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HomeMy WebLinkAbout2005-26004 Reso RESOLUTION NO. 2005-26004 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FINAL OPERATING BUDGETS FOR THE GENERAL FUND, G.O. DEBT SERVICE, RDA FUND-AD VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR 2005/06. WHEREAS, on September 8, 2005, the Mayor and City Commission tentatively adopted the operating and debt service budgets for FY 2005/06; and WHEREAS, Section 200.065 of the Florida Statute specifies the manner in which budgets are adopted. Following a second public hearing, the final millage rate for both general operating and debt service is adopted, and immediately thereafter, final budgets by fund are adopted. 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 final budgets for the General Fund, G.O. Debt Service, RDA Fund-Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06 as summarized and listed below. REVENUES GENERAL OPERATING REVENUES Ad Valorem Taxes Ad Valorem Taxes-Capital Renew/Rep!. 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 GENERAL RDA ENTERPRISE INTERNAL SERVICE TOTALS $ 109,164,825 2,529,563 83,702 20,763,300 12,511,013 13,020,596 7,642,800 1,741,000 4,240,000 2,605,184 6,272,901 19,571,309 7,778,924 $ 207,925,117 $ 109,164,825 2,529,563 83,702 20,763,300 12,511,013 13,020,596 7,642,800 1,741,000 4,240,000 2,605,184 6,272,901 19,571,309 7,778,924 $ 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 REVENUES continued GENERAL RDA ENTERPRISE INTERNAL TOTALS DEPARTMENT/FUNCTION SERVICE ENTERPRISE FUNDS Convention CenterfTOPA $ 15,483,829 $ 15,483,829 Parking 22,060,072 22,060,072 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 FUND TOTAL $ 107,668,402 $ 107,668,402 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 APPROPRIATIONS-continued GENERAL RDA ENTERPRISE INTERNAL TOTALS DEPARTMENT/FUNCTION SERVICE 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 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 $ 107,668h02 $ 46,144,765 $ 385,761,730 '. ' PASSED and ADOPTED this 21st day of Se I 1,.~, ~ ATTEST:' ~.~. .,~yj' ~.< 'J} .: -~&~ CITY.ClERK" ,. Rooert Iiarcher APPROVED MJ TO FORM & lANGUAGE & FORiXECUTlON ;~J1t Dat8 CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution adopting the final operating budgets for the General Fund, G.O. Debt Service, RDA Fund-Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06. Issue: Shall the Mayor and City Commission approve the final operating budgets for the General Fund, G.O. Debt Service, RDA Fund-Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06? Item Summary/Recommendation: The Administration recommends adopting the final operating budgets for the General Fund, G.O. Debt Service, RDA Fund-Ad Valorem Taxes, Enterprise, and Internal Service Funds for Fiscal Year 2005/06. ,AdViSOr}' Board Recommendation: 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 Fund-Ad Valorem Taxes Enterprise Funds Internal Service Funds @U Finance Dept. City Clerk's Office Legislative Tracking: I AGENDA ITEM DATE R'7AL 1--2/-oS- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 h :\\ '.miami- ach.fI.us COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez \ ~~ City Manager () () DATE: September 21, 2005 TO: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FINAL OPERATING BUDGETS FOR THE GENERAL FUND, G.O. DEBT SERVICE, RDA FUND AD VALOREM TAXES, ENTERPRISE, AND INTERNAL SERVICE FUNDS FOR FISCAL YEAR 2005/06. ADMINISTRATION RECOMMENDATION SUBJECT: The Administration recommends that the City Commission adopt the attached Resolution which establishes final budgets for the General Fund, G.O. Debt Service, RDA Fund-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. Following a second public hearing, the final millage rate for both general operating and debt service is adopted, then immediately thereafter, final budgets by fund are adopted. The attached Resolution is therefore presented to you at this time for adoption. ANALYSIS The Mayor and City Commission adopted the tentative millage rate for general and debt service, and the tentative operating budgets, by fund at the first public hearing on September 8, 2005. During the public hearing, the Commission instructed the Administration to identify possible funding sources for a shortfall in the Teen Job Corp Program. The Manager assured the Commissioners that the Administration would review the program requirements and ensure that adequate funding for program continuation would be provided. As a result, City administration met with Deborah Ruggerio and determined that the $86,000 previously committed to Teen Job Corps would restore previous years funding and be available for match to the County's $50,000 grant, for a total of $136,000 in available funds. However, with increased operating expenses (minimum wage, insurance, etc.) and minimal program expansion, their total FY 2005/06 need is $180,000, a difference of $44,000. The City will continue to work closely with the Teen Job Corps to help identify additional sources of revenue and potential cost savings opportunities. FY 2005/06 Final Operating Budgets September 21, 2005 Page 2 Additionally, the Proposed Budget already includes $1,820,000 (an increase of $541,200 from Fiscal Year 2004/05 budget) for fuel charges. The Administration will continue to monitor citywide fuel consumption to ensure that we remain within budget, however, the continuing volatility of fuel prices in teday's markets may necessitate an amendment to the budget at a later date. BACKGROUND On July 27, 2005, the Administration released a Proposed Budget balanced with 7.299 mills, 0.182 mills for Capital Replacement and Renewal, and 0.592 mills for debt service. The overall millage of 8.073 mills will be one tenth of a mill lower than the FY 2004/05 level of 8.173 mills. Maintaining the basic 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 property owners who are permanent residents, 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% retum on investment. 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. FY 2005/06 Final Operating Budgets September 21, 2005 Page 3 IncorPOrate Structural Changes for the Future That Ensure the Fiscal Management and Sustainabilitv for the City in the Long 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 of the capital budget; . An annual $1.5 million Capital Investment Upkeep Account for non-facility related upkeep; . An annual $1 milUon 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. 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 property owners with permanent residents in the City of Miami Beach. In order to fund this return-on-investment, the FY 2005/06 General Fund Operating Budget thus incorporates funding for a $200 return for each homeowner who otherwise qualifies for homestead exemption (threshold for assessing whether an affected property qualifies for the return), after all their outstanding taxes and fees have been paid. The return would be funded from non ad-valorem revenues such as franchise fees, utility taxes, occupational licenses, interest earnings from non ad-valorem sources, etc. The estimated impact of this program is $3.3 million. FY 2005/06 Final Operating Budgets September 21, 2005 Page 4 Increase in Free Offerinas 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; and . Expanded scholarship programs for specialty camps in the summer. Offset of Household Garbaae 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; · 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; and · Reducing the overall combined millage rate for all property owners in the community. FY 2005/06 Final Operating Budgets September 21 , 2005 Page 5 The following chart summarizes the funding components: FY 2005/06 Budget Highlights (in $million's) Increase Capital Asset Funds $10.8 Fiscal Sustalnabllity $4.9 Value for Taxes Paid MB Homeowners' Dividend Fund $3.3 Value of Millage reduction $1.6 Enhancements $7.1 Continue Currant 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 A TVs at five lifeguard towers, and replacing nine lifeguard stations. In addition, funding is 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 FY 2005/06 Final Operating Budgets September 21, 2005 Page 6 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 $1.3 million in enhancements to ensure the cleanliness of our rights-of-watX. This will fund enhanced litter control levels of service along Washington Avenue from 5 Street to Lincoln Road, the Flamingo Park area, Lincoln Road between Washing!on and Collins Avenue (seven days and five nights per week), Harding Avenue from 79th Street to Indian Creek, including Abbot, Byron and Carlyle (five days per week). Litter control and pressure cleaning will also be enhanced in the Beach and Boardwalk zones, including the surrounding dune areas. This also includes funding for expanded litter control on 41st Street and 71$t 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 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 FY 2005/06 Final Operating Budgets September 21, 2005 Page 7 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 of fees 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 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 of the Capital Reserve Fund will help ensure that projects are not delayed due to funding shortfalls. FY 2005/06 Final Operating Budgets September 21, 2005 Page 8 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 (CIP) 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 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. FY 2005/06 Final Operating Budgets September 21, 2005 Page 9 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. 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. FY 2005/06 Final Operating Budgets September 21, 2005 Page 10 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 COT Interiocal 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 intergovemmental revenues, pursuant to the Amended COT Interiocal agreement that are used to offset cor 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 Cariyle theatres, debt service on the Normandy Shore Golf Course, installation of new hedges along the Miami Beach Golf Course, homeless outreach and placement services, 4tfi of July Fireworks, and the Miami Beach Chamber of Commerce Visitors Center. 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. FY 2005/06 Final Operating Budgets September 21, 2005 Page 11 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 COT Interiocal 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 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 final budgets for General Fund, G.O. Debt Service, RDA Fund-Ad Valorem Taxes, Enterprise, and Internal Service Funds for FY 2005/06. JMG:KGB:JC