LTC 061-2023 Fiscal Year 2023 First Quarter Analysis061-2023
MIAMI BEACH
OFFICE OF THE CITY MANAGER
LTC NO .
LETTER TO COMMISSION
TO:
FROM:
DATE:
Honorable Mayor Dan Gelb ~~ymbers of the City Commission
Alina T. Hudak, City Manag ~ \
February 8, 2023
SUBJECT: Fiscal Year 2023 First Quarter Analysis
The purpose of this Letter to Commission (L TC) is to provide the Mayor and City Commission
with the status of the Fiscal Year (FY) 2023 operating budget for the first quarter ending December
31, 2022. In addition, this analysis includes projections through fiscal year-end September 30,
2023 .
It is important to note that certain assumptions for both revenues and expenditures have been
made in these projections, which will continue to be refined and adjusted as add itional data and
information becomes available .
SUMMARY
Based on the first quarter of the current fiscal year, revenue and expenditure projections through
September 30, 2023 reflect a year-end surplus of approximately $8.0 million in the General Fund,
a difference of 2%, and a $2.1 million year-end surplus in the Resort Tax Fund.
This analysis is a preliminary projection based on experience during the first quarter of the fiscal
year, which is not a definitive indication of the experience over the remainder of the current fiscal
year . It does, however, provide a first glance in identifying any potential concerns or opportunities
later in the fiscal year.
It is important to note that the City's adopted FY 2023-FY 2027 Capital Improvement Plan (CIP),
identified a total of approximately $1.6 billion in unfunded capital project needs over the next five
years. Further, based on the City's adopted financial policies regarding the Capital Reserve Fund
and Capital Funding, we are recommending that these funds be set aside for evaluation through
the FY 2024 budget process as follows :
• Resolution 2002-24764 requires that at least 50% of annual General Fund revenues in
excess of expenditures be transferred to the Capital Reserve Fund.
• Resolution 2006-26341 established a goal of funding at least 5% of the General Fund
budget for capital needs. In recent years, this policy has been not been met. In FY 2023 ,
approximately 1.5% ($6 .6 million) of the budget was transferred to Cap ital Reserve and
Pay-as-you-go to fund Capital needs . Had this been funded at the recommended 5%, the
transfer should have totaled approximately $19 million .
• Resolution 2006-26341 requires that one-time revenues shall be used for capital
expenditures or one-time expenditures, rather than funding recurring programs.
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 2 of 13
These policies were recommended by the City 's Budget Advisory Committee based on a
review of the Government Financial Officers Association's recommended best practices and
subsequently adopted by the City Commission.
As a result, I am recommending holding aside as much of the $8 million surplus as possible for
capital funding .
There have been a number of priority initiatives identified by the Commission and staff that will
have significant funding impacts . As we develop the FY 2024 budget, the full fiscal impact of the
recently approved collective bargaining agreements will need to be absorbed .
To the extent possible, it is recommended that requests, especially those with recurring impacts,
be evaluated for funding as part of the FY 2024 budget development process .
However, there are certain one-time needs that have been identified, which I am recommending
for immediate funding:
1. Issuance costs for the Arts and Culture Bonds approved by almost 65% of the voters on
November 8, 2022 (One-time) -$1 .5 million
2. Additional Costs for Commission Chambers Renovation Project (One-time) -$1 .1 million
3. Additional Refurbishment Costs for Fire Boat (One-time) -$233,000
I plan to bring these as budget amendments at the next Commission meeting .
Other capital projects with potential funding gaps include the 72 nd Street Community Complex,
Police Headquarter Facility, Fire Station 1, First Street, West Avenue and North Shore D (North
Beach Town Center). While the City has applied for grants for some of these projects, at this
point, the outcome of these applications is unknown.
Similarly, it is recommended that the projected Resort Tax Fund year-end surplus of $2 .1 million
be set-aside to fund capital project gaps, if realized at year-end .
RESERVES
The estimated General Fund reserve as of September 30, 2023 is $95 . 7 million , or 25.0%, which
equals 3 months of reserves based on the FY 2023 adopted budget. The reserve policy for the
General Fund is a required 2 months and a goal of 3 months. (Resolutions 2006-26341, 2019-
30954)
The estimated Resort Tax reserve as of September 30, 2023 is $37 .8 million, or 50.0%, which
equals 6 months of reserves based on the FY 2023 adopted budget. The reserve policy for the
2% Resort Tax Fund is a minimum of 2 months, with a goal of 6 months. (Resolutions 2014-
28543, 2019-30664)
Additional funding requirements for these reserves will be evaluated as part of the FY 2024 budget
development process .
ANALYSIS
All General Fund, Enterprise Funds, Internal Services Funds, and Special Revenue Funds
budgets are projected to be at or below their current FY 2022 amended budgets as of year-end
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 3 of 13
with revenues projected to be equivalent to or in excess of expenditures , except for specific
General Fund Departments and the Convention Center Enterprise Fund, which have been
detailed further in the forthcoming first quarter analysis .
GENERAL FUND
First Quarter Status
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2022 through December 31, 2022 reveals an operating budget surplus of approximately $135.9
million. While the actual surplus as of December 31, 2022 may seem unusual when compared to
the projection for the current fiscal year ending September 30 , 2023, it should be noted that the
City rece ives a large percentage of its annual ad valorem property tax revenues during the first
three months of the fiscal year. For FY 2023, ad valorem property tax revenues represent
approximately 59.3% of total budgeted revenues adopted and 80 .5% of actual revenues collected
during the first three months of the current fiscal year.
As of December 31 , 2022, total revenues collected were approximately 54.6% of the current FY
2023 amended budget, or $216 .8 million . Conversely, expenditures were approximately 20.4% of
the current FY 2023 amended budget, or $80.9 million . It is important to note that there are often
delays in expenditures until the close-out of the fiscal year.
FY 2023 Budget
1/4 of Amended Actuals as of Variance from 1/4
General Fund Adopted Budget Amended Budget Budget 12/31 /22 Amended Budget
O\er I (Under)
Re\enues $ 382 ,618 ,000 $ 397,451 ,000 $ 99,362,750 $ 216 ,810 ,482 $ 117,447,732
Ex penditures $ 38 2,618,000 $ 397,451 ,000 $ 99,362 ,750 $ 80 ,931 ,525 $ (18,431 ,2 25)
Excess of Revenues Over/(Under) Expenditures $ 135,878,957
Year-End Projections
Year-end operating revenues and expenditures projected through September 30 , 2023 provide a
more realistic indication of any estimated year-end surpluses or shortfalls as of this point in time .
While actual revenues and expenses reflected in this analysis are as of December 31, 2022, these
projections have incorporated more current information, if available.
A summary of the preliminary General Fund revenues and expenditures as of December 31, 2022
with projections through September 30, 2023 reflects a projected year-end surplus of
approximately $8.0 million, a variance of 2% from the adopted FY 2023 budget.
FY 2023 Budget
General Fund Adopted Budget Amended Budget Projected Difference % O\er I (Under)
Re\enues $ 382 ,618,000 $ 397,451 ,000 $ 400 ,502 ,000 $ 3 ,051 ,000 0 .8%
Ex penditures $ 382 ,618 ,000 $ 397,451 ,000 $ 392 ,532 ,000 $ (4 ,919 ,000) -1 .2%
Excess of Revenues Over/(Under) Expenditures $ 7,970,000 2.0%
Operating Revenues
For FY 2023 , property tax collections are being projected at 95.0% of total property taxes
assessed, which is consistent with the original adopted budget allowing for discounts and a level
of adjustment for appeals that is consistent with historical levels . The impact of these appeals and
adjustments realized for the FY 2023 budget will be provided by the Miami-Dade County Property
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 4 of 13
Appraiser in July 2023 when the City's certified property values are received.
As of December 31, 2022, actual operating revenues collected were approximately 54.6% of the
current amended budget, or $216 .8 million, with operating revenues through fiscal year-end
September 30, 2023 projected at $400.5 million, which is approximately 0.8%, or $3 .1 million,
above the current amended budget. As previously mentioned, these projections are not only
based on experience during the first three months of the fiscal year, but also other information
available.
Revenue categories with significant variances to budget in excess of 10 .0%, or $300,000, are
further explained below:
Other Taxes -This category includes franchise taxes for gas and electric, as well as utility
taxes for telephone, electricity, and gas and is projected to be above the current amended
budget by 6.6%, or $1. 7 million, primarily due to franchise and utility taxes for electricity, gas,
and telephone trending higher than originally anticipated based on current economic activity.
Licenses and Permits -This category includes business tax receipts, licenses/special use
permits, and sidewalk cafe fee/outdoor dining concession program revenues and is projected
to be above the current amended budget by 4.7%, or $843,000, primarily due to increased
revenues from the recently approved outdoor dining concession program that was
implemented for FY 2023, as well as fire, planning, and public works plans review services
that continue to trend higher than anticipated resulting from ongoing real estate and
economic development activity.
Charges for Services -This category includes revenues from activities and programs
offered by the Parks and Recreation Department such as after school and summer classes,
as well as the operations of the Miami Beach and Normandy Shores golf courses, public
safety, passport, ambulance/rescue, and lot clearing services, and is projected to be above
the current amended budget by 4.5%, or $659,000 primarily due to revenues collected from
ambulance/rescue services trending above prior year levels, as well as golf course
operations at both the Miami Beach and Normandy Shores golf courses continuing to trend
higher than originally anticipated based on current economic activity.
Fines and Forfeits -This category, among other things, includes traffic fines, parking fines,
fire department violations and false alarm fees, and code enforcement fines and is projected
to be above the current amended budget by 30.7%, or $388,000, primarily due to fire
department false alarm fees and code enforcement fines trending higher than budget and
higher than prior years.
Interest -This category is comprised of various sources of interest income derived from the
City's current investments and is projected to be 9.4%, or $526,000, above the current
amended budget due to higher than anticipated interest rates.
Miscellaneous -This category includes revenues from various categories such as
chargebacks to capital projects for CIP to department operations, concessions,
reimbursements, and other miscellaneous revenues that include beach access fees and
advertising. FY 2023 revenues are projected to be 8.7%, or $1.4 million, below the current
amended budget primarily due to an anticipated decrease in the CIP chargeback to capital
projects. Currently, a flat 6.5% fee is assessed to capital projects to calculate the direct and
indirect support associated with managing a capital project, which has been in existence for
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 5 of 13
over 10 years. The Administration retained Matrix Consulting to explore and evaluate
alternative allocation methodologies that will be presented to the Finance and Economic
Resiliency Committee (FERC) on February 17, 2023 for consideration. Should the FERC
support the methodology recommended by Matrix, which is to allocate actual costs based on
hours spent on capital projects, it is anticipated that approximately $600,000 in CIP costs will
need to be absorbed by the General Fund, based on FY 2022 experience. Further, the study
recommends that the cost of development work on unbudgeted capital projects should be
charged to the appropriate fund, including the General Fund, rather than as overhead costs
to budgeted capital projects, which is anticipated at $900,000. As a result, the projected
chargeback to capital projects for CIP is projected to be below budget for FY 2023.
For a detail of General Fund revenues by category, refer to the attached Exhibit A.
Operating Expenditures
As of December 31, 2022, actual expenses were approximately 20.4% of the current FY 2023
amended budget, or $80.9 million, with operating expenditures through fiscal year-end September
30, 2023 projected at $392.5 million, which is approximately $4.9 million below the current FY
2023 amended budget. As previously mentioned, these projections are based on an analysis of
the first quarter, as well as any additional information that may be available.
General Fund expenditures by department projected to exceed budget or with variances to budget
in excess of 10.0%, or $300,000, are further explained below:
Parks and Recreation -The department is projected to be 3.0%, or $1.3 million, below the
current amended budget primarily due to projected savings in personnel services
expenditures resulting from numerous full-time and part-time budgeted positions that have
been and/or remain vacant in the current fiscal year, due to recruiting challenges.
Parks and Recreation
FY 2023 FY 2023 Projected vS
Amended Budget Projected Amended % O1.€r / (Under)
Budget Variance
Expenditures $ 44 ,084,000 $ 42,770,000 $ (1 ,314,000) -3.0%
Public Works -The department is projected to be below the current amended budget by
9.4%, of $1.6 million, resulting from projected savings in personnel services expenditures due
to numerous vacancies in budgeted full -time positions within the department's Engineering ,
Streets and Street Lighting, and Greenspace Management divisions due to recruiting
challenges. Further, savings are also projected in greenspace operating expenditures due to
savings anticipated in grounds maintenance services.
Public Works
FY 2023 FY 2023 Projected vS
Amended Budget Projected Amended % O1.€r / (Under)
Budget Variance
Expenditures $ 17 ,112,000 $ 15,508,000 $ (1 ,604 ,000) -9.4%
Fire -The department is projected to be above the current amended budget by 2.4%, or $2.4
million, resulting from additional personnel services expenditures associated with the
collective bargaining agreements that were approved by the City Commission. It is important
to note that while the department is projected to exceed its current amended budget, funding
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 6 of 13
totaling approximately $5. 7 million was budgeted in a centralized Citywide Accounts budget
pending approval of all the agreements . Should these projections be realized, the appropriate
bud et amendment will be recommended at ear-end
Expenditures
FY 2023
Amended Budget
$ 101 ,803 ,000 $
FY 2023
Projected
Projected v.s
Amended
Budget Variance
104,232,000 $ 2,429,000
% Over I (Under)
2.4%
Citywide Accounts -Citywide Accounts are a category of budgeted expenditures related to
the City's overall operations that are not readily identifiable to any specific department. These
accounts are projected to be 11.1 %, or approximately $2. 7 million, below the current amended
budget, primarily due to the amount allocated for collective bargaining in the FY 2023
operating budget. With the ratification of the collective bargaining agreements, these
expenditures are now accounted for in the appropriate General Fund departments' budgets.
Citywide Accounts
FY 2023 FY 2023 Projected v.s
Amended Budget Projected Amended % Over I (Under)
Budget Variance
Expenditures $ 24,539,000 $ 21 ,827,000 $ (2,712,000) -11 .1%
While the above-listed General Fund departments comprise those projected to exceed their
current amended budgets or with significant variances to budget in excess of 10.0%, or $300,000,
all other General Fund departments are projected to have savings at year-end that may be
realigned w ith in the General Fund to address the department overages projected above, should
t hese projections be realized at year-end. As additional information becomes available , these
projections will continue to be further refined.
For a detail of General Fund expenditures by department, refer to the attached Exhibit A
ENTERPRISE FUNDS
The City accounts for those goods and services provided by a particular department to external
users for which a fee is charged as Enterprise Funds. The City's Sanitation, Water, Storm Water,
Sewer, Parking, Convention Center, and Building operations comprise this category of Proprietary
Funds.
An analysis of the actual three-month operating expenses for the period October 1, 2022 through
December 31, 2022, reveals that all Enterprise Funds have actual expenses that are less than
one quarter of their current FY 2023 amended budgets . It is important to note that this is not
representative of typical trends for a full fiscal year, as there is often a lag in processing of
expenditures, particularly those billed by outside entities for services provided.
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 7 of 13
NTERPRISE FUNDS
Sanitation Sewer Storm Water
FY 2023 Adopted Budget 23 ,860 ,000 57 ,396 ,000 34 ,103,000
Budget Amendment -10/26/22 0 0 0
Budget Amendment -11 /30/22 961 ,000 1,784 ,000 863 ,000
Bud et Amendment -02101 /22 0 0 0
FY 2023 Amended Bud et 24 ,821 ,000 59 ,180 ,000 34 ,966 ,000
1/4 Adopted Budget 5,965 ,000 14,349 ,000 8,525 ,750
1/4 Amended Bud et 6,205 ,250 14,795 ,000 8,741,500
Revenues as of 12131 /22 6,303 ,283 15 ,224.404 8,889.492
Ex enditures as of 12131 /22 5,014,899 14 ,186,677 2,867,765
Expenditures Above /(Below) 1/4 Amended Budget {1,190 ,351) (608 ,323) (5,873 ,735 )
% Variance -4 .8% -1 .0% -16 .8%
Water Parking Building Convention
Center
36 ,577 ,000 46 ,617 ,000 17,993 ,000 29,407 ,000
0 0 0 0
3,355,000 841 ,000 97,000 200,000
0 0 0 0
39 ,932 ,000 47,458 ,000 18,090 ,000 29,607,000
9,144 ,250 11 ,654 ,250 4,498 ,250 7,351,750
9,983 ,000 11,864,500 4,522 ,500 7,401,750
10 ,133,490 12,031 ,194 4,705 ,293 11 ,365 ,013
8,255,662 6,101 ,341 3,737.436 1,461,900
(1,727 ,338 ) (5 ,763,159 ) (785 ,064) (5,939 ,850)
-4 .3% -1 2.1% -4 .3% -20.1%
Year-end operating revenue and expenditure projections through September 30, 2023 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time.
While the actual revenues and expenses presented above are as of December 31, 2022, the
year-end projections incorporate more current information that may be available.
Revenues for all Enterprise Funds are projected to be equivalent to or in excess of expenditures
as of year-end. In addition, all Enterprise Fund budgets are projected to be under budget, except
for Convention Center operations. Both revenues and expenditures for the Convention Center
Fund are projected to be above budget, as further detailed below.
ENTERPRISE FUNDS
Sanitation Sewer Storm Water Water Parking Building Convention
Center
FY 2023 Adopted Budget 23,860 ,000 57,396,000 34,103,000 36,577,000 46 ,617 ,000 17 ,993 ,000 29 ,4 07 ,000
Budget Amendment -10/26/22 0 0 0 0 0 0 0
Budget Amendment -11/30/22 961 ,000 1,784 ,000 86 3,000 3,355 ,000 841,000 97 ,000 200 ,000
Budget Amendment -02 /01 /22 0 0 0 0 0 0 0
FY 2023 Amended Budget 24,821,000 59 ,180 ,000 34 ,966 ,000 39 ,93 2,000 47,458 ,000 18,090,000 29 ,607,000
FY 202 3 Projections :
Charges for Services 21,462 ,000 60 ,070 ,000 35 ,2 61 ,000 39 ,153,000 46 ,959 ,000 15,221 ,000 24,344 ,000
Other 3,029 ,000 1,941 ,000 1,2 23,000 2,435,000 2,731 ,000 2,692,000 19.427,000
FY 202 3 Revenue Proiections 24.491 ,000 62 ,011 ,000 36,484 ,000 41 ,588 ,000 49 ,690 ,000 17,91 3,000 43,771 ,000
$ Over/(Underl Amended Bud!let (330,000) 2,831,000 1,518,000 1,656,000 2,232,000 (177,000) 14,164,000
% O verHUnder\ Amended Budoet -1.3% 4.8% 4.3% 4.1% 4.7% -1 .0% 47 .8%
FY 202 3 Expenditure Proiections 24.491 ,000 58 ,868 ,000 34,417 ,000 39.423 ,000 45.406,000 17,913 ,000 33 ,268 ,000
$ Over/lUnder) Amended Budget (330,000) (312,000) (549,000) (509,000) (2,052,000l 1177,000l 3,661,000
% Over/(Under) Amended Budoet -1.3% -0 .5% -1 .6% -1.3% -4 .3% -1 .0% 12.4 %
Revenues Over/(Under) Expenditures 0 3,143,000 2,067,000 2,165,000 4,284,000 0 10,503,000
Convention Center -The Convention Center Fund budget is projected to be above the
current amended budget by approximately $3. 7 million, or 12.4%, primarily due to an increase
in the number of events (55) that have been or are scheduled to be held this fiscal year
compared to the 44 events that were originally anticipated for FY 2022 when the budget was
developed . Although expenditures are projected to exceed the current amended budget,
revenues are also projected to exceed the current amended budget resulting in a projected
surplus of approximately $10.5 million that would be available to be set aside for renewal and
replacement of Convention Center assets and/or future operating and other expenditure
obligations should these projections be realized at year-end . While a portion of the projected
surplus is attributed to the projected increase in revenues resulting from the additional events
anticipated for the current fiscal year, a significant portion is attributed to a Convention
Development Tax (CDT) bonus of $10.2 million that is anticipated to be received by the City
for FY 2023 from a portion of the increased Convention Development Tax receipts collected
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 8 of 13
by Miami-Dade County in accordance with the Amended lnterlocal Cooperation Agreement
that was approved by the City Commission on November 19, 2014, through Resolution No.
2014-28836. Due to changes in the scheduling of events, the surplus projected as of the first
quarter may vary as of year-end; therefore, the Convention Center's operations will continue
to be monitored over the coming months .
As additional information becomes available these projections will continue to be further refined.
INTERNAL SERVICE FUNDS
The City accounts for goods and services provided by one department to other departments
citywide on a cost reimbursement basis as Internal Service Funds. Central Services, Fleet
Management, Information Technology, Property Management, Risk Management (Self
Insurance), Medical and Dental, and the Office of the Inspector General comprise this category
of Proprietary Funds.
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2022 through December 31, 2022, reveals that all Internal Service Funds have actual expenses
that are less than one quarter of their current FY 2023 amended budgets. Similar to the Enterprise
Funds, this is not representative of typical trends for a full fiscal year, as there is often a lag in
processing of expenditures, particularly those billed by outside entities for services provided .
NTERNALSER~CEFUNDS
Central Fleet Information Inspector Property Risk Medical&
Dental Services Management Technology General Management Management Insurance
FY 2023 Adopted Budget 1,044,000 17,761,000 19,821,000 1,726,000 12,072,000 23 ,846,000 46,159,000
Budget Amendment -10/26/22 0 0 0 0 0 0 0
Budget Amendment -11 /30/22 20,000 7,167,000 873,000 454 ,000 777 ,000 1,016,000 0
Budqet Amendment -02/01/22 0 0 0 0 0 0 0
FY 2023 Amended Budaet 1,064,000 24,928,000 20,694,000 2,180,000 12,849,000 24 ,862,000 46 ,159,000
1/4 Adopted Budget 261,000 4,440,250 4,955,250 431,500 3,018 ,000 5,961,500 11 ,539,750
1/4 Amended Budaet 266,000 6,232,000 5,173,500 545 ,000 3,212,250 6,215,500 11,539,750
Revenues as of 12/31 /22 258,410 3,096,769 4,630,500 431 ,000 2,947,960 5,749,651 10,760,760
Expenditures as of 12/31/22 202,336 1,529,951 4,253,656 394 ,782 1,689,976 4,177,931 9,044,265
Expenditures Above/(Below) 1/4 Amended Budget (63 ,664) (4,702,049) (919,844) (150,218) (1,522 ,274) (2,037,569) (2,495,485)
% Variance -6.0% -18.9% -4.4% -6.9% -11 .8% -8.2% -5.4%
Year-end operating revenue and expenditure projections through September 30, 2023 provide a
more realistic indication of any anticipated year-end surpluses or shortfalls as of this point in time.
While the actual revenues and expenses presented above are as of December 31, 2022, the
year-end projections incorporate more current information that may be available.
Revenues for all Internal Service Funds are projected to be equivalent to or in excess of
expenditures as of year-end . Internal Service Fund budgets projected to exceed budget are
further detailed below.
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 9 of 13
TERNAL SERVICE FUNDS
Central Fleet Information
Services Management Technology
FY 2023 Adopted Budget 1,044 ,000 17 ,761,000 19 ,821 ,000
Budg et Amendment -10/26/22 0 0 0
Budget Amendment -11 /30/22 20 ,000 7,167,000 873 ,000
Budqet Amendment -02/01 /22 0 0 0
FY 2023 Amended Budget 1,064 ,000 24 ,928 ,000 20 ,694 ,000
FY 2023 Projections :
Charges for Services 1,038 ,000 16 ,936,000 18,563 ,000
Other 12 ,000 7,752 ,000 1,990,000
FY 2023 Revenue Proiections 1,050,000 24,688,000 20,553,000
$ Over/lUnderl Amended Budaet (14,000) (240,000) (141,000}
% Overl(Under) Amended Budqet -1 .3% -1 .0% -0 .7%
FY 2023 Exoenditure Proiections 1,050,000 24,688,000 20,553 ,000
$ Over/(Under) Amended Budget (14,000) (240,000) (141,000)
% Ove rl(Under) Amended Budaet -1 .3% -1 .0% -0.7%
Revenues Over/lUnder) Exoenditures 0 0 0
Inspector Property Risk Medical&
Dental General Management Management Insurance
1,726,000 12 ,072 ,000 23,846 ,000 46 ,159,000
0 0 0 0
454 ,000 777 ,000 1,016 ,000 0
0 0 0 0
2,180 ,000 12,849,000 24,862,000 46,159,000
1,724 ,000 11 ,778,000 22 ,761,000 0
389,000 774,000 3,637,000 45,315,000
2,113,000 12,552,000 26,398,000 45,315,000
(67,000} (297,000} 1,536,000 (844,000)
-3 .1% -2 .3% 6.2 % -1 .8%
2,113,000 12,552 ,000 26,398 ,000 45,315,000
(67,000) (297,000) 1,536,000 (844,000
-3 .1% -2.3% 6.2% -1.8%
0 0 0 0
Risk Management -This fund is projected to be 6.2%, or $1.5 million, above the current
amended budget, primarily due to unforeseen increases in general, law enforcement, and
workers compensation claims, as well as legal fees for general liability claims trending
significantly higher than budget. Since claims can fluctuate, the trend will continue to be
monitored over the coming months. If these trends continue at current levels for the remainder
of the fiscal year, this will be addressed at year-end with the use of prior year fund balance in
the Risk Management Fund.
These projections will continue to be refined as additional information becomes available.
SPECIAL REVENUE FUNDS
Special Revenue Funds consist of revenues and expenditures which are legally restricted or
committed for specific purposes, other than debt service and/or capital projects. Special Revenue
Funds include Resort Tax, as well as Transportation and People's Transportation Plan (PTP)
Fund operations, 7th Street Garage operations, 5th & Alton Garage operations, the Tourism and
Hospitality Scholarship Program, Information and Communications Technology Fund, Education
Compact Fund, Franchise Waste Haulers and Sustainability Contributions, the Residential
Housing Program, Red Light Camera Program operations, Emergency 911 Fund, Miami Beach
Cultural Arts Council, Normandy Shores and the City's three Security Guard Special Taxing
Districts (Biscayne Point, Biscayne Beach, and Allison Island), Miami City Ballet, Art in Public
Places (AiPP) operations, Tree Preservation and Commemorative Tree Trust Fund, Beachfront
Concession Initiatives Program, Beach Renourishment, Resiliency, Sustainability and Resiliency,
and Biscayne Bay Protection Trust Funds, Police Unclaimed Property and Crash Report Sales
Funds, Police Confiscation Trust Funds (Federal and State), Police Training and School
Resources Fund, the Adopt-a-Bench Program, and the Off-Duty Services Fund.
An analysis of the actual three-month operating revenues and expenses for the period October
1, 2022 through December 31, 2022, reveals that all Special Revenue Funds have actual
expenses that are less than one quarter of their current FY 2023 amended budgets primarily due
to expenditures that are typically incurred in the latter part of the fiscal year, except for the Art in
Public Places (Ai PP) Fund that incurred one-time costs for the Legacy Purchase Program during
the first quarter of the fiscal year. Like other funds, it is important to note that actuals incurred
through December 31, 2022 are not typically representative of trends for a full fiscal year.
Year-end operating revenue and expenditure projections through September 30, 2023 provide a
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 10 of 13
more realistic indication of any anticipated year-end su rpluses or shortfalls as of this point in time.
While the actual revenues and expenses presented above are as of December 31, 2022, the
year-end projections incorporate more current information that may be available.
Revenues for all Special Revenue Funds are projected to be equivalent to or in excess of
expenditures as of year-end. Further, all Special Revenue Funds are projected to be below their
current amended budgets.
RESORT TAX FUND
The City's Resort Tax Fund is primarily supported by taxes collected pursuant to Chapter 67-930
(Section 6) of the Laws of Florida , as amended, and Section 5.03 of the City of Miami Beach
Charter, as amended. This legislation authorizes the use of Resort Taxes for the promotion of the
tourism industry, which includes, but is not restricted to the following : Publicity, advertising, news
bureau, promotional events, convention bureau activities, capital improvements and the
maintenance of all physical assets in connection therewith; and for the payment of the reasonable
and necessary expenses of collecting, handling , and processing of said tax.
Typically, the City has considered the following services as "Services Related to the Promotion of
Tourism:"
• Police Officers serving entertainment areas
• A portion of Fire Rescue services from Fire Stations 1 & 2
• Ocean Rescue services
• Sidewalk pressure cleaning in South , Middle and North Beach visitor areas
• South Beach sanitation
• Enhanced Code Compliance/Enforcement provided to respond to evening entertainment
area violations and staffing of special events
• Other Code Compliance/Enforcement activities in tourism and visitor related
facilities/areas
• Tourism and Cultural Development Department and the Cultural Arts Council
• Museums and Theatres (Garden Center, Bass Museum, Colony and Byron Carlyle
Theatres)
• Golf courses (net of revenues)
• Memorial Day and other special event costs
• Homeless services
• July 4th , Visitor Center funding, Holiday Lights, MDPL, Orange Bowl, etc.
These allowable uses have led to increased tourism-related activities, such as special events
including Art Basel and the Air and Sea Show .
2% Resort Tax
Based on the first three months of actual collections, total two percent Resort Tax revenues for
FY 2023 are projected to be 3 .0%, or $2 .3 million , above the current amended budget as of year-
end , with the remaining months in the current fiscal year conservatively projected at 90 .0% of FY
2022 collections.
Total FY 2023 two percent Resort Tax expenditures are projected to be 0.3%, or $227,000, above
the current amended budget as of year-end, due to a $293,000 increase in the combined
contributions to the Miami Beach Visitor and Convention Authority (VCA) and Greater Miami
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 11 of 13
Convention & Visitors Bureau (GMCVB) that are based on a percentage of two percent Resort
Tax collections projected above budget. This is partially offset by a $66,000 decrease attributed
to personnel-related savings from several vacancies that specific departments funded by the
Resort Tax Fund are in the process of trying to fill, as well as other miscellaneous departmental
operating expenditures.
1% Resort Tax (Quality of Life)
The proceeds of the one percent bed tax, as adopted through Resolution No. 2018-30512, and
continuing in FY 2023, unless amended by the City Commission, are to be utilized as follows:
60% allocated for Transportation initiatives in tourist-related areas; 10% allocated equally among
North Beach, Middle Beach and South Beach for capital projects that enhance Miami Beach's
tourist related areas; and 10% allocated to various arts and cultural programs.
One percent bed tax revenues for FY 2023 are projected to be 4.4%, or $768,000, above the
current amended budget as of year-end. Concurrently, since transfers for Transportation
initiatives in tourism-related areas, North, Middle, and South Beach quality of life projects, and
various arts and cultural programs that are funded by the Cultural Arts Council are directly based
on the proceeds of the one percent bed tax, the related expenditures are equally projected to be
4.4%, or $768,000, above the current amended budget as of year-end, of which $460,000 is
allocated to Transportation initiatives in tourism-related areas, $231,000 is allocated to North,
Middle, and South Beach quality of life projects equally, and $77,000 is allocated to various arts
and cultural programs that are funded by the Cultural Arts Council.
1% Resort Tax (Convention Center)
To conclude, the proceeds of the additional one percent bed tax levied solely for the purposes of
expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center,
including debt service related thereto, as well as providing Capital Renewal and Replacement
funding for the Miami Beach Convention Center, similarly are projected to be 4.4%, or $768,000,
above the current amended budget as of year-end. Since the proceeds of the additional one
percent bed tax must first provide for the payment of debt service and any excess, based on
proceeds, be set-aside for Capital Renewal and Replacement funding for the Miami Beach
Convention Center, additional one percent bed tax expenditures are also projected to be 4.4%,
or $768,000, above the current amended budget as of year-end.
Total Resort Tax
Overall, due to actual Resort Tax collections exceeding budget for the three months of the fiscal
year and collections for the remaining months of the current fiscal year projected at 90.0% of FY
2022 collections, combined Resort Tax revenues are projected to be 3.5%, or $3.9 million, above
the current amended budget as of year-end, while expenditures are projected to be 1.6%, or $1.8
million, above the current amended budget resulting in a projected surplus of $2.1 million. The
Administration recommends these additional funds be set-aside to fund tourism-eligible capital
project gaps during the FY 2024 budget development process, if realized at year-end.
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 12 of 13
RESORT TAX FUND
FY 2023 FY 2023 Actuals as of Adopted Amended 12/31/22 Budget Budget
Revenues
2% Resort Tax 71 ,499,000 71,499,000 11 ,889,485
Miscellaneous Revenues 251 ,000 251 ,000 5,832
Fund Balance/Retained Earnings/PY Surplus 3,955,000 4,819,000 0
1% Resort Tax (OOL) 17,372 ,000 17,372 ,000 2 ,380,979
Add itional 1% Resort Tax for Convention Center 17,372 ,000 17,372 ,000 2 ,380,979
Total Revenues 110,449,000 111,313,000 16,657,275
Expenditures
General Fund Contribution 39 ,227 ,000 39 ,227 ,000 9 ,806,750
Sanitation Fund Contribut ion 3,969,000 3,969 ,000 992 ,250
Contribution to GMCVB 8.864,000 8,864.000 918,966
Contribution to VCA 3,433,000 3,433.000 253,694
Contribution to Mt . Sina i 1,000,000 1,000.000 0
Other Operating/Other Uses 19,002 ,000 19,740,700 1,790,054
Marketing 210,000 335,300 22 ,100
Transfer to NB , MB . SB Capital , Transp. and Arts (OOL) 17 ,372 ,000 17 ,372,000 2,380,979
Addt'l 1% Conv. Center Debt Service & Ca Ren & Re I. 17 ,372 ,000 17,372,000 0
Total Expenditures 110,449,000 111 ,313,000 16,164,792
Excess of Revenues Over/ Under Ex nditures 0 0 492,483
CONCLUSION
% Actual of Ovar/(Under) %
Ovar/(Under) Amended Amended Amended Budget Budget Budget
16.6% 73,532 ,000 2,033,000 2.8%
2.3% 539,000 288,000 114.7%
0 .0% 4,819,000 0 0.0%
13.7% 18,140,000 768,000 4.4%
13.7% 18,140,000 768,000 4.4%
15.0% 115,170,000 3,857,000 3.5%
25.0% 39 ,227 ,000 0 0.0%
25.0% 3,969,000 0 0.0%
10.4% 9.060,000 196,000 2.2%
7.4% 3.530,000 97 ,000 2.8%
0 .0% 1.000,000 0 0.0%
9 .1% 19,704,700 (36,000) -0.2%
6 .6% 305,300 (30,000) -8.9%
13.7% 18,140,000 768,000 4.4%
0 .0% 18,140 ,000 768,000 4.4%
14.5% 113,076,000 1,763,000 1.6%
2,094,000 2,094,000
All General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets
are projected to be at or below their current FY 2023 amended budgets as of year-end with
revenues projected to be equivalent to or in excess of expenditures, except for specific General
Fund Departments and the Convention Center Enterprise Fund, as detailed in the aforementioned
analysis above.
The assumptions in the first quarter projections will continue to be proactively monitored between
now and the development of the second quarter projections, as well as during the development
of the FY 2024 budget,
ATH/KGB/TOS
Letter to Commission -Fiscal Year 2023 First Quarter Analysis
Page 13 of 13
EXHIBIT A
CITY OF MIAMI BEACH
FY 2023 GENERAL FUND
1ST QUARTER
FY 2023 FY 2023 Actuals as of Adopted Amended 12/31/22 Budget Budget
REVENUES
Ad Valorem T axes 220,605,000 220,605,000 168,307,091
Ad Valorem Taxes -Pay-As -You-Go Capital 3,974,000 3,974,000 3,974,000
Ad Valorem T axes -Capital Renewal & Replacement 1,944,000 1,944 ,000 1,944,000
Ad Valorem Taxes -Normandy Shores 282 ,000 282 ,000 282,000
Other T axes 25,010,000 25,010,000 7,466,397
Licenses and Perm its 18,040,000 18,040,000 4 ,095,229
lntergovernm ent al 14,175,000 14,175,000 3,171 ,095
C harges for Services 14,489,000 14,489,000 4 ,083,677
Fines and Forfeitures 1,264,000 1,264,000 473,188
k'l terest 5,577,000 5,577,000 3,384,879
Rents and Leases 6 ,967,000 6 ,967,000 1,708,883
Miscell aneous 15,566,000 15,753,000 4,772,542
Other-R esort Tax Contribution 39,227 ,000 39,227 ,000 9,806,750
Other-Non-Operating R evenues 13,905,000 13,905,000 3,340,750
Fund Balance/Retained Earninas/PY Surolus 1,593,000 16 ,239,000 0
TOT AL REVENUES 382,618,000 397,451 ,000 216,810,482
EXPENDITURES
Mayor & Commission 2,809,000 2 ,809,000 564,049
C ity Manager 4,290,000 4 ,290,000 818,986
Marketing and Communications 2,913,000 2 ,983,000 604,519
Office of Management and Budget 1,678,000 1,67 8,000 317,574
Org. Dev P erform ance Initia tives 1,944 ,000 3,32 1,000 244,032
Finance 7,768,000 8,042,000 1,659,622
Procurement 3,015,000 3,101 ,000 609,530
Human Resources/Labor R elations 3,124,000 3,124,000 670,247
C ity C lerk 1,914,000 1,933 ,000 419,47 1
C ity Attorney 7,010,000 7,654,000 1,307,478
Housing & Comm unity Services 4 ,291 ,000 6 ,057,000 749,381
Planning 5,790 ,000 6 ,07 4 ,000 1,178,033
E nvironment & Sustainab ility 2 ,139,000 2,386 ,000 272,290
Tourism and Culture 3,566,000 3,661 ,000 566,968
Economic Development 2 ,571 ,000 2,993,000 342,988
Code Compliance 6 ,872,000 6 ,886,000 1,572,991
Parks & R ecreation (including Golf courses) 42,998,000 44 ,084,000 7,458,873
Property Management 3,698,000 3,848,000 956,834
Public Works 16,086,000 17,112,000 2 ,896,484
Capital Improvement Projects 5 ,838,000 6 ,003,000 1,287,291
Po lice 130 ,195,000 133,070,000 30,2 17,130
Fire 100,220,000 101 ,803,000 24 ,244,026
Citywide (net of in d ividual items below): 15,389,000 18,039,000 1,973,378
Normandy Shores 282 ,000 282,000 0
Capita l Renewal & R eplacement 1,944,000 1,944,000 0
Info & Comm T echnology Fund 300,000 300,000 0
Pav-As-You-Go Capital Fund 3,974 ,000 3,974,000 0
TOTAL EXPENDITURES 382,618,000 397,451 ,000 80,932,174
EXCESS OF REVENUES OVER/(UNDER) EXPENDITUR 0 0 135,878,308
¾Actual of I Over/(Under) 'II,
Over/(Under) Amended ' Amended Amended Budget ... . Budget Budget
76.3% 220,605,000 0 0.0%
100.0% 3,974,000 0 0.0%
100.0% 1,944,000 0 0.0%
100.0% 282 ,000 0 0.0%
29.9% 26,668,000 1,658,000 6.6 %
22.7% 18,883,000 843,000 4.7%
22.4% 14,282 ,000 107,000 0.8%
28.2% 15,148,000 659,000 4.5%
37.4% 1,652,000 388,000 30.7%
60.7% 6 ,103,000 526,000 9.4%
1.0% 7,200,000 233,000 3.3%
30.3% 14,390,000 (1,363,000) -8.7%
25.0% 39,227,000 0 0.0%
24.0% 13,905,000 0 0.0%
0.0% 16,239,000 0 0 .0%
54.6% 400,502,000 3,051,000 0.8%
20.1% 2,763,000 (46,000) -1.6%
19.1% 4 ,085,000 (205,000) -4.8%
20.3% 2 ,951 ,000 (32,000) -1 .1%
18.9% 1,565,000 (113,000) -6.7%
7.3% 3,262,000 (59,000) -1.8%
20.6% 8 ,032,000 (10 ,000) -0.1%
19.7% 3,004,000 (97,000) -3.1%
21 .5% 3,014,000 (1 10,000) -3.5%
21 .7% 1,884,000 (49,000) -2.5%
17 .1% 7,448,000 (206,000) -2.7%
12.4% 5,989,000 (68,000) -1.1%
19.4% 5,868,000 (206,000 ) -3.4%
11.4% 2 ,293,000 (93,000 ) -3.9%
15.5% 3,658,000 (3 ,000 ) -0 .1%
11.5% 2 ,983,000 (10 ,000) -0.3%
22 .8% 6 ,809,000 (77 ,000) -1 .1%
16.9% 42 ,770,000 (1,314,000) -3.0%
24.9% 3,742,000 (106,000) -2 .8%
16.9% 15,508,000 (1,604,000) -9.4%
21.4% 5,968,000 (35,000) -0 .6%
22 .7% 132,877 ,000 (193,000) -0 .1%
23.8% 104,232 ,000 2,429,000 2.4%
10.9% 15,327 ,000 (2,712,000) -15.0%
0 .0% 282 ,000 0 0.0%
0.0% 1,944,000 0 0.0%
0.0% 300,000 0 0.0%
0.0% 3,974,000 0 0 .0%
20.4% 392,532,000 (4,919,000 -1 .2%
34.2% 7,970,000 7,970,000