June 4, 2014 Commission Retreat - Budget UpdateUPDATE
BUDGET
Commission Retreat
June 4, 2014
BEACH
MIAMI
AGENDA
Budget Process Overview
•
General Fund Budget Trends
•
FY 2013/14 Budget Highlights
•
FY 2014/15 Budget Development Update
•
Next Steps
•
Commission Retreat –June 4, 2014
2
OFBEACH’S
CITY MIAMI
MODEL
EXCELLENCE
http://web.miamibeachfl.gov/excellence
Commission Retreat –June 4, 2014
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CYCLE
WORK PLAN & BUDGET
Staff Retreats to identify potential initiatives
Jan -Feb Initiate budget development process
Feb -Mar Dept. Directors confer with ACM’s during budget
development for approvals; input received from
Boards/Committees; workplan and budget submission due
at the end of March
Mar -May Commission establishes budget priorities
Work plan/Budget planning workshops with departments
Departmental reviews with City Manager and OBPI
May -JunPreliminary taxable values received June 1st from County
Develop preliminary General Fund Budget
Commission Retreat –June 4, 2014
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CYCLE
WORK PLAN & BUDGET
Jul 1st “Certification of Taxable Values” received from County
Mid-Jul City Commission sets tentative property millage rates
Jul –Aug Finance & Citywide Projects Committee budget meetings
AugAdministration develops Proposed Budget
SepFirst and second public hearings on the budget
Adopt tentative and final millage rates; Adopt operating
budgets Appropriate documentation filed with County
Property Appraiser, Tax Collector, and Florida
Department of Revenue in Tallahassee
Commission Retreat –June 4, 2014
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TYPES OF FUNDS
General Fund
•
Enterprise Funds
•
Internal Service Funds
•
G. O. Debt Service Funds
•
Redevelopment Agency (RDA)
•
Resort Tax Fund
•
Special Revenues
•
Commission Retreat –June 4, 2014
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ADOPTED FY 2013/14
OVERVIEW
BUDGET
GENERAL FUND $264,643,000
Building
Human Resources/Labor Relations
Budget & Performance Improvement (OBPI)
Mayor and Commission
Capital Improvement Projects (CIP)
Neighborhood Services
City Attorney
Organization Development & Performance
City Manager
Initiatives
City Clerk
Planning
Communications
Parks & Recreation
Economic Development
Public Works Operations
Finance
Police
Procurement
Fire
Citywide Accounts
Tourism & Cultural Development
G.O. DEBT SERVICE FUND$ 5,932,000
ENTERPRISE FUNDS$160,819,000
Convention CenterParking Department
Water OperationsSewer Operations
StormwaterSanitation
Commission Retreat –June 4, 2014
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ADOPTED FY 2013/14
OVERVIEW
BUDGET
REDEVELOPMENT AGENCY (RDA) $ 19,840,000
City Center-CMB TIF only
Total General Fund, GO Debt, Enterprise & RDA Funds = $450,684,000
RESORT TAX FUND $ 59,507,000
2% Tax
1% Tax
-Eligible tourism–related-Debt Services City Center Bonds
exp. in General Fund -Quality of Life Capital Projects
-GMCVB & VCA-Arts
-Debt Service-Transportation
-Tax Collection
INTERNAL SERVICE FUNDS $ 75,481,000
Information Technology Risk Management
Central ServicesProperty Management
Fleet Management
Commission Retreat –June 4, 2014
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FY 2013/14 GENERAL FUND
REVENUES
Miscellaneous,
31,548,000 , 12%
Rents & Leases,
Property Taxes
6,945,000 , 3%
comprise 44% of
Parking Fund Contr.,
8,400,000 , 3%
total General Fund
Intergovernmental,
revenue
10,214,000 , 4%
Charges for Services,
10,315,000 , 4%
Property Taxes,
Other Taxes,
117,558,000 , 44%
22,765,000 , 9%
Licenses & Permits,
23,383,000 , 9%
Resort Tax Contr.,
32,965,000 , 12%
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FY 2013/14 GENERAL FUND
EXPENDITURES
Police and Fire
comprise 60%
Other
62,073,000
of expenditures
24%
Police
OTHER
98,435,000
Public Works 6,735,000 Building
Capital Improvement Projects 4,967,000
37%
11,945,000
Code Compliance 4,876,000
City Attorney 4,684,000 5%
Finance 4,644,000
Planning 3,467,000
City Manager 2,911,000
Tourism & Cultural Development 2,905,000
Budget & Performance Improvement 1,922,000
Human Resources/Labor Relations 1,822,000
Parks &
Mayor & Commission$ 1,719,000
City Clerk 1,344,000
Recreation
Procurement 1,137,000
30,059,000
Homeless Services 1,067,000
Operating Contingency 1,000,000
11%
Fire
Communications 836,000
Real Estate, Housing & Comm Dev 776,000
61,581,000
Community Services 492,000
23%
Org Dev & Performance Initiative 392,000
Transfers 5,310,000
Citywide Accounts 9,067,000
TOTAL $ 62,073,000
Commission Retreat –June 4, 2014
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FY 2013/14 GENERAL FUND
EXPENDITURES
Internal Service
Debt Service
Charges
1,321,000
35,288,000
0.5%
13.4%
Personnel
Services
Inventories
4,092,000
comprise 73%
1.5%
of expenditures
Operating
Expenditures
30,711,000
11.6%
Personnel Services
191,911,000
72.7%
Capital
770,000
0.3%
Commission Retreat –June 4, 2014
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General Fund Budget Trends
BEACH
MIAMI
GENERAL FUND
EXPENDITURES BUDGET TREND
General Fund Expenditures have grown by an average of 1.6% since FY 2007-08
280.0
260.0
240.0
220.0
200.0
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
-
2006-072007-082008-092009-102010-112011-122012-132013-14
Commission Retreat –June 4, 2014
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PUBLIC SAFETY TREND
Public Safety as a percentage of the budget has increased from
50% in FY 2006/07 to 60% in FY 2013/14
Police,
Police,
75,252,774 ,
98,435,000 ,
32%
37%
Other,
104,077,000 ,
40%
Other,
119,117,304 ,
50%
Fire,
43,303,018 ,
Fire,
18%
61,581,000 ,
23%
FY 2013/14 General Fund Budget
FY 2006/07 General Fund Budget
Commission Retreat –June 4, 2014
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EMPLOYEE GIVEBACKS
Employee givebacks over the last 7 years total almost $77 million
FY 2013/14 Adopted7-Year Total
General Fund$ ImpactsFTPT$ ImpactsFTPT
Public Safety($250,000) - -($8,021,095) (68.0) 1.0
Operations (186,000) (2.0) -($6,126,867) (66.0) (23.0)
Administrative Support (139,000) (0.5) -($3,186,694) (34.4) 1.0
Econ & Cultural Dev
(42,000) - -($1,235,426) (17.0) -
Citywide - - -($1,619,642) - -
Subtotal$ (617,000) (2.5) -($20,189,724) (185.4) (21.0)
Transfers - ($23,168,966) - -
Total$ (617,000) (2.5) -$ (43,358,690) (185.4) (21.0)
Internal Service Funds (373,000) (1.0) -($3,871,225) (38.1) -
Enterprise Funds (122,000) (2.0) 2.0 ($3,651,021) (53.0) 10.0
GRAND TOTAL REDUCTIONS$ (1,112,000) (5.5) 2.0 $ (50,880,936) (276.5) (11.0)
Estimated Employee Givebacks *($4,666,000)($25,933,360) - -
GRAND TOTAL REDUCTIONS AND GIVEBACKS$ (5,778,000) (5.5) 2.0 $ (76,814,296) (276.5) (11.0)
* FY 2012/13 Budgeted included $3.8 savings for Employee Givebacks, of which only $918K were achieved
Commission Retreat –June 4, 2014
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POSITION COUNT TREND
Positions are 10% less in FY 2013/14 than in FY 2006/07
2,300
2,200
2,100
2,000 2,127
2,050
1,900
2,007
1,917
1,800
1,927
1,903
1,700
1,894
1,794
1,600
1,500
1,400
1,509
1,300
1,441
1,200
1,399
1,3451,354
1,100
1,338
1,322
1,000
1,273
900
800
700
600
500
400
300
200
100
-
2006/072007/082008/092009/102010/112011/122012/132013/14
General FundAll Funds
Commission Retreat –June 4, 2014
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TOTAL COMBINED MILLAGE TREND
Current combined millage rate is 3.1 mills or 34% less than in FY 1997/98
and 1.6 mills or 20% less than in FY 2006/07
10.0000
9.2100
8.9830
9.0000
8.6980
8.5550
8.3760
8.3220
8.1730 8.1730
8.0730
8.0000
7.6730
7.0000
6.5025
6.4539
6.3477
Millage Rate
6.1163
5.9123
5.8970
5.8930
6.0000
5.0000
4.0000
3.0000
2.0000
1.0000
0.0000
Commission Retreat –June 4, 2014
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OVERLAPPING MILLAGE RATES
City of Miami Beach portion of property tax bill has
decreased as a percentage of the total bill from 33% to 30%
% of FY % of FY
Variance
06/07 13/14
from 06/07
OVERLAPPING TAX MILLAGEFY 06/07TotalFY 13/14Total
City of Miami Beach
7.673033%6.116330%-1.5567
Miami Dade County6.386027%5.298026%-1.0880
School Board8.105035%7.977039%-0.1280
0.42200.5000
Children's Trust2%2%0.0780
0.73600.4455
Other3%2%-0.2905
Total23.3220100%20.3368100%-2.9852
Commission Retreat –June 4, 2014
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PROPERTY TAX REVENUE TRENDS
Property Tax revenues are 16% less than in FY 2006/07
Property Taxes are 44% of GF Revenues compared to 59% in FY 2006/07
280,000,000
260,000,000
264.1M
240,000,000
256.3M
244.3M
220,000,000
237.7M
237.5M
235.4M
230.6M
226.3M
200,000,000
180,000,000
160,000,000
140,000,000
140.4M
120,000,000
125.5M126.0M
100,000,000
115.8M
112.2M114.5M117.6M
110.5M
80,000,000
60,000,000
40,000,000
44%
45%
53%
47%
59%54%51%
45%
20,000,000
-
2006/072007/082008/092009/102010/112011/122012/132013/14
Property TaxesAll Revenues
Commission Retreat –June 4, 2014
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FY 2013/14 Budget Highlights
BEACH
MIAMI
FY 2013/14 PROPERTY VALUES
Increase in certified values
6.9 percent Citywide and 6.8 percent outside the City Center Redevelopment Area –
•
as compared to a 5 percent increase Citywide in FY 2012/13
Jan. 1 2012 Jan. 1 2013
Value Value Change from 2012
(in billions)(in billions)Value (Budget)
As of July 1 As of July 1
2012 2013
(For 2012/13 (For 2013/14 $
Budget)Budget)(in billions)% Chg
RDA – City Ctr $ 3.6087 $ 3.8714 $ 0.2627
7.3%
South Pointe 3.61813.9148 $ 0.2967
8.2%
General Fund excl S.Pte15.845516.8704 $ 1.0249
6.5%
Total Citywide $ 23.0723 $ 24.6566 $ 1.5843
6.9%
Citywide Net of City Ctr
$ 19.464 $ 20.785 $ 1.3216 6.8%
Commission Retreat –June 4, 2014
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FY 2013/14 MILLAGE RATE
General Fund5.7551 mills
Renewal & Replacement0.1083 mills
Operating Millage Rate5.8634 mills(6.0909 FY 2012/13, 0.2275 decrease)
G.O.Debt Service0.2529 mills(0.2568 FY 2012/13, 0.0039 decrease)
Total6.1163 mills(6.3477 FY 2012/13, 0.2314 decrease)
Operating Millage Rolled-Back5.5158 mills
Rate
Commission Retreat –June 4, 2014
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FY 2013/14 MILLAGE RATE
FY2010/11rateincreaseof0.56millstohelpoffset$32milliondeficit
•
From5.6555to6.2155
•
ProposedGoal:Reducemillagerateto5.6555aspropertyvaluesrise
•
Millagereductionstodaterepresent63percentofthegoal
•
FY2011/12:0.05mills
•
FY2012/13:0.0746mills
•
FY2013/14:0.2275mills
•
Totaltodateis0.3521;0.2079remains
•
Each0.05millisapproximately$1million
•
Commission Retreat –June 4, 2014
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FY 2013/14 BUDGET DEVELOPMENT
Current Service Level budget gap
Original FY 2013/14 General Fund Current Service Level (CSL) budget
•
gap of $4.9 million as of July 8, 2013
CSLgapwasupdatedto$1.9milliondueto:
•
Employeegivebacksfromunionagreementsresultinginanet$4.6
•
millionsavings
Millageratedecreaseof0.2millsresultinginareductionof
•
propertytaxrevenueof$4.0million
Adjustmentstorevenuesandexpendituresforanet$2.3millionin
•
additionalrevenue
Commission Retreat –June 4, 2014
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FY 2013/14 BUDGET DEVELOPMENT
Approaches to balance $1.9 million gap in General Fund
Proposedefficienciesresultingin$617,000ofsavings
•
Proposedservicelevelenhancementstotaling$365,000
•
Additional$1,318,000setasideinreserves
•
Changesresultingin$3.0millionofadditionalrevenue
•
Additionalmillageratereductionof0.0275($550,000less)
•
$2.0millionincreaseinresorttaxtransferfortourismeligibleexpenditures
•
$1.2millionincreaseinparkingfundtransfer
•
Commission Retreat –June 4, 2014
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FY 2013/14 BUDGET DEVELOPMENT
TheAdoptedGeneralFundBudgetreflectsa$7.8millionor3.0
•
percentincrease
TheAdoptedGeneralFundoperatingbudgetisonly7percent
•
morethaninFY2006/07inspiteof16percentgrowthinCPI,
127percentgrowthinpensioncosts,andmanynewfacilities
andprojectscomingonline
TheAdoptedpropertytaxlevyisapproximately$25millionless
•
thaninFY2006/07
Commission Retreat –June 4, 2014
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FY 2014/15 Budget
Development Update
BEACH
MIAMI
FY2014/15 CSLBUDGET
The Current Service Level (CSL) budget
•
represents the cost of providing the same
level of service as in the prior fiscal year
CSL provides the baseline of funding for the
•
upcoming budget process
Commission Retreat –June 4, 2014
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FY2014/15 PROPERTY VALUES
The Property Appraiser provides preliminary2014
•
property values on June 1and certifiedvalues on
st
July 1
st
Preliminary 2014 property values increased 9.4%
•
Breakdown between General Fund and RDA areas pending
–
Certified values in July may be slightly different
–
A 9.4% increase results in an increase of $11 million
•
in General Fund property tax revenues
Commission Retreat –June 4, 2014
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FY 2014/15 CSL REVENUES
CSL revenues are estimated to increase
•
$12.7 million
Property tax revenue increase of $11 million
–
Building permits increase of $2.5 million
–
Electric utility and franchise tax increase of $1 million
–
Decrease in prior-year set-aside (one-time revenue) of
–
$1.8 million
Resort taxes contribution and Parking fund surplus
–
contribution assumed to be flat
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FY 2014/15 CSL EXPENDITURES
CSL expenditures are estimated to increase $10.7
•
million
Salary increases from 3% COLA and 0-2% merit
–
Additional step for Police Officer, Sergeant, and Lieutenant ranges;
•
hazardous duty pay
Additional step for Firefighter I range; hazardous duty pay
•
Approximate $1.9 million in net lower pension contributions
–
Due to savings in Fire & Police from last year’s pension reform offset by
•
a slight increase in MBERP pension contribution
Impact of annualized costs for items added during FY 2013/14
–
Impact of CSL department requests
–
Will continue to be reviewed by Administration
•
Commission Retreat –June 4, 2014
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FY 2014/15 PRELIMINARY CSL
Preliminary CSL
•
Revenue increase of $12.7 million
–
Expenditure increase of $10.7 million
–
Net surplus of $2.0 million
–
CSL revenues do not include potential increased
•
contributions from Resort Taxes or Parking Fund
CSL revenues will be updated with certified property values
•
in July and refinements in other revenues
CSL expenditure department requests will continue to be
•
reviewed by Administration
Commission Retreat –June 4, 2014
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NEXT STEPS
Finance and Citywide Projects Committee
•
meetings –tentatively scheduled
July 2
nd
–
July 16
th
–
August 15
th
–
August 22
nd
–
Review CSL, Capital Improvement Program,
•
potential enhancements, efficiencies, and
revenue adjustments
Commission Retreat –June 4, 2014
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NEXT STEPS
Two budget hearings in September
•
Tentatively scheduled for September 10and
th
–
September 29or 30
thth
Millage rates
•
Set preliminary millage rate on July 23
rd
–
Tentative millage rate at first public hearing
–
Final millage rate at second public hearing
–
Commission Retreat –June 4, 2014
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QUESTIONS
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