LTC 167-2004 FY 04/05 Budget- Department Budget Efficiency/ Reduction Options and Service Enhancement Proposals CITY OF MIAMI BEACH
Office of the City Manager
Letter to Commission No. /(,'7- ?ooL/
/
To:
From:
Subject:
Mayor David Dermer and Date: July 7, 2004
Members of the City Commission
Jorge M. Gonzalez~
City Manager
FY 04~05 BUDGET - DEPARTMENT BUDGET EFFICIENCY/REDUCTION
OPTIONS AND SERVICE ENHANCEMENT PROPOSALS
The purpose of this LTC is to provide you with additional information to help you further prepare for
the upcoming budget discussions.
As you know, during the budget cycles of the past several years, I have asked each department to
identify Budget Efficiency/Reduction Options as well as Service Enhancement Proposals for General
Fund, Internal Service Fund and Enterprise Fund Departments. Attached is a compilation of this
year's effort. It should be noted that no final decisions have yet been made.
Again, this year's budget precess is challenging due to continued increases in pension costs, health
insurance, and merit and cost of living increases associated with existing labor agreements, the
impacts of the living wage ordinance, increased cost of fuel, and other consumables. In addition,
new operating costs associated with bringing major capital projects on line this year must be funded.
Based on the final tax roll released by the property appraiser on July t, the department adjustment
options may be used to address a $3 million gap in the General Fund associated with the increased
cost of current service levels. The adjustments may also be used to fund some of the more
important service enhancements proposed bythe Departments. In addition, some ofthe proposed
budget adjustment options reflect efficiency improvements to service delivery.
At the same time, I will be looking at the impact of other potential revenue sources such as
increases in the Resort Tax contribution to the General Fund, examining the administrative fees paid
to the General Fund by Enterprise Fund Departments, and the ability to pay retiree health insurance
through the pension systems as other alternatives to balance our FY 04/05 budget without the need
to adjust our millage rate or basic fees.
As the Commission requested in its March 10, 2004 Budget Workshop, the attached is provided for
your information as we proceed to balance the FY 04/05 Budget. If there is any direction or
guidance you wish to provide or if there is additional information you need, please feel free to
contact me. The Commission budget workshops are scheduled for Monday, July 12th at 2:00 p.m.,
Friday, July 16th at 10:00 a.m. and Tuesday, July 20th at 2:00 p.m.
JMG\KGB
Attachment
c: Executive Staff
Management and Budget Staff