HomeMy WebLinkAboutR-97-0935R-97-0935
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P / N A L
Draft - Subject to Change
CITY OF MIAMI
REVISED FIVE YEAR
F I NANCIAL PLAN
D E C E M B E R 3 0 , 1 9 9 7
97- 935
TABLE OF CONTENTS
CHAPTER 1
EXECUTIVE SUMMARY............................................................................... 1
CHAPTER II
MANAGEMENT DIRECTION.......................................................................... 4
CoreInitiatives..................................................................................................................4
OperationalPlan ................................................................................................................6
CHAPTER III
MANAGEMENT AND PRODUCTIVITY INITIATIVES ........................................... 10
Overview.........................................................................................................................10
StrategicManagement....................................................................................................11
FinancialManagement....................................................................................................18
Capital Assets Planning and Management......................................................................26
Human Resources and Employee Benefits.....................................................................37
Information Technology.................................................................................................40
Implementation Schedule - Management and Productivity Initiatives ...........................41
CHAPTER IV
FINANCIAL PLAN..................................................................................... 53
Five Year Plan Fiscal Years 1998 - 2002.......................................................................53
Assumptions Used For The Five Year Plan (FYI 998 - 2002).......................................54
Exhibit I. Revenues By Character And Expenditures By Major Object:
FiveYear Estimates.....................................................................................66
Exhibit II: Cash Flow Analysis For Fiscal Years 1998 And 1999..............................72
Exhibit X. Recurring Vs. Non -Recurring Analysis......................................................74
Exhibit IV.- Analysis of Changes in General Fund Equity.............................................77
CHAPTER V
CITYWORKFORCE................................................................................... 79
Overview.........................................................................................................................79
Description of the Workforce.........................................................................................80
OrganizationalChanges..................................................................................................84
WorkforceExpenditures.................................................................................................87
FringeBenefits................................................................................................................88
TimeOff.......................................................................:..................................................89
Overtime.........................................................................................................................90
Summary of Current City Compensation Package.........................................................91
MajorInitiatives..............................................................................................................94
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C IT Y OF M I AM 1
CHAPTER VI
ECONOMIC DEVELOPMENT........................................................................ 95
Overview.........................................................................................................................95
Attracting/Expanding Businesses...................................................................................95
Regulating Business Activities.......................................................................................96
LandAnd Building Use..................................................................................................96
Major Economic Engines and Highlights of the Greater Miami Economy....................96
Government Entities Involved in Economic Development............................................98
Other Entities Involved in Economic Development....................................................101
TheChallenges..............................................................................................................102
Conclusion....................................................................................................................102
MajorInitiatives............................................................................................................103
CHAPTER VII
CAPITALPLANNING............................................................................... 104
Overview.......................................................................................................................104
LegalFramework..........................................................................................................104
The Capital Improvements Plan and Capital Budget Process......................................105
Capital Improvements Plan...........................................................................................107
CapitalBudget..............................................................................................................108
Linking the CIP and Capital Budget ..............................................
Challenges for Capital Planning in the City's Current Fiscal Environment.................109
Guidelines for Capital Planning Process.......................................................................112
CHAPTER Vill
DEBT MANAGEMENT.............................................................................. 113
Overview of Powers and Provisions.............................................................................113
Description of Current Indebtedness.............................................................................115
Typesof Debt................................................................................................................117
Outstanding General Obligation Debt..........................................................................118
Future Debt Issuance and Credit Market Considerations.............................................120
MajorInitiatives............................................................................................................121
CHAPTER IX
CASH MANAGEMENT.............................................................................. 122
Overview.......................................................................................................................122
CashManagement Operations......................................................................................122
Investment Process........................................................................................................124
Investment Transaction Authority................................................................................125
Maturity and Liquidity Requirements...........................................................................125
Permitted/Prohibited Investments.................................................................................125
HistoricalPerspective...................................................................................................127
MajorInitiatives............................................................................................................128
MIAMI 0 TABLE OF CONTENTS 2
CITY OF MIAMI
APPENDICES
Recommendations - Index............................................................................A
Recommendations - Timelines and Costing .................................................$
Recommendations - Departmental 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
M IAM I' • TABLE OF CONTENTS 3
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CHAPTER
EXECUTIVE
SUMMARY
EXECUTIVE SUMMARY
The Intergovernmental Cooperation Agreement (ICA), dated December 23, 1996, by
and among the Governor of the State of Florida, the Financial Emergency Oversight Board
and the City of Miami requires that the City revise its Five Year Plan within 30 days of
adopting an annual budget. The genesis of this Revised Five Year Plan was the City's
enactment of the Fiscal Year 1998 Budget Ordinance.
The Revised Five Year Plan is comprised of two basic parts:
1) a Financial Plan which deals with budgets, revenue and expense projections, and
cash flows as defined in the ICA (Chapter III herein); and
2) an Operational Recovery Plan which addresses managerial, operational and other
deficiencies which have been identified through a number of reviews of City
operations by both private and public sector entities (Chapters II, III, V through IX
herein).
On the following pages, one will find all the data which the ICA requires as of October
28, 1997. This plan was adopted by the City Commission on October 28, 1997. This
amendment to the Mayor's Five Year Plan was adopted by the City Commission on
December 30, 1997.
Since the identification of the City's financial crisis, many tough decisions and
sacrifices have been made to keep the City fiscally sound. As a result of these actions, the
City has completed FY 1997 with a surplus of approximately $13 Million which has been
programmed into FY 1998 operations.
In order to ensure the long term health of the City, a five year forecasting convention
has been adopted whereby budgets and cash flow statements are prepared anticipating
future City operations. This regimen enables the City to plan for the ever -changing fiscal
environment.
The City's fiscal crisis was severe, and while funding was a major concern, it was only
part of the problem. Organizational, managerial, and other inefficiencies plagued and
continue to affect the City and its operations. These inefficiencies did not occur overnight,
but were a direct result of how the City conducted the business of municipal government
over a number of years.
This condition is not in any way, shape, or form a comment on the quality of the City's
workforce effort overall. On the contrary, the citizens of Miami have a dedicated work
force working on their behalf. In fact, the City's workforce has and continues to contribute
greatly to the City's financial recovery.
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C H A P T E R 1
To address the operational concerns facing the City, the Mayor convened and, the City
Commission unanimously endorsed the creation of, a Blue Ribbon Task Force on City
Administration to get the advice of the business community on how to make the City's
government more responsive to our community's need. The Blue Ribbon Task Force is co-
chaired by Mr. Ira Clark, President & CEO of Jackson Memorial Hospital, Mr. Edward T.
Foote, President of the University of Miami, Dr. Modesto A. Maidique, President of
Florida International University, and Mr. Stephen L. Owens, President, Swire Properties,
Inc.
The Blue Ribbon Task Force has been reviewing the City operations since April 1997
and their final report was released on November 17, 1997, their findings and
recommendations have been incorporated herein. In addition to the staff and research
support provided by the universities involved, the Task Force had over 45 volunteer experts
studying the City's business practices in five broad areas: Strategic Management, Financial
Management, Capital Assets Planning and Management, Human Resources and Employee
Benefits, and Technology. Chapter III 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 recommendations, several themes become evident. The
City needs to determine where it wants to go as a City, direct its resources in that direction
in a coordinated and -synergistic fashion, and then to measure its progress over time towards
the destination(s) as defined. The City also needs to upkeep and manage its assets better.
As examples, employees need more training and property holdings need more maintenance.
In other words, the City needs to define what business it is in and then pay attention to its
business.
If there is a silver lining in the cloud of the City's operational and fiscal problems, it is
this: the current Mayor, City Commission, City Administration, and the entire employee
workforce is committed to making the City of Miami government a viable, efficient, and
productive entity. With the continued assistance of the private sector and the State's
Oversight Board, we will eventually achieve this end.
Finally, the City reaffirms the Guiding Principles initially adopted in the April 15, 1997
Plan 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
C H A P T E R 1
GUIDING PRINCIPLES
• The City shall make every attempt to
incorporate regional solutions for
regional problems such as
unemployment and welfare reform.
• Tax exempt properties should be
encouraged to pay their share of City
services.
• Business enterprises of the City
should be reflected as Enterprise
Fund operations only if it is the
intent of the City to have all costs
(operational, debt service, and
depreciation) funded through user
charges.
• Adequate cash reserves, for
contingencies, working capital and
other business needs, should be
established and maintained.
• The City should not undertake any
service if the private sector can do it
better.
• If the City undertakes a service, it
should be prepared to do it
efficiently.
• City employees should have the
resources to do their jobs
professionally and efficiently.
• The best qualified job applicant
should always be selected.
• Integrity and honesty is expected
from all employees. However, the
organizational structure of the City
government should provide for
appropriate internal controls over its
business operations.
• The City belongs to its citizenry — in
all business matters, their benefit is
the primary concern.
• The residents of the City deserve the
highest possible level of service
consistent with financial stability.
• The City shall not undertake any
services or procure any asset or
service without the funding being
predetermined (i.e. no unfunded
mandates).
• Standards of operating performance
shall be no less than what is expected
of the private sector.
• The assets of the City must be
maintained in a business -like
fashion.
• The return on assets, such as land
holdings, should be maximized for
the benefit of the public.
M I AM I • EXECUTIVE SUMMARY 3
CHAPTER 11
MANAGEMENT
DIRECTION
0
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 643 recommendations in the various reports listed
in Appendix A, are the core initiatives to establish the direction for the City into the future.
Core Initiatives
The fifteen core initiatives to be initiated'this fiscal year, even though some are multi-
year in their implementation, will provide the initial policy direction for the City. This list
is not prioritized but is intended to set the stage for a speedy the process of recovery in the
City. The City Manager and the Mayor will report to the City Commission quarterly on the
implementation of these initiatives. Below are these initiatives grouped into categories and
an explanation of the initiatives.
Operational Initiatives
Implement Strategic Planning - The Mayor, City Commission and the Administration
need to establish long term 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 needs to be enacted. For the initial plan, a
consultant will need to be employed to facilitate this effort.
Establish Benchmarking and Performance Measurers - 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 an objective standard
onto which movement toward compliance with the Strategic Plan can be measured.
Undertake a Needs Assessment for Technology - The City has moved rapidly into
technology without a policy direction on the ultimate goal. As technology can 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 departments
for computers, radio and communications (both data and voice) must be documented. The
city staff along with a consultant will need to undertake this effort.
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Establish a Capital Assets Management Policy - The City needs to better manage its
capital assets. These include 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 without 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.
Convene a Charter and Boundaries Review Committee - The Charter of the City of
Miami is filled with outdated and obsolete sections which need to be amended or removed.
Additionally, the boundaries of the City need to be reviewed to assess the feasibility and
the financial impact of annexation. This Committee must gauge the public, business and
governmental support of impediments of such an increase in the size of the City. To
properly review this basic operating document of the City, a committee containing
members of the Law Department, the Mayor, City Commission, the Administration and the
public needs to be convened and a proposal placed on the ballot.
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.
Personnel Initiatives
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. Along with this recruitment
effort, a study of salaries and executive benefits needs to occur so that the best persons may
be attracted and retained.
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 senior management level 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.
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11
Establish Training and Education Policy - A key factor in the development and
retention of the employees of the City is the opportunity for them to grow and develop in
their positions. To accomplish this goal, training and education must become a priority for
the City workforce. This will provide the method for employees to become eligible for
advancement to higher positions and will also provide the City with a higher skilled and
more valuable workforce.
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 of these negotiations. Since personnel costs comprise the largest category
of costs for the City, the implications of these negotiations cannot be minimized.
Revenue and Expenditure Initiatives
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.
Establish the Fire/Rescue Fee - The fire/rescue fee is the centerpiece of the balanced
budget required for 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.
Return Properties to the Property Tax Roll - The City owns, through tax liens and
other takings, over 400 lots within the City. Additionally, the City effectively owns,
through code enforcement and other liens, another 400 lots. These properties, along with
the "list of lands" owned by Miami -Dade County comprise both tracts and scattered sites
throughout the City. The City needs to eliminate the liens on these properties and promote
development of single and multi -family homes to both provide housing and to place these
properties back on the tax roll.
Pursue Federal, State and Local Grants for the City - The City needs to
aggressively pursue any and all grants that are available for both capital and operations in
order to lessen the impact on the operating budget.
Operational Plan
The Mayor and the Administration recognize that overcoming the City's fiscal
challenges will require a comprehensive change in the way it does business. To that end,
the Mayor and Administration have taken steps to change the City's management practices
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M IAM 1 0 MANAGEMENT D I RECTION
permanently. A key step in this direction is the development of operational plans for all of
the City Departments. As a part of the Five -Year Financial Plan, the employees and
management of each of the City's major agencies will participate in a process to define the
mission, goals, objectives, and performance measures for their organization. The result of
the process is a new direction and a process for continuous improvement.
Initiating a Operational Planning Process
To change the strategic direction of the City and the Departments within it, requires
broad based participation at every level of the organization. Every successful change in
strategic direction is rooted in participation and consensus building -- those who will be
carrying out a change in strategic direction must be given an opportunity to share in the
determination of that new direction. The Mayor and the Administration understand this
important premise, and have obtained the assistance of a qualified consultant to design and
facilitate an operational review process allowing for broad participation. One subset of this
operational planning process is a study on the pay scales and executive benefits package of
the City. In order to attract and retain the leadership necessary to implement the structural
changes required for the City, such a study will be necessary.
The objective of the project is to develop an operational plan and to establish a process
for updating and modifying the plan in future years. For each of the Agencies and for the
City as a whole, we will create a Project Team consisting of City staff (agency and/or non -
agency) and consultants. The work of the Project Team is organized into the following
major components:
• Mission statement: For each major agency in City government, and for the whole
City government, the Project Team will review the current mission statement, solicit input
from staff, management, and stakeholders and propose a new mission statement when
appropriate.
• Goals and objectives: Working with staff, management, and stakeholders, the
Project Team will develop a set of measurable goals and objectives for the City and its
major agencies. These goals and objectives will reflect the need to address deficiencies
identified through recent studies of the City of Miami government and the need to adopt
"best practices" in City agencies. The Goals and Objectives will fall directly from the new
definition of the Agency's mission.
• Benchmarking and Performance measures: The Project Team will review how
performance is measured now for the City as a whole and for each of the major agencies. It
will review performance measurers from comparable jurisdictions and private sector firms.
The project team will work with staff, management, and stakeholders to develop a
manageable set of balanced performance measures. These measures will be balanced
according to four perspectives -- customer, financial, continuous improvement, and policy
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MIAMI 0 MANAGEMENT DIRECTION
C H A P T E R
II
impact. The performance measures will relate specifically to the goals and objectives
identified previously.
• Identification of Cost Saving Opportunities : In the development of the
benchmarks for various City Departments cost saving measurers may be encountered. Such
cost saving opportunities will be communicated to the Administration and a process for
there implementation will be developed.
• High -priority projects: In the course of developing the operational plan, the
Project Team will review the management and productivity initiatives listed in Appendix
A, as well as any other proposed improvements to the agencies to identify the immediate
high -priority projects. These are projects that, along with implementing the Operational
Plan, should be commenced immediately.
• Action plan: The Action Plan has two parts. The first includes tasks for
implementing the new operational plan. This entails communicating the agency's new
mission, goals, and objectives to the staff, stakeholders, and the public. Furthermore, it
describes the specific tasks required to gather, report, and assess the appropriate
performance measures. The second includes tasks related to the implementation of high -
priority recommendations for change to the agency. The action plans will indicate what
decisions are needed by whom (Commission, Mayor, Department Director), what resources
are needed to carry out the initiative, and start and end dates for the major tasks.
The role of the Project Team will be to provide technical assistance, direction, staff
support and facilitation to the agencies and the City in the development and preparation of
operational plans. The team will serve as (1) the coordinator, educator, and facilitator of
developing and preparing operational plans, (2) developer of an on -going strategic
management methodology that will continue with the City after completion of this project
and (3) advisor as we assist in the development and monitoring of the Cityis initial steps in
managing and implementing the plan.
Project Results
The result of this project will be an Operational Plan for the City as a whole and for
each of the major agencies. The Plan will include a mission statement, goals and
objectives, performance measures, and an action plan. These documents will be added to
the five-year financial plan document. In addition, the City will have a process in place for
continuing to update its operational plans.
Schedule
The Mayor and Administration anticipates that it will require and entire year before the
last agency's Operational Plan is in place. We have given about two months to complete
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MIAMI • MANAGEMENT DIRECTION
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C H A P T E R
II
each of the operational plans except for the Citywide plan which we believe will take at
least four months.
The table below indicates the major agencies for which an operational plan is proposed
and the projected completion dates:
Project Schedule - Operational Plans
Agency
Start Date
Completion
Date
Public Works
December `97
January `98
Citywide Strategic
Plan
December `98
May `98
Police
May `98
August `98
Fire
August `98
November `98
Parks and Recreation
July `98
September `98
Solid Waste
August `98
October `98
Economic
Development
Cluster'
August `98
October `98
Administrative
Cluster'
September `98
November `98
City Management
Cluster;
October `98
December `98
Internal Services
Cluster'
November `98
January `99
The Project Team will review the initial operational plan for Public Works with the
Oversight Board to determine whether or not any modifications should be made to the
format, level of detail, or content of the operational plans.
' Includes Building and Zoning, Community Redevelopment Agency, Downtown Development Authority,
Planning and Development, Community Development, Miami Sports and Exhibition Authority and NET.
2 Finance, Purchasing, Human Resources, Equal Opportunity, Labor Relations, Office of Professional
Compliance, Civil Service Board, and Information Technology.
3 Budget and Management Analysis, Internal Audit, Community Information, Federal and State Liaison,
Hearing Boards, City Clerk and City Attorney.
° General Services Administration and Public Facilities.
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MIAMI 0 MANAGEMENT DIRECTION
CHAPTER III
MANAGEMENT &
PRODUCTIVITY
1 N I T I A T I V E S
MANAGEMENT AND
�eCo �°pro
PRODUCTIVITY I N ITIATIVES
OVERVIEW
With the development and implementation of the 1997 Financial Recovery Plan, the
City of Miami took the first steps to reversing its descent into financial chaos. The City
Commission adopted the necessary policy and budgetary actions to avert a financial crisis.
These actions were under the review of the State's Financial Oversight Board. However,
there is recognition by all parties that the City will need to better regulate its management
systems to sustain a long-term financial recovery and regain fiscal health.
Through the combined participation of the City's executive management, the City staff
and more than fifty volunteers from the business and academic communities, the Blue
Ribbon Task Force on City Administration drafted preliminary findings and
recommendations which targeted five major functional areas for improvement in the City:
• Strategic Management;
• Financial Management;
• Capital Assets Planning and Management;
• Human Resources and Employee Benefits; and
• Technology
The final recommendations from the Blue Ribbon Task Force are not available at this
time. However, the City Manager has established a series of management and productivity
initiatives based on their preliminary findings and recommendations. The following
sections provide additional detail on the Task Force's initiatives and the expected benefits
from implementing those initiatives. References are also made to the Stierheim report
dated November 15, 1996 and the technical assistance reports summarized in the City's
Five Year Plan dated April 15, 1997.
Each of the five sections in this chapter is subdivided into major areas of concern within
the functional area. First, we will describe the circumstances that provoked concern, then
present initiatives to address the -concern. After each initiative, we follow with the benefit
that implementing the initiative will bring.
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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, the Director of Public Works, Director of Communications,
Director of Building and Zoning, Director of Internal Audit and Director of Community
Development.
This reorganization is an initial step. Over the long-term the City will need to continue
reorganizing its functions and responsibilities to achieve greater efficiencies and efficacy.
Failure to achieve greater efficiency and effectiveness in delivering services to constituents
will place the City at competitive disadvantage in attracting private business activity and
stimulating economic development. In short, Miami will be doomed to continue as one of
the poorest cities in the nation.
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.
2. Initiative: Establish a task force to continue the reorganization of City services
and implement its recommendations.
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Benefit: Improves the accountability and productivity of the City organization.
Timeline: This will be completed by October, 1998.
Cost: The cost of this initiative is included in the Plan's budget.
3. Initiative: Revise 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 that will be continuous throughout the Plan.
Cost: This review 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.
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Cost: The cost for this training is included in the $300,000 for training
included in the Plan.
111. Need to Fill Middle Management Positions
Both the Stierheim report and the Blue Ribbon Task Force noted that there is a
significant dearth of middle managers in the City's work force. The consequences are that
senior managers must spend their time and resources managing daily routine operations.
Inadequate effort is devoted to long-term planning and achieving long-range goals and
objectives.
Initiative: Identify and fill critical middle management positions.
Benefit: Improves the effectiveness and efficiency of the organization.
Timeline: These positions will be filled by July, 1998.
Cost: The cost of these positions is included in the $1 million included in the
Plan for management improvements.
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 continue throughout the „w,
duration of the Plan.
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Cost: There is no direct cost to this initiative, only staff time.
2. 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 in April, 1988 and take approximately 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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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 the 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 derive as much from demonstrating to the community and the
State the ability to execute such an initiative as well as immediately improving the
efficiency of the organization and instilling in City staff a vision of where the City is
headed.
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 a facilitator and be
complete by the end of the fiscal year.
Cost: This cost is included in the training fund in the 1998 budget.
2. Initiative: Produce progress reports on the initial strategic plan for the City of ..,
Miami and complete the plan. w
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Benefit: Improve efficiency and instill - confidence in employees and
constituents.
Timeline: The timeline for this initiative is the same as the one above.
Cost: No additional cost.
Vlll. Linkage of Strategic Planning to
Operating and Capital Budgets
Strategic planning has no value if it is not coordinated with the development of
operational and capital budgets. For the goals and objectives of strategic planning to be
achieved, the City's resources must be allocated according to priorities that support those
goals and objectives. If, for example, the strategic plan for the City entails attracting high
tech businesses to create higher paying jobs and increase the commercial tax base, then the
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 strategic planning process will be incorporated into the Fiscal
1999 Budget.
Cost: There is 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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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
throughout 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: These personnel costs are included in the 1998 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: This will 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 ongoing effort 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
should be highlighted:
• The City will not issue debt obligations or use debt proceeds to finance current
operations.
• The City will utilize debt obligations only for capital improvement projects which
cannot be funded from current revenue sources or in such cases wherein it is more
equitable to the users of the projects to finance the project over its useful life.
• The City will issue debt obligations for refinancing existing debt or other
obligations only if financially advantageous or necessary to release existing
covenants under bond documents.
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• 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.
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 towards 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 process is done continuously.
V111. Cash Management
1. Initiative: Develop a system for tracking funds in pooled cash.
Benefit: Improve financial integrity.
Timeline: This will be complete by July, 1998.
Cost: This initiative has no net cost, only savings.
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2. Initiative: Modify the existing monthly budget -to -actual report (BE 600) in order
to improve its usefulness as a managerial report.
Benefit: Improve financial integrity.
Timeline: This will be done in 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.
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Benefit: Improves organizational efficiency. -
Timeline: This will be completed by July, 1998.
Cost: Personnel costs are included in the Management Recovery dollars.
2. Initiative: Prepare and approve an annual audit plan.
Benefit: Improves organizational accountability.
Timeline: This will be completed by July, 1998.
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 will be completed by July, 1998.
Cost: No direct cost.
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.
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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: The Charter package will be complete by April, 1998.
Cost: No direct cost.
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: This initiative is scheduled for completion 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.
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Timeline: This training is to begin in January, 1998 and to be completed by
October, 1998.
Cost: These training dollars are included in the 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 now technology is requisite to obtain the benefits of
automation.
Initiative: Utilizing vendor -provided training, the entire Purchasing Department
will be trained to utilize the APS module.
Benefit: Improves organizational efficiency.
Timeline: This initiative is scheduled to be completed 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: The development of this system has begun and 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 a the capital projects funds to be sure that there are
no entangling concerns with those moneys.
• The CIP should be integrated with the annual Operating Budget and the City's
Strategic Planning process.
• The City should issue debt for major capital projects, matching the terms of
the financing with the asset's life.
• The City should consider developing an adequate internal source of funding
out of its annual operating budget to replace needed infrastructure and capital
equipment.
• Inflation factors for all projects in the CIP should be considered each year and
appropriate adjustments made to all project estimates.
• The CIP section of the Office of Budget and Management Analysis should
provide the greatest possible accountability in its management of the CIP.
• CIP practices and procedures need to be documented in a manual to allow for
the replacement of key personnel without loss of knowledge for the City.
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• 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.
Timeline: These recommendations will be implemented completely within the Fiscal
1998 and 1999 Years.
Cost: There is no direct cost associated with these recommendations.
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 a six month project to begin in January, 1998.
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: This will be completed in 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.
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Benefit: Better prioritization of limited City resources.
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 of 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 in 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
Rinds 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);
• other possible options for sale, lease, or rental (including comparison of current
arrangement with market prices);
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• the site's current revenue stream production for the City vs. possible future revenue
streams (including tax benefits if in private hands)
• what the relative value would be of packaging groups of properties together to
provide higher returns for the City in a sale, lease, or rental;
• how much of possible future benefit the City should require purchasers to return to
the City in the terms of a sale, lease, or rental (city-wide guidelines should be
developed here);
• what investment the City could make in its properties to increase the revenue that
they return to the City (this should require a rigorous cost/benefit analysis to
determine whether investing is a good choice);
• the significance of a property to a neighborhood or community group, especially if
the property is being used by a group to provide shelter or other services not readily
available nearby.
The South Florida Regional Planning Council report from September 1997 was specific
in its suggestions for how the City's property planning system should work. Many of
the steps it suggested are incorporated in the initiatives below, amended to incorporate
the City's long-term Strategic Plan:
A. Property Plan
The City did not have a comprehensive list of all the property that it owns. In addition,
the City does not know what condition much of its property is currently in or whether it is
always being compensated for the use of its property.
Once the condition of the City's property is established, maintenance of property that
the City considers valuable should be consolidated under a single department. The Blue
Ribbon Task Force suggested that this department be the General Service Administration.
Some of the City's major assets are undercharging for the services that they provide
and, the extent possible and desirable, should raise prices to mitigate their draw on the
City's General Fund, perhaps raising fees to the level at which these agencies are
responsible for their own operations, preventive maintenance, and major improvement
proj ects.
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 of 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.
B. Leases
Like other municipalities, City leases are subject to environmental laws. Currently, the
coordination of environmental policy is at best mixed. The City will continue to seek
methods to strengthen ongoing compliance and mitigate any potential environmental
liabilities.
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 initiative 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.
32
MIAMI • MANAGEMENT AND
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C H A P T E R
III
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 in 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. A",'
33
MIAMI • MANAGEMENT AND
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C HAPTER
III
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 that 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.
34
MIAMI • MANAGEMENT AND
PRODUCTIVITY INITIATIVES
20
C H A P T E R
111
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 complete by the end of this fiscal year.
Cost: No direct cost.
2. Initiative: Recommend changes to the Charter Review Committee for the City to
accept a bid if over a specific percentage of established market value
without referendum, even if the minimum of three bids were not
received.
35
MIAMI • MANAGEMENT AND
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C H A P T E R
I11
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 complete 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 accomplished by the end of this fiscal year.
Cost: No direct cost.
36
MIAMI • MANAGEMENT AND
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S3:
C H A P T E R
111
HUMAN RESOURCES AND EMPLOYEE BENEFITS
In concert with the initiative to begin the strategic planning process, the City must
undertake a significant review of job classifications, employee compensation, management
policies, as well as training and leadership development. A review of this order is a
daunting task. The task is further complicated because it could require changes in existing
labor agreements, work rules, policies and procedures.
1. Training
With respect to the City's human resources there are several deficiencies that lend
themselves to be addressed in the immediate term. Perhaps the most apparent deficiency is
the lack of a comprehensive training program. There have been few budgetary resources
allocated to training Citywide. As a result the level of employee skills has diminished.
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.
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.
37
MIAMI • MANAGEMENT AND
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C H A P T E R
111
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.
Benefit: Improves efficiency.
Timeline: this will be accomplished 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 this 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 initiative will be implemented by July, 1998.
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.
38
MIAMI • MANAGEMENT AND
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r
110
C H A P T E R
111
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, 1998 and be completed by July,
1998.
Cost: No direct cost.
2. Initiative: Improve the management and tracking of time off.
Benefit: Improves efficiency.
Timeline: Thus will be 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 net 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 that will continue throughout the Plan.
Cost: No direct cost.
39
Awl_
MIAMI • MANAGEMENT AND
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C H A P T E R
I11
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: The funding is included in the consulting dollars included in the
operating budget.
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.
MIAMI • MANAGEMENT AND
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City of Miami
Implementation Schedule - Management and Productivity Initiatives
APPROXIMATE
INITIATIVE Q4 97 Q1 98 Q2 98 Q3 98 FYI 999 FY20001 FY2001 FY2002 I FY2003
OVERVIEW
Reorganization - Expedite the completion of the City
X
X
X
Manager's 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
X
X
X
X
X
X
X
tracking process to reflect the organizational changes
resulting from the task force recommendations.
Incorporate Benchmarking and Performing
X
X
X
Measurement 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
X
X
and fill critical middle management positions.
r )
MIAMI • MANAGEMENT AND
PR JCTIVITY I NITIATIVES
APPROXIMATE
INITIATIVE
Q4 97
Q1 98
Q2 98 Q3 98 FY1999 FY2000 FY2001 FY2002
FY2003
Accelerate Completion of the First Strategic Plan -
X
X
X
X
Hire a facilitator to coordinate action on the City's
initial strategic plan.
Accelerate Completion of the First Strategic Plan -
X
X
X
X
Regular reports toward the completion of the initial
strategic plan for the City of Miami.
Linkage of Strategic Planning to Operating and
X
X
X
X
X
X
Capital Budgets - 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
X
X
X
X
X
X
a public/private partnership to develop a strategic plan
for economic development in Greater Miami.
Consolidate Economic Development Efforts -
X
Coordinate within a single agency or a single
reporting structure the City's economic development
efforts.
Consolidate Economic Development Efforts - Focus
X
X
X
X
X
X
X
X
X
economic development efforts on retaining and
expanding local businesses.
Consolidate Economic Development Efforts - Develop
X
X
X
X
X
X
X
X
X
programs which emphasize workforce development.
FINANCIAL MANAGEMENT .
MIAMI • MANAGEMENT AND
P R U CT IV I T Y IN I TIATI V E S
APPROXIMATEi
IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98
Q3 98 FY1999 FY2000
FY2001
FY2002
FY2003
Economic Development - The City Manager will direct
X
X
the 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
X
X
X
X
X
X
X
X
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.
Reforming Practices and Procedures - The City
X
X
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.
Strategic Planning Structure and Process - Strategic
X
X
X
X
X
X
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 that will oversee
and guide the strategic planning process. The
strategic planning section will be fully staffed and the
advisory board will be appointed.
I
MIAMI • MANAGEMENT AND
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42
APPROXIMATE• IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98 Q3 98 FY1999 FY2000
FY2001 FY2002
7Y2003
Debt Management - Submit a comprehensive Debt
X
Management Policy for adoption by the City
Commission.
Debt Management - The City should increase its Non-
X
X
X
X
X
X
X
X
X
Ad Valorem Revenue over Maximum Annual
Aggregate Debt Service ratio of liquidity to 10 times.
Debt Management- The City should look for escrow
X
X
X
X
X
X
X
X
X
restructuring 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
X
X
Department.
Internal Audit - Prepare and approve an annual audit
X
X
plan.
Internal Audit - Reconstitute existing Audit Committee
X
X
and strengthen its mission. Appoint qualified audit
and other professionals to the Committee.
MIAMI • MANAGEMENT AND
P R U CT IV I T Y IN IT I ATI V E S
Z
C H A P T E R 1 1 1
APPROXIMATE
TIME TO
IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98
03 98 FY1999
FY2000 FY2001 FY2002
FY2003
Level of Expertise Within the Finance Department -
X
X
All specifically identified accounting positions will be
announced and filled.
Employee Training - The City, in conjunction with the
X
X
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.
Reconciliation of Fixed Asset Records - The City will
X
X
implement a new Fixed Assets SCI module. General
inventory procedures will also be developed and
implemented.
Improve Controls Over Purchase of Goods and
X
Services - 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. The amendment will
be prepared and submitted to the City Commission
Centralize Grants Management Procedures - The City
X
will centralize grants administration as a part of the
continuing reorganization of the City.
Accounting and Operations Procedures Manual -
X
X
X
X
X
X
X
X
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.
MIAMI • MANAGEMENT AND
PRODUCTIVITY INITIATIVES
44
APPROXIMATE
INITIATIVE
Q4 97
Q1 98
Q2 98 Q3 98 FY1999 FY2000 FY2001 FY2002
FY2003
Redesign Capital Improvements Planning- The City
X
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.
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.
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.
MIAMI • MANAGEMENT AND
PR( 'UCTIVITY INITIATIVES
cS)
co
C H A P T E R 11 1
APPROXIMATE
TIM• IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98
Q3 98 FY1999 FY2000 FY2001 FY2002
FY2003
Increase Bid Limits - Prepare and submit to the Charter
X
X
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 should be
prepared and submitted in the comprehensive Charter
amendment package referenced earlier.
Streamline Procedures for Smaller Purchases -
X
X
Develop a purchasing procedures manual which
incorporates the Procurement Assessment Team
recommendations for streamlining small dollar
purchases.
Training for Purchasing Professionals - In conjunction
X
X
X
with the 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 -
X
X
X
provided training, the entire Purchasing Department
will be trained to utilize the APS module.
Monitoring Inter -fund Transfers - The City must have
X
X
X
a well -regulated system in place to monitor fund
balances, allocations, and track expenditure levels that
might trigger inter -fund transfers.
CAPITAL. ASSETS PLANNING AND
MANGEMENT:
MIAMI • MANAGEMENT AND
PRODUCTIVITY I N ITIATIVES
APPROXIMATE•
INITIATIVE
Q4 97
Q1 98
Q2 98 Q3 98 FYI 999 FY2000
FY2001 FY2002
FY2003
Leases - If the City does not have sufficient expertise on
X
hand to research and comply with environmental
regulations, it should out - source this function to
qualified professionals.
Leases - Develop procedure to regularly review leases
X
X
X
X
X
X
X
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 out - source this function.
Leases - Such experienced staff or outside professionals
X
X
X
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.
Leases - The City should share information on its leases
X
X
X
X
X
X
X
X
X
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, the collection of back payments,
and/or begin eviction proceedings.
Key Property Disposition - The City should market its
X
X
X
X
X
X
X
X
X
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.
Foreclosure - Consider the value of property to the City
X
X
X
X
X
X
X
X
before initiating costly foreclosure procedures.
M I A M 1 • MANAGEMENT AND
P R U CT IV ITY IN ITI ATI V E S
ML
C H A P T E R 1 I 1
APPROXIMATE
TIME TO
IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98
Q3 98 FYI999
FY2000
FY2001
FY2002
FY2003
Property - Amend the comprehensive list of all the
X
X
X
property that the 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
X
X
X
X
X
X
X
should be updated on a semi - annual or quarterly
basis.
Property - Develop comprehensive plan for the long -
X
X
X
X
X
X
X
term use of all 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
X
all important properties under a single department for
greater coordination and operational efficiencies.
Property - Raise the user fees of major City assets to
X
X
X
X
X
X
X
make them self - sufficient and financially responsible
for their own capital improvement projects.
Leases - To the maximum extent possible, attempt to
X
X
X
X
X
X
X
X
X
shift the cost of compliance with environmental laws
to those who lease property from the City.
Leases - Coordinate compliance with environmental laws
X
through single individual or department.
t�
M IAM I • MANAGEMENT AND
PRODUCTIVITY INITIATIVES 48
APPROXIMATEi IMPLEMENTATION
INITIATIVE
Q4 97
Q1 98
Q2 98 Q3 98 FYI 999 FY2000
FY2001 FY2002
FY2003
Succession Planning - The Human Resources
X
Department will survey municipal "best practices,"
evaluate the executive classifications eligible for
retirement, and draft a leadership succession plan for
consideration by the City Manager.
Civil Service Rules - The Human Resources Department
X
will draft a work plan and timetable to guide the
review and evaluation of the Civil Service Rules.
Workers' Compensation - Improve the management and
X
X
tracking of time off.
Workers' Compensation - Draft and submit a request
X
X
for proposal ("RIFF) for a third party claims
administrator to administer the workers'
compensation claims function.
Employee Benefits - Retain a benefits consultant to assist
X
in structuring, evaluating, and procuring a coordinated
benefits package for employees.
Employee Benefits - Continue to investigate cost
X
X
X
X
X
X
X
X
X
effective and quality healthcare alternatives.
MIAMI • MANAGEMENT AND
P R( U CT IV I T Y IN IT I ATI VES
C H A P T E R 11 1
INITIATIVE
Q4 97
Q1 98
APPROXIMATE TIME TO IMPLEMENTATION
Q2 98 Q3 98 FY1999 FY2000 FY2001 FY2002
FY2003
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.
APPROXIMATE
INITIATIVE
Q4 97
Q1 98
Q2 98 Q3 98 FYI 999 FY2000
FY2001 FY2002
FY2003
Charter Revisions - Establish an indexed minimum
X
standard for leases and other contracts that must go
before the City Commission for approval.
HUMAN RESOURCES AND EMPLOYEE
BENEFITS
Training - The Human Resources Department will
X
X
undertake an 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
X
market rate survey or retain consultants within current
budget constraints to conduct a market rate survey of
job classifications and prepare a transition plan to
adjust the rate disparity.
MIAMI • MANAGEMENT AND
PRODUCTIVITY IN I T I A T I V E S
50
APPROXIMATEi IMPLEMENTATION
INITIATIVE J Q4 97 1 Q1 98 102 98103 98 FY1999 FY2000 FY2001 FY2002 FY2003
INFORMATION TECHNOLOGY
Information Technology - Engage an experienced
X
consultant to assist City staff and volunteer experts in
drafting a strategic plan for information technology.
Information Technology - Create a comprehensive
X
X
X
disaster recovery plan for immediate preservation of
all vital City functions and restoration of remaining
City functions within a short period of time.
RR
GJv, M IAMI • MANAGEMENT AND
PRODUCTIVITY INITIATIVES 52
CHAPTER IV
FINANCIAL
PLAN
rwo�� of
FINANCIAL PLAN
o�,oa�o4�
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. Additionally, this plan includes
$13,745,000 to fund the capital requirements of implementation of the recommendations of
the various studies on the City.
The City intends on selling lands totaling $45.5 million in Fiscal Year 1998 to cover
part of this non -recurring expense. Next, the plan addresses the importance of building up
annual reserves by funding $1.1 million for risk management, $1 million for contingencies
and adding $2.26 million, from FY99 onwards, towards the Working Capital Reserve. The
City also addresses the lack of middle management and training by funding $1.2 million to
be used towards management recovery.
All of the above items that compose the Five Years' plan are crucial for the continued
fiscal recovery of the City. The City projects a modest annual surplus in each of the
years of its Five Year Plan (see Exhibit I "Revenues by Character and Expenditures
by Major Object - 5 Year Estimates" and Exhibit II "Fiscal Year 98 and 99 Cash
Flow and Recurring vs. Nonrecurring Analysis").
MIAM1 9 FINANCIAL PLAN 53
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
151h 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:
1233
11.82
I
11.35
a
0'.
I
�•
t
a
r
��'�''�il�
�
54
MIAMI • FINANCIAL PLAN
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
N
C
O
35
31
27
8.00%
6.00%
U
4.00%
2.00%
0.00%
21
20
N
0
19
18
17
Public Service Taxes
90 91 92 93 94 95 . 96 97 98 99 00 01 02
Fiscal Year
Percentage Change per Year
6.01 %
- - -------------------------------- - -- -- - --
- 4.08% 3.99%
., ..-
"" 2.67 Io 2.65 /0 2.63 /6 2.61 /o 2.60 %
-------------------- t ------ -------------- o - - 6 u - o -o--
M
2.20% 9%
1.50% 'f
0.37%
91 92 93 94 95 96 97 98 99 00 01 02
Fiscal Year
Florida Power & Light Company Franchise Fees
19.81 20.00
20.18 20.37
----- — — ---— — 44 — t963 . 19
19.26 19.25 ..�. -•
18.99 18.92
17.89
--..-- 1-7.75--
91 92 93 94 95 96 97 98 99 00 01 02
Fiscal Year
55
MIAMI • FINANCIAL PLAN
`• � � '" r.l� � D ib
.�u
IN
C H APT E R IV
Business Licenses:
$5.7 million for FY97 has been projected, which is slightly lower than the amount
collected in FYI 997.
Intergovernmental Revenues:
The amounts utilized were compiled earlier with the assistance of Mr. Alan Johansen
and Mr. Edward Montanero, of the State of Florida, with a 2% increase projected for the
Fiscal Year of 2002. We increased FY2002 Florida Revenue Sharing by 2.11% and 2.2%
for the Half Cent Sales tax.
Further, the US Department of Justice revenues were projected based upon a
$3,000,000 Law Enforcement Block Grant and reimbursements for Police Grant funded
positions. The total number of sworn positions will stand at 1,167. 102 of these positions
have been funded for 3 years beginning April 1, 1998. Upon expiration of the grant on
FY2002, the Police Department will have a sworn staff complement of 1065 full time
positions.
Charges for Services:
The projection methodology utilized was based on the following.
a) 3 yr. Averages.
b) 3 yr. Averages with growth rate assumptions.
c) Actual Revenues received for FY97.
Solid Waste Fees
Solid Waste fees as contemplated by the earlier Five Year Plan have been reduced from
$166 annually to $0 annually. This reduces recurring revenues by $2,005,532 annually
from original projections. Should the Solid Waste Fee be retained at any level, the funds
generated could be dedicated to capital equipment for solid waste and/or the
implementation of the training initiative for the City.
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").
56
0.1..,
MIAKI 9 FINANCIAL PLAN
C H A P T E R IV
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
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. Although this fee has
been eliminated in this Plan, the City Commission must adopt legislation in order to
eliminate this fee. Should the City Commission not adopt such legislation, there will be $1
million in recurring revenue not currently included in the Plan.
Other revenues such as Dockage, Ticket Surcharge, Haulers Permits, Certificate of Use
renewals, and Safety Permit fees, were extended into FY2002 without any growth.
Note:
• Revenues and Operating expenses for the Miami Spring Golf Course for FY98-
2002 have been eliminated due to the sale of the Golf Course facility.
Fines and Forfeits:
Based upon the collection of FYI 997 and the auto impoundment program this category
is projected to bring approximately $3.4 million annually.
57
MIAMI • FINANCIAL PLAN
t)u b3�'
MII
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".
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 $45,515,000 have been projected as one time revenue for
FYI 998 as indicated below:
Bobby Maduro Baseball Stadium $900,000
Watson Building 200,000
Property Maintenance Building 1,000,000
48 NW 51' Street 2,435,000
Former Fire Station No. 14 367,000
Manuel Artime Center 600,000
Former Parks Administration Building 365,000
Total $5,867,000
Less - Contingency 368,000
Originally Adopted Budget $5,499,000
Other Land Sales:
Municipal Justice Site 5,710,000
FEC Tract 34,306,000
Total Property Sales: $45,515,000
58
MIAMI • FINANCIAL PLAN
C H A P T E R IV
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.
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 $247,13 8. We are taking
into account actual revenues derived from this group. This projection assumes no
contributory increases to the employees nor the retirees for all 5 years.
Internal Service Funds:
Contribution from Utility Service taxes after covering non -general obligation debt
service is transferred into the General Fund. It should be noted that the Convention Center
annual debt in the amount of $6 million has not been taken into account due to the
impending privatization option for FY2000, 2001 and 2002. This is consistent with the
Five Year Plan as presented on April 15, 1997 to the Oversight Board.
Contribution from the General Fund (Surplus Carryover):
Included in FY98, there is a surplus carryover from FY1997 in the amount of
$13,158,562. Also included are surpluses for FY2000 in the amount of $3,104,916,
FY2001 in the amount of $4.4 million and FY2002 in the amount of $3.7 million.
EXPENDITURES:
• Salary and fringes were projected using the City's Salary Projection System. This
system uses the current position listing as the base and projects out taking into
consideration step increases based upon anniversary and longevity dates.
59
MIAMI • FINANCIAL PLAN
,I +-) -_ r
• 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.
Salaries and Salary Related:
The City's attrition amount has been consistent with the existing Five Year Plan and the
budgeted figure of $2,923,155 for FY1998 to FY2002. This figure was originally based on
the methodology of 50% of vacant positions' salaries. Vacant Salaries stood at $5,846,310,
excluding any Fringe Benefits, which stand are approximately 35% of salaries. As of
October 10, 1997, the City had 310 vacant positions for a total Vacant Salary amount of
$7,703,274, excluding Fringe Benefits.
Management Recovery:
With the exception of the Police and Fire Departments, one of the most obvious
deficiencies of the City is a lack of middle management. There is a huge void between the
department director, or assistant director, and the next level of management. In many
instances, employees of lower management have been forced to step up and assume
responsibilities for which they were neither qualified nor trained. It is imperative that this
void be addressed and rectified.
Accordingly, $1.2 million was appropriated in FY98 for management recovery. At
least 20 middle managers need to be hired as quickly as possible and a training program
implemented starting in Fiscal Year 1998. These new positions will start to alleviate the
problem related to lack of middle management and provide the needed resources to address
the operational deficiencies of the City. Included in this figure are resources for training
which has been largely absent over the last few years.
Finally, the City has provided funds for the Management and Productivity Initiatives
listed in Chapter II of the Five Year Plan.
Solid Waste Service to Multi -Family Units:
The City currently provides solid waste disposal services to all single family and
duplexes. In addition, the City also provides service to 3 and 4 unit apartment buildings
60
MIAMI • FINANCIAL PLAN
C H A P T E R I V
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.
Increased Solid Waste Enforcement:
In order to better enforce the City's solid waste code, the Administration is
recommending the expenditure of an additional $250,000 annually, to be appropriated
towards hiring qualified solid waste inspectors. This added enforcement will keep the City
cleaner and will work to combat illegal dumping. The hiring process is currently being
instituted.
Blue Ribbon Task Force:
The City's arrangement with the Blue Ribbon Task Force charged with investigating
best business practices and their respective applications for the City, requires that $300,000
be provided annually for additional consulting services or for the cost of implementation of
the Task Force's recommendations. The actual disbursements of such funds will be
specifically approved by the City Commission. The Administration is recommending that
during FY98 these funds be utilized to retain a facilitator for the Strategic Planning process
and a Consultant to evaluate the City's computerization needs.
Solid Waste Efficiencies:
Solid Waste efficiencies have been projected at $1.1 million dollars annually.
The City is studying various options to enhance the efficiency of the solid waste
operation including privatization. Costs from private waste haulers and a plan from the
solid waste employees' union are being examined. Beginning with Fiscal Year 1999, the
City will accrue a minimum savings of $1.1 million annually.
Risk Management Efficiencies:
The City of Miami is anticipating the improved control of claims based on several
proactive measures. This includes a City-wide safety program Committee that is
committed to the safety of our employees and citizens alike. As a result of their efforts,
workers compensation claims have dropped 24.6% from 366 to 276 during the first six
months of this Fiscal Year as compared to the same period last year.
The number of other Risk Management claims filed and amounts paid as a result of
those claims have dropped significantly between FY1996 and FY1997:
61
MIAMI • FINANCIAL PLAN
�J
N
C H A P T E R IV
Auto
General Liability
Police Tort
Police Off. Liability
Claims (18.0%)
(40.7%)
(39.0%)
(6.9%)
Payment (20.4%)
(48.8%)
(26.0%)
(87.6%)
The Administration anticipates further reductions during Fiscal Year 1998. In
addition, the City is inspecting and repairing sidewalks in an effort to reduce slip / falls
claims throughout the City. The Administration is also addressing safety issues in City
parks. Additionally, the City has realized a significant reduction in General Liability
claims from 243 in 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.
62
M
MIAMI • FINANCIAL PLAN
CHAP T E R I V
Contingency Reserve:
This reserve of $1 million per year, in addition to the Working Capital, shall provide
additional flexibility for the City to address other potential issues that may arise during the
fiscal year.
Other:
$5.0 million in unappropriated funds has been reserved for Fiscal year 1998. This
reserve is built up of a $3 million additional carryover from Fiscal Year 1997 and $2
million from expenditure savings/revenue enhancements. The Administration is studying
various options for it's usage.
Risk Management Reserve:
It has long been recognized that a reserve should be established to address the
outstanding liabilities of the City in both the General Liability and Workers' Compensation
areas. In an effort to attain a reserve which will grow over a period of time and will not
adversely impact the City's financial posture, the City plans to budget $1.1 million per year
for the next 5 years, over and above any actual payments, to establish a $5.5 million
cushion for a catastrophic event. The City will continue the $1.1 million per year
allocation thereafter until it reaches a reserve of at least $15 million, which will represent
approximately 20% of the estimated total liability (approximately $75 million). Also, over
time the City expects the liability to decrease due to the staff s efforts to work the liability
from the front-end (i.e. by challenging cases and settling claims in an efficient manner).
Reserve for Strategic Investments:
The Reserve for Strategic Investments is the balance of the funds not needed for other
capital purposes from the sales of the FEC Tract and the Municipal Justice Site. This
Reserve is estimated to be $25,955,000 and will be used for one time expenditures and
recurring revenue generation or recurring expenditure reduction. Below is a list of uses of
these funds along with their anticipated return to the City. The Administration will
recommend those projects which have the greatest potential for the City.
Defease the Off -Street Parking System Debt - The City's Off -Street Parking System
currently has $14.8 million of outstanding debt. This debt is governed by a closed bond
indenture and accordingly, no funds are returned to the City on an annual basis. The City
could use approximately $15 million of the available funds to defease the debt and open the
indenture. At that point, the City could use all or a part of the over $8 million in reserves
that have built up in the System and would have access to the annual net income of the
System of approximately $3.5 million. Excluding the reserves, the annual revenue stream
would produce a 23% rate of return on the $15 million invested in this project.
Sell the Knight Center and Defease the Outstanding Debt - The Knight Center,
along with the associated parking garage, produce an operating profit, before debt service
and depreciation, of $1 million annually. This income is pledged to the repayment of the
63
MIAMI • FINANCIAL PLAN
J I+ , 0
110
C H A P T ER I V
outstanding $42 million in debt outstanding against the facility. This debt annually costs
the City $6 million and is paid by the $1 million in income from the facility, $2 million
from the Tourist Development Tax and $3 million from Utility Taxes. If the facility were
sold to the private sector it would probably be worth $20 million and such a sale would
require the repayment of the outstanding debt. If $20 million were the sale price, the City
would need to invest $22 million additionally to retire the outstanding debt. This
investment would reduce recurring expenditures by $5 million annually (the net debt
service payment). This transaction would return the City a 23% rate plus put the facility on
the tax roll and produce property taxes for the City.
Return the Funds to the Redevelopment Agency - The City transferred the land that
is under the Miami Arena from the Redevelopment Agency to the City. The City then sold
the land to the Sports and Exhibition Authority for $6 million. As the Redevelopment
Agency needs these funds to pay their outstanding debt, the City should restore the sale
price of this property to the Redevelopment Agency. This does not produce any rate of
return but avoids the probable of a default by the Redevelopment Agency on its debt.
Establish a Pool of Funds for the Study of Outsourcing - As is stated in the Guiding
Principles in Chapter 1 of this Plan, the City should not perform any function which can be
done more efficiently by the private sector. This Principle demands that all City functions
be reviewed to determine if it would be cost effective to outsource the function. To do a
comprehensive study a pool of $1 million should be established to properly undertake this
study. The potential rate of return on this study cannot be calculated but the potential is
large depending on its results.
Immunize a Portion of the Annual Debt Service for the Out Years - The City could
purchase the principal portion of long term Treasury's (Stripped Treasury's) and match the
maturities to required debt service payments in the 2010 and onward range to eliminate
those debt service requirements effectively. This option, which is totally dependent on the
interest rate market, would produce a rate of return to the City of 6 to 6.25% and effectively
eliminate this debt from the books of the City.
Retire Outstanding Debt - The City has approximately $491 million in outstanding
debt, $157 million in General Obligations, $243 in Appropriation and $91 in Revenue.
These bonds are payable at varying rates through 2017. Some of the outstanding debt is
currently callable and the balance could be defeased in substance with the establishment of
appropriate escrows. This reserve could be used to retire or defease a portion of this debt.
This project would produce a return to the City equal to the interest rate on the debt retired.
Dedicate a Portion of this Reserve to Increase Unappropriated Fund Balance in
the General Fund - The schedule of projected fund balance and reserves shows that the
unappropriated fund balance in the General Fund will remain at a negative balance of less
than $1 million over the five years. This $1 million amount could be allowed to flow
through operations to fund equity and eliminate this deficit amount. The rate of return to
64
MIAMI • FINANCIAL PLAN
C H APT E R IV
the City would be approximately 5% as this is the current rate of return on City
investments.
Appropriate this Amount into the Risk Management Reserve - If the City placed
this amount into the reserve for risk management, it would be better able to withstand the
major losses that can and will occur in the course of normal business. The City is building a
reserve for these losses at a rate of $1.1 million a year over the five year period. With a
potential liability of in excess of $70 million, a $5.5 million reserve is less than
comfortable. In addition to having immediately establishing a reserve at $26 million, this
amount would produce a recurring revenue stream of at least $1.3 million annually (a 5%
return).
65
MIAMI • FINANCIAL PLAN
1�1- �-%,
EXHIBIT 1
Revenues By Character And
Expenditures By Major Object:
Five Year Estimates
66
MIAMI • FINANCIAL PLAN
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
$ 414,826,503
$ 404,784,263
$ 406,690,097
$ 409,967,823 $
413,340,113
Total Expenditures 403,586,166
414,632,766
404,406,986
405,366,649
409,720,206
413,267,671
Sub -Total $ 5,039,906
$ 192,738
$ 378,277
$ 234,448
$ 237,618 $
72,542
Budget Solutions:
Sale of F.E.0 Tract
Sale of Municipal Justice Site
Remove Exemptions from Fire Fee
Create Legislative Budget Office
Create Audit and Management Office
MRC 10" Floor renovations and FFBE
Additional Capital Equipment
Solid Waste Fees
Operational Efficiencies
Management & Productivity Initatives
Reserves for Strategic Investments
Carryover Capital Balance
$ - $ 34,000,000
$ -
$ -
$ -
$ _
- 5,710,000
-
-
-
-
3,000,000
3,000,000
3,0009000
3,000,000
3,000,000
(460,000)
(464,000)
(478,000) •
(4939000)
(508,000)
(350,000)
(360,000)
(371,000)
(382,000)
(394,000)
(100,000)
(2,000,000)
(2,000,000)
(2,000,000)
(2,000,000)
(2,000,000)
- (2,006,532)
(2,006,532)
(2,006,532)
(2,006,532)
(29006,532)
2,006,532
2,006,632
2,006,632
2,006,632
2,006,632
- (2,760,000)
(3,395,000)
(2,770,000)
(2,410,000)
(2,410,000).
- (25,955,000)
Sub -Total $ - $ 11,095,000
$ (3,219,000)
$ (2,619,000)
$ (2,285,000)
$ (2,312,000)
$ - $ - $ 10,985,000 $ 7,590,000 $ 4,820,000 $ 2,410,000
Sub -Total $ - $ 10,986,000 $ 7,766,000 $ 4,971,000 $ 2,535,000 $ 98,000
Total-Surplus/(Deficit) $ 5,039,906 $ 11,177,738 $ 8,144,277 $ 5,205,448 $ 2,772,618 $ 170,542
MIAMI • FINANCIAL PLAN
67
CITY OF MIAMI
5-YEAR ESTIMATES AS OF: 10/8/97
As OF: 10/8/97
REVENUES BY CHAR / EXPENDITURES BY MAJOR
FY 1998 FY 1998 Year FY 1999 FY 2000 FY 2001 FY 2002
Revised End Estimated Estimated Estimated Estimated
Budget Projection Budget Budget Budget Budget
Fund 01 GENERAL FUND
Revenues
01
TAXES
125,525,725
123,393,391
125,606,746
128,536,473
131,743,438
135,023,919
02
LICENSES AND PERMITS
8,564,329
8,681,314
8,684,790
8,688,370
8,692,058
8,692,058
03
INTERGOVERNMENTAL REVENUE
37,103,560
37,407,482
40,459,533
33,722,870
30,280,750
28,194,848
04
CHARGES FOR SERVICES
50,926,575
53,419,574
57,833,346
56,606,238
56,866,155
57,102,105
05
FINES AND FORFEITS
3,351,713
3,378,526
3,378,526
3,378,526
3,378,526
3,378,526
06
MISCELLANEOUS REVENUE
14,671,827
14,735,767
9,196,694
11,243,998
11,785,222
11,785,222
08
NON -REVENUES
13,670,082
13,729,539
12,265,539
12,265,539
12,265,539
12,265,539
09
INTERNAL SERVICE FUNDS
36,134,970
41,091,760
26,886,405
39,842,797
42,353,707
42,732,691
Total for Revenues
289,948,781
295,837,353
284,311,579
294,284,811
297,365,395
299,174,908
Expenditures
100 SALARIES & WAGES -FIXED
147,150,147
146,584,800
154,996,653
161,546,393
161,646,148
160,855,064
200 FRINGE BENEFITS -FIXED
68,017,637
69,261,798
70,644,329
72,432,415
73,986,587
75,319,246
300 OPERATING EXPENSES -FIXED
70,781,543
71,299,771
73,525,319
75,708,185
77,797,646
79,906,407
400 OPERATING EXPENSES -VARIABLE
50,812,946
50,959,601
50,482,610
51,801,356
53,167,083
54,331,339
500 CAPITAL OUTLAY -VARIABLE
2,639,421
2,629,734
2,697,003
2,676,634
2,671,152
2,666,689
600 GRANTS IN AID
1,509,954
1,359,600
1,359,600
1,359,600
1,359,600
1,359,600
600 TRANSFERS TO OTHER FUNDS
(-56,002,774
(-46,297,858)
(-69,772,212
(-71,474,220
(-73,500,439
(-75,335,978)
Total for Expenditures
284,908,875
295,797,446
283,933,302
294,050,363
297,127,777
299,102,367
Total for Revenues
289,948,781
296,837,353
284,311,679
294,284,811
297,365,395
299,174,908
Total for Expenditures
284,908,876
296,797,446
283,933,302
294,060,363
297,127,777
299,102,367
5,039,906
39,906
378,277
234,448
237,618
72,541
N
MIAMI • FINANCIAL PLAN-, 68
CITY OF MIAMI
5-YEAR ESTIMATES AS OF: 10/8/97
As OF: 10/8/97
REVENUES BY CHAR / EXPENDITURES BY MAJOR
FY 1998
FY 1998 Year
FY 1999
FY 2000
FY 2001
FY 2002
Revised
End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 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
(�TT M IAM I • FINANCIAL PLAN
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
65,366,022
66,802,190
68,186,177
69,532,746
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
66,366,022
66,802,190
68,186,177
69,632,745
63,289,432
63,984,306
66,366,022
66,802,190
68,186,177
69,632,744
0
152,832
0
0
0
1
.•
CITY OF MIAMI
5-YEAR ESTIMATES
As OF: 10/8/97
REVENUES BY CHAR / EXPENDITURES BY MAJOR
As OF: 10/8/97
FY 1998
FY 1998 Year
FY 1999
FY 2000
FY 2001
FY 2002
Revised
End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 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
21,043,066
21,043,066
21,505,281
19,343,104
19,184,697
18,587,698
6,421,687
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
52,958,710
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
62,958,710
63,224,359
42,620,793
42,333,948
42,470,157
62,958,710
62,958,710
53,224,369
42,520,793
42,333,948
42,470,157
52,968,710
62,958,710
63,224,359
42,520,793
42,333,948
42,470,157
0
0
0
0
0
0
I
MIAMI • FINANCIAL PLAN —, 70
CITY OF MIAMI
5-YEAR ESTIMATES AS OF: 10/8/97
As OF: 10/8/97
REVENUES BY CHAR / EXPENDITURES BY MAJOR
FY 1998 FY 1998 Year FY 1999 FY 2000 FY 2001 FY 2002
Revised End Estimated Estimated Estimated Estimated
Budget Projection Budget Budget Budget Budget
Fund 60 TRUST & AGENCY FUNDS
Revenues
01 TAXES
1,323,060
957,303
957,303
1,047,303
1,137,303
1,227,303
03 INTERGOVERNMENTAL REVENUE
193,671
300,000
300,000
300,000
300,000
300,000
06 MISCELLANEOUS REVENUE
592,994
450,000
450,000
450,000
450,000
450,000
09 INTERNAL SERVICE FUNDS
319,414
185,000
185,000
185,000
185,000
185,000
Total for Revenues
2,429,139
1,892,303
1,892,303
1,982,303
2,072,303
2,162,303
Expenditures
100 SALARIES & WAGES -FIXED
231,075
231,075
231,075
231,075
231,075
231,075
200 FRINGE BENEFITS -FIXED
111,118
111,118
111,118
111,118
111,118
111,118
300 OPERATING EXPENSES -FIXED
112,027
112,027
115,386
118,849
122,415
126,087
400 OPERATING EXPENSES -VARIABLE
283,188
180,780
177,421
173,958
170,392
166,720
500 CAPITAL OUTLAY -VARIABLE
25,000
0
0
0
0
0
600 TRANSFERS TO OTHER FUNDS
1,666,731
1,257,303
1,257,303
1,347,303
1,437,303
1,527,303
Total for Expenditures
2,429,139
1,892,303
1,892,303
1,982,303
2,072,303
2,162,303
Total for Revenues
2,429,139
1,892,303
1,892,303
1,982,303
2,072,303
2,162,303
Total for Expenditures
2,429,139
1,892,303
1,892,303
1,982,303
2,072,303
2,162,303
0
0
0
0
0
0
Overall Total for Revenues
408,6269062
414,825,603
404,784,263
405,690,097
409,957,823
413,340,113
Overall Total for Expenditures
403,686,156
414,632,766
404,406,986
406,355,649
409,720,206
413,267,571
5,039,906
192,738
378,277
234,448
237,618
72,542
C�."
CIZ
VT
MIAMI • FINANCIAL PLAN
71
r
EXHIBIT 11
Cash Flow Analysis For Fiscal r.
Years 1998 And 1999
MIAMI 9 FINANCIAL PLAN 72
City of Miami
Cash Flow Analysis for Fiscal Years 1998 and 1999
Oct- v- c-97 Jan-98Feb- ar- pr- ayJun-98 Jul-98ug- ep-
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
I
9 Oct- v- c-98 Jan-99Feb-Mar-Apr- ay -Jun- Jul - Aug- ep-
Beginning / Ending Cash 20,891,687 32,574,895
Reserve for Future Deficits 10,204,916
Risk Management Reserve 1,100,000
Monthly Cash Position (12,130,736) (4,757,923) 64,951,860 4,519,265 (8,689,697) (1,809,910) (6,741,027) (9,170,820) (10,007,835) (9,294,105) (12,984,323) 6,493,543 378,292
Net General Fund Cash Flow ,
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)
MIAMI • FINANCIAL PLAN 73
EXHIBIT 111
Recurring Vs. Non -Recurring Analysis
M IAM I • FINANCIAL PLAN 74
C H A P T 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
Fund
General Fund
Special Revenue Fund
Debt Service Funds
Trust & Agency Funds
Total
Schedule of Recurring and Non -recurring Revenues vs. Expenditures
Fiscal Year 1998 Summary Analysis
Excess/(Deficit)
Recurring
Recurring
Recurring Revenue vs.
Revenue
Expenses
Recurring Expenses
$ 275,065,767
$ 263,319,815
$ 11,745,952
64,137,138
60,279,820
3,857,318
52,958,710
52,958,710
-
1,892,303
1,892,303
-
$ 394,053,918
$ 378,450,648
$ 15,603,270
Recurring
Revenue
$ 284,311,579
65,356,022
53,224,359
$ 404,784,263
Recurring
Revenue
$ 291,179,895
66,802,190
42,520,793
$ 402,485,181
Fiscal Year 1999 Summary Analysis
Excess/(Deficit)
Recurring
Recurring Revenue vs.
Expenses
Recurring Expenses
$
271,737,851
$ 12,573,728
61,651,536
3,704,486
53,224,359
-
1,892,303
-
$
388,506,049
$ 16,278,214
Fiscal Year 2000 Summary Analysis
Excess/(Deficit)
Recurring
Recurring Revenue vs.
Expenses
Recurring Expenses
$
281,550,372
$ 9,629,523
63,097,704
3,704,486
42,520,793
-
1,982,303
-
$
389,151,172
$ 13,334,009
Percentage of Recurring
Revenue over
Recurring Expenses
104%
106%
100%
100%
104%
Percentage of Recurring
Revenue over
Recurring Expenses
105%
106%
100%
100%
104%
Percentage of Recurring
Revenue over
Recurring Expenses
103%
106%
100%
100%
103%
MIAMI • FINANCIAL PLAN ��75
a
Fiscal Year 2001 Summary Analysis
Excess/(Deficit)
Percentage of Recurring
Recurring
Recurring
Recurring Revenue vs.
Revenue over
Fund
Revenue
Expenses
Recurring Expenses
Recurring Expenses
General Fund
$
292,965,395
$ 284,623,819
$ 8,341,576
103%
Special Revenue Fund
68,186,177
64,481,691
3,704,486
106%
Debt Service Funds
42,333,948
42,333,948
-
1000/0
Trust & Agency Funds
2,072,303
2,072,303
-
100%
Total
$
405,557,823
$ 393,511,761
$ 12,046,062
103%
Fiscal Year2002 Summary Analysis
-
Excess/(Deficit)
Percentage of Recurring
Recurring
Recurring
Recurring Revenue vs.
Revenue over
Fund
Revenue
Expenses
Recurring Expenses
Recurring Expenses
General Fund
$
295,474,908
$ 286,596,904
$ 8,878,004
103%
Special Revenue Fund
69,532,745
65,828,258
3,704,487
106%
Debt Service Funds
42,470,157
42,470,157
-
100%
Trust & Agency Funds
2,162,303
2,162,303
-
100%
Total
$
409,640,113
$ 397,057,622
$ 12,582,491
103%
M IAM I • FINANCIAL PLAN 76
CHAPTER I V
Exhibit IV
Analysis of Changes in General Fund Equity
M IAM I • FINANCIAL PLAN 77
44 .- 0 3 S
1150
City of Miami
Analysis of Changes in General Fund Equity
for Fiscal Years 1996 through 2002
(000)
1996
1997
1998
1999
2000
2001
2002
Begining Fund Equity $26,294
($21,816)
$3,833
$45,975
$21,349
$23,134
$25,257
Operating Results 48,110
25,649
42,142
24,626
1,785
2,123
1,871
Ending Fund Equity $21,816
$3,833
$45,975
$21,349
$23,134
$25,257
$27,128
Fund Equity Components:
Reserves:
Employees Retirement
Encumbrances
Prepaids
Inventories
Strategic Investments
Cash Flow
Risk Management
Contingencies
Unreserved:
Designated for Budget
Undesignated
Total Fund Equity
13,481
1,464
233
697
500
500
500
500
500
153
484
300
300
300
300
300
546
610
600
600
600
600
600
25,955
4,000
6,800
9,070
11,340
13,610
15,880
1,100
2,200
3,300
4,400
5,500
1,000
2,000
3,000
4,000
5,000
13,159
10,985
7,590
4,820
2,410
36,229
1( 6,581)
1,265
9�11)
7�26)
5566_3)
652
$2( 1,8166 $3,833 $45,975 $21,349 $23,134 $25,257 $27,128
In Fiscal 1997 the City increased its equity by the $19.6 million prior period deficit replacement, the $13 million
better than budget projection, the $4 million cash flow reserve less the use of $12 million in employees retirement
reserve.
M IAM I • FINANCIAL PLAN 78
CHAPTER V
CITY
WORKFORCE
u
op
t � s
E'CO.F�,O
CITY WORKFORCE
OVERVIEW
It is the people who work for the City of Miami, who collect the City's trash, fight fires,
patrol its streets, maintain its parks, and deliver all the public services that allow the
municipality to function. The Strategic Financial Recovery Plan, submitted November 15,
1996, includes a transmittal memorandum which affirms the value and dedication of
Miami's workforce, describing the employees and department directors as key resources
for the City's future success.
City services are generally labor-intensive. The cost of employee wages and benefits is
almost always the single largest component of a municipality's budget. For the City of
Miami, personal service expenditures represent 66.1 percent of the FY97 General Fund
budget at a cost of over $159.0 million.
Given the budgetary significance of the labor component, much thought has gone into
developing a deliberate human resource strategy which is complimentary to the fiscal and
service needs of the City, and at the same time addresses the social objectives embraced by
the current administration. Moreover, given the need to enhance productivity, contain
costs, and capture efficiencies, most of the City's planning efforts have been targeted
toward transforming the City's organizational structure to reflect a higher level of
responsiveness and accountability.
Similar to other urban areas, the City of Miami will continue to face a series of
structural challenges. This includes changes in the business and social environments, and
changes to levels of federal, state, and regional funding. Both current and future
administrations will be confronted by the pressures of rising labor costs and increasing
demand for services, all within an environment of limited revenues. In addition, city
mayors and managers must continue to strike a balance between strategies which foster
innovation and creativity, and those necessary policies which impose accountability and
operational discipline.
In order to move into the future successfully, the City is examining its cost structure, by
emphasizing the efficiency and effectiveness of its personnel. The City must also analyze
and develop strategies which provide positive environments of change for its workforce,
and which ultimately reduce the relative cost of services without compromising quality.
79
C H A P 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 to
3,400
3,300
3,200
3,100
3,000
1990 1991 1992 1993 1994 1995 1996 1997 1998
Fiscal Year
MIAMI
`�
� Positions
awe:
`�.�:�,•::
;>
:�<���
<'
>"z�
���
i $i9c,�»
•3a
`3..
� �
'�£^�+.
...,.Y;;
y�.f
;fie
�y,�°�a�
"• �
�:ss,k
S �.f_�w y9�.
A4t'�. az3'
'^�..?��
Jyr`'Y�':�
._��"'�
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.
80
CITY WORKFORCE
C H A P T E R V
Positions by Department
Mayor
•.
8
0.23%
Board of Commissioners
20
0.58%
City Manager
12
0.35%
Office of Budget & Management Analysis
22
0.64%
Office of the City Clerk
9
0.26%
Office of Civil Service
4
0.12%
Office of Community Information
5
0.15%
Office of Equal Opportunity/Diversity Programs
4
0.12%
Office of the Hearing Boards
6
0.18%
Office of Labor Relations
7
0.20%
Office of Professional Compliance
3
0.09%
Building and Zoning
75
2.19%
Conferences, Conventions, & Public Facilities
28
0.82%
Finance
57
1.67%
Fire Rescue - Civilian
59
1.73%
Fire Rescue - Sworn
566
16.55%
General Services Administration
156
4.56%
Human Resources
24
0.70%
Information Technology
46
1.35%
Internal Audits and Reviews
9
0.26%
Law
45
1.32%
Miami Springs Golf Course
9
0.26%
Nondepartmental Accounts (SP&A)
Miami Action
2
0.06%
Sister Cities
2
0.06%
Parks and Recreation
122
3.57%
Planning and Development
42
1.23%
Police - Civilian
485
14.18%
Police - Sworn
1,065
31.14%
Public Works
91
2.66%
Purchasing
17
0.50%
Solid Waste
228
6.67%
Special Revenue Fund
182
5.32%
Trust & Agency Fund
10
0.29%
TOTAL GENERAL FUND
3,420
100.00%
As can be seen from the table, 70.35 percent of all budgeted positions are within the
Police, Fire, and Sanitation Departments. This is indicative of the essential and basic
character of the services provided by the City.
Positions within the City are also categorized by job classification, as either classified
or unclassified. Classified positions are those positions governed by civil service rules,
while unclassified positions are exempt. Within the classified category, the City recognizes
its four unions: Police (FOP), Fire (IAFF), Sanitation (CIGU) and General Employees
(AFSCME). Also within the classified category is a small population of managerial/
confidential (M/C) employees who are not eligible for union membership.
81
MIAMI 9 CITY WORKFORCE
Unclassified, on the other hand, covers executives, professionals and some clerical
positions. For FY97, approximately 92 percent of the City's employees are classified, 91
percent are affiliated with a union, and 8 percent are unclassified.
Budgeted Positions by Classification/Union Affiliation
FOP
30.79% AFSCME
Unclassified - Clerical & .
Professional
5.71 %
Classified M/C Executives/
0.86% CIGU IAFF Professionals
6.20% 17.90% 2.47%
Another distinction within Miami government is its racial and gender diversity. One
basic objective of Miami's Equal Employment and Affirmative Action policies is to
promote a total quality work environment which reflects the racial and gender balance of
the City. Approximately 70 percent of Miami's workforce is male, while 30 percent is
female.
City of Miami
City Employment By Gender
As of 10/97
Female
A Fri { ✓'•,.r^
Male
70%
82
MIAMI 0 CITY WORKFORCE
C H A PT ER V
City of Miami
City Employment by Race
As of 10/97
Asian White
Indian 0.7% 20%
0.1 %
T
Other:` K ° Black
0.2% 31.8%
'4^i;k�i.-nk�4t;• .. Sri.
Hispanic
47.3%
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
City of Miami
I
Employees by Years of Service
1200
30.1 %
Average Tenure =10.9 years
1000
H
Gi
C
800
20.7%
C.
199%
E
172%
w
600
O
12.1 %
L.
400
E
Z
200
i
0
0 to 5
5 - 10 10 - 15 15 - 20 20 and above
Years of Service
83
MIAMI 0 CITY WORKFORCE
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.
Qty of Miami Former Table of C79anization
-Residents of Miam i
City Commission
Co Muni Civil Downtown Sports and
City City Off -Street
Developmen City Clerk Service Developme Exhibition
Agency Attorney Board Manager Authority Authority Parking
Internal Equal Opp
Audits and Diversity
Review Programs
Assistant Assistant Assistant Assistant Assistant NGeneral
Fire City Manage City Manage City Manage City Manage City Manage Police
4Neighbor- Community
Human
Finance hood Enhan Planning an Public Work cement Tea RevitalizatioResources
Building an Asset Parks and
Zoning Managemen Recreation
Hearing
Boards
84
.• ,L
MIAMI 0 CITY WORKFORCE
C HA P T E R V
City Coumission
may-
City
Cty
Admay
--d
perk
I City F --jer
L
Legislative
Budget
Cmanndy
Assistant C4 Assistant aty
and
I
Re&welopm t
I
Ault MaaW-Fsa a Mawger-
Support
"..,
and ad Acinks tratim opaatims
Gail
Baytrad
Service
Pads
Fuanx NatSolid
d
Trust
Coordinator
l--E
Waste
Miand Sports
arid
CA -Street
Exhaition
Patdnng
Infarmatim Labor swking
L.:
Authority
Andhodty
Tedvndogy Rdatiom ad
Zon ng
Downtoarf
Devdapma t
Plaming Pr+dasirg Public
IDevelowrientF
Pudic
Ar d,"
and FaoSties
Works
Fleain9 Commrdty Parlo:
Bonds Devekpmad ad
Reveaticn
Federal
and
state
Usisan
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
85
Police
Budget
015ce
Equal
Gpwturdty
office or
prolessimd
MIAMI 0 CITY WORKFORCE
C H A P T E R V
— The Department of Finance now includes treasury and debt management as
well as accounting and payroll.
• The Office of Asset Management is merged into the Department of Community
Planning and Revitalization and the combined department is called the Department
of Planning and Development.. The Community Redevelopment Agency has been
restored as a quasi -autonomous entity. The City Commission will continue to serve
as the Board of Directors for the CRA.
• The creation of the Legislative Budget and Support Office is required to effectuate
the separation of powers between the Legislative and Executive branches of City
Government. The Legislative Budget and Support Office will initially focus on
progress toward operational implementation, revenue enhancement, contract
compliance and strategic investment options.
• Pursuant to the Charter change, the budget reporting and development of the City
Attorney, City Clerk and other Boards, Committees and Offices will be the
responsibility of the Legislative Budget and Support Office.
• 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. 1,00
86
M 1 A M 1 0 CITY WORKFORCE
C H A P TER V
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%,
respectively. Over the past 13 years, actual expenditures on employee compensation also
increased from approximately $131.7 million in FY85 to $166.8 million in FY97,
representing a $2.9 million average annual increase over the thirteen year period. The chart
below represents the total amounts expended for personnel services and their respective
share of total General Fund operational costs.
City Expenditures on Employee Compensation
FY85 - FY97
90.0%
160, 000,000
80.0%
140,000,000o.
70.0%
120,000,000
KX
60.0%
100,000,000
-
50.0%
m
O
E
80,000,000
60,000,000
-
30.0%
a
40,000,000
-
-
20.0%
20,000,000
10.0%.
0
0.0%
FY85
FY86 FY87 FY88
FY89 FY90 FY91 FY92
FY93
FY94
FY95
FY96
FY97
Fiscal
Year
I PERSONNEL SERVICES
--o--PERSONNEL SERVICES PERCENTAGE
���
Despite the City's efforts to contain costs, most of the regular rise in compensation
expenditure is due to the tenure and experience of the City's workforce, which results in
both longevity payments and higher pay steps in employee pay plans. For most City
positions, there are approximately 9-15 total pay steps; with 9 representing the minimum
and 15 the maximum number of total steps including longevity payments. The annual step
increases range between 6-9 steps, while longevity steps range between 3-7 steps
depending on employee classifications and union contracts. Increases between annual steps
are 5%. Increases between longevity steps range from 2.5%-5%.
Progression through pay step increases is based largely on time served and not on
performance. Consequently, in a relatively short -time, a City employee may reach the
highest regular pay step of a position, regardless of merit, even in the absence of any
across-the-board wage increases. The rise in total employee compensation cost is a
function of both these steps as well as regular cost of living increases. In the absence of
past managerial initiatives to contain personal compensation costs, these gains could have
been even more pronounced.
87
M 1AMA 0 CITY WORKFORCE
FRINGE BENEFITS
The City of Miami pays the costs of providing fringe benefits for all City employees.
Fringe Benefits include Health Insurance, Life Insurance, Pension, Workers Compensation,
Disability Benefits, Social Security, and Other Miscellaneous Benefits. Miscellaneous
Benefits are dependent on job classification, and contain such items as tuition
reimbursement, clothing and car expenses, or other related pay supplements.
Fringe benefits are a significant part of Miami's General Fund expenditures, ranging
from 19-26 percent of the City's budget over FY92-FY97. As shown in the chart below,
total fringe benefit costs declined from $52.8 million in FY92 to $ 47.6 million in FY97.
Fringe Benefits
60 30.00%
50 _ 25.00%
40 20.00 %
n
o
30 - 15.00% u
d
w a
20 10.00 %
10 _ 5.00%
0 0.00 %
FY92 FY93 FY94 FY95 FY96 FY97
Fiscal Year
iiiiiiiiiiiiiiiiFringe Benefits —*.—% of General 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.
88
MIAMI 0 CITY WORKFORCE
C H A PTER V
TIME OFF
Employees of the City of Miami are eligible for "time off' from work in a number of
ways. The City pays for time not worked through paid holidays, vacation days, sick leave
and other types of leave. When added together time off is estimated at approximately 15-
16 percent times salaries and wages for FY97.
Paid Holidays
Paid Holidays represent a significant portion of time off, at an estimated 4.9 percent
times salaries and wages for FY97. In 1997, the City gave all employees 11 paid holidays.
According to a study conducted by Workplace Economics for 1995, the current provision
of 11 paid holidays ranks Miami in the mid -range of other municipalities.
Sick Leave
The City of Miami also permits its workers time off because of illness. In general, sick
leave is accrued, with the levels of accrual based primarily on job classification, union
affiliation, and tenure. Depending on employment classification, City workers can accrue
anywhere from 12-16 days per year. For FY97, sick leave is estimated at 4.62 percent of
salaries and wages.
Vacation Days
Employees of the City of Miami also receive vacation time off. The number of days
earned is also dependent upon the time a worker has spent employed by the City as well as
employment classification. Vacation time represented approximately 5.77 percent times
salaries and wages for FY97.
Other Time
Other time- includes compensatory time and earned personal leave. The City permits
certain employees to earn and receive compensatory and earned personal leave.
89
MIAMI • CITY WORKFORCE
, 1 0i�
I I.
C H APT E R V
Overtime
A potential impact of City employees' time off with pay, is on City overtime
expenditures. The City of Miami divides overtime into two components, regular overtime
and special event overtime. In FY92, overtime expenditures were approximately $7.4
million and grew to a high of $12.2 million in FY95. Since FY95, overtime costs have
declined steadily to $7.3 million in FY97, and are projected to decline further in FY98.
The chart below shows the trend in overtime levels and percentage of General Fund
expenditure.
City of Miami Overtime
FY92-FY97
14
6.0%
12
5.0%
10
N,s
4.0%
2.0%
4
a..°:°.
2
.a
1.0%
0
.1
0.0%
FY92 FY93
FY94 FY95
FY96 FY97
Fiscal Year
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.
90
MIAMI 0 CITY WORKFORCE
C H A P T E R V
SUMMARY OF CURRENT CITY
COMPENSATION PACKAGE
On the following pages are two charts which summarize the City's current union
contracts. With the exception of the Sanitation Union, contracts for all other bargaining
units expire September 1998. Sanitation union employees are currently operating under the
old contract until an agreement is reached with the new union.
Of note is the postponement of the latest across-the-board wage increase to 9/l/98.
This was the result of formal concessions agreements established with each bargaining unit.
The net savings generated, assisted the City in managing a potential shortfall of revenues
over expenditures for FY97.
91
MIAMI • CITY WORKFORCE
A) i -+ - 031
ty
C H A P T E R V
SUMMARY OF COLLECTIVE BARGAINING AGREEMENTS
FY 1997
Benefit FOP IAFF AFSCME ( CIGU
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
acneau.�ea -wage increases
h
Percentage 09/01/98 09/01/98 09/01/98 0
Effective Date 4% 4% 4%
Medical Insurance 1Bi»Weeklvl
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 Compensation ; ... ;.
..
... ...:...::.:..: , . .:
Duration
180 days---150 days
180 days
180 days
Parking Provided .
,
Yes/No
- Yes
Yes
Yes
Take'Home Vehicle
Yes/No
Yes No
No
No
'Heart -Bill
Yes/No
Yes Yes
No
No
Pension
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
overtime
Yes/No Yes Yes Yes Yes
Min Hrs. Call Back 3 4 4 4
Note: Normal pension costs for AFSCME and CIGU are reflected as 0% due to excess earnings on
investments. City contributes 23.78% for unfunded liabilities as a result of the Gates Settlement.
92
MIAMI 0 CITY WORKFORCE
SUMMARY OF COLLECTIVE BARGAINING AGREEMENTS
FY 1997
FOP FOP IAFF IAFF AFSCIVIE AFSCME CIGU CIG U
Ray Supplements
Plain Clothes
$660 Yr.
Fire Prevention Pay
$76.92 BiMk
Comm. Operator Train.
$40.00 BiANk
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 BiNVk
On Call Arson Invest. (40 Hr.)
10%
Shift Differential
$.50 Per Hr.
Motorcycle
$20 Mo.
On Call Comm. Cord. (40 Hr.)
10%
On Call Facility Cord. (40 Hr.)
10%
On Call Haz. Mat. Insp. (40 Hr.)
10%
On Call Public Inf. Off. (40 Hr.)
10%
On Call Spec. Event Off. (40 Hr)
10%
Air Truck Assignment (48 Hr.)
2.5%
Air Truck Cord. (48 Hr.)
1%
Plans Examiner (40 Hr.)
10%
Als Assignment
5%
Als Acting
5%
EMT (48/40 Hr.)
1.5%
Haz Mat (48 Hr.)
1.5%
Dive Team (48 Hr.)
1.5%
Revenue Incentive Pay (48/40 Hr.)
2.5-7%
Swat Medic (48/40 Hr.)
1.5%
Station Commander (48 Hr.)
1%
State Cert. Fire Instructor
Fire Training (40 Hr.)
1.5%
State Cert. Fire Insp. Fire
Prevent Bureau Insp. (40 Hr.)
1.5%
1 Safety Shoes
I $754
Other AskinnmArit Pav
Chief Office
5%
Fire College
5%
Fire Prevention
5%
Communications
5%
Garage
5%
Admin. Office Fire Fighting
5%
MIAMI 0 CITY WORKFORCE 93
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 which support positive environments
of change for its workforce, and which ultimately reduce the relative cost of services
without compromising quality. The City has established several initiatives for workforce
for the upcoming fiscal years. Among those priorities includes the following list.
• Support the City's reorganization plan
by assisting the City fill key
personnel positions, and establishing
a task force to continue the
reorganization of City services and
implement recommendations.
• Undertake an assessment of Citywide
training needs and prepare a draft
report to serve as the basis for a
preliminary training budget for FY
99.
• Prepare a comprehensive training
program for the Finance Department
in conjunction with the Blue Ribbon
Task Force, Florida International
University ("FIU"), the Finance
Department and the Human
Resources Department.
• Continue to conduct a market rate
survey or retain consultants to
conduct a market rate survey of job
classifications -- wherever plausible
establishing more generic job
descriptions.
• Prepare a transition plan to adjust the
rate disparity between Tier I and Tier
II classifications.
• Survey municipal "best practices,"
evaluate the executive personnel
eligible for retirement, and draft a
leadership succession plan for
consideration by the City Manager.
• Investigate the possibility of
retaining a benefits consultant to
assist in structuring, evaluating, and
procuring a coordinated benefits
package for employees.
• Automate selected job application
processes, including improved
applicant tracking and
computerization of job applications.
• Continue to conduct wage/pricing
surveys to update ten salary
schedules.
• Improve communication with the
City's bargaining units
• Improve the management and
tracking of time off.
• Continue to investigate cost effective
and quality health care alternatives.
MIAM1 0 CITY WORKFORCE 94
CHAPTER VI
ECONOMIC
DEVELOPMENT
E C O N O M I C DEVELOPMENT
OVERVIEW
Economic development is the process which a municipality engages in to facilitate the
creation and growth of wealth within its geographic boundaries. This is accomplished by
expanding its revenue base through the development and implementation of programs and
policies for the retention, expansion and attraction of commerce and trade, including local,
small and disadvantaged businesses; regulating business activities, land and building use
within its boundaries efficiently, effectively and fairly; and developing and maintaining
stable, diverse and attractive neighborhoods throughout its geographical area.
ATTRACTING/EXPANDING BUSINESSES
The goal of organizations involved in economic development is to assist businesses
with relocation or expansion decisions. The decision process involves four steps: (1)
meeting the technical requirements, (2) satisfying the economics, (3) assuring a safe and
quality life-style and (4) satisfying the cultural and recreational amenities.
The decision steps are somewhat sequential. Satisfying the technical requirements
means that a community has or can quickly supply the specified building/facility, natural
resources, qualified labor force, utilities and other factors essential for production. If a
community cannot meet the technical requirements, this community will be eliminated
from further consideration.
Next, a community must compete economically and socially. If a community meets the
technical requirements, the next step is to determine the area's cost competitiveness. Cost
factors such as production, taxes, transportation, insurance, as well as, quality -of -life
factors including housing, education and security are evaluated during this second and third
step of the decision process. Communities with higher cost factors and low quality of life
factors will be eliminated from further consideration.
The fourth level of factors considered by business relocation decision makers includes
lifestyle amenities, availability of affordable housing, recreation (professional sports),
health, culture, and performing arts.
Economic development organizations market the above package of technical,
economic, quality of life and lifestyle resources to potential business clients, while
improvements in the overall economic environment are made by well organized public -
private alliances. As the front-line marketing organization, economic development
organizations receive first-hand knowledge regarding the required improvements that must
M 1AMA • ECONOMIC DEVELOPMENT 95
be achieved if the organization is to be successful in attracting new -to -market businesses or
retaining the current employment base.
REGULATING BUSINESS ACTIVITIES
The goal of regulating business activity is to ensure that the City has policies in place
and an overall plan developed for encouraging targeted businesses and industries. This is
particular true for the City of Miami because while employment is increasing, it is not
increasing in high paying jobs or industries, like computers, electronics and high
technology areas. Traditionally, Miami has not been able to attract higher paying
industries. Additionally, this is important because the City has limited resources for
economic development and those resources must be coordinated carefully and utilized for
projects which provide the greatest benefit to the City and its residents.
LAND AND BUILDING USE
The City has taken an important step in trying to effectively manage its land and
building use by taking an inventory of all of the parcels of land and buildings that the City
owns. The City must now take that information and use it in order to develop a
comprehensive land use strategy. In addition, the City consolidated the Departments of
Community Planning and Revitalization, Asset Management, and its Community
Redevelopment Agency into one department Planning and Development. This should
ensure that the City's future land and building use efforts proceed with a singularly focused
strategy.
MAJOR ECONOMIC ENGINES AND HIGHLIGHTS
OF THE GREATER MIAMI ECONOMY
The City of Miami has some major economic assets in its favor. First, it is close to
Latin America and Europe. Second, it has a good natural harbor for shipping. Third, it has
a favorable natural climate with easy access to beaches, cultural attractions, sport venues,
clubs, and restaurants. As the City tries to position itself to be the trade and commerce
center of the Americas, it is capitalizing on these assets to help make it successful.
Proximity to Latin America and Europe encourages firms from around the world to
locate offices in Miami and do business here. The important role Miami plays as an
international center is demonstrated by the number of foreign consulates and other
international agencies accredited in the City. In 1996, there were some 52 consulates, 32
binational chambers of commerce, and 22 foreign trade offices. The economic
development impact of international trade is staggering. During the past decade, the value . r
96
MIAMI • E C O N O M I C DEVELOPMENT
C H A P T E R V
of exports and imports processed through the Miami Customs District has increased by 20
percent each year.
Miami has the greatest concentration of international banks in North America.
Domestically, the Miami Federal Reserve office handles $1.5 trillion annually, an
indication of just how big banking is in Miami. More than 30 Edge Act banks, which make
only foreign loans and accept foreign deposits, are part of a network of 100 foreign banks
with assets exceeding more than $18 billion. Business along the Brickell Avenue office
corridor, known as the "Wall Street of the South," is expected to remain strong and help
lead the City's economy into the 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.
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
97
MIAMI 9 E C O N O M I C DEVELOPMENT
.. -..... , __1
professional sports events, and sports fishing. Annual fairs and festivals also bring in
visitors for local events.
Miami's television and film industry now ranks third in the country behind New York
and Los Angeles. The industry employs some 13,000 technicians and actors locally and
contributes roughly $200 million a year directly to the local economy. The industry's total
economic impact exceeds $700 million a year and raises the city's profile, bolstering the
city's tourism and other industries.
GOVERNMENT ENTITIES INVOLVED IN
ECONOMIC DEVELOPMENT
City Department of Planning and Development
The City's Department of Planning and Development tracks and encourages the
construction of major projects around the City. Below is a list of projects currently under
construction and projects planned for the immediate future.
Current Development Projects
• Watson Island Botanical Garden/Parrot Jungle & Garden (Current)
Development of 18.6 acre, City -owned waterfront site into a visitor destination
attraction featuring a parrot jungle and botanical garden, restaurants, and ancillary
retail space. Must be completed no later than 30 months from September 1997.
• Dinner Key Waterfront Redevelopment (Current) Commercial and recreational
redevelopment with adaptive reuse of two historic hangers. Will include a full -
service boatyard, a 122 wet slip marina, a 40,000 sq.-foot public marketplace,
10,000 sq.-foot of marine -related retail spaces, a marine fueling facility and parking.
Expected to be completed 18 months after November 1997.\
• Watson Island Aviation Facilities/Regional Visitors Center (Proposed) This will
be a redevelopment project to consolidated the existing seaplane operation and
helicopter base and to provide additional space for a regional visitors center,
restaurant, and possible aviation museum. Completion planned for November 1998.
• Tower Theater Rehabilitation (Proposed) A complete rehabilitation of the City -
owned historic, vacant Tower Theater built in 1926. This will become an important
component in the revitalization of the Little Havana neighborhood and Latin
Quarter District. Completion by May 1998.
98
MIAMI • E C O N O M I C DEVELOPMENT
C H APT E R V
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.
99
MIAMI • E c O N O M I c DEVELOPMENT
i J,
• Omni Redevelopment District In the recent past, the Omni Redevelopment
District helped develop a Metromover mass transit stop next to the Omni Hotel and
Mall shopping complex. Since then, it has selected Cesar Pelli & Associates to
design a Performing Arts Center next to the Miami Herald and Dade County Public
School Board administrative offices. The Performing Arts Center hopes to become
one of the premier arts institutions in South Florida, booking national and
international acts along the models of the Winter Garden in New York City and the
Founders Hall in Charlotte, North Carolina.
• Southeast Overtown/Park West Redevelopment Agency (SEOPW) SEOPW is a
redevelopment agency established by the City in 1982 to target development in one
of its poorest areas. Established under Chapter 163, Florida Statutes and City
Resolution No. 82-755, SEOPW is funded through an inter -local agreement with
Metropolitan Dade County to approve tax increment financing. The City has issued
debt for SEOPW and, under the inter -local agreement, is responsible for
disbursement, accountability, management, and proper application of all funds paid
into the Redevelopment Agency's trust.
Miami Sports and Exhibition Authority (MSEA)
MSEA was created by the City in 1983 to promote the development of sports,
convention and exhibition facilities within the City with the funds from a three percent
Convention Development Tax levied by Metropolitan Dade County. The City Commission
must approve MSEA's board membership and the Authority's operating budget. MSEA
was established under Chapter 212.0305 of the Florida Statutes and City Ordinance No.
9662.
The Miami Sports and Exhibition Authority helped fund the Knight Convention Center
in downtown Miami and the Orange Bowl Stadium nearby.
Community Development 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.
100
MIAMI • E c O N O M l c DEVELOPMENT
C H APT E R V
All projects must benefit low and moderate income persons or help prevent/eliminate
slum and blight.
For FY 97, the CDBG award was in excess of $13 million. During the past year,
CDBG 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.
OTHER ENTITIES INVOLVED IN
ECONOMIC DEVELOPMENT
Beacon Council
The Beacon Council, a public -private partnership, provides programs to facilitate
economic development in Dade County. The Council receives approximately 60% of its
funding from Metro -Dade County through a 50% increase in business occupational license
fees. The remainder of the Beacon Council's funding comes from the investment of
approximately 450 Dade County businesses.
The Dade County Beacon Council's membership (the 450 dues -paying members)
annually elects a Board of Directors. Currently, the Board consists of 60 members. The
Board annually elects an Executive Committee which provides the general governance of
the Beacon Council, with present membership of 25. The Beacon Council has a staff of 38
persons with three operational divisions. The operational divisions are (1) Budget and
Administration, (2) Business Development and (3) Communications Membership and
Research.
Greater Miami Chamber of Commerce
Founded in 1907, the Greater Miami Chamber of Commerce now has membership
representing more than 4,000 businesses. Its purpose is to promote economic activity and
growth in the Greater Miami region. The Chamber launched a leadership program for
community members in 1979 and took a prominent role in helping the city's economy
rebuild from Hurricane Andrew in 1992.. In 1995, it spearheaded the development of an
economic masterplan for local job growth into the 2 1 ' century.
The Chamber has a professional staff of 44 and has acted as an incubator for the
development of other agencies such as the Greater Miami Convention and Visitors'
Bureau.
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MIAMI • E C O N O M I C DEVELOPMENT
C H A P T E R V I
Greater Miami Convention and Visitors' Bureau
The Greater Miami Convention and Visitors' Bureau defines itself as a private, not -for -
profit sales and marketing organization. Currently it has over 1,000 members, including
four local governments (The City of Miami, Metro -Dade, the City of Miami Beach, and the
Village of Bal Harbor) which participate in planning and sponsoring activities to draw
groups and visitors to the area. GMCVB helps to maintain and promote the local area's
image as an attractive place to vacation and conduct business.
THE CHALLENGES
A key goal of the City's strategy for economic development should be to attract and
maintain high value added industries and thus higher paying jobs. However, local
economic growth cannot occur without certain fundamental elements being in place.
Specifically, the size and growth of any economy is closely related to its: (1) educational
system, (2) transportation system, (3) social services system, (4) criminal justice system,
(5) health systems, (6) cultural and recreational system, (7) government services system,
(8) coordinated national and international marketing programs, and (9) sound local
government fiscal systems.
Generally, the growth of higher paying jobs occurs in communities where these systems
are better than average and are functioning in a cohesive manner. Communities frequently m g
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.
102
MIAMI 9 E C O N O M I C DEVELOPMENT
C H A P T E R V I
The other fact that should be apparent is that there are numerous agencies and groups
within the Greater Miami area involved in economic development. Generally, this leads to
competing interest and confusion concerning the strategy and focus for economic
development within the region.
Since the City will be a major focus of any regional economic development effort, the
City should try to take a lead in coordinating the various different agencies and
governments to establish a common strategy and philosophy for economic development in
Dade County. In addition, the City could leverage the information and knowledge gained
from becoming more active in the countywide economic development process in order to
reapply for empowerment zones and enterprise funds. These programs are generally
awarded to cities and not agencies or groups involved in economic development. Being
awarded enterprise funds or an empowerment zone would give the City the capital and or
incentives necessary to attract new business and encourage existing businesses to stay.
MAJOR INITIATIVES
Initiative: Develop a common strategy and philosophy of economic development by
working in conjunction with the Beacon Council, Greater Miami Chamber
of Commerce and the Greater Miami Convention and Visitors bureau.
Initiative: Focus economic development efforts on retaining and expanding local
businesses.
Initiative: Develop programs which emphasize workforce development.
103
MIAMI • ECONOMIC DEVELOPMENT
,i
CHAPTER Vil
CAPITAL
PLANNING
OF
CHAPTER VII
t. -
r y
CAPITAL PLANNING
OVERVIEW
All government organizations have to prudently manage the acquisition, maintenance,
and replacement of their physical assets. These capital assets have to be available to the
public as needed, in good working order, and, by some set of criteria, be cost-effective for
the City to own and/or operate. As governments have limited resources, they cannot meet
all demands for capital at one time. The purpose of a Capital Improvement process is to
determine how much they can afford to. spend on projects and how that money will be
allocated over time.
Capital Improvement Plans are also an important source of information for individuals
and institutions outside of government. Investors and bond rating agencies stress the value
of responsible Capital Planning for governments seeking to borrow funds. A
comprehensive, well -regulated Plan can reduce the City's interest rates in the bond markets
and can therefore be translated into tangible savings. Non-profit agencies and private
developers also look to the Capital Improvements Plan to influence their own investments
in the City. The more confidence they have in the Capital Improvements Plan, the more
the City may benefit from partnerships with private investment which would help to more
effectively leverage its own funds.
In the City of Miami, capital projects are those capital or in -kind expenditures of at
least $5,000 resulting in the acquisition, improvement, construction, or addition to the
City's fixed assets in the form of land, buildings, or physical improvements to real property
(more or less permanent in nature) and durable equipment with a life expectancy of at least
three (3) years. Examples of items funded by Miami's recent Capital Budgets include the
renovation of fire stations and the purchase of new police cars.
The process by which the City develops and maintains its Capital Improvements Plan
and corresponding Capital Budget is discussed below.
LEGAL FRAMEWORK
Legal framework for the preparation of the City's Capital Improvement Program and
Capital Budget (distinction to be discussed below) is dictated by the City of Miami Code,
Metropolitan Dade County Code, and Florida State Legislatures' Local Government
Comprehensive Planning Act of 1975 (as amended in 1986) and incorporated into the
Florida Statutes as Chapter 163.316.
M IAM I • CAPITAL PLANNING 104
J'1 J,,%6
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.
Appropriations by Major Program
(1995-2001; Total of $432.3 Million)
Physical Environment General Government
($104.0) ($83.1)
24% 19%
Public Facilities
($41.9)
10%
Parks and Recreation
($41.9)
10%
Public Safety ($50.8) Transporation ($86.6)
12% Social and Economic 20%
Environment ($24.0)
6%
Capital Budget appropriations for the last year were fairly balanced among major program
areas.
105
..,
MIAMI 0 CAPITAL PLANNING
C H A P T E R V I I
History of Capital Appropriations By Major Programs
50
40
30
20
10
0
198r
-10
9 1990 1993 1994 1995 1996
Note: In FY88, 89, and 91, the City had to return grants which it had already appropriated due to reporting discrepancies (see section in
text which follows about recent improvements in the administration of grants). Capital Budgets for FY93 and FY94 were collapsed into
one year because of the disruption caused by Hurricane Andrew.
This chart shows periodic, but over time, relatively balanced swings in the funding of
major program areas over the past eight fiscal years within the constraints of the City's
yearly Capital Budget.
106
MIAMI 0 CAPITAL PLANNING
C H APT E R V 1 1
CAPITAL IMPROVEMENTS PLAN
The City's Capital Improvements Plan process has evolved over the last twenty years.
The primary functions of the established planning process are (1) to help select projects that
will have long-term value and (2) to then monitor those projects to ensure that the assets of
the City are protected from loss, theft, misuse or dramatic unauthorized changes from
approved allocations.
Projects become part of the CIP by being submitted to the Office of Capital
Improvements through department heads and project managers around the City. Capital
projects are classified into one of fifteen major subject categories by sponsoring division.
In proposing new capital projects, departments must establish how the project improves the
City's financial condition, is consistent with the City's plans and policies, represents their
department's top priority, coordinates with public and private actions, and is needed to
maintain City service levels. The form to submit projects is comprehensive and tries to
focus on quantifying projects' demonstrable benefits to the City as a whole, the
neighborhood in which the projects is located, and other zones of impact.
As of the latest completed Capital Improvements Plan, grant moneys and other outside
sources of non -General Fund moneys generally by-passed the official planning system. In
future years, the City will try to fold these projects and their sources of revenue into the
overall CIP for more comprehensive planning and oversight of projects. Awareness of
these projects and funds also may allow the City to optimize its resources by providing
matching money and thereby receive more in grants.
In reviewing currently funded capital projects in progress, departments must confirm
the following information on the revenue side:
• their funding sources as allocated;
• their budgets as allocated;
• any cash transferred in to cover expenses; and
• and any remaining revenue budget.
On the expense side, departments must detail:
• their budgets as allocated per authorized department and by amount that they expect
to expense;
• all outstanding encumbrances;
• all payments against outstanding encumbrances;
107
MIAMI 0 CAPITAL PLANNING
C H A P T E R V
• the remaining balance of outstanding encumbrances;
• the remaining balance of budgeted line items; and
• total expenses per department and type.
All of this information is reported back to the Office of Capital Improvements for
regular tracking purposes to be sure that departments do not exceed their allocated budgets
and that the funds promised them are still available.
Currently, in this time of fiscal distress, the Capital Improvements Coordinator and the
City Manager review the list of proposed projects and compile a summary book of plans
that they find of special merit or necessity. Grant moneys are only available for specific
projects and, if their funding is confirmed, these projects may proceed. General Fund
money for Capital Planning is relatively scarce, thus, those projects that are to receive
funds must be of compelling urgency or importance. These two conditions tightly
circumscribe the City's choices and make a more formal process of selection redundant to
implement. In past years, when there was a greater likelihood that proposed capital
projects would receive City funding, there was a more quantitative system to rank
initiatives. In the future, when the City's funding of capital projects increases, the City
may want to return to its earlier method to make its initial selection among project choices.
The appointed Planning and Advisory Committee has final approval of the CIP as
prepared on an annual basis (see below). The first year of the approved CIP then becomes
the basic working document from which the annual Capital Budget is derived.
CAPITAL BUDGET
The Capital Budget represents the funds that the City of Miami is legally allowed to
spend on specific projects. The Capital Budget is reviewed each year and funds are
appropriated for only that fiscal year. Projects move through the process from the CIP to
the Capital Budget by being forwarded on to the appointed Planning and Advisory
Committee. The Committee is empowered to recommend specific projects that should be
funded, to ensure that all neighborhoods of the City are treated fairly, and coordinate such
capital improvement projects that may overlap City resources. For expenditures over
$4,500 the City Commission votes on whether to appropriate money. These funds then
comprise the Capital Budget and can be allocated to projects in process as authorized
expenses are incurred.
108
MIAMI • CAPITAL PLANNING
s
C H A P T E R V 1 1
LINKING THE CIP AND CAPITAL BUDGET
In theory, the CIP should always be completed before that year's Capital Budget is
approved. This will coordinate how the short-term Capital Budget folds into the larger,
long-term plans for the City's needs as outlined by the Capital Improvements Plan. The
overall requirements of each project can be then budgeted for and its timetable for funding
be completed over several years. However, in recent practice, the Capital Budget has been
completed and implemented before the City's CIP has been fully developed. As the City's
Capital Budgets have been getting smaller and are expected to get smaller still (see
commentary in next section on this trend), the generic effect of passing the Capital Budget
before the CIP is to halt or greatly delay funding of some projects that were anticipating
funding in favor of others that have come to management's attention only recently. Passing
the Capital Budget before full development and approval of the CIP reduces the usefulness
of the CIP process and puts management in the position of primarily reacting to short-term
events rather than following long-term strategies. As outlined by the form and process of
these planning devices, the CIP should guide the Capital Budget and not the reverse.
CHALLENGES FOR CAPITAL PLANNING IN THE
CITY'S CURRENT FISCAL ENVIRONMENT
The major challenge facing the City's Capital Planning process will be the lack of
available funds as the City moves to a Pay -As -You -Go system of financing capital projects.
Going forward, capital projects will only be funded by those outside grant sources the City
can locate and a small portion of the General Fund to supplement projects of the utmost
urgency or importance.
120
Actual General Fund Net Appropriations
FY 1982 Through FY 1996
100
3Net Appropriations
80
60
,-
i
40
_``
20
x'
g
O
3..• .ti.. :yt:. :.3 ,ti.5 .,
FY82
FY83
FY84
FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 FY95 FY96
& 94
109
Nam
MIAMI
C H APT E R V I I
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 IMPROVEMENT PLAN
Aggregate City Funds: Bond Funds, General Fund Contribution, and
Unfunded Projects
20,000
18,000 ..::
16,000 =°<. _ Unfunded
Contractual
14,000 - r
Obligation
12,000�:, -
10,000
8.000
6,000 —,'p Qom
$ .
>x General Funds
FY 93/94 FY 95 FY 96 FY 97/98 FY 99
FY 2000 FY 01 FY 02
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
110
MIAMI • CAPITAL PLANNING
CHAPTER V I l l
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.
III
MIAMI 0 CAPITAL PLANNING
C H A P T E R V I I
GUIDELINES FOR CAPITAL PLANNING PROCESS
The City should observe the following guiding principles in the management of its
Capital Improvements Plan:
• Key monitoring systems must be
established to ensure that Capital
Improvement Funds are being used
appropriately.
• All capital projects and acquisitions,
regardless of funding source, should be
controlled and managed through the CIP
process.
• The CIP should be integrated with the_
annual Operating Budget and the City's
Strategic Planning process.
• The City should maximize utilization of
all federal and state revenue sources for
capital improvements.
• The City should develop an adequate
internal source of funding out of its annual
operating budget to replace needed
infrastructure and capital equipment.
• The City should issue debt only for major
capital projects and not try to finance other
parts of the capital program with debt.
• Revenues derived from the sale and lease
of surplus City real properties should be
dedicated to the City's Capital
Improvements Plan or to generating other
re -occurring revenue.
• The City should maximize the use of
current City facilities and should, where
feasible, give higher priority to
maintaining present facilities over new
construction.
• Inflation factors for all projects in the
CIP should be considered each year
and appropriate adjustments made to
all project estimates.
• The CIP section of the Office of
Budget and Management Analysis
should provide the greatest possible
accountability in its management of
the CIP.
• CIP practices and procedures need to
be documented in a manual to allow
for the replacement of key personnel
loss of knowledge for the City.
• FEMA practices and procedures
should be documented into a
procedures manual to allow for
similar replacement of key personnel
without undue financial exposure for
the City.
• CIP data reporting requirements
should be created such that
information can be shared with SCI
and other data bases.
• City Departments should identify the
operating implications of all capital
projects and priority should be given
to those which will result in a
reduction of operating costs.
112
MIAMI 0 CAPITAL PLANNING
CHAPTER Vill
DEBT
MANAGEMENT
M
OF
DEBT MANAGEMENT
OVERVIEW OF POWERS AND PROVISIONS
Debt Management is a vital element to achieving overall fiscal responsibility. Debt
Management is the process by which an operating entity continuously monitors existing
debt, evaluates the impact of issuing additional debt, and establishes procedures for issuing
additional debt. In Miami, the City Treasurer is responsible for the day to day Debt
Management functions. The City Manager and the Assistant City Manager are responsible
for the general oversight performed with the guidance of a Debt Management Policy
(DMP). By implementing and policy issues of the Debt Management process. The process
of Debt Management is best performed a DMP, operating procedures are established and a
financial control mechanism will be set in place.
Currently, there is not an established DMP in effect for the City. In the Blue Ribbon
Task Force draft document, a DMP has been presented which the City Commission is
planning to adopt. Below are several key policies from the document that should be
highlighted:
• The City will not issue debt obligations or use debt proceeds to finance current
operations.
• The City will utilize debt obligations only for capital improvement projects that
cannot be funded from current revenue sources or in such cases wherein it is more
equitable to the users of the projects to finance the project to finance the project
over its useful life.
• The City will issue debt obligations for refinancing existing debt or other
obligations only if financially advantageous or necessary to release existing
covenants under bond documents.
• The City will measure the impact of debt service requirements of outstanding and
proposed debt obligations on single year, five, ten, and twenty year periods. This
analysis will consider debt service maturities and payment patterns as well as the
City's commitment to a pay as you go budgetary capital allocation.
These are sound principals for establishing financial integrity for the future and will be
viewed positively by the investing public in terms of credit perception. Improved credit
perception can lead to lower borrowing cost for the City which can reduce the overall cost
of capital projects and allow the City to take advantage of a myriad of financing and
refinancing alternatives available in the Capital Markets.
MIAMI • DEBT MANAGEMENT 113
� 4
lefr . a
C H A P T E R
V I i I
Since December 1996, when the major credit rating agencies downgraded the City's
debt rating, perceptions concerning the City's credit have been improving. Although the
rating has not changed since the downgrade, Moody's Investors Service elevated the
outlook from negative to stable to positive in a research report dated September 16, 1997.
The main concern remains the City's weak cash position. The City's inability to increase
operating revenues by increasing property taxes has the rating agencies concerned (property
taxes are 96% of the statutory limit of 10 mills). Due to the City's inability to increase tax
revenue, revenue generation is limited to increasing user fees and rates on other financing
sources such as licenses and permits. Unfortunately, these are smaller components of total
revenue, therefore have little impact to top line growth. Therefore, without exploring other
opportunities, the only way to improve the General Fund balance is by reducing
expenditures or by increasing new revenue sources.
Concerns about the City's credit are justified, but Moody's has pointed out three factors
which bode well for the City's future prospects and warrant the positive outlook:
1. A growing economic base- The City is a key business center for Latin American
trade.
2. Strong fiscal oversight- Along with the Oversight Board, the City's new Senior
management team has been instrumental in closing the fiscal 1997 budget gap.
3. Enhanced security provisions for all outstanding debt- Although the city has
never missed a debt service payment, cash flow concerns prompted the City to
institute an Escrow agreement with a Trustee on all of its debt (including general
obligation debt) to help ensure timely payment of debt service. This agreement is to
remain in place for three years.
Although the outlook is positive, improving the credit rating of the City will be
contingent upon successful implementation of a recovery plan.
114
MIAMI • DEBT MANAGEMENT
CHAPTER
V 1 1 I
DESCRIPTION OF CURRENT INDEBTEDNESS
The City of Miami has three forms of debt outstanding:
1. General Obligation - General Obligation debt is secured by property taxes and
pledges the full faith, credit and taxing power of the City.
2. Appropriated - Debt service payments for appropriated debt is subject to @Lnnual
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.
Allocation of Indebtedness
Specific Pledge
Revenue General Obligation
18% 32%
Appropriation
50% 4i 0
115
M I AM I • D EBT MANAGEM E HT
CHAPTER
V 1 1 1
of Miami Indebted,
As of September 30, 1997
Form of Debt Outstanding Principal Final Maturity Call Date
GENERAL OBLIGATION
Series 1977 B
3,820,000
12/1/98
N/C
Series 1978
2,145,000
12/1/07
N/C
Series 1981
4,285,000
8/1/11
Currently Callable
Series 1985
1,660,000
4/1/98
Currently Callable
Series 1988
1,485,000
ll/l/98
N/C
Series 1989 Refunding
2,280,000
4/l/99
N/C
Series 1991Ref ending
10,865,000
5/1/13
511101 @ 102%
Series 1991
1,695,000
7/1/01
N/C
Series 1992
9,100,000
8/1/17
8/l/02 @ 100%
Series 1992 Refunding
- 66,175,000
12/1/13
12/1/02 @ 100%
Series 1993 Refunding
31,010,000
7/1/13
7/l/03 @ 102%
Series 1995
22,500,000
111115
l/l/03 @ 101%
Total General Obligation Debt:
$157,020,000
APPROPRIATION
Series 1995 Revenue -Taxable Pension
71,250,000
12/1/25
12/1/06 @ 102%
Series 1994 Revenue
16,285,000
9/1/14
9/1/03 @ 102%
Series 1995 A Special Obligation
22,000,000
12/1/25
8/1/05 @ 102%
Series 1995 B Special Obligation
71,250,000
2/l/25
1211/06 @ 102%
Sunshine State Government 1988
21,161,900
111115
N/C
Sunshine State Government 1994
8,590,000
1/1/14
N/C
Sunshine State Government 1995 A
3,300,000
7/1/12
N/C
Sunshine State Government 1995 B
29,370,000
l/1/25
N/C
Total Appropriation Debt:
$243,206,900
SPECIFIC PLEDGED REVENUE
Series 1986 A Special Obligation
2,630,000
7/1/06
10/1/98 @ 100%
Series 1987 Special Obligation
42,311,325
7/1/12
1/1/98 @ 100%
Series 1988 Special Obligation
30,000,000
7/1/19
N/C
Series 1989 Special Obligation
4,845,000
7/l/09
7/l/99 @ 102%
Series 1990 Community Redevelopment
3,405,000
1011115
10/1100 @ 104%
Dept of HUD, S/E Overtown
5,100,000
7/1/09
N/C
Dept of HUD, Citadel Project
2,500,000
8/1/04
N/C
Total Specific Pledged Revenue Debt:
$90,791,325
TOTAL INDEBTEDNESS
$491,018,225
116
M 1 A M 1 9 D EBT MANAG E MEN T
C H A P T E R
V 1 1 I
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)
$25
N Principal
$20 ■ Interest
0
G
$15
jwhjhh�
$10
G
$5
$0
00 CT, O tr0 ) ��, n 0m
o 0 O N rrJ �fl CG 1�
C- Cn 0 0 _ 0 0 0 0 0
0 0 - 0 0 0 0 0 0 o c o 0 0 0
Operating Year
117
MIAMI • DEBT MANAGEMENT
F-;
; c i Ij
OUTSTANDING GENERAL OBLIGATION DEBT
The chart is arranged chronologically from left to right. New
money issues are set along the bottom row and refunding bonds
setinthe rows above, depicting successive refundings.
Bond issue with all maturities either paid off or
Q refunded
Bonds with some or all maturities still outstanding
ODescription 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
Saliealost
SatleaI*ftob
RaNndip, �
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f16,135,tg0
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Public Padca3Rec.
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Dated 10I1t/Y
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M1.4_M1 • DEBT MANAGEMENT 118
yy
C H A P T E R
V 1 I I
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.
Other Capital Projects
For various capital needs like building improvements, land acquisition and public
improvements the City borrows money to fund the cost. To date, the city has either
borrowed with a direct bond issue (Special Obligation Bonds -Non -Ad Valorem ) or
through the Sunshine State Governmental Financing Commission. The Commission was
created in November 1985, by the Cities of Orlando and Tallahassee, Florida through an
inter -local agreement, as a pooled financing vehicle to allow for a limited number of high
quality local governmental units to join together in a variable rate financing program and
thereby benefit from the inherent economies of scale.
Specific Pledged Revenue
Convention Center Complex Revenue Bonds
The City issued bonds to fund the acquisition of land and construction of the City of
Miami/University of Miami James L. Knight International Center and an appurtenant
parking garage. The Convention Center Bonds are collateralized by a pledge of the net
revenues of the Convention Center (including revenues from the parking garage), certain
public service tax revenues and certain other moneys.
M IAM I • D EBT MANAG E M ENT 119
C H A P T E R
V I 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.
120
MIAMI • DEBT MANAGEMENT
C H A P T E R
V I I 1
MAJOR INITIATIVES
The City believes that many of the Initiatives developed in the past year are sound
ideas. Below are some of the initiatives that are being implemented or that should be
highlighted.
• The City plans to implement the Debt Management Policy in the Blue Ribbon Task
Force. The policy is awaiting approval from the City Commission.
• The City's Current Ratio (Non -Ad Valorem Revenue/Maximum Annual Aggregate
Debt Service), a liquidity measure, is approximately 5.6 times. The City has a goal
of increasing the ratio to 10 times. This will enhance the City's liquidity and
financial flexibility.
• The City should look for escrow restructuring opportunities to potentially enhance
its cash position.
121
MIAMI • DEBT MANAGEMENT
CHAPTER I X
CASH
MANAGEMENT
on
CASH MANAGEMENT
OVERVIEW
Cash management is a tool utilized by governments, businesses and others to ensure
that excess cash is always put to its most effective use. Usually, this means investing the
funds in securities that mature when the entity needs the cash while at the same time
creating maximum investment earnings with little to no risk to the entities capital.. Cash
management is an important part of an entities operating budget as it provides a method of
producing additional funds for the entity to use for funding its operations. While entities
generally have numerous sources of funds to invest, cash management generally applies to
the investment of short term funds. For purposes of this report short term funds will be
defined as those funds which are not immediately needed for payroll, current year debt
service or current year capital improvement projects. The remainder of this section will
focus on how the City of Miami's cash management program is structured, how it operates
and who is responsible for administering the program.
CASH MANAGEMENT OPERATIONS
As mentioned earlier, short term expenditures are defined as all daily operating
expenditures excluding payroll and debt service. For short term expenditures, the City
maintains an overnight funds sweep program collateralized by "full faith and credit"
instruments of the US Government and its agencies, with the City designated as the
collateral beneficiary.
In choosing which investments to make, the City has established the following
investment objectives, in order of importance: (1) safety of capital, (2) liquidity of capital
and (3) return on capital. While investment returns are important and can make a
significant contribution to the City's operations and capital projects, safety and liquidity, in
that order, take precedence over investment return. Therefore, every effort is made to
select the most advantageous investment vehicle and term of investment to maximize
earnings.
The Treasury Manager within the Finance Department has been designated as the
individual responsible for managing the City's cash management program. The Treasury
Department is currently staffed with three individuals including the Treasury Manager who
are responsible for overseeing approximately $60 million on an average daily basis. The
City currently uses First Union bank and one main account for all of its depository needs.
Account balances of collections and check clearings are electronically received from First
Union each morning. Based on the electronic information of paid items and clearing
patterns of the checks which are presented, funds are transferred to cover disbursement
needs for the day. Funds not needed to cover paid items are pooled and invested in
M IAMI • CASH MANAGEMENT 122
C H APT 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
Department.
Process of
Investing
Short -Term
Funds
Main
Depository
Account
Main
Operating
Account
Accounts Working
Payable Capital CIP Account
Account Account
Excess Funds
Invested
The City's funds are invested conservatively in obligations of the federal government or
instruments secured by obligations of the federal government. As of October 8, 1997 the
City's investment portfolio was approximately $67 million of which 90% was invested in
agency securities and 10% was invested in commercial paper. In addition, the majority of
the portfolio (76%) was in the 31-90 day maturity range. Graphs of the City's investments
by type of security and the maturity range are provided below.
Investments By Type
(As of October 8,1997)
Commercial Par
($7,000,000)
10%
Treasury and
Agency Securities
),000,000)
90%
123
MIAMI 0 CASH MANAGEMENT
C H APT E R I X
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) J'
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.
124
MIAMI 0 CASH MANAGEMENT
e
C H APT E R I 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.
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
125
MIAMI 0 CASH MANAGEMENT
C H A P T E R I X
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 %
Maximum % of of Combined
Portfolio Asset Group
1 100% 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 MutuallTrust Funds (5)
N/A
100%
100%
Fixed Income Mutual Funds (6)
N/A
25%
25%
Externally Managed Funds (7)
3-7 Years
1 20%
1 20%
Interest Rate Swap Agreements (8)
1 N/A
1 10%
1 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) MutuaVTrust 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.
126
MIAMI • CASH MANAGEMENT
V.1 r ;:0 J QY
C H A P T E R I X
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
Short Selling
1 Partnerships
Security
Wells
Floater
HISTORICAL PERSPECTIVE
The City of Miami employs a "pooled cash" concept under which cash from all funds is
collected and disbursed from co -mingled cash accounts regardless of where the cash was
originally sourced. This approach was established in lieu of maintaining separate and
distinct bank accounts for each fund. It not only simplified the City's approach to its cash
management operations, but it also offered the City an opportunity to maximize its
investment earnings as a result of having a larger investment portfolio.
While this approach is standard among governmental entities, there is a discipline
required in such an environment to insure that funds are not spent simply because pooled n.
cash is available. To do so results in the functional equivalence of inter -fund borrowings,
which may not be proper. Such transactions are manifested as negative "equity positions in
pooled cash positions" by the individual funds in the pooled cash account.
At a minimum, the discipline called for in such an environment must include monthly
monitoring of negative equity in pooled cash. Moreover, if this situation persists for more
than 30 days it must be make known to the City Manager or his designee. In addition, if a
policy decision is made to allow the situation to exist, high level approval must be obtained
and plans/projections for subsequent repayment or correction must be developed.
Prior to its fiscal emergency, the City of Miami operated using a pooled cash concept,
but without paying close attention to negative equity positions in pooled cash. However,
with the elimination of almost all of its enterprise funds and their subsequent collapse into
the General Fund, the City has nearly eliminated the need for inter -fund borrowings.
127
LM
MIAMI 0 CASH MANAGEMENT
C H A P T E R I X
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.
128
MIAMI • CASH MANAGEMENT
G
` t i 0 �9 tU
APPENDIX A
RECOMMENDATIONS
INDEX
City of Miami
Management and Productivity Initiatives
,real strategic planning should be immediately reinstated as part of the
ty of Miami's organizational structure. Develop the structure and process 1
sustain long-range strategic planning for the City.
ie City should complete the first strategic plan within a four -to -six month
to period after convening team (to link to next year's operating and capital SFRPC 5 Year Plan
dgets) 2 Review Pages 3,4
4/30/97
Engage a professional fine 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 3 TabF/Page 10
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, 4
the business community, media and location services.
Address ways to increase public investment in development in the City
through the strategic planning effort SFRPC 5 Year Plan
Review Page 2
4/30/97
ategic plan should include an Intergovernmental Coordination Element,
the City must coordinate development with a number of external
Actively pursue the input of the business community by inviting
representatives to assist in the development of the Strategic Economic
Development Plan, the new Comprehensive Plan and the revised Land
Development Regulations.
Determine the appropriate role of the Beacon Council in the planning
process.
a forum for resolving resource allocation issues to align all major
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.
Revise the plan to ensure that the actions of OBM are consistent with the
strategic plan by changing "should" to "will" in its discussion regarding
internal control and production of revenue manual.
Plan to accomplish provisions of the Intergovernmental Agreement should
include specific tasks to be completed and timelines to be met
should include reduction of expenditures, improvement of productivity,
ases in managerial and operational accountability, improvement of
d keeping practices and a schedule of projected capital commitments.
City of Miami - Office of Bw/ger
SFRPC 5 Year Plan
Review Page 3
4130197
SFRPC 5 Year Plan
Review Page 5
4/30/97
SFRPC 5 Year Plan
Review Page 5
4/30197
5
s's€
f
6
1 of 35
SFRPC 5 Year Plan
Review Page 9
4/30/97
SFRPC 5 Year Plan
Review Page 2
4/30/97
SFRPC 5 Year Plan
Review Page 2
4/30197
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Internal Control Factor
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
i
1:51 PM/2116197inifiariws Xmfemnw /2-I9-97x/s
City of Miami
Management and Productivity Initiatives
amSss Factors -Limited monitoring of departmental budgets is 8 Tab B/Page 2 Internal Control Factor
Strategic Planning to Operating and Capital Budgets 7 Internal Control Factor
Integrate the Capital Improvement planning and asset management
SFRPC 5 Year Plan
Review Page 11
Efficiency Improvement
functions using team approach under the coordination of the office of Asset
4130197
Management
Prepare all budgets after the annual strategic planning process has been
completed.
7a
Efficiency Improvement
Merge budget and operating plans into one document
7b
Internal Control Factor
Critical Success Factors -Each department should be required to prepare a
business planning cycle
7b
Tab B/Page 2 Efficiency Improvement
Submit capital and operating budgets simultaneously and integrate them in
terms of goals and purpose.
7t
Internal Control Factor
Set capital and operating budget horizons to be consistent with strategic
7d
goals.
Internal Control Factor
Special attention and direction should be provided on how the City
anticipates utilizing the Capital Improvements Program (CIP) as a
SFRPC 5 Year Plan
management tool to maintain and improve infrastructure.
Review Page 3
Efficiency Improvement
4130197
Include provisions in the goals and polities of comprehensive plan for
better monitoring of infrastructure that is controlled by agencies other than SFRPC 5 Year Plan
the City. Review Page 3 Efficiency Improvement
4/30/97
Incorporate contingency planning into budgets. 7e Internal Control Factor
The Capital Improvement planning guidelines should contain a requirement
to annually update the City's Capital Improvement Element of the
SFRPC C.
Comprehensive Plan pursuant to Section 163.3177 (3) (a), Florida
Dekle Memo Internal Control Factor
Stalutes.
dated 11/13/97
Ensure that the economic planning and LDR update efforts are closely
synchronized especially in the areas of capital improvements and
SFRPC 5 Year Plan
monitoring using the City's Comprehensive Neighborhood Plan as the
Review Pear 4 Internal Control Factor
master policy document
4/30/97
Include periodic evaluation and monitoring of Comprehensive Plan policies
and programs and the land development code.
SFRPC 5 Year Plan
Review Page 4 Internal Control Factor
4/30/97
Require managers to demonstrate how proposed projects are in line with
the City's strategic plan. This can be done in the forth of a cost/benefit
analysis that measures the expenditure of resources against the 7f Internal Control Factor
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 SFRPC 5 Year Plan
how to adopt a more progressive organization structure. 8 Review Page 7 Efficiency Improvement
4130/97
Office of Professional Compliance -The Office of Professional Compliance
should be removed from the department 8
Tab B/Page 8 Efficiency Improvement
Office of Professional Compliance -Consideration should be given to
incorporating this function within the Police Department organization, �g
Tab B/Page 8 Efficiency Improvement
= reporting directly to the Police Chief
City Ofmi—i - Offire 00_dger 2 of 35
1:52 PM12/26197inidadws Xreferenee 1249-97als
,.. City of Miami
Management and Productivity Initiatives
of Professional Compliance -A review of other local jurisdictions of
size should be conducted to determine, if there is a need for a 8 Tab B/Page 8
rte review function, how it is typically organized
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.
g TabK/Page 12
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Survey to determine perceived and actual departmental shortfalls in
staffing. Each department must justify the tasks to be performed that cannot
10
Efficiency Improvement
be completed at current staff levels.
The City should perform a mgmnL/operations study of the finance dept
This study should encompass an extensive analysis to evaluate
10
Page 1 Efficiency Improvement
qualifications and the work loads of the staff to det and staff need to expand
and / or reassign tasks where appropriate.
Critical Success Factors -'Selectively review and waive hiring freeze of
10
Tab B/Page 1 Efficiency Improvement
positions
Information Technology Division (IT) -Positions should be created and
funded to bring to City appropriately skilled staff to maintain City in today's
10
Tab B/Page 6 Efficiency Improvement
technology environment
Immediately conduct a planning study of office space to determine if office
requirements can be met through rearrangement of existing space vs.
11
Cost Savings
leasing new space.
Consider placing Risk Management under the Assistant City Manager of
Efficiency Improvement
Finance and Administration to consolidate similar functions.
12
acing Procurement under the Assistant City Manager of
to enhance customer service orientation and efficiency. 13 Efficiency Improvement
ontinue with current plans to transfer some fleet responsibilities from the
ire and Police Departments. 14 Cost Savings
eet Management Task Force -Strongly recommended that the services
srformed at General Services Administration, Miami Police and the Miami
ire Departments be consolidated Terminate the current Police take-home 14 TabD/Page 3 Cost Savings
71icy
olid Waste Management -A better sharing of overhead cost could be made 14 TabK/Page 12 Cost Savings
all Fleet maintenance operations in the City were consolidated
responsibilities for other key maintenance to GSA Is
Efficiency Improvement
The City needs to adopt appropriate policies and procedures to assure that
16 Efficiency Improvement
good business practices are followed
.
Fleet Management Task Force -Need to optimize the layout and work flow 16 TabD/Attachment III/Page 7 Efficiency Improvement
processes of the physical plant
Fleet Management Task Force -Car assignments should be reallocated on 16 TabD/Attachment III/Page 1 Efficiency Improvement
the basis of shift size and duty assignment
Fleet Management Task Force-Vehide service life should be extended from 16 TabD/Attachment I11/13age 1 Cost Savings
5 years and/or 75,0D0 miles to 6 years and/or 100,000 miles
Fleet Management Task Force -All surplus cars to the City's needs, or ready
for retirement, should be auctioned off instead of donated to a sister city or 16 TabD/Attachment III/Page 1 Revenue Enhancement
any other entity
City oJMami - Office ofBudgcl 3 4f 35 1:51 PM11/26197iniha1ives XmJerence 11-19-97s/s
I
City of Miami
Management and Productivity Initiatives
Health Insurance Task Force -Form 5500 for each benefit where form is
required should be examined by Benefits, Human Resources/Labor
16
TabE/Page 3
Internal Control Factor
Relations and Finance Departments before being submitted to the IRS
f
Health Insurance Task Force -A sense of urgency coupled with
empowerment and responsibility should be developed within the Benefits
16
TabFJPage 4
Efficiency Improvement
Office operating as a component of HR
Opportunities Task Force -Should be funding a portion of the future benefits
being eamed by current employees on post -employment health care
16
TabK/Page 2
1=fficiency Improvement
benefits
I Opportunities Task Force -Necessary to complete a long term financial
morkout plan including a one -to -two year short-term plan
16
TabK/Page 2
Efficiency Improvement
Opportunities Task Force -Workout plan should be designed to immediately
improve the operating cash flow through significant revenue increases and
16
TabK/Page 2
Efficiency Improvement
expenditure reductions
Opportunities Task Force -Long-range workout plan should consider
partially eliminating accumulated deficits through sale of real estate,
16
TabK1Page 2
Cost Savings
refinancing debt 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
Internal Control Factor
Opportunities Task Force -Increase enforcement efforts to reduce the level
of illegal dumping within the City which is required to be cleaned up by
16
TabK/Page 4
Intemal Control Factor
Solid Waste
Opportunities Task Force -Increase efforts to audit or otherwise verify that
the City is receiving the full amount due from franchise revenues from
16
TabK/Page 4
Internal Control Factor .tir Aw
commercial 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 Internal Control Factor
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
I 16 I
I 'TabK/Page 5
Revenue Enhancement
recurring revenues on the New Miami Arena parcel
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 or by a
16
SFRPC 5 Year Plan
Review Page 2 TabK/Page 5
Cost Savings
government
4�097
private enterprise
Opportunities Task Force -A complete listing of all the City's account
receivable balances should be compiled including revenues recorded in the
16
TabK/Page 6
Internal Control Factor
accounting 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
Internal Control Factor
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
Internal Control Factor
other local governments and private enterprises for similar services
Opportunities Task Force -Rates should be adjusted to ensure service users
—7TabK/Page
are paying the associated costs and to provide a return to the City which is
16
6
Revenue Enhancement
appropriate
Opportunities Task Force -Formal policies should be adopted regarding
when waiver of user charges are to be granted
16
TabK/Page 6
Revenue Enhancement
V Opportunities Task Force -Steps should be taken immediately to reduce or
Zx�^r. 16 TabK/Pa e 6 Cost Savings
r eliminate the financial burden associated with ownership of James L. Knigh g 8
,�,:
r-}; , � Center and Parking Garage and the Coconut Grove Exhibition Center
CiryofMl mi-Office ofBirlget 4of3S1:51PM11/16197initialivesXreference11-19-97.xis
City of Miami
Management and Productivity Initiatives
SFRPC 5 Year Plan
Review Page 2,5 Revenue Enhancement
Complete negotiations with the Florida Dept of Community Affairs and 4/30197
enact the proposed Chapter 163, F.S. and Miami Downtown Agreement.
SFRPC 5 Year Plan
Review Page 2, 5
Revenue Enhancement
Public/Private developments should include estimates of needed capital
4r30/g7
improvements or revenues generated by the new growth.
Cost of Solid Waste Operations -Can save fleet operating costs as well as
16
TabK/Page 9
Cost Savings
crew time in Solid Waste by utilizing dose -by Regional Transfer Stations
Cost of Solid Waste Operations -May be able to accomplish significant
savings if few loads per day could be directed directly to the disposal site
16
TabK/Page 9
Cost Savings
with the remainder going to the transfer station
Cost of Solid Waste OperaboisShould have a more detailed evaluation of
16
TabK/Page 9
Internal Control Factor
its use of transfer stations
Cost of Solid Waste Operations -The City appears to lag in its vehide
16
TabK/Page 10
Efficiency Improvement
replacement plan in Solid Waste
Cost of Solid Waste Operations -Solid Waste costs should incorporate
administrative costs directly related to billing, induct ng mailing costs, stall
16
TabK/Page 10
Internal Control Factor
support and computer processing and disk space charges
Cost of Solid Waste Operations -The street sweeping component should be
---]
16
Tabl(/Page 11
Efficiency Improvement
independently reviewed by the Metro -Dade Department of Public Works
Cost of Solid Waste Operations -Savings may be gained through reducing
16
TabK/Page 11
Cost Savings
disposal and operating cost by elimination or reduction of the weekly trash
sweeps and by eliminating free service to City Departments
Cost of Solid Waste Operations -Additional savings may also be gained by
16
TabK/Page 11
Cost Savings
billing annually
Solid Waste Management -Lack of a consistent fleet replacement program
16
TabK/Page 12
Efficiency Improvement
will eventually cause a problem
Solid Waste Management -Service levels for trash pickup, bulky waste,
16
TabK/Page 12
Internal Control Facto
white goods and illegal dumping are incredibly high
Solid Waste Management -A need for enforcement is obvious
16
TabK/Page 12
Internal Control Factor
Solid Waste Management -Street sweeping and special events should have
their own cost and revenue centers, and be setlsufficient financially, and
16
TabK/Page 12
Internal Control Factor
avoid being subsidized by the waste fee
Solid Waste Management -The waste fee itself is insufficient
16
TabK/Page 13
Revenue Enhancement
Solid Waste Management -Should not donate retired equipment but should
sell it and revenues from sales should be deposited in a Capital
16
TabK/Page 13
Revenue Enhancement
Replacement Fund
Revenue Enhancements -Eliminate park user fee waivers
16
TabM/Page 3
Revenue Enhancement
Revenue Enhancements -increase park userfees when appropriate
16
TabMfPage 3
Revenue Enhancement
Revenue Enhancements -Develop a park marketing program to enhance
16
TabM/Page 3
Revenue Enhancement
revenues (e)dsting and new)
Revenue Enhancements -Establish a process to credit the Parks and
16
TabM/Page 3
Revenue Enhancement
Recreation Dept. for existing and new revenues generated by the parks
Revenue Enhancements -Review concession permits/revenues (inducting
. mobile vendors) 16 TabM/Page 3 Revenue Enhancement
City of"ta-i - Office ofBwlget 5 of 35 1:51 PM12126197initiatims Xmfemnce 12-19-97.xis
City of Miami
Management and Productivity Initiatives
Revenue Enhancements-Review/simplify process to obtain Grants
(Federal, State, Private)
16
TabM/Page 3
Revenue Enhancement
Organization/Structure Improvements -Conduct a cost/benefit analysis of
recent transfer of the Park Maintenance Department to the Public Works
16
TabM/Page 3
Efficiency Improvement
Department
Operating Practices -Establish a "bottom-up"iparticipatory budget
preparation and monitoring system
16
TabM/Page 4
Efficiency Improvement
Operating Practices -Develop an operating manual for Parks and Recreatio
facilities/employees
16
TabM/Page 4
Efficiency Improvement
Operating Practices -Develop a procedure for processing/priorifizing work
orders
16
TabM/Page 4
Efficiency Improvement
Operating Practices -Develop a formal vehicle maintenance and
replacement program
16
TabM/Page 4
Efficiency Improvement
A code of conduct needs to be developed and signed by all employees.
17
Efficiency Improvement
Integrate Benchmarking, performance measures and management by
16
objectives into all work operations.
Efficiency Improvement
Critical Success Factors -Finance and Internal Audit staff must be held
accountable and departmental objectives and metrics to measure the 18
Tab B/Page 1 Internal Control Factor
agreed upon objectives must be established.
Fleet Management Task Force -Establish productivity and job standards 18
TabD/Page 6 Internal Control Factor
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
Efficiency Improvement
performance.
All City departments should be formally trained on benchmarking and
performance measures. 20 Efficiency Improvement
Periodic reports on significant benchmarks and performance should be
made a part of the City Administration's report to the Commission and the 21 Internal Control Factor
citizens.
Information Technology Division (IT)•A formal tracking mechanism should
be developed to create measurability of performance 21 Tab B/Page 6 Efficiency Improvement
Make sure each major work function significantly improves the productivity
of the function. This action plan should be incorporated into each 22 Efficiency Improvement
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. 23 Efficiency Improvement
t; r . P� 1 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 Cost Savings
;s b; . industry standards.
'•i. g t' *t- -,!Contract with a consultant to conduct a sourcing study with priority on fleet ,lA :-
25 Efficiency Improvement
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 Cost Savings
Ciry ofMrami - Office afBudger 6 of 35 1:51 PM12.116197iniiativea Xmfcmnre 11-/9-97z/s
City 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
27
Cost Savings
substantial improvements in efficiency, quality and cost by adopting the
recommended approach.
Work with private industry for guidance and advice on sourcing decisions.
28
Efficiency Improvement
Director of GSA should develop a schedule for sourcing implementation.
29
Efficiency Improvement
Fill middle management positions that will not be affected by outsourcing.
30
Efficiency Improvement
Institute appropriate contract administration and evaluation procedures with
31
Internal Control Factor
respect to out -sourced functions.
Increase operational efficiency and expedite development permit process
32
Efficiency Improvement
as follows:
w,
Review, improve and streamline all land use related application fortes.
32a
Efficiency Improvement
Create a system that is proied driven rather than permit driven.
32b
Efficiency Improvement
FA
Institute a more effective use of technology.
32c
Efficiency Improvement
Develop perfornance measures that target improving the service and
33
Cost Savings
reducing the cost of these functions.
Correlate funding of Department with performance measures and
MEfficiency
objectives.
34
Improvement
8 Revisit staffing qualifications. Technical expertise and experience are
35
Efficiency Improvement
critical to efficiency and customer service.
a;
Review compensation and benefits in light of the rest of the City and within
36
Efficiency Improvement
the overall reorganization plan.
to and
Review Departments reporting relationship strengthen oversight
3T
Efficiency Improvement
effectively monitor customer service.
Improve relationship and coordination with Dade County to expedite the
38
Efficiency Improvement
permitting process.
Expedite non -controversial items supported by staff.
39
Efficiency Improvement
:V Request that the County appoint one person to expedite processing of
Efficiency Improvement
necessary county approvals of City permit applications.
40
,,,Centralize and simplify the process of applying for land development
41
Efficiency Improvement
changes, including master plan changes.
g Seek vehicle for developing publidprivate partnerships for development
42
Efficiency Improvement
and redevelopment
Seek public input on the City Charter to improve the land lease process and
',xfee structure, including cost of appeals.
43
Efficiency Improvement
r Develop city-wide design and landscape standards.
44
Efficiency Improvement
w v Identi and communicate to staff and public the mission of code
4' enforcement Should be considered part of developmenUredevelopment 45 Efficiency Improvement
,-;policy rather than punitive.
City ofMami - Office ofBudgci 7 of 35 1:52 PM1212b/97inifiarivesXmjemnce 12-19-97xis
City of Miami
Management and Productivity Initiatives
Identify specific 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 47
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. 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 50
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. S1
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 rg
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.
55
This would be for the entire City, and n
Enhance the City's Intergovernmental coordination efforts by increasing
the level of communications and involvement with outside agencies on
shared issues such as redevelopment.
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
56
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.
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-
57
competitive 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.
SFRPC 5 YearPlan
Review Page 2
4130197
Efficiency Improvement
Efficiency Improvement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Revenue Enhancement `
Revenue Enhancement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Revenue Enhancement
Revenue Enhancement I
Revenue Enhancement
OVojMami-Of%ice gfBudger 8 of35
1:52 PM12126197initiatives Xmference 11-19-97.xis
City of Miami
Management and Productivity Initiatives
land use in the DowntownBrickell core to provide for mid -rise office
60
organizational criteria in the Five Year Plan should be applied to lower
Is of the City organization. 61
at Management Division -Placement of Task Force positions within the 61 Tab B/Page 4
Offices should be investigated as an option
at Management Division -Grant coordination should be strengthened. I 61 I I ITab B/Page 4
irement Management Division -Oversight and related policies of the 61 Tab B/Page 4
irement Division should be strengthened
and broaden the role of Internal Auditor, including: 62
operational auditing to ensure that approved policies and
62a
are being followed.
Review of travel and expense accounts of the commission and senior
management in accordance with predetermined objective criteria. 62b
g' 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
tl-
Reconciliations of the City's cash accounts should be performed monthly.
>??; These reconciliations should be prepared in a standardized format
63 Page 1
designed by the City. All reconciling items should be fully investigated,
explained and supported.
All reconciling items should be appropriately invesbgated and resolved on a
timely basis. In addition, the finance dept. should exercise prudent
63 Page 4
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
63 Page 5
scheduling of inventory taking and the ID of controls needed to ensure an
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
q_s should be utilized;
'The fixed asset subsidiary ledger should be updated throughout the year as
63 Page 6
fixed assets are acquired or disposed.
�Fzx
Periodic inventories should be taken to verify the continued existence of they
`r fixed assets. Any unlocated items should be appropriately investigated. I
63 I Page 6
14 The fixed asset subsidiary ledger should be reconciled to the general
63 Page 6
ledger, at a minimum, on a quarterly baSi s.
=,,-The City should assign the responsibility of maintaining its general fixed
assets to an individual.
63 Page 5
%`•;FAA
n FThe City should implement the following to improve its account receivable
63 Page 6
process:
Revenue Enhancement
Efficiency Improvement
Efficiency Improvement
Internal Control Factor
Internal Control Factor
Efficiency Improvement
Internal Control Factor
Internal Control Factor
Internal Control Factor
Efficiency Improvement
Internal Control Factor
Internal Control Factor
Internal Control Factor
Internal Control Factor
Internal Control Factor
Internal Control Factor
Internal Control Factor
Internal Control Factor
I Internal CeontrR[factor
1:32 PM12126197iniriadws Xreference 12-19-97.x&
City ofAflmd - Office oJBudger 9 of 35
City of Miami
Management and Productivity Initiatives
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 Internal Control Factor
The accounts receivable general ledger control balance should be
supported by an appropriate level of detail that provides management with 63 Page 8 Internal Control Factor
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.
63
Page 8
Internal Control Factor
z
:• 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
63
Page 8
Internal Control Factor
including formal loan agreement
The City should create the position of Grants Administrator. Individual
SFRPC 5 Year Plan
n would be responsible for ensuring that claims for reimbursement are filed
property, in a timely manner, and in accordance with grant guidelines.
63 Review Page 5
Page 10
Internal Control Factor
4/30197
7
The administrator would also be responsible for coordinating and
i monitoring the City's compliance with requirements applicable to federal
63
Page 10
Internal Control Factor
and state financial assistance programs.
R
t This individual would also assist in identifying additional federal and state
63
Page
programs that may be available to the City.
10
Internal Control Factor
City should designate a person to monitor the activities of the contractor to
ensure proper adherence to the requirements of the Relocation Assistance
63
Page N
Internal Control Fodor
and Real Property Acquisition Policies Act
IThe City should implement the reconciliation of detailed subsidiary records
�Ri to the general ledger, at a minimum, on a monthly basis. Reconciliation 63 Page 12 Internal Control Factor
Should be reviewed by supervisory personnel.
�y In preparing monthly reports, the following should be considered: 63 Page 13 Internal Control Factor
va
Proper cutoff procedures should be implemented to facilitate for the proper
recognition of revenue and expenditures. 63 Page 13 Internal Control Factor
�tt
Standard journal entries should be assigned to specific staff accountants.
J All journal entries should then be approved by the finance director, or
general ledger supervisor prior to input into the general ledger system. 63 page 13 Internal Control Factor
The subsidiary ledgers should be reconciled to the respective general
ledger balances. 63 Page 13 Internal Control Factor
�I•:,
All standard dosing procedures should be written and be incorporated into
the City's Accounting and Procedures Manual and made available to the
63
Page 13
Internal Control Factor
accounting staff.
-,: The City should implement financial function, including
a reporting the
ri appointment of an individual who will be responsible for compiling and
,
drafting the annual general purpose financial statements and other required
63
Page 15
Internal Control Factor
>$ reports.
4K R
The City should financial
purchase a computerized reporting package that
can be integrated with the City's current general ledger system. This
4" �'•'•�, system should be configured to produce the City's general purpose
63
Page 15
Internal Control Factor
vFstatements.
..,• - ;y
t ?; An in depth manual of accounting policies and procedures should be
Hprepared which, at a minimum should include:
63
Page 16
Efficiency Improvement
.a
City ofA-rlami - Office of Budget 10 of 35
1:52 PMI2126197initiadws Xmfemnm /2-I9-97.xfs
City of Miami
Management and Productivity Initiatives
A chart of accounts containing an adequate explanation of account
63
Page 16
Efficiency Improvement
purpose, use and content
Documentary flowcharts of significant accounting systems, including their
63
Page 16
Efficiency Improvement
interrelationship, where applicable, with other departments within the City.
A list of standard forms used in the City with detailed explanations of their
63
Page 16
Efficiency Improvement
purpose and preparation.
t
A list of data processing reports, including appropriate descriptions of
63
Page 16
Efficiency Improvement
source, content, production frequency and purpose.
A list of standard and other joumal vouchers with sufficient explanation of
63
Page 16
Efficiency Improvement
their purpose.
•' Appropriate descriptions of all financial policies and accounting procedures
Efficiency Improvement
and routines regarding, but not necessarily limited to the following: 1
63
Page 16
Monthly review of intemally generated reports which may vary in complexity
from a simple scan of transactions to detailed analysis or reconciliation.
63
Page 16
Efficiency Improvement
Policies related to cash which would include preparation of bank
reconciliations, controls over cash disbursements and rash receipts, and
63
Page 16
Efficiency Improvement
procedures regarding the investment of excess cash on hand.
Purchase and capitalization of fixed assets and related procedures for
63
Page 16
Efficiency Improvement
computation of depreciation thereon.
Doubtful accounts and related bad debt write offs.
63
Page 16
Efficiency Improvement
Lease obligations and related capitalization policies.
63
Page 16
Efficiency Improvement
2;q
yam.
Policies related to the recognition of revenue and expenditures with
63
Page 16
Efficiency Improvement
,• particular attention paid to year-end cutoff procedures.
The assignment of accounting responsibilities and expenditure approval
`
63
Page 16
Efficiency Improvement
procedures.
s ; ; • Compliance with debt covenants should be reviewed monthly, or
quarterly,depending on the nature of the covenant This review will provid
63
Page 18
Internal Control Factor
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
63
Page 19
Internal Control Factor
all times
Reimbursement claims for the NET Neighborhood Jobs Program should be
prepared and submitted to the appropriate granting agency immediately.
63
Page 20
Internal Control Factor
�s A Additionally, procedures should be established to ensure that
' reimbursement claims are submitted in a timely mann
a
The City should formalize its standards and procedures regarding system
development and modification, as well as standardize those programming
63
Page 33
Efficiency Improvement
and 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 changed systems are implemented.
63
Page 37
Efficiency Improvement
As the City continues the process of updating its software, we recommend
that source documentation and system flowcharts be maintained.
63
Page 37
Intemal Control Factor
;.r
. Management should continue to eliminate material due from / to other fund
63
Page 42
Intemal Control Factor
balances.
2� r
City ofMwmi -Office ofhiudgei
1 / of 35
1:51 PM/1/16N97iniriaimsXmfemncc 12-/9-97.z/s
so
City of Miami
Management and Productivity Initiatives
Accounting Division -Should adopt formal dosing procedures posting
payrolls immediately after the pay period
Tab B/Page 3
9
Internal
Inteal Control Factor
'Accounting Division -Monthly and year end dosing should take place on a
speedier basis
63
Tab B/Page 3
Efficiency Improvement
Accounting Division -High level accounting reports should be distributed to
management personnel
63
Tab B/Page 3
Efficiency Improvement
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
Efficiency Improvement
requirements (Kronos System)
Budget Management Division -Grant Administration and grant
reimbursement processing is not uniform throughout the City
63
Tab B/Page 4
Intemal Control Factor
Budget Management Division-CIP contracts should have funding codes
identified and approved by Budget prior to award
63
Tab B/Page 4
Internal Control Factor
Health Insurance Task Force -The plan administrator should have the
responsibility for conducting a performance audit semiannually on terms
63
TabE/Page 4
Internal Control Factor
and conditions of ASO contracts
Health Insurance Task Force -Management skills are needed to recover
some unnecessary expenses invoMng subrogation and coordination of
63
TabE/Page 5
Revenue Enhancement
benefits
Health Insurance Task Force -An audit, review and control function is
'.. needed for health care claims management
63
TabE/Page 5
Internal Control Factor
Health Insurance Task Force -A method is needed to recover unnecessary
'
tax expenses such as those found in flexible spending accounts, pre-tax
63
TabE/Page 5
Revenue Enhancement
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
63
TabE/Page 5
Efficiency Improvement
coverage and reserves
Health Insurance Task Force -Employee contributions need to be deposited
into a tout account immediately or deposited wth the carrier or risk bearing
63
TabE/Page 5
Internal Control Factor
agency
Health Insurance Task Force -Look into paying lower administrative fees for
larger supplies of medications
63
TabE/Page 6
Cost Savings
Health Insurance Task Force -Look at utilizing the services of a Pharmacy
Benefit Manager to control prescription costs
63
TabE/Page 6
9
Cost Savings
9
Health Insurance Task Force -Need to look at coordinating medical
payments with Workers Compensation where appropriate
63
TabE/Page 6
Efficiency Improvement
Risk Management Department Review -Perform cost/benefit analysis to
" determine if the deductible on the property policy provides the City ultimate 63 TabF/Page 6 Internal Control Factor
cost effectiveness
Risk Management Department Review -Should consider a cost benefit
analysis for purchasing excess liability insurance coverage for those losses 63 TabF/Page 6 Internal Control Factor
_-. that are not limited by a sovereign immunity doctrine
Risk Management Department Review -Reopen the RFP process in
accordance with Resolution 95-393 to outsource the risk management I 63 I ' ITabF/Page 7 Cost Savings
function
Risk Management Department Review -Should hire an independent risk
management consultant to select the appropriate vendor under the RFP 63 TabF/Page 7 Efficiency Improvement
process if the Insurance Committee is not reestablished
'hyyrr�
"0,5 Risk Management Department Review -Should consider changing the
r� 63 TabF/Page 8 Cost Savings
Insurance brokefs compensation to a fixed fee for services rendered 9 9
:t u:
City ojMami - Office oJBudget 12 of 3s /: S2 PM1212W97initiatives Xmfe?wwc 12-19-97sls
w City of Miami
Management and Productivity Initiatives
Debt Restructuring -City should immediately establish segregated Debt
--]
Service Funds to be held by outside trustees and not to be included within
63
TabG/Page 1
Internal Control Factor
the City's pooled cash
Debt Restructuring-Concemed that at least $1.5 million in debt service has
not been property provided for since it is funded from the Internal Service
63
TabG/Page 1
Internal Control Factor
Fund which currently operates at a deficit
Debt Restructuring -The City has not appropriately funded the Debt Service
63
TabG/Page 1
4ntemal Control Factor
Funds in accordance with the legal documents
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
63
TabG/Page 2
Internal Control Factor
City's defaulting on its debt obligations later this year
Debt Restructuring -Need to segregate the non -general obligation debt
63
TabG/Page 2
Internal Control Factor
service fund outside of the pooled cash
Debt Restructuring -The Utility Service Tax funds, as collected on a monthly
63
TabG/Page 2
Internal Control Factor
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
63
TabG/Page 3
Internal Control Factor
outside 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
63
TabG/Page 3
Cost Savings
savings 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
63
TabG/Page 3
Cost Savings
few years
Debt Restruchiring-City Manager should appoint someone, preferably the
new Finance Director, to establish a recuning reporting practice to such
63
TabG/Page 4
Internal Control Factor
entities of the progress the City is making in adoption and implementation o
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
63
TabH/Page 3
Internal Control Factor
current fund where other employee expenses are reported
Financial/Budgetary Analysis -Analysis of the proper inter4und transfer
activity, critical in evaluating the magnitude of any structural surplus or
63
TabH/Page 3
Internal Control Factor
deficiencies, is critical in determining the long-term financial health of the
City and any of its funds
FinandaVBudgetary Analysis -Recommend an analysis be made for each
63
TabH/Page 4
Internal Control Factormajor
revenue category
Financial/Budgetary Analysis -Some process should be developed to
63
TabH/Page 4
Internal Control Factor
minimize or eliminate false billings in the revenue collection programs
Financial/Budgetary Analysis -City may want to consider the introducbon of
an amnesty period followed by more vigilant enforcement and/or use of
63
TabH/Page 4
Revenue Enhancement
outside collection agency
FinanciaVBudgetary Analysis -Discipline is called for in an environment of
1 spending pooled cash which included high level approval plus
63
TabH/Page 5
Internal Control Factor
plans/projections for subsequent repayment or corection
i Financial/Budgetary Analysis-Recommendabons for future financial
--]TabHlPage
management initiatives should include the timely ongoing use of monthly
63
5
Internal Control Factor
reports showing the comparison of budget versus actual results
rr ^;-,z ,,,-"r°ti,F,.y^�"^.,"".«9,.,--.'a,"%"`s.,4� ;.y,•`""'„^T:?'r,..1, 7M1;'f,^..',.•+
Establish and implement plan to improve the City's credit rating and entry 64 Cost Savings
into the bond markets.
Gry ofMi—i - Office ofBadget 13 of 35 1:52 PM12126197inidadws Xmfemmv 12-19-97.s1s
City of Miami
Management and Productivity Initiatives
Establish the goal of developing an uncommitted General Fund Balance
consistent with an investment grade bond rating (e.g. five percent or more
65
Efficiency Improvement
gC of the annual operating budget) over a five-year period.
S
Adopt a written "Debt Management Policy" including the following critical
elements:
66
Efficiency Improvement
I
j The City should not issue debt obligations or use debt proceeds to finance
current operations.
66a
Efficiency Improvement
i
The City should utilize debt obligations only for capital improvement
projects that cannot be funded from current revenue sources or when it is
66b
Efficiency Improvement
better to 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
Efficiency Improvement
Pension Review Task Force -City may wish to investigate possibility of
issuing Pension Obligation Bonds to eliminate unfunded liability in the
66c
TabC/Page 1 Cost Savings
GESE Plan
The City should measure the impact of debt service requirements on single
year, five, ten and twenty year periods.
66d
Efficiency Improvement
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
67
Cost Savings
adherence to debt policies and procedures.
NDetermine all administrative implications of the Fire Assessment Fee as
quickly as possible in order to identify the impact of potential problems and 68
Efficiency Improvement
., disruptions to cash flow.
h
'',-'The Finance Department should identify each existing and/or potential
revenue source and document all of the relevant information about it. 69 Revenue Enhancement
Compare the above information with that of other municipalities to
determine the most effective manner in which to maximize revenue and
69a
Revenue Enhancement
cash flow.
Evaluate centralization versus decentralization and cost benefit analysis of
making cha es to existi systems e.g. staffing, technolo
g changes existing y ( g, technology).
69b
Efficiency Improvement
u
Centralize similar billing and collection activities to the extent practical.
69a
Efficiency Improvement
a• Performance criteria should be established. The City Manager should
receive a summary report of billing, collections, receivables and
70
Revenue Enhancement
measurements of performance no less than monthly.
:
g City management should immediately review and address all
>sR
° interdepartmental issues created from more than one department
•�>j overseeing various aspects of billings and collections.
71
Efficiency Improvement
n 6>
Q.C.Y. '
The City should pursue more diligent collection efforts in Emergency
" Medical Service Transport fee.
72
Revenue Enhancement
..;The Internal Audit group should perform surprise checks of potential
revenue sources as a waming to less honest employees that the City is
73
Internal Control Factor
serious about preventing misappropriation of funds.
Increase the formal bid advertising requirement limit of $4.500 in City
Charter to $1 Q000 or $15,000. 74 Efficiency Improvement
City ofMiami - Office of Budget 14 of 35 /: S2 PMJ2126/97iniriafives Xmfcrence /2-19-97x/s
City of Miami
Management and Productivity Initiatives
mline procedures for smaller purchases (e.g. authorizing use of
remant cards, delegating purchase of smaller items to user 76
Cost Savings
tments, making greater use of cooperative purchasing agreements).
sl Success Factors -Too much time spent by Procurement on
Aling low dollar, high volume items and not enough oversight in 75
Tab B/Page 2 Efficiency Improvement
:e related purchases
Management Task Force -Improve the bids and contracts process to
e the acquisition of goods and services in a timely and cost efficient 75
TabDfPage 5 Cost Savings
er
,a professionalism in purchasing personnel through appropriate
76
Efficiency Improvement
ience and training.
use of technology in the procurement function. Fully train
;Mal personnel in effective use of all technology tools. 77 Efficiency Improvement
s ` Consider removing all language in City Charter and Code regarding
procurement, other than formal bid advertising requirement limit, in favor of
78
Efficiency Improvement
an administratively authorized and implemented Procurement Policy
Manual.
Recommendations made by the Procurement Assessment Team appointed
Y by the Oversight Board in their report dated February 24, 1997, should be
considered for eventual implementation.
79
Efficiency Improvement
Suspend or pre-emptthe City Charter as it relates to purchasing and
Procurement
'remove Procurement Division references from said document (i.e.,
79 Assessment Team -
Efficiency Improvement
Sections28 and 29A).
Page 5.
Until such a time as new language can be adopted, the City should operate
underr selected portions of Chapter 287, Florida Statutes (F.S.), to be
79
Procurement
Assessment Team -
Efficiency Improvement
= determined by legal counsel.
Page 5.
Procurement
Delegate authority to purchasing manager to approve all acquisitions up to
79 Assessment Team -
Efficiency Improvement
N Category Four under Section 287.017, F.S.
Page 5.
Procurement
t
The City should adopt a new procurement code which emphasizes current
79 Assessment Team -
Efficiency Improvement
practices.
Page 5.
Procurement
Suspend local preference laws which may limit competition and
79 Assessment Team -
Cost savings
- opportunities to reduce cost
Page 5.
Procurement
79 Assessment Team -
Efficiency Improvement
Bid limit adjustment to recognized price index
Page 5.
v.,
�.
Procurement
s Eliminate City Clerk's involvement as it relates to bid openings - this should
be a function of purchasing.
79
Assessment Team -
Page 5.
Efficiency Improvement
c
Procurement
Update and revise procurement operations manual incorporating revisions
79
Assessment Team -
Page 5.
Efficiency Improvement
to the City Code.
p The City should shift its focus from smaller dollar purchases to large dollar
•'=„purchases for and Furthermore, the City should
procurement
Efficiency Improvement
commodities goods.
79
Assessment Team -
1 v ;delegate small purchases to user departments while providing adequate
Page 7.
;4asafeguards which ensure sound fiscal con
State Contracts, SNAPS Agreements, and other contracting methods
offered by the State of Florida and other public entities can and should be
79
Procurement
Assessment Team -
Cost Savings
used to reduce administrative costs and reduce delays in receiving goods
page 7.
and services by user departments. Ina
i
K V .� @l�
•: J
City ofkfi—i - Officc afBudgct
15 of 35
1:52 PM12126197ini1ia1iws Ximference 12-19-97xh
City of Miami
Management and Productivity Initiatives
recommend that the Chief Procurement Officer be trained in the public
using profession with procurement activities as his/her primary
It is
Procurement
79 Assessment Team -
lonsibility. also recommended that this position report at a
Page 7.
cientiy high level in the organizati
vide needed training, which should be included in the City's budget, and Procurement
ification should be encouraged for all professional staff and required in 79 Assessment Team -
staff selection process. Improve Procurement stairs understanding of
tomer needs with site Page 8.
Procurement
Shift staff resources from small dollar purchases to large dollar purchases 79 Assessment Team -
and eliminate work that does not add value or is redundant. Page 8.
Obtain a professional needs assessment of the technology requirements of
the City's procurement process (especially looking at integration of SCI and
Procurement
APS). Retain the services of APS to complete the implementation of all
79
Assessment Team -
three procurement purchasing mod
Page 9.
All professional staff must have adequate training on personal PC
applications, including spreadsheets, word processing, Internet, etc., to
procurement
improve their analysis and decision- making ability. City-wide departmental
79
Assessment Team -
training on financial and procurement
Page g
Develop and issue a comprehensive customer survey to determine procurement
satisfaction with the purchasing process and identify deficiencies so that 79 Assessment Team -
remedies can be implemented. Also, increase technical skills by training page
purchasing staff and customers. 10.
Upon completion and distribution of a new Purchasing Manual, all City
departments shoutd be trained by Procurement with follow-up training being Procurement
provided annually. The City should also consider providing new employees 79 Assessment Team -
with procurement training (includin Page 10.
City should establish stem sanctions for personnel who violate
urement policies. The City should inform major vendors of personnel 79 page 7
can act as buying agents on behalf of the City. All personnel should be
ad on procurement policies.
Procurement Management Division -In depth evaluation of multiple function
assigned to Procurement 1 79 Tab B/Page 4
Procurement Management Division -Practices should be evaluated to 79 Tab B/Page 5
ensure a competitive process occurs when procuring large dollar services
Procurement Management Division -All contracting should flow through the
Procurement Division 79 Tab B/Page 5
rot Management Division -To ensure purchasing procedures are
ed controls over the use of'direcr purchases should be 79 Tab B/Page 5
enforced
Management Division -A formal training program needs to be
79 1 Tab B/Page 5
Practices -Restructure procedures for bidding/selecting
:j 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 backgrounds.
79 TabM/Page 4
80
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
I�
Efficiency Improvement
Internal Control Factor
Efficiency Improvement
Internal Control Factor
Internal Control Factor
Internal Control Factor
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
,4 , �: Critical Success Factors: Establish Audit Advisory Committee to review
°F.»work of Internal Audit department 80 Tab B/Page 2 Efficiency Improvement
City ofMwmi - Office ofBtalget 16 of 35 1:51 PM12126197initiadws Xmfcmnee 11-19-97z1s
City of Miami
Management and Productivity Initiatives
,dvisory Committee -The Audit Committee should be expanded to
a City Commission member as a ran -voting member 80 Tab B/Page 8 Efficiency Improvement
Avisory Committee -The Director of Internal Audit should be an 80 Tab B/Page 8 Efficiency Improvement
1 participant in Audit Committee meetings
Avisory Committee -Meetings should be conducted quarterly, at a
g0 Tab B/Page 8 Efficiency Improvement
im
a Audit Committee to meet with the external auditors at least twice
the year. 81 Efficiency Improvement
Enact changes to the City Charter/Code to reflect the nature, purpose and
composition of the Audit Committee. S2 Efficiency Improvement
Internal Audit -The City code requires significant revision to bring about the
recommendations outlined 82 Tab B/Page 7 Efficiency Improvement
Audit Advisory Committee -The City Code should more specifically delineate
Audit Committee composition in order a provide representation from varied 82 ---]Tab B/Page 8 Efficiency Improvement
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 83 Efficiency Improvement
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 Corvnittee's duties, they should review the scope of the
external auditor's 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.
gq Efficiency Improvement
85 Efficiency Improvement
86 Efficiency Improvement
Reorganize the Internal Audit Department to report directly to the Audit
Committee. 87 Efficiency Improvement
Internal Audit -Audit function should have dual reporting to the City Manager 87 Tab B/Page 6 Efficiency Improvement
and to the Audit Advisory Committee
Internal Audit -The audit plan should be reviewed by the Audit Committee to 87 Tab B/Page 6
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 1 87 1 Tab B/Page 8
results
Chairman of the Audit Committee should make an annual report of its
cities to the City Commission. 88
ial Audit -A summary of audit results and responses should be
Bred quarterly and presented to the Audit Committee and the City I 88 I I ITab &Page 7
mission
Advisory Committee -The Audit Committee should provide a quarterly S8 Tab B/Page 8
t to the City Commission
Advisory Committee -The City Commission should be educated on 1 88 1 1 ITab B/Page 8
role in reviewing audit results and interacting with the Audit Committee
an experienced CPA with significant exposure to the public sector as
:tor of Internal Audit 89
Efficiency Improvement
Efficiency Improvement
Internal Control Factor
Internal Control Factor
Internal Control Factor
Efficiency Improvement
Efficiency Improvement
- Internal Audit -Should expeditiously hire a Director of Internal Audit with a
S9 Tab B/Page 6 Efficiency Improvement
CPA, CIA, or CISA
.x
City aJMami -Office oJBudget 17 of 35 1:52 PMI 2,126197initiadws Xmjcre= 12-19-97s1s
go
City of Miami
Management and Productivity Initiatives
The Director of Internal Audits should immediately complete an assessment
of the strengths and weaknesses of the Department, services historically 90
Efficiency Improvement
provided.
Determine the long-term role of the Internal Audit Department (e.g. primarily
involved in compliance and internal control issues, assisting external 91 Efficiency Improvement
auditors, conducting operational and performance audits, etc.)
Internal Audit -Staff time spent on non -audit functions should be reviewed,
audit staff work should focus on auditing 91 Tab B/Page 7 Efficiency Improvement
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 Internal Control Factor
house and/or with contracted services.
Intemal 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
91a
Page 33
Internal Control Factor
3 testing procedures).
9
j
Program change controls and logical access (data security) should also be
g reviewed.
91a
Page 33
9
Internal Control Factor
i
sStandardized working papers and detailed IT auditing programs should be
r prepared.
91a
Page 33
9
Internal Control Factor
? Internal Audit IT reports should be issued to the City Commission on IT
I audit findings.
91a
Page 33
Internal Control Factor
Test procedures and data should be designed so as to simulate all
conditions which will occur under normal processing conditions, including
data that deliberately attempts to violate data validation and control
91a
Page 38
Internal Control Factor
Nk—
routines.
Users should be involved in the design of test procedures data.
91a
Page 38
Internal Control Factor
Documentation of testing procedures should include: 1
91a
Page 36
Internal Control Factor
Specific Objectives of the test.
91a
Page 38
Internal Control Factor
Identification of types of transactions to be tested including transactions
which should test all aspects of the new program or program change.
91a
Page 38
Internal Control Factor
Inspect test results, including reported errors.
91a
Page 38
Internal Control Factor
The actual test results and the comparison to the predicted results.
91a
, Page 38
Internal Control Factor
An overall summary, including conclusions.
91a
Page 38
Internal Control Factor
Critical Success Factors -Change Internal Audit's focus to controlling
business risk, including systems
91a
Tab B/Page 2
Internal Control Factor
Internal Audit -An audit plan should be developed in conjunction with the
Oty Manager and department heads and should incorporate a risk based
I
91a
Tab B/Page 6
i
Efficiency Improvement
approach focusing on internal controls and business risks
Internal Audit -The audit plan should indude a greater complement of
performance audits
91a
Tab B/Pa e 6
g
Internal Control Factor
Internal Audit -The audit plan should provide for a sufficient review of
systems security
91a
Tab B/Page 6
9e
Internal Control Factor
Internal Audit -Audit review should be provided to the YEAR 2000 systems
conversion
91a
Tab B/Page 7
Internal Control Factor
Internal Audit -The City Manager as well as the Auditee should receive a
copy of the audit reports
91a
Tab B/Page 7
Internal Control Factor
City ofM+ami - Office ofBurlgef 18 of 35 1.52 PM1211N97inifiafives Xmfem=11-19-97.z1s
City of Miami
Management and Productivity Initiatives
Decide whether the present staff can provide the services envisioned on a
long-term basis.
Efficiency Improvement
Evaluate whether the organizational status of the Internal Auditing Dept is
sufficient to permit the accomplishment of its audit responsibilities. Charles Anderson,
Inspector General, Efficiency Improvement
letter dated
11/13/97
An effective Audit Committee should ensure that audit assignments are
based on risk rather than political, or other factors. Charles Anderson,
Inspector General, Internal Control Factor
letter dated
11/13/97
Audit -Audit staff dispersed in other departments should be 92 Tab B/Page 7 Efficiency Improvement
d and centralized within the department, as appropriate
The City should also develop a comprehensive cash flow forecast
93
Internal Control Factor
Opportunities Task Fong -Comprehensive operating and cash flow
TabK/Page 3 Internal Control Factor
93
projections should be developed for a five year period
City should develop a plan to return to fiscal strength, establishing targets
for appropriate fund balance reserves and funding of additional reserves,
94
Efficiency Improvement
addressing employee compensated absences, self ins., capital repl.,
contingencies and debt repayment
Opportunities Task Force -Operating cash reserve should be sufficient to
TabK/Page 2 Internal Control Factor
94
cover 30 to 60 days of operation
Opportunities Task Force -Prudent to maintain cash reserves of unfunded
94
----]
TabK/Page 2 Internal Control Factor
self-insurance liability of not Tess than 30% t0 50% of outstanding claims
The City should develop a detailed forecast of expected short -tens cash
payments relating to compensated absences in light of the significant
85
Internal Control Factor
percentage of the City's workforce currently eligible to refire or expected to
be eligible by the year 2000.
The City should continue to work to develop and implement operating plans
96
Internal Control Factor
that ensure the City functions at a surplus each year.
Opportunities Task Force -Projections should address the future courses of
96
TabK/Page 3
Efficiency Improvement
action which will be required for the City to continue as an operating entity
Opportunities Task Force -Steps should be taken to retum the solid waste
96
TabK/Page 3
Efficiency Improvement
enterprise fund to profitability
Opportunities Task Force -Raise user charges in Solid Waste to an
appropriate amount based on related costs and charges for similar services
96
TabK/Page 4
Revenue Enhancement
provided by other South Florida municipalities
Opportunities Task Force -Review level of Solid Waste services provided
96
TabK/Page 4
Cost Savings
and reduce service if appropriate
Revenue Options for Consideration -City could, through public hearing,
96
TabK/Page 21
Revenue Enhancement
increase the millage to 10 mills
Revenue Options for Consideration -City could levy up to 20% on each non- 96 TabK/Page 21 Revenue Enhancement
Y exclusive franchise granted for garbage collection within the City limits
i•7 L
„
City gfMi mi - Office gf&dgel 19 aj35 1:52 PM11116197initiatimsXmfemnce 11-19-97 xis
City of Miami
Management and Productivity Initiatives
Revenue Options for Consideration -City, could adopt by ordinance a
telecommunication ordinance levying 7% on intrastate long distance,
96
TabK/Page 21
Revenue Enhancement
cellular, 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 Enhancement
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 Enhancement
Revenue Options for Consideration -A rate analysis should be performed on
all Enterprise Fund operations and revised rate schedules should be
96
TabK/Page 21
Revenue Enhancement
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
96
TabK/Page 22
Revenue Enhancement
adopted to recover expenses of operation
Revenue Options for Consideration -Suggest City review the annual
revenues received on mobile homes licenses fees and'rf revenue is flat or
96
TabK/Page 22
Revenue Enhancement
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
96
TabKlPage 22
Revenue Enhancement
operating expenditures
Revenue Options for Consideration -Suggest City review the allocation of
the Local Option Gas Tax and determine ability to change allocation
96
TabK/Page 22
Revenue Enhancement
methodology based on population
Revenue Options for Consideration -Adopt ordinance levying road
assessment fee to property owners within City limits to maintain City
96
TabK/Page 22
Revenue Enhancement
roadways
Plan should include the full costs of operating the City, including employee
Pensions. compensated absences, sett insurance, risk underwriting and 96a Internal Control Factor
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 97 Efficiency Improvement
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 servidng of I 97 I I ITabL/Page 3 Revenue Enhancement
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 97 TabL/Page 30 Revenue Enhancement
allocations of CDSG 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 97 TabL/Page 35 Revenue Enhancement
complete receipt of funding reimbursements
Evaluation of USHUD Funded Loan and Grant Programs -Recommended
that City continue to identify pending reimbursement opportunities and 97 TabL/Page 35 Revenue Enhancement
aggressively pursue the repayment of the funds due
Evaluation of USHUD Funded Loan and Grant Programs -City should 97 TabUPage 36 Revenue Enhancement
vigorously seek funding through the grant programs (see task force report) IOOW
Establish a Loan Review Committee comprised of bank officers Irving or
working in the City of Miami to consider loan applications and bring 98 Internal Control Factor
expertise to the entire credit review process.
City ofM—i -Office q(Budger 20 of 35 1:52 PMI L26197iniliarims Xmfemnce 11-19-97.xis
City of Miami
Management and Productivity Initiatives
Evaluation of USHUD Funded Loan and Grant Programs -Should take
immediate steps to implement more stringent ban underwriting guidelines 98 TabL/Page 4 Internal Control Factor
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 98 TabL/Page 4 Internal Control Factor
repayments or recoveries from outstanding loans to the greatest extent
possible
Evaluation of USHUD Funded Loan and Grant Programs -City Commiss on
can reverse its previous approvals and cancel commitments for two Section 97 a8 TabL/Page 4 Internal Control Factor
108 projects totaling $6,645,184 which have not been submitted to USHUD
for processing and approval
Consider the sale of defaulted loans to authorized third parties in 99 Cost Savings
conjunction with continued dialogue with entities such as FNMA and HUD.
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 Efficiency Improvement
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 100
Efficiency Improvement
develop a technology strategic plan.
Information Technology Division (IT) -The IT Division should redefine its 100
Tab B/Page 5 Efficiency Improvement
mission in light of the trends in technology development
Hire technology expert to head up a newly created Department of
101
Efficiency Improvement
Information Technology.
The individual must provide direction and vision, negotiate effectively with
vendors, dose credibility gap by results, be unbiased and objective, and Iola
Efficiency Improvement
communicate effectively with various constituencies.
FB Negotiate interim extensions of software licensing agreements with current
vendor to provide for interim system requirements until information
102
Cost Savings
technology needs assessment is completed.
Immediately address those priority issues regarding inter -network
communications and architecture decisions. This can be determined prior
103
Cost Savings
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
103
Page 21
Internal Control Factor
r attention in order to ensure the continuity of the City's operations in the
case of unplanned interruptions
V Fleet Management Task Force -Implement a complete Management
103
TabD/Page 4 Efficiency Improvement
Information System with a Fleet Management module
Establish internal, cross -departmental Steering Committee to report
and resource
Efficiency Improvement
Ms. regularly to City Manager on policy/budgettmanagement
104
e;--. allocation issues related to technology.
Duties and responsibilities of the committee should be Beady defined in a
104
Page 30
Efficiency Improvement
formal charter and should include the review and approval for.
Ai Major changes in hardware or software.
104
Page 30
Efficiency Improvement
Research and development projects under study.
104
Page 30
Efficiency Improvement
tJ 6�l
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City of Miami
Management and Productivity Initiatives
Y The results of any cost / benefit analysis.
104
Page 30
Efficiency Improvement
a4
Software application development or acquisitions.
104
Page 30
Efficiency Improvement
n
i« Project priorities.
2
104
Page 30
Efficiency Improvement
Resource allocation in terms of time, personnel and equipment.
104
Page 30
Efficiency Improvement
Controls in effect
104
Page 30
Efficiency Improvement
Conversion plans.
104
Page 30
Efficiency Improvement
f
/ Emergency procedures, contingency and physical security plans.
104
Page 30
Efficiency Improvement
Insurance coverage.
104
Page 30
Efficiency Improvement
Budgets and plans pertaining to the IT function.
104
Page 30
Efficiency Improvement
IT User Group Committees should be established and be responsible for.
104
Page 32
Efficiency Improvement
Communications between users and the IT Steering Committee,
(€ management and regulatory agencies.
104
Page 32
Efficiency Improvement
I
Establishing user priorities.
104
Page 32
Efficiency Improvement
€Monthly service requests reporting by application.
104
Page 32
Efficiency Improvement,
Coordination and approval of request for IT services.
104
Page 32
Efficiency Improvement
Authorization of data file removal from data centers.
104
Page 32
Efficiency Improvement
Review and approval of file retentions.
104 _
Page 32
Efficiency Improvement
Coordination between users and IT.
10
Page 32
Efficiency Improvement
Maintenance of commonality of system.
104
Page 32
Efficiency Improvement
Review and approval of cost estimates.
104
Page 32
Efficiency Improvement
User participation in new system requirements.
104
Page 32
Efficiency Improvement
User group Committees must be held accountable for all program, changes
and requests for IT services from their group.
104
Page 32
Internal Control Factor
Critical Success Factors -Establish Information Systems Steering Committe 4
104
Tab B/Page 2
Efficiency Improvement
Information Technology Division (IT) -A technology Steering Committee
should be established chaired by an Assistant City Manager
104
Tab B/Page 5
Internal Control Factor
Consider having Information Technology report directly to the City Manager
to account for the needs of all City operations and to more effectively
105
Internal Control Factor
resolve issues related to technology.
;» Information Technology Division (IT) -Recommended that IT should report to
the City Manager's Office 105 Tab B/Page 5 Efficiency Improvement
inrw
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 106 Efficiency Improvement
and efficiency will result from a
City ofAr,—i - Office oJBudgct 22 of35 1:52 PM11/1 fi/97initiatives Xrejerence 11-19-97.z/s
City of Miami
Management and Productivity Initiatives
Opportunities Task Force -Steps should be taken immediately to implement
procedures, upgrade systems and provide adequate professional staff to 106
TabK/Page 3 Efficiency Improvement
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
106
Page 22 Internal Control Factor
key issues such as hardware, software, applications development,
communications, emergency procedures and c
.4�
i Information Technology Division (IT) -Funding needs to identified and
• & reserves need to be built to complete the network infrastructure for Police 106
Tab B/Page 5 Efficiency Improvement
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
107
Cost Savings
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
108
Cost Savings
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
1
108
17:]
Page 23
Internal Control Factor
without cutting other required system development and maintenance.
Information Technology Division (IT) -A plan needs to be devised and
108
ITab
B/Page 5
Internal Control Factor
horded to complete the task of making City systems Year 2000 compliant
Give highest priority to developing and testing an adequate disaster
109
Internal Control Factor
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
109
Page 26
Internal Control Factor
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.
Page 26
Cost Savings
109 —�
Minimize disruption to key service/business functions.
Page 26
Cost Savings
109
Maximize awareness of the City's fiduciary responsibility adopting a "due
Page 26
Cost Savings
109
care" mentality.
Analyze the citizen/business community awareness implications of
109
Page 26
Internal Control Factor
extended service interruption.
Determine exposure and design preventable measures. 1
109
Page 26
Cost Savings
Determine recovery and restoration needs and facilitate that recovery and
109 Page 26 internal Control Factor
restoration.
City should develop and implement adequate plan maintenance procedure
which involve representatives from each of the critical business areas.
Otherwise, contingency plan will become outdated and, thus, of little use in 109 Page 27
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 109 Page 28
so forth.
Internal Con" Factor
Internal Control Factor
r
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City of Miami
Management and Productivity Initiatives
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
109
Page 29 Internal Control Factor
Management and 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 Internal Control Factor
administration procedures should be formalized.
Management should develop and implement a formal vehicle to
communicate any personnel changes to security.
109
Page 40 Internal Control Factor
Information Technology Division (IT) -IT must govern security issues which
should not be overridden by departments
109
Tab B/Page 5 Internal Control Factor
Information Technology Division (IT) -A comprehensive disaster recovery
109
Tab BlPage 5 Internal Control Factor
plan should be developed addressing PC networks and the mainframe
Information Technology Division (IT) -Backup procedures should be
developed for the PC systems
109
Tab B/Page 5 Internal Control Factor
Emphasize training of all Department of Information Technology Staff. 110 Efficiency Improvement
Information Technology Division (IT) -Formal training program should be
adopted for project management and structured methodologies 1 110 Tab B/Page 6 Efficiency Improvement ��
Develop and implement a plan for Information training for the rest of the
City employees. 111 Efficiency Improvement
In order to reposition the workforce strategically for the future, undertake a
comprehensive job desc.and job class review, evaluating class to det
whether they provide the right skill sets and whether they are consistent 112 Efficiency Improvement
with the City's objectives
Integrate Management Training with specific goals and development of the
strategic plan. SFRPC 5 Year Plan
Review Page 6 Efficiency Improvement
4130/97
Include GIS professionals in the list of professional planners and other
disciplines necessary to produce and carry out the City's strategic plan. SFRPC 5 Year Plan
Review Page 4 Efficiency Improvement
4/30/97
Critical Success Factors -'Consider deleting "equivalent combination of 112 Tab B/Page 2 Efficiency Improvement
training and experience" for professional credentials
Accounting Division -Lack of technically qualified staff in some areas of the
division 112 Tab B/Page 3 Efficiency Improvement
Internal Audit -Staff persons with CPA licenses should be required to meet
CPE requirements 112 Tab B/Page 7 Internal Control Factor
M
;� - Internal Audit -Audit staff positions should be filled with individuals
w l possessing finance, accounting, audit, EDP and business backgrounds 112 Tab B/Page 7 Efficiency Improvement
,%w
City ojMlami - Office oJBudger 1 d oj3S 1:52 PM12126197iniriafives Xrcjemnce 12-19-97.x1s
A City of Miami
Management and Productivity Initiatives
Internal Audit -Job descriptions should be rewritten to reflect the correct
112
Tab B/Page 7
Efficiency Improvement
roles and responsibilities of the stall
Fleet Management Task Force -Determine proper classifications for work
112
TabD/Page6
Efficiency Improvement
performed and appropriate number of employees
Health Insurance Task Force -The plan administrator should be very
112
TabE/Page 4
Internal Control Factor
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
112
TabM/Page 4
Efficiency Improvement
performance
The City should not hold a register of qualified applicants for two years
113
Efficiency Improvement
The employee appeals process under Civil Service Board should be
reviewed. A common solution elsewhere appears to be having a hearing 114 Cost Savings
officer handle appeals.
" Efficiency Improvement
Review training and development skills that are needed to upgrade existing SFRPC 5 Year Plan
employee's ability to meet the strategic needs of the City. Oncereview is 115 Review Page 6 Efficiency Improvement
completed, commit resources to provide skills development opportunities. 4/30197
Accounting staff should be required to undergo minimum continued
professional training each year. training should address technical
accounting and reporting issues, changes, or updates in the City's 115 Page 3 Efficiency Improvement
operations, policies, procedures and job duties. . I J
Attending IT auditing conferences, seminars, memberships in professional
organizations dedicated to IT auditing should be encouraged on the part of 115
Page 33
Efficiency Improvement
the City's Internal Audit Staff.
A formal training program should be developed for each IT employee,
which will address methods and techniques required to bring their 115
Page 34
Efficiency Improvement
performance in line with the Cily's objectives.
The first step should be the development of a formal skills and
competencies inventory, preferably by means of objective skills assessmen 115
Page 34
Efficiency Improvement
tests.
At least one other senior Programmer /Analyst should be trained in LINC
application development, and one additional staff member in LINC Idm in.
115
I i
Page 34
Efficiency Improvement
to provide a backup capability. LINC environment has not taken advantag
of the new tools as it should have.
Internal Audit -The skill set of audit staff should be broadened and staff
115
Tab B/Page 7
Efficiency Improvement
should receive appropriate level of training
Risk Management Department Review -Establish a formal professional
N development plan for each of the Department Safety Officers including the
115
TabF/Page 11
Efficiency Improvement
Ause of internal and extemal resources
'Operating Practices -Design and implement a comprehensive employee
115
TabM/Page 4
Efficiency Improvement
training program
Review best practices in City, County and State government in regard to
leadership succession planning and develop its own process of leadership
116
Efficiency Improvement
development recognizing that 51 °h of the current executive workforce will
be eligible for retirement by 1999.
g's�^
K
Critical Success Factors -Conduct a comprehensive review of personnel
116
Tab B/Page 2
Efficiency Improvement
practices
s' x
.,Consider elimination of the two tier wage system. Market rates should be
fir < established for all positions and used to set pay grades subject to periodic
evaluation.
117
Cost savings
7 d
City not be made on the basis of
Appointments to key positions must
favoritism or political sponsorship and loyalty.
118
Irmemi Factor
I ,
•-J
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1:52 PM/2/26197iniriarives Xmference 11-19-97.xis
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Management and Productivity Initiatives
rating Ps -Remove "politics" from the employee hiring and 116 TabM/Page 4 Internal Control Factor
otion
process
leadership must foster an environment that respects and values the
lbutions of personnel at all levels. 119 Efficiency Improvement
Review Unit Certification Issued by PERC as to each bargaining unit to
determine which positions were induded in the unit 120 Efficiency Improvement
Advise each union that as to those positions that are not part of the
:ertified bargaining unit it is not the authorized representative. 121 Efficiency Improvement
the Civil Service Rules to: 122 Efficiency Improvement
Extend the list of positions which are unclassified to include managerial and
confidential. 122a Internal Control Factor
Reestablish Managerial and Confidential Employees 122a Tab 7/Page 3 Internal Control Factor
Remove the limitation of the five unclassified employees in one department. 122b Internal Control Factor
a proposal to the Commission/Oversight Board of the City to
with a claims handling organization such as Third Party
trator, or "engage" licensed temporary claims representatives to 123 Efficiency Improvement
a project oriented "Claims Blitz".
Risk Management Department Review -The City should request a proposal 123 TabF/Page 5 Cost Savings
for third party administrative handling services
Claims Blitz to be designed to dose as many inactive clams as possible,
settle or resolve as many pending claims as possible and establish diary 123a EfficiencyImprovement provement
dates for claims adjuster review.
Augment existing in-house legal resources on a short tern basis by
establishing a relationship with outside law firm (s) that specializes in 124
Cost Savings
workers compensation defense to handle all "claims blitz".
Health Insurance Task Force -Implement a strong subrogation clause and
employ a law fine to protect those interests, paying their fees from moneys 124
TabE/Page 6 Cost Savings
which are recovered
Related litigation and settlement agreements under the supervision of the
City Attorney. 124a
Efficiency Improvement
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
Efficiency Improvement
completed. Train new staff.
Create and adopt claims handling procedures that reflect best practices.
F w Enforce strict compliance to these procedures. 126 Internal Control Factor
"" ✓' Health Insurance Task Force -Worker's Compensation payments should be
"r��'" intanrafed and rruvdinafad with hmlfh rom 126 TabE/Page 3 Internal Control Factor
Health Insurance Task Force -Each health care carrier should produce a 126
TabE/Page 3 Internal Control Factor
claims analysis and reviewed semiannually be Benefits and Finance staff
.a:
a� Health Insurance Task Force -A claims and financial analysis should be
reviewed annually by Benefits, Finance, Human Resources/Labor Relation 126
IF and the City attorney
TabE/Page 3 Internal Control Factor
City ofMmni - Office ofBudgcr 26 of 35
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Management and Productivity Initiatives
alth Insurance Task Force -Should perform a quarterly reconciliation and
126
TabE/Page 3
Internal Control Factor
punting of prescriptions against the administrative fee
k Management Department Review -The City should utilize "best
126
TabF/Page 2
Efficiency Improvement
dices" claims management procedures for the handling of all claims
k Management Department Review -Should establish a committee of
--]
ividuals representing claims, legal and finance to meet monthly to
126
TabF/Page 4
Internal Control Factor
was all claims reserved over various levels
_
k Management Department Review -City Commission should consider
ling the dollar level of claims that need to come before the Commission
126
TabF/Page 5
Efficiency Improvement
approval
view and if necessary change job description and background
requisites for claims adjusters and claims supervisors handling worker's
npensation claims to reflect the complexity, of the work and skills. 127 Efficiency Improvement
the reporting relationship of the functional leadership of the Safety
128 Internal Control Factor
Risk Management Department Review -City should re-evaluate the
128
TabF/Page 8
internal Control Factor
reporting hierarchy for the Safety Department
Risk Management Department Review -Fully implement LMP 1.95 (City
128
TabF/Page 9
Internal Control Factor
Wide Safety Committee)
Risk Management Department Review -Fill the Police Department Safety
128
TabF/Page 9
Internal Control Factor
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
128
TabF/Page 9
Internal Control Factor
accountable
Risk Management Department Review -Complete an assessment of each
City Department's safety and health program using the OSHA Program
128
TabF/Page 10
Internal Control Factor
Evaluation Profile
Appoint an evaluation committee to perform an interim review of the
effectiveness of vendor selected to implement the managed care
129
Internal Control Factor
arrangement for the City of Miami and the program.
Health Insurance Task Force -Reevaluate the executive plan which provides
129
TabE/Page 6
Cost Savings
no incentive for managed care election by the executive
-
Risk Management Department Review -By December 1. 19: a managed-
cere arrangement (mandated by state law) for workers' compensation
129
TabF/Page 2
Internal Control Factor
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
130
Internal Control Factor
should all report to the same ACM.
Health Insurance Task Force -The Benefits Department should be part of 130
TabE/Page 3 Internal Control Factor
the Human Resources Department
Health Insurance Task Force -The Benefits Department should be part of
130
TabE/Page 3 Internal Control Factor
the Labor Relations Office.
Health Insurance Task Force -One person should be designated in writing
130
TabE/Page 4 Internal Control Factor
as plan administrator
The City should immediately employ an insurance Benefits consultant to be
on hand for development of pricing and Benefits models for insurance 131 Efficiency Improvement
Benefits procurement
s. k
'3
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City of Miami
Management and Productivity Initiatives
Health Insurance Task Force An insurance broker should be available to
the management negotiating team to provide actuarial analyses
131
TabFJPage 3
Cost Savings
Health Insurance Task Force -Multiple year health care carrier contracts
should be negotiated and re -negotiated not less than every two years
131
TabElPage 4
Cost Savings
Health Insurance Task Force -The Benefits Office should have the services
TabE/Page 4
Efficiency Improvement
131
of a an insurance broker available for use upon demand
Health Insurance Task Force -Authority to negotiate any type of benefit plan
--]
to contract with an insurance carrier should require prior knowledge of
131
TabE/Page 4
Internal Control Factor
Human Resources Director and / or Labor Relations Officer.
Health Insurance Task Force -Authority to negotiate any type of benefit plan
to contract with an insurance carrier should require prior knowledge of City
131
TabE/Page 4
Internal Control Factor
Attorney and Chief Financial Officer before incurring obligation
Health Insurance Task Force -Should explore the possibility of contracting
for some benefits utilizing the combined leveraging ability of multiple local
131
TabElPage 4
Cost Savings
communities
Health Insurance Task Force -A strong subrogation clause should be 131 TabFJPage 4 Internal Control Factor
established and enforced within the health care plan
Health Insurance Task Force -Cost containment incentives for third party 131 TabE/Page 4 Cost Savings
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 131 TabE/Page 4 Internal Control Factor
accuracy 110%
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 131 TabE/Page 4 Internal Control Factor
total benefits package
Health Insurance Task Force -Should periodically evaluate the difference
between self insurance and commercial insurance to determine if 131 TabFJPage 4 Cost Savings
advantages lie in changes
Health Insurance Task Force -May want to consider offering, on a voluntary I 131 I I ITabE/Page 5 Efficiency Improvement
(employee pay all) basis, supplemental life and disability insurance
Health Insurance Task Force -Reevaluate the proportional cost for health r 131 TabE/Page 6 Cost Savings
care bome by the City where retirees are concerned I
Health Insurance Task Force -Should expand flexible benefits and avoid
paying the employer portion of taxes on earnings 131 TabE/Page 6 Cost savings
Health Insurance Task Force -Incorporate into future ASO contracts a
stipulation that it is the responsibility of the third party administrator to 131 TabE/Page 6 Internal Control Factor
constantly seek opportunity for cost efficiency through purchasing
Summary plan descriptions should be updated and distributed timely. 132 Internal Control Factor
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
3 Internal Control Factor
conditions dearly spelled out I I
I ITabE/Page
Engage a private employee Benefits communications and enrollment firth to
take over the responsibility of annual communications and enrollment of all 133
Efficiency Improvement
core and voluntary Benefits.
Health Insurance Task Force -The benefits program needs a formal delivery
system 133
TabE/Page 5 Efficiency Improvement
The City should receive a detailed actuarial report identifying the correct
current cairns loss reserve for the medical plan and then incorporate a plan 134
Efficiency Improvement
for achieving that reserve within five years.
City OfM,—i - OJ/icc oJBudget 28 aJ35 1: 52 PMJ2126197initiatims Xmfcmnm 11-19-97xis
City of Miami
Management and Productivity Initiatives
Health Insurance Task Force -The benefits program needs coordination to 134 TabE/Page 5 Internal Control Factor
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 135 Internal Control Factor
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 136 Internal Control Factor
only over impact of decision.
Fleet Management Task Force-Outsource all or part of fleet services
through either the private sector or Metro 136 TabD/Page 3 Cost Savings
Eliminate all "Prevailing Benefits" clauses. 137 Cost Savings
Eliminate five percent increase in salary, and hence all accrued benefits, on
138 Cost Savings
retirement
Eliminate Union control or veto of any City -funded programs. 139 Cost Savings
Eliminate all City -subsidized payment of time used for Union business,
including "time pool," release to work, negotiations, grievance 140 Cost Savings
investigations, etc.
Centralize all communications with the Unions through Labor Relations
Officer. This includes grievances, work peace issues, concerns, etc. 141 Internal Control Factor
Prohibit any department, including Fire Department from entering into
"side" agreements under the Collective Bargaining Agreements. 142 Internal Control Factor
Cost out the total financial package under the agreement to determine the
actual 'wages" paid. 143 Efficiency Improvement
Fleet Management Task Force -Terminate the current Police take-home 143 TabD/Page 1 Cost Savings
policy
Health Insurance Task Force -The chief benefits officer should participate in 143 I I
TabE/Page 3 Cost Savings
some form with Union negotiations where benefits are involved
Risk Management Department Review -The City should conduct an
immediate review of all labor agreements to identify cost savings 143 TabFlPage 2 Cost Savings
Retain management right to make decisions required to operate and limit
bargaining to impact only. 144 Internal Control Factor
fine the Labor -Management Committee meetings in which the Union
the Administration can discuss specific issues and ideas on an ongoing 1�r Efficiency Improvement
rgue with the City.
z Operating Practices- Develop a system to improve internal communications, 145
(staff meetings, employee interaction meetings)
TabM/Page 3 Efficiency Improvement
Institute a "Suggestion Box" for employees; consider incentives programs. 146
Efficiency Improvement
G` Review current fire inspection fee collection procedures. 147
Efficiency Improvement
s
o
k;,
City OfM,—i -Office oJBurlgct 29 oJ35
1:52 PMI2126197inifiatims Xrefemr=11-19-97.xh
20
City of Miami
Management and Productivity Initiatives
Establish dear guidelines and procedures for department heads to follow in
their daily labor-management relations with representatives of the unions.
148
Efficiency Improvement
Recognize the importance of the Office of the Labor Relations as the
a institutional manager of labor management relations at the City of Miami.
149
Efficiency Improvement
Increase frequency of communications between employees and City
administrators.
150
Efficiency Improvement
Effectively integrate Union officials into the strategic planning process of the
E=City.
151
Efficiency Improvement
To improve communications, City management needs to recognize and
respect the leadership roles of Union officials within their organizations.
152
Efficiency Improvement
°AssetsPiannirt alliiiNa ;.
,& s
T Miiii4gei I WIws,72.7 =;.,y`
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, the City will aggressively manage these assets) :
153
Revenue Enhancement
F
�i
:$ Incorporate the fourteen Guiding Principles related to Asset Management
identified by the SFRPC in its memo of 4/1/97.
SFRPC 5 Year Plan
Review Page 1
Efficiency Improvement
4/30/97
Emphasize improved asset management in general as a means of
�s
_ achieving fiscal stability instead of land lease options.
SFRPC 5 Year Plan
Review Page 1
Efficiency Improvement
4r30197
Apply the principles embodied in the Checklist for Successful Asset
Management identified by SFRPC in its memo of 411/97 SFRPC 5 Year Plan
Review Page 1 Efficiency Improvement
4/30/97
Fleet Management Task Force -Review remaining individual vehicle 153 TabD/Page 3 Cost Savings
assignment and vehicle take home policies
Fleet Management Task Force -Work with using agencies to determine fleet I 153 I I ITabD/Page 5 Internal Control Factor
size and composition necessary to perform departmental functions
Fleet Management Task Force -Evaluate and establish a motorpool, where I 153 I I ITabD/Page 7 Cost Savings
applicable
Fleet Management Task Force -Implement a vehicle replacement/disposal
program using proceeds from sale of vehicles to offset new vehicle 153 TabD/Page 7 Revenue Enhancement
purchases
Operating Practices -Establish a preventive maintenance program for park 153 TabM/Page 3 Efficiency Improvement
facilities and equipment
Operating Practices -Consider maintenance costs and other operating costs 153 TabM/Page 3 Internal Control Factor
prior to the approval of Capital Improvement Projects
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 153a Cost Savings
0te City's public policy objectives.
low-
r<.
l,; a:� Coconut Grove Convention Center Increases Coconut Grove Convention 153a TabK/Page 18 Revenue Enhancement
Centerincreases
Coconut Grove Convention Center Increases -Increase the CGCC sold out
lot from $800/day to $15001day 153a TabK/Page 18 Revenue Enhancements
Dry oJMami - Oj/icc oJBw/ger 30 of 35 1:52 PM12/16197inirialim:s Xrejemmc 1149-97_dh
City of Miami
Management and Productivity Initiatives
conut Grove Convention Center Increases -Add a move4n/moveout rate 153a TabK/Page 18
CGCC
connt Grove Convention Center Increases -Increase the minimum rental
',rantees to $2000 per hall or charge a flat fee for usage of the halls 153a TabK/Page 18
ninating the option of a minimum or net rate
view of Marina Rate Increases -Recommend increasing rate for
htseeing vessels from $.40 If to 3.80 If 153a TabK/Page 19
view of Marina Rate Increases -Recommend increasing rate for
nmercial vessels comparable to the County 153a TabK/Page 19
view of Marina Rate Increases -Recommend elimination of the 20% 153a TabK/Page 19
count to City residents
a City should evaluate various levels of asset privatization for all new
dtal projects as it plans, builds, or acquires additional public facilities and 154
City will manage its existing portfolio by selling or donating non -
table parcels; "packaging" and marketing properties; "packaging"
ierties for future use; reviewing alternative ownership/management 155
the Inventory of all City owned and leased property. 156
Develop a strategy for continuously updating the comprehensive inventory
of City property. SFRPC C.
Dekle Mena
dated 1111W97
crtunities Task Force -Should compile a complete inventory of all real
le parcels owned by the City, including location, description, current I 156 I I �TabK/Page 4
etc
xtunities Task Force -Parcels should be categorized according to their
i.e., city operations, leased to third party, vacant, etc. 156 TabK/Page 4
anent current condition of all properties (e.g. brief description, digital 167
induct a comprehensive review of all facilities subject to the requirements
the ADA to determine the costs for required improvements and begin the
fidget process for these improvements.
Revise LDRs to include monitoring of roads, water, sewer, drainage and
any other infrastructure that may be controlled or affected by agencies other
than the City.
Prioritize properties identified for sale or lease and establish potential 158
market value through assessment and/or appraisal.
Establish future property tax potential. 159
Add the following info. to the property inventory spreadsheet book value,
assessed value/date, appraised value/date, potential annual property tax
base based on currentlfuture 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.
SFRPC 5 Year Plan
Review Page 1
4130P37
SFRPC 5 Year Plan
Review Page 3
4/30/97
City ofhfi—i - Office ofBudger 31 of 35
Internal Control Factor
l:52 PM/212"7.JiWives Xreference 12-19-97z1s
I
City of Miami
Management and Productivity Initiatives
Ensure that all transactions involving City owned or controlled properties
SFRPC C.
will be subject to the review and approval of the Asset Management
Dekle Memo Internal Control Factor
Division of the Planning and Development Department
dated 11/13197
Opportunities Task Force -Analysis should be performed for each parcel of
161
TabK/Page 4 Internal Control Factor
lease property to determine certain factors (see task force report for factors)
SFRPC 5 Year Plan
Review Page 1 Internal Control Factor
Include an assessment of City capital facility needs and operations in the
4130/97
projection of past, present and future deficiencies and financial obligations.
SFRPC 5 Year Plan
'
Review Page 11
Internal Control Factor
Conduct a comprehensive review of all facilities to improve public safety
4/30197
and to reduce liability.
Opportunities Task Force -Parcels currently used by the City should be
161 TabK/Page 5
Internal Control Factor
analyzed to determine certain factors (see task force report for factors)
Opportunities Task Force -An analysis of surplus parcels should be
161 TabK/Page 5
Internal Control Factor
performed to determine certain factors (see task force report for factors)
Opportunities Task Force -Should consider selling the Miami properties to
161 TablUPage 6
Revenue Enhancement
one of the lessees or another third party
r�
Sale of City Assets-AII city property offered for sale should be reviewed by
161 TabK/Page 14
I
Intemal Control Factor
the Law Department
"%gyp,
Sale of City Assets -Original funding source utilized to acquire and improve
161 TabK/Page 14
Internal Control Factor
city owned property needs to be identified and analyzed.
Sale of City Assets -Review all City Parks and evaluate the ability to provide
a consolidated neighborhood park system, selling any non -essential and
SFRPC 5 Year Plan
161 Review Page 10 TabK/Page 14
Revenue Enhancement
non -restricted park land
4/30/97
Sale of City Assets -Evaluate the transfer of small neighborhood parks to
161 TabK/Page 14
Cost Savings
Neighborhood associations
Sale of City Assets -Sell various identified properties (see task force report
161 TabK/Page 14
Revenue Enhancement
for specific listing of properties)
Sale of City Assets -If properties are sold to governmental agencies City
should negotiate a voluntary annual payment in lieu of taxes (PILOT) fee in
161 TabK/Page 15
Revenue Enhancement
connection with such sales transaction
Revenue Enhancements -Sell inappropriate park properties (or revert them
161 TabM/Page 3
Revenue Enhancement
to original donors)
All City Departments should develop and obtain approval long range plans
162
Efficiency Improvement
for the properties/facifities under their responsibility.
Each City Department should prioritize its properties /facilities based on
their Departments Strategic Plan.
163
Efficiency Improvement
.,,;"The Department of Planning and Development should conduct market
f 'studies to determine how the surplus properties should be disposed and �..,d 164 Revenue Enhancement
recommendations included in the Property Plan.
Determine all cost associated with the disposition of properties, inducting r
;•= but not limited to appraisal, advertising, administration and referendum cost. 165 Revenue Enhancement
The Annual Property Plan should include a summary of the following
a <.. «.
#§. b.rnfortnation: Properties to be sold, properties to be leased. leases due to 166 Internal Control Factor
d • ° renewal, tax impact, cost of maintaining.
City oJMrami - Office offtdget 32 of 35 1:52 PM11/26197inttiatives Xsejcrenre 11-19-97s1s
City of Miami
Management and Productivity Initiatives
Evaluate and implement measures to utilize public parks and recreation 167
facilities to better generate revenue.
Review park and ticket surcharges: increase special event rentals and fees;
consider installing vending machines in public parks and facilities; stria
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.
166
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
169
Develop maintenance standards according to property type.
170
Establish a periodic maintenance program for city owned properties
171
inducting vacant lots.
Analyze current property maintenance needs and integrate into
172
maintenance plan and budget
Adopt space/office standards that would apply to all departments. Establish
175
standards for office use and allocation.
To assure that the maximum sales or lease revenues realized from
properties targeted for sale, priority must be given to repairs and 174
maintenance of these facilities.
Establish a fund for preparing properties for sale in annual budget 175
inventory of rental property that provides the following
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 / terms prior to expirabon of leases.
177
Determine future rent increases based on potential land value and use.
. 4
�. Annually review the inventory to assure that the city is maximizing its return
g 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.
z.�
Establish and enforce a policy that the Department of Community Planning
and Development must approve all lease proposals and property
160
purchases.
Move the collection and tracking of lease payments to the Community
Planning and Development Department Integrate rental revenue
161
information in the financial system.
Ciry ofMl—i -Office ofil dger
33 of 35
SFRPC 5 Year Plan
Review Page 3
4/30/97
Revenue Enhancement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Efficiency Improvement
Revenue Entrancement
Efficiency Improvement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
Revenue Enhancement
j I-)
1:52 PM12126197inidadws Xrejcrence 1149-97x1s
Organize the City Managers Real Estate Advisory Group of private industry
professionals who are knowledgeable in the area of real estate to review 183 Cost Savings
the City's 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 Revenue Enhancement
Advertise rental properties on the government cable access channel. 185 Revenue Enhancement
Responsibility for environmental compliance at City operated properties
should be consolidated into a single department 186 Efficiency Improvement
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 187 Cost Savings
contamination. A#Vk.
The City needs to establish a policy of environmental compliance on all ofits properties and a program of annual operational audits to ensure such 188 Efficiency Improvement
compliance.
Fleet Management Task Force -A complete review needs to be performed tol 188 I I ITabD/Page 7 Internal Control Factor
determine DERM and OSHA noncompliance areas
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, 189 Efficiency Improvement
asbestos etc.
In order to maximize the proceeds from the sale of surplus properly, the
City may want to consider selling on other than "as is" basis, in appropriate 190 Revenue Enhancement
circumstances
There should bean Assistant Manager in charge of Development who
fi
.�= oversees the management of City property and coordinates the Annual
191
Efficiency Improvement
Property Plan with the Strategic Plan.
The City should continue to assemble "expert panels from the business
community to give advice on critical segments of City owned / leased
192
Efficiency Improvement
properties.
Virginia Key and other large parcels of City property should be assembled
zr into single, consolidated RFPs and these should go out to bid. Breaking up
193
Efficiency Improvement
;�
land parcels into different RFPs makes economic development difficult
. i!' With Watson Island, the southwest tract of land should be designated for a
"state
of the art" Science Museum or a use that is compatible with other
194
Efficiency Improvement
cultural/arts uses found in other "world class" cities.
,arse
'jti,<
s;;�a „e With Dinner Key, an RFP to lease the existing convention center and site
i for development that maximizes benefit to the City, but at the same time
196
Efficiency Improvement
e does not erode the tax base of the surrounding commercial properties.
City gfMami - Offim oJBudger 34 0f 3S 1: 52 PM12126197iniriarives Xmfcm=12-19-9Zx/r
City of Miami
Management and Productivity Initiatives
i the Knight Center Nations Bank Building Garage and the land under
Hyatt, the property should be considered for sale since it has been 196 Efficiency Improvement
gated at a loss for 15 years.
i the Department of Off-street Parking, the City should buy all lots and
ages and then develop an RFP to get a private company to manage the 197 Effiaency Improvement
with an initial 5-year renewable lease. Profit to go to the general fund.
e legal Department should obtain concurrence of the City Managefs 198 Efficiency Improvement
floe prior to foreclosure.
ie City should avoid assuming the cost of taking title, maintenance,
wrance and disposal associated with properties which are not beneficial 199 Revenue Enhancement
the City.
Charter Revisions: Revise charter to streamline property transactions:
SFRPC 5 Year Plan
200 Review Page 11 Efficiency Improvement
4130/97
Expedite resolution of the issue of whether an emergency waiver of charter
SFRPC 5 Year Plan
requirements can be used in the disposition of City owned properties.
Review Page 8 Efficiency Improvement
4130/97
Establish a timetable to complete Charter revisions.
SFRPC 5 Year Plan
Review Page 8 Efficiency Improvement
4/30197
Give the City the ability to negotiate property sales up to 20% below market
value on properties appraised below $500,000. These would not need to 200a
Efficiency Improvement
go to the Commission.
Give the City the ability to hire licensed real estate brokers to sell or lease 200b
Efficiency Improvement
City property.
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. 200c
Efficiency Improvement
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 200d
Efficiency Improvement
Cily ojMami - Office oJBudgcl 35 of 35 1:52 PM1212697iniria1ivesXmfcM re 12-19-97xis
APPENDix B
RECOMMENDATIONS
TIMELINES AND
COSTING
City of Miami
Management and Productivity Initiatives
SUMMARY
Strategic Management
$
2,060,619
$
2,856,925
$
2,777,693
$
2,863,490
$
2,933,483
$ 13,482,210
Financial Management
$
1,361,135
$
1,363,783
$
1,364,163
$
1,373,308
$
1,373,176
$ 6,825,E
Technology
$
2,175,000
$
3,230,000
$
2,455,000
$
2,476,000
$
2,455,000
$ 12,790,00u
Human Resources and Employee Benefits
$
266,042
$
15,042
$
342,042
$
12,042
$
12,042
$ 647,210
Capital Assets, Planning and Management
$
1,566,000
$
985,000
$
710,000
$
650,000
$
650,000
$ 4,561,000
GRAND TOTAL $ 7,418,796 $ 8,460,760 $ 7,648,888 $ 7,363,840 $ 7,423,701 $ 38,306,976
Resources to be identified for Management and Productivity Initiatives
SUMMARY
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 - - $ 3oo,r
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
City of Miami - Office of Budget
1 of I
2:01 PM12126/97final time&cost 12-19-97.xis
City of Miami
Management and Productivity Initiatives
W
. ... 4; ..ff. Y. , x .`a,. ._ >. ,N f.. @' ..: <. ..[ .:. .. , ¢:... ,: � ... ,::.y,���,�'.`,. ^ 'aF'^l,`'�'P : ;+. f^�X" .:5 t:';, �^i'Wy'q.''swc.,,-�.v w;;a .,�(': ,'W-¢��.
Formal strategic planning should be immediately reinstated as part of
X X
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
X X
$
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
X X $ 100.000
$
facilitate and expedite the completion of the first strategic plan for the
100,000
City.
Risk Management Department Review -Develop an overall safety &
X X X X X X
health strategic plan for the City as well as for each Department
$
Upon completion of the strategic plan, develop and execute a
X X
communication strategy targeted to residents, City employees,
$
government, the business community, media and location services.
Address ways to increase public investment in development in the City
X X
$
through the strategic planning effort.
Strategic plan should include an Intergovernmental Coordination
X X
$
Element, as the City must coordinate development with a number of
external agencies.
Actively pursue the input of the business community by inviting
X X
$
representatives to assist in the development of the Strategic Economic
Development Plan, the new Comprehensive Plan and the revised Land
Development Regulations.
Determine the appropriate role of the Beacon Council in the planning
X X
$
process.
Institute a forum for resolving resource allocation issues to align all
X
$
major projects within the City's strategies.
Strategic Planning Total $ 100.000 $ $ $ $
$
100,000
City qfMiamik )qfBudgef 12:59 PA1121261Y7fowl fime& -19-97.xls
City of Mian._
Management and Productivity Initiatives
Revamp the Citys budgeting process to match the revised organization X
$
structures cited in the organization plan. The tracking processes should
be flexible enough to facilitate sourcing decisions and management
performance.
Revise the plan to ensure that the actions of OBM are consistent with
X
X
$
the strategic plan by changing "should" to "will" in its discussion
regarding internal control and production of revenue manual.
$
Plan to accomplish provisions of the Intergovernmental Agreement
X
$
should include specific tasks to be completed and timelines to be met.
Plan should include reduction of expenditures, improvement of
X
X
$
productivity, increases in managerial and operational accountability,
improvement of record keeping practices and a schedule of projected
capital commitments.
Critical Success Factors -Limited monitoring of departmental budgets X
$
performed
Link Strategic Planning to Operating and Capital Budgets
X
$
$
Integrate the Capital Improvement planning and asset management
X
$
functions using team approach under the coordination of the office of
Asset Management.
3
Prepare all budgets after the annual strategic planning process has
X
X
$
been completed.
Merge budget and operating plans into one document.
X
X
$
Critical Success Factors -Each department should be required to prepare
X
$
a business planning cycle
Submit capital and operating budgets simultaneously and integrate them
X
$
in terms of goals and purpose.
$
Set capital and operating budget horizons to be consistent with strategic
X
$
goals.
Special attention and direction should be provided on how the City
X
$
anticipates utilizing the Capital Improvements Program (CIP) as a
management tool to maintain and improve infrastructure.
iT
Include provisions In the goals and policies of comprehensive plan for
X
$
ram(;
better monitoring of infrastructure that is controlled by agencies other
than the City.
City ojMami - Office oJBndgel
2 of 51
12:59 PM12126197final lime&cos! 12-19-97.xis
.,.:'t:Y...:C .a3.•— ..._. -,,,!` .uw.
Incorporate contingency planning into budgets.
The Capital Improvement planning guidelines should contain a
requirement to annually update the City's Capital Improvement Element
of the Comprehensive Plan pursuant to Section 163.3177 (3) (a),
Florida Statutes.
Ensure that the economic planning and LDR update efforts are closely
synchronized especially in the areas of capital improvements and
monitoring using the City's Comprehensive Neighborhood Plan as the
master policy document.
Include periodic evaluation and monitoring of Comprehensive Plan
policies and programs and the land development code.
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 achieving goals.
City of Miami
Management and Productivity Initiatives
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
X
X X
$
Strategic Budgeting Total
$ 1,000,000 $ 1,000.000 $ 1,000.000
$ 1,000,000 $ 1,000,000 $ 5,000,000
r�
,:�bs•..>�=<s ...,......:' :•
;.^•`.tij.>»3xS-'•:°s�r'?:'
�si1Y,:;`.,
,s ....:.<.-„�,..._.»....:..�r.'i.
< _ ..._ <« :,t';,._..
._ .,. .>. .. ..,._ .. ,_,-.,<i`dd<... _S„':.^ c.#?�.v
.. ,. ..��z:.t�'a". `;.. d'na
Expedite implementation of the City Manager's reorganization plan as
X
$
outlined in the revised "Five Year Plan". The City should begin planning
how to adopt a more progressive organization structure.
We do
$
Office of Professional Compliance -The Office of Professional
not agree
Compliance should be removed from the department
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.
f
Cityofmam of Badge!
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
12:59PM11116197finalOmek. 4-/9-97.xis
City of Mian.. .
Management and Productivity Initiatives
, ..,i' 'x .�.e:.ui. �. a'-dsn :. n.e .. .k;. '4Yf..`r; Y.'x''���3?✓i�:>. ='�Y'��f.. .. .ez,. '. ^.iii". .:';zi:. e,'. K...� w �'.*Ri'"�.,
The City should perform a mgmnt./operations study of the finance dept. X
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 X X
positions Consider deleting "equivalent combination of training and
experience' for professional credentials
Information Technology Division (IT) -Positions should be created and X X $
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
Operations to enhance customer service orientation and efficiency.
Continue with current plans to transfer some fleet responsibilities from X
,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
96,000 $ 240,000 $ 255,000 $ 267,000 $ 280,000 $ 1,'.
g
$
X $
Solid Waste Management -A better sharing of overhead cost could be
made if all Fleet maintenance operations in the City were consolidated
Transfer responsibilities for other key maintenance to GSA. X X X $ 76,924 $ 80,770 $ 84,808 $ 89,049 $ 93,501 $ 426,052
Organizational Alignment Total $ 592,547 $ 858.412 $ 904,333 $ 948,799 $ 995,890 $ 4,299,981
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
City ojMlami - Of ce ojBudget
X
X X X X X
4of51
$
$
11:59 PM12126197frnal rime&cost 12-19-97.xls
City of Miami
Management and Productivity Initiatives
flhaF --
=Y
:;t: � • ,�,'y'; ., �, , ;� :ry:.:.:'�:>, 'i4:+5. >� P �"=tl'i" "1s � "'�_ "" ^Yt . A°$ »:,�'' ^��� s �,
,�,'°."�; . ��'� � s. ':y,'.?t�:'�,js�`: �y„; ;:j° :\Y .zB`z�°,-'�'< ':,�i>. qe i�'�=:.. �'>F � ,e,> >�'�`'R',�. sp�;a'� re -.s :e r� m�'•s<a:
•-" Fleet Management Task Force -Car assignments should be reallocated X X
on the basis of shift size and duly assignment
X X
Fleet Management Task Force -Vehicle service life should be extended
from 5 years and/or 75,000 miles to 6 years and/or 100,000 miles
Fleet Management Task Force -All surplus cars to the City's needs, or X
ready for retirement, should be auctioned off instead of donated to a
sister city or any other entity
X X X X X
Health Insurance Task Force -Form 5500 for each benefit where form is
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 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 dale
Opportunities Task Force -Increase enforcement efforts to reduce the X X X
level of illegal dumping within the City which is required to be cleaned up
by Solid Waste
Opportunities Task Foroe-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
City ojMan a of &dgel
X X X $
X $
$
X X X $ 195,200 $ 195,200 $ 195,200 $ 195,200 $ 195.200 $ 976,000
12:59PM12126197JLxrlrinrea, 1-19-97,xis
City of Wall, -
Management and Productivity Initiatives
X
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 X X 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
X
Opportunities Task Force -A complete listing of all the City's account
receivable balances should be compiled including revenues recorded in
the accounting records as well as balances which may not be recorded
X
Opportunities Task Force -Should review all services provided to
determine level of fees and charges associated with each service
X
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
X
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
X
when waiver of user charges are to be granted
Opportunities Task Force -Steps should be taken immediately to reduce
X X
or eliminate the financial burden associated with ownership of James L.
Knight Center and Parking Garage and the Coconut Grove Exhibition
Center
X
Complete negotiations with the Florida Dept. of Community Affairs and
enact the proposed Chapter 163. F.S. and Miami Downtown Agreement.
PubliGPrivate developments should include estimates of needed capital
X X X X X
improvements or revenues generated by the new growth.
Cost of Solid Waste Operations -Can save fleet operating costs as well
X
as crew time in Solid Waste by utilizing close -by Regional Transfer
$
/1:59 PM/1/16197fbmi lime&cost 11-19-97.x/s
City of Miami
Management and Productivity Initiatives
;Z
-
.per , 1, I .Z NSkqq
W3,;S 1-eO
WaioFYA998A 5ffl1�"-
nI IA,
$
Cost of Solid Waste Operations -Should have a more detailed evaluation X $
of its use of transfer stations
Cost of Solid Waste Operations -The City appears to lag in its vehicle X $
replacement plan in Solid Waste
$
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
tv
Cost of Solid Waste Operations -The street sweeping component should This function not performed by the City.
$
be independently reviewed by the Metro -Dade Department of Public
Works
$
Cost of Solid Waste Operations -Savings may be gained through We do not agree based on City Commission's goal of a cleaner City. $
reducing disposal and operating cost by elimination or reduction of the
weekly trash sweeps and by eliminating free service to City
Departments
Cost of Solid Waste Operations -Additional savings may also be gained
by billing annually $
Solid Waste Management -Lack of a consistent fleet replacement X $
program will eventually cause a problem
$
Solid Waste Management -Service levels for trash pickup, bulky waste, X $
white goods and illegal dumping are incredibly high
Solid Waste Management -A need for enforcement is obvious X X
$
$ AV
Solid Waste Management -Street sweeping and special events should X $
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 Additional fees are at the discretion of the City Commission $
Solid Waste Management -Should not donate retired equipment but X $
should sell it and revenues from sales should be deposited in a Capital
Replacement Fund
Revenue Enhancements -Eliminate park user fee waivers X $
Revenue Enhancements -increase park user fees when appropriate $
Revenue Enhancements -Develop a park marketing program to enhance
X $
revenues (existing and now)
X
Cio, -f M1.4 of Budge 1 12:59 PA412126197final timea --19-97.rls
- E
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
Department
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
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
tens efforts should be directed to linking compensation more closely to
City ofMianri - Office of Budget
City of Mian,_
Management and Productivity Initiatives
-�„«Q.„..,-,..u,�,<,;,_tl ., .. `...a.. ":L" Xa�x:,$'T: `tf`P '"°•.= :: �]ww, e_ 't Ci .. t_..:^F•."i., ,iE^
$
X $
X
$
X
$
X
$
X $
X $
X $
X X $
X X $
Business Practices Total $ 195,200 $ 195,200 $ 195,200 $ 195,200 $ 195,200 $ 976,ono
X X X X X $ 155,000 $ 155,000
X $
X X X X X $
X $
8 of 5l 12:59 PM12126/97final lime&cost 11-19-97.rls
=k'
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.
Adopt a competitive sourcing policy and process to assure that the City
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
fleet 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.
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 recommended approach.
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.
Institute appropriate contract administration and evaluation procedures
with�r• to out -sourced functions.
7anris- ojBudger
City of Miami
Management and Productivity Initiatives
.-. - _,n-_... .....m...--. .. �:,...,..:,,..,.�,...., �..:: -,.,.> .,_, - x:<..,-,• .m.,...,. �.: :..;-.-....,:., ...,,.....: . v ....� ;� �n .�.. . ,.-: s,-s�. +°r>: cY,-� ..a.r� d.'S.U�'��J`.^�xhr� �
X X X X X X $
X $
X $
$
X $
X $
Benchmarking and Performance Measurement Total $ $ 155,000 $ $ - $ $ 155,000
,' s`..r'afi+�-z�. ,ram.•? ?. - ^.a..
.--K"- •.,� .*,�".A,.,,,'��k�. Via. ,v ✓. a". iaa°z�`..6�."�-.�,�..aik..:aa ws:A,. ..� a'ehL' d:«
X $
X X X X $
$
X X X X $
X $
X $
a -
X X X $
X X X $ 142,872 $ 623,313 $ 653,160 $ 684.491 $ 717,393 $ 2,821,229
X $
11:59 PM11126197fnal Bmeh. 2-19-97,xls
City of Miark..
Management and Productivity Initiatives
$
Sourcing Policy/Implementation Total $ 142,872 $
623,313 $ 653,160 $ 684,491 $ 717,393 $ 2,821,229
3,
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 p[9ject 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 Departments reporting relationship to strengthen oversight and
X X
$
effectively monitor customer service.
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 public/private 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.
$
City of Miami - Office of Badger
100f51 12:59 PM12126197final fime&cosl 12-19-97.xls
City of Miami
Management and Productivity Initiatives
4 ili`;,200
welop city-wide design and landscape standards. X
X X
X
X X
$
Building and Zoning Total
$
$ $ $
$ $
g,
Dntify and communicate to staff and public the mission of code X
X X
X
X X $
25,000 $ 25,000 $ 25,000 $
25,000 $ 26,000 $ 125,000
forcement. Should be considered part of development/redevelopment
[icy rather than punitive.
:ntify specific individual with responsibility and authority for code X
$
forcement to set overall policy and direct compliance strategies.
Id "appearance code" that is enforceable and enforced. Neighborhood X
$
provement is the message.
insider "amnesty" program to have people pay whatever they can on X
X
$
as, but only after property has been brought Into compliance.
plement aggressive enforcement against properties and owners
X X
X
X X
$
fusing to come into compliance, including alternatives to foreclosure
ch as court injunctions, personal property levies, etc.
senior policy level review of property lion foreclosures to weigh X
its/liabilities of City ownership. City ownership of properties not in
iance needs to be addressed.
der K police and fire could assist in identifying possible code X
ons during the course of their normal duties. Could also be
Train personnel for technical and interpersonal skills.
X X
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 tax liens may be appropriate, but there
are legal and policy issues which need exploration.
Code Enforcement Total
$ 5,000
$
$ 5,000
$ 30,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 130,000
City IfAidget 12:59 PM12126197final timm 19-97.XIS
City of Mian:.
Management and Productivity Initiatives
.: .. ,g ax.•. :. �;... .. :.S::a ...�,..,:h�1 Wi't; ax^z+s•ro>, xytx "s�'1= ;ad` •.i:._ p
.'t:mvt ,, ,� .,...... ..�. .. _ , .. 9...���,,; ;.,., <. `�r�_ ..�*��. , ., .._. ,._ <,�.._.x�..,,.� _.,�:.�x ..t�at`.zr�.. x. �..,�.a•..• �a%';:.:e-r:��t�',Ef.�':'�<a=t�`-,.,>. _.� °.�..z_ o ::i;�«!k
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.
Enhance the City's Intergovernmental coordination efforts by increasing X
the level of communications and Involvement with outside agencies on
shared issues such as redevelopment
Explore the value of consolidating into a single agency the responsibility X
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 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 state 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
j accessibility of the available work force to the downtown core.
Review land use in the DowntownlBrickell core to provide for mid -rise X
office development.
Economic Development Total
Strategic Management Total
$
$ 2,060.619 $ 2,856,925 $ 2,777,693 $ 2,853,490 $ 2,933,483 $ 13,482,210
12 of 51 12:59 PM12126N7final rime&cost 12-19-97.r1s
�.Pitlai 3 '-k
..� „a F_ „x'S `ia('_^.. ,�F.�.>,Li ., ,.. '�41. ,-u.n sue:?§..-•`. •Ln... .�.vi�=F
City of Miami
yy Management and Productivity Initiatives
+,b�,�.�,'�T:=.� ,.fin '�'.�;�'.xx.�a �a;.� �zd�. a�• � �:''
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 Stale 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.
In order to Improve and maintain control over general fixed assets, the
city should develop a complete detailed asset records. The following
guidelines should be utilized;
The fixed asset subsidiary ledger should be updated throughout the
year as fixed assets are acquired or disposed.
Periodic Inventories should be taken to verify the continued existence of
the fixed assets. Any unallocated items should be appropriately
X $
X $
X $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250.000
X $
X $
X
X $
X $
X $
if
X X $
X X $
X $
X $
city ofMiam ,, )o1fBoidget { 11:59 PM12126197frtmf time.-19-97.x/s
City of Mian..
Management and Productivity Initiatives
Yw-,W�i 64 4
The fixed asset subsidiary ledger should be reconciled to the general
ledger, at a minimum on a basis. •
X
$
, quarterly
$
$
The City should assign the responsibility of maintaining its general fixed
X
assets to an individual.
The City should implement the following to improve its account
receivable process:
$
A".
g.
$
The City should use a formal invoicing system for all routine billing as a
X
$
V X mechanism for ensuring the timely collection of outstanding invoices.
$
:!,':,,The accounts receivable general ledger control balance should be
X
$
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
X
$
presents each customer's outstanding balance based on the actual due
date.
Y'
Aging trial balance should be reconciled monthly to the general ledger.
X
$
$
Mi< All material differences should be investigated and resolved on a timely
basis.
The City should immediately review the nature of the approximately $9
X
$
million loans outstanding and evaluate the collecting of such balances.
addition all future loans should be supported by appropriate
-In
documentation including formal loan agreement.
The City should create the position of Grants Administrator. Individual
X
� 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
X
$
monitoring the Citys compliance with requirements applicable to federal
and state financial assistance programs.
$
This individual would also assist in identifying additional federal and
X
$
state programs that may be available to the City.
$
City should designate a person to monitor the activities of the contractor
X
$
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
X
$
records to the general ledger, at a minimum, on a monthly basis.
Reconciliation should be reviewed by supervisory personnel.
"A" In preparing monthly reports, the following should be considered:
1-78 -3:-
$
City ofMifand - Office of&dgef
14 ofS1
12:59 PM12126197final firriMcost 12-19-97.xls
City of Miami
Management and Productivity Initiatives
C,3`•Y �x x<�.' $ � �' •>A i'�t�oi �.3^ • 'iC �P`.y�. >�a �%(},1,.,h,' jt�
�';� r���;`��;:�;::,.. �< ::�� -fir•., `<'�
Proper cutoff procedures should be implemented to facilitate for the X
proper recognition of revenue and expenditures.
Standard journal entries should be assigned to specific staff X
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 X
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 X
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 X
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
$
X $
$
X $
X $
$
X $
X $
X $
X $
0
CityojMrar I of1ludger
12:59 PM12126197jmrl fimea 1-19-97,xls
City of Miart-
Management and Productivity Initiatives
Vi61
-z
Monthly review of internally generated reports which may vary in X
complexity from a simple scan of transactions to detailed analysis or
reconciliation.
Policies related to cash which would include preparation of bank X
? 9 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
A v computation of depreciation thereon.
1"" Doubtful accounts and related bad debt write offs. X
k"- 9 Lease obligations and related capitalization policies. X
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.
41
Compliance with debt covenants should be reviewed monthly, or qrtly., X
depending on the nature of the covenant. This review will provide
its debt
greater assurance that the City maintains compliance with
agreements and/or that defaults are identified q
Signature plates and check signing machine keys should be kept locked X
at all times
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
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 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
r
recommend that source documentation and system flowcharts be
C. 1:
maintained.
City of Miami - Office of Budget 16 of5l
12:59 PM/2126197final time&cost 12-19-97.xls
City of Miami
Management and Productivity Initiatives
.. G. ;.; 4� „^,L',^a; Qs..,nyp.^.' x;� .. �s �,' �. "i'i7"^:d'•'.`.,'s�", '�`S,y-yiamid: �=h �t.".s
" a
a, . '... •� pye�ww
i
r '
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
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
to management personnel
Accounting Division -A total solution for the City vs. A point solution for
X
Il ;; departments should be developed based on a determination of Citywide
requirements (Kronos System)
Budget Management Division -Grant Administration and grant
X X
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
>4
Health Insurance Task Force -The plan administrator should have the
X X X X
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
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
needed for health care claims management
X
Health Insurance Task Force -A method is needed to recover
t unnecessary tax expenses such as those found in flexible spending
accounts, pre -lax 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
insurance company with proper current funding and adequate Insurance
coverage and reserves
Health Insurance Task Farce -Employee contributions need to be
X X X X X
deposited into a trust account immediately or deposited with the carrier
or risk bearing agency
Health Insurance Task Force -Look into paying lower administrative fees
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
Pharmacy Benefit Manager to control prescription costs
City
ofM. oj&dger
X $
X $
X $
$ r
X $ 11100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 6,500,000
X $
X $
S -
X $
12:59 PM12126197fira/ rimer I-19-97.xls
City of Mian..
Management and Productivity Initiatives
Health Insurance Task Force -Need to look at coordinating medical X
payments with Workers Compensation where appropriate
z Risk Management Department Review -Perform cosVbenefit analysis to X
y determine if the deductible on the property policy provides the City
ultimate cost effectiveness
ate' i"
u' X X
Risk Management Department Review -Should consider a cost benefit
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
>
accordance with Resolution 95-393 to oulsource the risk management
r
z"f5'
function
Risk Management Department Review -Should hire an independent risk
management consultant to select the appropriate vendor under the RFP
process K 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
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
X
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 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 State should be segregated in the debt
2
service fund outside of the pooled cash account
City oJMiami - Office oJBadger
X
X
X
11:59 PM/1/16197final time&cast 11-19-97.xis
City of Miami
Management and Productivity Initiatives
_..Numerical• , iti l,998
gt= Ea W~x;v
a
X
$
$
Debt Restructuring -Three Three transactions of the Cil s outstanding bond
g- Y' 9
issues could be restructured or refinanced which could provide present
value savings and be available to fund current year projects
yDebt 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
$ €
Debt Restructuring -City Manager should appoint someone, preferably
X
$
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
X X
reflected in the Trust and Agency Fund should more appropriately be
9 Y
$
reflected in the current fund where other employee expenses are
reported
$
Financial/Budgetary Analysis -Analysis of the proper inter -fund transfer
X X
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
FinanciaUBudgetary Analysis -Recommend an analysis be made for
X X
$
each major revenue category
g dpA'.
Financial/Budgetary 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
4
X
$
' 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
Financial/Budgetary Analysis -Recommendations for future financial
X
$
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 $ 1,150poo $ 1,150,000 $ 5,750,000
�anagtimeaidi�i� cW�
am. .:.t:i�".v�3'^w
_
�': �.�:`�`.•: z�;a�:=`�<:.
- � ;
� ...- .ri. Y ..M�.R-,
- >.«.. ... ,'iX>�Y�: >. .r•..4
X.
ate.: _w.°S'u c4'.�.s....
City ojMamee" ojBvdger
L
12:59 PU12126/97jirxrl lime&L 2-19-97.x/s
City of Wait,.
Management and Productivity Initiatives
Establish and implement plan to improve the City's credit rating and
entry into the bond markets.
Establish the goal of developing an uncommitted General Fund Balance X
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
elements:
The City should not issue debt obligations or use debt proceeds to
finance 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 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.
Pension Review Task Force -City may wish to investigate possibility of
issuing Pension Obligation Bonds to eliminate unfunded liability in the
GESE Plan
The City should measure the impact of debt service requirements on
single year, five, ten and twenty year periods.
i 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 policies and procedures.
X
X
X
X
X
X
X
Debit Management and Policy Total
. F'a..,»_.a� - ;'7' , ti-�r;: to«-,•:.
Determine all administrative implications of the Fire Assessment Fee as
quickly as possible in order to identify the impact of potential problems
and 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.
Compare the above information with that of other municipalities to
determine the most effective manner in which to maximize revenue and
cash flow.
,ems
City of idllami - Office of Budget
X X X X X
X X X X X
:�.�:n:ii.�.;%�,� �'' �:t�i�'» �'iiy '�+ tpgP �=vs''.n:�'
12:59 PM12126197final rime&cost 12-19-97.xls
Final_
A'
ve j
Evaluate centralization versus decentralization and cost benefit analysis
of making changes to existing systems (e.g. staffing, technology).
Centralize similar billing and collection activities to the extent practical.
Performance criteria should be established. The City Manager should
A
receive a summary report of billing, collections, receivables and
measurements of performance no less than monthly.
City
I management should immediately review and address all
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
Medical Service Transport fee.
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 preventing misappropriation of funds.
City of Miami
Management and Productivity Initiatives
X
$
X
$
X
$
X
$
X
$
X
$
UM
Billing and Collecting Total
$
$ $ $ $ $ $
1,4
F'wy
�i psi
'V 10 WW' iTZ RM
"1' 10711,171;
Increase the formal bid advertising requirement limit of $4,600 in City
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
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
Fleet Management Task Force -Improve the bids and contracts 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
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 $ 12,500
departmental personnel in effective use of all technology tools.
City -fmi ) qfBudgel
12:59 PU1212619 7fliml fime& z-19-97.xls
City of Miall,
Management and Productivity Initiatives
IN
_;z.',:
'�r.,".A.`\;;:ui, oc •�; _ •..: a.a �`�e .;x_y;;p ..r,`',
"+'.r..�.. .. .�r
>t.
$
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
q
Manual.
Recommendations made by the Procurement Assessment Team
X X
$
sr
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.,
Seclions28 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.),
:4t
to be determined by legal counsel.
,_1
Delegate authority to purchasing manager to approve all acquisitions up
In violation of current Charter provisions.
$
c
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.
X
$
The City should shift its focus from smaller dollar purchases to large
dollar purchases for commodities and goods. Furthermore, the City
should delegate small purchases to user departments while providing
adequate safeguards which ensure sound fiscal con
X X X X X X $ 500 $ 500 $
500 $ 500 $ 500 $ 2,500
State Contracts, SNAPS Agreements, and other contracting methods
offered by the State of Florida and other public entities can and should
be used to reduce administrative costs and reduce delays in receiving
goods and services by user departments. 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 $ 11,000
j public purchasing profession with procurement activities as his/her
primary responsibility. It is also recommended that this position report
at a sufficiently high level in the organizati
City ofMiaml - Office of Budget 22 of 51 12:59 PM12126197firwl rime&cost 12-19-97.xls
;Nuiteilo�l �M€' *'r� "'lni��tfives.= FY �998tlixrliugitflt.�
City of Miami
Management and Productivity Initiatives
$ 4,800 $ 4,800
X $
_
Provide needed training, which should be included in the City's budget,
and certification should be encouraged for all professional staff and
.s; ..j
required in the staff selection process. Improve Procurement staff's
understanding of customer needs with site
K:
Shift staff resources from small dollar purchases to large dollar
purchases and eliminate work that does not add value or is redundant.
i9x<"
X
Obtain a professional needs assessment of the technology requirements
of the City's process (especially looking at integration of
">
procurement
SCI and APS). Retain the services of APS to complete the
implementation of all three procurement purchasing mod
A3 r�
All professional staff must have adequate training on personal PC
applications, including spreadsheets, word processing, Internet, etc., to
X X
improve their analysis and decision- making ability. City-wide
%iel�
departmental training on financial and procurement
Develop and issue a comprehensive customer survey to determine
X X X 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.
a
Upon completion and distribution of a new Purchasing Manual, all City
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
X
z
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
X
functions assigned to Procurement
Procurement Management Division -Practices should be evaluated to
X
ensure a competitive process occurs when procuring large dollar
services
I
Procurement Management Division -All contracting should flow through
X X
the Procurement Division
Procurement Management Division -To ensure purchasing procedures
X X X X X X
I'
are not bypassed controls over the use of'direcr purchases should be
vigorously enforced
City ofMiam .e oJBadgel
$ 135 $
12:59PM72/26/97jiwltime, -19-97.xls
135
I
c2
C;7'�
City of Miah.-
Management and Productivity Initiatives
." <..:`.a.
-rocurement Management Division -A format training program needs to
X X
X X X X $ 4,350 $ 1,550 $ 2,000 $
2,500 $ 3,000 $ 13,400
)e adopted
Jperating Practices -Restructure procedures for bidding/selecting
X X
$
:ontractors
Procurement Total
$ 21,135 $ 33,783 $ 34,153 $
43.308 $ 43,176 $ 175,555
pteri;al await;em wan a€ia ai�it aoin"iiif,�is�'� : 's>�•
�'l.
.-. ... ...s-. ...„�v+^hi $:»._�, .N. ':�+, ,, .'.•.?5^�My��.4�^ ..&^, :.
?: •y .nm. ,9:
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.
Critical Success Factors -Establish Audit Advisory Committee to review
X
$
work of Internal Audit department
X
$
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
X
$
integral participant in Audit Committee meetings
Audit Advisory Committee -Meetings should be conducted quarterly, at a
X
$ -
minimum
Require Audit Committee to meet with the external auditors at least
X
$
twice during the year.
Enact changes to the City Charter/Code to reflect the nature, purpose
X
$
and composition of the Audit Committee.
Internal Audit -The City code requires significant revision to bring about
X
$
the recommendations outlined
Audit Advisory Committee -The City Code should more specifically
X
$
delineate Audit Committee composition in order to provide
representation from varied business backgrounds
Implement a formal policy for selection of external auditors to be
X
$
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 format policy for the maximum length of external audit
X
$
contracts.
City ofMrand - Office of Badger
24 of 51 12:59 PMl2126197firwl lime&cost 12-19-97.xls
i 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
Q> external auditors to ensure that a proper level of independence is
maintained.
Reorganize the Internal Audit Department to report directly to the Audit
9
u Y wv Committee.
h:<h
Internal Audit -Audit function should have dual reporting to the City
g Manager and to the Audit Advisory Committee
Internal Audit -The audit plan should be reviewed by the Audit
fit, qr .. 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
yt - audit results
xd
The Chairman of the Audit Committee should make an annual report of
"°•°'r >> "�: its activities to the City Commission.
r�k Internal Audit -A summary of audit results and responses
ry ponces should be
prepared quarterly and presented to the Audit Committee and the City
Commission
r , Audit Advisory Committee -The Audit Committee should provide a
quarterly report to the City Commission
f ,_ pa., ,� ." . <•-.fir
Audit Advisory Committee -The City Commission should be educated on
their role in reviewing audit results and interacting with the Audit
Committee
1 Hire an experienced CPA with significant exposure to the public sector
Gw as Director of Internal Audit.
s 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.
s
Determine the long-term role of the Internal Audit Department (e.g.
primarily Involved In compliance and internal control Issues, assisting
external auditors, conducting operational and performance audits, etc.)
City ofMam 4 fofBudgeir
City of Miami
Management and Productivity Initiatives
X
$
X
$
X
$
$ '
X
X
$
X
$
X
$
X
X
X
$
X
$
X
$
X
$
X
$
12:59PM12126197frmdfime&+ .-19-97.xis
City of Mian..
Management and Productivity Initiatives
x
—S
6 6 6 Internal Audit -Staff time spent on non -audit functions should be x $
reviewed, audit staff work should focus on auditing
$
k, P 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.
a.
$
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 $
auditfindings.
$
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 $
Documentation of testing procedures should include: x x x x x $
Specific Objectives of the test. x x x x x $
Identification of types of transactions to be tested including transactions x x x x x $
which should test all aspects of the now program or program change.
Inspect test results, Including reported errors. x x x x x $
The actual test 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
City qfAfiaml - Office ofBoidget 26of3l 12:59 PU12126197JInal lime&cost 12-19-97.xls
City of Miami
Management and Productivity Initiatives
jL
CAI !2 q
P!
X
Internal Audit -An audit plan should be developed in conjunction with the
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 $ 300,000
performance audits
In"
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
N
$
Internal Audit -Audit review should be provided to the YEAR 2000
X
systems conversion
$
6'
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,
$
Evaluate whether the organizational status of the Internal Auditing Dept. X
is sufficient to permit the accomplishment of its audit responsibilities.
$
An effective Audit Committee should ensure that audit assignments are X
based on risk rather than political, or other factors.
$
'WA
A 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 $
77-P-,
'4" The City should also develop a comprehensive cash flow forecast.
X X
$
Opportunities Task Force -Comprehensive operating and cash flow
X X
$
projections should be developed for a five year period
City should develop plan to return to fiscal strength, establishing targets
X X
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,
X
$
capital replacement, contingencies, and debt repayment.
00, -fM,.,,;-
qfBndgel
12:59 PA112126197fliml fimen i-19-97.x1s
City of Miarl..
Management and Productivity Initiatives
_A
Opportunities Task Force -Operating cash reserve should be sufficient to
X
$
cover 30 to 60 days of operation
$
Opportunities Task Force -Prudent to maintain cash reserves of
X
$
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 cash
X X
$
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.
'S � The City should continue to work to develop and implement operating
X X
$
plans that ensure the City functions at a surplus each year.
Opportunities Task Force -Projections should address the future courses
X
X
$
of action which will be required for the City to continue as an operating
entity
r. 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 if appropriate
Inconsist
$
ant with
Revenue Options for Consideration -City could, through public hearing,
goals
increase the millage to 10 mills
Revenue Options for Consideration -City could levy up to 20% on each
X
$
non-exclusive franchise granted for garbage collection within the City
limits
Revenue Options for Consideration -City could adopt by ordinance a
X
$
telecommunication ordinance levying 7% on intrastate long distance,
cellular, page and telegraph service
Revenue Options for Consideration -City could levy up to 101/6 on water
X
$
service within the City limits
Revenue Options for Consideration -City could adopt by ordinance a fire
X
$
services fee to all property owners within the City limits
City ofMi-ml - Office offiiudgel
28 ofil
12:59 PAV 2126197final dme&cost 12-19.9 7. x1s
City of Miami
Management and Productivity Initiatives
Final
.-S
N
X
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
$
X
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 X X $
revenues received on mobile homes licenses foes 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 X $
on miscellaneous fees and charges to update for inflation or increased
operating expenditures
$
Revenue Options for Consideration -Suggest City review the allocation of X $
the Local Option Gas Tax and determine ability to change allocation
methodology based on population
$
Revenue Options for Consideration -Adopt ordinance levying road X $
assessment fee to property owners within City limits to maintain City
roadways
$
Plan should include the full costs of operating the City, including X $
employee pensions, compensated absences, self insurance, risk
underwriting and other activities which may require future payments.
Reserves Total $
$ $ $
$
&A-0 AP TIF,
Adopt a written enforcement policy with escalating collection efforts X
$
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
Evaluation of USHUD Funded Loan and Grant Programs -Take X
$
immediate and more aggressive steps to reprogram its current and
unspent prior years allocations of CDBG funds to fund other eligible City
$
City ofM., I qf&dgel 7 12:59 PU121261Y 7final time, 1-19-97.ris
City of Miati..
Management and Productivity Initiatives
y
""`akah�4A0 -M4W
X
$ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $
300,000
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
X
$
Evaluation of USHUD Funded Loan and Grant Programs -
Recommended that City continua to identify pending reimbursement
opportunities and aggressively pursue the repayment of the funds due
Evaluation of USHUD Funded Loan and Grant Programs -City should
X X X X
X X $
vigorously seek funding through the grant programs (see task force
report)
Establish a Loan Review Committee comprised of bank officers living or
X
$
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
X
$
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
X X X X
X X $
immediately suspend all now lending and reprogram those loan funds
and repayments or recoveries from outstanding loans to the greatest
extent possible
X
$
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 processing and approval
$
Consider the sale of defaulted loans to authorized third parties in
X
$
conjunction with continued dialogue with entities such as FNMA and
HUD.
Evaluation of USHUD Funded Loan and Grant Programs -Use of private
X
$
collection services should be explored to enhance the effectiveness of
loan servicing
Multi -Family Loan Programs Total
$ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $
300,000
Financial Management Total
$ 1,351,135 $ 1,363,783 $ 1,364,163 $ 11,373,308 $ 1,373,176 $
6,825,555
City ofMiami - Office of Budget 30 qf5l 12:59 PM121261Y7fuw1 lime&cost 12-19-97.xls
City of Miami
Management and Productivity Initiatives
Floall
V6 EFtp"
"PW
0 W
VV"
ii-Qooi J,
J�
, Y
X0 Hire a highly qualified, experienced private sector firm as soon as X X X X X $
W p ssible to assist the City in doing a detailed technology needs
assessment and develop a technology strategic plan.
T'� X X X 2. 3
X X
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 X
via Information Technology.
The individual must provide direction and vision, negotiate effectively X
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 X
current vendor to provide for interim system requirements until
information technology needs assessment is completed.
1 - 'A Immediately address those priority issues regarding inter -network X X
communications and architecture decisions. This can be determined
prior to the completion of the technology strategic plan.
Several Information Technology Systems require immediate X X X X X
improvement in the area of internal controls. Some of these issues
require high priority attention in order to ensure the continuity of the
City's operations in the case of unplanned interruptions
K
Fleet Management Task Force -implement a complete Management X X
Information System with a Fleet Management module
Establish internal, cross -departmental Steering Committee to report X X X X X X
regularly to City Manager on policy/budget/management and resource
allocation issues related to technology.
Er.
Q Q
Duties and responsibilities of the committee should be clearly defined in X X X X X
a formal charter and should include the review and approval for:
Major changes in hardware or software. X X X X X
Research and development projects under study. X X X X X
The results of any cost / benefit analysis. X X X X X
Software application development or acquisitions. X X X X X
City ofMramllk )ofBudgel
67,500 $ 90,000 $ 15,000 $ 35,000 $
15,000 $ 222,500
12:59 PA112126197fumal fime& -19-97.x1s
City of Miam.
Management and Productivity Initiatives
Sy
.`�.."."�"..a....ti$.z..."°s'S'?T%�1�.."�`�4'.^f....�5'K:".�P�i.��e."t�8__�"��.��.v�:.Y`1:.eeir4.,,�Z..e�uF.�..�'°% ';�✓_,i.2:� .a.}:.I"_
Project priorities.
X
X
X
X X
Resource allocation in terms of time, personnel and equipment.
X
X
X
X X
Controls in effect.
X
X
X
X X
Conversion plans.
X
X
X
X X
Emergency procedures, contingency and physical security plans.
X
X
X
X X
Insurance coverage.
X
X
X
X X
Budgets and plans pertaining to the IT function.
X
X
X
X X
IT User Group Committees should be established and be responsible
X
for:
Communications between users and the IT Steering Committee,
X
X
X
X X
management and regulatory agencies.
Establishing user priorities.
X
X
X
X X
Monthly service requests reporting by application.
X
X
X
X X
Coordination and approval of request for IT services.
X
X
X
X X
'Authorization of data file removal from data centers.
X
X
X
X X
I
I
Review and approval of file retentions.
X
X
X
X X
Coordination between users and IT.
X
X
X
X X
Maintenance of commonality of system.
X
X
X
X X
Review and approval of cost estimates.
X
X
X
X X
User participation in new system requirements.
X
X
X
X X
User group Committees must be held accountable for all program,
X
X
X
X X
changes and requests for IT services from their group.
Critical Success Factors -Establish Information Systems Steering
X X
X
X
X X
City ojMiami - Office oJBadgel 32 of 51
12:59 PM/2126197frnal time&cost 11-19-97.xis
City of Miami.
Management and Productivity Initiatives
_. ..s,+':i,a;, .^t �='l, t•. ,�8 '§_+._ <..�- w.x r, ., }%•:i ;: .pro: "i: Y,�' - s r, "�%:' m.. x"£;:s, .,q..., .:.,.
. :; b• �-r'sZ,},•„' „: ::;.; '.a=.. :'. ••� , e• ',:'•'' : ,,� � �•` Nd1 ?,Y•_: .,,!ppx �..�.• �i�, .�� a.,R"s ,�' S�:p��"' ,g'st°•ynr ': a..x�.. �,b:y �.' i'a' .f�.;r.' :.'Ma,.
�•�Y� � rkv „° t.,`a N.ti' �;�h�• to pA,�,��".� � 1 �"' �a. 'e" x a. � .ro:�� _. � 8 ... _
;3�^ :r"rs �: �'rk' _ x.ar .�u:f'" r m�e, .,.i,'� L,. _ + �§ yu•, S��
fow
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
58V 'In 6dut�iv 1CtA WI'$f�Sil�F fWStzr8, i'�y'r .' ..•.r:'' = Id. x'R. _ e � ,,•�Fm�.�'�sp:. ......3� x ,�?.n �•., ..y �±�* 'rTn' �i �,,�>: .,� V�
P!` `�1d. �. <�.. . °;';!£s' , ..gin „4<:,",4?'°P.� � ro'�, _ .: t° u °�;>:�t,� �»....>v?,:o . �."•r'`f'.'-,.,,'?;:a_r':-��..:� ...<., .. _Y. ..,. .1:....,....,.. .. T"'`..'
$
Opportunities Task Force -Steps should be taken immediately to X X X X X $
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 X X X X X $
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
:E
$
Information Technology Division (IT) -Funding needs to identified and
X X
X X
X
$
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
X X
X X
X
sectors to develop different information systems and cost -sharing
approaches. A natural partner might be Metro -Dade County and local
Universities.
Planning and Direction Total
$ 2.067,500
$ 2.090.000 $ 2,015,D00 $ 2,035,000 $ 2,015,000 $ 10,222,500
"'Vear2000./.pica§tel �i ' dap . to _ gyp."` �,"w =:i <
•1 ., ..ix'e` ';R��i.., i, .^.4�:•'-
.... .. .... ...... 'S°. 1+y''`:.
'f, a,, .•<a",°°a.�".9.....
s:?•.. ,a s, .->..
: x a�,. .: ;•<.-., ? n y »,t ;:k; �'•
ti4,mFi%:+£ .�„ .�'fJ'-i 'vSS;'..'w rr"1�,: yi 9.+i `M �'�t. .f
F: ' fir: .4, Y=^,• �i` ...
L,sti.v;� �=`t',�
- ',v €j
r�". •:tl�'
"^ti %i:U 2 'i'�;,W :eR✓.yi
°.: r.,n .: :4. a��2�..L . Hv .�.
3r•fi;s:"t ,+tyc
v'p'sa:X�f
..ix:i';,,,
.
c e
., a'Y' c. 'a
•t+ �`r i, R �z £fit-�/."�';.iH tg +i ti
Seek a private firm to simulate the Year 20DO and provide a test bed for
X X
$ 52,500
$ 50,000
$ 102,5D0
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
X
$
required experienced personnel resources to complete the project
available without culling other required system development and
maintenance.
City 1,�
ojXfiaa oJBudgei
12:59 PM12/26/97ffrml rime&
e-19-97.xls
City of Mian-
Management and Productivity Initiatives
Information Technology Division (IT) -A plan needs to be devised and
X
X
$
` funded to complete the task of making City systems Year 2000
compliant
A comprehensive business continuity plan should be developed,
X
X
X
X
X
$
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.
X
X
X
X
X
$
, N'
$
ba — Minimize disruption to key service/business functions.
X
X
X
X
X
$
Maximize awareness of the City's fiduciary responsibility adopting a
X
X
X
X
X
$
"due care" mentality.
Analyze the citizen/business community awareness implications of
X
X
X
X
X
$
extended service interruption.
Determine exposure and design preventable measures.
X
X
X
X
X
$
Determine recovery and restoration needs and facilitate that recovery
X
X
X
X
X
$
and restoration.
S -
City should develop and implement adequate plan maintenance
X
X
X
X
X
$
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
X
$
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 specific testing procedures for its Disaster Recovery
X
X
X
X
X
$
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.
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.
F �
m"
Management should develop and implement a formal vehicle to
X
X
X
X
X
$
e,
communicate any personnel changes to security.
'a
b:
$
City ofMjami - Office of Budget
34 of 51
11:59 PM12126197firwl time&cost 12-19-97.xls
City of Miami
Management and Productivity Initiatives
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
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
$
�S
Year 2000/Disaster Recovery Total
$
87,500
$
1,130,000
$
430,000
$
430,000
$ 430,000 $
2,5t. /
e .,., :,.,s<rt: ,�-. ,�.�,?•>'.:r::. -...r ,: !i4bs_ ....s
i cNn0logY. . nrlg
r..-*,w;r: ;:'
J,4 .—.,.^'�;a•y"
,,e:•:.
,-�;�.
m ;:., fl :.; y<.-,
�.;•�
Emphasize training of all Department of Information Technology Staff.
X X
X X
X
$
X X
X X
X
$
20,000
$
10,000
$
10,000
$
10,000
$ 10,000 $
60,000
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
X X
X X
X
$
City employees.
Technology Training Total
$
20,000
$
10,000
$
10,0D0
$
10.000
$ 10,000 $
60.000
Technology Total
$
2,175.000
$
3.230.000
$
2.466,000
$
2,475,000
$ 2,455,000 $
12,790,000
Integrate Management Training with specific goals and development of X X X X X $
the strategic plan.
Include GIS professionals in the list of professional planners and other X $
disciplines necessary to produce and carry out the City's strategic plan.
X $ _
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 X $
the division
City ofm..A I ojBedget 12:59 PM12126/97jtwl time, ,-19-97.xis
C71
t�
>, Internal Audit -Stall 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
'i, 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
r • performance
The City should not hold a register of qualified applicants for two years
The employee appeals process under Civil Service Board should be
reviewed. A common solution elsewhere appears to be having a
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.
Once review is completed, commit resources to provide skills
development opportunities.
Accounting staff should be required to undergo minimum continued
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
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,
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
competencies inventory, preferably by means of objective skills
assessment tests.
City oJMand - Office oJBadget
City of Miart..
Management and Productivity Initiatives
5g.:":.r.,..,.,.„..,;:�r.�.:r:.T242^�i"i�,v..§�";✓TS3.T�ir`d`+f�rh:�z�i$f`F:':n".ti�a.`9'��`r';:'
X
$ 1,042 $ 1,042 $
1,042 $ 1,042 $ 1,042 $ 5,210
X
$
X
$
X
X
X
X X
$
X X
X
X
X X
$
X
$
X
$
X
X
$
X
X
X
X X $ 114,000 $ 10,000 $
7,000 $ 7,000 $ 7,000 $ 145.000
$
X
$ 52,000
$ 52,000
X
$
X
X
X
X X
$
X
$
36 of 5l 12:59 PM/2126197jnal rime&cost 12-19-97.x/s
City of Miami
Management and Productivity Initiatives
>'.::•. 1: 1'W <;rv. se'7,.f .S�"0nr, :' :;'3;'+� �.. •.. _ ., ._.ra�`i:i: �'F •.-':a. ., , ,..� �.a;.i'_ r_.�&�. ..`:aiti �-,r'�:'sk'.. asi"�,•.., ,�.'=aR�>"SxtY�.=. SR,*>.`<-�<.-_. ,T.1''y=yia
..r :,«yfi ��.+. y;....._.y.<;.r .,�,..n _._. _ _._.... ':;3j:� „y.,,< .� rs : F ° ^«t ei `•a Ll'. ,
!w:,::° ... <°� y,)..o.<,,.,s' i,: .:C ,y «:.&"�',. �.F i^. ''.�".'� R .. :.. ,,., .'n L�•r'�:�.. ,.. .a. 3 v, i."�t`i
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.
Internal Audit -The skill set of audit staff should be broadened and staff X
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 State government in regard to X
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 X
practices
Consider elimination of the two tier wage system. Market rates should X
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 X X X X
contributions of personnel at all levels.
Workforce and Leadership Total
Review Unit Certification Issued by PERC as to each bargaining unit to X X
determine which positions were included in the unit.
Advise each union that as to those positions that are not part of the X
certified bargaining unit it is not the authorized representative.
Modify the Civil Service Rules to:
City ofMlam of Badger
$ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 20,000
$ 171,042 $ 15,042 $ 312,042 $ 12,042 $ 12,042 $ 522,210
11:59 PM12126197flaal rlme&, .49-97.xls
Q
City of Miah..
Management and Productivity Initiatives
:Tr<eK"�R.`�aE_�:..i4n:.;°x "A t .,x`xn.„.:K: .. _, .« f, ..«.,,,.t-.....u.:v...<.eis _""=`..
Extend the list of positions which are unclassified to include managerial X
and confidential.
Reestablish Managerial and Confidential Employees X
Remove the limitation of the five unclassified employees in one X
department.
Employee Classification Total
�s •. .. - . ..- _ .. _ .. -.,. _a;n•. <•u.:.ds
.. :•nb'g..;ss'Mxns<. "'3:A'• ""3'r'S9i:S.FF rx...",....,. .,r,.. <.... «..;'9o-:.'&:':ax.
Submit a proposal to the Commission/Oversight Board of the City to
X $ 75,000
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
X
proposal for third party administrative handling services
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
$ 75,000
$ 30,000 $ 30,000
City of ttami - Office of Bridgel
38of51
12:59 PM12126197final rime&cost 11-19-97.xls
City of Miami
Management and Productivity Initiatives
. > ,a:'`$;.:� ;'.'a:zi;:�a.; a�> `,t`:; cam, o^v'=s"> '§i i`� ": `; s .';.�""�<� �<w�-a-N","<:"�"i3"=ri>"..:;ti•. :,
Figal;,,„a,�a >..,>. ....-.,r _•�; ,_......, .,...:.....-:r:.....".s;;4s+st��'.��:�.r�,,,..,.,w�, ' �,��.,.:.:<�;.�-d'��ts`,=.d.ia';:a;��, .n...
Health Insurance Task Force -A claims and financial analysis should be X X X X X
reviewed annually by Benefits, Finance, Human Resources/Labor
Relations and the City attorney
X X X X X X
Health Insurance Task Force -Should perform a quarterly reconciliation
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 all 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
skills.
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 X X X X X
Wide Safety Committee)
Risk Management Department Review -Fill the Police Department Safety X X X X X X
Coordinator position within the next 30 days
Risk Management Department Review -Identify the roles and X
responsibilities of all City management as it relates to safely and hold
them accountable
Risk Management Department Review -Complete an assessment of X X X X X 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 X X
effectiveness of vendor selected to implement the managed care
arrangement for the City of Miami and the program.
City of"an of Budget
12:59PM12/26N7fLm111me6. o-19.97.rls
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 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
City of Miah,
Management and Productivity Initiatives
X
$
X
$
Workers' Compensation Claims Initiatives Total $ 75,000 $ - $ 30,0D0 $ - $ - $ 1
rr ". F:., dY:.
F(11 O e� (f16U1'anCfl j�Atlaflt3 . ..
p�.y
�y '•N""°�,"-t,`r
'-.,'zg.H
3;,5. T� rF.s,•,..•y ;..e;. a ` :;'.Et:?":`:°S°' r 'x�=. .�$zr�"....r-��; r"' .:'t"i�s,'.� For
;.Ie... �.. ,�" ,.>,. -ri'r ';�y ^�'wn`'• �,. pia
•. ..,??;
-: a,I.°i3. .;, ., ?"�.,�L. ^...4'`e. "ici: ^�• s-�' �J:' t=a• •y`r
,b:a'
.... .. ,. - , . . s ..._ .,, , .
.......
., <. ..
... .,< .. _,, .. ,...^.„�.:. 3,• ^. .,> <,- ,a""9. , F < a . :F�'. �..
Group Benefits and the Human Resources / Labor Relations
X
$
Departments should all report to the same ACM.
X
$
Health Insurance Task Force -The Benefits Department should be part of
the Human Resources Department or Labor Relations Office
X
$
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
X X
X
X X X $ -
writing as plan administrator
The City should immediately employ an insurance Benefits consultant to
X
$
be on hand for development of pricing and Benefits models for
insurance Benefits procurement.
S
X
$
Health Insurance Task Force -An insurance broker should be available to
the management negotiating team to provide actuarial analyses
X X
X
X X X $
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
X
$
services of a an insurance broker available for use upon demand
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
Health Insurance Task Force -Attorney and Chief Financial Officer before
X
$
incurring obligation
City ojMand - Office of Badger
40 of 5l
12:59 PM12126/97finaf time&cost 12-19-97,xls
r .:, ..........,,��=mow.
Health Insurance Task Force -Should explore the possibility of
�p contracting for some benefits utilizing the combined leveraging ability of
multiple local communities
Health Insurance Task Force -A strong subrogation clause should be
established and enforced within the health care plan
t
1 Health Insurance Task Force -Cost containment incentives for third party
administrator or health care contractor should be added to the contract
Health Insurance Task Foroe-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
Health Insurance Task Force -Should periodically evaluate the 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
voluntary (employee pay all) basis, supplemental life and disability
insurance
Health Insurance Task Force -Reevaluate the proportional cost for health
care borne by the City where retirees are concerned
Health Insurance Task Foroe-Should expand flexible benefits and avoid
paying the employer portion of taxes on earnings
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.
Health Insurance Task Force -A Summary Plan Description of all
benefits should be prepared and distributed to each plan member with
all terms and conditions clearly spelled out
Engage a private employee Benefits communications and enrollment
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
delivery system
City ofAfi_ eofBudger
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 X
X
X
X X
$ 20,000
$ 20,000
S -
12:39 PM12126/97final dme. L-19-97.x1s
City of Mian.. -
Management and Productivity Initiatives
$
• 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 to "Prevailing Benefits" clause.
Employee Insurance Benefit Total
$ 20.000 $ $ $ $ $ 20,000
17=
7�V�
MW WNSE5
'V,
Retain the management right to subcontract or privatize any and all
x
x
$
.4, aspects of job functions without further bargaining over decision.
W 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.
$
$
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
$
Officer. This includes grievances, work peace issues, concerns, etc.
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
P
$
01y ofAflami - Office of Badger
41ofJ1
12:59PA412126197fWa1fime&cos1 12-19-97.x1s
City of Miami
Management and Productivity Initiatives
_r.'•3sx.,i::; 'r.. ;a' >�.a{�x .,:es,•,: :?.s•�:..: .-s. :..t-
.,m.z�...� .,,. to _ r-� ..,_...'?,.•..sa :��,- '; 1�i�s."w...c��,�.. .aa .... mS:Ww..s,±. �s:r e` ."� zs cLl�'9,.r.�r�..sa'�i� :_....r. .`.;$R..'s' ��k.s�-.R:,
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 $
limit bargaining to impact only.
$
Collective Bargaining Agreements Total $ $ $ $ $ $
.., ' Y,
',,r W� a'�az.;;�_�:*z ��'r.:r� �x,:•>�«'�.<'�. .�a-� ,z.r-, z�,rs�
rs, -
.
^
"x
Continue the Labor -Management Committee meetings in which the X X X X X X $
Union and the Administration can discuss specific issues and ideas on
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 clear 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.
Increase frequency of communications between employees and City X $
administrators.
Effectively integrate Union officials into the strategic planning process of X $
the City.
To improve communications, City management needs to recognize and X $
respect the leadership roles of Union officials within their organizations,
City of Miami
Management and Productivity Initiatives
' 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)
Incorporate the fourteen Guiding Principles related to Asset
X
$
Management identified by the SFRPC in its memo of 4/1/97.
Emphasize improved asset management in general as a means of
X
$
r achieving fiscal stability instead of land lease options.
' I Apply the principles embodied in the Checklist for Successful Asset
Management identified by SFRPC in its memo of 4/1/97
X
$
8-.
$
Fleet Management Task Force -Review remaining individual vehicle
X
X
$
assignment and vehicle take home policies
X
X
$
a`• f Fleet Management Task Force -Work with using agencies to determine
<' fleet size and composition necessary to perform departmental functions
Fleet Management Task Force -Evaluate and establish a motorpool,
X
X
$ 96,000 $ 96,000
where applicable
Fleet Management Task Force -Implement a vehicle
X
X
$ 650,000 $ 650,000 $ 650,000 $ 650.000 $ 650,000 $ 3.250,000
replacement/disposal program using proceeds from sale of vehicles to
offset new vehicle purchases
Operating Practices -Establish a preventive maintenance program for
X
$
park facilities and equipment
X
$
Operating Practices -Consider maintenance costs and other operating
costs prior to the approval of Capital Improvement Projects
Maximizing the City's return will include pursuing alt. 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
Coconut Grove Convention Center Increases -Increase the CGCC sold
X
$
out lot from $800/day to $1500/day
TC
Coconut Grove Convention Center Increases -Add a move-in/move-out
X
$
rate for CGCC
City ofMlaml - Office ofBudget
44 oj5l
11:59 PM12126197final lime&cost 12-19-97xls
City of Miami
Management and Productivity Initiatives
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X
Coconut Grove Convention Center Increases -Increase the minimum
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
Review of Marina Rate Increases -Recommend increasing rate for X
sightseeing vessels from $.40 B to $.80 If
Review of Marina Rate Increases -Recommend increasing rate for X
commercial vessels comparable to the County
Review of Marina Rate Increases -Recommend elimination of the 20 % X
discount to City residents
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.
X
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
Asset Management Policy Total
k.�.°�: -: `.'t ;;B:.X'. .ip.,::-ffi?:a:r ib7#,9:ERw4.it:.�:-?l•,-t..z �.��a�,�:F`?"R.K'`il:r�.:e��5.�.s.'�"*;g:.
Complete the Inventory of all City owned and leased property. X
Develop a strategy for continuously updating the comprehensive X
inventory of City property.
Opportunities Task Force -Should compile a complete inventory of all X
real estate parcels owned by the City, including location, description,
current use, etc.
X
Opportunities Task Force -Parcels should be categorized according to
their use, i.e., city operations, leased to third party, vacant, etc.
Document current condition of all properties (e.g. brief description,
digital pictures).
Conduct a comprehensive review of all facilities subject to the X
requirements of the ADA to determine the costs for required
improvements and begin the budget process for these improvements.
City ofMJ, oyrBodger
X
$ 746,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 3,346,000
$ 6
$ 60,000 $ bu,uuu
h 12:59 PM12126/97frnal rlmec--19-97.rls
City of Miar►..
Management and Productivity Initiatives
Revise LDRs to include monitoring of roads, water, sewer, drainage and X
any other infrastructure that may be controlled or affected by agencies
other than the City.
Prioritize properties identified for sale or lease and establish potential
market value through assessment and/or appraisal.
Establish future property tax potential
Add the following info. to the property inventory spreadsheet: book X
value, assessed value/date, appraised value/date, potential annual
property tax base based on current/future use, annual maintenance
cost, surplus status.
X X
$
X X
$
X X
$
Plus targeted disposal year, projected future use, and parcels designed X
as parks and recreation, public space.
Property Inventory Total
Develop Annual Property Plan that supports the proposed City Asset X
Management Policy.
Ensure that all transactions involving City owned or controlled properties X
will be subject to the review and approval of the Asset Management
Division of the Planning and Development Department.
Opportunities Task Force -Analysis should be performed for each parcel X X
of lease property to determine certain factors (see task force report for
factors)
Include an assessment of City capital facility needs and operations in X X X X X
the projection of past, present and future deficiencies and financial
obligations.
Conduct a comprehensive review of all facilities to improve public safety X X X X X
and to reduce liability.
X X
Opportunities Task Force -Parcels currently used by the City should be
analyzed to determine certain factors (see task force report for factors)
X X
Opportunities Task Force -An analysis of surplus parcels should be
a 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
City of&fitami - Office of Budget
46 of 51
12:59 PM12126197frlwl lime&cost 12-19-97.xls
City of Miami
Management and Productivity Initiatives
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 identified and analyzed.
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 specific 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
Revenue Enhancements -Sell inappropriate park properties (or revert X
them to original donors)
Each City Department should prioritize its properties /facilities based on X X
their Department's Strategic Plan.
The Annual Property Plan should include a summary of the following X X
information: Properties to be sold, properties to be leased. leases due
to renewal, tax impact, cost of maintaining.
Evaluate and implement measures to utilize public parks and recreation X
facilities to better generate revenue.
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.
Annual Property Plan Total
$ 250,000 $ 175,000 $ - $ - $ - $ 425,000
CIO, em, Y of Badger
12:59 PM12/26/97final rimed, : 19-97.x1s
City of Miant,
Management and Productivity Initiatives
One department should be responsible for and adequately funded for X X X $
• the maintenance and facility operations of all improved City properties.
Consolidate all property management / maintenance functions under
'i: GSA
Transfer the property maintenance individual currently in the X $
bye Department of Planning and Development to the GSA Department.
at
Develop maintenance standards according to properly type. X X
ni—I
4stablish a permic met vittance ramfar
W
$
Analyze current property maintenance needs and integrate into X $
0, maintenance plan and budget.
Adopt space/office standards that would apply to all departments. $
A.Establish standards for office use and allocation.
,
To assure that the maximum sales or lease revenues realized from X $
properties targeted for sale, priority must be given to repairs and
maintenance of these facilities.
N: $
Establish a fund for preparing properties for sale in annual budget. X $
Property Maintenance Total $ 300,000 $ $ $ $ $ 300,000
'R=w 'k R-H
UWA W i 6 n 'NP
Y
Complete inventory of rental property that provides the following X $
Information.
A1MO7 n MMO
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.
t!� F'V�' WI A
City qrMiaml - Office qfBtidgel 48 of5l 12:59 PU12126197final 11me&cost 12-19-97.xls
Flfifltaw
City of Miami
Management and Productivity Initiatives
jally review the inventory to assure that the city is maximizing its X X
n on rental properties as per Annual Property plan.
atop a standard lease terms outline in conjunction with the City X
nay that will best protect the City's interests as a guideline for future
9 renewals.
biish and enforce a policy that the Department of Community X
ning and Development must approve all lease proposals and
arty purchases.
e the collection and tracking of lease payments to the Community X
ning and Development Department. Integrate rental revenue
mation in the financial system.
I an active campaign to identify delinquent tenants and bill for past X
due. Develop and enforce a policy for late payment which includes
isions for late charges and eviction.
Lease Administration Total
ganize the City Manager's Real Estate Advisory Group of private X
fustry professionals who are knowledgeable in the area of real estate
review the City's leases and provide advice on leasing practices as
Private Business Review Total
rental properties on the government cable access channel. X
Marketing of Rental Property Total
$
$ 110,000 $ 110,000 $ 60,000 $ $ $ 280,000
W.,..,7 $i,'s�„:<
s -
$ 50,000 $ - $ - $ - $ - $ 50,000
Responsibility for environmental compliance at City operated properties X $
should be consolidated into a single department.
$
The City s 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 contamination.
City oj am ojBodge! d' 12:59PM12126197firwllimea-19-97.xls
City of Miamr
Management and Productivity Initiatives
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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 X X X X X
performed to determine DERM and OSHA noncompliance areas
In order to maximize the proceeds from the sale of surplus property, the X $
City may want to consider selling on other than "as is" basis, in
appropriate circumstances.
Environmental Issues Total $ 50,000 $ 50,000 $ $ $ - $ 100,000
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There should be an Assistant Manager in charge of Development who X $
oversees the management of City property and coordinates the Annual
Properly Plan with the Strategic Plan.
The City should continue to assemble "expert panels from the business X X $
community to give advice on critical segments of City owned 1 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 cultural/arts 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 tax 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.
City of Mland - Office of Badger 50 of 51
12: J9 PM12126(97Jbra1 rime&cost 11-19-9741s
With the Department of Off -Street Parking, the City should buy all lots
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.
City of Miami
Management and Productivity Initiatives
X
Key Property Disposition Total
$ $ $ $
$ - $
_..
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The legal Department should obtain concurrence of the City Managers
X
F y
$ VRi
Office prior to foreclosure.
The City should avoid assuming the cost of taking title, maintenance,
X
$
insurance and disposal associated with properties which are not
beneficial to the City.
Charter Revisions: Revise charter to streamline property transactions:
a resolution of the issue of whether an emergency waiver of
requirements can be used in the disposition of City owned
Establish a timetable to complete Charter revisions.
Give the City the ability to negotiate property sales up to 20% below
market value on properties appraised below $500,000. These would
not need to go to the Commission.
Give the City the ability to hire licensed real estate brokers to sell or
lease City property.
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.
Cityofl'am ofBudger
Foreclosure Process Total $ _
$ _ $ $ $
$
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X
$
X
$
X
$
X
$
X
$
X
$
X
$
Charter Revisions Total $
$ _ $ _ $ $
$
Capital Assets Planning and Management Total $ 11566,000
$ 985,000 $ 710,000 $ 660,000 $ 650,000
$
4,661,000
-
12:59PM12126197firwlrimen .-19-97xls
APPENDIX C
RECOMMENDATIONS
DEPARTMENTAL
COMMENTS
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.
Address ways to increase public investment in development in the City
through the strategic planning effort.
Strategic plan should include an Intergovernmental Coordination
Element, as the City must coordinate development with a number of
external agencies.
Actively pursue the input of the business community by inviting
representatives to assist in the development of the Strategic Economic
Development Plan, the new Comprehensive Plan and the revised Land
Development Regulations.
Determine the appropriate role of the Beacon Council in the planning
process.
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.
a:
:'TT
City of Miami
Management and Productivity Initiatives
Building & Zoning May need changes to Charter.
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.
Office of Budget Such communication initiatives are incorporated in the Strategic Planning Process.
CD Dept. & Planning Dept. Increasing public investment requires joint planning by the Economic Development staff in Community Development Dept. and the staff in the
Building & Zoning/Development Dept.
This will be accomplished using existing organizations like the Beacon Council and the Greater Miami Chamber of Commerce.
The Beacon Council could be asked to be the convener of the business community representatives.
Office of Budget Such forums and conflict resolution initiatives are incorporated in the Strategic Planning Process.
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 to the
entire planning process.
City ojMrami - Office oJBudger 1 of 53 1:53 PM12126197Masrer comments as of 12-19-97x1s
Revise the plan to ensure that the actions of OBM are consistent
the strategic plan by changing "should" to 'Will" in its discussion
regarding internal control and production of revenue manual.
Plan to accomplish provisions of the Intergovernmental Agreement
should include specific tasks to be completed and timelines to be met.
Plan should include reduction of expenditures, improvement of
productivity, increases in managerial and operational accountability,
Improvement of record keeping practices and a schedule of projected
capital commitments.
Critical Success Factors -Limited monitoring of departmental budgets
Link Strategic Planning to Operating and Capital Budgets
Integrate the Capital Improvement planning and asset management
functions using team approach under the coordination of the office of
Asset Management.
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
Submit capital and operating budgets simultaneously and integrate
them in terms of goals and purpose.
Set capital and operating budget horizons to be consistent with
strategic goals.
Special attention and direction should be provided on how the City
anticipates utilizing the Capital Improvements Program (CIP) as a
management tool to maintain and Improve infrastructure.
Include provisions in the goals and policies of comprehensive plan for
better monitoring of infrastructure that is controlled by agencies other
than the City.
Incorporate contingency planning into budgets
City of Miami
Management and Productivity Initiatives
Office of Budget The Office of Budget will change fhe word "should" to'WiII".
The Five Year Plan is in place. Need middle managers to implement and control.
The Five Year Plan Is in place. Need middle managers to implement and control.
i
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.
These two functions are separate in our Five Year Plan.
Office of Budget Once the Strategic Planning Process is in place, that is the intention.
SW - Adrienne Macbeth SW - On -going 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 Internal Audits
This will be implemented along with benchmarking.
Office of Budget The operating plan Is already a component of the Budgeting Process. The process will be fine tuned and improved.
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.
CIP and departments The purpose of CIP is to maintain and improve the infrastructure of the City.
CIP/Planning Comprehensive Plan will be reviewed for possible inclusion of these provisions
Budget Cannot budget for all contingencies but it will be done when possible.
ar
City of Miami ojBudget 1:53PM11/I6/97Mactercomments, 19-9Zx/s
City of Miami
Management and Productivity initiatives
The Capital Improvement planning guidelines should contain a
CIP/Planning
The Comprehensive Plan will be amended annually in compliance with relevant Florida statutes.
requirement to annually update the City's Capital Improvement Element
of the Comprehensive Plan pursuant to Section 163.3177 (3) (a),
Florida Statutes.
Ensure that the economic planning and LDR update efforts are closely
CIP/Planning
These efforts will be closely reviewed.
synchronized especially in the areas of capital improvements and
monitoring using the City's Comprehensive Neighborhood Plan as the
master policy document.
Include periodic evaluation and monitoring of Comprehensive Plan
Planning Dept.
These are and will continue to be ongoing activities.
policies and programs and the land development code.
Require managers to demonstrate how proposed projects are in line
Office of Budget
Once the Strategic Planning Process is in place, that is the intention. We are endeavoring to include this initiative in the FY 98-99 Plan.
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 achieving goals.
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Expedite implementation of the City Manager's reorganization plan as
Office of Budget
Ongoing.
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
Shirley Richardson
The office should be removed from the Department of Internal Audits & Reviews as said department is outside the umbrella of law enforcement.
Compliance should be removed from the department
This impedes the ability of the office to function at an optimum level of effectiveness & efficiency.
Office of Professional Compliance -Consideration should be given to
Shirley Richardson
Ideally, the OPC should be restored to its original mandate, that of monitoring ongoing police misconduct investigations reporting directly to the
incorporating this function within the Police Department organization,
Office of the City Manager. Currently, within the Dept. of Internal Audits the office functioning in review
reporting directly to the Police Chief
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 The need for civilian oversight is based upon what's going on within the local municipality. There are in excess of 100 civilian review boatif
Office of Professional Complience-A review of other local jurisdictions nationally, the majority of which were established as a result of rising tensions between police & citizens &
of similar size should be conducted to determine, if there is a need for a
separate review function, how it is typically organized
civilian distrust of the internal review process. The citizens of Miami have already supported having an independent system to oversee the
investigation of police misconduct complaints. Their concern too was that the MPD was not adequately investigating
their own officers & demanded civilian 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 Operating Procedures.
Solid Waste Management -Solid Waste should be separated from GSA Managers Office Accomplished.
Move aggressively to reestablish an appropriate management structure GSA - Juan Pascual GSA - Filled Superintendents of Lt. Fleet & Heavy Equipment Garage, Fleet Manager. Need a Secretary IV and a Executive Assistant for GSA
from first level supervisor through middle management to department Directors Office
head.
Survey to determine perceived and actual departmental shortfalls in GSA - Alex Martinez GSA - Fill middle management and line positions that are D145vacant will improve efficiency and level of service. Additional staffing is needed
staffing. Each department must justify the tasks to be performed that in plumbing and air conditioning functions.
cannot be completed at current staff levels.
City of!land - Office of Budgel 3 of 53 1:53 PM12126197Masler comments as of 12-19-97.x/s
e
City of Miami
Management and Productivity Initiatives
The City should perform a mgmnt /operations study of the finance dept. Finance Department Additional staff requirements have been identified. Recruitment announcements will emphasize education proficiency.
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.
Success Factors -'Selectively review and waive hiring freeze of
is Consider deleting 'equivalent combination of training and
nce' for professional credentials
Information Technology Division (IT) -Positions should be created and
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
office requirements can be met through rearrangement of existing
space vs. leasing new space.
Consider placing Risk Management under the Assistant City Manager
of Finance and Administration to consolidate similar functions.
placing Procurement under the Assistant City Manager of
is to enhance customer service orientation and efficiency.
ilinue with current plans to transfer some fleet responsibilities from
Fire and Police Departments.
Fleet Management Task Force -Strongly recommended that the
services performed at General Services Administration, Miami Police
and the Miami Fire Departments be consolidated Terminate the current
Police lake -home policy
Solid Waste Management -A better sharing of overhead cost could be
made if all Fleet maintenance operations in the City were consolidated
Transfer responsibilities for other key maintenance to GSA.
City needs to adopt appropriate policies and procedures to assure
good business practices are followed.
R. Sue Weller Subject to labor negotiations.
Finance Job descriptions have been reviewed and modified to provide for the best qualified person to be employed.
IT The effective and efficient operations of Information Technology organization is predicated upon the establishment of key positions requ'
new technology and the augmentation of existing programming staff.
Fill the current vacancies including the addbacks and provide for adequate supervisory personnel. The filling of these vacancies will allow us to
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 - Juan Pascual 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 facility dependent on size/sourcing of fleet.
Manager's Office Table of Organization is currently under review for possible modifications.
GSA - Judy Carter 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 - Juan Pascual GSA - Completed as of 10/1197.
Juan Pascual Lt. Fleet operations are consolidated under G.S.A. (Completed)
Managers Office Accomplished
GSA - Alex Martinez GSA - This initiative is currently ongoing, discussions with City Manager & Director of GSA
SW -A. Macbeth SW - Develop departmental policies in support.
Office of Budget Integral part of the City's Five Year Plan.
City ojm.am;' ojBudgel
1:53 PMI2/26/97Mosler comments, -19-97.rls
flow processes of the physical plant
Fleet Management Task Force -Car assignments should be reallocated
on the basis of shift size and duty assignment
Fleet Management Task Force -Vehicle service life should be extended
from 5 years and/or 75,000 miles to 6 years and/or 100,000 miles
Fleet Management Task Force -All surplus cars to the City's needs, or
ready for retirement, should be auctioned off instead of donated to a
sister city or any other entity
Labor Relations - R. Sue Weller Labor Relations - Tied to negotiations on eliminating take home car program.
Office of Budget Only if cost effective to do so, given the City's operating environment.
Juan Pascual This is a legislative policy decision.
Office of Budget Sister City program calls for sale to Sister City at fair market value.
Health Insurance Task Force -Form 5500 for each benefit where form is Health Benefits - Nancy Fernandez Function being performed by group benefits pursuant to finance's instructions.
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
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
workout plan including a one -to -two year short-term plan
Opportunities Task Force -Workout plan should be designed to
immediately improve the operating cash flow through significant
revenue Increases and expenditure reductions
Opportunities Task Force -Long-range workout plan should consider
partially eliminating accumulated deficits through sale of real estate,
refinancing debt and righlsizing City services
Opportunities Task Force -As soon as possible, the City should
determine its actual financial position as of the current date
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 Waste
Opportunities Task Force -Increase efforts to audit or otherwise verify
that the City is receiving the full amount due from franchise revenues
from commercial solid waste companies
Health Benefits - Nancy Fernandez Group Benefits is a part of Risk Management and has been empowered with responsibility
Manager's Office This item will be considered for potential funding in the future depending on the financial condition of the City.
Manager's Office See this Five Year Plan.
Manager's Office Accomplished.
Manager's Office Accomplished.
Manager's Office Accomplished.
A. Macbeth One Chief and six Sanitation Inspectors hired FY 98. Results should materialize within two quarters.
Finance/Solid Waste Treasury Management collects franchise revenues. Solid Waste provided Internal Audits with FY 98 commercial haulers for audits.
City oJMiamf -Ofce oJBudget
5 of J3
1:53 PA1121261977t4arter comments as of 12-19-97.xls
NumeHea; ati;
ortunities Task Force -Transaction on New Miami Arena should be
)wed in detail to ensure that the return to the City is commensurate
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
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
receivable balances should be compiled including revenues recorded in
the accounting 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
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
Center
Complete negotiations with the Florida Dept. of Community Affairs and
enact the proposed Chapter 163, F.S. and Miami Downtown
Agreement.
PublidPrivate developments should include estimates of needed
capital Improvements or revenues generated by the new growth.
Cost of Solid Waste Operations -Can save fleet operating costs as well
as crew time in Solid Waste by utilizing close -by Regional Transfer
Stations
InCost 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
CltyojAfiam oJBedget
City of Miami
Management and Productivity Initiatives
Manager's Office Accomplished.
Manager's Office Transaction closes on December 19, 1997.
Office of Budget Part of the Benchmarking initiative.
Finance This study has been accomplished.
Finance Ongoing study to be updated annually.
Finance Fully loaded cost information has been made available.
Finance Requests for fee increases have been forwarded to the City Commission.
Finance This policy has been adopted by the City Commission.
Finance Plans to sell or otherwise dispose of these assets are under consideration.
Planning Dept. Estimated costs of capital improvements and projections of estimated new revenue will continue to be a planning element in publidprivate
development projects.
Henry Jackson & Operations Crew Dept, budgeted for dumping 45% of all materials at Transfer Stations @ $54 per ton.
Henry Jackson & Operations Crew Budget allocation for tipping fees should allow for 45% of loads at Transfer Stations.
1:53 PM12126197Masrer comments,-19-97.x/s
I
City of Miami
Management and Productivity Initiatives
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i { PHenryY
Cost of Solid Waste Operations -Should have a more detailed
Hen Jackson 8 James Tomas Weekly reports and analysis of % of material dumped al all locations resented to the City Manager.
P Ydumping P P Y 9
evaluation of its use of transfer stations
psc° 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
Cost of Solid Waste Operations -Solid Waste costs should incorporate
Adrienne Macbeth Finance Dept. will be requested to cost out and suggest internal services charges for these items.
administrative costs directly related to billing, including mailing costs,
staff support and computer processing and disk space charges
r,
: �Waste Operations
A. Macbeth, J. Kay &Fred Hopson City's Public Works Dept. be able to assess and advise as to cost effectiveness of moving functions to PW or as SW department;
r•:w Cost of Solid -The street sweeping component
' should be independently reviewed by the Metro -Dade Department of
�a g Public Works
should
budget reductions suggest identify alternative funding.
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 depts pay for service.
weekly trash sweeps and by eliminating free service to City
Departments
Cost of Solid Waste Operations -Additional savings may also be gained
P. Chircul & 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.
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 alternate source identified by
have their own cost and revenue centers, and be sell -sufficient
Budget and that special events be self-sufficient.
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 the City Managers Office and GSA toward this end.
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. Commission Directive
Parks & Recreation Dept. Done. City Code Amended
Revenue Enhancements -Increase park user fees when appropriate
Revenue Enhancements -Develop a park marketing program to T.Griffin Need additional staffing
F. enhance revenues (existing and new)
Revenue Enhancements -Establish a process to credit the Parks and T. Gruen Need additional staffing & coordination with Budget
Recreation Dept. for existing and new revenues generated by the parks
City ojMiami - Of/ice ojUndget 7 oj53 1:53 PM12126/97Masrer comments as oj12-19-97.x1s
Revenue Enhancements -Review concession permilslrevenues
(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 Department
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 of Miami
Management and Productivity Initiatives
T. Griffin Coordination needed with Procurement
Budget Grants writing position established to help secure additional grants.
N/A - Parks Maintenance Division is now under Parks
Parks & Recreation Dept. N/A - Budget process set by Budget Dept.
Office of Budget Once the Strategic Planning Process is in place, that is the intention.
T. Griffin Some manuals in place. Revisions pending new org. structure
T. Griffin Procedures to be reviewed by Parks operations & GSA
Juan Pascual Part of the Fleet Management initiative on this issue.
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
Integrate Benchmarking, performance measures and management by
objectives into all work operations.
Success Factors -Finance and Internal Audit staff must be held
!able and departmental objectives and metrics to measure the
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.
City oj/ian oJBudget
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a.xxx .+
SW -A. Macbeth
SW - Department will institute such measures.
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.
1:53 PU/2126197Master comments. .-19-97.x1s
I
f-
City of Miami
Management and Productivity Initiatives
./n
,
„d
All City departments should be formally trained on benchmarking and
Office of Budget
performance measures.
Periodic reports on significant benchmarks and performance should be
Office of Budget
made a part of the City Administration's report to the Commission and
the citizens.
Information Technology Division (IT) -A formal tracking mechanism
Info. Tech - A. Stancato
should be developed to create measurability of performance
Make sure each major work function significantly improves the
Office of Budget
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 Office of Budget
plan for implementing total quality concepts throughout the
Part of benchmarking initiative.
Part of benchmarking initiative.
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.
Part of benchmarking initiative.
Part of benchmarking initiative.
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s#oq poi %irn i+imeittaH n" �.=
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 of fleet
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 GSA - Juan Pascual
track all costs related to City Services as a basis for sourcing decisions.
Apply Sourcing Decision Guide similar to other cities (Based on review Office of Budget
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 Office of Budget
decisions.
Director of GSA should develop a schedule for sourcing GSA - Juan Pascual
implementation.
Fill middle management positions that will not be affected by GSA - Juan Pascual
outsourcing.
Public Facilities: Christina Abrams
M. Camayd, Personnel Officer
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 outsourced ie. 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 eva
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.[ (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 interns.
City ofMiami - Office of Budget 9 of J3 /r53 PM/2126197Master comments as of /2-19-97.x/s
City of Miami
Management and Productivity Initiatives
ittvea :;........r .... _ .
Institute appropriate contract administration and evaluation procedures Manager's Office Responsibility for contract administration will be assigned for any service oulsourced.
with respect to out -sourced functions.
. ..,-.-,:... ...-: i'Le:c=_:..•=.a>a'. ze:"SsY.• :':.�... ... ... .�.: to _; ay. 'ri� �.,.`„;�':..z a.-�._ r� , rxd. .,<__,,, - � r,�a:s^'S;,',� e'',y '°, 2��.4 3i,;x:�: ,:t�'.. �,y.l,yi_r,.�,. .�-s,:. {, ._ .3:-;.>:.�s<. i. r:;a:y, �•
Increase operational efficiency and expedite development permit
process as follows:
See initiatives #101-103 below.
Review, improve and streamline all land use related application forms. Hearing Boards, Planning Dept., Law Dept. Completed in Fall of 1997
Create a system that is project driven rather than permit driven. Planning Dept. Will be setup as a division within the Dept. by mid-1998.
Institute a more effective use of technology. Planning Dept. Ongoing with G.I.S. Division.
Develop 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 conducted.
the plans review area has in place a performance maamura 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, stopsJunch & breaks.
In, addition Chiefs of each section are given daily report which lists all inspections scheduled without results entered. Chiefs are able to see ff
the daily reports are on target with the computer report.
Office of Budget Part of benchmarking initiative.
Correlate funding of Department with performance measures and Bldg. & Zoning Not applicable.
objectives.
Office of Budget Part of benchmarking initiative.
Revisit staffing qualifications. Technical expertise and experience are Santiago Ventura The South Florida Building Code has strict requirements for personnel enforcing the code. The Dept. of Personnel Management works closely
critical to efficiency and customer service. with our department in qualifying in accordance the code, all of our inspectors & plans reviewer positions.
Employees are certified by both the State & 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.
Review compensation and benefits in light of the rest of the City and Building & Zoning - Hector Lima The inspectors are allowed safety supplies (hard hats, safely shoes, raincoats, and flashlights) as per OSHA.
within the overall reorganization plan.
R. Sue Weller, Labor Relations Officer Subject to labor negotiations
Review Department's reporting relationship to strengthen oversight and Santiago Jorge -Ventura The department reports to an Assistant to the City Manager.
effectively monitor customer service.
Improve relationship and coordination with Dade County to expedite Santiago Jorge -Ventura Relationships have improved and there is coordination. The permit process requires that plumbing applications be approved by DERM & WASA,
the permitting process. each in different locations resulting in travel time for customers. In July 1997, we requested that a DERM & WASA
City aJ a oJBvdget 1:53 PM12126197Master comment. ,-19-97.xis
City of Miami
Management and Productivity Initiatives
_ ry �.. S=J-cR;:nry<. ..r.>� Mp. .».� m yy-oi <St.° �, •: �� ,vP°9; .;;,<g `.^,.
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'tnitiativea', � ... �> ::: -.:,., ,,; w.,; ".�-:..;...,, �,_:<.,. , s ,_r .. � . •: - � .<, t " � �'-.� s ; � r.,<: r�, g �._ :. ,. � � ,.-..,.;�,'�
..,... ,, x°�+,<..,: >'s^...,: w<�..`-'......>•.N:-,�<>,..,<•,, cat, ri�r' .r � �?<�. Vim'. "s„'E•e"'''�:;�°:„�k.=.^�"'``� #^e;rxa'';`�, k�` `•�=
.. �r,F '.�.:-" "° c �� ^i. "��, ?���t,` .a x8µ. ; =g.y• r=� � € � �� �,�. ,��� : y<6 < �;- 'd e-s.r.z �'
r> °� �;,�,'y; ? representative be situated at the Miami -Dade County, Planning &Regulation Dept. The request was granted and the process has been
simplified.
§,
" Expedite non -controversial items supported by staff. Development Regulation Division and 1 year; requires substantial Code Amendments.
- Hearing Boards Section of the Department
'.
^z of Development Building and Zoning (DBZ);
Lourdes Slazyk, Assistant Director and
Teresila Fernandez, Chief of Hearing
$ Boards.
Request that the County appoint one person to expedite processing of This would be impossible to implement. Approvals must be requested by either the owner of the property or the contractor not the City. Most of
necessary county approvals of City permit applications. our customers go to Miami -Dade county for applications and are able to take care of any approvals.
Centralize and simplify the process of applying for land development Development Regulation Division and 6 months to 1 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 1 year - may require Charter and Code Amendments.
and redevelopment. the Department of DBZ; Arleen Weintraub,
Development Administrator.
Seek public input on the City Charter to improve the land lease process Law Dept. Hearing Boards will assist if needed.
and fee structure, including cost of appeals.
Develop city-wide design and landscape standards.
Identify and communicate to staff and public the mission of code
enforcement. Should be considered part of
development/redevelopment policy rather than punitive.
Development Regulation Division and Citywide "Exterior Facade Code" already being implemented; Landscape standards under Dade County already in place; other specific area
Hearing Boards Section of the Department design standards to be developed in conjunction with special district designations; citywide design standards not(conl.)
of Development Building and Zoning (DBZ);
Francisco Garcia and Enrique Nunez
(Division staff)
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.
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.
City ojMrami - Office oJBedger 11 oj53 1:53 PM1212&97Mas1er comments as oJ12-19-97.x1s
City of Miami
Management and Productivity Initiatives
Building & Zoning
Implement aggressive enforcement against properties and owners City Attorney's Office
refusing to come into compliance, including alternatives to foreclosure
such as court injunctions, personal property levies, etc.
Santiago Ventura and Hector Lima
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 Police, Fire & NET
violations during the course of their normal duties. Could also be
personnel for technical and interpersonal skills. Community Development / N.E.T.:
Building & Zoning:
None
Consider connecting enforcement districts with Commission Districts as
needed. City needs fair and equitable policies appropriate to each
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 and policy issues which need exploration.
private/public partnership should be formed between the Greater Manager's Office
iami Chamber of Commerce and the City of Miami. This partnership
Could develop a strategic plan for the economic development of the
ily of Miami. This would be for the entire City.
Enhance the City's Intergovernmental coordination efforts by
increasing the level of communications and involvement with outside
agencies on shared issues such as redevelopment.
Explore the value of consolidating Into a single agency the Manager's Office
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 Manager's Office
incentives for development and to attract business to the City of Miami.
of Building 8 Zoning has instituted procedures to legalize illegal construction following Miami -Dade County Ordinance
City Attorney's Office implementing
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.
/� I
y
Police and Fire working with NET offices in referring possible code enforcement case violations.
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.
On -going Cross Training and state certifications.
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.
Could be one of the projects of the Training Coordinator if funding approved.
Review has been made and staff has recommended against changing boundaries, unless requested by the public.
The analogy between CE liens & tax liens is not appropriate, since CE liens are not for services rendered to the public, except for those SCE
liens. These liens for the most part would have little value on a sale.
The City will be working with the Chamber of Commerce, the Beacon Council and the Blue Ribbon Task Force to create this partnership to
foster economic development in the City.
Outside agencies will be involved whenever there are mutual Issues on redevelopment projects within the City.
Rather than a single entity, coordination through a single office should be established.
The only entity that has eminent domain powers, other than the City, is the CRA.
CiyojMam ojBedger
1:53 PM/2/26/97M4ster comments a /9-97.x/s
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.
The 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 stale 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.
City of Miami
Management and Productivity Initiatives
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Manager's Office Information will be disseminated through this economic development office.
Manager's Office It is agreed that the DDA should be part of the economic development agency of the City.
Managers Office The economic development office will be in charge of this coordination.
Managers Office The economic development office will work with education in this effort.
Managers Office The City will support all transportation improvements to make access to Downtown easier. Effort has begun in meetings with Metropolitan
Planning Office, Florida Dept. of Transportation and others.
Managers Office Land use in the Downtown/Brickell core already allows mid -rise office (and residential) development. The problem is finding developers willing
to locate there.
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financial Ntana emend t s, R _y �,: rr . x� :,. M :.gg� . ;}r..
g o-... r. ,. .. � • - yi. Y•. <„e : a�('r .. .,.'„^Z`'.`. ,. x -.� e< .. .e e ..'R, .:. .. ^, ray • Y`` :. �a�$. _7 .. V . .. 3'X, R,4 .�,.,. t.`�.S.,y"'Sa' c, L...q'•"" 4�i„� n:v
fJrgai traii3iiai.L�Gr;tr6[ iri Ft�i nce irk -Via. ,: ff V; ,
.. .. .."�. ... ..Y.... .:,s•. �++w ..,r_ >,�3-r �.a.„�,E. . ^_£. rr_,. �ia., �'.�...�-r :�.« ., '`s.:c „;�; '.6,e�•ta .:t :v::u,.:,..;r:. xt.'va.x.�..•�'':.•s�...k":7i. .� X."..
The organizational criteria in the Five Year Plan should be applied to Budget The Table of Organization 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.
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 Officer to
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 andl or City Manager.
Public Facilities: Audit revenue sources within Public Facilities on a annual basis.
Substantial operational auditing to ensure that approved policies and Office of Budget
procedures are being followed.
Review of travel and expense accounts of the commission and senior Finance
management in accordance with predetermined objective criteria.
Review of new or revised City projects while In progress and/or within Finance
F..,: six months or a year after completion to compare with financial
U11 M" forecasts and enhance future projections.
Part of benchmarking initiative.
Travel cost service in use for all travel.
Costs associated with City projects will be continually reviewed during the construction period and final costs and revenue projections, if any, will
be reviewed and reported on after the project is operational.
City ojMami - Office ojBedget 13 oj53 1:53 PM12126197Master comments as oj12-19-97.x1s
City of Miami
Management and Productivity Initiatives
mppanves =,
a44, i 8"t` xp„ ...��yry,i`3 �', s*- � 3r :(%' 'u - S-$fjb . . d.� 3 , � � �'y>' • : 3" :��� "m `�:Yn ..°,•: , i::y',_ �'k�'•
,'fir s"��;iy'�•;. �sA� �°���
y;� �,Ne �"- ��e� i ° > ' ;° •ai _ �z�r7'x^: § �">
,W..t.
Staff to review GFOA's "Recommended Pracllces for State and local Finance Staff is currently reviewing document and will proceed with an implementation plan.
Governments." Develop appropriate implementation plan.
Reconciliations of the City's cash accounts should be performed Outside accountants have been assigned and have begun the reconciliation process. Reconciliations will be prepared accurately and on a
monthly. These reconciliations should be prepared in a standardized timely basis every month.
format designed 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 151h of each month and reconciliations are completed by the 25th of each month.
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 Finance Departments have been instructed to submit inventory reports in a timely manner,
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 and maintain control over general fixed 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;
The fixed asset subsidiary ledger should be updated throughout the Finance A new 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.
Periodic inventories should be taken to verify the continued existence Finance Subsidiary ledgers are reconciled to lhe,general ledger on a monthly basis. A physical inventory of all the City's assets is planned for fiscal year
of the fixed assets. Any unallocated items should be appropriately 1997/98.
investigated.
The fared asset subsidiary ledger should be reconciled to the general Finance The reconciliation is completed on a monthly basis between Marshal and Stevens Fixed Asset System and SCI, at the subfund ledger level.
ledger, at a minimum, on a quarterly basis.
The City should assign the responsibility of maintaining its general fixed Finance Departments have been instructed to submit Inventory reports in a timely manner.
assets to an individual.
City should implement the following to improve its account Finance The City currently has in place a formal invoicing system and does perform routine invoicing of miscellaneous receivables.
ivable process:
The City should use a formal invoicing system for all routine billing as a Finance The City currently has in place a formal invoicing system and does perform routine invoicing of miscellaneous receivables.
mechanism for ensuring the timely collection of outstanding invoices.
The accounts receivable general ledger control balance should be Finance The Finance Department, with SCI and ITD, is working on producing a detailed report to reconcile the accounts receivables to the general
supported by an appropriate level of detail that provides management ledger control account to determine the allowance for bad debt.
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
date,
ing trial balance should be reconciled monthly to the general ledger. Finance The Finance Department, with SCI and ITD, is working on producing a detailed report to reconcile the accounts receivables to the general
material differences should be investigated and resolved on a timely ledger control account to determine the allowance for bad debt.
f
City ojAilam; ? . ojBudget 1:53 PM11/16197Masrer comments, -19-97,xls
City of Miami
Management and Productivity Initiatives
The City should immediately review the nature of the approximately $9 Finance After researching the approximately $9 million in loans, the City discovered that
million loans outstanding and evaluate the collecting of such balances. term debt. This will be adjusted to reflect a reduction of the reserve.
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 Office of Budget The Finance department has hired a Grants Administrator.
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
Office of Budget
The Finance department has hired a Grants Administrator.
monitoring the City's compliance with requirements applicable to
federal and state financial assistance programs.
Budget
The grant administrator will monitor and coordinate with accounting staff to ensure that the centralized grant files are complete and conta^l,
copies of all relevant information.
This individual would also assist in identifying additional federal and
Office of Budget
The Finance department has hired a Grants Administrator.
state programs that may be available to the City.
Budget
The grants section in the Budget Division will continue to research potential grants and disseminate the information via a monthly newsletter and
via individual memos to department directors.
City should designate a person to monitor the activities of the
Alfredo Duran
Alfredo Duran, Housing Development Coordinator, will be responsible for monitoring the contractor to ensure compliance with the Relocation
contractor to ensure proper adherence to the requirements of the
Assistance and Real Properly Acquisition Policies Act.
Relocation Assistance and Real Property Acquisition Policies Act.
Budget
The 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.
The City should implement the reconciliation of detailed subsidiary
Finance
The supervisor responsible for the Moore Receivable System will provide a monthly reconciliation of detailed subsidiary accounts to the SCI
records to the general ledger, at a minimum, on a monthly basis.
General Accounting System.
Reconciliation should be reviewed by supervisory personnel,
In preparing monthly reports, the following should be considered
Finance
See the following initiatives (163-166)
Proper cutoff procedures should be implemented to facilitate for the
Finance
Cutoff procedures have been implemented to facilitate for the proper recognition of revenue and expenditures.
proper recognition of revenue and expenditures.
Standard journal entries should be assigned to speck staff
Finance
Specific staff is assigned to enter journal entries. -
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
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
ledger balances.
system.
All standard closing procedures should be written and be incorporated
Finance
Once modifications to the SCI system have been made, standard closing procedures will be written and incorporated into an accounting
into the City's Accounting and Procedures Manual and made available
procedures manual.
to the accounting staff.
The City should implement a financial reporting function, including the
Finance
The City is currently negotiating the purchase of a Comprehensive Annual Financial Report module from SCI. This module meets the
appointment of an individual who will be responsible for compiling and
government accounting and reporting standards and will also be used for internal reporting.
drafting the annual general purpose financial statements and other
required reports.
City ojMland - Office oJBadget 15 of 53 1:33 PM1212619Waster comments as of 12-19-97.x1s
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.
in depth manual of accounting policies and procedures should be
pared 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.
list of data processing reports, including appropriate descriptions of
iurce, 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
Monthly review of internally generated reports which may vary in
complexity from a simple scan of transactions to detailed analysis or
lies related to cash which would Include preparation of bank
inciliations, controls over cash disbursements and cash receipts,
procedures regarding the investment of excess cash on hand.
Purchase and capitalization of fixed assets and related procedures for
computation and depreciation thereon.
accounts and related bad debt wrtie-offs.
CityofMa4 A of Badger
City of Miami
Management and Productivity Initiatives
;j„•r;%'iz�n :.;t?� ;. ;;` s?L',,," '*;'�°�i:> 'i:s :R;;-.°;t °?:ar'.p. ,; �r.;< '*Sx: sr.<•�a�,Yi S rN e�.:>a
, :
:�° r °w�$atx ��a£�:�' _�°'�g"�1�' o � t x p`>' ' . =' � •.. � r • �� �, ,. ^, ��_ 3 S�
Info. Tech -A. Stancato The current GSA work order system is over 12 years old and lechnologicallyobeolete. 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.
Therefore, is the recommendation of the Info. Tech. department that a commercial software package be purchased to replace this system. The
new system will have a client l server architecture.
Develop scope of work and RFP for the project
Follow RFP process to select firm and award contract.
Addition of an IT programmer position to support this application (Costs reflected in staffing section below).
Procure and install additional hardware required to support the client l server application. (Assuming that All and PC replacement projecr^ ^re
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.
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 under development.
f
1:53 PH12126197Masrer comments, : 19-97.xls
City of Miami
Management and Productivity Initiatives
Policies related to the recognition of revenue and expenditure with
Finance
The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development.
particular attention paid to year-end cutoff procedures.
The assignment of accounting responsibilities and expenditure
Finance
The Blue Ribbon Panel will address this issue and shall be incorporated into the training program currently under development,
approval procedures.
Compliance with debt covenants should be reviewed monthly, or
Finance
City treasurer will review the debt covenants on a quarterly basis.
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
Finance
Current procedures require that signature plates be kept locked in the safe at all times. Supervisors have been counseled about compliance
locked at all times
with the established procedures. As of 1-15-97, the check -signing machine was secured in an office.
Reimbursement claims for the NET Neighborhood Jobs Program
Finance
An individual will be appointed, in the grant accounting section, to be responsible for preparing the reimbursement requests for all grants
should be prepared and submitted to the appropriate granting agency
received by the NJP.
immediately. Additionally, procedures should be established to ensure
that reimbursement claims are submitted in a timely mann
CD/NET
Neighborhood Jobs Program was reimbursed $700,000
The City should formalize its standards and procedures regarding
IT Attempts to standardize were not successful due to inadequate staffing The purchase of a package addressing developments methodology
system development and modification, as well as standardize those
should be considered. Recommendations from the financial auditors are welcomed.
programming and analysis issues not currently covered.
A set of comprehensive operating and application system
IT Technical Writers were eliminated in the 1989s. Recommendations from the auditors, as to how to update formal procedures and create user
documentation standards should be developed and implemented by
manuals with current level of personnel, are welcomed.
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 IT Technical Writers were eliminated in the 1980's. Recommendations from the auditors, as to how to update format procedures and create user
recommend that source documentation and system flowcharts be manuals with current level of personnel, are welcomed.
maintained.
Management should continue to eliminate material due from / to other Finance In the revised fiscal year 1997 the City made provisions to pay back all interfund balances. The City's five year operational plan and prop.
fund balances. fiscal year 1998 budget plan also made provisions to assure that similar circumstances do not occur.
Accounting Division -Should adopt formal closing procedures posting This has been accomplished.
payrolls immediately after the pay period
Accounting Division -Monthly and year end closing should take place on Monthly closings take place by the tenth of the month following and the annual closing occurred December 1 St.
a speedier basis
Accounting Division -High level accounting reports should be distributed Reports are being created to provide management information on a timely basis.
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 Office of Budget The Finance department has hired a Grants Administrator.
reimbursement processing is not uniform throughout the City
City ofMrami - Office ojBudget 17 oj53 1:53 PM11/16197Masrer comments as of 11-19-97.x1s
City of Miami
Management and Productivity Initiatives
�ae.�<•.. .a:.."1'..°,:..�: :., :.. ,.:..: ��:;:-.`,.., . t':'. .....,_ <,a. :•a>: .. ..><:.'yi6;x:se�.�e'-'�..�3: �:a'K.. _:..-i.:'..... �.. .,.-, ...- aa�„v.'..�'.;;�'C°;ix�.'�'Ls:.��..<
Budget Management Division-CIP contracts should have funding codes Office of Budget Done.
identified and approved by Budget prior to award
Health Insurance Task Force -The plan administrator should have the Health Benefits - Nancy Fernandez This should be performed by our internal auditors
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 Health Benefits - Nancy Fernandez Done.
some unnecessary expenses involving subrogation and coordination of
Health Insurance Task Force -An audit, review and control function is Health Benefits - Nancy Fernandez Periodic audits are to be performed by the City's internal audits department
needed for health care claims management
Health Insurance Task Force -A method is needed to recover Health Benefits - Nancy Fernandez This is a negotiated item to be addressed in next year's labor contract's negotiations
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 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
insurance company with proper current funding and adequate budget and will be allocated In future budgets.
insurance coverage and reserves
Health Insurance Task Force -Employee contributions need to be Health Benefits - Nancy Fernandez Monies are deposited into the City's General Fund and invested according to established practices.
deposited into a trust account immediately or deposited with the carrier
or risk bearing agency
Health Insurance Task Force -Look into paying lower administrative Health Benefits - Nancy Fernandez 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.
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 it the deductible on the property policy provides the City
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 we'll
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 -Reopen 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.
function
Risk Management Department Review -Should hire an independent risk
management consultant to select the appropriate vendor under the
RFP process if the Insurance Committee is not reestablished
Cityojanrf' oJBrrdge!
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.
1:53 PM12/26197Masrer comments u. .-19.97.xis
,P
City of Miami
Management and Productivity Initiatives
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Risk Management Department Review -Should consider changing the Risk Management - Mario Soldevilla Study to be done comparing costs under the two methods.
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 3117/97. Debt Service Fund is wire transferred to separate bond issue
i,*-, Service Funds to be held by outside trustees and not to be included account.
within the City's pooled cash
Debt Restructuring -Concerned that at least $1.5 million in debt service 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 transferred to separate bon——ue
Service Funds in accordance with the legal documents account.
Finance An escrow agreement was established with First Union National Bank on 3/17/97. Debt Service Fund is wire transferred to separate bond issue
Debt Restructuring -The use of cash in the Debt Service Funds in the account.
p
first half 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 Finance An escrow agreement was established with First Union National Bank on 3117/97. Debt Service Fund is wire transferred to separate bond issue
service fund outside of the pooled cash account.
Debt Restructuring -The Utility Service Tax funds, as collected on a Finance Utilities Service Tax is deposited monthly and distributed to appropriate funds monthly.
monthly basis, should be deposited on a pro rate basis to the
appropriate funds
Debt Restructuring -The debt service component received in the Finance An escrow agreement was established with First Union National Bank on 3/117/97. Debt Service Fund is wire transferred to separate bond issue
advance payment from the State should be segregated in the debt account.
service fund outside of the pooled cash account
Debt Restructuring -Three transactions of the City's outstanding bond Finance Because of drop in the City's credit rating, the opportunity to refinance or restructure these bonds is not feasible at this time.
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 Finance Because of drop in the City's credit rating, the opportunity to refinance or restructure these bonds is not feasible at this time.
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 Finance Director This has been accomplished.
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
FinancialiBudgetery Analysis -Pension expense for 1996 currently Office of Budget This was done in the FY 98 Budget with the collapsing of funds.
reflected in the Trust and Agency Fund should more appropriately be
reflected in the current fund where other employee expenses are
reported
FinanclaYBudgetary Analysis -Analysis of the proper inter -fund transfer Office of Budget Analyzing and controlling inter -fund transfers have always been a primary function of both, the Office of Budget and the Finance Department.
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
City of Miami - Office of Budget 19 of 53 1:53 PM1212619 Waster comments as of 12-19-97. x1s
City of Miami
Management and Productivity Initiatives
Financial/Budgetary Analysis -Recommend an analysis be made for Office of Budget
each major revenue category
Financial/Budgetary Analysis -Some process should be developed to Office of Budget
minimize or eliminate false billings in the revenue collection programs
Financial/Budgetary Analysis -City may want to consider the Office of Budget
introduction of an amnesty period followed by more vigilant
enforcement and/or use of outside collection agency
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.
FinanciaUBudgetary Analysis -Discipline is called for in an environment Office of Budget This is a function of the Finance Department.
of spending pooled cash which included high level approval plus
plans/projections for subsequent repayment or correction P
Financial/Budgetary Analysis -Recommendations for future financial Office of Budget We agree and are taking steps to improve the timeliness of these reports.
management initiatives should include the timely ongoing use of
monthly reports showing the comparison of budget versus actual
results
Debi ball-..•61Y�99 8r1 POf ".^ {i ;7"'":..,.= A,..'S" �.: : •yea �.�,{,:..,. x'a.:' �'£a;re �„�' ;'r ;: ; ,"zsr• .'-+; x 'r"' .'s°n� A„""f"k.,, r,,�".arxa- ", p:,.. .f"s":'�^.*'� ::i �"...,
.,. _... a.�.; .?.. .ram t M
.... . , n .. .. s .. � � - _ .. - �;:i�s"'6� ,1 K s.ersr:n. , K«.� �'�4; • a
Establish and implement plan to improve the City's credit rating and Rex Lugg A comprehensive Debt Management Policy is complete; will be sent to City Commission for approval and adoption in Feb. 1998.
entry into the bond markets.
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.
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.
elements:
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.
ice 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
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.
City ojAl,am". I ojBndgel it 1:53 PM12126197Mwter comments : 19-9Zxls
0
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 policies and procedures.
City of Miami
Management and Productivity Initiatives
Rex Lugg A comprehensive Debt Management Policy is complete; will be sen) to City Commission for approval and adoption in Feb. 1998.
':zhd^:•'*: •,<2"S";- •c'SS :^.ss. ,-q • ..,.ey a* ',. "' . '." .ea' Z?, .3. Wit.. . :3'. '"? °.e •,µ. S.-sax+ ,. ' .1.-.;''T�.`. `. `'
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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 $900,000
as quickly as possible in order to identify the impact of potential
annually in revenues.
40'
problems and disruptions to cash flow.
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
determine the most effective manner in which to maximize revenue and
cash flow.
Evaluate centralization versus decentralization and cost benefit
analysis of making changes to existing systems (e.g. staffing,
technology).
Centralize similar billing and collection activities to the extent practical.
Performance criteria should be established. The City Manager should
receive a summary report of billing, collections, receivables and
measurements of 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 billings and collections.
The City should pursue more diligent collection efforts in Emergency
Medical Service Transport fee.
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 preventing misappropriation of funds.
Office of Budget
Manager's Office
Manager's Office
G. Carbonell
G. Carbonell
Fire Dept.
Internal Audit
Increase the formal bid advertising requirement limit of $4,500 in City Procurement - J. Carter
Charter to $10,000 or $15,000.
This is part of the benchmarking initiative.
A comprehensive billing and collection plan for all City billings is under development.
See above.
AIR system is in place and reports are produced.
Finance Dept. is working with other depts. to centralize functions.
The City currently uses billing companies for EMS billing purposes. An RFP will be issued in early 1998 to obtain billing and collection services.
Surprise cash counts and payroll payoffs will be a part of the audit program for the City.
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.
City of Mlami - Office of Budget
2/ of 53
1:53 PM/2126197Masrer comments as of 12-19-97.xfs
City of Miami
Management and Productivity Initiatives
initiatives .
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am ine procedures smaller purchases (e.g. authorizing use of
Procurement - J. Carter Policy drafted, currently in revision process, to delegate to departmental purchasing agents the authority to purchase co below
�,'.
-. procurement cards, delegating purchase of smaller items to user
a
ec
specific dollar amount. Training
g shall follow implementation.
p
r'•�'%departments,
making greater use of cooperativepurchasingp
Critical Success Factors -Too much time spent by Procurement on
J. Carter
Policy drafted, currently in revision process, to delegate authority to departmental purchasing agents to purchase below a specific dollar
i ''.2(3;;==•' ,.
k{': t o t;
controlling low dollar, high volume items and not enough oversight in
service related purchases
amount. Trainingshall recede implementation. Service -related purchases centralized where Code permits.
p p
,
A procedure on small dollar purchases via debit cards is being explored to speed this process.
Fleet Management Task Force -Improve the bids and contracts process
to the
Procurement - M. Wiley
Procurement - Increased usage of Dade County contracts to expedite service and supply procurements; One Procurement Specialist will be
'.'
enable acquisition of goods and services in a timely and cost
assigned to GSA location to facilitate the procurement process.
4n'
efficient manner
GSA Pascual
r
-Juan
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.
e; •x -
Ensure professionalism in purchasing personnel through appropriate
Procurement - J. Carter
Professional staff has attended several NIGP and FAPPO workshops and seminars, including 1 of 2 classes required for CPPB certification.
s
experience and training.
Additional fundingsources are necessary to continue.
ry
APS/SCI Interface has been debugged to allow for more efficient use.
x.
rszr'• $:;
Improve use of technology in the procurement function. Fully train
departmental personnel in effective use of all technology tools.
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.
4. a%`' :
The next phase of the web page development will allow prospective bidders to download bid packages, vendor applications and certification
applications.
Consider removing all language in City Charter and Code regarding
Procurement - M. Wiley
Purchasing is preparing recommendations for proposed Charter amendments to be submitted when Charter Review Commission is
•:� °" rF3.
`
rocurement, other than formal bid advertising requirement limit, in P 9 q
convened
to address Charter revisions. Charter amendments will lay the groundwork for procurement Code revisions.
favor of an administratively authorized and implemented Procurement
Policy Manual.
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.
b
Suspend or pre-empt the City Charter as it relates to purchasing and Procurement - M. Wiley Purchasing is preparing recommendations for proposed Charter amendments to be submitted when Charter Review Commission is con$6.ea
remove Procurement Division references from said document (i.e., to address Charter revisions. Charter amendments will lay the groundwork for procurement Code revisions.
Seclions28 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 proposed
operate 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 Procurement - M. Wiley Such a change would be inconsistent with current City Code provisions; this recommendation will be considered with the other proposed
up to Category Four under Section 287.017, F.S. 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.
r
City ojMIam oJBudgel 1:53 PM11/16/97Masrer comments. 1-/9-97.xls
City of Miami
Management and Productivity Initiatives
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y�T` o>�'p i, � x�,: 9 ���4p�i '�� ft s' ���x� �_ "'�tt(�� ��" 'e'°�•' a z +cad
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Bid limit adjustment to recognized price index. Procurement - M. Wiley Such en adjustment is appropriate and would be included with other proposed revisions submitted to Charter Review Commission
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 to
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
revisions to the City Code revisions.
Procurement - J. Carter Policy drafted currently in revision process to delegate to departmental purchasing agents the authority to purchase commodities below aar ,
The City should shift its focus from smaller dollar purchases to large specific dollar amount. Training shall precede implementation. AF
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 M. Fresno Purchasing has increased usage of State contracts and other contracts offered by other jurisdictions by 43%. Purchasing will continue to take
offered by the State of Florida 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 diminished as Department status was eliminated; proposed reorganization under GSA would require Chief Procurement
Officer to report to GSA Director
Procurement - M. Wiley All professionals who have not yet acquired CPPB designation have successfully completed the first required class for CPPB certification.
Provide needed training, which should be included in the City's budget, Additional funds are necessary to obtain certification. Job specifications for Senior Buyer have been revised.
and certification should be encouraged for all professional staff and
required in the staff selection process. Improve Procurement staffs
understanding of customer needs with site
They will require that new hires have CPPB certification or obtain the certification within one year of hire.
Shift staff resources from small dollar purchases to large dollar Procurement - J. Carter Several internal reassignments have been made to shift staff resources to the Bid/Contract section. Additional Senior buyer will be recruited.
purchases and eliminate work that does not add value or is redundant.
Obtain a professional needs assessment of the technology Procurement - M. Wiley Successful SCl/APS integration has been accomplished. City staff has debugged the interface for more fluid action. Vendor has modified SCI
requirements of the City's procurement process (especially looking at software to better meet user needs. Thus professional assessment is no longer required.
integration of SCI and APS). Retain the services of APS to complete
the Implementation of all three procurement purchasing mod
iy
An APS expert was contracted with, through the State's Procurement Assessment Team to train purchasing professionals in the use of APS.
w All professional staff must have adequate training on personal PC Procurement - J. Carter Purchasing has effectively eliminated non -automated procurement requests. A memorandum issued by the City Manager requires that
applications, including spreadsheets, word processing, Internet, etc., to requisitions must be entered into the SCI Financial System to trigger formal solicitations
�✓ _ improve their analysis and decision- making ability. City-wide
departmental training on financial and procurement
City oJMiaml - Office oJBrrdget 23 oj53 1:53 PM12126197Master comments as of 12-19.97x1s
City of Miami
Management and Productivity Initiatives
Purchasing has benefited from several training sessions for personal computers offered by Into. Tech. We foresee additional participation with
additional class offerings.
Develop and Issue a comprehensive customer survey to determine Procurement - S. Gonzalez Department will be scheduled for quarterly site visits on a rotational basis. Senior procurement personnel will be meeting with user dept. to
satisfaction with the purchasing process and identify deficiencies so improve customer relations.
that remedies can be implemented. Also, increase technical skills by
training purchasing staff and customers.
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 depts. Purchasing has offered, with City Attorney's Office 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.
r
Upon completion and distribution of a new Purchasing Manual, all City Procurement - J. Carter Annual training is planned to follow completion and distribution of the revised Purchasing manual which will reflect the Charter and Code
departments should be trained by Procurement with follow-up training revisions.
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 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.
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.
City Manager issued memoranda (9/96,3/97) 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.
Procurement Management Division -In depth evaluation of multiple J. Carter Effective March 27, 1997, Purchasing and Minority Business are the sole responsibilities of the Chief Procurement Officer.
functions assigned to Procurement
Procurement Management Division -Practices should be evaluated to
J. Carter
Policy and Procedures for acquisition of professional and personal services have been prepared and distributed to City departments. Training
ensure a competitive process occurs when procuring large dollar
preceded implementation.
services
Procurement Management Division -All contracting should flow through
J. Carter
Contracts are centralized but for Code designated exemptions. One Senior Buyer has been for Purchasing;
the Procurement Division
position approved this positi3i cow
support expanded role of Purchasing.
Procurement Management Division -To ensure purchasing procedures
J. Carter
City Manager issued memoranda (9/96, 3/97) to prohibit unauthorized expenditures; City Manager issued memorandum to City Attorney to
are not bypassed controls over the use of "direct" purchases should be
request drafting of an ordinance.
vigorously enforced
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 Management Division -A formal training program needs to
Procurement - J. Carter
Such action may be overreaching as purchasing does not have relevance to each job within the City. Purchasing will require such training for
be adopted
departmental 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.
Operating Practices -Restructure procedures for bidding/selecting
Procurement - J. Carter
Purchasing policies and procedures are under review for modernization and Improvement.
contractors
CityojMlmer� ojBudgel 1:53PM/2126197Masrercommems. 0-19-97.xk
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 backgrounds
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 auditor's 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
City oJMrami - Office oJBudget
City of Miami
Management and Productivity Initiatives
Y'•�Ni's
*
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�: f�':��... .'6� ..£. i>......�ri ir. �.•<.d.. ., «�.:.. � iil• <. <., ei�i �::, :.... re. �" _... ': ?..d .., .i�� � .. _::m..•°..s, µ........ +;.w`"%:E� �i'' -..? ..«.&'.; :."�
Internal Audit This recommendation will be accomplished by the City Commission.
Internal Audit This recommendation will be accomplished by the City Commission.
This committee is under consideration for establishment.
d
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.
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.
Internal Audit The Internal Audit Department should report directly to a City representative authorized to implement procedures rather than report to an
autonomous committee.
25 oj53 1:53 PM12/26/97Masrer comments as oJ/2-19-97.ris
w,
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
Audit Advisory Committee -The roll of the Audit Committee should be
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
its activities to the City Commission.
Internal Audit -A summary of audit results and responses should be
prepared quarterly and presented to the Audit Committee and the City
Commission
Advisory Committee -The Audit Committee should provide a
arly 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.
Determine the long-term role of the Internal Audit Department (e.g.
primarily involved in compliance and internal control issues, assisting
external auditors, conducting operational and performance audits, etc.)
Internal Audit -Staff time spent on non -audit functions should be
reviewed, audit staff work should focus on auditing
A full scope, internal audit function is ultimately recommended. A
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 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
be reviewed.
City ojMi!V' .' a oJBsdger
City of Miami
Management and Productivity Initiatives
:..ror,',• ;::%r�"y" z «9„ ..ar.:-°1., -rx'��'.�s-�x.t •• .• :c��... -• .-a'y -r•.-.;.,;�::y,; o>��,, ,• ,r;6:.,.:.;-,-
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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 generated or
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.
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 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.
Internal AudiUIT The currently Senior System Analyst in the Internal Audit Department will be trained by an IT auditor.
1:53 PM/7/16/971fosrer comments t-19-97.xls
I
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 data that deliberately attempts to violate data validation and
control routines.
Users should be involved in the design of test procedures data.
Documentation of testing procedures should include:
City of Miami
Management and Productivity Initiatives
<.:f�,s eta'-..� v'�"..'�'�:'sw'r .Y4 � ',4 i.`l��• -, .��y; ;., T^; �n .i^" '_F.
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Internal AudiVIT The currently Senior System Analyst in the Internal Audit Department will be trained by an IT auditor.
Internal AudiVIT 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.
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 and results verged.
IT See comments below:
Speck Objectives of the test.
IT
For minor modifications, some systems have extract programs that allow the creation of testing subsets.
iu
Identification of types of transactions to be tested including transactions
IT
For minor modifications, some systems have extract programs that allow the creation of testing subsets.
which should test all aspects of the new program or program change.
.:[
Inspect test results, including reported errors.
IT
The SCI package is currently being tested with production data.
The actual test results and the comparison to the predicted results.
IT
The SCI package is currently being tested with production data.
An overall summary, including conclusions.
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.
Critical Success Factors -Change Internal Audit's focus to controlling
Director of Internal Audit
The function of Internal Audits should include revenue and lessee compliance auditing as this department has recovered significant revenues in
business risk, including systems
the past.
mP.
The resumes for the Director's position have been received and the new person will change the audit.
Internal Audit -An audit plan should be developed in conjunction with the
Director of Internal Audit
This recommendation will be performed by a newly appointed Internal Audit Director.
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
Newly hired performance auditor
Auditors proficient 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
r -
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.
- -
e
systems conversion
Internal Audit -The City Manager as well as the Auditee should receive
All Audit Staff
This recommendation is currently implemented.
a copy of the audit reports
Decide whether the present staff can provide the services envisioned
Director of Internal Audit
This recommendation will be accomplished by a newly hired Director of Internal Audits.
on a long-term basis.
City of Miami - Office of Badger
17 of 53 1:53 PM12126197Mosrer commeais as of 11-19-97,xis
City of Miami
Management and Productivity Initiatives
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Evaluate whether the organizational status of the Internal Auditing Director of Internal Audit The audit reporting function should be directed to the City Manger who has authority to implement audit recommendations
Dept. is sufficient to permit the accomplishment of its audit
responsibilities.
An effective Audit Committee should ensure that audit assignments are
based on risk rather than political, or other factors.
Internal Audit -Audit staff dispersed in other departments should be
identified and centralized within the department, as appropriate
This recommendation will be accomplished by the Mayor and/ or City Manager.
-:�.'i '"�,fi."'° s•,r:- h.?�, ;., - -;:;a';�:. .r 7>,;,.. .K: „a^ r,>-'"`•--•.'?-".Ra '%��:, ;'.'. ., r: - .;,xv�. 8a01Y$8.,''; :s^: -'•�,:- ,,.. ;.s_�y�, ..ia' <-�'�`:M°'�E'� ' r,. :"t•.r .,�w'�'--"�iM, `:a„.:��^:,R a��
<- •. <,a.'S^�,��` MsX:,a.,r ,'-�.s"'` x '®.s,... �• "R .T•.. 9 .�
' ,.� .a•; �, :`,^_e;.... ,.,.v.. ,�,., r;, a. u.r .<.v ."F`§''�A.,....,.,�- >.>-.�#„3 - „ .. ... �•.. -^ .. ,. '+'n' , . `j;P:;.�9". ��. x .,., a:x'w" �'f vF; <...^�,»�.r a �''• �y��"�"e^
The City should also develop a comprehensive cash flow forecast. Finance See this Five Year Plan.
Opportunities Task Force -Comprehensive operating and cash flow Finance
projections should be developed for a five year period
City should develop plan to return to fiscal strength, establishing targets Budget
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, Finance
capital replacement, contingencies, and debt repayment.
Opportunities Task Force -Operating cash reserve should be sufficient Finance
to cover 30 to 60 days of operation
Opportunities Task Force -Prudent to maintain cash reserves of Finance
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
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 Office of Budget
plans that ensure the City functions at a surplus each year.
Opportunities Task Force -Projections should address the future Office of Budget
courses of 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
See this Five Year Plan.
This was already done and is incorporated in the Five Year Plan.
See this Five Year Plan.
See this Five Year Plan.
Reserves will be established over the course of the Plan; however, the City will not be able to reserve $25 to $40 million over the five years.
9
Budget Office research projects 74 retirements per year. The amounts budgeted in this Plan are adequate to pay off compensated absences.
The City's FY 97 and FY 98 Budgets, along with the City's Five Year Plan have already addressed that issue.
The Citys FY 97 ana FY 98 Budgets, along with the Cays Five Year Plan have already addressed that issue.
Solid Waste transferred to General Fund FY'98.
City oJMiam ie ajBvdget k53 PM12126197Mas1er comments r. 1-19-97,x/s
City of Miami
Management and Productivity Initiatives
:mot .-.:IrilflsitfOdu��"Wi�':•;..:"7�_...:<5i.��..-.<:�: '�,. .,: :a?"..;,.,.:.:....� > f'. ..�.:�`� .su»..«"s�<. >».. '�a'�,,,
..'..:n.. M. .. - '.off a..... ,,.:: n'<� w`.•frao5''II." �t4..... m". ..,..k. �: .. .$ :;.:.: °'",'.�•.. �. •u fY.`.iti:.s.T.
Ft'��>-:,r::.?f:#:':'r"�':^�"F"am^'gyp:=e°3�7,"u"'.d�zr�saw a�'•�.•:�„p„��::z:r�,*ramps»g�-�:.:»••.;II<;,�:,ra�..;,.,..s:�':z-evwue�;�:ea�r.xm..�.c,.�wzrm.:.,.�:m�.xm:Mr�..x.ra•,.•w.�w-,�.�ra.�.,�..»w�m�.<.>....,,�.�...,«:-.w.::,a.s-,..:..<-.
Opportunities Task Force -Raise user charges in Solid Waste to an
«<..®....�>.
Solid Waste fee reduced to $33 per year. City Commission replaced with Fire Assessment Fee.
appropriate amount based on related costs and charges for similar
services provided by other South Florida municipalities
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
Opportunities Task Force -Review level of Solid Waste services
Trash and recycling services will be provided five days per week. City Commission directed same level of service.
provided and reduce service it appropriate
Revenue Options for Consideration -City could, through public hearing,
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
increase the millage to 10 mills
Revenue Options for Consideration -City could levy up to 20% on each
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
non-exclusive franchise granted for garbage collection within the City
limits
Revenue Options for Consideration -City could adopt by ordinance a
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
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
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
service within the City limits
i
Revenue Options for Consideration -City could adopt by ordinance a fire
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
services fee to all property owners within the City limits
Revenue Options for Consideration -A rate analysis should be
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
performed on all Enterprise Fund operations and revised rate
schedules should be adopted by ordinance to recover expense of
operations
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
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.
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
Office of Budget
All Revenue Options listed are policy issues that require City Commission action.
on miscellaneous fees and charges to update for inflation or increased
operating expenditures
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
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
City ojMiami - Office ojBudget
29 oj53
1.53 PMl2126197Master comments as of 12-19-97.xls
Iat�Vtla: 'i.-, :,re -aq:, a.- ��i'..;�;;.^o-:'�''t,, •,:.d: r.-��,�.,
:71,E' � a £�:fib, i
irp �,2��{{2,xx�,,�Y��tx\"\ -
='R`w?
Plan should include the full costs of operating the City, including
° employee pensions, compensated absences, self insurance, risk
Wattunderwriting and other activities which may require future a ments.
''"' 9 Y q PY
fdult(.Farntf �.�8 P r��as.�. ,,,..,.�..•$��r.�:-:'�' r„s;=s�.�;�`i
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
City of Miami
Management and Productivity Initiatives
3`VCM
:.iK'�';�.�5+�'#�',;�aa.<�"a",.�,3:�at„� '^�`�:re':it���,�.�F;�,.� ,. F -•S'arc... ri, ... ..i s�
Budget
J. Hepburn
F. Caslaneda
This was already done and is incorporated in the Five Year Plan.
Loan collection manual to be created with input of Finance & Lew Depts., by 1 st quarter of FY'98.
Loan collect in manual & procedures to be prepared & completed with input from Finance & Law Dept. delineate each other's role and
responsibilities.
Evaluation of USHUD Funded Loan and Grant Programs -Take J. Hepburn/J. Carden $4.6 million has been re -programmed in FY's'96-97 to fund eligible activities under the CDBG Program. More unspent funds will be re -
immediate and more aggressive steps to reprogram its current and allocated as they become available.
unspent prior years allocations of CDBG funds to fund other eligible
City activities
Evaluation of USHUD Funded Loan and Grant Programs- Frank Castaneda, Mike Lavin, Ken Edwards Dept. exploring available & needed staffing required to facilitate full & complete capture of funding outlay reimbursement. Finance Dept.
Recommended that City provide and commit the necessary resources employed Grants Coordinator during 4th qtr. of'97. Responsible for facilitating reimbursement from US HUD.
to pursue full and complete receipt of funding reimbursements
Evaluation of USHUD Funded Loan and Grant Programs- Jeff Hepburn Dan Fernandez Reimbursements from CDBG Program to City's General Fund have been substantially minimized. New HUD system allows direct payment to
Recommended that City continue to Identify pending reimbursement Ed Blanco sub -grantees,
opportunities and aggressively pursue the repayment of the funds due
Evaluation of USHUD Funded Loan and Grant Programs -City should 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
vigorously seek funding through the grant programs (see task fore programs.
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
J Hepburn Loan 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.
City ojMaJ, )of &dger 3. 1:33 PM11/16/97Masrer comments w--19-97.zrs
City of Miami
Management and Productivity Initiatives
F. Castaneda Department to reassess & evaluate previously approved commitments for two Section 108 projects totaling $6,645,184 in funding from the U.S.
Evaluation of USHUD Funded Loan and Grant Programs -City
HUD.
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
Consider the sale of defaulted loans to authorized third parties in
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
conjunction with continued dialogue with entities such as FNMA and
collection agencies to collect payments. On -going process.
HUD.
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.
collection services should be explored to enhance the effectiveness of /
loan servicing f
-mot= 'a°4',.. .<w,r.-�;>. Rr�^wr;"^���y' ,>x_^�a ��.•<�9Y�YYa _�•�.�assa<�..�e :.�°,, °•:�e•:��H •t...:�...::r•.t-;�..,s„�?„:i,"Y..F�y'r:y.�y',. §�"u�U.f-�?, s"�•�• ss�.',Ss.: `�
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..� � ,�� �' •�• u'�.��"'�:<
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 ROI on City assets through the effective and efficient
op ssible, to assist the City in doing a detailed technology needs implementation of City resources. Develop scope of work & RFP for project.
assessment and develop a technology strategic plan.
Utilize available resources to determine 9 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.
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,
senior IT staff should annually attend major technological shows; such as, Comdex and UNITE.
Information Technology Division (IT) -The IT Division should redefine its IT Information Technology recognizes that a comprehensive strategic plan is critical to defining the mission of the organization. In order to assist
mission in light of the trends in technology development 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 ojM:ami - Office ojBudget
31 0f53
1:53 PMI2126197Masrer comments as of 12-19-97.xls
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
objective, and communicate 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.
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
City's operations in the case of unplanned interruptions
Management Task Force -Implement a complete Management
ialion System with a Fleet Management module
Establish internal, cross -departmental Steering Committee to report
regularly to City Manager on policy/budget/monagement and resource
allocation issues related to technology.
uties and responsibilities of the committee should be clearly defined in
formal charter and should include the review and approval for:
changes in hardware or software.
and development projects under study.
City of Miami
Management and Productivity Initiatives
GR4:,.�'�,•.%2i'[;a%J�i ai>«^?%.�-.: � � ': •. �`r�iit':Y��,a.-s.,e�`�,2'g...�,�.:�a �`vr&A�a�'.�..�."isi »s.. �.`a� `ram. %tea, `�"°4'P., .0 � - .,
City Manager 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.
IT Negotiations are underway with the vendor.
IT These needs will be the outputs of the needs assessment.
Info. Tech. - A. Slancato 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 Iifespan 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 Clearpalh machine.
Under the Clearpath purchase agreement these software relicensing costs would be eliminated for the life of the machine.
The Human Resources Department has been requested to audit selected positions and to reassign responsibilities.
Juan Pascual Currently identifying a system for fleet. Research complete and recommend faster computer software system. RFP being prepared.
Software/hardware 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 strategy
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 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 resources - 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.
7
Ory ojMam N. a gf&dger
�• I:53 PM11/16197Maurer comments � .1-19-97.xls
City of Miami
Management and Productivity Initiatives
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.
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 mor
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.
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.
IT User Group Committees should be established and be responsible
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
for:
individual user departments.
Communications between users and the IT Steering Committee,
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
management and regulatory agencies.
individual user departments.
Establishing user priorities.
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
individual user departments.
Monthly service requests reporting by application.
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
individual user departments.
Coordination and approval of request for IT services.
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
individual user departments.
Authorization of data file removal from data centers.
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
individual user departments.
Review and approval of file retentions.
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
individual user departments.
Coordination between users and IT.
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
Individual user departments.
Maintenance of commonality of system.
ITD
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
individual user departments.
City oJMlami - Office oJBudget 33 oj33 1:53 PMI2126197Master comments as of 12-19-97,xis
City of Miami
Management and Productivity Initiatives
and eG
User participation in new system requirements. ITD
User group Committees must be held accountable for all program, ITO
changes and requests for IT services from their group.
Critical Success Factors -Establish Information Systems Steering
Committee
IT
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's Office
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 Info. Tech - A. Stancato
report to the City Manager's Office
After needs assessment is completed, develop comprehensive Info. Tech - A. Stancato
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
Info. Tech - A. Stancato
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of the
individual user departments.
ITD will endeavor to reestablish these meetings on at least a quarterly basis. The success relies on the support and participation of 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 t
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 strategic
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 bur 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 guafa rtee
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 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 820'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.
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 architecture. Timelines and scope of project to be provided as part of the Strategic
Plan.
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 $fi0,000 on a monthly basis.
Considering the limited lifespan of the Al7, 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 Clearpalh machine.
Under the Clearpath purchase agreement these software relicensing costs would be eliminated for the life of the machine.
E
C1ry oJM,an a oJBadget
s
n 1:53 PM11/16197Master comments. 1-19-97.xls
City of Miami
Management and Productivity Initiatives
.: .... ,, .. .?','�':':'<r '< 7 _cr «a 3» ,-� �:..: .. .,, .�.::a"' r4&:�„- .��;rsn ., ,�z;':.`'.Z',�..»'�."'a. `.m.m ..... .... .. - a. ... T •�++•� ", i
Opportunities Task Force -Steps should be taken immediately to
Office of Budget
On going.
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
Office of Budget
Refer to the City's Strategic Planning Initiative.
Citys 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
IT
A strategic plan will be created but is contingent on the development of a citywide strategic plan and of an ITO steering committee. ITD will
work toward the creation of both the plan and the establishment of the steering committee.
Information Technology Division (IT) -Funding needs to identified and
Info. Tech - A. Stancato
Capital budgets for IT include hardware, software, and communications technology. Based on our preliminary review of our current technology
reserves need to be built to complete the network infrastructure for
such as the A-17 and our city-wide area network, an expenditure of $30-40 million has been estimated by the Blue R
Police and Fire and replace PC's
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 B29s 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 A17 with a Unisys Clearpalh machine is mandatory since the A17 is
approximately nine years old and Unisys will not guarantee that all the components are Year 2000 compliant.
Approach potential teaming partners in both the public and private Info. Tech - Ana Kokenge Meet with Directors of IT at Miami -Dade County, FIU and UM to develop feasibility and scope of approach.
sectors to develop different information systems and cost -sharing
approaches. A natural partner might be Metro -Dade County and local
Universities.
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.
1*..
,e:� +.ac. <.�;......_ .r. .e • .-. <_ :&S ...:;;a<.a. .. r�.»�..a-.. Adtrv.. ..r.,.a<. �._ .a.:..L..��i��n`+l~•�,xaix_..i'o-� ..._ ,- ,.e-, r.,�;=^�"".1......._ a.a. bc:��. "�&�a >.. ,-.', , t x. �, .. r
Seek a private firm to simulate the Year 2000 and provide a test bed for G' Info. Tech - Jim Osleen Year 2000 conversion efforts have been in progress since 1992. Total conversion of all applications is scheduled for December 1998. It would
all City Systems to insure that Year 2000 corrections being made will be beneficial to have an outside firm validate the soundness of the Year 2000 modifications. Completion of the
indeed solve all related issues.
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.
The IT Division should review its staffing to assess whether it has the IT Current staff will assist in implementing the pilot program. However, an R.F.P. will be issued for a private firm to bimulate and review the
required experienced personnel resources to complete the project converted systems.
available without cutting other required system development and
maintenance.
City ojMiami - Office oJBtidget
35 of 53
1:53 PM1212619Waster comments as oj12-19-97.x1s
Information Technology Division (IT) -A plan needs to be devised and
funded to complete the task of making City systems Year 2000
Give highest priority to developing and testing an adequate disaster
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
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 servicelbusiness functions.
Maximize awareness of the City's fiduciary responsibility adopting a
"due care" mentality.
the citizentbusiness community awareness implications of
f 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 of Miami
Management and Productivity Initiatives
•'�a
ipS �, m a. ��.. ..`+,�"f; �• t:� a' t a :,,x>.-s,Y.-,e ya� ���,�', t -. '
?.4fi."',� a.. �����Yc».: _',?��,•k��"� aiii»f;�� .,si�Y ..`aS�u�a..3tK '�'i'�.�xr uu �:.s`� ., t �E=w� �k�._ °
Info. Tech - A. Stancato 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
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. 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 ` rtin
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
ITO 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 Clearpalh
machine at the remote site.) - see comments below regarding the All 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 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.
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 which will include maintaining and
updating the plan.
IT The solution will be addressed in the Business Continuity and Disaster Recovery Plan.
City ojmiami. a ofBudger s
1:53 PM12126/97Mwsrer comments 2-19-97.xls
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 the City Commission.
The City should develop and publicize a data security policy, as well as
standards and procedures for data security administration. Password
administration procedures should be formalized.
should develop and implement a formal vehicle to
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
recovery plan should be developed addressing PC networks and the
mainframe
Information Technology Division (IT) -Backup procedures should be
developed for the PC systems
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
City of Miami
Management and Productivity Initiatives
The solution will be addressed in the Business Continuity and Disaster Recovery Plan.
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 importl,.._ 1.
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 implementali
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 A17 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 th
backup procedures.
Manager's Office Training of all of the City's staff, including Information Technology, is a priority for the City.
Info. Tech - A. Stancato 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.
City ojAftami - Office oJBudger 37 of 53 1:53 PM11/1619Waster comments as of 12-19-97.xls
City of Miami
Management and Productivity Initiatives
er(iial Inttlativei:4 YA998 tfiroifgh fY 2002,.
Develop and implement a plan for Information training for the rest of the Manager's Office Training for all departments on the financial systems will be accomplished this fiscal year.
City employees.
tt r and Em to ee Benefits
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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 r
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 City's objectives salary surveys and assisting with
restructuring plans.
Integrate Management Training with specific goals and development of
the strategic plan.
Include GIS professionals in the list of professional planners and other
disciplines necessary to produce and carry out the City's strategic
plan.
Critical Success Factors-'Conslder deleting equivalent combination of
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
Insurance Task Force -The plan administrator should be very
dgeable 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
City should not hold a register of qualified applicants for two years
City ojMla» I ojBudger
This is part of the benchmarking initiative.
The GIS professionals who currently work in the Planning Division will be included in the design and implementation of the Strategic Plan
whenever GIS mapping and/or analysis is needed.
Job descriptions have been reviewed and modified to provide for the best qualified person to be employed.
Finance Job descriptions have been reviewed and modified to provide for the best qualified person to be employed.
Mike Rubin This recommendation is also required by the "Government Auditing Standards" promulgated by the Comptroller General of the United States.
Delores McCray
All Audit Staff All auditors possess a college degree in one of these fields.
Director of Internal Audit This recommendation will be accomplished by a newly hired Internal Audit Director in conjunction with the Department of Human Resources
Juan Pascual 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.
1:53 PMI1/16/97Mnsrer comment: .-/9-97.x/s
The employee appeals process under Civil Service Board should be
reviewed. A common solution elsewhere appears to be having a
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.
Once review is completed, commit resources to provide skills
development opportunities.
Accounting staff should be required to undergo minimum continued
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.
IT auditing conferences, seminars, memberships in
sl organizations dedicated to IT auditing should be
d on the part of the City's Internal Audit Staff.
A formal training program should be developed for each IT employee,
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
competencies inventory, preferably by means of objective skills
assessment tests.
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 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
City of Miami
Management and Productivity Initiatives
R. Sue Weller, Labor Relations Officer Subject to negotiations
None It is recommended that this initiative be coordinated 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.
Risk Management - Mario Soldevilla This is an on -going need. Funds must be allocated for seminars and CEU credits to maintain licenses.
Human Resources - J. Harris Responses to Citywide training needs survey have been compiled for assessment. In order to implement and coordinate the training fu7`
funding for training staff ($104K annually) and for programs and materials (200K annually) is needed.
Finance The Blue Ribbon Panel, in conjunction with Florida international University, and the City's Finance and Human Resource Departments, are
preparing a training program tailored specifically to address the various functions of the Finance Department.
During FY 1997, classes were conducted by FIU and SCI. Also, an SCI Project Management Assistant will be hired to conduct in-house
training.
Internal Audit Training is and will be a priority.
IT We will request assistance from the extelmal auditors in developing a training plan.
IT We will request assistance from the external auditors in developing a training plan.
IT We will request assistance from the external auditors in developing a training plan.
Governmental Auditing Standards require eighty (80) Continuing Professional Education hours be completed every two years. This department
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
_ 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
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.
City ofmami - Office of Badger
Manager's Office Priority of the City is to create and train cadre of middle managers who will be promotable to fill these positions.
39 of 53
1:53 PM12/26197Masrer comments as of 12-19-97.x1s
City of Miami
Management and Productivity Initiatives
k -, - a4 -."M.vv -,;;wumZ,1m ns
Critical"A-Int z, aff'r
Success Factors -Conduct sf comprehensive review of personnel
practices Personnel practices along with Civil Service Rules are being reviewed for potential modification.
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.
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.
4
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.
determine which positions were included in the unit. Linda Rice Chapman, Asst. City Atty.
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
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 claims adjuster review.
R. Sue Weller, Labor Relations Officer Requires review of mang/conf. positions from 1978
See Initiatives #452A54
Human Resources Requires change in Civil Service Rules and change in the Charter.
GSA -Juan Pascual GSA - Reestablish Managerial / Confidential Employees making superintendents of Property Maintenance, Communication, Graphics, Lt. Fleet,
Heavy Equipment Md'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.
Risk Management - Mario Soldevilla 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.
Risk Management - Mario Soldevilla Hire temporary claims representatives. Issue: need space and equipment.
City OfMI-1 I qfBridgel 1:53PM121261Y7A*u1ercomments --19-97.x1s
City of Miami
Management and Productivity Initiatives
Augment existing in-house legal resources on a short term basis by Risk Management - Mario Soldevilla
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
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
the City 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 completed. Train new staff.
Create and adopt claims handling procedures that reflect best
practices. Enforce strict compliance to these procedures.
Health Insurance Task Force -Workers Compensation payments
should be integrated and coordinated with health care
Health Insurance Task Force -Each health care carrier should produce
a claims analysis and reviewed semi-annually be Benefits and Finance
Insurance Task Force -A claims and financial analysis should be
:id annually by Benefits, Finance, Human Resources/Labor
ns and the City attorney
Health Insurance Task Force -Should perform a quarterly reconciliation
and accounting of prescriptions against the administrative fee
Health Benefits - Nancy Fernandez Done.
d
Risk Management - Mario Soldevilla Hiring of temporary claims representatives will accomplish this phase and dictate what our staffing requirements will be.
Risk Management - Mario Soldevilla Strongly agree. We are currently pursuing implementation.
Health Benefits - Nancy Fernandez Done.
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.
Health Benefits - Nancy Fernandez Recommend that an internal audit review be performed semi-annually.
Health Benefits - Nancy Fernandez Reconciliation and accounting of prescriptions against the administrative fee is performed monthly by groups benefit.
Risk Management - Mario Soldevilla Strongly agree. We are currently pursuing implementation.
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 seff 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 -City Commission should
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
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
Safety Department.
Risk Management - Mario Soldevilla There are changes to the code which have been proposed and should be presented to the commission for approval.
Risk Management - Mario Soldevilla Develop simultaneously with'best practices" implementation.
Risk Management - Mario Soldevilla
City ofMtaml - Office oJBadget 41 oj53 1:53 PM121261971fasrer comments as oj12.19.97.xls
City of Miami
Management and Productivity Initiatives
if Y.
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 Review -Fully Implement LIVIP 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
Risk Management Department Review -identify the roles and Risk Management - Mario Soldevilla This will require a commitment from the City Manager as a policy statement.
responsibilities of all City management as it relates to safety and hold
them accountable
Risk Management Department Review -Complete an assessment of Risk Management - Mario Soldevilla The City is not governed by OSHA Administration, therefore we have our own program in progress.
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 Risk Management - Mario Soldevilla
effectiveness of vendor selected to implement the managed care
arrangement for the City of Miami and the program.
I Risk Management - Mario Soldevilla Implemented calendar year deductibles into plan providing incentive for managed care election at annual savings of $22,500.
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 1, 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
Group Benefits and the Human Resources / Labor Relations Health Benefits - Nancy Fernandez Issue: an analysis was performed of the Group Benefits function, and was determined that a should remain in Risk Management. Risk
Departments should all report to the same ACM. 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
of the Human Resources Department
Health Insurance Task Force -The Benefits Department should be part
of the Labor Relations Office
Health Insurance Task Force -One person should be designated in
writing as plan administrator
The City should immediately employ an insurance Benefits consultant
to be on hand for development of pricing and Benefits models for
insurance Benefits procurement.
Health Insurance Task Force -An insurance broker should be available
1.11 to the management negotiating team to provide actuarial analyses
City ofXf1aJ le ofBadget
Health Benefits - Nancy Fernandez Issue: an analysis was performed of the Group Benefits function, and was determined that it should remain in Risk Management. Risk
Management is a division of G.S.A. which reports to the ACM for Operations.
Health Benefits - Nancy Fernandez Issue: an analysis was performed of the Group Benefits function, and was determined that it should remain in Risk Management. Risk
Management Is a division of G. S.A. which reports to the ACM for Operations.
Health Benefits - Nancy Fernandez Done
Health Benefits - Nancy Fernandez The cost for these services would range from $25,000 to $50,000. an altdmative 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 procured this will be at no cost,
Health Benefits - Nancy Fernandez To be added o scope of services of broker in RFP to be issued by Risk Management.
1:53 PAH2126197Uaster comments., 2-19-97.x1s
E
City of Miami
Management and Productivity Initiatives
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
�i
,tee
Health Insurance Task Force -The Benefits Office should have the
Health Benefits - Nancy Fernandez
To be added o scope of services of broker in RFP to be issued by Risk Management.
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
Health Insurance Task Force -Attorney and Chief Financial Officer
Health Benefits - Nancy Fernandez
Done
before incurring obligation
Health Insurance Task Force -Should explore the possibility of
Health Benefits - Nancy Fernandez
This is lied to the labor agreements negotiations
contracting for some benefits utilizing the combined leveraging ability of
multiple local communities
Health Insurance Task Force -A strong subrogation clause should be
Health Benefits -Nancy Fernandez
Done.
established and enforced within the health care plan
w 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.
examined semi-annually and transfer accounts should be continuously
audited for accuracy
Heath 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
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
difference between self insurance and commercial Insurance to
determine if advantages lie in changes
Health Insurance Task Foroe-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 -Reevaluate the proportional cost for
Health Benefits - Nancy Fernandez
Current litigation prevents implementation at this time.
health care borne by the City where retirees are concerned
Health Insurance Task Force -Should expand flexible benefits and avoid
Health Benefits - Nancy Fernandez
This is tied to the labor agreement negotiations.
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 contrails a
stipulation that it is the responsibility of the third party administrator to
constantly seek opportunity for cost efficiency through purchasing
Summery plan descriptions should be updated and distributed timely.
Health Benefits - Nancy Fernandez
Summary plan descriptions have been updated and finalized. pending
P P p g printing and distribution to all insureds.
City ofMtami - Office of Badger
43 of 53 1:53 PM12/26/97Masrer comments as of 12-19-97.xis
City of Miami
Management and Productivity Initiatives
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Health Insurance Task Force -A Summary Plan Description of all Health Benefits - Nancy Fernandez Summary plan descriptions have been updated and finalized. pending printing and distribution to all insureds.
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 program needs a formal
Health Benefits - Nancy Fernandez
Done.
delivery system
The City should receive a detailed actuarial report identifying the
Health Benefits - Nancy Fernandez
Cigna Healthcare prepares an actuarial report annually as part of the report filed with the state's 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
Health Benefits - Nancy Fernandez
Done.
to arrest and control costs
The City should not negotiate any agreement wherein it both Health Benefits - Nancy Fernandez This is tied to the labor agreement negotiations
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.
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Retain the management right to subcontract or privatize any and all R. Sue Weller, 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 GSA - Juan Pascual Lt. Fleet already outsourcns transmissions and body shop operations. Wrecker services outsourced. RFP for outsourcing alternative for
through either the private sector or Metro 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
Eliminate all "Prevailing Benefits" clauses. R. Sue Weller, Labor Relations Officer Subject to labor negotiations
Eliminate five percent increase in salary, and hence all accrued
benefits, on retirement.
Eliminate Union control or veto of any City -funded programs. 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
investigations, etc.
SW -A. Macbeth Solid Waste - Will include in City proposal for negotiations.
Centralize all communications with the Unions through Labor Relations R. Sue Weller, Labor Relations Officer Subject to labor negotiations
Officer. This includes grievances, work peace issues, concerns, etc.
If
City ofMian, I ojBndger 1:53P1v111/16197Masrercommenfn ; 19.97.ris
Prohibit any department, including Fire Department, from enlerii
"side" agreements under the Collective Bargaining Agreements.
City of Miami
Management and Productivity Initiatives
Weller, Labor Relations Officer Subject to labor negotiations
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 unit/contract item.
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
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.
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Continue the Labor -Management Committee meetings in which the Juan Pascual Re-established in G.S.A. Operations
Union and the Administration can discuss specific issues and ideas on
an ongoing dialogue with the City.
Operating Practices- Develop a system to improve Internal
communications (staff meetings, employee interaction meetings)
Institute a "Suggestion Box" for employees; consider incentives
programs.
Review current fire inspection fee collection procedures
Establish clear guidelines and procedures for department heads to
follow in their daily labor-management relations with representatives of
the unions.
Recognize the importance of the Office of the Labor Relations as the
institutional manager of labor management relations at the City of
R. Sue Weller, Labor Relations Officer Departments notified and monitoring is in place
SW -A. Macbeth Solid Waste - Will resume upon execution of labor agreement.
T.Griffin
Juan Pascual
Finance
R. Sue Weller, Labor Relations Officer
City Manager
To be Implemented when new org. structure in place
Re-established in G.S.A. Operations
Fire inspection fee to be eliminated
Increase frequency of communications between employees and City R. Sue Weller, Labor Relations Officer Directors to share Issues of importance at staff meetings.
Effectively integrate Union officials into the strategic planning process R. Sue Weller, Labor Relations Officer City Manager to direct strategic planning staff to involve union leadership.
of the City.
City of Miami - Office ojBudgef 45 oj53 1:53 PM1212&97Mas1er comments as oj12-19-97.xls
City of Miami
Management and Productivity Initiatives
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To improve communications, City management needs to recognize and R. Sue Weller, Labor Relations Officer Re-establishment of Labor -Management Committees.
a. !g respect the leadership roles of Union officials within their organizations.
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7lssett4iana ement:r?oiid �' , :,:_ :'..'
Establish a capital assets management policy, similar to the following: Asset Management Underway
(In seeking to maximize the City's return from its current and future
asset portfolio, the City will aggressively manage these assets) :
Incorporate the fourteen Guiding Principles related to Asset Asset Management
Management identified by the SFRPC in its memo of 4/1/97.
Emphasize improved asset management in general as a means of
achieving fiscal stability instead of land lease options.
Apply the principles embodied in the Checklist for Successful Asset Asset Management
Management identified by SFRPC in its memo of 4/1/97
Fleet Management Task Force -Review remaining individual vehicle Juan Pascual
assignment and vehicle take home policies
Juan Pascual
Fleet Management Task Force -Work with using agencies to determine
fleet size and composition necessary to perform departmental functions
Fleet Management Task Force -Evaluate and establish a molorpool, Juan Pascual
where applicable
Fleet Management Task Force -Implement a vehicle Juan Pascual
replacement1disposal program using proceeds from sale of vehicles to
offset new vehicle purchases
,acing Practices -Establish a preventive maintenance program for T. Griffin
facilities and equipment
Operating Practices -Consider maintenance costs and other operating
costs prior to the approval of Capital Improvement Projects
Maximizing the City's return will include pursuing all. ownership/mgmnt. Christina Abrams
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
The Principles will be reviewed by staff to determine which will be incorporated in the City's asset management plan.
Asset Management staff will review the Checklist and decide if the principles need to be put into practice.
Performing city-wide review of vehicle conditions, replacement schedule and assignments. A comprehensive audit to be performed.
Part of City-wide fleet verification and audit process. Replacement needs and schedule to be developed with user department in -put. Solid
Waste fleet needs dependent on sourcing determinations.
Study of MRC building for establishing a molorpool. Use of alternative fuel (electric) vehicles being purchasedfleased here.
This plan needs to be evaluated and implemented assuming that additional funds are available for a one for one replacement.
Additional staffing needed & coordination with GSA
Standard Procedure
Perform analysis of Public Facilities to determine properties best suited for development.
See Comments below.
0
City-f".� ,I ojBudger 1:53 PA412126197Masrer comments. .1-19-97.xls
City of Miami
Management and Productivity Initiatives
coconut grove convention center Increases -Increase the CGCC sold C. Abrams
out lot from $800/day to $1500/day
Coconut Grove Convention Center Increases -Add a move-in/move-out C. Abrams
rate for CGCC
C. Abrams
Coconut Grove Convention Center Increases -Increase the minimum
rental guarantees to $2000 per hall or charge a Bat fee for usage of the
halls eliminating the option of a minimum or net rate
Review of Marina Rate Increases -Recommend increasing rate for
C. Abrams
sightseeing vessels from $.40 If to $.80 If
Review of Marina Rate Increases -Recommend increasing rate for
C. Abrams
commercial vessels comparable to the County
Review of Marina Rate Increases -Recommend elimination of the 20%
C. Abrams
discount to City residents
The City should evaluate various levels of asset privatization for all new
Asset Management
capital projects as it plans, builds, or acquires additional public facilities
and assets.
The City will manage its existing portfolio by selling or donating non-
Asset Management
buildable parcels; "packaging" and marketing properties; "packaging"
properties for future use; reviewing alternative ownership/management
Sold out parking lot rate was
to $2150/day in FY1997.
The move-in/move-out rate is included in the hall rental rate & should not be increased to remain competitive. Once certain critical repairs are
made to the CGCC, we will review the rates & if competitive will raise them accordingly.
The hall rental rate should not be increased until the CGCC is repaired as outlined in the Capital Improvement schedule in 1998.
The rate for sightseeing vessels was increased to $.60 per linear ft. in FY 1997. The rate will be increased to $.80 per linear B. in FY 199�
The rate for commercial sightseeing vessels was increased from $.20 per linear B. to $.30 per linear B. in FY 1997.
Discount to City residents was eliminated in FY 1997.
Needs coordination at City Manager level; Need to establish privatization policy
Agree
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Complete the Inventory of all City owned and leased property. Asset Management This inventory has been completed.
Develop a strategy for continuously updating the comprehensive Asset Management
inventory of City property.
Opportunities Task Force -Should compile a complete inventory of all Asset Management
real estate parcels owned by the City, including location, description,
current use, etc.
Asset Management
Opportunities Task Force -Parcels should be categorized according to
their use, i.e., city operations, leased to third party, vacant, etc.
Document current condition of all properties (e.g. brief description, Asset Management
digital pictures).
This inventory has been completed and is updated on an ongoing basis.
This inventory has been completed.
This inventory has been completed.
Public Facilities to be included in inventory.
e Conduct a comprehensive review of all facilities subject to the The process of making City facilities compliant with ADA is slow due to costs of implementing. As financing allows, the process will continue.
r •' requirements of the ADA to determine the costs for required
a improvements and begin the budget process for these improvements.
City ojMiami - Office ojBudger
47 of 53
1:53 PMI2126(97Mosrer comments as of 11-/9-97.xls
(Aftiaiiye$ "':.
Revise LDRs to include monitoring of roads, water, sewer, drainage
and any other infrastructure that may be controlled or affected by
agencies other than the City.
Prioritize properties identified for sate or lease and establish potential'
market value through assessment and/or appraisal.
Establish future property tax potential
Add the following info. to the property inventory spreadsheet: book
value, assessed value/date, appraised value/date, potential annual
property tax base based on current/future 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
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Asset Management Estimate of fair market values established prior to consideration for sale or lease. Requirement for appraisal before disposition.
Asset Management This is part of the decision before considering a sale.
Asset Management Will be included in inventory.
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Develop Annual Property Plan that supports the proposed City Asset Asset Management Completed
Management Policy.
Ensure that all transactions involving City owned or controlled Asset Management This is an ongoing activity.
properties will be subject to the review and approval of the Asset
Management Division of the Planning and Development Department
Opportunities Task Force -Analysis should be performed for each parcel
of lease property to determine certain factors (see task force report for
factors)
Include an assessment of City capital facility needs and operations in
the projection of past, present and future deficiencies and financial
obligations.
Conduct a comprehensive review of all facilities to improve public
safety and to reduce liability.
dies Task Force -Parcels currently used by the City should be
to determine certain factors (see task force report for factors)
ities Task Force -An analysis of surplus parcels should be
i to determine certain factors (see task force report for
Opportunities Task Force -Should consider selling the Miami properties
to one of the lessees or another third party
Sale of City Assets -All city property offered for sale should be reviewed
by the Law Department
Sale of City Assets -Original funding source utilized to acquire and
imprq"Yned property needs to be identified and analyzed.
City ofM7- Budget
Asset Management
CIP and departments
Risk Management
Asset Management
Asset Management
Asset Management
Asset Management
Asset Management
Analysis will be started in FY'98.
Future capital facility needs and meeting future facility financial obligations will be part of the City's long range plan. Funding for present capital
facility needs must be viewed within the limits of the FY'98 budget.
This is an ongoing Risk Management activity.
Analysis is ongoing.
Analysis is ongoing.
Requirements in City Charter require three bids to sell or lease property.
Concur
We agree.
1:53 PM11/16197Masrer comments. 1-19-97.xls
r
City of Miami
Management and Productivity Initiatives
Sale of City Assets -Review all City Parks and evaluate the ability to
Asset Management
This analysis will be conducted with the Parks Department,
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
Asset Management
This analysis will be conducted with the Parks Department.
to Neighborhood associations
Sale of City Assets -Sell various identified properties (see task force
Asset Management
Some of these properties have been either sold or targeted for sale. The others will be reviewed for possible sale.
report for specific listing of properties)
Sale of City Assets -If properties are sold to governmental agencies City
Asset Management
We will try to negotiate such payments into all such contracts.
should negotiate a voluntary annual payment in lieu of taxes (PILOT)
fee in connection with such sales transaction
Revenue Enhancements -Sell inappropriate park properties (or revert
T. Griffin
Coordination between Asset Mgmt & Parks
them to original donors)
All City Departments should develop and obtain approval long range
Department Directors wl coordination from Agree
plans for the properties/facilities under their responsibility.
Asset Management
Public Facilities - Christina Abrams
Conduct an engineering study of all facilities, prioritize, and allocate funds for Capital Improvements or significant repairs.
Each City Department should prioritize its properties /facilities based on
their Department's Strategic Plan.
The Department of Planning and Development should conduct market
studies to determine how the surplus properties should be disposed
and 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.
The Annual Property Plan should include a summary of the following
information: Properties to be sold, properties to be leased, leases due
to renewal, tax impact, cost of maintaining.
Evaluate and implement measures to utilize public parks and recreation
facilities to better generate revenue.
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.
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
All Departments Asset Management to coordinate and put in plan
Office of Budget Refer to the City's Strategic Planning and Benchmarking Initiatives.
Asset Management Disagree. Market Studies are needed in only a few instances.
Asset Management Absolutely agree Depends on p of Properties to be sold which is undetermined at this time
Asset Management These items will be included in the annual property plan.
Public Facilities Perform competitive price analysis annually for all Public Facilities. Study boat ramp usage and competitive fees charged to determine
Implementation at the boat ramps. Solicit corporate sponsorships for Public Facilities and Parks.
Establish strict guidelines for fee waivers.
Alex Martinez This initiative is currently ongoing, discussions with City Manager and Director of GSA
City ojliami - Office oJBadget
49 oj53
1:53 PM11/1619Waster comments as of 11-19-97.xis
City of Miami
Management and Productivity Initiatives
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Transfer the property maintenance individual currently in the
Department of Planning and Development to the GSA Department.
Develop maintenance standards according to property type.
Establish a periodic maintenance program for city owned properties
including vacant lots.
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.
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 facilities.
Establish a fund for preparing properties for sale in annual budget
Disagree. In order to market properties this individual is needed here.
Office of Budget Part of the City's Benchmarking initiative.
Establish a maintenance plan for all Public Facilities. Create a fund for improvements utilizing a percentage of NET profits annually.
Conduct a structural engineering study of Public Facilities to accurately budget costs for significant repairs (i.e. Orange Bowl, Coconut Grove
Convention Center, Miami Convention Center, Dinner Key Marina, Marine Stadium Marina.
Office of Budget Part of the City's Benchmarking initiative.
Asset Managemenl/GSA Agree
Asset ManagemenVGSA Agree
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Complete inventory of rental property that provides the following Asset Management Completed
information.
Potential market rate for each rental property. Asset Management Subject to policies of City Commission; Appraisals needed
Current monthly rental rate. Asset Management/Finance Will help to have financial person in Asset
Lease expiration. Asset Management Underway
Forecast future revenue by utilizing current revenue figures and Asset Management Need to develop base data through appraisals
property appraisals.
Underway
Plan to re -negotiate rental rates / terms prior to expiration of leases. Asset Management
Determine future rent increases based on potential land value and use.
Annually review the inventory to assure that the city is maximizing its
return on rental properties as per Annual Property plan.
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 renewals.
Establish and enforce a policy that the Department of Community
Planning and Development must approve all lease proposals and
property purchases.
Asset Management Review of rental properties is ongoing.
Asset Management The Office of Asset Management in conjunction, with the Law Department have developed standard lease terms that wiii best protect the
interests of the City. All Leases are and will continue to be presented to the City Commission for approval.
Asset Management Memo being prepared for City Manager's signature regarding this procedure
Ctry o,.. )e ojBedget 1:53 PM12/26197Afasrer comments 2-19-97.xls
City of Miami
Management and Productivity Initiatives
Move the collection and tracking of lease payments to the Community Finance/Asset
Planning and Development Department. Integrate rental revenue
information in the financial system.
Finance
Finance - L. Menendez
Start an active campaign to identify delinquent tenants and bill for past Asset Management
rent due. Develop and enforce a policy for late payment which
includes provisions for late charges and eviction.
Total agreement
Collection of lease payments should be centralized in the Finance Department. Establish a system to automatically refer delinquent accounts to
collection agency.
Receivable is set up for each account with detailed information in Moore System.
Working with Finance to collect payments
Finance - L. Menendez Process is in place.
Finance/Public Facilities Establish guidelines for a collection agency to collect from delinquent accounts in Public Facilities. Determine how to lien, foreclose & aucL
vessels for delinquent payments in the Marinas.
y:. '? .{> st':^r«.. 6,d• ">' p...-'"r .q„3�.k :.�w.<"<a�e...g ::-n*a.. •«•' ,sr.' x.>.
Organize the City Managers Real Estate Advisory Group of private City Manager/Asset Mgt. Already work with informal group of realtors. Assoc. of Commercial Real Estate Women have volunteered to provide this advise pro bono
industry professionals who are knowledgeable in the area of real estate
to review the City's leases and provide advice on leasing practices as
Develop RFP for real estate brokerage services. The RFP should
assure that rental properties receive maximum marketing exposure.
Advertise rental properties on the government cable access channel.
isbility for environmental compliance at City operated properties
be consolidated into a single department.
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.
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 compliance.
Fleet Management Task Force -A complete review needs to be
performed to determine DERM and OSHA noncompliance areas
Environmental audits being prepared for the sale of surplus properly
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.
Asset Management Possibly hire staff to undertake; currently have vacant position
Asset Management This initiative is underway.
Dena Bianchino Should be in GSA
Juan Pascual Public Works (suggested)
Asset Management Completed
GSA Agree
Juan Pascual Fleet fueling facility and garage. Compliance requirements for Fleet facilities.
Asset Management/GSA These standards being met. Audits need to be conducted for all properties to be sold
N
City oJMlaml - Office oJBadgei
51 oj53
l:53 PMI2/2N97Masler comments as of /2-/9-97.x1s
City of Miami
Management and Productivity Initiatives
;<: `.-;�. _ 'r..- :r'.3�^'+-•"ems 'rl: ;+r,{wr'x ,�.,_;... .-.>�,•�
In order to maximize the proceeds from the sale of surplus properly, Asset Management Concept OK. Need funds for remediation. Amount unknown at this time.
the City may want to consider selling on other than "as is" basis, in
appropriate circumstances.
l a �;, rt+ �.:x �"„^� ',��� ., pr��... '<�',a...,,..,;,�..
,e �'fid�=w.+.a E's �` .+'"'e°:- 'i3`i�„�r .i= `i' .°,. res's• Dui,-t
'� 3. ke.,�.. .T,"'L-,...,:s; l€`��,.�, °;•�g�'' w �.... '•sVs....�.rsaG.'u�§>;. tq r. .�,.�et'S,,. ">, r'Y-e,::Lv,
.<.� .,wS..s§.�._.. s<J'..°:.,_1•«as:R•;,., .. ....-ry`za':°'�s.'....-,a..,......-.,<,...a45 w.a..'4��....o:�,..:,i��m'_".'I.'�",�=�.c�&�..>.... «.�..};.m'n•.a,<�rs v�...,�. '��a"rae..�"',,.�... ,ta GAS
There should be an Assistant Manager in charge of Development who Manager's Office This function is important to the City; however, any number of other City functions are equally important. We do not agree that this funcli r
oversees the management of City property and coordinates the Annual needs to be headed by an Assistant City Manager for a single function, no matter how important.
Property Plan with the Strategic Plan.
The City should continue to assemble "expert panels from the business Manager's Office The City intends to continue working with the expert panels from the Blue Ribbon Task Force and seeks their continuing input on these as well
community to give advice on critical segments of City owned / leased as other issues.
properties.
Virginia Key and other large parcels of City property should be Arleen Weintraub, Dianne Johnson & Recommend continuation of consolidated RFP development approach to Virginia Key.
assembled into single, consolidated RFPs and these should go out to Roberto Lavemia
bid. Breaking up land parcels into different RFPs makes economic
development difficult.
h Watson Island, the southwest tract of land should be designated Arleen Weintraub & Gary Leuschner Recommend continuation of RFP development as slated in initiative.
a "state of the art" Science Museum or a use that is compatible with
or culturallarts uses found in other 'World class" cities.
i Dinner Key, an RFP to lease the existing convention center and Arleen Weintraub & Dianne Johnson Recommend continuation of RFP process and master plan initiatives.
for development that maximizes benefit to the City, but at the same
does not erode the tax base of the surrounding commercial
With the Knight Center Nations Bank Building Garage and the land
under the Hyatt, the property should be considered for sale since It has
been operated at a loss for 15 years.
i the Department of Off -Street Parking, the City should buy all lots
garages and then develop an RFP to get a private company to
Cage the lots with an initial 5-year renewable lease. Profit to go to
general fund.
Dena Bianchino Working with private sector group to structure sale.
Dena Bianchino Need City Commission guidance.
-.,sxe'�rc��n,x,� ••w a'-_�nrea-•.e:.•�-i+ Yrs..ra.causes.-rav:.syac_xaz<'<:^Y': tt::�ix^:tx,a e.•-.:,..t.:.•,�: n3l�+r a�r'SRf r:"„affix(r"%l�",a'.�:i-'�'.xr:.7%Y.t:;X'.�i^<!.
City-fm- aoJBudget
1:33 PM/1/16197Masrer comments.. .1-19-97.s1s
9~
r
City of Miami
Management and Productivity Initiatives
The legal Department should obtain concurrence of the City Manager's Asset Management/Law Di
Office prior to foreclosure.
The City should avoid assuming the cost of taking title, maintenance, Manager's Office
insurance and disposal associated with properties which are not
beneficial to the City.
Charter Revisions: Revise charter to streamline properly transactions
Expedite resolution of the issue of whether an emergency waiver of
charter requirements can be used in the disposition of City owned
properties.
Establish a timetable to complete Charter revisions.
Give the City the ability to negotiate property sales up to 20 % below
market value on properties appraised below $500,000. These would
not need to go to the Commission.
Give the City the ability to hire licensed real estate brokers to sell or
lease City property.
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.
We generally concur with this recommendation; however, there are cases where the neighborhood interests override the financial concerns. We
reserve the right to make such decisions for the best interests of the residents of our neighborhoods.
Mayor and Electorate Need to establish Charter Review Committee
Requires a legal opinion from the City Attorney.
The Charter Review Committee suggested by the Blue Ribbon Task Force must be created first before a timetable can be established.
Asset Management This would require Charter and/or Code revisions. Need to establish Charter Review Committee.
Asset Management This would require Charter and/or Code revisions. Need to establish Charter Review Committee.
Asset Management Do not agree with five year lease limit. This would require Charter and/or Code revisions. Need to establish Charter Review Committee.
Asset Management Disagree.
City ofMramt - Office of Budget
53 of 53
/:53 PM12/26/97Marter comments as of /2-/9-97.xls
APPENDIX D
5-Year Estimates:
By
Fund
and
Department
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
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
398,9V
21
BOARD OF COMMISSIONERS
680,704
983,655
1,018,595
1,032,865
1,037,1
861,192
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
59,96'1,503
29
POLICE
108,640,517
108,265,351
113,613,494
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
5,339,1'
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
-4,997
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
a
56
BUILDING AND ZONING
4,975,467
4,871,973
5,102,022
5,311,264
5,378,241
5,404,345
A
58
PARKS AND RECREATION
11,688,267
11,701,464
12,077,566
12,430,982
12,582,301
12,692,724
�r
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 10/8197
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
360,8§F
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
GENERALFUND 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
15,869,000
15,871,000
15,871,0
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
e�
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
f-
DEBT SERVICE FUNDS TOTAL
52, 958, 710
52, 958, 710
53, 224, 359
42, 520,793
42, 333, 948
42, 470,157
Page 3
CITY OF MIAMI
5-YEAR EXPENDITURE ESTIMATES
BY FUND AND DEPARTMENT
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
Fund 60 TRUST & AGENCY FUNDS
55 SOUTHEAST OVERTOWN/PARK WEST
59 OMNI TAX INCREMENT DISTRICT
64 COMMUNITY REDEVELOPMENT AGENCY
TRUST & AGENCY FUNDS TOTAL
667,514
550,000
550,000
640,000
730,000
820,000
849,217
707,303
707,303
707,303
707,303
707,h
912,408
635,000
635,000
635,000
635,000
635,00u
2, 429,139
1, 892, 303
1,89Z303
1, 98Z 303
2,072,303
2,16Z 303
Page 4
APPENDIX E
5-YEAR ESTIMATES:
REVENUES BY FUND,
CHARACTER AND
MINOR OBJECT
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
01 TAXES
001
TAXES REAL CURRENT
95,291,491.
95,291,491
96,760,874
99,480,380
102,462,265
105,533,530
002
TAXES PERSONAL CURRENT.
12,028,653
12,028,653
12,664,740
12,791,387
12,919,301
13,048,494
052
GAS FRANCHISE
791,190
659,062
693,957
704,253
727,814
752,052t
229
FP & L FRANCHISE
12,500,000
12,082,832
12,138,695
12,194,503
12.250,289
12,306,074�
283
TAXES REC REAL DEL
2,018,387
1,800,000
11800,000
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
125,525,725\
123,393,391
125,606,746
128.536,473
131,743,438
135,023,919
02 LICENSES AND PERMITS
025
LINE & GRADE SURVEY
86,234
86,234
86,234
86,234
86,234
86,234
053
BUSINESS -LICENSE-
5,400,000
5,700,000
5,700,000
5,700,000
5,700,000
5,700,000
054
BUSINES-LICENSE-PENALTY
350,000
261,000,
261,000
261,000
261,000
261.00-If
056
OCCUPAT LICENSE -TRANSFER FEE
300
100
100
100
100
100
100
FIREWORKS PERMIT
1;708
1,708
1,708
1,708
1,708
1,708
101
ASSEMBLY PERMIT
6,200
6,200
6,200
6,200
6,200
6,200
107
SALE OF PERMITS LOT CLEARING
4,670
4,670
4,670
4,670
4,670
4,670
108
MICROFILM CHARGES-BLDG
32,120
'40,150
40,150
40,150
40,150
40,150
124
BENCH PERMITS
454.345
170,000
170,000
170.000
170,000
170,000
286
CONTRACTORS OCCUPATIONAL LICEN
45,000
15,000
15,000
15,000
15,000
15,000
cc
�m
350
TRAFFIC PERMIT FEES
42,000
90,000
90,000
90,000
90,000
90,000
Wednesday, October
29, 1997 10:50:35 AM
Page 1 of 15
City of Miami
5-Year Estimates
as of 10/8197
Revenues by Fund, Character and Minor Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 01 GENERAL FUND
427
CODE ENFORCEMENT PENALTY
250.000
450,000
450.000
450,000
450,000
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
1,089137F
462
ACCESORY USE CERTIF - RENEWAL
30,000
22,000
22,000
22,000
22,000
22,000
464
CLASS C SPECIAL PERMITS
25,007
25,007
25,007
25,007
25,007
25,007
465
MAJOR USE SPECIAL PERMITS
25,000
25,000
25,000
25,000
25,000
25,000
499
TEMPORARY CERTIF OF OCCUPANCY
216,000
22,000
22,000
22,000
22,000
22,000
511
CLASS B
35,000
33,000
33,000
33,000
33,000
33,000
522
HEARING BOARD APPLICATION REVI
5,500
5,500
5,500
5,500
5,500
5,500
628
CONTRACTOR'S ANNUAL FEE
65,000
65,000
65,000
65,000
65,000
65,000
642
TICKETING - ADMINISTRATIVE FEE
1,500
1,500
1,500
1,500
1,500
. 1,500
643
TICKETING - FINES - CEB
20,000
38,000
38,000
38,000
38,000
38,000
644
TICKETING - FINES - ARCV
250,000
250,000
250,000
250,000
250,000
250,000
651
PAY TELEPHONE PERMITS
115,869
115,869
119,345
122,925
126,613
126,613
674
ALCOHOLIC BEV. APP. FEES
3,000
3,000
3,000
3,000
3,000
3,000
TOTAL LICENSES AND PERMITS
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 8,688,370 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
19
Wednesday, "tober 29, 1997 10:50:37 AM Page 2 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
077
BUSINESS -LICENSE -LIQUOR
163,713
163J13
161,496
159,279
157,052
155,000
251
TRAINNING REVENUE
20,000
20,000
20,000
20,000
20,000
20,060
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
11810,500
1,846,710
1,883,644
1,883,644
439
HALF CENT SALES TAX
19.012,000
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
37,103,660
37,407,482
40,459,533
33,722,870
30,280,750
28,194,848
04 CHARGES FOR SERVICES
016
AUTO POUND
70,000
120.000
120,000
120,000
120,000
120,000
024
PUBLIC WORKS MISCELLANEOUS
8,905
8,905
8,905
8,905
8,905
8,905
028
PLAT CHECKS
33,246
33,246
33,578
33,914
34,253
34,253
030
COVENANT FEES
7,197
4,500
4,500
4,500
4,500
4,501
031
EXCAVATION UTILITIES
204,174
273.227
273,227
273,227
273,227
273,227
033
SIDEWALK CUTS & REPAIR- PUB-WK
23,901
23,901
23,901
23,901
23,901
23,901
038
LIGHTS -LINES
1,077
1,077
1,077
1,077
1,077
1,077
041
MISCELLANEOUS FEES -LEIS. SERV
2,550
2,550
2,550
2,559
2,550
2,550
e-L
042
RENTAL-
235,053
350,000
350,000
350,000
350,000
350,180
1
044
POOLS
2,571
5,000
5,000
5,000
5,000
5,000
049
PARKS CEMETERY CHARGES
2,600
2,600,
2,600
2,600
2,600
2,600
r
�R
058
BOILER INSPECTION
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
5-Year Estimates
as of 10/8/97
Revenues by Fund, Character and Minor Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 01 GENERAL FUND
059
ELEVATOR INSPECTION
190,000
300,000
300,000
300,000
300,000
300,000
060
ELECTRICAL INSPECTION
626,625
626,625
626,625
626,625
626,625
626,625
062
BUILDING INSPECTION
2,302,942
2,442,484
2,442,484
2,442,484
2,442,484
2,442,484
063
PLUMBING INSPECTION
440.000
450,000
450,000
450,000
450,000
450,000
086
EMERGENCY MEDICAL SERVICE
3,821,511
4,000,000
4,200,000
4,410,000
4,630.500
4,862,02
090
PHOTOCOPY SERVICES
134,565
151.561
151,661
151,561
151,561
151,561
097
FIRE FLOW INSPECTION
16,473
17,092
17,092
17,092
17,092
17,092
098
INFLAMMABLE LIQUIOS INSPECTION
19,530
19,530
19,726
19,923
20,122
20,122
099
STANDPIPE PRESSURE TEST
3,252
2,200
2,200
2,200
2,200
2,200
103
SALE OF FIRE REPORTS
4,477
6,000
6,000
61000
6,000
6,000
110
SALE OF ATLASES PLANNING BOARD
1,000
1,000
1,000
1,000
1,000
1,000
112
UNCLAIMED MONIES
160,000
160,000-
160,000
160,000
160,000
160.000
115
SERV CHGS -GENERAL GOVT
640,000
580,000
580,000
580,000
580,000
580,000
117
LOT CLEARING -CURRENT YEAR
110,912
110,912
110,912
1 %,912
110,912
110.912
145
RENTAL STADIUMS ONLY
730,000
730,000
730,000
730,000
730,000
730,00
146
EQUIPMENT RENTAL
75,000
75,000
75,000
75,000
75,000
75,000
149
ELEVATOR PERMITS
290,000
77,719
77,719
77,719
77,719
77,719
150
MECHANICAL PERMITS
15,000
10,000
10,000
10,000
10,000
10,000
154
RENTAL - AUDITORIUMS ONLY
609,000
590,000
590.000
590.000
590,000
590,000
155
LAND USE REVIEW
27,000
56,000
56,000
56,000
56,000
56,000
156
EVENT PARKING
177,000
177,000
177,000
177,000
177,000
177,000
157
MISC. PERSONNEL - STADIUMS ONL
10,000
10,000
10,000
10,000
10,000
10,000
168
KART RENTALS
170,000
0
0
0
0
0
WednesdW, ctober 29, 1997 10:50:39 AM Page 4 of 15
City of Miami
5-Year Estimates
as of 10/8/97
Revenues by Fund, Character and Minor
Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 01 GENERAL FUND
169
GREEN FEES
175.000
0
0
0
0
0
171
ANNUAL MEMBERSHIPS
16,000
0
0
0
0
�0
173
SPECIAL GOLF PACKAGE
4,000
0
0
0
0
0
174
DRIVING RANGE
51000
0
0
0
0
0
208
DAY CARE FEES
249,395
210,000
210,000
210,000
210,000
210,000
216
DOCKAGE WATSON ISLAND
48,000
48,000
48,000
48,000
48,000
48,000
224
SPECIAL EVENT
50,000
85,000
85,000
85,000
85,000
85,000
225
ENGINEERING SERVICES
500,000
500,000
500,000
500,000
500.000
500,000
228
EXCESS COLLECTION FEES
2,500
6,000
6,000
6,000
6,000
6,000
250
POLICE ESCORT
38,032
42,627
42,627
42,627
42,627
42,627
269
LOT CLEARING AND DEMOLITION
16,642
19,390
19,390
19,390
19,390
19,390
319
SOLID WASTE FEES - PENALTIES
102,869
0
0
0
0
0
329
CITY CLERK -QUALIFYING FEES
1,262
1,262
1,275
1,287
1,300
1,300
330
SOLID WASTE FEE - RES. ACCTS
570,466
2.006,532
2,006.532 '
2,006,532
2,006,532
2,006,532
341
BURGLARY AND ROBBERY ALARM ORD
625,000
725,000
725,000
725.000
726,000
725,000
351
ADMIN SURCHARGE -OFF DUTY
640,956
640,956
647.366
653,839
660,377
660,377
353
COST ALLOCATION PLAN
1.018,947
1,018,947
1,018,947
1,018,947
1,018,947
1,018,947
358
TENNIS FEES
4,393
4,849
4,849
4,849
4,849
4,849
359
TOWING ADMIN. CHARGES REVENUE
266,000
194,529
194,529
194,529
194,529
194,529
396
DOCKAGE LONG TERM
2,896,520
2,896,520
3,004,520
3,004,520
3,004,520
3,004,520
'
397
DOCKAGE TRANSIENT
754,532
754,532
854.532
854,632
854,532
854,532
396
DOCKAGE COMMERCIAL
427,712
427,712
427.712
427,712
427,712
427,712
419
DOCKAGE - USERS SURCHARGE
83,000
83,000
83,000
83,000
83,000
83,000
Wednesday, October 29, 1997 10:50:41 AM
Page 5
of 15
City of Miami
5-Year Estimates
as of 10/8/97
Revenues by Fund, Character and Minor Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 01 GENERAL FUND
441
PARKING RENTAL
289.248
264,248
264.248
264,248
264,248
264,248
453
SALE OF MAPS & PUBLICATIONS
931
931
940
949
959
959
460
SPECIAL INSPECTIONS
23,855.384
23,826,384
27,296,077
25,847,740
25,875,772
25,875.772
463
MISC PERSONNEL - AUDITORIUMS
40,295
40,295
40,295
40,295
40,295
40,295
470
GAS INSPECTION PERMITS
38,500
35,000
35,000
35.000
35,000
35,000
471
AIR CONDITIONING PERMITS
350,000
375,060
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
80,250
80,250
80.250
515
COMPREHENSIVE PLAN AMENDMENT F
2,500
2,500.
2,500
2,500
2,500
2,500
517
PREMIUM FROM EX EMPLOYEES-COBR
40,000
34,169
34,169
34,169
34,169
34,169
520
HCB APPERANCE FEE
833
833
841
849
858
858
523
$0.50 TICKET SURCHARGE
1,500
1,500
1,500
1,500
1,500
1,500
524
$0.75 TICKET SURCHARGE
15,000
15,000
15,000
15,000
15,000
15,000
525
$1.00 TICKET SURCHARGE
565.000
865,000
865,000
865,000
865,000
865,000
526
SIDEWALK CAFE PERMITS
70,463
70,463
70,463
70,463
70,463
70,463
527
WATERFRONT IMPROVEMENTS PERMIT
32,437
32,437
32,437
32,437
32,437
32,437
528
PUBLIC WORKS - SALE OF DOCUMEN
17,286
17.286
17,286
17.286
17,286
17,286
529
HAULERS PERMIT FEE
2,625,000
2,750,000
2,750,000
2,750,000
2,750,000
2,750,000
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 sober 29, 1997 10:50:42 AM Page 6 of 15
City of Miami
5-Year Estimates
as of 10/8/97
Revenues by Fund, Character and Minor Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 01 GENERAL
FUND
555
CODE ENFORCEMENT ADMIN. FEE
85,000
91,964
91,964
91,964
91,964
91,964
570
INTERIM PROPRIET FEES ORD 1060
223.923
585,089
585,089
585,089
585,089
585,06
571
ORD. 10596-ALARM SYSTEM INSPEC
22,914
27,337
27,337
27,337
27,337
27,337
572
ORD. 10596- REINSPECTION FEES
4,949
4,949
4,998
5,048
5,098
5,098 f
577
PLAN CHECKING FEE
204.209
219,572
219,672
219,572
219,572
219,572
578
RIGHT-OF-WAY USE PERMIT
69,431
30,647
30,647
30,647
30,647
30,647
584
SPRINKLER SYSTEM INSPECTION
25,133
31,600
31,600
31,600
31,600
31.600
589
FIRE SAFETY PERMIT FEES
525,000
525,000
1,050,000
1,050,000
1,050,000
1,050,000
598
ADMIN. FEE - FIRE (ORD. 10237)
4,959
4.959
6,008
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
50,926,575
53,419,574
57,833,346
56,606,238
56,866,155
57,102,105
05 FINES AND FORFEITS
084 METRO COURT -FINES & FORFEITURE
247 FORFEITED FUNDS
509 SCHOOL CROSSING GUARD
637 NUISANCE ABATEMENT BOARD FINES
TOTAL FINES AND FORFEITS
06 MISCELLANEOUS REVENUE
Wednesday, October 29, 1997 10:50:43 AM
k
3,055,815
2,918,086
2,918,086
2,918,086
2,918,086
2,918,086
187,500
312,997
312,997
312,997
312,997
312,997
107,148
.147,193
147,193
147.193
147,193
147,193
1,250
250
250
250
250
250
3,351,713
3•,378,526
3.378,526
3,378,526
3,378,526
3,378,526
Page 7 of 15
City of Miami
5-Year Estimates
as of 1018/97
Revenues by Fund, Character and Minor Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 01 GENERAL FUND
040
CONCESSIONS
1,467,400
1.455,400
1,455,400
1,455.400
1,455.400
1.455,400
048
REIMB LOST PROPERTY
8,955
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
105,831`
094
INTEREST ON INVESTMENT
1,800,000
1,800,000
1,700,000
1,700,000
1,700,000
1,700,000
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
10,000
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
11500.000
1,500,000
1,545,000
1,591,350
1,639,090
1,639,090
TOTAL MISCELLANEOUS REVENUE
14,671,827 14,736,767 9,196,694
11,243,998 11,785,222 11,785,222
N
Wednesdp: tober 29, 1997 10:50:44 AM _ Page 8 of 15
0
City of Miami
5-Year Estimates
as of 10/8197
Revenues by Fund, Character and Minor Object
FY 1998 FY 1998 FY 1999
FY 2000 FY 2001 FY 2002
Revised Year End Estimated
Estimated Estimated Estimated
Budget Projection Budget
Budget Budget Budget
Fund 01 GENERAL FUND
08 NON -REVENUES
212 CONTRIB. FROM EMPLOYEES -GRP 1
2,149,347
2,149,347
2,149,347
2,149,347
2,149,347
2,149,347
215 SALARY RECOVERY
164,331
180,664
180,664
180,664
180,664
180,664
221 PENSION -METRO COURTS
71,691
71,691
71,691
71,691
71,691
71,691
308 POLICE OVERTIME SALARY REFUND
400,000
500,000
500.000
500,000
500,000
500,000 `
503 CONTRIS 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
0
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
T TOTAL INTERNAL SERVICE FUNDS
36.134,970 41,091,760 26.886,405 39,842,797 42,353.707 42,732,691
Cam".
�y GENERAL FUND TOTAL • 289,948,781 295,837,353 284,311,579 294,284,811 297,365,395 299,174,908
t_7
Wednesday, October 29. 1997 10:50:45 AM Page 9 of 15
City of Miami
5-Year Estimates
as of 10/8/97
Revenues by Fund, Character and Minor Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 10 SPECIAL REVENUE FUND
01 TAXES
051
TELEPHONE FRANCHISE
1,476,960
1,476,960
1,491,729
1,506,646
1,521.713
1,521,7b
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
t
1,076,976
133
UTILITY SERV. TX. -WATER
2,804,876
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
6,862,000
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
42,051.745
43,930,680
45,011,244 -
46,161,603
47,388,074
48,681.240
03 INTERGOVERNMENTAL REVENUE
203
FLA. DEPT. HEALTH & REHABILTAT
268,315
268,315
�74,513
280,724
283,496
283,496
349
OTHER PUBLIC AND PRIVATE CONTR
15,000
15,000
15,000
15,000
15,000
15,000
429
FI DEPT OF LAW ENFORCEMEENT
103,000
103,000
106,090
109,272
112,651
112,551 ,.
621
E911 SYSTEM FEE - RECURRING FE
974,085
974,085
988,592
1,003.535
1,018,927.
1,034,780
622
E911 SYSTEM NON -RECURRING FEE
240,000
240,000
240,000
240,000
240,000
240,000
TOTAL
INTERGOVERNMENTAL REVENUE
1,600,400
1,600,400
1,624,195
1,648,531
1,669,974
1,685,827
04 CHARGES FOR SERVICES
017 OTHER SVCE CHGES AND FEES-SP F
042 RENTAL-
043 CLASS -FEES
Wednesday, 1-1-tober 29, 1997 10:50:46 AM
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
Page 10 of 15
E
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 10 SPECIAL REVENUE FUND
154
RENTAL - AUDITORIUMS ONLY
422
RENTAL MEETINGS/SEMINAR ROOMS
423
MISCELLANEOUS CONVENTION CENTE
441
PARKING RENTAL
523
$0.50 TICKET SURCHARGE
524
$0.75 TICKET SURCHARGE I
525
$1.00 TICKET SURCHARGE
534
ADMINISTRATION FEE
549
STORMWATER UTILITY FEE
629
IMPACT FEE ADMINISTRATION
650
SUMMER CAMP FEES
TOTAL CHARGES FOR SERVICES
06 MISCELLANEOUS REVENUE
040 CONCESSIONS
070 RENTAL PROPERTIES
094 INTEREST ON INVESTMENT
152 PR. YRS. REVENUE
443 RENTAL - AIR RIGHTS
451 RENTAL PROP-CONV CTR BASE RENT
TOTAL MISCELLANEOUS REVENUE
09 INTERNAL SERVICE FUNDS
Wednesday, October 29, 1997 10:50:47 AM
418,730
418,730
418,730
418,730
418,730
418,730
346,985
346,985
346,985
346,985
346,985
346,985
354,573
354,573
354,673
354,573
354,573
354,573
2,007,687
2,007,687
2,067,918
2,129,955
2,193,854
2,193,854
4,000
0
4,000
4,000
4,000
4,000
10,000
10,000
10,000
10,000
10,000
10,000
70,652
70,652
70,652
70,652
70,652
70,652
18,000
18,000
18,000
18,000
18,000
18,000
9,000,000
9,000,000
9,000,000
9,000,000
9,000,000
9.000,000
18,000
18,000
18,000
18,000
18,000
18,000
58,174
58,174
60,415
62,721
65,097
65,098
12,451,801
12,451,802
12,514,273
12,578,616
12,644.891
12,647,338
10,000
10,000
10,000
10,000
10,000
10,00!
300,000
300.000
300,000
300,000
300,000
300,000
205,717
205,717
205,717
205,717
205,717
205,717
160.000
160,000
16 0, 000
160,000
160,000
160,000
366,852
366.852
366,652
366,852
366,652
366,852
427,417
427,417
440,239
453,446
467.049
467,049
1,469.986
1,469,986
1,482,808
1,496,015
1,509,618
1,509,618
Page 11 of 15
City of Miami
5-Year Estimates
as of 10/8/97
Revenues by Fund, Character and Minor Object
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 10 SPECIAL REVENUE FUND
192 CONTRIBUTION FROM SPA
2,590,006
2,590,006
2,777,411
2,986,094
3,066.160
3,099,277
193 CONTRIBUTION FROM GN.FD.
976,495
975.495
943,233
998,798
1,004,534
1,016,938
901 ACCTS REC COLLECTIONS
2,160,000
1,118,769
1,002,858
932,533
902,926
892,507
TOTAL INTERNAL SERVICE FUNDS 5.715,501 4,684.270 4,723,502 4,917,425 4,973,620 5,008,722
SPECIAL REVENUE FUND TOTAL 63.289,433 64,137,138 65,356,022 66,802,190 68,186,177 69,632,745
Wednesday ^ober 29, 1997 10:50:48 AM Page 12 of 15
City of Miami
5-Year Estimates
as of 10I8197
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
2,498,101
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
184,755
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
5,421,687
5,421,687
5,420,896
6,421,643
5,419,976
5,419,582
TOTAL INTERGOVERNMENTAL REVENUE
5,421,687
5,421,687
5,420,896
5,421,643
5,419,976
5.419,582
/
09 INTERNAL SERVICE FUNDS
309 CONTRIBUTION FROM UTIL. SERV.T
12,105,072
12,105,072
12,117,640
4,823,966
4,809,133
4.850,999
356 CONTRIBUTION FROM TRUST AND AG
988,544
988.544
797,744
995,093
982,228
977,647
436 CONTR FROM SPECIAL REVENUE FUN
1,451,481
1,451,481'
1,437,341
0
0
0
447 CONTRIB FROM DEBT SERV M U ST
9,353,860
9,353,860
9,350,457
9,341,987
9,342,914
9,429,086
903 DEPOSITS
2,595,000
2,595,000
2,595,000
2,595.000
2,595,000
3,205,145
TOTAL INTERNAL SERVICE FUNDS
26,493,957 26,493.957 26.298,182 17,756,046 17,729,275 18,462,877
DEBT SERVICE FUNDS TOTAL 52,958,710 52,958.710 53,224,359 42,520,793 42,333,948 42,470,157
Wednesday, October 29, 1997 10:50:49 AM Page 13 of 15
City of Miami
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
1,227,3d3
TOTAL TAXES
.1,323,060
957,303
957,303
1,047,303
1,137,303
1,227,303
03 INTERGOVERNMENTAL REVENUE
310 CONTR FROM OTHER GOVTS-COUNTY
193,671
300,000
300,000
300,000
300,000
300,000
TOTAL INTERGOVERNMENTAL REVENUE
193,671
300,000
300,000
300,000
300,000
300,000
06 MISCELLANEOUS REVENUE
143 MISCELLANEOUS REVENUE
692,994 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. 319,414 185,000 186,000 185,000 185.000 185,000
TOTAL INTERNAL SERVICE FUNDS 319,414 185,000 185,000 185,000 185,000 185,000
TRUST & AGENCY FUNDS TOTAL 2,429,139 1,892,303 1,892.303 1,982,303 2,072,303 2,162,303
Wednesday ^rttober 29, 1997 10:50:50 AM Page 14 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
GRAND TOTAL
408,626,062 414,825,503 404,784,263 405,590,097 409,957,823 413,340,113
Wednesday, October 29, 1997 10:50:50 AM
Page 15 of 15
APPENDIX F
5-Year Estimates:
Revenues
by
Fund
and
Minor
Object
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8197
'
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
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
14,367,606
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
3,660.88
013
SALARIES - TEMPORARY
1,916,489 1,803,054
1,803,654
1,803,737
1,803,570
1,803,570
025
PREVENTION PAY
2,972,304 3,200,371
3,364.422
3,318,811
3,195,697
3,088,014
035
MEDICAL HOLD
72,945 0.
0
0
0
0
s� 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
500,000 500.00.0
500.000
500,000
500,000.
500,000
Wednesday,
October 29, 1997 10:49:10 AM
Page 1 of 26
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8/97
Organization
FY 1998
Revised
FY 1998
Year End
FY 1999
Estimated
FY 2000
Estimated
FY 2001
Estimated
FY 2002
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
625,000
625,000
625,000
625,000
625,000
064
IAFF - SALARY INCENTIVE OVERTI
573,206
573,206
573,206
573,206
673,206
573,20
065
SALARIES - MOTORCYCLE ALLOWANC
9,369
9,369
9,369
9,369
9,369
9,369
066
WORKING OUT OF CLASSIFICATION
20,000
20,000
20,000
20,000
20,000
20,000
067
DRIVER ENGINEER ALLOWANCE
315,604
300,765
313,949
325,864
329,276
331.482
068
COMMUNICATIONS TRAINER
10,640
10,440
10,440
10,480
10,400
10,400
069
MISCELLANEOUS PLUS ITEM
8,242
8,148
8,459
8,741
8,792
8,796
074
OFF -DUTY
268,550
268,550
268,550
268,550
268,550
268,550
TOTAL SALARIES & WAGES -FIXED 147,150,147 146,584,800 154,996,653 161,546,393 161,646,148 160,855.064
Wednesday ntober 29, 1997 10:49:12 AM Page 2 of 26
P
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
166,699
155,520
155,520
072
INCENTIVE PAY
11,946
218,551
218,551
219,384
217,704
217.704
073
FIRE - EMT RECERTIFICATIONS
60,000
60,000
60,000
60,000
60,000
60,000
075
CLOTHING - CITY PURCHASE
768.910
767,810
767,810
767.810
767,810
767.810
080
EXPENSE ALLOWANCE
39,710
44,510
44,510
44,519
44,500
44,500
081
OFFICIAL ENTERTAINMENT
2,500
2,500
2,500
2,500
2,500
2,500
083
CAR ALLOWANCE
65,395
77,040
77,040
77,172
76,900
76,900
084
24 HRS CITY VEHICLE
10,468
13,362
13,362
13,362
13,362
13,362
085
TOOL ALLOWANCE
18,453
19,490
19,490
19,553
19,388
19,388
087
TUITION REIMB.-EDUC. ASSIST.-N
11,000
11,000
11,000
11,000
11,000
11,000
100
- -- -- - ----- -- -- - --- -- --
SOCIAL SECURITY CONTRIB
- -
4,692,887
4,835,355
-------
5,080,980
-
5,289,692
5,306,797
5,306,86
104
SOC. SEC. ON TERM LIFE INSURAN
2,821
27,073
21,073
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
4 141
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
C
143
PLUS ITEM/ST CE FT -1.5%
6,465
5,755
5,877
5,960
5,956
5,956
Wednesday, October 29, 1997 10:49:13 AM
Page 3 of 26
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8/97
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%
25,882
23,983
24,677
25.249
25,257
25,299
145
PLUS ITEM/DIVE TEA - 1.5%
23,225
23,119
24,089
24,963
25,367
25,820
146
PLUS ITEM/IAFF SWAT TEAM - 1.5
12,177
13,581
14,076
14,581
14,758
14,832
147
PLUS ITEM/ST COMAN -1%
9,360
9,437
9,809
10,168
10,255
10,278
149
ALS ACTING
73,000
73,000
73,000
73,000
73.000
73,000
150
WORKER'S COMPENSATION
10.853,431
10,853,431
11,086,735
11,184,056
11,228,824
11,023,420
160
UNEMPLOYMENT COMPENSATION
62,00.0
62,000
62,000
62,000
62,000
62,000
161
PLUS ITEM/FIELD TRAINING OFFIC
160,592
130.050
136,526
142,451
144,319
- 146.400
162
PLUS ITEM/BOMB SQUAD - 5%
13,558
11.555
12,078
12,484
12,512
12,601
163
PLUS ITEM/SWAT - 5%
66,043
69,957
73,649
77,035
78,343
79,621
164
PLUS ITEM/COMMUNICATIONS - 5%
94,817
139,863
144,149
148,560
150,096
151,274
165
PLUST ITEM/SHIFT DIFF. O/T PAY
20,000
20.000
20,000
20,000
20,000
20,000
166
PLUS ITEM/GARAGE ON CALL - 7.5
13,511
13,51.1
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
5,304
5,304
Wednesday,'
ber 29, 1997 10:49:14 AM
Page 4 of 26
�JF
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8/97
FY 1998 FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Organization Revised Year End
Estimated
Estimated
Estimated
Estimated
Budget Projection
Budget
Budget
Budget
Budget
190 PERSONAL SERVICES - OTHER 5,100 5,100
5.100
5,100
5,100
5,100
TOTAL FRINGE BENEFITS -FIXED 68,017,637 69,261,798 70,644.329 72,432,415 73,986,587 75.319,246
F:
Wednesday, October 29, 1997 10:49:15 AM Page 5 of 26
City of Miami
6-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8/97
e
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
205
LOT CLEARING AND DEMOLITION
2,060
2,060
2,122
2,186
2,252
2,3`LO
211
ACTUARIAL REQUIREMENTS -SYSTEM
14,065,851
14,155,472
14,487,827
14,922,462
15,370,136
15.831,240
212
ACTUARIAL REQUIREMENTS -PLAN
12,988,256
12,988,256
13,377,904
13,779,241
14,192,618
14,618,397
213
CITY PENSION CONTRIBUTION I.C.
10000
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
14,662
15,091
15,546
16,014
16,496
420
TRAVEL AND PER DIEM - OTHER
67,655
72,187
74,353
76,586
78,884
81,252
470
ENTERTAINMENT
6,058
9,081
9,354
9,634
9,923
10,221
495
PARKING EXPENSE
113,412
121,652
125,302
129,062
132,934
136,923
531
DADE COUNTY SCALE FEES
7,324.385
7,846,350
8,081,740
8,324,192
8,573,918
8,631,135
533
POSTAGE
298,350
298,865
307,832
317,068
326,578
336,377
540
UTILITY SERVICES - ELECTRICITY
2,666,862
2,625,308
2,704,067
2,785,190
2,868,744
2,954,807
545
UTILITY SERVICES -STREET LIGHTI
3,988.551
3,988,551
4,108,208
4.231,454
4,358,398
4,489,150
550
UTILITY SERVICES - GAS
23,647
23,647
24,356
25,088
25,841
26.615
560
UTILITY SERVICES - WATER
615,167
607,452
625,677
644,444
663,780
683,693
610
RENT OF EQUIPMENT - OUTSIDE
780,083
718,489
740,040
762,241
785,106
808,662
Wednesday,
0 I ber 29, 1997 10:49:16 AM
Page 6 of 26
�7TV
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
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
114,262
117,679
121,210
124,846
715
MOTOR FUEL
2,037,961
2,037.961
2,099,100
2.162,073
2,226,935
2,293.743
728
EQUIPMENT USAGE
12,360
12,360
12,731
13,113
13,506
13,911
770
INTERNAL SERV CHGES MOTOR POOL
5,906,698
5,906,698
6,224,289
6,415,729
6,655.140
6,689,825
771
INTERNAL SERV CHGES HEAVY EQUI
4,505,507
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
955,498
983,260
998,273
1,013,843
774
INTERNAL SERV CHGES COMMUNIC M
1,215,229
.1,215,538
1,222,407
1,249,964
1,267,293
1,279,055
775
INTERNAL SERV CHGES CUSTODIAL
117,367
117,367
120.947
124,280 .
127,713
131,24
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 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
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
16,81
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
162,202
156,769
335
LICENSE, PERMITS & MISCELLANEO
283,827
283,827
292,343
301,113
310,148
319,452
340
OTHER CONTRACTUAL SERVICES - O
2,883,429
2,883,429
2,969,931
3,059,031
3,150,805
3.245,328
475
ENTERTAINMENT
1,259
1,259
1,297
1,336
1,377
1,419
510
COMMUNICATIONS SERV. TELEPH. O
1,159,455
1,159,455
1,194,024
1,229,655
1,266,271
1.304,045
530
TRANSPORTATION
27,964
27,964
28,803
29,667
30,557
31,474
532
ROAD TOLLS
66,461
66,461
68,454
70,508
72,622
74,799
534
DELIVERY SERVICES
1,030
1,030
1,061
1,093
1,126
1,160
Wednesday 1 tober 29, 1997 10:49:18 AM
x
Page 8 of 26
U
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8/97
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Organization
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
650
INSURANCE - LIABILITY
1,745,066
1,745,066
1.797,418
1,851,341
1,906,882
1,964,088
651
VEHICLE LIABILITY SELF FD
899,007
899,007
925,977
953.756
982,369
1,011,840
652
POLICE TORT LIABILITY SELF-FD
2,317,500
2,317,500
2,387,025
2,458,636
2,532,395
2.608.367
653
SLIPS/FALLS LIABILITY SELF-FD
1,030,000
1,030,000
1,060,900
1,092,727
1,125,509
1,159,274
655
GROUP LIFE AD/D INS PREMIUM
2,781,000
2.781,000
2,864,430
2,950,363
3,038,874
3,130,040
656
GROUP HEALTH INS BENEFIT
14,854,235
14,854,235
14,799,862
15,258,858
15,731,624
16.218,575
657
GROUP ADM COSTS - OUTSIDE SERV
267,800
267,800
275,834
284,109
292,632
301,411
661
PUBLIC OFFICIALS LIABILITY
1,960,000
1,960,000
2,018,800
2,079,364
2,141,745
2,205,997
665
WORKERS' COMPENSATION PAYMENTS
3,167,158
3,167,158
2,762,173
2,610,038
2,460,839
2,064.664
666
WORKERS' COMPENSATION MEDICAL
3,455,000
3,455,000
3,058,650
3,165,410
3,275,372
3,388,633
667
WORKERS' COMPENSATION LEGAL
821,563
821,563
846,210
871,596
897.744
924.676
668
WORKERS' COMPENSATION MISCELLA
772,500
772,500
795,675
819,545
844,131
869,4
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
q 690
PROMOTIONAL ACTIVITIES
25,029
22,464
23,128
23,822
24,537
25,273
700
OFFICE SUPPLIES
489,789
490,194
504,899
520,046
535,647
551,715
I.7
Wednesday, October 29, 1997 10:49:19 AM
Page 9 of 26
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
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
87,6754
705
HOUSEKEEPING / SANITATION SUPP
124.244
123,054
126,746
130,548
134,465
138,498
706
BUILDING MATERIALS AND SUPPLIE
104,442
104,030
107,149
110,363
113,675
117,087
707
ELECTRICAL SUPPLIES
104,751
104,751
107,893
111,131
114,466
117,901
708
PLUMBING SUPPLIES
61,182
57,577
59,304
61,083
62,916
64,803
709
FIRE HOSE AND ATTACHMENTS
17,819
17,819
18,354
18,904
19,471
20,055
712
HORTICULTURAL SUPPLIES
117,076
87,550
90,177
92,882
95,668
98,538
713
LUBRICANTS AND MOTOR OIL
109,709
109,709
113,000
116,390
119,882
123.479
714
DRUGS AND MEDICINE
303,335
303,335
312,433
321,807
331.462
341,406
716
PAPER STOCK - PRINTING
114,150
114,150
117,574
121,102
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
128,065
127.138
130,951
134,881
138,927
143,096
720
EXPENDABLE TOOLS SHOP SUPPLIES
171.271
167,872
172,908
176,095
183.439
168,940
Wednesdays^-ber 29, 1997 10:49:20 AM Page 10 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
721
TIRES TUBES
722
MISCELLANEOUS SUPPLIES
723
PRINTING SUPPLIES
724
PAINT SUPPLIES
726
AIR CONDITIONING SUPPLIES
731
OPER. SUPPLIES -COMPUTER PRINTI
750
ROAD MATERIALS AND SUPPLIES
760
BOOKS PUBLICATIONS MEMBERSHIPS
792
ENGINEERING - PUBLIC WORKS
793
OZALID BILLINGS
795
INTERDEPMENTAL CHGES -POLICE (-
TOTAL OPERATING EXPENSES -VARIABLE
502,022 502,022 517,082 532,595 548,573
636,267
640,284
659,490
679,277
699.652
18,540
18,540
19,096
19,669
20,259
31,930
31,930
32,888
33.876
34,891
39,655
39,655.
40,845
42,071
43,333
3,090
3,090
3,183
3,278
3,376
82,400
82,400
84,872
87,418
90,040
116,138
117,580
121,107
124,742
128.484
515
515
530
546
562
26
26
27
28
29
4,069 4,069 4,191
50,812,946 50,959,601 50,482,610
4,316
51,801,356
4,444
53.167.083
565,031
720,642
20,867
35,938
44,633
3,477
92,741
132.337
579
30
4,575
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
600 CAPITAL OUTLAY -VARIABLE
830
IMPROVEMENTS OTHER THAN BUILDI
18,000 18,000
18,000
18,000
18,000
18,600
840
EQUIPMENT - NEW
745,953 735,739
708,840
683,931
674,482
668,514
850
EQUIPMENT - REPLACEMENT
801,499 801,499
801,499
801,499
801,499
801,4
870
BOOKS AND PUBLICATIONS OVER $5
13,810 13,810
13,810
13,810
13,810
13,810
880
CAPITAL LEASES
1,060,159 1.060,686
1,154,854
1,159,394
1.163,361
1,164,866
TOTAL CAPITAL OUTLAY -VARIABLE
2,639,421 2,629,734
2,697,003
2,676,634
2,671,152
2,666,689
Wednesdav tober 29, 1997 10:49:22 AM Page 12 of 26
J
a
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 GRANTS IN AID
930
AID TO PRIVATE ORGANIZATION
950
CONTRIBUTION TO GRAL FUND
953
CONTRIBUTION TO ENTERPRISE FUN
955
CONTRIBUTION TO DIRECTOR OFFIC
956
CONTRIBUTION TO SPECIAL REVENU
960
CONTRIBUTION TO TRUST & AGENCY
966
CONTRIBUTION TO CHP IMPROV FUN
975
TRANSFER
980
ADVANCES
985
DEPRECIATION
990
OTHER NON -OPERATING
996
BUDGET RESERVE
TOTAL GRANTS IN AID
1,509,954
1,359,600
1,359,600
1,359,600
5,500,000
10,204,916
1,000,000
0
111.600.
111,600
111,600
111,600
-131,064
-131,064
-131.064
-131.064
3,565,501
3,565,501
3,720,644
3,984,892
319.414
11,338,100
-27,236,847
2,522.985
-36,391,210
-19,619,378
4,017,125
-54,492.820
319,414
11,338,100
-27,235,847
2,522,985
-36,391,210
-19,619,378
9,017,125
-44,938,258
0
5,700,000
-28,086,400
2.522,985
-37,300,526
-20,793,243
3,483,792
-88,412,612
0
7,000,000
-28,889,533
2,522,985
-38.196,021
-21,360,871
3,483,792
-70,114,620
1,359,600
1.359,600
0
0
111,600
111.600;
-131,064
-131,064
4,070,694
4,116,215
0
0
7.000,000
7,000,000
-29,753,767
-30,643.928
2,522,985
2,522,985
-38,867,021
-39,268,241
-21,937.658_
3,483,792
----22,527,3
3,483,792
-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 2.506,535
2,640,470
2,767.605
2,800,023
2,813,705
006
EARNED TIME PAYOFF
55,335 55,335
55,335
55,335
55,335
55,33L
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
623,676 647,773
647,773
547,773
547,773
547,773
025
PREVENTION PAY
50,000 42,417
42,417
42,584
42,264
42,264
050
SALARIES - OVERTIME 1 REGULAR
25,480. 25,480
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
16,576 .
074
OFF -DUTY
37,088 37,088
37,088
37,088
37,088
37,088
TOTAL SALARIES & WAGES -FIXED
5,411,846 4,298,824
4,490,782
4,694,101
4,748,418
4,762,159
WednesdT- tober 29, 1997 10:49:24 AM Page 14 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
200 FRINGE BENEFITS -FIXED
072
INCENTIVE PAY
0
603
603
605
600
660
075
CLOTHING - CITY PURCHASE
21,860
21,360
21,360
21,360
21,360
21,360
084
24 HRS CITY VEHICLE
4,341
4,341
4,341
4,341
4,341
4,341 It
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,D96,176
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
926
944
952
142
PLUS ITEM/HAZ MAT 1.5%
1,697
1,697
1,764
1,824
1,839
1,848
146
PLUS ITEM/IAFF SWAT TEAM - 1.5
11596
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
2,066,135 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
300 OPERATING EXPENSES -FIXED
205
LOT CLEARING AND DEMOLITION
20,600
20,600
21,218
21,855
22,511
23,186
280
PROFESSIONAL SERVICES - ACCT'G
4,635
4,635
4,774
4,917
5,065
5,217
287
ADVERTISING
515
515
530
546
562
57
l
310
COURT COSTS AND FEES
515
515
530
546
562
579
410
TRAVEL AND PER DIEM - TRAINING
140,286
140,286
144,494
148,828
153,293
154,514
420
TRAVEL AND PER DIEM - OTHER
7,210
6,180
6,365
6,556
6,753
6,956
470
ENTERTAINMENT
3,399
0
0
0
0
0
495
PARKING EXPENSE
206
206
212
218
225
232
533
POSTAGE
3,193
2,678
2,759
2,842
2,928
3,016
610
RENT OF EQUIPMENT - OUTSIDE
204,797
201,671
207.721
213,952
220,370
226,982
640
INSURANCE - PROPERTY
396,065
396,065
407,950
420,188
432,796
445,779,
710
FOOD
5,463
2,214
2,280
2,348
2,418
2,491
770
INTERNAL SERV CHGES MOTOR POOL
173,664
173.664
178,674
184,240
189,767
195,460
774
INTERNAL SERV CHGES COMMUNIC M
21,630
21,630
22,279
22,946
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 - ober 29, 1997 10:49:26 AM Page 16 of 26
City of Miami
8-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
400 OPERATING EXPENSES -VARIABLE
250
PROFESSIONAL SERVICES - LEGAL
270
PROFESSIONAL SERVICES - OTHER
289
SPECIAL SERVICES - MISCELLANEO
325
OTHER COSTS AND LOSSES
330
TAXES
335
LICENSE, PERMITS & MISCELLANEO
340
OTHER CONTRACTUAL SERVICES - O
510
COMMUNICATIONS SERV. TELEPH. 0
530
TRANSPORTATION
585
RELOCATION
603
DISCOUNT ON BONDS '
670
REPAIRIMAINTENANCE - OUTSIDE
680
PRINTING/BINDING - OUTSIDE
690
PROMOTIONAL ACTIVITIES
}
700
OFFICE SUPPLIES
701
REPAIRS -EQUIPMENT SUPPLIES
702
MOTOR VEHICLE PARTS
Wednesday, October 29, 1997 10:49:27 AM
8,590
8,590
8,848
9,113
39,449
38,934
40,102
41,305
5,150
5,150
5,304
5,463
924
924
952
981
34,584
34,584
35,622
36,691
850
850
876
902
2,230,533
2,206,431
2,272,625
2,340,804
155,216 155,390 160.016 164,785
15,450
30,900
63,046
93,355
2,060
6,427
17,412
3,328
5,150
15,450
15,914
16,391
30,900
31,827
32,782
63,046
64,937
66,885
93,355
96,155
99,040
2,060
2,122
2,186
6,427
6,620
6,819
16,382
16,874
17,380
3,090
3,183
3,278
51150
5,304
5,463
Page 17 of 26
9,386
9,668
42,545
43,822
5,627
5,7961t
1.010
1,040
37,792
38,926
929
957
2,411,028
2,483,359
169,683
174,738
16,883
17,389
33,765
34,778
68,892-
70,95
-
102,012
-
105,072
2,252
2,320
7,024
7,235
17,902
18,439
3,376
3,477
5,627
5,796
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
704
CHEMICALS
8,504
8,504
8,759
9,022
9,293
9,572
705
HOUSEKEEPING / SANITATION SUPP
4,118
4,118
4,242
4,389
4,500
4,635
706
BUILDING MATERIALS AND SUPPLIE
618
618
637
656
676
696
712
HORTICULTURAL SUPPLIES
1,442
1,442
1,485
1,530
1,576
1,62
713
LUBRICANTS AND MOTOR OIL
103
103
106
109
112
115
714
DRUGS AND MEDICINE
117,420.
117,420
120,943
124,571
128,308
132.157
717
PLAYGROUND SUPPLIES
7,416
6,695
6,896
7,103
7,316
7,535
718
PARTS AND MAINTENANCE SUPPLIES
3,902
3,902
4,019.
4,140
4,264
4,392
719
SAFETY SUPPLIES
2,472
2,472
2,546
2,622
2,701
2,782
720
EXPENDABLE TOOLS SHOP SUPPLIES
1,644
1,648
1,697
1,748
1,800
1,854
721
TIRES TUBES
3,090
3,090
3,183
3,278
3,376
3,477
722
MISCELLANEOUS SUPPLIES
73,143
199,559
200,378
201,452
204,828
207,098
727
PROMOTIONAL MATERIALS
3,090
3,090
3,183
3,278
3,376
3,477
760
BOOKS PUBLICATIONS MEMBERSHIPS
9,779
9,161
9,436
91720
10,012
10,313
782
707 BLANKET P 0 ELECTRICAL SUP
5,150
5,150
5,304
5,463
5,627
5,796
783
708 BLANKET P 0 PLUMBING SUPPL
5,150
5,150
5,304
5,463
5,627
5,796
795
INTERDEPMENTAL CHGES -POLICE 1
2,578
2,578
2,655
2,734
2,816,
2,901
Wednesday, sober 29, 1997 10:49:28 AM Page 18 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
TOTAL OPERATING EXPENSES -VARIABLE
2,962,047 3,061,413
3,148,054
3,237,526
3,331,941
3,427,990
500 CAPITAL OUTLAY -VARIABLE
840 EQUIPMENT - NEW
343,850 341,750
341,750
341,750
341,750
341,75
850 EQUIPMENT - REPLACEMENT
13,500 13,500
13,500
13,500
13,500
13,500
880 CAPITAL LEASES
2,000 2,000
2,000
2,000
2,000
2,000
TOTAL CAPITAL OUTLAY -VARIABLE
359,350 357,250
357,250
357,250
357,250
357,250
600 GRANTS IN AID
930 AID TO PRIVATE ORGANIZATION
25,000 25,000
25,000
25,000
25,000
25,000
950 CONTRIBUTION TO GRAL FUND
25,143.617 27,022,552
28,079,182
36,516,768
37,742.078
38,907,206
951 CONTRIBUTION TO DEBT SERVICE
22,910,413 22,910.413
22,905,438
15,579,843
15,556,453
15,598,347
952 CONTRIBUTION TO CAP PROJECTS
3,347.236 3,347,236
3,347,236
3,347,236
3,347.236
3,347,21
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
64,374,856
55,486,847
56,688,767
57.895,789
T 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 10/8/97
FY 1998
FY 1998
FY 1999
FY 2000
FY 2001
FY 2002
Organization
Revised
Year End
Estimated
Estimated
Estimated
Estimated
Budget
Projection
Budget
Budget
Budget
Budget
Fund 20 DEBT SERVICE FUNDS
300 OPERATING EXPENSES -FIXED
280 PROFESSIONAL SERVICES - ACCT'G
4,635
4,635
4,774
4,917
5,065
5,217
287 ADVERTISING
7,502
7,602
7,727
7,959
8,198
8,444
533 POSTAGE
12,320
12,320
12,690
13,071
13,463
13,867
601 PRINCIPAL REPAYMENT
22,596,397
22,596,397
24,166,145
15,896,989
16,554,659
16,838,400
602 INTEREST EXPENSE
25,136,663
25,136,663
23,826,545
21,388.333
20,539,901
20,390,663
610 RENT OF EQUIPMENT - OUTSIDE
3,605
3,605
3,713
3,824
3,939
4,057
TOTAL OPERATING EXPENSES -FIXED
47,761,122
47.761,122
48,021,594
37,315,093
37,125,225
37,260,648
400 OPERATING EXPENSES -VARIABLE
340 OTHER CONTRACTUAL SERVICES - O
510 COMMUNICATIONS SERV. TELEPH. O
700 OFFICE SUPPLIES
TOTAL OPERATING EXPENSES -VARIABLE
U
92,391
92,391
95,163
96,016
100,959
103,988
515
615
530
546
562
579
2,060
2,060
2,122
2,186
2,252
2,320
94,966
94,966
97,815
100,750
103,773
106,887
Wednesday. ^-tpber 29, 1997 10:49:30 AM
Page 20 of 26
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
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
W. -
G.
C'E 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 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
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 231,075 231,075 231,076 231,075 231,075 231,075
200 FRINGE BENEFITS -FIXED
100 SOCIAL SECURITY CONTRIB
16,927
16,927
16,927
16.927
16,927
16,927
110 RETIREMENT CONTRIB.
56,785
56,785
56,785
56,785
56.785
56,785
130 GROUP INSURANCE CONTRIB.
33,065
33,065
33,065
33,065
33,065
33,065
150 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 tober 29, 1997 10:49:31 AM Page 22 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
300 OPERATING EXPENSES -FIXED
280
PROFESSIONAL SERVICES - ACCT'G
7,210
7,210
7,426
7,649
7,878
8,144
287
ADVERTISING
7,210
7,210
7,426
7,649
7,878
8,114
310
COURT COSTS AND FEES
772
772
795
819
844
869
420
TRAVEL AND PER DIEM - OTHER
6,180
6,180
6,365
6,556
6,753
6,956
533
POSTAGE
1,546
1,545
1,591
1,639
1,688
1,739
540
UTILITY'SERVICES - ELECTRICITY
5,150
5,150
5,304
5,463
5,627
5,796
560
UTILITY SERVICES - WATER
2,060
2,060
2,122
2,186
2,252
2,320
610
RENT OF EQUIPMENT - OUTSIDE
7,725
7,725
7,957
8,196
8,442
8,695
620
RENT BUILDINGS
72,512
72,512
74,687
76,928
79,236
81,613
640
INSURANCE - PROPERTY
1,526
1,626
1,572
1,619
1,668
1,718
773
INTERNAL SERV CHGES PRINT SHOP
137
137
141
145
149
15,
i
TOTAL OPERATING EXPENSES -FIXED 112,027 112,027 115,386 118,849 122,415 126.087
Wednesday, October 29, 1997 10:49:32 AM Page 23 of 26
City of Miami
5-Year Expenditure Estimates
by Fund and Minor Object
as of 10/8/97
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
17,389
250
PROFESSIONAL SERVICES - LEGAL
77,250 77,250
79,568
81,965
84,414
86,946
270
PROFESSIONAL SERVICES - OTHER
133,344 30,936
23,080
14,989
6,653
►
475
ENTERTAINMENT
3,090 3,090
3,183
3,278
3,376
3,477
510
COMMUNICATIONS SERV. TELEPH. O
3,605 3,605
3,713
3,824
3,939
4,057
670
REPAIRIMAINTENANCE - OUTSIDE
25,750 25,750
26,522
27,318
28,138
28,982
690
PROMOTIONAL ACTIVITIES
15,450 15,450
15,914
16,391
16,883
15,460
700
OFFICE SUPPLIES
3,090 3,090
3,183
3,278
3,376
3,477
722
MISCELLANEOUS SUPPLIES
3,090 3,090
- 3,183
3,278
3,376
3,477
760
BOOKS PUBLICATIONS MEMBERSHIPS
3,069 3,069
3,161
3,256
3,354
3,455
TOTAL OPERATING EXPENSES -VARIABLE
283,188 180,780
177,421
173,958
170,392
166,72
500 CAPITAL OUTLAY -VARIABLE
840 EQUIPMENT - NEW
841 OFFICE FURNITURE - NEW
TOTAL CAPITAL OUTLAY -VARIABLE
10,000 0 0 0 0 0
15,000 0 0 0 0 0
25,000 0 0 0 0 0
Wednesciv tober 29, 1997 10:49:32 AM Page 24 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
600 TRANSFERS TO OTHER FUNDS
996 BUDGET RESERVE 1,666,731 1,257,303
1,257,303
1,347,303
1,437,303
1,527,303
TOTAL TRANSFERS TO OTHER FUNDS
1,666,731
1,257,363
1,257,303
1,347,303
1.437,303
1.527,303
TRUST & AGENCY FUNDS TOTAL
2,429,139
1.892,303
1,892,303
1,982,303
2,072,303
2,162,303
Wednesday, October 29, 1997 10:49:33 AM Page 25 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
GRAND TOTAL 403,586,156
414,632,765
404,405,986
405,355,649
409,720,205
413,267,971
Wednesda- ctober 29, 1997 10:49:33 AM Page 26 of 26
lwukll!=lm� WK.
PROPERTY
PROJECTED SALES
AMOUNT
STATUS
BOBBY MADURO
$900,000
NOT APPRAISED; ASSESSED VALUE OF LAND
WATSON BUILDING
$200,000
NEGOTIATING W/FEDERAL GENERAL SERVICES ADMINISTRATION
PROPERTY MAINTENANCE BLDG.
$1,000,000
NEGOTIATING W/JACKSON HOSPITAL
48 NW 5TH ST.
$2,436,066
SOLD
FORMER FIRE STATION #14
$367,000
APPRAISED; DIDN'T SELL FIRST ROUND
MANUEL ARTIME CENTER
$600,000
FORMER PARKS ADMIN. BLDG.
$365,000
APPRAISED; DIDN'T SELL FIRST ROUND
$5,868,066
* LESS CONTINGENCY ($63,066)
ADOPTED BUDGET $5,805,000
OTHER LAND SALES
MUNICIPAL JUSTICE BLDG.
$5,710,000
FEC (LESS REMEDIATION COSTS THAN EXPECTED)
$34,000,000
$39, 710, 000
* LESS CONTINGENCY
($306,234)
TOTAL OTHER LAND SALES
$39,403,766
TOTAL PROPERTY SALES..
TOTAL CONTING NitY
{$W, }