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97-22526 RESO RESOLUTION NO. 97-22526 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, PROVIDING FOR THE SECOND AMENDMENT TO FISCAL YEAR 1996/97 BUDGETS WITHIN THE GENERAL FUND, TOTALING $2,541,491. WHEREAS, the Administration has performed a review of the City's General, Enterprise, and Internal Service Funds to determine if an amendment to departmental revenue and expense appropriations is necessary to maintain a balanced budget; and WHEREAS, a determination has been made that functions within the General Fund, totaling $2,541,491, require an amendment to their respective appropriations to cover unanticipated revenues and unbudgeted expenses in the current year; and WHEREAS, in order to reallocate certain revenue categories within the budget document, an amendment is necessary to increase the Ad Valorem Taxes, Licenses and Permits, Fines and Forfeits, and Miscellaneous categories by a total of $4,121,216; and WHEREAS, increased revenues within the categories of Ad Valorem Taxes for $571,873; Licenses and Permits for $518,800; Fines and Forfeits for $511,587;and Miscellaneous for $2,518,956, while simultaneously decreasing Intergovernmental by $273,000, and Interest for $1,165,126, and Rents and Leases for $141,599, the net impact of which is $2,541,491 within the General Fund will provide the source for increased expenditures, totaling $2,541,491 within the General Fund; and WHEREAS, in order to amend certain expenditure categories within the budget document, an amendment is necessary to increase allocations by $2,797,719, within certain General Fund departments, while simultaneously decreasing other allocations by $256,228 within the General Fund, the net impact of which is an overall increase to the General Fund budget of $2,541,491; and WHEREAS, increased appropriations are necessary within the Fire department, for $684,594 due to overtime, accumulated sick leave payout and an additional contribution to the Supplemental pension plan;for Police, $1,552,000 to cover overtime and an additional contribution to the Supplemental pension plan; Citywide, for $561,125 due to excess benefit plan and higher accumulated leave expenses, totaling $2,797,719, and decreased appropriations are necessary within the Public Works for $100,000; Code Compliance for $100,000; Building for $56,228 totaling $256,228; resulting in a net increase of $2,541,491; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the following departmental appropriations wi thin General are hereby amended to cover revenues and expenses as enumerated as follows: FY 1996/97 Amended Budget February 19, 1997 GENERAL FUND OPERATING REVENUES Ad Valorem Taxes Other Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits Interest Rents and Leases Miscellaneous Other Fund Balance Subtotal DEBT SERVICE Ad Valorem Taxes Subtotal Total Revenues APPROPRIATIONS Mayor & Commission City Manager City Attorney City Clerk Children's Affairs Media Relations Film/Print/Special Events Finance Management & Budget Internal Audit Human Resources Building Code Compliance Development Services Bass Museum of Art Recreation/Culture/Parks General Services Public Works Fire Police Citywide Accounts Subtotal DEBT SERVICE Debt Service Subtotal Total General Fund $44,102,496 16,666,550 6,663,800 9,059,433 1,851,080 849,663 5,983,901 838,660 3,847,999 8,907,696 441. 876 $ 99.213.154 $ 11. 028.582 $ 11. 028.582 $110.241. 736 $ 637,983 1,193,225 2,511,370 869,635 81,110 225,000 239,044 1,821,690 464,260 302,609 936,127 2,122,747 1,693,683 1,945,963 672,765 14,418,380 1,691,202 3,374,457 19,014,475 36,625,840 8.371.589 $ 99.213.154 $ 11. 028.582 $ 11.028.582 $110.241.736 Increase/ (Decrease) $ 571,873 518,800 (273,000) 511,587 (1,165,126) (141,599) 2,518,956 o $2.541. 491 $ $ $2.541. 491 $ 0 o o o o o o o o o o (56,228) (100,000) o o o o (100,000) 684,594 1,552,000 561.125 $ 2.541.491 $ 0 $ 0 $ 2.541.491 FY 1996/97 Amended Budget Sept 24, 1997 $ 44,674,369 16,666,550 7,182,600 8,786,433 1,851,080 1,361,250 4,818,775 697,061 6,366,955 8,907,696 441. 876 $101.754.645 o o $ 11. 028.582 $ 11. 028.582 $112.783.227 $ 637,983 1,193,225 2,511,370 869,635 81,110 225,000 239,044 1,821,690 464,260 302,609 936,127 2,066,519 1,593,683 1,945,963 672,765 14,418,380 1,691,202 3,274,457 19,699,069 38,177,840 8.932.714 $101.754.645 $ 11. 028.582 $ 11. 028.582 $112.783.227 FY 1996/97 Amended Budget February 19, 1997 Increase/ (Decrease) FY 1996/97 Amended Budget Sept 24, 1997 INTERNAL SERVICE FUNDS APPROPRIATIONS Central Services Communications Fleet Management Property Management Risk Management Total Internal Serv ENTERPRISE FUNDS APPROPRIATIONS Convention Center Parking Sanitation Sewer Storm Water Water Total Enterprise TOTAL ALL FUNDS $ 571,245 5,086,358 6,549,381 4,408,008 12.852.309 S29.467.301 $ $ 571,245 5,086,358 6,549,381 4,408,008 12.852.309 S29.467.301 S o o o o o o $ 15,611,376 12,860,317 3,856,222 25,430,247 3,451,404 14.590.835 S 75.800.401 $0 o o o o o o $ 15,611,376 12,860,317 3,856,222 25,430,247 3,451,404 14.590.83-.2. S75.800.401 S S215.509.438 S218. 050. 9~~ S 2.541.491 PASSED and ADOPTED this 24th day of September. 1997. ~(:<r .~~ City Clerk .~ APPROVED I-S TO FORM & LANGUAGE & FOR EXECUTION (t#JflJ)J.;J- 4/''Jd:J] ity Attorney ~... CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us COMMISSION MEMORANDUM NO. .k.J 2- q 1 TO: Mayor Seymour Gelber and Members of the City Commission DATE: September 24, 1997 FROM: Jose Garcia-Pedrosa City Manager SUBJECT: A RESOLUTION OF E MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FL IDA, PROVIDING FOR THE SECOND AMENDMENT TO FISCAL YEAR 1996/97 BUDGETS WITHIN THE GENERAL FUND. ADMINISTRATION RECOMMENDATION: Approve the Resolution. BACKGROUND: Resolution Number R-94-21258 directed the Administration to provide quarterly reports on the operating budget by comparing budget to actual, with explanations on those revenue and expense categories and classifications which our year-end projections reveal will be at a significant variance to budget. On February 19, 1997, the first amendment to Fiscal Year 1996/97 was adopted to cover prior-year encumbrances. An analysis of the third quarter which ended on June 30, 1997, was also provided via LTC #86-1997, dated August 18, 1997, which serves as the foundation for this budget amendment. As noted in the second and third quarter reports, the Administration is proposing this amendment to address unanticipated revenues and unbudgeted expenditures in the General Fund. Since Florida Statutes prohibit the overexpenditure of departmental budgets and funds without Commission approval, it is necessary to amend appropriations for those funds which our year-end projections indicate will exceed their budget authorization. ANALYSIS DISCUSSION: This second amendment will increase the amended budget of the General Operating Fund by $2,541,491 or 2.6% from $99,213,154 to $101,754,645. In keeping with sound financial planning and budgeting practices, we will, if necessary, present a third and final amendment during the month of December supported with a year-end reconciliation for the fourth quarter to recognize any unanticipated expenses and year-end closing transactions which impact the budget document. AGENDA ITEM e 'l C DATE~ Fiscal Year 1996/97 Second Budget Amendment Page 2 September 24, 1997 In order to recognize increased revenues to four categories, decreased revenues to three categories, increased expenditures to three departments, offset by decreased expenditures to three departments, a budget amendment must be adopted. REVENUES Our projections indicate that increased revenues within the General Fund will be received in the categories of Ad Valorem Taxes, Licenses and Permits, Fines and Forfeits, and Miscellaneous revenue. Therefore, increases to the revenues budgeted for the following categories are required: Ad Valorem Taxes by $571,873 due to increased collections; Licenses and Permits by $518,800 due to increases in building and trade permits and the newly established fire inspection permit; Fines and Forfeits by $511,587 due primarily to increased code enforcement and traffic fines; Miscellaneous by $2,518,956 due to the sale of the Publix property and proceeds from planning application and design review fees. Further, interest is expected to fall short of budget by $1,165,126 in part due to the delay in adopting a flexible investment policy. Intergovernmental will fall short of budget by $273,000 due to decreases in cigarette, motor fuel and sales taxes. Rents and Leases, whi ch includes income from City-owned properties, will fall short of budget by $141,599. EXPENDITURES Our projections indicate increases within Fire ($684,594) for overtirrle, accumulated sick leave payout and an additional contribution to the Supplemental pension plan; Police ($1,552,000) for overtime and an additional contribution to the Supplemental pension plan; and Citywide ($561,125) due to excess benefit plan and higher accumulated lea.ve expenses. These increases will be offset by decreased expenditures c.ue to savings from unfilled positions in departments such as Code Compliance ($100,000); Public Works ($100,000); and Building ($56,228). Additional operating savings within other departments will result in a contribution to fund balance of $394,238. No amendments to the Enterprise and Internal Service Funds are planned, as our projections indicate that these funds will remain within their annual allocations. SECOND AMENDMENT DISCUSSION: Having provided an analysis of the General Fund, we will now present the amendments required to increase appropriations to cover unanticipated revenues, unbudgeted expendi tures, and decreased expendi tures . To ei tt.er increase or decrease an appropriation (revenue and expense), a budget amendment is necessary. Fiscal Year 1996/97 Second Budget Amendment Page 3 September 24, 1997 I. GENERAL FUND APPROPRIATIONS (REVENUES AND EXPENDITURES) A. Increase of Operating Revenues INCREASED APPROPRIATIONS CATEGORY Ad Valorem Taxes Licenses and Permits Fines and Forfeits Miscellaneous Total Increase DECREASED APPROPRIATIONS CATEGORY Intergovernmental Interest Rents and Leases Total Decrease Net Increase/(Decrease) in Operating Rev AMOUNT $ 571,873 518,800 511,587 2.518.956 S 4.121.216 AMOUNT $ (273,000) (1,165,126) (141.599) (1.579.725) S 2.541.491 B. Increase and Decrease of Operating Expenditures INCREASED APPROPRIATIONS DEPARTMENT Fire Police Citywide Total Increase DECREASED APPROPRIATIONS DEPARTMENT Public Works Code Compliance Building Total Decrease Net Increase/(Decrease) In Operating Exp AMOUNT $ 684,594 1,552,000 561.125 S 2.797.719 AMOUNT $ (100,000) (100,000) (56.228) S (256.228) S 2.541. 491 CONCLUSION: The attached Resolution will allow the second amendment to departmental appropriations within the General Fund to be enacted. This action is necessary to comply with Florida Statutes which stipulate that we may not expend more than our appropriations provide. The net increase in operating revenues within the General Fund will provide the source of funding for the increase in expenditures. JGP:PDW:JC:KRW