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HomeMy WebLinkAbout2005-25994 Reso RESOLUTION NO. 2005-25994 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING TENTATIVE BUDGETS FOR THE GENERAL, RDA AD VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR 2005/06 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY, SEPTEMBER 21,2005 AT 5:01 P.M. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City of Miami Beach hereby adopts tentative budgets for the General, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06 as summarized and listed below, subject to a second public hearing scheduled at 5:01 P.M., Wednesday, September 21 , 2005. REVENUES GENERAL OPERATING REVENUES Ad Valorem Taxes Ad Valorem Taxes-Capital Renew/Repl. Ad Valorem Taxes-Normandy Shores Other Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeits Interest Rents and Leases Miscellaneous Other-Resort Tax contribution Other-Non Operating revenues Subtotal G.O. DEBT SERVICE Ad Valorem Taxes Subtotal FUND TOTAL RDA FUND Ad Valorem Taxes-RDA City Center FUND TOTAL ENTERPRISE FUNDS Convention CenterfTOPA Parking Sanitation Sewer Operations Stormwater Operations Water Operations FUND TOTAL GENERAL RDA ENTERPRISE INTERNAL TOTALS SERVICE $ 109,164,825 $ 109,164,825 2,529,563 2,529,563 83,702 83,702 20,763,300 20,763,300 12,511,013 12,511,013 13,020,596 13,020,596 7,642,800 7,642,800 1,741,000 1,741,000 4,240,000 4,240,000 2,605,184 2,605,184 6,272,901 6,272,901 19,571,309 19,571,309 7,778,924 7,778,924 $ 207,925,117 $ 207,925,117 $ 9,966,418 $ 9,966,418 $ 9,966,418 $ 9,966,418 $ 217,891,535 $ 217,891,535 $ 14,057,028 $ 14,057,028 $ 14,057,028 $ 14,057,028 $ 15,483,829 $ 15,483,829 22,060,072 22,060,072 11,429,965 11,429,965 29,266,508 29,266,508 8,250,000 8,250,000 21,178,028 21,178,028 $ 107,668,402 $ 107,668,402 REVENUES continued GENERAL RDA ENTERPRISE INTERNAL TOTALS DEPARTMENT/FUNCTION SERVICE INTERNAL SERVICE FUNDS Central Services $ 792,543 $ 792,543 Fleet Management 6,801,594 6,801,594 Information Technology 12,069,723 12,069,723 Property Management 8,250,873 8,250,873 Risk Management 18,230,032 18,230,032 FUND TOTAL $ 46,144,765 $ 46,144,765 TOTAL - ALL FUNDS $ 217,891,535 $ 14,057,028 $ 107,668,402 $ 46,144,765 $ 385,761,730 APPROPRIATIONS GENERAL RDA ENTERPRISE INTERNAL TOTALS DEPARTMENT/FUNCTION SERVICE MAYOR & COMMISSION $ 1,343,332 $ 1,343,332 ADMINISTRATIVE SUPPORT SERVICES CITY MANAGER 2,177,714 2,177,714 Communications 1,067,074 1,067,074 BUDGET & PERFORMANCE IMPROVE 1,736,275 1,736,275 FINANCE 3,976,543 3,976,543 Procurement 765,613 765,613 Information Technology 12,069,723 12,069,723 HUMAN RESOURCES 1,406,214 1,406,214 Risk Management 18,230,032 18,230,032 LABOR RELATIONS 223,132 223,132 CITY CLERK 1,499,264 1,499,264 Central Services 792,543 792,543 CITY ATTORNEY 3,955,117 3,955,117 ECONOMIC DEV. & CULTURAL ARTS Economic Development ECONOMIC DEVELOPMENT 863,936 863,936 BUILDING 6,565,945 6,565,945 PLANNING 2,910,361 2,910,361 Cultural Arts TOURISM & CULTURAL DEVELOP. 2,623,647 2,623,647 CONVENTION CENTERlTOPA 15,483,829 15,483,829 OPERATIONS NEIGHBORHOOD SERVICES 4,486,086 4,486,086 PARKS & RECREATION 24,842,148 24,842,148 PUBLIC WORKS 6,092,697 6,092,697 Property Management 8,250,873 8,250,873 Sanitation 11,429,965 11,429,965 Sewer Operations 29,266,508 29,266,508 Stormwater Operations 8,250,000 8,250,000 Water Operations 21,178,028 21,178,028 CAPITAL IMPROVEMENT PROJECTS 3,179,602 3,179,602 PARKING 22,060,072 22,060,072 FLEET MANAGEMENT 6,801,594 6,801,594 PUBLIC SAFETY POLICE 67,738,027 67,738,027 FIRE 40,073,894 40,073,894 APPROPRIATIONS-continued GENERAL RDA ENTERPRISE INTERNAL TOTALS DEPARTMENT/FUNCTION SERVICE CITYWIDE ACCOUNTS Capital Investment & Upkeep 1,500,000 1,500,000 Normandy Shores District 128,833 128,833 Operating Contingency 1,000,000 1,000,000 Other Accounts 8,531,272 8,531,272 Transfers MB Homeowner's Dividend Fund 3,269,120 3,269,120 Capital Reserve Fund 2,500,000 2,500,000 Pay-As-You-Go Capital Fund 5,000,000 5,000,000 Info & Comm Technology Fund 1,000,000 1,000,000 Risk Management Fund 1,000,000 1,000,000 11 % Emergency Reserve Contribution 3,939,708 3,939,708 CAPITAL RENEWAL 2,529,563 2,529,563 & REPLACEMENT Subtotal $ 207,925,117 $ 0 $ 107,668,402 $ 46,144,765 $ 361,738,284 G.O.DEBT SERVICE Debt Service 9,966,418 9,966,418 Subtotal $ 9,966,418 $ 9,966,418 RDA FUND RDA City Center $ 14,057,028 $ 14,057,028 $ 14,057,028 $ 14,057,028 TOTAL - ALL FUNDS $ 217,891,535 $ 14,057,028 $ 107,668,402 $ 46,144,765 $ 385,761,730 PASSED and ADOPTED this 8th day of S ATTEST: David Dermer ~r rfMlk CITY CLERK Robert Parcher APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION ~ "! j,L" City Date CITY OF MIAMI B'EACH COMMISSION ITEM SUMMARY m Condensed Title: A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting tentative budgets for the General, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06 subject to a second public hearing scheduled on Wednesday, September 21, 2005 at 5:01 P.M. Issue: Shall the Mayor and City Commission adopt the attached resolution which adopts the tentative budgets for the General, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06 and sets the date for the second public hearing. Item Summa /Recommendation: The Mayor and City Commission should adopt the attached resolution which adopts the tentative budgets for the General, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06 and sets the date for the second ublic hearin . Advisory Board Recommendation: I Financial Information: Source of Funds: $207,925,117 9,966,418 14,057,028 107,668,402 46,144,765 $385,761,730 General Fund Operating G.O. Debt Service RDA Funds-Ad Valorem Taxes Enterprise Funds Internal Service Funds ~ Finance Dept. City Clerk's Office Legislative Tracking: I <,' AGENDA ITEM DATE R'1 A L 9-t-o~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMISSION MEMORANDUM TO: FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez J ~ City Manager ,., 0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING TENTATIVE BUDGETS FOR THE GENERAL, RDA AD VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR 2005/06 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON WEDNESDAY, SEPTEMBER 21,2005 AT 5:01 P.M. DATE: September 8,2005 SUBJECT: ADMINISTRATION RECOMMENDATION The Administration recommends that the City Commission adopt the attached Resolution which establishes tentative budgets for the General, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year (FY) 2005/06. PROCEDURE As outlined in the companion Agenda Item R7 A 1, Section 200.065, Florida Statutes specifies the manner in which budgets are adopted. First, the tentative millage rate for both the general operating and debt service is adopted, then immediately thereafter, tentative budgets by fund are adopted. The attached Resolution adopting tentative budgets for the General, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06 is therefore presented to you at this time for adoption. DECISION-MAKING PROCESS The budget development process has included participation from within and from outside City Hall. Committee of the Whole Meetings were held on April 20th and June 8th as well as a Retreat on May 20th and 21st to provide preliminary budget information to the Commission and establish priorities. Additionally, budget briefings were held on June 30th, July 8th and 13th to inform the Commission and the citizens of preliminary General Fund revenue projections and department expenditure requests for FY 2005/06. On July 27, 2005, the City Commission adopted Resolution #2005-25971 which set the proposed operating millage of 7.299 mills for General Operating, 0.182 mills for Capital Renewal & Replacement, and 0.592 mills for Debt Service. Adopting Tentative Budgets September 8,2005 Page two The Budget Advisory Committee (BAC) reviewed major budget issues and trends and offered comments and suggestions throughout the process. In addition, this year we have been able to refine our strategic priorities with information obtained from our first -ever set of community surveys. By surveying our residents, businesses and community organizations, we now have a better understanding of the needs and desires of our community and are better able to allocate our resources to fund enhancements that addressthese priorities. Overall, the community has a very favorable view of the City Miami Beach as a place to live, work, visit and play. The Proposed Operating Budget for FY 2005/06 was prepared based on four themes: (1) maintain current services; (2) address priorities identified by the community; (3) incorporate structural changes for the future that ensure the fiscal management and sustainability for the city in the long term; and (4) increase taxpayer value for services. The Proposed Operating Budget incorporates the impacts of the expiration of the South Pointe redevelopment district as of September 30, 2005. With the expiration ofthe district, and pursuant to the 2001 and 2003 amendments to the Convention Development Tax (CDT) Interlocal Agreement with Miami-Dade County, one half of the City ad valorem revenues previously restricted to the South Pointe district become available for use Citywide. Further, the Amended CDT Interlocal Agreement provides for additional intergovernmental revenues for a limited number of years that can be used to offset CDT or municipal resort tax type eligible expenditures. The South Pointe redevelopment district has been the most successful redevelopment district in the State of Florida to date. Assessed values have increased from $59 million when the district was established in 1976 to almost $2.5 billion as of January 1, 2005. The Proposed Operating Budget continues to provide funding for operating costs previously funded through the redevelopment district. Maintaining the current service level into FY 2005/06 will translate into an operating General Fund Budget of $180,230,189 which is $12,060,311 or 7.2% greater than the FY 2004/05 adopted budget of $168,169,878. In addition, the budget adds $3,945,077 for enhanced service levels, an increase of 2.3%. An additional $482,122 is included in the General Fund for the impact of enhancements in internal service funds, an increase of 0.2%. Further, the Proposed Budget adds $3,269,120 for a Miami Beach Homeowners Dividend Fund to provide a return on investment to homesteaded property owners, which increases the prior year budget by 1.9%. Finally, the FY Proposed Operating Budget incorporates structural changes that will help ensure the long term financial sustainability of the City and ensure that our capital assets are fully funded. These initiatives represent an increase of $15,837,949 million which increases the prior year budget by 9.4%. In addition, $4,160,660 in operating costs previously funded from the South Pointe redevelopment district, from Resort Tax Quality of Life funds, and from the Special Revenues funds, are also absorbed into the General Fund budget this year, an increase of 2.5%. Therefore, the total Proposed General Fund Operating Budget is $207,925,117 which is $39,755,239 or 23.6% greater than the FY 2004/05 Adopted Budget of $168, 169,878. Going forward, the General Fund Operating Budget is comprised 90% for services, 6% capital-related, 2% financial sustainability, and 2% return on investment. Adopting Tentative Budgets September 8, 2005 Page three Maintain Current Services and Address Priorities Identified bv the Community While continuing to provide the services that help contribute to the high satisfaction levels reflected in our community survey, over $7 million in enhancements are funded in this budget to increase satisfaction even further, primarily funding initiatives identified by the community as areas of concern (traffic and development, storm drainage, cleanliness of canals/waterways, and condition of roads) or key drivers of overall satisfaction (cleanliness and maintenance of streets, buildings, beaches, etc.; safety; and communications, especially with businesses). These enhancements include making our streets, waterways, and public areas cleaner; infrastructure improvements; expanded recreation programming; expanded code compliance and remediation programs; enhanced public safety, particularly in our neighborhoods and in emergency management; increased project management to expedite completion of capital projects; and increased outreach and communication with the community. Incorporate Structural ChanCles for the Future That Ensure the Fiscal ManaClement and Sustainabilitv for the City in the LonCl Term To ensure long-term financial sustainability and ensure that our capital assets are appropriately funded in the long term, the proposed budget includes the following structural changes: · Increasing the annual funding for the Capital Renewal and Replacement Fund by $1.2 million; · An annual transfer of $2.5 million to the City's Capital Reserve to fund project shortfalls throughout the year; · $5 million transfer to a new capital fund to create a pay-as-you-go component ofthe capital budget; · An annual $1.5 million Capital Investment Upkeep Account for non-facility related upkeep; · An annual $1 million transfer for an Information and Communications Technology Fund; · An annual $1 million transfer to the Risk Management Fund as part of a multi-year plan to address funding shortfalls in the reserve for claims against the City; and · $3.9 million in increased funding for the City's 11 % emergency reserve, previously funding from surplus revenues at year-end. The projected General Fund balance as of September 30,2006 is $35.5 million due to this budgeted contribution to the emergency reserve allowing us to fulfill our legislative requirements and further strengthen our credit worthiness with Bond rating agencies. Adopting Tentative Budgets September 8, 2005 Page four Increase Taxpayer Value for Services Miami Beach Homeowners Dividend Fund The Proposed Operating Budget for FY 2005/06 incorporates the Miami Beach Homeowners Dividend Fund proposed by Mayor David Dermer during his 2005 State of the City address. The Miami Beach Homeowners Dividend Fund is intended to provide a mechanism for a return-on-investment to homesteaded property owners that reside in the City of Miami Beach. This Fund allows for a return of $200 back to eligible Miami Beach homeowners currently receiving a homestead exemption after all their outstanding taxes and fees have been paid. The amount of the return is approximately similar to the City portion of an additional $25,000 Homestead Exemption. The estimated impact of this program is $3.3 million, to be funded from non ad valorem revenues such as franchise fees, utility taxes, occupational licenses, interest earnings, fines, etc. Increase in Free OfferinQs for Residents The FY 2005/06 proposed budget also includes several other benefits specifically for City of Miami Beach residents, including: · Free access to City pools on weekends and during non-programmed hours; · Free general admission to our Youth Centers on weekends and during non- programmed hours, including opening of both Youth Centers seven days per week; · Free Family Saturday Nights at one of our facilities four times per year, where families are welcomed, free of charge, to experience special activities; · Free Learn-to-Swim programs for 3 to 4 year old residents; · Expanded scholarship programs for specialty camps in the summer. Offset of Household GarbaQe and Trash Collection Fee Increase The Proposed Budget absorbs the impact of contractual CPI increases in payments to the contractor responsible for the collection and disposal of waste from single and multi-family households in the City. This, in effect, absorbs a $13.92 per household fee increase that otherwise would have been past on to the household. Overall Increase in Tax Paver Value For Services Overall, the Proposed Operating Budget enhances the value of services for taxes paid by the community in several ways: · Providing a $200 dividend return for full-time, homesteaded property owners; · Providing expanded free access to many Miami Beach programs and facilities for all residents; Adopting Tentative Budgets September 8, 2005 Page five . Providing enhanced service levels addressing the priorities of the community; . Absorbing the household garbage and trash collection fee increase incurred due to contractual CPI increases . Reducing the overall combined millage rate for all property owners in the community. The following chart summarizes the funding components: FY 2005106 Budget Highlights {in $million's} Increase Capital Asset Funds $10.8 Fiscal Sustainability $4.9 Value for Taxes Paid MB Homeowners' Dividend Fund $3.3 Value of Millage reduction $1.6 Enhancements $7.1 Continue Current Service $12.8 Summary of Enhancements This budget includes over $1 million in enhancements for Fire and Police to improve public safety throughout the City. In Police, the enhancements include the implementation of a "neighborhood contacts" program by police in the Mid and North Beach areas, using six public safety specialists patrolling primarily on bicycles. By making five contacts per day, these six officers can reach over 7,000 households per year. In addition, patrol officers will each be encouraged to make at least one household or business contact per day, resulting in over 70% of households and businesses contacted throughout the year. In the Fire Department, enhancements include a new Emergency Manager position to address homeland security concerns, hurricane activity and other emergencies that may occur in the city; a technical support position in Fire Prevention; and expanded fire rescue training. The enhancements also expand ocean rescue response capability by adding ATVs at five lifeguard towers, and replacing nine lifeguard stations. In addition, funding is Adopting Tentative Budgets September 8, 2005 Page six provided for two additional thermal imaging cameras and for retrofitting Fire Stations number 1 and number 3 with exhaust recovery systems. The Fire Department will pursue additional funding for Lifepak upgrades for Emergency Rescue, including an electronic reporting system, through the Housing Finance Authority. Preventing crime was one of the top three items identified in the community survey that the City could address to further improve public safety. Approximately $240,000 in new funding is added to replace two contract data entry clerks with permanent staff and to hire a second technician for support of Police mobiles, both to enhance real-time reporting capabilities; to hire a fulltime property evidence technician to provide increased coverage at night and reduce overtime; and to hire two additional police officers to enforce the recently adopted boat mooring ordinance. In addition, $100,000 is added to provide for an assessment of enhanced lighting in business districts to address security concerns. The proposed budget incorporates approximately $1.3 million in enhancements to ensure the cleanliness of our rights-of-wal This will fund enhanced litter control levels of service along Washington Avenue from 5 Street to Lincoln Road, the Flamingo Park area, Lincoln Road between Washington and Collins Avenue (seven days and five nights per week), Harding Avenue from 79th Street to Indian Creek, including Abbot, Byron and Carlyle (five days per week). Litter control and pressure cleaning will also be enhanced in the Beach and Boardwalk zones, including the surrounding dune areas. This also includes funding for expanded litter control on 41st Street and 71st Street from $150,000 per year previously funded from Quality of Life to $389,000 providing for service five days per week in each area. Illegal dumping surveillance will also be increased, particularly in the North Beach area; smoker stations will be installed along Lincoln Road funded through the City Center redevelopment district; and a mobile leaf vacumn will be purchased to enhance the frequency of cleaning parks. The proposed budget reflects an additional 34 positions in the Sanitation fund. However, I have directed staff to develop a managed competition program allowing for some portion of these activities to be contracted out. Contracted operation would be compared to in-house operations on the basis of cost and performance. In addition, the City will be implementing a monitoring system to ensure that these enhancements produce measurable improvements in cleanliness along our rights-of- way and public areas. The proposed budget funds expanding the waterway cleaning efforts from $30,000 per year previously funded by Quality of Life funds, to $97,500 through a contract for a comprehensive program for cleaning trash and debris from inland canals and waterways throughout the City. The FY 2005/06 Proposed Operating Budget incorporates over $200,000 in new funding for the addition of three code officers to provide for expanded hours of operation across all areas of the City and an additional inspector is added to enforce the recently enacted newsrack ordinance, the cost of which is anticipated to be offset by increased revenues from fines. Additional funding is provided for expansion of the graffiti remediation program citywide, a wildlife eradication program throughout the City, and enhanced funding for Adopting Tentative Budgets September 8, 2005 Page seven remediation of overgrown vacant lots, a total of $73,000. An additional $100,000 will be funded from the proposed Information and Communications Technology Fund for software to enhance tracking of employee productivity, caseload by zone, and caseload turnaround time, etc. New funding is incorporated for an enhanced hedge around the Miami Beach golf course ($55,000). While providing an alternative to a fence, the hedge will also enhance beautification around the golf course. In addition, $62,000 in new funding will be provided from the Parking Department for a full-time contracted two-person maintenance crews for pressure cleaning, sign installations and repair, meter installations, and general routine maintenance of parking facilities. Finally, replacement of landscape stock in needed areas will be funded from the proposed Capital Investment Upkeep Account. The proposed budget incorporates $460,000 in recreational program enhancements including seven full-time and two part-time positions and operating expenses for Normandy Park and Pool scheduled to re-open in summer 2006, six part-time recreational leader positions for new programming at Fairway Park, four part-time recreational leader positions to reduce staffing ratios for after schools programs, one full-time recreation leader to develop and implement a senior scenes club program of activities, classes and trips, one part-time recreational leader and operating expenses for enhancement of the Teen Club at North Shore Youth Center, and new computers and peripherals for Flamingo Pool And the Police Athletic League facility. This also includes funding for the increased costs of opening North Shore Youth Center on Sundays and Scott Rakow Youth Center on Saturdays, making our Youth Centers open to the public seven days per week. An additional $150,000 in funding is proposed to provide for a free-of-charge "Learn to Swim" program for 3 to 4-year old residents and to provide for expansion of scholarships available for specialty camps. The Proposed Budget also recommends elimination offees for resident use of city pools on weekends and during non-programmed hours and for residents accessing general use of the Youth Centers on weekends and during non- programmed hours. Approximately $18,000 in new funding is proposed for four Free Family Saturday Nights program events at our parks in partnership with cultural groups. In addition, the City will conduct focus groups to obtain more specific information regarding types of cultural activities desired, accessibility to cultural activities, availability of information regarding cultural activities, etc. The proposed budget includes $58,000 in new funding for special events support, including a special events inspector to provide a full-time presence at events on nights and on weekends, a contract position for initial contacts with event producers, and a Plans and Policy Manager in The Police Department for special events. The proposed budget includes over $400,000 for a full year of funding for eight positions added in mid-year 2004/05 to reduce turn around times for plan reviews, and decrease overdue elevator inspections and tests. In addition, one position is added in the Finance Adopting Tentative Budgets September 8, 2005 Page eight Department to create a one stop lien shop consolidating building, code and fire lien functions. The proposed budget includes approximately $75,000 for a bike pedestrian network coordinator to expedite implementation of bikeways and pedestrian walkways throughout the City and for the implementation of additional bikeracks. To help expedite plan review and manage projects in construction, the proposed budget includes $400,000 in new funding for two positions in Public Works and three in CIP. In addition, the annual funding ofthe Capital Reserve Fund will help ensure that projects are not delayed due to funding shortfalls. An additional $150,000 is funded for FY 2005/06 to complete assessments on 9 additional buildings in FY 2005/06, the second phase of a comprehensive facility assessment program. Further, five positions are added in property management to address increasing maintenance requirements as new facilities are brought on line and to ensure completion of renewal and replacement projects at a cost of $325,000. The proposed budget includes approximately $900,000 in enhancements for citywide infrastructure improvements, including a pavement assessment and repair program, broken sidewalk replacement, as well as a regular maintenance program for outfall and catch basin cleaning and repairs. In addition, $120,000 is included to increase the number of positions supporting the automated mapping of the City's infrastructure and work order system from one to three. Of these total combined enhancements, $900,000 are funded from the Stormwater and Sewer Enterprise funds. The FY 2005/06 Proposed Operating Budget incorporates centralization and enhancement of all Communications functions within the City. Although preliminary in concept, it is anticipated that the new communications department will include two existing communications positions within the Office of Communications, two media positions and a part-time Proclamation Clerk position (to provide publications graphics support) from the City Clerk's Office, and a sponsorship position from the Parks and Recreation Department. Similarly, we are consolidating our outreach functions in the Neighborhood Services Department. To this end, an existing business outreach position in Economic Development will be transferred to the Community Outreach Section of Neighborhood Services. Approximately $240,000 is funded for a regular advertising page in local newspapers, a bi- monthly newsletter, and expanded cable programming, including a contracted program manager. In addition to existing positions, $180,000 in funding is provided for an additional public information specialist, an additional media specialist, and a graphics position. An additional $95,000 is included for capital improvement program (CI P) project newsletters to be distributed bi-annually to each of the 14 neighborhoods throughout the City, and replacing an existing Community Information Manager position with two Community Information Coordinators to enhance outreach with the neighborhoods. Further, $86,500 in Adopting Tentative Budgets September 8, 2005 Page nine communications equipment will be funded from the Information and Communications Technology Fund. In addition to a new code system, the proposed budget includes $82,000 for an internet parking application. An existing contracted temporary clerical position in the Parking Department will be converted to a full-time position to assist with implementation and support of the software. The proposed budget includes $30,000 for software and technology anticipated to result in increased revenues, an on-line grants locator system and a Parking VIN vehicle to electronically identify parking ticket scofflaws; and a new Financial Analyst II is added to ensure more timely reconciliation of bank accounts. Finally, approximately $137,000 is anticipated in efficiencies, including overtime reductions through hiring 3 positions in Fire and 1 position in Parking. Approximately $240,000 will be funded by Information Technology for new IT positions, including a Storage Area Network (SAN) Architect to develop and implement a strategic solution to address multi-department storage needs, an additional resource to support the City's more than 1,500 desktop users, and 1 position providing full-time support for Citywide deployment of Voice Over Internet Protocol that allows the City to achieve savings by bringing data and voice traffic together on the same network. In addition, the Information and Communications Technology Fund will provide funding for the new SAN, implementation of an Enterprise Uninterrupted Power Supply for the City's data center, a "Self-Defending Network" solution to improve system security and mitigate potential virus infiltrations to the City's network, and an e-mail archiving solution to enhance our retrieval capabilities for public records requests etc. and to further optimize storage requirements. This fund will also provide an advance funding stream for the implementation of a citywide wireless broadband network (WiFi) to enhance the City's public safety network and provide "Hotspot" areas for public access. The fund will be re- paid over time from the considerable savings that will be incurred for our current wireless applications. To enhance tracking performance and ensure we achieve results, the City will pursue performance management software, funded by the Information and Communications Technology Fund. MILLAGE FOR CAPITAL RENEWAL AND REPLACEMENT In FY 2004/05 the City established a restricted account for the renewal and replacement of the City's General Fund facilities to extend their useful life or replace equipment whose useful life has expired. Project specific appropriations from the fund are reviewed and approved each year by the City Commission as part of the budget process, and are used exclusively for those capital expenditures that help to extend or replace the useful life of our facilities. Adopting Tentative Budgets September 8, 2005 Page ten The funding of this restricted account is accomplished by adding a percentage of the amount of the Debt Service Millage reduction to the General Operating Millage. In FY 2004/05, the dedicated millage for Renewal and Replacement was 0.126. In FY 2005/06, the reduction in debt service millage is 0.156 of which 0.056 was added for a cumulative Renewal and Replacement millage in FY 2005/06 of 0.182, and with a net decrease to the total operating millage of 0.100 mills. The millage of 0.182 will fund $2.529 million for Capital Renewal and Replacement, which is an increase of $1.182 million over FY 2004/05. GENERAL FUND AD VALOREM REVENUES The net General Fund ad valorem budgeted revenue available for use Citywide increased from $ 78.03 million in FY 2004/05 to $101.45 million for FY 2005/06, an increase of $23.42 million, or a 30% in General Fund ad valorem revenues. Of the $101.45 million, $6.95 million are equivalent to the tax increment revenues that would have been transferred to the South Pointe redevelopment district tax had it still been in place. In addition, $7.72 million previously part of the South Pointe redevelopment district tax increment revenues, are incorporated in the General Fund. Pursuant to the Amended CDT Interlocal Agreement, the use of these funds is restricted to the geographic area of the former South Pointe redevelopment district. Finally, ad valorem revenues restricted to the City's Capital Renewal and Replacement Reserve will increase from $1.347 million to $2.529 million, an increase of $1.182 million or 87.8%. Of this amount, $0.284 million is due to increased property assessments, and $0.898 million is due to enhanced funding levels. OTHER GENERAL FUND REVENUES Resort tax revenues transferred to the General Fund for tourism-related expenditures are anticipated to increase from $18.9 million in FY 2004/05 to $19.6 million in FY2005/06, reducing the gap between tourism-related expenditures provided by General Fund departments and Resort Tax revenues transferred to the General Fund. The General Fund Budget includes approximately $2.9 million intergovernmental revenues, pursuant to the Amended CDT Interlocal agreement that are used to offset CDT or municipal resort tax type eligible expenditures. In FY 2005/06, these revenues are used to fund the Miami Beach Botanical Garden, the Bass Museum of Art, operating subsidies for the Colony and Byron Carlyle theatres, debt service on the Normandy Shore Golf Course, installation of new hedges along the Miami Beach Golf Course, homeless outreach and placement services, 4t1i of July Fireworks, and the Miami Beach Chamber of Commerce Visitors Center. Adopting Tentative Budgets September 8, 2005 Page eleven Interest revenues are projected at $4.2 million, approximately an increase of $1.4 million over the FY 2004/05 budget, primarily due to increased interest rates, and franchise fees and taxes are projected to increase by $1.2 million based on current revenue trends. Licenses and permits are increased by $1 million based on FY 2004/05 trends and partially used to fund additional positions in the Building Department to support the increased activity beginning in mid FY 2004/05. The General Fund Proposed Budget includes fee increases at the Miami Beach Golf Course to a level consistent with fees charged at similar facilities in the region, generating an additional $150,000 per year. However, fees for City of Miami Beach residents at the Miami Beach Golf Course will remain unchanged. No other General Fund fee increases are proposed beyond those increases approved by the City Commission in 2003 for implementation in FY 2005/06. In addition, $1.3 million in Special Revenues from Recreation fees will be brought into the General Fund, offset by the same in expenditures. On a go forward basis, use of the revenues will be tracked separately through the project accounting component of our new financial system. ENTERPRISE FUNDS Enterprise Funds are comprised of Sanitation, Water, Sewer, Stormwater, and Parking Departments. The proposed FY 2005/06 budget for this area is $107.7 million including enhancements. This represents an increase of $8.8 million from the FY 2004/05 budget. Increases in current service level costs are primarily as the result of increases in Miami-Dade County wholesale water and sewer rates, salaries and benefits, water and sewer debt payments due to the delay in refunding water and sewer bonds, in addition to absorbing sanitation costs previously funded in the General Fund. In addition, Miami-Dade County has proposed a substantial increase in wholesale water and sewer rates that it is still reviewing and is not included as part of this budget. Approximately $2.4 million in enhancements are proposed, with over $1.3 million for Sanitation improvements and approximately $800,000 in the Stormwater fund for enhanced storm drainage maintenance. These are offset by approximately $2.7 million in new intergovernmental revenues received through the CDT Interlocal Agreement for sanitation services along major thoroughfares and walkways throughout the City. INTERNAL SERVICE FUNDS Internal Service Funds are comprised of the Central Services, Fleet Management, Information Technology, Risk Management and Property Management Divisions. The proposed FY 2005/06 budget for this area is $46.1 million. This represents an increase of $5.7 million from the FY 2004/05 budget. The current service level increases are primarily the result of increases in salaries and benefits, fuel and additional property insurance. This includes approximately $700,000 in enhancements, primarily for facility assessments and increased maintenance for new facilities coming on line, as well as for 3 new Information Adopting Tentative Budgets September 8, 2005 Page twelve technology positions, as well as the $1 million transfer to the Risk Management Fund to reduce liability shortfalls. These costs are completely allocated to the General Fund and Enterprise Fund departments. CONCLUSION The Administration recommends adoption of the attached Resolution which establishes tentative budgets for General, RDA Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06, subject to a second public hearing scheduled on Wednesday, September 21,2005 at 5:01 P.M. JMG:KGB:JC