96-22028 RESO
RESOLUTION NO.
96-22028
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, PROVIDING FOR THE SECOND AMENDMENT TO
FISCAL YEAR 1995/96 BUDGETS WITHIN THE GENERAL FUND, TOTALING
$3,130,000; THE CONVENTION CENTER ENTERPRISE FUND, TOTALING
$13 , 649 , 343 ; AND THE FLEET MANAGEMENT INTERNAL SERVICE FUND ,
TOTALING $339,000.
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 $3,130,000; the Convention Center Enterprise Fund,
totaling $13,649,343; and the Fleet Management Internal Service Fund,
totaling $339,000, 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/Tax
category by $31,085 within the General Fund, while simultaneously
decreasing the Other Tax category by $31,085 within the General Fund, the
net impact of which is zero, with no increase to the General Fund budget;
and
WHEREAS, increased revenues within the categories of Interest, for
$2,050,000; Miscellaneous, for $900,000; and Other, for $180,000, will
provide the source for increased expenditures, totaling $3,130,000 within
the General Fund; and
WHEREAS, in order to reallocate certain expenditure categories within
the budget document, an amendment is necessary to increase allocations by
$150,000, within certain General Fund departments, while simultaneously
decreasing the Citywide Medicare department by $150,000, within the General
Fund, the net impact of which is zero, with no increase to the General Fund
budget; and
WHEREAS, increased appropriations are necessary within the Fire
department, for $1,587,141, and the Police department, for $1,613,000, to
cover unanticipated pension, accumulated sick leave payouts, and assessment
center professional fees; and
WHEREAS, retained earnings
contributions and capital expenses
Fund, for $13,649,343; and
will offset increased non-operating
within the Convention Center Enterprise
WHEREAS, increased revenues from interdepartmental charges will
provide the source for increased operating and non-operating expenses
within the Fleet Management Internal Service Fund, for $339,000; and
WHEREAS, in order to either increase or decrease appropriations
(revenue and expense), an amendment to the current budget is necessary.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the following departmental
appropriations within General, Enterprise, and Internal Service Funds are
hereby amended to cover certain revenue and expenditure reallocations, and
increased revenues and expenses as enumerated as follows:
GENERAL FUND
OPERATING REVENUES
Property 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/Families Affairs
Community Relations/PIO
Finance
Management and Budget
Human Resources
Building Services
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
FY 1995/96
Amended Budget
April 17, 1996
$ 41,382,736
15,915,785
6,725,000
9,307,500
1,875,163
738,884
1,675,000
928,228
3,343,094
8,546,196
174.849
S 90.612.435
S 10.368.286
S 10.368.286
S100.980.721
$ 545,249
1,230,130
2,083,901
685,070
67,792
580,848
1,514,776
664,629
1,220,366
3,642,167
1,750,646
627,401
11,595,540
2,464,594
2,567,628
16,257,705
32,155,909
10.958.084
S 90.612.435
S 10.368.286
S 10.368.286
S100.980.721
Increase/
(Decrease)
$ 31,085
(31,085)
o
o
o
o
2,050,000
o
900,000
180,000
o
S 3.130.000
S
S
S 3.130.000
$ 4,486
8,788
o
2,286
584
o
5,820
1,750
o
o
10,158
o
45,987
o
o
1,587,141
1,613,000
(150.000)
S 3.130.000
S 0
S 0
S 3.130.000
FY 1995/96
Amended Budget
June 19, 1996
$ 41,413,821
15,884,700
6,725,000
9,307,500
1,875,163
738,884
3,725,000
928,228
4,243,094
8,726,196
174.849
S 93.742.435
o
o
S 10.368.286
S 10.368.286
S104.110.721
$ 549,735
1,238,918
2,083,901
687,356
68,376
580,848
1,520,596
666,379
1,220,366
3,642,167
1,760,804
627,401
11,641,527
2,464,594
2,567,628
17,844,846
33,768,909
10.808.084
S 93.742.435
S 10.368.286
S 10.368.286
S104.110.721
ENTERPRISE FUNDS
APPROPRIATIONS
Convention Center
Parking
Sanitation
Sewer
Storm Water
Water
Total Enterprise
INTERNAL SERVICE FUNDS
APPROPRIATIONS
Central Services
Communications
Fleet Management
Property Management
Risk Management
Total Internal Serv
TOTAL ALL FUNDS
FY 19S5/96
Amended Budget
April 17, 1996
$ 9,690,220
10,432,716
3,758,139
23,491,396
3,398,813
15.236.363
S 66.007.647
$ 702,300
4,420,407
5,333,315
3,755,827
10.338.922
S24.550.771
S191.539.139
Increase/
(Decrease)
FY 1995/96
Amended Budget
June 19, 1996
$13,649,343
o
o
o
o
o
S13.649.343
$ 23,339,563
10,432,716
3,758,139
23,491,396
3,398,813
15.236.363
S79.656.990
$
$ 702,300
4,420,407
5,672,315
3,755,827
10.338.922
S24.889.771
S
o
o
339,000
o
o
339.000
S17.118.343
S208.657.482
PASSED and ADOPTED this ~ day of
nd Budget
"lif;~ , APPRC)'i/Fu
LECll~l DEPT
By 4fJ!J;/&
[Ide:: 6 1/16.-_..
CITY OF
MIAMI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. 3 '5 ~-CJL.
TO:
Mayor Seymour Gelber and
Memben of the City Commission
DATE: JUNE 19, 1996
FROM:
Jose Garcia-Pedrosa
City Manager
SUBJECT:
A RESOLUTION THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, ORIDA, PROVIDING FOR THE SECOND AMENDMENT TO
FISCAL YEAR 1995/96 BUDGETS WITHIN THE GENERAL, ENTERPRISE,
AND INTERNAL SERVICE FUNDS
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 April 17, 1996, the first amendment
to Fiscal Year 1995/96 was adopted to cover prior-year encumbrances
within the General and Internal Service Funds. On June 5, 1996, a
progress report was accepted by the Commission for the second quarter
which ended on March 31, 1996. Both the Budget Advisory and Audit
Committees have reviewed the first and second quarter budget to actual
analyses. In our report, we advised that a second amendment would be
submitted during the third quarter to address unanticipated revenues and
unbudgeted expenditures in the General, Enterprise, and Internal Service
Funds which were highlighted in that report. 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 overall amended budget by
$17,118,343 or 9% from $191,539,139 to $208,657,482. Individually, this
represents a $3,130,000 or 3% change within the General Fund, a
$13,649,343 or 21% change within the Enterprise Funds, and a $339,000 or
1% change within the Internal Service Funds.
In keeping with sound financial planning
to present a third amendment during the
and budgeting practices, we plan
month of September to reconcile
AGENDA ITEM C. 1 \\
DATE
~-'9-~
Fiscal Year 1995/96 Second Budget Amendment
Page 2
June 19, 1996
preliminary year-end projections to the amended budget, followed by a
fourth and final amendment during November to recognize any unanticipated
expenses and year-end closing transactions which impact the budget
document. You will recall that our external auditors issued a management
comment with regard to increasing the frequency and timing of budget
amendments throughout the year. During Fiscal Year 1994/95 two budget
amendments were adopted, whereas in Fiscal Year 1995/96 four budget
amendments are planned for presentation.
The budget amendment for the General Fund reallocates revenues between
two additional categories, those being Ad-Valorem and Other Taxes,
recognizes unanticipated revenues within the categories for Interest,
Miscellaneous, and Other, reallocates Medicare expenditures from a
Citywide account to specific departments, and captures unbudgeted
Police/Fire pension and accumulated sick leave payouts, as well as the
Fire assessment center process.
You will recall that in our first amendment we reallocated revenues
between four categories (Intergovernmental, Fines and Forfeits,
Miscellaneous, and Other), to provide for reader ease when comparing the
budget document to the financial statement. Regrettably, we
inadvertently omitted the Ad-Valorem and Other Taxes categories from this
reallocation. At this point, we need to implement this reallocation.
As previously stated, this is a "budget neutral" event and in no way
impacts either the millage rate, fund balance, or the total adopted
budget. It merely simultaneously moves adopted revenues from one
category to the other, in like amounts, to mirror the financials.
Turning to the increased revenue allocations within Interest,
Miscellaneous, and Other, these recommendations flow from our June 5,
1996, budget report. The increased interest income earned from the call
option on the Pension Obligation Bonds receipted during the second
quarter {$1,450,000) and the anticipated income to be earned from the
Metro Dade County distribution of $46.5 million from the Convention
Development Tax/Performing Arts Center Interlocal Agreement during the
third quarter ($600,000), provides the source for this $2,050,000
increase. Proceeds from the sale of City property (Publix) for $900,000
requires an increase within the Miscellaneous category, while the
refunding of the 1988 Resort Tax Revenue Bond Series will allow this fund
to pay less in debt service, thus generating an additional $180,000
available for transfer into the General Fund, for which an increase
within the Other category is required to recognize these events. Since
none of these events were anticipated in the adopted budget, an amendment
is required to recognize these reallocations and increases to these five
revenue categories.
Fiscal Year 1995/96 Second Budget Amendment
Page 3
June 19, 1996
Turning to expenditures within the General Fund, a reallocation of
$150,000 from a Citywide Medicare expenditure account is necessary to
increase allocations, in a like amount, within the departments of the
Mayor and Commission ($4,486), City Manager ($8,788), City Clerk
($2,286), Bureau of Children/Families' Affairs ($584), Finance ($5,820),
Office of Management and Budget ($1,750), Development Services ($10,158),
Recreation/Culture/Parks ($45,987), and Fire ($70,141), as present
allocations in these functions are not sufficient to cover these
expenditures. Increases within the Fire ($630,831) and Police ($970,000)
departments totaling $1,600,831 recognizing unbudgeted expenditures for
pension contributions ($1,024,091) which stemmed from the Fiscal Year
1994/95 reversing journal entry and the decision not to refinance the
Police and Fire Pension Obligation Bonds ($576,740), are necessary.
Accumulated sick leave payouts for Fire ($801,819) and Police ($643,000)
totaling $1,444,819, and the award for the Fire Assessment Center will
require an additional $84,350 for this process. Both of these items were
not included in the current year's budget, therefore, increased
allocations within these departments will be required to reflect these
additions.
No additional funding is required for the reallocation of revenues and
expenditures within the General Fund. The pension, accumulated leave, and
assessment center expenditures will be offset by increased revenues
received within the categories of Interest, Miscellaneous, and Other
alluded in the preceding page. This budget amendment will not impact the
current year's fund balance within the General Fund.
Within the Enterprise Fund, the transaction relating to the non-operating
transfer of $11,500,000 in accumulated depreciation (cash) to Metro Dade
County per the Convention Center Development Tax/Performing Arts Center
Interlocal Agreement, and capital expenses for $2,149,343 (see Convention
Center/TOPA capital improvements schedule) created the need for a budget
amendment. The source for this $13,649,343 amendment will be retained
earnings.
The Fleet Management Internal Service Fund is expected to exceed its
budget for fuel and repair/maintenance operating expenses by $129,000,
and non-operating depreciation expenses by $210,000 due to a mid-year
revised depreciation schedule. The source for this $339,000 amendment
will be increased interdepartmental charges to the various users
Citywide.
SECOND AMENDMENT DISCUSSION:
Having provided an analysis of General, Enterprise, and Internal Service
Funds, we will now present the amendments required by fund to increase
Fiscal Year 1995/96 Second Budget Amendment
Page 4
June 19, 1996
appropriations to cover unanticipated revenues, reallocated revenues and
expenditures, and unbudgeted expenses. In order to either increase or
decrease a departmental appropriation (revenue and expense), a budget
amendment is necessary.
I. GENERAL FUND APPROPRIATIONS (REVENUES AND EXPENDITURES)
A. Reallocation and Increase of Operating Revenues
INCREASED APPROPRIATIONS
CATEGORY
Ad-Valorem Taxes
Interest
Miscellaneous
Other - Interfund Transfers
Total Increase
AMOUNT
$ 31,085
2,050,000
900,000
180.000
$3.161.085
DECREASED APPROPRIATIONS
CATEGORY
Other Taxes
Total Decrease
Net Increase/(Decrease} in Operating Revenues
AMOUNT
$ (31.085)
$ (31.085)
S3,130,OOO
B. Reallocation and Increase of Operating Expenditures
INCREASED APPROPRIATIONS
DEPARTMENT
Mayor and Commission
City Manager
City Clerk
Children/Families Affairs
Finance
Management and Budget
Development, Design, Hist Pres
Recreation, Culture, Parks
Fire
Police
Total Increase
AMOUNT
$ 4,486
8,788
2,286
584
5,820
1,750
10,158
45,987
1,587,141
1.613.000
$3.280.000
DECREASED APPROPRIATION
DEPARTMENT
Citywide - Medicare
Total Decrease
AMOUNT
$ (150.000)
$ (150.000)
Net Increase/(Decrease} In Operating Exp
S3.l30,OOO
Fiscal Year 1995/96 Second Budget Amendment
Page 5
June 19, 1996
II. ENTERPRISE FUND APPROPRIATION (REVENUES AND EXPENSES)
A. Convention Center Revenue and Expense Appropriation Increase
INCREASED APPROPRIATIONS
Revenue
Retained Earnings
Total Revenue
Expense
Other - Non-Operating Transfer to Metro Dade
Capital
Total Expense
Net Increase/(Decrease)
AMOUNT
513.649.343
513 . 649.343
$11,500,000
2.149.343
513.649.343
S13.649.343
III. INTERNAL SERVICE FUND APPROPRIATION (REVENUES AND EXPENSES)
A. Fleet Management Revenue and Expense Appropriation Increase
INCREASED APPROPRIATIONS
Revenue
Interdepartmental Charges
Total Revenue
Expense
Operating
Other - Non-Operating Depreciation
Total Expense
Net Increase/(Decrease)
AMOUNT
5 339.000
5 339.000
$ 129,000
210.000
5 339.000
S 339.000
CONCLUSION:
The attached Resolution will allow the second amendment to departmental
appropriations within General, Enterprise, and Internal Service Funds to
be enacted. This action is necessary to comply with Florida Statutes
which stipulate that we may not expend more than our appropriations
provide. Increased operating revenues and retained earnings provide the
sources for this second amendment.
JGP:PFL:DJJ:me
attachment - Resolution and Convention Center/TOPA Capital Schedule
f,\budg\$bud\danielle\wp60\2ndamend.96
FY 1995/96 Second Budget Amendment
Capital Improvement Schedule for the Convention Center/TOPA Fund
Description
Signage (Interior & Exterior)
W.R.T. Consultants
Carpeting
Energy management & retrofit
T.O.P.A. landscaping
Computers and wiring
Roof consultant
Moisture test on roof & Hall 0 beam
Resurface Lots
Security systems
Security system maintenance
North lot improvements
Chairs
Freight Doors
A.DA Consultant
T.O.P.A. dance floor
T.O.PA electrical improvements
T.O.P.A. sound improvements
Pianos
Communication equipment
Other items
Total
FY 95/96
Capital Budget
$264,020
62,350
330,000
350,000
210,705
170,000
150,000
30,462
30,945
50,986
18,000
87,80~
80,000
75,000
15,000
7,000
65,000
11,500
75,000
55,000
10,575
$2,149,343