HomeMy WebLinkAboutR-97-0912J-97-913
12/17/97
RESOLUTION NO. 9 a 912
A RESOLUTION OF THE MIAMI CITY COMMISSION
ACKNOWLEDGING THE TIME FRAME ESTABLISHED IN THE
INTERGOVERNMENTAL COOPERATION AGREEMENT BETWEEN THE
STATE OF FLORIDA, CITY OF MIAMI, AND THE FINANCIAL
EMERGENCY OVERSIGHT BOARD FOR ACCEPTANCE OR
REJECTION OF THE CITY COMMISSION APPROVED CITY OF
MIAMI FIVE-YEAR PLAN.
BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA:
Section 1. The Miami City Commission hereby acknowledges the time frame established
in the Intergovernmental Cooperation Agreement between the State of Florida, City of Miami, and
the Financial Emergency Oversight Board for acceptance or rejection of the City Commission
approved City of Miami Five -Year Plan.
Section 2. This Resolution shall become ective immediately upon its adoption.
PASSED AND ADOPTED this 1.8 t'h day of �1Q"'1997.
(the continuation of December 9, 19CXAVIE-
eet ng
L. SUAREZ, MAYOR
APPROVED AS TO FORM AND CORRECTNESS:
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CM COVMSSION.
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DEC 9 997
Resolurion No.
9 .12
F / N A L
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CITY OF MIAMI
REVISED FIVE YEAR
F I NANCIAL PLAN
' D E C E M B E R 1 8, 1 9 9 7
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CITY OF MIAMI
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TABLE OF CONTENTS
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CHAPTER 1
rEXECUTIVE
SUMMARY1■■■■■■■■■■■■■■■■■■■■■.■■■■■■■■■■■■■■■......■................................. 1
CHAPTER II
Management Direction........................................................................ 4
CoreInitiatives..................................................................................................................4
CHAPTER III
MANAGEMENTAND PRODUCTIVITY IN .......................................................... 7
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Overview............................................................................................:.............................. 7
Strategic Management......................................................................................................7
FinancialManagement....................................................................................................15
Capital Assets Planning and Management......................................................................23
.Human Resources and Employee Benefits........................................:........................:...34
InformationTechnology.................................................................................................37
rImplementation
Schedule - Management and Productivity Initiatives ...........................38
I. CHAPTER IV
FINANCIALPLAN..................................................................................... 47
Five Year Plan Fiscal Years 1998 - 2002.......................................................................47
Assumptions Used For The Five Year Plan (FY1998 - 2002)..............:........................48
.Exhibit I. Revenues By Character And Expenditures By Major Object:
Five Year Estimates.....................................................................................58
Exhibit H. Cash Flow Analysis For Fiscal Years 1998 And 1999..............................65
Exhibit III: Recurring Vs. Non -Recurring Analysis......................................................67
CHAPTER V
CITYWORKFORCE................................................................................... 70
Overview. .70
Description of the Workforce ...............................................................................71
r Organizational Changes......................................................:...........................................75
Workforce Expenditures.................................................................................................78
FringeBenefits................................................................................................................79
TimeOff..........................................................................................................................80
' Overtime.........................................................................................................................81
Summary of Current City Compensation Package.........................................................82
rMajor Initiatives..............................................................................................................85
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CITY OF M I A M I
CHAPTER VI
ECONOMICDEVELOPMENT........................................................................ 86
Overview.........................................................................................................................86
Attracting/Expanding Businesses...................................................................................86
Regulating Business Activities........................................................................................87
LandAnd Building Use.................................................................................................87
Major Economic Engines and Highlights of the Greater Miami Economy....................87
Government Entities Involved in Economic Development............................................89
Other Entities Involved in Economic Development......................................................92
TheChallenges................................................................................................................93
Conclusion.........................................................................................................:. .....93
MajorInitiatives..............................................................................................................94
CHAPTER VII
CAPITAL PLANNING ................uu............................................................■ 95
Overview.........................................................................................................................95
LegalFramework............................................................................................................95
The Capital Improvements Plan and Capital Budget Process........................................96
Capital Improvements Plan .............................................................................................98
CapitalBudget................................................................................................................99
Linking the CIP and Capital Budget ..................................................
Challenges for Capital Planning in the City's Current Fiscal Environment.................100
Guidelines for Capital Planning Process.......................................................................103
CHAPTER Vill
DEBTMANAGEMENT.............................................................................. 104
Overview of Powers and Provisions........:....................................................................104
Description of Current Indebtedness ....................... :..................................................... 106
Typesof Debt ....................................... .......................................................................... 108
Outstanding General Obligation Debt..........................................................................109
Future Debt Issuance and Credit Market Considerations.............................................111
MajorInitiatives............................................................................................................112
CHAPTER IX
CASH MANAGEMENT .....................................uu..................................... 113
Overview.......................................................................................................................113
Cash Management Operations ............................ ........................................................... 113
InvestmentProcess.........................................................................................:..............115
Investment Transaction Authority ...................................... :......................................... 116
Maturity and Liquidity Requirements...........................................................................116
Permitted/Prohibited Investments..................:..............................................................116
HistoricalPerspective..............................:............:.......................................................118
MajorInitiatives............................................................................................................119
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0 C IT Y OF M I AM I
APPENDICES
Recommendations - Index ....................................... ..................................... A
Recommendations - Timelines and Costing................................................B
Recommendations - Depatrmental Comments.............................................0
5-Year Estimates: By Fund and Department ................................. ............... D
' 5-Year Estimates: Revenues by Fund, Character and Minor Object ............ E
5-Year Estimates: Revenues by Fund and Minor Object .............................. F
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MIAMI • TABLE OF CONTENT $ 3
CHAPTER
EXECUTIVE
SUMMARY
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EXECUTIVE SUMMARY
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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 Mayor of 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 originally adopted by the City Commission on October 28, 1997
and this, the Mayor's revision of the Plan, was adopted by the City Commission on
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.
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To address the operational concerns facing the City, 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 r
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 the date of the original draft of this
report, all of their findings and recommendations have been incorporated in this amended
Plan. 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 Mayor, the 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
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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
r contingencies, working capital and
other business needs, should be
established and maintained.
• The City should not undertake any
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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.
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CHAPTER 11
MANAGEMENT
DIRECTION
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MANAGEMENT DIRECTION
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INITIAL DIRECTION
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The Mayor and the Administration have established those initiatives
that they believe will set the stage for the direction of the City into the
future. These initiatives are basic to the ongoing improvement of the City
as a functional operating entity for the community. These issues, which are
addressed in the 613 recommendations in the various reports, are the core
initiatives to establish the direction for the City into the future.
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CORE INITIATIVES
The core initiatives to provide the initial policy direction for the City
number twelve. The list is not all inclusive but is intended to speed the
process of recovery in the City. Below are these initiatives and an
explanation of the initiative.
rImplement Strategic Planning - The Mayor, City Commission and
the Administration need to establish long range goals for the City. Due to
the nature of the fiscal emergency now in place, a "crisis management"
style is the current norm for the City. In order to flourish and prosper, a
more long term direction need to be exacted. For the initial plan, a
consultant will need to be employed to facilitate this effort.
Establish Benchmarking and Performance Measures - When the
Strategic Plan is in place, the effort to benchmark the current level of
service must be performed to provide a basis on which to measure. The
performance measurers will provide a objective standard onto which
movement towards compliance with the Strategic Plan can be measured.
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Undertake a Needs Assessment for Technology - The City has
moved rapidly into technology without a policy direction on the ultimate
goal. As technology can both be extremely expensive but also produce
immense savings to the City, policy direction must be established in this
area. Prior to the establishment of a policy, the needs of the various
Departments for computers, radio and communications (both data and
voice) must be documented. The Information Technology staff along with
a consultant need to undertake this effort.
Fill Executive Positions The. City has a number of executive
management positions that must be filled in order to provide the leadership
for the Administration. Some of these positions, such as two Assistant
City Managers, Internal Auditor and Finance Director, require specific
skills and a recruitment effort needs to begin.
Establish a Capital Assets Management Policy - The City needs to
better manage its capital assets. These include its lands, buildings,
equipment and fleet. The City has not provided the necessary funds for
proper maintenance and replacement of these assets in the past.
Additionally, the policy must. address the criteria to retain or sell various
assets. The responsibility for the maintenance of the various assets needs
to also be addressed in the policy.
Link the Operating and Capital Budgets - The City has not linked
the operating effects of capital initiatives into the operating budget. This
allows for the construction or purchase of Capital Assets with the
provision of the necessary funds in the operating budget to operate and
maintain the asset. Integrating these two budgets will insure that the
coordination exists to properly operate and maintain the City's assets.
Adopt Best Practices - The City needs to survey local governments
and the private sector nationwide to find those practices which best serve
the needs of the citizens and customers. Once these practices are found,
the City needs to establish a policy to implement these practices. This
ongoing effort will continue .indefinitely.
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Create Mid -Management Core - The City must hire ' additional and
train existing mid -management for proper management and succession
planning within the Administration. Over half of the existing senior
management personnel in the City will be eligible for retirement within
two years. This makes it imperative to create a cadre of managers to
continue the progress of the City.
Convene Charter Review Committee - The Charter of the City of
Miami is filled with outdated and obsolete sections which need to be
amended or removed. To properly review this basic operating document of
the City, a Committee containing members of the Law Department, the
Mayor, the City Commission, the Administration and the public needs to
be convened and a proposal placed on the ballot.
Establish Policy and Goals for Labor Negotiations - The four labor
contracts of the various city employee bargaining units are subject to
negotiation in the next twelve months. The Administration needs policy
direction from the Mayor and City Commission on the policy and goals
for these negotiations. Since personnel costs comprise the largest cost of
the City, the implications of these negotiations cannot be minimized.
Reconstitute the Audit Committee - The Audit Committee needs to
take a much more active role in the audit process of the City, both internal
and external. This Committee should serve as the contact point for the
external accountants and the City. They should meet with the auditors on a
regular basis to oversee the process and to provide and receive input on the
financial review of the City.
Establish the Fire/Rescue Fee - The fire/rescue fee is the centerpiece
of the balanced budget process of the City. This fee is vitally necessary to
provide the ongoing revenue stream to operate the City into the next
century. The ordinances and hearings need to begin as soon as possible so
that this revenue can be received this fiscal year.
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CHAPTER III
MANAGEMENT &
PRODUCTIVITY
ISSUES
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°1CHAPTER III
...''°0. MANAGEMENT AND
yO�CO.F1.Pti0
P R O D U CT IVITY I N ITIAT IVES
I 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:
t• 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 incorporated in a
series of management and productivity initiatives based on their 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 and the Management
' Letter from the City's auditors on the September 30, 1996 financial statements.
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.
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C H A P T E R
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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 and Director of Internal Audit.
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.
1. 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.
Timeline: This initiative will be complete by July, 1998.
Cost: The Cost associated with this initiative is included in the Plan's budget
for each fiscal year. I
2. 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.
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MIAMI • MANAGEMENT AND
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Timeline: This will be complete by October, 1998.
Cost: The cost of this initiative is included in the Plan Budget.
'Revise
3. Initiative: the budget preparation and tracking process to reflect the
organizational changes resulting from the task force recommendations.
Benefit: Helps to track and modify operations for the most efficient allocation
of resources.
Timeline: This is a process which will be continuous throughout the Plan.
Cost: This review process has no direct cost and is contingent on future
organizational changes.
11. Incorporate Benchmarking 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.
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.
Timeline: This will be completed this fiscal year and incorporated into the Fiscal
1999 Budget.
Cost: The cost for this training is included in the $300,000 for training
incorporated in the Plan.
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C H A P T E R
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111. (deed 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.
Initiative: Identify and fill critical middle management positions.
Benefit: Improves the effectiveness and efficiency of the organization.
Timeline: The positions anticipated to be filled in the $1,000,000 allocated in
the Fiscal 1998 Budget will be filled by July, 1998.
Cost: The costs are included in the 1998 budget incorporated in the Plan.
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
grants, and implementation of new programs, procedures handicap the City's ability to
maximize the return on its assets.
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.
Timeline: This initiative will begin immediately and the process will be ongoing
throughout the duration of the Plan.
Cost: There is no direct cost to this initiative, only staff time.
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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.
Timeline: These recommendations will be completed by April, 1998.
Cost: There is no direct cost to this initiative, only staff time.
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.
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.
Timeline: This process will begin approximately in April, 1998 and take six
months.
Cost: There is no direct cost associated with this initiative.
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.
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C H A P T E R
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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.
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.
Timeline: This process .will begin, after training, by July, 1998 and continue
throughout the duration of this Plan.
Cost: No direct cost. ..
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 are.derived as much from demonstrating to the community and
the State the ability to execute such an initiative as well as by immediately improving the
efficiency of the organization and instilling in City staff a vision of where the City is
headed.
1. 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.
Timeline: This process will begin upon the employment of the facilitator and will
be complete by the end of this fiscal year.
Cost: This cost is included in the training funds allocated in the 1998
Budget.
2. Initiative: Produce progress reports on the initial strategic plan for the City of
Miami and complete the plan.
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Benefit: Improve efficiency and instill confidence in employees and
constituents.
Timeline: The timeline for this initiative is the same as above.
Cost: No additional cost.
Vill. 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
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.
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.
Timeline: The incorporation of the strategic planning process will happen in the
Fiscal 1999 Budget.
Cost: No direct cost associated with this initiative.
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
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MIAMI • MANAGEMENT AND
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Authority need to better coordinate with private development groups such as the Beacon
Council and the Greater Miami Chamber of Commerce.
1. 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.
Timeline: This will be effective by the end of this fiscal year and continue for the
remainder of the Plan.
Cost: No direct cost.
2. 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.
Timeline: This will be completed by July, 1998.
Cost: No direct cost.
3. Initiative: Focus economic development efforts on retaining and expanding local
businesses.
Benefit: Optimize use of resources.
Timeline: This effort has begun and will continue throughout the Plan.
Cost: No direct cost.
4. Initiative: Develop public/private partnership programs which emphasize
workforce development.
Benefit: Streamline economic development efforts and optimize use of
resources.
Timeline: This effort is underway and will continue throughout the Plan.
Cost: No direct cost.
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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.
Initiative: All specifically identified accounting positions will be announced and
filled.
Benefit: Improves the efficiency and effectiveness of the Finance Department.
Timeline: These positions will be filled by July, 1998.
Cost: The personnel costs are included in the 1998 Fiscal Budget.
11. Employee Training
The City does not have a formal training program to keep the accounting staff abreast
of current developments in governmental accounting.
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.
Timeline: This training has begun and will be complete by July, 1998.
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Cost: This cost is included in the Management Recovery dollars in 1998.
Ill. 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.
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.
Timeline: This will be accomplished by July, 1998.
Cost: No direct cost.
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.
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.
Timeline: To be completed by April, 1998.
Cost: No direct cost.
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.
Initiative: The City will centralize grants administration as a part of the
continuing reorganization of the City.
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Benefit: Improves efficiency of grants administration.
Timeline: This has been accomplished.
Cost: No direct cost.
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.
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.
Timeline: This is an ongoing effort which will begin in January, 1998 and
continue indefinitely.
Cost: No direct cost.
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
be highlighted:
should
• 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.
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1. Initiative: Submit a comprehensive Debt Management Policy for adoption by the
City Commission.
Benefit: Improve financial integrity.
Timeline: This initiative will be done in the first quarter of 1998.
Cost: No direct cost.
2. 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.
Timeline: The City will work toward this goal and maintain it throughout the
Plan.
Cost: No direct cost.
3. Initiative: The City should look for. escrow restructuring opportunities to
potentially enhance its cash position
Benefit: Improve financial integrity.
Timeline: This is a continuous process.
Cost: This initiative has no net cost.
V111. Cash Management
1. Initiative: Develop a system for tracking funds in pooled cash.
Benefit: Improve financial 4ntegrity.
Timeline: This will be complete by July, 1998.
Cost: No direct cost.
2. Initiative: Modify the existing monthly, budget -to -actual report (BE 600) in order
to improve its usefulness as a managerial report.
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Benefit: Improve financial integrity.
Timeline: This will be completed by January, 1998.
Cost: No direct cost.
3. Initiative: Establish an Investment Procedures and Internal Controls manual.
Benefit: Improve financial integrity.
Timeline: This will be completed this fiscal year.
Cost: No direct cost.
4. Initiative: Investigate purchasing in-house software to perform portfolio
management statistical calculations.
Benefit: Improve financial integrity.
Timeline: This will be done by April, 1998.
Cost: No direct cost.
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.
1. Initiative: Complete staffing of Internal Audit Department.
Benefit: Improves organizational efficiency.
Timeline: This will be completed by July, 1998.
Cost: Personnel costs included in Management Recovery dollars.
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2. Initiative: Prepare and approve an annual audit plan.
Benefit: Improves organizational accountability.
.Cost: No direct cost.
3. 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.
Timeline: This initiative will be complete by July, 1998.
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
Timeline: Charter package to be complete by April, 1998.
Cost: No direct cost.
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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.
Initiative: Develop a purchasing procedures manual which incorporates the
Procurement Assessment Team recommendations for streamlining
small dollar purchases.
Benefit: Improves organizational efficiency.
Timeline: Scheduled to be complete by July, 1998.
Cost: No direct cost.
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.
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.
Timeline: Training to begin in January, 1998 and be completed by October, 1998.
Cost: Training included in Management Recovery dollars.
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.
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Benefit: Improves organizational efficiency.
Timeline: Scheduled to be -complete by September 30, 1998.
Cost: No direct cost.
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.
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.
Timeline: This has begun and implementation will be completed by October,
1998.
Cost: No direct cost.
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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.
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 Improvements Projects should be swept out of
departmental budgets into 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 Budg g Y et and Management Analysis should
provide the greatest possible accountability in its management of the CIP.
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• CIP practices and procedures need to be documented in a manual to allow for
P
the replacement of key personnel without loss of knowledge for the City. '
• 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.
1. '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.
Timeline: This is begin in January, 1998.
a six month project to
Cost: No direct cost.
2. 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.
Timeline: To be completed during the first quarter of 1998.
Cost: No direct cost.
3. 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.
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Timeline: This initiative will begin toward the end of this fiscal year and
continue throughout the Plan.
Cost: No direct cost.
4. 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.
Timeline: This process is continuous over the Plan life.
Cost: No direct cost.
5. 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.
Timeline: This initiative will be complete by the end if the fiscal year.
Cost: No direct cost.
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.
Timeline: This will be completed by January, 1998.
Cost: No direct cost.
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C. Monitor Funding of Capital Projects
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.
Timeline: This will be completed by July, 1998.
Cost: No direct cost.
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);
:• 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);
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• 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
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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
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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.
h property is established maintenance of roe that
Once the condition of the City's p op rty property rty
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 their fees for use and services
that they provide. They should, to the extent possible and desirable, raise prices to mitigate
their draw on the City's General Fund. This could be effected perhaps by raising fees to the
' level at which these agencies are responsible for their own operations, preventive
maintenance, and major improvement projects.
1. 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.
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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.
Timeline: This will be completed by July, 1998.
Cost: No direct cost.
2. 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.
Timeline: This will begin in April, 1998 and continue throughout the Plan.
Cost: No direct cost.
3. 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.
Timeline: This will begin in April, 1998 and continue throughout the Plan.
Cost: No direct cost.
4. 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.
Timeline; . This will be completed in the second quarter 1998.
Cost: No direct cost.
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5. 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.
Timeline: This will begin in April, 1998 and continue throughout the Plan.
Cost: No direct cost.
IB. 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.
1. 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.
Timeline:
This has begun and will continue throughout the Plan.
Cost:
No direct cost.
'
2. 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.
Timeline:
This will be complete by the end of the fiscal year.
Cost:
No direct cost.
3. 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.
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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.
Timeline: This will be complete by the end of the fiscal year.
Cost: Cost will be included in the property budget.
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.
4. 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.
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.
Timeline: This will begin by April, 1998 and continue throughout the Plan.
Cost: No direct cost.
5. 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.
Timeline: This will begin in April, 1998 and continue through fiscal 1999.
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Cost: No direct cost.
6. 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 leases.
Timeline: This is a continuous process which will continue throughout the Plan. .
Cost: No direct cost.
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.
Timeline: This has begun and will be done continuously.
Cost: No direct cost.
D. Foreclosure
The City should foreclose on property only after considering its potential for other uses.
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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.
Timeline: This has begun and will be done continuously.
Cost: No direct cost.
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.
1. 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. '
Timeline: Recommendations will be completed by the end of this fiscal year.
Cost: No direct cost.
2. Initiative: Recommend changes to the Charter Review Committee for the City to r
accept a bidif over a specific percentage of established market value
without referendum, even if the minimum of three bids were not
received.
32
M I A M 1 C MANAGEMENT AND
P R 0 D U C T I V I T Y I N I T I A T I V E S
1
1
1
1
1
1
1
1
1
1
1
1
1
C H A P T E R
111
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.
Timeline: Recommendations will be completed by the end of this fiscal year.
Cost: No direct cost.
3. Initiative: Establish an indexed minimum standard for leases and other contracts
that must go before the City Commission for approval.
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.
Timeline: Recommendations will be completed by the end of this fiscal year.
Cost: No direct cost.
MIAMI • MANAGEMENT AND
P R 0 D U C T IV IT Y IN IT I AT IV E S
33
HUMAN RESOURCES AND EMPLOYEE BENEFITS
In concert with the initiative to begin the strategic planningProcess, 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.
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.
Timeline: This will be completed by July, 1998. r
Cost: No direct cost. '
II. 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.
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.
Timeline: This initiative will be completed in fiscal 1999.
Cost: No direct cost.
34 r
MIAMI 0 MANAGEMENT AND
PRODUCTIVITY INITIATIVES
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.
1. Initiative: The Human Resources Department will draft a work plan and
timetable to guide the review and evaluation of the Civil Service
Rules.
IBenefit: Improves efficiency.
Timeline: This will be completed by the end of this fiscal year.
Cost: No direct cost.
2. 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.
Timeline: This will be complete by the.end of the fiscal year.
' Cost: No direct cost.
3. 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.
Timeline: This will be implemented b July, 1998.
P YuY
! Cost: No direct cost.
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.
! 35
MIAMI • MANAGEMENT AND
PRODUCTIVITY INITIATIVES
C H 7AP 7ER�
1. 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.
Timeline: This initiative will begin in January and be completed by July, 1998.
Cost: No direct cost.
2. Initiative: Improve the management and tracking of time off.
Benefit: Improves efficiency.
Timeline: This will implemented by July, 1998.
Cost: No direct cost.
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 are a 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.
1. Initiative: Retain a benefits consultant to assist in structuring, evaluating, and
procuring a coordinated benefits package for employees.
Benefit: Cost savings and improved efficiency.
Timeline: This has been completed.
Cost: No cost to the City.
2. Initiative: Continue to investigate cost-effective and quality health care
alternatives.
Benefit: Cost savings and improved efficiency.
Timeline: This is a continuous process which will extend throughout the Plan.
Cost: No direct cost.
36
M IAM 1 • MANAGEMENT AND
P R O D U C T IV IT Y IN IT I AT IV E S
1
0
IJ
1
1
1
1
f,
1
C H A P T E R
111
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.
1. Initiative: Engage an experienced consultant to assist City staff and volunteer
experts in drafting a strategic plan for information technology.
Benefit: Improves efficiency.
Timeline: The consultant will be employed by April, 1998.
Cost: Included in the consulting dollars included in the Plan.
2. 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.
Timeline: This plan will be completed by July, 1998.
Cost: No direct cost.
37
11
MIAMI • MANAGEMENT AND
P R 0 D U C T IV IT Y IN IT I AT IV E S
City of Miami
Implementation Schedule - Management and Productivity Initiatives
APPROXIMATE
TIME TO IMPLEMENTATION
INITIATIVE I Q4 97
Q1 98 Q2 98 1 Q3 98
FY1999TFY2000IFY2001IFY200E FY2003
OVERVIEW
5!�
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.
C7
11
MIAMI
APPROXIMATE
TIME TO
IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98
Q3 98
FY1999
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 39
1]
�J
APPROXIMATE
INITIATIVE
Q4 97
Q1.98
Q2 98
FY1999
FY2000
FY2001 FY2002
FY2003
Q3 98
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
X
X
X
X
X
X
X
which emphasize workforce development.
FINANCIAL 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.
•
MIAMI • MANAGEMENT AND
PRODUCTIVITY INITIATIVES 40
M® M M i® M M M M= M M®® M® M M
APPROXIMATE
TIME TO
IMPLEMENTATION
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
41
•
0
APPROXIMATEE
TIME TO
IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98
Q3 98
FYI999
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.
AL' #N�aEMENT .MI
IT ASSETS PLANNING AN
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.
•
•
M I AM I • MANAGEMENT AND
PRODUCTIVITY INITIATIVES 42
APPROXIMATE
TIME TO
IMPLEMENTATION
INITIATIVE
04 97
Q1 98
Q2 98
Q3 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.
MIAMI • MANAGEMENT AND
PRODUCTIVITY INITIATIVES 43
0
L�
APPROXIMATE►
IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
FY2000
FY2001
FY2002
FY2003
Q2 98
Q3 98
FYI 999
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.
11
MIAMI
M M M � = M M ® M = = ® ® � � ® M M
APPROXIMATEp
IMPLEMENTATION
INITIATIVE Q4 97 01 98
Q2 98 Q3 98
FYI 999
FY2000 FY2001
FY2002 FY2003
Charter Revisions - Establish an indexed minimum standard for
X
leases and other contracts that must go before the City
Commission for approval.
HUMAN iRESOURCE"ND EMPLQYEE BENEFITS
Training - The Human Resources Department will undertake an
X
X
assessment of Citywide training needs and prepare a draft report
to serve as the basis for a preliminary training budget.
Two - tier. Wage System - The City should conduct a market rate
X
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.
Succession Planning - The Human Resources Department will
X
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
X
work plan and timetable to guide the review and evaluation of
the Civil Service Rules.
Workers' Compensation - Improve the management and tracking
X
X
of time off.
Workers' Compensation - Draft and submit a request for proposal
X
X
("RFP") for a third party claims administrator to administer the
workers' compensation claims function.
Employee Benefits - Retain a benefits consultant to assist in
X
structuring, evaluating, and procuring a coordinated benefits
package for employees.
Employee Benefits - Continue to investigate cost effective and
X
X
X
X
X
X
X
X
X
quality healthcare alternatives.
MIAMI ! MANAGEMENT AND
PRODUCTIVITY INITIATIVES
45
•
0
r 1
�J
11
MIAMI
• MANAGEMENT AND
PRODUCTIVITY INITIATIVES 46
CHAPTER IV
FINANCIAL
PLAN
t i
OyOFCO+FyOp,�e
1
1
1
0,
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.
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 planaddresses 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 tecovery 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").
1
MIAMI • FINANCIAL PLAN 47
C H A P T E R I V
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
14
13
12
N
11
m
9.81
10
vp
IN
9.23
8
86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02
Fiscal Year
13.06
48 1
MIAMI • F I N A N C I A L PLAN
C
1
1
1
1
1
1
1
1
1
1
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
= 35
31
27
Public Service Taxes
38.67 39.68
---------------------------------------------- ----------------
34 84,10
35 77 36:72
----------- ---------- -- -- 32 57 32 69 33� j n
3124
�g
28.28 28:72 29.36 r
8.00%
6.00%
t 4.00%
2.00%
0.00%
21
20
�_ 19
18
17
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%
2.29%
2 67°Io
2.65°Io
2.63'/0
2.61%
2.60%
1 50%
F,q0
w
gyp.
37%
91 92 93 94 95 96 97 98 99 00 01 02
Fiscal Year
Florida Power & Light Company Franchise Fees
20.18
20.37
19 81
20 00
-------
---------
---------
19.26
----
18.99
------
18 92
-
19.25
19.44
49:62--
P'�
a
---------
---------
z4 _
3
_ _-_
��.�
n
^�S
✓C
�..
F i
17.89
z
y
1775
_
91 92 93 94 95 96 97 98 99 00 01 02
Fiscal Year
49
IMIAMI 9 FINANCIAL PLAN
CHA.PTER 1 V
Business Licenses: I
$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 eliminated
This reduces recurring revenues by $2,006,532 annually from the original projections.
Fire Rescue Assessment:
The City of Miami entered into a professional services agreement with Government
Services group, Inc. ("CSG"), David M. Griffith & 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
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
50
MIAMI 9 FINANCIAL PLAN
P
C H A P T E R IV
I
L
1
1
I
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
(FYI998), 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 FY1997 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
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".
51
1
MIAMI • FINANCIAL PLAN
CHAPTER I V`
The privatization of the parking system would enable the City to access approximately
$8 million in reserves 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
Other Land Sales:
Municipal Justice Site 5,710,000
FEC Tract 34,000,000
Total property sales $45,515,000
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
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 RFP 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.
52
MIAMI a F I N A N C I A L PLAN
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:
• Sal and fringes were projected using the Ci 's Salary Projection System. This
�'Y g P J g tY
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.
• 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.
53
MIAMI • FINANCIAL PLAN
CHAPTER 11/
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 middlemanagement 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.
54
MIAMI • FINANCIAL PLAN
IIncreased 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.
r
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
Claims (18.0%) (40.7%) (39.0%)
Payment (20.4%) (48.8%) (26.0%)
Police Off. Liability
(6.9%)
(87.6%)
55
MIAMI • FINANCIAL PLAN
CHAPTER 1V_
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 FY1996 to 144 in FYI 997.
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 ($150,000)
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.
56
MIAMI • FINANCIAL PLAN
C HAP T E R IV
1
I
U
1
k
1
;l
1
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.
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 staffs efforts to work the liability
from the front-end (i.e. by challenging cases and settling claims in an efficient manner).
57
1
MIAMI • FINANCIAL PLAN
C H A P T E R I V
1
1
EXHIBIT 1
Revenues By Character And
Expenditures By Major Object:
Five Year Estimates
58
MIAMI • FINANCIAL PLAN
® �w � w w I. w� � w � � w �, � w wl ■�I w w
CITY OF MIAMI
SUMMARY OF 5-YEAR ESTIMATES
FY'1998
FY'1998
FY'1999
FY'2000
FY'2001
FY'2002
Adopted
Year End
Estimated
Estimated
Estimated
Estimated
Description Budget
Projection
Budget
Budget
Budget
Budget
Total Revenues $ 408,626,062
$ 414,825,503 $
404,784,263 $
405,590,097 $
409,967,823 $
443,340,113
Total Expenditures 403,586,156
414,632,765
404,405,986
405,355,649
409,720,205
413,267,571
Sub -Total $ 5,039,906
$ 192,738 $
378,277 $
234,448 $
237,618 $
72,642
Budast Solutions:
Sale of F.E.0 Tract
$ - $
34,000,000
$
$ -
$ -
$ -
Sale of Municipal Justice Site
-
6,700,000
-
-
-
Solid Waste Fees
-
(2,006,532)
(2,006,632)
(2,006,632)
(2,006,532)
(2,006,532)
Operational Efficiencies
2,006,532
2,006,632
2,006,532
2,006,532
2,006,532
Management & Productivity Initatives
-
(2,760,000)
(3,395,000)
(2,770,000)
(2,410,000)
(2,410,000)
Reserves for Strategic Investments
-
(26,955,000)
-
-
-
Sub -Total
$ - $
10,985,000
$ (3,395,000)
$ (2,770,000)
$ (2,410,000)
$ (2,410,000)
Carryover Balance
$ - $
-
$ 10,986,000
$ 7,690,000
$ 4,820,000
$ 2,410,000
Sub -Total
$ - $
10,985,000
$ 7,690,000
$ 4,820,000
$ 2,410,000
$ -
Total Surplus/(Deficit)
$ 5,039,906 $
11,177,738
$ 7,968,277
$ 6,054,448
$ 2,647,619
$ 72,542
is
59
CITY OF MIAMI
5-YEAR ESTIMATES
As OF: 10/8/97
REVENUES BY CHAR / EXPENDITURES BY MAJOR
AS OF: 10/8/97
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
Fund 01 GENERAL FUND
Revenues
01 TAXES
02 LICENSES AND PERMITS
03 INTERGOVERNMENTAL REVENUE
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
12,265,539,
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
295,837,353
284,311,579
294,284,811
297,365,395
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
75,7081,185
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
295,797,446
283,933,302
294,050,363
297,127,777
299,102,367
289,948,781
296,837,353.
284,311,579
294,284,811
297,365,395
299,174,908
284,908,875
295,797,446
283,933,302
294,050,363
297,127,777
299,102,367
•
MIAMI • FINANCIAL PLAN
•1
m i i i i i i i i i i i m 'i r i i i i
5,039,906 39,906 378,277 234,448 237,618 72,541
MIAMI • FINANCIAL PLAN 61
Fund 10 SPECIAL REVENUE FUND
Revenues
01 TAXES
03 INTERGOVERNMENTAL REVENUE
04 CHARGES FOR SERVICES
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 GRANTS IN AID
600 TRANSFERS TO OTHER FUNDS
Total for Expenditures
Total for Revenues
Total for Expenditures
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
42,051,745
43,930,680
45,011,244
46,161,603
47,388,074
48,681,240
1,600,400
1,600,400
1,624,195
1,648,531
1,669, 974
1,685,827
12,451,801
12,451,802
12,514,273
12,578,616
12,644,891
12,647,338
1,469,986
1,469,986
1,482,808
1,496,015
1,509,618
1,509,618
5,715,501
4,684,270
4,723,502
4,917,425
4,973,620
5,008,722
63,289,433
64,137,138
65,356,022
66,802,190
68,186,177
69,632,746
5,411,845
4,298,824
4,490,782
4,694,101
4,748,418
4,762,159
2,065,135
1,952,859
1,964,597
1,975,370
1,977,169
1,977,822 .
1,002,078
990,759
1,020,483
1,051,096
1,082,632
1,111,734
2,962,047
3,061,413
3,148,054
3,237,526
3,331,941
3,427,990
359,350
357,250
357,250
357,250
357,250
357,250
25,000
25,000
25,000
25,000
25,000
25,000
51,463,977
53,298,201
54,349,856
55,461,847
56,663,767
57,870,789
63,289,432
63,984,306
65,356,022
66,802,190
68,186,177
69,632,744
63,289,433
64,137,138
65,356,022
66,802,190
68,186,177
69,632,745
63,289,432
63,984,306
65,356,022
66,802,190
68,186,177
69,632,744
0
152,832
0
0
0
1
•
MIAMI • FINANCIAL PLAN
62
M i!� M!= ® M i M i M = sM i M M
Fund 20 DEBT SERVICE FUNDS
Revenues
01 TAXES
03 INTERGOVERNMENTAL REVENUE
09 INTERNAL SERVICE FUNDS
Total for Revenues
Expenditures
300 OPERATING EXPENSES -FIXED
400 OPERATING EXPENSES -VARIABLE
600 TRANSFERS TO OTHER FUNDS
Total for Expenditures
Total for Revenues
Total for Expenditures
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
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
26,493,957
26,493,957
26,298,182
17,756,046
17,729,275
18,462,877
62,968,710
52,958,710
53,224,359
42,520,793
42,333,948
42,470,157
47,761,122
47,761,122
48,021,594
37,315,093
37,125,225
37,260,648
94,966
94,966
97,815
100,750
103,773
106,887
5,102,622
5,102,622
5,104,950
5,104,950
5,104,950
5,102,622
52,958,710
52,958,710
53,224,369
42,520,793
42,333,948
42,470,157
52,958,710
62,958,710
63,224,359
42,520,793
42,333,948
42,470,157
52,968,710
52,958,710
53,224,359
42,520,793
42,333,948
42,470,157
0
0
0
0
0
0
MIAMI • FINANCIAL PLAN 63
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
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
1,323,060
957,303
957,303
1,047,303
1,137,303
1,227,303
193,671
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
11 m 18
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
414,826,603
404,784,263,
406,590,097
409,957,823
413,340,113
403,686,156
414,632,765
404,406,986
405,355,649
409,720,205
413,267,571
5,039,906
192,138
378,277
234,448
237,618
72,542
11
MIAMI • FINANCIAL PLAN 64
C H A P T E R I V
1
1
1
1
1
1
1
1
1
1
1
1
EXHIBIT 11
Cash Flow Analysis For Fiscal
Years 1998 And 1999
MIAMI • FINANCIAL PLAN
65
M i i M= i= ® = = M M = M M M = = M
City of Miami
Cash Flow Analysis for Fiscal Years 1998 and 1999
• c v c Akan
�,e- , -sar �p u u e
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 9,018,616 1,852,087 51,921,311 64,156,602 56,335,355 52,337,937 48,106,034 3", 90,967 25,474,506 24,721,924 18,9N6,-M 20,891,687 1101
c -7.
v 7, e Vie.,, an a ar pr�Tay. un - u Au ep
_x
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
Notes:
(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)
M IAMI a FINANCIAL PLAN 66
C H A P T E R 1 V
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
EXHIBIT I11
Recurring Vs. Non -Recurring Analysis
MIAMI • FINANCIAL PLAN
67
C H A P T E R IV
Schedule of Recurring and Non -recurring Revenues vs. Expenditures
Fiscal Year 1998 Summary Analysis
Excess/(Deficit)
Percentage of Recurring
Recurring
Recurring
Recurring Revenue vs.
Revenue over
Fund
Revenue
Expenses
Recurring Expenses
Recurring Expenses
General Fund
$
275,065,767
$
263,319,815
$ 11,745,952
104%
Special Revenue Fund
64,137,138
60,279,820
3,857,318
106%
Debt Service Funds
52,958,710
52,958,710
-
1000/0
Trust & Agency Funds
1,892,303
1,892,303
-
100%
Total
$
394,053,918
$
378,450,648
$ 15,603,270
104%
Fiscal Year 1999 Summary Analysis
Excess/(Deficit)
Percentage of Recurring
Recurring
Recurring
Recurring Revenue vs..
Revenue over
Fund
Revenue
Expenses
Recurring Expenses
Recurring Expenses
General Fund
$
284,311,579
$
271,737,851
$ 12,573,728
105%
Special Revenue Fund
65,356,022
61,651,536
3,704,486
106%
Debt Service Funds
53,224,359
53,224,359
-
100%
Trust & Agency Funds
1,892,303
1,892,303
-
100%
Total
$
404,784,263
$
388,506,049
$ 16,278,214
104%
Fund
General Fund
Special Revenue Fund
Debt Service Funds
Trust & Agency Funds
Total
Fiscal Year 2000 Summary Analysis
Excess/(Deficit)
Recurring Recurring Recurring Revenue vs
Revenue Expenses Recurring Expenses
$ 291,179,895
$ 281,550,372
66,802,190
63,097,704
42,520,793
42,520,793
1,982,303
1,982,303
$ 402,485,181
$ 389,151,172
$ 9,629,523
3,704,486
$ 13,334,009
Percentage of Recurring
Revenue over
Recurring Expenses
103%
106%
100%
100%
103%
MIAMI 9 FINANCIAL PLAN
M
17J
C H APT E R IV +
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
Recurring
Revenue
$ 292,965,395
68,186,177
42,333,948
$ 405,557,823
Recurring
Revenue
$ 295,474,908
69,532,745
42,470,157
$ 409,640,113
Fiscal Year 2001 Summary Analysis
Excess/(Deficit)
Percentage of Recurring
Recurring
Recurring Revenue vs.
Revenue over
Expenses
Recurring Expenses
Recurring Expenses
$ 284,623,819
$ 8,341,576
103%
64,481,691
3,704,486
106%
42,333,948
-
100%
2,072,303
-
1000/0
$ 393:511,761
$ 12,046,062
103%
Fiscal Year 2002 Summary Analysis
Excess/(Deficit)
Percentage of Recurring
Recurring
Recurring Revenue vs.
Revenue over
Expenses
Recurring Expenses
Recurring Expenses
$ 286,596,904
65,828,258
42,470,157
2,162,303
$ 397,057,622
$ 8,878,004
103%
3,704,487
106%
-
100%
-
100%
$ 12,582,491
103%
M IAM I 9 FINANCIAL PLAN 69
CHAPTER V
CITY
WORKFORCE
1 � �
1 C�qV OF MM 1 ► s
t
CITY WORKFORCE
1
OVERVIEW
1
It is the people who work for the City of Miami, who collect the City's trash, fight fires,
1 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.
1 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, personnel expenditures represent 66.1 percent of the FY97 General Fund budget at
1 a cost of over $159 million.
Given the budgetary significance of the labor component, much thought has gone into
developing a deliberate human resource strategy that compliments the fiscal and service
needs of the City, and at the same time addresses the social objectives embraced by the
1 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
1 and accountability.
Similar to other urban areas, the 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 successful) the City is examining its cost structure b
Y� tY g � Y
1 emphasizing the efficiency and effectiveness of its personnel. The City must also analyze
and develop strategies that provide positive environments of change for its workforce, and
that ultimately reduce the relative cost of services without compromising quality.
I
70
CHAPMum
T E R V
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.
City of Miami
General Fund: Position History
4,000
3,900
3,800
3,700
3,600
3,500
3,400
3,300- — 'I US O
3,200
mt
mg
3,100
3,000
1990 1991 1992 1993 1994 1995 1996 1997 1998
Fiscal Year
?3�.
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.
71
M IAM I • CITY WORKFORCE
CHAPTER1 �30 V
1
1
I
u
Positions by Department
GENERALFUND
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,F,U,NE � `' .'... `, .,, ...,ti .ro....
., ,. 3;420
..,;.,100 00%0
As can be seen from the table, 70.35 percent of all budgeted positions are within the
Police, Fire, and Sanitation Departments. This reflects the essential and basic character of
the services provided by the City.
Positions within the City are also categorized, 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.
72
1
MIAMI • CITY WORKFORCE
CHAPTER V
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
30.790/c AFSCME
36.07%
Unclassified - Clerical &
Professional
5.71 %
Classif
0.86% CIGU
6.20%
IAFF
17.90%
;utives/
Professionals
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.
City of Miami
City Employment By Gender
As of 10/97
Female
30%
uz
NMI -
Male
70%
73
MIAMI 0 CITY WORKFORCE
CHA P T E R V
1
1
1
I
1
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I
I
1
The racial composition of Miami's workforce is comprised of individuals of Hispanic
origin (47.3%), followed by Black (31.8%), White (20%), Asian (0.7%), 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
12C
10C
N
d
$Q
C.
W 60
r..
O
40
E
3
Z 20
City of Miami
Employees by Years of Service
0to5 5-10 10-15 15-20 20and above
Years of Service
MIAMI • CITY WORKFORCE
74
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.
My of Mami Former Table of Crganization
nmum
:lopme
Cdy
Attorney
City Clerk
Civil
Service
Board
Downtown
City Developme
Manager Authority
nAuthority
gency
Internal Equal Opp
Audits Diversity
and
Review Programs
Fire
ssistant
rA
CAssistant
Assistant
Assistant Assistant
Assistant
ty Manage
City Manage
City Manage
City Manage City Manage
City Manag(
Finance
Neighbor-
hood Enhan
Community
Plaviza.
Planning an
Human Genei
Public Work Ser
cement Tea
Building an
Zoning
Asset
Managemen
Resources Solid
Parks and
Recreation
Hearing
Boards
Off -Street
Parking
Police
75
M 1 A M 1 0 CITY WORKFORCE
C H A P T E R V
1
1
I
1
1
1
1
1
1
1
1
1
1
City of Mami F198 Table of Organization
Communi Civil ami Sports
ty City City City Bayfront Mi
Clerk Service &Exhibition
Attorney Manager Park Trust
Downto—
Off-StreetRedevelop- Development
Parlun g
ment Agency Board
Authority
Authority
Assistant
Assistant
City Manager Police
Finance and
Fire Rescue City Manager
Administration
Operations
Budget and
Management
EiDH:;�il
Equal Opportunity Net Coordinator Solid Waste
Analysis
Information Internal
Labor Relations
Community Building
General Services
Administration
Technology Audits
Informal on and Zoning
(GSA)
Planning and Federal and State
Purchasing
Office of
Prolessional Public Faaldies Public Works
Development Liaison
Compliance
Communty
Hearing Boards Development
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.
MIAMI 0 CITYWORKTORCE
76
C H A P T E R Vm
• 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.
77
MIAMI 0 CITY WORKFORCE
WORKFORCE EXPENDITURES
The City of Miami spends a significant 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%. 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.
1
1
n
General Fund Employee Compensation
FY85 - FY97
90.0%
160,000,000
80.0%
140,000,000
120,000 000
100,000 000 50.0%
o X x'. � c
4 80,000,000 a z F 40.0%
60,000,000� 30.0%
40,000 000o
20.0 /o
20,000000 P'l�' 10.0%
FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY94 FY95 FY96 FY97
Fiscal Year
PERSONNEL SERVICES —0—PERSONNEL SERVICES PERCENTAGE
Despite the City's efforts to contain costs, most of the regular rise in compensation
costs are due to the tenure and experience of the City's workforce, resulting 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.
78
MIAMI 0 CITY WORKFORCE
C H A P T E R T
FRINGE BENEFITS
The City of Miami pays the costs of fringe benefits for all full time City employees.
Fringe benefits include Health Insurance, Life Insurance, Pension, Workers Compensation,
Disability Benefits, Social Security, and Other miscellaneous benefits. Miscellaneous
benefits depend on job classification and include such items as tuition reimbursement,
clothing, car expenses, or other related pay supplements.
Fringe benefits are a significant part of Miami's General Fund expenditures, ranging
from 19 to 26 percent of the City's budget. 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%
.
3
F
�`Yfr.< .: �
^ yg':,•� � �> �''$�
`�.. HH �"
� i't�
� is
50
?
25.00
40
IM
30
15.00 % 3
yy
k
Z
v
Y
�.✓�i .
20
"
s
Q
yF.
10.00%
y
10
5.00%
FY92 FY93 FY94 FY95
FY96 FY97
Fiscal Year
iiiiiiiiiiiiiFringe Benefits 0 % of C,eneral Fund
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.
79
MIAMI 0 CITY WORKFORCE
,;yy;. . Jq,:,_y-
TIME OFF
City employees 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
1 of leave. When added together time off is estimated at approximately 15-16 percent of
salaries and wages for FY97.
' Paid Holidays
Paid holidays represent a significant portion of time off, at an estimated 4.9 percent of
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, providing 11 paid
holidays ranks Miami in the mid -range of other municipalities.
Sick Leave
The City 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 to 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 depends on the time a worker has been employed by the City as well as employment
classification. Vacation time represented approximately 5.77 percent of salaries and wages
for FY97.
Other Time
Other time off includes compensatory time and earned personal leave. The City
permits certain employees to earn and receive compensatory and earned personal leave.
1
n
1 80
1 MIAMI 0 CITY WORKFORCE
CHAPTER Nit
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 $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
6.0%
12
5.0%
10
w
8r
"
3.0%
v
6
a
410
`y t
2.0%
N
1.0%
2@
'
u;
�,
a
FY92
FY93
FY94 FY95
FY96 FY97
Fiscal Year
Kam, Regular Overtime Special Event Overtime
% of General Fund
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.
81
MIAMI 0 CITY WORKFORCE
C H A P T E R V
1
1
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1
SUMMARY OF CURRENT CITY
COMPENSATION PACKAGE
On the following pages are two charts that 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.
M I AM I • C ITY WO RKFORCE
82
. fi
CHAPTER V
SUMMARY OF COLLECTIVE BARGAINING AGREEMENTS
FY 1997
Benefit .-
�1t!/ages31 om, I .
As of 4/1/97
As of 4/1/97
As of 4/1/97
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
Scheduled-:Wage3:lncr,±�ases .,,,.
x"'A
A. ,,, 3.
Percentage
09/01 /98
09/01 /98
09/01 /98
0
Effective Date
4%
4%
4%
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
$98.00
Workers Coin ensafion,. r3
3, ...� 3
Duration 180 days
150 days 180 days 180 days
iPar[an rovidetl� � � n 3v..�.
g'.
P, 1, 40
� �r �'' ���,.._, �'�����'s��«; �,
Yes/No -
Yes Yes Yes
T,ake�HoriieVehlele 1 3� '�,,...:_
' z v -; a„„3-r,','.i.3��"'�,,e..,t✓,.
Yes/No Yes
No No No
1:11-11.11 ;A 3 3�' N
�...,,,.,,wX
Yes/No
Yes
Yes No No
Pens; io ��=,
q 3 .,..�
._�. �, h,...� ,ti
1� .1�.
Employer Contribution
19.3%
19.3%
0% 0%
Payment for Gates
N/A
N/A
23.78% 23.78%
Employee Contribution
10%
10%
10% 10%
Multiplier
3%
3%
2.25% 2.25%
Eligibility
64 Points
70 Points
70 Points 70 Points
3 . .. �,`• � ,r#
✓Aiv- , "�--375.z ,I.i�Iic, Y,9�3SV$�✓N„ ry0.,Ut'i ,a s@s! 9u m.,
�,�1 Tfi-; .,,Y,U',d,r'k.,._S,f_ .3 KLa#., �x' 'ird .i ',,.il.:x
Yes/No
Yes
Yes
Yes Yes
Min Hrs. Call Back
3
4
4 4
Note: Normal pension costs for AVZSUMb anti UlUiJ are retlectea as (l% clue to excess earnings on
investments. City contributes 23.78% for unfunded liabilities as a result of the Gates Settlement.
83
MIAMI 0 CITY WORKFORCE
m m is m m r m MMMMMMMMIMMMM
SUMMARY OF COLLECTIVE BARGAINING AGREEMENTS
FY 1997
.• FOP
Pa
F�f. Ali; n
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. O.
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 Cart. Fire Insp. Fire
Prevent Bureau Insp. (40 Hr.)
1.5%
Safety Shoes
$75.00
Assi
Chief Office
5%
Fire College
5%
Fire Prevention
5%
Communications
5%
Garage
5%
Admin. Office Fire Fighting
5%
MIAM I 0 CITY WORKFORCE 84
•
C:
CHAPTER V
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 that support positive environments of
change for its workforce, and will ultimately reduce the relative cost of services without
compromising quality. The City has several workforce initiatives 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 and overtime.
• Continue to investigate cost effective
and quality health care alternatives.
MIAM I 0 CITY WORKFORCE 85
CHAPTER VI
ECONOMIC
DEVELOPMENT
F CHAPTER
°dF�ooQ,q ECONOMIC DEVELOPMENT
OVERVIEW
Economic development is the process whereby a municipality facilitates 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
tfrom 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
be achieved if the organization is to be successful in attracting new -to -market businesses or
retaining the current employment base.
MIAMI • ECONOMIC DEVELOPMENT 86
C H A P T E R V I
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 and geographic 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
of exports and imports processed through the Miami Customs District has increased by 20
percent each year.
87
MIAMI • E C O N O M I C DEVELOPMENT
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 21' 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.
r
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
professional sports events, and sports fishing. Annual fairs and festivals also bring in
visitors for local events.
88
MIAMI • E C O N O M l c DEVELOPMENT
CHAPTER V I'
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 full -
service boatyard, a 122 wet slip marina, a 40,000 sq.-foot public marketplace,
10,000 sq.-foot of marine4elated 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.
89
MIAMI • ECONOMIC DEVELOPMENT
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 surfing, 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.
90
MIAMI E C O N O M I C DEVELOPMERT
C H A P T E R V
• 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.
Community Development Department
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.
All projects must benefit low and moderate income persons or help prevent/eliminate
slum and blight.
91
MIAMI • ECONOMIC DEVELOPMENT
For FY 97, the CDBG award was. in excess of $13 million. During the past year,
CDBG grants 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.
r _
OTHER ENTITIES INVOLVED IN
ECONOMIC DEVELOPMENT
Beacon Council
,r 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.
1 92
' MIAMI • ECONOMIC DEVELOPMENT
C H A P T E R V
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) educationaf
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.
93
MIAMI • E C O N O M I C DEVELOPMENT
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
1 working in conjunction with the Beacon Council, Greater Miami Chamber
of Commerce and the Greater Miami Convention and Visitors Bureau.
1
I
1
Initiative: Focus economic development efforts on retaining and expanding local
businesses.
Initiative: Develop programs which emphasize workforce development.
94
MIAMI • E C O N O M I C DEVELOPMENT
CHAPTER Vil
CAPITAL
PLANNING
• i
,� Op
'CHAPTER V11
CAPITAL PLANNING
OVERVIEW
All government organizations have to prudently manage the acquisition, maintenance
and replacement of their physical assets. These capital assets must 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
I
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.
r
MIAMI • CAPITAL PLANNING 95
C H A P T E R V 1 1
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.
Capital Budget appropriations for the last year were fairly balanced among major program
areas.
96
M I A M! 0 CAPITAL PLANNING
1E --C H A P T E R V 1 1
History of Capital Appropriations By Major Programs
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.
97
MIAMI • CAPITAL PLANNING
CHAPTER VI II
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 Budget Office, Capital
Improvements Section 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 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;
98
1
MIAMI 0 CAPITAL PLANNING
C H A P T E R V 1 1
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1
• 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 Capital Improvements Section for regular
tracking purposes to be sure that departments do not exceed their allocated budgets and that
the funds promised them are still available.
I
I
1
L
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 Projects 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. 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
rcapital 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.
1
1 99
1 MIAMI 0 CAPITAL PLANNING
CHAPTER V 111
LINKING THE CIP AND CAPITAL BUDGET
In theory, the CIP is always 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.
120
100
80
60
40
20
0
Actual General Fund Net Appropriations
FY 1982 Through FY 1996
17 Net Appropriations
FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY95 FY96
& 94
100
MIAMI 0 CAPITAL PLANNING
C H APTER V 1 1
1
1
1
U
1
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
101
MIAMI • CAPITAL PLANNING
C H A P T E R V 1 1
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.
102
MIAM 1 0 CAPITAL PLANNING
11
1
C HAP T E R V 1 1
1
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 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
recurring
I
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.
103
11
MIAMI • CAPITAL PLANNING
CHAPTER Vill
DEBT
MANAGEMENT
OF
L,T!
F
♦ � f
t
r
•
DEBT MANAGEMENT
OVERVIEW OF POWERS AND PROVISIONS
. Debt Management is a vital element in 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). The process of Debt Management is best performed under 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.
M IAM I • DEBT MANAGEMENT 104
C H A P T E R
V 111�
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. 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 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 stable, improving the credit rating of the City will be
contingent upon successful implementation of a recovery plan.
105
MIAMI • DEBT MANAGEMENT
n
C H A P T E R
V 1 I I
DESCRIPTION OF CURRENT INDEBTEDNESS
The City of Miami has three forms of debt outstanding:
1. General Obligation - General Obligation debt is secured b property taxes and
g g YP pertY
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.
106
MIAMI • DEBT MANAGEMENT
300 .
C H A P T E R
VII11
As of September 30, 1997
Form of Debt Outstanding Principal Final Maturity Call Date
GENERAL OBLIGATION
Series 1977 B
Series 1978
Series 1981
.Series1985
Series 1988
Series 1989 Refunding
Series 1991Refunding
Series1991
Series1992
Series 1992 Refunding
Series 1993 Refunding
Series 1995
Total General Obligation Debt
PROPRIATION
Series 1995 Revenue -Taxable Pension
Series 1994 Revenue
Series 1995 A Special Obligation
Series 1995 B Special Obligation
Sunshine State Government 1988
Sunshine State Government 1994
Sunshine State Government 1995 A
Sunshine State Government 1995 B
Total Appropriation Debt:
ECIFIC PLEDGED REVENUE
Series 1986 A Special Obligation
Series 1987 Special Obligation
Series 1988 Special Obligation
Series 1989 Special Obligation
Series 1990 Community Redevelopment
Dept of HUD, S/E Overtown
Dept of HUD, Citadel Project
Total Specific Pledged Revenue Debt:
TOTAL INDEBTEDNESS
3,820,000
12/1/98
N/C
2,145,000
12/1/07
N/C
4,285,000
8/1/11
Currently Callable
1,660,000
4/l/98
Currently Callable
1,485,000
ll/l/98
N/C
2,280,000
4/1/99
N/C
10,865,000
5/1/13
511101 @ 102%
1,695,000
7/1/01
N/C
9,100,000
8/1/17
8/l/02 @ 100%
66,175,000.
12/1/13
12/1/02 @ 100%
31,010,000
7/1/13
7/1/03 @ 102%
22,500,000
111115
1/1/03 @ 101%
$157,020,000
71,250,000
1.6,285,000
22,000,000
71,250,000
21,161,900
8,590,000
3,300,000
29,370,000
$243,206,900
2630,000
42:311,325
30,000,000
4,845,000
3,405,000
5,100,000
2,500,000
$90,791,325
$491,018,225
12/1/25
9/1/14
12/ 1 /25
2/l/25
111115
1/1/14
7/1/12
l/1/25
7/l/06
7/1/12
7/1/19
7/l/09
1011115
7/1/09
8/1/04
12/1/06 @ 102%
9/l/03 @ 102%
8/1/05 @ 102%
12/1/06 @ 102%
N/C
N/C
N/C
-'N/C
10/1/98 @ 100%
1/1/98 @ 100%
N/C
7/l/99 @ 102%
10/1/00 @ 104%
N/C
N/C
107 1
MIAMI • DEBT MANAGEMENT
C H A P T E R
V 1 I 1
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.
Annual General Obligation Debt Service (P & 1)
108
MIAMI • DEBT MANAGEMENT
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
seOa
rows above, depicting successive refundings.
Bond issue with all maturities either paid off or
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
Flow of refunding proceeds
Series 1972
Seder 1977
Public ParksaRec.
Sewer, Polim, Fie
Naw Murry
New Money
$2S,350,00D
s2J.000,900
Dated 1011M
Dated 5/1/77
Final Maw y 101167
Fiaal Maturity 5/19711111
M IAMI • DEBT MANAGEMENT 109
MMMMMMM
C H A P T E R
V I 1 1
' 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
were used to fund the separation liability incurred in an 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.
I 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
tcreated 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
1 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.
MIAMI 9 DEBT MANAGEMENT 110
C H A P T E R
V 1 1 1
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.
111
MIAMI • DEBT MANAGEMENT
C H A P T E R
V 1 1 I
MAJOR INITIATIVES
The City believes that many of the Initiatives developed in the past year are sound
rideas. 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.
1
112
IM IAM 1 9 DEBT MANAGEMENT
CHAPTER IX
CASH
MANAGEMENT
L,(1t OF
k 1
�o tti°
1]
GASH 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"
tinstruments of the US Government and its agencies, with the City designated as the
collateral beneficiary.
rIn 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
Section 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 0 CASH MANAGEMENT 113
C H A P T E R I X
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
Section.
Process of
Investing
Short -Term
Funds
Main
Depository
Account
Main
Operating
Account
Accounts Working
Payable Capital
Account Account
Excess Funds
Invested
CIP Account
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 Pap
($7,000,000)
10%
Treasury and
Agency Securities
),000,000)
90%
114 r
MIAMI • CASH M A N A G E M E N T
CHAPTER 1 X
1
1-1
1
1
1
1
1
1
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.
115
MIAMI • CASH MANAGEMENT
C H L1 P T E R 1 X
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.
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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
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
Duration
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)
3-7 Years
20%
20%
Interest Rate Swap Agreements (8)
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 be rated 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.
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C H A P T E R I X
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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 simplifies the City's approach to its cash
management operations, but it also offers 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 made 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.
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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.
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APPENDIX A
RECOMMENDATIONS
INDEX
City of Miami 0
Management and Productivity Initiatives
Formal strategic planning should be immediately reinstated as part of the City
of Miami's organizational structure. Develop the structure and process to t
sustain long-range strategic planning for the City.
The City should 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 2
budgets).
Engage a professional firm with expertise in strategic planning to facilitate and
expedite the completion of the first strategic plan for the City. 3
Risk Management Department Review -Develop an overall safety & health
strategic plan for the City as well as for each Department 3 TabF/Page 10
Upon completion of the strategic plan, develop and execute a communication
strategy targeted to residents, City employees, government, the business 4
community, media and location services.
Institute a forum for resolving resource allocation issues to align all major 6
projects within the City's strategies.
Revamp the City's budgeting process to match the revised organization
structures cited in the re -organization plan. The tracking processes should be
flexible enough to facilitate sourcing decisions and management performance. 6
Critical Success Factors -Limited monitoring of departmental budgets is
performed 6 Tab B/Page 2
Link Strategic Planning to Operating and Capital Budgets 7
Prepare all budgets after the annual strategic planning process has been
completed. 7a
Merge budget and operating plans into one document. 7b
Critical Success Factors -Each department should be required to prepare a
business planning cycle 7b Tab B/Page 2
Submit capital and operating budgets simultaneously and integrate them in
terms of goals and purpose. 7c
Set capital and operating budget horizons to be consistent with strategic goals. 7d
Incorporate contingency planning into budgets. 7e
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Management and Productivity Initiatives
Require managers to demonstrate how proposed projects are in line with the
City's strategic plan. This can be done in the form of a cost/benefit analysis
that measures the expenditure of resources against the contribution to 7f
achieving goals.
Expedite implementation of the City Manager's reorganization plan as outlined
in the revised "Five Year Plan". The City should begin planning how to adopt a
more progressive organization structure.
Office of Professional Compliance -The Office of Professional Compliance
should be removed from the department I 8 I I ITab B/Page 8
Office of Professional Compliance=Consideration should be given to
incorporating this function within the Police Department organization, reporting 8 Tab B/Page 8
directly to the Police Chief
Office of Professional Compliance -A review of other local jurisdictions of simila
size should be conducted to determine, if there is a need for a separate review 8 Tab B/Page 8
function, how it is typically organized
Solid Waste Management -Solid Waste should be separated from GSA
Move aggressively to reestablish an appropriate management structure from
Hirst level supervisor through middle management to department head.
Survey to determine perceived and actual departmental shortfalls in staffing.
Each department must justify the tasks to be performed that cannot be
comoleted at current staff levels.
g TabK/Page 12
10
The City should perform a mgmnt/operations study of the finance dept. This
study should encompass an extensive analysis to evaluate qualifications and
the work loads of the staff to det need to expand staff and / or reassign tasks 10 Page 1
where appropropriate.
Critical Success Factors -'Selectively review and waive hiring freeze of
positions 1 10 1 1 'Tab B/Page 1
Information Technology Division (IT) -Positions should be created and funded t
bring to City appropriately skilled staff to maintain City in today's technology I 10 I I ITab B/Page 6
environment
Immediately conduct a planning study of office space to determine if office
requirements can be met through rearrangement of existing space vs. leasing 11
new space.
Consider placing Risk Management under the Assistant City Manager of
Finance and Administration to consolidate similar functions. 12
Consider placing Procurement under the Assistant City Manager of Operations
to enhance customer service orientation and efficiency. 13
Continue with current plans to transfer some fleet responsibilities from the Fire
and Police Departments. 14
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City,pf,Miami
Management and Productivity Initiatives
Fleet Management Task Force -Strongly recommended that the services
performed at General Services Administration, Miami Police and the Miami Fire 14 TabD/Page 3
Departments be consolidated Terminate the current Police take-home policy
Solid Waste Management -A better sharing of overhead cost could be made if
all Fleet maintenance operations in the City were consolidated 14 TabK/Page 12
responsibilities for other key maintenance to GSA.
The City needs to adopt appropriate policies and procedures to assure that
good business practices are followed.
Fleet Management Task Force -Need to optimize the layout and work flow
processes of the physical plant
1s
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16 TabD/Attachment II
Fleet Management Task Force -Car assignments should be reallocated on the
basis of shift size and duty assignment 16 TabD/Attachment II
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 16 TabD/Attachment II
Fleet Management Task Force -All surplus cars to the City's needs, or ready fo
retirement, should be auctioned off instead of donated to a sister city or any 16 TabD/Attachment II
other entity
Health Insurance Task Force -Form 5500 for each benefit where form is
required should be examined by Benefits, Human Resources/Labor Relations I 16 I I ITabE/Page 3
and Finance Departments before being submitted to the IRS
Health Insurance Task Force -A sense of urgency coupled with empowerment
and responsibility. should be developed within the Benefits Office operating as 16 TabE/Page 4
a component of HR
Opportunities Task Force -Should be funding a portion of the future benefits 16 TabK/Page 2
being earned by current employees on post -employment health care benefits
Opportunities Task Force -Necessary to complete a long term financial workout
plan including a one -to -two year short-term plan 1 16 1 1 1TabK/Page 2
Opportunities Task Force -Workout plan should be designed to immediately
improve the operating cash flow through significant revenue increases and 16 TabK/Page 2
expenditure reductions
Opportunities Task Force -Long-range workout plan should consider partially
eliminating accumulated deficits through sale of real estate, refinancing debt 16 TabK/Page 2
and rightsizing City services
Opportunities Task Force -As soon as possible, the City should determine its
actual financial position as of the current date 16 TabK/Page 3
Opportunities Task Force -Increase enforcement efforts to reduce the level of
illegal dumping within the City which is required to be cleaned up by Solid 16 TabK/Page 4
Waste
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Management and Productivity Initiatives
Opportunities Task Force -Increase efforts to audit or otherwise verify that the
City is receiving the full amount due from franchise revenues from commercial 16 TabK/Page 4
solid waste companies
Opportunities Task Force -Transaction on New Miami Arena should be
reviewed in detail to ensure that the return to the City is commensurate with 16 TabK/Page 5
fair market value of the parcel
Opportunities Task Force -Serious consideration should be given to obtaining
as large a payment as possible in the near tens and/or long term recurring 16 I I 1TabK/Page 5
revenues on the New Miami Arena parcel I
Opportunities Task Force -Should conduct review of all City activities to
determine which of the activities could be performed more economically and
with a higher level of service by another local government or by a private 16 TabK/Page 5
enterprise
Opportunities Task Force -A complete listing of all the City's account receivable
balances should be compiled including revenues recorded in the accounting 16 TabK/Page 6
records as well as balances which may not be recorded
Opportunities Task Force -Should review all services provided to determine
level of fees and charges associated with each service 16 TabK/Page 6
Opportunities Task Force -Should determine whether fees charged are
reasonable based on the fully loaded cost of the service, rates charged by 16 TabK/Page 6
other local governments and private enterprises for similar services
Opportunities Task Force -Rates should be adjusted to ensure service users
are paying the associated costs and to provide a return to the City which is 16 TabK/Page 6
appropriate
Opportunities Task Force -Formal policies should be adopted regarding when.
waiver of user charges are to be granted 16 TabK/Page 6
Opportunities Task Force -Steps should be taken immediately to reduce or
eliminate the.financial burden associated with ownership of James L. Knight 16 TabK/Page 6
Center and Parking Garage and the Coconut Grove Exhibition Center
Cost of Solid Waste Operations -Can save fleet operating costs as well as crew
time in Solid Waste by utilizing dose -by Regional Transfer Stations 16 TabK/Page 9.
Cost of Solid Waste Operations -May be able to accomplish significant savings
if a few loads per day could be directed directly to the disposal site with the 16 TabK/Page 9
remainder going to the transfer station
Cost of Solid Waste Operations -Should have a more detailed evaluation of its
use of transfer stations 16 TabK/Page 9
Cost of Solid Waste Operations -The City appears to lag in its vehicle
replacement plan in Solid Waste 16 TabK/Page 10
Cost of Solid Waste Operations -Solid Waste costs should incorporate
administrative costs directly related to billing, including mailing costs, staff
support and computer processing and disk space charges
16 TabK/Page 10
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City:of,Miami
Management and Productivity Initiatives
Cost of Solid Waste Operations -The street sweeping component should be 16 TabK/Page 11
independently reviewed by the Metro -Dade Department of Public Works
Cost of Solid Waste Operations -Savings may be gained through reducing
disposal and operating cost by elimination or reduction of the weekly trash 16 TabK/Page 11
sweeps and by eliminating free service to City Departments
Cost of Solid Waste Operations -Additional savings may also be gained by
billing annually 16 :]TabK[Page 11
Solid Waste Management -Lack of a consistent fleet replacement program will
eventually cause a problem 16 :]TabKfPage 12
Solid Waste Management -Service levels for trash pickup, bulky waste, white
goods and illegal dumping are incredibly high 16 TabK/Page 12
Solid Waste Management -A need for enforcement is obvious 16 1 1 TabK/Page 12
Solid Waste Management -Street sweeping and special events should have
their own cost and revenue centers, and be self-sufficient financially, and avoid 16 TabWPage 12
being subsidized by the waste fee
Solid Waste Management -The waste fee itself is insufficient 16 TabK/Page 13
Solid Waste Management -Should not donate retired equipment but should sell 16 jTabK/Page 13
it and revenues from sales should be deposited in a Capital Replacement Fund
Revenue Enhancements -Eliminate park user fee waivers
Revenue Enhancements -Increase park user fees when appropriate
Revenue Enhancements -Develop a park marketing program to enhance
revenues (existing and new)
Revenue Enhancements -Establish a process to credit the Parks and
Recreation Dept for existing and new revenues generated by the parks
Revenue Enhancements -Review concession permits/revenues (including
mobile vendors)
16
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3
TabM/Page 3
16
TabM/Page 3
16
TabM/Page 3
16
TabM/Page 3
16
Revenue Enhancements-Review/simplify process to obtain Grants (Federal,
State, Private) 16 TabM/Page 3
Organization/Structure Improvements -Conduct a cost/benefit analysis of recen 16 TabM/Page 3
transfer of the Park Maintenance Department to the Public Works Department
Operating Practices -Establish a "bottom-up"/participatory budget preparation
and monitoring system 16 1TabM/Page 4
Operating Practices -Develop an operating manual for Parks and Recreation
facilities/employees 16 TabM/Page 4
Operating Practices -Develop a procedure for processing/prioritizing work
orders 16 TabM/Page 4
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• City of Miami 9
Management and Productivity Initiatives
Operating Practices -Develop a formal vehicle maintenance and replacement
program 16 TabM/Page 4
A code of conduct needs to be developed and signed by all employees. 17
Integrate Benchmarking, performance measures and management by
objectives into all work operations. 18
Critical Success Factors -Finance and Internal Audit staff must be held rr�
accountable and departmental objectives and metrics to measure the agreed I 18 I I ITab B/Page 1
upon objectives must be established.
Fleet Management Task Force -Establish productivity and job standards 18 TabD/Page 6
Create meritocracy in the management ranks. Changes for covered
employees will take time and may be the subject of bargaining. Long term
efforts should be directed to linking compensation more closely to 19
performance.
All City departments should be formally trained on benchmarking and
performance measures. 20
Periodic reports on significant benchmarks and performance should be made a
part of the City Administration's report to the Commission and the citizens. 21
Information Technology Division (IT) -A formal tracking mechanism should be
developed to create measurability of performance 21 Tab B/Page 6
Make sure each major work function significantly improves the productivity of
the function. This action plan should be incorporated into each department 22
head's work plan and be part of his or her appraisal.
The City Manager and department heads should develop an action plan for
implementing total quality concepts throughout the organization. 23
Adopt a competitive sourcing policy and process to assure that the City is
providing and receiving quality services that are cost effective according to 24
industry standards.
Contract with a consultant to conduct a sourcing study with priority on fleet 26
maintenance and fueling due to the impact on facilities.
Use Costing Methodology similar to that used by the City of Charlotte to track
all costs related to City Services as a basis for sourcing decisions. 26
City of Miami - Office of Budget 6 of 41 8.22 AM12/15/97InitCrosRej
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® cityr.of; Miami
Management and Productivity Initiatives
Apply Sourcing Decision Guide similar to other cities (Based on review of
sourcing practices) Charlotte, Phoenix, and Indianapolis, have realized
substantial improvements in efficiency, quality and cost by adopting the 27
recommended approach.
Work with private industry for guidance and advice on.sourcing decisions. 28
Director of GSA should develop a schedule for sourcing implementation. 29
Fill middle management positions that will not be affected by outsourcing. 30
Institute appropriate contract administration and evaluation procedures with
respect to out -sourced functions. 31
Increase operational efficiency and expedite development permit process as 32
Review, improve and streamline all land use related application forms. 32a
Create a system that is project driven rather than permit driven. 32b
Institute a more effective use of technology. 32c
Develop performance measures that target improving the service and reducing
the cost of these functions. 33
Correlate funding of Department with performance measures and objectives.
34
Revisit staffing qualifications. Technical expertise and experience are critical
to efficiency and customer service. 35
Review compensation and benefits in light of the rest of the City and within the
overall reorganization plan. 36
Review Departments reporting relationship to strengthen oversight and
effectively monitor customer service. 37
Improve relationship and coordination with Dade County to expedite the
permitting process. 38
Expedite non -controversial items supported by staff. 39
Request that the County appoint one person to expedite processing of
necessary county approvals of City permit applications. 40
Centralize and simplify the process of applying for land development changes,
including master plan changes. 41
Seek vehicle for developing public/private partnerships for development and
redevelopment. 42
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® Citylof Miami
Management and Productivity Initiatives `
Seek public input on the City Charter to improve the land lease process and
fee structure, including cost of appeals. 43
Develop city-wide design and landscape standards. 44
Identify and communicate to staff and public the mission of code enforcement.
Should be considered part of development/redevelopment policy rather than 45
punitive.
Identify spec individual with responsibility and authority for code
enforcement to set overall policy and direct compliance strategies. 46
Add "appearance code" that is enforceable and enforced. Neighborhood
improvement is the message. 47
Consider "amnesty" program to have people pay whatever they can on fines,
but only after property has been brought into compliance. 48
Implement aggressive enforcement against properties and owners refusing to
come into compliance, including alternatives to foreclosure such as court 49
injunctions, personal property levies, etc.
Need senior policy level review of property lien foreclosures to weigh
benefits/liabilities of City ownership. City ownership of properties not in So
compliance needs to be addressed.
Consider if police and fire could assist in identifying possible code violations
during the course of their normal duties. Could also be computerized. 51
Train personnel for technical and interpersonal skills. 52
Consider connecting enforcement districts with Commission Districts as
needed. City needs fair and equitable policies appropriate to each 53
neighborhood.
A study of whether the City should sell code enforcement liens should be
conducted. The analogy to tax liens may be appropriate, but there are legal 54
and policy issues which need exploration.
A private/public partnership should be formed between the Greater Miami
Chamber of Commerce and the City of Miami.This partnership should develop
a strategic plan for the economic development of the City of Miami. This would 55
be for the entire City, and n
Explore the value of consolidating into a single agency the responsibility for the
economic development in the entire City. Establish a speck entity with
similar responsibilities as the Beacon Council to lead economic development 56
for Miami.
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® City q-,,Miami
Management and Productivity Initiatives
This agency should have the ability to condemn properties and provide
incentives for development and to attract business to the City of Miami. 56a
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 56b
municipalities, etc.
The agency should include the Downtown Development Agency. 56c
Designate a City employee who will be liaison between the City and Beacon
Council. Intention for the Beacon Council to be viewed as non-competitive 67
organization.
Utilize state and private education institutions to attract business to urban core.
58
Actively pursue and lobby for the extension of the light rail system westward
through Kendall. The extension will provide increased accessibility of the 59
available work force to the downtown core.
Review land use in the Downtown/Brickell core to provide for mid -rise office
development. 60
The organizational criteria in the Five Year Plan should be applied to lower
levels of the City organization. 61
Budget Management Division -Placement of Task Force positions within the
NET Offices should be investigated as an option 61 Tab B/Page 4
Budget Management Division -Grant coordination should be strengthened. 61 Tab B/Page 4
Procurement Management Division -Oversight and related policies of the
Procurement Division should be strengthened 61 Tab B/Page 4
Strengthen and broaden the role of Internal Auditor, including: 64
Substantial operational auditing to ensure that approved policies and
procedures are being followed. 62a
Review of travel and expense accounts of the commission and senior
C K management in accordance with predetermined objective criteria. 62b
„ Review of new or revised City projects while in progress and/or within six
months or a year after completion to compare with financial forecasts and 62c
enhance future projections.
Staff to review GFOA's "Recommended Practices for State and Local
Governments." Develop appropriate implementation plan. 63
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0 • City of Miami .
Management and Productivity Initiatives
Reconciliations of the City's cash accounts should be performed monthly.
These reconciliations should be prepared in a standardized format designed by
the City. All reconciling items should be fully investigated, explained and 63 Page 1
supported.
All reconciling items should be appropriately investigated and resolved on a
timely basis. In addition, the finance dept should exercise prudent custodial
control to ensure the safe keeping of all the City's financial records, including 63 Page 4
bank statements.
Inventory should be counted annually. Policy should address general inv.
procedures including names of staff responsible for the inventory count, the
scheduling of inventory taking and the ID of controls needed to ensure an 63 Page 5
accurate count.
In order to improve and maintain control over general fixed assets, the city
should develop a complete detailed asset records. The following guidelines 63 Page 5
should be utilized;
The fixed asset subsidiary ledger should be updated throughout the year as
fixed assets are acquired or disposed: 63 Page 6
Periodic inventories should be taken to verify the continued existence of the
Fixed assets. Any unlocated 'items should be appropriately investigated. 63 Page 6
The fixed asset subsidiary ledger should be reconciled to the general ledger, at
a minimum, on a quarterly basis. 1 63 Page 6
The City should assign the responsibility of maintaining its general fixed assets
to an individual. 63 Page 5
The City should implement the following to improve its account receivable
process: 63 Page 8
The City should use a formal invoicing system for all routine billing as a
mechanism for ensuring the timely collection of outstanding invoices. 63 Page 8
The accounts receivable general ledger control balance should be supported
by an appropriate level of detail that provides management with information to 63 Page 8
monitor the collecting of accounts receivable.
This detail should preferably be in the forth of an aging report that presents
each customer's outstanding balance based on the actual due date.
Aging trial balance should be reconciled monthly to the general ledger. All
material differences should be investigated and resolved on a timely basis. 63 Page 8
The City should immediately review the nature of the approximately $9 millionij .
n
loans outstanding and evaluate the collecting of such balances. In addition all
future loans should be supported by appropriate documentation including 63 Page 8
formal loan agreement
The City should create the position of Grants Administrator. Individual would
be responsible for ensuring that claims for reimbursement are filed properly, in 63
a timely manner, and in accordance with grant guidelines.
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The administrator would also be responsible for coordinating and monitoring
the City's compliance with requirements applicable to federal and state
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financial assistance programs.
This individual would also assist in identifying additional federal and state
programs that may be available to the City.
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City should designate a person to monitor the activities of the contractor to
ensure proper adherence to the requirements of the Relocation Assistance and
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Real Property Acquisition Policies Act.
The City should implement the reconciliation of detailed subsidiary records to
the general ledger, at a minimum, on a monthly basis. Reconciliation should be
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reviewed by supervisory personnel.
In preparing monthly reports, the following should be considered:
Page 13
63
Proper cutoff procedures should be implemented to facilitate for the proper
recognition of revenue and expenditures.
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Standard journal entries should be assigned to speck staff accountants. All
journal entries should then be apporved by the finance director, or general
ledger supervisor prior to input into the general ledger system.
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'
The lagers be to the ledger
subsidiary should reconciled respective general
balances.
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All standard dosing procedures should be written and be incorporated into the
City's Accounting and Procedures Manual and made available to the
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accounting staff.
'
The City should implement a financial reporting function, including the
appointment of an individual who will be responsible for compiling and drafting
m
the annual general purpose financial statements and other required reports.
63
Page 16
The City should purchase a computerized financial reporting package that can
be integrated with the City's current general ledger system. This sytem should
be configured to produce the City's general purpose statements.
63
Page 16
An in depth manual of accounting policies and procedures should be prepared
Page 16
63
twhich,
at a minimum should include:
A chart of accounts containing an adequate explanation of account purpose,
use and content.
63
Page 16
Documentary flowcharts of significant accounting systems, including their
interrelationship, where applicable, with other departments within the City.
63
:J
Page 16
A list of standard forms used in the City with detailed explanations of their
purpose and preparation.
63
Pale 16
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Management and Productivity Initiatives
A list of data processing reports, including appropriate descriptions of source,
content, production frequency and purpose. 63
A list of standard and other journal vouchers with sufficient explanation of their
puce. F 63
Appropriate descriptions of all financial pollicies and accountign procedures I 63 I
and routines regarding, but not necessarily limited to the following:
Monthly review of internally generated reports which may vary in complexity
from a simple scan of transactions to detailed analysis or reconciliation. 63
Policies related to cash which would include preparation of bank
reconciliations, controls over cash disbursements and cash receipts, and
procedures regarding the investment of excess cash on hand.
Purchase and capitalization of foxed asstes and related procedures for
computation of depreciation thereon.
Doubtful accounts and related bad debt write offs.
obligations and related capitalization policies.
Policies related to the recognition of revenue and expenditures with particular
attention paid to year-end cutoff procedures.
63
63
r63
63
63
Page 16
Page 16
Page 16
Page 16
Page 16
Page 16
Page 16
Page 16
Page 16
The assignment of accounting responsibilities and expenditure approval
procedures. 63 Page 16
Compliance with debt covenants should be reviewed monthly, or
quartedy,depending on the nature of the covenant. This review will provide
greater assurance that the City maintains compliance with its debt agreements 63 Page 16
and/or that defaults are identified q
Signature plates and check signing machine keys should be kept locked at all
times 63 Page 19
Reimbursement claims for the NET Neighborhood Jobs Program should be
prepared and submitted to the appropriate granting agency immediately.
Additionally, procedures should be established to ensure that reimbursement 63 Page 20
claims are submitted in a timely mann
The City should formalize its standards and procedures regarding system
development and modification, as well as standardize those programming and 63 Page 35
analysis issues not currently covered.
A set of comprehensive operating and application system documentation
standards should be developed and implemented by the IT Division. These
standards should specify that documentations shall be written when new and 63 Page 37
changed systems are implemented
F
1
1
1
CIS
I
City ofMiami - Office of Budget 12 of 41 8.22 AM121I51971nitCrosRef
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'
As the City continues the process of updating its software, we recommend that
63
Page 37
source documentation and system flowcharts be maintained.
" • Management should continue to eliminate material due from / to other fund
Page 42
63
balances.
Accounting Division -Should adopt formal closing procedures posting payrolls
immediately after the pay period
63
Tab B/Page 3
Accounting Division -Monthly and year end closing should take place on a
!:..
speedier basis
63
Tab B/Page 3
Accounting Division -High level accounting reports should be distributed to
management personnel
63
Tab B/Page 3
'
Accounting Division -A total solution for the City vs. A point solution for
departments should be developed based on a determination of Citywide
63
Tab B/Page 3
requirements (Kronos System)
:. Budget Management Division -Grant Administration and grant reimbursement
processing is not uniform throughout the City
63
Tab B/Page 4
Budget Management Division-CIP contracts should have funding codes
identified and approved by Budget prior to award
63
Tab B/Page 4
Health Insurance Task Force -The plan administrator should have the
responsibility for conducting a performance audit semi-annually on terms and
63
TabE/Page 4
conditions of ASO contracts
Health Insurance Task Force -Management skills are needed to recover some
TabE/Page 5
63
1
unnecessary expenses involving subrogation and coordination of benefits
Health Insurance Task Form -An audit, review and control function is needed
" for health care claims management
63
TabE/Page 5
Health Insurance Task Force -A method is needed to recover unnecessary tax
expenses such as those found in flexible spending accounts, pre-tax benefit
63
TabE/Page 5
w plans and possibly in retiree health care
Health Insurance Task Force -The self -insured plan must be run like an
insurance company with proper current funding and adequate insurance
63
TabE/Page 5
coverage and reserves
4
Health Insurance Task Force -Employee contributions need to be deposited int
63
TabE/Page 5
a trust account immediately or deposited with the carrier or risk bearing agency
Health Insurance Task Force -Look into paying lower administrative fees for
r- larger supplies of medications
63
TabE/Page 6
m
Health Insurance Task Force -Look at utilizing the services of a Pharmacy
Benefit Manager to control prescription costs
63
TabE/Page 6
Health Insurance Task Force -Need to look at coordinating medical payments
with Workers Compensation where appropriate
63
TabE/Page 6
tCity of Miami - Office of Budget 13 of 41 8.22 AM121151971nitCrosRef
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Management and Productivity Initiatives
Risk Management Department Review -Perform cost/benefit analysis to
determine if the deductible on the property policy provides the City ultimate I 63 I I ITabF/Page 6
cost.effectiveness
Risk Management Department Review -Should consider a cost benefit analysis
for purchasing excess liability insurance coverage for those losses that are not 63 TabF/Page 6
limited by a sovereign immunity doctrine
Risk Management Department Review -Re -open the RFP process in 63 TabF/Page 7
accordance with Resolution 95-393 to outsource the risk management function
Risk Management Department Review -Should hire an independent risk
management consultant to select the appropriate vendor under the RFP
process it the Insurance Committee is not reestablished
Risk Management Department Review -Should consider changing the
insurance broker's compensation to a fixed fee for services rendered
63 1TabF /Page 7
63 TabF/Page $
Debt Restructuring -City should immediately establish segregated Debt Service
Funds to be held by outside trustees and not to be included within the City's 63 TabG/Page 1
pooled cash
Debt Restructuring -Concerned that at least $1.5 million in debt service has not
been properly provided for since it is funded from the Internal Service Fund
63
TabG/Page 1
which currently operates at a deficit
Debt Restructuring -The City has not appropriately funded the Debt Service
Funds in accordance with the legal documents
63
TabG/Page 1
Debt Restructuring -The use of cash in the Debt Service Funds in the first half
of this year without achieving a balanced budget, could result in the City's
63
TabG/Page 2
defaulting on its debt obligations later this year
Debt Restructuring -Need to segregate the non -general obligation debt service
fund outside of the pooled cash
63
TabG/Page 2
Debt Restructuring -The Utility Service Tax funds, as collected on a monthly
TabG/Page 2
63
basis, should be deposited on a pro rate basis to the appropriate funds
Debt Restructuring -The debt service component received in the advance
payment from the State should be segregated in the debt service fund outside I 63 I I ITabG/Page 3
of the pooled cash account
Debt Restructuring -Three transactions of the City's outstanding bond issues
could be restructured or refinanced which could provide present value savings 63 TabG/Page 3
and be available to fund current year projects
Debt Restructuring -Identified several general obligation issues which could be
restructured at no cost to the City to reduce debt service over the next few 63 TabG/Page 3
years
Debt Restructuring -City Manager should appoint someone, preferably the
Finance Director, to establish a recurring reporting practice to such entities
the progress the City is making in adoption and implementation of its reco
new
0 of
tery
63
TabG/Page 4
City ofMiami - Office of Budget 14 of 41 8.22 AM121151971nitCrosRef
FinanciaVBudgetary Analysis -Pension expense for 1996 currently reflected in
the Trust and Agency Fund should more appropriately be reflected in the
63
TabH/Page 3
..
current fund where other employee expenses are reported
Financial/Budgetary Analysis -Analysis of the proper inter -fund transfer activity,
r '
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
63
TabH/Page 3
,funds
FinanciaVBudgetary Analysis -Recommend an analysis be made for each major
revenue category
63
TabH/Page 4
M
FinanciaVBudgetary Analysis -Some process should be developed to minimize
or eliminate false billings in the revenue collection programs
63
TabH/Page 4
FinanciaVBudgetary Analysis -City may want to consider the introduction of an
amnesty period followed by more vigilant enforcement and/or use of outside
63
TabH/Page 4
f
r collection agency
Financial/Budgetary Analysis -Discipline is called for in an environment of
spending pooled cash which included high level approval plus plans/projections
fi3
TabH/Page 5
for subsequent repayment or correction
FinanciaUBudgetary Analysis -Recommendations for future financial
management initiatives should include the timely ongoing use of monthly
63
TabH/Page 5
reports showing the comparison of budget versus actual results
Establish and implement plan to improve the City's credit rating and entry into
64
the bond markets.
Establish the goal of developing an uncommitted General Fund Balance
consistent with an investment grade bond rating (e.g. five percent or more of
65
. , the annual operating budget) over a five-year period.
Adopt a written "Debt Management Policy" including the following critical
66
elements:
The City should not issue debt obligations or use debt proceeds to finance
66a
current operations.
The City should utilize debt obligations only for capital improvement projects
that cannot be funded from current revenue sources or when it is better to
66b
finance the project over its useful life.
The City should issue debt obligations for refinancing existing debt only if
financially advantageous or necessary to release existing bond covenants.
66c
"
z„
Pension Review Task Force -City may wish to investigate possibility of issuing
'
Pension Obligation Bonds to eliminate unfunded liability in the GESE Plan
66c
TabC/Page 1
The City should measure the impact of debt service requirements on single
year, five, ten and twenty year periods.
66d
1 City ojMiami - Office of Budgei 15 of 4l 8:11 AM11/15197lnitCrosRej
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Management and Productivity Initiatives
Establish a Finance Committee of local business and community members to
serve with the City Mgr.to review and make recomm. re: the issuance of debt
obligations and the mgmnt. of outstanding debt and monitor adherence to debt 67
policies and procedures
Determine all administrative implications of the Fire Assessment Fee as
quickly as possible in order to identify the impact of potential problems and _ 68
disruptions to cash flow.
The Finance Department should identify each existing and/or potential revenue
source and document all of the relevant information about it 69
Compare the above information with that of other municipalities to determine
the most effective manner in which to maximize revenue and cash flow. 69a
Evaluate centralization versus decentralization and cost benefit analysis of
making changes to, existing systems (e.g. staffing, technology). 69b
Centralize similar billing and collection activities to the extent practical.. . I 69c
Performance criteria should be established. The City Manager should receive
a summary report of billing, collections, receivables and measurements of 70
performance no less than monthly.
City management should immediately review and address all interdepartmental
issues created from more than one department overseeing various aspects of 71
billings and collections.
The City should pursue more diligent collection efforts in Emergency Medical
Service Transport fee. 72
The Internal Audit group should perform surprise checks of potential revenue
sources as a warning to less honest employees that the City is serious about 73
preventing misappropriation of funds.
Increase the formal bid advertising requirement limit of $4,500 in City Charter
to $10,000 or $15,000. 74 .
Streamline procedures for smaller purchases (e.g. authorizing use of
procurement cards, delegating purchase of smaller items to user departments, 75
making greater use of cooperative purchasing agreements).
City ofliami - Office of Budget 16 of 41 8: 22 AM1211"71nitCrosRej
I
Improve use of technology in the procurement function. Fully train
departmental personnel in effective use of all technology tools.
77
R Consider removing all language in City Charter and Code regarding
•• procurement, other than formal bid advertising requirement limit, in favor of an
78 '
administratively authorized and implemented Procurement Policy Manual.
Recommendations made by the Procurement Assessment Team appointed by
the Oversight Board in their report dated February 24, 1997, should be
79
considered for eventual implementation.
Suspend or pre-empt the City Charter as it relates to puchasing and remove
Procurement Division references from said documen (i.e., Sections28 and
79
Page 5
29A).
Until such a time as new language can be adopted, the City should operate
under selected portions of Chapter 287, Florida Statutes (F.S.), to be
79
Page 5
determined by legal counsel.
Delegate authority to purchasing manager to approve all acquisitions up to
rJ Category Four under Section 287.017, F.S.
79
Page 5
The City should adopt a new procurement code which emphasizes current
- practices.
79
Page 5
Suspend local preference laws which may limit competition and opportunities
to reduce cost
79
Page 5
Bid limit adjustment to recognized price index.
79
Page 5
Eliminate City Clerk's involvement as it relates to bid openings - this should be
a function of purchasing.
79
Page 5
Update and revise procurement operations manual incorporating revisions to
the City Code.
79
Page 5
The Cityshould shift its focus from smaller dollar purchases to large dollar
P r9
purchases for commodities and goods. Furthermore, the City should delegate
small purchases to user departments while providing adequate safeguards
79
Page 7
which ensure sound fiscal con
e
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
79
Page 7
services by user departments. Incr
17
City of Miami - ice of Budget of 41
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® City of Miami
Management.and Productivity Initiatives
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 79 Page 7
high level in the organizati
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 staffs understanding of 79 Page 8
customer needs with site
Shift staff resources from small dollar purchases to large dollar purchases and
eliminate work that does not add value or is redundant 79 Page 8
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 79 Page 9
procurement purchasing mod
All professional staff must have adequate training on personal PC applications,
including spreadsheets, word processing. Intemet, etc., to improve their
analysis and decision- making ability. City-wide departmental training on 79 Page 9
financial and procurement
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 79 Page 10
customers.
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 79 Page 10
with procurement training (includin
The City should establish stem sanctions for personnel who violate
procurement policies. The City should inform major vendors of personnel who
can act as buying agents on behalf of the City. All personnel should be trained 79 Page 7
on procurement policies..
Procurement Management Division -In depth evaluation of multiple functions
assigned to Procurement 79 Tab B/Page 4
Procurement Management Division -Practices should be evaluated to ensure a
competitive process occurs when procuring large dollar services 79 Tab B/Page 5
Procurement Management Division -All contracting should flow through the
Procurement Division 79 Tab B/Page 5
Procurement Management Division -To ensure purchasing procedures are not
bypassed controls over the use of "direct' purchases should be vigorously I 79 I I J
Tab B/Page 5
enforced
Procurement Management Division -A formal training program needs to be
adopted 79 Tab B/Page 5
Practices -Restructure procedures for bidding/selecting contractors 79 TabM/Page 4
City of Miami -Ofce ofBudger 18 of41 8:22AM121151971nirCrosRef
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® City, Miami
Management and Productivity Initiatives
Establish Audit Committee of private citizens which meets regularly throughout
the year. Potential candidates should include experienced accountants,
bankers, financial and insurance executives and persons of similar 80
backgrounds
Critical Success Factors -'Establish Audit Advisory Committee to review work of
Internal Audit department 80 Tab B/Page 2
Audit Advisory Committee -The Audit Committee should be expanded to
include a City Commission member as a non -voting member 80 Tab B/Page 8
Advisory Committee -The Director of Internal Audit should be an integral
ipant in Audit Committee meetings 80 Tab 6/Page 8
Audit Advisory Committee -Meetings should be conducted quarterly, at a
minimum
Require Audit Committee to meet with the external auditors at least twice
during the year.
Enact changes to the City Charter/Code to reflect the nature, purpose and
composition of the Audit Committee.
Internal Audit -The City code requires significant revision to bring about the
recommendations outlined
80 Tab B/Page 8
81
82
82 Tab B/Page 7
Audit Advisory Committee -The City Code should more specifically delineate
Audit Committee composition in order to provide representation from varied 82 Tab B/Page 8
business backgrounds
Implement a formal policy for selection of external auditors to be executed by
the Audit Committee. The Audit Committee should also oversee the evaluation 83
of the performance of the external audit team on an annual basis.
Implement a formal policy for the maximum length of external audit contracts. 84
As part of the Audit Committee's duties, they should review the scope of the
external auditor's approach while the audit planning is in progress and review 85
the results of the audit upon completion.
The Audit Committee should also monitor other services provided by the
external auditors to ensure that a proper level of independence is maintained. 86
Reorganize the Internal Audit Department to report directly to the Audit
Committee. 87
Internal Audit -Audit function should have dual reporting to the City Manager
and to the Audit Advisory Committee 87 Tab B/Page 6
Internal Audit -The audit plan should be reviewed by the Audit Committee to
ensure it is balanced 87 Tab B/Page 6
City of Miami - Office of Budget 19 of 4l
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Management and Productivity Initiatives
Audit Advisory Committee -The the Audit Committee be
'
roll of should expanded 87
Tab B/Page 8
and clarified to ensure review of both external and internal audit results
The Chairman of the Audit Committee should make an annual report of its
88
activities to the City Commission.
Internal Audit -A summary of audit results and responses should be prepared 88 Tab B/Page 7. '
quarterly and presented to the Audit Committee and the City Commission
Audit Advisory Committee -The Audit Committee should provide a quarterly
report to the City Commission 88 Tab B/Page 8
Audit Advisory Committee -The City Commission should be educated on their 88 Tab B/Page 8
role in reviewing audit results and interacting with the Audit Committee
Hire an experienced CPA with significant exposure to the public sector as
Director of Internal Audit 89
Internal Audit -Should expeditiously hire a Director of Internal Audit with a CPA,
CIA, or CISA 89 Tab B/Page 6
The Director of Intemal Audits should immediately complete an assessment of
the strengths and weaknesses of the Department, services historically 90
provided.
Determine the long-term role of the Intemal Audit Department (e.g. primarily
involved incompliance and internal control issues, assisting external auditors, 91
conducting operational and performance audits, etc.)
Intemal Audit -Staff time spent on non -audit functions should be reviewed, audit
staff work should focus on auditing 91 Tab B/Page 7
A full scope, internal audit function is ultimately recommended. A
determination should be made as to how the function is to be achieved in- 91a
house and/or with contracted services.
Internal Audit should include IT as an area for ongoing review. Review should
include periodic testing of both general controls (organization, physical and
security) and applications controls (processing controls and testing 91a Page 33
procedures).
Program change controls and logical access (data security) should also be
91a Page 33
reviewed.
working papers and detailed IT auditing programs should be
91a
Internal Audit IT reports should be issued to the City Commission on IT audit
findings. 91 a
Test procedures and data should be designed so as to simulate all conditions r-
which will occur under normal processing conditions, including data that
deliberately attempts to violate data validation and control routines. 91a
Page 33
Page 33
Page 38
City afM,ami - Office of Budget 20 of 41 8: 22 AM121151971nitCrosRef
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C
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City of Miami
Management and Productivity Initiatives
Users should be involved in the design of test procedures data.
91a
Page 38
Documentation of testing procedures should include:
Page 38
91a
Speck Objectives of the test.
Page 38
91a
Identification of types of transactions to be tested including transactions which
Page 38
91a
should test all aspects of the new program or program change.
Inspect test results, including reported errors.
Page 38
91a
The actual test results and the comparison to the predicted results.
Page 38
91a
An overall summary, including conclusions.
Page 38
91a
Critical Success Factors -Change Internal Audit's focus to controlling business
risk, including systems
91a
Tab B/Page 2
Intemal Audit -An audit plan should be developed in conjunction with the City
Manager and department heads and should incorporate a risk based approach
91a
Tab B/Page 6
focusing on internal controls and business risks
Intemal Audit -The audit plan should include a greater complement of
performance audits
91a
Tab B/Page 6
Intemal Audit -The audit plan should provide for a sufficient review of systems
security
91a
Tab B/Page.6
Internal Audit -Audit review should be provided to the YEAR 2000 systems
conversion
91a
Tab B/Page 7
Internal Audit -The City Manager as well as the Auditee should receive a copy
of the audit reports
91a
Tab B/Page 7
Decide whether the present staff can provide the services envisioned on a long-
term basis. 92
Internal Audit -Audit staff dispersed in other departments should be identified
and centralized within the department, as appropriate 92 Tab B/Page 7
City should also develop a comprehensive cash flow forecast. 93
Opportunities Task Force -Comprehensive operating and cash flow projections
should be developed for a five year period 93 TabK/Page 3
City should develop a plan to return to fiscal strength, establishing targets for
appropriate fund balance reserves and funding of additional reserves,
addressing employee compensated absences, self ins., capital repl., 94
contingencies and debt repayment
City afMiami - Office of Budget 21 of 41 8:12 AM121151971nitCrosRef
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Management and Productivity Initiatives
Opportunities Task Force -Operating cash reserve should be sufficient to cover
30 to 60 days of operation 94 TabK/Page 2
Opportunities Task Force -Prudent to maintain cash reserves of unfunded self-
insurance liability of not less than 30% t0 50% of outstanding claims 94 TabK/Page 2
The City should develop a detailed forecast of expected short-term cash
payments relating to compensated absences in light of the significant
percentage of the City's workforce currently eligible to retire or expected to be 95
eligible by the year 2000.
City should continue to work to develop and implement operating plans
ensure the City functions at a surplus each year. 96
Opportunities Task Force -Projections should address the future courses of 96 TabK/Page 3
action which will be required for the City to continue as an operating entity
Opportunities Task Force -Steps should be taken to return the solid waste
enterprise fund to profitability 96 TabK/Page 3
Opportunities Task Force -Raise user charges in Solid Waste to an appropriate
amount based on related costs and charges for similar services provided by 96 TabK/Page 4
other South Florida municipalities
Opportunities Task Force -Review level of Solid Waste services provided and
reduce service if appropriate 96 TabK/Page 4
Revenue Options for Consideration -City could, through public hearing,
increase the millage to 10 mills 96 TabK/Page 21
Revenue Options for Consideration -City could levy up to 20% on each non- 96 TabK/Page 21
exclusive franchise granted for garbage collection within the City limits
Revenue Options for Consideration -City, could adopt by ordinance a
telecommunication ordinance levying 7% on intrastate long distance, cellular, 96 TabK/Page 21
page and telegraph service
Revenue Options for Consideration -City could levy up to 10% on water service
within the City limits 96 TabK/Page 21
Revenue Options for Consideration -City could adopt by ordinance a fire
services fee to all property owners within the City limits 96 TabK/Page 21
Revenue Options for Consideration -A rate analysis should be performed on all
Enterprise Fund operations and revised rate schedules should be adopted by
ordinance to recover expense of operations
96
TabK/Page 21
Revenue Options for Consideration -A rate analysis should be performed on
Internal Services Fund operations and revised charge back rates should be
96
TabK/Page 22
adopted to recover expenses of operation
e ,
Revenue Options for Consideration -Suggest City review the annual revenues
'received on mobile homes licenses fees and if revenue is flat or declining
96
TabK/Page 22
establish an enforcement program to increase compliance with the City limits
City of Miami - Office of Budget 22 of 41
8.22 AMJ2/15/97InitCrosRef
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City of Miami
Management and Productivity Initiatives
Revenue Options for Consideration -Suggest an analysis be performed on
miscellaneous fees and charges to update for inflation or increased operating 96 TabUPage 22
expenditures
Revenue Options for Consideration -Suggest City review the allocation of the
Local Option Gas Tax and determine ability to change allocation methodology 96 TabUPage 22
based on population
Revenue Options for Consideration -Adopt ordinance levying road assessment 96 TabUPage 22
fee to property owners within City limits to maintain City roadways
Plan should include the full costs of operating the City, including employee
pensions, compensated absences, self insurance, risk underwriting and other
activities which may require future payments.
Adopt a written enforcement policy with escalating collection efforts based
upon the level of default and time to cure. An in-house or outside collection
effort should be assigned to monitor and enforce this process.
Evaluation of USHUD Funded Loan and Grant Programs -Take immediate
steps to accelerate actions to improve the collection and servicing of
outstanding and in -process loans in a diverse portfolio
96a
97
97 :]TabUPage 3
Evaluation of USHUD Funded Loan and Grant Programs -Take immediate and
more aggressive steps to reprogram its current and unspent prior years 97 TabUPage 30
allocations of CDBG funds to fund other eligible City activities
Evaluation of USHUD Funded Loan and Grant Programs -Recommended that
City provide and commit the necessary resources to pursue full and complete 97 TabUPage 35
receipt of funding reimbursements
Evaluation of USHUD Funded Loan and Grant Programs -Recommended that
City continue to identify pending reimbursement opportunities and aggressively 97 TabUPage 35
pursue the repayment of the funds due
Evaluation of USHUD Funded Loan and Grant Programs -City should 1 97 1 1 jTabUPage 36
vigorously seek funding through the grant programs (see task force report)
Establish a Loan Review Committee comprised of bank officers living or
working in the City of Miami to consider loan applications and bring expertise to
entire credit review process. .
Evaluation of USHUD Funded Loan and Grant Programs -Should take
immediate steps to implement more stringent loan underwriting guidelines and
procedures to reduce future loan losses relative to ongoing new lending
Evaluation of USHUD Funded Loan and Grant Programs -City could
suspend all new lending and reprogram those loan funds and
or recoveries from outstanding loans to the greatest extent
98
98 TabUPage 4
98 1Tabl.(Page 4
1 City of Miami -ice of Budget 23 of 41 8: 21 AM121151971nitCrosRef
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Management and Productivity Initiatives
1
Evaluation of USHUD Funded Loan and Grant Programs -City Commission can
'
reverse its previous approvals and cancel commitments for two Section 108
projects totaling $6,645,184 which have not been submitted to USHUD for 97,98
TabL/Page 4
processing and approval
Consider the sale of defaulted loans to authorized third parties in conjunction
with continued dialogue with entities such as FNMA and HUD. 99
Evaluation of USHUD Funded Loan and Grant Programs -Use of private
collection services should be explored to enhance the effectiveness of loan 99
TabL/Page'3
servicing
Hire a highly qualified, experienced private sector fine as soon as possible, to
assist the City in doing a detailed technology needs assessment and develop a
technology strategic plan.
Information Technology Division (IT) -The IT Division should redefine its
mission in light of the trends in technology development
Hire technology expert to head up a newly created Department of Information
Technology.
individual must provide direction and vision, negotiate effectively with
fors, dose credibility gap by results, be unbiased and objective, and
municate effectively with various constituencies.
Negotiate interim extensions of software licensing agreements with current
vendor to provide for interim system requirements until information technology
needs assessment is completed.
Immediately address those priority issues regarding inter -network
communications and architecture decisions. This can be determined prior to
the completion of the technology strategic plan.
100
100 Tab B/Page 5
101
101a
102
103
Several Information Technology Systems require immediate improvement in
the area of intemal controls. Some of these issues require high priority
attention in order to ensure the continuity of the City's operations in the case of 103 Page 21
unplanned interruptions
Fleet Management Task Force -Implement a complete Management
Information System with a Fleet Management module
Establish internal, cross -departmental Steering Committee to report regularly
to City Manager on policy/budgettmanagement and resource allocation issues
related to technology.
Duties and responsibilites of the committee should be dearly defined in a
formal charter and should include the review and approval for.
Major changes in hardware or software.
103 TabD/Page 4
104
104 Page 30
104 Page 30
City of Miami -ice of Budget 24 of 41 8:12 AM121151971WtCrosRef
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Research and development projects under study.
104
Page 30
The results of any cost / benefit analysis.
Page 30
104
. Software application development or acquisitions.
Page 30
104
Project priorities.
104
Page 30
-
Resource allocation in terms of time, personnel and equipment.
Page 30
104
Controls in effect.
Page 30
104
KConversion
plans.
104
Page 30
?
Emergency procedures, contingency and physical security plans.
104
Page 30
*f
Insurance coverage.
Page 30
104
tl Budgets and plans pertaining to the IT function.
Page 30
104
IT User Group Committees should be established and be responsible for.
Page 32
104
'
Communications between users and the IT Steering Committee,management
and regulatory agencies.
104
Page 32
"m Establishing
user priorities.
104
Page 32
Monthly service requests reporting by application.
Page 32
104
Coordination and apporval of request for IT services.
Page 32
104
Authorization of data file removal from data centers.
Page 32
104
4
Review and apporval of file retentions.
Page 32
104
Coordination between users and IT.
104
Page 32
Maintenance of commonality of system.
Page 32
104
Review and apporval of cost estimates.
Page 32
104
User participation in new system requirements.
Page 32
104
User group Committees must be held accountable for all program, changes
Page 32
104
and requests for IT services from their group.
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'Bltte�tiibi�im ttte
eati�ridaivv is
Tab B/Page 2
104
Critical Success Factors -Establish Information( Systems Steering Committee
Information Technology Division (IT) -A technology Steering Committee should
be established chaired by an Assistant City Manager
104
Tab B/Page 5
Consider having Information Technology report directly to the City Manager to
account for the needs of all City operations and to more effectively resolve
105
issues related to technology.
Information Technology Division (IT) -Recommended that IT should report to
the City Manager's Office
105
Tab B/Page 5
After needs assessment is completed, develop comprehensive Information
Technology System (potential estimated capital budget requirement is in the
$30 - $40 million range over 3 -5 years). Cost savings in productivity and
106
efficiency will result from a
Opportunities Task Force -Steps should be taken immediately to implement
procedures, upgrade systems and provide adequate professional staff to
improve the timelines and integrity of the City's financial and management 106 ' TabK/Page 3
information
City should develop a five year strategic IT plan that is based on the City's Five
Year Plan. This plan should be a working document that addresses key issues
such as hardware, software, applications development, communications, 106 Page 22
emergency procedures and c
Infonmation Technology Division (IT) -Funding needs to identified and reserves
need to be built to complete the network infrastructure for Police and Fire and 106 Tab B/Page 5
replace PC's
Approach potential teaming partners in both the public and private sectors to
develop different information systems and cost -sharing approaches. A natural
partner might be Metro -Dade County and local Universities. 107
Seek a private firm to simulate the Year 2000 and provide a test bed for all City
Systems to insure that Year 2000 corrections being made will indeed solve all 108
related issues.
The IT Division should review its staffing to assess whether it has the required
experienced personnel resources to complete the project available without 108 Page 23
cutting other required system development and maintenance.
Information Technology Division (IT) -A plan needs to be devised and funded to
complete the task of making City systems Year, 2000 compliant 108 Tab B/Page 5
Give highest priority to developing and testing an adequate disaster recovery /
business continuity and data security plan. 109
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„A comprehensive business continuity plan should be developed, documented
and periodically tested to ensure continuity in the City's business functions, as
needed, after a loss if IT services in the event of a disaster. Plan focus should
109
Page 26
be as follows:
Limit economic loss in case of an unplanned interruption.
109
Page 26
Minimize disruption to key service/business functions.
Page 26
109
Maximize awareness of the City's fiduciary responsibility adopting a "due care”
mentality.
Page 26
109
Analyze the citizen/business community awareness implications of extended
Page 26
109
service interruption.
Determine exposure and design preventable measures.
109
Page 26
4 Determine recovery and restoration needs and facilitate that recovery and
w ' . restoration.
109
Page 26
City should develop and implement adequate plan maintenance procedures
which involve representatives from each of the critical business areas.
' Otherwise, contingency plan will become outdated and, thus, of little use in the
109
Page 27
event of a disasaster.
Reciprocal agreements are not a viable alternative for supporting critical IT
operations during unplanned interruptions. Other alternatives should be
explored such as hot sites, mobile operations facilities, internal backup and so
109
Page 28
forth.
City should develop specific testing procedures for its Disaster Recovery Plan.
Each test of the plan should be monitored by an external observer with an
independent assessment made and reported back to Senior Management and
109
Page 29
the City Commission.
The City should develop and publicize a data security policy, as well as
standards and procedures for data security administration. Password
109
Page 39
administration procedures should be formalized.
Management should develop and implement a formal vehicle to communicate
any personnel changes to security.
109
Page 40
`Information Technology Division (IT) -IT must govern security issues which
should not be overridden by departments
109
Tab B/Page 5
Information Technology Division (IT) -A comprehensive disaster recovery plan
should be developed addressing PC networks and the mainframe
109
Tab B/Page 5
Information Technology Division (IT) -Backup procedures should be developed
N 1- for the PC systems
109
Tab B/Page 5
� ,
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Management and Productivity Initiatives
Emphasize training of all Department of Information Technology Staff.
Information Technology Division (IT) -Formal training program should be
adopted for project management and structured methodologies
Develop and implement a plan for Information training for the rest of the City
employees.
In order to reposition the workforce strategically for the future, undertake a
comprehensive job desc.and job class review, evaluating Gass to det. whether
they provide the right skill sets and whether they are consistent with the City's
objectives
110
110 Tab B/Page 6
111
112
Critical Success Factors -'Consider deleting "equivalent combination of training
112
Tab B/Page 2
and experience" for professional credentials
Accounting Division -Lack of technically qualified staff in some areas of the
division
112
Tab B/Page 3
Internal Audit -Staff persons with CPA licenses should be.required to meet CPE
requirements
112
:]Tab B/Page 7
Internal Audit -Audit staff positions should be filled with individuals possessing
112
Tab B/Page 7
finance, accounting, audit, EDP and business backgrounds
Internal Audit -Job descriptions should be rewritten to reflect the correct roles
and responsibilities of the staff
112
Tab B/Page 7
Fleet Management Task Force -Determine proper classifications for work
performed and appropriate number of employees
112
TabDlPage 6
Health Insurance Task Force -The plan administrator should be very
knowledgeable in matters involving applicable regulatory compliance 1 112 ' 1 'TabE/Page 4
Operating Practices -Establish the right of managers/directors to hire, promote I 112 f I ITabM/Page 4
and discharge employees based on qualification and job performance
The City should not hold a register of qualified applicants for two years 113
The employee a appeals process under Civil Service Board should be reviewed.
PP
A common solution elsewhere appears to be having a hearing officer handle 114
appeals.
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'
Review training and development skills that are needed to upgrade existing
employee's ability to meet the strategic needs of the City. Once review is
115
completed, commit resources to provide skills development opportunities.
'
Accountingstaff should be required to undergo minimum continued
q r9
professional training each year. training should address technical accounting
and reporting issues, changes, or updates in the City's operations, policies,
procedures and job duties.
115
Page 3
Attending IT auditing conferences, seminars, memberships in professional
'
organizations dedicated to IT auditing should be encouraged on the part of the
City's Internal Audit Staff.
115
Page 33
A formal training program should be developed for each IT employee, which
'
will address methods and techniques required to bring their performance in line
115
Page 34
with the City's objectives.
The first step should be the development of a formal skills and competencies
'
inventory, preferably by means of objective skills assessment tests.
115
Page 34
1
At least one other senior Programmer / Analyst should be trained in LINC
application development, and one additional staff member in LINC Admin. to
provide a backup capability. LINC environment has not taken advantage of 115 Page 34
the new tools as it should have.
Internal Audit -The skill set of audit staff should be broadened and staff should
receive appropriate level of training 115 Tab B/Page 7
Risk Management Department Review -Establish a formal professional
development plan for each of the Department Safety Officers including the use 115 TabF/Page 11
of internal and external resources
Operating Practices -Design and implement a comprehensive employee
training program
Review best practices in City, County and State government in regard to
leadership succession planning and develop its own process of leadership
development, recognizing that 51 % of the current executive workforce will be
eligible for retirement by 1999.
Critical Success Factors -Conduct a comprehensive review of personnel
practices
elimination of the two ter wage system. Market rates should be
.d for all positions and used to set pay grades subject to periodic
Appointments to key City positions must not be made on the basis of favoritism
or political sponsorship and loyalty.
115 TabM/Page 4
116
116 Tab B/Page 2
117
118
Operating Practices -Remove "politics" from the employee hiring and promotion
process 118 TabM/Page 4
City leadership must foster an environment that respects and values the
contributions of personnel at all levels. 119
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Management and Productivity Initiatives
Unit Certification Issued by PERC as to each bargaining unit to
ne which positions were included in the unit 120
Advise each union that as to those positions that are not part of the certified
)argaining unit it is not the authorized representative. 121
Modify the Civil Service Rules to: 122
Extend the list of positions which are unclassified to include managerial and 122a
confidential.
Reestablish Managerial and Confidential Employees 122a Tab 7/Page 3
Remove the limitation of the five unclassified employees in one department 122b
Submit a proposal to the Commission/Oversight Board of the City to contract
with a claims handling organization such as Third Party Administrator, or
"engage" licensed temporary claims representatives to perform a project 123
oriented "Claims Blitz".
Risk Management Department Review -The City should request a proposal for
third party administrative handling services 723 TabF/Page 5
Claims Blitz to be designed to close as many inactive claims as possible, settle
or resolve as many pending claims as possible and establish diary dates for 123a
claims adjuster review.
Augment existing in-house legal resources on a short term basis by
establishing a relationship with outside law firm (s) that specializes in worker's 124
compensation defense to handle, all "claims blitz".
Health Insurance Task Force -Implement a strong subrogation clause and
employ a law firth to protect those interests, paying their fees from moneys 124 TabE/Page 6
which are recovered
Related litigation and settlement agreements under the supervision of the City
124a
Attorney.
Evaluate the need for and hire additional staff needed to perform claims
handling in accordance to best practices after the claims blitz has been 125
completed. Train new staff.
Create and adopt claims handling procedures that reflect best practices.
Enforce strict compliance to these procedures. 126
Health Insurance Task Force Worker's Compensation payments should be
integrated and coordinated with health care 126 TabE/Page 3
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Health Insurance Task Force -Each health care carrier should produce a claims
analysis and reviewed semi-annually be Benefits and Finance staff 126 FabE/Page 3
Health Insurance Task Force -A claims and financial analysis should be
reviewed annually by Benefits, Finance, Human Resources/Labor Relations 126 ]TabE/Page 3
and the City attorney
Health Insurance Task Force -Should perform a quarterly reconciliation and
accounting of prescriptions against the administrative fee 126 1TabE/Page 3
Risk Management Department Review -The City should utilize "best practices"
claims management procedures for the handling of all claims 126 TabF/Page 2
Management Department Review -Should establish a committee of
duals representing claims, legal and finance to meet monthly to discuss al 126 TabF/Page 4
is reserved over various levels
Risk Management Department Review -City Commission should consider
raising the dollar level of claims that need to come before the Commission for 126 TabF/Page 5
approval
Review and if necessary change job description and background prerequisites
for claims adjusters and claims supervisors handling worker's compensation
claims to reflect the complexity of the work and skills. 127
Elevate the reporting relationship of the functional leadership of the Safety
Department 128
Risk Management Department Review -City should re-evaluate the reporting
hierarchy for the Safety Department I 128 I I ITabF/Page 8
Risk Management Department Review -Fully implement LMP 1-95 (City Wide
Safety Committee) I 128 I I ITabF/Page 9
Risk Management Department Review -Fill the Police Department Safety
Coordinator position within the next 30 days 128 TabF/Page 9
Risk Management Department Review -Identify the roles and responsibilities of 128 TabF/Page 9
all City management as it relates to safety and hold them accountable
Risk Management Department Review -Complete an assessment of each City
Department's safety and health program using the OSHA Program Evaluation 128 TabF/Page 10
Profile
Appoint an evaluation committee to perform an interim review of the
effectiveness of vendor selected to implement the managed care arrangement 129
the City of Miami and the program.
Health Insurance Task Force -Reevaluate the executive plan which provides no
incentive for managed care election by the executive 129 TabFJPage 6
ICity ofAflami -ice of Budget 31 of 41 8: 21 AM121151971nitCrosRej
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Management and Productivity Initiatives
Risk Management Department Review -By December 1, 1996 a 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 129 TabF/Page 2
January 1, 1997
Group Benefits and the Human Resources / labor Relations Department§
should all report to the same ACM. 130
Health Insurance Task Force -The Benefits Department should be part of the
Human Resources Department or Labor Relations Office 130 TabE/Page 3
Health Insurance Task Force -The Benefits Department should be part of the
Human Resources Department or Labor Relations Office 130 TabE/Page 3
Health Insurance Task Force -One person should be designated in writing as
plan administrator 130 TabE/Page 4
The City should immediately employ an insurance Benefits consultant to be on
hand for development of pricing and Benefits models for insurance Benefits 131
Health Insurance Task Force -An insurance broker should be available to the
management negotiating team to provide actuarial analyses
131
TabE/Page 3
Health Insurance Task Force -Multiple year health care carrier contracts should
be negotiated and re -negotiated not less than every two years
131
TabE/Page 4
Health Insurance Task Force -The Benefits Office should have the services of a
an insurance broker available for use upon demand
131
TabE/Page 4
Health Insurance Task Force -Authority to negotiate any type of benefit plan to
contract with an insurance carrier should
131
TabE/Page 4
Health Insurance Task Force-Attomey and Chief Financial Officer before
incurring obligation 131 TabE/Page 4
Health Insurance Task Force -Should explore the possibility of contracting for
some benefits utilizing the combined leveraging ability of multiple local 131 TabE/Page 4
communities
Health Insurance Task Force -A strong subrogation clause should be
established and enforced within the health care plan 131 TabE/Page 4
Health Insurance Task Force -Cost containment incentives for third party
administrator or health care contractor should be added to the contract
Health Insurance Task Force -Wire transfer procedures should be examined
semi-annually and transfer accounts should be continuously audited for
accuracy
Health Insurance Task Force -A survey of all benefits should be conducted not
less than every two years to determine the competitive position of the total
benefits package
131 TabE/Page 4
131 TabE/Page 4
131 TabE/Page 4
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Management and Productivity Initiatives
Health Insurance Task Force -Should periodically evaluate the difference
between self insurance and commercial insurance to determine if advantages 131 TabEfPage 4
lie in changes
Health Insurance Task Force -May want to consider offering, on a voluntary 131 TabElPage 5
(employee pay all) basis, supplemental life and disability insurance
Health Insurance Task Force -Reevaluate the proportional cost for health care
bome by the City where retirees are concerned 131 TabElPage 6
TabE/Page 6
Health Insurance Task Force -Should expand flexible benefits and avoid paying
the employer portion of taxes on earnings 131 TabE/Page 6
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 through purchasing
Summary plan descriptions should be updated and distributed timely.
131 TabE/Page 6
132
Health Insurance Task Force -A Summary Plan Description of all benefits
should be prepared and distributed to each plan. member with all terms and 132 TabE/Page 3
conditions dearly spelled out
Engage a private employee Benefits communications and enrollment firm to
take over the responsibility of annual communications and enrollment of all 133
core and voluntary Benefits.
Health Insurance Task Force -The benefits program needs a formal delivery
system 133 TabE1Page 5
The City should receive a detailed actuarial report identifying the correct
current daims loss reserve for the medical plan and then incorporate a plan for
achieving that reserve within five years.
Health Insurance Task Force -The benefits program needs coordination to
arrest and control costs
The City should not negotiate any agreement wherein it both relinquishes
control and guarantees performance at the same time, such as in the current
F.O.P. medical plan agreement regarding the reserves -Must not be tied to
"Prevailing Benefits" clause.
Retain the management right to subcontract or privatize any and all aspects of
job functions without further bargaining over decision. Bargaining shall be only
over impact of decision.
134
134 TabE[Page 5
135
136
Fleet Management Task Force-Outsource all or part of fleet services through
either the private sector or Metro 136 TabD/Page 3
Eliminate all "Prevailing Benefits" clauses. 137
ICity ofMiamf - Office of Budget 33 of 4l 8: 22 AM121151971nitCrosRej
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Management and Productivity Initiatives
Eliminate five percent increase in salary, and hence all accrued benefits, on 138
retirement.
Eliminate Union control or veto of any City -funded programs. 139
Eliminate all City -subsidized payment of time used for Union business,
including "time pool," release to work, negotiations, grievance investigations, 140
etc.
Centralize all communications with the Unions through Labor Relations Officer.
This includes grievances, work peace issues, concerns, etc. 141
Prohibit.any department, including Fire Department, from entering into "side"
agreements under the Collective Bargaining Agreements. 142
Cost out the total financial package under the agreement to determine the
actual "wages" paid. 143
Fleet Management Task Force -Terminate the current Police take-home policy 143 TabD/Page 1
Health Insurance Task Force -The chief benefits officer should participate in
some form with Union negotiations where benefits are involved 143 TabE/Page 3
Risk Management Department Review -The City should conduct an immediate
review of all labor agreements to identify cost savings 143 TabF/Page 2
Retain management right to make decisions required to operate and limit
bargaining to impact only. 144
itinue the Labor -Management Committee meetings in which the Union and
Administration can discuss specific issues and ideas on an ongoing 145
Dgue with the City.
Operating Practices- Develop a system to improve internal communications
(staff meetings, employee interaction meetings) 145 TabM/Page 3
Institute a "Suggestion Bo)' for employees; consider incentives programs. 146
Review current fire inspection fee collection procedures. 147
Establish dear guidelines and procedures for department heads to follow in
their daily labor-management relations with representatives of the unions. 148
Recognize the importance of the Office of the Labor Relations as the
institutional manager of labor management relations at the City of Miami. 149
Increase frequency of communications between employees and City
150
City ofMlami -ice of Budget 34 of 41 8:22 AM12/15/971nitCrosRef
City of Miami •
Management and Productivity Initiatives
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Establish a capital assets management policy, similar to the following: (In
seeking to maximize the City's return from its current and future asset portfolio,
153
the City will aggressively manage these assets)
Fleet Management Task Force -Review remaining individual vehicle assignme
and vehicle take home policies
153
TabD/Page 3
'
Fleet Management Task Force -Work with using agencies to determine fleet
size and composition necessary to perform departmental functions
153
7]TabDIPage
5
Fleet Management Task Force -Evaluate and establish a motorpool, where
applicable
153
TabD/Page 7
Fleet Management Task Force -Implement a vehicle replacement/disposal
]TabD/Page
7
153
program using proceeds from sale of vehicles to offset new vehicle purchases
Operating Practices -Establish a preventive maintenance program for park
tfacilities
and equipment
153
TabM/Page 3
' Operating Practices -Consider maintenance costs and other operating costs
prior to the approval of Capital Improvement Projects
153
TabM/Page 3
Maximizing the City's return will include pursuing alt. ownership/mgmnt
strategies, which optimize the benefits of private ownership (tax revenue
streams and elim.public costs associated with ownership), while meeting the
153a
'
City's public policy objectives.
Coconut Grove Convention Center Increases -Coconut Grove Convention
Center Increases
153a
TabK/Page 18
'
Coconut Grove Convention Center Increases -Increase the CGCC sold out lot
from $800/day to $1500/day
153a
TabK(Page 18
'
Coconut Grove Convention Center Increases -Add a move-in/move-out rate for
g
CGCC
153a
TabK/Page 18
Coconut Grove Convention Center Increases4ncrease the minimum rental
guarantees to $2000 per hall or charge a flat fee for usage of the halls
153a
TabK/Page 18
eliminating the option of a minimum or net rate
Review of Marina Rate Increases -Recommend increasing rate for sightseeing
'
vessels from $.40 If to $.80 If
153a
TabK/Page 19
City of Miami - Office of Budget 35 of 41 8: 22 AM121151971niiCrosRej
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Management and Productivity Initiatives
Review of Marina Rate Increases -Recommend increasing rate for commercial
vessels comparable to the County 153a TabK/Page 19
Review of Marina Rate Increases -Recommend elimination of the 20% discount
to City residents 153a TabK/Page 19
The City should evaluate various levels of asset privatization for all new capital
projects as it plans, builds, or acquires additional public facilities and assets. 154
The City will manage its existing portfolio by selling or donating non -buildable
parcels; "packaging" and marketing properties; "packaging" properties for
future use; reviewing alternative ownership/management options. 155
Complete the Inventory of all City owned and leased property. 156
Opportunities Task Force -Should compile a complete inventory of all real
estate parcels owned by the City, including location, description, current use, 166 TabK/Page 4
etc.
Opportunities Task Force -Parcels should be categorized according to their use,
i.e., city operations, leased to third party, vacant, etc. 156 TabK/Page 4
Document current condition of all properties (e.g. brief description, digital 157
pictures).
Prioritize properties identified for sale or lease and establish potential market 156
value through assessment and/or appraisal.
Establish future property tax potential. 169
Add the following info. to the property inventory spreadsheet: book value,
assessed value/date, appraised valueldate, potential annual property tax base
based on current/future use, annual maintenance cost, surplus status. 160
Plus targeted disposal year, projected future use, and parcels designed as
parks and recreation, public space.
Develop Annual Property Plan that supports the proposed City Asset 161
Management Policy.
Opportunities Task Force -Analysis should be performed for each parcel of 161 TabK/Page 4
lease property to determine certain factors (see task force report for factors)
hies Task Force -Parcels currently used by the City should be
to determine certain factors (see task force report for factors) 161 TabK/Page 5
)portunities Task Force -An analysis of surplus parcels should be performed
determine certain factors (see task force report for factors) 161 TabK/Page 5
City ofMiami - Office ofBudget 36 of 4l 8.22 AM121151971nitCrosRef
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Management and Productivity Initiatives
Opportunities Task Force -Should consider selling the Miami properties to one
of the lessees or another third party
161
TabK/Page 6
Sale of City Assets -All city property offered for sale should be reviewed by the
'
Law Department
161
TabK/Page 14
M Sale of City Assets -Original funding source utilized to acquire and improve city
owned property needs to be identified and analyzed All city property offered for
161
TabK/Page 14
sale should be reviewed by the Law Department
Sale of City Assets -Review all City Parks and evaluate the ability to provide a
consolidated neighborhood park system, selling any non -essential and non-
I
161
j
TabK/Page 14
restricted park land
Sale of City Assets -Evaluate the transfer of small neighborhood parks to
Neighborhood associations
161
:]TabK/Page
14
Sale of City Assets -Sell various identified properties (see task force report for
spec listing of properties)
161
TabK/Page 14
Sale of City Assets -If properties are sold to governmental agencies City should
negotiate a voluntary annual payment in lieu of taxes (PIOLT) fee in connection
161
TabK/Page 15
with such sales transaction
Revenue Enhancements -Sell inappropriate park properties (or revert them to
original donors)
161
TabWPage 3
'
All City Departments should develop and obtain approval long range plans for
the propertiestfacilities under their responsibility.
162
Each City Department should prioritize its properties ffacilities based on their
Departments Strategic Plan.
163
The Department of Planning and Development should conduct market studies
to determine how the surplus properties should be disposed and
164
recommendations included in the Property Plan.
Determine all cost associated with the disposition of properties, including but
not limited to appraisal, advertising, administration and referendum cost.
165
The Annual Property Plan should include a summary of the following
information: Properties to be sold, properties to be leased. leases due to 166
1 = renewal, tax impact, cost of maintaining.
1 Evaluate and implement measures to utilize public parks and recreation
167
facilities to better generate revenue.
rR Review park and ticket surcharges; increase special event rentals and fees;
consider installing vending machines in public parks and facilities; strict
guidelines for fee waivers; institute fee for use of public boat ramp.
1 City of Miami - Office of Budger 37 of 41 8:22 AM1211"71nitCrosRef
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Management and Productivity Initiatives
One department should be responsible for and adequately funded for the
maintenance and facility operations of all improved City properties.
Consolidate all property management / maintenance functions under GSA. 168
Transfer the property maintenance individual currently in the Department of
Planning and Development to the GSA Department. 169
Develop maintenance standards according to property type. 170
Establish a periodic maintenance program for city owned properties including_
vacant lots. 171
Analyze current property maintenance needs and integrate into maintenance
plan and budget 172
Adopt space/office standards that would apply to all departments. Establish
standards for office use and allocation. 173
To assure that the maximum sales or lease revenues realized from properties
targeted for sale, priority must be given to repairs and maintenance of these 174
facilities.
Establish a fund for preparing properties for sale in annual budget. 176
Complete inventory of rental property that provides the following information. 176
Potential market rate for each rental property. 176a
Current monthly rental rate. 176b
Lease expiration. 176c
Forecast future revenue by utilizing current revenue figures and property 176d
appraisals.
Plan to re -negotiate rental rates / terns prior to expiration of leases.
Determine future rent increases based on potential land value and use. 177
Annually review the inventory to assure that the city is maximizing its return on
rental properties as per Annual Property plan. 176
Develop a standard lease terms outline in conjunction with the City attorney
that will best protect the City's interests as a guideline for future lease 179
renewals.
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Management and Productivity Initiatives
Establish and enforce a policy that the Department of Community Planning and
Development must approve all lease proposals and property. purchases. 180
Move the collection and tracking of lease payments to the Community Planning
and Development Department. Integrate rental revenue information in the 181
financial system.
rt an active campaign to identify delinquent tenants and bill for past rent
t. Develop and enforce a policy for late payment which includes provisions 182
late charges and eviction.
size the City Manager's Real Estate Advisory Group of private industry
;sionals who are knowledgeable in the area of real estate to review the 183
leases and provide advice on leasing practices as needed.
Develop RFP for real estate brokerage services. The RFP should assure that
rental properties. receive maximum marketing exposure. 184
Advertise rental properties on the government cable access channel. 185
Responsibility for environmental compliance at City operated properties should
be consolidated into a single department. 186
The City's Leases need to be revised to better protect City's liability associated
with tenant activities which may result in soil and ground water contamination. 187
The City needs to establish a policy of environmental compliance on all of its
properties and a program of annual operational audits to ensure such 188
compliance.
Fleet Management Task Force -A complete review needs to be performed to
determine DERM and OSHA noncompliance areas 188 TabD/Page 7
Environmental audits being prepared for the sale of surplus property should at
a minimum, conform to ASTME 1527-97 and should address other issues
which may be relevant to the property being sold such as radon, asbestos etc. 189
City of Miami - Office of Budget
39 of 4l
8:22 AM12/151971nirCrosRef
City of Miami
Management and Productivity Initiatives
Eliminate the three (3) bid requirement for any sales or lease of properties less
than $500,000 and all leases with terms of less than five (5) years. These 200c
would not need to go to the Commission.
Revise water front property section in Charter to establish reasonable
thresholds so that small parcels do not need to go to the Commission for 200d
approval.
City of Miami -ice of Budget 41 of 41 8: 22 AM12115/971nitCrosRef
APPENDIX B
RECOMMENDATIONS
TIMELINE &
COST
SUMMARY
Strategic Management
Financial Management
Technology
Human Resources and Employee Benefits
Capital Assets, Planning and Management
GRAND TOTAL
SUMMARY
City of Miami
Management and Productivity Initiatives
$ 2,060,619 $ 2,856,925 $ 2,777,693 $ 2,853,490 $ 2,933,483 $ 13,482,210 0
$ 1,351,135
$ 1,363,783
$
1,364,153
$ 1,373,308
$ 1,373,176
$ 6,825,555
$ 2,175,000
$ 3,230,000
$
2,455,000
$ 2,475,000
$ 2,465,000
$ 12,790,000
$ 266,042
$ 15,042
$
342,042
$ 12,042
$ 12,042
$ 647,210
$ 1,566,000
$ 985,000
$
710,000
$ 650,000
$ 650,000
$ 4,561,000
$ 7,418,796
$ 8,450,750
$
7,648,888
$ 7,363,840
$ 7,423,701
$ 38,305,975
Resources to be identified for Management and Productivity Initiatives
Strategic Management $ - $ - $ - $ - $ - $ -
Financial Management _ _ - $
Technology 2,000,000 3,060,000 2,410,000 2,410,000 2,410,000 $ 12,290,000
Human Resources and Employee Benefits - 300,000 - - $ 300,000
Capital Assets, Planning and Management 760,000 335,000 60,000 - - $ 1,155,000
GRAND TOTAL $ 2,760,000 $ 3,395,000 $ 2,770,000 $ 2,410,000 $ 2,410,000 $ 13,745,000
Formal strategic planning should be immediately reinstated as part of
the City of Miami's organizational structure. Develop the structure and
process to sustain long-range strategic planning for the City.
The City should 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).
Engage a professional firm with expertise in strategic planning to
facilitate and expedite the completion of the first strategic plan for the
City.
Risk Management Department Review -Develop an overall safety &
health strategic plan for the City as well as for each Department
Upon completion of the strategic plan, develop and execute a
communication strategy targeted to residents, City employees,
government,,the business community, media and location services.
Institute a forum for resolving resource allocation issues to align all
major projects within the City's strategies.
Revamp the City's budgeting process to match the revised organization
structures cited in the organization plan. The tracking processes should
be flexible enough to facilitate sourcing decisions and management
performance.
Critical Success Factors -Limited monitoring of departmental budgets
City of Miami
Management and Productivity Initiatives
x
x
$
X
X
$
$
X
X $ 100,000
$
100,000
X X
X X X X
$
X•
X
$
X
$
Strategic Planning Total
$ 100,000 $ $
$ $ $
100,000
X $
X $
Set capital and operating budget horizons to be consistent with strategic
goals.
Incorporate contingency planning into budgets
Require managers to demonstrate how proposed projects are in line
with the Cilys strategic plan. This can be done in the form of a
cost/benefit analysis that measures the expenditure of resources against
the contribution to achieving goals.
Expedite implementation of the City Manager's reorganization plan as
outlined in the revised "Five Year Plan". The City should begin planning
how to adopt a more progressive organization structure.
City of Miami
Management and Productivity Initiatives
x $
X X X X X $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 5.000,000
X X $
Strategic Budgeting Total
Office of Professional Compliance -The Office of Professional We Compliance should be removed from the department not agree
Office of Professional Compliance -Consideration should be given to We do
incorporating this function within the Police Department organization, not agree
reporting directly to the Police Chief
We do
Office of Professional Compliance -A review of other local jurisdictions of not agree
similar size should be conducted to determine, if there is a need for a
separate review function, how it is typically organized
Solid Waste Management -Solid Waste should be separated from GSA
Move aggressively to reestablish an appropriate management structure
from first level supervisor through middle management to department
head.
Survey to determine perceived and actual departmental shortfalls in
staffing. Each department must justify the tasks to be performed that _
cannot be completed at current staff levels.
The City should perform a mgmnt./operations study of the finance dept.
This study should encompass an extensive analysis to evaluate
qualifications and the work loads of the staff to det. need to expand staff
and / or reassign tasks where appropriate.
Critical Success Factors -'Selectively review and waive hiring freeze of
positions Consider deleting 'equivalent combination of training and
experience' for professional credentials
City of A4laml - Office of Budget
X
1.000,000 $ 1,000,000 $ 1,000,000 $
X $
X X $ 187,336 $ 293,740 $ 308,427 $ 323,848 $ 340,042 $ 1.453,393
X $ 232,287 $ 243,902 $ 256,098 $ 268,902 $ 282,347 $ 1,283.536
x $
X X $
2 oj47 8:12 AM12115197Jitral consolidated hdtiatives r&c
City of Miami
Management and Productivity Initiatives
Information Technology Division (IT) -Positions should be created and
X
X
$ 96,000 $ 240,000 $ 255,000 $ 267,000 $ 280,000 $
1,138,000
Z. funded to bring to City appropriately skilled staff to maintain City in
today's technology environment
Immediately conduct a planning study of office space to determine if
X X
X
X X X $
office requirements can be met through rearrangement of existing space
vs. leasing new space.
'
Consider placing Risk Management under the Assistant City Manager of
$
Risk Mgt, is a division of GSA which reports to the ACM for Operations. $
Finance and Administration to consolidate similar functions.
' Consider placing Procurement under the Assistant City Manager of
X
$
1 Operations to enhance customer service orientation and efficiency.
Continue with current plans to transfer some fleet responsibilities from
X
$
sad the Fire and Police Departments.
' Fleet Management Task Force -Strongly recommended that the services
X
$
performed at General Services Administration, Miami Police and the
Miami Fire Departments be consolidated Terminate the current Police
take-home policy
$
" Solid Waste Management -A better sharing of overhead cost could be
X
$
made if all Fleet maintenance operations in the City were consolidated
g Transfer responsibilities for other key maintenance to GSA.
X X
X
$ 76,924 $ 80,770 $ 84,808 $ 89,049 $ 93,501 $
425.052
Organizational Alignment Total
$ 592,547 $ 858,412 $ 904,333 $ 948.799 $ 995,890 $
4,299,981
Y ..
4 The City needs to adopt appropriate policies and procedures to assure
X
$
that good business practices are followed.
Fleet Management Task Force -Need to optimize the layout and work
X
X
X X X $
flow processes of the physical plant
Fleet Management Task Force -Car assignments should be reallocated
X
X
$
on the basis of shift size and duty assignment
X
X
$
Fleet Management Task Force -Vehicle service life should be extended
from 5 years and/or 75,1XI0 miles to 6 years and/or 100,000 miles
Fleet Management Task Force -All surplus cars to the City's needs, or
x
$
ready for retirement, should be auctioned off instead of donated to a
sister city or any other entity
City o Mlaml - Office aJBudget
3 of 47 8:12 AM/2/15197fimal consolidated tmlriarives 1&c
® M =I = W M M
,�
M i M M i M M M �
r
City of Miami
Management and Productivity Initiatives
Health Insurance Task Force -Form 5500 for each benefit where form is
X
required should be examined by Benefits, Human Resources/Labor
Relations and Finance Departments before being submitted to the IRS
Health Insurance Task Force -A sense of urgency coupled with
X X
empowerment and responsibility should be developed within the
Benefits Office operating as a component of HR
Opportunities Task Force -Should be funding a portion of the future
benefits being earned by current employees on post -employment health
care benefits
Opportunities Task Force -Necessary to complete a long term financial
X
workout plan including a one -to -two year short-term plan
Opportunities Task Force -Workout plan should be designed to
X
immediately improve the operating cash flow through significant revenue
increases and expenditure reductions
Opportunities Task Force -Long-range workout plan should consider
X X
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
X X
determine its actual financial position as of the current date
Opportunities Task Force -Increase enforcement efforts to reduce the
X X
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 verify
X
that the City is receiving the full amount due from franchise revenues
from commercial solid waste companies
Opportunities Task Force -Transaction on New Miami Arena should be X
reviewed in detail to ensure that the return to the City is commensurate
with fair market value of the parcel
Opportunities Task Force -Serious consideration should be given to
obtaining as large a payment as possible in the near term and/or long
term recurring revenues on the New Miami Arena parcel
Opportunities Task Force -Should conduct review of all City activities to X X
determine which of the activities could be performed more economically
and with a higher level of service by another local government or by a
private enterprise
Opportunities Task Force -A complete listing of all the City's account x
receivable balances should be compiled including revenues recorded in
the accounting records as well as balances which may not be recorded
X X X X
x
X X X X $ 195.200 $ '195,200 $ 195,200 $ 195.200 $
X
X X X X
$
=
$
$
195,200 $
976,000 ,.
City ofMlaml - Office of Badger 4 of 47
8: /2 AM/211"7final consolidated Initiatives f&c
Opportunities Task Force -Should review all services provided to
determine level of fees and charges associated with each service
Opportunities Task Force -Should determine whether fees charged are
reasonable based on the fully loaded cost of the service, rates charged
by other local governments and private enterprises for similar services
Opportunities Task Force -Rates should be adjusted to ensure service
users are paying the associated costs and to provide a return to the City
which is appropriate
Opportunities Task Force -Formal policies should be adopted regarding
when waiver of user charges are to be granted .
Opportunities Task Force -Steps should be taken immediately to reduce
or eliminate the financial burden associated with ownership of James L.
Knight Center,and Parking Garage and the Coconut Grove Exhibition
st of Solid. Waste Operations -Can save fleet operating costs as well
crew time in Solid Waste by utilizing close -by Regional Transfer
Cost of Solid Waste Operations -May be able to accomplish significant
savings ff.a few loads per day could be directed directly to the disposal
site with the remainder going to the transfer station
Cost of Solid Waste Operations -Should have a more detailed evaluation
Y.
of its use of transfer stations
Cost of Solid Waste Operations -The City appears to lag in its vehicle
replacement plan in Solid Waste
City of Miami
Management and Productivity Initiatives
X
X
X
X
X X
X
x
x
x
Solid Waste Management -Service levels for trash pickup, bulky waste,
white goods and illegal dumping are incredibly high
Solid Waste Management -A need for enforcement is obvious
Solid Waste Management -Street sweeping and special events should
have their own cost and revenue centers, and be self-sufficient
financially, and avoid being subsidized by the waste fee
Solid Waste Management -The waste fee itself is insufficient
Solid Waste Management -Should not donate retired equipment but
should sell it and revenues from sales should be deposited in a Capital
Replacement Fund
Revenue Enhancements -Eliminate park user fee waivers
Revenue Enhancements -Increase park user fees when appropriate
Revenue Enhancements -Develop a park marketing program to enhance
revenues (existing and new)
Revenue Enhancements -Establish a process to credit the Parks and
Recreation Dept. for existing and new revenues generated by the parks
Revenue Enhancements -Review concession permits/revenues
(including mobile vendors)
Revenue Enhancements-Review/simplify process to obtain Grants
(Federal, State, Private)
Organization/Structure Improvements -Conduct a cost/benefit analysis of
recent transfer of the Park Maintenance Department to the Public Works
Operating Practices -Establish a'bottom-up"/participatory budget
preparation and monitoring system
Operating Practices -Develop an operating manual for Parks and
Recreation facilities/employees
Operating Practices -Develop a procedure for processing/prioritizing
work orders
Operating Practices -Develop a formal vehicle maintenance and
replacement program
City ojM:aml - Offi- oJBudget
City of Miami
Management and Productivity Initiatives
x
X X
X
Additional fees are at the discretion of the City Commission.
x
X
X
X
X
X
X
X
X
X
X
X X
6 of 47
8: l2 AMl2/!S/97jnal consolidated Initlalims t&c
A code of conduct needs to be developed and signed by all employees.
Integrate Benchmarking, performance measures and management by
objectives into all work operations.
Critical Success Factors -Finance and Internal Audit staff must be held
accountable and departmental objectives and metrics to measure the
agreed upon objectives must be established.
Fleet Management Task Force -Establish productivity and job standards
Create meritocracy in the management ranks. Changes for covered
employees will take time and may be the subject of bargaining. Long
lens efforts should be directed to linking compensation more closely to
performance.
All City departments should be formally trained on benchmarking and
performance measures.
Periodic reports on significant benchmarks and performance should be
made a part of the City Administration's report to the Commission and
the citizens.
Information Technology Division (IT) -A formal tracking mechanism
should be developed to create measurability of performance
Make sure each major work function significantly improves 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.
The City Manager and department heads should develop an action plan
for implementing total quality concepts throughout the organization.
City of Miami
Management and Productivity Initiatives
x x
$
Business Practices Total
$ 195,200 $ 195,200 $ 195,200 $ 195.200 $ 195,200 $
976,000
'4°,� ¢'r �'��„ nee y'i�" §.�. %,��N 2? .: P.,e. �s�ss: F.v„N'??�11.., �'�J=�.^. :e.••sZ.^rn�T 4 :•��ry)a':�v�:�-�..'
�i• �y� :a�..l,'.i:.C.g �•° i';�: i:?:Wss,5�4a`sa4p,��.�y efsc �.•��.
yy e1 :��a.',?.i«''��y",.-._"�'�� «rc:,a
.4. C:,"„•;"L,$);:Wi�j t'9.1'• dY. €..:ti. '�T�:�y,
�8� i�pp
`�-`tF.�ih.•
�V�ap�
,«�n^..ava:?.i:.a:,4,:?....'i�..'YAt�.:nr,a®..��.�n1��:�s'.x:�;..6.',:__°:t,'4rY$.>£..�s.:�S..e�s��k:ls3a:sfai��i'i...
,b
ao�ea�..a�...w;�.:>,:'�.a'ae. ,E:;4;a
ev;`a1....,,,.,,;hxa3acLt N'd.•.n«-.:U"8.,<:w�mF. .`,. �ar.'in.a�., tiw3.,.,.
:3.40a�.#:
X X
X X X $ 155,000
$
�0
$
X
$
X X
X X X
$
$
x
$
X X X
X X X
$
X
$
X
$
$
X
$
X $
Benchmarking and Performance Measurement Total $ - $ 155,000 $ - $ - $ - $ 155,000
Adopt a competitive sourcing policy and process to assure that the City X $
is providing and receiving quality services that are cost effective
according to industry standards.
Contract with a consultant to conduct a sourcing study with priority on X X X X $
fleet maintenance and fueling due to the impact on facilities.
City ofMtami - Offlce ojBndget 7 of 47 8:12 AM/211"7fival consolidated Initiatives r&c
City of Miami
Management and Productivity Initiatives
Use Costing Methodology similar to that used by the City of Charlotte to X X X X
track all costs related to City Services as a basis for sourcing decisions.
Apply Sourcing Decision Guide similar to other cities (Based on review X
of sourcing practices) Charlotte, Phoenix, and Indianapolis, have
realized substantial improvements in efficiency, quality and cost by
adopting the recommended approach.
Work with private industry for guidance and advice on sourcing X
decisions.
Director of GSA should develop a schedule for sourcing implementation. X X X
Fill middle management positions that will not be affected by X X X
outsourcing.
Institute appropriate contract administration and evaluation procedures X
with respect to out -sourced functions.
Sourcing Policy/Implementation Total
Increase operational efficiency and expedite development permit
X
process as follows:
Review, improve and streamline all land use related application forms.
X X
Create a system that is ro oieci driven rather than permit driven.
X
Institute a more effective use of technology.
X
Develop performance measures that target improving the service and
X
reducing the cost of these functions.
Correlate funding of Department with performance measures and
X
objectives.
Revisit staffing qualifications. Technical expertise and experience are
X X
critical to efficiency and customer service.
Review compensation and benefits in light of the rest of the City and
X X
within the overall reorganization plan.
Review Department's reporting relationship to strengthen oversight and
X X
effectively monitor customer service.
Clry of Miami - Office of Budget 8 oj47
$ 142,872 $
623,313 $ 653,160 $ 684,491 $ 717,393 $
2,821,229
$ 142,872 $
623.313 $ 653.160 $ 684.491 $ 717,393 $
2,821;229 '
$
$
8:11 AM1211"7fiaal consolidated iaiilaiives i&c
City of Miami
Management and Productivity Initiatives
Improve relationship and coordination with Dade County to expedite the X $
permitting process.
$
Expedite non -controversial items supported by staff. X X $
Request that the County appoint one person to expedite processing of Approvals must be requested by property owner or contractor, not by City. $
necessary county approvals of City permit applications.
Centralize and simplify the process of applying for land development X $
changes, including master plan changes.
$
Seek vehicle for developing publiclprivate partnerships for development X $
and redevelopment.
Seek public input on the City Charter to improve the land lease process X $
and fee structure, including cost of appeals.
Develop city-wide design and landscape standards. X X X X X X $
Building and Zoning Total $ $ $ $ $ $
Identify and communicate to staff and public the mission of code X
enforcement. Should be considered part of development/redevelopment
policy rather than punitive.
Identify speck individual with responsibility and authority for code X
enforcement to set overall policy and direct compliance strategies.
Add "appearance code" that is enforceable and enforced. Neighborhood X
improvement is the message.
Consider "amnesty" program to have people pay whatever they can on X
fines, but only after property has been brought into compliance.
Implement aggressive enforcement against properties and owners
refusing to come into compliance, including alternatives to foreclosure
such as court injunctions, personal property levies, etc.
Need senior policy level review of property lien foreclosures to weigh
benefits/liabilities of City ownership. City ownership of properties not in
compliance needs to be addressed.
Consider if police and fire could assist in identifying possible code X
violations during the course of their normal duties. Could also be
computerized.
Train personnel for technical and interpersonal skills
X X X X X $ 25,000 $ 25.000 $ 25,000 $ 25,000 $
X
X
X
X X X X
X X
$ 5,000
25,000 $ 125,000
$ 5,000
%i�►°m,_o ii ,dge, !s me ® M M! ® iiUi M M m i mi " M1` �,la, ,real„r C �
City of Miami.
Management and Productivity Initiatives
Consider connecting enforcement districts with Commission Districts as Enforcement is by NET in their respective areas.
needed. City needs fair and equitable policies appropriate to each
neighborhood.
A study of whether the City should sell code enforcement liens should X
be conducted. The analogy to lax liens may be appropriate, but there .
are legal and policy issues which need exploration.
Code Enforcement Total
A private/public partnership should be formed between the Greater X X
Miami Chamber of Commerce and the City of Miami. This partnership
should develop a strategic plan for the economic development of the
City of Miami. This would be for the entire City.
Explore the value of consolidating into a single agency the responsibility X
for the economic development in the entire City. Establish a speck
entity with similar responsibilities as the Beacon Council to lead
economic development for Miami.
This agency should have the ability to condemn properties and provide X
incentives for development and to attract business to the City of Miami.
The agency should be responsible for analytical functions to address X
issues such as the cost of doing business in the City of Miami versus
neighboring municipalities, etc.
The agency should include the Downtown Development Agency. X
Designate a City employee who will be liaison between the City and X
Beacon Council. Intention for the Beacon Council to be viewed as non-
competitive organization.
Utilize slate and private education institutions to attract business to X
urban core.
Actively pursue and lobby for the extension of the light rail system X
westward through Kendall. The extension will provide increased
accessibility of the available work force to the downtown core.
Review land use in the Downtown/Brickell core to provide for mid -rise X
office development.
Economic Development Total
Strategic Management Total
$ 30,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 130,000
$
$
$
$
$ 2,060,619 $ 2,866,926 $ 2,777,693 $ 2,853,490 $ 2,933,483 $ 13.482,210
City ofMi ml - Office oJBudger 10 of o7 s:12 AIN12115/97fiaal cossolldared bddariws r&c
The organizational criteria in the Five Year Plan should be applied to
lower levels of the City organization.
Budget Management Division -Placement of Task Force positions within
the NET Offices should be investigated as an option
Budget Management Division -Grant coordination should be
strengthened.
Procurement Management Division -Oversight and related policies of the
Procurement Division should be strengthened
Strengthen and broaden the role of Internal Auditor, including
Substantial operational auditing to ensure that approved policies and
procedures are being followed.
Review of travel and expense accounts of the commission and senior
management in accordance with predetermined objective criteria.
Review of new or revised City projects while in progress and/or within
six months or a year after completion to compare with financial forecasts
and enhance future projections.
Staff to review GFOA's "Recommended Practices for State and Local
Governments." Develop appropriate implementation plan.
Reconciliations of the City's cash accounts should be performed
monthly. These reconciliations should be prepared in a standardized
format designed by the City. All reconciling items should be fully
investigated, explained and supported.
All reconciling items should be appropriately investigated and resolved
on a timely basis. In addition, the finance dept. should exercise prudent
custodial control to ensure the safe keeping of all the City's financial
records, including bank statements.
Inventory should be counted annually. Policy should address general
inv. procedures including names of staff responsible for the inventory
count, the scheduling of Inventory taking and the ID of controls needed
to ensure an accurate count.
City of Miami
Management and Productivity Initiatives
x
X
X
X
X
X
X
X
X
X
X
X X
$ 50.000 $ 50,000 $ 50,000 $ 50,000 $
50,000 $ 250,000
In order to improve and maintain control over general fixed assets, the X X $ -
` city should develop a complete detailed asset records. The following
guidelines should be utilized;
The faced asset subsidiary ledger should be updated throughout the X $
year as fixed assets are acquired or disposed.
s $ -
City ofM-1-Office of Badger 11 of47 8:11 AM1211"7finai'conso/idared tnlrlarlves0c
Periodic inventories should be taken to verify the continued existence of
the fixed assets. Any unallocated items should be appropriately
investigated.
The fixed asset subsidiary ledger should be reconciled to the general
ledger, at a minimum , on a quarterly basis.
The City should assign the responsibility of maintaining its general fixed
assets to an individual.
The City should implement the following to improve its account
receivable process;
The City should use a formal invoicing system for all routine billing as a
mechanism for ensuring the timely collection of outstanding invoices.
The accounts receivable general ledger control balance should be
supported by an appropriate level of detail that provides management
with information to monitor the collecting of accounts receivable.
This detail should preferably be in the form of an aging report that
presents each customers outstanding balance based on the actual due
date.
Aging trial balance should be reconciled monthly to the general ledger.
All material differences should be investigated and resolved on a timely
basis.
The City should immediately review the nature of the approximately $9
million loans outstanding and evaluate the collecting of such balances.
In addition all future loans should be supported by appropriate
documentation including formal loan agreement.
The City should create the position of Grants Administrator. Individual
would be responsible for ensuring that claims for reimbursement are
filed properly, in a timely manner, and in accordance with grant
guidelines.
The administrator would also be responsible for coordinating and
monitoring the City's compliance with requirements applicable to federal
and state financial assistance programs.
This individual would also assist in identifying additional federal and
stale programs that may be available to the City.
City should designate a person to monitor the activities of the contractor
to ensure proper adherence to the requirements of the Relocation
Assistance and Real Property Acquisition Policies Act.
The City should implement the reconciliation of detailed subsidiary
records to the general ledger, at a minimum, on a monthly basis.
Reconciliation should be reviewed by supervisory personnel.
City oJMiami - Office ojBrrdger
City of Miami
Management and Productivity Initiatives
X $
X $
X $
$
X $
X $
X $
X $
X $
$ •X $
X $
X $
X $
$
X $
12 oj47 8:12 AMl2//S/97jitwi consolidated iairiatives r&c
In preparing monthly reports, the following should be considered:
Proper cutoff procedures should be implemented to facilitate for the
proper recognition of revenue and expenditures.
Standard journal entries should be assigned to speck staff
accountants. All journal entries should then be approved by the finance
director, or general ledger supervisor prior to input into the general
ledger system.
The subsidiary ledgers should be reconciled to the respective general
ledger balances.
All standard closing procedures should be written and be incorporated
into the City's Accounting and Procedures Manual and made available
to the accounting staff.
The City should implement a financial reporting function, including the
appointment of an individual who will be responsible for compiling and
drafting the annual general purpose financial statements and other
required reports.
The City should purchase a computerized financial reporting package
that can be integrated with the City's current general ledger system.
This system should be configured to produce the City's general purpose
statements.
An in depth manual of accounting policies and procedures should be
prepared which, at a minimum should include:
A chart of accounts containing an adequate explanation of account
purpose, use and content.
Documentary flowcharts of significant accounting systems, including
their interrelationship, where applicable, with other departments within
the City.
A list of standard forms used in the City with detailed explanations of
their purpose and preparation.
A list of data processing reports, including appropriate descriptions of
source, content, production frequency and purpose.
A list of standard and other journal vouchers with sufficient explanation
of their purpose.
Appropriate descriptions of all financial policies and accounting
procedures and routines regarding, but not necessarily limited to the
MMonthly review of internally generated reports which may vary in
complexity from a simple scan of transactions to detailed analysis or .
reconciliation.
City of Miami - Office ofBedget
City of Miami .
Management and Productivity Initiatives
X
X
X
X
X
X
X
X
X
X
X
X
X
/3 o a7 8: /2 AM/2/!S/97final consolidated iu111adves Oc
tit ® � r■t ® �t �r w� � � �
City of Miami
Management and Productivity Initiatives
Policies related to cash which would include preparation of bank
X
$
reconciliations, controls over cash disbursements and cash receipts,
and procedures regarding the investment of excess cash on hand.
$
Purchase and capitalization of fixed assets and related procedures for
X
$
computation of depreciation thereon.
=
$
Doubtful accounts and related bad debt write offs.
X
$
$
s�
Lease obligations and related capitalization policies.
X
$
. r _ Policies related to the recognition of revenue and expenditures with
X
$
particular attention paid to year-end cutoff procedures.
' The assignment of accounting responsibilities and expenditure approval
X
$
procedures.
_
$
". Compliance with debt covenants should be reviewed monthly, or qrtly.,
X
$
depending on the nature of the covenant. This review will provide
greater assurance that the City maintains compliance with its debt
agreements and/or that defaults are identified q
Signature plates and check signing machine keys should be kept locked
X
$
at all times
6
$
-
Reimbursement claims for the NET Neighborhood Jobs Prog. should be
X
$
prepared and submitted to the appropriate granting agency immediately.
Additionally, procedures should be established to ensure that
reimbursement claims are submitted in a timely manner
Rom-
$
The City should formalize its standards and procedures regarding
X
$
system development and modification, as well as standardize those
programming and analysis issues not currently covered.
A set of comprehensive operating and application system
X
X X X X
$
documentation standards should be developed and implemented by the
IT Division, These standards should specify that documentations shall
be written when new and changed systems are implemented.
As the City continues the process of updating its software, we
X
X X X X
$
recommend that source documentation and system flowcharts be
maintained.
Management should continue to eliminate material due from / to other
X X
$
fund balances.
Accounting Division -Should adopt formal closing procedures posting
X
$
payrolls immediately after the pay period
City ojMiaml - Offlce of Budget
14 of 47
8: /1 AM/1//5/97firwl consolidated ioidarims Oc
City of Miami
Management and Productivity Initiatives
Accounting Division -Monthly and year end closing should take place on X $
a speedier basis
' $
Accounting Division -High level accounting reports should be distributed X $
g ` to management personnel
�*fir
"'ME Accounting Division -A total solution for the City vs. A point solution for X $
�� departments should be developed based on a determination of Citywide
requirements (Kronos System)
Budget Management Division -Grant Administration and grant X X $
s' reimbursement processing is not uniform throughout the City
' Budget Management Division-CIP contracts should have funding codes X $
identified and approved by Budget prior to award
Health Insurance Task Force -The plan administrator should have the X X X X X
R responsibility for conducting a performance audit semi-annually on
a` terms and conditions of ASO contracts
a $
Health Insurance Task Force -Management skills are needed to recover X X X X X X $
" some unnecessary expenses involving subrogation and coordination of
benefits
.. $
Health Insurance Task Force -An audit, review and control function is X X X X X $ -
a i Y� needed for health care claims management
Health insurance Task Force -A method is needed to recover X $
unnecessary tax expenses such as those found in flexible spending
s z=. accounts, pre-tax benefit plans and possibly in retiree health care
Health Insurance Task Force -The self -insured plan must be run like an X X X X X $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 5,10
insurance company with proper current funding and adequate insurance
coverage and reserves .
Health Insurance Task Force -Employee contributions need to be
s:X X X X X X $ -
deposited into a trust account immediately or deposited with the carrier
or risk bearing agency
r' $
Health Insurance Task Force -Look into paying lower administrative fees X X X X X X $
for larger supplies of medications
Health Insurance Task Force -Look at utilizing the services of a X X X X X X $
' Pharmacy Benefit Manager to control prescription costs
Health Insurance Task Force -Need to look at coordinating medical X $
payments with Workers Compensation where appropriate
Risk Management Department Review -Perform cost/benefd analysis to X $
determine if the deductible on the property policy provides the City
ultimate cost effectiveness
City ojMiami - office oJBudger � ® /S o 47 � ® � � � 8: l2.fA7� 7final cor�ted lrrltlarl�c
® � s air � �► �
r rr rf rr rr �r r r� rr ® r r� ® r rr rr rr rr r
City of Miami
Management and Productivity Initiatives
Risk Management Department Review -Should consider a cost benefit
X X
$
analysis for purchasing excess liability insurance coverage for those
losses that are not limited by a sovereign immunity doctrine
Risk Management Department Review -Re -open the RFP process in
X
$
accordance with Resolution 95-393 to outsource the risk management
function
Risk Management Department Review -Should hire an independent risk
X
$
management consultant to select the appropriate vendor under the RFP
process if the Insurance Committee is not reestablished
X
$ _
Risk Management Department Review -Should consider changing the
insurance broker's compensation to a fixed fee for services rendered
Debt Restructuring -City should immediately establish segregated Debt
X
$
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 service
X
$
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 Debt
X
$
Service Funds in accordance with the legal documents
Debt Restructuring -The use of cash in the Debt Service Funds in the
X
$
first hall of this year without achieving a balanced budget, could result in
the City's defaulting on its debt obligations later this year
Debt Restructuring -Need to segregate the non -general obligation debt
X
$
service fund outside of the pooled cash
Debt Restructuring -The Utility Service Tax funds, as collected on a
X
$
monthly basis, should be deposited on a pro rate basis to the
appropriate funds
Debt Restructuring -The debt service component received in the
X
$
advance payment from the Stale should be segregated in the debt
service fund outside of the pooled cash account
X
$
Debt Restructuring -Three transactions of the City's outstanding bond
issues could be restructured or refinanced which could provide present
value savings and be available to fund current year projects
Debt Restructuring -Identified several general obligation issues which
X
$
could be restructured at no cost to the City to reduce debt service over
the next few years
City oJMIaml - Office ojBudger 16 gJ47 8:12 AA412115197fnaal muolidared Initiatives Oc
Debt Restructuring -City Manager should appoint someone, preferably
the new Finance Director, to establish a recurring reporting practice to
such entities of the progress the City is making in adoption and
implementation of its recovery plan
Financial/Budgetary Analysis -Pension expense for 1996 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 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 for
each major revenue category
City of Miami
Management and Productivity Initiatives
X
X X
X X
X X
X
FinanciaUBudgetary Analysis -Some process should be developed to
minimize or eliminate false billings in the revenue collection programs
Financial/Budgetary Analysis -City may want to consider the introduction X
of an amnesty period followed by more vigilant enforcement and/or use
of outside collection agency
X
Financial/Budgetary Analysis -Discipline is called far in an environment of
spending pooled cash which included high level approval plus
planstprojections for subsequent repayment or correction
X
Financial/Budgetary Analysis -Recommendations for future financial
management initiatives should include the timely ongoing use of monthly
reports showing the comparison of budget versus actual results
Organizational Control and Finance Total
$
$ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 1,150,000 $ 5,750,000
X
Establish and implement plan to improve the City's credit rating and $
Vw entry into the bond markets.
Establish the goal of developing an uncommitted General Fund Balance X $
ti consistent with an investment grade bond rating (e.g. five percent or
more of the annual operating budget) over a five-year period:
$
Adopt a written "Debt Management Policy" including the following critical X $
elements:
The City should not issue debt obligations or use debt proceeds to X $
finance current operations.
City ofMtaml - Office of Budget 17 of 47 8:11 AMl2115197final consolidated initiatives r&c
rr ,r ® rr ri r r r r r r r r r r r® rr r
City of Miami
Management and Productivity Initiatives
The City should utilize debt obligations only for capital improvement
X
$
projects that cannot be funded from current revenue sources or when it
is better to finance the project over its useful life.
The City should issue debt obligations for refinancing existing debt only
X
$
if financially advantageous or necessary to release existing bond
covenants.
$
Pension Review Task Force -City may wish to investigate possibility of
X
$
issuing Pension Obligation Bonds to eliminate unfunded liability in the
GESE Plan
The City should measure the impact of debt service requirements on
X
$
single year, five, ten and twenty year periods.
$
Establish a Finance Committee of local business and community
X
$
members to serve with the City Mgr, to review and make recomm. re:
the issuance of debt obligations and the mgmnt. of outstanding debt and
monitor adherence to debt policies and procedures.
Debit Management and Policy Total
$ $ $ $ $ $
i
Determine all administrative implications of the Fire Assessment Fee as X
$
quickly as possible in order to identify the impact of potential problems
t
and disruptions to cash flow.
-
a ."
The Finance Department should identify each existing and/or potential X
X X X X
$
revenue source and document all of the relevant information about it.
$
>�
Compare the above information with that of other municipalities to X
X X X X
$
'y
determine the most effective manner In which to maximize revenue and
cash now.
Evaluate centralization versus decentralization and cost benefit analysis
X
$
°'
of making changes to existing systems (e.g. staffing, technology).
Centralize similar billing and collection activities to the extent practical. X
$
Performance criteria should be established. The City Manager should
X
$
receive a summary report of billing, collections, receivables and
measurements of performance no less than monthly.
v
`
City management should immediately review and address all
X
$
interdepartmental issues created from more than one department
overseeing various aspects of billings and collections.
City ojliami - Office ojBudget
18 of 47
8: /2 AMI2//S/97jaal consolidated iairrarives r&c
City of Miami
Management and Productivity Initiatives
The City should pursue more diligent collection efforts in Emergency X $
Medical Service Transport fee.
The Internal Audit group should perform surprise checks of potential X $
revenue sources as a warning to less honest employees that the City is
serious about preventing misappropriation of funds.
Billing and Collecting Total $ $ - $ - $ - $ $
` Increase the formal bid advertising requirement limit of $4,500 in City
45..
X
X $ 2,000
$
2,000
Charter to $10,000 or $15,000.
Streamline procedures for smaller purchases (e.g. authorizing use of
X
$
procurement cards, delegating purchase of smaller items to user
departments, making greater use of cooperative purchasing
r agreements).
,
Critical Success Factors -Too much time spent by Procurement on
X X
controlling low dollar, high volume items and not enough oversight in
service related purchases
w Fleet Management Task Force the bids and contracts
r� -improve process
X X
X $ 23,908 $
25,103 $ 26,358 $
27,676 $
103,045
to enable the acquisition of goods and services in a timely and cost
efficient manner
3.
Ensure professionalism in purchasing personnel through appropriate
X X
X X X X $ 7,350 $ 3,450 $
4,050 $ 4,450 $
5,000 $
24,300
'
experience and training.
$
Improve use of technology in the procurement function. Fully train
X X
X
$ 7,500 $
5,000 $
'
in technology toots.
departmental personnel effective use of all
$
a
Consider removing all language in City Charter and Code regarding
X
$
procurement, other than formal bid advertising requirement limit, in favor
of'an administratively authorized and implemented Procurement Policy
s
Manual.
$
Recommendations made by the Procurement Assessment Team
X
X
$
appointed by the Oversight Board in their report dated February 24,
1997, should be considered for eventual implementation.
Suspend or pre-empt the City Charter as it relates to purchasing and
X
remove Procurement Division references from.said document (i.e.,
Sections28 and 29A).
Until such a time as new language can be adopted, the City should
In violation of current Charter provisions.
$
operate under selected portions of Chapter 287, Florida Statutes (F.S.),
to be determined by legal counsel.
City o I aml - 0 ce of Budget
19 of 47
8: I2 AW 2Q5/97final consolidated Initiatives 0c
�r s rs �r r r r r� �■ r r s r s r s� s r
City of Miami
Management and Productivity Initiatives
Delegate authority to purchasing manager to approve all acquisitions up In violation of current Charter provisions.
to Category Four under Section 287.017, F.S.
The City should adopt a new procurement code which emphasizes X
current practices.
Suspend local preference laws which may limit competition and The City Commission has expressed its commitment to support local businesses
opportunities to reduce cost.
Bid limit adjustment to recognized price index. X X
Eliminate City Clerk's involvement as it relates to bid openings - this X
should be a function of purchasing.
Update and revise procurement operations manual incorporating X X X $ 1.875
revisions to the City Code.
The City should shift its focus from smaller dollar purchases to large X
dollar purchases for commodities and goods. Furthermore, the City
should delegate small purchases to user departments while providing
adequate safeguards which ensure sound fiscal con
State Contracts, SNAPS Agreements, and other contracting methods X X X X X X $ 500 $ 500 $ 500 $ 500 $
offered b th St t f FI 'd d h bl'
$
$ 1,875
500 $
re y e a e o on a an of er pu is entities can and should
be used to reduce administrative costs and reduce delays In receiving
goods and services by user departments. Incr
We recommend that the Chief Procurement Officer be trained in the X X X X X X $ 2,000 $ 2,500 $ 2,500 $ 2,000 $ 2,000 $
public purchasing profession with proci cement activities as his/her
primary responsibility. It is also recommended that this position report
at a sufficiently high level in the organizati
$ 4,800
Provide needed training, which should be included in the City's budget, X
and certification should be encouraged for all professional staff and
required in the staff selection process. Improve Procurement stairs
understanding of customer needs with site
Shift stall resources from small dollar purchases to large dollar X
purchases and eliminate work that does not add value or Is redundant.
riain a professional needs assessment of the technology requirements
X
the City's procurement process (especially looking at integration of
;I and APS). Retain the services of APS to complete the
plementation of all three procurement purchasing mod
2,500
4.800
City oJMlami - Office oJBudget 20 of 47 8:I2 AMl211"7fitial consolidated htitlatives i&c
City of Miami
Management and Productivity Initiatives
All professional staff must have adequate training on personal PC X X
applications, including spreadsheets, word processing, Internet, etc., to
improve their analysis and decision- making ability. City-wide
departmental training on financial and procurement
Develop and issue a comprehensive customer survey to determine X X ' X
satisfaction with the purchasing process and identify deficiencies so that
remedies can be implemented. Also, increase technical skills by training
purchasing staff and customers.
Upon completion and distribution of a new Purchasing Manual, all.Cily X X
departments should be trained by Procurement with follow-up training
being provided annually. The City should also consider providing new
employees with procurement training (includin
The City should establish stern sanctions for personnel who violate
procurement policies. The City should inform major vendors of
personnel who can act as buying agents on behalf of the City. All
personnel should be trained on procurement policies.
Procurement Management Division -In depth evaluation of multiple
functions assigned to Procurement
Procurement Management Division -Practices should be evaluated to
ensure a competitive process occurs when procuring large dollar
services
Procurement Management Division -All contracting should flow through
the Procurement Division
Procurement Management Division -To ensure purchasing procedures
are not bypassed controls over the use of 'direct' purchases should be
vigorously enforced
Procurement Management Division -A formal training program needs to
be adopted
Practices -Restructure procedures for bidding/selecting
X X X
$ 135
$
$ 135
X $
X $
X $
X X $
$
X X X X X X $
X X X X X X $ 4,350 $ 1,550 $ 2.000 $ 2,500 $ 3.000 $ 13.400
X X $
Procurement Total $ 21,135 $ 33,783 $ 34,153 $ 43,308 $ 43,176 $ 175,555
Establish Audit Committee of private citizens which meets regularly X $
throughout the year. Potential candidates should Include experienced
accountants, bankers, financial and Insurance executives and persons
of similar backgrounds.
C/ o dam! - Office o &rdger 21 0 47 8: !2 7jr,a/ o o ! red Midwivest&c
Critical Success Factors -Establish Audit Advisory Committee to review
work of Internal Audit department
Audit Advisory Committee -The Audit Committee should be expanded to
include a City Commission member as a non -voting member
Audit Advisory Committee -The Director of Internal Audit should be an
integral participant in Audit Committee meetings
Audit Advisory Committee -Meetings should be conducted quarterly, at a
minimum
Require Audit Committee to meet with the external auditors at least
twice during the year.
Enact changes to the City Charter/Code to reflect the nature, purpose
and composition of the Audit Committee.
Internal Audit -The City code requires significant revision to bring about
the recommendations outlined
Audit Advisory Committee -The City Code should more specifically
delineate Audit Committee composition in order to provide
representation from varied business backgrounds
Implement a formal policy for selection of external auditors to be
executed by the Audit Committee. The Audit Committee should also
oversee the evaluation of the performance of the external audit team on
an annual basis.
Implement a formal policy for the maximum length of external audit
contracts.
As part of the Audit Committee's duties, they should review the scope of
the external auditors approach while the audit planning is in progress
and review the results of the audit upon completion.
The Audit Committee should also monitor other services provided by the
external auditors to ensure that a proper level of independence Is
maintained.
Reorganize the Internal Audit Department to report directly to the Audit
Committee.
Internal Audit -Audit function should have dual reporting to the City
Manager and to the Audit Advisory Committee
Internal Audit -The audit plan should be reviewed by the Audit
Committee to ensure It is balanced
City of Miami .
Management and Productivity Initiatives
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
City ojlrrami -Office o.fBudget 22 oj47 8:12 AMl2115197jimal cauolidated hiWatives 0c
City of Miami
Management and Productivity Initiatives
Audit Advisory Committee -The roll of the Audit Committee should be X $
expanded and clarified to ensure review of both external and internal
audit results
The Chairman of the Audit Committee should make an annual report of X $
its activities to the City Commission.
internal Audit -A summary of audit results and responses should be X $
prepared quarterly and presented to the Audit Committee and the City
Commission
Audit Advisory Committee -The Audit Committee should provide a
to City Commission
X
$
quarterly report the
Audit Advisory Committee -The City Commission should be educated on
X
$
their role in reviewing audit results and interacting with the Audit
Committee
;?
$
rs-
<an experienced CPA with significant exposure to the public sector
X
as Director of Internal Audit.
E Internal Audit -Should expeditiously hire a Director of Internal Audit with
X
$
a CPA, CIA, or CISA
The Director of Internal Audits should immediately complete an
X
$
assessment of the strengths and weaknesses of the Department,
services historically provided.
$
Determine the long-term role of the Internal Audit Department (e.g.
X
primarily involved in compliance and internal control issues, assisting
external auditors, conducting operational and performance audits, etc.)
Y c Internal Audit -Staff time spent on non -audit functions should be
reviewed, audit staff work should focus on auditing
X
$
-, A full scope, internal audit function is ultimately recommended. A
X
$
„ determination should be made as to how the function is to be achieved
in-house and/or with contracted services.
Internal Audit should include IT as an area for ongoing review. Review
X
$
should include periodic testing of both general controls (organization,
physical and security) and applications controls (processing controls and
testing procedures).
Program change controls and logical access (data security) should also
X
$
be reviewed.
Standardized working papers and detailed IT auditing programs should
X
$
be prepared.
Internal Audit IT reports should be issued to the City Commission on IT
X
$
audit findings.
0tv o Mmni - O ce o Bvdger � � � �
� �
23 0 47 � � � � � 8:11 AM/� 2/� 7jrml consolidated inilidn've�s r&c
City of Miami
Management and Productivity Initiatives
Test procedures and data should be designed so as to simulate all
X
X
X
X
X
$
conditions which will occur under normal processing conditions,
including data that deliberately attempts to violate data validation and
control routines.
[ Users should be involved in the design of test procedures data.
X
X
X
X
X
$
I Documentation of testing procedures should include:
X
X
X
X
X
$
Speck Objectives of the test.
X
X
X
X
X
$
a
Identification of types of transactions to be tested including transactions
X
X
X .
X
X
$
which should test all aspects of the new program or program change.
$
Inspect test results, including reported errors.
X
X
X
X
X
$
$
The actual lest results and the comparison to the predicted results.
X.
X
X
X
X
$
An overall summary, including conclusions.
X
X
X
X
X
$
Critical Success Factors -Change Internal Audit's focus to controlling
X
$
business risk, including systems
� Internal Audit -An audit plan should be developed in conjunction with the
X
$
"
,.. City Manager and department heads and should incorporate a risk
based approach focusing on internal controls and business risks
$
` ;Internal Audit -The audit plan should include a greater complement of
X
$
60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $
performance audits
Internal Audit -The audit plan should provide for a sufficient review of
X
$
60.000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $
300,000
systems security
Internal Audit -Audit review should be provided to the YEAR 2000
X
systems conversion
$
Internal Audit -The City Manager as well as the Auditee should receive a X
$
copy of the audit reports
Decide whether the present staff can provide the services envisioned on
X
$
a long-term basis.
Internal Audit -Audit staff dispersed in other departments should be
X
$
identified and centralized within the department, as appropriate
Internal Audit, External Audit and Audit Committee
Total
$
120,000 $ 120.000 $ 120,000 $ 120,000 $ 120,000 $
600,000
City ofildlami - Office ofBudger
24 of 47
8:11 AW12/1"7final consolidated hililadves !&c
The City should also develop a comprehensive cash flow forecast.
Opportunities Task Force -Comprehensive operating and cash flow
projections should be developed for a five year period
City should develop plan to return to fiscal strength, establishing targets
for appropriate fund balance reserves and funding of additional
reserves, addressing employee compensated absences, self -ins.,
capital replace., contingencies, and debt repayment.
Also addressing employee compensated absences, self-insurance,
capital replacement, contingencies, and debt repayment.
Opportunities Task Force -Operating cash reserve should be sufficient to
cover 30 to 60 days of operation
Opportunities Task Force -Prudent to maintain cash reserves of
unfunded self-insurance liability of not less than 30% t0 50% of
outstanding claims
The City'should develop a detailed forecast of expected short-term cash
payments relating to compensated absences in light of the significant
percentage of the City's workforce currently eligible to retire or expected
to be eligible by the year 2000.
The City should continue to work to develop and implement operating
plans that ensure the City functions at a surplus each year.
Opportunities Task Force -Projections should address the future courses
of action which will be required for the City to continue as an operating
entity
City of Miami
Management and Productivity Initiatives
x x
X X
X X
X
X
X
X X
X X
X X
Opportunities Task Force -Steps should be taken to return the solid X
$ waste enterprise fund to profitability
$: Opportunities Task Force -Raise user charges in Solid Waste to an X $
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 provided X $
and reduce service it appropriate
Revenue Options for Consideration -City could, through public hearing, Inconsisl $
ant with
increase the millage to 10 mills goals
Revenue Options for Consideration -City could levy up to 20% on each X $
non-exclusive franchise granted for garbage collection within the City
limits
City oJMiami - Office ojBadget 25 of 47 8: /2 AM/2115197jual consolidated initiatives t&c
Revenue Options for Consideration -City could adopt by ordinance a
telecommunication ordinance. levying 7 % on intrastate long distance,
cellular, page and telegraph service
Revenue Options for Consideration -City could levy up to 10% on water
service within the City limits
Revenue Options for Consideration -City could adopt by ordinance a fire
services fee to all property owners within the City limits
Revenue Options for Consideration -A rate analysis should be performed
on all Enterprise Fund operations and revised rate schedules should be
adopted by ordinance to recover expense of operations
Revenue Options for Consideration -A rate analysis should be performed
on Internal Services Fund operations and revised charge back rates
should be adopted to recover expenses of operation
Revenue Options for Consideration -Suggest City review the annual
revenues received on mobile homes licenses fees and if revenue is flat
or declining establish an enforcement program to increase compliance
with the City limits
Revenue Options for Consideration -Suggest an analysis be performed
on miscellaneous fees and charges to update for inflation or increased
operating expenditures
Revenue Options for Consideration -Suggest City review the allocation of
the Local Option Gas Tax and determine ability to change allocation
methodology based on population
Revenue Options for Consideration -Adopt ordinance levying road
assessment fee to property owners within City limits to maintain City
roadways
Plan should include the full costs of operating the City, Including
employee pensions, compensated absences, seff insurance, risk
underwriting and other activities which may require future payments.
a written enforcement policy with escalating collection efforts
upon the level of default and time to cure. An in-house or
a collection effort should be assigned to monitor and enforce this
City of Miami
Management and Productivity Initiatives
$
X $
X $
X $
$
X $
X $
X X $
$
X $
X $
X $
X $
Reserves Total $ $ $ $ $ $
X $
City of Miami - Office of Badger . 26 of 47 8:12 AM12115197final consolidated Initiatives r&c
Evaluation of USHUD Funded Loan and Grant Programs -Take
immediate steps to accelerate actions to improve the collection and
servicing of outstanding and in -process loans in a diverse portfolio
Evaluation of USHUD Funded Loan and Grant Programs -Take
immediate and more aggressive steps to reprogram its current and
unspent prior years allocations of CDBG funds to fund other eligible City
Evaluation of USHUD Funded Loan and Grant Programs -
Recommended that City provide and commit the necessary resources to
pursue full and complete receipt of funding reimbursements
Evaluation of USHUD Funded Loan and Grant Programs -
Recommended that City continue to identify pending reimbursement
opportunities and aggressively pursue the repayment of the funds due
Evaluation of USHUD Funded Loan and Grant Programs -City should
vigorously seek funding through the grant programs (see task force
report)
Establish a Loan Review Committee comprised of bank officers living or
working in the City of Miami to consider loan applications and bring
expertise to the entire credit review process.
Evaluation of USHUD Funded Loan and Grant Programs -Should take
immediate steps to implement more stringent loan underwriting
guidelines and procedures to reduce future loan losses relative to
ongoing new lending activities
Evaluation of USHUD Funded Loan and Grant Programs -City could
immediately suspend all new lending and reprogram those loan funds
and repayments or recoveries from outstanding loans to the greatest
extent possible
Evaluation of USHUD Funded Loan and Grant Programs -City
Commission can reverse its previous approvals and cancel
commitments for two Section 108 projects totaling $6,645,1 B4 which
have not been submitted to USHUD for processing and approval
City of Miami
Management and Productivity Initiatives
X
X
X
X
X X X X X X
X
X
X X X X X X,
X
$ 60,000 $ 60,000 $ 60,000 $ 60,000 $
60,000 $ 309,000
Hire a highly qualified, experienced private sector firm as soon as
possible, to assist the City in doing a detailed technology needs
assessment and develop a technology strategic plan.
' Information Technology Division IT The IT Division should redefine its
mission in light of the trends in technology development
:gYr Hire technology expert to head up a newly created Department of
Information Technology.
;i t The individual must provide direction and vision, negotiate effectively
w !�
with vendors, close credibility gap by results, be unbiased and objective,
<., .
and communicate effectively with various constituencies.
Negotiate interim extensions of software licensing agreements with
.ii�'� current vendor to provide for interim system requirements until
information technology needs assessment Is completed.
Immediately address those priority issues regarding inter -network
d r communications and architecture decisions. This can be determined
>,.
-�•y3 prior to the completion of the technology strategic plan.
N �, a, Several Information Technology Systems require immediate
, improvement in the area of internal controls. Some of these issues
il require high priority attention in order to ensure the continuity of the
City's operations in the case of unplanned interruptions
Fleet Management Task Force -Implement a complete Management
}' Information System with a Fleet Management module
�Establish internal, cross -departmental Steering Committee to report
$& regularly to City Manager on policy/budget/management and resource
allocation issues related to technology.
Duties and responsibilities of the committee should be clearly defined in
'- a formal charter and should include the review and approval for:
Major changes in hardware or software.
ONResearch and development projects under study.
I'M The results of any cost / benefit analysis.
PASoftware application development or acquisitions.
City ofAft—i - Office of Brfdger
City of Miami
Management and Productivity Initiatives
x x x x x $ 67,500 $ 90.000 $ 15,000 1
X X X X X
X
X
X
X X
X X X X X
X X
X X X X X X
X X X X X
X X X X X
X X X X X
X X X X X
X X X X X
28 of O
35,000 $ 15,000 $
222,500
$
$
8:12 AM/21151Y7fimal coruolidaled lulUarlves Oc
City of Miami
Management and Productivity Initiatives
Project priorities.
Resource allocation in terms of time, personnel and equipment.
Controls in effect.
Conversion plans.
Emergency procedures, contingency and physical security plans.
Insurance coverage.
Budgets and plans pertaining to the IT function.
IT User Group Committees should be established and be responsible X
Communications between users and the IT Steering Committee,
management and regulatory agencies.
Establishing user priorities.
Monthly service requests reporting by application.
Coordination and approval of.request for IT services.
Authorization of data file removal from data centers.
Review and approval of file retentions.
Coordination between users and IT.
Maintenance of commonality of system.
Review and approval of cost estimates.
User participation in new system requirements.
User group Committees must be held accountable for all program,
changes and requests for IT services from their group.
Critical Success Factors -Establish Information Systems Steering x
® CUE otMram! - O rrdger M m _ _
x
x
x
x
x
$
X
X
X
X
X
$
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X
X
$
$
X
X
X
X
X
$
X
X
X
X
X
$
X
X
X
X'
X-
$
X
X
X
X
X
$
X
X
X
X.
X
$
X
X
X
X
X
$
X
X
X
X
X
$
8:12 / S/97final consolidated initiatives
_
City of Miami
Management and Productivity Initiatives
Information Technology Division (IT) -A technology Steering Committee
should be established chaired by an Assistant City Manager
Consider having Information Technology report directly to the City Do not agree
Manager to account for the needs of all City operations and to more
effectively resolve issues related to technology.
Information Technology Division (IT) -Recommended that IT should X
report to the City Manager's Office
Opportunities Task Force -Steps should be taken immediately to
implement procedures, upgrade systems and provide adequate
professional staff to improve the timelines and integrity of the City's
financial and management information
City should develop a five year strategic IT plan that is based on the
City's Five Year Plan. This plan should be a working document that
addresses key issues such as hardware, software, applications
development, communications, emergency procedures and c
Information Technology Division (IT) -Funding needs to identified and
reserves need to be built to complete the network infrastructure for
Police and Fire and replace PC's
Approach potential teaming partners in both the public and private
sectors to develop different information systems and cost -sharing
approaches. A natural partner might be Metro -Dade County and local
Universities.
Seek a private firm to simulate the Year 2000 and provide a test bed for
all City Systems to insure that Year 2000 corrections being made will
Indeed solve all related issues.
The IT Division should review its staffing to assess whether it has the
required experienced personnel resources to complete the project
available without cutting other required system development and
maintenance.
Information Technology Division (IT) -A plan needs to be devised and
funded to complete the task of making City systems Year 2000
$
X X X X X $
X X X X X
X X X X X
X X X X X
Planning and Direction Total
X X
X
X X
$ 2,067,500 $ 2,090.000 $ 2,015,000 $ . 2,035.000 $ 2,015,000 $ 10,221000
$ 52,500 $ 50.000
$ 102.500
City oJMraml - Office oJBudget 30 of 47 8:11 AM1211b➢7jrual consolidated inida0ves t&c
A comprehensive business continuity plan should be developed,
documented and periodically tested to ensure continuity in the City's
business functions, as needed, after a loss if IT services in the event of
a disaster. Plan focus should be as follows:
Limit economic loss in case of an unplanned interruption
Minimize disruption to key service/business functions.
Maximize awareness of the City s fiduciary responsibility adopting a
"due care" mentality.
Analyze the citizen/business community awareness implications of
extended service interruption.
Determine exposure and design preventable measures.
Determine recovery and restoration needs and facilitate that recovery
and restoration.
City should develop and implement adequate plan maintenance
procedures which involve representatives from each of the critical
business areas. Otherwise, contingency plan will become outdated
and, thus, of little use in the event of a disaster.
Reciprocal agreements are not a viable alternative for supporting critical
IT operations during unplanned interruptions. Other alternatives should
be explored such as hot sites, mobile operations facilities, internal
backup and so forth.
City should develop speck testing procedures for its Disaster Recovery
Plan. Each test of the plan should be monitored by an external observer
with an independent assessment made and reported back to Senior
Management and the City Commission.
City of Miami
Management and Productivity Initiatives
X X X X X $
X X X X X $
$
X X X X X $
X X X X X $
X X X X X $
X X X X X $
X X X X X $
$
X X X X X $
X $
$ X X X X X $
s The City should develop and publicize a data security policy, as well as
X
X X
X
X
$
standards and procedures for data security administration. Password
administration procedures should be formalized.
Management should develop and implement a formal vehicle to
X
X X
X
X
$
o communicate any personnel changes to security.
Information Technology Division (IT) -IT must govern security issues
X
X X
X
X $ 20.000 $
5,000 $ 5,000 $ 5,000 $ 5,000 $ 40,000
which should not be overridden by departments
X
X X
X
X
$
Information Technology Division (IT) -A comprehensive disaster recovery
plan should be developed addressing PC networks and the mainframe
City ojMrami - Office of Badger
31 of 47
8: /1 AM]2115197firrai consolidated initiatives f&c
City of Miami
Management and Productivity Initiatives
Information Technology Division (IT) -Backup procedures should be X $ 15,000 $ 15.000 $ 15,000 $ 15.000 $ 15,000 $ 75,000
developed for the PC systems
Year 2000/Disaster Recovery Total $ 87.500 $ 1,130,000 $ 430,000 $ 430,000 $ 430,000 $ 2,507,500
I
. -i'! w �e..�-.e.',.ev.-..� 4a"Y4 �kY.[..a{:•:':.L..�s+4.s.- ..Yr, X.tty,, •'��&�'.•��. �k5. �0. .. �++, „�bj' 'N 'mow' ° � - T"A.ro, i ;•
.�.va.%':�.a.....�.=+A.k:ba_ .» ,.... _ �,.. x.'rL..• '�E.= �sM1i. ..m2. " • h.,»�•s¢�. �?.Xaedh.�lsk.����'.+'£�.a',m,>4?.�.».,.f`E - 'tl' • a'3-»-iJ.saw'u:s��:<.' :•., %�. b°'�`,..'•3�;.�„�6 � • 'z < 't'.:^ z'�'i a
hasize training of all Department of Information Technology Staff.
X X
X X X $
90
mation Technology Division (IT) -Formal training program should be
X X
X X X $ 20,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $
)ted for project management and structured methodologies
31op and implement a plan for Information training for the rest of the
X X
X X X $
employees.
Technology Training Total
$ 20,000 $ 10,000 $ 10.000 $ 10,000 $ 10,000 $
60,000 ..
Technology Total
$ 2,176,000 $ 3,230,000 $ 2,466,000 $ 2,475,000 $ 2,455,000 $
12,790,000
t., Critical Success Factors -'Consider deleting 'equivalent combination of
1 training and experience' for professional credentials
Accounting Division -Lack of technically qualified staff in some areas of
the division
Internal Audit -Staff persons with CPA licenses should be required to
meet CPE requirements
Internal Audit -Audit staff positions should be filled with individuals
possessing finance, accounting, audit, EDP and business backgrounds
Internal Audit -Job descriptions should be rewritten to reflect the correct' roles and responsibilities of the staff
` Fleet Management Task Force -Determine proper classifications for work
performed and appropriate number of employees
• Health Insurance Task Force -The plan administrator should be very
knowledgeable in matters involving applicable regulatory compliance
City ofMraml - Offlee ofBadget
X
X
X
X
X
X
X
X
X X
X X
X
X
X X
32 of 47
$ 1,042 $ 1,042 $ 1.042 $ 1,042 $
$
1,042 $ 5,210
8a2 AA412115197fival consolidated initiatives Oc
City of Miami
Management and Productivity Initiatives
-
$
x Operating Practices -Establish the right of managerstdirectors to hire,
X
$
promote and discharge employees based on qualification and job
,•j performance
The City should not hold a register of qualified applicants for two years
X
$
t ; The employee appeals process under Civil Service Board should be
reviewed. A common solution elsewhere appears to be having a
X
X
$
2 hearing officer handle appeals.
Review training and development skills that are needed to upgrade
" existing employee's ability to meet the strategic needs of the City.
X
X X X X $ 114,000 $
10.000 $ 7,000 $ 7,000 $ 7,000 $
145,000
s
� Once review is completed, commit resources to provide skills
development opportunities.
52,000
+ ? Accounting staff should be required to undergo minimum continued
X
$ 52,000
$
3 - < professional training each year. training should address technical
accounting and reporting issues, changes, or updates in the City's
operations, policies, procedures and job duties.
Attending IT auditing conferences, seminars, memberships in
X
$
,ry
-
professional organizations dedicated to IT auditing should be
encouraged on the part of the City's Internal Audit Staff.
A formal training program should be developed for each IT employee,
X
X X X X
- $
-
Q3 • {
which will address methods and techniques required to bring their
performance in line with the City's objectives.
$
The first step should be the development of a formal skills and
X
$
competencies inventory, preferably by means of objective skills
<
assessment tests.
$
At least one other senior Programmer /Analyst should be trained in
X
X
$
LINC application development, and one additional staff member in LINC
Admin. to provide a backup capability. LINC environment has not taken
advantage of the new tools as it should have.
Intemat Audit -The skill set of audit staff should be broadened and staff
X
$ 4,000 $
4,000 $ 4,000 $ 4,000 $ 4,000 $
20,000
should receive appropriate level of training
Risk Management Department Review -Establish a formal professional
X X
X X X X
$
development plan for each of the Department Safety Officers Including
the use of internal and external resources
$
Operating Practices -Design and implement a comprehensive employee
X
$
training program
$
Review best practices in City, County and Slate government in regard to
X
$
leadership succession planning and develop its awn process of
leadership development, recognizing that 51 % of the current executive
workforce will be eligible for retirement by 1999.
Ci oaml - Office o Badger
13 9LJ7
�I 8: /Z 7final tad Lrifl f t c
City of Miami
Management and Productivity Initiatives
Critical Success Factors -Conduct a comprehensive review of personnel
practices
Consider elimination of the two tier wage system. Market rates should
be established for all positions and used to set pay grades subject to
periodic evaluation.
Appointments to key City positions must not be made on the basis of X
favoritism or political sponsorship and loyalty.
Operating Practices -Remove "politics" from the employee hiring and X
promotion process
City leadership must foster an environment that respects and values the X
contributions of personnel at all levels.
Workforce and Leadership Total
Review Unit Certification Issued by PERC as to each bargaining unit to
determine which positions were included in the unit.
Advise each union that as to those positions that are not part of the
certified bargaining unit it is not the authorized representative.
Modify the Civil Service Rules to:
Extend the list of positions which are unclassified to include managerial
and confidential.
Reestablish Managerial and Confidential Employees
Remove the limitation of the five unclassified employees in one
department.
Submit a proposal to the Commission/Oversight Board of the City to
contract with a claims handling organization such as Third Party
Administrator, or "engage" licensed temporary claims representatives to
perform a project oriented "Claims Blitz".
Risk. Management Department Review -The City should request a
proposal for third party administrative handling services
X
X
X X X X
X X
X
X
X
X
Employee Classification Total
X
X
$
$ 171,042 $ 15.042 $ 312,042 $ 12.042 $ 12.042 $ 522,210 '
$ 75,000 $ 75,000
$ 30,000 $ 30.000
City ojMlaml -Office ojBodger 34 oj47 k12 AM12113/9:V al earsolldaled INI/Iapves 1&c
City of Miami
Management and Productivity Initiatives
Claims Blitz to be designed to close as many inactive claims as X
possible, settle or resolve as many pending claims as possible and
establish diary dates for claims adjuster review.
Augment existing in-house legal resources on a short term basis by X
establishing a relationship with outside law firm (s) that specializes in
worker's compensation defense to handle all "claims blitz".
Health Insurance Task Force -Implement a strong subrogation clause X X X X X X
and employ a law firm to protect those interests, paying their fees from
moneys which are recovered
Related litigation and settlement agreements under the supervision of X X X X X X
the City Attorney.
Evaluate the need for and hire additional staff needed to perform claims
X
handling in accordance to best practices after the claims blitz has been
completed. Train new staff.
Create and adopt claims handling procedures that reflect best practices.
X
Enforce strict compliance to these procedures.
Health Insurance Task Force -Worker's Compensation payments should X
X X X X X
be integrated and coordinated with'health care
Health Insurance Task Force -Each health care carrier should produce a X
X X X X X
,claims analysis and reviewed semi-annually be Benefits and Finance
staff
i
Health Insurance Task Force -A claims and financial analysis should be
X X X X X
reviewed annually by Benefits, Finance, Human ResourceslLabor
Relations and the City attorney
X X X X X X
!I Health Insurance Task Force -Should perform a quarterly reconciliation
f and accounting of prescriptions against the administrative fee
X
Risk Management Department Review -The City should utilize "best
practices" claims management procedures for the handling of ail claims
Risk Management Department Review -Should establish a committee of X
individuals representing claims, legal and finance to meet monthly to
discuss all claims reserved over various levels
Risk Management Department Review -City Commission should X
consider raising the dollar level of claims that need to come before the
Commission for approval
Review and if necessary change job description and background X
prerequisites for claims adjusters and claims supervisors handling
worker's compensation claims to reflect the complexity of the work and
City oJMiami - office of Budgef 33 o`47 8:12 AM13/15197fnal consolidated initlatives Oc
a a�.� as say a� of as a as �is as ar a. �a at ar ■a s
r rr rr �r rir re ® r� r r a■i ar ar ar rr r rr ■r rr
City of Miami
Management and Productivity Initiatives
Elevate the reporting relationship of the functional leadership of the X
Safety Department.
Risk Management Department Review -City should re-evaluate the X
reporting hierarchy for the Safety Department
Risk Management Department Review -Fully implement LMP 1-95 (City X
Wide Safety Committee)
Risk Management Department Review -Fill the Police Department Safety X
Coordinator position within the next 30 days
Risk Management Department Review -Identify the roles and
responsibilities of all City management as it relates to safety and hold
them accountable
Risk Management Department Review -Complete an assessment of X
each City Department's safety and health program using the OSHA
Program Evaluation Profile
Appoint an evaluation committee to perform an interim review of the
effectiveness of vendor selected to implement the managed care
arrangement for the City of Miami and the program.
Health Insurance Task Force -Reevaluate the executive plan which X
provides no incentive for managed care election by the executive
Risk Management Department Review -By December 1, 1996 a
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
Group Benefits and the Human Resources / Labor Relations
Departments should all report to the same ACM.
Health Insurance Task Force -The Benefits Department should be part of
the Human Resources Department or Labor Relations Office
Health Insurance Task Force -The Benefits Department should be part of
the Human Resources Department or Labor Relations Office
Health Insurance Task Force -One person should be designated in
writing as plan administrator
X X
X
X X
X X
X
X X
X
X X
X
X X
X X
X
Workers' Compensation Claims Initiatives Total
$ 75,000 $ - $ 30,000 $ $ - $
X
$
X
$
X
$
$
X X
X
X
X
X $
$
City oJMiaml - Office ofBudgel 36 of 47 8: /1 AMI2115197fuml consolidated hiltladws r&c
City of Miami .
Management and Productivity Initiatives
The City should immediately employ an insurance Benefits consultant to
X
$
be on hand for development of pricing and Benefits models for
insurance.Senefits procurement.
4
X ,
b8 Health Insurance Task Force -An insurance broker should be available to
E#x the management negotiating team to provide actuarial analyses
X X
X X
X
X
$
a�-OOn Health Insurance Task Force -Multiple year health care carrier contracts
gshould be negotiated and re -negotiated not less than every two years
3
,.'. Health Insurance Task Force -The Benefits Office should have the
X
$
g%` _ services of a an insurance broker available for use upon demand
k
r, Health Insurance Task Force -Authority to negotiate any type of benefit
X X
X X
X
X
$
plan to contract with an insurance carrier should
,r Health Insurance Task Force-Attomey and Chief Financial Officer before
X
$
incurring obligation
Health Insurance Task Force -Should explore the possibility of
X
$
contracting for some benefits utilizing the combined leveraging ability of
_ multiple local communities
Health Insurance Task Force -A strong subrogation clause should be .
X X
X X
X
X
$
" established and enforced within the health care plan
$
3
;. Health Insurance Task Force -Cost containment incentives for third party
X
$
administrator or health care contractor should be added to the contrail
P Health Insurance Task Force -Wire transfer procedures should be
X
X X
X
X
$
examined semi-annually and transfer accounts should be continuously
audited for accuracy
Health Insurance Task Force -A survey of all benefits should be
X X
X X
X
X
$
4 conducted not less than every two years to determine the competitive
position of the total benefits package
Health Insurance Task Force -Should periodically evaluate the difference
X
X X
X
X
$
between sell insurance and commercial insurance to determine if
advantages lie in changes
Health Insurance Task Force -May want to consider offering, on a
X X
X X
X
X
$
voluntary (employee pay all) basis, supplemental life and disability
insurance
Health Insurance Task Force -Reevaluate the proportional cost for health
X
X X
X
X
$
care borne by the City where retirees are concerned
Health Insurance Task Force -Should expand flexible benefits and avoid
X
$
paying the employer portion of taxes on earnings
City ofMaml - OQce of Budget
37 of 47
8:12 AU12115197final consolidated inillalives f&c
! ! . m ! !
City of Miami
Management and Productivity Initiatives
Health Insurance Task Force -Incorporate into future ASO contracts a x
stipulation that it is the responsibility of the third party administrator to
constantly seek opportunity for cost efficiency through purchasing
Summary plan descriptions should be updated and distributed timely. x $ 20.000
Health Insurance Task Force -A Summary Plan Description of all ' x
benefits should be prepared and distributed to each plan member with
all terms and conditions clearly spelled out
Engage a private employee Benefits communications and enrollment
x x
x x x x
firm to take over the responsibility of annual communications and
enrollment of all core and voluntary Benefits.
Health Insurance Task Force -The benefits program needs a formal
x x
x x x x
delivery system
The City should receive a detailed actuarial report identifying the correct
x
x x x x
current claims loss reserve for the medical plan and then incorporate a
plan for achieving that reserve within five years. .
Health Insurance Task Force -The benefits program needs coordination
x x
x x x x
to arrest and control costs
The City should not negotiate any agreement wherein it both
x
x
relinquishes control and guarantees performance at the same time,
such as in the current F.O.P. medical plan agreement regarding the
reserves -Must not be tied lo"Prevailing Benefits" clause.
Employee Insurance
Benefit Total $ 20,000 $
Retain the management right to subcontract or privatize any and all x x
aspects of job functions without further bargaining over decision.
Bargaining shall be only over impact of decision.
Fleet Management Task Force-Outsource all or part of fleet services x • x X X x
through either the private sector or Metro
Eliminate all 'Prevailing Benefits" clauses. x x
Eliminate five percent Increase in salary, and hence all accrued benefits, x x
on retirement.
x x
Eliminate Union control or veto of any City -funded programs.
$ 20,000
City of Miami - Office ojBudger 38 oj47
8:11 AM11/15197frnal conwildared rnirlarims 0c
City of Miami
Management and Productivity Initiatives
n
Eliminate all City -subsidized payment of time used for Union business,
X X
X
$
including 'lime pool,' release to work, negotiations, grievance
investigations, etc.
"
Centralize all communications with the Unions through Labor Relations
X
X
$
�-ST3s :.«
Officer. This includes grievances, work peace issues, concerns, etc.
g
Prohibit any department, including Fire Department, from entering into
X
X
$
"side" agreements under the Collective Bargaining Agreements.
Cost out the total financial package under the agreement to determine
X
X
$
the actual "wages" paid.
$
Fleet Management Task Force -Terminate the current Police take-home
X
X
$
policy
�.:.
Health Insurance Task Force -The chief benefits officer should
X
X
$
participate in some form with Union negotiations where benefits are
' .
involved
} -Risk
Management Department Review -The City should conduct an
X
$
-
immediate review of all labor agreements to identify cost savings
Retain management right to make decisions required to operate and
X
X
$
Y
limit bargaining to impact only.
Collective Bargaining
Agreements Total $ $
$ $ $ $
e tt
AM R
Q
Continue the Labor -Management Committee meetings In which the
Union and the Administration can discuss specific issues and ideas on
X X
X X X X
$
an ongoing dialogue with the City.
Operating Practices- Develop a system to improve internal
X
$
communications (staff meetings, employee interaction meetings)
Institute a "Suggestion Box" for employees; consider incentives
X
X X X X
$
programs.
Review current fire inspection fee collection procedures.
$
Establish Gear guidelines and procedures for department heads to
X
$
follow in their daily labor-management relations with representatives of
the unions.
Recognize the importance of the Office of the Labor Relations as the
X
$
institutional manager of labor management relations at the City of
Miami.
ml-Oidger
8:11 7flnalred Lrl! c
l i i i i i iM M ! i i
City of Miami
Management and Productivity Initiatives .
x. = Increase frequency of communications between employees and City
administrators.
Effectively integrate Union officials Into the strategic planning process of
the City.
To improve communications, City management needs to recognize and
I. rasped the leadership roles of Union officials within their organizations.
7,
X
X
X
Labor Relations Meeting Total
Human Resources and Employee Benefits Total
$ - $ - $
$ 266,042 $ 15,042 $
$
$
$
- $ - $ _ $
342,042 $ 12,042 $ 12,042 $
647,210
�`°`� Cap�Ar�ts li a n iig s FMnn gerntint:� � .. °�•.
ss:J Y�erJw.�da' xf5*r�SS F».a,�:. _
_,,
,�.tia". rt."tC.'z.
u�ww�S>
�` a•,;�
�
`fir
�
k.•
Establish a capital assets management policy, similar to the following:
X X
$
(In seeking to maximize the City's return from its current and future
asset portfolio, the City will aggressively manage these assets) :
IFleet Management Task Force -Review remaining individual vehicle
X X
assignment and vehicle take home policies
$
Fleet Management Task Force -Work with using agencies to determine
X X
$'
fleet size and composition necessary to perform departmental functions
Fleet Management Task Foroe-Evaluate and establish a molorpool,
X
where applicable
X
$ 96,000
$
96,000
Fleet Management Task Force -Implement a vehicle
X X
$ 650,000 $ 650,000 $
$
650,000
replacament/disposal program using proceeds from sale of vehicles to
$ 650,000 $ 650,000 $
3,c�U
offset new vehicle purchases
Operating Practices -Establish a preventive maintenance program for
X
park facilities and equipment
$
Operating Practices -Consider maintenance costs and other operating
X
$
costs prior to the approval of Capital Improvement Projects
Maximizing the City's return will Include pursuing all. ownership/mgmnt.
X X
$
strategies, which optimize the benefits of private ownership (tax revenue
streams and elim. public costs associated with ownership), while meeting
the City's public policy objectives.
Coconut Grove Convention Center Increases -Coconut Grove
Convention Center Increases
$
City ojMlmni - Ojj/ce ojBudgel
40 of 47
8:12 AM/211"7fiiw1 consolidated ini0aliws r&c
City of Miami
Management and Productivity Initiatives
r
Coconut Grove Convention Center Increases -Increase the CGCC sold
X
$
38
out lot from $8001day to $1500/day
Z
Coconut Grove Convention Center Increases -Add a move-in/move-out
X
$
h
rate for CGCC
Coconut Grove Convention Center Increases -Increase the minimum
X
$
a°
rental guarantees to $2000 per hall or charge a flat fee for usage of the
halls eliminating the option of.a minimum or net rate
s
$
Review of Marina Rate Increases -Recommend increasing rate for
X
$
•
sightseeing vessels from $.40 tf to $.80 If
Y
Review of Marina Rate Increases -Recommend increasing rate for
X
$
5Z
commercial vessels comparable to the County
Review of Marina Rate Increases -Recommend elimination of the 20%
X
$
a-z4
discount to City residents
p
The City should evaluate various levels of asset privatization for all new
X
$
4
capital projects as it plans, builds, or acquires additional public facilities
-Kz
and assets.
The City will manage its existing portfolio by selling or donating non-
X
X
$
- buildable parcels; "packaging" and marketing properties; "packaging"
properties for future use; reviewing alternative ownership/management
options.
$
Asset Management Policy Total
$ 746,000 $ 650,000 $ 650,000 $ 650,000 $ 650.000 $
3,346,000
Complete the Inventory of all City owned and leased property.
X
$
$
s
Opportunities Task Force -Should compile a complete inventory of all
X
$
real estate parcels owned by the City, including location, description,
current use, etc.
Opportunities Task Force -Parcels should be categorized according to
X
$
their use, i.e., city operations, leased to third party, vacant, etc.
Document current condition of all properties (e.g. brief description,
X
$ 60,000 $
60,000
digital pictures).
Prioritize properties identified for sale or lease and establish potential
X X
$
market value through assessment and/or appraisal.
Establish future property lax potential.
X X
$
City ofMaml - Office of Gadget
41 of 47
8:12 AM1211"7fina/ consolidated initlallves 1&c
Add the following info. to the property inventory spreadsheet: book
value, assessed valueldate, appraised valuefdate, potential annual
property tax base based on currenttfulure use, annual maintenance
cost, surplus status.
Plus targeted disposal year, projected future use, and parcels designed
as parks and recreation, public space.
City of Miami
Management and Productivity Initiatives
X X X
X
Property Inventory Total
Develop Annual Property Plan that supports the proposed City Asset X
Management Policy.
Opportunities Task Force -Analysis should be performed for each parcel X X
of lease property to determine certain factors (see task force report for
dies Task Force -Parcels currently used by the City should be X X
to determine certain factors (see task force report for factors)
X Opportunities Task Force -An analysis of surplus parcels should be X
performed to determine certain factors (see task force report for factors)
Opportunities Task Force -Should consider selling the Miami properties Sale of properties requires an advertising and bidding process
to one of the lessees or another third party
Sale of City Assets -All city property offered for sale should be reviewed X
by the Law Department
Sale of City Assets -Original funding source utilized to acquire and X
X
improve city owned property needs to be identilied and analyzed All city
property offered for sale should be reviewed by the Law Department
Sale of City Assets -Review all City Parks and evaluate the ability to
X X
provide a consolidated neighborhood park system, selling any non-
essential and non -restricted park land
Sale of City Assets -Evaluate the transfer of small neighborhood parks to
X
Neighborhood associations
Sale of City Assets -Sell various identified properties (see task force X
X
report for speck listing of properties)
Sale of City Assets -If properties are sold to governmental agencies City X
X
should negotiate a voluntary annual payment in lieu of taxes (PILOT) fee
in connection with such sales transaction
$ 60,000 $ - $ - $ $ - $ 60,000
Oty ofNfidml - Office ojBerdger 42 of 47 8: l2 AM/2//5/97j7 ial comolldaled LdAadves t&c
Revenue Enhancements -Sell inappropriate park properties (or revert
them to original donors)
Each City Department should prioritize its properties /facilities based on
their Department's Strategic Plan.
ie Annual Property Plan should include a summary of the following
ormation: Properties to be sold, properties to be leased. leases due
renewal, tax impact, cost of maintaining.
,aluate and implement measures to utilize public parks and recreation
Aities to better generate revenue.
Maw park and ticket surcharges; increase special event rentals and
3s; consider installing vending machines in public parks and facilities;
ict guidelines for fee waivers; institute fee for use of public boat ramp.
One department should be responsible for and adequately funded for
the maintenance and facility operations of all improved City properties
Consolidate all property management / maintenance functions under
GSA.
Transfer the property maintenance individual currently in the
Department of Planning and Development to the GSA Department.
Develop maintenance standards according to property type.
Analyze current property maintenance needs and integrate into
maintenance plan and budget.
Adopt space/office standards that would apply to all departments.
Establish standards for office use and allocation.
City of Miami
Management and Productivity Initiatives
X
X
Annual Property Plan Total
X X X
X
$ 250,000 $ 175,000 $ $ $ $ 425,000
$
City o miami - Ofce o Budger 43 0 47 8:12 7final raW /niiiai ues r&c
City of Miami
Management and Productivity Initiatives
Current monthly rental rate. X $
Lease expiration. X $
Plan to re -negotiate rental rates / terms prior to expiration of leases. X $
Determine future rent increases based on potential land value and use.
Annually review the inventory to assure that the city is maximizing its X X $
return on rental properties as per Annual Property plan.
$
Develop a standard lease terms outline in conjunction with the City X $
attorney that will best protect the City's Interests as a guideline for future
lease renewals. $
Establish and enforce a policy that the Department of Community X $
Planning and Development must approve all lease proposals and
property purchases.
Move the collection and tracking of lease payments to the Community X $
Planning and Development Department. Integrate rental revenue
information in the financial system.
Start an active campaign to identify delinquent tenants and bill for past X $
rent due. Develop and enforce a policy for late payment which includes
provisions for late charges and eviction.
Lease Administration Total $ 110,000 $ 110,000 $ 60,000 $ $ $ 280,000
City of"ami - O ee ojBadgel 44of47 8:12 AM]211"7fi xrl consolidated L,ttiatives ire
Organize the City Manager's Real Estate Advisory Group of private
industry professionals who are knowledgeable in the area of real estate
to review the City's leases and provide advice on leasing practices as
needed.
City of Miami
Management and Productivity Initiatives
X
Private Business Review Total
rental properties on the government cable access channel. X
Marketing of Rental Property Total
Responsibility for environmental compliance at City operated properties X
should be consolidated into a single department.
The Ciws Leases need to be revised to better protect City's liability X X
associated with tenant activities which may result In soil and ground
water'contam inalion.
The City needs to establish a policy of environmental compliance on all X
of its properties and a program of annual operational audits to ensure
such compliance.
Fleet Management Task Force -A complete review needs to be
performed to determine DERM and OSHA noncompliance areas
In order to maximize the proceeds from the sale of surplus property, the
City may want to consider selling on other than "as is" basis, in
appropriate circumstances.
X X X X X
X
Environmental Issues Total
$ 50,000 $ - $ - $ $ - $ 50,000
$ 50,000 $ 50,000 $ - $ - $ $ 100,000
There should be an Assistant Manager in charge of Development who X $
oversees the management of City property and coordinates the Annual
Property Plan with the Strategic Plan.
City o Mlaml - 0 rce o Bvdge! 43 0 47 M M M M 8: /2 AM_l1/1 SN7final one solfdaled hdllallves f&c M
City of Miami
Management and Productivity Initiatives
The City should continue to assemble "expert panels from the business X X
community to give advice on critical segments of City owned / leased
properties.
Virginia Key and other large parcels of City property should be X X
assembled into single, consolidated RFPs and these should go out to
bid. Breaking up land parcels into different RFPs makes economic
development difficult.
With Watson Island, the southwest tract of land should be designated for X
a "state of the art" Science Museum or a use that is compatible with
other culturallarts uses found in other 'World class" cities.
With Dinner Key, an RFP to lease the existing convention center and X
site for development that maximizes benefit to the City, but at the same
time does not erode the lax base of the surrounding commercial
properties.
With the Knight Center Nations Bank Building Garage and the land X X
under the Hyatt, the property should be considered for sale since it has
been operated at a loss for 15 years.
With the Department of Off -Street Parking, the City should buy all lots X
and garages and then develop an RFP to get a private company to
manage the lots with an initial 5-year renewable lease. Profit to go to the
general fund.
Key Property Disposition Total
Eliminate the three (3) bid requirement for any sales or lease of
properties less than $500,000 and all leases with terms of less than five
(5) years. These would not need to go to the Commission.
Revise water front property section in Charter to establish reasonable
thresholds so That small parcels do not need to go to the Commission for
approval.
City of Miami
Management and Productivity Initiatives
Charter Revisions Total
Capltal Assets Planning and Management Total
$ 1,506,000 $ 985,000 $ 710,000 $ 650,000 $ 650,000 $ 4,�
11
C!ry o(Mlam- Buget 8: /T AMT/S/97fna! cou red lnlRari c, 4M_=_
APPENDIX C
RECOMMENDATIONS
DEPARTMENTAL
COMMENTS
• • Y' ' _;`.; _ The City should implement the reconciliation of detailed subsidiary
records to the general ledger, at a minimum, on a monthly basis.
Reconciliation should be reviewed by supervisory personnel.
162, YF 'y� In preparing monthly reports, the following should be considered:
Proper cutoff procedures should be implemented to facilitate for the
proper recognition of revenue and expenditures.
Standard journal entries should be assigned to specific staff
accountants. All journal entries should then be approved by the
�6•: "'° finance director, or general ledger supervisor prior to input into the
general ledger system.
q. The subsidiary lagers should be reconciled to the respective general
ledger balances.
P i All standard closing procedures should be written and be incorporated
into the City's Accounting and Procedures Manual and made adailable
to the accounting staff.
The City should implement a financial reporting function, including the
-` appointment of an individual who will be responsible for compiling and
47' drafting the annual general purpose financial statements and other
»g `. required reports.
The City should purchase a computerized financial reporting package
that can be integrated with the City's current general ledger system.
This system should be configured to produce the City's general
purpose statements.
An in depth manual of accounting policies and procedures should be
prepared which, at a minimum should include:
ras"f
k,
r •gt�a"; wR A chart of accounts containing an adequate explanation of account
use and content.
purpose,
'....eM< 'y�zt', 'd`7.3':�,;T .:aia-r 'j+,r;, x-e;.i'�.w'1'•`%xQ:F:$.'}�:w; �E;K;ss .-k.�r��,.�,'� x�4
.ij Yea \ a6%' •. i,:h': ii" ,�:ii :`,�" � P'�:M a', "',J,'S<r. , .:s,�w r.3� �` � 9
rS
?°44�> ra;.,:`i -.eTiY .. J.�� %:^4a �.Rn -' ::; �>.,.: Pv.E'x•,'••§:.i £G ?��.. .! r.(;.Sn� txlE%'c`,s$•'�s...' �iY ��%n'..g
n �•'
s .7
YiY
.R �S "fC•"
Finance The supervisor responsible for the Moore Receivable System will provide a monthly reconciliation of detailed subsidiary accounts to the SCI
General Accounting System.
Finance See the following initiatives (163-166)
Finance Cutoff procedures have been implemented to facilitate for the proper recognition of revenue and expenditures.
Finance Specific staff is assigned to enter journal entries.
Finance Since the new SCI system does not provide subsidiary ledgers, the Finance Dept. and IT are working with SCI to institute a subsidiary ledger
system.
Finance Once modifications to the SCI system have been made, standard closing procedures will be written and incorporated into an accounting
procedures manual.
Finance The City is currently negotiating the purchase of a Comprehensive Annual Financial Report module from SCI. This module meets the
government accounting and reporting standards and will also be used for internal reporting.
Info. Tech - A. Stancato The current GSA work order system is over 12 years old and technologically obsolete. Upgrading the system to current standards would
require an investment of over 10,000 hours ( 5 persons for a year).
Given current staffing levels, the ongoing workload and the year 2000 conversion efforts for other systems, this conversion could not be
accomplished in-house in a timely fashion.
Thereon Info. Tech. - Stancato is the recommendation of the Info. Tech. - Stancato department that a commercial software packahge be
purchased to replace this system. The new system will have a client / server archlnfo. Tech. - Stancaloecture.
Develop scope of work and RFP for the project
Follow RFP process to select firm and award contract.
Addlnfo. Tech. - Slancatoion of an Info. Tech. - Stancato programmer poslnfo. Tech. - Stancatoion to support this application (Costs ref*
Procure and install additional hardware required to support the client / server application. (Assuming that Al and PC replacement projects are
implemented, no additional hardware expenditures would be necessary. If these projects are not undertaken then
hardware costs of $225,000 would be added to this project.
Convert existing data and implement new package.
Finance See comments below:
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
V, : _ ` ' Documents flowcharts of significant accounting systems, including Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training
,�, ^� ,_., ,;, Documentary 9 9 Y 9 p g program currently under development.
' = their interrelationship, where applicable, with other departments within
•r•••,;,;.�a� ���� the City.
a� A list of standard forms used in the City with detailed explanations of Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
their purpose and preparation.
mi - Ordger ® ��; 53 Masters ar ojls
r<G if IGliain
S s �.
S=. %h
^: �• t.r : `.�: 3 � 1
M8na r� lnitlatl µ �' Gt'8n�` u
_
'F x
°
� -Numer{cel' `.STAfF ASSiED'`'= COMMENTS' `�
4ia-�. Via,.
hence > � :.... °..... . , ..,;.._,�.�: �;. •�. - ,�s..,�.�. F Seq
M'. Periodic inventories should be taken to verify'the continued existence
of the fixed assets. Any unallocated items should be appropriately
investigated.
P, " gThe fixed asset subsidiary ledger should be reconciled to the general
130 = .ledger, at a minimum , on a quarterly basis.
The City, should assign the responsibility of maintaining its general fixed
assets to an individual.
The City should implement the following to improve its account
:, 1S2r
receivableprocess:
The City should use a formal invoicing system for all routine billing as a
mechanism for ensuring the timely collection of outstanding invoices.
The accounts receivable general ledger control balance should be
supported by an appropriate level of detail that provides management
;with information to monitor the collecting of accounts receivable.
This detail should preferably be in the form of an aging report that
presents each customer's outstanding balance based on the actual due
z„
date.
ing trial balance should be reconciled monthly to the general ledger,
material differences should be investigated and resolved on a timely
The City should immediately review the nature of the approximately $9
million loans outstanding and evaluate the collecting of such balancei.
In addition all future loans should be supported by appropriate
documentation Including formal loan agreement.
The City should create the position of Grants Administrator. Individual
t?,, a,%°''•_•` .,; would be responsible for ensuring that claims for reimbursement are
',;• filed properly, in a timely manner, and in accordance with grant
The administrator would also be responsible for coordinating and
monitoring the Citys compliance with requirements applicable to
federal and slate financial assistance programs.
This individual would also assist in identifying additional federal and
� :.; state programs that maybe available to the City.
City should designate a person to monitor the activities of the
contractor to ensure proper adherence to the requirements of the
Relocation Assistance and Real Property Acquisition Policies Act.
Finance Subsidiary ledgers are reconciled to the general ledger on a monthly basis. A physical inventory of all the City's assets is planned for fiscal year
1997/98.
Finance The reconciliation is completed on a monthly basis between Marshal and Stevens Fixed Asset System and SCI, at the subfund ledger level.
Finance Departments have been instructed to submit inventory reports in a timely manner.
Finance The City currently has in place a formal invoicing system and does perform routine invoicing of miscellaneous receivables.
Finance The City currently has in place a formal invoicing system and does perform routine invoicing of miscellaneous receivables.
Finance The Finance Department, with SCI and ITD, is working on,producing a detailed report to reconcile the accounts receivables to the general
ledger control account to determine the allowance for bad debt,
Finance The Finance Department, with SCI and ITD, is working on producing a detailed report to reconcile the accounts receivables to the general
ledger control account to determine the allowance for bad debt.
Finance After researching the approximately.$9 million in loans, the City discovered that $800,000 was recorded as a fully reserved loan and as a long-
term debt. This will be adjusted to reflect a reduction of the reserve.
Office of Budget The Finance department has hired a Grants Administrator.
Office of Budget The Finance department has hired a Grants Administrator.
Budget
The grant administrator will monitor and coordinate with accounting satff to ensure that the centralized grant files are complete and comtain
copies of all relevant information.
Office of Budget
The Finance department has hired a Grants Administrator.
Budget
The grants section in the Budget Division will continue to research potential grants and disseminate the inofrmation via a monthly newsletter and
via individual memos to department directors.
Alfredo Duran
Alfredo Duran, Housing Development Coordinator, will be responsible for monitoring the contractor to ensure compliance with the Relocation
Assistance and Real Property Acquisition Policies Act.
Budget
Teh city has informed all subrecipient monitors and has reviewed and implemented internal controls to ensure compliance with federal
regulations that require executed grant agreements from subrecipients before funds are disbursed.
City ofMimd - Office of Budget 13 ofso 7:53 AM11/17197Masrer comments as of 11-16-97.x1s
-7- 's,
tilir w` cal.- Q,
r
-':STAFFAssi COMM NTS�' 40
rr
anca,
7
7,7_77,
Finance-
77
The organizational criteria in the Five Year Plan should be applied to Budget The TO for each department is being reviewed prior to the 1999 budget.
lower levels of the City organization.
Budget Management Division -Placement of Task Force positions
Office of Budget Initiative is under evaluation.
within the NET Offices should be investigated as an option
Budget Management Division -Grant coordination should be Office of Budget The Finance Department hired a Grants Administrator.
strengthened.
r25
Procurement Management Division -Oversight and related policies of
J. Carter
Purchasing Department has been reestablished as a division in GSA. Proposed GSA reorganization will require Chief Procurement Off
the Procurement Division should be strengthened
report to Assistant Director - Administration.
Strengthen and broaden the role of Internal Auditor, including:
Internal Audits:
This recommendation will be accomplished by the Mayor and/ or City Manager.
Public Facilities:
Audit revenue sources within Public Facilities on a annual basis.
j, a', •
Substantial operational auditing to ensure that approved policies and
Office of Budget
Part of benchmarking initiative.
procedures are being followed.'
Review of travel and expense accounts of the commission and senior
Finance
Travel cost service in use for all travel. f�J;
management in accordance with predetermined objective criteria.
Review of new or revised City projects while in progress and/or within
Finance
Costs associated with City projects will be continually reviewed during the construction period and final costs and revenue projections, if any, will
0,
six months or a year after completion to compare with financial
be reviewed and reported on after the project is operational.
forecasts and enhance future projections.
U.-
Staff to review GFONs "Recommended Practices for State and Local
Finance
Staff is currently reviewing document and will proceed with an implementation plan.
Governments." Develop appropriate implementation plan.
V
;`
Reconciliations of the City's cash accounts should be performed
Outside accountants have been assignedd and have begun the reconciliation proces. Reconciliations will be prepared accurately and on a
t
monthly. These reconciliations should be prepared in a standardized
format designed
timely basis every month.
by the City. All reconciling items should be fully
investigated, explained and supported.
All reconciling items should be appropriately investigated and resolved
Finance
Bank statements are currently received on the 15th of each month and reconcifitations are completed by the 25th of each month.
on a Timely oasis. In addition, the finance dept. should exercise
prudent custodial control to ensure the safe keeping of all the City's
financial records, including bank statements.
Inventory should be counted annually. Policy should address general
Finance
Departments have been instructed to submit inventory reports in a timely manner.
3
inv. procedures including names of staff responsible for the inventory
count, the scheduling of inventory taking and the ID of controls needed
to ensure an accurate count.
In order to improve fixed
and maintain control over general assets, the
Finance
Departments have been instructed to submit inventory reports in a timely manner.
city should develop a complete detailed asset records. The following
guidelines should be utilized;
v?,Z '
The fixed asset subsidiary ledger should be updated throughout the
Finance
Anew Fixed Assets SCI Module has been purchased. Departments are being instructed to submit inventory reports in a timely manner.
year as fixed assets are acquired or disposed.
"M
1 - 01Wdge, 7:53 A1JJJWWAuMw
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imid
i m m .m m m m m m m M IMM m m r! M M
� n•
P• a `t<�nd-ProduCti i " .. f es ^ >Mana em
�vi'�'In t t�tives.
8
�GpIVIMEN'CS;
1 ED.
SiAFF•ASS aN
6 s
, .-.. .... .....E .. ..".. .. - ...max.. ...
uen a �. �: ' .. ,.>.';.•.",;,
_: ty:.
'
� ., , - ..
Violations are identified and pending follow up. This can only be done by licensed inspectors from various trade sections of our Department,
- . (
Violations are already computerized via the Complaint Tracking System.
123
Train.personnel for technical and interpersonal skills., Community Development! N.E.T.:
On -going Cross Training and state certifications.
Building & Zoning:
Our personnel are licensed in their fields and maintain current their certification, however they would benefit from interpersonal skill training
since they are in direct contact with the public all day.
None
Could be one of the projects of the Training Coordinator if funding approved.
Consider connecting enforcement districts with Commission Districts as
Review has been made and staff has recommended against changing boundaries, unless requested by the public
needed. City needs fair and equitable policies appropriate to each
neighborhood.
•' < ,'." 3
A study of whether the City should sell code enforcement liens should
be conducted. The analogy to tax liens may be appropriate, but there
The analogy between CE liens & tax liens is not appropriate, since CE liens are not for services rendered to the public, except for those
liens. These liens for the most part would have little value on a sale.
I
are legal and policy issues which need exploration.
zN
tt
j. y»
K
J
A private/public partnership should be formed between the Greater Manager's Office
The.City will be working with the Chamber of Commerce, the Beacon Council and the Blue Ribbon Task Force to create this partnership to
Miami Chamber of Commerce and the City of Miami. This partnership
foster -economic development in the City.
should develop a strategic plan for the economic development of the
(r,
City of Miami. This would be for the entire City.
Explore the value of consolidating into a single agency the
responsibility for the economic development in the entire City.
Establish a specific entity with similar responsibilities as the Beacon
Council to lead economic development for Miami.
This agency should have the ability to condemn properties and provide
incentives for development and to attract business to the City of Miami.
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.
agency should include the Downtown Development Agency.
Designate a City employee who will be liaison between the City and
Beacon Council. Intention for the Beacon Council to be viewed as
non-competitive organization.
Utilize state and private education institutions to attract business to
urban core.
Actively pursue and lobby for the extension of the light rail system
westward through Kendall. The extension will provide increased
accessibility of the available work force to the downtown core.
Review land use in the Downtown/Brickell core to provide for mid -rise
office development.
Manager's Office • -'Rather than a single entity, coordination through a single office should be established.
Manager's Office The only entity that has eminent domain powers, other than the City, is the CRA.
Manager's Office Information will be desiminated through this economic development office.
Manager's Office We agree.
Manager's Office The economic development office will be in charge of this coordination.
Manager's Office The Economic Development Office will work with education in this effort.
Manager's Office The City will support all transportation improvements to make access to Downtown easier.
Manager's Office - Land Use plans are constantly under review.
City ofMlami - Office of Budget
11 of50
7:53 AM11/17197Masfer comments m of 12-16-97.x/s
"v
p�4, T
A461ilsilcal ". I � , �', FF1 `A4J1bNE6","-
�_J
5, t� Centralize and simplify the process of applying for land development Development Regulation Division and 6 months to I year implementation
changes, including master plan changes. Hearing Boards Section of the Department
of Development Building and Zoning (DBZ);
Lourdes Slazyk, Assistant Director and
Teresita Fernandez, Chief of Hearing
Boards.
Seek vehicle for developing public/private partnerships for development New Public/Private Development Division of I year - may require Charter and Code Amendments.
and development. n re the Department of DBZ; Arleen Weintraub,
Development Administrator.
Law Dept. Hearing Boards will assist i
Seek public input on the City Charter to improve the land lease process f needed.
and fee structure, including cost of appeals.
Develop city-wide design and landscape standards. Development Regulation Division and Citywide "Exterior Facade Code" already being implemented; Landscape standards under Dade County already in place; other specific
Hearing Boards Section of the Department design standards to be developed in conjunction with special district designations; citywide design standards not(cont.)
of Development Building and Zoning (DBZ);
Francisco Garcia and Enrique Nunez
(Division staff)
Identify and communicate to staff and public the mission of code
nf
a iorcement . Should be considered part of
development/redevelopment policy rather than punitive.
Identify specific individual with responsibility and authority for code
enforcement to set overall policy and direct compliance strategies.
Add "appearance code" that is enforceable and enforced.
Neighborhood improvement is the message.
Consider "amnesty" program to have people pay whatever they can on
fines, but only after property has been brought into compliance.
Implement aggressive enforcement against properties and owners
refusing to come into compliance, including alternatives to foreclosure
such as court injunctions, personal property levies, etc.
Need senior policy level review of property lien foreclosures to weigh
benefits/liabititiesof City ownership. City ownership of properties not
in compliance needs to be addressed.
Not feasible due to case by case review required to implement; however, "Exterior Facade Code" now being implemented will accomplish much
of the same desired effect.
SA;
Code Enforcement Officer Code Enforcement officer have been instructed to issue warning tickets before issuing actual citations as part of standard procedures,
SW - K. Woods Solid Waste hired six inspectors.
Vacant Position to be filled. Vacant position to be filled. Presently in-house staff performing function.
1st Reading approved by City Commission.
Code Enforcement Board Cases that have complied are brought in front of the Code Enforcement Board to mitigate fine. 0
Building i Zoning The Department of Building & Zoning has instituted procedures to legalize illegal construction following Miami -Dade County Ordinance #97-107.
City Attorneys Office City Attorney's Office implementing
Santiago Ventura and Hector Lima In case of life safety, the Building & Zoning Department will need to have an Ordinance passed to work closely with the Law Department in
order to achieve compliance.
Staff reviewing alternatives to foreclosure to assure compliance.
Consider N police and fire could assist in identifying possible code Police, Fire & NET Police and Fire working with NET offices in referring possible code enforcement case violations.
violations during the course of their normal duties. Could also be
computerized.
7:53 Master as of W7 is
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Institute a more effective use of technology.
�Develop
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performance measures that target improving the service and
Santiago Ventura
Performance measures are already in place in three of our areas of service to the public. 1) plans review, 2) scheduling of inspections and 3)
` - • ; • '�
reducing the cost of these functions.
inspections conducled.
the plans review area has in place a performance measure which assists the supervisor in making sure that plans do not remain in the plans
review area no longer than required. Reports are reviewed on a weekly basis to make sure we are on target.
The Department has a pool of six clerks to answer questions and schedule inspections. The dept. has measured the average number of
inspections that should be recorded daily by a clerk.
Each day a report is printed & if the number is below the average the supervisor of that clerk is notified for either an explanation and/or a follow-
up to correct the problem.
There is an average number of inspections that should be performed daily by each inspector. Each inspector is required to submit a daily report
listing all inspections, slops,lunch & breaks.
In, additipn Chiefs of each section are given daily report which lists all inspections scheduled without results entered. Chiefs are able to see if
Office of Budget
the daily reports are on target with the computer report.
Part of benchmarking initiative.
r v =,a
Correlate funding of Department with performance measures and
Bldg. & Zoning
Not applicable.
objectives.
Office of Budget
Part of benchmarking initiative.
•, „, .'nE,.,.. ,
Revisit staffing expertise and experience are
g qualifications.' Technical ex p
Santiago Ventura
8
The South Florida Building Code has strict requirements for personnel enforcing the code. The Dept. of Personnel Management works closet
8 q P 9 P 9 Y
critical to efficiency and customer service.
?. Review compensation and benefits in light of the rest of the City and
within the overall reorganization plan.
Review Department's reporting relationship to strengthen oversight and
effectively monitor customer service.
Improve relationship and coordination with Dade County to expedite
jthe permitting process.
Expedite non -controversial items supported by staff.
Request that the County appoint one person to expedite processing of
necessary county approvals of City permit applications.
with our department in qualifying in accordance the code, all of our inspectors & plans reviewer positions.
Employees are certified by both the Stale & the County and maintain their certification by attending continuing education classes yearly. all
other employees meet the position requirements through the Personnel Department.
Human Resources Inspector qualifications are determined by the State of Florida Dept. of Professional Regulation and the South Florida Bldg. Code; Other
classifications can be audited as needed by operating dept. '
Building & Zoning - Hector Lima The inspectors are allowed safety supplies (hard hats, safely shoes, raincoats, and flashlights) as per OSHA.
R. Sue Weller, Labor Relations Officer Subject to labor negotiations
Santiago Jorge -Ventura
Santiago Jorge -Ventura
Development Regulation Division and
Hearing Boards Section of the Department
of Development Building and Zoning (DBZ);
Lourdes Slazyk, Assistant Director and
Teresila Fernandez, Chief of Hearing
Boards.
The department reports to an Assistant to the City Manager.
Relationships have improved and there is coordination. The permit process requires lhst plumbing applications be approved by DERM
each in different locations resulting in travel time for customers. Iri July 1997, we requested that a DERM & WASA
representative be situated at the Miami -Dade County, Planning & Regulation Dept.The request was granted and the process has been
simplified.
1 year; requires substantial Code Amendments.
This would be imposible to implement. Approvals must be requested by either the owner of the property or the contractor not the City. Most of
our customers go to Miami -Dade county for applications and are able to lake care of any approvals.
City oJnramt - Office gfBudget 9 oJ3o 7:53 AM11/17197Afaster comments as of 11=16-97.x1s
•,;uuunya�aa�, �,;t.:; �„ :y�aw��w cyaawyyl QyyY f �VWMbliv - -' _ .-,- � H u uuuauves u,..:-:,�c r, a-- _ t+. -'"�,-� ;sx• '. �<- _,��-='�'.°=.� >e .sa=;.�.
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.-,..bk�3,s..ic'i"...w:..,.'.::.,.�......<_,.,.C.'� �,.,..:.<: << :.#f•....._.'is.......3...»..a,,..1is�«<..a.-. r4�..d.. xa.d.,.�,it'.f.5:...,a.�a...-.«,,.,.......
q...4.<.. �"ram'-, i�;., ,.. .S. :-.' ^,"`•.°� .:�, a r :':' ,<. �� ,:v:_, ,• .•, ,'>:.,'<. ,,, :
<"t " The City Manager and department heads should develop an action Office of Budget Part of benchmarking initiative.
plan for implementing total quality concepts throughout the
organization.
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>.�ourCi 'Pot --. '.,-....x- •.w.,_ _ ; � v - . ram �^ .-7_<�;-w-, —,.; ,r..
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" Adopt a competitive sourcing policy and process to assure that the City SW - Adrienne MacBeth Allow the Solid waste dept. to bid against private haulers
;;� . _"_•:,` is providing and receiving quality services that are cost effective
' " according to industry standards.
Contract with a consultant to conduct a sourcing study with priority on GSA - Juan Pascual First we need to determine what operations ie. Solid Waste, Right of Way maintenance is to be on/out sourced in order to determine size et
fleet maintenance and fueling due to the impact on facilities. and fueling needs.
Use Costing Methodology similar to that used by the City of Charlotte to
track all costs related to City Services as a basis for sourcing decisions.
g°;<L'•c'``;d,> b Apply Sourcing Decision Guide similar to other cities (Based on review
of sourcing practices) p
a., � •• ;�;,•�) g p lives Charlotte, Phoenix, end Indianapolis, have
realized substantial improvements in efficiency, y y
=.i �'^�fx•, p y, quality and cost b
-
�s.'�„adopting the recommended approach.
N
Work with private industry for guidance and advice on sourcing
decisions.
Director of GSA should develop a schedule for sourcing
implementation.
Fill middle management positions that will not be affected by
outsourcing.
, j Institute appropriate contract administration and evaluation procedures
,I with respect to out -sourced functions.
Increase operational efficiency and expedite development permit
process as follows:
Review, improve and streamline all land use related application fors.
,�M Create a system that Is rp olect driven rather than permit driven.
GSA - Juan Pascual
Office of Budget
Office of Budget
GSA - Juan Pascual
GSA - Juan Pascual
Public Facilities: Christina Abrams
M. Comayd, Personnel Officer
Manager's Office
Fleet management data system to be installed shall enable this for fleet. Communications & Graphics shall be approx. three quarters behind.
Part of benchmarking initiative.
Part of benchmarking initiative.
Some functions already oulsourced is'
Fleet transmission, body work, wrecker service. Communications, some radio repairs. Graphics -major :
printing jobs. Currently developing RFP for outsourcing of Motor Pool & heavy Equip. Garage Stockroom (to be ova
Some positions filled,ie. Superintendent of Lt. Fleet & Heavy Equipment Garage Fleet Manager. Fill Auto Mechanic (6), Auto Mach. Supv.(1),
Auto Mach. Helper(2), Heavy Equip. Mech.(3), Heavy Equip. Helper(2), FCC Comm. Tech. (3) Graphics Illustrator (1)
Sec.IV (1), Executive Asst. (1), Stockroom to be evaluated RFP. If insourced need Parts Room Supv.(1), Parts Spec.11(1) & Parts Spec.l (1)
Establish Stadium Manager position for Orange Bowl and Fork Lift Supervisor position for Marine Stadium
Presently there is only one professional staff member (Personnel Officer) assigned to the Recruitment function w/ two temporary intems40
Responsibility for contract administration will be assigned for any service outsourced.
Ci o Mami - O ce o Badger ® M .53 Master as of a i- rw
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On theSlralStrategic Planning Process is in place, that is the intention.
Operaling.Practices-Develop an operating manual for Parks and T. Griffin
Some manuals in place. Revisions pending new org. structure
79 Recreation facilities/employees
Operating Practices -Develop a procedure for processing/prioritizing'_ T. Griffin
Procedures to be reviewed by Parks operations & GSA
work orders
Operating Practices -Develop a formal vehicle maintenance and Juan Pascual
Part of the Fleet Management initiative on this issue.
_
replacement program
-6 ' , � ,
A code of conduct needs to be developed and signed by all employees. R. Sue Weller, Labor Relations Officer
' Subject to negotiations and Civil Service Rule change
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Integrate Benchmarking, performance measures and management by SW - A. Macbeth
SW - Department will institute such measures.
objectives into all work operations.
Critical Success Factors -Finance and Internal Audit staff must be held
accountable and departmental objectives and metrics to measure the
agreed upon objectives must be established.
Fleet Management Task Force -Establish productivity and job standards
Create meritocracy in the management ranks. Changes for covered
employees will take time and may be the subject of bargaining. Long
term efforts should be directed to linking compensation more closely to
performance.
All City departments should be formally trained on benchmarking and
performance measures.
Periodic reports on significant benchmarks and performance should be
made a part of the City Administration's report to the Commission and
the citizens.
Information Technology Division (IT) -A formal tracking mechanism
should be developed to create measurability of performance
Make sure each major work function significantly improves 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.
GSA - Juan Pascual GSA - Computer software being recommended for Fleet Management shall have benchmarking and monitor performance measurements.
Graphics and Communications divisions need similar software to be determined.
Development - Lourdes Slazyk Development - 6 months
Public Facilities Public Facilities to create performance measures based on Strategic Plan
Office of Budget Staff has received training at FIU and is already at work on the implementation of benchmarking.
-Director of Internal Audit This recommendation will be accomplished by a newly hired Director of Internal Audits
With the implementation of benchmarking this objective will be accomplished.
Juan Pascual Job descriptions and position prerequisites being reviewed and updated. Fleet Management Superintendent for fleet, Auto Mechanic, Auto
Mechanic Helper, and Heavy Equipment Mechanic Helper currently done. Work with Dept. of Personnel.
Office of Budget Part of benchmarking initiative.
Office of Budget Part of benchmarking initiative.
Office of Budget Part of benchmarking initiative.
Info. Tech -A. Stancato With the establishment of cost and benefit analysis procedures for projects, Information Technology will now be in the position to monitor
actuals versus estimates for costs, timeliness, and resource utilization.
Office of Budget Part of benchmarking initiative.
City of Miami - Office of Budgef
7 of 50
7.53 AM11/17197Masfer comments as of 11-16-97.xfs
_g, Y
1� 7, &
COMMENTS'-
A
lz�_4 �11111r.
Cost of Solid Waste Operations -The street sweeping component
A. Macbeth, J. Kay &Fred Hopson
City's Public Works Dept. should be able to assess and advise as to cost effectiveness of moving functions to PW or as SW departmental
should be independently reviewed by the Metro -Dade Department of
budget reductions suggest identify alternative funding.
Public Works
Cost of Solid Waste Operations -Savings may be gained through
A. Macbeth, H. Jackson & Finance Dept.
City Commission reversed decision to eliminate weekly trash, Dept. will go to 5 day trash collection and require residents to set small trash with
reducing disposal and operating cost by elimination or reduction of the
twice per week garbage collection. Solid Waste has projected that depis pay for service.
.
weekly trash sweeps and by eliminating free service to City
4,"
Departments
Cost of Solid Waste Operations -Additional savings may also be gained
P. Chircut & A. Macbeth
Finance Dept. should recommend the number of billings now that Fire Fee has reduced the Solid Waste fee. Solid Waste will produce
by billing annually
amendment to Chapter 22 in line with recommendation.
Solid Waste Management -Lack of a consistent fleet replacement
A. Macbeth, H. Jackson & Fred Hopson
Solid Waste working with GSA & Capital Improvements Program Manager to develop effective replacement plan.
program will eventually cause a problem
from GSA
Solid Waste Management -Service levels for trash pickup, bulky waste,
A. Macbeth
Services levels are determined by City Commission, Department works within budget to allocate resources to maintain existing levels.
white goods and illegal dumping are incredibly high
Solid Waste Management -A need for enforcement is obvious
A. Macbeth & K. Woods
Solid Waste has hired a Chief Sanitation Inspector and 2 inspectors, We are also in the process of hiring 4 additional Inspectors.
f;
I I , I
Solid Waste Management -Street sweeping and special events should
Budget & Finance Dept,
Department agrees & has recommended that street sweeping costs be funded by fee in code, chapter 22 or an altemate,source identified by
"A
have their own cost and revenue centers, and be self-sufficient
Budget and that special events be self-sufficient.
Ki
financially, and avoid being subsidized by the waste fee
Solid Waste Management -The waste fee itself is insufficient
Solid Waste has been placed in the General Fund and replaced partially by the Fire fee and $33 Solid Waste fee.
Solid Waste Management -Should not donate retired equipment but
A. Macbeth
Department agrees and will work with thb City Manager's Office and GSA toward this end.
^,i
should sell it and revenues from sales should be deposited in a Capital
Replacement Fund
Revenue Enhancements -Eliminate park user fee waivers
Parks & Recreation Dept.
Done. Comission Directive
Parks & Recreation Dept. Done. City Code Amended
Revenue Enhancements -Increase park user fees when appropriate
PI
V,
Revenue Enhancements -Develop a park marketing program to T.Griffin Need additional staffing
enhance revenues (existing and now)
T. Griffin Needs add.staffing & Coo d. with Budget
Revenue Enhancements -Establish a process to credit the Parks and
Recreation Dept. for existing and new revenues generated by the parks
Revenue Enhancements -Review concession permits/revenues
T. Griffin Coordination needed with Procurement
(including mobile vendors)
Revenue Enhancements-Review/simplify process to obtain Grants Budget Grants writing position established to help secure additional grants.
(Federal,
e eral, State, Private)
Organization/Structure Improvements -Conduct a costibenefit analysis N/A - Parks Maintenance Division is now under Parks
of recent transfer of the Park Maintenance Department to the Public
Works Department
-Establish a "bottom-up"/participatory budget Parks & Recreation Dept. NIA -Bud el process set by Budget Dept
Operating Practices
'79
preparation and monitoring system
WMI - JW,dgel M1:53 AVUIMas,eMls - allm xis
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MMENTS
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Manager's Office Transaction closes on December 19, 1997.
49"'•,- :
Opportunities Task Force -Serious consideration should be given to
obtaining as large a payment as possible in the near term and/or long
term recurring revenues on the New Miami Arena parcel
m
Opportunities Task Force -Should conduct review of all City activities to
Office of Budget Part of the Benchmarking initiative.
�0'
determine which of the activities could be performed more
economically and with a higher level of service by another local
"
government or by a private enterprise
Finance This study has been accomplished.,
51A.
Opportunities Task Force -A complete listing of all the City's account
receivable balances should be compiled including revenues recorded in
i'•+`<'s' =" > :
the accounting records as well as balances which may not be recorded
i;" z��s��k•�, r.;.tF,
Finance
Ongoing study to be updated annually.
Opportunities Task Force -Should review all services provided to
determine level of fees and charges associated with each service
Finance
Fully loaded cost information has been made available.
Opportunities Task Force -Should determine whether fees charged are
;?,.; ,'.•
reasonable based on the fully loaded cost of the service, rates charged
by other local governments and private enterprises for similar services
;,fir `'`, •:
Opportunities Task Force -Rates should be adjusted to ensure service
Finance
Requests for fee increases have been forwarded to the City Commission.
users are paying the associated costs and to provide a return to the
City which is appropriate
' • '
adopted
�� �• ,,`��.,:3r�
Opportunities Task Force -Formal policies should be regarding
Finance
.This policy has been adopted by the Cily Commission.
when, waiver of user charges are to be granted
Opportunities Task Force -Steps should betaken immediately to reduce
Finance
Plans to sell or otherwise dispose of these assets are under consideration.
or eliminate the financial burden associated with ownership of James L.
Knight Center and Parking Garage and the Coconut Grove Exhibition
Center
Cost of Solid Waste Operations -Can save fleet o eratin costs as well
HenryJackson & Operations Crew
Dept. m budgeted for dumping 45 % of all materials at Transfer Stations $54 per ton.
';?r . j° '. •
as crew time in Solid Waste by utilizing close -by Regional Transfer
sF -, ?`•
Stations.
i
- • - >- ' r'
Henry Jackson & Operations Crew
Budget allocation for tipping fees should allow for 45% of loads at Transfer Stations.
$
Cost of Solid Waste Operations -May be able to accomplish significant
savings if a few loads per day could be directed directly to the disposal
site with the remainder going to the transfer station
Cost of Solid Waste Operations -Should have a more detailed
Henry Jackson & James Tomas,
Weekly reports and analysis of % of material dumping dumped at all locations presented to the City Manager.
evaluation of its use of transfer stations
Cost of Solid Waste Operations -The City appears to lag in its vehicle A. Macbeth, H. Jackson & Fred Hopson Solid Waste working with GSA & Capital Improvements Program Manager to develop effective replacement plan.
replacement plan in Solid Waste from GSA
Adrienne Macbeth Finance Dept. will be requested to cost out and suggest internal services charges for these items.
w•:: =;-' Cost of Solid Waste Operations -Solid Waste costs should incorporate
administrative vests directly related to billing, including mailing costs,
K ` .:., •a ,;„ r;`.; staff support and computer processing and disk space charges
City ofAftami - Office of Biedget 5 ofJo 7; 53 AM12/17197Master comments as of 12-16-97.x1s
-1,lnflllaflyes'' a hibilflibilt.adPknvdddti�IIIa
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7�
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Fleet Management Task Force -Car assignments should be reallocated
t GSA Juan Pascual
GSA -This should be part of the Fleet Audit and replacement schedule evaluation process.
on the basis of shift size and duty assignment
Labor Relations - R. Sue Weller
Labor Relations - Tied to negotiations an eliminating take home car program.
GSA - Juan Pascual
GSA - Vehicles should be evaluated on a mileage and/or engine hours basis (not years).
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.
Labor Relations - R. Sue Weller
Labor Relations - Tied to negotiations on eliminating take home car program.
Office of Budget
Only K cost effective to do so, given the City's operating environment.
Fleet Management Task Force -All surplus cars to the City's needs, or Juan Pascual
This is a legislative policy decision.
ready for retirement, should be auctioned off instead of donated to a
sister city or any'other' entity
Office of Budget
Sister City program calls for sale to Sister City at fair market value.
Health Benefits - Nancy Fernandez
Function being performed by group benefits pursuant to finance's instructions.
Health Insurance Task Force -Form 5500 for each benefit where form is
>, ,, ? I I 1'1i11 1
Relations and Finance Departments before being submitted to the IRS
Health Insurance Task Force -A sense of urgency coupled with Health Benefits - Nancy Fernandez Group Benefits is a part of Risk Management and has been empowered with responsibility
empowerment and responsibility should be developed within the
Benefits Office operating as a component of HR
........ . ..
Opportunities Task Force -Should be funding a portion of the future Managers Office This item will be considered for potential funding in the future depending on the financial condition of the City.
benefits being same. by current employees on post -employment
A ;1
health care benefits
A44
Opportunities Task Force -Necessary to complete a long term financial
workout including
Managees Office
See this Five Year Plan.
plan a one -to -two year short-term plan
Opportunities Task Force -Workout plan should be designed to
Managers Office
Accomplished.
immediately improve the operating cash flow through significant
revenue increases and expenditure reductions
Opportunities Task Force -Long-range workout plan should consider
eliminating accumulated deficits through sale of real
Managers Office
Accomplished.
partially estate,
refinancing debt and rightsizing City services
Opportunities Task Force -As soon as possible, the City should
Manager's Office
Accomplished.
determine its actual financial position as of the current date
Opportunities Task Force -increase enforcement efforts to reduce the
A..Macbeth
One Chief and six Sanitation Inspectors hired FY98. Results should materialize within two quarters.
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 verify Finance/Solid Waste
that the City is receiving the full amount due from franchise revenues that
Management collects franchise revenues. Solid Waste provided Internal Audits with FY98 commercial haulers for audits.
from commercial solid waste companies
Opportunities Task Force -Transaction on Now Miami Arena should be Manager's Office Accomplished.
reviewed in detail to ensure that the return to the City is commensurate
J, with fair market value of the parcel
E
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The City should perform a mgmnt./operations study of the finance dept.
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Finance Department Additional staff requirements have been identified. Recruitment announcements will emphasize education proficiency.
This study should encompass an extensive analysis to evaluate
24'
qualifications and the work loads of the staff to det. need to expand
staff and / or reassign tasks where appropriate.
Critical Success Factors_ Selectively review and waive hiring freeze of
R. Sue Weller Subject to labor negotiations.
positions Consider deleting "equivalent combination of training and
experience" for professional credentials
= "
Finance Job descriptions have been reviewed and modified to provide for the best qualified person to be employed.
Information Technology Division (IT) -Positions should be created and
IT T69 effective and efficient operations of Information Technology organization is predicated upon the establishment of key positions required by
M'='� R P •+•
funded to bring to City appropriately skilled staff to maintain City in
new technology and the augmentation of existing programming staff.
today's technology environment
Immediately conduct a planning study of office space to determine if GSA - Juan Pascual
`.; fie/•;, ? office requirements can be met through rearrangement of existing
space vs. leasing new space.
Consider placing Risk Management under the Assistant City Manager Managers Office
of Finance and Administration to consolidate similar functions.
Consider placing Procurement under the Assistant City Manager of GSA - Judy Carter
Operations to enhance customer service orientation and efficiency.
a; Continue with current plans to transfer some fleet responsibilities from GSA - Juan Pascual
a� the Fire and Police Departments. -
Fleet Management Task Force -Strongly recommended that the Juan Pascual
- � -''-• � services performed at General Services Administration, Miami Police
and the Miami Fire Departments be consolidated Terminate the current
Police take-home policy
;, ; •:���,�,, ^ Manager's Office
Solid Waste Management -A better sharing of overhead cost could be
made'if all Fleet maintenance operations in the City were consolidated
"•? t;;' _.' Transfer responsibilities for other key maintenance to GSA. GSA -Alex Martinez
Fill the current vacancies including the addbacks and provide for adequate supervisory personnel. The filling of these vacancies will all
complete several projects in a timely manner, including the Year 2000 project.
Work with Personnel for the establishment of new job descriptions based on advancing technologies, such as Network Administrator and PC
Repair Technician.
GSA - Lt. Fleet and Communications moved to Heavy Equip. Garage facility. Need additional bays in order to repair & maintain equipment
properly. This was a result of sale of the Old M. Pool/Communications Property. Fuel fac. needs to be moved/relocated.
Environmental Issues to be addressed. Size of facilitydependent on size/sourcing of fleet.
Table of Organization is currently under review for possible modifications.
GSA - The newly -revised Table of Organization reduces the Purchasing Department to a division in GSA to reduce the number of city
departments. Proposed reorganization of GSA proposes Purchasing report to Assistant Director - Administration
GSA - Completed as of 1011/97.
Lt. Fleet operations are conslidaled under G.S.A. (Completed)
Accomplished
GSA - This initiative is currently ongoing, discussions' with City Manager & Director of GSA
•
.>..,..,.u..,Z,_n..x�s.:'�>t'a.�'..�..._.
The City needs to adopt appropriate policies and procedures to assure SW - A. Macbeth SW - Develop departmental policies in support.
that good business practices are followed.
Office of Budget Integral part of the City's Five Year Plan.
Fleet Management Task Force -Need to optimize the layout and work
flow processes of the physical plant
Juan Pascual Due to relocations and property sales Communications Division and Lt. Fleet Motorpool are housed in the facility originally designed for Heavy
Equipment only. This is causing crowding and affecting the ability to deliver services.
City of Miami - Office of Bridget
3 of 50
7:53 AM12117197Masrer comments as of 11-16-97xls
of Budget
Submit capital and operating budgets simultaneously and integrate
Office of Budget
them in terms of goals and purpose.
Set capital and operating budget horizons to be consistent with
Office of Budget
strategic goals.
Incorporate contingency planning into budgets.
Budget
Require managers to demonstrate how proposed projects are in line
Office of Budget
with the City's strategic plan. This can be done in the form of a
costfbenefit analysis that measures the expenditure of resources
against the contribution to achieving goals.
-- __-_.....___- _------ _.._
The operating plan is already a component of the Budgeting Process. The process will be fine tuned and
This process is already underway. We are endeavoring to incorporate this linkage in the FY 98-99 Budgeting Cycle.
Once the Strategic Planning Process is in place, that is the intention.
Cannot budget for all contingencies but it will be done when possible.
Once the Strategic Planning Process is in place, that is the intention. We are endeavoring to include this initilalive in the FY 98-99 Plan.
.ems
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Expedite implementation of the City Manager's reorganization plan as
outlined in the revised "Five Year Plan". The City should begin
planning how to adopt a more progressive organization structure.
Office of Professional Compliance -The Office of Professional
Compliance should be removed from the department
Office of Professional Compliance -Consideration should be given to
incorporating this function within the Police Department organization,
reporting directly to the Police Chief
rice of Professional Compliance -A review of other local jurisdictions
similar size should be conducted to determine, if there is a need for a
parate review function, how it is typically organized
Solid Waste Management -Solid Waste should be separated from GSA
Move aggressively to reestablish an appropriate management structure
from first level supervisor through middle management to department
head.
Survey to determine perceived and actual departmental shortfalls in
staffing. Each department must justify the tasks to be performed that
cannot be completed at current staff levels.
Office of Budget Ongoing:
Shirley Richardson The office should be removed from the Department of Intemal Audits & Reviews as said department is outside the umbrella of law enforcement.
This impedes the ability of the office to function at an optimum level of effectiveness & efficiency,
Shirley Richardson Ideally, the OPC should be restored to its original mandate, that of monitoring ongoing police misconduct investigations reporting directly to the
Office of the City Manager. Currently, within the Dept. of Internal Audits the office functioning in review
mode where cases are received after the Investigations are closed by internal affairs. This precludes any active involvement & participation by
OPC. Reporting to the City Manager will also prevent any perception of conflict of interest in monitoring &
reviewing police personnel functions. The credibility of the oversight function provided by OPC is predicated upon its independence.
Shirley Richardson
Manager's Office
GSA - Juan Pascual
GSA - Alex Martinez
c o Maml - O ree a Badger _ m m m ® m
The need for civilan oversight is based upon what's going on within the local municipality. There are in excess of 100 civilian review boards
nationally, the majority of which were established as a result of rising tensions between police & citizens &
civilan distrust of the internal review process. The citizens of Miami have already supported having an independent system to oversee 110
investigation of police misconduct complaints. Their concern too was that the MPD was not adequately investigating
their own officers & demanded civilan participation to ensure a complete investigation of their complaints. The OPC was created after extensive
research to determine performance & types of civilian review agencies operating around the country.
The OPC receives annually numerous inquires and request from other cities for its enabling legislation & Standard Operalring Procedures.
Accomplished.
GSA - Filled Superintendents of Lt. Fleet & Heavy Equipment Garage, Fleet Manager. Need a Secretary IV and a Executice Assistant for GSA
Director's Office
GSA - Fill middle management and line positions that are D145vacant will improve efficiency and level of service. Additional staffing is needed
in plumbing and air conditioning functions.
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Formal strategic planning should be immediately reinstated as part of Building & Zoning May need changes to Charter.
the City of Miami's organizational structure. Develop the structure and
process to sustain long-range strategic planning for the City.
The City should 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).
Engage a professional firm with expertise in strategic planning to
facilitate and expedite the completion of the first strategic plan for the
City. .
Risk Management Department Review -Develop an overall safety &
health strategic plan for the City as well as for each Department
Office of Budget Steps are being taken to hire a consultant to facilitate this process. First Strategic Planning Cycle will require the services of the outside
facilitator.
Office of Budget Once the facilitator/consultant is hired, the actual timetable of implementation will be prepared.
Office of Budget RFP is expected to be issued in February/March 1998. The first Strategic Planning Cycle should be finished by September 1998.
Risk Management - Mario Soldevilla In progress.
Upon completion of the strategic plan, develop and execute a Office of Budget Such communication initiatives are incorporated in the Strategic Planning Process. '
y ` s communication strategy targeted to residents, City employees;
government, the business community, media and location services.
Institute a forum for resolving resource allocation issues to align all
major projects within the City's strategies:
Strategic Planning Total
Revamp the City's budgeting process to match the revised organization
structures cited in the organization plan. The tracking processes
should be flexible'enough to facilitate sourcing decisions and
management performance.
Critical Success Factors -Limited monitoring of departmental budgets
performed
Link Strategic Planning to Operating and Capital Budgets
Prepare all budgets after the annual strategic planning process has
been completed.
Merge budget and operating plans into one document.
Critical Success Factors -Each department should be required to
prepare a business planning cycle
City ojMlamf - Office ojBudger
Office of Budget Such forums and conflict resolution initiatives are incorporated in the Strategic Planning Process.
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Office of Budget This is an ongoing process. The Office of Budget will continue to explore new automation systems that will cost effectively add flexibility
entire planning process.
Office of Budget As information systems are upgraded and the automation process continues, the City will be able to provide additional on line, and real Time,
Actual vs. Budget monitoring capability to the departments.
Office of Budget This process is already underway. We are endeavoring to incorporate this linkage in the FY 98-99 Budgeting Cycle.
Office of Budget Once the Strategic Planning Process is in place, that is the intention.
SW - Adrienne MacBeth SW - On-goirig throughout all fiscal year.
Office of Budget The operating plans are already a component of the Budgeting Process.
Director of Internal Audit This recommendation will be accomplished by the newly hired Director of Intenal Audits .
This will be implemented along with benchmarking.
I 0j50 7.13 AM12117197Masrer• comments as oJ12-16-97.x1s
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A list ofdataprocessing reports, including appropriate descriptions of
1�73 °x source, content, production frequency and purpose.
A list of standard and other journal vouchers with sufficient explanation
of their purpose.
Appropriate descriptions of all financial policies and accounting
procedures and routines regarding, but not necessarily limited to the
` following:
•;iari d:da
Monthly review of internally generated reports which may vary in
complexity from a simple scan of transactions to detailed analysis or
reconciliation.
>« "
'.f.:s. .,:.•;a N;i. Policies related to cash which would include preparation of bank
reconciliations, controls over cash disbursements and cash receipts,
and procedures regarding the investment of excess cash on hand,
' Purchase and capitalization of fixed assets and related procedures for
computation and depreciation thereon.
Doubtful accounts and related bad debt wrtte-offs.
Lease obligations and related capilization policies.
Policies related to the recognition expenditure with nition of revenue and
9
particular attention paid to yearend cutoff procedures.
The assignment of accounting responsibilities and expenditure
approval procedures.
p, -„, _•"?:.: Compliance with debt covenants should be reviewed monthly, or
;� ,,.,p�-'.: 9. - ,;:•,;. quarterly,depending on the nature of the covenant. This review will
provide greater assurance that the City maintains compliance with its
debt agreements and/or that defaults are identified q
Signature plates and check signing machine keys should be kept
locked at all times
�•.3�,�,;�;=m.'.:?,•'?- Reimbursement claims for the NET Neighborhood Jobs Program
should be prepared and submitted to the appropriate granting agency
immediately. Additionally, procedures should be established to ensure
that reimbursement claims are submitted in a timely mann
The City should formalize its standards and procedures regarding
system development and modification, as well as standardize those
programming and analysis issues not currently covered.
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Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently underdevelopment.
Finance The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
Finance City trasurer will review the debt covenants on a quarterly basis.
Finance Current procedures require that signature plates be kept locked in the safe at all times. Supervisors have been counseled about compliance
with the established procedures. As of 1-15-97, the check -signing machine was secured in an office.
Finance An individual will be appointed, in the grant accounting section, to be responsible for preparing the reimbursement requests for all grants
received by the NJP.
CD/NET NJP was reimbursed $700,000
IT Attempts to standardize were not successful due to inadequate staffing. The purchase of a package addressing developments methodology
should be considered. Recommendations from the financial auditors are welcomed.
City of Miami - Office of Budget 15 of 50 7:53 AM12/17/97Masrer comments as of 12-16-97.xis
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_"• - % documentation standards should be developed and implemented by
~$% the IT Division. These standards should specify that documentations
shall be written when new and changed systems are implemented.
As the City continues the process of updating its software, we
recommend that source documentation and system flowcharts be
maintained.
Management should continue to eliminate material due from / to other
fund balances.
Accounting Division -Should adopt formal closing procedures posting
payrolls immediately after the pay period
Accounting Division -Monthly and year end closing should take place on
a speedier basis
Accounting Division -High level accounting reports should be distributed
to management personnel
Accounting Division -A total solution for the City vs. A point solution for
departments should be developed based on a determination of
Citywide requirements (Kronos System)
Budget Management Division -Grant Administration and grant
reimbursement processing is not uniform throughout the City
Budget Management Division-CIP contracts should have funding codes
identified and approved by Budget prior to award
Health Insurance Task Force -The plan administrator should have the
responsibility for conducting a performance audit semi-annually on
terms and conditions of ASO contracts
Health Insurance Task Force -Management skills are needed to recover
some unnecessary expenses involving subrogation and coordination of
benefits
Health Insurance Task Force -An audit, review and control function is
needed for health care claims management
Health insurance Task Force -A method is needed to recover
unnecessary tax expenses such as those found in flexible spending
accounts, pre-tax benefit plans and possibly in retiree health care
Health Insurance Task Force -The self -insured plan must be run like an
insurance company with proper current funding and adequate
insurance coverage and reserves
Health Insurance Task Force -Employee contributions need to be
deposited into a trust account immediately or deposited with the carrier
or risk bearing agency
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ITm Technicalr Writers were eliminated in the 198o's. Recommendations from the auditors, as to how to update formal proceduresandcreate user
manuals with current level of personnel, are welcomed.
IT Technical Writers were eliminated in the 198o's. Recommendations from the auditors, as to how to update formal procedures and create user
manuals with current level of personnel, are welcomed.
Finance In the revised fiscal year 1997 the City made provisions to pay back all inlerfund balances. The City's five year operational plan and proposed
fiscal year 1998 budget plan also made provisions to assure that similar circumstances do not occur.
This has been accomplished.
Monthly closings take place by the tenth of the month following and the annual closing occurred December 1st.
Reports are being created to provide management information on a timely basis.
Office of Budget The Finance department has hired a Grants Administrator.
Office of Budget Done.
Health Benefits - Nancy Fernandez This should be performed by our internal auditors
Health Benefits - Nancy Fernandez Done.
Health Benefits - Nancy Fernandez Periodic audits are to be performed by the City's internal audits department
Health Benefits - Nancy Fernandez This is a negotiated item to be addressed in next year's labor contract's negotiations
Health Benefits - Nancy Fernandez
Health Benefits - Nancy Fernandez
•
Adequate funds have been provided during the prior and current fiscal years. Additionally, $1.1 million in reserves are allocated in the current
budget and will be allocated in future budgets.
Monies are deposited into the City's General Fund and invested according to established practices.
53 AlWnler as oj,6013
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Health Insurance Task Force -Look into paying lower administrative Health Benefits - Nancy .F.,<.�me-<r:.ndw
This is being performed by RX Prime pursuant to our contract with CIGNA.
fees for larger supplies of medications
Health Insurance Task Force -Look at utilizing the services of a Health Benefits - Nancy Fernandez RX Prime is our pharmacy benefits manager.
Pharmacy Benefit Manager to control prescription costs
Health Insurance Task Force -Need to look at coordinating medical Health Benefits - Nancy Fernandez Evaluation of RFP is complete - Recommendations to the City Manager are forthcoming for commission action.
2
payments with Workers Compensation where appropriate
Risk Management Department Review -Perform cost/benefit analysis to Risk Management - Mario Soldevilla This has been done and it resulted in savings to the City of $350,000.
determine if the deductible on the property policy provides the City
7
ultimate cost effectiveness
Risk Management - Mario Soldevilla We have looked at this in the past but savings have not been there due to our experience. However conditions have now changed and
Risk Management Department Review -Should consider a cost benefit
explore this market again.
analysis for purchasing excess liability insurance coverage for those
losses that are not limited by a sovereign immunity doctrine
Risk Management Department Review -Re -open the RFP process in
Risk Management - Mario Soldevilla Should hire a consultant to prepare an RFP. However this should be done after the impact of a managed care arrangement has been
accordance with Resolution 95-393 to outsource the risk management
evaluated.
i�
function
Risk Management Mario Soldevilla Should hire a consultant to prepare an RFP. However this should be done after the impact of a managed care arrangement has been
Risk Management Department Review -Should hire an independent risk
evaluated.
management consultant to select the appropriate vendor under the
RFP process if the, Insurance Committee is not reestablished
Risk Management - Mario Soldevilla Study to be done comparing costs under the two methods.'
Risk Management Department Review -Should consider changing the
insurance broker's compensation to a fixed fee for services rendered
Debt Restructuring -City should immediately establish segregated Debt
Finance An escrow agreement was established with First Union National Bank on 3117197. Debt Service Fund is wire transfered to separate bond issue
'2
Service Funds to be held by outside trustees and not to be included
acco unt,
w ithin the City's pooled cash
...
-Concerned that at least $1.5 million in debt service Debt Restructuring
Finance This Debt service has been properly provided as required by bond document
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 Debt
Finance An escrow agreement was established with First Union National Bank on 3/17/97. Debt Service Fund is wire transfered to separate bond issue
Service Funds in accordance with the legal documents
account.
A -
Finance An escrow agreement was established with First Union National Bank on 3117197. Debt Service Fund is wire transfered to separate bond issue
Debt Restructuring -The use of cash in the Debt Service Funds in the account.
3
first half of this year without achieving a balanced budget, could result
!MP,�,-,
in the City's defaulting an its debt obligations later this year
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Debt Restructuring -Need to segregate the non general obligation debt Finance An escrow agreement was established with First Union National Bank on 3/17/97. Debt Service Fund is wire transfered to separate bond issue
service fund outside of the pooled cash amount.
zg
Debt Restructuring -The Utility Service Tax funds, as collected on a Finance Utilities Service Tax is deposited monthly and distributed to appropriate funds month I y
monthly basis, should be deposited on a pro rate basis to the
soorooriate funds
City ofMiami - Office of Budget 17 OfJO 7:53 AM12117197Master commients as of]2-16-97.xls
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inidatives�� ,'Matiag�inent;and Prodijctivity'.Initiaftves'>-'=<
�; := " Debt Restructuring -The ^debt <service component received in the <
zi} advance payment from the Stale should be segregated in the debt
<;( service fund outside of the pooled cash account
i
Debt Restructuring -Three transactions of the City's outstanding bond
issues could be restructured or refinanced which could provide present
value savings and be available to fund current year projects
1 Debt Restructuring -Identified several general obligation Issues which
could be restructured at no cost to the City to reduce debt service over
the next few years
„•' : Debt Restructuring -City Manager should appoint someone, preferably
Z;g '•, the new Finance Director, to establish a recurring reporting practice to
«;;i,.a„. •: < such entities of the progress the City is making in adoption and
? implementation of its recovery plan
fix..
FinanciaUBudgetary Analysis -Pension expense for 1996 currently
reflected in the Trust and Agency Fund should more appropriately be
r ',i reflected in the current fund where other employee expenses are
' reported
Financial/Budgetary Analysis -Analysis of the proper inter -fund transfer
/ activity, critical in evaluating the magnitude of any structural surplus or
deficiencies, is critical in determining the long-term financial health of
:a may; • `;'•' the City and any of its funds
u;+:r; ► :+' FinanciaUBudgetary Analysis -Recommend an analysis be made for
,;; ,each major revenue category
Financial/Budgetary Analysis -Some process should be developed to
minimize or eliminate false billings in the revenue collection programs
FinanciaUBudgetary Analysis -City may want to consider the
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 environment
of spending pooled cash which included high level approval plus
plans/projections for subsequent repayment or correction
FinanciaUBudgetary Analysis -Recommendations for future financial
management initiatives should include the timely ongoing use of
monthly reports showing the comparison of budget versus actual
Establish and implement plan to improve the City's credit rating and
entry into the bond markets. .
Finance
Finance
Finance
Finance Director
Office of Budget
Office of Budget
Office of Budget
Office of Budget
Office of Budget
Office of Budget
Office of Budget
An escrow agreement was established with First Union National Bank on 3117/97. Debt Service Fu
account.
Because of drop in the City's credit rating, the opportunity to refinance or restructure these bonds is not feasible at this time.
Because of drop in the City's credit rating, the opportunity to refinance or restructure these bonds is not feasible at this time.
This has been accomplished.
This was done in the FY 98 Budget with the collapsing of funds.
Analyzing and controlling inter -fund transfers have always been a primary function of both, the Office of Budget and the Finance Department.
This is done. The Office of Budget analyzes 7 + years of revenue and uses the data to make projections.
This is a function of the Finance Department.
This is a function of the Finance Department.
This is a function of the Finance Department.
We agree and are taking steps to improve the timeliness of these reports.
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Rex Lugg A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
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Establish the goal of developing an uncommitted General Fund
Managers Office
See Five Year Plan.
Balance consistent with an investment grade bond rating (e.g. five
percent or more of the annual operating budget) over a five-year
period.
Adopt a written "Debt Management Policy" including the following
Rex Lugg
A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
critical elements:
jjjj The City should not issue debt obligations or use debt proceeds to
Rex Lugg
A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
finance current operations.
The City should utilize debt obligations only for capital improvement
Rex Lugg
A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
projects that cannot be funded from current revenue sources or when it
is better to finance the project over its useful life.
The City should issue debt obligations for refinancing existing debt only
Rex Lugg
A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
if financially advantageous or necessary to release existing bond
covenants.
Pension'Review Task Force -City may wish to investigate possibility of
Office of Budget
Only if cost effective to do so.
issuing Pension Obligation Bonds to eliminate unfunded liability in the
GESE Plan
234
The City should measure the impact of debt service requirements on
Rex Lugg
A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
"
single year, five, ten and twenty year periods.
Establish a Finance Committee of local business and community
Rex Lugg
A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
members to serve with the City Mgr.to review and make recomm. re
t
the issuance of debt obligations and the mgmnt. of outstanding debt
and monitor adherence to debt policies and procedures.
zf i-, Determine all administrative implications of the Fire Assessment Fee Chief M. Kemp The Dept. of Fire -Rescue does not feel that this fee would cause any problems for the Administration. This fee would generate $900,010
' Q
as quickly as possible'in order to identify the impact of potential annually in revenues.
problems and disruptions to cash flow.
M"
^-'?�N,g The Finance Department should identify each existing and/or potential G. Carbonell Potential revenue source that Finance is aware of is documented.
revenue source' and document all of the relevant information about it.
Compare the above information with that of other municipalities to Office of Budget
determine the most effective manner in which to maximize revenue and
cash flow.
Evaluate centralization versus decentralization and cost benefit Manager's Office
analysis of making changes to existing systems (e.g. staffing,
technology).
Centralize similar billing and collection activities to the extent practical. Managers Office
This is part of the benchmarking initiative.
A comprehensive billing and collection plan for all City billings is under development.
See above.
City ofAfiami - Office qfBudget 19 0f 50 7.*53AAfl2l]71!27Mastercomments asofi2-16-97.xls
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Performance criteria should be established. The City Manager should G. Carbonell AIR system is in place and reports are produced.
`Zt x receive a summary report of billing,.colleclions, receivables and
measurements of performance no less than monthly.
" City management should immediately review and address all G. Carbonell Finance Dept. is working with other depts. to centralize functions.
242a..' interdepartmental issues created from more than one department
overseeing various aspects of billings and collections.
= .The City should pursue more diligent collection efforts in Emergency Fire Dept. The City currently uses billing companies for EMS billing purposes. An RFP will be issued in early 199E to obtain billing and collection services.
243 .
Medical Service Transport fee. .
The Internal Audit group should perform surprise checks of potential Internal Audit Su rise cash counts and payroll payoffs will be a rt of the audit program for the City.
9 P P P P P PY pY P P 9 Y
revenue sources as a warning to less honest employees that the City is
serious about preventing misappropriation of funds.
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ri:.. Increase the formal bid advertising requirement limit of $4.500 in City
Charter to $10,000 or $15,000.
Streamline procedures for smaller purchases (a.g. authorizing use of
" procurement cards, delegating purchase of smaller items to user
;;=t€„> �>a.�, ._- •;T departments, making greater use of cooperative purchasing
agreements).
Critical Success Factors -Too much time spent by Procurement on
controlling low dollar, high volume items and not enough oversight in
service related purchases
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
Ensure professionalism in purchasing personnel through appropriate
experience and training.
Improve use of technology in the procurement function. Fully train
departmental personnel in effective use of all technology tools.
Consider removing all language in City Charter and Code regarding
-zz,„�,�- y,• , procurement, other than formal bid advertising requirement limit, in
:..=;:_2��;�"si'+• �� favor of an administratively
P authorized and implemented Procurement
Policy Manual.
® Cimi - Oger
Procurement - J. Carter This change in policy would require a charter amendment. Purchasing will submit to the Charter Review Commission, when convened to
address Charter revisions for the City.
Procurement - J. Carter Policy drafted, currently.in revision process, to delegate to departmental purchasing agents the authority to purchase commodities below a
specific dollar amount. Training shall follow implementation.
J. Carter
Policy drafted, currently in revision process, to delegate authority to departmental purchasing agents to purchase below a specific dollar
amount. Training shall precede implementation. Service -related purchases centralized where Code permits.
A procedure on small dollar purchases via debit cards is being explored to speed this process.
Procurement - M. Wiley
Procurement - Increased usage of Dade County contracts to expedite service and supply procurements; One Procurement Specialist will be
assigned to GSA location to facilitate the procurement process.
GSA - Juan Pascual
GSA - Hire a procurement specialist for G.S.A. Other efficiencies are dependent on procurement policies and City Charter limitations.
Streamline G.S.A. accounting and procurement procedures.
Procurement - J. Carter
Professional staff has attended several NIGP and FAPPO workshops and seminars, including 1 of 2 classes required for CPPB certification.
Additional funding sources are necessary to continue.
APS/SCI Interface has been debugged to allow for more efficient use.
Procurement - M. Wiley
Purchasing staff constructed a web page that gives prospective and currently registered City of Miami vendors information on bids and doing
business with the City.
The next phase of the web page development will allow prospective bidders to download bid packages, vendor applications and certification
applications.
Procurement - M. Wiley Purchasing is preparing recommendations for proposed Charter amendments to be submitted when Charter Review Commission is convened
to address Charter revisions. Charter amendments will lay the groundwork for procurement Code revisions.
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Recommendations made by the Procurement Assessment Team
Procurement - M. Wiley
See Initiatives #253-268 below.
appointed by the Oversight Board in their report dated February 24,
1997, should be considered for eventual implementation.
Suspend or pre-empt the City Charter as it relates to puchasing and
Procurement - M. Wiley
Purchasing is preparing recommendations for proposed Charter amendments to be submitted when Charter Review Commission is convened
31
remove Procurement Division references from said clocumen (i.e.,
to address Charter revisions. Charter amendments will lay the groundwork for procurement Code revisions.
Sections28 and 29A).
Until such a time as new language can be adopted, the City should
Procurement - M. Wiley
Such a change would be inconsistent with current City Code provisions; this recommendation will be considered with the other propsed
0 peiale under selected portions of Chapter 287, Florida Statutes (F.S.),
Charter/Code revisions.
to be determined by legal counsel.
Delegate authority to purchasing manager to approve all acquisitions
up to Category Four under Section 287.017, F.S.
Procurement - M. Wiley
Such a change would be inconsistent with current City Code provisions; this recommendation will be considered with the other propsed
41
Charter/Code revisions.
The City should adopt a new procurement code which emphasizes
Procurement - M. Wiley
Purchasing is preparing recommendations for proposed Charter amendments to be submitted when Charter Review Commission is convened
current practices.
to address Charter revisions. Charter amendments will lay the groundwork for procurement Code revisions.
Suspend local preference laws which may limit competition and
Procurement - M. Wiley
Local preference does impede competition, however the City Commission has expressed its commitment to support local businesses.
. .....
opportunities to reduce cost.
Procurement - M. Wiley
Such an adjustment is appropriate and would be included with other proposed revisions submitted to Charter Review Commission when it is
Bid limit adjustment to recognized price index.
convened.
Eliminate City Clerk's involvement as it relates to bid openings this
Procurement - M. Wiley
The City Clerk's involvement allows objectivity and independence in the opening of bids. Additionally, current Purchasing staff is insufficient io''_`_
should be a function of purchasing.
assume this responsibility.
Update and revise procurement operations manual incorporating
Procurement - J. Carter
A revised procurement operations manual is in process though it cannot be finalized until after Charter amendments and Procurement Code
W
revisions to the City Code.
revisions.
The City
Procurement - J. Carter
Policy drafted currently in revision process to delegate to departmental purchasing agents the authority to purchase commodities below a
should shift its focus from smaller dollar purchases to large
specific dollar amount. Training shall precede implementation.
dollar purchases for commodities and goods. Furthermore, the City
should delegate small purchases to user departments while providing
adequate safeguards which ensure sound fiscal con
State Contracts, SNAPS Agreements, and other contracting methods
offered by the State Florida
M. Fresno
Purchasing has increased usage of State contracts and other contracts offered by other jurisdictions by 43%. Purchasing will continue to take
of and other public entities can and should
advantage of such contractual opportunities whenever feasible and practical.
be used to reduce administrative costs and reduce delays in receiving
goods and services by user departments. Incr
The increased use of automation has allowed Purchasing to increase substantially the use of term contracts and blanket purchase orders,
allowing buyers to recognize common needs among departments and produce cost benefits for City.
We recommend that the Chief Procurement Officer be trained in the
Procurement - J. Carter
The Chief Procurement Officer has participated in several training seminars and annual conferences offered by professional purchasing
public purchasing profession with procurement activities as his/her
organizations, as of 3/27/97 Chief Procurement Officer has primary responsibility for purchasing and minority business.
primary responsibility. It is also recommended that this position report
at a sufficiently high level in the organizati
Purchasing authority is climinshed as Department status was eliminated; proposed reorganization under GSA would require Chief Procurement
Officer to report to GSA director
City ofMand -Office ofBirdget 11 of5O 7:53 AM12117197Master comments as of 12-16-97.xls
-s.
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265
26.7�
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
staff resources from small dollar purchases to large dollar
Eases and eliminate work that does not add value or is redundant.
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 mod
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
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.
Upon completion and distribution of a new Purchasing Manual, all City
departments should be trained by.Procurement with follow-up training
69 ' •>'' being provided annually. The City should also consider providing new
employees with procurement training (includin
f;
The City should establish stern sanctions for personnel who violate
procurement policies. The City should inform major vendors of
personnel who can act as buying agents on behalf of the City. All
personnel should be trained on procurement policies.
Procurement Management Division -In depth evaluation of multiple
functions assigned to Procurement
® 0"i - O;ce o Bgvt
Procurement - M. Wiley
Procurement - J. Carter
Procurement - M. Wiley
Procurement - J. Carter
Procurement - S..Gonzalez
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All professionals who have not yet acquired CPPB designation have succesfullyTcompleted the first required class for CPPB certification.
Additional funds are necessary to obtain certification. Job specificatioons for Senior Buyer have been revised.
They will require that new hires have CPPB certification or obtain the certificationwithin one year of hire.
Several internal reassigmmnls jave been made to shift staff resources to the Bid/Contract section. Additional Senior buyer will be recruited.
Succesful SCl/APS integration has been accompished. City staff has debugged the interface for more fluid action. Vendor has modified SCI
software to better meet user needs. Thus professional assessment is no longer required.
An APS expert was contracted with, through the State's Procurement Assessment Team to train purchasing professionals in the use of APS.
Purchasing has effectively eliminated non -automated procurement requests. A memorandum issued by the City Manager requires that
requisitions must be entered into the SCI Financial System to trigger formal solicitations
Purchasing has benefited from several training sessions for personal computers offered by Info. Tech. We foresee additional partcipation with
addilioanl class offerings.
Department will be scheduled for quarterly site visits on a rorational basis. Senior procurement personnel will be meeting with user dept. to
improve customer relations.
Purchasing staff has solicited surveys utilized by other jurisdictions to assist in the design of such a survey for the City of Miami's purposes.
In addition to SCI training performed upon request of user dept.s Purchasing has offered, with City Attorney's Offcier a Contracts Seminar,
Emergency Disaster Procurement, etc. Additional Training will be offered as polices are developed.
Office of Budget This is part of the benchmarking initiative.
Procurement - J. Carter Annual training is planned to follow completion and distribution of the revised Purchasing manual which will reflect the Charter and Code
revisions.
M. Wiley The City Manager has issued a memorandum (10/20/97) to the City Attorney requesting assistance in drafting an ordinance for this purpose.
City Manager issued memoranda (9/96,3197) to prohibit unauthorized expenditures.
Chief Procurement Officer issued follow up memo (10/96) and a letter to City vendors to warn against unauthorized purchasing procedures.
Upon registering with City, all vendors receive additional notice of prohibition against unauthorized expenditure.
J. Carter Effective March 27, 1997, Purchasing and Minority Business are the sole responsibilities of the Chief Procurement Officer.
�53 AMjyj7j�j+faster of 1's
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Procurement Management - Division -Practices
D ces should be"evaluated toY
w.27 xa n • ensure a competitive process occurs when procuring large dollar
services
Procurement rz Procurement Management Division -All contracting should flow through
�•` the Procurement Division
Procurement Management Division -To ensure purchasing procedures
are not bypassed controls over the use ofdirect' purchases should be
vigorously enforced
Procurement Management Division -A formal training program needs to
z? be adopted
0..
Operating Practices -Restructure procedures for bidding/selecting
`�� `. , - contractors
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is•
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Carter mPolicy and Procedures for acquisition of professional and personal services have been prepared and distributed to City departments s
preceded implementation.
J. Carter
Contracts are centralized but for Code designated exemptions. One Senior Buyer position has been approved for Purchasing; this position will
support expanded role of Purchasing.
J. Carter
City Manager issued memoranda (9/96, 3/97) to prohibit unauthorized expenditures; City Manager issued memorandum to City Attorney to
request drafting of an ordinance.
Chief Procurement Officer issued follow up memo (10/96) and a letter to City vendors to warn against unauthorized purchasing procedures.
Upon registering with City, all vendors receive additional notice of prohibition against unauthorized expenditure.
Chief Procurement Officer does not issue purchase orders for unauthorized expenditures.
Procurement - J. Carter
Such action may be overreaching as purchasing does not have relevance to each job within the City. Purchasing will require such lrain4o -
deparlmental purchasing agents recommended by Department Directors and approved by Chief Procurement Officer,
M. Wiley
Purchasing professional staff has successfully completed one of the two classes necessary for CPPB certification. Additional funding sources
necessary to complete CPPB certification and provide continuing education for maintaining certification.
Procurement - J. Carter
Purchasing policies and procedures are under review for modernization and improvement.
F:s.....,'.:t�.> _�'.int-pridlt.:�xtemaETir3dlta rxfEt" ee-.. :v__..;ws.:vi ;�.; a•�.......„�.,.--,�.-;:-----ra°-;�c--�,.�,-.:,� �,,.„---r---ter•-----�>;--•--'-�-�-;;_��.
> Establish Audit Committee of private citizens which meets regularly Internal Audit This recommendation will be accomplished by the City Commsision,
throughout the year. Potential candidates should include experienced
accountants, bankers, financial and insurance executives and persons
of similar backgrounds.
Critical Success Factors -Establish Audit Advisory Committee to review
work of Internal Audit department
�iw,t 27,9 4-wi Audit Advisory Committee -The Audit Committee should be expanded to
9 include a City Commission member as a non -voting member
Audit Advisory Committee -The Director of Internal Audit should be an
"28OI^ '-1, integral participant in Audit Committee meetings
Audit Advisory Committee -Meetings should be conducted quarterly, at
a minimum
Require Audit Committee to meet with the external auditors at least
twice during the year.
Enact changes to the City Charter/Code to reflect the nature, purpose
and composition of the Audit Committee.
Internal Audit -The City code requires significant revision to bring about
the recommendationaoutlined
Internal Audit This recommendation will be accomplished by the City Commission.
This committee is under consideration for establishment.
Internal Audit This committee is under consideration for establishment.
Internal Audit This committee is under consideration for establishment.
Internal Audit This committee is under consideration for establishment.
Internal Audit This committee is under consideration for establishment.
Internal Audit. This committee is under consideration for establishment.
Director of Internal Audit This committee is under consideration for establishment.
City ojMlaml -Ofce oJBrrdger 23 oj50 7:53 AM11/17/97Masrer comments as of 12-16-97.xls
".,Sy';:n.-°i�-,> rn'q ....- �t'.c-----«s•• 'y. �y Hwy-Yq�i �"'>`d.M': v�'s�.,> .,y_,_ixx�.:.,. tyv .s.,•,�.rvl:>...-.v+.'9 ,^.-^z.-.-±wro•^"Y'^-
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Pr' 'a ° i ''I, [a Initiatives.'Rilaria? \eitt`and otl Ctiv
8 ern tY
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Audit Advisory Committee -The "City Code should more specifically
NInternal Audit
delineate Audit Committee composition in order to provide
representation from varied business backgrounds
Implement a formal policy for selection of external auditors to be
Internal Audit
executed by the Audit Committee. The Audit Committee should also
oversee the evaluation of the performance of the external audit team
on an annual basis.
Implement a formal policy for the maximum length of external audit
Internal Audit
contracts.
As part of the Audit Committee's duties, They should review the scope
Internal Audit
AProgress
of the external auditor's approach while the audit planning is in
and review the results of the audit upon completion.
y� The Audit Committee should also monitor other services provided by
89 :i the external auditors to ensure that a proper level of independence is
maintained.
Reorganize the Internal Audit Department to report directly to the Audit
Committee.
Internal Audit -Audit function should have dual reporting to the City
t j Manager and to the Audit Advisory Committee
Internal Audit -The audit plan should be reviewed by the Audit
Committee to ensure it is balanced
Audit Advisory Committee -The roll of the Audit Committee should be
expanded and clarified to ensure review of both external and internal
audit results
l
The Chairman of the Audit Committee should make an annual report of
$,
its activities to the City Commission.
Xy„ > r•-"'
Internal Audit -A summary of audit results and responses should be
:-,, ���''' � -'
pared quarterly p q y and presented to the Audit Committee and the City
re
Commission
Audit Advisory Committee -The Audit Committee should provide a
quarterly report to the City Commission
Audit Advisory Committee -The City Commission should be educated
on their role in reviewing audit results and interacting with the Audit
Committee
Hire an experienced CPA with significant exposure to the public sector
as Director of Internal Audit.
Internal Audit -Should expeditiously hire a Director of Internal Audit with
,:?..
a CPA, CIA, or CISA
The Director of Internal Audits should immediately complete an
assessment of the strengths and weaknesses of the Department,
services historically provided.
CiN alMnmi - OAWWIgel
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This committee is under °consideration for establishment.
This committee is under consideration for establishment.
This committee is under consideration for establishment.
This committee is under consideration for establishment.
Internal Audit This committee is under consideration for establishment.
Td'=x r'bz S: t
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Internal Audit The Inlenal Audit Department should report directly to a City representative authorized to implement procedures rather than report to an
autonomous committee.
Director of Internal Audit The audit reporting function should be directed to the City Manger who has authority to implement audit recommendations. The audit
committee should review the work products of Internal Audits for proficiency recommendations.
Internal Audit This recommendation will be accomplished by a newly formed Audit Committee
Internal Audit This committee is under consideration for establishment.
Internal Audit This committee is under consideration for establishment.
Director of Internal Audit Quarterly reports are prepared indicating the names of audits completed, with the related revenues and expenditures audited and genele .
recovered.These reports have been sent to the City Manager.
Internal Audit This committee is under consideration for establishment.
Internal Audit This committee is under consideration for establishment.
Internal Audit This recommendation will be accomplished by the Mayor and/or City Manager.
Internal Audit This recommendation will be accomplished by the Mayor and /or City Manager.
Director of Internal Audit This recommendation will be accomplished by a newly hired Director of Internal Audits.
® �53AMjjj(j"4asrerasojlrs
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Determine the long-term"- r ` ole of the Internal Audit Department (e.g.
primarily involved in compliance and internal control issues, assisting
f'Q� ".'.{external auditors, conducting operational and performance audits, etc.)
Internal Audit -Staff time spent on non -audit functions should be
Q2i T s'" i reviewed, audit staff work should focus on auditing
`p' i •t" `, A full scope, internal audit function is ultimately recommended. A
<Q determination should be made as to how the function is to be achieved
in-house and/or with contracted services.
Internal Audit should include IT as an area for ongoing review. Review
should include eriodic testingof both general controls (organization,
physical and security) and applications controls (processing controls
and testing procedures).
y. -
z,;° O ° •-.. Program change controls and logical access (data security) should also
5`''
be reviewed.
t:- Standardized working papers and detailed IT auditing programs should
be prepared.
Internal Audit IT reports should be issued to the City Commission on
�? IT audit findings.
Test procedures and data should be designed so as to simulate all
conditions which will occur under normal processing conditions,
including y p g data that deliberately attempts to violate data validation and
control routines.
Users should be involved in the design of test procedures data.
a •a Documentation of testing procedures should include:
Specific Objectives of the test.
i, Identification of types of transactions to be tested including transactions
k'>
which should test all aspects of the new program or program change.
Inspect test results, including reported errors.
The actual test results and the comparison to the predicted results.
overall summary, including conclusions.
Success Factors -Change Internal Audit's focus to controlling
;s risk, including systems
:.ir �•a,. : w iA1- .-�;'.,su. .�.� k '7a;,^::.:., ,t�'�, �'S:.; '�;_;" •=gip!;
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Director of Internal Audit This recommendation will be accomplished by a newly hired Director of Internal Audits
Director of Internal Audit All of staff time is audit related.
Director of Internal Audit This recommendation will be accomplished by a newly hired Director of Internal Audits
Internal Audit/IT
At least one senior -level trained and experienced IT auditor and PA should be hired. A senior -level IT auditor and PA can instruct curve®
staff in these specialized fields.
Internal Audit/IT
The currently Senior System Analyst in the Internal Audit Department will be trained by an IT auditor.
Internal Audit/IT
The currently Senior System Analyst in the Internal Audit Department will be trained by an IT auditor.
Internal AudiUIT
At least one senior -level trained and experienced IT auditor and PA should be hired. A senior -level IT auditor and PA can instruct current audit
staff in these specialized fields. s
IT
When a major system is implemented, parallel testing is performed. This causes the systems to be tested with "real life" transactions.
IT
Users are involved amd results verged.
IT
See comments below:
IT
For minor modifications, some systems have extract that the
programs allow creation of testing subsets.
IT
For minor modifications, some systems have extract programs that allow the creation of testing subsets.
IT
The SCI package is currently being tested with production data.
IT
The SCI package is currently being tested with production data.
IT
Due to personnel constraints, we are unable to fully document all testing procedures, however, efforts are currently being made to ensure that
all major modifications and/or new systems are properly documented.
Director of Internal Audit
The function of Internal Audits should include revenue and lessee compliance auditing as this department has recovered significant revenues in
the past.
The resumes for the Directors position have been received and the new person will change the audit.
City ojMiami - Office oJBudget 23 oj50 7.•53 AM1211 719 Waster comments as of 12-16-97.x1s
ad rti
F_tC8
Internal Audit -An audit plan should be developed in conjunction with the
City Managerand
d department heads and should incorporate a risk
919 based approach focusing on internal controls and business risks
S SG
Director of Internal Audit This rerommendatin will be performed by a newly appointed Internal Audit Director.
Internal Audit -The audit plan should include a greater complement of Newly hired performance auditor Auditors profi6ient in performance auditing should be hired.
performance audits
Internal Audit -The audit plan should provide for a sufficient review of Newly hired Information Systems Auditor Auditors proficient in Information Systems auditing should be hired.
systems security
Internal Audit -Audit review should be provided to the YEAR 2000 Newly hired Information Systems Auditor Auditors proficient in Information Systems auditing should be hired.
systems conversion
Internal Audit -The City Manager as well as the Auditee should receive
a copy of the audit reports
Decide whether the present staff can provide the services envisioned
on a long-term basis.
Internal Audit -Audit staff dispersed in other departments should be
identified and centralized within th6 department, as appropriate
All Audit Staff This recommendation is currently implemented.
Director of Internal Audit This recommendation will be accomplished by a newly hired Director of Internal Audits.
This recommendation will be accomplished by the Mayor and/ or City Manager.
w,
2"M
The City should also develop a comprehensive cash flow forecast.
Finance See this Five Year Plan.
,M
Opporunities Task Force -Comprehensive operating and cash flow
Finance See this Five Year Plan.
be developed for a five
projections should year period
City should develop plan to return to fiscal strength, establishing targets
Budget This was already done and is incorporated in the Five Year Plan.
for appropriate fund balance reserves and funding of additional
reserves, addressing employee compensated absences, self -ins.,
capital replace., contingencies, and debt repayment.
P
Also addressing qmployea.compensated absences, self-insurance,
Finance See this Five Year Plan.
capital replacement, contingencies, and debt repayment.
I 'N
Opportunities Task Force -Operating cash reserve should be sufficient
Finance See this Five Year Plan.
to cover 30 to 60 days of operation
Z
Opportunities Task Force -Prudent to maintain cash reserves of
Finance Reserves will be established over the course of the Plan; however, the City will not be able to reserve $25 to $40 million over the five years.
unfunded self-insurance liability of not less than 30% to 50% of
outstanding claims
The City should develop a detailed forecast of expected short-term
Budget Budget Office research projects 74 retitements per year. The amounts budgeted in this Plan are adequate to pay off compensated absences.
cash payments relating to compensated absences in light of the
significant percentage of the Citys workforce currently eligible to retire
or expected to be eligible by the year 2000.
The City should continue to work to develop and.implement operating
Office of Budget The City's FY 97 and FY 98 Budgets, along with the City's Five Year Plan have already addressed that issue.
plans that ensure the City functions at a surplus each year.
City ofMlaml - OfJ1 e offtdgef 7.53 AM ter q ryasqfI2-J6,27. Is
winivatrves" �u ..Manar'�em®nta�nd�Productivi ��•'Iditiativcs°`=t�=..
<.' Opportunities Task Force -Projection's should address the future
;.;.33; , courses of action which will be required for the City to continue as an
operating entity
.. •y f 4` i •tin �•-. ;�,
` 3 Opportunities Task Force -Steps should be taken to return the solid
waste enterprise fund to profitability
s:'• ;'_': Opportunities Task Force -Raise user charges in Solid Waste to an
333 =; T : appropriate amount based on related costs and charges for similar
fir y .-1 services provided by other South Florida municipalities
Opportunities Task Force -Review level of Solid Waste services
provided and reduce service if appropriate
Revenue Options for Consideration -City could, through public hearing,
increase the millage to 10 mills
Revenue Options for Consideration -City could levy up to 20 % on each
non-exclusive franchise granted for garbage collection within the City
limits
Revenue Options for Consideration -City could adopt by ordinance a
telecommunication ordinance levying 7 % on intrastate long distance,
cellular, page and telegraph service
Revenue Options for Consideration -City could levy up to 10 % on water
•�,z � � � `service within the City limits
`g < Revenue Options for Consideration -City could adopt by ordinance a fire
services fee to all property owners within the City limits
ti:..
3 :�,�.,;� "•e= Revenue Options for Consideration -A rate analysis should be
'•.. performed on all Enterprise Fund operations and revised rate
P P P
° � 'di ql, schedules should be adopted by ordinance to recover expense of
¢.,q operations
Office of Budget The City's FY 97 and FY 98 Budgets, along with the City's Five Year Plan have already addressed that issue.
Solid Waste transferred to General Fund FY'98.
Solid Waste fee reduced to $33 per year. City Commission replaced with Fire Assessment Fee.
Office of Budget All Revenue Options listed are policy issues that require City Commission action.
Trash and recycling services will be provided five days per week. City Commission directed same level of service.
Office of Budget All Revenue Options listed are policy issues that require City Commission action.
Office of Budget . All Revenue Options listed are policy issues that require City Commission action.
Office of Budget All Revenue Options listed are policy issues that require City Commission action.
Office of Budget All Revenue Options listed are policy issues that require City Commission action.
Office of Budget All Revenue Options listed are policy issues that require City Commission action.
Office of Budget All Revenue Options listed are policy issues that require City Commission action.
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
�;� a•�- �• •••., r =
Revenue Options for Consideration -A rate analysis should be
' »>'
performed on Internal Services Fund operations and revised charge
back rates should be adopted to recover expenses of operation
Revenue Options for Consideration -Suggest City review the annual
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
i¢:,al ;:r'''" 'fit`°;tr;•;
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revenues received on mobile homes licenses fees and if revenue is Flat
.r»N�� £
i -- kS
or declining establish an enforcement program to increase compliance
;T, �,i
with the City limits
Revenue Options for Consideration -Suggest an analysis be performed
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
�;h•:. 43
on miscellaneous fees and charges to update for inflation or increased
operating expenditures
g::
„�t�
Revenue Options for Consideration -Suggest City review the allocation
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
of the Local Option Gas Tax and determine ability to change allocation
.. .. ,..
?methodology based on population
N
C]
City ofMramt - Office of Budget 27 of 30 7:53 AM12117197Master comments as of /2-16-97.xls
ive's"` .Managertl
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...: .,erl.......— ....-,r-e_w £m.aw.. ., r...w..e...
Revenue Options for Consideration -Adopt ordinance levying road -
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
assessment fee to property owners within City limits to maintain City
roadways
Plan should include the full costs of operating the City, including
Budget
This was already done and is incorporated in the Five Year Plan.
34
employee pensions, compensated absences, self insurance, risk
:i
underwriting and other activities which may require future payments.
Mtlltl-Faltrit {:gat1.P rams r•
.,....._ .�-, ... ,....
.,_ _ z.; .. .. _... .ate.: , k,a,' .. ..x. ..r. �._::.<<,...
:'... •a� `.ate...%> `::ya.'.-:,��'s.;,:..._.<_. _>-,. .a1:a:
Adopt a written enforcement policy with escalating collection efforts
J. Hepburn
Loan collection manual to be created with input of Finance & Law Depts., by 1 at quarter of FY'98.
based upon the level of default and time to cure. An in-house or
outside collection effort should be assigned to monitor and enforce this
process.
Evaluation of USHUb Funded Loan and Grant Programs -Take
immediate steps to accelerate actions to improve the collection and
servicing of outstanding and in -process loans in a diverse portfolio
Evaluation of USHUD Funded Loan and Grant Programs -Take
immediate and more aggressive steps to reprogram its current and
unspent prior years allocations of CDBG funds to fund other eligible
City activities
Evaluation of USHUD Funded Loan and Grant Programs -
Recommended that City provide and commit the necessary resources
to pursue full and complete receipt of funding reimbursements
Evaluation of USHUD Funded Loan and Grant Programs -
Recommended that City continue to identify pending reimbursement
opportunities and aggressively pursue the repayment of the funds due
Evaluation of USHUD Funded Loan and Grant Programs -City should
F` vigorously seek funding through the grant programs (see task force
report)
Establish a Loan Review Committee comprised of bank officers living
u: or working in,the City of Miami to consider loan applications and bring
expertise to the entire credit review process.
Evaluation of USHUD Funded Loan and Grant Programs-Shoufd take
i F> immediate steps to implement more stringent loan underwriting
guidelines and procedures to reduce future loan losses relative to
ongoing new lending activities
Evaluation of USHUD Funded Loan and Grant Programs -City could
immediately suspend all new lending and reprogram those loan funds
and repayments or recoveries from outstanding loans to the greatest
l extent possible
® Ciry nl �anri - OJ% ! f ge!
F. Castaneda Loan collect in manual & procedures to be prepared & completed with input from Finance & Law Dept. delineate each other's role and
responsibilities.
J. Hepburn/J. Cerdan $4.6 million has been re -programmed in FY's'96--'97 to fund eligible activities uder the CDBG Program. More unspent funds will be re -allocated
as they become available.
Frank Castaneda, Mike Lavin, Ken Edwards Dept. exploring available & needed staffing required to facilitate full & complete capture of funding outlay reimbursement. Finance Dept.
employed Grants Coordinator during 4th qtr. of'97. Responsible for facilitating reimbursement from US HUD.
Jeff Hepburn Dan Fernandez Reimbursements from CDBG Program to City's General Fund have been substantially minimized. New HUD system allows direct payment to
Ed Blanco sub -grantees.
Frank Castaneda, Dipak Parekh On -going effort by the Department of Community Development and Budget to identify and seek funding under various state and federal
programs.
J HepburnLoan Review Committee currently in place with City staff only at this time. Will work on adding members from the banking industry by 1st
Quarter of FY'98.
F. Castaneda Loan underwriting guidelines & procedures to be revised by the Dept. to reduce future loan losses relative to on -going new lending activities.
F. Castaneda $8 million in CDBG Program Multifamily Prgm. funds and program income were re -programmed for other CDBG eligible activities in September
of 1997.
® ® ® ® ® ® Ind53AM/7/?/? astereiw asoJl1-16- 97.x1s
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Evaluation of USHUD Funded Loan and Grant Programs -City
"->j-
Commission can reverse its previous approvals and cancel
commitments for two Section 108 projects totaling $6,645,184 which
have not been submitted to USHUD for processing and approval
4,2
`
ry, R'' `•':
t Consider the sale of defaulted loans to authorized third parties in
a• "
conjunction with continued dialogue with entities such as FNMA and
HUD.
x
..Y :.Cn: .ah,. •Ae. >.r;_ `�'�,`; o.e..rfr;; .'i:. �;> :"fig'`; �,a:. .2.:c
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i s4` e
a- I' F. Caslaneda Department to reassess & evaluate previously approved commitments for two Section 108 projects totalling $6,645,184 in funding from the U.S.
HUD.
J Hepburn Department will explore the possibility of selling off the good loans to 3rd parties. Default loans the dept. will explore the possibility of involving
collection agencies to collect payments. On -going process.
Evaluation of USHUD Funded Loan and Grant Programs -Use of private
F. Castaneda
The use of private collection services to be also explained by the Depts. of CD & Finance to enhance the effectiveness of loan servicing.
3$ ,
collection services should be explored to enhance the effectiveness of
ae,; : a `';'•;
loan servicing
9
9 47 r..$
�:.,«a,..,,,;r:�..-.�..:«,.b:;,<,..;..,a...:................ _„. <,. •;'>a''s:..:.:;.:.
Hire a highly qualified, experienced private sector firm as soon as
ALDO STANCATO
ITD'recognizes that a comprehensive strategic plan is imperative to maximizing the RO1 on City assets through the effective and efficient
possible, to assist the City in doing a detailed technology needs
implementation of City resources. Develop scope of work & RFP for project.
10,
assessment and develop a technology strategic plan.
Utilize available resources to determine lf qualified resources can be obtained to develop plan pro bono. Follow RFP process to select firm and
award contract.
Firm will assist in conducting a detailed needs assessment. Firm will assist City staff in the development of a strategic plan and formalized.
timelines and milestones for implementation.
° h `; ; • '
Develop semi-annual process to review findings and update with new developments in technology. In order to keep abreast of the latest trends
& developments in the technology sector,
y,� •�; .;%r`;..-°i r:-:',' •
senior IT staff should anually attend major technological shows; such as, Comdex and UNITE.
54M�s:s3ea
Wept.: ag:>
Information Technology Division (1T)-The IT Division should redefine its
mission in light of the trends in technology development
IT Information Technology recognizes that a comprehensive strategic plan is critical to defining the mission of the organization. In order to assist
us in creating a viable and dynamic strategic plan, outside assistance is needed. This assistance would be u
Develop scope of work and RFP for project.
Utilize available resources to determine if qualified resources can be obtained to develop plan pro bono. '
Follow RFP process to select firm and award contract.
Firm will assist in conducting a detailed needs assessment. Firm will assist City staff in the development of a strategic plan, formalized mission
statement, and implementation timelines.
This process will develop the expertise in-house to keep the plan updated and current. Process should be validate by outside firm every two
years.
In order to keep abreast of the latest trends and developments in the technology sector, senior IT staff should annually attend major
technological shows; such as, Comdex and UNITE.
City ofAfiami - Office ofQadget
29 of 50
7:53 AM12/17/97Masrer comments as of 12-16-97.xls
f:, nY •,
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Hire technology expert to head up a newly created Department of
Information Technology.
The individual must provide direction and vision, negotiate effectively
with vendors, close credibility gap by results, be unbiased and
3� objective, and communicate effectively with various constituencies.
..t'.
Negotiate interim extensions of software licensing agreements with
current vendor to provide for interim system requirements until
information technology needs assessment is completed.
Immediately address those priority issues regarding inter -network
communications and architecture decisions. This can be determined
prior to the completion of the technology strategic plan.
Several Information Technology Systems require immediate
improvement in the area of internal controls. Some of these issues
require high priority attention in order to ensure the continuity of the
+^ j;E':- •
City s operations in the case of unplanned interruptions
Fleet Management Task Force -Implement a complete Management
Information System with a Fleet Management module
Establish internal, cross -departmental Steering Committee to report
regularly to City Manager on policy/budget/management and resource
allocation issues related to technology.
Duties and responsibilites of the committee should be clearly defined in
a formal charter and should include the review and approval for:
Major changes in hardware or software.
Research and development projects under study.
City ojMiami - Office ojlrudge!
Frank K. Rollason
IT
IT
Info. Tech. - A. Stancato
Juan Pascual
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The City's new management organization includes IT as a division of the General Services Administration Department. However, IT still needs
a highly technical individual to administer the IT organization.
Recruitment process started with Human Resources. City Manager to review selected list of applicants from Human Resources, interview, and
make appropriate selection for administrator.
Wee agree with the proposed requirements.
Negotiations are underway with the vendor.
These needs will be the outputs of the needs assessment.
E
The software license for the All operating system, compilers and related system and database software expired on September 30, 1997.
Renewal of the license for a five year basis would cost $1.5 million, or $60,000 on a monthly basis.
Considering the limited lifespan of the Al7, neither of these options would be economically advantageous for the City. Tyhe best alternative for
the City is to apply these funds to the purchase of a Clearpalh machine.
Under the Clearpalh purchase agreement these software relicensing costs would be eliminated for the fife of the machine.
The Human Resources Department has been requested to audit selected positions and to reassign responsibilities.
Currently identifying a system for fleet. Research complete and recommend faster computer software system. RFP being prepared.
Soflwarethardware and support needed.
Frank K. Rollason Establishment of Steering Committee will ensure that strategic initiatives of the entire City are prioritized and implemented in a manner that will
maximize the return on City resources.
Steering Committee should be chaired by an Assistant City Manager or higher. Committee members should be chosen from the strategi
Departments of the City.
Hold, at a minimum, quarterly reviews of in -progress and requested projects. Committee will evaluate and prioritize each proposed proj
Departments present initial proposal for requested projects. Committee will decide whether business evaluation of the proposal should be
conducted.
Business evaluations will be presented by ITD staff for each committee approved project; providing a detailed cost and benefits analysis of each
project (only for projects utilizing over $30,000 In resouces - personnel, hardware and/or services.)
SW -A. Macbeth Participating on Steering Committee regarding Solid Waste matters.
IT Steering Committee The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
IT Steering Committee The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
IT Steering Committee The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no.more than monthly and
no less than quarterly, depending on outstanding projects.
® ® 30 o SO a ® ® ® 7-53 AAI / aster A IV of 1 �'16' s
M W M M M M W M M M M M M M M M
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The results of any cost benefit analysis.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. -The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
We ,J72
Software application development or acquisitions.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
Project priorities.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
Resource allocation in terms of time, personnel and equipment.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
Controls in effect.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
Conversion plans.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
3771"
Emergency procedures, contingency and physical security plans.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
Insurance coverage.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
Budgets and plans pertaining to the IT function.
IT Steering Committee
The City has formed a steering committee which will be chaired by the ACM of operations. The committee will meet no more than monthly and
no less than quarterly, depending on outstanding projects.
Z
IT User Group Committees should be established and be responsible
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
for:
individual user departments.
Communications between users and the IT Steering Committee,
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
management and regulatory agencies.
individual user departments.
Establishing user priorities.
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
Monthly service requests reporting by application.
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
0
individual user departments.
Coordination and apporval of request for IT services.
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
Authorization of data file removal from data centers.
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
Review and apporval of file retentions.
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
Coordination between users and IT.
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
Maintenance of commonality of system.
ITO
ITO will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
Cit), ofAft6nd - Office ofRudger 31 of50 7:53 AM1211719 Nfasicr comments as of 12-16-97.xls
User group Committees must be held accountable for all program,
changes and requests for IT services from their group.
Critical Success Factors -Establish Information Systems Steering
Committee
Information Technology Division (IT) -A technology Steering Committee
should be established chaired by an Assistant City Manager
Consider having Information Technology report directly to the City
Manager to account for the needs of all City operations and to more
effectively resolve issues related to technology.
Information Technology Division (IT) -Recommended that IT should
report to the City Manager's Office
After needs assessment is completed, develop comprehensive
Information Technology System (potential estimated capital budget
requirement is in the $30 - $40 million range over 3 -5 years). Cost
savings in productivity and efficiency will result from a
""sY"2�,�.' ``�i':`, r:i`- :>'_';G-•sue...—�.x,;-•_i--+v,.-""ii ""_'✓Y,'�' s'�" ;K�,-,',rc'-,',',',",tg,, ., r--;-'-<
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ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participationof the
individual user departments.
The Information Technology Steering Committee has been established, chaired by the ACM - Operations.
Establishment of Steering Committee will ensure that strategic initiatives of the entire City are prioritized and implemented in a manner that will
maximize the return on City resources.
Steering Committee should be chaired by an Assistant City Manager or higher. Committee members should be chosen from the strategi
Departments of the City.
Hold, at a minimum, quarterly reviews of in -progress and requested projects. Committee will evaluate and prioritize each proposed project.
Departments present initial proposal for requested projects. Committee will decide whether business evaluation of the proposal should be
conducted.
Business evaluations will be presented by Information Technology staff for each committee approved project; providing a detailed cost and
benefits analysis of each project (only for projects utilizing over $30,000 in resources - personnel, hardware and/or
While important, this department does not need to report directly to the City Manager.
The City's new management organization includes IT as a division of the General Services Administration Department.
Capital budgets for IT include hardware, software, and communications technology. Based on our preliminary review of our current technology
such as the A-17 and our city-wide area network, an expenditure such as this is appropriate.
Replacement of Unisys A-17 with Unisys Clear -Path is mandatory since the A-17 is approximately nine years old and Unisys will not gu
that all the components are Year 2000 compliant.
Implementation of high-speed wide area network that will allow all city departments to communicate efficiently and effectively. This wide
network should provide redundancy to reduce outages and loss of data and productivity throughout the City.
Completion of replacement of PC's, terminals, and B20's with PC network (excluding Police).
Completion of replacement of PC's, terminals, and B29s with PC network (for Police Department).
Ongoing review and upgrade of PC's throughout the City, both hardware and software, so that upgrades occur before systems become
obsolete.
Hardware and software necessary to facilitate Disaster Recovery Plan. (See Disaster Recovery plan above to cost estimates.)
Citywide imaging. Initially hire a outside firm to conduct needs assessment. Implement small pilot project and expand on project as time and
resources become available.
Begin migration of software applications to client server achietecture. Timelines and scope of project to be provided as part of the Strategic
Plan.
The software license for the At 7 operating system, compilers and related system and database software expired on September 30, 1997.
Renewal of the license for a five year basis would cost $1.5 million, or $60,000 on a monthly basis.
Considering the limited Iffespan of the A17, neither of these options would be economically advantageous for the City. The best alternative for
the City is to apply these funds to the purchase of a Clearpath machine.
Under the Clearpath purchase agreement these software relicensing costs would be eliminated for the life of the machine.
® C/ ojami-Oceo Berdget ® ® i1ofS0 ® ® ® M53AM/2//7/97 asfercom®asoJll-1. 6-97x/s
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t` Opportunities Task Fdree-Steps should be taken immediately to .,
+m• w• implement procedures, upgrade systems and provide adequate
47 `• ° professional staff to improve the timelines and integrity of the City's
financial and management information
City should develop a five year strategic IT plan that is based on the
City's Five Year Plan. This plan should be a working document that
a� < ,§{addresses key issues such as hardware, software, applications
development, communications, emergency procedures and c
Information Technology Division (IT) -Funding needs to identified and
399 3,= reserves need to be built to complete the network infrastructure for
•';'?°,;i "' P01ice and Fire and replace PC's
Approach potential teaming partners in both the public and private
sectors to develop different information systems and cost -sharing
approaches. A natural partner might be Metro -Dade County and local
Universities.
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Seek a private firm to simulate the Year 2000 and provide a test bed for
all City Systems to insure that Year 2000 corrections being made will
„ _ '; • indeed solve all related issues.
The IT Division should review its staffing to assess whether it has the
required experienced personnel resources to complete the project
available without cutting other required system development and
maintenance.
Information Technology Division (IT) -A plan needs to be devised and
funded to complete the task of making City systems Year 2000
compliant
... ......
v �TAFF� • AS$tGNED�•
Office of Budget On going.
Office of Budget Refer to the City's Strategic Planning Initiative.
IT A strategic plan will be created but is contingent on the development of a citywide strategic plan and of an ITD steering committee. ITD will
work toward the creation of both the plan and the establishment of the steering committee.
Info. Tech - A. Slancato Capital budgets for IT include hardware, software, and communications technology. Based on our preliminary review of our current tech
such as the A-17 and our city-wide area network, an expenditure of $30-40 million has been estimated by the Blue R
Implementation of high-speed wide area network that will allow all city departments to communicate efficiently and effectively. This wide area
network should provide redundancy to reduce outages and loss of data and productivity throughout the City.
Completion of replacement of PC's, terminals, and B20's with PC network (excluding Police).
Completion of replacement of PC's, terminals, and B20's with PC network (for Police Department).
Ongoing review and upgrade of PC's throughout the City, both hardware and software, so that upgrades occur before systems become
obsolete.
Although not part of the network infrastructure, replacement of the Unisys Al with a Unisys Clearpath machine is mandatory since the At 7 is
approximately nine years old and Unisys will not guarantee that all the components are Year 2000 compliant.
Info. Tech - Ana Kokenge Meet with Directors of IT at Miami -Dade County, FIU and UM to develop feasibility and scope of approach.
Review possible partnerships with other large Unisys sites in close proximity, such as, Broward County Courts.
Conduct quarterly workshops with the established partnerships developed. Continue to seek new partnership.
Establish revolving internship program with local major universities, such as FIU, UM, Barry, etc.
Info. Tech - Jim Osteen Year 2060 conversion efforts have been in progress since 1992. Total conversion of all applications is scheduled for December 1998. It would
be beneficial to have an outside firm validate the soundness of the Year 2000 modifications. Completion of the
Issue RFP for private firm to simulate the Year 2000 project and make sure it is viable. Develop time table for evaluation and validation of
converted systems.
Create and award RFP for the evaluation of systems based on established conversion time table.
Reviews of converted systems will be performed based on timelines outlined in the RFP.
Final review of all systems will be provided by 2nd Quarter 1999.
IT Current staff will assist in implementing the pilot program. However, an R.F.P. will be issued for a private firm to simulate and review the
converted systems.
Info. Tech - A. Slancato Year 2000 conversion efforts have been in progress since 1992. Total conversion of all applications is scheduled for December 1998. It would
be beneficial to have an outside firm validate the soundness of the Year 2000 modifications. Completion of the
City oJAftami - Office ojBudget 93 ojJo 7:53 AM11119197Master comments iu oi11-I&O..xis
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€ Give highest priority to developing and testing an adequate disaster
404; < 'e: recovery / business continuity and data security plan.
A comprehensive business continuity plan should be developed,
! documented and periodically tested to ensure continuity in the City's
°g: t business functions, as needed, after a loss if IT services in the event of
a disaster. Plan focus should be as follows:
Limit economic loss in case of an unplanned interruption.
411
ke to disruption
Minimize servicelbusiness functions.
p � y
Maximize awareness of the City's fiduciary responsibility adopting a
4 :Yf "due rare" mentality.
Analyze the citizen/business community awareness implications of
extended service interruption.
Determine exposure and design preventable measures.
Determine recovery and restoration needs and facilitate that recovery
and restoration.
City should develop and implement adequate plan maintenance
procedures which Involve representatives from each of the critical
business areas. Otherwise, contingency plan will become outdated
and, thus, of little use in the event of a disasaster.
Reciprocal agreements are not a viable alternative for supporting
critical IT operations during unplanned interruptions. Other alternatives
should be explored such as hot sites, mobile operations facilities,
internal backup and so forth.
City should develop speck testing procedures for its Disaster
Recovery Plan. Each test of the plan should be monitored by an
external observer with an independent assessment made and reported
back to Senior Management and the City Commission. .
® City o miamt - OffIc o Budger
�''�,v' ;-"' S" ."'4v'.'1". f., - ,,.:F'J°e?S^nn°•-:�;s:"' �rWr 'R�:'.^': aka,=".:^`' v, "x:.. 's�;�:a>4.j+" �=.:i:`,`ii�,.iM ^xs"rT`",3
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r... .«. _, a ., .._.. .. ,..c ...: ..0 .<.. .._., ."r .., .. -.._.: ,_....,. .st"�;, ._-±'i _;i.�...--.. � ,a,;:,•,..m w..:..:.d_;,.-,....: :. .� C.>.a.e>a >ax.. �
Issue RFP for private firm to simulate the Year 2000 project and make sure it is viable. Develop time table for evaluation and validation of
converted systems.
Create and award RFP for the evaluation of systems based on established conversion time table.
Reviews of converted systems will be performed based on timelines outlined in the RFP.
Final review of all systems will be provided by 2nd Quarter 1999.
Info. Tech - A. Stancalo With the purchase of the A-17 replacement, we are studying the cost and feasibility of placing the second processor of the new machine at the
EOC (Fire College). Additional hardware and software will enable us to have complete data replication at the two
Provide redundant data communication paths to all critical city facilities.
If adequate funding cannot be obtained for the above -mentioned initiative, then alternatively a Citywide Steering committee will determine which
applications are critical and assign acceptable service interruption levels for each system.Based on recommend
ITD will develop timeline to implement the appropriate recommendation within 6 months.
Plan will be tested, results verified and plan modified on an annual basis. (Costs cannot be determined until appropriate plan has been
adopted.)
Additional hardware and software necessary to facilitate Disaster Recovery Plan (this includes the cost of providing a second Clearpath
machine at the remote site.) - see comments below regarding the A17 replacement.
IT ITD is currently working with Unisys on the scope and cost of a new formalized disaster recovery plan.
IT ITD is currently working with Unisys on the scope and cost of a new formalized disaster recovery plan.
IT I ITD is currently working with Unisys on the scope and cost of anew formalized disaster recovery plan.
IT ITD is currently working with Unisys on the scope and cost of a new formalized disaster recovery plan.
IT ITD is currently working with Unisys on the scope and cost of a new formalized disaster recovery plan.
IT ITD is currently working with Unisys on the scope and cost of a new formalized disaster recovery plan.
IT ITD is currently working with Unisys on the scope and cost of a new formalized disaster recovery plan.
11
IT ITD is currently working with Unisys on the scope and cost of a new formalized disaster recovery plan which will include maintaining and
updating the plan.
IT The solution will be addressed in the Business Continuity and Disaster Recovery Plan.
The solution will be addressed in the Business Continuity and Disaster Recovery Plan.
now,
"ift ler c1W of 12W
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h should develop.: + publicize R � The City
C ty should and pu ze a data security policy, as well as
j standards and procedures for data security administration. Password
A15;:
--;, ,'r administration procedures should be formalized.
Management should develop and implement a formal vehicle to
communicate any personnel changes to security.
' Information Technology Division (IT) -IT must govern security issues
which should not be overridden by departments
Information Technology Division (IT) -A comprehensive disaster
s'a�g recovery plan should be developed addressing PC networks and the
mainframe
Information Technology Division (IT) -Backup procedures should be
developed for the PC systems
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�G�d•'%' ,�•, : �:-��.,;�.i ",3:7�yt'Y„T,=' >p:, ... �,° ^,&5; �•:k: ,ins, �;.T ,;s.. v•, t f `€ '�, d'� :is:....%.�.., .•++<'zy �.3 »i " - S 3 ¢�
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t _ � IT ITD will collaborate with Human Resources and labor Relations to draft a policy._
All City Security Administrators will receive a monthly printout showing all employee transfers, promotions, and terminations. This will be the
basis for removing security from employees who may no longer be appropriate after such personnel actions.
Info. Tech - A. Stancato IT recognizes the critical nature of a sound and effective security policy. The protection of the City's information assets is of vital importance to
the City's day -today operations and continued growth.
Establish written security policies and have approved by Steering Committee, Internal Auditors, and External Auditors. (Policies governing
general computer usage, Internet, E-mail, and computer faxing have been written and are awaiting final implementati
Implement and monitor the security policies.
Quarterly review of policies and periodic audits of procedures to ensure compliance.
Info. Tech - A. Stancato With the purchase of the A-17 replacement, we are studying the cost and feasibility of placing the second processor of the new machine at the
EOC (Fire College). Additional hardware and software will enable us to have complete data replication at the two
Provide redundant data communication paths to all critical city facilities.
If adequate funding cannot be obtained for the above -mentioned initiative, then alternatively a Citywide Steering committee will determine which
applications are critical and assign acceptable service interruption levels for each system. Based on recomme
ITD will develop timeline to implement the appropriate recommendation within 6 months.
Plan will be tested, results verified and plan modified on an annual basis. (Costs cannot be determined until appropriate plan has been.
adopted.)
Additional hardware and software necessary to facilitate Disaster Recovery Plan (this includes the cost of providing a second Clearpath
machine at the remote site.) - see comments below regarding the Al replacement.
Info. Tech -A. Stancato
Info. Tech - A. Stancato Completed at Riverside utilizing the BBARS product. As new sites come on-line_ with the appropriate connections they will be added to the
backup procedures.
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Emphasize training of all Department of Information Technology Staff. Managers Office Training of all of the City's staff, including Information Technology, is a priority for the City.
a Info. Tech - A. Stancato
Information Technology Division (IT) -Formal training program should
be adopted for project management and structured methodologies
T Develop and implement a plan for Information training for the rest of the Managers Office
vz
City employees.
In these times of diminishing resources, we need to utilize the available resources in the most effective and efficient manner possible. The
establishment of a formal training program will familiarize managers in the effective control of costs, time, and
Establish guidelines on topics and participants.
Review available training from local training firms and Universities.
Training for all departments on the financial systems will be accomplished this fiscal year
Ciry ofAfiamf - Office of Budget
3s of so
7:53 AM12117197Master comments as of /2-16-97.xis
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In order to reposition the workforce strategically for the future, No staff available without unduly interrupting Chapter 2, Page 37 - Recommendation was to conduct a market rate survey or retain consultants to prepare a transition plan to adjust rate
undertake a comprehensive job desc.and job class review, evaluating normal assignments, including but not disparities between Tier 1 and Tier 2 wages.' As part of a comprehensive classification review, '
class to det. whether they provide the right skill sets and whether they limited to conducting classification audits,
are consistent with the Cily's objectives salary surveys and assisting with
r;.;'a, = restructuring plans.
s==
24'
Critical Success Factors -'Consider deleting equivalent combination of
, -
training and experience' for professional credentials
Accounting Division -Lack of technically qualified staff in some areas of Finance
the division
Internal Audit -Staff persons with CPA licenses should be required to Mike Rubin
g,
meet CPE requirements Delores McCray
All Audit Staff
Internal Audit -Audit staff positions should be filled with individuals
possessing, finance, accounting, audit, EDP and business backgrounds
Internal Audit -Job descriptions should be rewritten to reflect the coned Director of Internal Audit
roles and responsibilities of the staff
Fleet Management Task Force -Determine proper classifications for
work performed and appropriate number of employees
Health Insurance Task Force -The plan administrator should be very
knowledgeable in matters involving applicable regulatory compliance
Operating Practices -Establish the right of managers/directors to hire,
promote and discharge employees based on qualification and job
performance
City should not hold a register.of qualified applicants for two years
Juan Pascual
Job descriptions have been reviewed and modified to provide for the best qualified person to be employed. .. 0
Job descriptions have been reviewed and modified to provide for the best qualified person to be employed.
This recommendation is also required by the "Government' Auditing Standards" promulgated by the Comptroller General of the United States.
All auditors possess a college degree in one of these fields.
This recommendation will be accomplished by a newly hired Internal Audit Director in conjunction with the Department of Human Resources
Ongoing study with Dept. Personnel. Some job specs already updated. Fleet Manager position added. Auto Mechanic Specification updated.
Evaluation of position needs ongoing/staff levels. Several employees now working out of class. Sourcing study dependent.
Health Benefits - Nancy Fernandez Done
Manager's Office Will be a subject in negotiations with the unions.
Subject to Civil Service Rule modification which sets the maximum time limit of registers; Approval of Civil Service Board and public hearing
required.
The employee appeals process under Civil Service Board should be
R. Sue Weller, Labor Relations Officer
Subject to negotiations
reviewed. A common solution elsewhere appears to be having a
hearing officer handle appeals.
None
It is recommemded that this inliative be corodinaled by the Executive Sec. of the C.S.Bd in conjunction with a task force comprised of City
administrators -one of which should be from the Department of Personnel -and external personnel professionals.
�-
:�,.fF..".:,. H ,z�"tR Hors
Review training and development skills that are needed to upgrade
Risk Management -Mario Soldevilla
This is an on -going need. -Funds must be allocated for seminars and CEU credits to maintain licenses.
=. _ sti +•-i:>: ,z. existing employee's ability to meet the strategic needs of the City.
Once review is completed, commit resources to provide skills
';dace,"•d
w development opportunities.
Human Resources - J. Harris
Responses to Citywide training needs survey have been compiled for assessment. In order to implement and coordinate the training
function,funding for training staff ($1041< annually) and for programs and materials (200K annually) is needed.
® City o hfiami • Office o Budger ® � �
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16 0 50 � ® ® ® 7:53 AM! /�Masrer c m�u ertls as of 12-16- 7.xls
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Accounting staff should be required to undergo minimum continued Finance
The Blue Ribbon Panel, in conjunction with Florida International University, and the City's Finance and Human Resource Departments, are
professional training each year. training should address technical
preparing a training program tailored specifically to address the various functions of the Finance Department.
accounting and reporting issues, changes, or updates in the City's
operations, policies, procedures and job duties.
During FY 1997, classes were conducted by FIU and SCI. Also, an SCI Project Management Assistant will be hired to conduct in-house
•
training,
Attending IT auditing conferences, seminars, memberships in Internal Audit
Training is and will be a priority.
professional organizations dedicated to IT auditing should be
encouraged on the part of the City's Internal Audit Staff.
A formal training program should be developed for each IT employee, IT
which will address methods and techniques required to bring their
We will request assistance from the external auditors in developing a training plan.
performance in line with the City's objectives.
The first step should be the development of a formal skills and IT
We will request assistance from the external auditors in developing a training plan.
competencies inventory, preferably by means of objective skills
assessmenttests.
Al least one other senior Programmer Analyst be trained in IT
should
We will request assistance from the external auditors in developing a training plan.
LINC application development, and one additional staff member in
LINC Admin. to provide a backup capability. LINC environment has
not taken advantage of the new tools as it should have.
Internal Audit -The skill set of audit staff should be broadened and staff
Governmental Auditing Standards require eighty (80) Continuing Professional Education hours be completed every two years. This department
should receive appropriate level of training
adheres to this requirement.
Risk Management Department Review -Establish a formal professional Risk Management - Mario Soldevilla
In progress.
development plan for each of the Department Safety Officers including
the use of internal and external resources
V-,
Operating Practices -Design and implement a comprehensive employee T.Griffin
Coordination with HRD
training program
Review best practices in City, County and State government in regard Managers Office
to leadership
Priority of the City is to create and train cadre of middle managers who will be promotable to fill these positions.
succession planning and develop its own proms of
leadership development, recognizing that 51% of the current executive
workforce will be eligible for retirement by 1999.
L,
Critical Success Factors -Conduct a comprehensive review of personnel
Personnel practices along with Civil Service Rules are being reviewed for potential modification.
practices
Consider elimination of the two tier wage system. Market rates should Labor Relations
This will be subject to negotiations with our unions.
be established for all positions and used to set pay grades subject to
periodic evaluation.
Z
Appointments to key City positions must not be made on the basis of Manager's Office
We agree.
favoritism or political sponsorship and loyalty.
Operating Practices -Remove "politics" from the employee hiring and Manager's Office
We agree.
promotion process
City leadership must foster an environment that respects and values Manager's Office
We agree.
the contributions of personnel at all levels.
City of0aad - Office ofBudgel
37ofJ0 7:53 AA412117197Masler comments as qf12-16-97.x1s
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initiativea.. Mona emenE and -.Brad uctivi Ind
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Review Unit Certification Issued by PERC as to each bargaining unit to R. Sue Weller, Labor Relations Officer and Involves lengthy hearing process before PERC.
449 ° y 1 determine which,positions were included in the unit. Linda Rice Chapman, AssL City Ally.
Advise each union that as to those positions that are not part of the R. Sue Weller, Labor Relations Officer Requires review of mang/conf. positions from 1978
• certified bargaining unit it is not the authorized representative.
=° 451,':, Modify the Civil Service Rules.to: See Initiatives #452454
Extend the list of positions which are unclassified to include managerial
and confidential.
Reestablish Managerial and Confidential Employees
Remove the limitation of the five unclassified employees in one
department.
?3 iv a .t r.:, . rwaUan.Cla msdnl�l vea�' .: � iNotksrs , aft' '
ibmit a proposal to the, Commission/Oversight Board of the City to
ntract with a claims handling organization such as Third Party
Iministrator, or "engage" licensed temporary claims representatives
perform a project oriented "Claims Blitz".
Risk Management Department Review -The City should request a
proposal for third party administrative handling services
Human Resources Requires change in Civil Service Rules and change in the Charter.
0
GSA -Juan Pascual GSA - Reestablish Managerial / Confidential Employees making superintendents of Property Maintenance, Communication, Graphics, Lt. Fleet,
Heavy Equipment MC's. Also any assistant superintendent, Executive Assistant and Secretary IV positions.
Human Resources Requires change in Civil Service Rules and change in the Charter.
Human Resources Requires change in Civil Service Rules and change in the Charter.
;,i-y-wyw.x •x•�""T^"x. ^•^, "'----"-"«.• w.ry,t,,.;;..q tlp..t..; m:mr�r- �H'iT `�a`sH':.j eta^?n.?M!.�s;>i"�;i'n""r':-^--'".'y.;,°sy,^?•ea,,,.. .,,;y'x`:,.
.><,..., ae.... r< <«..,- >, .._, .<e, e •. e a..> .'>4. «. „ryD,:.•.S:„..., .z.,-.<�.sse.�,_,...,.»_a,... � LaJ...,��.>.awx`z'�i::k$4:A:..�'..k.:'.». �. m,x...ax.<.,.h „<. ,._> ., .. .... w„_ .,e 'gas ,e a... ,
Risk Management - Mario Sbldevilla Hire temporary claims representatives. Issue: need space and equipment.
Risk Management - Mario Soldevilla Should hire a consultant to prepare an RFP. However this should be done after the impact of a managed care arrangement has been
evaluated.
Blitz to be designed to close as many inactive claims as
9, settle or resolve as many pending claims as possible and
ih diary dates for claims adjuster review,
nt existing in-house legal resources on a short term basis by . Risk Management - Mario Soldevilla
,hing a relationship with outside law firm (s) that specializes in
s compensation defense to handle all "claims blitz".
Health Insurance Task Force -Implement a strong subrogation clause Health Benefits - Nancy Fernandez This initiative is a duplication
and employ a law firm to protect those interests, paying their fees from
moneys which are recovered
Related litigation and settlement supervision agreements under the of
the City Attorney.
9
Evaluate the need for and hire additional staff needed to perform Risk Management - Mario Soldevilla Hiring of temporary claims representatives will accomplish this phase and dictate what our staffing requirements will be.
:i
claims handling in accordance to best practices after the claims blitz
has been completed. Train new staff.
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----------- --
Create and adopt claims handling procedures that reflect best Risk Management - Mario Soldevilla Strogrily agree we are currently pursuing implementation.
practices. Enforce strict compliance to these procedures.
Health Insurance Task Force -Workers Compensation payments Health Benefits - Nancy Fernandez Done.
should be integrated and coordinated with health care
Health Insurance Task Force -Each health care carrier should produce Health Benefits - Nancy Fernandez CIGNA Healthcare produces a quarterly claims analysis which is reviewed by group benefits. Issue need to formalize finance dept's interaction.
6C a claims analysis and reviewed sami-annualiy, be Benefits and Finance
staff
Health Insurance Task Force -A claims and financial analysis should be Health Benefits - Nancy Fernandez Recommend that an internal audit revie be performed semi-annually.
reviewed annually by Benefits, Finance, Human Resources/Labor
Relations and the City attorney
Health Benefits - Nancy Fernandez Reconciliation and accounting of prescriptions against the administrative fee is performed monthly by groups benefit.
Health insurance Task Force -Should perform a quarterly reconciliation accounting
and of prescriptions against the administrative fee
Risk Management - Mario Soldevilla
Risk Management Department Review -The City should utilize'best
practices" claims management procedures for the handling of all claims
Risk Management Department Review -Should establish a committee of Risk Management - Mario Soldevilla Re-establish self insurance and insurance trust committee as required to oversee the operations.
individuals representing claims, legal and finance to meet monthly to
discuss all claims reserved over various levels
Risk Management Department Review-Chy Commission should Risk Management - Mario Soldevilla There are changes to the code which have been proposed and should be presented to the commission for approval.
consider raising the dollar level of claims that need to come before the
Commission for approval
Z
Review and if necessary change job description and background
Risk Management - Mario Soldevilla Develop simultaneously with 'best practices" implementation.
prerequisites for claims adjusters and claims supervisors handling
worker's compensation claims to reflect the complexity of the work and
skills.
Elevate the reporting relationship of the functional leadership of the
Risk Management -Mario Soldevilla
X
Safety Department.
Risk Management Department Review -City should re-evaluate the
Risk Management - Mario Soldevilla This is a duplication of another initiative.
reporting hierarchy for the Safety Department
Risk Management Department Reviiw-Fully implement LMP 1-95 (City
Risk Management -Mario Soldevilla Done.
Wide Safety Committee)
Risk Management Department Review -Fill the Police Department
Risk Management -Mario Soldevilla Done.
Safety Coordinator position within the next 30 days
M
Zi •
Risk Management Department Review -Identify the roles and
Citit
Risk Management - Mario Soldevilla This will require a commitment from
om the City Manager as a policy statement.
responsibilities of all management as relates to safet
y y and hold
them accountable
.
Risk Management Department Review
-Complete an assessment of
City Department's
Risk Management - Mario Soldevilla The City is not governed by OSHA Admnistration, therefore we have our own program in progress.
each safety and health program using the OSHA
Program Evaluation Profile
10
City -fitfiaml - Office qfBudgel 39 ofJo 7:53 AA41211 719 7Uaster comments as of 12-16-9 7. its
7
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Num*' Cal
TAFFASS1
Appoint an evaluation committee to perform an interim review of the Risk Management - Mario Soldevilla
effectiveness of vendor selected to implement the managed care
arrangement for the City of Miami and the program.
Risk Management - Mario Soldevilla
Implemented calendar year deductibles into plan providing incentive for managed rare election at annual savings of $22,500.
i
Health Insurance Task Force -Reevaluate the executive plan which
provides no incentive for managed care election by the executive
Risk Management Department Review -By December 11, 1996 a Risk Management - Mario Soldevilla
Evaluation of RFP is complete - Recommendations to the City Manager are forthcoming for commission action.
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
7
Group Benefits and the Human Resources I Labor Relations Health Benefits - Nancy Fernandez
Issue: an analysis was Issue: an analysis was performed of the group benefits function, and was determined that it should remain in risk
.............
Departments should all report to the same ACM.
management. risk management is a division of G.S.A. which reports to the ACM for operations,
Health Insurance Task Force -The Benefits Department should be part Health Benefits - Nancy Fernandez
This intiative is a duplication.
of the Human Resources Department
Health Benefits -Nancy Fernandez
Health Insurance Task Force -The Benefits Department should be part 10
This intiative is a duplication.
I the Labor Relations Office
Health Insurance Task Force -One person should be designated in Health Benefits -Nancy Fernandez
Done
writing as plan administrator
.Q,
Rl"';.
The City should immediately employ an insurance Benefits consultant Health Benefits -Nancy Fernandez
be development Benefits for
The cost for these services would range from $25,000 to $50,000. an alternative is to include these services in the scope of services for the
city's insurance broker R.F.P. since broker receives commission on coverages this will be at no cost.
to on hand for of pricing and models
insurance Benefits procurement.
procured
Health Benefits -Nancy Fernandez
This Initiaitive is a duplication
Health Insurance Task Force -An insurance broker should be available
to the management negotiating team to provide actuarial analyses
U
Health Benefits - Nancy Fernandez
health care contracts are currently tied to labor agreements typically spanning 3 years. Rates are negotiated annually with TPA.
Health Insurance Task Force -Multiple year health care carrier contracts
should be negotiated and re -negotiated not less than every two years
Health Insurance Task Force -The Benefits Office should have the
Health Benefits - Nancy Fernandez
This initiative is a duplication
services of a an insurance broker available for use upon demand
Health Insurance Task Force -Authority to negotiate any type of benefit
Health Benefits - Nancy Fernandez
Done
plan to contract with an insurance carrier should
ZIA
Health Insurance Task Force -Attorney and Chief Financial Officer
before incurring obligation
Health Insurance Task Force -Should explore the possibility of
Health Benefits - Nancy Fernandez
This is tied to the labor agreements negotiations
contracting for some benefits utilizing the combined leveraging ability of
multiple local communities
C, Mi - oge, 0013 AMIJ044ster as of] I
� 06 Nos
Is
Health Insurance_ -:
Task Force -A strong subrogation clause should be
Health Benefits - Nancy Fernandez
"
Done. k
s'."ish.'d6:enforced within the.health care plan
Health Insurance Task Force -Cost containment incentives for third
Health Benefits -Nancy Fernandez
This is tied to the labor agreement negotiations
party administrator or health care contractor should be added to the
contract
Health Insurance Task Force -Wire transfer procedures should be
Health Benefits - Nancy Fernandez
This should be performed by our internal auditors.
"'493,
examined semi-annually and transfer accounts should be continuously
audited for accuracy
Health insurance Task Force -A survey of all benefits should be
Health Benefits - Nancy Fernandez
Done.
conducted not less than every two years to determine the competitive
1 4
position of the total benefits package
Health Insurance Task Force -Should periodically evaluate the
Health Benefits - Nancy Fernandez
This will be one of the services to be provided by the insurance broker
3.
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
Health Benefits - Nancy Fernandez
Done.
voluntary (employee pay all) basis, supplemental life and disability
insurance
Health Insurance Task Force-Reevafuate the proportional cost for
Health Benefits - Nancy Fernandez
Current litigation prevents implementation at this time.
. . ...... z,_,
health care borne by the City where retirees are concerned
Health Insurance task Force -Should expand flexible benefits and avoid
paying the employer portion of taxes on earnings
Health Benefits -Nancy Fernandez
To be implemented in future ASO contract
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 through purchasing
"T
Summary plan descriptions should be updated and distributed timely.
Health Benefits - Nancy Fernandez
Summary plan descriptions have been updated and finalized. pending printing and distribution to all insureds.
V
Health Insurance Task Force
-A Summary Plan Description of all
Health Benefits -Nancy Fernandez
This initiative is a duplication.
benefits should be prepared and distributed to each plan member with
all terms and conditions clearly spelled out
Engage a private employee Benefits communications and enrollment
Health Benefits - Nancy Fernandez
The City utilized a firm for the'97 annual enrollment of general and sanitation employees at no cost to the City.
firm to take over the responsibility of annual communications and
enrollment of all core and voluntary Benefits.
Health Insurance Task Force -The benefits needs a formal
program
Health Benefits -Nancy Fernandez
Done.
delivery system
The City should detailed identifying
receive a actuarial report the
Health Benefits -Nancy Fernandez
Cigna Healthcare prepares an actuarial report annually as part of the report filed with the staWs department of insurance.
correct current claims loss reserve for the medical plan and then
incorporate a plan for achieving that reserve within five years.
Health Insurance Task Force -The benefits program needs coordination
to arrest and control costs
Health Benefits - Nancy Fernandez
Done.
City of Miami - Office of Badger 41 qf50 7:53 AM12117197Mmvier comments as of12-16.9'7.xjs
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dt The City should not negotiate any agreement wherein it both
x_ ._ .« ,> _ _.,
Health Benefits - Nancy Fernandez This is tied to the labor agreement negotiations
..-„o�i;::�="^„T
relinquishes control and guarantees performance at the same time,
such as in the current F.O.P. medical plan agreement regarding the
reserves -Must not be tied to "Prevailing Benefits" clause.
}: r
Retain the management right to subcontract or privatize any and at
R. Sue Walter, Labor Relations Officer Subject to labor negotiations
aspects of job functions without further bargaining over decision. '
Bargaining shall be only over impact of decision.
Fleet Management Task Force-Outsource all or part of fleet services
sQg through either the private sector or Metro
Eliminate all "Prevailing Benefits" clauses.
Eliminate five percent increase in salary, and hence all accrued
benefits, on retirement.
Eliminate Union control or veto of any City -funded programs.
GSA - Juan Pascual Lt. Fleet already outsources transmissions and body shop operations. Wrecker services outsourcnd. RFP for outsourcing alternative for
Stockroom, both heavy and light fleet operations. Large percentage of fueling outsourcnd thru Metro -Dade County gas cards
Labor Relations - R. Sue Weller Subject to labor negotiations 0
R. Sue Weller, Labor Relations Officer Subject to labor negotiations
R. Sue Weller, Labor Relations Officer Subject to labor negotiations
Eliminate all City -subsidized payment of time used for Union business, R. Sue Weller, Labor Relations Officer Subject to labor negotiations
including 'lime pool," release to work, negotiations, grievance
�:.: w; r.'s.• ; ' investigations, etc.
SW -A. Macbeth Solid Waste - Will include in City proposal for negotiations.
i:r3• �a rc n' as �.s'i"
Centralize all communications with the Unions through Labor Relations R. Sue Weller, Labor Relations Officer Subject to labor negotiations
r:.�ia ,•,,,,, Officer. This includes -grievances, work peace issues, concerns, etc.
Prohibit any department, including Fire Department, from entering into R. Sue Weller, Labor Relations Officer Subject to labor negotiations
"side" agreements under the Collective Bargaining Agreements.
Cost out the total financial package under the agreement to determine R. Sue Weller, Labor Relations Officer Subject to labor negotiations
the actual 'Wages" paid.
Fleet Management Task Force -Terminate the current Police take-home GSA - Juan Pascual This is bargaining unittrontract item.
:"ySa r policy
Labor Relations - R. Sue Weller Subject to labor negotiations
Health Insurance Task Force -The chief benefits officer should Health Benefits - Nancy Fernandez The benefits administrator will participate during the next years' negotiations.
participate in some form with Union negotiations where benefits are
involved
11
Risk Management Department Review -The City should conduct an Risk Management - Mario Soldevilla Some labor concessions are in place. Other cost savings: Eliminate heart bill for police, use ' V" or "I" time for supplemental pay. Consecutive
immediate review of all labor agreements to identify cost savings days since injury occurred.
Retain management right to make decisions required to operate and R. Sue Weller, Labor Relations Officer. Subject to labor negotiations
limit bargaining to impact only.
Ci oami - Office o Bridge! MMJ5J AMjj(jWsler VW oj1s M
APPENDIX D
5-Year
Estimates:
By Fund
and
Department
® Mom = m i m m m m m m
CITY OF MIAMI
5-YEAR EXPENDITURE ESTIMATES
BY FUND AND DEPARTMENT
AS OF 1018197
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
Fund
01 GENERAL FUND
16
MIAMI SPRINGS GOLF COURSE
674,375
402,141
423,105
443,291
447,841
450,495
20
OFFICE OF THE MAYOR
368,109
354,813
372,359
390,175
397,510
398,�
21
BOARD OF COMMISSIONERS
680.704
861,192
983,655
1,018,595
1,032,865
1,037,150
22
CITY CLERK
760,461
755,212
775,036
796,218
800,743
802,319
23
LAW
3,477,147
3.406,396
3,514,138
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
1,351,483
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
1,824,958
28
FIRE -RESCUE
55,743,792
56,075,953
57,666,137
59,138,121
59,606,954
59,961,503
29
POLICE
108,640,517
108,265,351
113,813,494
117,517,555
117,103,981
116,242,366
31
PUBLIC WORKS
11,953,598
11,875,867
12,287,716
12,687,011
12,937,845
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
5,150,069
5,244,575
5,339,�
40
OFFICE OF BUDGET AND MANAGEMENT
2,147,773
2,147,005
2,214,451
2,281,376
2,301,371
2,305,442
42
GENERAL SERVICES ADM. AND SOLI
0
810,348
1
1
1
-4,9.97
44
PENSION
0
89,621
0
0
0
0
46
INFORMATION TECHNOLOGY
5,206,254
5,089,329
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
5,102,022
5,311,264
5,378,241
5,404,345
58
PARKS AND RECREATION
11,688,297
11,701,464
12,077,566
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
3,991,256
Page 1
CITY OF MIAMI
5-YEAR EXPENDITURE ESTIMATES
BY FUND AND DEPARTMENT
AS of 1018/97
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
82
OFFICE OF HEARING BOARDS
543,499
517,923
535,587
553,458
562,539
569,036
84
OFFICE OF EQUAL OPP/DIV PGM
282,030
331,997
344,409
356,833
360,572
360,
fo
86
OFFICE OF LABOR RELATIONS
567,122
549,024
571,581
600,390
608,673
609,2
87
COMMUNITY INFORMATION
279,487
276,263
289,935
301,736
303,415
305,694
88
PURCHASING
1,281,629
1,220,225
1,272,751
1,329,009
1,352,543
1,364,425
92
SPECIAL PROGRAMS AND ACCOUNTS
34,623,082
44,911,578
25,179,596
27,509,095
29,202,851
30,611,330
GENERAL FUND TOTAL
284,908,875
295,797,446
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
38,995,361
40,288,527
28
FIRE -RESCUE
2,452,455
2,362,382
2,434,962
2,505,444
2,526,247
2,538,651
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
15,669,000
15,871,000
15,871,�
35
CONFERENCES, CONVENTIONS AND PUBLIC
4,498,613
4,490,852
4,571,666
4,646,910
4,724,412
4,724,412
56
PLANNING AND DEVELOPMENT
36,000
36,000
36,000
'36,000
36,000
36,000
58
PARKS AND RECREATION
670,489
670,489
678,928
687,445
692,593
695,039
SPECIAL REVENUE FUND TOTAL
63, 289, 432
63, 984, 306
65, 356,022
66, 802,190
68,186,177
69, 532, 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
52, 958, 710
53, 224, 359
42, 520,793
42, 333, 948
42, 470,157
Page 3
APPENDIX E
5-YEAR ESTIMATES:
REVENUES
BY
FUNDS
CHARACTER
AND
MINOR OBJECT
M M M M M M M M M M ® M M M
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
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
727,614
752,05
229
FP & L FRANCHISE
12,500,000
12,082,832
12.138,695
12,194,503
12,250,289
12,306,070
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
700,009
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
02 LICENSES AND PERMITS
025
LINE & GRADE SURVEY
053
BUSINESS-LICENSE-
054
BUSINES-LICENSE-PENALTY
056
OCCUPAT LICENSE -TRANSFER FEE
100
FIREWORKS PERMIT
101
ASSEMBLY PERMIT
107
SALE OF PERMITS LOT CLEARING
108
MICROFILM CHARGES-BLDG
124
BENCH PERMITS
286
CONTRACTORS OCCUPATIONAL LICEN
350
TRAFFIC PERMIT FEES
Wednesday, October 29, 1997 10:50:35 AM
125,525,725,, 123,3930391 125,606,746 128,536,473 131,743.438 135,023,919
86,234
86,234
86,234
86,234
86,234
86,234
5,400.000
5,700,000
5,700.000
5,700,000
5,700,000
5.700.000
35.0.000
261,000 •
261.000
261,000
261,000
261,00de
360
100
100
100
100
100
1;708
1,708
1,708
1;708
1,708
1,708
6,200
6,200
6,200
6,200
6,200
6,200
4,670
4,670
4,670
4,670
4,670
4,670
32,120
'40,150
40,150
40,150
40,150
40,150
154,345
170,000
170,000
170,000
170.000
170,000
45,000
15,000
15,000
15,000
15,000
15,000
42,000
90,000
90,000
90,000
90,000
90,000
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
450,00-0
450,000
456
SIGN PERMITS
265,500
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
6,500
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
11.5,869
115,869
119,345
122,925
126,613
126,61
674
ALCOHOLIC BEV. APP. FEES
3,000
3,000
3,000
3,000
3,000
3,000
TOTAL LICENSES AND PERMITS
03 INTERGOVERNMENTAL REVENUE
057 OCCUPATIONAL LICENSES -METRO
074 STATE OF FLA REVENUE SHARING
075 STATE OF FLA MOBILE HOME LICEN
076 STATE OF FLA CIGARRETTE TAX
8,564,329 8,681.314 8,684,790 8,668,370 8.692,058 8,692,058
493,433
493,433
498,367
503,351
508,385
508,385
3,624,742
3,624,742
3,704,742
3,784,742
3,864,742
3,946,431
30,000
30,600
30,000
30,000
30,000
30,000
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
6-Year Estimates
Revenues by Fund, Character and Minor Object
as of 1018/97
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
077
BUSINESS -LICENSE -LIQUOR
163,713
163,713.,
161,496
159,279
157,062
155,000
251
TRAINNING REVENUE
20,000
20,060
20,000
20,000
20,000
20,Od0
274
US DEPT OF AGRICULTURE
48,000
48,000
48,000
48,000
48,000
48,000
378
METRO-DADE RESORT TAX
1,775.000
1,775,000
1,810,500
1,846,710
1.883,644
1,883,64�
439
HALF CENT SALES TAX
191-012,000
19,012;000
19,450,000
19,889,000
20,327.000
20,774,194
480
FIRE FIGHTERS SUPP COMPENSATIO
105,194
105,194
105,194
105.194
105,194
105,194
597
U.S.DEPARTMENT OF JUSTICE
11,063,235
11,367,157
13,874,035
6,590,439
2,601,612
0
647
KEY.BISCAYNE - CITY CONTRACT
402.000
402,000
402,000
402.000
402,000
402,000
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
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
2,571
5,000
5,000
.5,000
5,000
5,000
2,600
2,600.
2,600. ..
2,600
2,600
2,600
125,000
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
6-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
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
4,862,0210
090
PHOTOCOPY SERVICES
134,665
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
10,923
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
11000
1,000
11000
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
730,00
146
EQUIPMENT RENTAL
76,000
76,000
75,000
75,000
75,000
75,00 0
149
ELEVATOR PERMITS
290,000
77,719
77,719
17,719
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 1018197
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
176,000
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
208
DAY CARE FEES
249.395
210,000
210,000
210,000
210,000
210,0000
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
19,396
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
1,276
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
725,00�
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
3,004,620
3,004.520
3.004.520
3,004,520
397
DOCKAGE TRANSIENT
754,532
754,532
854,532
854,632
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
8-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 GENERALFUND
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
80,25p
60,250
80,250
80,250
515
COMPREHENSIVE PLAN AMENDMENT F.
2,500.
2,600.
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
865,00010
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
2,750.000
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
� ® i� � � ® s � ® iii�i ® � � ® iii� iiiiiiis � ■� �■
City of Miami
6-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
5,090
677
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
11050,000
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
1,356
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
_ 50,926,675
53,419,574
57.833,346
56,606,238
56,866,155
57,102,105
.
S
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
609
.SCHOOL CROSSING GUARD
107,148
.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
6-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
1,467,400
1,455.400
1,455,400
1,455,400
1,455,400
1,455,400
048
REIMB LOST PROPERTY
8,956
8,955
8,955
8,955
8,955
8,955
070
RENTAL PROPERTIES'
2,628,062
2,609,062
2,929,062
2,929,062
3,421,562
3,421,562
083
PENSION -METRO WATER & SEWERS
105,831
105,831
105,831
105,831
105,831
105,83
094
INTEREST ON INVESTMENT
1,800,000
1,800,000
1,700,000
1,700,000
1,700,000
11700,000�
095
INTEREST ON LOT CLEARING LIENS
11,000
11,000
11,000
11,000
11,000
11,000
105
PUBLIC HEARING FEES -PLAN. BOAR
306,000
350,000
350,000
350,000
,000
350,000
350,000
136
INTEREST ON ASSESSMENT LIENS
9,383
0
0
0
0
0
143
MISCELLANEOUS REVENUE
409,547
444,383
444,383
444,383
444,383
444,383
161
UTILITIES
42,263
42,263
42,263
42,263
42,263
42,263
170
PRO SHOP
40,000
0
0
0
0
0
211
WITNESS FEE
8,973
8,973
8,973
8,973
8,973
8,973
261
OTHER LAND SALES
5,805,000
5,805,000
0
0
0
0
327
OTHER SURPLUS SALE
1,000
1,000
1,000
2,001,000
2,001,000
2.001,000
360
CRIMINAL JUSTICE INSTITUTE
5,000
10,000.
10,000
10,000
10,000
10,001
9
379
INTEREST INCOME -OTHER
238,477
400,000
400,000
400,000
400.000
400,000
508
STOP LOSS RECOVERY
240,142
150,000
150,000
150;000
150,000
150,000
514
INTEREST ON SW DILENQUENT A/C
10,894
0
0
0
0
0
587
WORKERS RECOVERY
3,000
3,000
3,000
3,000
3,000
3,000
702
INVESTMENT ADMINISTRATION COST
30,900
• 30,900
31,827
32,781
33,765
33,765
841
ROUSE MIAMI INC CONTRIBUTION
1,500,000
1,600,000
1,545,000
1,691,350
1.639.090
•1,639,090
TOTAL MISCELLANEOUS REVENUE
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
6-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
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
71,69
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
CONTRJENVIR. 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
13,670,082
13,729,539
12,265,539
12,265,539
12,265,539
12,265,539
09 INTERNAL SERVICE FUNDS
193
CONTRIBUTION FROM GN.FD.
10,080,707
13,158,562
0
3,104.916
4,400,000
3,700.000
309
CONTRIBUTION FROM UTIL. SERV.T
12,253,853
14,132,788
15.185,418
23,620,004
24,843,314
26,008,442
356
CONTRIBUTION FROM TRUST AND AG
1,808.024
1,808,024
0
0
00
436
CONTR FROM SPECIAL REVENUE FUN
6,789,764
6,789,764
.6,793,764
8,210,654
8,203,170
8,117,026 .
446
CONTRIB FROM DEBT SERVICE
294,000
294,000
0
0
0
0
596
CONTRIBUTION FOR LAW DEPT SER
100,000
100,000
100,000
100,000
100,000
100,000
640
CONTR FROM GUAR ENTITL D.S
4.808,622
4,808,622
4,807,223
4,807,223
4,807,223
4,807,223
TOTAL INTERNAL SERVICE FUNDS
36,134,970 41,091.760 26,886,405 39.842,797 42,353,707 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
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 10 SPECIAL REVENUE FUND
01 TAXES
051
TELEPHONE FRANCHISE
1,476,960
1,476,960
1,491,729
1,506.646
1,521,713
1,521,70
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
49,880
50,926
51,988
473
LOCAL OPTION GAS TAX
6,662,000
6,862,000
6,866,000
6,869,000
6,871,000
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
03 INTERGOVERNMENTAL REVENUE
203
FLA. DEPT. HEALTH & REHABILTAT
349
OTHER PUBLIC AND PRIVATE CONTR
429
FI DEPT OF LAW ENFORCEMEENT
621
E911 SYSTEM FEE - RECURRING FE
622
E911 SYSTEM NON -RECURRING FEE
TOTAL INTERGOVERNMENTAL REVENUE
04 CHARGES FOR SERVICES
017 OTHER SVCE CHGES AND FEES-SP F
042 RENTAL-
043 CLASS -FEES
42.051,745 43,930,680 45,011,244 46.161,603 47,388,074 48,681,240
268,315
268.315
?74,513
280,724
283,496
283,496
15,000
15,000
/ 15,000
15,000
15,000
15.000
103,000
103,000
106,090
109,272
112,551
112,551
974,085
974,085
988,592
1,003,535.
1,018,927.
1.034,780�
240,000
240,000
240,000
240,000
240,000
240,000
1,600,400
1,600,400
1,624,195
1,648,531
1,669,974
1,685,827
30,000
34,001
30,000
30,000
30,000
32,446
75,000
75,000
75,000
75,000
75,000
75,000
40,000
40,000.
40,000
40,000
40,000
40.000
Wednesday, October 29, 1997 10:60:46 AM Page 10 of 15
City of Miami
6-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 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
423
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
2.193,850
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
12,461,802
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
10,0010
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-CONV CTR BASE RENT
427,417
427.417
440,239
453,446
467,049
467,049
TOTAL
MISCELLANEOUS REVENUE
1,469.986
1,469,986
1.482,808
1,496,015
1,509,618
1,509.618
09 INTERNAL SERVICE FUNDS
Wednesday, October 29, 1997 10:50:47 AM Page 11 of 15
City of Miami
6-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
5.008,7220
SPECIAL REVENUE FUND
TOTAL 63,289,433
64,137,138
65.356,022
66,802.190
68,186,177
69,532,745
0
Wednesday, October 29, 1997 10:50:48 AM Page 12 of 15
s s as a� a a ® � ® a as ■a ■a a ajai a� as
� m -� � m m = M M !.11111111111 m m m m m m m
City of Miami
6-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
17,693,971
17,693,971
18,096,732
16,212.935
16,073,698
15,548,198
002 TAXES PERSONAL CURRENT
2,440,548
2.440,548
2,496,101
2,236,267
2,217,062
2.145,402
051 TELEPHONE FRANCHISE
705,168
705,168
704,440
707,547
709.182
709.343
283 TAXES REC REAL DEL
203,379
203,379
208,008
186,355
184,755
184,75•0
TOTAL TAXES
21,043,066
21,043,066
21,505,281
19,343,104
19,184,697
18.587,698
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
5.421,687
6,421,687
5,421,687
5,421,687
5,420,896
6,421,643
5,419.976
5.419,582
5,420,896
5.421,643
5,419,976
5,419,582
12,10.5,072
12,105,072
12,117.640
4,823,966
4,809,133
4,850,999
988,544
966,544
797,744
995,093
982,228
977,647
1,451,481
1,451,481-
1,437,341
0
0
(�
9,353,660
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
16,462,877
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
6-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
O6 MISCELLANEOUS REVENUE
143 MISCELLANEOUS REVENUE 592,994 I 450,000 450,000 ' 450,000 450.000 450,000
TOTAL MISCELLANEOUS REVENUE . 592,994 450,000 450,000 450,000 450,000 450,000
09 INTERNAL SERVICE FUNDS
193 CONTRIBUTION FROM GN.FD. 319,414 186,000 185,000 185,000 185,000 185,000
TOTAL INTERNAL SERVICE FUNDS 319,414 185,000 186,000 185.000 185,000 185,OOO9
TRUST & AGENCY FUNDS TOTAL 2,429,139 1,892,303 1,892.303 1,982,303 2,072,303 2.162,303
n
Wednesday, October 29, 1997 10:60:50 AM Page 14 of 15
City of Miami
6-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
r1
Wednesday, October 29, 1907 10:50:50 AM Page 15 of 15
APPENDIX F
5-Year Estimates:
Revenues
by
Fund
and
Minor
Object
® ® ® i m ® ® ® 11111111111 M i•
City of Miami
6-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8197
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
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
3.660,80
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
6-Year Expenditure Estimates
by Fund and Minor Object
as of 10l8l97
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
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
626,000
625,000
625,000
625,000
625,000
-
064
- - - -- - -- -----
IAFF - SALARY INCENTIVE OVERTI
--------. ... - ----._.-._-
673,206
573,206
-----
673,208
---
573,206
- -- - - - --
573.206
573,20t�
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
268.560
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
a® a a a s® a a a a a a a®®® a a
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
218,651
218,551
219,384
217,704
217,704
073
FIRE - EMT RECERTIFICATIONS
60,000
60,000
60,000
60,000
60,000
60,0�
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
087
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
- --- -- -- -
5,306.8®
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
6-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
144
PLUS ITEM/ST CE FP - 1.5%
26,882
23,983
24,67
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
-- - - - e .__ ....._...._-.-.....
PLUS ITEM/ST COMAN - 1 /0
---- --- - ------ -
9,360
--
9,437
9,809
10,168
10,255
10,270
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
12,612
12,601
163
PLUS ITEM/SWAT - 5%
66,043
69,957
73,649
71,035
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. OR PAY
20,000
20,000
20,000
20,000
20,000
20,00
166
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
6,304
5,304
6,304
5,304
Wednesday, October 29, 1997 10:49:14 AM Page 4 of 26
r r� r it r r► ® r r® it r r r r r r r r
City of Miami
6-Year Expenditure Estimates
by Fund and Minor Object
as of 1018/97
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
F
L_J
11
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 1018/97
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
300 'OPERATING EXPENSES -FIXED
Ing LOT CLEARING
olkir,
AND DEMOLITION
Z.uou
Z,Ufju
2.122
2,186
2,252
2.3`10
211
ACTUARIAL REQUIREMENTS -SYSTEM
14.065,851
14,155,472
14,487,827
14,922,462
15,370,136
115,831,240
212
ACTUARIAL REQUIREMENTS -PLAN
12.988,256
12,988,256
13,377,904
13,779,241
14,192,618
14,618,30
213
CITY PENSION CONTRIBUTION I.C.
100,00.
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
10,2211
495
PARKING EXPENSE
113,412
121,662
126,302
129,062
132,934
136,923
531
DADE COUNTY SCALE FEES
7.324,385
7.846,356
8,081,740
8,324,192
8,573,918
8,831.13
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 LIGHT1
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
M® M M M M M M M M® M M a M M M M M
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
620
RENT BUILDINGS
24,006
24,006
24,727
25,470
26.234
27,021
630
RENT LAND
- -- ------ ----
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
9.061,369
710
FOOD
110,925
110,925
114,252
117,679
121,210
124,8410
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
I v
INTERNAL C;rNNML OE:T-,V CHGES MOTOR OR 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
124,286 .
127,713
131.20
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 1018197
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
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
1,832,711
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
319,4
340
OTHER CONTRACTUAL SERVICES - 0.
2,883,429
2,883,429
2,969,931
9,059,031
3,150;805
3,245,328
475
ENTERTAINMENT
1,259
1,259
1,297
1,336
1.377
1.419
51.0
COMMUNICATIONS SERV. TELEPH. O
1,159,455
1,159,455
1,194,024
1,229,655
1,268,271
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
74,799
534
DELIVERY SERVICES
1,030
1,030
1,061
1,093
1,126
060
Wednesday,
October 29, 1997 10:49:18 AM
Page 8 of 26
J
r■r r rr ■r r r r r® M r rr �r r r r iir r ■r
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 1018/97
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
2,608.36
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
3,638,874
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
772,600
772,500
795,675
819,545
844,131
869,450
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/BINDING - OUTSIDE
120,016
120,016
123,615
127,323
131,142
135,076
690
PROMOTIONAL ACTIVITIES
25,029
22,454
23,128
23,62
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
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
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
63,664
65,564
67.531
69.557
704
CHEMICALS
77,898
77,898
80,235
82,642
85,121
87,67.0
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
341.400
716
PAPER STOCK - PRINTING
114,150
114,150
117,574'
121,102
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
128065
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
6-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
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
20,86
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
516
530
546
562
579
793
07ALID 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
6-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
18,000
840 EQUIPMENT - NEW
745,953
735,739
708,840
683,931
674.482 .
668,514
650 EQUIPMENT - REPLACEMENT
801,499
801,499
801,499
801,499
801,499
801,4J*
870 BOOKS AND PUBLICATIONS,OVER $5
13,810
13,810
13,810
13,810
13,810
— 13,810
880 CAPITAL LEASES
1,0601,159
1,060,686
1,154,854
1,159,394
1,183,361
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
6-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 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
111,6®
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
-21,360,87.1
-21,937,658
-22,527,30
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
-54,492,820
-44,938,258
-68,412,612
-70,114,620
-72,140,839
-73,976,378
GENERAL FUND TOTAL 284,908,875 295,797,446 - 283,933,302 294,050,363 297,127,777 299.102,367
Wednesday, October 29, 1997 10:49:23 AM Page 13 of 26
City of Miami
6-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
21506,535
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
55.33�
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
18,79.5
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
4.2,584
42,264
42,264
050
SALARIES - OVERTIME 1 REGULAR .
25,480
25,480
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
16,5
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
is iii® i� iiii- � s ii�i iiii� ii� � � � � si• iii� i� i• ® iiiiii
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8/97
Organization
FY 1998
Revised
FY 1998
Year End
FY 1999
Estimated
FY 2000
Estimated
FY 2001
Estimated
FY 2002
Budget
Projection
Budget
Budget
Budget
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
4.30
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
1,096.176
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
928
y - 944
-
952
142
PLUS ITEM/HAZ MAT 1.6%
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
73,82
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
6-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
800 OPERATING EXPENSES -FIXED
205
LOT CLEARING AND DEMOLITION
20,600
20,600
21,216
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
571&
-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
445,771&
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
22,397
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
fib � � � i� i® i® i• r' i ® � � ® i� � � ® i•
City of Miami
6-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
400 OPERATING EXPENSES -VARIABLE
250
PROFESSIONAL SERVICES - LEGAL
8,590
8,590
8,848
9,113
9,386
9,666
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
510
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. 0
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
70,9,
670
REPAIR/MAINTENANCE - OUTSIDE
93,355
93,355
96,155
99,040
102,012
105,072
680
PRINTING/BINDING - OUTSIDE
2,060
2,060
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
6-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
704
CHEMICALS
8,504
8,504
8,759
9,022
7015-
HOUSEKEEPING SANITATION SUPP
4,118
4,118
4,242
4,369
706
BUILDING MATERIALS AND SUPPLIE
618
618
637
656
712
HORTICULTURAL SUPPLIES
1,442
1,442
1,485
1,530
713
LUBRICANTS AND MOTOR OIL
103
103
106
109
714
DRUGS AND MEDICINE
117,420.
117,420
120,943
124,571
717
PLAYGROUND SUPPLIES
. ........ . .....
7,416
.6,695
6,896
7,103
718
PARTS AND MAINTENANCE SUPPLIES
3.902
3,902
4,019.
4,140
719
SAFETY SUPPLIES
2,472
2,472
2,546
2,622
720
EXPENDABLE TOOLS SHOP SUPPLIES
1,640
1,648
1,697
1,748
721
TIRES TUBES
3,090
3,090
3,183
3,278
722
MISCELLANEOUS SUPPLIES
73,143
199,559
200,378
201,452
727
PROMOTIONAL MATERIALS
3,090
3,090
3,183
3,278
760
BOOKS PUBLICATIONS MEMBERSHIPS
9,779
9,161 .1
0,436
9.720
782
707 BLANKET P 0 ELECTRICAL SUP
5,150
.5,150
5,304
5,463
783
708 BLANKET P 0 PLUMBING SUPPL
6,150
5,150
5,304
5,463
795
INTERDEPMENTAL CHGES -POLICE 1.
2,578
2,678
2,655
2,734
9,293
9,572
4,500
4,635
676
696
1,576
1,629
112
115
128,308
132,157
7,316
7,535
4,264
4,392
2,701
2,762
1,800
1,854'
3.376
3,477
204,828
207,00
3,376
3,477 -
10,012
10,313
5.627
5.796
5,627
5,796
2,816
2,901
Wednesday, October 29, 1997 10:49:28 AM Page 18 of 26
City of Miami
6-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
TOTAL OPERATING EXPENSES -VARIABLE
2,962,047 3,061.413 3,148,054 3,237,526 3,331,941 3,427,990
600 CAPITAL OUTLAY -VARIABLE
840 EQUIPMENT - NEW
343,850
341,750
341,750
341,750
341,750
341,710
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
15,679,843
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
3,347.2A*
996 BUDGET RESERVE
62,711
18,000
18,000
18,000
18.000
18,000
TOTAL GRANTS IN AID
51,488.977
53,323,201
54,374.856
55,486,847
56.688,767
57,895,789
SPECIAL. REVENUE FUND TOTAL
63,289,432
63,984,306
65,356,022
66,802,190
68,186,177
69.532,744
Wednesday, October 29, 1997 10:49:29 AM Page 19 of 26
City of Miami
6-Year Expenditure Estimates
by Fund and Minor Object
as of 101.8/97
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
8,44,
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
15,898,989
16,554.859
16,838,400
602 INTEREST EXPENSE
25,1*36,663
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
47,7e1,122
48,021,594
31,315,093
37,125,225
37,260,648
400 OPERATING EXPENSES -VARIABLE.
340 OTHER CONTRACTUAL SERVICES - 0
.92,391
92,391
95,163
96,016
100,959
103,988
510 COMMUNICATIONS SERV. TELEPH. 0
515
630
515
546
562
570
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
� � � � � � ® i• ii• � ® iiiiii � � i� � � � �
City of Miami
6-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8197
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
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
5,102,622 5,102,622
5,104,950
5,104,950
5,104,950
5,102,622
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 10:49:30 AM Page 21 of 26
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8197
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
231,076
231,075
231,075
231,070
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 WORKER'S COMPENSATION
4,341 4,341
4,341
4,341
4,341
4,341
TOTAL FRINGE BENEFITS -FIXED
111,118 111,118
111,118
111,118
111,118
111,118
Wednesday, October 29, 1997 10:49:31 AM Page 22 of 26
® M M ® M M M M M M M M M M ® M M ice■
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8197
FYI998 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
8,114
287
ADVERTISING
7,210 7,210
7,428
7,649
7,878
8,114
310
COURT COSTS AND FEES
772 772
795
819
844
806
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 5,160
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
76,926
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
1�
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 1018/97
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
400 OPERATING EXPENSES -VARIABLE
220 PROFESSIONAL SERVICES - APPRAI
15,450 15,450
15,914
16,391
16,883
17,3139
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
3,218
3,376
3,477
510 COMMUNICATIONS SERV. TELEPH. O
3,606 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
16,450 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
283,188 180,780
177,421
173,958
170,392
166,7�
500 CAPITAL OUTLAY -VARIABLE
840 EQUIPMENT - NEW
10,000 0
0
0
0
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
� � � ® ® ® � ® � � � � fii iii i i• i• i•
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 1018l97
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
1.527.3103
TOTAL TRANSFERS TO OTHER FUNDS
1,666,731 1,257,303
1,257,303
1,347,303
1,437,303
1,527,303
TRUST 6 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 10:49:33 AM Page 25 of 26
City of Miami
6-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8197
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
Ll
Wednesday, October 29, 1997 10:49:33 AM Page 26 of 26
M ® ® M -
•
City of Miami
Five Year Plan
a\2
Five Year Plan
� Submitted in accordance with the
Intergovernmental Agreement between the
State, City and the Oversight Board.
• Composed of the Operational Plan and the.
Financial Plan of the City for the fiscal
• years 1998 through 2002.
Five Year Plan
0 o Document has nine chapters and six
appendixes in its approximately 275 pages.
• The heart of the document is in chapters 2, 3
and 4 which contain the basic -operational
and financial plans.
• Chapter 2 states the core initiatives that the
City need to undertake to continue the
recovery process. These initiatives are:
Core Initiatives
Implement Strategic Planning
• Establish Benchmarking and Performance
Measurers.
• Undertake a Needs Assessment for
Technology.
0 a Fill Executive Positions.
• Establish a Capital Assets Management
Policy
Core Initiatives
0 9 Link Operating and Capital Budgets
• Adopt Best Practices
• Create Mid -Management Core
• Convene Charter Review Committee
� Establish Policy & Goals for Labor
Negotiations
• Reconstitute Audit Committee
• Establish Fire/Rescue Fee
16�
Management & Productivity ,
Issues
� The third chapter of the Five Year Plan
considers the Management and Productivity
issues raised in the Blue Ribbon Task Force.
Report.
• This chapter takes each of the issues, gives
• the benefits of implementation, establishes a
timeframe for implementation and
highlights any direct cost of
implementation.
Financial Plan
Chapter Four
• • The Financial Plan included in the Five
Year Plan anticipates a balanced budget
with increasing reserves incorporated into
each year.
• It also anticipates the adoption of the Fire
• Assessment Fee which will produce $24
million in this fiscal year.
Financial Plan
� The underlying revenue growth assumptions
in the Plan include a 3%growth in property
values and a 2.6% growth in public service
taxes.
• The underlying expenditure growth
f assumptions include two 4% increases in
salaries over the five years and a 3%growth
in operating costs.
• 416
414
412
410
408
406
404
402
400
398
Five Year Plan
Revenues & Expenditures
1998 1999 2000 2001 2002
0 Revenues
Expenses
•
�j
30
25
20
15
10
5
0
1998
Five Year Plan
Cumulative Reserves
1999 2000 2001
2002
■ Risk Mgt.
Contingency
III Cash Flow
G1t
:c
MANAGEMENT DIRECTION
INITIAL DIRECTION
The Mayor and the Administration have established those initiatives
that they believe will set the stage for the direction of the City into the
future. These initiatives are basic to the ongoing improvement of the City
as a functional operating entity for the community. These issues, which are
addressed in the 613 recommendations in the various reports, are the core
initiatives to establish the direction for the City into the future.
CORE INITIATIVES
The core initiatives to provide the initial policy direction for the City
number twelve. The list is not all inclusive but is intended to speed the
process of. recovery in the City. Below are these initiatives and an
explanation of the initiative.
Implement Strategic Planning - The Mayor, City Commission and
the Administration need to establish long range goals for the City. Due to
the nature of the fiscal emergency now in place, a "crisis management"
style is the current norm for the City. In order to flourish and prosper, a
more long term direction need to be exacted. For the initial plan, a
consultant will need to be employed to facilitate this effort.
Establish Benchmarking and Performance Measures - When the
Strategic Plan is in place, the effort to benchmark the current level of
service must be performed to provide a basis on which to measure. The
performance measurers will provide a objective standard onto which
movement towards compliance with the Strategic Plan can be measured.
Miami - Management Direction 4
97-
Undertake a Needs Assessment for Technology - The City has
moved rapidly into technology without a policy direction on the ultimate
goal. As technology can both be extremely expensive but also produce
immense savings to the City, policy direction must be established in this
area. Prior to the establishment of a policy, the needs of the various
Departments for computers, radio and communications (both data and
voice) must be documented. The Information Technology staff along with
a consultant need to undertake this effort.
Fill Executive Positions - The City has a number of executive
management positions that must be filled in order to provide the leadership
for the Administration. Some of these positions, such as two Assistant
City Managers, Internal Auditor and Finance Director, require specific
skills and a recruitment effort needs to begin.
Establish a Capital Assets Management Policy - The City needs to
better manage its capital assets. These include its lands, buildings,
equipment and fleet. The City has not provided the necessary funds for
proper maintenance and replacement of these assets in the past.
Additionally, the policy must address the criteria to retain or sell various
assets. The responsibility for the maintenance of the various assets needs
to also be addressed in the policy.
Link the Operating and Capital Budgets - The City has not linked
the operating effects of capital initiatives into the operating budget. This
allows for the construction or purchase of Capital Assets with the
provision of the necessary funds in the operating budget to operate and
maintain the asset. Integrating these two budgets will insure that the
coordination exists to properly operate and maintain the City's assets.
Adopt Best Practices - The City needs to survey local governments
and the private sector nationwide to find those practices which best serve
the needs of the citizens and customers. Once these practices are found,
the City needs to establish a policy to implement these practices. This
ongoing effort will continue indefinitely.
Miami - Management Direction 5
97- gig
MIN
ra f MINyI/��/2f�`�f�
Create Mid -Management Core - The City must hire additional and
train existing mid -management for proper management and succession
planning within the Administration. Over half of the existing senior
management personnel in the City will be eligible for retirement within
two years. This makes it imperative to create a cadre of managers to
continue the progress of the City.
Convene Charter Review Committee - The Charter of the City of
Miami is filled with outdated and obsolete sections which need to be
amended or removed. To properly review this basic operating document of
the City, a Committee containing members of the Law Department, the
Mayor, the City Commission, the Administration and the public needs to
be convened and a proposal placed on the ballot.
Establish Policy and Goals for Labor Negotiations - The four labor
contracts of the various city employee bargaining units are subject to
negotiation in the next twelve months. The Administration needs policy
direction from the Mayor and City Commission on the policy and goals
for these negotiations. Since personnel costs comprise the largest cost of
the City, the implications of these negotiations cannot be minimized.
Reconstitute the Audit Committee - The Audit Committee needs to
take a much more active role in the audit process of the City, both internal
and external. This Committee should serve as the contact point for the
external accountants and the City. They should meet with the auditors on a
regular basis to oversee the process and to provide and receive input on the
financial review of the City.
Establish the Fire/Rescue Fee - The fire/rescue fee is the centerpiece
of the balanced budget process of the City. This fee is vitally necessary to
provide the ongoing revenue stream to operate the City into the next
century. The ordinances and hearings need to begin as soon as possible so
that this revenue can be received this fiscal year.
Miami - Management Direction 6
97- 912
PGM
ID: FN/SC/PO/CF/RPT09
C I T Y O
F M I A M I
PAGE 09— 2
RUN
DATE: 12/13/1997
DETAILED
REVENUE AND
EXPENDITURES
BY PROJECT
RPT RFC:REPORT 09
�e
02 FISCAL MONTH
AS
OF 11/30/1997
wi
FUND
01
GENERAL FUND
PROJECT
001000
NOT SUBFUND RELATED
ENTITLEMENT
PERIOD 09/30/76 TO 12/31/99
PORTION
EXPIRED
91.0 %
STATUS
ACTIVE
INDEX
MIN
% OF
REVISED
* * REVENUES
/ EXPENDITURES j OUTSTANDING
REMAINING
CODE
OBJ
DESCRIPTION BUDGET TOTAL
BUDGET
CURR MONTH
CURR Y—T—D
TOTAL T—D ENCUMBRANCE
BALANCE
R E,V
E N
U E S
001
041
CITY CLERK
MISCELLANEOUS FEES —LEIS. SERV
569.3
2,550
350
350
14,519
11,969-
044
POOLS
114
114-
048
090
REIMB LOST PROPERTY
PHOTOCOPY SERVICES
930.6
1,667
537
537
181
48,853
181-
47,186-
108
MICROFILM CHARGES—BLDG
40.7
120
3
3
1,248
1,128-
143
MISCELLANEOUS REVENUE
387.8
346
20
20
15,181
14,835-
270
RAPID TRANSIT — COUNTY GRANT
4,120
13,850
4,120-
12,588-
329
CITY CLERK —QUALIFYING FEES
97.4
1,262
100
100-
339
US DEPT OF H U D
816
816-
357
CITY CLERK REIMB ORDINANCES
19
19-
420
CONTR FROM DEPTS—WORKER'S COMP
7,900
7,900
33,620
33,620-
722
LOBBYIST REGISTRATION
2,733
2,733—
990
OTHER NON —OPERATING
INDEX CODE 022001
276.0
5,945
8,810
8,810
135,358
129,413-
023001
LAW
152
152-
043
070
CLASS —FEES
RENTAL PROPERTIES
51,150
51,150-
090
PHOTOCOPY SERVICES
309
707
309-
707-
139
REIMB. PR. YR. EXPEND.
146,177
146,177-
143
153
MISCELLANEOUS REVENUE
MISCELLANEOUS SERVICE CHARGES
114
114
10,114
10,114-
211
596
WITNESS FEE
CONTRIBUTION FOR LAW DEPT SER
33.5
100,000
29
33,559
29
66,441
990
OTHER NON —OPERATING
31,597—
31,597
INDEX CODE 023001
210.6
100,000
114
114
210,601
110,601-
024001
CIVIL SERVICE
1,2
1,266—
048
REIMB LOST PROPERTY
55
55
55—
090
PHOTOCOPY SERVICES
89
89
211
WITNESS FEE
80
80-
420
CONTR FROM DEPTS—WORKER'S COMP
11
11—
610
SOUTH FL -INFRASTRUCTURE FUND
INDEX CODE 024001
1,501
1,501—
OVERSIGHT BOARD
BOARD MEETING
MINUTES' SUMMARY
DECEMBER 16, 1997
1. Meeting called to order at 9:00 a.m. by Chairman Adolfo Henriquez. Minutes were approved.
2. Estimating Conference report was presented by Cynthia Curry.
3. Fiscal Sufficiency Advisory Board report was presented by Sheldon Schneider.
4. Contract Review Committee report was presented by Robert Beatty.
5. Bond Rating Agency Conference Call Report was presented by Cynthia Curry and Robert
Beatty.
New Requests:
• Recurring Revenue and Recurring Expenditure Report should be prepared for next
Oversight Board.meeting.
• CIP Report will be required for the next meeting.
6. Jorge Rodriguez -Chaumont spoke on behalf of the Mayor. He made a conciliatory speech.
7. Vice -Chairman Art Teele spoke as a liaison between the Financial Oversight Board and the
Mayor.
Request:
• A thirty (30) day extension was requested, and denied. However, as per the time frame
indicated in the interlocal agreement between the State, Financial Oversight Board and
the City, there is a 20 day period for the Oversight Board to consider the Five Year
Plan before accepting or rejecting the plan. This period ends on January 7, 1998.
8. Monthly Financial Report was presented by Dipak Parekh, Director of the Office of Budget.
9. Review and Analysis report was presented by Phil Brown of PFM.
10. City Manager, Frank Rollason, presented the draft of the Five Year Plan and requested for an
additional extension to continue updating the Five Year Plan, in particular, his Table of
Organization.
It. Oversight Board Response:
• Any changes to the Table of Organization have to be approved prior to
implementation.
• Any changes to the approved Five Year Plan will require City Commission and
Oversight Board approvals prior to implementation. Any attempt at implementation prior to
the necessary approvals will not be valid.
• All changes should be adequately reflected in the Five Year Plan.
12. Staff reports were presented.
13. Meeting was adjourned at noon.
97- 912
OVERSIGHT BOARD
BOARD MEETING
MINUTES' SUMMARY
DECEMBER 16, 1997
Action Items
1. The need to address the points raised by the letter to the Mayor dated November 24, 1997 by the
Executive Assistant of the Oversight Board, Chuck Wolfe.
2. The City needs to have a plan approved by the City Commission by January 7, 1997. The
Administration recommends that the City Commission approves said plan on a special meeting
to be called for December 301h
3. Pass the Fire Fee Ordinance and Trim Notice.
4. Organization plan must be approved by the City Commission and Oversight Board before
implementation.
5. The FY 97-98 Budget appropriation must be amended to include any changes in the Five Year
Plan, including organizational changes.
9'7- 912
•
OI I LOH I I )A
W
J_ � y �
LAW ON CHILES
GOVERNOR
November 24, 1997
'ffire of tide (Siuiiernur
rllr c:.�l�rml.
I'ALLAHASSEE. FLORIDA 3-11,19:imi
Honorable Xavier Suarez
Mayor
Miami City Hall
3500 Pan American Drive
Miami, Florida 33133
Dear Mayor Suarez:
I am writing to follow up on the Oversight Board meeting of November 18, 1997. The
Board appreciated your remarks and looks forward to the City's Revised Five Year Plan.
Unfortunately, you had to leave before the end of the meeting so the Board asked me to
communicate its' expectations in the Revised Five Year Plan. This letter will detail
comments made by the Board, outline the requirements listed in the Intragovermental
Cooperation Agreement (ICA), explain the process to date, and point out additional
areas of the ICA that will be occurring in coming weeks.
The Board has already reviewed the Revised Five Year Plan approved by the City
Commission on October 28, and submitted for approval on October 29. In preparing
your updated version, please show a clear path from the plan previously submitted to
the new document.
The new version should clearly include the recommendations of the Blue Ribbon Task
Force. Recommendations to be implemented should have clear timelines listed. These
recommendations should be listed as part of the operational recovery but should also be
clearly identified in the financial plan. The Board wants to be able to see how
implementation of recommendations will affect the City's' finances. Explanations should
be provided for Blue Ribbon Task Force recommendations that are not implemented.
Beyond the Blue Ribbon Task Force recommendations, the Revised Five Year Plan
must address: all recommendations in the Management Letter issued by KPMG Peat
Marwick as part of the FY96 audit-, staff recommendations throughout 1997, the
Steirheim Strategic Plan; and the Procurement Review team recommendations. Should
you have a need for any of these materials, please let us know and we will provide
additional copies and staff to review or explain.
9'7 - 9 1
•
n
Page Two
Letter - Mayor Suarez
November 24, 1997
The ICA clearly lists items to be included in the Revised Five Year Plan. Paragraphs 3
and 6 specifically address the components required. In planning the development of the
Revised Five Year Plan, please remember that the ICA requires that all financial
information must use data approved by the Estimating Conference. You will be
contacted by Cynthia Curry, Estimating Conference Chair, to schedule reviews of your
financial data. The financial information must be approved prior to submission to the
City Commission for a vote.
We have received the Amendment to the Intergovernmental Cooperation Agreement. I
have enclosed a copy signed by all three parties for you records. Under these terms
your Revised Five year Plan must be submitted to the Board by December 18, 1997.
The City is operating under a current budget and Five year Plan approved by the
Oversight Board earlier this year. Any changes to the budget or that plan must first be
approved by the Board. This specifically includes the City's organizational structure and
amendments to the fire assessments which the current approved budget is also
dependent upon. Before you implement any changes to departments or the budget,
please submit these to the Board for review and approval.
In addition to the Revised Five Year Plan requirements, the Contract Review Committee
will be reviewing certain actions the City appears to be taking. Any agreements reached
between the Police Chief and the City must be approved by this Committee. This
pertains to a retiring Chief and a new Chief. These documents should be submitted to
Robert Beatty. Please remember that Board approval must be complete before any
contract can become effective.
Please let me know if you have any questions regarding these items. I will be happy to
provide clarifications on requirements and explanations of history if you need them.
Sincerely,
(1.1" ";4-
Charles Wolfe
CAW:phk
Enclosure
cc: Oversight Board Members
Bobby Brochin
97- 91.2
•
FIRST AMENDMENT TO THE
INTERGOVERMNIENTAL COOPERXTION AGREE�LMENT
On November 18, 1997, the Governor of the State of Florida, the Financial Emergency
Oversight Board ("Oversight Board"), and the City of Miami ("City") hereby amend the
Intergovernmental Cooperation Agreement ("ICA") dated December 23, 1996, as follows:
The City shall submit a Revised Five Year Plan to the Oversight Board on or
before December 18, 1997. For purposes of this First Amendment, and for the purposes of this
Amendment only, "Revised Five Year Plan" shall be defined as the "Revised Five Year Plan"
that is defined in paragraph five of the ICA and -that the City was required to submit to the
Oversight Board within thirty days of the final adoption of the budget for fiscal year 1997-98.
2. The following shall be added to paragraph twenty-two of the ICA:
To the City: Mayor, City of Miami
Xavier Suarez
3500 Pan American Drive
Miami, Florida 33133
Telephone: (305) 250-5300
Facsimile: (305) 854-4001
3. The following shall be deleted from paragraph twenty-two of the ICA:
To the City: City Manager
Att: Edward Marquez
City Manager's Office
Miami Riverside Center
444 S.W. and Avenue
lvliami, Florida 33131
Telephone: (305) 416-1025
Facsimile: (305) 400-5042
97= 9
C7
•
IN WITNESS WHEREOF, the parties hereto execute this First Amendment to the
Intergovernmental Cooperation Agreement, and they affirm that they have the power to do so on
behalf of the City and the Oversight Board.
G_ v'
XAVIER SUAREZ
9'7- 912
�r
Commission Memorandum
December 18, 1997
To: Chairman and Members of
the City Commission
From: Frank Rollason
Interim City Manager
Subject: Amended Five Year Plan
Recommendation
The Administration recommends that the Chairman and Members of the City
Commission adopt this amended Five Year Plan.
Background
The City's Five Year Plan was previously submitted to and adopted by the City
Commission on October 28, 1997. This Plan was submitted in compliance with the
requirements of the Intergovernmental Cooperation Agreement which require that a new
Five Year Plan be submitted within thirty days of the adoption of the fiscal year budget.
As the budget was approved on September 29, 1997, this submission was within the
timeframe established in the Agreement.
The Financial Oversight Board ("FOB") agreed with a request by the Mayor that he be
granted a thirty day period to review and amend that Plan. The FOB drafted and
forwarded to the Mayor several suggestions for items to be included in the amended Plan.
This amended Plan is before you today. We believe that it incorporates all of the
suggested changes by the FOB and the changes requested by the Mayor.
A request was made of the FOB at their meeting of December 16, 1997, that additional
time be granted the City in order for the City Commission to adequately review and
discuss this Plan. This request was denied by the FOB.
Should the City Commission not approve this amended Plan today, the Plan submitted to
the FOB on October 29, 1997, will constitute the formal submission of the City to the
FOB. Under the timelines established in the Agreement, the FOB will have twenty days
97- 912
to accept or reject the Plan submitted. This twenty day period will end on January 7,
1998. The City may amend its submission to the FOB during this time period. We
suggest that if the amended Plan is not approved by the City Commission today, it could
be approved at the Special City Commission Meeting of December 30, 1997. This would
allow the FOB time to consider the amended submission by the City prior to the date on
which they are required to act.
Conclusion
The City Commission may act to approve this amended Five Year Plan on this December
18 date. If the City Commission does not approve the amended Plan on December 18,
they will be able to approve this Plan, as amended during the intervening time, on
December 30, 1997.
9"7- 912