 of 1677
RESOLUTION NO. 2002-24764
A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, ESTABLISHING
A CAPITAL PROJECTS RESERVE IN THE GENERAL FUND
AND APPROPRIATING $1,500,000 OF FISCALYEAR 2000-
2001 GENERAL FUND EARNINGS FROM THE GENERAL
FUND UNDESIGNATED FUND BALANCE; AND THAT IN
SUBSEQUENT YEARS, ON SEPTEMBER 30TH, WHEN
THERE EXISTS AN EXCESS OF GENERAL FUND
REVENUES OVER EXPENDITURES ("EARNINGS"), AFTER
FUNDING THE INCREASE IN THE CONTINGENCY
RESERVE (11% EMERGENCY RESERVE), THE
ADMINISTRATION WILL RECOMMEND THE AMOUNT TO
BE DEPOSITED INTO THE CAPITAL RESERVE FUND
WHEREAS, the City has embarked on a significant Capital Improvement
Program in accordance with the Capital Projects Plan adopted by the Mayor and
Commission on July 21,1999; and
WHEREAS, the projects contained within the Plan have been funded through
the issuance of General Obligation Bonds, Water and Sewer Revenue Bonds,
Stormwater Revenue Bonds, and from a variety of other sources, including among the
sources, grants, tax increment funds, loans, and gas tax; and
WHEREAS, the purpose of establishing this reserve would be to establish
"savings account" for projects not funded from bonds, grants, or loans so that funding
would be provided on a "pay-as-you-go" basis; and
WHEREAS, it will also be used during the implementation of the adopted Capital
Improvement Program to provide a source for funding unforeseen capital needs, or for
unanticipated project shortfalls when reduction of project scope and/or value
engineering efforts are not successful in bringing a project within; and
WHEREAS, it will be used to provide an interim source for funding
comprehensive maintenance programs for infrastructure within the community until the
annual funding for these programs in the Capital Budget grows to a sufficient level to
provide the annual maintenance required.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that a Capital Projects
Reserve Fund be established as part of the General Fund; that $1,500,000 be
appropriated from the General Fund Undesignated Fund Balance; and that in
subsequent years, on September 30th, when there exists an excess of General
178 of 1677
Fund revenues over expenditures ("earnings"), after funding the increase in the
Contingency Reserve (11 %, Emergency Reserve), the Administration will recommend
the amount to be deposited into the Capital Reserve fund .
PASSED AND ADOPTED THIS 20th DAY OF FebruaWl A 2002.
ayor
Attest L " n�
0 a'-
City Clerk
APPROVED AS TO
FORM & LANGUAGE
179 of 1677
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Tlde:
A RESOLUTION, ESTABLISHING A CAPITAL PROJECTS RESERVE IN THE GENERAL FUND AND
APPROPRIATING $1,500,000 OF FISCALYEAR 20DO.2001 GENERAL FUND EARNINGS FROM THE
GENERAL FUND UNDESIGNATED FUND BALANCE
The purpose of establishing this reserve would be 1) to establish a "savings account" for
projects not funded from bonds, grants or loans, so that funding would be provided on a
"pay-as-you-go" basis; 2) to be used during the implementation of the adopted Capital
Improvement Program to provide a source for funding unforeseen capital needs, or for
unanticipated project shortfalls when reduction of project scope and/or value engineering
efforts are not successful in bringing a project within budget.; and 3) to be used to
provide an interim source for funding comprehensive maintenance programs for
infrastructure within the community until the annual funding for these programs in the
Capital Budget grows to a sufficient level to provide the annual maintenance required.
Source of
Funds:
Dept.
from the
Agenda Item kZD
Date ,2—,20-c?_
180 of 1677
CITY OF MIAMI BEACH
CITY HALL 17W CONVENTION CENTER DRIVE MAMI BEACH, FLORIDA 33139
COMMISSION MEMORANDUM
TO: Mayor David Denver and DATE: February20, 2002
Members of the City Commission
FROM: JorgeM. Gonzalez III
City Manager Ujf
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ESTABLISHING A CAPITAL PROJECTS
RESERVE IN THE GENERAL FUND AND APPROPRIATING $1,500,000
OF FISCAL YEAR 2000-2001 GENERAL FUND EARNINGS FROM THE
GENERAL FUND UNDESIGNATED FUND BALANCE
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The City has embarked on a significant Capital Improvement Program in accordance with
the Capital Plan adopted by the Mayor and Commission on July 21,1999. The projects
contained within the plan have been funded through the issuance of General Obligation
Bonds, Water and Sewer Revenue Bonds, Stormwater Revenue Bonds and from a variety
of other sources including among the sources grants, tax increment funds, loans, and gas
tax .
Purpose
The purpose of establishing this reserve would be threefold. First, it will be used to
establish a "Savings account" for projects not funded from bonds, grants or loans, so that
funding would be provided on a "pay-as-you-go" basis. Establishing a fund for this
purpose is a common practice among municipalities who cannot issue bonds or do not
want to implement or increase long-term debt obligations programs. Next, it will be used
during the implementation of the adopted Capital Improvement Program to provide a
source for funding unforeseen capital needs, or for unanticipated project shortfalls when
reduction of project scope and/or value engineering efforts are not successful in bringing a
project within budget. Finally, it will be used to provide an interim source for funding
181 of 1677
comprehensive maintenance programs for infrastructure within the community until the
annual funding for these programs in the Capital Budget grows to a sufficient level to
provide the annual maintenance required.
This will include maintenance of roads, curb/gutter, sidewalk and streetlights and other
infrastructure. It is intended that a program will be established during the upcoming Capital
Budget process, which would begin to set aside monies for more significant annual
expenditures for these items. These funds would be used to pay annual costs for
maintenance programs such as a pavement management program. The fund will allow the
maintenance programs to be financed without the need for sporadic large appropriations
annualizing spending to allow a level rate over time.
Annual Fundina
It is recommended that the initial deposit to this fund be in the amount of $1,500,000. In
subsequent years, when there exists an excess of General Fund revenues over
expenditures ("Earnings"), at September 30, it is recommended that the funds first be used
to provide for the increase in funding the Contingency Reserve (11 % Emergency Reserve)
for the ensuing fiscal year, and that the balance of such Earnings be split with 50%going to
the Capital Reserve fund and 50% to the General Fund balance.
JMG/PDW
182 of 1677
Afteraction February 20 2002 City of Miami Beach
2:54:31 p.m.
R7C A Resolution Appropriating An Additional $1,473,800 To The Reserve For Contingencies In The
General Fund (11 % Emergency Reserve) From The Undesignated Fund Balance Of The General
Fund.
(Finance Department)
ACTION: Resolution No. 2002.24763 adopted. Motion made by Commissioner Bower; seconded
by Commissioner Steinberg; Voice vote: 4-0; Absent: Vice -Mayor Smith and Commissioners Cruz
and Garcia. Patricia Walker to appropriate the funds.
2:58:36 p.m.
R7D A Resolution Establishing A Capital Projects Reserve In The General Fund And Appropriating
$1,500,0000f Fiscal Year2000-2001 General Fund Earnings From The General Fund Undesignated
Fund Balance.
(Finance Department)
ACTION: Resolution No. 2002.24764 adopted as amended. Motion made by Commissioner
Bower with Vice -Mayor Smith's amendment; seconded by Commissioner Gross; Voice vote: 6-0;
Absent: Vice -Mayor Smith. Patricia Walker to appropriate the funds.
AMENDMENT:
Amendment made by Vice -Mayor Smith indicating that any excess of General Fund revenues over
expenditures, by September 30, be used to increase the Contingency Reserve, and that rather than
50% going to the Capital Reserve Fund and 50% to the General Fund, that any balance of such
earnings be placed into the Capital Reserve Fund with the amount to be determined and
recommended by the Administration on an annual basis.
Jorge Gonzalez, City Manager, explained that to draw on this fund, the Administration would request
an appropriation from the Commission. The Administration will try to develop criteria which will
govern how these monies are used. This is a pot of last resort money. Every other funding method
will be explored before using this money for capital projects. Patricia Walker to handle.
Prepared by the City Clerk's Office Page 22
F1013Ph$eUnW8RARMrd1nanees & Rewl.bonMAftr Acton Feb 20. 2002 City Commission Meeting.dm
183 of 1677
RESOLUTION NO. 2004-25697
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ESTABLISHING A
CAPITAL RENEWAL AND REPLACEMENT FUND TO PROVIDE A
DEDICATED SOURCE OF FUNDING FOR CITY CAPITAL
RENEWAL AND REPLACEMENT PROJECTS THAT EXTEND THE
USEFUL LIFE OF GENERAL FUND ASSETS; ESTABLISHING A
PROCEDURE FOR ANNUAL APPROPRIATION OF FUNDS;
ESTABLISHING A PROCEDURE FOR THEIR USE; AND
ADOPTING THE FISCAL YEAR (FY) 2004/05 BUDGET FOR THE
FUND, IN THE AMOUNT OF $1,347,070.
WHEREAS, the City has a significant infrastructure investment that includes 322
buildings, structures and facilities; 472 acres of recreational open space; over 25 miles of
inland canals, oceanfront beaches, City -owned seawalls; and 140 miles of paved streets;
with associated swales landscaped medians, street and landscape lights, and curbs and
gutters; and
WHEREAS, despite $27.4 million budgeted in the Fiscal Year (FY) 2004/05 General
Fund Operating Budget for general ongoing maintenance, as well as $4.25 million in
potential funding from the proposed Miami -Dade County General Obligation Bond issuefor
Old City Hall; the Sixth Street Community Center; Flagler Monument; and Scott Rakow
Youth Center improvements (carpets, ADA, pressure cleaning, ceiling tile, electrical, A/C),
there remains $1,816,000 in immediate renewal and replacement needs without funding;
and
WHEREAS, the City is procuring a consultant to develop a proactive schedule of
renewal and replacement needs for the City's existing infrastructure that will require
additional funding in future years; and
WHEREAS, as a result of the City's ongoing $400 million Capital Improvement
Program, there wilt be a significant additional increase in renewal and replacement needs;
and
WHEREAS, annual capital renewal and replacement needs compete for General
Fund resources with other needs, such as public safety, with the result that capital renewal
and replacement needs may be deferred; and
WHEREAS, bond rating agencies, (Fitch, Moody's, and Standard & Poor's) view
renewal and replacement policies as a significant criteria in assessing a government's
credit worthiness; and
184 of 1677
WHEREAS, the Mayor and City Commission recognize the need to establish a
dedicated source of funding to ensure annual renewal and replacement of the City's
General Fund capital assets on an ongoing basis; and
WHEREAS, on September 9 2004, the Mayor and City Commission tentatively
adopted the proposed millage rate of 7.425 mills, which included 0.126 mills dedicated for
capital renewal and replacement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
1. A permanent Capital Renewal and Replacement Fund is hereby established to be
used for capital projects that extend the useful Irfe of the City's General Fund
assets.
2. The Capital Renewal and Replacement Fund shall be funded annually,
commencing in Fiscal Year 2004/05, through a transfer from the General Fund.
3. The initial annual transfer from the General Fund to the Capital Renewal and
Replacement Fund, for Fiscal Year 2004/05, shall be the amount of $1,347,070.
4. In subsequent fiscal years, the Fund will be increased by, at a minimum, the amount
which would represent the value of the debt service millage reduction resulting from
growth in the assessment value of the tax base. It is expected that this increase
should not result in a total combined millage rate greaterthan in the preceding fiscal
year.
5. Appropriation of project specific expenditures from the Capital Renewal and
Replacement Fund shall be included in the City Managers annual proposed budget,
and shall be adopted by the Mayor and City Commission annually during the City's
second public hearing on the budget.
6. Interest earnings that accrue in the Capital Renewal and Replacement Fund shall
be included in the appropriation for the Fund in the following fiscal year.
7. Changes among project specific appropriations may be authorized by the City
Manager to the extent that no new projects be added and the total annual allocation
is not exceeded.
8. Changes to project specific appropriations may be authorized by the City Manager
to the extent needed to replace $4.25 million in potential funding from the proposed
Miami -Dade County General Obligation Bond issue for Old City Hall; Sixth Street
Community Center; Flagler Monument; and Scott Rakow Youth Center
improvements.
9. During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Capital Renewal and Replacement Fund shall
require prior approval and authorization by a majority of the City Commission.
Excess project specific appropriations not required will be available for re -
appropriation the following year.
185 of 1677
10. Project specific appropriations that are not expended in a given fiscal year shall
remain in the Capital Renewal and Replacement Fund for the life of the project.
11. The City of Miami Beach hereby adopts the FY 2004/05 Capital Renewal and
Replacement Fund Budget, in the amount of $1,347,070, as provided in
Attachment A.
PASSED AND ADOPTED THIS 28th DAY OF
Atte k v MAYOR
CITY CLERK
•• WE a
io�;iM4=M I WeV
unGr!-= 22-4�
Ga y� - Dah
186 of 1677
RESOLUTION NO. 2005-25832
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION
2004-25697 WHICH ESTABLISHED A CAPITAL RENEWAL AND
REPLACEMENT FUND TO PROVIDE A DEDICATED SOURCE OF
FUNDING FOR CITY CAPITAL RENEWAL AND REPLACEMENT
PROJECTS THAT EXTEND THE USEFUL LIFE OF GENERAL
FUND ASSETS; ESTABLISHED A PROCEDURE FOR ANNUAL
APPROPRIATION OF FUNDS; ESTABLISHED A PROCEDURE
FOR THEIR USE; AND ADOPTED THE FISCAL YEAR (FY) 2004/05
BUDGET FOR THE FUND, IN THE AMOUNT OF $1,347,070.
WHEREAS, the Mayor and Commission adopted Resolution 2004-24697 on
September 28, 2004 establishing a capital renewal and replacement reserve to provide a
dedicated source of funding for capital renewal and replacement projects that extend the
useful life of general fund assets including the initial annual transfer from the General Fund
to the Capital Renewal and Replacement Fund, for Fiscal Year 2004/05, in the amount of
$1,347,070; and
WHEREAS, on September 28" 2004, the Mayor and Commission further directed
that more stringent criteria be established regarding the use of these funds; and
WHEREAS, the City has a significant infrastructure investment that includes 322
buildings, structures and facilities; 472 acres of recreational open space; over 25 miles of
inland canals, oceanfront beaches, City -owned seawalls; and 140 miles of paved streets;
with associated swales landscaped medians, street and landscape lights, and curbs and
gutters; and
WHEREAS, despite $27.4 million budgeted in the Fiscal Year (FY) 2004/05 General
Fund Operating Budget for general ongoing maintenance, as well as $4.25 million funding
from the proposed Miami -Dade CountyGeneral Obligation Bond issue for Old CityHall; the
Sixth Street Community Center; Flagler Monument; and Scoff Rakow Youth Center
improvements, there remains $1,816,000 in immediate renewal and replacement needs
without funding; and
WHEREAS, the City in process of developing a proactive schedule of renewal and
replacement needs for the City's existing infrastructure that will require additional funding in
future years; and
WHEREAS, as a result of the City's ongoing S400 million Capital Improvement
Program, there will be a significant additional increase in renewal and replacement needs;
and
WHEREAS, annual capital renewal and replacement needs compete for General
Fund resources with other needs, such as public safety, with the result that capital renewal
and replacement needs may be deferred; and
187 of 1677
WHEREAS, bond rating agencies, (Moody's, and Standard & Poor's) view renewal
and replacement policies as a significant criteria in assessing a government's credit
worthiness; and
WHEREAS, the Mayor and City Commission recognize the need to maintain a
dedicated source of funding to ensure annual renewal and replacement of the City's
General Fund capital assets on an ongoing basis; and
WHEREAS, there is a need to maintain flexibility in the use of the funds in the event
that the City Commission is faced with an emergency project or event.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that Resolution 2004-24697
is hereby amended as follows:
1. A permanent Capital Renewal and Replacement Fund is hereby established to be
used for capital projects that extend the useful life of the City's General Fund assets
shall be limited to projects defined as follows:
A. Projects that extend the useful life of a asset by at least 5 years
with a threshold value of at least $25,000; for example the
replacement of a major component of the asset such as roofs,
HVAC systems, electrical systems, fire alarm systems, sprinkler
systems that due to significant deterioration would constrain the
remaining useful fife of the asset,
OR
B. Projects that significantly reduce future maintenance cost over the
remaining life of the asset in an amount that is greater than the
renewal and replacement costs of the project.
2. The Mayor and Commission may authorize additional uses of the funds for
unforeseen or unanticipated events affecting life, health, property or public safety
subject to a five -sevenths (5/7) vote.
3. The Capital Renewal and Replacement Fund shall be funded annually,
commencing in Fiscal Year 2004/05, through a transfer from the General Fund.
4. The initial annual transfer from the General Fund to the Capital Renewal and
Replacement Fund, for Fiscal Year 2004/05, shall be the amount of $1,347,070.
5. In subsequent fiscal years, the Fund will be increased by, at a minimum, the amount
which would represent the value of the debt service millage reduction resulting from
growth in the assessment value of the tax base. It is expected that this increase
should not result in a total combined millage rate greater than in the preceding fiscal
year.
188 of 1677
6. Appropriation of project specific expenditures from the Capital Renewal and
Replacement Fund shall be included in the City Managers annual proposed budget
based on an annual recommendation of the City Manager or his designee regarding
range of asset life extended; identification of fully depreciated or deteriorated
components of City assets; inventory requirements for large capital components of
assets; or reduction in maintenance costs over the remaining life of the asset.
7. Appropriation of project specific expenditures shall be adopted by the Mayor and
City Commission.
8. Interest earnings that accrue in the Capital Renewal and Replacement Fund shall
be included in the appropriation for the Fund in the following fiscal year.
9. Changes among project specific appropriations may be authorized by the City
Managerto the extent that no new projects be added and the total annual allocation
is not exceeded.
10. During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Capital Renewal and Replacement Fund shall
require prior approval and authorization by a majority of the City Commission.
Excess project specific appropriations not required will be available for re -
appropriation the following year.
11. Project specific appropriations that are not expended in a given fiscal year shall
remain in the Capital Renewal and Replacement Fund for the life of the project.
12.
The City of Miami Beach hereby amends the FY 2004/05 Capital Renewal and
Replacement Fund Budget, in the amountof $1,347,070, as provided in Attachment
A. A
PASSED AND ADOPTED THIS 23rd DA
A st: '...
(vim\
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
&.,F.O,R EXECUTION
__II��T4"Ch z/i loS
189 of 1677
ATTACHMENT A
Old City Hall
$500 000
Criteria 1.A
Replace Floors at Fire Station 1 and 3
120,000
Criteria 1.A
Police Station Emergency Chiller Replacement
120 000
Criteria 1.A
Police Gun Range Air Handling Unit
30 000
Criteria 1.A
Replacing two A/C units at Fire Station 1
40,000
Criteria 1.A
Public Works Operations Yard A/C Replacement
80,000
1 Criteria 1.A
Police Station Water Sealing
63,000
1 Criteria 1.A
City Hall Water Sealing
63,000
Criteria 1.A
Fire Station 1 Domestic Water Line Replacement
45,000
Criteria 1.A
Replace Three Air Handlers at the Police Station
99,000
Criteria 1.A
Public Works Fire Alarm System Replacement
10,500
Criteria 2
Contingency for Unforseen Needs 1
176,570
TOTAL
$1,347,070
190 of 1677
CITY OF MIAMI BEACH
COMMISSION ITEM SUMMARY
Condensed Tftle:
Amend Resolution 2004-25697 which established a Capital Renewal and Replacement Fund to provide a
dedicated source of funding for city capital renewal and replacement projects that extend the useful life of
General Fund assets.
Issue:
Whether to amend Resolution 2004-25697 to establish more stringent criteria for the use of these funds as
directed by the Mayor and Commission?
Item summa fRecommendation:
Amend Resolution 2004-25697 to establish more stringent criteria for the use of these funds by
summarizing the criteria into three critical areas; include a preambletwhereas clause pertaining to
emergency use of funds; and provide a provision for emergency use of the funds.
Advisory Board Recommendation:
Approved by the Finance and Citywide Projects Committee on February 17, 2005.
Financial Information:
expended:
Sour" of
Funds:
F1
Finance Dept.
AGENDA ITEM 7IC
191 of 1677 DATE o2 T%J
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI REACH, FLORIDA 33139
COMMISSION MEMORANDUM
To: Mayor David Danner and Date: February 23, 2005
Members of the City Commission
From: Jorge Gonzalez y
City Manager
Jig' !�
Subject: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, AMENDING RESOLUTION 2004-25697
WHICH ESTABLISHED A CAPITAL RENEWAL AND REPLACEMENT
FUND TO PROVIDE A DEDICATED SOURCE OF FUNDING FOR CITY
CAPITAL RENEWAL AND REPLACEMENT PROJECTS THAT EXTEND
THE USEFUL LIFE OF GENERAL FUND ASSETS; ESTABLISHED A
PROCEDURE FOR ANNUAL APPROPRIATION OF FUNDS;
ESTABLISHED A PROCEDURE FOR THEIR USE; AND ADOPTED THE
FISCAL YEAR (FY) 2004/05 BUDGET FOR THE FUND, IN THE AMOUNT
OF $1,347,070.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
At the second Budget Hearing on September 28, 2004, the Commission adopted Resolution No.
2004-25697, establishing a Capital Renewal and Replacement fund for general fund assets and
procedures for appropriation and use of funds. Through the Resolution, the Commission approved
the appropriation of $80,000 for the replacement of floors at Fire Station No.'s 1 and 3. The balance
of funds in the amount of $1,267,070 was placed in reserves and the Commission directed the
Administration to provide the Finance and Citywide Projects Committee with additional criteria for
project specific appropriations from the Capital Renewal and Replacement Fund. A proposed set of
additional criteria was reviewed by the Finance and Citywide Projects Committee on December 14,
2004. At that meeting, the Committee instructed the administration to:
o Summarize the criteria into three critical areas
o Include a preamble/whereas clause pertaining to emergency use of funds
o Provide a provision for emergency use of the funds
192 of 1677
February 23, 2005
Page 2
The attached resolution amending Resolution No. 2004-25697, establishing a Capital Renewal and
Replacement fund, incorporates these items. On February 17, 2005, the Finance and Citywide
Projects Committee approved the resolution. The criteria incorporated are:
1. The permanent Capital Renewal and Replacement Fund established to be used for
capital projects that extend the useful life of the City's General Fund assets shall be
limited to projects defined as follows:
A. Projects that extend the useful life of a asset by at least 5 years with a threshold
value of at least $25,000; for example the replacement of a major component of
the asset such as roofs, HVAC systems, electrical systems, fire alarm systems,
sprinkler systems that due to significant deterioration would constrain the
remaining useful life of the asset
IAl.
B. Projects that significantly reduce future maintenance cost over the remaining fife
of the asset in an amount that is greater than the renewal and replacement costs
of the project.
2. The Mayor and Commission may authorize additional uses of the funds for unforeseen
or unanticipated events affecting life, health, property or public safety subject to a five -
sevenths (517) vote.
Concurrent with the establishment of a dedicated renewal and replacement reserve for
general fund assets, the City is developing of a schedule of renewal, replacement, and
routine maintenance requirements for the City's buildings, structures and facilities. Major
tasks to develop this schedule include 1) inspecting the City's buildings, structures and
facilities; 2) procuring Capital Planning and Management Solution software and inputting
the inspection results; and 3) forecasting component requirements for the life of each
asset. The City anticipates completing this process for 5 buildings this calendar year— City
Hall, Old City Hall, Police, the 777 Building, and Carl Fisher Clubhouse121" Street
Auditorium). The process for the remaining facilities and structures is planned to he
completed within the next 4 years. As the renewal and replacement requirements are
identified for the major components, they will be incorporated into future year project lists
for review by the Mayor and Commission during the budget process. Routine maintenance
requirements identified will be addressed elsewhere.
JMG\KGB
W
193 of 1677
RESOLUTION NO. 2006-26341
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING CITY OF
MIAMI BEACH FINANCIAL POLICIES RELATING TO
STABILIZATION FUNDS; FUND BALANCE; CONTINGENCY
PLANNING AND CASH RESERVES; USE OF NONRECURRING
REVENUES; CAPITAL ASSET ACQUISITION, MAINTENANCE,
REPLACEMENT AND RETIREMENT; AND GUIDING THE DESIGN
OF PROGRAMS AND SERVICES
WHEREAS, the City's Budget Advisory Committee (BAC), with supportfrom the City
Administration, has begun analyzing the City's existing financial policies, and
recommended an initial set of additional financial policies for consideration by the City
Commission; and
WHEREAS, the City has several existing formal financial policies that provide the
framework for budget development and adoption and for f nancial management which are
governed by Florida State Statute, the City Charter; and by prior adopted policies of the
Mayor and City Commission; and
WHEREAS, the City also has several informal policies subjectto implementation by
the City administration; and
WHEREAS, the National Advisory Council on State and Local Budgeting and the
Government Finance Officers Association recommends that jurisdictions establish and
adopt policies to help frame resource allocation decisions, and to help guide service
provision and capital asset acquisition, maintenance, replacement, and retirement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, hereby adopts the financial
policies contained in Exhibit A: City of Miami Beach Financial Policies Relating to
Stabilization Funds; Fund Balance; Contingency Planning and Cash Reserves; Use of
Non -Recurring Revenues; Capital Asset Acquisition, Maintenance, Replacement and
Retirement; and Guiding the Design of Programs and Services.
PASSED AND ADOPTED THIS 21stDAY OF SeptembeQO06.
Attest: L Vice-Mayorlerry Libbin .7 AS TO J 6u FORM & LANGUAGE
CITY CLERK ! FOR WCUTION
Robert Parcher
�L f7
DW
194 of 1677
RESOLUTION NO. 2014.28543
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC) AND
ADOPTING A CITY OF MIAMI BEACH FINANCIAL POLICY FOR THE
ESTABLISHMENT OF A RESERVE IN THE RESORT TAX FUND
WHEREAS, the Mayor and City Commission recognize the necessity to adequately
provide the resources to operate the City in the event of a catastrophe; and
WHEREAS, such resources can be provided by the establishment of a permanent
reserve for such contingencies; and
WHEREAS, the City 'a Budget Advisory Committee (SAC), with support from the City
Administration, has recommended the adoption of a financial policy for the establishment of a
reserve in the Resort Tax Fund; and
WHEREAS, the National Advisory Council on State and Local Budgeting and the
Government Finance Officers Association recommends that jurisdictions establish a policy
governing the appropriate level of reserves for key funds.
WHEREAS, the Finance and Citywide Projects Committee (FCWPC) met on March 21,
2014, and recommended that the City Commission adopt a City of Miami Beach financial policy
for the establishment of a reserve in the Resort Tax Fund.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, that the Mayor and City Commission hereby accept the
recommendation of the Finance and Citywide Projects Committee and adopt a City of Miami
Beach financial policy for the establishment of a reserve in the Resort Tax Fund; which policy is
attached and incorporated as Exhibit "A" to this Resolution.
PASSED AND ADOPTED this 23' day of,
Attest: _ t ,.
Ra el Granado, ity Cl"
y''C1-i 26
APPROVED AS TO
FORM & LANGUAGI
& FnA0f CUTIOh
195 of 1677
EXHIBIT A
CITY OF MIAMI BEACH FINANCIAL POLICY FOR THE ESTABLISHMENT OF
A RESERVE IN THE RESORT TAX FUND
1. The City of Miami Beach shall maintain a minimum reserve in the Resort Tax Fund (Fund
160) of two months of total revenue of the 2% resort tax and shall have a goal of maintaining
a minimum reserve equal to three months of total revenue of the 2% resort tax.
2. Said goal of three months of total revenue of the 2% resort tax shall be established within
the timeframe of ten years effective as of October 1, 2014.
3. A permanent contingency reserve is hereby established in an amount not less than two
months of total revenue of the 2% resort tax in the Resort Tax Fund to be held for use in a
public emergency if and when an emergency affecting life, health, property, public safety, or
a significant economic impact on resort tax collections, and the expenditure of such funds is
authorized by a five -sevenths (5/7) vote of the City Commission.
4. Said contingency reserve shall be increased or decreased annually, but shall be maintained
at a minimum amount of two months of total revenue of the 2% resort tax of the then
existing Resort Tax Fund Budget.
5. Prior to any expenditures from this reserve, the Mayor and City Commission must declare
an emergency affecting life, health, property, public safety, or a significant economic impact
on resort tax collections, and authorize said expenditures by a five -sevenths (5/7) vote. The
Administration is directed to restore the reserve to its aforementioned level in an amount of
not less than five hundred thousand dollars ($500,000) annually, by an amendment to the
Adopted Resort Tax Fund Budget.
196 of 1677
COMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS
COMMITTEE (FCWPC) TO ADOPT A CITY OF MIAMI BEACH FINANCIAL POLICY FOR THE
ESTABLISHMENT OF A RESERVE IN THE RESORT TAX FUND
Kff Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term
Improve the CINs overall financial health and maintain overall bond rating
Item Summarv/Recommendation:
Resort Taxes are a relatively volatile funding source as tourism is vulnerable to sudden changes
in economic conditions and natural hazards. In addition, the Resort Tax Fund currently transfers
$32.9 million to the General Fund to cover eligible tourism -related expenditures. This increases
the risk factor as any significant negative impacts to resort tax revenues will impact programs
and services in both the Resort Tax Fund as well as the General Fund. It is prudent and fiscally
responsible to create a sufficient reserve to insure against fluctuations in cash flow.
The City does not currently have a formal reserve policy for the Resort Tax Fund. In practice, the
City has maintained two months of operating expenses (net of debt service and transfers) as an
informal reserve policy the same as adopted reserve policies for the General Fund and
Enterprise Funds. Two months of operating expenses is a low reserve amount for this fund as
debt service and transfers are a significant portion of overall expenditures.
In Letter to Commission (LTC) number 422-2013, the Budget Advisory Committee (BAC)
requested that the Mayor and Commission support the BAC's recommendation for a proposed
reserve policy for the Resort Tax Fund.
The BAC's proposed reserve policy for the Resort Tax Fund was reviewed by the Finance &
Citywide Projects Committee (FCW PC) on March 21, 2014. The proposed policy was approved
with the following change: the ultimate goal of a reserve equaling six -months of total 2% resort
tax revenue was revised to three -months of total revenue. City Administration was directed to
prepare a resolution for Commission consideration adopting policies similar to the
recommendations of the BAC, with the slight change of the ultimate goal of a reserve of three
months total 2% resort tax revenue instead of six months.
Financial Information:
Source of
Amount
Account
Funds:
OBPI
Financial Impact
Summary:
m MIAMIBEACH 197 of 1677
AGENDA ITEM C 78
DATE
m MIAMI BEACH
Ory d MIaM fiwrly 17M Gon a . C w D i , Munn. Beorh, Fbr 33134...w-w.miamibeocAR qw
COMMISSION MEMORANDUM
TO: Mayor Philip Levine and Members f the Ciry mmission
FROM: Jimmy L. Morales, City Manager
DATE: April 23, 2014
SUBJECT: A RESOLUTION OF THE MAY R AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AC EPTING THE RECOMMENDATION OF THE
FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC) TO ADOPT A CITY
OF MIAMI BEACH FINANCIAL POLICY FOR THE ESTABLISHMENT OF A
RESERVE IN THE RESORT TAX FUND
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt the attached Resolution which
establishes a City of Miami Beach financial policy for the establishment of a reserve in the
Resort Tax Fund.
BACKGROUND
Resort Taxes are a relatively volatile funding source as tourism is vulnerable to sudden changes
in economic conditions. In addition, the Resort Tax Fund currently transfers $32.9 million to the
General Fund to cover eligible tourism -related expenditures. This increases the risk factor as
any significant negative impacts to resort tax revenues will impact programs and services in
both the Resort Tax Fund as well as the General Fund. It is prudent and fiscally responsible to
create a sufficient reserve to insure against fluctuations in cash flow.
The City does not currently have a formal reserve policy for the Resort Tax Fund. In practice,
the City has maintained two months of operating expenses (net of debt service and transfers) as
an informal reserve policy the same as adopted reserve policies for the General Fund and
Enterprise Funds. Two months of operating expenses is a low reserve amount for this fund as
debt service and transfers are a significant portion of overall expenditures.
In Letter to Commission (LTC) number 422-2013, the Budget Advisory Committee (BAC)
requested that the Mayor and Commission support the BAC's recommendation for a proposed
reserve policy for the Resort Tax Fund.
The BAC's proposed reserve policy for the Resort Tax Fund was reviewed by the Finance &
Citywide Projects Committee (FCWPC) on March 21, 2014. The proposed policy was approved
with the following change: the ultimate goal of a reserve equaling six -months of total 2% Resort
Tax revenue was revised to three -months of total revenue. City Administration was directed to
prepare a resolution for Commission consideration adopting policies similar to the
recommendations of the BAC, with the slight change of the ultimate goal of a reserve of three
months total 2% Resort Tax revenue instead of six months.
198 of 1677
Resolution Adopting a Financial Policy for the Establishment of a Reserve in the Resort Tax Fund
Page 2
The BAC and FCWPC recommend the following reserve policy for the Resort Tax Fund (Fund
160):
1. The City of Miami Beach shall maintain a minimum reserve in the Resort Tax Fund of two
months of total revenue of the 2% resort tax and shall have a goal of maintaining a minimum
reserve equal to six three months of total revenue of the 2% resort tax.
2. Said goal of six three months of total revenue of the 2% resort tax shall be established
within the timeframe of ten years effective as of October 1, 2014.
3. A permanent contingency reserve is hereby established in an amount not less than two
months of total 2% resort tax revenues of the annual fiscal budget in the Resort Tax Fund to
be held for use in a public emergency it and when an emergency affecting fife, health,
property, public safety, or a significant economic impact on resort tax collections, and the
expenditure of such funds is authorized by a five -sevenths (517) vote of the City
Commission.
4. Said contingency reserve shall be increased or decreased annually but shall be maintained
at a minimum amount of two months of total 2% resort tax revenues of the then existing
Resort Tax Fund Budget.
5. Prior to any expenditures from this reserve, the Mayor and City Commission must declare
an emergency affecting life, health, property, public safety, or a significant economic impact
on resort tax collections, and authorize said expenditures by a five -sevenths (W) vote. The
Administration is directed to restore the reserve to its aforementioned level in an amount of
not less than five hundred thousand dollars ($500,000) annually, by an amendment to the
Adopted Resort Tax Fund Budget.
ANALYSIS
The Government Finance Officers Association (GFOA) recommends a minimal reserve policy of
two months of operating expenses or two months of total revenues. The GFOA recommends
that in establishing a policy governing the appropriate level of reserves, a government should
consider a variety of factors including:
• The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of
reserves may be needed if significant revenue sources are subject to unpredictable
fluctuations or if operating expenditures are highly volatile)
• The fund's perceived exposure significant one-time outlays (e.g., disasters, immediate
capital needs, etc.)
• The potential drain upon general fund resources from other funds as well as the availability
of resources in other funds
199 of 1677
Resolution Adopting a Financial Policy for the Establishment of a Reserve in the Resat Tax Fund
Page 3
The proposed reserve policy proposes to set a floor reserve of at least two months of total 2%
resort tax revenue of the Resort Tax Fund (Fund 160). Based on the net cash available as of
9130/13, the fund currently meets the minimum reserve requirement of two months of total 2%
resort tax revenue in the policy. The goal would be to increase the reserve to six three months
of total 2% resort tax revenues over the period of the next ten years or sooner.
Preliminary
net cash available as of 9/30/13'
$10,942.051
Reserve equal
to 2 months of total 2% resort tax revenues
$7,946,833
Reserve equal
to 3 months of total 2% resort tax revenues
$11.920,250
Reserve equal
to 4 months of total 2% resort tax revenues
$15,893,667
Reserve equal
to 5 months of total 2% resort tax revenues
$19 867.083
Reserve equal
to 6 months of total 2% resort tax revenues
$23,840,500
i�iQ: ACIu/I MI GYM NNBDIBYOrW:ttYl3WI Mf b NNKde
FxwnNRspM (GFR) 4 conQbleOM Nry.
CONCLUSION
The proposed reserve policy for the Resort Tax Fund addresses the volatility of this key funding
source to minimize potential future negative impacts from unforeseen events. The policy would
help ensure continuity of operations in both the Resort Tax Fund and the General Fund and
maintain or improve the City's credit ratings. Administration recommends adoption of the
attached resolution.
JLM:,M1
200 of 1677
RESOLUTION NO. 2018-30429
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA SETTING 1) THE
PROPOSED OPERATING MILLAGE RATE; 2) THE REQUIRED
DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED
"ROLLED -BACK" RATE; AND, 4) THE DATE, TIME, AND
PLACE OF THE FIRST PUBLIC HEARING TO CONSIDER THE
MILLAGE RATES AND BUDGETS FOR FISCAL YEAR (FY)
2018119; AND, FURTHER, AUTHORIZING THE CITY MANAGER
TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE
COUNTY PROPERTY APPRAISER IN THE FORM REQUIRED
BY SECTION 200.065, FLORIDA STATUTES.
WHEREAS, Section 200,065, Florida Statutes, has specified the method by which
municipalities set the millage rate and adopt an annual budget; and
WHEREAS, development of the FY 2018/19 budget began early in the year and has
included several discussions with the City Commission that included a review of priorities,
economic projections and their impacts on the budget, preliminary projected revenues, and
expenditures; and
WHEREAS, over the last several years, the City of Miami Beach has adopted budgets
that have provided tax and fee relief, while at the same time providing improved levels of services
that address needs and priorities identified by the community; and
WHEREAS, maintaining and enhancing the City's priorities have become increasingly
more challenging due to a slowdown in the increase of property values, declining property tax
rates, and increasing personnel costs which include pension -related costs; and
WHEREAS, the July 1, 2018 Certification of Taxable Value from the Miami -Dade County
Property Appraiser reflects a 4.0 percent increase in citywide property tax values from the July 1,
2017 tax roll certification, a 5.1 percent increase in property tax values in the City Center
Redevelopment Area (RDA), and a 3.8 percent increase in property tax values outside the City
Center RDA, which directly impacts the City's General Fund property tax revenues; and
WHEREAS, the City's current general operating millage rate is comprised of a general
millage, which funds operating costs in the General Fund, and a renewal and replacement millage,
which provides a dedicated source of funding for capital renewal and replacement projects that
extend the useful life of General Fund capital assets; and
WHEREAS, at the May 24, 2018 Commission Budget Workshop, and at the June 8, 2016
and July 13, 2018 Finance and Citywide Projects Committee budget briefings for the development
of the proposed FY 2018/19 operating and capital budgets, the Administration recommended that _.
the general operating millage rate be comprised of an additional millage rate established for'Pay-
As-You-Go" (PAYGO) capital funds, which will provide dedicated funding for General Fund capital
projects and allow for growth over time with property values; and
WHEREAS, at the May 24, 2018 Commission Budget Workshop, and at the June 8, 2018
and July 13, 2018 Finance and Citywide Projects Committee budget briefings for the development
201 of 1677
of the proposed FY 2018/19 operating and capital budgets, the Administration recommended that
the proposed FY 2018119 'Pay -As -You -Go' (PAYGO) millage rate be set to the equivalent of the
$2,400,000 already proposed in the FY 2018119 operating budget based on the July 1, 2018
Certification of Taxable Value from the Miami -Dade County Property Appraiser; and
WHEREAS, based on the July 1, 2018 Certification of Taxable Value received from the
Miami -Dade County Property Appraiser, the consensus was to set the total operating millage,
Including the additional millage rate established for dedicated "Pay -As -You -GO' (PAYGO) capital
funds that would be offset entirely by a decrease in the City's general millage rate, at 5.7288 mills
and to set the voted debt service millage rate at 0.1660 mills, for a total combined millage rate of
5.8888 mills, which is the same as the total combined millage rate adopted in FY 2017118; and
WHEREAS, the City of Miami Beach is required to notify the Miami -Dade County Property
Appraiser of the Proposed Millage Rates, the "rolled -back" rate, and the date, time, and place of
the first public hearing; and
WHEREAS, the January 1, 2017 tax roll declined by $758.1 million between the certified
July 1, 2017 valuation and the final July 1, 2018 valuation due to appeals and adjustments, which
is part of the reason why the FY 2018119 "rolled -back" rate is 5.4727, which is 0,2497 mills lower
than the adopted FY 2017/18 total general operating millage rate of 5.7224 mills.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following recommendations
of the Administration be and are hereby ratified for transmittal to the Miami -Dade County Property
Appraiser, as specified in Section 200.065, Florida Statutes:
1) Proposed Millage Rates for FY 2018/19:
General Millage
5.6298 mills
Capital Renewal & Replacement Millage
0.0235 mills
Pay -As -You -Go (PAYGO) Millage
0.0755 mills
Total General Operating Millage
5.7288 mills
Voted Debt Service Millage
0.1600 mills
Total Combined Millage
5.8888 mills
2) "Rolled -Back" Rate
5.4727 mills
3) The first public hearing to consider the proposed millage rates and budgets for FY
2018119 shell be held on Wednesday, September 12, 2018, at 5:01 P.M., in the
City Commission Chambers at 1700 Convention Center Drive, 3f0 Floor, Miami
Beach, Florida 33139.
PASSED and DO•2018.
Rafael'E. Granado, City Clerk i ONCORP RATE APPROVED AS TO
r
FORM & LANGUAGE
I G FOR •
llll1lrl • '• I '
202«,
MIAMI BEACH
Resolutions • R7_E
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 25, 2018
SUBJECT.' A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA SETTING 1) THE PROPOSED OPERATING MILLAGE
RATE; 2) THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED
"ROLLED -BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST
PUBLIC HEARING TO CONSIDER THE MILLAGE RATES AND BUDGETS FOR
FISCAL YEAR (FY) 201a/19; AND, FURTHER, AUTHORIZING THE CITY
MANAGER TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY
PROPERTY APPRAISER IN THE FORM REQUIRED BY SECTION 200.065,
FLORIDA STATUTES.
See attached Memorandum.
Legislative Tracking
Budget and Performance Improvement
ATTACHMENTS:
Description
o Memo - FY 2018/19 Proposed Millage
Paye 10 9 of 1464
103 o 1677
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, vnvw.miamibeochR.gov
COMMISSION MEMORANDUM
TO: Mayor Dan Gelber and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 25, 2018
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA SETTING 1) THE PROPOSED OPERATING MILLAGE RATE; 2)
THE REQUIRED DEBT SERVICE MILLAGE RATE; 3) THE CALCULATED
"ROLLED -BACK" RATE; AND, 4) THE DATE, TIME, AND PLACE OF THE FIRST
PUBLIC HEARING TO CONSIDER THE MILLAGE RATES AND BUDGETS FOR
FISCAL YEAR (FY) 2018/19; AND, FURTHER, AUTHORIZING THE CITY MANAGER
TO TRANSMIT THIS INFORMATION TO THE MIAMI-DADE COUNTY PROPERTY
APPRAISER IN THE FORM REQUIRED BY SECTION 200.065, FLORIDA
STATUTES
ADMINISTRATION RECOMMENDATION
The Administration recommends that the Mayor and City Commission adopt the attached
Resolution, which authorizes the City Manager to transmit the following information to the Miami -
Dade County Property Appraiser:
1) Proposed Millage Rates for FY 2018/19
General Millage 5.6298 mills
Capital Renewal & Replacement Millage 0.0235 mills
Pay -As -You -Go (PAYGO) Millage 0.0756 mills
Total General Operating Millage 5.7288 mills
Voted Debt Service Millage 0.1600 mills
Total Combined Millage 5.8888 mills (same as last fiscal year)
2) "Rolled -Back" Rate (Truth in Millage) 5.4727 mills
3) The first public hearing to consider the proposed millage rates and budgets for FY 2018/19
shall be held on Wednesday, September 12, 2018, at 5:01 p.m., in the City Commission
Chambers at 1700 Convention Center Drive, 3r° Floor, Miami Beach, Florida 33139.
The "rolled -back" millage rate for FY 2018/19.isthe millage rate required to produce the same
level of property tax revenues in the General Fund in FY 2018/19 as anticipated to be received in
FY 2017118. It is important to note that the January 1, 2017 citywide tax roll declined by almost
$758.1 million between the July 1, 2017 certified valuation and the July 1, 2018 final valuation
due to appeals, adjustments, etc., which is part of the reason the FY 2018/19 "rolled-back"millage
rate is 0.2497 mills lower than the FY 2017118 general operating millage rate and is lower than it
would have been if the "rolled -back" rate was only adjusted for the increase In revenues generated
PI& of01677
FY 2018119 Proposed Millage Rate
July 25, 2018
Page 2
by higher property values. The area outside of the City Center Redevelopment Area (RDA), which
impacts General Fund revenues directly, decreased in value by approximately $525.2 million
during the same period.
The proposed millage provides funding to offset increases for personnel costs, such as a 1
percent cost of living adjustment, effective April 1, 2019; a 5% step increase for all Fraternal Order
of Police (FOP) and International Association of Fire Fighters (IAFF) personnel; 0-3% percent
performance -based merit increase for all non -FOP and IAFF personnel; the impact of annualized
costs for expenditures added per direction received from the City Commission during FY 2017118;
and other increases for operating and internal services funds expenditures.
In FY 2017/18, the Administration adopted a total combined millage rate for the City of Miami
Beach of 5.8888 mills, which is the lowest rate in at least 20 years.
There are two main components to the City's total combined millage rate: the operating millage
rate and the voted debt service millage rate. The operating millage rate, which is comprised of a
general and a renewal and replacement millage, funds operating costs in the General Fund while
the debt service millage rate funds debt service for previously issued General Obligation (G.O.)
bonds. In FY 2018/19, the projected debt service payment is $5.9 million, which requires the levy
of a voted debt service millage rate of 0.1600 mills. The FY 2018/19 debt service millage rate is
0.0064 mills less than in FY 2017/18 and this difference is proposed to be applied to the general
operating millage rate, as approved by the Finance and Citywide Projects Committee (FCWPC)
at the June 8, 2018 and July 13, 2018 budget briefings.
Commencing FY 2018119, as presented and recommended during the City Commission's Budget
Workshop held on May 24, 2018, and approved by the FCWPC at the June 8, 2018 and July 13,
2018 budget briefings, the operating millage rate will be comprised of an additional millage rate
for Pay -As -You -Go (PAYGO) capital funds, which will provide dedicated funding and allow for
growth over time with property values. This additional dedicated millage rate, equivalent to $2.4
million included in the proposed FY 2019 General Fund budget, will be offset entirely by a
decrease in the City's general millage rate. Overall, the City's total combined millage rate for FY
2018/19 is proposed to remain flat as reflected below:
IV 2017118
PY2018119
Adopted
Proposed
Inc / (Dec)
Genelel
5.6989
5.6298
(0.0691)
Capital Renewal 8 Replacement
0.0235
0.0235
0.0000
Pay -As -You -Go (PAYGO)
0.0000
0.0755
0.0755
Total General Operating Mil(age
5.7224
5.7288
0.0064
Debt SeMce
0.1664
0.1600
(0.0064)
Total Combined Mlilage
5.8888
5.8886
0.0000
ANALYSIS OF PROPERTY VALUES IN MIAMI BEACH
On July 1, 2018, the City received the 2018 Certification of Taxable Value from the Miami -Dade
County Property Appraiser's Office indicating that the taxable value for the City of Miami Beach
was $38.9 billion, which included $186.1 million in new construction. Property taxes comprise
approximately 54% of total General Fund revenues.
PaY8 0111glJ)464
FY 2018(19 Proposed Millage Rate
July 25, 2018
Page 3
The following table shows the difference between the preliminary June 1, 2018 values and
certified July 1, 2018 values, and the impact on projected FY 2018/19 property tax revenues:
June 2018
July 2018
Preliminary
Certified
Property Assessment
Existing Values
38,556,000,000
38,701,545,195
New Constmction
97,000,000
186,115, 906
38,887,661,101
Total 38,653,000,000
City Center RDA
5,927,316,190
5,993,199,9 9
Citywide Total
32,725,683,810
32,894,461,142
Property Tax Revenue Proecticn
181,200,000
1 2,16Q000
Property Tax Revenue Projection Variance
968,000
The preliminary June 1, 2018 property tax revenue projections assumed the City Center RDA
would increase by approximately 3.9 percent over the certified July 1, 2017 values based on
historical trends. However, based on the certified July 1, 2018 values received, the City Center
RDA increased approximately 5.1% over the certified July 1, 2017 values, thereby slightly
decreasing the citywide total by a greater percentage than originally projected.
The comparative assessed values for the City Center RDA increased from $5.7 billion to $6.0
billion, which Is an increase of approximately $290 million, or 5.1 percent, over the certified 2017
values. Citywide values, excluding the City Center RDA district, increased from $31.7 billion to
$32.9 billion, which is an increase of $1.2 billion, or 3.8 percent, over the certified 2017 values.
Cam parative Assessed Values Cxywids vs. City Center MA
July 1, 201i "� "--- Chenea In July i, 2018
Value 8 Chenea.
("20171" 201] %ChB. lFy2B1BNB %ChB.
Budget) (EyzOt7nfi vem.a eaaee0 Pn moron.)
VALUE OF ONE MILL OF TAXABLE VALUE
The first building block in developing a municipal budget is the establishment of the value of one
mill of taxation, wherein the mill is defined as $1.00 of ad valorem tax for every $1.000 of property
value. For the City of Miami Beach, the value for each mill for the proposed FY 2018/19 budget
Is determined by the 2018 Certification of Taxable Value, which has been set at $38.9 million.
Florida Statutes permit a discount of up to five percent for early payment discounts, delinquencies,
etc. Therefore, the 95 percent value of one mill citywide is $36.9 million. Net of Center City RDA
tax increment available to the General Fund, the value of one mill at 95 percent Is approximately
$31.8 million.
Pa2g06 of 1g774�
FY 2018119 Proposed Millage Rate
July 25, 2018
Page 4
DETERMINING THE VOTED DEBT SERVICE MILLAGE LEVY
The General Obligation (G.O.) Bond debt service payment for FY 2018/19 is projected to be $5.9
million. Based on the July 1, 2018 certified taxable values received from the Miami -Dade County
Property Appraiser's Office, this debt service payment would require the levy of a voted debt
service millage of 0.1600 mills, which represents a decrease of 0.0064 mills over the FY 2017/18
voted debt service levy of 0.1664 mills.
IMPACT OF PROPOSED MILLAGE LEVY IMPACT ON PROPERTY OWNERS
Homesteaded Properties
In 1992, voters approved an amendment to the Florida Constitution known as Amendment 10, or
Save Our Homes (SOH). SOH is an assessment limitation, or "cap", on increases in the assessed
value of a homestead residence. Those increases are limited to 3% or the percent change in the
CPI (Consumer Price Index), whichever is less. The "rap" goes into effect beginning the year after
a homestead exemption is granted.
Based on the January 1, 2018 homesteaded property values as of July 1, 2018, the median value
of homesteaded property in Miami Beach was $186,172 and the average was $473,353
(assuming a 2.1 percent increase over 2017 median and average homesteaded property values
pursuant to SOH). The impact of the proposed millage rate adjustment to homesteaded properties
In Miami Beach would be an increase of $24 for the median and an increase of $58 for the average
value homesteaded property as reflected in the table below,
Ho randeaded Properdae
"2M7M8
PY 20IN19
M0d11N^
Me s^
Median
I M.naza
Prelimina Taxable Value"
{ 182,343
$ 489,i17
$
11M.In
$ 473,353
City of Mlaml Beall
Openaing
Voted DON
$ 1,DQ3
30
$ 2.853
17
$
1,087
30
$
2,712
78
Total Mlanil Beach
$ 1073
IS 2,7M
$
1.097
$
;788
$ Change In Taxes
Operating
Wed Debt
$
24
$
59
fil
Tot01MWd Beach
$
U
$
58
"Source: M-001e County Properly ApKiese's-2017-weraWmetl an-homeatmdaeeldengeF
vep,en flb
Historical Perspective
It is important to note that in prior years, the City of Miami Beach significantly reduced tax rates
aeproperty-values increased. Between FY 1999/00 and FY 2009/10,-property tax rates declined
approximately 2.8 mills. In FY 2007/08 alone, the property tax rate declined by approximately 1.8
mills with annual savings to the average homesteaded property of over $400. In addition, in FY
2005106 and FY 2006107. the City funded $200 and $300 homeowner dividends paid to
homesteaded property owners in the City. Further, the proposed City of Miami Beach combined
millage rate for FY 2018/19 is the lowest it has been in at least 20 years and is equivalent to the
total combined millage rate adopted in FY 2017/18.
Pag07 of Ib77464
FY 201 &19 Proposed Millage Rafe
July 25, 2018
Page 5
Florida Statute 200.065, entitled "Method of Fixing Millage," establishes specific guidelines that
must be used by all local government entities in setting millage (property tax) rates. Under the
Florida Statute, the City is required, within 35 days of receipt of the "Certification of Taxable Value"
(received July 1, 2018), to advise the Miami -Dade County Property Appraiser of the proposed
general operating millage rate, the calculated "rolled -back" rate and the date, time, and place of
the first public hearing to consider the proposed millage rates and budgets for FY 2018/19. The
required debt service millage rate must also be set at the same time as the general operating
millage.
After setting the proposed FY 2018/19 millage rate, the Commission may, at any time prior to the
final adoption, lower the rates by adjusting priorities. However, increasing the millage rate may
only be accomplished by an expensive mailing and advertising process to every property owner
on Miami Beach. The City's proposed operating millage rate as well as that of other taxing
authorities will be included in the Truth-in-Millage (TRIM) statement sent to each property owner
in the City.
MAXIMUM MILLAGE DETERMINATION
As presented at the May 24, 2018 Budget Workshop, and June 8, 2018 and July 13, 2018 FCWPC
budget briefings, the proposed FY 2018/19 operating millage rate, which includes a dedicated
millage for Pay -As -You -Go (PAYGO) capital funds and allows for growth over time with property
values equivalent to $2.4 million included in the FY 2018/19 proposed General Fund budget and
entirely offset by a decrease in the City's general millage, Is 5.7288 mills. Based on the July 1,
2018 Certification of Taxable Value received from the Miaml-Dade County Property Appraiser,
the levy of 5.7288 mills would generate approximately $182.2 million In General Fund property
tax revenues, which is an increase of $6.8 million over FY 2017/18 budgeted property tax
revenues Citywide (net of the City Center RDA).
. __ ..
.. .July 2017
July 2018
� Certlfletl
Certified
Property A"sasmant
Existing Values
36,538,197,107
38,701,545,195
New Construction
858,885,383
186,115,906
36,887,661,101
Total; 37,397,062,490
MCenter A
5,7021M,489
51993,1 ,9
Citywide Total31,894,508,031
32,894,461,142
Pmped ex
venue P.Jection 17 ,9 ,000
1182,108,000
Property
Tax Revenue Projectlon Variance
6,805,000
Further, pursuant to State Statute, the City may elect to approve millage rates above the "rolled -
back" rate up to the constitutional cap of 10 mills, subject to the following votes by the Commission
or referendum:
Option I: A majority approval of the Commission is required to approve a millage up to
6.1024 mills (equivalent to a 1.47% increase in Property Tax revenues). The 1.0147
increase is the State per capita personal Income gain for the prior calendar year.
Pag08 of 16774�
FY 2018119 Proposed Millage Rate
July25, 2018
Page 6
• Option It: A two-thirds approval (5 of 7 votes) of the Commission is required to approve a
millage up to 6.7126 mills (equivalent to a 10% increase in Property Tax revenues above
Option 1).
• Option III: A unanimous approval of the Commission or referendum is required to approve
a millage above 6.7126 mills.
Adoption of the proposed FY 2018/19 total general operating millage rate of 5.7288 mills,
therefore, requires a majority approval (4 of 7 votes) by the City Commission per the State of
Florida's Truth-in-Millage (TRIM) requirements,
FIRST PUBLIC HEARING
The first public hearing on the proposed operating millage rate and budget for FY 2018/19 must
be held no later than 80 days, or earlier than 65 days, from the start of the TRIM calendar (July
1st). Other guidelines are: 1) The public hearing cannot be scheduled on a Sunday or on those
days utilized by Miami -Dade County or the Miami -Dade County School Board for their public
hearing; 2) If on a day other than Saturday, it must be held after 5:00 P.M.; and, 3) must be held
immediately following discussion of the tentative millage and budget of its principal taxing
authority (City of Miami Beach).
Based on these guidelines, the first hearing must be held between September 3, 2018 and
September 18, 2018. These dates are unavailable for the following reasons:
September 9 and 16 Sundays
September 3 Labor Day
September 5 Miami -Dade County School Board Public Hearing
September 6 Miami -Dade County Public Hearing
Of the remaining days available, it is recommended that the first public hearing be set for
Wednesday, September 12, 2018 at 5:01 P.M., in the City Commission Chambers at 1700
Convention Center Drive, 3" Floor, Miami Beach, Florida 33139, immediately following the City
of Miami Beach's public hearing.
JLM/JW/TOS
Pea 9 of 1677464
RESOLUTION NO. 2019-30664
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE & CITYWIDE PROJECTS COMMITTEE AT ITS NOVEMBER 30,
2018 MEETING AND ADOPTING THE RESORT TAX RESERVE POLICY, AS
SET FORTH IN THE ATTACHED EXHIBIT A, WHICH SHALL REPLACE AND
SUPERCEDE THE RESORT TAX POLICY SET FORTH IN RESOLUTION NO.
2014-28543, AND WHICH IS CONSISTENT WITH RECOMMENDATIONS OF
THE MAYOR'S BLUE RIBBON EMERGENCY RESPONSE COMMITTEE AND
THE CITY'S BUDGET ADVISORY COMMITTEE.
WHEREAS, the Mayor and City Commission recognize the necessity to adequately
provide the resources to operate the City in the event of a catastrophe; and
WHEREAS, such resources can be provided by the establishment of a permanent
reserve for such contingencies; and
WHEREAS, the Mayors Blue Ribbon Emergency Response Committee (BRERC) and
the City's Budget Advisory Committee (BAC), with support from the City Administration, has
recommended the revision of the existing financial policy, set forth in Resolution No. 2014-
28543, for the establishment of a reserve in the Resort Tax Fund; and
WHEREAS, the National Advisory Council on State and Local Budgeting and the
Government Finance Officers Association recommends that jurisdictions establish a policy
governing the appropriate level of reserves for key funds; and
WHEREAS, the Finance and Citywide Projects Committee (FCWPC) met on November
30, 2018, and recommended that the City Commission revise the existing City of Miami Beach
financial policy for the establishment of a reserve in the Resort Tax Fund; and
WHEREAS, consistent with recommendations of the FCWPC, the BAC, and the
BRERC, the Financial Policy for the Establishment of a Reserve in the Resort Tax Fund, as set
forth in Exhibit A, should be adopted and should replace and supercede the Resort Tax Reserve
Policy set forth in Resolution No. 2014-28543.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, that the Mayor and City Commission hereby accept the
recommendation of the Finance and Citywide Projects Committee at its November 30, 2018
meeting and hereby adopt the Resort Tax Reserve Policy, as set forth in the attached Exhibit A,
which shall replace and supercede the Resort Tax Policy set forth in Resolution No. 2014-
28543, and which is consistent with the recommendations of the Mayor's Blue Ribbon
Emergency Response Committee and the Budget Advisory Committee.
PASSED AND ADOPTED this 16'^ day of January, 2019,
ATTEST:
�j APPROVED AS TO
ED j r FORM & LANGUAGE
&FOR ELUTION
ow
.577 CffYAtraney-)�(— Dote
EXHIBIT A
CITY OF MIAMI BEACH FINANCIAL POLICY FOR THE ESTABLISHMENT OF
A RESERVE IN THE RESORT TAX FUND
1. The City of Miami Beach shall maintain a minimum reserve in the Resort Tax Fund (Fund
160) of two months of total revenue of the 2% resort tax and shall have a goal of maintaining
a minimum reserve equal to six months of total revenue of the 2% resort tax.
2. Said goal of six months of total revenue of the 2% resort tax shall be established within the
timeframe of ten years effective as of October 1, 2019.
3. A permanent contingency reserve is hereby established in an amount not less than two
months of total revenue of the 2% resort tax in the Resort Tax Fund to be held for use in a
public emergency if and when an emergency affecting life, health, property, public safety, or
a significant economic impact on resort tax collections, and the expenditure of such funds is
authorized by a five -sevenths (5/7) vote of the City Commission.
4. Said contingency reserve shall be increased or decreased annually, but shall be maintained
at a minimum amount of two months of total revenue of the 2% resort tax of the then
existing Resort Tax Fund Budget.
5. As the reserve level increases over time to meet the six month goal, the minimum required
2% Resort Tax reserve will increase above the initial two months, as a moving floor,
beginning an attainment of the remaining target. For example, once the reserve attains the
four month target at the end of a fiscal year, the minimum reserve would increase to three
months and so on, until the six month minimum reserve is achieved.
6. Prior to any expenditures from this reserve, the Mayor and City Commission must declare
an emergency affecting life, health, property, public safety, or a significant economic impact
on resort tax collections, and authorize said expenditures by a five -sevenths (5/7) vote. The
Administration is directed to restore the reserve to its aforementioned level in an amount of
not less than five hundred thousand dollars ($500,000) annually, by an amendment to the
Adopted Resort Tax Fund Budget.
211 of 1677
Resolutions - C7 B
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: January 16, 2019
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS
NOVEMBER 30, 2018 MEETING TO REVISE THE RESORT TAX RESERVE
POLICY CONSISTENT WITH RECOMMENDATIONS OF THE MAYOR'S
BLUE RIBBON EMERGENCY RESPONSE COMMITTEE AND BUDGET
ADVISORY COMMITTEE.
Legislative Tracking
Budget and Performance Improvement
Sponsor
Commissioner Micky Steinberg
ATTACHMENTS:
Description
u Resod Tax Reserve Policy Memorandum
Page 484 of 1648
212 of 1677
MIAMI BEACH
City of Miami Baach, 1700 Com mficn Center Drive, Miami Beach, Florida 33139, w .miamibeachfl.gov
COMMITTEE MEMORANDUM
TO: Members of the Finance & City Wide Projects Committee
FROM: Jimmy L. Morales, City Manager
DATE: January 16, 2019
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE &
CITYWIDE PROJECTS COMMITTEE AT ITS NOVEMBER 30, 2018 MEETING TO
REVISE THE RESORT TAX RESERVE POLICY CONSISTENT WITH
RECOMMENDATIONS OF THE MAYOR'S BLUE RIBBON EMERGENCY RESPONSE
COMMITTEE AND BUDGET ADVISORY COMMITTEE
Recommendation
The Administration recommends the approval of the resolution accepting the recommendation of the
Finance & Citywide Projects Committee at its November 30, 2018 meeting to revise the existing
Resort Tax Reserve Policy.
Background
At the May 18, 2018 Finance & Citywide Projects Committee, the recommendations of the Mayor's
Blue Ribbon Emergency Response Committee were discussed. This Committee was created to
make recommendations to the Mayor and City Commission regarding proactive measures and
response plans to address any emergencies in the City and to protect and enhance the Miami
Beach brand. Of the five recommendations, two involved the Resort Tax Fund:
• The Committee recommends that sufficient funds from the RDA be released into the resort tax
reserve in order to fund the Commission policy of a three-month goal.
• The Committee recommends that a referral be made to the Finance & Citywide Projects
Committee to examine what the triggers to use reserve tax dollars should be set and discuss
what else can be done to maximize return of resort tax dollars.
The Finance Committee reviewed the proposed revised Resort Tax Reserve Policy at its November
30, 2018 meeting based on recommendations by the Budget Advisory Committee.
Analysis
Resort Taxes are a relatively volatile funding source as tourism is vulnerable to sudden changes in
economic conditions. In addition, the Resort Tax Fund currently transfers $35.8 million to the
General Fund to cover eligible tourism -related expenditures. This increases the risk factor as any
significant negative impacts to resort tax revenues will impact programs and services in both the
Resort Tax Fund as well as the General Fund. it is prudent and fiscally responsible to maintain a
sufficient reserve to insure against fluctuations in cash flow.
The Government Finance Officers Association (GFOA) recommends a minimal reserve policy of two
Page 485 of 1649
213 of 1677
REVISED RESORT TAX RESERVE POLICY
Page 2
months of operating expenses or two months of total revenues. The GFOA recommends that in
establishing a policy governing the appropriate level of reserves, a government should consider a
variety of factors including:
• The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of
reserves may be needed if significant revenue sources are subject to unpredictable fluctuations
or if operating expenditures are highly volatile)
• The fund's perceived exposure significant one-time outlays (e.g., disasters, immediate capital
needs, etc.)
• The potential drain upon general fund resources from other funds as well as the availability of
resources in other funds
The current Resort Tax Reserve Policy was adopted in 2014 and developed through
recommendations from the Budget Advisory Committee and Finance 8 Citywide Projects
Committee, The Budget Advisory Committee recently reviewed the existing policy at their
September 11, 2018 and October 9, 2018 meetings and made a formal motion via an LTC on
October 22, 2018 that recommends changes to the policy as shown below.
The objectives of the proposed changes to the policy are to increase the goal of a minimum
reserve from three months to six months and create a moving floor where the minimum reserve
Increases over time until it reaches six months. The amount of reserve in the minimum reserve is
subject to an emergency provision and five -sevenths vote by Commission. These changes address
the concerns of the Mayors Blue Ribbon Emergency Response Committee. The Resort Tax
Reserve is currently funded at the targeted three months of total revenue of the 2% resort tax after
having been near the two month minimum reserve for the last two years.
REVISED RESORT TAX FUND RESERVE POLICY
1. The City of Miami Beach shall maintain a minimum reserve in the Resort Tax Fund (Fund 160) of two
months of total revenue of the 2% resort tax and shall have a goal of maintaining a minimum reserve equal
to three §1j months of total revenue of the 2% resort tax.
2. Said goal of three six months of total revenue of the 2% resort tax shall be established within the
timeframe of ten years effective as of October 1, 2044 2019.
3. A permanent contingency reserve is hereby established in an amount not less than two months of total
revenue of the 2% resort tax in the Resort Tax Fund to be held for use in a public emergency if and when
an emergency affecting life, health, property, public safety, or a significant economic impact on resort tax
collections, and the expenditure of such funds is authorized by a five -sevenths (W) vote of the City
Commission.
4. Said contingency reserve shall be increased or decreased annually, but shall be maintained at a minimum
amount of two months of total revenue of the 2% resort tax of the then existing Resort Tax Fund Budget,
5. As the reserve level increases over time to meet the six month coal, the minimum required 2% Resort Tax
reserve will increase above the initial two months, as a moving floor, beginning an attainment of the
remaining tame(. For example, once the reserve attains the four month taroet at the end of a fiscal year,
the minimum reserve would increase to three months and so on. until the six month minimum reserve is
achieved.
Page 486 of 1648
214 of 1677
REVISED RESORT TAX RESERVE POLICY
Page 3
6. Prior to any expenditures from this reserve, the Mayor and City Commission must declare an emergency
affecting life, health, property, public safety, or a significant economic impact on resort tax collections, and
authorize said expenditures by a five -sevenths (5/7) vote. The Administration is directed to restore the
reserve to its aforementioned level in an amount of not less than five hundred thousand dollars ($500,000)
annually, by an amendment to the Adopted Resort Tax Fund Budget.
Conclusion
The Administration recommends the approval of the resolution accepting the recommendation of the
Finance & Citywide Projects Committee at its November 30, 2018 meeting to revise the existing
Resort Tax Reserve Policy, which addresses concerns from the Mayor's Blue Ribbon Emergency
Response Committee and Budget Advisory Committee. The proposed changes to the reserve
policy for the Resort Tax Fund address the volatility of this key funding source to minimize potential
future negative impacts from unforeseen events. The policy would help ensure continuity of
operations in both the Resort Tax Fund and the General Fund and maintain or improve the City's
credit ratings.
JLM/JW
Pa a 487 of 1648
275 of 1677
RESOLUTION NO. 2019-30964
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE
RECOMMENDATION OF THE FINANCE AND CITYWIDE
PROJECTS COMMITTEE AT ITS JULY 26, 2019 MEETING, AND
AMENDING AND RESTATING RESOLUTION NO. 2006-26341,
WHICH ADOPTED THE CITY OF MIAMI BEACH FINANCIAL
POLICIES RELATING TO STABILIZATION FUNDS; FUND
BALANCE; CONTINGENCY PLANNING AND CASH
RESERVES; USE OF NON -RECURRING REVENUES; CAPITAL
ASSET ACQUISITION, MAINTENANCE, REPLACEMENT AND
RETIREMENT; AND GUIDING THE DESIGN OF PROGRAM AND
SERVICES, TO INCORPORATE REVISIONS TO THE
STABILIZATION FUNDS AND FUND BALANCEICONTINGENCY
PLANNING AND CASH RESERVES POLICY (GENERAL FUND
RESERVE POLICY), AS SET FORTH IN THE ATTACHED
EXHIBIT A, WHICH SHALL REPLACE AND SUPERSEDE THE
GENERAL FUND RESERVE POLICY SET FORTH IN
RESOLUTION NO. 2006-26341, AND WHICH IS CONSISTENT
WITH THE RECOMMENDATION OF THE CITY'S BUDGET
ADVISORY COMMITTEE.
WHEREAS, on September 21, 2006, the City Commission adopted Resolution No. 2006-
26341, which formalized the City's financial policies relating to Stabilization Funds; Fund Balance;
Contingency Planning and Cash Reserves; Use of Non -Recurring Revenues; Capital Asset
Acquisition, Maintenance, Replacement and Retirement; and Guiding the Design of Programs;
and
WHEREAS, on January 16, 2019, the City Commission adopted Resolution No. 2019-
30664, which revised the City's Resort Tax Reserve Policy to address the concerns of the Mayors
Blue -Ribbon Emergency Response and Budget Advisory Committees; and
WHEREAS, at the May 21, 2019 Commission Budget Workshop, the Administration
recommended a revision of the City's General Fund Reserve Policy to help maintain or improve
the City's credit rating and financial position; and
WHEREAS, at the July 26, 2019 Finance and Citywide Projects Committee meeting, the
Committee recommended a revision of the City's General Fund Reserve Policy to help maintain
or improve the City's credit rating and financial position; and
WHEREAS, the Government Finance Officers Association (GFOA) recommends that
governments establish a formal policy on the level of unrestricted fund balance that should be
maintained in the General Fund for Generally Accepted Accounting Principles (GAAP) and
budgetary purposes; and
WHEREAS, the GFOA recommends that the adequacy of unrestricted fund balance in the
General Fund should take into account each government's own unique circumstances; for
example, governments that may be vulnerable to natural disasters, more dependent on a volatile
revenue source, or potentially subject to cuts in state aid and/or federal grants, may need to
maintain a higher level in the unrestricted fund balance; and
216 of 1677
WHEREAS, the GFOA recommends, at a minimum, that general purpose governments,
regardless of size, maintain an unrestricted budgetary fund balance in their general fund of no
less than 2 months of the general fund budget; and
WHEREAS, the City of Miami Beach's current reserve policy is consistent with the GFOA's
minimum General Fund reserve recommendation, and the City's current reserve policy
establishes an 11% reserve of the General Fund Operating Budget for emergencies and a goal
to maintain a General Fund Reserve for Contingencies equal to 6%of the General Fund Operating
Budget, for a combined total of 17%, which represents 2 months of the General Fund Operating
Budget expenditures; and
WHEREAS, in light of the City's vulnerability to storm events and dependence on volatile
Resort Tax revenues, the objective of the proposed changes to the General Fund Reserve Policy
is to increase the required reserve for emergencies from 11% to 17%; increase the goal for
reserve for contingencies from 6% to 8%; and effectively increase the total reserve target from
17% to 25%, or from 2 months to 3 months of the City's General Fund Operating Budget; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission
hereby accept the recommendation of the Finance and Citywide Projects Committee at its July
26, 2019 meeting, and amending and restating Resolution No. 2006-26341, which adopted the
City of Miami Beach Financial policies relating to Stabilization Funds; Fund Balance; Contingency
Planning and Cash Reserves; Use of Non -Recurring Revenues; Capital Asset Acquisition,
Maintenance, Replacement and Retirement; and Guiding the Design of Programs, to incorporate
revisions to the Stabilization Funds and Fund Balance/Contingency Planning and Cash Reserves
Policy (General Fund Reserve Policy), as set forth in the attached Exhibit A, which shall replace
and supersede the General Fund Reserve Policy set forth in Resolution No. 2006-26341, and
which is consistent with the recommendation of the City's Budget Advisory Committee.
PASSED and ADOPTED, this 11' day of September, 2019.
ATTEST:
ikolk
Ra eel E. Granado. City Clerk
Dan Gelber, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FOR ECyTION
I� ;tl0nn r (pl i(9
Crty Attorney Date
217 of 1677
EXHIBIT A
CITY OF MIAMI BEACH FINANCIAL POLICIES
RELATING TO
STABILIZATION FUNDS; FUND BALANCE; CONTINGENCY PLANNING AND CASH
RESERVES; USE OF NON -RECURRING REVENUES; CAPITAL ASSET ACQUISITION,
MAINTENANCE, REPLACEMENT AND RETIREMENT; AND GUIDING THE DESIGN OF
PROGRAMS AND SERVICES
Stabilization Funds & Fund Balance/Contingency Planning and Cash Reserves
1. The City of Miami Beach shall maintain the Emergency Reserve at seventeen eleven
percent (44 17%) of the General Fund Operating Budget of the ensuing year (44 17%
Emergency Reserve) for use as defined in resolution 98- 22661.
2. The City of Miami Beach shall have a goal to also maintain a General Fund Reserve for
Contingencies equal to at least-sk eight (6-8%) of the General Fund Operating Budget
that, in combination with the 44 17% Emergency Reserve, represents bun three (2-2)
months of the General Fund Operating Budget expenditures.
3. Said reserve shall be increased or decreased annually but shall be maintained at a
minimum of six eight percent (6% 80/n of the then existing General Fund Operating
Budget.
4. Once the General Fund Reserve for Contingencies goal of eight percent (8%) is initially
achieved, if the amount falls below the six eight percent (6 8%) level, a plan of action will
be required to increase the reserves over three (3) to seven (7) years to at least eix eight
percent (6 60/6) and a percentage of any additional undesignated fund balance shall be
earmarked toward attainment of the -six eight percent (6 8%) level.
5. The City of Miami Beach shall have a goal to develop and maintain appropriate levels of
reserves in the Enterprise Funds as in the General Fund.
6. The City of Miami Beach shall have a goal of maintaining a reserve of one hundred percent
(100%) of pending claims in the Risk Management Fund and shall strive to fund two-thirds
(2/3) of the estimated value of insurance claims incurred but not reported.
Use of Non -Recurring Revenues
The City of Miami Beach will use one-time, non -recurring revenue for capital expenditures or one
time expenditures and not to subsidize recurring personnel, operations and maintenance cost.
Capital Asset Acquisition, Maintenance. Replacement and Retirement
1. The City shall maintain a dedicated portion of operating millage for General Fund Capital
Renewal and Replacement as defined in Resolution 2005-25832.
218 of 1677
2. The City shall have a goal to fund for the following capital needs as a permanent part of
the budget in an amount not less than five percent (5%) of the annual fiscal operating
budget of the General Fund of the City:
• Capital Renewal and Replacement — to ensure adequate funding for the renewal and
replacement of the City's General Fund facilities to extend the useful life or replace
equipment whose useful life has expired.
• Capital Reserve Fund — to help ensure adequate funding related to previously approved
capital projects for expenditures due to bids that are over -budget, change orders, or other
unforeseen items for General Fund projects.
• Pay -As -You -Go Capital Fund — to ensure adequate ongoing reinvestment in capital
plant and equipment and avoid deferring capital needs until there is a major bond issue.
• Capital Investment Upkeep Fund — to help ensure adequate funding for General Fund
non -facility related upkeep.
• Information and Communications Technology Fund - to help ensure adequate
funding for the procurement of new or enhanced information and technology needs of the
City.
3. The City shall strive to achieve as a goal that annual General Fund revenues in excess of
expenditures shall be transferred to the Capital Reserve Fund.
4. The City shall have a goal to develop and maintain appropriate levels of capital reserves
in the Enterprise Funds as in the General Fund.
Guiding the Design of programs and Services
1. The City of Miami Beach shall create a strategic plan that identifies multi -year strategic
priorities (Key Intended Quteame5) with corresponding result measures for each priority.
2.. Annually, the City of Miami Beach shall use a strategic planning process to develop
initiatives that support the strategic plan priorities.
3. The budget process and format shall be performance -based and focused on Key Intended
Outcomes and performance measures.
4. Any new initiatives not core to the City's core mission or Key Intended Outcomes identified
in the strategic plan that is greater than 0.5% of budget for the fund impacted per year, or
cumulatively, shall be first considered as part of the City's annual strategic planning
process to develop initiatives.
219 of 1677
Resolutions C7 Q
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: Septenber 11, 2019
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS JULY 26,
2019 MEETING, AND AMENDING AND RESTATING RESOLUTION NO.
2006-26341, WHICH ADOPTED THE CITY OF MIAMI BEACH FINANCIAL
POLICIES RELATING TO STABILIZATION FUNDS; FUND BALANCE;
CONTINGENCY PLANNING AND CASH RESERVES; USE OF NOW
RECURRING REVENUES; CAPITAL ASSET ACQUISITION,
MAINTENANCE, REPLACEMENT AND RETIREMENT; AND GUIDING THE
DESIGN OF PROGRAM AND SERVICES, TO INCORPORATE REVISIONS
TO THE STABILIZATION FUNDS AND FUND BALANCEICONTINGENCY
PLANNING AND CASH RESERVES POLICY (GENERAL FUND RESERVE
POLICY), AS SET FORTH IN THE ATTACHED EXHIBIT A, WHICH SHALL
REPLACE AND SUPERSEDE THE GENERAL FUND RESERVE POLICY
SET FORTH IN RESOLUTION NO. 2006-26341, AND WHICH IS
CONSISTENT WITH THE RECOMMENDATION OF THE CITYS BUDGET
ADVISORY COMMITTEE.
See attached Memorandum
Leaislative Tracking
Office of Management and Budget
Soonsw
Commissioner Samuelian
ATTACHMENTS:
Description
o Memo -Amend General Fund Reserve Policy
o Resolution
Page 382 of 2228
220 of 1677
MIA/\N BEACH
Coy of Nuclei Be", 1700 Conronhon Caner 0rl.e, Miami Beach, florida 33139, w ,mlamiheachB.gm
COMMITTEE MEMORANDUM
TO Members of the Finance & Citywide Projects Committee
FROM: Jimmy L. Morales, City Manager
DATE: September 11, 2019
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND
CITYWIDE PROJECTS COMMITTEE AT ITS JULY 26, 2019 MEETING, AND
AMENDING AND RESTATING RESOLUTION 2006-26341 TO INCORPORATE
REVISIONS TO THE GENERAL FUND RESERVE POLICY, AS SET FORTH IN THE
ATTACHED EXHIBIT A, WHICH SHALL REPLACE AND SUPERSEDE THE
GENERAL FUND RESERVE POLICY SET FORTH IN RESOLUTION 2006-26341,
AND WHICH IS CONSISTENT WITH THE RECOMMENDATION OF THE CITY'S
BUDGET ADVISORY COMMITTEE
Backaround
On September 21, 2006, the City Commission adopted the City's financial policies retating to
Stabilization Funds; Fund Balance; Contingency Planning and Cash Reserves; Use of Non -
Recurring Revenues; Capital Asset Acquisition, Maintenance, Replacement and Retirement; and
Guiding the Design of Programs and Services by adopting Resolution 2006-26341.
On January 16, 2019, the City Commission accepted the recommendation of the Finance and
Citywide Projects Committee to revise the City's Resort Tax Reserve Policy, which addressed the
concems of the Mayor's Blue -Ribbon Emergency Response and Budget Advisory Committees.
At the May 21, 2019 Commission Budget Workshop, the Administration recommended a revision
of the City's General Fund Reserve Policy to help maintain or improve the City's credit rating and
financial position.
At the July 26, 2019 Finance and Citywide Pmjects Committee meeting, the Committee
recommended a revision of the City's General Fund Reserve Policy to help maintain or improve
the City's credit rating and financial positron.
Analysis
The Government Finance Officers Association (GFOA) recommends that governments establish
a formal policy on the level of unrestricted fund balance that should be maintained in the General
Fund for GAAP and budgetary purposes.
The adequacy of unrestricted fund balance in the General Fund should take into account each
government's own unique circumstances. For example, governments that may be vulnerable to
natural disasters, more dependent on a volatile revenue source, or potentially subject to cuts in
state aid and/or federal grants, may need to maintain a higher level in the unrestricted fund
Page 383 of 2228
221 of 1677
RESTATE AND REVISE RESOLUTION 2006-26341 TO REVISE THE GENERAL FUND
RESERVE POLICY
Page 2
balance.
The GFOA recommends, at a minimum, that general-purpose governments, regardless of size,
maintain unrestricted budgetary fund balance in their General Fund of no less than 2 months of
the General Fund budget.
Miami Beach's current reserve policy is consistent with the GFOA's minimum General Fund
reserve recommendation. The City's current reserve policy establishes an 11 % reserve of the
General Fund Operating Budget for emergencies. In addition, the City has a goal to maintain a
General Fund Reserve for Contingencies equal to 6% of the General Fund Operating Budget. In
combinatton, the total of 17% represents 2 months of the General Fund Operating Budget
expenditures.
In light of the City's vulnerability to storm events and dependence on volatile Resort Tax revenues,
the objective of the proposed changes to the General Fund Reserve Policy is to:
• Increase the required reserve for emergencies from 11% to 17
• Increase the goal for reserve for contingencies from 6% to n
• Increase the total reserve target from 17% to 2a or from 2 months to 3 months of
operating revenues.
The current General Fund reserve is estimated to be 20.3% or $67.1 million. This amount meets
the proposed required 17% emergency reserve and 3.2% of the proposed 8% goal for reserve for
contingencies.
Budaet Advisory Committee Endorsement
On July 17, 2019, the Budget Advisory Committee reviewed the proposed revision to the General
Fund Reserve Policy. Although there were not enough members present to forth a quorum to
approve a motion to recommend this proposed revision, the members in attendance endorsed
the proposed change to the City's General Fund Reserve Policy.
General Fund Reserve Policy (Blacidine Version)
1. The City of Miami Beach shall maintain the Emergency Reserve at seventeen eleven
percent (44 17%) of the General Fund Operating Budget of the ensuing year (44 17%
Emergency Reserve) for use as defined in resolution 98- 22661.
2, The City of Miami Beach shall have a goal to also maintain a General Fund Reserve for
Contingencies equal to at least -six eight (6-$W of the General Fund Operating Budget
that, in combination with the 44 17% Emergency Reserve, represents foe -three (S-3J
months of the General Fund Operating Budget expenditures.
3. Said reserve shall be increased or decreased annually but shall be maintained at a
minimum of six eight percent (6% 8tO of the then existing General Fund Operating
Budget.
4. Once the General Fund Reserve for Contingencies goal of eight percent (8%) is initially
achieved. if the amount falls below the six elaht percent (6 8%) level, a plan of action will
Page 384 of 2228
222 of 1677
RESTATE AND REVISE RESOLUTION 2006-26341 TO REVISE THE GENERAL FUND
RESERVE POLICY
Page 3
be required to increase the reserves over three (3) to seven (7) years to at least aw eioht
percent (6 $%) and a percentage of any additional undesignated fund balance shall be
earmarked toward attainment of the-sk eioht percent (@ 8%) level.
5. The City of Miami Beach shall have a goal to develop and maintain appropriate levels of
reserves in the Enterprise Funds as in the General Fund.
6. The City of Miami Beach shall have a goal of maintaining a reserve of one hundred percent
(100%) of pending claims in the Risk Management Fund, and shall strive to fund two-thirds
(213) of the estimated value of insurance claims incurred but not reported.
Conclusion
The revision to the City's reserve policy addresses the City's exposure to weather events and
dependence on volatile Resort Tax revenues and will help ensure continuity of operations during
emergencies and maintain or improve the City's credit ratings.
The attached resolution amends and restates Resolution 2006-26341 to incorporate revisions to
the General Fund Reserve policy and is consistent with the recommendations of the Finance and
Citywide Project Committee and the Budget Advisory Committee.
JLM/JWITOS
Page 385 of 2228
223 of 1677
RESOLUTION NO. 2023-32647
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, DIRECTING THE
ADMINISTRATION TO IDENTIFY ALL CITY COMMISSION -
SPONSORED GRANTS WHICH CONTEMPLATE RECURRING
FUNDING TO THE GRANTEES AS A SEPARATE LINE ITEM IN THE
PROPOSED OPERATING BUDGET AND/OR BUDGET
PRESENTATIONS MADE TO THE CITY COMMISSION; AND
FURTHER, REQUIRING THE ADMINISTRATION TO REVIEW AND
MAKE RECOMMENDATIONS TO THE CITY COMMISSION ON
RECURRING GRANTS EVERY THREE (3) YEARS, TO ALLOW FOR
PERIODIC REVIEW AND APPROVAL OF ALL COMMISSION -
SPONSORED INITIATIVES OR GRANT PROGRAMS WHICH INVOLVE
RECURRING FUNDING, AND THEREBY ENSURE THAT RECURRING
GRANTS ALIGN WITH THE CITY COMMISSION'S EVOLVING
BUDGET PRIORITIES.
WHEREAS, every year, the City of Miami Beach awards grants to a wide
variety of individuals and entities, including, but not limited to, grants for the benefit of
education, art and music, environment, and vulnerable and disenfranchised groups;
and
WHEREAS, many such grants are awarded on a recurring basis, with the grant
agreement subject to renewal at the discretion of the City Administration; and
WHEREAS, at the May 2023 City Commission Budget Workshop, the City
Commission reviewed a number of recurring grants it was not previously aware of;
and
WHEREAS, in the interest of good governance, fiscal responsibility, and in the
best interests of the City, the Mayor and City Commission desire to ensure that City
Commission -sponsored grants involving recurring funding are presented to the City
Commission as part of the annual budget process, and to require the Administration to
periodically review and make recommendations on whether to continue such recurring
grant programs every three (3) years, in order to ensure that recurring grants align
with the City Commission's evolving budget priorities.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby direct the Administration to identify all City Commission -
sponsored grants which contemplate recurring funding to the grantees as a separate
line item in the proposed Operating Budget and/or budget presentations made to the
City Commission as part of the annual budget process; and further, require the
Administration to review and make recommendations to the City Commission on
recurring grants every three (3) years, to allow for periodic review and approval of all
224 of 1677
Commission -sponsored initiatives or grant programs which involve recurring funding,
and thereby ensure that recurring grants align with the City Commission's evolving
budget priorities.
PASSED and ADOPTED this OW day of 144G 2023.
ATTEST:
/ JUL - 5 2023 Dan Gelber, Mayor
Rafael E. Granado, City Clerk
(sponsored by Commissioner David Richardson)
APPROVED AS TO
"F�PT-n• S"t
FORM B LANGUAGE
't
8 FOR E%ECUTICN
INCORP ORAiEO
CWIA., b( Oab
225 of 1677
Resolutions - C7 U
►1� 1O_M
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rafael A. Paz, City Attorney
DATE: June 28, 2023
SUBJECT.,A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, DIRECTING THE ADMINISTRATION TO
IDENTIFY ALL CITY COMMISSION -SPONSORED GRANTS WHICH
CONTEMPLATE RECURRING FUNDING TO THE GRANTEES AS A
SEPARATE LINE ITEM IN THE PROPOSED OPERATING BUDGET
AND/OR BUDGET PRESENTATIONS MADE TO THE CITY COMMISSION;
AND FURTHER, REQUIRING THE ADMINISTRATION TO REVIEW AND
MAKE RECOMMENDATIONS TO THE CITY COMMISSION ON
RECURRING GRANTS EVERY THREE (3) YEARS, TO ALLOW FOR
PERIODIC REVIEW AND APPROVAL OF ALL COMMISSION -
SPONSORED INITIATIVES OR GRANT PROGRAMS WHICH INVOLVE
RECURRING FUNDING, AND THEREBY ENSURE THAT RECURRING
GRANTS ALIGN WITH THE CITY COMMISSION'S EVOLVING BUDGET
PRIORITIES.
f
Pursuant to the request of Commissioner David Richardson, the above -referenced Resolution
is submitted for consideration by the Mayor and City Commission at the June 28, 2023
Commission meeting.
SUPPORTING SURVEY DATA
WA
FINANCIAL INFORMATION
WA
IrlillrTid!
:
n= I. a
i. ,,
u
_ �t �u
: n • �I�I•k
n
a
•a
Legislative Trarldna
Office of the City Attorney
Page 1140 of 1608
226 of 1677
Sponsor
Commissioner DaNd Richardson
ATTACHMENTS:
Description
❑ Resolution
Page 841 of 18M
227 of 1677
RESOLUTION NO. 2024-33340
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING AND RESTATING
RESOLUTION NO. 2019-30954, WHICH RE -ADOPTED AND AMENDED
THE CITY OF MIAMI BEACH EXISTING FINANCIAL POLICIES SET
FORTH IN RESOLUTION NO. 2006-26341 RELATING TO
STABILIZATION FUNDS; FUND BALANCE; CONTINGENCY
PLANNING AND CASH RESERVES; USE OF NON -RECURRING
REVENUES; CAPITAL ASSET ACQUISITION, MAINTENANCE,
REPLACEMENT AND RETIREMENT; AND GUIDING THE DESIGN OF
PROGRAM AND SERVICES, TO INCORPORATE REVISIONS TO THE
STABILIZATION FUNDS AND FUND BALANCEICONTINGENCY
PLANNING AND CASH RESERVES POLICY (GENERAL FUND
RESERVE POLICY), AS SET FORTH IN THE ATTACHED EXHIBIT A,
WHICH SHALL REPLACE AND SUPERSEDE THE GENERAL FUND
RESERVE POLICY SET FORTH IN RESOLUTION NO. 2019-30954, TO
REQUIRE A 6/7' SUPERMAJORITY VOTE OF THE CITY COMMISSION
IN ORDER TO APPROPRIATE ANY FUNDS FROM THE GENERAL
FUND RESERVES THAT WOULD REDUCE THE GENERAL FUND
RESERVE BELOW THE 17% EMERGENCY RESERVE OF THE
GENERAL FUND OPERATING BUDGET OF THE ENSUING YEAR.
WHEREAS, on September 11, 2019, the City Commission adopted Resolution No.
2019- 30954, which last amended and formalized the City's financial policies relating to
Stabilization Funds; Fund Balance; Contingency Planning and Cash Reserves; Use of Non -
Recurring Revenues; Capital Asset Acquisition, Maintenance, Replacement and Retirement;
and Guiding the Design of Programs; and
WHEREAS, the Government Finance Officers Association (GFOA) recommends that
governments establish a formal policy on the level of unrestricted fund balance that should be
maintained in the General Fund for Generally Accepted Accounting Principles (GAAP) and
budgetary purposes; and
WHEREAS, the GFOA recommends that the adequacy of unrestricted fund balance in
the General Fund should take into account each government's own unique circumstances; for
example, governments that may be vulnerable to natural disasters, more dependent on a volatile
revenue source, or potentially subject to cuts in state aid and/or federal grants, may need to
maintain a higher level in the unrestricted fund balance; and
WHEREAS, the GFOA recommends, at a minimum, that general purpose governments,
regardless of size, maintain an unrestricted budgetary fund balance in their general fund of no
less than 2 months of the general fund budget; and
WHEREAS, in light of the City's-vulnerability to storm events and dependence on volatile
Resort Tax revenues, the City Commission, in Resolution No. 2019-30954, increased the
required reserve for emergencies from 11% to 17%; increased the goal for reserve for
contingencies from 6% to 8%; and effectively increased the total reserve target from 17% to
25%, or from 2 months to 3 months of the City's General Fund Operating Budget; and
228 of 1677
WHEREAS, the City Commission, in Resolution 2019-30664, adopted a Resort Tax
Reserve Policy that, inter afia, required a supermajority vote (5/r) of the City Commission in
order to expend funds in the Resort Tax Reserve Emergency Fund; and
WHEREAS, the City Commission wishes to further ensure the stability and integrity of
the General Fund Reserve by amending the City of Miami Beach Financial policies relating to
Stabilization Funds; Fund Balance; Contingency Planning and Cash Reserves; Use of Non -
Recurring Revenues; Capital Asset Acquisition, Maintenance, Replacement and Retirement;
and Guiding the Design of Programs, to incorporate revisions to the Stabilization Funds and
Fund Balance/Contingency Planning and Cash Reserves Policy (General Fund Reserve
Policy), as set forth in the attached Exhibit A, to similarly require a 6/7" supermajority vote of
the City Commission in order to expend funds in the General Fund Reserve Emergency Fund.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THECITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, the Mayor and City Commission
hereby amend and restate Resolution No. 2019-30954, which re -adopted and amended the
City of Miami Beach existing financial policies set forth in Resolution no. 2006-26341 relating to
stabilization funds; fund balance; contingency planning and cash reserves; use of non -recurring
revenues; capital asset acquisition, maintenance, replacement and retirement; and guiding the
design of program and services, to incorporate revisions to the Stabilization Funds and Fund
Balance/Contingency Planning and Cash Reserves Policy (General Fund Reserve Policy), as
set forth in the attached Exhibit A, which shall replace and supersede the general fund reserve
policy set forth in Resolution No. 2019-30954, to require a 6/71° supermajority vote of the City
Commission in order to appropriate any funds from the general fund reserves that would reduce
the general fund reserve below the 17% emergency reserve of the general fund operating
budget of the ensuing year.
cot_
yor Steven Meiner
NOV
Rafael E. Granado, City Clerk
(Sponsored by Commissioner Joseph Magazine)
APPROVED RS TO
FCR6: R I_; P'F'U�r,E
& FOR E�GUi ION
l0/' vZ4-
y tte "y °
229 of 1677
EXHIBITA
CITY OF MIAMI BEACH FINANCIAL POLICIES
RELATING TO
STABILIZATION FUNDS; FUND BALANCE; CONTINGENCY PLANNING AND
CASH RESERVES; USE OF NON -RECURRING REVENUES; CAPITAL ASSET
ACQUISITION, MAINTENANCE, REPLACEMENT AND RETIREMENT; AND
GUIDING THE DESIGN OF PROGRAMS AND SERVICES
Stabilization Funds R Fund Balance/Contingency Planning and Cash Reserves
1. The City of Miami Beach shall maintain the Emergency Reserve at seventeen percent
(17%) of the General Fund Operating Budget of the ensuing year (17% Emergency
Reserve) for use as defined in resolution 98- 22661.
2. The City of Miami Beach shall have a goal to also maintain a General Fund Reserve for
Contingencies equal to at least eight (8%) of the General Fund Operating Budget that, in
combination with the 17% Emergency Reserve, represents three (3) months of the
General Fund Operating Budget expenditures.
3. Said reserve shall be increased or decreased annually but shall be maintained at a
minimum of eight percent (8%) of the then existing General Fund Operating Budget.
4. Once the General Fund Reserve for Contingencies goal of eight percent (8%) is initially
achieved, if the amount falls below the eight percent (8%) level, a plan of action will be
required to increase the reserves over three (3) to seven (7) years to at least eight percent
(8% and a percentage of any additional undesignated fund balance shall be earmarked
toward attainment of the eight percent (8%) level.
5. The City of Miami Beach shall have a goal to develop and maintain appropriate levels of
reserves in the Enterprise Funds as in the General Fund.
6. The City of Miami Beach shall have a goal of maintaining a reserve of one hundred percent
(100%) of pending claims in the Risk Management Fund and shall strive to fund two-thirds
(2/3) of the estimated value of insurance claims incurred but not reported.
Use of Non -Recurring Revenues
The City of Miami Beach will use one-time, non -recurring revenue for capital expenditures or one
time expenditures and not to subsidize recurring personnel, operations and maintenance cost.
Capital Asset Acquisition. Maintenance. Replacement and Retirement
1. The City shall maintain a dedicated portion of operating millage for General Fund
Capital Renewal and Replacement as defined in Resolution 2005-25832.
230 of 1677
2- The City shall have a goal to fund for the following capital needs as a permanent part of
the budget in an amount not less than five percent (5%) of the annual fiscal operating
budget of the General Fund of the City:
• Capital Renewal and Replacement - to ensure adequate funding for the
renewal and replacement of the City's General Fund facilities to extend the
useful life or replace equipment whose useful life has expired.
• Capital Reserve Fund - to help ensure adequate funding related to previously
approved capital projects for expenditures due to bids that are over -budget, change
orders, or other unforeseen items for General Fund projects.
Pay -As -You -Go Capital Fund - to ensure adequate on -going reinvestment in capital
plant and equipment and avoid deferring capital needs until there is a major bond issue.
The City of Miami Beach Resolution 2018-30429, dated July 25, 2018, established a
dedicated millage commencing in FY 2019 to continue funding General Fund capital
projects while simultaneously allowing for growth over time with property values.
• Capital Investment Upkeep Fund - to help ensure adequate funding for
General Fund non -facility related upkeep.
• Information and Communications Technology Fund - to help ensure adequate
funding for the procurement of new or enhanced information and technology needs of
the City.
3. The City shall strive to achieve as a goal that annual General Fund revenues in excess of
expenditures shall be transferred to the Capital Reserve Fund.
4, The City shall have a goal to develop and maintain appropriate levels of capital reserves in
the Enterprise Funds as in the General Fund.
Guidino the Des an of Proorams and Services
1 The City of Miami Beach shall create a strategic plan that identifies multi -year strategic
priorities with corresponding result measures for each priority.
2. Annually, the City of Miami Beach shall use a strategic planning process to develop
initiatives that support the strategic plan priorities.
3. The budget process and format shall be performance -based and focused on Key Intended
-Outcomes and performance measures.
4. Any new initiatives not core to the City's core mission or Key Intended Outcomes identified
in the strategic plan that is greater than 0.5% of budget for the fund impacted per year, or
cumulatively, shall be first considered as part of the City's annual strategic planning process
to develop initiatives.
231 of 1677
Resolutions - C7 AN
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: City Attorney Ricardo J. Dopico
DATE. October 30, 2024
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING AND RESTATING RESOLUTION NO. 2019-
30954, WHICH RE -ADOPTED AND AMENDED THE CITY OF MIAMI BEACH
EXISTING FINANCIAL POLICIES SET FORTH IN RESOLUTION NO. 2006-26341
RELATING TO STABILIZATION FUNDS, FUND BALANCE; CONTINGENCY
PLANNING AND CASH RESERVES, USE OF NON -RECURRING REVENUES;
CAPITAL ASSET ACQUISITION, MAINTENANCE, REPLACEMENT AND
RETIREMENT, AND GUIDING THE DESIGN OF PROGRAM AND SERVICES, TO
INCORPORATE REVISIONS TO THE STABILIZATION FUNDS AND FUND
BALANCE/CONTINGENCY PLANNING AND CASH RESERVES POLICY
(GENERAL FUND RESERVE POLICY), AS SET FORTH IN THE ATTACHED
EXHIBIT A, WHICH SHALL REPLACE AND SUPERSEDE THE GENERAL FUND
RESERVE POLICY SET FORTH IN RESOLUTION NO. 2019-30954. TO REQUIRE
A 617TH SUPERMAJORITY VOTE OF THE CITY COMMISSION IN ORDER TO
APPROPRIATE ANY FUNDS FROM THE GENERAL FUND RESERVES THAT
WOULD REDUCE THE GENERAL FUND RESERVE BELOW THE 17%
EMERGENCY RESERVE OF THE GENERAL FUND OPERATING BUDGET OF
THE ENSUING YEAR.
RECOMMENDATION
ANALYSIS
The attached resolution is presented by the sponsor, Commissioner Joseph Magazine, for the
consideration of the Ma7sor and City Commission. {
FISCAL IMPACT STATEMENT
N, A
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on.
See BIE at: httpsr)www.miamibeachfl.govlc itV-hall/city-Berk/meeting-notices/
Pa%SJ7& 4tW7
FINANCIAL INFORMATION
CONCLUSION
Applicable Area
Citywide
Is this a "Residents Riaht to Know" item. Is this item related to a G.O. Bond
pursuant to City Code Section 2-17? Project?
No No
Was this Agenda Item initially requested by a lobbyist which as defined in Code Sec 2-481
Includes a principal engaged in lobbvina7 No
If so, specify the name of lobbyist(s) and pnncipahs)-
Department
City Attorney
Sponsor(s)
Commissioner Joseph Magazine
Co-sponsor(sl
Condensed Title
Req 6i7th Superma)ority Vote to Appropriate General Fund Emergency Reserve. (Magazine)
CA
Pa%J o� Jg097
RESOLUTION NO. 2016-29500
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND CITYWIDE PORJECTS COMMITTEE ESTABLISHING
A REQUIREMENT THAT NO LESS THAN TWENTY PERCENT (20%) OF
ALL ONE-TIME UNRESTRICTED CAPITAL PAYMENTS TO THE CITY OF
$500,000.00 OR MORE, INCLUDING, BUT NOT LIMITED TO, PAYMENTS
RECEIVED THROUGH LEASE RE -NEGOTIATIONS, MONEY
JUDGEMENTS FROM LAWSUITS, AUDIT FINDINGS, OR ANY OTHER
LUMP SUM PAYMENTS SHALL BE DEPOSITED TO A TRUST FUND FOR
CAPITAL OR ACQUISITION COSTS ASSOCIATED WITH MASS
TRANSIT, EXCLUDING REASONABLE COSTS AND ANY CAPITAL
REPLACEMENT COSTS ASSOCIATED WITH THE TRANSACTION THAT
RESULTED IN THE RECEIPT OF THE ONE-TIME CASH PAYMENT.
WHEREAS, Transportation Trust Funds are established by governmental entities in
order to facilitate the creation, operation, and maintenance, including capital and operating
costs, of mass transit and other transportation facilities within an area, including fixed mass
transit routes, local circulator/trolley routes, waterborne mass transit, and public parking garages
for transit enhancement purposes; and
WHEREAS, Transportation Trust Fund monies can be expended as a local share of the
cost of an eligible project undertaken or developed by other governmental entities or through
public -private partnerships; and
WHEREAS, funding for transportation projects in the City, both in terms of capital and
operating budgets, is currently provided from various sources; and
WHEREAS, for Fiscal Year 2015116, the existing funding sources for transportation
projects are projected to generate approximately $13.2 Million in revenues towards the
Transportation Department's budget; and
WHEREAS, the existing funding sources alone are not sufficient to fund future
transportation projects identified in the City's Transportation Master Plan Project Bank adopted
by the City Commission on April 13, 2016; and
WHEREAS, pursuant to Resolution No. 2006-26341, the City will use one-time, non-
recurring revenue for capital expenditures or one-time expenditures and not to subsidize
recurring personnel, operations, and maintenance cost; and
WHEREAS, creating new funding sources for transportation would reduce the need to
use non -transportation -related funding sources such as Parking Fees (Year End Surplus) and,
as a result, make those monies available to address the need for additional parking garages
throughout the City; and
WHEREAS, given the needs of the Parking Department for parking garages, especially
at intercept locations, it is not recommended that Fees in Lieu of Parking (i.e. similar to funds
234 of 1677
collected through parking ratio reductions) be committed to the Transportation Trust Fund, but
rather that the use of these funds be reviewed each year as part of the review of competing
priorities during the annual budget development process; and
WHEREAS, creating a Transportation Fund was discussed at the May 11, 2016 Finance
and Citywide Projects Committee (FCWPC); and
WHEREAS, at the Finance and Citywide Projects Committee (FCWPC) meeting, the
Committee passed a motion recommending that the Administration create a City of Miami
Beach Transportation Trust Fund to provide funding for public transportation improvements in
the City; and
WHEREAS, this item was further discussed at the June 17, 2016 FCWPC meeting; and
WHEREAS, at the meeting, the FCWPC made a motion to require that 20% of one-time
capital contributions should be deposited to a Transportation Capital Trust Fund; and
WHEREAS, the FCWPC recognized that the funds generated on an annual basis. may
not be large, but over time, the funds would accumulate, with other existing sources that would
provide funding for projects over time; and
WHEREAS, in addition, the FCWPC directed that dedicating a percentage of the general
fund budget for Transportation operating and maintenance expenses should be considered as
part of the FY2016/17 budget development process; and
WHEREAS, at the July 13, 2016 City Commission meeting, the Mayor and City
Commission adopted the recommendation of the FCWPC.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the FCWPC establishing a requirement that
no less than twenty percent (20%) of all one-time unrestricted capital payments to the City of
$500,000.00 or more, including, but not limited to, payments received through lease re-
negotiations, money judgements from lawsuits, audit findings, or any other lump sum payments
shall be deposited to a trust fund for capital or acquisition costs associated with mass transit
excluding reasonable costs and any capital replacement costs associated with the transaction
that resulted in the receipt of the one-time cash payment.
PASSED and ADOPTED this 13° day of July, 2016.
ATTEST.
L .
Rafae E. Grand do, City Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EXEC TON
C' Anwnev Dote
235 of 1677
COMMISSION ITEM SUMMARY
Condanaed Title:
A RESOLUTION ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PORJECTS COMMITTEE
ESTABLISHING A REQUIREMENT THAT NO LESS THAN TWENTY PERCENT (2056) OF ALL ONE-TIME UNRESTRICTED CAPITAL
PAYMENTS TO THE CITY OF $500,000.00 OR MORE, INCLUDING, BUT NOT LIMITED TO, PAYMENTS RECEIVED THROUGH
LEASE RENEGOTIATIONS, MONEY JUDGEMENTS FROM LAWSUITS, AUDIT FINDINGS, OR ANY OTHER LUMP SUM
PAYMENTS SHALL BE DEPOSITED TO A TRUST FUND FOR CAPITAL OR ACQUISITION COSTS ASSOCIATED WITH MASS
TRANSIT EXCLUDING REASONABLE COSTS AND ANY CAPITAL REPLACEMENT COSTS ASSOCIATED WITH THE
TRANSACTION THAT RESULTED IN THERECIEPT OF THE ONE-TIME CASH PAYMENT
Key Interni Outcome Suppona0:
Ensure Comprehensive Mobility Addressing Al Modes Throughout The City
Supporting Data (Surveys, Environmental Scan, etc: WA
Nam Summary:
listed below
CiWs share of Me County Hag Cent Transit Surtax (People a Transportation Plan (PTP) proceeds.
• 1% Resod Tax Quality of Like
Parking Fees (Year End Surolus)
Transportation Concumency Milgation
Fees in Lieu of Perking
Advertising Revenues
Grants
For Fiscal Year 2015/16, the above funding sources are projected to generate approximamily $13.2 Million in revenues towaras the
Transportation Department's budget. These sources alone, however, are not sufficient tofund Mum transportation projects identified in
the City a Transportation Master Plan Protect Bank adopted Dy the City COMMRSIdn on Apt 13, 2016, including the Miami Beach Light
Rail Trensit/Modem Streetcar protect and potential futum extemens of the system and Me Intelligent Transportation System1imad
Parking System Project. AO konalN,aeatingnewfuMingwurmsfartranspodationwroukreducetheneedtoumnon-tmnsportation-
related funding sources such as Parking Fees (Year End Surplus) and, as a result, make those momesavailade M address the need for
additional parking garages throughout the City.
TM City of Mumi recently adopted an ordinance establishing a Transportation Trust Fund. Staff conducted an analysis oft" City of
Miami Ordinance which consists of
• Capital contributions of no lase Man 20 percent ofany unrestrictedone-time cash paymenlsto the dyoSS00.0010.00or
more, including, but not limited to, payments received through lease re -negotiations, money judgments from Un sums.
audit findings, or any other lump sum payment.
• Operation and maintenance contribution each fiscal year of no Nan than 0.25%
• Garage contributions
Finance and Camnele Proiecte Conn.Mee
This Rem "a discussed at the June 17, 2016 Finance and Citywide Projects Committee meeting (FCWPCf The FCWPG made a
motion to require that 20% of orro-time unrestricted capital contributions should W deposRW to a Transportation Capital Trust Fund It
was recognized that Me funds generated on an annual basis may not be large. but over We, the funds wound accumulate, win other
existing sources that would provide funding for projects over time. Further, the FCWPC directed that dedicating a percentage of the
general fund budget for Transportation operating and maintenance expenses should be consitlered as pad of Me FY2016117 budget
development process.
Given the needs of the Parking Department for parking garages, especially at intercept locations, it is not recommenlfa l that Fees in
Lieu of Perking (i.e. simaartp funds collected through parking ratio reductions) be mmmittedMMe Transportation Trust Furth, but mi
Mat the use of these funds be reviewed each year as pad of the review of competing stories during the annual budget development
process.
Financial Information:
Sau. of
Funds:
Amount
Account
OBPI I Total
Financial Impact Summary:
Cray Cerk's Office Legislative TMkiksi
Joao R. Gonzalez. P.E.
Sign -Oft:
rBnx Dlnctor
I Assistant CItAsnageir
I Citv innimat
JRG L
KGB
JL
mMIAMIBEACH 236of1677 AGENDA ATE 7-13-6
MIAMIBEACH
Cirr of Miami !•aah, 1700 Co , ,., Genre, Dd. Mlaml death, Fo,,da 33139, v..vv mamibeachll gav
COM SSION MEMORANDUM
TO Mayor Philip Levine and Members o the City Co fission
FRCM. Jimmy L. Morales, City Manager
DATE. July 13, 2016
SUBJECT. A RESOLUTION ACCEPTING TH E RECOMMENDATION OF THE FINANCE
AND CITYWIDE PORJECTS COM AITTEE ESTABLISHING A REQUIREMENT
THAT NO LESS THAN TWENTY PERCENT (20%) OF ALL ONE-TIME
UNRESTRICTED CAPITAL PAYMENTS TO THE CITY OF $500,000.00 OR
MORE, INCLUDING, BUT NOT LIMITED TO, PAYMENTS RECEIVED
THROUGH LEASE RE -NEGOTIATIONS, MONEY JUDGEMENTS FROM
LAWSUITS, AUDIT FINDINGS, OR ANY OTHER LUMP SUM PAYMENTS
SHALL BE DEPOSITED TO A TRUST FUND FOR CAPITAL OR ACQUISITION
COSTS ASSOCIATED WITH MASS TRANSIT EXCLUDING REASONABLE
COSTS AND ANY CAPITAL REPLACEMENT COSTS ASSOCIATED WITH THE
TRANSACTION THAT RESULTED IN THE RECIEPT OF THE ONE-TIME CASH
PAYMENT
BACKGROUND
Transportation Trust Funds are established by governmental entities in order to facilitate the
creation, operation, and maintenance, including capital and operating costs, of mass transit and
other transportation facilities within an area, including fixed mass transit routes, local
circulatorltrolley routes, waterborne mass transit, and public parking garages for transit
enhancement purposes. Further, it is intended that transportation trust fund monies can be
expended as a local share of the cost of an eligible project undertaken or developed by other
governmental entities or through public -private partnerships.
This item was briefly discussed at the May 11, 2016 Finance and Citywide Projects Committee
(FCWPC). At the meeting, the Committee passed a motion recommending that the Administration
create a City of Miami Beach Transportation Fund to provide funding for public transportation
improvements in the City.
Currently, funding for transportation projects in the City, both in terms of capital and operating
budgets, is provided from various sources. Pursuant to Resolution No. 2006-26341 (Attachment
A), the City will use one-time, non -recurring revenue for capital expenditures or one-time
expenditures and not to subsidize recurring personnel, operations, and maintenance cost.
Current funding sources for transportation projects and whether the funds are used for capital or
operating expenses are listed below:
• City's share of the County Half Cent Transit Surtax (People's Transportation Plan (PTP)
proceeds. Approximately $3.8 Million per year are provided on a recurring basis and are
used to fund a portion of the operations of trolley services in Miami Beach. In addition to the
North Beach Loop, once the Mid -Beach Loop, Collins Link, and South Beach Trolley are
237 of 1677
Commission Memorandum — Accepfing the RewV endation of the FCINPC establishing a Tmnsporfabm Trust Fund
July 13, 2016
Page 2 of 5
implemented, trolley services are anticipated to cost approximately $12.5 Million per year.
With the implementation of the Light Rail/Modem Streetcar project, it is anticipated that
approximately $3 Million per year will be used for the Streetcar project.
• 1% Resort Tax Quality of Life — Transportation (45% split): The 1% Resort Tax Quality of
Life Funds are split between South Beach/Mid Beach/North Beach Capital projects, the
Arts, and Transportation with 45% of the 1% going to Transportation (approximately $ 5.7
Million per year). These funds are recurring on an annual basis and used to fund the
balance of trolley operations; Professional Services (i.e., rotational contracts for traffic
engineering and transportation planning services on an as -needed basis at approximately
$300,00 per year); Traffic Management and Monitoring Services at approximately
$540,000 per year; other Contractual Services such as, Mystery Rider program, Special
Event shuttle service, trolley customer service, and the Transportation Department's
personnel operating budget (i.e., salariestwages, insurances, pension, office supplies, etc.).
It should be noted that once the Intelligent Transportation System/Smart Parking System is
fully implemented over the next couple of years, the operation and maintenance costs are
projected up to $2 Million per year.
• Parking Fees (Year End Surplus): Approximately $4 Million from excess parking funds
(revenues - expenditures) at the end of each year are used to augment the Transportation
Department's annual operating budget for the following year.
• Transportation Concurrency Mitigation: These are one-time/non-recurring revenues limited
to use for Transportation capital expenditures that increase Transportation capacity,
including the Miami Beach Light Rail/Modern Streetcar Environmental Analysis.
• Fees in Lieu of Parking: These are fees that can be used for increasing parking capacity
and, after 2010, for transportation improvements. Pursuant to the City Code, funds
generated by the fee -in -lieu program collected after March 20, 2010, can be used for
transportation improvements including:
• Transit capital funding for buses, bus shelters and transit infrastructure
• Traffic improvements for signals, signal timing and lane modifications
• Bicycle facilities
• Intelligent transportation systems
• Pedestrian improvements and facilities
• Other parking, transportation and mobility related capital projects as may be
specifically approved by the City Commission
• In addition, transit operational funding for newly introduced transportation
enhancements and program expansion (limited to operational, nonadministrative
costs only, i.e., drivers, fuel, maintenance and insurance) may be included if
expressly approved by the City Commission.
A portion of these funds are recurring annually but most are one-time payments used for
one-time expenditures only. Use of these funds for transportation competes with the need
for parking garages throughout the City.
• Advertising Revenues: Approximately $78,000 per year is generated by the sale of
advertising space on the interior and exterior of the City's Trolley vehicles. Additionally,
approximately $700,000 per year are generated by bus shelter advertising through a
revenue sharing contract with Clear Channel, Inc.
238 of 1677
Commission Memorandum — Accepting the Recommendation or the FCWPC establishing a Transportation Trust Fund
July 13, 2016
Page 3 of 5
• Grants: Capital and Operating funds received from federal and state discretionary grant
programs are used to off -set funding from various sources above, as appropriate.
For Fiscal Year 2015/16, the above funding sources are projected to generate approximately $13.2
Million in revenues towards the Transportation Department's budget. These sources alone,
however, are not sufficient to fund future transportation projects identified in the City's
Transportation Master Plan Project Bank adopted by the City Commission on April 13, 2016
(Attachment B), including the Miami Beach Light Rail Transit/Modern Streetcar project and
potential future extensions of the system and the Intelligent Transportation System/Smart Parking
System Project.
Additionally, creating new funding sources for transportation would reduce the need to use non -
transportation -related funding sources such as Parking Fees (Year End Surplus) and, as a result,
make those monies available to address the need for additional parking garages throughout the
CRY.
ANALYSIS
The City of Miami recently adopted an ordinance establishing a Transportation Trust Fund
(Attachment B). Staff conducted an analysis of the City of Miami Ordinance. Below is a synopsis
of the City of Miami Ordinance.
City of Miami Ordinance
(Ord. No. 13566, § 1, 10-22-15)
a.
Capital
No less than 20 percent of any unrestricted one-time cash payments
Contribution
to the city of $500,000.00 or more, including, but not limited to,
payments received through lease re -negotiations, money judgments
from lawsuits, audit findings, or any other lump sum payments, shall
be reserved in this trust fund for capital or acquisition costs associated
with mass transit. The one-time payments for purposes of this section
shall not include reasonable costs and any capital replacement costs
associated with the transaction that resulted in the receipt of the one-
time cash payment. Additionally, 20 percent of all unrestricted cash
contributions to the public benefits trust fund, as defined in chapter 62,
article XIV of the City Code and Section 3.14 of the Miami 21 Code,
the zoning ordinance of the city, as amended, shall be reserved for the
some trust fund purpose, with the exception of the cash contributions
to the public benefit trust fund for affordable/workforce housing as
defined in subsection 62642642(c) of the CRY Code and Section
3.14.4(a)(3) of the Miami 21 Code. If any unrestricted one-time cash
payment to the city of $500,000.00 or more is to be paid in
installments, the capital contribution shall be no less than 20 percent
of each installment as it is received by the city. These funds may be
carried over to the succeeding fiscal year.
239 of 1677
Commission Memorandum — Accepting the Recammendarion or the FCWPC establishing a Transportation Trust Fund
July 13, 2016
Page 4 or 5
b.
Operation &
Each fiscal year, no less than one -quarter of one percent (0.25%) of
Maintenance
the city's general fund operating budget shall be reserved in this
Contrib.
trust fund for operation and maintenance costs associated with mass
transit. These funds shall, to the extent possible to meet the one -
quarter of one percent (0.25%) minimum, primarily consist
of transportation related restricted funds eligible for said purpose not
already allocated for other expenditures. The administration shall look
to earmarked transportation funding, inclusive of Local Option Gas Tax
("LOGT') funding. These funds may be carried over to the succeeding
fiscal year.
c.
Garage
All funds collected through parking ratio reductions pursuant to Article
Contribution
4, Table 4 of the Miami 21 Code, as amended, shall be reserved in
this trust fund for capital or acquisition costs associated with the
creation of new public parking garages operated by the Department of
off-street parking. These funds may be carded over to the succeeding
fiscal year.
The City of Miami Ordinance also provides that "Nothing in this section shall be construed as
limiting the ability to reserve funds in excess of the abovementioned minimums. Expenditures from
this trust fund shall require a 4/5ths vote of the entire membership of the City Commission upon a
written recommendation from the City Manager. This article shall not be construed to take
funds from any of the established parking trust funds in this article."
Finance and Citywide Pro acts Committee
This item was discussed at the June 17, 2016 Finance and Citywide Projects Committee meeting
(FCWPC). The FCWPC made a motion to require that 20% of one-time capital contributions should
be deposited to a Transportation Capital Trust Fund. It was recognized that the funds generated on
an annual basis may not be large, but over time, the funds would accumulate, with other existing
sources that would provide funding for projects over time.
Further, the FCWPC directed that dedicating a percentage of the general fund budget for
Transportation operating and maintenance expenses should be considered as part of the
FY2016/17 budget development process.
Given the needs of the Parking Department for parking garages, especially at intercept locations, it
is not recommended that Fees in Lieu of Parking (i.e. similar to funds collected through parking
ratio reductions) be committed to the Transportation Trust Fund, but rather that the use of these
funds be reviewed each year as part of the review of competing priorities during the annual budget
development process.
CONCLUSION
The Administration recommends approval of the resolution accepting the recommendation of the
Finance and Citywide Projects Committee establishing a requirement that no less than twenty
percent (20%) of all one-time unrestricted capital payments to the City of $500,000.00 or more,
including, but no limited to, payments received through lease re -negotiations , money judgements
from lawsuits, audit finding, or any other lump sum payments shall be deposited to a trust fund for
capital or acquisition costs associated with mass transit excluding reasonable costs and any capital
240 of 1677
Commission Memorandum — Amephng the Recommendation of the FCWPC establishing a Transportation Trust Fund
July 13, 2016
Page 5 of 5
replacement costs associated with the transaction that resulted in the receipt of the one-time cash
payment.
Attachments:
A: City of Miami Ordinance
B: City of Miami Beach Resolution No, 2006-26341
C: Transportation Master Plan Project Bank
JLM/K#B/CGR/JRG
T AGEN"""0l$~TnanspatahofUoo i MMg lne n,co,nmendallon of Me FCWPC aslbdlisning a r"ueemle enl Nat no ss Nan twenty peroent of all one -
one ebi 4lime unnecle l raptal Mm" "I W deposnM t0 a Moat tuna jooa
241 of 1677
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ESTABLISHING A POLICY THAT THE WAIVER OF
SPECIAL EVENT FEES, INCLUDING BUT NOT LIMITED TO SPECIAL EVENT
APPLICATION FEES, PERMIT FEES, VEHICLE BEACH ACCESS PASSES,
SQUARE FOOTAGE FEES, AND PARK USER FEES, AS WELL AS THE
SUBSIDIZING OF ANY CITY SERVICES FEES, INCLUDING BUT NOT LIMITED
TO POLICE, FIRE, AND SANITATION, SHALL BE LIMITED TO THE FIRST
THREE YEARS OF AN EVENT, WITH AN EXCEPTION FOR EVENTS HELD
DURING THE MONTHS OF JULY, AUGUST, AND SEPTEMBER TO THE
EXTENT NECESSARY BASED ON FINANCIAL HARDSHIP; AND FURTHER,
DIRECTING THE CITY MANAGER TO ESTABLISH A REVIEW PROCESS FOR
FEE WAIVER APPLICATIONS TO ENSURE COMPLIANCE WITH THIS
POLICY.
WHEREAS, the City of Miami Beach recognizes the importance of special events in
promoting tourism, cultural activities, and community engagement; and
WHEREAS, the City of Miami Beach has historically provided waivers and subsidies for
special event fees to support the successful execution of these events; and
WHEREAS, the City Commission seeks to establish a policy to ensure the equitable
distribution of resources and to encourage the sustainability of special events within the City; and
WHEREAS, the City Commission finds that limiting the waiver of special event fees and
the subsidizing of City services fees to the first three years of an event will promote fiscal
responsibility and encourage event organizers to plan for long-term sustainability; and
WHEREAS, the City Commission recognizes the unique challenges faced by events held
during the summer months of July, August, and September, and therefore provides an exception
for these months to the extent necessary based on financial hardship; and
WHEREAS, for existing events, the three-year period will commence with the first event
following the adoption of this resolution, subject to any contractual commitments extending past
such three-year period; and
WHEREAS, the City Manager or their designee shall establish a review process for fee
waiver applications to ensure compliance with this policy; and
WHEREAS, the review process shall include an assessment of the financial hardship
claimed by the event organizers for events held during the months of July, August, and
September; and
WHEREAS, the City Manager or their designee shall provide a report to the City
Commission annually, detailing the fee waivers granted and the financial impact on the City
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby establish
a policy that the waiver of special event fees, including but not limited to special event application
fees, permit fees, vehicle beach access passes, square footage fees, and park user fees, as well
242 of 1677
as the subsidizing of any City services fees, including but not limited to police, fire, and sanitation,
shall be limited to the first three years of an event, with an exception for events held during the
months of July, August, and September to the extent necessary based on financial hardship; and
further, direct the City Manager to establish a review process forfee waiver applications to ensure
compliance with this policy.
PASSED and ADOPTED this _day of 2025.
ATTEST:
Steven Meiner, Mayor
Rafael E. Granado, City Clerk
(Sponsored by Commissioner Tanya K. Bhatt)
APPROVED AS TO
FORM &LANGUAGE
& FOR EXECLTION
1S 2O2S
eY Date
243 of 1677
Committee Referrals - C4 O
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: October 30, 2024
TITLE: REFERRAL TO THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE TO
DISCUSS A CITY OF MIAMI BEACH COMPREHENSIVE FINANCIAL POLICY.
The Administration recommends approving a referral to the Finance & Economic Resiliency
Committee to discuss the creation of a Comprehensive Financial Policy.
BACKGROUND/HISTORY
Over the years the Commission has passed various resolutions providing direction on various
financial policies on topics including but not limited to capital reserves, fund balances, use of non-
recurring revenues, use of annual surpluses, and funding for capital projects. Some financial
policies have been included in annual budget resolutions such as use of General Fund interest
earning towards capital projects. The Administration believes it is in the best interest of the City
to consolidate all prior Commission direction on financial policies into one comprehensive financial
policy.
ANALYSIS
FISCAL IMPACT STATEMENT
N/A
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https:flwww.miamibeachfl.gov/city-hall/city-clerklmeetingl-notices/
FINANCIAL INFORMATION
N/A
CONCLUSION
Applicable Area
244 of 1677
Citywide
Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond
Pursuant to City Code Section 2-17? Project?
No No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying?
If so, specify the name of lobbyist(s) and principal(s):
Department
Finance
Sponsor(s)
Commissioner Joseph Magazine
Co-sponsors)
Condensed Title
Ref: FERC - City of Miami Beach Comprehensive Financial Policy. (Magazine) FIN
245 of 1677
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH ACCEPTING THE RECOMMENDATION OF THE FINANCE AND
ECONOMIC RESILIENCY COMMITTEE (FERC) TO APPROVE AND
FORMALLY ADOPT THE CITY OF MIAMI BEACH COMPREHENSIVE
FINANCIAL POLICIES.
WHEREAS, on October 30, 2024, the Mayor and City Commission referred Item C4O to
the Finance and Economic Resiliency Committee (FERC) to discuss the creation of a
Comprehensive Financial Policy for the City of Miami Beach; and
WHEREAS, the Government Finance Officers Association (GFOA) strongly advocates for
the adoption of formalized financial policies, recognizing their critical role in supporting strategic
and sustainable financial management; and
WHEREAS, over time, the City Commission has adopted numerous resolutions to
establish guidance on critical financial policies, addressing areas such as capital reserves, fund
balance management, allocation of nonrecurring revenues, utilization of annual surpluses, and
funding strategies for capital projects; and
WHEREAS, the City Administration recommends consolidating all previously issued
Commission directives on financial policies into a single, comprehensive framework to streamline
policy implementation, enhance transparency, and ensure alignment with the City's long-term
financial goals; and
WHEREAS, on October 30, 2024. the Mayor and City Commission ("City Commission")
approved a referral to FERC to discuss the creation of Comprehensive Financial Policies for the
City of Miami Beach ("Comprehensive Financial Policies'); and
WHEREAS, on June 4, 2025, the FERC recommended that the item be returned to the
Commission to consider a request for a referral of the Comprehensive Financial Policies to the
Budget Advisory Committee along with an analysis of total compensation as a percentage of the
General Fund budget; and
WHEREAS, on September 9, 2025 and November 12, 2025, the City of Miami Beach
Comprehensive Financial Policies were presented to the BAC; and
WHEREAS, the analysis of total compensation as a percentage of the General Fund
budget was presented and discussed and the BAC did not make any recommendations in relation
thereto; and
WHEREAS, the BAC also reviewed and discussed the Comprehensive Financial Policies
at length and provided recommendations to FERC; and
WHEREAS, on February 20, 2026, staff presented the revised Comprehensive Financial
Policies with recommendations from the BAC to the FERC; and
WHEREAS, all BAC recommendations were accepted by FERC provided, the FERC
recommended that the start date of the "Waiver of Special Event Fees" policy specify the date
246 of 1677
June 25, 2025 as the commencement date for such policy as that was the date the Mayor and
City Commission adopted this policy pursuant to Resolution No. 2025-33757; and
WHEREAS, the Mayor and City Commission desire to formally adopt the Miami Beach
Comprehensive Financial Policies attached to this Resolution as Exhibit "A'.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission approve the recommendation of the Finance and Economic Resiliency Committee
to approve and formally adopt the Miami Beach Comprehensive Financial Policies,
PASSED AND ADOPTED this _ day of March 2026
ATTEST:
Rafael E. Granado, City Clerk
Steven Meiner,
APPROVED AS TO
FORM &LANGUAGE
& FOR EXECUI TION
1 g13/zo7L
oan
247 of 1677
EXHIBIT A
CITY OF MIAMI BEACH COMPREHENSIVE FINANCIAL POLICIES
The City of Miami Beach acknowledges that a primary factor to the long-term sound financial
management of its finances is the adoption of formal financial policies that govern the financial
management and creditworthiness of the City. This view is supported by bond rating agencies,
residents, and the Government Finance Officers Association (GFOA). The following
Comprehensive Financial Policies are primarily intended to safeguard the financial resources of the
City.
General Fund Balance/Contingency Planning
1. The City of Miami Beach shall maintain the General Fund Emergency Reserve at two
(2) months of total expenditures of the General Fund Operating Budget of the ensuing
fiscal year for use as defined below.
• Prior to any expenditures from this reserve, the Mayor and City Commission
must declare an emergency affecting life, health, property, or public safety and
authorize said expenditures by a six -sevenths (6/7) vote. After any expenditure
from said reserve, all reimbursements from State and Federal Agencies for
emergency relief are to be redeposited into such reserve. Any amounts
disbursed which are not recovered from governmental agencies shall be
appropriated from Unassigned Fund Balances of the General Fund to restore
the Emergency Reserve to its then established level.
• If there is an insufficient Unassigned Fund Balance to restore said reserve to its
then established level, the Administration is directed to restore the reserve to
its appropriate level by transferring available General Fund revenues in excess
of expenditures at fiscal year-end and/or with a partial replenishment to be
spread over no more than four (4) budget years.
2. The City of Miami Beach shall have a goal to also maintain a General Fund
Contingency Reserve equal to one (1) month of the General Fund Operating Budget
that, in combination with the Emergency Reserve, represents three (3) months or
twenty-five percent (25%) of the General Fund Operating Budget expenditures for the
ensuing fiscal year.
Said Contingency Reserve shall be increased or decreased annually, based on
the ensuing fiscal year's adopted budget. This does not preclude the
Commission from utilizing the Contingency Reserve during the fiscal year. In
the event that this reserve falls below the goal, the City shall restore the
Contingency Reserve through various methods including using fiscal year-end
General Fund surplus, a prior fiscal year surplus over the required goal
identified through annual external audit, or through the ensuing fiscal year's
surplus over the Current Service Level (CSL) budget.
If there is an insufficient Unassigned Fund Balance to restore said reserveto its
then established level, the Administration is directed to restore the reserve to
its appropriate level by transferring available General Fund revenues in excess
248 of 1677
of expenditures at fiscal year-end and/or with a partial replenishment to be
spread over no more than four (4) budget years.
Resort Tax Fund Balance/Contingency Plannina
1. The City of Miami Beach shall maintain a minimum Resort Tax Emergency Reserve in
the 2% Resort Tax Fund of two (2) months of total expenditures of the ensuing fiscal
year for use as defined below.
Prior to any expenditures from this reserve, the Mayor and City Commission
must declare an emergency affecting life, health, property, public safety, or a
significant economic impact on resort tax collections, and authorize said
expenditures by a five -sevenths (5/7) vote. The Administration is directed to
restore the reserve to its appropriate level by transferring available 2% Resort
Tax revenues in excess of expenditures at fiscal year-end and/or with a partial
replenishment to be spread over no more than within four (4) budget years.
Said Emergency Reserve shall be increased or decreased annually, based on the
ensuing fiscal years adopted budget. but shall be maintained at a minimum
amount of two (2) months of total revenue of the 2% Resort Tax of the then
existing Resort Tax Fund Budget.
2. The City of Miami Beach shall have a goal to also maintain a Resort Tax Contingency
Reserve equal to four (4) months of the Resort Tax Operating Budget that, in combination
with the Resort Tax Emergency Reserve, represents six (6) months or fifty percent (50%)
of the 2% Resort Tax Operating Budget expenditures for the ensuing fiscal year.
Said Resort Tax Contingency Reserve shall be increased or decreased, based
on the ensuing fiscal year's adopted budget, annually:
Other Fund Balance/Continnencv Planning
1. The City of Miami Beach shall have a goal to develop and maintain appropriate levels of
operating and capital reserves in the applicable Enterprise, Internal Services, and Special
Revenues Funds.
2. The City of Miami Beach shall have a goal of maintaining a reserve of one hundred percent
(100%) of pending claims in the Risk Management Fund and shall strive to fund two-thirds
(2/3) of the estimated value of insurance claims incurred but not reported.
sa of Non -Recurring Revenues - (All F ndsl
The City of Miami Beach will use one-time, non -recurring revenue for capital expenditures and/or
one-time expenditures and not subsidize recurring personnel, operations, and maintenance costs.
Use of Lump Sum Payments
The City of Miami Beach will allocate twenty percent (20%) of any one-time, unrestricted cash
payment of $500,000 or more received by the City —such as proceeds from lease renegotiations,
legal settlements, audit findings, or other lump sum payments. These funds will be deposited into a
designated trust fund to be used for capital expenses or other one-time costs related to
249 of 1677
transportation, excluding reasonable transaction -related expenses and any other outstanding
obligations directly associated with the original payment.
Citnkal Asset Acautsitlon and Renewal and Replacement (R&R1
1. Capital Budget Policy - The City staff will prepare a five-year capital expenditure and
funding plan (the "Capital Improvement Plan") for all relevant funds each fiscal year.
The first year of the Capital Improvement Plan will constitute the budget for the respective
fiscal year. Annually and as part of the Capital Improvement Plan development process,
the City staff will prioritize the budget expenditures recognizing the following criteria in the
following order:
• Regulatory compliance
• Safety
• Criticality of asset renewal and replacement
• Efficiencies in joint project construction with other public agencies
• Availability of funding sources including grants, affordability, and other factors
prescribed from time to time
• Impact to the City's resiliency efforts
• Expansion/New Facilities
2. Capital Renewal and Replacement Fund - The City shall maintain a dedicated portion of
the operating millage for General Fund Capital Renewal and Replacement, which shall be
used for capital projects that extend the useful life of the City's General Fund capital assets
and shall be limited to projects defined as follows:
• Projects that extend the useful life of an asset by at least 5 years with a threshold
value of at least $25,000; for example the replacement of a major component of
the asset such as roofs, HVAC systems, electrical systems, fire alarm systems,
sprinkler systems that due to significant deterioration would constrain the
remaining useful life of the capital asset or projects that significantly reduce future
maintenance cost over the remaining life of the asset in an amount that is greater
than the renewal and replacement costs of the project.
• The Mayor and Commission may authorize additional uses of the funds for
unforeseen or unanticipated events affecting life, health, property, or public safety
subject to a five -sevenths (5/7) vote.
• Appropriation of project specific expenditures from the Capital Renewal and
Replacement Fund shall be included in the City Managers annual budget based
on an annual recommendation of the City Manager or his/her designee regarding
range of asset life extended: identification of fully depreciated or deteriorated
components of City assets; inventory requirements for large capital components
of assets; or reduction in maintenance costs over the remaining life of the asset.
250 of 1677
• Appropriation of project specific expenditures shall be adopted by the Mayor and
City Commission.
• Interest earnings that accrue in the Capital Renewal and Replacement Fund shall
be included in the appropriation for the Fund in the following fiscal year.
• Changes among project specific appropriations may be authorized by the City
Manager to the extent that no new projects be added, and the total annual
allocation is not exceeded.
• During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Capital Renewal and Replacement Fund shall
require prior approval and authorization by a majority of the City Commission.
Excess project specific appropriations not required will be available for
re -appropriation the following year.
• Project specific appropriations that are not expended in a given fiscal year shall
remain in the Capital Renewal and Replacement Fund for the fife of the project.
3. Pay -As -You -Go Capital Fund - The City shall maintain a dedicated portion of the
operating millage for Pay -As -You -Go Capital, which will provide dedicated funding for
General Fund capital projects and allow for growth over time with property values.
• Appropriation of project specific expenditures shall be adopted by the Mayor and
City Commission.
• Interest earnings that accrue in the Pay -As -You -Go Capital Fund shall be included
in the appropriation for the Fund in the following fiscal year.
• Changes among project specific appropriations may be authorized by the City
Manager to the extent that no new projects be added, and the total annual
allocation is not exceeded.
• During a fiscal year, changes to the total allocation and changes to the list of
projects to be funded from the Pay -As -You -Go Capital Fund shall require prior
approval and authorization by a majority of the City Commission. Excess project
specific appropriations not required will be available for re -appropriation the
following year.
• Project specific appropriations that are not expended in a given fiscal year shall
remain in the Pay -As -You -Go Capital Fund for the life of the project.
4. 5% Annual Funding for Capital Needs - The City shall have a goal to fund for the following
capital needs as a permanent part of the budget, in an amount not less than five percent
(5%) of the annual fiscal operating budget of the General Fund of the City
• Capital Renewal and Replacement Fund - to ensure adequate funding for the
renewal and replacement of the City's General Fund facilities to extend the useful life
or replace equipment whose useful life has expired.
• Capital Reserve Fund - to help ensure adequate funding related to previously
251 of 1677
approved capital projects for expenditures due to bids that are over -budget, change
orders, or other unforeseen items for General Fund projects.
• Pay -As -You -Go Capital Fund - to ensure adequate on -going reinvestment in capital
plant and equipment and avoid deferring capital needs until there is a major bond issue.
• Streets & Sidewalks Renewal & Replacement Fund - to help ensure adequate
funding for the renewal and replacement of the City's streets and sidewalks.
• Information and Communications Technology Fund - to help ensure adequate
funding for the procurement of new or enhanced information and technology needs of
the City.
5. Allocation of General Fund Fiscal Year End Surplus at Fiscal Year-end — After fully
funding the General Fund reserve goals, the City shall transfer to the Capital Reserve Fund
50% of the annual General Fund revenues in excess of expenditures with the remaining
50% to be transferred to either the Capital Renewal and Replacement Fund, Streets &
Sidewalks Renewal and Replacement Fund, or Pay -As -You -Go Capital Fund.
6. Allocation of Preliminary General Fund Surplus durina Budget Process- As part of
the annual budget development process, the preliminary budget presented by the City
Manager shall include a recommended allocation of projected General Fund surplus funds
according to the following priorities:
• Capital Investment Priority: Fifty percent (50%) of any projected surplus above the
Current Service Level (CSL) budget shall be transferred to support capital projects,
until the City achieves its goal of dedicating at least 5% of the annual General Fund
budget to capital needs.
• Strengthening Reserves: Twenty-five percent (25%) of any projected surplus above
the CSL budget shall be allocated to augment the ensuing year's General Fund
reserves, until such time as the City establishes and meets an appropriate reserve
contribution benchmark aligned with the growth of the General Fund budget.
7. General Fund Interest Income for Capital Projects — The City shall allocate twenty-five
percent (25%) of the total projected interest income in the General Fund, starting in FY
2025, for one-time capital expenditures. The City shall increase this percentage by five (5)
additional percent each subsequent fiscal year.
8. Review of Impact Fees — The City shall periodically review all impact fees to ensure that
the fees are equitable, reflect current economic conditions, and adequately fund the
necessary infrastructure improvements, as applicable. This review process will include an
analysis of the impact fees' effectiveness in achieving the City's goals, consideration of any
changes in development pattems, and adjustments based on inflation and other relevant
factors
9. Waiver of Special Event Fees - The City shall have a policy that the waiver of special
event fees, including but not limited to special event application fees, permit fees, vehicle
beach access passes, square footage fees, and park user fees, as well as the subsidizing
of any City services fees, including but not limited to police, fire, and sanitation, shall be
limited to the first three years of an event (starting from June 25, 2025), with an exception
252 of 1677
for events held during the months of July, August, and September to the extent necessary
based on financial hardship: and further, direct the City Manager to establish a review
process for fee waiver applications to ensure compliance with this policy.
10. Decrease in GO Bond Millage
• Any fiscal year in which the GO Bond Debt Service Millage will decrease, the budget
will reflect a transfer of the millage decrease to the Capital Renewal and
Replacement Fund (CRR) until such time as there is sufficient funding for all
programmed CRR projects in that fiscal year.
11. City Center RDA Closure — Use of Surplus for Capital Funding
• Upon closure of the City Center RDA, the resulting surplus will be set aside on a
recurring basis in the General Fund at the level of the year of City Center RDA
closure in the following order of precedence.
1. Fully fund the annual requirements of the Streets & Sidewalk Renewal &
Replacement Fund
• This policy will permit the City to fully fund the resurfacing of all City
streets and the replacement of all City sidewalks when scheduled.
2. The balance of the allocation is to be transferred to the Capital Renewal &
Replacement Fund
Enterprise Fund Policies
The primary objectives of these following Enterprise Fund financial policies are:
• To maintain strong operations and maintenance programs and provide the
necessary funds to finance priority and ongoing capital projects in order to deliver
high -quality utility services.
• To have available funds and access to financial resources to be able to quickly
respond to unplanned Capital Improvement Plan projects, emergencies,
catastrophic, and Force Majeure Incidents and to allow for the continued ability to
provide utility services.
• To maintain strong financial conditions aimed at preserving and enhancing the
Enterprise Fund's credit ratings to minimize capital project financing costs and to
promote long -Fenn system sustainability.
• To maintain reasonable and justified levels of rates and fees over the long run in
accordance with good business practices.
1. Credit Rating Policy (Water. Sewer. and Stonnwater Funds) - The City shall strive to
maintain financial performance for the Water, Sewer, and Stormwater Funds consistent
with that of utilities with an uninsured bond rating of 'AV or better. A higher credit rating
can result in lower borrowing costs and lower rates over the long term for the benefit of the
253 of 1677
customers of the systems.
2. Operatina Reserve Policy - The City will establish and maintain cash -funded Operating
Reserves for the Enterprise Funds to provide adequate levels of working capital to i)
mitigate current and future risks regarding revenue shortfalls and unanticipated expenses;
and ii) ensure stable services and rates.
The City will maintain a minimum unencumbered and unrestricted Operating
Reserve balance equal to three (3) months, or twenty-five percent (25%) of the
current fiscal year budgeted operating expenses (the Operating Reserve Target).
If the Operating Reserve unrestricted balance at the end of the preceding fiscal
year is less than the Operating Reserve Target, the City will develop a plan to re-
establish the operating reserves over a period not to exceed three (3) fiscal years.
3. Renewal & Replacement Reserve Policy - The City will establish and maintain for the
Enterprise Funds an ongoing cash -funded Renewal & Replacement fund for renewals,
replacements, and Capital Improvements.
The City will maintain for the funds a minimum unappropriated and unencumbered
Renewal & Replacement Reserve equal to the prior years annual depreciation
expense plus ten percent If 0%) (the Renewal & Replacement Reserve Target).
• The Renewal & Replacement Reserve will be in addition to the funds held on
deposit for purposes of maintaining a minimum Operating Reserve. It is
contemplated that the monies on deposit that are included as a component of the
Renewal & Replacement Reserve may be expended on renewals, replacements,
and Capital Improvements to meet the overall financial objectives and funding
needs of the Enterprise Fund.
The balances established in this reserve are to:
• Mitigate risks regarding planned and unanticipated renewals, replacements,
and capital expenditures, or increases in materials, labor, or other costs from
ongoing or planned projects.
• Provide for changes in expenditure priorities resulting in the advancement or
addition of certain projects.
• Promote the availability of funds for renewals, replacements, and capital
reinvestment for the existing infrastructure, with the intent to limit outages and
inability to provide service from equipment or infrastructure failures or
because of Force Majeure incidents due to weather events and other
occurrences.
• Ensure reliable service and ameliorate the effects to monthly service rates
from unanticipated costs.
If the Renewal & Replacement Reserve balance at the end of the preceding fiscal
year is less than the Renewal & Replacement Reserve Target, the City will
develop a plan to re-establish the Renewal & Replacement Reserve in an amount
equal to the Renewal & Replacement Reserve Target over a period not to exceed
254 of 1677
three (3) fiscal years. Compliance with the re-establishment of the Renewal &
Replacement Reserve Target may not be achieved through the deferral of
maintenance and/or identified capital reinvestment.
4. Operating Budget Policy - The annual operating budget for each Enterprise Fund will:
• Be structurally balanced, with revenues sufficient to meet expenses (those that
are ongoing in nature).
Reflect rates set at levels intended to support the direct and indirect costs of the
systems, with the intent to provide the lowest reasonable rates over time, not
necessarily the lowest fees and user charges during the current or budget fiscal
year, and at a level necessary to ensure the adequate maintenance and
operations of the systems.
• Reflect these financial policies and include amounts necessary to maintain the
required operating and capital reserves.
5. Rate and Financial Plan Review Policy (Water, Sewer. and Stormwater Funds) - The
City staff will use a formal forecasting and expenditure monitoring process in the evaluation
of the financial positions of the Water, Sewer, and Stormwater Funds.
These processes are intended to i) minimize financing costs through proper
planning for Renewal & Replacement and Capital Improvement spending and
financing needs; ii) obtain formal endorsement by the City Commission for long-
term financial needs and sources of financing; and if) maintain or strengthen the
credit ratings of the Water, Sewer, and Stormwater Funds.
The City shall perform a formal rate study at least once every five years, and the
City shall adopt a five-year schedule of rates, fees, and charges based on the
results of the rate study.
As part of the annual financial planning process, the City staff will prepare multi-
year operating and capital budgets to ensure rates are sufficient to meet the needs
of the utilities.
The Water, Sewer, and Stormwater Funds will be run in a business -like manner.
Rates and fees will be set to ensure the full recovery of the Water, Sewer, and
Stormwater Funds operating and capital expenditures. This practice will ensure
that the Water, Sewer, and Stormwater Funds has reduced financial risk and will
meet Federal, State, and local regulations as well as service area demands.
t r. -li .• .Bar-MMITIMIMMUMM
t. Budgeting - Grants
• The Administration shall identify all City Commission sponsored grants which
contemplate recurring funding to the grantees as a separate line item in the
proposed Operating Budget and/or budget presentations made to the City
Commission as part of the annual budget process.
The Administration shall review and make recommendations to the City
255 of 1677
Commission on recurring grants every three (3) years, to allow for periodic review
and approval of all Commission -sponsored initiatives or grant programs which
involve recurring funding and thereby ensure that recurring grants align with the
City Commission's evolving budget priorities.
2. Budgeting — Quarterly review
The Administration shall review and report to the City Commission of adjustments
and amendments to the City of Miami Beach Annual Operating Budget for
purposes of conforming actual budget expenditures to the adopted budget and
shall occur at least once every fiscal quarter.
3. The City of Miami Beach shall create a strategic plan that identifies multi -year strategic
priorities with corresponding result measures for each priority.
4. Annually, or as needed, the City of Miami Beach shall use a strategic planning process to
develop initiatives that support the strategic plan priorities.
5. The budget process and format should be performance -based and focused on Key Intended
Outcomes and performance measures.
6- Any new initiatives that are not identified in the strategic plan that are greater than 0.5% of
budget for the fund impacted per year, or cumulatively, must be first considered as part of
the City's annual strategic planning or budget process to develop initiatives.
1. Ethics Requirements — City staff, the City Commission, consultants, and underwriters
shall be familiar with and adhere to the laws of the State of Florida, and the
requirements of Municipal Securities Rulemaking Board (MSRB), as applicable. All
debt financing participants shall always maintain the highest standards of professional
conduct. There shall be no conflict of interest between the City and any debt -financing
participant.
2. Debt Issuance
The City will utilize its various consultants to determine the amount, timing, and
structure of a debt issuance. These professional consultants may include but not
be limited to registered financial advisors, bond and disclosure counsel, rate
consultants, and general engineering consultants. All such consultants shall
provide the City with their relevant written professional opinions as to the projected
cost of proposed capital projects and maintenance, the expected revenue to be
generated by such projects, and the expected cost of financing such projects
along with legal opinions as to the disclosure, authorization, and tax exemption of
all such debt issuance.
Debt repayments should not extend beyond the useful life of the asset financed
or 30 years, whichever is less.
Short -Term Financing - The City may elect to issue short-term financing vehicles
such as a line of credit or commercial paper as a bridge for an anticipated funding
256 of 1677
gap. However, the City will not use short-term borrowing to finance operating
needs.
3. Refundinas and Defeasance
Bond refunding of outstanding debt may be pursued when a threshold of Net
Present Value (NPV) savings is greater than or equal to five percent (5%). NPV
savings shall be calculated using the aggregate amount of savings on a refunding
transaction taking into consideration the time value of money and net of all costs
of issuance. The City's financial advisor must confirm the calculation that the NPV
savings meets the threshold requirement as defined in this paragraph.
However, a determination that a bond refunding meets the minimum NPV savings
threshold will not necessarily result in the City refunding any bond series.
4. Disclosures
The CFO will coordinate for the City, through a third -party service, annual
disclosure filings, as well as other disclosures.
The City will not disseminate any financial information to any investor or investors
where such information is not readily available to all investors. However, general
financial information disseminated by the City via means such as the City's web
site is for general informational purposes only and is not intended by the City to
be relied upon by others for investment purposes.
Review
This policy is to be reviewed at least every five (5) year period starting from initial policy approval
date.
257 of 1677