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HomeMy WebLinkAboutR-97-0783C J-97-754 10/22/97 97- 783 RESOLUTION NO. A RESOLUTION, WITH ATTACHMENT(S), APPROVING AND ADOPTING A REVISED "CITY OF MIAMI FIVE YEAR PLAN" FOR FISCAL YEAR 1998, THROUGH AND INCLUDING FISCAL YEAR 2002, ATTACHED HERETO AND MADE A PART HEREOF, AS REQUIRED BY THE INTERGOVERNMENTAL COOPERATION AGREEMENT ("ICA"), DATED DECEMBER 23, 1996, BY AND AMONG THE GOVERNOR OF THE STATE OF FLORIDA, THE FINANCIAL EMERGENCY OVERSIGHT BOARD AND THE CITY OF MIAMI. WHEREAS, the City of Miami entered into an Intergovernmental Cooperation Agreement ("ICA") on December 23, 1996, with the Governor of the State of Florida and the Financial Emergency Oversight Board; and WHEREAS, Section 5, of the ICA mandates that a revised Five Year Plan be presented to the Financial Emergency Oversight Board (the "Oversight Board") within thirty (30) days of adoption of the Annual City of Miami Budget; and WHEREAS, the Annual Budget for Fiscal Year 1998 was adopted by the City Commission on September 23, 1997; and WHEREAS, the Oversight Board granted a five (5) day extension of the ICA deadline until the City Commission meeting of October 28, 1997; NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: ATTACHMENT CONTAINED CITY COMMSSION MEETING OF OCT 2 8 1997 Resolution No. y 97- 83 17 7 Section 1 . The recitals and findings contained in the Preamble to this Resolution are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. A revised "City of Miami Five Year Plan" for Fiscal Year 1998, through and including Fiscal Year 2002, attached hereto and made a part hereof, as required by the Intergovernmental Cooperation Agreement ("ICA"), dated December 23, 1996, by and among the Governor of the State of Florida, the Financial Emergency Oversight Board and the City of Miami, is hereby approved and adopted. Section 2. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 28th day of ATTES i WALTER J. FbZMAN CITY CLERK APPROVED AS TO FORM AND CORRECTNESS: A! QUfN N J9,NP, III CITY ATTOAVEY W 1962:C October 1997. JOE CAROL , MAYOR 97- 783 f INTER -OFFICE MEMORANDUM Honorable Mayor & Members `' October 22, 1997 ^" of the City Commission 3OBJEcr Add -on Agenda Item Number 21 2 Edward Marqu City Manager ENCLOSURES Please add to the October 28, 1997 Commission Meeting agenda package the attached Commission Discussion Item: 21. DISCUSSION CONCERNING REVISED CITY OF MIAMI FIVE YEAR PLAN FOR FISCAL YEAR 1998 THROUGH AND INCLUDING FISCAL YEAR 2002. 97- 783 1 INTER -OFFICE MEMORANDUM Honorable Mayor & Members October 28, 1997 of t City C mission Updated Five Year Ute Recovery Plan ward Mar City Manager - Recommendation =L_ The Administration recommends that the City Commission adopt the attached resolution approving the attached Revised Five Year Plan. Background The Intergovernmental Cooperation Agreement between the Governor, the Financial Emergency Oversight Board and the City of Miami (the "ICA") calls for the Revised Five . Year Plan to be submitted to the Oversight Board within 30 days of the final adoption off the Annual Budget. As the Budget was adopted on September 23, 1997, the date of this submission was due on October 23, 1997. The Oversight Board granted a five day extension to allow staff to present this revised Plan to the City Commission, for adoption, at this the October 28, 1997 meeting. In addition to incorporating the final budget for Fiscal 1998, the revised Plan will also cover the five year period from Fiscal 1998 through and including the newly added year Fiscal 2002. Also included in the Plan update is a more detailed Management Recovery Plan than has been presented before. The deadlines contained within the ICA were developed a year ago prior to the anticipated change in the structure of the government of the City of Miami. We have argued for an extension of time so that the newly elected City Commission and Executive Mayor could adopt this updated Plan. The Administration's request was denied by the Oversight Board because the Board felt that meeting the express deadlines incorporated within the ICA was of the utmost importance in order to maintain credible progress toward recovery. Public Financial Management (PFM) , the financial advisor to the Oversight Board, greatly assisted in development of this Plan before you. They work under the direction of the Administration and bring their experience in developing plans for Philadelphia and Washington, D.C. to this effort. 97- 78 --- — -- --- -- - - ----- - -- - ------ -- .:- �- � - - � - -:-I :­ -;..",- I, , — -- - ,!, , t , -,. ,� - - :� - , , � , ;, -, .: �� , .. I . , , - - - - � , - � - - � - , -� '-� -. - I , , ,-,--�,!,, , 'v , ,� �� . � .; -, , , . � � -,',? " 1, �, - --� I - ,. ,'� -,- , - ` - ,�'. ,- - - , �' -, � ,�;; - �.�,- _c , ,I'-,'11 - . 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F'.Op�O CHAPTER EXECUTIVESUMMARY..uu.......uu....................uu...........................■.......... 1 CHAPTERII MANAGEMENT AND PRODUCTIVITY INITIATIVES.. ...............■................■.........■ 4 Overview...........................................................................................................................4 StrategicManagement......................................................................................................5 FinancialManagement....................................................................................................I I Capital Assets Planning and Management......................................................................17 Human Resources and Employee Benefits.....................................................................26 InformationTechnology.................................................................................................29 Implementation Schedule - Management and Productivity Initiatives ...........................30 CHAPTERIII FINANCIALPLAN■■■■■■.u■■■■■■....■■■uu■.■■■■■....■■■■■■■■.............. .. .... ■....■■■■. now ■■■....■ 39 Five Year Plan Fiscal Years 1998 - 2002.......................................................................39 Assumptions Used For The Five Year Plan (FYI 998 - 2002).......................................40 Exhibit I. Revenues By Character And Expenditures By Major Object: FiveYear Estimates.....................................................................................50 Exhibit II: Cash Flow Analysis For Fiscal .Years 1998 And 1999..............................55 Exhibit III: Recurring Vs. Non -Recurring Analysis......................................................57 CHAPTER IV CITYWORKFORCE................................................................................... 60 Overview.........................................................................................................................60 Description of the Workforce.........................................................................................61 Organizational Changes..................................................................................................65 Workforce Expenditures.................................................................................................68 FringeBenefits................................................................................................................69 TimeOff..........................................................................................................................70 Overtime.........................................................................................................................71 Summaryof Current City..................................................................................................... Compensation Package ......................................... ....................72 ................................... MajorInitiatives..............................................................................................................75 CHAPTER V ECONOMICDEVELOPMENT........................................................................ 76 Overview.........................................................................................................................76 Attracting/Expanding Businesses....................................................................................76 Regulating Business Activities.......................................................................................77 1 CITY OF M I A M I Land And Building Use ............................................. Major Economic Engines and Highlights of the Greater Miami Economy....................77 Government Entities Involved in Economic Development........................................I....79 Other Entities Involved in Economic Development......................................................82 TheChallenges................................................................................................................83 Conclusion......................................................................................................................83 MajorInitiatives..............................................................................................................84 CHAPTER VI CAPITALPLANNING................................................................................. 85 Overview......................................................................................................................... 85 LegalFramework............................................................................................................85 The Capital Improvements Plan and Capital Budget Process.........................................86 Capital Improvements Plan .............................................................................................88 CapitalBudget................................................................................................................89 Linking the CIP and Capital Budget................................................................................90 Challenges for Capital Planning in the City's Current Fiscal Environment ...................90 Guidelines for Capital Planning Process............................................................ CHAPTER VII DEBTMANAGEMENT................................................................................ 34 Overview of Powers and Provisions .................... ..........................94 ................................. Description of Current Indebtedness........................:......................................................96 Typesof Debt..................................................................................................................98 Outstanding General Obligation Debt............................................................................99 Future Debt Issuance and Credit Market Considerations.............................................101 MajorInitiatives............................................................................................................102 CHAPTER Vill CASHMANAGEMENT.............................................................................. 103 Overview.......................................................................................................................103 Cash Management Operations......................................................................................103 InvestmentProcess..................................................................................:.....................105 Investment Transaction Authority.................................................................................106 Maturity and Liquidity Requirements................................................................... ........ 106 Permitted/Prohibited Investments.................................................................................106 HistoricalPerspective...................................................................................................108 MajorInitiatives............................................................................................................109 APPENDICES Blue Ribbon Task Force Recommendations.................................................A SteirheimRecommendations.......................................................................B Procurement Assessment Team Report .......................................................0 5-Year Estimates: By Fund and Department................................................D MIAMI 0 TABLE OF CONTENTS 2 5-Year Estimates: Revenues by Fund, Character and Minor Object ............ E 5-Year Estimates: Revenues by Fund and Minor Object .............................. F M I A M 1 • TABLE OF CONTENTS 3 CHAPTER 1 EXECUTIVE SUMMARY F a s EXECUTIVE SUMMARY The Intergovernmental Cooperation Agreement (ICA), dated December 23, 1996, by and among the Governor of the State of Florida, the Financial Emergency Oversight Board and the City of Miami requires that the City revise its Five Year Plan within 30 days of adopting an annual budget. The genesis of this Revised Five Year Plan was the City's enactment of the Fiscal Year 1998 Budget Ordinance. The Revised Five Year Plan is comprised of two basic parts: 1) a Financial Plan which deals with budgets, revenue and expense projections, and cash flows as defined in the ICA (Chapter III herein); and 2) an Operational Recovery Plan which addresses managerial, operational and other deficiencies which have been identified through a number of reviews of City operations by both private and public sector entities (Chapters II and IV through V herein). On the following pages, one will find all the data which the ICA requires as of October 28, 1997. This plan was adopted by the City Commission on October 28, 1997. Since the identification of the City's financial crisis, many tough decisions and sacrifices have been made to keep the City fiscally sound. As a result of these actions, the City has completed FY 1997 with a surplus of approximately $13 Million which has been programmed into FY 1998 operations. In order to ensure the long term health of the City, a five year forecasting convention has been adopted whereby budgets and cash flow statements are prepared anticipating future City operations. This regimen enables the City to plan for the ever -changing fiscal environment. The City's fiscal crisis was severe, and while funding was a major concern, it was only part of the problem. Organizational, managerial, and other inefficiencies plagued and continue to affect the City and its operations. These inefficiencies did not occur overnight, but were a direct result of how the City conducted the business of municipal government over a number of years. This condition is not in any way, shape, or form a comment on the quality of the City's workforce effort overall. On the contrary, the citizens of Miami have a dedicated work force working on their behalf. In fact, the City's workforce has and continues to contribute greatly to the City's financial recovery. 1 To address the operational -concerns facing the City, Mayor Carollo convened and, the City Commission unanimously endorsed the creation of, a Blue Ribbon Task Force , on City Administration to get the advice of the business community on how to make the City's government more responsive to our community's need. The Blue Ribbon Task Force is co- chaired by Mr. Ira Clark, President & CEO of Jackson Memorial Hospital, Mr. Edward T. Foote, President of the University of Miami, Dr. Modesto A. Maidique, President of Florida International University, and Mr. Stephen L. Owens, President, Swire Properties, Inc. The Blue Ribbon Task Force has been reviewing the City operations since April 1997 and while their final report has not been- released as of this date, a number of their preliminary findings and recommendations have been incorporated herein. In addition to the staff and research support provided by the universities involved, the Task Force had over 45 volunteer experts studying the City's business practices in five broad areas: Strategic Management, Financial Management, Capital Assets Planning and Management, Human Resources and Employee Benefits, and Technology. Chapter II deals with the initiatives developed by the Blue Ribbon Task Force and is organized along the lines of these reviews. In reviewing the Task Force's preliminary recommendations, several themes become evident. The City needs to figure out where it wants to go as a City, direct its resources in that direction in a coordinated and synergistic fashion; and then to measure its progress over time towards the destination(s) as defined. The City also needs to upkeep and manage its assets better. As examples, employees need more training and property holdings need more maintenance. In other words, the City needs to define what business it is in and then pay attention to its business. If there is a silver lining in the cloud of the City's operational and fiscal problems, it is this: the current Mayor, City Commission, City Administration, and, the entire employee workforce is committed to making the City of Miami government a viable, efficient, and productive entity. With the continued assistance of the private sector and the State's Oversight Board, we will eventually achieve this end. Finally, the, City reaffirms the Guiding Principles listed on the next page as the operational frame work under which it will strive to conduct the business of government. MIAMI • EXECUTIVE SUMMARY 2 GUIDING PRINCIPLES • The City shall make every attempt to incorporate regional solutions for regional problems such as unemployment and welfare reform. • Tax exempt properties should be encouraged to pay their share of City services. • Business enterprises of the City should be reflected as Enterprise Fund . operations only if it is the intent of the City to have all costs (operational, debt service, and depreciation) funded through user charges. • Adequate cash reserves, for contingencies, working capital and other business needs, should be established and maintained. • The City should not undertake any service if the private sector can do it better. • If the City undertakes a service, it should be prepared to do it efficiently. • City employees should have the resources to do their jobs professionally and efficiently. • The best qualified job applicant should always be selected. • Integrity and honesty is expected from all employees. However, the organizational structure of the City government should provide for appropriate internal controls over its business operations. • The City belongs to its citizenry — in all business matters, their benefit is the primary concern. • The residents of the City deserve the highest possible level of service consistent with financial stability. • The City shall not undertake any services or procure any asset or service without the funding being predetermined (i.e. no unfunded mandates). • Standards of operating performance shall be no less than what is expected of the.private sector. • The assets of the City must be maintained in a business -like fashion. • The return on assets, such as land holdings, should be maximized for the benefit of the public. MIAMI • EXECUTIVE SUMMARY 3 CHAPTER 11 MANAGEMENT & PRODUCTIVITY INITIATIVES 'CHAPTER sR kY F a s MANAGEMENT A N D Y°£ QUO Cp p�,0 PRODUCTIVITY INITIATIVES OVERVIEW With the development and implementation of the 1997 Financial Recovery Plan, the City of Miami took the first steps to reversing its descent into financial chaos. The City Commission adopted the necessary policy and budgetary actions to avert a financial crisis. These actions were under the review of the State's Financial Oversight Board. However, there is recognition by all parties that the City will need to better regulate its management systems to sustain a long-term financial recovery and regain fiscal health. Through the combined participation of the City's executive management, the City staff and more than fifty volunteers from the business and academic communities, the Blue Ribbon Task Force on City Administration drafted preliminary findings and recommendations which targeted five major functional, areas for improvement in the City: • Strategic Management; • Financial Management; • Capital Assets Planning and Management; • Human Resources and Employee Benefits; and • Technology The final recommendations from the Blue Ribbon Task Force are not available at this time. However, the City Manager has established a series of management and productivity initiatives based on their preliminary findings and recommendations. The following sections provide additional detail on the Task Force's initiatives and the expected benefits from implementing those initiatives. References are also made to the Stierheim report dated November 15, 1996 and the technical assistance reports summarized in the City's Five Year Plan dated April 15, 1997. Each of the five sections in this chapter is subdivided into major areas of concern within the functional area. First, we will describe the circumstances that provoked concern, then present initiatives to address the concern. After each initiative, we follow with the benefit that implementing the initiative will bring. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 4 STRATEGIC MANAGEMENT 1. Reorganization According to the Blue Ribbon Task Force, the City organizational structure inherited by the current City Manager lacked a "clarity of responsibility" that confused both employees and constituents. Indeed, the Table of Organization included six assistant city managers in addition to the Police and Fire chiefs who served as assistant city managers. In effect, the City supported a very "top heavy" administrative organization. To address that situation the City Manager reorganized the operating departments and administration under two assistant city managers, one for finance and administration and the other for operations. The benefit of this structure was to streamline the reporting functions to the City Manager. Under the previous organizational structure, department directors, in some instances, functioned as Assistant City Managers. The result was a proliferation of Assistant City Managers and a lack of accountability for those departments with directors that also served as Assistant City Managers. Under the current initiative the City Manager has a tighter chain of command and the departments are grouped according to functional relationships. Certain key positions remain to be filled including the Assistant City Manager for Operations, the Director of Public Works, Director of Communications, Director of Building and Zoning, Director of Internal Audit and Director of Community Development. This reorganization is an initial step. Over the long-term the City will need to continue reorganizing its functions and responsibilities to achieve greater efficiencies and efficacy. Failure to achieve greater efficiency and effectiveness in delivering.services to constituents will place the City at competitive disadvantage in attracting private business activity and stimulating economic development. In short, Miami will be doomed to continue as one of the poorest cities in the nation. A. Initiative: Expedite the completion of the City Manager's reorganization by filling key personnel positions. Benefit: This reorganization improves the responsiveness and accountability of the organization. B. Initiative: Establish a task force to continue the reorganization of City services and implement its recommendations. Benefit: Improves the accountability and productivity of the City organization. C. Initiative: Revise the budget preparation and tracking process to reflect the organizational changes resulting from the task force recommendations. MIAMI • MANAGEMENT AND P R O D U C T I V I T Y I N I T I A T I V E S 5 Benefit: Helps to track and modify operations for the most efficient allocation of resources. . 11. Incorporate Renchmarking and -Performance Measurement Practices "Comparing local performance statistics with selected benchmarks is a valuable step in evaluating municipal operations. Benchmarking entails the analysis of performance gaps between one's own organization and the best in class performers, the identification of process differences that account for the gap, and the adaptation of key processes for implementation in one's own organization in an effort to close the gap." (David N. Ammons) The success of any plan can only be measured by established standards. Understanding how to establish meaningful benchmarks and performance measures is critical to evaluating fairly the progress of any strategic or operational plan. Without standards no accurate measurement of success can be made. A. Initiative: Provide training to key personnel (classified and unclassified) in all departments to develop and implement benchmarks and' performance measures. Benefit: Provides a measuring stick by which to gauge City progress. Ill. Need to Fill Middle Management Positions Both the Stierheim report and the Blue Ribbon Task Force noted that there is a significant dearth of middle managers in the City's work force. The consequences are that senior managers must spend their time and resources managing daily routine operations. Inadequate effort is devoted to long-term planning and achieving long-range goals and objectives. A. Initiative: Identify and fill critical middle management positions. Benefit: Improves the effectiveness and efficiency of the organization. IV. Reforming Practices and Procedures Many of the policies and procedures in the City Charter and other key documents are not based on good municipal business practices. The inclusion of detailed procedures in either ordinances or in Charter amendments limits the flexibility in accommodating changing circumstances. For example, the Technical Assistance Report noted several instances where modern procurement practices ran counter to the provisions of the City Charter. In other instances, such as the review and approval of contracts, acceptance of MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 6 grants, and implementation of new programs, procedures handicap the City's ability to maximize the return on its assets. A. Initiative: Establish a task force to review, revamp and promulgate policies and procedures based on "best practices". The output is to be twofold: (1) a policy and procedure manual for the City, and (2) establishment of a process to periodically update the manual as conditions change. Benefit: Provides consistent and rational basis for making and documenting decisions. B. Initiative: The City Manager will direct the preparation of a comprehensive recommendation of proposed Charter amendments. The proposed amendments should focus on those areas that have been identified as impediments to instituting "best" business and management practices. The recommendation will be prepared and submitted to the City Attorney for review and comment. Benefit: Provides systematic approach for "modernizing" of the Charter. V. Economic Development Until recently the City did not approach economic redevelopment in a coordinated manner. The City Manager's move to combine the Office of Asset Management into the Department of Community Planning was an initial effort to centralize economic redevelopment in the City's organizational structure. A. Initiative: The City Manager will direct the development of a specific organizational plan consistent with reorganization efforts to consolidate staff and coordinate the City's economic redevelopment activities. Benefit: Increases the probability that economic redevelopment and the concomitant financial benefits to the City will be achieved. V1. Strategic Planning Structure and Process Of necessity, the - City has recently focused it efforts on short-term planning and crisis management. The Blue Ribbon Task Force, in its preliminary report noted that: [The City's crisis management] style is reinforced by the lack of concrete action plans and performance measures that are linked to City operations. Clear responsibility for specific steps to enact strategies is lacking. In successful cities, once strategy and action plans have been approved, a process is established for implementation. M IAM 1 • MANAGEMENTAND PRODUCTIVITY INITIATIVES 7 Given the foregoing characterization, the need for developing the structure and process of long range strategic planning is clear. Without such a structure and process, the ability of the City to forge a more fiscally prudent course for the long-term is severely diminished. The importance of the process should be reflected in the organizational structure. A. Initiative: Strategic planning will be incorporated in the City's organizational structure and will have a direct reporting relationship to the City's chief executive. The process will integrate a public/private sector committee of senior management to guide and oversee the strategic planning process. Benefit: Improve the efficiency and effectiveness of the City's planning process with emphasis on long-term goals. V11. Accelerate Completion of the First Strategic Plan Because the City has no recent experience with comprehensive strategic planning, there is significant benefit in aggressively pursuing the development of an initial long-term strategic plan. The benefits derive as much from demonstrating to the community and the State the ability to execute such an initiative as well 'as immediately improving the efficiency of the organization and instilling in City staff a vision of where the City is headed. A. Initiative: Hire a facilitator to coordinate action on the City's initial strategic plan. Benefit: Centralize coordination of strategic plan and provide evidence that strategic plan is a City priority. B. Initiative: Produce progress reports on the initial strategic plan for the City of Miami and complete the plan. Benefit: Improve efficiency and instill confidence in employees and constituents. Vlll. Linkage of Strategic Planning to Operating and Capital .Budgets Strategic planning has no value if it is not coordinated with the development of operational and capital budgets. For the goals and objectives of strategic planning to be achieved, the City's resources must be allocated according to priorities that support those goals and objectives. If, for example, the strategic plan for the City entails attracting high tech businesses to create higher paying jobs and increase the commercial tax base, then the MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 8 City's development approval process and associated fees,. its economic development incentives, as well as its delivery of services must support that objective. Such support comes. from budgeting the appropriate levels of .operating and capital funds to ensure adequate City services, as well as a fair and efficient development approval process. Consequently linkages between operational and capital budgeting must be institutionalized. A. Initiative: Prepare and coordinate the budget preparation process with the strategic planning process by requiring managers to demonstrate how budget submissions are consistent with strategic plans and how they integrate capital and operational budgets. Benefit: Improves efficiency by integrating the framework established by the strategic plan with implementation of specific initiatives as directed by the operational and capital budgets. IX. Consolidate Economic Development Efforts The City of Miami is vitally dependent on its property tax base to support its operational and capital budgets. Recognized as the fourth poorest major city in the United States, increasing the City's tax base is a viable and appropriate strategy to improve the City's economic condition. Developing an effective strategy to increase the tax base and, ultimately, the economic well being of the community, should employ critical joint ventures of public and private investment. The City and the Downtown Development Authority need to better coordinate with private development groups such as the Beacon Council and the Greater Miami Chamber of Commerce. A. Initiative: Organize a public/private partnership to develop a strategic plan for economic development in Greater Miami. Benefit: Encourage more efficient use of available resources. B. Initiative: Coordinate within a single agency or a single reporting structure for the City's economic development efforts. Benefit: Streamline economic development efforts and optimize use of resources. C. Initiative: Focus economic development efforts on retaining and expanding local businesses. Benefit: Optimize use of resources. D. Initiative: Develop public/private partnership programs which emphasize workforce development. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 9 Benefit: Streamline economic development efforts and optimize use of resources. MIAMI • MANAGEMENT AND PRODUCTIVITY 1 N 1 T I A T l V E S 10 FINANCIAL MANAGEMENT The efficiency and effectiveness of the City's Finance Department has been the subject of substantial in-depth reviews including the Stierheim Report, the Interim Management Letter from KPMG Peat Marwick,("KPMG"), and the KPMG Management Letter presented to the Oversight- Board on August 27, 1997. The latter report is the most timely and serves as the basis for a series of initiatives to be implemented by the Finance Department. 1. Level of Expertise Within the Finance Department The City's Finance Department lacks qualified. personnel in critical accounting functions. As a result, the 1996 audit was delayed because the analysis and reconciliation. of general ledger accounts was conducted only at year-end during the Department's final audit. This situation results in the inefficient utilization of scarce resources and inaccuracies in the accounting records. Additional staffing requirements have been identified and approved by the City Manager. A. Initiative: All specifically identified accounting positions will be announced and filled. Benefit: Improves the efficiency and effectiveness of the Finance Department. 11. Employee Training The City does not have a formal training program to keep the accounting staff abreast of current developments in governmental accounting. A.' Initiative: The City, in conjunction with the Blue Ribbon Task Force, Florida International University ("FIU"), the Finance Department and the Human Resources Department will prepare a comprehensive training program for the Finance Department. Benefit: Improves the efficiency and effectiveness of the Finance Department. 111. Reconciliation of Fixed Asset Records The City does not have an effective system to properly maintain complete and detailed records to support its general fixed assets. Periodic inventories are not taken. MIAMI • MANAGEMENT. AND PRODUCTIVITY INITIATIVES 11 A. Initiative: The City will implement a new Fixed Assets SCI module. General inventory procedures will be developed and implemented. Benefit: Improves and maintains control over fixed assets. IV. Improve Controls Over Purchase of Goods and Services The Auditors noted routine violation of procurement policies. The City Manager notified staff that they may be held financially responsible for purchases made outside the City's procurement policies. A. Initiative: In conjunction with the City Attorney, and if legally allowable, Finance will prepare an amendment to the procurement ordinance to indemnify the City from unauthorized purchases or requisitions by City employees. Benefit: Improves controls over purchases of goods and services. V. Centralize Grants Management Procedures Historically the grants administration process in the City has been decentralized. This approach has resulted in inefficient monitoring for grant compliance, which could create financial exposure for the City. In addition, decentralization is not always consistent with the maximization or leverage of available grant revenues. A. Initiative: The City will centralize grants administration as a part of the continuing reorganization of the City. Benefit: Improves efficiency of grants administration. V1. Accounting and Operations Procedures Manual The City heretofore has not maintained an updated accounting operations and procedures manual.. A properly maintained manual improves standardization, delineates responsibilities, and ensures application of accounting policies. A. Initiative: With assistance from external auditors, the Finance Department will complete an accounting operations and procedures manual and provide on-line access through the SCI System. Benefit: Improves effectiveness and efficiency of accounting operations. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 12 V11. Debt Management Currently, there is not an established Debt Management Policy (DMP) in effect for the . City. The Blue Ribbon Task Force document contains a DMP which will be presented to the City Commission for adoption. Below are several key policies from the document that should be highlighted: • The City will not issue debt obligations or use debt proceeds • to finance current operations. • The City will utilize debt obligations only for capital improvement projects which cannot be funded from current revenue sources or in such cases wherein it is more equitable to the users of the projects to finance the project over its useful life. • The City will issue debt obligations for refinancing existing debt or other obligations only if financially advantageous or necessary to release existing covenants under bond documents. • The City will measure the impact of debt service requirements of outstanding and proposed debt obligations on single year, five; ten, and twenty year periods. This analysis will consider debt service maturities and payment patterns as well as the City's commitment to a Pay -As -You -Go budgetary capital allocation. A. Initiative: Submit a comprehensive Debt Management Policy ,for adoption by the City Commission. Benefit: Improve financial integrity. B. Initiative: The City should increase its Non -Ad Valorem Revenue over Maximum Annual Aggregate Debt Service ratio of liquidity to 10 times. (See Debt Management Chapter for details.) Benefit: Improve financial integrity. C. Initiative: The City should look for escrow restructuring opportunities to potentially enhance its cash position Benefit: Improve financial integrity. V111. Cash Management A. Initiative: Develop a system for tracking funds in pooled cash. Benefit: Improve financial integrity. M I A M 1 • MANAGEMENT AND PRODUCTIVITY I .N ITIATIVES 13 B. Initiative: Modify the existing monthly budget -to -actual report (BE 600) in order to improve its usefulness as a managerial report. Benefit: Improve financial integrity. C. Initiative: Establish an Investment Procedures and Internal Controls manual. Benefit: Improve financial integrity. D. Initiative: Investigate purchasing in-house software to perform' portfolio management statistical calculations. Benefit: Improve financial integrity. IX. Internal Audit Until the present, the City has minimized the role of internal auditor. Once properly staffed, trained, and directed, the internal audit section can provide significant value by reviewing operational efficiency and compliance with established policies and procedures. The activities of the internal auditor.should be guided by an annual audit plan approved by City management. The audit plan may be revised throughout the year to adapt to changing circumstances, but those changes should be ratified by a formal approval process to ensure that the internal auditor fulfills his or her mission. At present, the internal auditor reports to the City Manager who ensures appropriate access to review City operations. The Director of Internal Audit is one of the key positions that must be filled in order to adequately staff the organization. Once this position is filled, the priority is to evaluate internal audit staff capabilities and expertise and address them within fiscal and organizational constraints. A. Initiative: Complete staffing of Internal Audit Department. Benefit: Improves organizational efficiency. B. Initiative: Prepare and approve an annual audit plan. Benefit: Improves organizational accountability. C. Initiative: Reconstitute existing Audit Committee and strengthen its mission to assist the City Manager with internal and external audits. Appoint only qualified audit, accounting, financial, or managerial professionals to the Committee. Benefit: Improves organizational accountability. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 14 X. Procurement On February 24, 1997, the procurement assessment team lead by Edward Tolliver presented a report to the Oversight Board on the City's procurement function. The report contained a number of recommendations which are summarized in the following sections. A. Increase Bid Limits The Charter currently specifies that all purchases greater than $4,500 are subject to bid. No provisions for adjustment are provided except for amendment of the Charter. This level of approval is extremely low when compared to other jurisdictions. Raising the limit to $10,000 or $15,000 would reduce the number of bids from one third to one half of current levels and only exempt two percent (2%) of the annual City purchases from the competitive bid requirements. Additionally, procurement matters are more appropriately considered in a policy or procedural document rather than in a government charter. Initiative: Prepare and submit to the Charter Review Commission a proposed Charter amendment to remove specific procurement requirements and substitute a provision to allow bid requirements to be established by ordinance. The amendment will be prepared and submitted in the comprehensive Charter amendment package referenced earlier. Benefit: Improves organizational efficiency. B. Streamline Procedures for Smaller Purchases Almost ninety percent (90%) of the purchase orders issued by the City are under $4,500. This amount represents about eight percent of the total dollar volume spent. The administrative burden could be reduced by using alternative means for small dollar purchases such as delegating certain small dollar purchases to departments, using blanket purchase orders, or using State or County contracts. i. Initiative: Develop a purchasing procedures manual which incorporates the Procurement Assessment Team recommendations for streamlining small dollar purchases. Benefit: Improves organizational efficiency. C. Training for. Purchasing Professionals As is true in many other departments, the Purchasing Department has not implemented training for the professional level personnel. Because procurement is such a vital function to the Citywide organization it is imperative that procurement personnel stay abreast of current practices. MIAMI O MANAGEMENT AND PRODUCTIVITY INITIATIVES 15 i. Initiative: In conjunction with the Human Resources Department, the Purchasing Department will develop a skills training program using resources provided by local universities and professional purchasing associations. Benefit: ' Improves organizational efficiency. D. Increased Use of Technology The City has recently procured automated purchasing software ("APS") which can be integrated with the SCI System. Automating the purchasing functions will reduce costs and increase efficiency provided personnel are sufficiently trained in the software's applications. Adequate training on the new technology is requisite to obtain the benefits of automation. Initiative: Utilizing vendor -provided training, the entire Purchasing Department will be trained to utilize the APS module. Benefit: Improves organizational efficiency. X1. Monitoring Inter -fund Transfers The 1996 Stierheim report revealed that large inter -fund transfers had effectively taken place, enabling the City to use Capital Projects Funds to cover short-term operating expenses. If the City continues to use a pooled cash system, it must be vigilant in monitoring the allocation of funds and actual expenditures to flag such an issue in the future. A. Initiative: The City must have a well -regulated system in place to monitor fund balances, allocations, and track expenditure levels that might trigger inter -fund transfers. Benefit: Improves fiscal integrity. MIAMI • MANAGEMENT AND PRO DUCTIV ITY INITIATIVES 16 CAPITAL ASSETS PLANNING AND .MANAGEMENT 1. Redesign Capital Improvements Planning As discussed in greater detail in the chapter on Capital Planning, the City's current Capital Planning procedure does not have a firm set of .guidelines to (1) select which projects should be funded and how those projects fit into the City's long-term planning. process; (2) coordinate resources among those projects that are funded; and (3) sufficiently monitor the funds allocated to Capital Projects, to ensure that those funds will not be subject to inter -fund transfers. i. Initiative: The City must substantially redesign its Capital Improvements Planning process. In redesigning the City's Capital Improvements Plan, the City should address or incorporate each of the following issues: • - All capital projects and acquisitions, regardless of funding source, should be controlled and managed through the CIP process. • Funds dedicated for Capital Improvement Projects should be swept out of departmental budgets into the capital projects funds to be sure that there are no entangling concerns with those moneys. • The CIP should be integrated with the annual Operating Budget and the City's Strategic Planning process. • The City should issue debt for major capital projects, matching the terms of the financing with the asset's life. • The City should consider developing an adequate internal source of funding out of its annual operating budget to replace needed infrastructure and capital equipment. • Revenues derived from the sale and lease of surplus City real properties should be dedicated to the City's Capital Improvements Plan or to generating other recurring revenue. • Inflation factors for all projects in the CIP should be considered each year and appropriate adjustments made to all project estimates. • The CIP section of the Office of Budget and Management Analysis should provide the greatest possible accountability in its management of the CIP. • CIP practices and procedures need to be documented in a manual to allow for the replacement of key personnel without loss of knowledge for the City. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 17 • The City must consider its staffing needs in the CIP program then fill or create selected positions that would enable it to operate more efficiently and with greatest financial diligence. • FEMA practices and procedures should be documented into a procedures manual to allow for similar replacement of key personnel without undue financial exposure for the City. • CIP data reporting requirements should be created such that information can be shared with SCI and other data bases. A. Selection of Capital Planning Projects The selection of which projects should be funded and how those projects fit into the City's long-term planning process are key to wisely using the City's limited resources. i. Initiative: The Budget Office should do a comprehensive review of projects in the existing CIP to determine, given its current set of priorities, which projects to keep and how, those projects will be funded. Benefit: Better prioritization of limited City resources. ii. Initiative: In its CIP, the City should maximize the use of current City facilities and should, where feasible, give higher priority to maintaining present facilities over new construction. Benefit: Better prioritization of limited City resources. iii. Initiative: City Departments should identify the operating implications of all capital projects and priority should be given to those which will result in a reduction of operating costs or enhance revenues. Benefit: Better prioritization of limited City resources. iv. Initiative: The City should maximize utilization of all federal and state revenue sources for capital improvements. Benefit: Better prioritization of limited City resources to those projects that could not be funded otherwise. v. Initiative: The City needs to redevelop a quantitatively -based system for prioritizing projects .among the CIP and realistically assess which of those top priority projects can be funded. Benefit: Better prioritization of limited City resources. M I A M I • MANAGEMENT AND PRODUCTIVITY INITIATIVES 18 B. Coordination of Resources Among Capital Projects Initiative: The City must establish a single controlling staff Department or person who will be responsible for the physical coordination of resources among approved Capital Improvements Projects and with other on- going City operations. Benefit: Better prioritization of limited City resources and fewer duplications of effort. C. Monitor Funding of Capital Projects i. Initiative: The Budget Office must maintain a system that regularly monitors funds allocated to Capital Projects to ensure that those funds will not be subject to inter -fund transfers. Benefit: The City will have greater warning about possible inter -fund transfers and have more time to prevent them from taking place. 11. Acquisition and Disposition of Property The findings of the Blue Ribbon Task Force and the South Florida Regional Planning Council were that the City had been neglecting its property assets. Of the some 640 to 700 parcels of property that the City owns, a few perform vital functions, but a thorough examination of the rest should be done to be sure they are being effectively utilized. Many of these parcels of property are vacant lots, small pieces of unbuildable land, and run-down rental properties so their utilization will be minimal. The Stierheim report adds that some parcels of City -owned property are quite valuable if the City were to negotiate with private developers. For example, one large piece of City property along the waterfront will become the site of the- new Miami Arena. Other pieces could be bundled together and either leased or sold to developers for a better price than they would generate individually. Once the City knows the full extent of its property and the condition of that property, it can formulate a set of policies for the acquisition and disposition of property. Such policies should consider: • the location and condition of the property; • the City's long-range plans for the asset (if none, then develop and incorporate into larger neighborhood or other planning goals); . MIAMI • MANAGEMENT AND PRODUCTIVITYINITIATIVES 19 • pertinent legal agreements (such as leases, rental agreements, etc.); an examination of tenants' past payment histories; • other possible options for site use (especially for vacant sites); • other possible options -for sale, lease, or rental (including comparison of current arrangement with market prices); • the site's current revenue stream production for the City vs. possible future revenue streams (including tax benefits if in private hands) • what the relative value would be of packaging groups of properties together to provide higher returns for the City in a sale, lease, or rental; • how much of possible future benefit the City should require purchasers to return to the City in the terms of a sale, lease, or rental (city-wide guidelines should be developed here); • what investment the City could make in its properties to increase the revenue that they return to the City (this should require a rigorous cost/benefit analysis to determine whether investing is a good choice); • the significance of a property to a neighborhood or community group, especially if the property is being used by a group to provide shelter or other services not readily available nearby. The South Florida Regional Planning Council report from September .1997 was specific in its suggestions for how the City's property planning system should work. Many of the steps it suggested are incorporated in the initiatives below, amended to incorporate the City's long-term Strategic Plan: A. Property Plan The City did not have a comprehensive list of all the property that it owns. In addition, the City does not know what condition much of its property is currently in or whether it is always being compensated for the use of its property. Once the condition of the City's property is established, maintenance of property that the City considers valuable should be consolidated under a single department. The Blue Ribbon Task Force suggested that this department be the General Service Administration. Some of the City's major assets are undercharging for the services that they provide and, the extent possible and desirable, should raise prices to mitigate their draw on the City's General Fund, perhaps raising fees to - the level at which these agencies are MIAMI • MANAGEMENT AND PRODUCTIVITY IN ITIAT IVES 20 responsible for their own operations, preventive maintenance, and ;major improvement projects. Initiative: Amend the comprehensive list of all the property that the City owns by documenting the current condition of the property and what special arrangements (such as with a rental tenant) that exist for the property. Benefit: The City will start to get a handle on its physical assets and have the basic information compiled to make policy decisions about its property. ii. Initiative: The comprehensive list of City property should be updated on a semi- annual or quarterly basis. Benefit: . Updating the list on a regular basis would give the City an opportunity to regularly review its properties and become familiar with their condition over time. iii. Initiative: Develop comprehensive plan for the long-term use of all City assets concurrent with the preparation of the amended full property list. If an asset does not have a part in the City's long-term goals, consider transfer of ownership or dramatic change in usage. Benefit: With a long-range plan, the City is less likely to dispose of valuable, but underutilized assets. It may also realize that some investments are needed for property to realize its full value and be able to plan to make appropriate investments over time. iv. Initiative: The City should consolidate maintenance of all important properties under a single department for greater coordination and 'operational efficiencies. Benefit: The City will realize savings from the above -mentioned coordination and operational efficiencies. v. Initiative: Raise the user fees of major City assets to make them self-sufficient and financially responsible for their own capital improvement projects if feasible. If not feasible, the City should consider divestiture of the asset. Benefit: These changes will reduce pressure on the City's General Fund and free revenues for other projects. M IAM 1 • MANAGEMENT AND PRODUCTIVITY INITIATIVES 21 B. Leases Like other municipalities, City leases are subject to environmental laws. Currently, the coordination of environmental policy is at best mixed. The City will continue to seek methods to strengthen ongoing compliance and- mitigate any. potential environmental liabilities. is Initiative: To the maximum extent possible, attempt to shift the burden of compliance to those who lease property from the City in accordance with the direct use and benefits enjoyed by the lessors. Benefit: This shifts costs away from the City and towards other sources. ii. Initiative: Coordinate compliance with environmental laws through single individual or department. Benefit: The City will then no longer have to simply react to environmental hazards and lawsuits as they develop, but can take preventive steps and diffuse hazardous situations before they threaten human or animal life. iii. Initiative: If the City does not have sufficient expertise on hand to research and comply with environmental regulations, it should outsource this function to qualified professionals. Benefits: Demands on unequipped City staff will be reduced, the City will have the required function performed properly and with the minimum of time commitment, and savings will accrue in the form of reduced legal and clean-up fees. The City also has a recourse to collect money from a third party if the required function is not performed adequately. The City currently has no review procedure for leases and rental agreements to be sure it has negotiated terms that are most beneficial and has definite termination dates. It also has no standard leasing or rental agreement terms that it uses as the basis of agreements. Further, the City does not regularly share information on its leases and rental agreements among departments. Some sharing of information is necessary to collect from tenants in arrears and/or begin eviction proceedings as necessary. iv. Initiative: Develop procedure to regularly review leases and rental agreements to be sure that the City has negotiated market rates and that the agreements have definite renewal and termination dates. If the City does not have experienced staff to address this need, the City should outsource this function. MIAMI • MANAGEMENT AND PROD U CTIVITY INITIATIVES 22 Benefit: The City should expect an increase in its revenues from leases and rental agreements once current agreements are renewed and/or terminated in favor of new agreements. v. Initiative: Such experienced staff or outside professionals that take over the function of lease and rental agreement review should codify a set of regular terms and conditions to be used as the basis of the City's future lease and rental agreements. Benefit: Having such standardized language will enable the City to re -negotiate its leases and rental agreements with both an eye towards maximizing its own terms and minimizing the amount of work involved in developing each new agreement. vi. Initiative: The City should share information on its leases and rental agreements among departments such as Legal, Community Planning and Development, and other pertinent divisions. This information will enable these Departments to coordinate lease and rental renewals, collect back payments, and/or begin eviction proceedings. Benefit: Citizens will appreciate being able to deal with the City government as a single, coordinated unit. The City's revenues will increase as better lease terms are negotiated, more back payments are collected, and scofflaw tenants are promptly evicted in favor of more responsible renters or leasees. C. Key Property Disposition Some properties may need significant City investment before sale in order to maximize return to the City from the sale. As noted in the section about formulating a policy on the use of City property, any such investment should be carefully weighed against expected return and against other uses for the property. When the City does decide to dispose of property, it needs to better market the property. Better marketing of property could increase the number of bids that the City receives and push up selling prices. Initiative: The City should market its property through a greater variety of methods including a regular broker (even if such a function is in- house), and its government cable access channel. Benefit: Better marketing of City property will increase public awareness of its availability, increase the number of bids that the City receives, and increase City revenues through higher selling prices. MIAMI • MANAGEMENT AND PRODUCTIVITY I N ITIATIVES 23 D. Foreclosure The City should foreclose on property only after considering its potential for other uses. i. Initiative: Consider the economic and social value of property to the City before initiating costly foreclosure procedures. If the City has no use for the property and it is uneconomic for the City to resell or if the property has a social value as it currently exist, the City should continue to explore other options to improve the property under its current owner. Benefit: This new policy will reduce the number of properties that the City forecloses on and does not develop. Such properties may contribute to neighborhood blight. E. Charter Revisions Under the current Charter, the City must follow a formal bid process for leasing contracts and property sales, and receive at least three bids or call a public referendum. Such a public referendum may take a year or more to be held. Whether or not the City receives three bids for a lease or sale, all such agreements must go before the City Commission for approval. For specialized property, the City may not be able to solicit a minimum of three bids and may lose any prospective tenant during the year it takes for a public referendum. Further, many leases and sales are for very small amounts and may not require City Commission scrutiny. i. Initiative: Establish Charter Review Committee that will report to the Mayor, City Manager and City Commission on recommended changes to the City Charter. Benefit: The City will have a body to gather, study, and review recommended changes to the City's Charter and advise top City officials. ii. Initiative: Recommend changes to the Charter Review Committee for the City to accept a bid if over a specific percentage of established market value without referendum, even if the minimum of three bids were not received. Benefit: The City will be able to act faster to close beneficial deals and such an arrangement may interest more bidders to do business with the City. iii. Initiative: Establish an indexed minimum standard for leases and other contracts that must go before the City Commission for approval. MIAMI • MANAGEMENT AND P R O D U C T IV IT Y IN IT I AT IV E S 24 Benefit: Very small leases and other contracts will be approved faster, encouraging more bidders to do business with the City, and perhaps leasing or selling these properties for more money. MIAMI a MANAGEMENT AND PRODUCTIVITY INITIATIVES 25 HUMAN RESOURCES AND EMPLOYEE BENEFITS In concert with the initiative to begin the strategic planning process, the City must undertake a significant review of job classifications, employee compensation, management policies, as well as training and leadership development. A review of this order is a daunting task. The task is further complicated because it could require changes in existing labor agreements, work rules, policies and procedures. 1. Training With respect to the City's human resources there are several deficiencies that lend themselves to be addressed in the immediate term. Perhaps the most apparent deficiency is the lack of a comprehensive training program. There have been few budgetary resources allocated to training Citywide. As a result the level of employee skills has diminished. A. Initiative: The Human Resources Department will undertake an assessment of Citywide training needs and prepare a draft report to serve as the basis for a preliminary training budget. Benefit: Improves efficiency. 11. Succession Planning Fifty-one percent (51 %) of the current executive workforce is eligible for retirement by 1999, and one-third will be eligible in 1998. This represents a significant opportunity and challenge. The City must prepare for an orderly transition in the executive leadership or face the potential that the strategic planning process will founder. A. Initiative: The Human Resources Department- will survey municipal "best practices," evaluate the executive personnel eligible for retirement, and draft a leadership succession plan for consideration by the. City Manager. Benefit: Improves efficiency. III.Civil Service Rules In order to support the strategic plan, the City will need to review and evaluate the Civil Service Rules to determine which provisions should be revised or, City Charter amendments would be necessary to be consistent with the City's new strategic direction. A. Initiative: The Human Resources Department will draft a work plan and timetable to guide the review and evaluation - of the Civil Service Rules. MIAMI 9 MANAGEMENT AND PRODUCTIVITY INITIATIVES 26 Benefit: Improves efficiency. B. Initiative: The Human Resources Department will investigate methods to implement a more efficient selection process for hiring candidates to Civil Service positions. Benefit: Improves efficiency. C. Initiative: The Budget Office will do semi-annual assessment of where vacancies occur in the City's workforce and sweep those vacancies into a single pool. A committee of top managers will then redistribute employee openings to departments as they can demonstrate need for new or replacement personnel.. Benefit: Improves efficiency. IV. Workers' Compensation A "best practices" audit of the City's workers' compensation program was performed by an expert panel of the Blue Ribbon Task Force. The results of the audit showed that the Claims Department does not follow industry standards. For the long-term this represents considerable financial exposure for the City. A. Initiative: Investigate issuing a Request For Proposal ("RFP") for a third -party claims administrator to administer the workers' compensation claims function or adopt best practices internally. Benefit: Improves efficiency. B. Initiative: Improve the management and tracking of time off. Benefit: Improves efficiency. V. Employee Benefits Employee benefits represents a significant annual expenditure for the City. Based on evaluations by the expert panel for the Blue Ribbon Task Force, there area number of issues which should be evaluated in order to ensure that City employees are afforded reasonable benefits at reasonable costs to the employee and the City. A. Initiative: Retain a benefits consultant to assist in structuring, evaluating, and procuring a coordinated benefits package for employees. MIAMI a MANAGEMENT AND PRODUCTIVITY 1 N 1 T I A T I V E S 27 Benefit: Cost savings and improved efficiency. B. Initiative: Continue to investigate cost-effective and quality health care alternatives. Benefit: Cost savings and improved efficiency. MIAMI • MANAGEMENT AND PRODUCTIVITY I N ITIATIVES 28 INFORMATION TECHNOLOGY Clearly, information technology will constitute a critical element in any strategic plan formulated by the City. Without adequate technology the City will not be able to effectively perform its vital functions. Appropriately utilized information technology can result in significant efficiencies and reduced costs of operations. However, the changes in this field are rapid and the considerable attention must be given to detailed planning for the use and acquisition of this technology. A. Initiative: Engage an experienced consultant to assist City staff and volunteer experts in drafting a strategic plan for information technology. Benefit: Improves efficiency. B. Initiative: Create a comprehensive disaster recovery plan for immediate preservation of all vital City functions and restoration of remaining City functions within a short period of time. Benefit: Necessary for prudent contingency planning. MIAMI • MANAGEMENT AND P R O D U C T IV IT Y IN IT 1 AT IV E S 29 City of Miami Implementation Schedule - Management and Productivity Initiatives APPROXIMATE IMPLEMENTATION INITIATIVE Q4 97 Q1 98 Q2 98 Q3 98 FYI 999 FY20O0 I FY2OO1 I FY20O2 FY2003 ,.. VERVIEW E , Reorganization - Expedite the completion of the City Manager's X X X reorganization by filling key personnel positions. Reorganization - Establish a task force to continue the X X X reorganization of City services and implement its recommendations. Reorganization - Revise the budget preparation and tracking process X X X X X X X to reflect the organizational changes resulting from the task force recommendations. Incorporate Benchmarking and Performing Measurement X X X Practices - Provide training to key personnel (classified and unclassified) in all departments to develop and implement benchmarks and performance measures. These benchmarks and performance measures will be used in the preparation of the budget. Need to Fill Middle Management Positions - Identify and fill X X critical middle management positions. Economic Development - The City Manager will direct the X X development of a specific organizational plan consistent with reorganization efforts to consolidate, staff and coordinate the City's economic redevelopment activities. Reforming Practices and Procedures - Establish a task force to X X X X X X X X review, revamp and promulgate policies and procedures based on "best practices". The output is to be twofold: (1) a policy and procedure manual for the City, and (2)' establishment of a process to periodically update the manual as conditions change. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 30 APPROXIMATE TIME TO IMPLEMENTATION INITIATIVE Q4 97 Q1 98 Q2 98 Q3 98 FYI 999 FY2000 FY2001 FY2002 FY2003 Reforming Practices and Procedures - The City Manager will X X direct the preparation of a comprehensive recommendation of proposed Charter amendments. The proposed amendments should focus on those areas that have been identified as impediments to instituting "best" business and management practices. The recommendation will be prepared and submitted to the City Attorney for review and comment. Strategic Planning Structure and Process - Strategic planning will X X X X X X be incorporated in the City's organizational structure and will have a direct reporting relationship to the City's chief executive. The process will integrate a public/private sector committee of senior management that will oversee and guide the strategic planning process. The strategic planning section will be fully staffed and the advisory board will be appointed. Accelerate Completion of the First Strategic Plan - Hire a X X X X facilitator to coordinate action on the City's initial strategic plan. Accelerate Completion of the First Strategic Plan - Regular X X X X reports toward the completion of the initial strategic plan for the City of Miami. Linkage of Strategic Planning to Operating and Capital Budgets X X X X X X - 'Prepare and coordinate the budget preparation process with the strategic planning process by requiring managers to demonstrate how budget submissions are consistent with strategic plans and how they integrate capital and operational budgets. Consolidate Economic Development Efforts - Organize a X X X X X X public/private partnership to develop a strategic plan for economic development in Greater Miami. Consolidate Economic Development Efforts - Coordinate within a X single agency or a single reporting structure the City's economic development efforts. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 31 APPROXIMATE.CHAPTER 11 INITIATIVE Q4 97 Q7 98 Q2 98 Q3 98 FYI999 FY2000 FY2001 FY2002 FY2003 Consolidate Economic Development Efforts - Focus economic X X X X X. X X X X development efforts on retaining and expanding local businesses. Consolidate Economic Development Efforts - Develop programs X X XI-x X X X X X which emphasize workforce development. iFINANCIAL `MANAGEMENT Level of Expertise Within the Finance Department - All X X specifically identified accounting positions will be announced and filled. Employee Training - The City, in conjunction with the Blue Ribbon . X X Task Force, Florida International University ("FIU"), the Finance Department and the Human Resources Department will prepare a comprehensive training program for the Finance Department. Reconciliation of Fixed Asset Records - The City will implement a X X new Fixed Assets SCI module. General inventory procedures will also be developed and implemented. Improve -Controls Over Purchase of Goods and Services - In X conjunction with the City Attorney, and if legally allowable Finance will prepare an amendment to. the procurement ordinance to indemnify the City from unauthorized purchases or requisitions by City employees.. The amendment will be prepared and submitted to the City Commission Centralize Grants Management Procedures - The City will X centralize grants administration as a part of the. continuing reorganization of the City. Accounting and Operations Procedures Manual - With assistance X X X X X X X X from.external auditors, the Finance Department will complete an accounting operations and procedures manual and provide on - line access through the SCI System. Debt Management - Submit a comprehensive Debt Management X Policy for adoption by the City Commission. M I A M I • M A N A G E M E N T A N D PRODUCTIVITY INITIATIVES 32 APPROXIMATE INITIATIVE Q4 97 Q1 98 Q2 98 Q3 98 FYI 999 FY2000 FY2001 FY2002 FY2003 Debt Management - The City should increase its Non -Ad Valorem X X X X X X X X X Revenue over Maximum Annual Aggregate Debt Service ratio of liquidity to 10 times. Debt Management- The City should look for escrow restructuring X X X X X X X X X opportunities to potentially enhance its cash position. Cash Management- Develop a system for tracking funds in pooled X X cash. Cash Management- Modify the existing monthly budget -to -actual X report (BE 600) in order to improve its usefulness as a managerial report. Cash Management- Establish an Investment Procedures and X X X Internal Controls manual. Cash Management- Investigate purchasing in-house software to X X perform portfolio management statistical calculations instead of outsourcing. Internal Audit - Complete staffing of Internal Audit Department. X X Internal Audit - Prepare and approve an annual audit plan. X X Internal Audit - Reconstitute existing Audit Committee and X X strengthen its mission. Appoint qualified audit and other professionals to the Committee. Increase Bid Limits - Prepare and submit to the Charter Review X X Commission a proposed Charter amendment to remove specific procurement requirements and. substitute a provision to allow bid requirements to be established by ordinance. The amendment should be prepared and submitted in the comprehensive Charter amendment package referenced earlier. Streamline Procedures for Smaller Purchases - Develop a X X purchasing procedures manual which incorporates the Procurement Assessment Team recommendations for streamlining small dollar purchases. MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 33 APPROXIMATE' INITIATIVE Q4 97 01 98 Q2 98 Q3 98 FYI 999 FY2000 FY2001 FY2002 FY2003 Training, for Purchasing Professionals - In conjunction with the X X X Human Resources Department, the Purchasing Department will develop a skills training program using resources provided by local universities and professional purchasing associations. Increased Use of Technology - Utilizing vendor - provided training, X X X the entire Purchasing Department will be trained to utilize the APS module. Monitoring Inter -fund Transfers - The City must have a well- X X X regulated system in place to monitor fund balances, allocations, and track expenditure levels . that might trigger inter -fund transfers. CAPITAL ASSET&PLANNING.AND MANGEMENT ' Redesign Capital Improvements Planning- The City . must X substantially redesign its Capital Improvements Planning process. In redesigning the City's Capital Improvements Plan, the City should address or incorporate each of the following issues. Selection of Capital Planning Projects- The Budget Office should X X do a comprehensive review of projects in the existing CIP to determine,'given its current set of priorities, which to keep and how those projects will be funded. Selection of Capital Planning Projects- In its CIP, the City should X maximize the use of current City facilities and should, where feasible, give higher priority to maintaining present facilities over new construction. Selection of Capital Planning Projects- City Departments should X X X X X X identify the operating implications of all capital projects and priority should be given to those which will result in a reduction of operating costs. Selection of Capital Planning. Projects- The City should maximize X X X X X X X X X utilization of all federal and state revenue sources for capital improvements. MIAMI MANAGEMENT AND PRODUCTIVITY INITIATIVES 34 APPROXIMATE: INITIATIVE Q4 97 01 98 02 98 03 98 FYI 999 FY2000 FY2001 FY2002 FY2003 Selection of Capital Planning Projects- The City needs to X redevelop a quantitatively -based system for prioritizing projects among the CIP and realistically assess which of those top priority projects can be funded. Coordination of Resources Among Capital Projects - The City X must establish a single controlling staff Department or person who will be responsible for the physical coordination of resources among approved Capital Improvements Projects and with other on -going City operations. Monitor Funding of Capital Projects- The Budget Office must X maintain 'a system that regularly monitors funds allocated to Capital Projects to ensure that those funds will not be subject to inter -fund transfers. Property - Amend the comprehensive list of all the property that the X X X City owns. This list should also document the current condition of the property and what special arrangements (such as with a rental tenant) that exist for the property. Property - The comprehensive list of City property should be X X X X X X X updated on a semi -.annual or quarterly basis. Property - Develop comprehensive plan for the long - term use of all X X X X X X X City assets concurrent with the preparation of the full property list.. If an asset does not have a part in the City's long - term goals, consider transfer of ownership or dramatic change in usage. Property - The City should consolidate maintenance of all important X properties under a single department for greater coordination and operational efficiencies. Property - Raise the user fees of major City assets to make them self X X X X X X X _ - sufficient and financially responsible for their own capital improvement projects. Leases - To the maximum extent possible, attempt to shift the cost of X X X X X X X X X compliance with environmental laws to those who lease property from the City. M I A M I • MANAGEMENT AND PRODUCTIVITY 1 N I T I A T I V E 3 35 APPROXIMATETIME TO IMPLEMENTATION INITIATIVE 04 97 Q1 98 Q2 98 Q3 98 FYI 999 FY2000 FY2001 FY2002 FY2003 Leases - Coordinate compliance with environmental laws through X single individual or department. Leases - If the City does not have sufficient expertise on hand to X research and comply with environmental regulations, it should out - source this function to qualified professionals. Leases - Develop procedure to regularly review leases and rental X X X X X X X agreements to be sure that the City has negotiated market rates and that the agreements have definite renewal and termination dates. If the City does not have experienced staff to address this need, the City should out - source this function. Leases - Such experienced staff or outside professionals that take X X X over the function of lease and rental agreement review should codify a set of regular terms and conditions to be used as the basis of the City's future lease and rental agreements. Leases - The City should share information on its leases and rental X X X X X X X X X agreements among departments such as Legal, Community Planning and Development, and other pertinent divisions. This information will enable these Departments to coordinate lease and rental renewals, the collection of back payments, and/or begin eviction proceedings. Key Property Disposition - The City should market its property X X X X X X X X X through a greater variety of methods including a regular broker (even if such a function is in : house), and its government cable access channel. Foreclosure - Consider the. value of property to the City before X X X X X X X X initiating costly foreclosure procedures. Charter Revisions -, Establish Charter Review Committee that will X report to the Mayor, City Manager and City Commission on recommended changes to the City Charter. Charter Revisions - Recommend changes to the Charter Review X Committee for the City to accept a bid if over a specific percentage of established market value without referendum, even if the minimum of three bids were not received. MIAMI 0 MANAGEMENT AND PRODUCTIVITY INITIATIVES 36 APPROXIMATE' INITIATIVE Q4 97 Q1 98 Q2 98 Q3 98 FY1999 FY2000 FY2001 FY2002 FY2003 Charter Revisions - Establish an indexed minimum standard for leases and other contracts that must go before the City X Commission for approval. - HUMAN RESOUtpWZMPLOYEE BENEFITraining X X X - The Huesources Department will undertake an assessment of Ctraining needs and prepare a draft report to serve as the ba preliminary training budget. Two - tier Wage System - The City should conduct a market rate survey or retain consultants within current budget constraints to conduct a market rate survey of job classifications and prepare a transition plan to adjust the rate disparity. X Succession Planning - The Human Resources Department will survey municipal "best practices," evaluate the executive classifications eligible for retirement, and draft a leadership succession plan for consideration by the City Manager. Civil Service Rules - The Human Resources Department will draft a, work plan and timetable to guide the review and evaluation of X the Civil Service Rules. Workers' Compensation - Improve the management and tracking X X of time off. X X Workers' Compensation - Draft and submit a request for proposal ("RFP.") for a third party claims administrator to administer the workers, compensation claims function. Employee Benefits - Retain a benefits consultant to assist in structuring, evaluating, and procuring a coordinated benefits X package for employees. X X X X X X X X Employee Benefits - Continue to investigate cost effective and X quality healthcare alternatives. MIAMI • MANAGEMENT AND 37 P R O D U C T I V I T Y I N I T I A T I V E S a MIAMI • MANAGEMENT AND PRODUCTIVITY INITIATIVES 38 CHAPTER III FINANCIAL PLAN FINANCIAL PLAN FIVE YEAR PLAN FISCAL YEARS 1998 - 2002 A' number of cost saving efficiencies and new revenue generating initiatives are planned for Fiscal Years 1998 - 2002. These include changing the way the City collects solid waste and trash, increasing revenue on future leases and re -engineering various City operations. By the end of Fiscal Year 1998, the City is anticipating a "Balanced Budget", with reserves earmarked for Working Capital, Contingencies, Risk Management and Future Years' Deficits. A recently developed revenue source, "The Fire Rescue Assessment Fee", is projected to generate $24 to $26 million annually. As a result of the Fire Rescue Assessment Fee, the Administration is recommending the elimination of the solid waste fee currently charged to its residents. The plan includes $11.15 million in Capital Improvement Projects to be funded in FY1998, and $5.7 million in FY1999, to be standardized at $7 million annually thereafter. The City is providing for $10.2 million in FY98 and $1.0 million in FY99 towards Future Years' Deficits in Fiscal Years 2000 through 2002. The City intends on selling lands totaling $5.8 million in Fiscal Year 1998 to cover part of this non -recurring expense. Next, the plan addresses the importance of building up annual reserves by funding $1.1 million for risk management, $1 million for contingencies and adding $2.26 million, from FY99 onwards, towards the Working Capital Reserve. The City also addresses the lack of middle management and training by funding $1.2 million to be used towards management recovery. All of the above items that compose the Five Years' plan are crucial for the continued fiscal recovery of the City. The City projects a modest annual surplus in each of the years of its Five Year Plan (see Exhibit I "Revenues by Character and Expenditures by Major Object - 5 Year Estimates" and Exhibit II "Fiscal Year 98 and 99 Cash Flow and Recurring vs. Nonrecurring Analysis"). MIAMI • FINANCIAL PLAN .39 ASSUMPTIONS USED FOR THE FIVE YEAR PLAN (FYI 998 - 2002) REVENUES: We have utilized the Fiscal Year 1997 revenues and expenditures as the base for re-. examining the Five Year Plan estimates. Our assumptions and methodologies are the same as the ones used to estimate the Five Year Plan presented to the Oversight Board on April 15`' 1997. In that plan, the City had estimated a surplus of $10,080,707 to be carried forward in FY98. The City has increased its surplus projection by $3,077,855 bringing the total FY98 surplus to $13,158,562, or an increase of 30.53%. Property Taxes: In projecting property taxes, a discount of 5% was provided for delinquencies and early payments. Property tax projection have been carried over to FY2002, using the same methodology employed in estimating the previous Five Year Plan. To recap, a growth rate of 1.52% was utilized for FY99 and 3% for the succeeding Fiscal Years, reflecting Incremental Tax dollars for the South East Overtown Park West (SEOPW) and the OMNI Incremental Districts. Projected assessment growth rates are illustrated below: Taxable Property 13. 12.33 12.69 11.82 12.00 10 99 11.35 :'. 10.47 1093 10.74 10.47 10.49 10.19 10.23 9.81 9.49R 9.23 F Fil N n'F] 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 Fiscal Year M IAM I • FINANCIAL PLAN 40 Franchise and Public Service Taxes: Franchise and Public Service Taxes were based upon a straight-line projection which took into account FY1990 through FY1997 actuals. These revenue projections for franchise and utility service taxes were further discounted by 5%. 43 39 Cn i 35 I � 31 27 8.00% 0 6.00% c� 4.00% 2.00% 0.00% 21 20 c 0 19 18 17 Public Service Taxes 90 91 92 93 94 95 96 97 98 99 00 01 02 Fiscal Year Percentage Change per Year 6.01 % - ------------------------ 4.08% - 3.99% ----------------- --------- --------- ------------ ------- --- 2.20% 1.50% ----- ---- 2.29% 2.67% 2 65% srF 2 635/6 0. ° �w, 91 92 93 94 95 96 97 98 99 00 01 02 Fiscal Year Florida Power & Light Company Franchise Fees 91 92 93 94 95 96 97 98 99 00 01 02 Fiscal Year MIAMI • FINANCIAL PLAN 41 Business Licenses: $5.7 million for FY97 has been projected, which is slightly lower than the amount collected in FYI 997. Intergovernmental Revenues: The amounts utilized were compiled earlier with the assistance of Mr. Alan Johansen and Mr. Edward Montanero, of the State of Florida, with a 2% increase projected for the Fiscal Year of 2002. We increased FY2002 Florida Revenue Sharing by 2.11 % and 2.2% for the Half Cent Sales tax. Further, the US Department of Justice revenues were projected based upon a $3,000,000 Law Enforcement Block Grant and reimbursements for Police Grant funded positions. The total number of sworn positions will stand at 1,167..102 of these positions have been funded for. 3 years beginning April 1, 1998. Upon expiration of the grant on FY2002, the Police Department will have a sworn staff complement of 1065 full time positions. Charges for Services: The projection methodology utilized was based on the following. a) 3 yr. Averages. b) 3 yr. Averages with growth rate assumptions. c) Actual Revenues received for FY97. Solid Waste Fees Solid Waste fees as contemplated by the earlier Five Year Plan have been reduced from $166 annually to $33 annually, based on the passing of the Fire Assessment Fee. A conservative assumption of 90% collection was utilized to arrive at the $2,006,532 projection. Fire Rescue Assessment: The City of Miami entered into a professional services agreement with Government Services group, Inc. ("CSG"), David M. Grifth '& Associates ("DMG") and Nabores Giblin & Nickerson, P.A..("NG&N") to provide specialized services in the development and implementation of a non -ad valorem assessment, program to fund fire and rescue services within the City of Miami (the "Fire Rescue Assessment Project"). The Administration recommends that this fee be billed by the City through the normal billing process in January 1998. This will give the City sufficient time to conduct the M1AM 1 • FINANCIAL PLAN 42 necessary field work to assure that the property data is accurate. In subsequent years, the Administration recommends that the Fire Rescue Fee be assessed on the yearly property tax bill. Coupled with better collection methods, liens on delinquencies and a projected growth factor of three percent, the Administration anticipates revenues of $27.3 million in Fiscal Year 1999, $25.87 million in Fiscal Year 2000 and $25.9 million in Fiscal Year 2001. High Impact / Usage Fee The Administration is recommending the drafting of a Fire Rescue High Usage Fee ordinance for Commission action. This fee will be imposed on those non -fire fee assessed properties such a health care providers, governmental agencies, or educational facilities that due to their high demands for fire rescue services adversely impact the department of Fire rescue. The fee will be $200 for each property with more 'than 5 uses a year and $150 for non -address specific calls. This fee. is projected to generate $500,000 in its first years (FY1998), and $1 million each year thereafter. Fire Inspection Fee: The South Florida Fire prevention Code requires inspection before certain certificates of use and / or occupancy are issued. Ongoing annual inspections are also conducted for fire safety permit renewals. Currently, there is a fee for issuing fire safety permits based on square footage of the premises. With the inception of the Fire Assessment Fee, the expenses associated with inspections will be covered in a more comprehensive way, obviating the need for a separate fire permit fee. Thus, starting in Fiscal year 1998 and beyond, revenues in an amount of $1 million annually will be abated. Other revenues such as Dockage, Ticket Surcharge, Haulers Permits, Certificate of Use renewals, and Safety Permit fees, were extended into FY2002 without any growth. Note: • Revenues and Operating expenses for the Miami Spring Golf Course for FY98- 2002 have been eliminated due to the sale of the Golf Course facility. Fines and Forfeits: Based upon the collection of FYI 997 and the auto impoundment program this category is projected to bring approximately $3.4 million annually. Miscellaneous: Convention Center Conversion / Parking System Privatization: In regard to the Convention center, there currently exists $6 million in annual debt service payments which make it unattractive for a potential purchaser. The strategy for M IAM I • FINANCIAL PLAN 43 disposition is to put together a real estate disposition package which will include this property and others to make it. financially feasible for an investor to assume control of the Center. Staff is -currently in the process of identifying other properties that might be added to a Convention center "package". The privatization of the parking system would enable the City to access approximately $8 million inreserves that currently exist and a future stream of income from parking revenues which currently do not accrue to the City. The feasibility of this privatization is currently being studied, and if it is found to be beneficial to the City, discussions will begin with the Off -Street Parking Authority to work out the best management and operational arrangement. 'An amount of $2,000,000 has been projected for the years 2001 and 2002 which conforms with earlier estimates. Land Sales: Land sales in the amount of $5,805,000 have been projected as one time revenue for FYI 998 as indicated below:. . Bobby Maduro Baseball Stadium $1,642,000 Watson Building 500,000 Property Maintenance Building 1,000,000 48 NW 5" Street 2,350,000 Former Fire Station No. 14 367,000 Manuel Artime Center 1,300,000 Former Parks Administration Building 365,000 Total $7,524,000 Less - Contingency (1,719,000) Adopted Budget $5,805,000 Further, the Municipal Justice Site has been earmarked for sale in Fiscal Year 1998 at an amount of $5.7 million. Approximately $4 million from that sale will be used for deferred C.I.P. projects from Fiscal Year 1997. The difference of $1.7 million will be used as reserves. Other Land Sales: Although the City is currently negotiating the sale of the FEC tract, the potential proceeds from this sale will not be included in the City's revenue forecast until all of the negotiations pertaining to the sale are finalized. Lease Revenues: The Department of Planning and Development will be beginning the RFP process for the development of several City -owned properties, which will result in the development of M IAM 1 • FINANCIAL PLAN 44 certain market -rate lease agreements. The Administration is currently preparing the following properties prospectus' for joint public / private developments for presentation to the private sector: Virginia Key Hotel and Yacht Club, Virginia Key Eco-campground, Miami Marine Stadium and the Marine Recreational Center. The City will be using an expedited kFP process in order to assure that projected revenues are received as planned. Other projects like the Miami River Development will also be initiated in Fiscal Year 1998 to assure lease revenues in Fiscal Year 2000. Non -Revenues: Non -Revenues are consistent with the -earlier Five Year Plan and we have rolled over the FY2001 estimated revenues into FY2002. Group insurance contribution from retirees was increased by $247,138..We are taking into account actual revenues derived from this group. This projection assumes no contributory increases to the employees nor the retirees for all 5 years. Internal Service Funds: Contribution from Utility Service taxes after covering non -general obligation debt service is transferred into the General Fund. It should be noted that the Convention Center annual debt in the amount of $6 million has not been taken into account due to the impending privatization option for FY2000, 2001 and 2002. This is consistent with the Five Year Plan as presented on April 15, 1997 to the Oversight Board. Contribution from the General Fund (Surplus Carryover): Included in FY98, there is a surplus carryover from FY1997 in the amount of $13,158,562. Also included are surpluses for FY2000 in the amount of $3,104,916, FY2001 in the amount of $4.4 million and FY2002 in the amount of $3.7 million. EXPENDITURES: • Salary and fringes were projected using the City's Salary Projection System. This system uses the current position listing as the base and projects out taking into consideration step increases based upon anniversary and longevity dates. • 4% cost -of -living increases were added in September 1998 and then in January 2000. • Departmental operating costs were projected based on current level with a 3% allowance for CPI in FY99 and subsequent years. M IAM 1 • FINANCIAL PLAN 45 • Departmental capital was projected at the current level and was adjusted on a case by, case basis for those departments whose capital needs fluctuate due to one time major expenditures. • Capital Improvement Projects were prioritized on a year to year basis and were accommodated based upon the availability of funds. Salaries and Salary Related: The City's attrition amount has been consistent with the existing Five Year Plan and the budgeted figure of $2,923,155 for FY1998 to FY2002. This figure was originally based on the methodology of 50% of vacant positions' salaries. Vacant Salaries stood at $5,846,310, excluding any Fringe Benefits, which stand are approximately 35% of salaries. As of October 10, 1997, the City had 310 vacant positions for a total Vacant Salary amount of $7,703,274, excluding Fringe Benefits. Management Recovery: With the exception of the Police and Fire Departments, one of the most obvious deficiencies of the City is a lack of middle management. There is a huge void between the department director, or assistant director, and the next level of management. In many instances, employees of lower management have been forced to step up and assume responsibilities for which they were neither qualified nor trained. It is imperative that this void be addressed and rectified. Accordingly, $1.2 million was appropriated in FY98 for management recovery. At least 20 middle managers need to be hired as quickly as possible and a training program implemented starting in Fiscal Year 1998. These new positions will start to alleviate the problem related to lack of middle management and provide the needed resources to address the operational deficiencies of the City. Included in this figure are resources for training which has been largely absent over the last few years. Finally, the City has provided funds for the Management and, Productivity Initiatives listed in Chapter II of the Five Year Plan. Solid Waste Service to Multi -Family Units: The City currently provides solid waste disposal services to all single family and duplexes. In addition, the City, also .provides service to 3 and 4 unit apartment buildings who chose to pay for these services (currently approximately 4,400 units). Private solid waste services are provided to all other commercial properties. In order to assure equitable service to its citizenry, the'City proposes providing solid waste disposal services to approximately 7,500 additional units in 3 and 4 unit apartment buildings not currently receiving solid waste disposal services. M IAM 1 • FINANCIAL PLAN 46 Increased Solid Waste Enforcement: In order to better enforce the City's solid waste code, the Administration is recommending the expenditure of an additional $250,000 annually, to be appropriated towards hiring qualified solid waste inspectors. This added enforcement will keep the City cleaner and will work to combat illegal dumping. The hiring process is currently being instituted. Blue Ribbon Task Force: The City's arrangement with the Blue Ribbon Task Force charged with investigating best business practices and their respective applications for the City, requires that $300,000 be provided annually for additional consulting services or for the cost of implementation of the Task Force's recommendations. The actual disbursements of such funds will be specifically approved by the City Commission. The Administration is recommending that during FY98 these funds be utilized to retain a facilitator for the Strategic Planning process and a Consultant to evaluate the City's computerization needs. Solid Waste Efficiencies: Solid Waste efficiencies'have been projected at $1.1 million dollars annually. The City is studying various options to enhance the efficiency of the solid waste operation including privatization. Costs from private waste haulers and a plan from the solid waste employees' union are being examined. Beginning with Fiscal Year 1999, the City will accrue a minimum savings of $1.1 million annually. Risk Management Efficiencies: The City of Miami is anticipating the improved control of claims based on several proactive measures. This includes a City-wide safety program Committee that is committed to the safety of our employees and citizens alike. As a result of their efforts, workers compensation claims have dropped 24.6% from 366 to 276 during the first six months of this Fiscal Year as compared to the same period last year. The number of other Risk Management claims filed and amounts paid as a result of those claims have dropped significantly between FY1996 and FY1997: . Auto General Liability Police Tort Police Off. Liability Claims (18.0%) (40.7%) (39.0%) (6.9%) Payment (20.4%) (48.8%) (26.0%) (87.6%) The Administration anticipates further reductions during Fiscal Year 1998. In addition, the City is inspecting and repairing sidewalks in an effort to reduce slip / falls claims throughout the City. The Administration is also addressing safety issues in City parks. Additionally, the City has realized a significant reduction in General Liability claims from 243 in FYI 996 to 144 in FYI 997. M IAM I 9 FINANCIAL PLAN 47 Management has approved hiring additional adjusters and support staff to more appropriately handle the City's claim load. As a result, each adjuster will have a more manageable workload to assist injured employees in their rehabilitation and prompt return to work. This translates to savings in the medical and indemnity aspect of a workers' compensation claim. As a result the City can project, barring any catastrophic injury, savings of at least 10 percent on new claims. Therefore, with the start of a citywide safety program, upkeep of sidewalks and parks equipment the City is projected to save $1.0 million in FY1999, $1.25 million in FY2000, $1.5 million in FY2001 and $2.0 million in FY2002. Capital Improvement Program: In many different areas the City has woefully inadequate capital assets. A survey of the capital needs as defined by the department directors amounted to $25 million for fiscal year 1998. The City Manager reviewed this list and funded $11.15 million of necessary capital needs. The City has standardized capital projects funded from the general fund to $7 million a year through the Fiscal year 2000, with the exception of Fiscal year 1999 where $1.3 million was forwarded to Fiscal Year 1998 for the purchase of necessary Fire Department apparatus. Other capital projects will be funded from Federal Grants ($13.8 million), State Grants ($1.0 million), City Bonds ($13.2 million), Private Funds ($150,0.00) and other Capital Improvement funds ($27.8 million). Reserves Working Capital: Per the City's agreement with the State's Financial Emergency Oversight Board, a Working Capital Reserve in the amount of. $6.8 million is required by January 25, 1998. $4.0 million was provided for in FY97, $2.8 million for FY98 and $2.27 million thereafter. Contingency Reserve: This reserve of $1 million per year, in addition'to the Working Capital, shall provide additional flexibility for the City to address other potential issues that may arise during the fiscal year. Other: $5.0 million in unappropriated funds has been reserved for Fiscal year 1998. This reserve is built up of a $3 million additional carryover from Fiscal Year 1997 and $2 million from expenditure savings/revenue enhancements. The Administration is studying various options for it's usage. MIAM 1 9 FINANCIAL PLAN 48 Risk Management Reserve: It has long been recognized that a reserve should be established to address the outstanding liabilities of the City in both the General Liability and Workers' Compensation areas. In an effort to attain a reserve which will grow over a period of time and will not adversely impact the City's financial posture, the City plans to budget $1.1 million per year for the next 5 years, over and above any actual payments, to establish a $5.5 million cushion for a catastrophic event. The City will continue the $1.1 million per year allocation thereafter until it reaches a reserve of at least $15 million, which will represent approximately 20% of the estimated total liability (approximately $75 million). Also, over time the City expects the liability to decrease due to the staff s efforts to work the liability from the front-end (i.e. by challenging cases and settling claims in an efficient manner). M IAMI • FINANCIAL PLAN 49 EXHIBIT Revenues By Character And Expenditures By Major Object: Five Year Estimates MIAMI w FINANCIAL PLAN 50 CITY OF MIAMI 5-YEAR ESTIMATES AS OF: 10/8/97 REVENUES BY CHAR / EXPENDITURES BY MAJOR As OF: 10/8/97 FY 1998 FY 1998 Year FY 1999 FY 2000 FY 2001 FY 2002 Revised End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund . 01 GENERAL FUND Revenues 01 TAXES 02 LICENSES AND PERMITS 031NTERGOVERNMENTALREVENUE 04 CHARGES FOR SERVICES 05 FINES AND FORFEITS 06 MISCELLANEOUS REVENUE 08 NON -REVENUES 09 INTERNAL SERVICE FUNDS Total for Revenues Expenditures 100 SALARIES & WAGES -FIXED 200 FRINGE BENEFITS -FIXED 300 OPERATING EXPENSES -FIXED 400 OPERATING EXPENSES -VARIABLE 500 CAPITAL OUTLAY -VARIABLE 600 GRANTS IN AID 600 TRANSFERS TO OTHER FUNDS Total for Expenditures Total for Revenues Total for Expenditures 125,525,725 123,393,391 125,606,746 128,536,473 131,743,438 135,023,919 8,564,329 8,681,314 8,684,790 8,688,370 8,692,058 8,692,058 37,103,560 37,407,482 40,459,533 33,722,870 30,280,750 28,194,848 50,926,575 53,419,574 57;833,346 56,606,238 56,866,155 57,102,105 3,351,713 3,378,526 3,378,526 3,378,526 3,378,526 3,378,526 14,671,827 14,735,767 9,196,694 11,243,998 11,785,222 11,785,222 13, 670, 082 13, 729, 539 12, 26 5, 539. 12, 265, 539 12,265,539 12, 265, 539 36,134,970 41,091,760 26,886,405 39,842,797 42,353,707 42,732,691 289,948,781 296,837,363 284,311,579 294,284,811 297,365,396 299,174,908 147,150,147 146,584,800 154,996,653 161, 546,393 161,646,148 160,855,064 68,017,637 69,261,798 70,644,329 72,432,415 73,986,587 75,319,246 70,781,543 71,299,771 73,525,319 75,708,185 77,797,646 79,906,407 50,812,946 50,959,601 50,482,610 51,801,356 53,167,083 54,331,339 2,639,421 2,629,734 2,697,003 2,676,634 2,671,152 2,666,689 1,509,954 1,359,600 1,359,600 1,359,600 1,359,600 1,359,600 (-56,002,774. (46,297,858) (-69,772,212 (-71,474,220 (-73,500,439 (-75,335,978) 284,908,875 296,797,446 283,933,302 294,050,363 297,127,777 299,102,367 289,948,781 295,837,353 284,311,579 294,284,811 297,365,395 299,174,908 284,908,876 295,797,446 283,933,302 294,050,363 297,127,777 299,102,367 5,039,906 39,906 378,277 234,448 237,618 72,541 MIAMI • FINANCIAL PLAN 51 CITY OF MIAMI 5-YEAR ESTIMATES AS OF: 10/8/97 As OF: 10/8/97 REVENUES BY CHAR / EXPENDITURES BY MAJOR FY 1998 FY 1998 Year FY 1999 FY 2000 FY 2001 FY 2002 1 Revised End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 16 SPECIAL REVENUE FUND Revenues 01 TAXES 42,051,745 43,930,680 45,011,244 46,161,603 47,388,074 48,681,240 03 INTERGOVERNMENTAL REVENUE 1,600,400 1,600,400 1,624,195 1,648,531 1,669,974 1,685,827 04 CHARGES FOR SERVICES 12,451,801 12,451,802 12,514,273 12,578,616 12,644,891 12,647,338 06 MISCELLANEOUS REVENUE 1,469,986 1,469,986 1,482,808 1,496,015 1,509,618 1,509,618 09 INTERNAL SERVICE FUNDS 5,715,501 4,684,270 4,723,502 4,917,425 4,973,620 5;008,722 Total for Revenues 63,289,433 64,137,138 65,356,022 66,802,190 68,186,177 69,532,746 Expenditures 100 SALARIES & WAGES -FIXED 5,411,845 4,298,824 4,490,782 4.694,101 4,748,418 4,762,159 200 FRINGE BENEFITS. -FIXED 2,065,135 1,952,859 1,964,597 1,975,370 1,977,169 1,977,822 300 OPERATING EXPENSES -FIXED 1,002,078 990,759 1,020,483 1,051,096 1,082,632 1,111,734 400 OPERATING EXPENSES -VARIABLE 2,962,047 3,061,413 3,148,054 3,237,526 3,331,941 3,427,990 500 CAPITAL OUTLAY -VARIABLE 359,350 357,250 357,250 357,250 _ 357,250 357,250 600 GRANTS IN AID 25,000 25,000 25,000 25,000 25,000 25,000 600 TRANSFERS TO OTHER FUNDS 51,463,977 53,298,201 54,349,856 55,461,847 56,663,767 57,870,789 Total for Expenditures 63,289,432 63,984,306 65,356,022 66,802,190 68,186,177 69,632,744 Total for Revenues 63,289,433 64,137,138 65,356,022 66,802,190 68,186,177 69,532,746 Total for Expenditures 63,289,432 63,984,306 65,356,022 66,802,190 68,186,177 69,532,744 0 152,832 0 0 0 1 MIAMI • FINANCIAL PLAN 52 CITY OF MIAMI 5-YEAR ESTIMATES AS OF: 10/8/97 As OF: 10/8/97 REVENUES BY CHAR / EXPENDITURES BY MAJOR FY 1998 FY 1998 Year FY 1999 FY 2000 FY 2001 FY 2002 1 Revised End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 20 DEBT SERVICE FUNDS Revenues 01 TAXES 21,043,066 21,043,066 21,505,281 19,343,104 19,184,697 18,587,698 03 INTERGOVERNMENTAL REVENUE 5,421,687 5,421,687 5,420,896 5,421,643 5,419,976 5,419,582 09 INTERNAL SERVICE FUNDS 26,493,957 26,493,957 26,298,182 17,756,046 17,729,275 18,462,877 Total for Revenues 52,968,710 52,958,710 53,224,359 42,520,793 42,333,948 42,470,157 Expenditures 300 OPERATING EXPENSES -FIXED 47,761,122 47,761,122 48,021,594 37,315,093 37,125,225 37,260,648 400 OPERATING EXPENSES -VARIABLE 94,966 94,966 97,815 100,750 103,773 106,887 600 TRANSFERS TO OTHER FUNDS 5,102,622 5,102,622 5,104,950 5,104,950 5,104,950 5,102,622 Total for Expenditures 62,958,710 52,958,710 53,224,369 42,520,793 42,333,948 42,470,157 Total for Revenues 52,958,710 52,968,710 63,224,359 42,520,793 42,333,948 42,470,157 Total for Expenditures 52,958,710 52,958,710 53,224,359 42,520,793 42,333,948 42,470,167 0 0 0 0 0 0 M IAMI • FINANCIAL PLAN 53 CITY OF MIAMI 5-YEAR ESTIMATES AS OF: 10/8/97 As OF: 10/8/97 REVENUES BY CHAR / EXPENDITURES BY MAJOR FY 1998 FY 1998 Year FY 1999 FY 2000 FY 2001 FY 2002 Revised End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 60 TRUST & AGENCY FUNDS Revenues . 01 TAXES 03 INTERGOVERNMENTAL REVENUE 06 MISCELLANEOUS REVENUE 09 INTERNAL SERVICE FUNDS Total for Revenues Expenditures 100 SALARIES & WAGES -FIXED 200 FRINGE BENEFITS -FIXED 300, OPERATING EXPENSES -FIXED 400 OPERATING EXPENSES -VARIABLE 500 CAPITAL OUTLAY -VARIABLE 600 TRANSFERS TO OTHER FUNDS Total for Expenditures Total for Revenues Total for Expenditures Overall Total for Revenues Overall Total for Expenditures 1,323,060 957,303 957,303 1,047,303 1,137,303 1,227,303 193,67.1 300,000 300,000 300,000 300,000 300,000 592,994 450,000 450,000 450,000 450,000 450,000 319,414 185,000 . 185, 000 185,000 185,000 185,000 2,429,139 .1,892,303 1,892,303 1,982,303 2,072,303 2,162,303 231,075 231.,075 231,075 231,075 231,075 231,075 111,118 111,118 111,118 111,118 111,118 111,118 112,027 112,027 115,386 118,849 122,415 126,087 283,188 180,780 177,421 173,958 170,392 166,720 25,000 0 0. 0 0 0 1,666,731 1,257, 303 1,257,303 1,347,303 1,437,303 1,527,303 2,429,139 1,892,303 1,892,303 1,982,303 2,072,303 2,162,303 2,429,139 1,892,303 1,892,303 1,982,303 2,072,303. 2,162,303 2,429,139 1,892,303 1,892,303 1,982,303 2,072,303 2,162,303 0 . 0 0 0 0 0 408,626,062 414,825,603 404,784,263 403,586,156 414,632,765 ' 404,405,986 5,039,906 192,738 378,277 405,590,097 409,957,823 413,340,113 405,355,649 409,720,205 413,267,571 234,448 237,618 72,542 MIAM I • FINANCIAL PLAN 54 EXHIBIT 11 Cash Flow Analysis For Fiscal Years 1998 And 1999 M IAM 1 9 FINANCIAL PLAN 55 City of Miami Cash Flow Analysis for Fiscal Years 1998 and 1999 o c y- . c an, a ar- r a- un u- u e- p y 9 p Beginning / Ending Cash 20,698.949 20,891,687 Monthly Cash Position (11,680,333) (7,166,529) 50.069,224 12,235,291 (7,270,747) (4,547,918) (4,231,903) (9,915,067) (12,716,461) (752,582) (5,786,776) 1,956,539 192,738 Net General Fund Cash Flow , e• . c v- c I an. a ar- pr May un u- ug ep- Beginning / Ending Cash 20,891,687 32.574,895 Reserve for Future Deficits 10,204,916 Risk Management Reserve 1,100,000 Monthly Cash Position (12,130,736) (4,757,923) 64,951,860 4,519,265 (8,689,697) (1,809,910) (6,741,027) (9,170,820) (10,007,835) (9,294,105) (12,984,323) 6,493,543 378,292 Net General Fund Cash Flow , Note s (1) Community Development Block Grants (CDBG) and Capital Improvement Projects have not been included in the above Cash Flow (2) Beginning FY'98 Cash Flow has been adjusted for Working Capital ($4,000,000) and Compensated Expenses ($1,464,000) (3) Beginning FY'99 Cash Flow excludes FY'1998 Working Capital ($2,800,000) MIAMI • FINANCIAL PLAN 56 EXHIBIT 111 Recurring Vs. Non -Recurring Analysis MIAM I • FINANCIAL PLAN 57 Fund General Fund Special Revenue Fund Debt Service Funds Trust & Agency Funds Total Fund General Fund Special Revenue Fund Debt Service Funds Trust & Agency Funds Total Fund General Fund Special Revenue Fund Debt Service Funds Trust & Agency Funds Total Schedule of Recurring and Non -recurring Revenues vs. Expenditures Fiscal Year 1998 Summary Analysis Excess/(Deficit) Recurring Recurring Recurring Revenue vs. Revenue Expenses Recurring Expenses $ 275,065,767 $ 263,319,815 $ 11,745,952 64,137,138 60,279,820 3,857,318 52,958,710 52,958,710 - 1,892,303 1,892,303 - $ 394,053,918 $ 378,450,648 $ 15,603,270 Recurring Revenue $ 284,311,579 65,356,022 53,224,359 $ 404,784,263 Recurring Revenue $ 291,179,895 66,802,190 42,520,793 1,982,303 $ 402,485,181 Fiscal Year 1999 Summary Analysis Excess/(Deficit) Recurring Recurring Revenue vs. Expenses Recurring Expenses $ 271,737,851 $ 12,573,728 61,651,536 3,704,486 53,224,359 - 1,892,303 - $ 388,506,049 $ 16,278,214 Fiscal Year 2000 Summary Analysis Excess/(Deficit) Recurring Recurring Revenue vs. Expenses Recurring Expenses $ 2817550,372 $ 9,629,523 63,097,704 3,704,486 42,520,793 - 1,982,303 - $ 389,151,172 $ 13,334,009 Percentage of Recurring Revenue over Recurring Expenses 104% 106% 100% 100% 104% Percentage of Recurring Revenue over Recurring Expenses 105% 106% 100% 100% 104% Percentage of Recurring Revenue over Recurring Expenses 103% 106% 100% 100% 103% MIAMI 9 FINANCIAL PLAN 58 Fiscal Year 2001 Summary Analysis Excess/(Deficit) Percentage of Recurring Recurring Recurring Recurring Revenue vs. Revenue over Fund Revenue Expenses Recurring Expenses Recurring Expenses General Fund $ 292,965,395 $ 284,623,819 $ 8,341,576 103% Special Revenue Fund 68,186,177 64,481,691 3,704,486 106% Debt Service Funds 42,333,948 42,333,948 - 1000/0 Trust & Agency Funds 2,072,303 2,072,303 - 1000/0 Total $ 405,557,823 $ 393,511,761 $ 12,046,062 103% Fiscal Year2002 Summary Analysis Excess/(Deficit) Percentage of Recurring Recurring Recurring Recurring Revenue vs. Revenue over Fund Revenue Expenses Recurring Expenses Recurring Expenses General Fund $ 295,474,908 $ 286,596,904 $ 8,878,004 103% Special Revenue Fund 69,532,745 65,828,258 3,704,487 106% Debt Service Funds •42,470,157 42,470,157 - 100% Trust & Agency Funds 2,162,303 2,162,303 100% Total $ 409,640,113 $ 397,057,622 $ 12,582,491 103% M IAM I FINANCIAL PLAN 59 CHAPTER IV CITY WORKFORCE OP F r CITY WORKFORCE OVERVIEW It is the people who work for the City of Miami, who collect the City's trash, fight fires, patrol its streets, maintain its parks, and deliver all the public services that allow the municipality to function. The Strategic Financial Recovery Plan, submitted November 15, 1996, includes a transmittal memorandum which affirms the value and dedication of Miami's workforce, describing the employees and department directors as key resources for the City's future success. City services are generally labor-intensive. The cost of employee wages and benefits is almost always the single largest component of a municipality's budget. For the City of Miami, personal service expenditures represent 66.1 percent of the FY97 General Fund budget at a cost of over $159.0 million. Given the budgetary significance of the labor component, much thought has gone into developing a deliberate human resource strategy which is complimentary to the fiscal and service needs of the City, and at the same time addresses the social objectives embraced by the current administration. Moreover, given the need to enhance productivity, contain costs, and capture efficiencies, most of the City's planning efforts have been targeted toward transforming the City's organizational structure to reflect a higher level of responsiveness and accountability. Similar to other urban areas, the City of Miami will continue to face a series of structural challenges. This includes changes in the business and social environments, and changes to levels of federal, state, and regional funding. Both current and future administrations will be confronted by the pressures of rising labor• costs and increasing demand for services, all within an environment of limited revenues. In addition, city mayors and managers must continue to strike a balance between strategies which foster innovation and creativity, and those necessary policies which impose accountability and operational discipline. In order to move into the future successfully, the City is examining its cost structure, by emphasizing the efficiency and effectiveness of its personnel. The City must also analyze and develop strategies which provide positive environments of change for its workforce, and which ultimately reduce the relative cost of services without compromising quality. . 9, DESCRIPTION OF THE WORKFORCE The City is a major employer within Miami. Budgeted General Fund positions are estimated at 3,420 for FY98, which include allocations for part-time and seasonal work. As shown in the chart below, budgeted positions have declined over the last eight years from 3,981 positions in FY90 to approximately 3,420 projected for FY98. While. there are variations in the interim years primarily due to the short term impact of early retirement programs, the overall downward trend suggests a slight structural shift in the delivery of municipal services. The table below, taken from the City's initial FY98 projected budget, describes the composition of City workforce by department for the upcoming fiscal year. MIAMI 0 CITY WORKFORCE 61 Positions by Department GENERAL FUND Mayor PositionsEstimated 1997-98 8 Total 0.23% Board of Commissioners 20 0.58% City Manager 12 0.35% Office of Budget & Management Analysis 22 0.64% Office of the City Clerk 9 0.26% Office of Civil Service 4 0.12% Office of Community Information 5 0.15% Office of Equal Opportunity/Diversity Programs 4 0.12% Office of the Hearing Boards 6 0.18% Office of Labor Relations 7 0.20% Office of Professional Compliance 3 0.09% Building and Zoning 75 2.19% Conferences, Conventions, & Public Facilities 28 0.82% Finance 57 1.67% Fire Rescue - Civilian 59 1.73% Fire Rescue - Sworn 566 16.55% General Services Administration 156 4.56% Human Resources 24 0.70% Information Technology 46 1.35% Internal Audits and Reviews 9 0.26% Law 45 1.32% Miami Springs Golf Course 9 0.26% Nondepartmental Accounts (SP&A) Miami Action 2 0.06% Sister Cities 2 0.06% Parks and Recreation 122 3.57% Planning and Development 42 1.23% Police - Civilian 485 14.18% Police - Sworn 1,065 31.14% Public Works 91 2.66% Purchasing 17 0.50% Solid Waste 228 6.67% Special Revenue Fund 182 5.32% Trust & Agency Fund 10 0.29% TOTAL GENERAL FUND,•x „• ;, 3420 :, 1,00:00% As can be seen from the table, 70.35 percent of all budgeted positions are within the Police, Fire, and Sanitation Departments. This is indicative of the essential and basic character of the services provided by the City. Positions within the City are also categorized by job classification, as either classified or unclassified. Classified positions are those positions governed by civil service rules, while unclassified positions are exempt. Within the classified category, the City recognizes its four unions: Police (FOP), Fire (IAFF), Sanitation (CIGU) and General Employees (AFSCME). Also within the classified category is a small population of managerial/ confidential (M/C) employees who are not eligible for union membership. M IAM 1 0 CITY WORKFORCE 62 Unclassified, on the other hand, covers executives, professionals and some clerical positions. For FY97, approximately 92 percent of the City's employees are classified, 91 percent are affiliated with a union, and 8 percent are unclassified. Budgeted Positions by Classification/Union Affiliation FOP 30.79% AFSCME " 3 36.07% �2 Unclassified - Clerical & Professional .511 % Classified M/C Executives/ 0.86% CIGU IAFF Professionals 0 . ° 17.90% 2.47% Another distinction within Miami government is its racial and gender diversity. One basic objective of Miami's Equal Employment and Affirmative Action policies is to promote a total quality work environment which reflects the racial and gender balance of the City. Approximately 70 percent of Miami's workforce is . male, while 30 percent is female. M IAM 1 • CITY WORKFORCE 63 Black 31.8% 413% The racial composition of Miami's workforce is comprised of individuals of Hispanic origin (47.30/o), followed by Black (31.8%), White (20%), Asian (0.70/6), Indian (0.1%), and other (0.2%). Like other cities, there has been relatively little turnover among staff. The average tenure for a City of Miami employee is 10.9 years of service. This average increases progressively for director positions and higher management classifications, with the exception of the City Manager position. The bar chart below details the concentration of employees by years of service 1200 1000 H d d C 800 a E W 600 O 400 E Z 200 0 City of Miami Employees by Years of Service 0to5 5-10 10-15 Years of Service 15 - 20 20 and abov M IAM I 0 CITY WORKFORCE 64 Looking forward, there is a direct relationship between age of workforce and increasing pressures of personnel costs, the need for leadership succession planning, and the importance of training/retraining. ORGANIZATIONAL 'CHANGES In the Spring of 1997, the City. reorganized a number of its departments, and restructured several key managerial reporting relationships. These changes were made for the purposes of: (a) providing proper segregation of duties and appropriate checks and balances; (b) promoting a higher level. of accountability and more effective services; and (3) fostering direct management control over service delivery and City assets. The exhibits below outline the former and current tables of organization. elm of Miami Former Table of Organaadon Civil Attorne City Clerk Service M na er y Board g Internal Audits and Review Assistant Assistant Assistant !:j Ciiy Manage City Manage City Manag Neighbor- Communit Finance hood Enhan Planning ai cement Tea Revitalizatii Building andl I Asset Zoning Manageme C Hearing Boards I Authority Assistant I Assistant City Manage City Manage Human Public Work Resources Parks and Recreation Off -Street Parking Police MIAM I 0 CITY WORKFORCE 65 City of Miami FY98 Table of Organization Assistant City Manager Finance and Administration Finance Human Resources TInformatnologyion Labor Relations ech Planning and purchasing Development Hearing Boards Community Development Assistant Police Fire Rescue City Manager Operations Budget and Management H Equal Opportunity Net Coordinator Solid Waste Analysis Internal I I I Community I I Building I I' General Services Audits m 'Information and Zoning IFiI i' Administration (GSA) Federal and State I I I Office of I I I i f Liaison II —II Professional Public Facilities II I� I� Public Works Compliance Parks and Recreation The organizational changes reflected in the new table of organization can be summarized by the following: • A reduction of the number of Assistant City Managers (ACMs) from six to two. The new ACMs do not have direct departmental responsibilities but rather provide true oversight and coordination of the various departments of the City. One ACM is over Finance and Administration, and the other ACM is over Operations. • The break-up of the Finance Department into Four separate units that includes the following: The office of Budget and Management Analysis reports to the City Manager and includes a Capital Improvement Program Section; The Information and Technology Department coordinates all future Citywide computer needs and has absorbed the functions of telecommunications and cable TV contract monitoring from the Fire Department; — The Purchasing Department's role is expanded to coordinate and monitor all city procurements of goods and services; and — The Department of Finance now includes treasury and debt management as well as accounting and payroll. MIAM I 0 CITY WORKFORCE 66 • The Office of Asset Management is merged into the Department of Community Planning and Revitalization. The Community Redevelopment Agency is also merged into this department creating a new division, the Department of Planning and Development. These actions consolidate land holdings, leases, and planning capabilities into one department. • The Department of General Administration Services and Solid Waste is split into two components: — The Department of Solid Waste; and — A new General Services Administration (GSA) which, in addition to the administration of radio communications and heavy fleet maintenance, has absorbed Citywide light fleet -maintenance from the Police and Fire departments; risk management, the safety program, and group benefits from the Fire Department; and certain building maintenance functions from the Public Works Department and the former Office of Asset Management. • The Department of Parks & Recreation has ground and equipment maintenance functions for all City parks, including Virginia Key Beach, and the City cemetery transferred over from the Public Works Department. This is to improve accountability over operations. • The Office of Community Information has absorbed Net 9 operations from the Fire Department; film permitting and certain public information function form the Police Department; and serves as the clearing -house for all non -emergency information that will go out to the community. • The NET Offices continue to operate independently, however, one NET Administrator has been selected to perform additional coordination functions. In addition to the aforementioned benefits, the realignment effected an immediate reduction in workforce of 35 individuals. MIAMI • CITY WORKFORCE 67 WORKFORCE EXPENDITURES The City of Miami spends a signif cant portion of its General Fund on employee compensation, including wages and benefits. From FY85 . to FY97, employee compensation as a percent of General Fund expenditures rose from 70.6% to 81.8%, respectively. Over the past 13 years, actual expenditures on employee compensation also increased from approximately $131.7 million in FY85 to $166.8 million in FY97, representing a $2.9 million average annual increase over the thirteen year period.. The chart below represents the total amounts expended for personnel services and their respective share of total General Fund operational costs. Despite the City's efforts to contain costs, most of the regular rise in compensation expenditure is due to the tenure and experience of the City's workforce, which results in both longevity payments and higher pay steps in employee pay plans. For most City positions, there are approximately 9-15 total pay steps; with 9 representing the minimum and 15• the maximum number of total steps including longevity payments. The annual step increases range between 6-9 steps, while longevity steps range between 3-7 steps depending on employee classifications and union contracts. Increases between annual steps are 5%. Increases between longevity steps range from 2.5%-5%. Progression through pay step increases is based largely on time served and not on performance. Consequently, in a relatively short -time, a City employee may reach the highest regular pay step of a position, regardless of merit, even in the absence of .any across-the-board wage increases. The rise in total employee compensation cost is a function of both these steps as well as regular cost of living increases. In the absence of past managerial initiatives to contain personal compensation costs, these gains could have been even more pronounced. MIAM I 0 CITY WORKFORCE 68 FRINGE BENEFITS The City of Miami pays the costs of providing fringe benefits for all City.employees. Fringe Benefits include Health Insurance, Life Insurance, Pension, Workers Compensation, Disability Benefits, Social Security, and Other Miscellaneous Benefits. Miscellaneous Benefits are dependent on job classification, and contain such items as tuition reimbursement, clothing and car expenses, or other related pay supplements. Fringe benefits are a significant part of Miami's General Fund expenditures, ranging from 19-26 percent of the City's budget over FY92-FY97. As shown in'the chart below, total fringe benefit costs declined from $52.8 million in FY92 to $ 47.6 million in FY97. Fringe Benefits 60 30.00 50 x { 25.00 .k 40 ? s 20,00% a ° 30°I 4 15.00 % u i xr e,10.00% 20 10 0.00 % FY92 FY93 FY94 FY95 FY96 FY97 Fiscal Year ' Fringe Benefits-% of General Funo Despite the $4.6 million increase from FY96 to FY97, the percentage of fringe benefits costs to the General Fund also decreased steadily over the period. M IAMI 0 CITY WORKFORCE 69 TIME OFF Employees of the City of Miami are eligible for "time off' from work in a number of ways. The City pays for time not worked through paid holidays, vacation days, sick leave and other types of leave. When added together time off is estimated at approximately 15- 16 percent times salaries and wages for FY97. Paid Holidays Paid Holidays represent a significant portion of time off, at an estimated 4.9 percent times salaries and wages for FY97. In 1997, the City gave all employees 11 paid holidays. According to a study conducted by Workplace Economics for 1995, the current provision of 11 paid holidays ranks Miami in the mid -range of other municipalities. Sick Leave The City of Miami also permits its workers time off because of illness. In general, sick leave is accrued, with the levels of accrual based primarily on job classification, union affiliation, and tenure. Depending on employment classification, City workers can accrue anywhere from 12-16 days per year. For FY97, sick leave is estimated at 4.62 percent of salaries and wages. Vacation Days Employees of the City of Miami also receive vacation time off. The number of days earned is also dependent upon the time a worker has spent employed by the City as well as employment classification. Vacation time represented approximately 5.77 percent times salaries and wages for FY97. Other Time Other time includes compensatory time and earned personal leave. The City permits certain employees to earn and receive compensatory and earned personal leave. M IAM I 0 CITY WORKFORCE 70 Overtime A potential impact of City employees' time off with pay, is on City overtime expenditures. The City of Miami divides overtime- into two components, regular overtime and special event overtime. In FY92, overtime expenditures were approximately $7.4 million and grew to a high of $12.2 million in FY95. Since FY95, overtime costs have declined steadily to $7.3 million in FY97, and are projected to decline further in FY98. The chart below shows the trend in overtime levels and percentage of General Fund expenditure. City of Miami Overtime FY92-FY97 14 &0% 12 5.0% 10 4.0% w 8 3.0% �h L 4 2.0% 2 1.0% �.'�:' 0 , fi ,.. i...« F'.� s...... ,. F ... :i.. 0.0% FY92 FY93 FY94 FY95 FY96 FY97 Fiscal Year Regular Overtime Special Event Overtime % of General Fund 0 Continued analysis and management of overtime use is a priority for the City- If not tracked and managed carefully, overtime could potentially grow out of control, or become relied upon as a regular source for meeting normal service delivery requirements. MIAM I • CITY WORKFORCE 71 SUMMARY OF CURRENT CITY COMPENSATION PACKAGE On the following pages are two charts which summarize the City's current union contracts. With the exception of the Sanitation Union, contracts for all other bargaining units expire September 1998. Sanitation union employees are currently operating under the old contract until an agreement is reached with the new union. Of note is the postponement of the latest across-the-board wage increase to 9/l/98. This was the result of formal concessions agreements established with each bargaining unit. The net savings generated, assisted the City in managing a potential shortfall of revenues over expenditures for FY97. MAAM 1 0 CITY WORKFORCE 72 SUMMARY OF COLLECTIVE BARGAINING AGREEMENTS FY 1997 Benefit FOP IAFF I AFSCME I CIGU 11pr ®I I _ As of 4/1/97 As of 4/1/97 As of 4/1197 As of 4/1/97 annual annual annual' annual average salary equals average average salary average $27,911 salary equals equals salary equals $42,359 $51,752 $33,264 , c _ uipd Wage ncrease _ .... 3 � Percentage 09/01/98 09/01/98 09/01/98 0 Effective Date 4% 4% 4% Illedtcal,lnsurance"(13i Weekly? zf ...a F#_ HMO City Contribution Single $103.64 $85.02 $85.02 $85.02 Single + One $0.00 $0.00 $0.00 $0.00 Family $157.40 $154.77 $154.77 $154.77 Employee Contribution Single $14.96 $10.00 $10.00 $10.00 Single + One $68.24 $0.00 $0.00 $0.00 Family $79.09 $50.00 $50.00 $50.00 Dual Choice City Contribution Single $116.18 $114.18 Single + One $0.00 $0.00 Family. $237.58 $227.58 Employee Contribution Single $18.00 $20.00 Single + One $0.00 $0.00 Family $88.00 $98.00 Workers C-onpensafaon,,:� . , Duration 180 days 150 days 180 days 180 days Parking Provided_ s Yes/No - Yes Yes Yes Yes/No Yes No No No Yes/No Yes Yes No No «.,a.s ,.. ., k .. ..�„._ . :., max_ 48KPension �.. Employer Contribution tion 19.3% 19.3% 0% 0% Payment for Gates ' N/A N/A 23.78% 23.78% Employee Contribution 10% 10% 10% 10% Multiplier 3% 3% 2.25% 2.25% Eligibility 64 Points 70 Points 70 Points 70 Points Qvertarne P, N, 3 Yes/No Yes Yes Yes Yes Min Hrs. Call Back 3 4 4 4 Note: Normal pension costs for AFSCME and CIGU are reflected as 0% due to excess earnings on investments. City contributes 23.78% for unfunded liabilities as a result of the Gates Settlement. M IAM 1 0 CITY WORKFORCE 73 SUMMARY OF COLLECTIVE BARGAINING AGREEMENTS FY 1997 .• FOP Plain Clothes $660 Yr. Fire. Prevention Pay $76.92 Bi/Wk Comm. Operator Train. $40.00 Bi/Wk Incentive Plan Field Training 5% Driver Engineer (48 Hr) 2.5% Shift Differential $.60 Hr. Garbage Yes Bomb Squad 5% Communications (48 Hr.) 5% Garage On Call 7.5% Trash Yes Swat 5% Paramedic (48/40 Hr.) 5% Tool Allowance $85.00 Uniforms Yes Communications 5% Rescue (40 Hr.) 5% (Only Inspectors) Safety Shoes $58.00 N. R. 0. 5% On Call Fire Prevent. (40 Hr.) 10% Safety Shoe $50.00 Safety Equipment Yes Crime Prevention $76.92 Bi/Wk On Call Arson Invest. (40 Hr.) 10% Shift Differential $.50 Per Hr. Motorcycle $20 Mo. On Call Comm. Cord. (40 Hr.) 10% On Call Facility Cord. (40 Hr.) 10% On Call Haz. Mat. Insp. (40 Hr.) 10% On Call Public Inf. Off. (40 Hr.) 10% On Call Spec. Event Off. (40 Hr) 10% Air Truck Assignment (48 Hr.) 2.5% Air Truck Cord. (48 Hr.) 1 % Plans Examiner (40 Hr.) 10% Als Assignment 5% Als Acting 5% EMT (48/40 Hr.) 1.5% Haz Mat (48 Hr.) 1.5% Dive Team (48 Hr.) 1.5% Revenue Incentive Pay (48/40 Hr.) 2.5-7% Swat Medic (48/40 Hr.) 1.5% Station Commander (48 Hr.) 1% State Cert. Fire Instructor Fire Training (40 Hr.) 1.5% State Cert. Fire Insp. Fire Prevent Bureau Insp. (40 Hr.) 1.5% Safety Shoes $75.00 Other " ' g , � ,. Asst nrrie t P� . s Chief Office 5% Fire College 5% Fire Prevention 5% Communications. 5% Garage 5% Admin. Office Fire Fighting 1 5% M IAM I 0 CITY WORKFORCE 74 MAJOR INITIATIVES The City must continuously examine the cost and effectiveness of its personnel, developing and following through on specific managerial initiatives which improve City operations. Moreover, the City must create strategies which support positive environments of change for its workforce, and. which ultimately reduce the relative cost of services without compromising quality. The City has established several initiatives for workforce for the upcoming fiscal years. Among those priorities includes the following list. • Support the City's reorganization plan by assisting the City fill key personnel positions, and establishing a task force to continue the reorganization of City services and implement recommendations. • Undertake an assessment of Citywide training needs and prepare a draft report to serve as the basis for a preliminary training budget for FY 99. • Prepare a comprehensive training program for the Finance Department in conjunction with the Blue Ribbon Task Force, Florida International University ("FIU"), the Finance Department and the Human Resources Department. • Continue to conduct a market rate survey or, retain consultants to conduct a market rate survey of job classifications -- wherever plausible establishing more generic job descriptions. . • Prepare a transition plan to adjust the rate disparity between Tier I and Tier II classifications. • Survey municipal "best practices," evaluate the executive personnel eligible for retirement, and draft a leadership succession plan for consideration by the City Manager. • Investigate the possibility of retaining a benefits consultant to assist in structuring, evaluating, and procuring a coordinated benefits package for employees. • Automate selected job application processes, including improved applicant tracking and computerization of job applications. • Continue to conduct wage/pricing surveys to update ten salary schedules. • Improve communication with the City's bargaining units • Improve the management and tracking of time off. • Continue to investigate cost effective and quality health care alternatives. M IAM I 0 CITY WORKFORCE 75 CHAPTER V ECONOMIC DEVELOPMENT E C O N O M I C DEVELOPMENT OVERVIEW Economic development is the process which a municipality engages in to facilitate the creation and growth of wealth within its geographic boundaries. This is accomplished by expanding its revenue base through the development and implementation of programs and policies for the retention, expansion and attraction of commerce and trade, including local, small and disadvantaged businesses; regulating business activities, land and building use within its boundaries efficiently, effectively and fairly; and developing and maintaining stable, diverse and attractive neighborhoods throughout its geographical area. ATTRACTING/EXPANDING BUSINESSES The goal of organizations involved in economic development is to assist businesses with relocation or expansion decisions. The decision process involves four steps: (1) meeting -the technical requirements, (2) satisfying the economics, (3) assuring a safe and quality .life-style and (4) satisfying the cultural and recreational. amenities. The decision steps are somewhat sequential. Satisfying the technical requirements means that a community has or can quickly supply the specified building/facility, natural resources, qualified labor force, utilities and other factors essential for production. If a community cannot meet the technical requirements, this community will be eliminated from further consideration. Next, a community must compete economically and socially. If a community meets the technical requirements, the next step is to determine the area's cost competitiveness. Cost factors such as production, taxes, transportation, insurance, as well as, quality -of -life factors including housing, education and security are evaluated during this second and third step of the decision process. Communities with higher cost factors and low quality of life factors will be eliminated from further consideration. The fourth level of factors considered by business relocation decision makers includes lifestyle amenities, availability of affordable housing, recreation (professional sports), health, culture, and performing arts. Economic development organizations market the above package of technical, economic, quality of life and lifestyle resources to potential business clients, while improvements in the overall economic environment are made by well organized public - private alliances. As the front-line marketing organization, economic development organizations receive first-hand knowledge regarding the required improvements that must MIAM I • ECONOMIC DEVELOPMENT 76 be achieved if the organization is to be successful in attracting new -to -market businesses or retaining the current employment base. REGULATING BUSINESS ACTIVITIES The goal of regulating business activity is to ensure that the City has policies in place and an overall plan developed for encouraging targeted businesses and industries. This is particular true for the City of Miami because while employment is increasing, it is not increasing in high paying jobs or industries, like computers, electronics and high technology areas. Traditionally, Miami has not been able to attract higher paying industries. Additionally, this is important because .the City has limited resources for economic development and those resources must be coordinated carefully and utilized for projects which provide the greatest benefit to the City and its residents. LAND AND BUILDING USE The City has taken an important step in trying to effectively manage its land and . building use by taking an inventory of all of the parcels of land and buildings that the City owns. The City must now take that information and use it in order to develop a comprehensive land use strategy.. In addition, the City consolidated the Departments of Community Planning and Revitalization, Asset Management, and its Community Redevelopment Agency into one department Planning and Development. This should ensure that the City's future land and building use efforts proceed with a singularly focused strategy. MAJOR ECONOMIC ENGINES AND HIGHLIGHTS OF THE GREATER MIAMI ECONOMY The City of Miami has some major economic assets in its favor. First, it is close to Latin America and Europe. Second, it has a good natural harbor for shipping. Third, it has a favorable natural climate with easy access to beaches, cultural attractions, sport venues, clubs, and restaurants. As the City tries to position itself to be the trade and commerce center of the Americas, it is capitalizing on these assets to help make it successful.. Proximity to Latin America and Europe encourages firms from around the world to locate offices in Miami and do business here. The important .role Miami plays as an international center is demonstrated by the number of foreign consulates and other international agencies accredited in. the City. In 1996, there were some 52 consulates, 32 binational chambers of commerce, and 22 foreign trade offices. The economic development impact of international trade is staggering. During the past decade, the value MIAM I • ECONOMIC DEVELOPMENT 77 of exports and imports processed through the Miami Customs District has increased by 20 percent each year. Miami has the greatest concentration, of international --banks in North America. Domestically, the Miami Federal Reserve office handles $1.5 trillion annually, an indication of just how big banking is in Miami. More than 30 Edge Act banks, which make only foreign loans and accept foreign deposits, are part of a network of 100 foreign banks with assets exceeding more than $18 billion. Business along the Brickell Avenue office corridor, known as the "Wall Street of the. South," is expected to remain strong and help lead the City's economy into the 2 1 " century. Miami International Airport has capitalized on the City's location and it has become easier to fly from Miami to most South and Central American destinations than from any other city in the'Hemisphere. Most of the City's recent development and resurgence in commercial real estate values has come from business districts with easy access to the airport. Cargo through the Airport itself has grown at a rapid pace: over the last ten years, Miami International's cargo handling volume has sustained double-digit annual compound increases, making the Airport now the busiest air cargo facility in the United States. If the Airport continues to sustain its rapid growth, it will become the busiest in the world by the turn of the century. With a payroll of 30,000, the Airport is also one of the largest employers in South Florida. In the next few years, the Airport plans to add nearly 4 million square feet of on -site distribution warehouse space --nearly tripling its current capacity --to maintain its competitive position. Miami's large natural harbor has enabled the Port to become the nation's ninth busiest, and the third most busy on the East Coast. Shipping volume at the Port has increased steadily over the past 15 years and doubled over the last five years. Most of the Port's cargo is being exported to Latin. America, making the Port of Miami statistically the nation's leading export port to the Western Hemisphere. Over the past several years, the Port has nearly doubled its physical size (from 325 acres to 600 acres) and has been dredging deeper channels to accommodate even larger vessels. In the near future, it plans to add four more 50-ton gantry cranes to give the Port of Miami the largest crane loading capacity in the region. Key, however, to the Port's recent success has been the cruise business. It currently leads the world's ports in cruise volume, and the cruise industry is expected to grow rapidly into the next century as.it targets families with children and senior citizens with disposable income. Both the tourism and film. industries have been drawn to Miami by its warm natural climate, proximity to beaches, and other attractions. Almost 10 million tourists visit Miami each year, contributing some $4.3 billion directly to the local economy. These visitors bring in an estimated $6.6 billion in foreign business relationships to the area, for a total contribution of $10.9 billion in the last year. Tourists come to the Greater Miami Area for such specific attractions as the Orange Bowl Classic, the Seaquarium, the Parrot Jungle, dog tracks, Jai Alai, the Vizcaya Palace, and the Grand Prix of Miami. Other points of interest and activities include tours of the Everglades and Florida Keys, major league MIAMI 9 ECONOMIC DEVELOPMENT 78 professional sports events, and sports fishing. Annual fairs and festivals also bring in visitors for local events. Miami's television and film industry now ranks third in the country behind New York and Los Angeles. The industry employs some 13,000 technicians and actors locally and contributes roughly $200 million a year directly to the local economy. The industry's total economic impact. exceeds $700 million a year and raises the city's profile, bolstering the city's tourism and other industries. GOVERNMENT ENTITIES INVOLVED IN ECONOMIC DEVELOPMENT City Department, of Planning and Development The City's Department of Planning and Development tracks and encourages the construction of major projects around the City. Below is a list of projects currently under construction and projects planned for the immediate future. Current Development Projects • Watson Island Botanical Garden/Parrot Jungle & Garden (Current) Development of 18.6 acre, City -owned waterfront site into a visitor destination attraction featuring a parrot jungle and botanical garden, restaurants, and ancillary retail.space. Must be completed no later than 30 months from September 1997. • Dinner Key Waterfront Redevelopment (Current) Commercial and recreational redevelopment with adaptive reuse of two historic hangers. Will include a fiill- service boatyard, a 122 wet slip marina, a 40,000 sq.-foot public marketplace, 10,000 sq.-foot of marine -related retail spaces, a marine fueling facility and parking. Expected to be completed 18 months after November 1997.\ • Watson Island Aviation Facilities/Regional Visitors Center (Proposed) This will be a redevelopment project to consolidated the existing seaplane operation and helicopter base and to provide additional space for a regional visitors center, restaurant, and possible aviation museum. Completion planned for November 1998. • Tower Theater Rehabilitation (Proposed) A complete rehabilitation of the City - owned historic, vacant Tower Theater built in 1926. This will become an important component in the revitalization of the Little Havana neighborhood and Latin Quarter District. Completion by May 1998. MIAM I • ECONOMIC DEVELOPMENT 79 Future Development Projects • Virginia Key Marine Stadium (Future) Redevelopment of an 18.33 acre, City - owned waterfront amphitheater into a visitor destination attraction featuring the marine stadium amphitheater, restaurants, and ancillary retail space. Anticipated in 2000. • Virginia Key North .End Visitor Destination Development (Future) A development project to create a recreational resort destination as a public/private partnership. Expected to consist of a mid -scale hotel , and lodging facilities, with related restaurant, retail and recreational amenities. May also include facilities for swimming, boating, kayaking, wind surf ng, golf, horseback riding, and tennis. Anticipated to open by 2001. • Virginia Key Ecotourism Development (Future) A development project to create an environmental campground and ecotourism destination as a public/private partnership. Site is 50 to 150 acres and will include 300 tents and cabins. May also have restaurant and food concessions, a visitors' or welcome center with related retail (gift shop, provisioning store), group dormitories and camping facilities, swimming pool, water attractions, fishing pier, and/or hiking and nature trails. Anticipated to open in 2000. • Virginia Key Visitor Destination Development (Future) This is a redevelopment project to create a visitor destination mixed -use recreational and environmental facility with commercial elements along the Marine Stadium basin on Virginia Key. It will be a public/private venture. Site is an estimated 30 acres, will have 200 rooms, a small-scale hotel with related retail (gift shop), restaurant and/or food concession, recreational facilities and concessions (boat rentals and charters, kayaking, rowing, sunbathing cabanas, picnic shelters, and swimming beach), environmental center (building with classrooms and bookstore), an observation deck, field study area, boardwalks, and nature trails. Anticipated to open in 2000. Community Redevelopment Agency The City of Miami's Community Redevelopment Agency acts as an umbrella organization for neighborhood -specific development authorities around the city. • Downtown Development Authority (DDA) The Downtown Development Authority was created by the City in 1965 to spur economic development activity in Downtown Miami. It is governed by a board appointed by the City Commission and the City Commission must approve both DDA's operating budget and the millage levied on the Authority's special taxing district. The DDA was established pursuant to Chapter 65-1090 of the General Laws of Florida and City Code Section 14-25. MIAM I • ECONOMIC DEVELOPMENT 80 • Omni Redevelopment District In the recent past, the Omni Redevelopment District helped develop a Metromover mass transit stop next to the Omni Hotel and Mall shopping complex. Since then, it has selected Cesar Pelli & Associates to design a Performing Arts Center next to the Miami Herald and Dade County Public School Board administrative offices. The Performing Arts Center hopes to become one of the premier arts institutions in South Florida, booking national and international acts along the models of the Winter Garden in New York City and the Founders Hall in Charlotte, North Carolina. • Southeast Overtown/Park West Redevelopment Agency (SEOPW) SEOPW is a redevelopment agency established by the City in 1982 to target development in one of its poorest areas. Established. under Chapter 163, Florida Statutes and City Resolution No. 82-755, SEOPW is funded through' an inter -local agreement with Metropolitan Dade County to approve tax increment financing. The City has issued debt for SEOPW and, under the inter -local agreement, is responsible for disbursement, accountability, management, and proper application of all funds paid into the Redevelopment Agency's trust. Miami Sports and Exhibition Authority (MSEA) MSEA was created by the City in 1983 to promote the development of sports, convention and exhibition facilities within the City with the funds from a three percent Convention Development Tax levied by Metropolitan Dade County. The City Commission must approve MSEA's board membership and the Authority's operating budget. MSEA was established under Chapter 212.0305 of the Florida Statutes and City Ordinance No. 9662. The Miami Sports and Exhibition Authority helped fund the Knight Convention Center in downtown Miami and the Orange Bowl Stadium nearby. Community Development Community Development administers the federal Community Development Block Grant (CDBG) Program awarded.yearly to the City. CDBG supports: • housing rehabilitation and new construction; • economic development activities in poor areas such as loans to small business; • construction or renovation of neighborhood facilities; • delivery of social services such as child care; • hot meals and recreation for the elderly; • commercial and residential paint programs; • the demolition of unsafe structures; • job placement and training programs. MIAMI 9 E C O N O M I C DEVELOPMENT 81 All projects must benefit low and moderate income persons or help prevent/eliminate slum and blight. For FY 97, the CDBG award was 'in excess of $13 million. During the past year, CDBG giants have funded 25 capital projects in low income neighborhoods, an increase of 66 percent over FY 96. The program monitored more than 180 community development projects, reviewed more than .180 grant applications, and conducted 25 community meetings to solicit public input. OTHER ENTITIES INVOLVED IN ECONOMIC DEVELOPMENT Beacon Council The Beacon Council, a public -private partnership, provides 'programs to facilitate economic development in Dade County. The Council receives approximately 60% of its funding from Metro -Dade County through a 50% increase in business -occupational license fees. The remainder of the Beacon Council's funding comes from the investment of approximately 450 Dade County businesses. The Dade County Beacon Council's membership (the 450 dues -paying members) annually elects a Board of Directors. Currently, the Board consists of 60 members. The Board annually elects an Executive Committee which provides the general governance of the Beacon Council, with present membership of 25. The Beacon Council has a staff of 38 persons with three operational divisions. The operational divisions are (1) Budget and Administration, (2) Business Development and (3) Communications ' Membership and Research. Greater Miami Chamber of Commerce Founded in 1907, the Greater Miami Chamber of Commerce now has membership representing more than 4,000 businesses. Its purpose is to promote economic activity and growth in the Greater Miami region. The Chamber launched a leadership program for community members in 1979 and took a prominent role in helping the city's economy rebuild from Hurricane Andrew in 1992.. In 1995, it spearheaded the development of an economic masterplan for local job growth into the 2 1 " century. The Chamber has a professional staff of 44 and has acted as an incubator for the development of other agencies such ' as the Greater Miami Convention and Visitors' Bureau. IMAM I • ECONOMIC DEVELOPMENT 82 Greater Miami Convention and Visitors' Bureau The Greater Miami Convention and Visitors' Bureau defines itself as a private, not -for - profit sales and marketing organization. Currently it has over 1,000 members, including four local governments (The City of Miami, Metro -Dade, the City of Miami Beach, and the Village of Bal Harbor) which participate in planning and sponsoring activities to draw groups and visitors to the area: GMCVB helps to maintain and promote the local area's image as an attractive place to vacation and conduct business.. THE CHALLENGES A key goal of the City's strategy for economic development should be to attract and maintain high value added industries and thus higher paying jobs. However, local economic growth cannot occur without certain fundamental elements being in place. Specifically, the size and growth of any economy is closely related to its: (1) educational system, (2) transportation system, (3) social services system, (4) criminal justice system, (5) health systems, (6) cultural and recreational system,. (7) government_ services system, (8) coordinated national and international marketing programs, and (9) sound local government fiscal systems. Generally, the growth of higher paying jobs occurs in communities where these systems are better than average and are functioning in a cohesive manner. Communities frequently must improve deficiencies. in one or more of the above systems before economic growth can occur. Based on feedback and research performed by economic development groups in Miami and Dade County, crime, education, availability of trained labor force. and image problems are several of the most frequently named impediments to investment within the City of Miami. CONCLUSION After reading this section of the City's Managerial Recovery Plan several facts should be apparent. First, while the Greater Miami area has substantial natural assets. and resources, most of the traditional elements necessary to encourage economic development . are not in the City's direct control. Two of the biggest contributors to the local economy, namely Miami International Airport and the Port of Miami, are not in the City's direct control. However, the City can capitalize on its strengths in the tourism industry and the fact that the City owns many prime pieces of real estate. The City might want to consider packaging some of its various parcels of land and soliciting development proposals from developers for various development or redevelopment opportunities. Given the success of Bayside in terms of attracting visitors and stabilizing that area of the City in which it is located, attracting more tourists to the City should be a major focus of future City economic development initiatives. M IAM I 9 ECONOMIC DEVELOPMENT 83 The other fact. that should be apparent is that there are numerous agencies and groups within the Greater Miami area involved in economic development. Generally, this leads to competing interest and confusion concerning the strategy and focus for economic development within the region. Since the City will be a major focus of any regional economic development effort, the City should try to take a lead in coordinating the various different agencies and governments to establish a common strategy and philosophy for economic development in Dade County. In addition, the City could leverage the information and knowledge gained from becoming more active in the countywide economic development process in order to reapply for empowerment zones and enterprise funds. These programs are generally awarded to cities and not agencies or groups involved in economic development. Being awarded enterprise funds or an empowerment zone would give the City the capital and or incentives necessary to attract new business and encourage existing businesses to stay. MAJOR INITIATIVES Initiative: Develop a common strategy and philosophy of economic development by working in conjunction with the Beacon Council, Greater Miami Chamber of Commerce and the Greater Miami Convention and Visitors bureau. Initiative: Focus economic development efforts on retaining and expanding local businesses. Initiative: Develop programs which emphasize workforce development. M IAM 1 e ECONOMIC DEVELOPMENT 84 CHAPTER VI CAPITAL PLANNING CAPITAL PLANNING OVERVIEW All government organizations have to prudently manage the acquisition, maintenance, and replacement of their physical assets. These capital assets have to be available to the public as needed, in good working order, and, by some set of criteria, be cost-effective for the City to own and/or operate. As governments have limited resources, they cannot meet all demands for capital at one time. The purpose of a Capital Improvement process is to determine how much they can afford to spend on projects and how that money will be allocated over time. Capital Improvement Plans are also an important source of information for individuals and institutions outside of government. Investors and bond rating agencies stress the value of responsible Capital Planning for governments seeking to borrow funds. A comprehensive, well -regulated Plan can reduce the City's interest rates in the bond markets and can therefore be translated into tangible savings. Non-profit agencies and private developers also look to the Capital Improvements Plan to influence their own investments in the City. The more confidence they have in the Capital Improvements Plan, the more the City may benefit from partnerships with private, investment which would help to more effectively leverage its own funds. In the City of Miami, capital projects are those capital or in -kind expenditures of at least $5,000 resulting in the acquisition, improvement, construction, or addition to the City's fixed assets in the form of land, buildings, or physical improvements to real property (more or less permanent in nature) and durable equipment with a life expectancy of at least three (3) years. Examples of items funded by Miami's recent Capital Budgets include the renovation of fire stations and the purchase of new police cars. The process by which the City develops and maintains its Capital Improvements Plan and corresponding Capital Budget is discussed below. LEGAL FRAMEWORK Legal framework for the preparation of the City's Capital Improvement Program and Capital Budget (distinction to be discussed below) is dictated by the City of Miami Code, Metropolitan Dade County Code,. and Florida State Legislatures' Local Government Comprehensive Planning Act of 1975 (as amended in 1986) and incorporated into the Florida Statutes as Chapter 163.316. . M IAM I 0 CAPITAL PLANNING 85 THE CAPITAL IMPROVEMENTS PLAN AND CAPITAL BUDGET PROCESS The City of Miami prepares both a Capital Improvements Plan (CIP) and a Capital Budget each year. The Capital Improvements Plan is a six -year projection of capital projects that the City plans to fund through numerous sources, both actual and projected. The Capital Budget, in contrast, represents the actual set of all moneys appropriated by the City Commission for capital improvement projects. Physical Environment ($104.0) 240 Parks and Recreation ($41.9) 10% Public _ 12% Appropriations by Major Program (1995-2001; Total of $432.3 Million) Social and Economic Environment ($24.0) 6% General Government ($83.1) 1001 Public Facilities ($41.9) 10% on ($86.6) 20% Capital Budget appropriations for the last year were fairly balanced among major program areas. M IAM 1 9 CAPITAL PLANNING 86 History of Capital Appropriations By Major Programs 50 40 30 20 10 0 1988 1989 1990 1992 1993 1994 1995 1996 -10 III General Government ® Public Safety ■ Social and, Economic t] Parks and Recreation ®Transportation 0 Physical Environment ■ Public Facilities Note: In FY88, 89,'and 91, the City had to return grants which it had already appropriated due to reporting discrepancies (see section in text which follows about recent improvements in the administration of grants). Capital Budgets for FY93 and FY94 were collapsed into one year because of the disruption caused by Hurricane Andrew. This chart shows periodic, but over time, relatively balanced swings in the funding of major program areas over the past eight fiscal years within the constraints of the City's yearly Capital Budget. M IAM I 0 CAPITAL PLANNING 87 CAPITAL IMPROVEMENTS PLAN The City's Capital Improvements Plan process has evolved over the last twenty years. The primary functions of the established planning process are (1) to help select projects that will have long-term value and (2) to then monitor those projects to ensure that the assets of the City are protected from loss, theft, misuse or dramatic unauthorized changes from approved allocations. Projects become part of the CIP by being submitted to the Office of Capital Improvements through department heads and project managers around the City. Capital projects are classified into one of fifteen major subject categories by sponsoring division. In proposing new capital projects, departments must establish how the project improves the City's financial condition, is consistent with the City's plans and policies, represents their department's top priority, coordinates with public and private actions, and is needed to maintain City service levels. The form to. submit projects is comprehensive and tries to focus on quantifying projects' demonstrable benefits to the City as a whole, the neighborhood in which the projects is located, and other zones of impact. As of the latest completed Capital Improvements Plan, grant .moneys and other outside sources of non -General Fund moneys generally by-passed the official planning system. In future years, the City will try to fold these projects and their sources of revenue into the overall CIP for more comprehensive planning and oversight of projects. Awareness of these projects and funds also may allow the City to optimize its resources by providing matching money and thereby receive more in grants. In reviewing currently funded capital projects in progress, departments must confirm the following information on the revenue side: • their funding sources as allocated; • their budgets as allocated; • any cash transferred in to cover expenses; and • and any remaining revenue budget. On the expense side, departments must detail: • their budgets as allocated per authorized department and by amount that they expect to expense; • all outstanding encumbrances; • all payments against outstanding encumbrances; MAAM 1 0 CAPITAL PLANNING 88 • the remaining balance of outstanding encumbrances; • - the remaining balance of budgeted line items; and • total expenses per department and type. All of this information is reported back to the Office of Capital Improvements for regular tracking purposes to be sure that departments do not exceed their allocated budgets and that the funds promised them are still available. Currently, in this time of fiscal distress, the Capital Improvements Coordinator and the City Manager review the list of proposed projects and compile a summary book of plans that they find of special merit or necessity. Grant moneys are only available for specific projects and, if their funding is confirmed, these projects may proceed: General Fund money for Capital Planning is relatively scarce, thus, those projects that are to receive funds must be of compelling urgency or importance: These two conditions tightly circumscribe the City's choices and make a more formal process of selection redundant to implement. In past years, when there was a greater likelihood that proposed capital projects would receive City funding, there was a more quantitative system to rank initiatives. In the future, when .the City's funding of capital projects increases,, the City may want to return to its earlier method to make its initial selection among project choices. The appointed Planning and Advisory Committee has final approval of the CIP as prepared on an annual basis (see below). The first year of the approved CIP then becomes the basic working document from which the annual Capital Budget is derived. CAPITAL BUDGET The Capital Budget represents the funds that the City of Miami is legally allowed to spend -on specific projects. The Capital Budget is reviewed each year and funds are appropriated for only that fiscal year. Projects move through the process from the CIP to the Capital Budget by, being forwarded on to the appointed Planning and Advisory Committee. The Committee is empowered to recommend specific projects that should be funded, to ensure that all neighborhoods of the City are treated fairly, and coordinate such capital improvement projects that may overlap City resources. , For expenditures over $4,500 the City Commission votes on whether to appropriate money. These funds then comprise the Capital Budget and can be allocated to projects in process as authorized expenses are incurred. M IAM I 0 CAPITAL PLANNING 89 LINKING THE CIP AND CAPITAL BUDGET In theory, the CIP should always be completed before that year's Capital Budget is approved. This will coordinate how the short-term Capital Budget folds into the larger, long-term plans for the City's needs as outlined by the Capital Improvements Plan. The overall requirements of each project can be then budgeted for and its timetable for funding be completed over several years. However, in recent practice, the Capital Budget has been completed and implemented before the City's CIP has been fully developed. As the City's Capital Budgets have been getting smaller and are expected to get smaller still (see commentary in next section on this trend), the generic effect of passing the Capital Budget before the CIP is to halt or greatly delay funding of some projects.that were anticipating funding in favor of others that have come to management's attention only recently. Passing the Capital Budget before full development and approval of the CIP reduces the usefulness of the CIP process and puts management in the position of primarily reacting to short-term events rather than following long-term strategies. As outlined by the form and process of these planning devices, the CIP should guide the Capital Budget and not the reverse. CHALLENGES FOR CAPITAL PLANNING IN THE CITY'S CURRENT FISCAL ENVIRONMENT The major challenge facing the City's Capital Planning process will be the lack of available funds as the City moves to a Pay -As -You -Go system of financing capital projects. Going forward, capital projects will only be funded by those outside grant sources the City can locate and a small portion of the General Fund to supplement projects of the utmost urgency or importance. . i 20 100 80 60 40 20 0 Actual General Fund Net Appropriations FY 1982 Through FY 1996 10 Net Appropriations FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY95 FY96 & 94 M IAM I 9 CAPITAL PLANNING 90 From FY82 through FY86, the City's Capital Budget was relatively large, averaging approximately $79.5 million. The main funding sources were a Federal revenue -sharing agreement and City bonding capacity. During that time, the City invested in large projects such as the Knight Center and the Bayside Marketplace. However, funds for capital projects dropped off dramatically in FY87 and the City remained extremely conservative in its capital spending until FY92. When Hurricane Andrew struck that year, it precipitated a $42 million infusion of moneys into capital projects which has augmented the budget for some time. Now that money is running out and the City is coming to the end of its authorized bond funds. Capital expenditures are expected to return to their FY91 and FY92 levels. Capital budgets before FY97 were greatly dependent on the City: issuing tax-exempt bonds for capital funding. The chart above shows how the City relied on bond funds to the exclusion of General Fund appropriations. However, these bond funds will be substantially exhausted by FY99 and the City does not have plans to issue additional bonds at this time. In FY97, the .City found $10 million of alternative financing and contributed $8 million from the General Fund to eliminate the prior year's Capital Projects' shortfall (see next paragraph .for explanation of why funds were needed). The City is further funding $11.1 million in FY98, $5.7 million in FY99, and will limit the annual General Fund contribution to $7 million starting in FY00. This decision could push off projects listed in the CIP to future years unless they secure other sources of funding or utilize other types of financing. The only contractually obligated project that the City must fund over the next four years from this General Fund amount is a $20 million purchase of take-home cars for the Police Department. All other projects in the CIP, even those involving basic preventative maintenance, will be subordinate to this contractual obligation. The CIP projects currently MIAMI 0 CAPITAL PLANNING 91 scheduled from FY99 forward that will not be able to be moved into the Capital Budget due to a lack of funding clearly demonstrates the importance of returning to fiscal health and regaining access to the credit markets. The Stierheim Report of 1996, revealed that between $18 million and $22 million of the funds appropriated to Capital Projects had been used for other purposes. Since the report was issued, the City has paid that money back into the Capital Projects Fund, but there are few safeguards in place that would keep such an inter -fund borrowing from happening again. Moneys in the General Fund are not segregated into separate accounts, but rather stay in a single pool until allocated funds are actually spent. This pattern includes specialized bond funds and other moneys legally restricted to specific purposes. To keep such a pooled cash system of funds, the City needs to institute more careful monitoring of balances and be. vigilant in flagging the potential for any inter -fund borrowing before it becomes a problem. Finally, the Blue Ribbon Task Force noted that there is little to no coordination of Capital Planning programs once they are appropriated. This situation could lead, for example, to the same street being torn up twice for projects which could have pooled information and resources to just remove the street surface once. Technically, such coordination of capital projects is the responsibility of ' the appointed Planning and Advisory Board. However, in an environment in which Capital Planning resources are so scarce, it should become a higher priority for such funds to be used efficiently and the City needs to consider how to ensure that such coordination takes place. M IAM I o CAPITAL PLANNING 92 GUIDELINES FOR CAPITAL PLANNING PROCESS The City should observe the following guiding principles in the management of its Capital Improvements Plan: • Key monitoring systems must be established to ensure that Capital Improvement Funds are being used appropriately. • All capital projects and acquisitions, regardless of funding source, should be controlled and managed through the CIP process. • The CIP should be integrated with the annual Operating Budget and the City's Strategic Planning process. • The City should maximize utilization of all federal and state revenue sources for capital improvements. • The City should develop an adequate internal source of funding out of its annual operating budget to replace needed infrastructure and capital equipment. • The City should issue debt only for major capital projects and not try to finance other parts of the capital program with debt. • Revenues derived from the sale and lease of surplus City real properties should be dedicated to the City's Capital Improvements Plan or to generating other re -occurring revenue. • The City should maximize the use of current City facilities and should, where feasible, give higher priority to maintaining present facilities over new construction. • Inflation factors for all projects in the CIP should be considered each year and appropriate adjustments made to all project estimates. • The CIP section of the Office of Budget and Management Analysis should provide the greatest possible accountability in its management of the CIP. • CIP practices and procedures need to be documented in a manual to allow for the replacement of key personnel loss of knowledge for the City. • FEMA practices and procedures should be documented into a procedures manual to allow for similar replacement of key personnel without undue financial exposure for the City. • CIP data reporting requirements should be created such that information can be shared with SCI and other data bases. • City Departments should identify the operating implications of all capital projects and priority should be given to those which will result in a reduction of operating costs. MIAM I 0 CAPITAL PLANNING 93 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 12/5/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget GRAND TOTAL 760,461 708,101 775,036 796,218 800,743 802,319 Wednesday, December 17, 1997 11:58:46 AM Page 4 of 4 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 12/5/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget GENERAL FUND TOTAL 760,461 708,101 775,036 796,218 800,743 802,319 Wednesday, December 17, 1997 11:58:45 AM Page 3 of 4 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 12/5/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000- Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 300 OPERATING EXPENSES -FIXED 420 TRAVEL AND PER DIEM - OTHER 468 468 482 496 511 526 533 POSTAGE 1,281 1,281 1,319 1,359 1,400 1,442 640 INSURANCE - PROPERTY 2,289 2,289 2,358 2,429 2,502 2,577 773 INTERNAL SERV CHGES PRINT SHOP 11,478 11,478 11,822 12,177 12,542 12,918 774 INTERNAL SERV CHGES COMMUNIC M 20,600 20,600 21,218 21,855 22,511 23,186 TOTAL OPERATING EXPENSES -FIXED 400 OPERATING EXPENSES -VARIABLE 270 PROFESSIONAL SERVICES - OTHER 36,116 36,116 1,672 1,672 37,199 1,722 38,316 1,774 39,466 1,827 40,649 1,882 510 COMMUNICATIONS SERV. TELEPH. O 2,410 2,410 2,410 2,419 2,400 2,400 534 DELIVERY SERVICES 1,030 1,030 1,061 1,093 1,126 1,160 670 REPAIR/MAINTENANCE - OUTSIDE 2,448 2,448 2,521 2,597 2,675 2,755 700 OFFICE SUPPLIES 5,180 5,180 6,365 6,556 6,753 6,956 722 MISCELLANEOUS SUPPLIES 634 634 653 673 693 714 760 BOOKS PUBLICATIONS MEMBERSHIPS 1,000 1,000 0 0 0 0 795 INTERDEPMENTAL CHGES -POLICE 1 12 12 12 12 12 12 TOTAL OPERATING EXPENSES -VARIABLE Wednesday, December -l7, 1997 11:58:45 AM 14,386 14,386 14,744 15,124 Page 2 of 4 15,486 15,879 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 12/5/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 100 SALARIES & WAGES -FIXED 001 SALARIES - CLASS. PERM. FT 34,973 34,109 37,299 38,558 38,640 38,640 010 SALARIES - UNCLASSIFIED 460,926 386,376 472,234 489;575 492,386 492,386 013 SALARIES - TEMPORARY 0 32,912 0 0 0 0 050 SALARIES - OVERTIME 1 REGULAR 1,300 1,300 1,300 1,300 1,300 1,300 TOTAL SALARIES & WAGES -FIXED 497,199 454,697 510,833 529,433 532,326 532,326 200 FRINGE BENEFITS -FIXED 087 TUITION REIMB.-EDUC. ASSIST.-N 200 200 200 200 200 200 100 SOCIAL SECURITY CONTRIB 32,886 23,028 32,386 33,471 33,591 33,591 110 RETIREMENT CONTRIB. 121,864 121,864 121,864 121,864 121,864 121,864 130 GROUP INSURANCE CONTRIB. 49,598 49,598 49,598 49,598 49,598 49,598 150 WORKER'S COMPENSATION, 8,212 8,212 8,212 8,212 8,212 8,212 TOTAL FRINGE BENEFITS -FIXED 212,760 202,902 212,260 213,345 213,465 213,465 Wednesday, December 17, 1997 11:58:44 AM Page 1 of 4 CHAPTER Vil DEBT MANAGEMENT DEBT MANAGEMENT OVERVIEW OF POWERS AND PROVISIONS Debt Management is a . vital element to achieving overall fiscal responsibility. Debt Management is the process by which an operating entity continuously monitors existing debt, evaluates the impact of issuing additional debt, and establishes procedures for issuing additional debt. In Miami, the City Treasurer is responsible for the day to day Debt Management functions. The City Manager and the Assistant City Manager are responsible for the general oversight performed with the guidance of a Debt Management Policy (DMP). By implementing and policy issues of the Debt Management process. The process of Debt Management is best performed a DMP, operating procedures are established and a financial control mechanism will be set in place. Currently, there is not an established DMP in effect for the City. In the Blue Ribbon Task Force draft document, a DMP has been presented which the City Commission is planning to adopt. Below are several key policies from the document that should be highlighted: • The City will not issue debt obligations or use debt proceeds to finance current operations. • The City will utilize debt obligations only for capital improvement projects that cannot be funded from current revenue sources or in such cases wherein it is more equitable to the users of the projects to finance the project to finance the project over its useful life. • The City will issue debt obligations for refinancing existing debt or other obligations only if financially advantageous or necessary to release existing covenants under bond documents. • The City will measure the impact of debt service requirements of outstanding and proposed debt obligations on single year, five, ten, and twenty year periods. This analysis will consider debt service maturities and payment patterns as well as the City's commitment to a pay as you go budgetary capital allocation. These are sound principals for establishing financial integrity for the future and will be viewed positively by the investing public in terms of credit perception. Improved credit perception can lead to lower borrowing cost for the City which can reduce the overall cost of capital projects and allow the City to take advantage of a myriad of financing and refinancing alternatives available in the Capital Markets. M1AM 1 • DEBT MANAGEMENT 94 Since. December 1996, when the major credit rating agencies downgraded the City's debt rating, perceptions concerning the City's credit have been improving. Although the rating has not changed since the downgrade, Moody's Investors Service elevated the outlook from negative to stable to positive in a research report dated September 16, 1997. The main concern remains the City's weak cash position. The City's inability to increase operating revenues by increasing property taxes has the rating agencies concerned (property taxes are 96% of the statutory limit of 10 mills). Due to the City's inability to increase tax revenue, revenue generation is limited to increasing user fees and rates on other financing sources such as licenses and permits. Unfortunately, these are smaller components of total revenue, therefore have little impact to top line growth. Therefore, without exploring other opportunities, the only way to improve the General Fund balance is by reducing expenditures or by increasing new revenue sources. Concerns about the City's credit are justified, but Moody's has pointed out three factors which bode well for the City's future prospects and warrant the positive outlook: 1. A growing economic base- The City is a key business center for Latin American trade. 2. Strong fiscal oversight- Along with the Oversight Board, the City's new Senior management team has been instrumental in closing the fiscal 1997 budget gap. 3.. Enhanced security provisions for all outstanding debt- Although the city has never missed a debt service payment, cash flow concerns prompted the City to institute an Escrow agreement with a Trustee on all of its debt (including general obligation debt) to help ensure timely payment of debt service. This agreement is to remain in place for three years. Although the outlook is positive, improving the credit rating of the City will be contingent upon successful implementation of a recovery plan. M IAM 1 • DEBT MANAGEMENT 95 DESCRIPTION OF CURRENT INDEBTEDNESS The City of Miami has three forms of debt outstanding: 1. General .Obligation - General Obligation debt is secured by property taxes and pledges the full faith, credit and taxing power of the City. 2. Appropriated - Debt service payments for appropriated debt is subject to annual appropriation by the City Commission from the General Fund. Appropriated debt usually has some revenue stream suggested for its repayment. However, the revenue stream of the project or purpose flows to the General Fund and is not dedicated to pay debt service, it is considered tax supported debt. Appropriated debt is an obligation of the City, but does not carry the full faith and credit pledge of the City. Instead, the City simply covenants to appropriate the appropriate level of debt service in its annual budget. 3. Specific Pledged Revenue -- Pledged Revenue debt is secured entirely by the revenues generated from the associated project. This debt is not a direct obligation of the City. As of September 30, 1997 the City had $491,018,225 in outstanding debt. This consisted of $157,020,000 in General Obligation debt outstanding, $243,206,900 in Appropriated debt outstanding, and $90,791,325 in Specific Pledged Revenue debt outstanding.. Below is a graphical depiction of the City's aggregate outstanding debt service. In'addition, the table on the following page, provides the detail for all of the City's outstanding debt service. M IAMI • DEBT MANAGEMENT 96 As of September 30, 1997 Form of Debt Outstanding Principal Final Maturity Call Date GENERAL OBLIGATION Series 1977 B 3,820,000 12/1/98 N/C Series 1978 2,145,000 12/1/07 N/C Series 1981 4,285,000 8/l/11 Currently Callable Series 1985 1,660,000 4/1/98 Currently Callable Series 1988 1,485,000 ll/l/98 N/C Series1989 Refunding 2,280,000 4/1/99 N/C Series 1991Refunding 10;865,000 5/1/13 5/1101 @ 102% Series1991 1,695,000 7/1/01 N/C Series 1992 9,100,000 8/1/17 8/l/02 @ 100% Series 1992 Refunding 66,175,000 12/1/13 12/1/02 @ 100% Series 1993 Refunding 31,010,000 7/1/13 7/l/03 @ 102% Series 1995 .22,500,000 1/1/15 l/l/03 @ 101% Total General Obligation Debt: $157,020,000 APPROPRIATION - Series 1995 Revenue -Taxable Pension 71,250,600 12/1/25 12/1/06 @ 102% Series 1994 Revenue 16,285,000 9/1/14 9/l/03 @ 102% Series 1995 A Special Obligation 22,000,000 12/1/25 8/1/05 @ 102% Series 1995 B Special Obligation 71,250,000 2/l/25 12/1/06 @ 102% Sunshine State Government 1988 21,161,900 111115 N/C Sunshine State Government 1994 8,590,000 1/1/14 N/C Sunshine State Government 1995 A 3,300,000 7/1/12 N/C Sunshine State Government 1995 B 29,370,000 l/l/25 N/C Total Appropriation Debt: '$243,206,900 SPECIFIC PLEDGED REVENUE Series 1986 A Special Obligation 2,630,000 7/l/06 10/1/98 @ 100% Series 1987 Special Obligation 42,311,325 7/1/12 1/1/98 @ 100% Series 1988 Special Obligation 30,000,000 7/1/19 N/C Series 1989 Special Obligation 4,845,000 7/1/09 7/l/99 @ 102% Series 1990 Community Redevelopment 3,40.5,000 1011115 10/1/00 @ 104% Dept of HUD, S/E Overtown 5,100,000 7/l/09 N/C Dept of HUD, Citadel Project 2,500,000 8/1/04 N/C Total Specific Pledged Revenue Debt:• $90,791,325 TOTAL INDEBTEDNESS $491,0181225 M IAM 1 • DEBT MANAGEMENT 97 TYPES OF DEBT General Obligation Debt The City has issued General Obligation debt for the following purposes: • Sanitary Sewer System • Storm Sewer System • Fire Fighting • Street and Highways • Parks and Recreation • Police Headquarters • Housing • Refunding The following two charts provide a graphical depiction of the City's General Obligation Debt. The first chart is a graphical representation of the principal and interest payments that the City is currently scheduled to repay. The second chart is a schematic representation of the City's General Obligation Debt. It shows a history of the City's general obligation borrowings. MIAMI o DEBT MANAGEMENT 98 OUTSTANDING GENERAL OBLIGATION DEBT t The chart is arranged chronologically from left to right. New money issues are set along the bottom row and refunding bonds set in the rows above, depicting successive refundings. OBond issue with all maturities either paid offer Q refunded Bonds with some or all maturities still outstanding O Description of Escrow; enumerating the maturities that were refunded, the par amount that was refunded, and the call date to which the proceeds were escrowed © Escrow with proceeds outstanding yFlow of refunding proceeds" series 1972 Sedej.ln7 8erbe t977 Serves ts79r�S(ntaat99F Puelc Parks6Rec. Sewer,PNewMoney New SiS.J50,000 SZJ,0Daled 1N1l/2 Maturity 1011197 DatedFinal Final MatuFhal Melway 1271N7 N F(nal Maturely 17719B Fu1dMeWrdy Sam1 MIAMI 9 DEBT MANAGEMENT Appropriated Debt Pension Bonds The City issued pension bonds in December 1995 to fund approximately three years of annual contributions to the two pension system. Additionally, a portion of these proceeds fund were used to the separation liability incurred inan early retirement option in Fiscal Year 1995. The City must now resume annual payments to the pension systems and fund the debt service on these bonds. Other Capital Projects For various capital needs like building improvements, land acquisition and public improvements the City borrows money to fund the cost.. To date, the city has either borrowed with a direct bond issue (Special Obligation Bonds -Non -Ad Valorem ) or through the Sunshine State Governmental Financing Commission. The Commission was created in November 1985, by the Cities of Orlando and Tallahassee, Florida through an inter -local agreement, as a pooled financing vehicle to allow for a limited number of high quality local governmental units to join together in a variable rate financing program and thereby benefit from the inherent economies of scale. Specific Pledged Revenue Convention Center Complex Revenue Bonds The City issued bonds to fund the acquisition of land and construction of the City of Miami/University of Miami . James L. Knight International Center and an appurtenant parking garage. The Convention Center Bonds are collateralized by a pledge of the net revenues of the Convention Center (including revenues from the parking garage), certain public service tax revenues and certain other moneys. M IAMI • DEBT MANAGEMENT 100 FUTURE DEBT ISSUANCE AND CREDIT MARKET CONSIDERATIONS At this time the City' does not have any new money debt issues planned. When the City plans to enter the credit markets they will explore all options including communication with bond insurance companies and credit enhancement facilities. In addition, the City will seek refinancing opportunities where appropriate. Going forward, the City will establish procedures when considering debt financing for capital projects. The City will create a Finance Committee who will consider the following items before proceeding with issuing debt: • The impact on the City's Debt capacity - This is designed to ensure that the City will have the flexibility to borrow capital in the future if it is deemed appropriate. • The ongoing impact of the financed project on the City operating budget - This control is set in place to avoid over -leveraging the City's resources. • The legality and availability of revenue for the repayment schedule of such debt service - This is designed to protect against default on debt service. • The appropriateness of issuing such debt considering the City's current and long-term goals and the cost of administering the debt - Even if the City can afford to issue.debt, this is designed to prevent unnecessary debt issuance. • The impact of the debt on the general economy of the City and on the City residents - A cost/benefit analysis should be conducted to determine if the general public will benefit from the issuance of debt to support the relevant project. • Other relevant factors Other considerations the City will consider regarding debt issuance will include the repayment term. The City is scheduled to retire 38% of its General Obligation debt within 5 years, 69% within 10 years, 87% within 15 years and 100% within 20 years. This type of amortization schedule leads to varying debt service payments, which can be seen from the preceding chart which depicts the principal and interest payments on the City's GO debt. The City may want to structure its debt in such a way that the revenues or benefit generated from the operation or use of an asset will match the debt service associated with the asset. MIAM I 9 DEBT MANAGEMENT 101 MAJOR INITIATIVES The City believes that many of the Initiatives developed in the past year are sound ideas. Below are some of the initiatives that are being implemented . or that should be highlighted. The City plans to implement the Debt Management Policy in the Blue Ribbon Task Force. The policy is awaiting approval from the City Commission. • The City's Current Ratio (Non -Ad Valorem Revenue/Maximum Annual Aggregate Debt Service), a liquidity measure, is approximately 5.6 times. The City has a goal of increasing the ratio to 10 times. This will enhance the City's liquidity and financial flexibility. • The City should look for escrow restructuring opportunities to potentially enhance its cash position. M IAM 1 • DEBT MANAGEMENT 102 CHAPTER Vill CASH MANAGEMENT CASH MANAGEMENT OVERVIEW Cash management is a tool utilized by governments, businesses and others to ensure that excess cash is always put to its most effective use. Usually, this means investing the funds in securities that mature when the entity needs the cash while at the same time creating maximum investment earnings with little to no risk to the entities capital. Cash management is an important part of an entities operating .budget as it provides a method of producing additional funds for the entity to use for funding its operations. While entities generally have numerous sources of funds to invest, cash management generally applies to the investment of short term funds. For purposes of this report short term funds will be defined as those funds which are not immediately needed for payroll, current year debt service or current year capital improvement projects. The remainder of this section will focus on how the. City of Miami's cash management program is structured, how it operates and who is responsible for administering the program. CASH MANAGEMENT OPERATIONS As mentioned earlier, short term expenditures are defined as all daily operating expenditures excluding payroll and debt service. For short term expenditures, the City maintains an overnight funds sweep program collateralized by "full faith and credit" instruments of the US Government and its agencies, with the City designated as the collateral beneficiary. In choosing which. investments to make, the City has established the following investment objectives, in order of importance: (1) safety of capital, (2) liquidity of capital and (3) return on capital. While investment returns are important and can make a significant contribution to the City's operations and capital projects, safety and liquidity, in that order, take precedence over investment return. Therefore, every effort is made to select the. most advantageous investment vehicle and term of investment to maximize earnings. The Treasury Manager within the Finance Department has been designated as the individual responsible for managing the City's cash management program. The Treasury Department is currently staffed with three individuals including the Treasury Manager who are responsible for overseeing approximately $60 million on an average daily basis. The City currently uses First Union bank and one main account for all of its depository needs. Account balances of collections and check clearings are electronically received from First Union each morning. Based on the electronic information of paid items and clearing patterns of the checks which are presented, funds are transferred to cover disbursement needs for the day. Funds not needed to cover paid items are pooled and invested in MIAMI 9 CASH MANAGEMENT 103 applicable investments as outlined by the City's Investment Policy. The primary determinants of the excess cash flow available' -to the City are the level of future debt service and payroll. The flow chart on the following page provides a graphical depiction of the process that the City uses to invest its short term funds. The Treasury Manager invests funds based on the daily, weekly, and monthly cash flows produced by the Treasury Department. Process of Investing Short -Term Funds Main Depository Account Main Operating Account Accounts Working Payable Capital CIP Account Account Account Excess Funds Invested The City's funds are invested conservatively in obligations of the federal government or instruments secured by obligations of the federal government. As of October 8, 1997 the City's investment portfolio was approximately $67 million of which 90% was invested in agency securities and 10% was invested in commercial paper. In addition, the majority of the portfolio (76%) was in the 31-90'day maturity range. 'Graphs of the City's investments by type of security and the maturity range are provided below. Investments By Type - (As of October 8,1997) Commercial Par ($7,000,000) 10% Treasury and Agency Securities ),000,000) 90% MIAM I 0 CASH MANAGEMENT 104 Investments By Maturity (As of October 8,1997) 30 Days or Less ($4,000,000) 31 To 90 Days 6% ($51,000,000) 76% 181 To 270 Days ($10,500,000) 16% 91 To 180 Days ($1,500,000) 2% INVESTMENT PROCESS The City has established a formal bidding process for the investment of short term funds. The process consists of maintaining a bid list of five major financial institutions qualified under Chapter 280 of the Florida Statue and two major brokerage firms. Qualified institutions are defined as financial institutions governed by Chapter 280 with a branch office location in the City of Miami, Florida. Brokerage houses must maintain an office in the City of Miami and are selected based on the amount of equity in the firm, number of years in operation and reputation. Currently the City's bid list consists of the following institutions: Brokers PaineWebber Merrill Lynch Dean Witter Bank of America Bear Stearns Prudential Securities Everen Securities Direct Issuers The Associates Ford Motor Credit Hertz Corporation Capital American Express When securities need to be purchased, the City calls each firm on the bid list either the day of the transaction or the day. immediately preceding the transaction date. Next, each bid is written down on a standard bid form developed by the City and retained on file for each transaction. Based on the bids received, the City accepts the highest bid as the winning bid and then transfers funds on a delivery versus payment basis. M IAM I 0 CASH MANAGEMENT 105 INVESTMENT TRANSACTION AUTHORITY The City Manager has designated the Treasury Manager as the individual responsible for managing the City's investments. The Treasury Manager discusses investments with upcoming maturities with the Assistant Finance Director and the Comptroller if there is a question as to new maturity target dates or type of investment vehicles to be utilized. Based on these discussions, the Treasury Manager executes the transaction and completes an "Investment Transaction Report" for each investment transaction. The Assistant Finance Director and the Comptroller then review and approve the Investment Transaction Report. The fully executed Investment Transaction Report contains all information pertinent to the investment and contains the approval signatures of the Comptroller, Assistant Finance Director and Treasury Manager. Funds related to each investment are transferred according to authorized funds transfer procedures and limits established under the provisions of the City's contract with its main depository bank. MATURITY AND LIQUIDITY REQUIREMENTS The City selects investments whose terms compliment its need to make the following major expenditures: (1) biweekly payrolls, (2) debt service payments and (3) capital project needs. For each expenditure event, investments are selected whose maturities occur at a date close to the date that funds will be needed. Investments also are selected based on the highest yield for the particular type of investment. In the case of capital projects, in which the exact date that expenditures need to be made is unknown, the City selects several investments with varying maturities so that monies are available each month to cover all capital expenditures. Any unused capital investment funds are then placed in investments of longer duration to maximize return potential. In addition, the City maintains an overnight investment program of approximately $10,000,000, which provides funds needed to cover daily operating expenses not including debt service, biweekly payroll and capital project needs. Interest yields on these investments are competitive though somewhat lower than longer term instruments. PERMITTED/PROHIBITED INVESTMENTS Below are tables of permitted and prohibited investments according ' to the City's investment policy. In addition, a brief discussion of the restrictions for investment in derivative securities is also provided. This is particularly important given some of the highly publicized losses experienced by several municipalities in their investment portfolios. It is important to note that the City's current portfolio does not consist of derivative investments of any type. All repurchase agreements are fully collateralized and the collateral is held in the City's name by a third party custodian. Repurchase Agreements are limited to transaction in M IAM I • CASH MANAGEMENT 106 which the proceeds will be used to provide liquidity. Any investment which is not issued in "Book Entry Only" form is physically held by the City in a secure vaulted area and surrendered only when invested funds and earnings are received by the City at maturity. Derivative securities shall be utilized only if specifically authorized as part of the investment plan and the Finance Director or their designee has sufficient understanding/expertise to invest in derivatives. All proposed derivative investments (including "Swaps") will be analyzed by the City's financial advisor and will be presented to the City Commission for approval. Below is a table which describes in detail the investments which the City is permitted to invest its short term funds. Moreover, a table of the prohibited investments is also included. Permitted Investments Authorized Investments Time Deposits Duratio n N/A Maximum % of Portfolio 100% Maximum % of Combined Asset Group 100% Certificate of Deposits 0-3 Years 100% 100% US Treasury Bills N/A 100% 100% US Treasury Notes 0-7 Years 100% 100% US Government Agency Securities 0-3 Years 50% 50% U.S. State and Territory Bonds (1) 7-10 Years 50% 50% Fixed Term Repurchase Agreement 0-3 Years 20% 100% Overnight Repurchase Agreement N/A 100% N/A Bankers Acceptance N/A 20% 30% Commercial Paper (2) N/A 20% 30% Corporate Notes and Bonds, Medium Term Notes and Yankee Notes and Bonds (3) 0-2 Years 20% 30% Corporate Notes and Bonds, Medium Term Notes and Yankee Notes and Bonds (4) 3-7 Years 20% 30% Money Market Mutual/Trust Funds (5) N/A 100% 100% Fixed Income Mutual Funds (6) N/A 25% 25% Externally Managed Funds (7) 1 3-7 Years 20% 20% Interest Rate Swap Agreements (8) 1 N/A 10% 20% Notes: (1) Obligations must be fully insured or rated in 1 of the 2 highest rating categories by Moody's or S&P or their successors. (2) Must be rated A-1 or P-1 by Moody's or S&P. (3) Must have a maturity of one year or less and berated by 2 or 3 designated -rating agencies in 1 of the 2 highest rating categories. (4) Must have a maturity greater than 1 year but less than 5 years and be rated by 2 or 3 designated rating agencies in 1 of the 2 highest rating categories. (5) Must meet the following criteria: (1) State of Florida Local Government Surplus Funds Trust Fund. (2) Mutual/Trust Funds sponsored by the Florida League of Cities. (3) Private money market mutual funds backed entirely by "Full Faith and Credit" of U.S. Gov't Securities not to exceed 25%. (6) Must be sponsored by the Florida League of Cities (7) Must be approved by the City Commission with investment limited to City policy and rating criteria. (8) Must be approved by City Commission prior to execution. MIAM 1 0 (WASH MANAGEMENT 107 Prohibited Investments and Investment Activities Unregistered or .Mortgage Restricted Backed Options and Common Stock Warrants Stock Securities Venture Capital . Futures Foreign Private Preferred Stock Commodities Margin Trading Exchange Real Estate Placements Any Inverse 10 or PO Strips Convertible Limited Floating Rate Oil and Gas or Inverse Bonds I Short Selling I Partnerships I Security Wells Floater HISTORICAL PERSPECTIVE .The City of Miami employs a "pooled cash" concept under which cash from all funds is collected and disbursed from co --mingled cash accounts regardless of where the cash was originally sourced. This approach was established in lieu of maintaining separate and distinct bank accounts for each fund. It not only simplified the City's approach to its cash management operations, but it also offered the City an opportunity to maximize its investment earnings as a result of having a larger investment portfolio.. ' While this approach is standard among governmental entities, there is a discipline required in such an environment to insure that funds are not spent simply because pooled cash is available. To do so results in the functional equivalence of inter -fund borrowings, which may not be proper. Such transactions are manifested as negative "equity positions in pooled cash positions" by the individual funds in the pooled cash account. At a minimum;- the discipline called for in such an environment must include monthly monitoring of negative equity in pooled cash. Moreover, if this situation'persists for more than 30 days it must be make known to the City Manager or his designee. In addition, if a policy decision is made to allow the situation to exist, high level approval must be obtained and plans/projections for subsequent repayment or correction must be developed. Prior to its fiscal emergency, the City of Miami operated using a pooled cash concept, but without paying close attention to negative equity positions in pooled cash. However, with the elimination of almost all of its enterprise funds and their subsequent collapse into the General Fund, the City has nearly eliminated the need for inter -fund borrowings. M IAM I 0 CASH MANAGEMENT 108 MAJOR INITIATIVES The City has made some improvements in its - cash management operation during the most recently ended fiscal year. Among its major accomplishments were to develop and adopt an Investment Policy; reconcile all outstanding cash accounts; reduce the level of commercial paper in the portfolio and to establish an escrow account for the payment of future debt service. Looking forward, however, there are still steps that the City should take in order to improve the efficiency of its cash management operations. Those steps are outlined below. • Develop a system for tracking funds in pooled cash. • Modify the existing monthly budget to actual report (BE 600) in order to improve its usefulness as a managerial report. • Establish a Investment Procedures and Internal Controls manual. • . Investigate purchasing in-house software to perform portfolio management statistical calculations instead of outsourcing. M IAMI 0 CASH MANAGEMENT 109 APPENDIX A BLUE RIBBON TASK FORCE RECOMMENDATIONS y7echnolht� �. �, . y:, ��;:: ;� ,. � .�s� �� �,:z:�v � .:,� � ;, ;.: �. _. ; .�. W�� .� �.. �;�'" ._�• ��-�: �� . 3 OF -4, Hire private sector firm to do a detailed needs assessment and develop a Efficiency Improvement 2 1 1 technology strategic plan. Hire technology expert to head up a newly created Department of Information Technology. Establish internal, cross -departmental Steering Committee to report regularly to City Manager on policy/budget/management issues. Issue lower -cost RFP for private firm to simulate the Year 2000 project and make sure it is viable. Give highest priority to developing and testing an adequate disaster recovery and data security plan. Make sure estimated capital budget for comprehensive Information Technology System is in the $30-$40 million range. Efficiency Improvement 2 1 2 Efficiency Improvement 2 1 3 Cost Savings 2 1 4 Efficiency Improvement 2 2 5 Efficiency Improvement 2 2 6 Approach partners to develop different information systems and cost- Cost Savings 2 2 7 sharing approaches. A natural partner might be Metro -Dade County. Organizational Structure: The City should expedite implementation of the Efficiency Improvement 2 16 N/A City Manager's reorganization plan. The City should begin planning how to adopt a more progressive organization structure. Budgeting Process: The City should revamp its budgeting process to Efficiency Improvement 2 18 N/A match the revised organization structures cited in the organization plan. The tracking processes should be flexible enough facilitate sourcing decisions and management performance. Re-establish an Appropriate Middle Management Structure: The City Efficiency Improvement 2 20 N/A should move aggressively to reestablish an appropriate management structure from first level supervisor through middle management to department head. Business Practices: The City needs to adopt appropriate policies and Efficiency Improvement 2 22 N/A procedures to assure that good business practices are followed. Business Practices: A code of conduct needs to be developed and signed Efficiency Improvement 2 23 N/A by employees. I Prepared by Public Financial Management, Inc. l of 19 12:39 PM10129197blueribb 1.xls Economic Development: Explore the value of establishing- a city-wide Efficiency Improvement 3 25 N/A authority to administer land redevelopment. Establish a specific entity with similar responsibilities as the Beacon Council to lead economic development for Miami. Reengineering: Make sure each major work function significantly improves Efficiency Improvement 3 27 N/A the productivity of the function. This action plan should be incorporated into each department head's work plan and be part of his or her appraisal. Reengineering: The City Manager and'department heads. should develop Efficiency Improvement 2 27 N/A an action plan for implementing total quality concepts throughout the organization. .`a^s�.:.:�s.�x—�-='.;,.-.'..`'.nY"4Y=",".'ra'..mw€:" R • .._. P'C°"� .2ie. : at`� �..,nS:, S'2'.x^ SL � .��� k•; Strategic planning should be reinstated as part of the City of Miami's Efficiency Improvement 1 32 N/A May need organizational structure. changes to Charter. Accelerate the Completion of the First Strategic Plan: The City should Efficiency Improvement 1 37 N/A complete the first strategic plan within a four -to -six month time period after convening team (to link to next year's operating and capital budgets). Accelerate the Completion of the First Strategic Plan: The City should engage a professional firm with expertise in strategic planning. Accelerate the Completion of the First Strategic Plan: Upon completion of the plan, the City should develop and execute a communication strategy targeted to residents, city employees, government, the business community, media and location services. Link Strategic Planning to Operating and Capital Budgets: Prepare all budgets after the annual strategic planning process has been completed. Link Strategic Planning to Operating and Capital Budgets: Merge budget and operating plans into one document. Link Strategic Planning to Operating and Capital Budgets: Submit capital and operating budgets simultaneously and integrate them in terms of.goals and purpose. Link Strategic Planning to Operating and Capital Budgets: Set capital and operating budget horizons to be consistent with strategic goals. Prepared by Public Financial Management, Inc. Efficiency Improvement 1 37 N/A Efficiency Improvement 1 37 N/A Efficiency Improvement 1 41 1 Efficiency Improvement 1 41 2 Efficiency Improvement 1 41 3 Efficiency Improvement 2 41 4 2of19 12:39 PMI0129/97blueribb_2.xls n Link Strategic Planning to Operating and Capital Budgets: Incorporate Efficiency Improvement 1 41 5 contingency planning into budgets. Link Strategic Planning to Operating and Capital Budgets: Require Efficiency Improvement 1 41 6 managers to demonstrate how proposed projects are in line with the City's strategic plan. Link Strategic Planning to Operating and Capital Budgets: Above initiative Efficiency Improvement 1 41 6 can be done in the form of a cost/benefit analysis that measures the expenditure of resources against the contribution to achieving goals. Link Strategic Planning to Operating and Capital Budgets: Institute a forum Efficiency Improvement 1 41 7 for resolving resource allocation issues to align all major projects within the City's strategies. Beastimai'n r i F ;: x . s.• , Incorporate Benchmarking and Performance Measurement Practices: The Efficiency Improvement 2 46 N/A City needs to use Benchmarking, performance measures and management by objectives. Incorporate Benchmarking and Performance Measurement Practices: Efficiency Improvement 2 46 N/A Changes for covered employees will take time and may be the subject of bargaining, but in the management ranks, a meritocracy needs to be created. Environmentat Scam " ; y �.. a Revitalize the Economic Engines and Consolidate Economic Development Revenue Enhancement 3 52 1 Efforts: A private/public partnership should be formed with the Greater Miami Chamber of Commerce and the City of Miami. Revitalize the Economic Engines and Consolidate Economic Development Revenue Enhancement 3 52 1 Efforts: This partnership should develop a strategic plan for the economic development of the City of Miami. This would be for the entire City, and not just the urban core. Revitalize the Economic Engines and Consolidate Economic Development Efficiency Improvement 2 52 2 Efforts: Consolidate into a single agency the responsibility for the economic development of the City of Miami. Prepared by Public Financial Management, Inc. 3 of19 12:39 PMI0/29/97blueribb 2.xls Revitalize the Economic Engines and Consolidate Economic Development Efficiency Improvement : 2 52 2 Efforts: This agency should have the ability to condemn properties and provide incentives for development and to attract business to the City of Miami. Revitalize the Economic Engines and Consolidate Economic Development Efficiency Improvement 2 52 2 Efforts: The agency should be responsible for analytical functions to address issues such as the cost of doing business in the City of Miami versus neighboring municipalities, etc. Revitalize the Economic Engines and Consolidate Economic Development Efficiency Improvement 2 52 2 Efforts: The agency should include the Downtown Development Agency Revitalize the Economic Engines and Consolidate Economic Development Revenue Enhancement 1 52 3 Efforts: Provide Beacon Council with City employee who will be liaison between the two. Intention for the Beacon Council to be viewed as non- competitive organization. Revitalize the Economic Engines and Consolidate Economic Development Revenue Enhancement 2 52 4 Efforts: Utilize state and private education institutions to attract business to urban core. Revitalize the Economic Engines and Consolidate Economic Development Revenue Enhancement 3 52 5 Efforts: Recommend strongly the City of Miami actively pursue and lobby for the extersion of the light rail system westward through Kendall. Revitalize the Economic Engines and Consolidate Economic Development Revenue Enhancement 3 52 5 Efforts: The extension will provide increased accessibility of the available work force to the downtown core office buildings. Revitalize the Economic Engines and Consolidate Economic Development Revenue Enhancement 2 52 6 Efforts: Review land use in the Downtown/Brickeli core to provide for mid - rise office development. ,3cutaln fr� 4 ii� �F�3 �. ....:,..r- >�d'''!9...,.. Adopt a Sourcing Policy: Have employees bid against outside contractors Cost Savings 3 55 N/A for business. Fill Middle Management and Line Staff Positions: Fill middle management Efficiency Improvement 2 59 1 positions that will not be affected by outsourcing. 4 Prepared by Public Financial Management, Inc. 4 of 19 12:39 PMl0129/97bh4eribb_2.x1s Fill Middle Management and Line Staff Positions: Survey to determine Efficiency Improvement 2 60 2 perceived and actual departmental shdrtfalls in staffing. Each department must justify the tasks to be performed that cannot be completed, at current staff levels. Fill Middle Management and Line Staff Positions: Immediately conduct a Cost Savings 1 60 3 planning study of office space to -determine if office requirements can be met through rearrangement of existing space vs. leasing new space. Fill Middle Management and Line Staff Positions: Develop office standards Efficiency Improvement 2 60 2 for private offices, cubicle sizes, conference room allocation, and furniture standards. Opportunities for Sourcinq: Contract with a consultant to conduct a sourcing Efficiency Improvement 2 63 1 study with priority on fleet maintenance and fueling due to the impact on facilities. Opportunities for Sourcing: Apply Sourcing Decision Guide from other Cost Savings 2 63 2 cities. Opportunities for Sourcinq: Work with private industry for guidance and Efficiency Improvement 2 63 3 advice on sourcing decisions. Opportunities for Sourcing: Director of GSA should develop a schedule for Efficiency Improvement 2 63 4 sourcing implementation. Organizational Alignment/Consolidate Responsibility: Continue with current Cost Savings 2 66 1 plans to transfer some fleet responsibilities from the Fire and Police Departments. Organizational Alignment/Consolidate Responsibility: Transfer Efficiency Improvement 2 66 2 responsibilities for other key maintenance to GSA. Organizational Alignment/Reorganization: Move Risk Management to the Efficiency Improvement 1 68 1 Financial Management Department. Organizational Alignment/Reorganization: Place Procurement under the Efficiency Improvement 1 68 2 Assistant City Manager of Operations. Implementing a Costing Methodology: Use Costing Methodology similar to Cost Savings 3 71 N/A - that used by the City of Charlotte. POOR Prepared by Public Financial Management, Inc. 5 of 19 12:39 PMl0129/97bhreribb 2.xls Improve Efficiency of Building and Zoning: Seek public input on the City Efficiency Improvement Charter to improve the land lease process and fee structure. Improve Efficiency of Building and Zoning: Develop performance measures Cost Savings that target improving the service and reducing the cost of these functions. Improve Efficiency of Building and Zoning: Correlate funding of Department Efficiency Improvement with performance measures and objectives. Improve Efficiency of Building and Zoning: Revisit staffing qualifications. Efficiency Improvement Improve Efficiency of Building and Zoning: Review compensation and Efficiency Improvement benefits in light of the rest of the City and within the overall reorganization plan. Also investigate appropriate labor agreements. Improve Efficiency of Building and Zoning: Review Department's reporting Efficiency Improvement relationship. Improve Efficiency of Building and Zoning: Improve relationship and Efficiency Improvement coordination with Dade County in the permitting process. Improve Efficiency of Building and Zoning: Appoint one person to process Efficiency Improvement necessary Country approvals of City permit applications. Improve Efficiency of Building and Zoning: Centralize and simplify the Efficiency Improvement process of applying for land development changes, including master plan changes. Improve Efficiency of Building and Zoning: Clarify role of Community Efficiency Improvement Planning section of Department and establish specific performance measures. Improve Efficiency of Building and Zoning: Seek vehicle for developing Efficiency Improvement public/private partnerships for development and redevelopment. Improve Efficiency of Building and Zoning: Expedite non -controversial items Efficiency Improvement supported by staff. Improve Efficiency of Building and Zoning: Develop city-wide design and Efficiency Improvement landscape standards. 3 85 N/A 2 85 N/A 2 85 N/A 2 85 NIA 2 86 N/A 2 86 N/A 1 86 N/A 1 86 N/A 2 86 N/A 2 86 N/A 2 86 N/A 2 86 N/A 3 86 N/A Prepared by Public Financial Management, Inc. 6 of 19 12:39 PM10129197blueribb 2.xls Code Enforcement: Identify and communicate to staff and public the Efficiency Improvement 1 89 1 mission of code enforcement. Should be considered part of development/redevelopment policy rather than punitive. Code Enforcement: Identify specific individual with responsibility and Efficiency Improvement 2 89 2 authority for code enforcement to set overall policy and direct compliance strategies. Code Enforcement: Add "appearance code" that is enforceable and Efficiency Improvement 2 89 3 enforced. Neighborhood improvement is the message. Code Enforcement: Consider "amnesty" program to have people pay Revenue Enhancement 2 89 4 whatever they can on fines, but only after property has been brought into compliance. Code Enforcement: Implement aggressive enforcement against properties Revenue Enhancement 2 89 5 and owners refusing to come into compliance, including alternatives to foreclosure such as court injunctions, personal property levies, etc. Code Enforcement: Need senior review of policy at senior level -City Revenue Enhancement 2 89 6 ownership can mean not in compliance. Also not creating tax revenue., Code Enforcement: Consider if police and fire could assist in identifying Efficiency Improvement 2 89 7 possible code violations. Could also be computerized. Code Enforcement: Train personnel for technical and interpersonal skills. Efficiency Improvement 2 89 8 Code Enforcement: Consider connecting enforcement districts with Efficiency Improvement 3 89 9 Commission Districts as needed. Code Enforcement: A study of whether the City should sell code Revenue Enhancement 3 90 10 enforcement liens should be conducted. The analogy to tax liens may be appropriate, but there are legal and policy issues which need exploration. Y QCgainiza ian�at 5truc}tre TM, r Organizational Control in Finance: The organizational criteria in the Five Efficiency Improvement 2 handwritten 2 1 Year Plan should be applied to lower levels of the City organization. Organizational Control in Finance: Strengthen and broaden the role of Efficiency Improvement 2 handwritten 3 1 Internal Auditor. Prepared by Public Financial Management, Inc. 7 of 19 12: 39 PMl0129/97bhieribb 2.xls Organizational Control in Finance: Staff to review GFONs "Recommended Efficiency Improvement 1 handwritten 3 2 Practices for State and Local Governments." Debt Ma4�agementndxtiCY z�_..AM " g.., . d..E .. a r..,. r ,s, _ .. Debt Management Policy and Procedures Manual: Establish a Finance Cost Savings 2 handwritten 6 1 Committee of local business and community.members to serve the City Manager. Debt Management Policy and Procedures Manual: Establish and implement Cost Savings 3 handwritten 6 1 plan to improve the City's credit rating and entry into the bond markets. Debt Management Policy and Procedures Manual: Establish the goal of Efficiency Improvement 3 handwritten 6 2 developing an uncommitted General Fund Balance of five percent or more of the annual operating budget over a five-year period. Debt Management Policy and Procedures Manual: The City should not Efficiency Improvement 1 handwritten 9 1 issue debt obligations or use debt proceeds to finance current operations. Debt Management Policy and Procedures Manual: The City should utilize Efficiency Improvement 1 handwritten 9 2 debt obligations only for capital improvement projects that cannot be funded from current revenue sources or when it is better to finance the project over its useful life. Debt Management Policy and Procedures Manual: The City should issue Efficiency Improvement 1 handwritten 9 3 debt obligations for refinancing existing debt only if financially advantageous or necessary to release existing bond covenants Debt Management Policy and Procedures Manual: The City should Efficiency Improvement 1 handwritten 9 4 measure the impact of debt service requirements on single year, five, ten and twenty year periods. r 8iti1� �anl�Cz�ticfing.,�. _ �...�s.,���u, .N .. , .n..... .. _; f . Billing Receivable and Collections: The Finance Department should identify Revenue Enhancement 2 handwritten 21 1 each existing and/or potential revenue source and document all of the relevant information about it. Billina Receivable and Collections: Performance criteria should be Revenue Enhancement 2 handwritten 21 2 established and the City Manager should receive a summary report of receivable and measurements of performance no less than monthly. Prepared by Public Financial Management, Inc. 8 of 19 12:39 PM70129197blireribb_2.xls Billing Receivable and Collections: City management should immediately Efficiency Improvement 1 handwritten 22 1 review and address all interdepartmental issues created from more than one department overseeing an issue. Billing Receivable and Collections: The City should pursue more diligent Revenue Enhancement 2 handwritten 22 2 collection efforts in Emergency Medical Service Transport. Billing Receivable and Collections: The Internal Audit group should perform Cost Savings 2 handwritten 22 3 surprise checks of potential revenue sources as a warning to less honest employees that the City is serious about preventing misappropriation of funds. Billing Receivable and Collections: Determine the implications of the Fire Efficiency Improvement 1 handwritten 22 4 Assessment Fee as quickly as possible in order to identify the impact of potential problems and disruptions to cash flow. Aroauremertt X Procurement: Increase bid limit in City Charter to $10,000 or $15,000. Efficiency Improvement 1 handwritten 30 N/A Procurement: Streamline procedures for smaller purchases. Cost Savings 2 handwritten 31 NIA Procurement: Ensure professionalism in purchasing personnel. Efficiency Improvement 3 handwritten 31 N/A Procurement: Improve use of technology. Cost Savings 2 handwritten 31 N/A Irate rial !t~ttllt,' External Audit, �nii`, u` ,it;Cpmmltee" E' ,mod ......,.w - 21 External Audit and Audit Committee: Establish Audit Committee of private Efficiency Improvement 2 handwritten 40 N/A citizens. External Audit and Audit Committee: Require Audit Committee to meet with Efficiency Improvement 2 handwritten 40 N/A the external auditors at least twice during the year. External Audit and Audit Committee: Enact changes to the City Efficiency Improvement 3 handwritten 41 N/A Charter/Code to reflect the nature, purpose and composition of the audit committee. External Audit and Audit Committee: Implement a formal policy for selection Efficiency Improvement 2 handwritten 41 N/A of external auditors to be executed by the Audit Committee. External Audit and Audit Committee: Implement a formal policy for the Efficiency Improvement 1 handwritten 41 N/A maximum length of external audit contracts. Prepared by Public Financial Management, Inc. 9 of 19 12:39 PMI0129/97blueribb 2.xls External Audit and Audit Committee: As part of the Audit Committee's Efficiency Improvement 2 handwritten 41 N/A duties, they_should review the scope df the external auditor's approach while the audit planning is in progress. External Audit and Audit Committee: The Audit Committee should also Efficiency Improvement 2 handwritten 41 N/A monitor other services provided by the external auditors to ensure that a proper level of independence is maintained. Internal Audits: Establish Audit Committee of private citizens. Efficiency Improvement 1 handwritten 43 N/A Internal Audits: Reorganize the Internal Audit Department to report directly Efficiency Improvement 1 handwritten 43 N/A to the Audit Committee. Internal Audits: Hire an experienced CPA with significant exposure to the Efficiency Improvement 1 handwritten 43 N/A public sector as Director of Internal Audit. Internal Audits: The Director of Internal Audits should immediately complete Efficiency Improvement 2 handwritten 43 N/A an assessment of the strengths and weaknesses of the Department, services historically provided, and the ability of present staff to provide enhanced services to the City. Internal Audits: Determine the long-term role of the Internal Audit Efficiency Improvement 2 handwritten 44 N/A Department. Internal Audits: Decide whether the present staff can provide the services Efficiency Improvement 2 _ handwritten 44 N/A envisioned on a long-term basis. Internal Audits: If the decision is made to retain the Internal Audit Efficiency Improvement 2 handwritten 44 N/A Department in-house, determine the operating philosophy of the Department. aMW ",ff. 2", I., s mow. Fund Balance, Reserves and Long-range Financial Planning: The City Efficiency Improvement 2 handwritten 47 N/A should continue to work to develop and implement operating plans that ensure the City functions at a surplus each year. Fund Balance, Reserves and Long-range Financial Planning: The City Efficiency Improvement 2 handwritten 48 N/A should also develop a,comprehensive cash flow forecast. Fund Balance, Reserves and Long-range Financial Plan: The City Efficiency Improvement 3 handwritten 48 N/A should develop a plan to return to fiscal strengthning , addressing employee compensated absences, self-insurance, capital replacement, contingencies, and debt repayment. .,.;., Muman.Resources°and°Em. o ee Bert fits 3 kf r. `. i 3 Prepared by Public Financial Management, Inc. 10 of 19 12:39 PM10/29/97bhseribb_2.xls Workforce and Leadership: Comprehdnsive job description and job Efficiency Improvement classification review, evaluating classifications to determine whether they provide the right skill sets and whether they are consistent with the City's objectives. Workforce and Leadership: The City should not hold a register of qualified Efficiency Improvement applicants for two years Workforce and Leadership: The employee appeals process under Civil Cost Savings Service Board should be reviewed. Workforce and Leadership: Review training and development skills that are Efficiency Improvement needed to upgrade existing employee's ability to meet the strategic needs of the city. Workforce and Leadership: Review best practices in city county and state Efficiency Improvement government in regard to leadership succession planning and develop its own process of leadership development. Employee Classifications: Review Unit Certification Issued by PERC as to Efficiency Improvement each bargaining unit to determine which positions were included in the unit. Employee Classifications: Advise the union that as to those positions that Efficiency Improvement are not part of the certified bargaining unit it is not the authorized representative. Employee Classifications: Modify the Civil Service Rules to 1)Extend the Efficiency Improvement list of positions which are unclassified to include managerial and confidential 2) Remove the limitation of the five unclassified employees in one department. Workers' Compensation Claims Initiatives: Submit a proposal to the Efficiency Improvement Commission/Oversight Board to the City to contract with a claims handling organizations such as Third Party Administrator or "hire" licensed temporary claims representatives. Workers' Compensation Claims Initiatives: Create and adopt claims Efficiency Improvement handling procedures that reflect best practices. Enforce strict compliance to these procedures. Workers' Compensation Claims Initiatives: Elevate the reporting Efficiency Improvement relationship of the functional leadership of the Safety Department. 3 Human Resources 1 Package, 1 1 Human Resources 1 Package, 2 . 1 Human Resources 1 Package, 2 1 Human Resources 1 Package, 2 2 Human Resources 1 Package, 3 1 Human Resources 1 Package, 6 1 Human Resources 1 Package, 6 2 Human Resources 1 Package, 6 2 Human Resources 1 Package, 10 2 Human Resources 1 Package, 10 1 Human Resources 1 Package, 10 Prepared by Public Financial Management, Inc. 11 of 19 12:39 PM10129197bhieribb 2.xls Workers' Compensation Claims Initiatives: Review and if necessary change Efficiency Improvement 3 Human Resources 1 job description and background prerequisites for claims adjusters and Package, 10 claims supervisors handling worker's compensation claims to reflect the complexity of the work and skills. Workers' Compensation Claims Initiatives: Evaluate the need for and hire Efficiency Improvement 1 Human Resources 1 additional staff needed to perform claims handling in accordance to best Package, 10 practices after the claims blitz has been completed. Workers' Compensation Claims Initiatives: Train new staff. Efficiency Improvement 1 Human Resources 1 Package, 10 Workers' Compensation Claims Initiatives: Appoint an evaluation committee Efficiency Improvement 2 Human Resources to perform an interim review of the effectiveness of vendor selected to Package, 10 implement the managed care arrangement for the City of Miami and the program. Workers' Compensation Claims Initiatives: Emphasis on project -oriented Efficiency Improvement 2 Human Resources 1 claims blitz designed to close as many inactive claims as possible, settle or Package, 10 resolve as many pending claims as possible and establish diary dates for claims adjuster review. Employee Insurance Benefits: Both the Group Benefits & Human Efficiency Improvement 1 Human Resources 1 Resources and Labor Relations Departments should report to the same Package, 17 ACM. Employee Insurance Benefits: The City should immediately employ an Efficiency Improvement 2 Human Resources 1 insurance Benefits consultant to be on hand for development of pricing and Package, 17 Benefits models for insurance Benefits procurement. Employee Insurance Benefits: Summary plan descriptions should be Efficiency Improvement 1 Human Resources 1 updated and distributed timely. Package, 17 Employee Insurance Benefits: Engage a private employee Benefits Efficiency Improvement 1 Human Resources 1 communications and enrollment firm to take over the responsibility of Package, 17 annual communications and enrollment of all core and voluntary Benefits. Employee Insurance Benefits: The City should receive a detailed actuarial Efficiency Improvement 2 Human Resources 1 report identifying the correct current claims loss reserve for the medical Package, 18 plan and then incorporate a plan for achieving that reserve within five years. Prepared by Public Financial Management, Inc. 12 of 19 12:39 PM10129/97blueribb_2.x1s Employee Insurance Benefits: The City should not negotiate any Efficiency Improvement 3 Human Resources 1 agreement wherein it both relinquishes control and guarantees Package, 18 performance at the same time, such as in the current F.O.P. agreement regarding the reserves -Must not be tied to prevail. clause. Collective Bargaining Agreements: Eliminate all City -subsidized payment of Cost Savings 1 Human Resources 1 time used for Union business, including 'time pool," release to work, Package, 31 negotiations, grievance investigations, etc. Collective Bargaining Agreements: Retain the management right to Efficiency Improvement 1 Human Resources 2 subcontract or privatize any and all aspects of job functions without further Package, 31 bargaining over decision. Bargaining shall be only over impact of decision. Collective Bargaining Agreements: Eliminate all Prevailing Benefits clauses. Cost Savings 3 Human Resources 3 Package, 31 Collective Bargaining Agreements: Eliminate five percent increase in salary, Cost Savings 3 Human Resources 4 and hence all accrued benefits, on retirement. Package, 31 Collective Bargaining Agreements: Eliminate Union control or veto of any Cost Savings 3 Human Resources 5 City -funded programs. Package, 31 Collective Bargaining Agreements: Centralize all communications with the Efficiency Improvement 1 Human Resources 6 Unions through Labor Relations Officer. This includes grievances, work Package, 31 peace issues, concerns, etc. Collective Bargaining Agreements: Prohibit any department, including Fire Efficiency Improvement 1 Human Resources 7 Department, from entering into "side" agreements under the Collective Package, 31 Bargaining Agreements. Collective Bargaining Agreements: Cost out the total financial package Efficiency Improvement 1 Human Resources 8 under the agreement to determine the actual "wages" paid. Package, 31 Collective Bargaining Agreements: Retain management right to make Efficiency Improvement 3 Human Resources 9 decisions required to operate and limit bargaining to impact only. Package, 31 Labor Relations Meeting: Continue the Labor -Management Committee Efficiency Improvement 1 Human Resources 10 meetings in' which the Union and the Administration can discuss specific Package, 36 issues and ideas on an ongoing dialogue with the City. Labor Relations Meeting: Re-evaluate 1) the procurement process, 2) fees Efficiency Improvement 1 Human Resources 11 collected. Package, 37 Labor Relations Meeting: Continue to look for ways to increase Efficiency Improvement 1 Human Resources 11 communication between the City and its employees. Package, 37 Prepared 6 Public Financial Management, Inc. 13 of 19 12:39 PMI0/29/97blueribb 2.xis Labor Relations Meeting: Institute a "Suggestion Box" for employees. Efficiency Improvement 1 Human Resources 11 Package,37 Labor Relations Meeting: Review current fire inspection fee collection. Revenue Enhancement 1 Human Resources 11 Package,37 Labor Relations Meeting: Establish clear guidelines and procedures for Efficiency Improvement 1 Human Resources 11 department heads to follow in their daily labor-management relations with Package, 37 representatives of the unions. Labor Relations Meeting: Recognize the importance of the Office of the Efficiency Improvement 1. Human Resources 11 Labor Relations as the institutional manager of labor management relations Package,37 at the City of Miami. ownership/management strategies while meeting the City's public policy objectives. Adopt and Asset Management Policy: The City will evaluate various levels Revenue Enhancement of asset privatization for all new capital projects as it plans, builds, or acquires additional public facilities and assets. Adopt and Asset Management Policy: The City will manage its existing Revenue Enhancement portfolio by selling or donating non -buildable parcels; "packaging" and marketing properties; "packaging" properties for future use; reviewing alternative ownership/management options. Environmental Issues: Responsibility for environmental compliance at City Efficiency Improvement operated properties should be consolidated into a single department. Environmental Issues: The City's Leases need to be revised to better Cost Savings protect City's liability associated with tenant activities which may result in soil and ground water contamination. Environmental Issues: The City needs to establish a policy of Efficiency Improvement environmental compliance on all of its properties and a program of annual operational audits to ensure such compliance. 1 Capital Planning 2 Package, 100 1 Capital Planning 2 Package, 100 1 Capital Planning 2 Package, 103 1 Capital Planning 2 Package,103 1 Capital Planning 2 Package,103 Prepared by Public Financial Management, Inc. 14 of 19 12:39 PMl0129/97blueribb_1.xls Environmental Issues: Environmental audits being prepared for the sale of Efficiency Improvement 2 Capital Planning 2 surplus property should at a minimum; conform to ASTME 1527-97 and Package, 103 should address other issues which may be relevant to the property being sold such as radon, asbestos etc. Environmental Issues: In order to maximize the proceeds from the sale of Revenue Enhancement 2 Capital Planning 2 surplus property, the City may want to consider selling on other than "as is" Package, 103 basis, in appropriate circumstances. Complete Property Inventory: Document current condition of the property Efficiency Improvement 1 Capital Planning 2 through the use of FIU student. Package, 106 Complete Property Inventory: Prioritize properties identified for sale or Efficiency Improvement 2 Capital Planning 2 lease and establish potential market value through assessment and/or Package, 106 appraisal. Complete Property Inventory: Establish future property tax potential. Efficiency Improvement 2 Capital Planning 2 Package, 107 Complete Property Inventory: Consider adding additional (exp. Book Value, Efficiency Improvement 2 Capital Planning 2 Assessed Value Date Appraised etc.) information to the property inventory Package, 107 spreadsheet. Property Maintenance: Establish a fund for preparing properties for sale in Efficiency Improvement 1 Capital Planning 2 annual budget. Package, 109 Property Maintenance: Establish a periodic maintenance program for city Efficiency Improvement 1 Capital Planning 2 owned properties including vacant lots. Package, 109 Property Maintenance: One department should be responsible for and Efficiency Improvement 1 Capital Planning 2 adequately funded for the maintenance and facility operations of the city Package, 109 properties. Property Maintenance: Transfer the property maintenance individual Efficiency Improvement 1 Capital Planning 2 currently in the Department of Planning and Development to the GSA Package, 109 Department. Property Maintenance: To assure that the maximum sales or lease Revenue Enhancement 2 . Capital Planning 2 revenues realized from properties targeted for sale, priority must be given Package, 109 to repairs and maintenance of these facilities. Develop Annual Property Plan: All City Departments should develop and Efficiency Improvement 2 Capital Planning 6 obtain approval long range plans for the properties/facilities under their Package, 112 responsibility I Prepared by Public Financial Management, Inc. 15 of 19 12:39 PM]0129197bhieribb 2.x1s. Develop Annual Property Plan: The Department of Planning and Efficiency Improvement 1 Capital Planning 6 Development should include in the City's Property Inventory all ownership Package, 112 costs. revenue generated, potential market value and potential tax base at market value for each property. Develop Annual Property Plan: Each City Department should prioritize its Efficiency Improvement 1 Capital Planning 6 properties /facilities based on their to the Department's Strategic Plan. Package, 112 Develop Annual Property Plan: The Department of Planning and Revenue Enhancement 1 Capital Planning 6 Development should conduct market studies to determine how the surplus Package, 112 properties should be disposed and recommendations included in the Property Plan. Develop Annual Property Plan: Determine all cost associated with the Revenue Enhancement 1 Capital Planning 6 disposition of properties, including but not limited to appraisal, advertising, - Package, 112 administration and referendum cost. Develop Annual Property Plan: Review park and ticket surcharges; increase Revenue Enhancement 2 Capital Planning 6 special event rentals and fees; consider installing vending machines in Package, 113 public parks and facilities; strict guidelines for fee waivers; institute fee for use of public boat ramp. Develop Annual Property Plan: The property plan should include a Efficiency Improvement 2 Capital Planning 6 summary of the following information, properties to be sold, properties to be Package, 113 leased, leases due for renewal, tax impact, cost of maintaining. Simplify Foreclosure Process: The legal Department should obtain Efficiency Improvement 1 Capital Planning 6 approval of the Community Planning and Development Department prior to Package, 115 foreclosure. Simplify Foreclosure Process: The City should avoid assuming the cost of Revenue Enhancement 2 Capital Planning 6 taking title, maintenance, insurance and disposal associated with properties Package, 115 which are not beneficial to the City. Continue to Develop Accurate Current and Future Lease Information: Revenue Enhancement 2 Capital Planning 6 Complete inventory of rental property that provides the following Package, 118 information. Continue to Develop Accurate Current and Future Lease Information: Revenue Enhancement 2 Capital Planning 6 Potential market rate for each rental property. Package, 118 Continue to'Develop Accurate Current and Future Lease Information: Revenue Enhancement 2 Capital Planning ' 6 Current monthly rental rate. Package, 118 Prepared by Public Financial Management, Inc. 16 of 19 12:39 PM10129/97blueribb_2.x1s Continue to Develop Accurate Current and Future Lease Information: Revenue Enhancement 2 Capital Planning 6 Lease expiration. Package, 118 Continue to Develop Accurate Current and Future Lease Information: Revenue Enhancement 2 Capital Planning 6 Forecast future revenue by utilizing current revenue figures and property Package, 118 appraisals. Continue to Develop Accurate Current and Future Lease Information: Revenue Enhancement 2 Capital Planning 6 Forecast future revenue by utilizing current revenue figures and property Package, 118 appraisals. Continue to Develop Accurate Current and Future Lease Information: Plan Revenue Enhancement 2 Capital Planning 6 to re -negotiate rental rates prior to expiration of leases. Package, 118 Continue to Develop Accurate Current and Future Lease Information: Revenue Enhancement 2 Capital Planning 6 Annually review the inventory to assure that the city is maximizing.its return Package, 118 on rental properties as per property plan. Private Business Lease Review: Organize the City Manager's Real Estate Cost Savings 2 Capital Planning N/A Advisory Group of private industry professionals who are knowledgeable in Package, 120 the area of real estate to review the City's leases and provide advice on leasing practices as needed. Develop Standard Lease Terms Outline: Be sure to develop one that will Revenue Enhancement 2 Capital Planning 1 best protect the interests of the City. Package, 122 Develop Standard Lease Terms Outline: Submit the standard lease terms Revenue Enhancement 1 Capital Planning 2 to the Legal Department for approval. Package, 122 Develop Standard Lease Terms Outline: Submit the standard lease terms Revenue Enhancement 1 Capital Planning 3 to the Commission for approval, Package, 122 Lease Administration: Establish and enforce a policy that the Department of Revenue Enhancement 1 Capital Planning 4 Community Planning and Development must approve all lease proposals. Package, 124 Lease Administration: Move the collection and tracking of lease payments Revenue Enhancement 1 Capital Planning to the Community Planning and Development Department. Package, 124 Lease Administration: Integrate rental revenue information in the financial Revenue Enhancement 2 Capital Planning 4 system. Package, 125 Lease Administration: Start an active campaign to identify delinquent Revenue Enhancement 2 Capital Planning 4 tenants and bill for past rent due. Package, 125 Prepared by Public Financial Management, Inc. 17 of 19 12:39 PMl0129/97blueribb_2.xls Lease Administration: Develop and enforce a policy for late payment which Revenue Enhancement 2 Capital Planning 5 includes provisions for late charges and eviction. • Package, 125 Marketing of Rental Property: Establish working relationships with one or Revenue Enhancement 2 Capital Planning 1 more real-estate brokerage firms in the community. Package, 127 Marketing of Rental Property: Develop RFP for real estate services. The Revenue Enhancement 1 Capital Planning 2 RFP should assure that rental properties receive maximum marketing Package, 127 exposure. Marketing of Rental Property: Advertise rental properties on the Revenue Enhancement 1 Capital Planning 3 government cable access channel. Package, 127 Charter Revisions:. Revise charter to streamline property transactions. Efficiency Improvement 3 Capital Planning 3 Adopt the following changes; Establish a threshold on lease on lease value Package, 131 to go to City commission, Accept offer for a bid if it is over a specific market value, etc. Key Property Disposition: There should be an Assistant Manger in charge Efficiency Improvement 2 Capital Planning 3 of Development who oversees management. Package, 133 Key Property Disposition: The City should continue to assemble "expert Efficiency Improvement 2 Capital Planning 3 panels from the business community to give advice. Package, 133 Key Property Disposition: Virginia Key and other large parcels of City Efficiency Improvement 2 Capital Planning 3 property should be assembled into single, consolidated.RFPs and these Package, 133 should go out to bid. Breaking up land parcels into different RFPs makes economic development difficult. Key Property Disposition: With Watson Island, the southwest tract of land Efficiency Improvement 2 Capital Planning 3 should be designated for a "state of the art" Science Museum or a use that Package, 133 is compatible with other cultural/arts uses found in other "world class" cities. Key Property Disposition: With Dinner Key, an RFP to lease the existing Efficiency improvement 2 Capital Planning 3 convention center and site to build a moderate -sized bed (250-300) hotel Package, 134 should be issued. Key Property Disposition: With the Knight Center Nations Bank Building Efficiency Improvement 2 Capital Planning 3 Garage and the land under the Hyatt, the property should be sold since it Package, 134 has been operated at a loss for 15 years (sell the asset). Key Property Disposition: With the Department of Off -Street Parking, the Efficiency Improvement 2 Capital Planning 3 City should buy all lots and garages and then develop an RFP to get a Package, 134 private company to manage the lots with an initial 5-year renewable_ lease Profit to go to the general fund. Prepared by Public Financial Management, Inc. 18 of 19 12:39 PM/0129197bineribb_2.x1s Consolidate Property Management Functions: Consolidate all property Efficiency Improvement management/maintenance functions under GSA. Consolidate Property Management Functions: Develop maintenance Efficiency Improvement standards according to property type. Consolidate Property Management Functions: Adopt space/office Efficiency Improvement standards that would apply to all departments. Consolidate Property Management Functions: Establish standards for Efficiency Improvement office use and allocation. Consolidate Property Management Functions: Analyze current property Efficiency Improvement maintenance needs and integrate into maintenance plan and budget. 2 Capital Planning 3 Package, 135 2 Capital Planning 3 Package, 135 2 Capital Planning 3 Package,135 2 Capital Planning 3 Package, 135 2 Capital Planning 3 Package, 135 Prepared by Public Financial Management, Inc. 19 of 19 12:39 PM/0/29/97bhieribb l.xls APPENDIX B S T E I R H E I M RECOMMENDATIONS Reestablish Managerial and Confidential Employees I Tab 7/Page 3 Critical Success Factors -Finance and Internal Audit staff must be Tab B/Page 1 held accountable and departmental objectives and metrics to measure the agreed upon objectives must be established. Critical Success Factors -'Selectively review and waive hiring Tab B/Page 1 freeze of positions Consider deleting "equivalent combination of training and experience" for professional credentials Critical Success Factors -'Consider deleting "equivalent Tab B/Page 2 combination of training and experience" for professional credential Critical Success Factors -Conduct a comprehensive review of Tab B/Page 2 personnel practices Critical Success Factors -Establish Information Systems Steering Tab B/Page 2 Committee Critical Success Factors -Change Internal Audit's focus to Tab B/Page 2 controlling business risk, including systems Critical Success Factors -'Establish Audit Advisory Committee to Tab B/Page 2 review work of Internal Audit department Critical Success Factors -Limited monitoring of departmental Tab B/Page 2 budgets performed Critical Success Factors -Each department should be required to Tab B/Page 2 prepare a business planning cycle Critical Success Factors -Too much time spent by Procurement Tab B/Page 2 on controlling low dollar, high volume items and not enough oversight in service related purchases Accounting Division -Lack of technically qualified staff in some Tab B/Page 3 areas of the division Accounting Division -Should adopt formal closing procedures Tab B/Page 3 posting payrolls immediately after the pay period Accounting Division -Monthly and year end closing should take Tab B/Page 3 place on a speedier basis Accounting Division -High level accounting reports should be Tab B/Page 3 distributed to management personnel Accounting Division -A total solution for the City vs. A point Tab B/Page 3 solution for departments should be developed based on a determination of Citywide requirements (Kronos System) Budget Management Division -Placement of Task Force position Tab B/Page 4 within the NET Offices should be investigated as an option Page 1 Budget Management Division-CIP contracts should have funding) Tab B/Page 4 codes identified and approved by Budget prior to award Budget Management Division -Grant Administration and grant Tab B/Page 4 reimbursement processing is not uniform throughout the City Budget Management Division -Grant coordination should be Tab B/Page 4 Procurement Management Division -Oversight and related Tab B/Page 4 policies of the Procurement Division should be strengthened Procurement Management Division -In depth evaluation of Tab B/Page 4 multiple functions assigned to Procurement Procurement Management Division -Practices should be Tab B/Page 5 evaluated to ensure a competitive process occurs when procuring large dollar services Procurement Management Division -All contracting should flow Tab B/Page 5 through the Procurement Division Procurement Management Division -To ensure purchasing Tab B/Page 5 procedures are not bypassed controls over the use of "direct" purchases should be vigorously enforced Procurement Management Division -A formal training program Tab B/Page 5 needs to be adopted Information Technology Division (IT) -Recommended that IT Tab B)Page 5 should report to the City Manager's Office Information Technology Division (IT) -A technology Steering Tab B/Page 5 Committee should be established chaired by an Assistant City Information Technology Division (IT) -The IT Division should Tab B/Page 5 redefine its mission in light of the trends in technology Information Technology Division (IT) -IT must govern security Tab B/Page 5 issues which should not be overridden by departments Information Technology Division (IT) -A plan needs to be Tab B/Page 5 devised and funded to complete the task of making City systems Information Technology Division (IT) -A comprehensive disaster Tab B/Page.5 recovery plan should be developed addressing PC networks and the mainframe Information Technology Division (IT) -Backup procedures should Tab B/Page 5 , be developed for the PC systems Information Technology Division (IT) -Funding needs to Tab B/Page 5 identified and reserves need to be built to complete the network infrastructure for Police and Fire and replace PC's Information Technology Division (IT) -Positions should be Tab B/Page 6 created and funded to bring to City appropriately skilled staff to maintain City in today's technology environment Page 2 r INITIATIVE . ". M. z „ . CITY STEIRHEIM RECOMMENDATIONS vim" REFERENCE .. _, .... OF R PREFERENCE , ,; STATUS , , s.._ .0 '` . W .� NOTES Information Technology Division (IT) -Formal training program Tab B/Page 6 should be adopted for project management and structured Information Technology Division (IT) -A formal tracking Tab B/Page 6 mechanism should be developed to create measurability of Internal Audit -Should expeditiously hire a Director of Internal Tab B/Page 6 Audit with a CPA, CIA, or CISA Internal Audit -Audit function should have dual reporting to the City Tab B/Page 6 Manager and to the Audit Advisory Committee Internal Audit -An audit plan should be developed in conjunction Tab B/Page 6 with the City Manager and department heads and should incorporate a risk based approach focusing on internal controls an Internal Audit -The audit plan should include a greater Tab B/Page 6 complement of performance audits Internal Audit -The audit plan should be reviewed by the Audit Tab B/Page 6 Committee to ensure it is balanced Internal Audit -The audit plan should provide for a sufficient review Tab B/Page 6 of systems security Internal Audit -Audit review should be provided to the YEAR 2000 Tab B/Page 7 systems conversion Internal Audit -The skill set of audit staff should be broadened and Tab B/Page 7 staff should receive appropriate level of training Internal Audit -Staff persons with CPA licenses should be required Tab B/Page 7 to meet CPE requirements Internal Audit -A summary of audit results and responses should Tab B/Page 7 be prepared quarterly and presented to the Audit Committee and the City Commission Internal Audit -The City Manager as well as the Auditee should Tab B/Page 7 receive a copy of the audit reports Internal Audit -Staff time spent on non -audit functions should be Tab B/Page 7 reviewed, audit staff work should focus on auditing Internal Audit -Audit staff positions should be filled with individuals Tab B/Page 7 possessing finance, accounting, audit, EDP and business Internal Audit -Job descriptions should be rewritten to reflect the Tab B/Page 7 correct roles and responsibilities of the staff Internal Audit -The City code requires significant revision to bring Tab B/Page 7 about the recommendations outlined Internal Audit -Audit staff dispersed in other departments should Tab B/Page 7 be identified and centralized within the department, as appropriate Audit Advisory Committee -The City Code should more Tab B/Page 8 specifically delineate Audit Committee composition in order to provide representation from varied business backgrounds Page 3 Audit Advisory Committee -The Audit Committee should be expanded to include a City Commission member as a non -voting Tab B/Page 8 Audit Advisory Committee -The Director of Internal Audit should Tab B/Page 8 be an integral participant in Audit Committee meetings Audit Advisory Committee -The roll of the Audit Committee Tab B/Page 8 should be expanded and clarified to ensure review of both external and internal audit results Audit Advisory Committee -Meetings should be conducted Tab B/Page 8 quarterly, at a minimum Audit Advisory Committee -The Audit Committee should provide Tab B/Page 8 a quarterly report to the City Commission Audit Aldvi s8fy Tab B/Page 8 educated on their role in reviewing audit results and interacting with the Audit Committee Office of Professional Compliance -The Office of Professional Tab B/Page 8 Compliance should be removed from the department Office of Professional Compliance -Consideration should be Tab B/Page 8 given to incorporating this function within the Police Department organization, reporting directly to the Police Chief Office of Professional Compliance -A review of other local Tab B/Page 8 jurisdictions of similar size should be conducted to determine, if there is a need for a separate review function, how it is typically Pension Review Task Force -City may wish to investigate TabC/Page 1 possibility of issuing Pension Obligation Bonds to eliminate unfunded liability in the GESE Plan FLE&VANAGEMENT TASKFORCE,' & Fleet Management Task Force -Terminate the current Police take- TabD/Page 1 home policy Fleet Management Task Force-Outsource all or part of fleet TabD/Page 3 services through either the private sector or Metro Fleet Management Task Force -Strongly recommended that the TabD/Page 3 services performed at General Services Administration, Miami Police and the Miami Fire Departments be consolidated Terminate the current Police take-home policy Fleet Management Task Force -Review remaining individual TabD/Page 3 vehicle assignment and vehicle take home policies Fleet Management Task Force -Implement a complete TabD/Page 4 Management Information System with a Fleet Management Page 4 Fleet Management Task Force -Improve the bids and contracts process to enable the acquisition of goods and services in a timely and cost efficient manner Fleet Management Task Force -Work with using agencies to determine fleet size and composition necessary to perform Fleet Management Task Force -Establish productivity and job Fleet Management Task Force -Determine proper classifications for work performed and appropriate number of employees Fleet Management Task Force -Evaluate and establish a motorpool, where applicable Fleet Management' Task Force -Implement a vehicle replacement/disposal program using proceeds from sale of vehicles to offset new vehicle purchases Fleet Management Task Force -A complete review needs to be performed to determine DERM and OSHA noncompliance areas Fleet Management Task Force -Need to optimize the layout and work flow processes of the physical plant Fleet Management Task Force -Car assignments should be reallocated on the basis of shift size and duty assignment Fleet Management Task Force -Vehicle service life should be extended from 5 years and/or 75,000 miles to 6 years and/or 100,000 miles Fleet Management Task Force -All surplus cars to the City's needs, or ready for retirement, should be auctioned off instead of donated to a sister city or any other entity HEALTH INSLIRANCETASK.FORCE '$ ;,, _ Health Insurance Task Force -The Benefits Department should be part of the Human Resources Department or Labor Relations Health Insurance Task Force -Worker's Compensation payments should be integrated and coordinated with health care b131I1h INUFARN fl9k F80:1NIP99WAR r?UMpt SS 9Wd be produce a claims analysis and reviewed semi-annually be Benefits and Finance staff Health Insurance Task Force -A claims and financial analysis should be reviewed annually by Benefits, Finance, Human Resources/Labor Relations.and the City attorney Health Insurance Task Force -Should perform a quarterly reconciliation and accounting of prescriptions against the TabD/Page 5 TabD/Page 5 TabD/Page 6 TabD/Page 6 TabD/Page 7 TabD/Page 7 TabD/Page 7 TabD/Attachment III/Page 7 TabD/Attachment III/Page 1 TabD/Attachment III/Page 1 TabD/Attachment III/Page 1 TabE/Page 3 TabE/Page 3 TabE/Page 3 TabE/Page 3 TabE/Page 3 Page 5 Health Insurance Task Force -A Summary Plan Description of all benefits should be prepared and distributed to each plan member with all terms and conditions clearly spelled out TabE/Page 3 Health Insurance Task Force -Form 5500 for each benefit where TabE/Page 3 form is required should,be examined by Benefits, Human Resources/Labor Relations and Finance Departments before being Health Insurance Task Force -The chief benefits officer should TabE/Page 3 participate in some form with Union negotiations where benefits are involved Health Insurance Task Force -An insurance broker should be TabE/Page 3 available to the management negotiating team to provide actuarial Health Insurance Task Force -Multiple year health care carrier TabE/Page 4 contracts should be negotiated and re -negotiated not less than every two years Health Insurance Task Force -The Benefits Office should have TabE/Page 4 the services of a an insurance broker available for use upon Health Insurance Task Force -Authority to negotiate any type of TabE/Page 4 benefit plan to contract with an insurance carrier should Health Insurance Task Force -Attorney and Chief Financial TabE/Page 4 Officer before incurring obligation Health Insurance Task Force -Should explore the possibility of TabE/Page 4 contracting for some benefits utilizing the combined leveraging ability of multiple local communities Health Insurance Task Force -A strong subrogation clause should TabE/Page 4 be established and enforced within the health care plan Health Insurance Task Force -Cost containment incentives for TabE/Page 4 third party administrator or health care contractor should be added to the contract Health Insurance Task Force -Wire transfer procedures should be TabE/Page 4 examined semi-annually and transfer accounts should be Health Insurance Task Force -One person should be designated TabE/Page 4 in writing as plan administrator Health Insurance Task Force -The plan administrator should have TabE/Page 4 the responsibility for conducting a performance audit semi-annually on terms and conditions of ASO contracts Health Insurance Task Force -A survey of all benefits should be TabE/Page 4 conducted not less than every two years to determine the competitive position of the total benefits package Health Insurance Task Force -The plan administrator should be TabE/Page 4 very knowledgeable in matters involving applicable regulatory Page 6 A A ,. CITY STEIRHEIM RECOMMENDATIOINITIATIVE P R � �-, �,", MRENCE1� OF MIAMI NS FEkIIENCEJ�� I' ',',':STAT..'W I , " �x_ , , NOTES" Health Insurance Task Force -A sense of urgency coupled with TabE/Page 4 empowerment and responsibility should be developed within the Benefits Office operating as a component of HR Health Insurance Task Force -Should periodically evaluate the TabE/Page 4 difference between self insurance and commercial insurance to determine if advantages lie in changes Health Insurance Task Force -May want to consider offering, on a TabE/Page 5 voluntary (employee pay all) basis, supplemental life and disability insurance Health Insurance Task Force -The benefits program needs a TabE/Page 5 formal delivery system Health Insurance Task Force -The benefits program needs TabE/Page 5 coordination to arrest and control costs Health Insurance Task Force -Management skills are needed to TabE/Page 5 recover some unnecessary expenses involving subrogation and coordination of benefits Health Insurance Task Force -An audit, review and control TabE/Page 5 function is needed for health care claims management Health Insurance Task Force=A method is needed to recover TabE/Page 5 unnecessary tax expenses such as those found in flexible spending accounts, pre-tax benefit plans and possibly in retiree Health Insurance Task Force -The self -insured plan must be run TabE/Page 5 like an insurance company with proper current funding and adequate insurance coverage and reserves Health Insurance Task Force -Employee contributions need to be TabE/Page 5 deposited into a trust account immediately or deposited with the carrier or risk bearing agency Health Insurance Task Force -Look into paying lower TabE/Page 6 administrative fees for larger supplies of medications Health Insurance Task Force -Look at utilizing the services of a TabE/Page 6 Pharmacy Benefit Manager to control prescription costs Health Insurance Task Force -Need to look at coordinating TabE/Page 6 medical payments with Workers Compensation where appropriate Health Insurance Task Force -Implement a strong subrogation TabE/Page 6 clause and employ a law firm to protect those interests, paying their fees from moneys which are recovered Health Insurance Task Force -Reevaluate the proportional cost TabE/Page 6 for health care borne by the City where retirees are concerned Health Insurance Task Force -Should expand flexible benefits and I TAE/Pip @ avoid paying the employer portion of taxes on earnings - Page 7 Health Insurance Task Force -Reevaluate the executive plan which provides no incentive for managed care election by the Health Insurance Task Force -Incorporate into future ASO contracts a stipulation that it is the responsibility of the third party administrator to constantly seek opportunity for cost efficiency TabE/Page 6 TabE/Page 6 RISK-AANAGEMENT DEPARTMENT REViEW`:' ;. Risk Management Department Review -By December 1, 1996 a TabF/Page 2 managed -care arrangement (mandated by state law) for workers' compensation should be submitted to the Florida Agency for Health Care with an effective date of January 1, 1997 Risk Management Department Review-Tlie City should utilize TabF/Page 2 "best practices" claims management procedures for the handling o Risk Management Department Review -The City should conduct TabF/Page 2 an immediate review of all labor agreements to identify cost Risk Management Department Review -Should establish a TabF/Page 4 committee of individuals representing claims, legal and finance to meet monthly to discuss all'claims reserved over various levels Risk Management Department Review -City Commission should TabF/Page 5 consider raising the dollar level of claims that need to come before the Commission for approval Risk Management Department Review -The City should request TabF/Page 5 a proposal for third party administrative handling services Risk Management Department Review -Perform cost/benefit Tab.F/Page 6 analysis to determine if the deductible on the property policy provides the City ultimate cost effectiveness Risk Management Department Review -Should consider a cost TabF/Page 6 benefit analysis for purchasing. excess liability insurance coverage for those losses that are not limited by a sovereign immunity Risk Management Department Review -Re -open the RFP TabF/Page 7 process in accordance with Resolution 95-393 to outsource the risk management function Risk Management Department Review -Should hire an TabF/Page 7 independent risk management consultant to select the appropriate vendor, under the RFP process if the Insurance Committee is not Risk Management Department Review -Should consider TabF/Page 8 changing the insurance broker's compensation to a fixed fee for Risk Management Department Review -City should re-evaluate TabF/Page 8 the reporting hierarchy for the Safety Department Risk Management Department Review -Fully implement LMP 1- TabF/Page 9 95 (City Wide Safety Committee) Page 8 INITIATIVE, CITY STEIRHEIM RECOMMENDATIONS REFERENCE, OF REFERENCE° STATUS S ... ... .NOTE' Risk Management Department Review -Fill the Police TabF/Page 9 Department Safety Coordinator position within the next 30 days Risk Management Department Review -Identify the roles and TabF/Page 9 responsibilities of all City management as it relates to safety and hold them accountable Risk Management Department Review -Complete an assessment TabF/Page 10 of each City Department's safety and health program using the OSHA Program Evaluation Profile Risk Management Department Review -Develop an overall safety TabF/Page 10 & health strategic plan for the City as well as for each Department Risk Management Department Review -Establish a formal. TabF/Page 11 professional development plan for each of the Department Safety Officers including the use of internal and external resources DEBTfRESTRUCT,URING Debt Restructuring -City should immediately establish segregated TabG/Page 1 Debt Service Funds to be held by outside trustees and not to be included within the City's pooled cash Debt Restructuring -Concerned that at least $1.5 million in debt TabG/Page 1 service has not been properly provided for since it is funded from the Internal Service Fund which currently operates at a deficit Debt Restructuring -The City has not appropriately funded the TabG/Page 1 Debt Service Funds in accordance with the legal documents Debt Restructuring -The use of cash in the Debt Service Funds in TabG/Page 2 the first half of this year without achieving a balanced budget, could result in the City's defaulting on its debt obligations later this Debt Restructuring -Need to segregate the non -general obligation TabG/Page 2 debt service fund outside of the pooled cash Debt Restructuring -The Utility Service Tax funds, as collected on TabG/Page 2 a monthly basis, should be deposited on a pro rata basis to the appropriate funds Debt Restructuring -The debt service component received in the TabG/Page,3 advance payment from the State should be segregated in the debt service fund outside of the pooled cash account Debt Restructuring -Three transactions of the City's outstanding TabG/Page 3 bond issues could be restructured or refinanced which could provide present value savings and be available to fund current yea Debt Restructuring -Identified several general obligation issues TabG/Page 3 which could be restructured at no cost to the City to reduce debt (service over the next few years Page 9 Page 10 INITIATIVE s I REFERENGE� , I REFERENCE= STA iS M.. FIN AN GIAUBUDGETARYANALYSIS • .. Financial/Budgetary Analysis -Pension expense for 1996 TabH/Page 3 currently reflected in the Trust and Agency Fund should more appropriately be reflected in the current fund where other employee expenses are reported Financial/Budgetary Analysis -Analysis of the proper inter -fund TabH/Page 3 transfer activity, critical in evaluating the magnitude of any structural surplus or deficiencies, is critical in determining the long- term financial health of the City and any of its funds Financial/Budgetary Analysis -Recommend an analysis be made TabH/Page 4 for each major revenue category Financial/Budgetary Analysis -Some process should be TabH/Page 4 developed to minimize or eliminate false billings in the revenue Financial/Budgetary Analysis -City may want to consider the TabH/Page 4 introduction of an amnesty period followed by more vigilant enforcement and/or use of outside collection agency Financial/Budgetary Analysis -Discipline is called for in an TabH/Page 5 environment of spending pooled cash which included high level approval plus plans/projections for subsequent repayment or Financial/Budgetary Analysis -Recommendations for future TabH/Page 5 financial management initiatives should include the timely ongoing use of monthly reports showing the comparison of budget versus OPPORTUNITIES TASK FORGE :fE Opportunities Task Force -Operating cash reserve should be TabK/Page 2 Opportunities Task Force -Prudent to maintain cash reserves of TabK/Page 2 unfunded self-insurance liability of not less than 30% t0 50% of outstanding claims Opportunities Task Force -Should be funding a portion of the TabK/Page 2 future benefits being earned by current employees on post - employment health care benefits Opportunities Task Force -Necessary to complete a long term TabK/Page 2 financial workout plan including a one -to -two year short-term plan Opportunities Task Force -Workout plan should be designed to TabK/Page 2 immediately improve the operating cash flow through significant revenue increases and expenditure reductions Opportunities Task Force -Long-range workout plan should TabK/Page 2 consider partially eliminating accumulated deficits through sale of real estate, refinancing debt and rightsizing City services Opportunities Task Force -As soon as possible, the City should TabK/Page 3 determine its actual financial position as of the current date 9 Page 11 CITY OF MIAMI STEIRHEIM RECOMMENDATIONS Opportunities Task Force -Comprehensive operating and cash TabK/Page 3 flow projections should be developed for a five year period Opportunities Task Force -Projections should address the future TabK/Page 3 courses of action which will be required for the City to continue as an operating entity Opportunities Task Force -Steps should be taken immediately to TabK/Page 3 implement procedures, upgrade systems and provide adequate professional staff to improve the timelines and integrity of the City's financial and management information Opportunities Task Force -Steps should be taken to return the TabK/Page 3 solid waste enterprise fund to profitability Opportunities Task Force -Raise user charges in Solid Waste to TabK/Page 4 an appropriate amount based on related costs and charges for similar services provided by other South Florida municipalities Opportunities Task Force -Review level of Solid, Waste services TabK/Page 4 provided and reduce service if appropriate Opportunities Task Force -Increase enforcement efforts to reduce TabK/Page 4 the level of illegal dumping within the City which is required to be cleaned up by Solid Waste Opportunities Task Force -increase efforts to audit or otherwise TabK/Page 4 verify that the City is receiving the full amount due from franchise revenues from commercial solid waste companies Opportunities Task Force -Should compile a complete inventory TabK/Page 4 of all real estate parcels owned by the City, including location, description, current use, etc. Opportunities Task Force -Parcels should be categorized TabK/Page 4 according to their use, i.e., city operations, leased to third party, Opportunities Task Force -Analysis should be performed for each TabK/Page 4 parcel of lease property to determine certain factors (see task forcel report for factors) Page 12 APPENDIX C PROCUREMENT ASSESSMENT TEAM REPORT CITY OF PROCUREMENTREPORT CROSS INITIATIVE TYPE REFERENCE STATUS NOTES CHARTER, CODE AND POLICESf> ,CITY The City should adopt a new procurement code which emphasizes current practices. Suspend local preference laws which may limit competition and opportunities to reduce cost. Delegate authority to purchasing manager to approve all acquisitions up to Category Four under Section 287.017, F.S. Bid limit adjustment to recognized price index. Eliminate City Clerk's involvement as it relates to bid openings - this should be a function of purchasing. Update and revise procurement operations manual incorporating revisions to the City Code. Lvs` TACTIC 3 /0URCHASING02P.... :A:t a 3. s ' The City should shift its focus from smaller dollar purchases to large dollar purchases for commodities and goods. Furthermore, the_City should delegate small purchases to user departments while providing adequate safeguards which ensure sound fiscal controls. Moreover, procurement of personal and professional services should be centralized within the Procurement Division to allow for consistent application of the process of obtaining the highest quality goods and services at competitive market prices. State Contracts, SNAPS Agreements, and other contracting methods offered by the State of Florida and other public entities can and should be used to reduce administrative costs and reduce delays in receiving goods and services .by user departments. Increased use of term contracts and blanket purchase orders will also facilitate the procurement process. PROCUREMENT ORGANIZATION ., , E We recommend that the Chief Procurement Officer be trained in the public purchasing profession with procurement activities as his/her primary responsibility. It is also recommended that this position report at a sufficiently high level in the organization, such as the City Manager or the City Manager's Designee, to delegate authority over the procurement operation. Page 1 CITY OF PROCUREMENTREPORT CROSS INITIATIVE TYPE REFERENCE STATUS NOTES Provide needed training, which should be included in the City's budget, and certification should be encouraged for all professional staff and required in the staff selection process. Improve Procurement staff's understanding of customer needs with site visits and emphasize the professional status of Procurement. Shift staff resources from small dollar purchases to large dollar purchases and eliminate work that does not add value or is redundant. z AUTOMATION ISSUES �r a Obtain a professional needs assessment of the technology requirements of the City's procurement process (especially looking at integration of SCI and APS). Retain the services of APS to complete the implementation of all three procurement purchasing , modules, which the City already owns. Eliminate all non -automated procurement requests. Purchase requisitions should be issued to trigger procurement actions rather than memos. This will reduce/eliminate unnecessary purchasing actions or non -committal of funds for specific procurements. All professional staff must have adequate training on personal PC applications, including spreadsheets, word processing, Internet, etc., to improve their analysis and decision- making ability. City- wide departmental training on financial and procurement systems should be a requirement, not an option. CUSTOMER PERCEPTION' ,y Develop and issue a comprehensive customer survey to determine satisfaction with the purchasing process and identify deficiencies so that remedies can be implemented. Also, increase technical skills by training purchasing staff and customers. PURCHASING SAFEGUARDS Upon completion and distribution of a new Purchasing Manual, all City departments should be trained by Procurement with follow-up training being provided annually. The City should also consider providing new employees with procurement training . (including developing.specifications and obtaining proper quotations) as a part of new employee orientation. We recommend that Procurement establish a feedback loop to assist with vendor performance and contract administration, thus providing essential information for future contracting. Page 2 APPENDIX D 5-Year Estimates: By Fund and Department City of Miami 5-Year Expenditure Estimates by Fund and Department as of 10/8/97 Organization FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 16 MIAMI SPRINGS GOLF COURSE 674,376 402,141 423,105 443,291 447,841 450,495 20 OFFICE OF THE MAYOR 368,109 364,813 372,359 390,1.75 397,610 398,994 21 BOARD OF COMMISSIONERS 680,704 861,192 983,666 1,018,595 1,032,865 1,037,160 22 CITY CLERK 760,461 765,212 776,036 796,218 800,743 802,319 23 LAW 3,477,147 3,406,396 3,614,138 3,620,198 3,647,334 3,655,295 24 CIVIL SERVICE 314,534 325,319 336,281 347,899 353,171 355,871 25 OFFICE OF THE CITY MANAGER 1,384,069 1,361,483 1,397,519 1,449,096 1,462,890 1,470,774 26 FINANCE 4,020,132. 4,237,945 4,388,988 4,528,219 4,585,845 4,622,300 27 HUMAN RESOURCES 1,805,306 1,675,450 1,736,021 1,799,658 1,819,195 1,824,958C 28 FIRE -RESCUE 55,743,792 56,076,953 67,666,137 59,138,121 59,606,954 59,961,503 29 POLICE 108,640,517 108,265,351 ' 113,813,494 117,617,655 117,103,981 116,242,366 31 PUBLIC WORKS 11,953,599 11,875,867 12,287,716 12,687,011 12,937,846 13,161,570 32 SOLID WASTE 23,676,138 24,108,733 23,490,064 23,988,690 24,364,271 24,775,193 35 . CONFERENCES, CONVENTIONS AND P 4,915,457 4,864,071 5,009,022 6,160,069 5,244,575 5,339,150 40 OFFICE OF BUDGET AND MANAGEMENT ANAL 2,147,773 2,147,005 2,214,451 2,281,376 21301,371 2,305,442 42 GENERAL SERVICES ADM. AND SOLI 0 810,348 1 1 1 -4,997 44 PENSION 0 89,621 0 0 0 0 46 INFORMATION TECHNOLOGY 5,206,264 6,089,329 5,264,269 5,429,628 5,522,787 5,601,477 52 INTERNAL AUDITS 1,087,765 1,115,869 1,148,678 1,182,929 1,191,083 1,193,587 56 BUILDING AND ZONING 4,975,467 4,871,973 6,102,022 5,311,264 5,378,241 6,404,345 58 PARKS AND RECREATION 11,688,297 11,701,464 12,077,666 12,430,982 12,582,301 12,692,724 66 PLANNING AND DEVELOPMENT 3,812,131 3,604,902 3,738,921 3,888,867 3,956,380 31991,256 Wednesday, October 29, 1997 10:44:20 AM Page 1 of 3 City of Miami 5-Year Expenditure Estimates - by Fund and Department as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 82 OFFICE OF HEARING BOARDS 543,499 517,923 536,587 553,458 _ 562,539 569,036 84 OFFICE OF EQUAL OPP/DIV PGM 282,030 331,997 344,409 366,833 360,572 360,8'55 86 OFFICE OF LABOR RELATIONS 667,122 549,024 571,581 600,390 608,673 609,255 87 COMMUNITY INFORMATION 279,487 276,263 289,935 301,736 303,416 305,694 88 PURCHASING 1,281,629 1,220,226 1,272,751 1,329,009 1,352,643 1,364,426 92 SPECIAL PROGRAMS AND ACCOUNTS 34,623,082 44,911,578 26,179,696 27,509,096 29,202,851 30,611,330 GENERAL FUND TOTAL 284,908,876 296,797,446 283,933,302 294,050,363 297,127,777 299,102,367 Fund 10 SPECIAL REVENUE FUND 25 OFFICE OF THE CITY MANAGER 4,740,006 3,653,778 3,780,269 3,918,627 3,969,086 3,991,784 26 FINANCE 33,712,785 35,591,720 36,653,515 37,785,957 38,095,361 40,288,527 28 FIRE -RESCUE 2,452,455 2,362,382 2,434,962 2,605,444 2,526,247 2,538,661 29 POLICE 1,317,085 1,317,085 1,334,682 1,352,807 1,371,478 1,387,331 31 PUBLIC WORKS 15,862,000 15,862,000 15,866,000 15,869,000 15,871,000 15,871,000 35 CONFERENCES, CONVENTIONS AND PUBLIC F 4,498,613 4,490,852 4,671,666 4,646,910 4,724,412 4,724,412 56 PLANNING AND DEVELOPMENT 36,060 36,000 36,000 36,000 36,000 36,000 58 PARKS AND RECREATION 670,489 670,489 678,928 687,445 692,693 695,039 SPECIAL REVENUE FUND TOTAL 63,289,432 63,984,306 65,356,022 66,802,190 68,186,177 69,632,744 Fund 20 DEBT SERVICE FUNDS 26 FINANCE 52,958,710 52,958,710 53,224,359 42,520,793 42,333,948 42,470,157 DEBT SERVICE FUNDS TOTAL 52,958,710 521958,710 53,224,359 42,520,703 42,333,948 42,470,167 Wednesday, October 29, 1997 10:44:23 AM Page 2 of 3 City of Miami 5-Year Expenditure Estimates by Fund and Department as of 10/8/97 Organization FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Proiection Budget Budget Budget Budget Fund 60 TRUST & AGENCY FUNDS 55 SOUTHEAST OVERTOWN/PARK WEST 667,514 550,000 550,000 640,000 730,000 820,000 59 OMNI TAX INCREMENT DISTRICT 849,217 707,303 707,303 707,303 707,303 707,303 64 COMMUNITY REDEVELOPMENT AGENCY 912,408 636,000 635,000 635,000 635,000 635,000 TRUST & AGENCY FUNDS TOTAL 2,429,139 1,892,303 1,892,303 1,982,303 2,072,303 2,162,303 Wednesday, October 29, 1997 10:44:24 AM Page 3 of 3 APPENDIX E 5-YEAR ESTIMATES: REVENUES BY FUND, CHARACTER AND MINOR OBJECT City of Miami 5-Year Estimates as of 1018/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 01 TAXES 001 TAXES REAL CURRENT 95,291,491 95,291,491 96,760,874 99,480,380 102,462,265 105,533,530 002 TAXES PERSONAL CURRENT 12,028,653 12,028,653 12,664,740 12,791,387 12,919,301 13;048,494 052 GAS FRANCHISE 791,190 659,062 693,957 704,253 727,814 752,052 229 FP & L FRANCHISE 12,500,000 12,082,832 12,138,695 12,194,503 12,250,289 12,306,074 283 TAXES REC REAL DEL 2,018,387 1,800,000 1,800,000 1,800,000 1,800,000 1,800,000 284 TAXES REC PERS DEL 892,885 700,000 700,000 700,000 700,000 700,000 306 ASSESSMENT LIEN REVENUE 1,171,766 0. 0 0 0 0 477 CABLE TV FRANCHISE FEE 831,353 831,353 848,480 865,950 883,769 883,769 TOTAL TAXES 125,525,725 123,393,391 125,606,746 128,536,473 131,743,438 135,023,919 02 LICENSES AND PERMITS 025 LINE & GRADE SURVEY 86,234 86,234 86,234 86,234 053 BUSINESS -LICENSE- 5,400,000 5,7001,000 5,700,000 5,700,000 054 BUSINES-LICENSE-PENALTY 350,000 261,000 261,000 261,000 056 OCCUPAT LICENSE -TRANSFER FEE 300 100 100 100 100 FIREWORKS PERMIT 1,708 1,708 1,708 1,708 101 ASSEMBLY PERMIT 6,200 6,200 6,200 6,200 107 SALE OF PERMITS LOT CLEARING 4,670 4,670 4,670 4,670 108 MICROFILM CHARGES-BLDG 32,120 40,150 40,150 40,150 124 BENCH PERMITS 154,345 170,000 170,000 170,000 286 CONTRACTORS OCCUPATIONAL LICEN 45,000 15,000 15,000 15,000 350 TRAFFIC PERMIT FEES 42,000 90,000 90,000 90,000 86,234 86,234 5,700,000 5,700,000 261,000 261,000 100 100 1,708 1,708 6,200 6,200 4,670 4,670 40,150 40,150 170,000 170,000 15,000 15,000 90,000 90,000 Wednesday, October 29, 1997 10:50:35 AM Page 1 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 427 CODE ENFORCEMENT PENALTY 250,000 450,000 450,000 450,000 450,000 450,000 456 SIGN PERMITS 266,500 64,000 64,000 64,000 64,000 64,000 457 LANDSCAPE PERMITS 45,000 97,000 97,000 97,000 97,000 97,000 461 ZONING CERTIF OF USE & OCC 1,089,376 1,089,376 1,089,376 1,089,376 1,089,376 1,089,376 462 ACCESORY USE CERTIF - RENEWAL 30,000 22,000 22,000 22,000 22,000 22,000 464 CLASS C SPECIAL PERMITS 25,007 25,007 25,007 25,007 25,007 25,007 465. MAJOR USE SPECIAL PERMITS 25,000 25,000 25,000 25,000 25,000 25,000 499 TEMPORARY CERTIF OF OCCUPANCY 216,000 22,000 22,000 22,000 22,000 22,000 511 CLASS B 35,000 33,000 33,000 33,000 33,000 33,000 522 HEARING BOARD APPLICATION REVI 5,500 5,500 5,500 5,500 5,500 5,500 628 CONTRACTOR'S ANNUAL FEE 65,000 65,000 65,000 65,000 65,000 65,000 642 TICKETING -ADMINISTRATIVE FEE 1,500 1,500 1,500 1,500 1,500 1,500 643 TICKETING - FINES - CEB 20,000 38,000 38,000 38,000 38,000 38,000 644 TICKETING - FINES - ARCV 250,000 250,000 250,000 250,000 250,000 250,000 651 PAY TELEPHONE PERMITS. 115,869 115,869 119,345 122,925 126,613 126,613 674 ALCOHOLIC BEV. APP. FEES 3,000 3,000 3,000 3,000 3,000 3,000 TOTAL LICENSES AND PERMITS 6,564,329 8,681,314 8,684,790 8,688,370 8,692,058 8,692,058 03 INTERGOVERNMENTAL REVENUE 057 OCCUPATIONAL LICENSES -METRO 493,433 493,433 498,367 503,351 508,385 508,385 074 STATE OF FLA REVENUE SHARING 3,624,742 3,624,742 3,704,742 • 3,784,742 3,864,742 3,946,431 075 STATE OF FLA MOBILE HOME LICEN 30,000 30,000 30,000 30,000 30,000 30,000 076 STATE OF FLA CIGARRETTE TAX 366,243 366,243 355,199 344,155 333,111 322,000 Wednesday, October 29, 1997 10:50:37 AM Page 2 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 077 BUSINESS -LICENSE -LIQUOR 251 TRAINNING REVENUE 274 US DEPT OF AGRICULTURE 378 METRO-DADE RESORT TAX 439 HALF CENT SALES TAX 480 FIRE FIGHTERS SUPP COMPENSATIO 597 U.S.DEPARTMENT OF JUSTICE 647 KEY BISCAYNE - CITY CONTRACT TOTAL INTERGOVERNMENTAL REVENUE 04 CHARGES FOR SERVICES 015 AUTO POUND 024 PUBLIC WORKS MISCELLANEOUS 028 PLAT CHECKS 030 COVENANT FEES 031 EXCAVATION UTILITIES 033 SIDEWALK CUTS & REPAIR- PUB-WK 038 LIGHTS -LINES 041 MISCELLANEOUS FEES -LEIS. SERV 042 RENTAL- 044 POOLS 049 PARKS CEMETERY CHARGES 058 BOILER INSPECTION 163,713 163,713 161,496 159,279 157, 062 155,000 20,000 20,000 20,000 20,000 20,000 20,01O 48,000 48,000 48,000 48,000 48,000 48,000 1,775,000 1,775,000 1,810, 500 1,846,710 1,883,644 1,883,644 19,012,000 19,012,000 19,450,000 19,889,000 20,327,000 20,774,194 105,194 105,194 105,194 105,194 105,194 105,194 11,063,235 11,367,157 13,874,035 6,590,439 2,601,612 0 402,000 402,000, 402,000 402,000 402,000 402,000 37,103,560 37,407,482 40,459,533 33,722,870 30,280,750 28,194,848 70,000 120,000 120,000 120,000 120,000 120,000 8,905 8,905 8,905 8,905 8,905 8,905 33,246 33,246 33,578 33,914 34,253 34,253 7,197 4,500 4,500 4,500 4,500 4,500 204,174 273,227 273,227 273,227 273,227 273,227 23,901 23,901 23,901 23,901 23,901 23,901 1,077 1,077 1,077 1,077 1,077 .1,077 2,550 2,550 2,550 2,550 2,550 2,550 235,053 350,000 350,000 350,000 350,000 350,180 21571 5,000 5,000 5,000 5,000 5,000 2,600 2,600 2,600 2,600 2,600 2,600 12 5, 000 150,000 150,000 150,000 150,000 150,000 Wednesday, October 29, 1997 10:50:38 AM Page 3 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 059 ELEVATOR INSPECTION 190,000 300,000 300,000 300,000 300,000 300,000 060 ELECTRICAL INSPECTION 626,625 626,625 626,625 626,625 626,625 626,625 062 BUILDING INSPECTION 2,302,942 2,442,484 2,442,484 2,442,484 2,442,484 2,442,484 063 PLUMBING INSPECTION 440,000 450,000 450,000 450,000 450,000 450,000 086 EMERGENCY MEDICAL SERVICE 3,821,511 4,000,000 4,200,000 4,410,000 4,630,500 4,862,025 090 PHOTOCOPY SERVICES 134,565 151,561 151;561 151,561 151,561 151,561 097 FIRE FLOW INSPECTION 16,473 17,092 17,092 17,092 17,092 17,092 098 INFLAMMABLE LIQUIOS INSPECTION 19,530 19,530 19,726 . 19,923 20,122 20,122 099 STANDPIPE PRESSURE TEST 3,252 2,200 2,200 2,200 2,200 2,200 103 SALE OF. FIRE REPORTS 4,477 6,000 6,000 6,000 6,000 6,000 110 SALE OF ATLASES PLANNING BOARD 1,000 1,000 1,000 1,000 1,000 1,000 112 UNCLAIMED MONIES 160,000 160,000 160,000 160,000 160,000 160,000 115 SERV CHGS -GENERAL GOVT 640,000 580,000 580,000. 580,000 580,000 580,000 117 LOT CLEARING -CURRENT YEAR 110,912 110,912 110,912 110.912 110,912 110,912 145 RENTAL STADIUMS ONLY 730,000 730,000 730,000 730,000 730,000 730,000 146 EQUIPMENT RENTAL 75,000 75,000 75,000 75,000 75,000 75,000 149 ELEVATOR PERMITS 290,000 77,719 77,719 77,719 77,719 77,719 150 MECHANICAL PERMITS 15,000 10,000 10,000 10,000 10,000 10,000 154 RENTAL - AUDITORIUMS ONLY 609,000 590,000 590,000 590,000 590,000 590,000 155 LAND USE REVIEW 27,000 56,000 56,000 56,000 56,000 56,000 156 EVENT PARKING 177,000 177,000 177,000 177,000 177,000 177,000 157 MISC. PERSONNEL - STADIUMS ONL 10,000 10,000 10,000 10,000 10,000 10,000 168 KART RENTALS 170,000 ' 0 0 0 0 0 Wednesday, October 29, 1997 10:50:39 AM Page 4 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 169 GREEN FEES 175,000 0 0 0 0 0 171 ANNUAL MEMBERSHIPS 16,000 0 0 0 0 �0 173 SPECIAL GOLF PACKAGE .4,000 0 0 0 0 0 174 DRIVING RANGE 5,000 0 0 0 0 0 208 DAY CARE FEES 249,395 210,000 210,000 210,000 210,000 210,000 216 DOCKAGE WATSON ISLAND 48,000 48,000 48,000 48,000 48,000 48,000 224 SPECIAL EVENT 50,000 85,000 85,000 85,000 85,000 85,000 225 ENGINEERING SERVICES 500,000 500,000 500,000 500,000 500,000 500,000 . 228 EXCESS COLLECTION FEES 2,500 6,000 6,000 6,000 6,000 6,000 250 POLICE ESCORT 38,032 42,627 42,627 .42,627 42,627 42,627 269 LOT CLEARING AND DEMOLITION 16,642 19,390 19,390 19,390 19,390 19,390 319 SOLID WASTE FEES - PENALTIES 102,869 0 0 0 0 0 329 _CITY CLERK -QUALIFYING FEES 1,262 1,262 1,275 1,287 1,300 1,300 330 SOLID WASTE FEE - RES. ACCTS 570,466 2,006,532 2,006,532 2,006,532 2,006,532 2,006,532 341 BURGLARY AND ROBBERY ALARM ORD 625,000 725,000 725,000 725,000 725,000 725,000 351 ADMIN SURCHARGE -OFF DUTY 640,956 640,956 647,366 653,839 660,377 660,377 353 COST ALLOCATION PLAN 1,018,947 1,018,947 1,018,947 1,018,947 1,018,947 1,018,947 358 TENNIS FEES 4,393 4,849 4,849 4,849 4,849 4,849 359 TOWING ADMIN. CHARGES REVENUE 266,000 194,529 194,529 194,529 194,529 194,529 396. DOCKAGE LONG TERM 2,896,520 2,896,520 3,004,520 3,004,520 3,004,520 3,004,520 397 DOCKAGE TRANSIENT 754,532 754,532 854,532 854,532 854,532 854,532 398 DOCKAGE COMMERCIAL 427,712 427,712 427,712 427,712 427,712 427,712 419 DOCKAGE - USERS SURCHARGE 83,000 83,000 83,000 83,000 83,000 83,000 Wednesday; October 29, 1997 10:50:41 AM Page 5 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 . FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 441 PARKING RENTAL . 289,248 264,248 264,248 264,248 264,248 264,248 453 SALE OF MAPS & PUBLICATIONS 931 931 940 949 959 959 460 SPECIAL INSPECTIONS 23,855,384 23,826,384' 27,296,077 25,847,740 25,875,772 25,875,772 463 MISC PERSONNEL - AUDITORIUMS 40,295 40,295 40,295 40,295 40,295 40,295 470 GAS INSPECTION PERMITS 38,500 35,000 35,000 35,000 35,000 35,000 471 AIR CONDITIONING PERMITS 350,000 375,000 375,000 375,000 375,000 375,000 472 ENERGY CONSERVATION INSP PERMI 100,000 300,000 300,000 300,000 300,000 300,000 476 ELEVATOR PERMIT KEY BOX FEE 700 2,600 2,600 2,600 2,600 2,600 495 TRASH LIEN REVENUE 196,303 300,000 300,000 300,000 300,000 .300,000 507 LIEN SEARCH FEES 120,000, 80,250 80,250 80,250 80,250 80,250 515 COMPREHENSIVE PLAN AMENDMENT F 2,500 2,500 2,500 2,500 2,500 _ 2,500 517 PREMIUM FROM EX EMPLOYEES-COBR 40,000 34,169 34,169 34,169 34,169 34,169 520 HCB APPERANCE FEE 833 833 841 .849 858 858 523 $0.50 TICKET SURCHARGE 1,500 1,500 1,500 1,500 1,500 1,500 524 $0.75 TICKET SURCHARGE 15,000 15,000 15,000 15,000 15,000 15,000 525 $1.00 TICKET SURCHARGE 565,000 865,000 -865,000 865,000 865,000 865,000 526 SIDEWALK CAFE PERMITS 70,463 70,463 70,463 70,463 70,463, 70,463 527 WATERFRONT IMPROVEMENTS PERMIT 32,437 32,437 32,437 32,437 32,437 32,437 528 PUBLIC WORKS - SALE OF DOCUMEN 17,286 17,286 17,286 17,286 .17,286 17,286 529 HAULERS PERMIT FEE 2,625,000 2,750,000 2,750,000 2,750,000 2,750,000 2,760,000 530 RADON GAS TRUST FUND COMMISSIO 500 500 500 500 500 500 536 ZONING VIOLATION LETTERS 5,000 5,000 5,000 5,000 5,000 5,000 538 FIRE - CERTIF. OF USE RENEWALS 1,340,034 1,242,720 1,242,720 1,242,720 1,242,720 1,242,720 Wednesday, October 29, 1997 10:50:42 AM Page 6 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated . Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 555 CODE ENFORCEMENT ADMIN. FEE 85,000 91,964 91,964 91,964 91,964 91,964 570 INTERIM PROPRIET FEES ORD 1060 223,923 585,089 585,089 585,089 585,089 585,089 571 ORD. 10596-ALARM SYSTEM INSPEC 22,914 27,337 27,337 27,337 27,337 27,337 572 ORD. 10596- REINSPECTION FEES 4,949 4,949 4,998 5,048 5,098 5,098 577 PLAN CHECKING FEE 204,209 219,572 219,572 219,572 219,572 219,572 578 RIGHT-OF-WAY USE PERMIT 69,431 30,647 30,647 30,647 30,647 30,647 584 SPRINKLER SYSTEM INSPECTION 25,133 31,600 31,600 31,600 31,600 31,600 589 FIRE SAFETY PERMIT FEES 525,000 525,000 1,050,000 1,050,000 1,050,000 1,050,000 598 ADMIN. FEE - FIRE (ORD. 10237) 4,959 4,959 5,008 5,058 5,109 5,109 599 ADMIN. FEE - SELF INS. (0.1023 1,356 11356 1,369 1,383 1,397 1,397 658 PAWN SHOP YEARLY FEE 200,000 200,000 204,000 208,080 212,242 216,487 672 ZONING REVIEW FEES 65,000 200,000 200,000 200,000 200,000 200,000 676 FLOOD VARIANCE FEES WAIVER APP 1,000 2,000 2,000 2,000 .. 2,000 2,000 TOTAL CHARGES FOR SERVICES 50,926,575 53,419,574 57,833,346 56,606,238 56,866,155 57,102,105 05 FINES AND FORFEITS 084 METRO COURT -FINES & FORFEITURE 3,055,815 2,918,086 2,918,086 2,918,086 2,918,086 2,918,086 247 FORFEITED FUNDS 187,500 312,997 312,997 312,997 312,997 312,997 509 SCHOOL CROSSING GUARD 107,146 147,193 147,193 147,193 147,193 147,193 637 NUISANCE ABATEMENT BOARD FINES 1,250 .250 250 250 250 250 TOTAL FINES AND FORFEITS 3,351,713 3,378,526 3,378,526 3,378,526 3,378,526 3,378,526 06 MISCELLANEOUS REVENUE Wednesday, October 29, 1997 10:50:43 AM Page 7 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget_ Budget Budget Fund 01 GENERAL FUND 040 CONCESSIONS 048 REIMB LOST PROPERTY 070 RENTAL PROPERTIES 083 - PENSION -METRO WATER & SEWERS 094 INTEREST ON INVESTMENT 095 INTEREST ON LOT CLEARING LIENS 105 PUBLIC HEARING FEES -PLAN. BOAR 136 INTEREST ON ASSESSMENT LIENS 143 MISCELLANEOUS REVENUE 161 UTILITIES 170 PRO SHOP 211 WITNESS FEE 261 OTHER LAND SALES . 327 OTHER SURPLUS SALE 360 CRIMINAL JUSTICE INSTITUTE 379 INTEREST INCOME -OTHER 508 STOP LOSS RECOVERY 514 INTEREST ON SW DILENQUENT A/C 587 WORKERS RECOVERY 702 INVESTMENT ADMINISTRATION COST 841 ROUSE MIAMI INC CONTRIBUTION TOTAL MISCELLANEOUS REVENUE 1,467,400 1,455,400 1,455,400 1,455,400 1,455,400 1,455,400 8,955 8,955 8,955 8,955 8,955 8,955 2,628,062 2,609,062 2,929,062 2,929,062 3,421,562 3,421,562 105,831 105,831 105,831 105,831 105,831 105,831 1,800,000 1,800,000 1,700,000 1,700,000 1,700,000 1,700,000 =11,000 11,000 11,000 11,000 11,000 11,000 :306,000 350,000 350,000 350,000 350;000 350,000 9,383 0 0 0 0 0 409,547 444,383 444,383 444,383 444,383 444,383 .42,263 42,263 42,263 42,263 42,263 42,263 40,000 0 0 0 0 0 8,973 8,973 8,973 8,973 8,973 8,973 5,805,000 5.805,000 0 0 0 0 1,000 1,000 1,000 2,001,000 2,001,000 2,001,000 5,000 10,000 10,000 10,000 10,000 10,000 238,477 400,000 400,000 400,000 400,000 400,000 240,142 150,000 150,000 150,000 150,000 150,000 10,894 0 0 0 0 0 3,000 3,000 3,000 3,000 3,000 3,000 30,900 30,900 31,827 32,781 33,765 33,765 1,500,000 1,500,000 1,545, 000 1,591,350 1,639,090 1,639,090 14,671,827 14,735,767 9,196,694 11,243,998 11,785,222 11,785,222 Wednesday, October 29, 1997 10:50:44 AM Page 8 of 15 City of Miami 5-Year Estimates Revenues by Fund, Character and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 08 NON -REVENUES - --- -- ----212---CONTRIB-FROM-EMPLOYEES -GRP 1 2,149,347 2,149,347 2,149,347 2,149,347 2,149,347 2,149,347 215 SALARY RECOVERY 164,331 180,664 180,664 180,664 180,664 180,664 221 PENSION -METRO COURTS. 71,691 71,691 71,691 71,691 71,691 71,691 308 POLICE OVERTIME SALARY REFUND 400,000 500,000 500,000 500,000 500,000 500,000 503 CONTRIB FROM RETIREES -GROUP IN 2,856,699 3,103,837 3,103,837 3,103,837 3,103,837 3,103,837 705 CONTR./ENVIR. STORMWATER SER. 6,100,000 6,100,000 6,100,000 6,100,000 6,100,000 6,100,000 990 OTHER NON -OPERATING 1,464,000 1,464,000 0 0 0 0 999 BUDGETED REVENUES 464,014 160,000 160,000 160,000 160,000 160,000 TOTAL NON -REVENUES 09 INTERNAL SERVICE FUNDS 193 CONTRIBUTION FROM GN.FD. 309 CONTRIBUTION FROM UTIL. SERV.T 356 CONTRIBUTION FROM TRUST AND AG. 436 CONTR FROM SPECIAL REVENUE FUN 446 CONTRIB FROM DEBT SERVICE 596 CONTRIBUTION FOR LAW DEPT SER 640 CONTR FROM GUAR ENTITL D.S TOTAL INTERNAL SERVICE FUNDS 13, 670, 082 13, 729, 539 12, 265, 539 12, 265, 539 12,265,539 12,265,539 10,080,707 13,158,562 0 3,104,916 4,400,000 3,700,000 12,253,853 14,132,788 15,185,418 23,620,004 24,843,314 26,008,442 1,808,024 1,808,024 0 0 0 0 6,789,764 6,789,764 6,793,764 8,210,654 8,203,170 8,117,026 294,000 294,000 0 0 0 0 100,000 100,000 100,000 100,000 100,000 100,000 4,808,622 4,808,622 4,807,223 4,807,223 4,807,223 4,807,223 36,134,970 41,091,760 26,886,405 39,842,797 42,363,707 42,732,691 GENERAL FUND TOTAL 289,948,781 295,837,353 284,311,579 294,284,811 297,365,395 299,174,908 Wednesday, October 29, 1997 10:50:45 AM Page 9 of 15 City of Miami 5-Year Estimates as of 10/8197 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 10 SPECIAL REVENUE FUND 01 TAXES 051 TELEPHONE FRANCHISE 1,476,960 1,476,960 1,491,729 1,506,646 1,521-1713 1,521,713 130 UTILITY SERV. TX. -ELECTRICITY 19,409,131 19,621,691 19,807,988 19,995,009 20,182,853 20,371,599 131 UTILITY SERV. TX.-TELEPH./TELE 4,735,173 5,619,226 5,662,694 5,706,255 5,749,931 5,793,742 132 UTILITY SERV. TX. -GAS 1,006,678 1,032,046 1,043,186 1,054,384 1,065,646 1,076,976 133 UTILITY SERV. TX. -WATER 2,804,875 3,094,776 3,300,838 3,519,400 3,751,268 3,997,289 134 UTILITY SERV. TX. -FUEL OIL 27,288 47,838 48,851 49,860 50,926 51,988 473 LOCAL OPTION GAS TAX 6,862,000 6,862,000 6,866,000 6,869,000 6,871,006 6,871,000 625 PUBLIC SERVICE TAX ORD-10263 5,729,640 6,176,143 6,789,958 7,461,029 8,194,737 8,996,933 TOTAL TAXES 42,051,745 43,930,680 45,011,244. 46,161,603 47,388,074 48,681,240 03 INTERGOVERNMENTAL REVENUE 203 FLA. DEPT. HEALTH & REHABILTAT 268,315 268,315 274,513 280,724 283,496 283,496 349 OTHER PUBLIC AND PRIVATE CONTR 15,000 15,000 15,000 15,000 15,000 15,000 429 FI DEPT OF LAW ENFORCEMEENT 103,000 103,000 106,090 109,272 112,551 112,551 621 E911 SYSTEM FEE - RECURRING FE 974,085 974,085 988,592 1,003,535 1,018,927 1,034,780 622 E911 SYSTEM NON -RECURRING FEE 240,000 240,000 240,000 240,000 240,000 240,000 TOTAL INTERGOVERNMENTAL REVENUE' 1,600,400 1,600,400 1,624,195 1,648,531 1,669,974 1,685,827 04 CHARGES FOR SERVICES 017 OTHER SVCE CHGES AND FEES-SP F 30,000 34,001 30,000 30,000 30,000 32,446 042 RENTAL- 75,000 75,000 75,000 75,000 75,000 75,000 043 CLASS -FEES 40,000 40,000 40,000 40,000 40,000 40,000 Wednesday, October 29, 1997 10:50:46 AM Page 10 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 10 SPECIAL REVENUE FUND 154 RENTAL - AUDITORIUMS ONLY 418,730 418,730 418,730 418,730 418,730 418,730 422 RENTAL MEETINGS/SEMINAR ROOMS 346,985 346,985 346,985 346,985 346,985 346,985 4.23 MISCELLANEOUS CONVENTION CENTE 354,573 354,573 354,573 354,573 354,573 354,573 441 PARKING RENTAL 2,007,687 2,007,687 2,067,918 2,129,955 2,193,854 2,193,854 523 $0.50 TICKET SURCHARGE 4,000 0 4,000 4,000 4,000 4,000 524 $0.75 TICKET SURCHARGE 10,000 10,000 10,000 10,000 10,000 10,000 525 $1.00 TICKET SURCHARGE 70,652 70,652 70,652 70,652 70,652 70,652 534 ADMINISTRATION FEE 18,000 18,000 18,000 18,000 18,000 18,000 549 STORMWATER UTILITY FEE 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 629 IMPACT FEE ADMINISTRATION 18,000 18,000 18,000 18,000 18,000 18,000 650 SUMMER CAMP FEES 58,174 58,174 60,415 62,721 65,097 65,098 TOTAL CHARGES FOR SERVICES 12,451,801 12,451,802 12,514,273 12,578,616 12,644,891 12,647,338 06 MISCELLANEOUS REVENUE 040 CONCESSIONS 10,000 10,000 10,000 10,000 10,000 10,000 070 RENTAL PROPERTIES 300,000 300,000 300,000 300,000 300,000 300,000 094 INTEREST ON INVESTMENT 205,717 205,717 205,717 205,717 205,717 205,717 152 PR. YRS. REVENUE 160,000 160,000 160,000 160,000 160,000 160,000 443 RENTAL - AIR RIGHTS 366,852 366,852 366,852 366,852 366,852 366,852 451 RENTAL PROP -CONY CTR BASE RENT 427,417 427,417 440,239 453,446 467,049 467,049 TOTAL MISCELLANEOUS REVENUE 09 INTERNAL SERVICE FUNDS Wednesday, October 29, 1997 10:50:47 AM 1,469,986 1,469, 986 1,482, 808 1,496, 015 1,509,618 1,509,618 Page 11 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 10 SPECIAL REVENUE FUND 192 CONTRIBUTION FROM SPA 2,590,006 2,590,006 2,777,411 2,986,094 3,066,160 3,099,277 193 CONTRIBUTION FROM GN.FD. 975,495 975,495 943,233 998,798 1,004,534 1,016,938 901 ACCTS REC COLLECTIONS 2,150,000 1,118,769 1,002,858 932,533 902,926 892,507 TOTAL INTERNAL SERVICE FUNDS 5,715,501 4,684,270 4,723,502 4,917,425 4,973,620 5,008,722 SPECIAL REVENUE FUND TOTAL 63,289,433 64,137,138 65,356,022 66,802,190 68,186,177 69,532,745 Wednesday, October 29, 1997 10:50:48 AM Page 12 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 20 DEBT SERVICE FUNDS 01 TAXES 001 TAXES REAL CURRENT 002 TAXES PERSONAL CURRENT 051 TELEPHONE FRANCHISE 283 TAXES REC REAL DEL TOTAL TAXES 03 INTERGOVERNMENTAL REVENUE 074 STATE OF FLA REVENUE SHARING TOTAL INTERGOVERNMENTAL REVENUE 09 INTERNAL SERVICE FUNDS 309 CONTRIBUTION FROM UTIL. SERV.T 356 CONTRIBUTION FROM TRUST AND AG 436 CONTR FROM SPECIAL REVENUE FUN 447 CONTRIB FROM DEBT SERV M U ST 903 DEPOSITS TOTAL INTERNAL SERVICE FUNDS 17,693,971 17,693, 971 18,096, 732 16,212,935 16,073,698 15,548,198 2,440,548 2,440,548 2,496,101 2,236,267 2,217,062 2,145,402 705,168 705,168 704,440 707,547 709,182 709,343 203,379 203,379 208,008 186,355 184,755 184,755 21,043,066 21,043,066 21,505,281 19,343,104 19,184,697 18,587,698 5,421,687 5,421,687 5,420,896 5,421,643 5,419,976 5,419,582 5,421,687 5,421,687 5,420,896 5,421,643 5,419,976 5,419,582 12,105,072 12,105,072 12,117,640 4,823,966 4,809,133 4,850,999 988,544 988,544 797,744 995,093 982,228 977,647 1,451,481 1,451,481 1,437,341 0 0 0 9,353,860 9,353,860 9,350,457 9,341,987 9,342,914 9,429,086 2,595,000 2,595,000 2,595,000 2,595,000 2,595,000 3,205,145 26,493,957 26,493,957 26,298,182 17,756,046 17,729,275 18,462,877 DEBT SERVICE FUNDS TOTAL 52,958,710 52,958,710 53,224,359 42,520,793 42,333,948 42,470,157 Wednesday, October 29, 1997 10:50:49 AM Page 13 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 60 TRUST & AGENCY FUNDS 01 TAXES 001 TAXES REAL CURRENT 1,323,060 957,303 957,303 1,047,303 1,137,303 1,227,36 TOTAL TAXES 1,323,060 957,303 957,303 1,047,303 1,137,303 1,227,303 03 INTERGOVERNMENTAL REVENUE 310 CONTR FROM OTHER GOVTS-COUNTY 193,671 300,000 300,000 300,000 300,000 300,000 TOTAL INTERGOVERNMENTAL REVENUE 193,671 300,000 300,000 300,000 300,000 300,000 06 MISCELLANEOUS REVENUE 143 MISCELLANEOUS REVENUE 592,994 450,000 450,000 450,000 450,000 450,000 TOTAL MISCELLANEOUS REVENUE 592,994 450,000, 450,600 450,000 450,000 450,000 09 INTERNAL SERVICE FUNDS 193 CONTRIBUTION FROM GN.FD. 319,414 185,000 185,000 185,000 185,060 185,000 TOTAL INTERNAL SERVICE FUNDS 319,414 185,000 185,000 185,000 185,000 185,000 TRUST & AGENCY FUNDS TOTAL 2,429,139 1,892,303 1,892,303 1,982,303 2,072,303 2,162,303 Wednesday, October 29, 1997 10:50:50 AM Page 14 of 15 City of Miami 5-Year Estimates as of 10/8/97 Revenues by Fund, Character and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget GRAND TOTAL 408,626,062 414,825,503 404,784,263 405,590,097 409,957,823 413,340,113 Wednesday, October 29, 1997 10:50:50 AM Page 15 of 15 APPENDIX F 5-Year Estimates: Revenues by Fund and Minor Object City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 01 GENERAL FUND 100 SALARIES & WAGES -FIXED 001 SALARIES - CLASS. PERM. FT 113,931,596 113,719,742 121,399,619 127,206,221 127,254,654 126,568,217 002 FULL DISABILITY SALARIES 25,767 0 0 0 0 0 003 2/3 DISABILITY SALARIES 28,132 0 0 0 0 0 006 EARNED TIME PAYOFF 913,585 913,585 913,585 913,585 913,585 .913,585 007 ADVANCE EARNED INCOME CREDIT 417 4,230 4,230 4,247 4,216 4,216 008 NET NRO'S 54,819 51,932 54,600 56,882 57,362 58,188 009 AIR COORD.. 450 450 450 452 448 448 010 SALARIES - UNCLASSIFIED 14,109,502 13,758,730 14,367,506 15,069,594 15,256,129 15,256,129 011 SALARIES - COMMISSION / BOARDS 76,974 96,360 96,360 96,360 96,360 96,360 012 SALARIES - PERM. PART TIME 3,655,559 3,661,621 3,664,607 3,676,647 3,660,887 3,660,887 013 SALARIES -TEMPORARY 1,916,489 1,803,654 1,803,654 1,803,737 1,803,570 1,803,570 025 PREVENTION PAY 2,972,304 3,200,371 3,304,422 3,318,811 3,195,697 3,088,014 035 MEDICAL HOLD 72,945 0 0 0 0 0 050 SALARIES - OVERTIME 1 REGULAR 6,023,842 6,022,142 6,022,142 6,022,142 6,022,142 6,022,142 051 OVERTIME EVENTS 500,000 500,000 500,000 500,000 500,000 500,000 Wednesday, October 29, 1997 10:49:10 AM Page 1 of 26 City of Miami ,. 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 053 HOLIDAY PAY 672,454 671,804 671,804 671,804 671,804 671,804 055 SALARIES - SHIFT DIFFERENTIAL 364,701 364,701 364,701 364,701 364,701 364,701 060 SALARIES - LAW ENFORCEMENT INC 625,000 625,000 625,000 625,000 625;000 625,000 064 IAFF - SALARY INCENTIVE OVERTI 573,206 573,206 573,206 573,206 573,206 573,206 065 SALARIES - MOTORCYCLE ALLOWANC 9,369 9,369 9,369 9,369 9,369 9,369 066 WORKING OUT OF CLASSIFICATION 20,000 20,000 20,000 20,000 20,000 20,000 067 DRIVER ENGINEER ALLOWANCE 315,604 300,765 313,949 325,864 329,276 331,482 068 COMMUNICATIONS TRAINER 10,640 10,440 10,440 10,480 10,400 10,400 069 MISCELLANEOUS PLUS ITEM 8,242 8,148 8,459 8,741 8,792 8,796 074 OFF -DUTY 268,550 268,550 268,550 268,550 268,550 268,550 TOTAL SALARIES & WAGES -FIXED 147,150,147 146,584, 800 154,996,653 161, 546, 393 161,646,148 160, 855,064 Wednesday, October 29, 1997 10:49:12 AM Page 2 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 200 FRINGE BENEFITS -FIXED 070 CLOTHING ALLOWANCE 167,610 156,228 156,228 156,699 155,520 155,520 072 INCENTIVE PAY 11,946 218,551 218,551 219,384 217,704 217,704 073 FIRE - EMT RECERTIFICATIONS 60,000 60,000 60,000 60,000 60,000 60,000 075 CLOTHING - CITY PURCHASE 768,910 767,810 767,810 767,810 767,810 767,810 080 EXPENSE ALLOWANCE 39,710 44,510 44,510 44,519 44,500 44,500 081 OFFICIAL ENTERTAINMENT 2,500 2,500 2,500 2,500 2,500 2,500 083 CAR ALLOWANCE 65,395 77,040 77,040 77,172 76,900 76,900 084 24 HRS CITY VEHICLE 10,468 13,362 13,362 13,362 13,362 13,362 085 TOOL ALLOWANCE 18,453 19,490 19,490 19,553 19,388 19,388 ; 081 TUITION REIMB.-EDUC. ASSIST.-N 11,000 11,000 11,000 11,000 11,000 11,000 100 SOCIAL SECURITY CONTRIB 4,892,887 4,835,355 5,080,980 5,289,692 5,306,797 5,306,863 104 SOC. SEC. ON TERM LIFE INSURAN 2,821 27,073 27,073 27,176 26,964 26,964 110 RETIREMENT CONTRIB. 28,475,648 28,626,002 29,377,510 30,216,572 31,080,806 31,970,967 130 GROUP INSURANCE CONTRIB. 20,097,184 20,105,450 20,182,071 20,749,699 21,326,486 21,916,165 141 PLUS ITEM/EMT CERTIFICATION 1. 219,767 203,037 212,644 221,452 221,636 223,928 142 PLUS ITEM/HAZ MAT 1.5% 40,191 40,279 42,064 43,719 44,152 44,446 143 PLUS ITEM/ST CE FT - 1.5% 6,465 5,755 5,877 5,960 5,956 5,956 Wednesday, October 29, 1997 10:49:13 AM Page 3 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 144 PLUS ITEM/ST CE FP - 1.5% 25,882 23,983 24,677 25,249 25,257 25,299 145 PLUS ITEM/DIVE TEA- 1.5% 23,225 23,119 24,089 24,963 . 25,367 25,820 146 PLUS ITEM/IAFF SWAT TEAM - 1.5 12,177 13,581 14,076 14,581 14,758 14,832 147 PLUS ITEM/ST COMAN - 1% 9,360 9,437 9,809 1.0,168 10,255 10,278 149 ALS ACTING 73,000 73,000 73,000 73,000 73,000 73,000 150 WORKER'S COMPENSATION 10,853,431 10,853,431 11,086,735 11,184,056 11,228,824 11,023,420 160 UNEMPLOYMENT COMPENSATION 62,000 62,000 62,000 62,000 62,000 62,000 161 PLUS ITEM/FIELD TRAINING OFFIC 160,592 130,050 136,526 142,451 144,319 146,400 162 PLUS ITEM/BOMB SQUAD - 5% 13,558 11,555 12,078 12,484 12,512 12,601 163 PLUS ITEM/SWAT - 5% 66,043 69,957 73,649 77,035 78,343 79,621 164 PLUS ITEM/COMMUNICATIONS - 5% 94,817 139,863 144,149 148,560 150,096 151,274 165 PLUST ITEM/SHIFT DIFF. O/T PAY 20,000 20,000 20,000 20,000 20,000 20,000 1.66 PLUS ITEM/GARAGE ON CALL - 7.5 13,511 13,511 14,146 14,754 14,955 15,276 167 PLUS ITEM/REVENUE INCENTIVE PA 733,303 896,000 896,000 896,000 896,000 896,000 170 SEVERANCE PAY 837,029 1,580,115 1,625,931 1,672,091 1,720,666 1,770,698 180 TUITION REIMBURSEMENT 118,350 118,350 118,350 118,350 118,350 118,350 185 FRINGE BENEFITS - OTHER 5,304 5,304 5,304 5,304 5,304 5,304 Wednesday, October 29, 1997 10:49:14 AM Page 4 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 190 PERSONAL SERVICES - OTHER 5,100 5,100 5,100 5,100 5,100 5,100 TOTAL FRINGE BENEFITS -FIXED 68,017,637 69,261,798 70,644,329 72,432,415 73,986,587 75,319,246 Wednesday, October 29, 1997 10:49:15 AM Page 5 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 Revised Budget FY 1998 Year End Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 300. OPERATING EXPENSES -FIXED 205 LOT CLEARING AND DEMOLITION 2,060 2,060 2,122 2,186 2,252 2,3'20 211 ACTUARIAL REQUIREMENTS -SYSTEM 14,065,851 14,155,472 14,487,827 14,922,462 15,370,136 15,831,240 212 ACTUARIAL REQUIREMENTS -PLAN 12,988,256 12,988,256 13,377,904 13,779,241 14,192,618 14,618,397. 213 CITY PENSION CONTRIBUTION I.C. 100,000 100,000 138,929 106,090 109,273 112,551 280 PROFESSIONAL SERVICES - ACCT'G 388,946 388,946 400,614 412,633 425,013 437,764 287 ADVERTISING 511,503 511,503 526,846 542,653 558,931 575,698 310 COURT COSTS AND FEES 14,652 14,652 15,091 15,546 16,014 16,496 420 TRAVEL AND PER DIEM - OTHER 67,655 72,187 74,353 76,586 78,884 81,252 470 ENTERTAINMENT 6,058 9,081 9,354 9,634 9,923 10,221 495 PARKING EXPENSE 113,412 121,652 125,302 129,062 132,934 136,923 531 DADE COUNTY SCALE FEES 7,324,385 7,846,350 8,081,740 8,324,192 8,573,918 8,831,135 533 POSTAGE 298,350 298,865 307,832 317,068 326,578 336,377 540 UTILITY SERVICES - ELECTRICITY 2,666,862 2,625,308 2,704,067 2,785,190 2,868,744 2,954,807 545 UTILITY SERVICES -STREET LIGHTI 3,988,551 3,988,551 4,108,208 4,231,454 4,358,398 4,489,150 550 UTILITY SERVICES - GAS 23,647 23,647 24,356 25,088 25,841 26,615 560 UTILITY SERVICES - WATER 615,167 607,452 625,677 644,444 663,780 683,693 610 RENT OF EQUIPMENT - OUTSIDE 780,083 718,489 740,040 762,241 785,106 808,662 Wednesday, October 29, 1997 10:49:16 AM Page 6 of 26 City of Miami 5-Year Expenditure Estimates as of 10/8/97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 620 RENT BUILDINGS 24,006 24,006. 24,727 25,470 26,234 27,021 630 RENT LANb 18,025 18,025 18,566 19,123 19,697 20,288 640 INSURANCE - PROPERTY 8,050,912 8,050,912 8,292,439 8,541,214 8,797,448 9,061,W9 710 FOOD 110,925 110,925 114,252 117,679 121,210 124,846 715 MOTOR FUEL 2,037,961 2,037,961 2,099,100 2,162,073 2,226,935 2,293,743 728 EQUIPMENT USAGE 12,360 12,360 12,731 13,113 13,506 13,911 770 INTERNAL SERV CHGES MOTOR POOL 5,906,698 5,906,698 6,224,289 6,415,729 6,555,140 6,689,825 771 INTERNAL SERV CHGES HEAVY EQUI 4,505,567 4,505,567 4,754,809 4,893,794 4,978,780 5,054,396 772 INTERNAL SERV CHGES PROPERTY M 3,903,358 3,903,358 3,935,294 4,076,716 4,167,074 4,243,560 773 INTERNAL SERV CHGES PRINT SHOP 923,697 924,583 955,496 983,260 998,273 1,013,843 774 INTERNAL SERV CHGES COMMUNIC M 1,215,229 1,215,538 1,222,407 1,249,964 1,267,293 1,279,055 775 INTERNAL SERV CHGES CUSTODIAL 117,367 117,367 120,947 124,280 127,713 131,249 TOTAL OPERATING EXPENSES -FIXED 70;781,543 71,299,771 73,525,319 75,708,185 77,797,646 79,906,407 Wednesday, October 29, 1997 10:49:17 AM Page 7 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of iQ/8/97 Organization FY 1998 Revised Budget FY 1998 Year End Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 400 OPERATING EXPENSES -VARIABLE 220 PROFESSIONAL SERVICES - APPRAI 72,100 72,100 74,262 76,490 78,785 81,148 230 PROFESSIONAL SERVICES -ARCHIT 0 1,030 1,061 1,093 1,126 1,160 240 PROFESSIONAL SERVICES - ENGINE 14,935 14,935 15,383 15,844 16,320 16,810 250 PROFESSIONAL SERVICES - LEGAL 617,833 642,833 161,,368 180,460 200,124 220,378 260 PROFESSIONAL SERVICES - DENTAL 515,000 665,000 680,451 696,364 712,755 729,638 265 PROFESSIONAL SERVICES - ARBITR 7,774 7,774 8,007 8,247 8,494 8,749 270 PROFESSIONAL SERVICES - OTHER 1,668,041 1,678,041 1,728,079 1,779,622 1-1832,711 1,887,395 289 SPECIAL SERVICES - MISCELLANEO 22,847 22,847 23,532 24,238 24,966 25,716 305 OTHER EXPENSES 4,120 4,120 4,244 - 4,371 4,502 4,637 330 TAXES 139,286 139,286 143,465 147,769 152,202 156,769 335 LICENSE, PERMITS & MISCELLANEO 283,827 283,827 292,343 301,113 310,148 319,452 340 OTHER CONTRACTUAL SERVICES - 0 2,883,429 2,883,429 2,969,931 3,059,031 3,150,805 3,245,328 475 ENTERTAINMENT 1,259 1,259 1,297 1,336 1,377 1,419 510 COMMUNICATIONS SERV. TELEPH. 0 1,159,455 1,159,455 1,194,024 1,229,655 1,266,271 1,304,045 530 TRANSPORTATION 27,964 27,964 28,803 29,667 30,557 31,474 532 ROAD TOLLS 66,461 66,461 68,454 70,508. 72,622 14,799 534 DELIVERY SERVICES 1,036 1,030 1,061 1,093 1,126 1,160 Wednesday, October 29, 1997 10:49:18 AM Page 8 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised, Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 650 INSURANCE - LIABILITY 1;745,066 1,745,066 1,797,418 1,851,341 1,906,882 1,964,088 651 VEHICLE LIABILITY SELF FD 899,007 899,007 925,977 953,756 982,369 1,011,840 652 POLICE TORT LIABILITY SELF-FD 2,317,500 2,317,500 2,387,025 2,458,636 2,532,395 2,608,367 653 . SLIPS/FALLS LIABILITY SELF-FD 1,030,000 1,030,000 1,060,900 1,092,727 1,125,509 1,159,274 655 GROUP LIFE AD/D INS PREMIUM 2,781,000 2,781,000 2,864,430 2,950,363 3,038,874 3,130,040 656 GROUP HEALTH INS BENEFIT 14,854,235 14,854,235 14,799,862 15,258,858 15,731,624 16,218,575 657 GROUP ADM COSTS - OUTSIDE SERV 267,800 267,800 275,834 284,109 292,632 301,411 661 PUBLIC OFFICIALS LIABILITY 1,960,000 1,960,000 2,018,800 2,079,364 2,141,745 2.205,997 665 WORKERS' COMPENSATION PAYMENTS 3,167,158 3,167,158 2,762,173 2,610,038 2,460,839 2,064,664 666 WORKERS' COMPENSATION MEDICAL 3,455,000 3,455,000 3,058,650 3,165,410 3,275,372 3,388,633 667 WORKERS' COMPENSATION LEGAL 821,563 821,563 846,210 871,596 897,744 924,676 668 WORKERS' COMPENSATION MISCELLA 772,500 772,500 795,675 819,545 844,131 869,455 669 FIC SELF-INSURANCE ASSESSMENT 772,500 772,500 795,675 819,545 844,131 869,455 670 REPAIR/MAINTENANCE - OUTSIDE 3,543,760 3,540,155 3,646,359 3,755,746 3,868,421 3,984,478 680 PRINTING/131NDING - OUTSIDE 120,016 120,016 123,615 127,323 131,142 135,076 690 PROMOTIONAL ACTIVITIES 25,029 22,454 23,128 23,822 24,537 25,273 700 OFFICE SUPPLIES 489,789 490,194 504,899 520,046 535,647 551,715 Wednesday, October 29, 1997 10:49:19 AM Page 9 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 701 REPAIRS -EQUIPMENT SUPPLIES 63,087 63,087 64,979 66,929 68,938 71,006 702 MOTOR VEHICLE PARTS 1,083,714 1,083,714 1,116,226 1,149,714 1,184,207 1,219,734 703 AMMUNITION 61,800 61,800 63,654 65,564 67,531 69,557 704 CHEMICALS 77,898 77,898 80,235 82,642 85,121 87,675 705 HOUSEKEEPING / SANITATION SUPP 124,244 123,054 126,746 130,548 134,465 138,498 706 BUILDING MATERIALS AND SUPPLIE 104,442 104,030 107,149 110,363 113,675 117,087 707 ELECTRICAL SUPPLIES 104,751 104,751 107,893 111,131 114,466 117,901 708 PLUMBING SUPPLIES 61,182 57,577 59,304 61,083 62,916 64,803 709 FIRE HOSE AND ATTACHMENTS 17,819 17,819 18,354 18,904 19,471 20,055 712 HORTICULTURAL SUPPLIES 117,076 87,550 90,177 92,882 95,668 98,538 713 LUBRICANTS AND MOTOR OIL 109,709 109,709 113,000 116,390 119,882 123,479 714 DRUGS AND MEDICINE 303,335 303,335 312,433 321,807 331,462 341,406 716 PAPER STOCK - PRINTING 114,150 114,150 117,574 121,lb2 124,734 128,477 717 PLAYGROUND SUPPLIES 36,197 36,197 37,282 38,400 39,552 40,738 718 PARTS AND MAINTENANCE SUPPLIES 192,270 192,270 198,039 203,980 210,101 216,405 719 SAFETY SUPPLIES 128,065 127,138 130,951 134,881 138,927 143,096 720 EXPENDABLE TOOLS SHOP SUPPLIES 171,271 167,872 172,908 178,095 183,439 188,940 Wednesday, October 29, 1997 10:49:20 AM Page 10 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 721 TIRES TUBES 502,022 502,022 517,082 532,595 548,573 565,031 722 MISCELLANEOUS SUPPLIES 636,267 640,284 659,490 679,277 699,652 720,642 723 PRINTING SUPPLIES 18,540 18,540 19,096 . 19,669 20,259 20,867 724 PAINT SUPPLIES 31,930 31,930 32,888 33,875 34,891 35,938 726 AIR CONDITIONING SUPPLIES 39,655 39,655 40,845 42,071 43,333 44,633 731 OPER. SUPPLIES -COMPUTER PRINTI 3,090 3,090 3,183 3,278 3,376 3,477 750 ROAD MATERIALS AND SUPPLIES 82,400 82,400 84,872 87,418 90,040 92,741 760 BOOKS PUBLICATIONS MEMBERSHIPS 116,138 117,580 121,107 124,742 128,484 132,337 792 ENGINEERING - PUBLIC WORKS 515 515 .530 546 562 579 793 OZALID BILLINGS 26' .26 27 28 29 30 795 - INTERDEPMENTAL CHGES -POLICE 1 4,069 4,069 4,191 4,316 4,444 4,575 TOTAL OPERATING EXPENSES -VARIABLE 50,812,946 50,959,601 50,482,610 51,801,356 53,167,083 54,331,339 Wednesday, October 29, 1997 10:49:21 AM Page 11 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 500 CAPITAL OUTLAY -VARIABLE 830 IMPROVEMENTS OTHER THAN BUILDI 18,000 18,000 18,000 18,000 18,000 18,d00 840 EQUIPMENT - NEW 745,953 735,739 708,840 683,931 674,482 668,514 850 EQUIPMENT REPLACEMENT 801,499 801,499 801,499 801,499 801,499 801,499 870 BOOKS AND PUBLICATIONS OVER $5 13,810 13,810 13,810 13,810 13,810 13,810 880 CAPITAL LEASES 1,060,159 1,060,686 1,154,854 1,159,394 1,163,361 1,164,866 TOTAL CAPITAL OUTLAY -VARIABLE 2,639,421 2,629,734 2,697,003 2,676,634 2,671,152 2,666,689 Wednesday, October 29, 1997 10:49:22 AM - Page 12 of 26 City of Miami 5-Year Expenditure Estimates as of 10l8l97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 600 GRANTS IN AID 930 AID TO PRIVATE ORGANIZATION 1,509,954 1,359,600 1,359,600 1,359,600 1,359.600 1,359,600 950 CONTRIBUTION TO GRAL FUND 5,500,000 10,204,916 1,000,000 0 0 0 953 CONTRIBUTION TO ENTERPRISE FUN 111,600 111,600 111,600 111,600 111,600 111,600 955 CONTRIBUTION TO DIRECTOR OFFIC -131,064 -131,064 -131,064 -131,064 -131,064 -131,064 956 CONTRIBUTION TO SPECIAL REVENU 3,565,501 3,565,501 3,720,644 3,984,892 4,070,694 4,116,215 960 CONTRIBUTION TO TRUST & AGENCY 319,414 319,414 0 0 0 0 966 CONTRIBUTION TO CHP IMPROV FUN 11,338,100 11,338,100 5,700,000 7,000,000 7,000,000 7,000,000 975 TRANSFER_ -27,235,847 -27,235,847 -28,086,400 -28,889,533 -29,753,767 -30,643,928 980 ADVANCES 2,522,985 2,522,985 2,522,985 2,522,985 2,522,985 2,522,985 985 DEPRECIATION -36,391,210 -36,391,210 -37,300,526 -38,196,021 -38,867,021 -39,268,241 990 OTHER NON-OPERATING -19,619,378 -19,619,378 -20,793,243 -21,360,871 -21,937,658 -22,527,337 996 BUDGET RESERVE 4,017,125 9,017,125 3,483,792 3,483,792 3,483,792 3,483,792 TOTAL GRANTS IN AID GENERAL FUND TOTAL -54,492,820 284,908,875 -44,938,258 295,797,446 -68,412,612 283,933,302 -70,114,620 294,050,363 -72,140,839 297,127,777 -73,976,378 299,102,367 Wednesday, October 29, 1997 10:49:23 AM Page 13 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 10 SPECIAL REVENUE FUND 100 SALARIES & WAGES -FIXED 001 SALARIES - CLASS. PERM. FT 3,237,770 2,506,535 2,640,470 2,767,605 2,800,023 2,813,705 006 EARNED TIME PAYOFF 55,335 55,335 55,335 55,335 55,335. 55,335 010 SALARIES - UNCLASSIFIED 1,328,707 1,031,995 1,089,366 1,164,747 1,186,841 1,186,841 012 SALARIES - PERM. PART TIME 18,795 18,795 18,795 18,795 18,795 18,795 013 SALARIES = TEMPORARY 623,676 547,773 547,773 547,773 547,773 547,773 025 PREVENTION PAY 50,000 42,417 42,417 42,584 42,264 42,264 050 SALARIES - OVERTIME 1 REGULAR 25,480 25,486 25,480 25,480 25,480 25,480 053 HOLIDAY PAY 15,600 15,600 15,600 15,600 15,600 15,600 066 WORKING OUT OF CLASSIFICATION 2,702 2,702 2,702 2,702 2,702 -2,702 067 DRIVER ENGINEER ALLOWANCE 16,692 15,104 15,756 16,392 16,517 16,576 074 OFF -DUTY 37,088 37,088 37,088 37,088 37,088 37,088 TOTAL SALARIES & WAGES -FIXED 5,411,845 4,298,824 4,490,782 4,694,101 4,748,418 4,762,159 Wednesday, October 29, 1997 10:49:24 AM Page 14 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 200 FRINGE BENEFITS -FIXED 072 INCENTIVE PAY 0 603 603 605 600 660 075 CLOTHING - CITY PURCHASE 21,860 21,360 21,360 21,360 21,360 21,360 084 24 HRS CITY VEHICLE 4,341 4,341 4,341 4,341 4,341 4,341 085 TOOL ALLOWANCE 684 684 684 686 680 680 100 SOCIAL SECURITY CONTRIB 243,200 171,567 182,389 192,333 193,967 194,559 110 RETIREMENT CONTRIB. 1,113,014 1,096,176 1,096,176 1,096,176 1,096J76 1,096,176 130 GROUP INSURANCE CONTRIB. 573,128 562,107 562,107 562,107 562,107 562,107 141 PLUS ITEM/EMT CERTIFICATION 1. 863 863 896 926 944 952 142 PLUS ITEM/HAZ MAT 1.5% 1,697 1,697 1,764 1,824 1,839 1,848 146 PLUS ITEM/IAFF SWAT TEAM - 1.5 1,596 1,629 1,718 1,776 1,780 1,780 150 WORKER'S COMPENSATION 73,828 73,828 73,828 73,828 73,828 73,828 167 PLUS ITEM/REVENUE INCENTIVE PA 30,201 17,281 18,008 18,685 18,824 18,868 170 SEVERANCE PAY 723 723 723 723 723 723 TOTAL FRINGE BENEFITS -FIXED 2,065,135 1,952, 859 1,964,597 1,975, 370 1,977,169 1,977,822 Wednesday, October 29, 1997 10:49:25 AM Page 15 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 300 OPERATING EXPENSES -FIXED 205 LOT CLEARING AND DEMOLITION 20,600 20,600 21,218 21,855 22,511 23,186 280 ' PROFESSIONAL SERVICES - ACCT'G 4,635 4,635 4,774 4,917 5,065 5,217 287 ADVERTISING 515 515 530 546 562 579 310 COURT COSTS AND FEES 515 515 530 546 562 579 410 TRAVEL AND PER DIEM - TRAINING 140,286 140,286 144,494 148,828 153,293 154,514 420 TRAVEL AND PER DIEM - OTHER 7,210 6,180 6,365 6,556 6,753 6,956 470 ENTERTAINMENT 3,399 0 0 0 0 0 495 PARKING EXPENSE 206 206 212 218 225 232 533 POSTAGE 3,193 2,678 2,759 2,842 2,928 3,016 610 RENT OF EQUIPMENT - OUTSIDE 204,797 201,671 207,721 213,952 220,370 226,982 640 INSURANCE - PROPERTY 396,065 396,065 407,950 420,188 432,796 445,779 710 FOOD 5,463 2,214 2,280 2,348 2,418 2,491 770 INTERNAL SERV CHGES MOTOR POOL 173,664 173,664 178,874 184,240 189,767 195,460 774 INTERNAL SERV CHGES COMMUNIC M 21,630 21,630 22,279 22,948 23,637 24,346 775 INTERNAL SERV CHGES CUSTODIAL 19,900 19,900 20,497 21,112 21,745 221397 TOTAL OPERATING EXPENSES -FIXED 1,002,078 990,759 1,020,483 1,051, 096 1,082,632 1,111,734 Wednesday, October 29, 1997 10:49:26 AM Page 16 of 26 City of Miami 5-Year Expenditure Estimates as of 10/8/97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 400 OPERATING EXPENSES -VARIABLE J 250 PROFESSIONAL SERVICES - LEGAL 8,590 8,590 8,848 9,113 9,386 9,668 270 PROFESSIONAL SERVICES - OTHER 39,449 38,934 40,102 41,305 42,545 43,822 289 SPECIAL SERVICES - MISCELLANEO 5,150 5,150 5,304 5,463 5,627 5,796 325 OTHER COSTS AND LOSSES 924 924 952 981 1,010 1,040 330 TAXES 34,584 34,584 35,622 36,691 37,792 38,926 335 LICENSE, PERMITS & MISCELLANEO 850 850 876 902 929 957 340 OTHER CONTRACTUAL SERVICES - O 2,230,533 2,206,431 2,272,625 2,340,804 2,411,028 2,483,359 510 COMMUNICATIONS SERV. TELEPH. O 155,216 155,390 160.016 164,785 169,683 174,738 530 TRANSPORTATION 15,450 15,450 15,914 16,391 16,883 17,389 585 RELOCATION 30,900 30,900 31,827 32,782 33,765 34,778 603 DISCOUNT ON BONDS 63,046 63,046 64,937 66,885 68,892 70,959 670 REPAIRIMAINTENANCE - OUTSIDE 93,355 93,355 96,155 99,040 102,012 105,072 680 PRINTING/BINDING.- OUTSIDE 2,060 2,660 2,122 2,186 2,252 2,320 690 PROMOTIONAL ACTIVITIES 6,427 6,427 6,620 6,819 7,024 7,235 700 OFFICE SUPPLIES 17,412 16,382 16,874 17,380 17,902 18,439 701 REPAIRS -EQUIPMENT SUPPLIES 3,328 3,090 3,183 3,278 3,376 3,477 702 MOTOR VEHICLE PARTS 5,150 5,150 5,304 5,463 5,627 5,796 Wednesday, October 29, 1997 10:49:27 AM Page 17 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 704 CHEMICALS 8,504 8,504 8,759 9,022 9,293 9,572 705 HOUSEKEEPING / SANITATION SUPP 4,118 4,118 4,242 4,369 4,5ob 4,635 706 BUILDING MATERIALS AND SUPPLIE 618 618 07 656 676. 696 712 HORTICULTURAL SUPPLIES 1,442 1,442 1,485 1,530 1,576 1,623 713 LUBRICANTS AND MOTOR OIL 103 103 106 109 112 . 115 714 DRUGS AND MEDICINE 117,420 117,420 _ 120,943 124,571- 128,308 132,157 717 PLAYGROUND SUPPLIES 7,416 6,695 6,896 7,103 7,316 7,535 718 PARTS AND MAINTENANCE SUPPLIES 3,902 3,902 4,019 4,140 4,264 4,392 719 SAFETY SUPPLIES - 2,472 2,472 2,546 2,622 2,701 2,782 720 EXPENDABLE TOOLS SHOP SUPPLIES 1,648 1,648 1,697. 1,748 1,800 1,854. 721 TIRES TUBES 3,090 3,090 3,183 3,278 3,376 3,477 722 MISCELLANEOUS SUPPLIES 73,143 199,559 200,378 201,452 204,828 207,098 727 PROMOTIONAL MATERIALS 3,090 3,090 3,1.83 3,278 3,376 3,477 760 BOOKS PUBLICATIONS MEMBERSHIPS 9,779 9,161 9,436 9,720 10,012 10,313 782 707 BLANKET P 0 ELECTRICAL SUP 5,150 5,150 5,304 5,463 5,627 5,796 783 708 BLANKET P O PLUMBING SUPPL 5,150 5,150 5,304 5,463 5,627 5,796 795 INTERDEPMENTAL CHGES -POLICE 1 , 2,578 2,578 2,655 2,734 2,816 2,901 Wednesday, October 29, 1997 10:49:28 AM Page 18 of 26 City of Miami 5-Year Expenditure Estimates as of 10/8/97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget TOTAL OPERATING EXPENSES -VARIABLE 2,962,047 3,061,413 3,148,054 3,237,526 3,331,941 3,427,990 500 CAPITAL OUTLAY -VARIABLE 840 EQUIPMENT - NEW 343,850 341,750 341,750 341,750 341,750 341,750 850 EQUIPMENT - REPLACEMENT 13,500 13,500 13,500 13,500 13,500 13,500 880 CAPITAL LEASES 2,000 2,000 2,000 2,000 2,000 2,000 TOTAL CAPITAL OUTLAY -VARIABLE 359,350 357,250 357,250 357,250 357,250 357,250 600 GRANTS IN AID 930 AID TO PRIVATE ORGANIZATION 25,000 25,000 25,000 25,000 25,000 25,000 950 CONTRIBUTION TO GRAL FUND 25,143,617 27,022,552 28,079,182 36,516,768 37,742,078 38,907,206 951 CONTRIBUTION TO DEBT SERVICE 22,910,413 22,910,413 22,905,438 15,579,843 15,556,453 15,598,347 952 CONTRIBUTION TO CAP PROJECTS 3,347,236 3,347,236 3,347,236 3,347,236 3,347,236 3,347,236 996 BUDGET RESERVE 62,711 18,000 18,000 18,000 18,000 18,000 TOTAL GRANTS IN AID SPECIAL REVENUE FUND TOTAL 51,488,977 63,289,432 53,323,201 63,984,306 54,374,856 65,356,022 55,486,847 66,802,190 56,688,767 68,186,177 57,895,789 69,532,744 Wednesday, October 29, 1997 10:49:29 AM Page 19 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated .Budget. Projection Budget Budget Budget Budget Fund 20 DEBT SERVICE FUNDS 300 OPERATING EXPENSES -FIXED 280 PROFESSIONAL SERVICES - ACCT'G 4,635 4,635 4,774 4,917 5,065 5,217 287 ADVERTISING 7,502 7,502 7,727 7,959 8,198 8,444 533 POSTAGE 12,320 12,320 12,690 13,071. 13,463 13,867 601 PRINCIPAL REPAYMENT 22,596,397 22,596,397 24,166,145 15,896,989 16,554,659 16,838,400 602 INTEREST EXPENSE 25,136,663 25,136,663 23,826,545 21,388,333 20,539,901. 20,390,663 610 RENT OF EQUIPMENT - OUTSIDE 3,605 3,605 3,713 3,824 3,939 4,057 TOTAL OPERATING EXPENSES -FIXED 47,761,122 47,761.122 48,021,594 37,315,093 37,125,225 37,260,648 400 OPERATING EXPENSES -VARIABLE 340 OTHER CONTRACTUAL SERVICES - 0 92,391 92,391 95,163 98,018 100,959 103,988 510 COMMUNICATIONS SERV. TELEPH. 0 . 515 515 530 546 562 579 700 OFFICE SUPPLIES 2,060 2,060 2,122 2,186 2,252 2,320 TOTAL OPERATING EXPENSES -VARIABLE 94,966 94,966 97,815 100,750 103,773 106,887 Wednesday, October 29, 1997 10:49:30 AM Page 20 of 26 City of Miami 5-Year Expenditure Estimates as of 10/8/97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated' Estimated Estimated Budget Projection Budget Budget Budget Budget 600 TRANSFERS TO OTHER FUNDS J 950 CONTRIBUTION TO GRAL FUND 5,102,622 5,102,622 5,104,950 5,104,950 5,104,950 5,102,622 TOTAL TRANSFERS TO OTHER FUNDS DEBT SERVICE FUNDS TOTAL 5,102,622 5,102,622 52,958,710 52,958,710 5,104,950 5,104,950 5,104,950 5,102,622 53,224,359 42,520,793 42,333,948 42,470,157 Wednesday, October 29, 1997 10:49:30 AM Page 21 of 26 City of Miami 5-Year Expenditure Estimates as of 10l8l97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget Fund 60 TRUST & AGENCY FUNDS 100 SALARIES & WAGES -FIXED 010 SALARIES - UNCLASSIFIED 231,075 231,075 231,075 231,075 231,075 231,075 TOTAL SALARIES & WAGES -FIXED 231.075 231,075 231,075 231,075 231,075 231,075 200 FRINGE BENEFITS -FIXED 100 SOCIAL SECURITY CONTRIB 16,927 16,927 16,927 16,927 16,927 16,927 110 RETIREMENT CONTRIB. 56,785 56,785 56,785 56,785 56,785 56,785 130 GROUP INSURANCE CONTRIB. 33,065 33,065 33,065 33,065 33,065 33,065 . 150 WORKERS COMPENSATION 4,341 4,341 4,341 4,341 4,341 4,341 TOTAL FRINGE BENEFITS -FIXED 111,118 111,118 11.1,118 111,118 111,118 111,118 Wednesday, October 29, 1997 10:49:31 AM Page 22 of 26 City of Miami 5-Year Expenditure Estimates as of 10/8/97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 300 OPERATING EXPENSES -FIXED 280 PROFESSIONAL SERVICES - ACCT'G 7,210 7,210 7,426 7,649 7,878 8,1'14 287 ADVERTISING 7,210 7,210 7,426 7,649 7,878 8,114 310 COURT COSTS AND FEES 772 772 795 819 844 869 420 TRAVEL AND PER DIEM - OTHER 6,180 6,180 6,365 6,556 6,753 6,956 533 POSTAGE 1,545 1,545 1,591 1,639 1,688 1,739 540 UTILITY SERVICES - ELECTRICITY 5,150 5,150 5,304 5,463 5,627 5,796 560 UTILITY SERVICES - WATER 2,060 2,060 2,122 2,186 2,252 2,320 610 RENT OF EQUIPMENT - OUTSIDE 7,725 7,725 7,957 8,196 8,442 8,695 620 RENT BUILDINGS 72,512 72,512 74,687 76,928 79,236 81,613 640 INSURANCE - PROPERTY 1,526 1,526 1,572 1,619 1,668 1,718 773 INTERNAL SERV CHGES PRINT SHOP 137 137 141 145 149 153 TOTAL OPERATING EXPENSES -FIXED 112,027 112,027 115,386 118,849 122,415 126,087 Wednesday, October 29, 1997 10:49:32 AM Page 23 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 Organization FY 1998 FY 1998 Revised Year End Budget Projection FY 1999 Estimated Budget FY 2000 Estimated Budget FY 2001 Estimated Budget FY 2002 Estimated Budget 400 OPERATING EXPENSES -VARIABLE 220 PROFESSIONAL SERVICES - APPRAI 15,450 15,450 15,914 16,391 16,883 17,389 250 PROFESSIONAL SERVICES - LEGAL 77,250 77,250 79,568 81,955 84,414 86,946 270 PROFESSIONAL SERVICES - OTHER 133,344 30,936 23,080 14,989 6,653 0 475 ENTERTAINMENT 3,090 3,090 3,183 3,278 3,376- 3,477 510 COMMUNICATIONS SERV. TELEPH. O 3,605 3,605 3,713 3,824 3,939 4,057 670 REPAIR/MAINTENANCE - OUTSIDE 25,750 25,750 26,522 27,318 28,138 28,982 690 PROMOTIONAL ACTIVITIES 15,450 15,450 15,914 16,391 16,883 15,460 700 OFFICE SUPPLIES 3,090 3,090 3,183 3,278 3,376 3,477 722 MISCELLANEOUS SUPPLIES 3,090 3,090 3,183 3,278 3,376 3,477 760 BOOKS PUBLICATIONS MEMBERSHIPS 3,069 3,069 3,161 3,256 3,354 3,455 TOTAL OPERATING EXPENSES -VARIABLE 500 CAPITAL OUTLAY -VARIABLE 840 EQUIPMENT - NEW 283,188 180,780 10,000 0 177,421 0 173,958 0 170,392 0 166,720 0 841 OFFICE FURNITURE - NEW 15,000 0 0 0 0 0 TOTAL CAPITAL OUTLAY -VARIABLE 25,000 0 0 0 0 0 Wednesday, October 29, 1997 10:49:32 AM Page 24 of 26 City of Miami 5-Year Expenditure Estimates by Fund and Minor Object as of 10/8/97 FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget 600 TRANSFERS TO OTHER FUNDS 996 BUDGET RESERVE 1,666,731 1,257,303 1,257,303 1,347,303 1,437,303 1,527,M3 TOTAL TRANSFERS TO OTHER FUNDS 1,666,731 1,257,303 1,257,303 1,347,303 1,437,303 1,527,303 TRUST BAGENCY FUNDS TOTAL .2,429,139 1,892,303 1,892,303 1,982,303 2,072,303 2,162,303 Wednesday, October 29, 1997 10:49:33 AM Page 25 of 26 City of Miami 5-Year Expenditure Estimates as of 10/8/97 by Fund and Minor Object FY 1998 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 Organization Revised Year End Estimated Estimated Estimated Estimated Budget Projection Budget Budget Budget Budget GRAND TOTAL 403,586,156 414,632,765 404,405,986 405,355,649 409,720,205 413,267,671 Wednesday, October 29, 1997 10:49:33 AM Page 26 of 26