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Home My WebLink AboutR-96-0897J-96-1310 12/6/96 RESOLUTION NO) A RESOLUTION CHANGING THE COMPENSATION PROVIDED TO MEMBERS OF THE CIVIL SERVICE BOARD TO $1.00 PER YEAR, EFFECTIVE JANUARY 1, 1997. WHEREAS, City Charter Section 36(L) authorizes the City Commission to determine the salaries of the Civil Service Board members; and WHEREAS, Resolution No. 76-1165, adopted December 16, 1976, established the monthly compensation for Civil Service Board members at $300.00 per month; and WHEREAS, the Strategic Financial Recovery Plan, dated November 15, 1996, recommended the elimination of compensation for all City Board members; NOW, THEREFORE, BE IT RESOLVED BY'THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The compensation provided to members of the Civil Service Board is hereby changed to $1.00 per year, effective January 1, 1997. CITY COMMISSION MEETING OF DEC 1 2 1996 Resolution No. [A -%K Section 2. This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED this 12th day of Decemher 1996. CAROLLO, MAYOR ATT S WALTER.0 CITY CL K PREPARED AND REVIEWED BY: JOSA A. FERNANDEZ ASS STANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: W1319 : BS'S j i i i I �r - 2 - 0 ECONOMIC & MARKETING SERVICES MEMORANDUM To: Commissioner Humberto Hernandez From: Manolo Reyes Subject: City of Miami Projected Deficit Date: December 9, 1996 Following our discussion on the city's financial crisis, I have reviewed and analyzed the Strategic Financial Recovery Plan developed by then acting City Manager Merrett Stierheim, and a group of assessors. According to their projections, the Operating deficit amounts to 68 million dollars for fiscal year 1996-1997. This document identifies the components of the projected deficit and proposes a set of solutions. The Fairness Matrix on section 2 of the document claims that the deficit is composed as - follows: ( in millions of dollars ) Year beginning carryover deficit $19.4 Projected FY 1996-97 revenue shortfall $ 6.8 Projected FY 1996-97 expenditure overruns $12.7 Potential additional revenue shortfall $ 9.4 Potential additional expenditure overruns $ 1.5 Capital Improvement Program shortfalls $ 18.2 Total $ 68.0 To understand the magnitude of the projected deficit we went through the document and analyzed each of the components. I am hereby informing you that we found a series of double counting, and overstatements, that when taken into consideration, substantially reduces the total amount of the deficit. In order to substantiate the above statement we are including the following analysis of the Fairness Matrix components: a) Year beginning carryover $ 19.4 millions --------------------------- This component is self explanatory, it is the compilation of previous years revenue shortfalls, and expenditure overruns. Actually, we do not have the work papers, or the information to verify the stated amount. 5301 SW 7St., Miami, Fla. 33134 • Tel.: (305) 443-0946 Fax: (305) 443-37 /11 9 r b) Projected FY 1996-97 revenue overruns S 6,800,000 According to our analysis of the information provided in the document, there is $ 1,000,000 included as revenue shortfall due to the Bedminster contract, however, this amount must be deducted since Bedminster deposited the above stated amount. Revised projected FY 1996-97 revenue overruns: $ 6,800,000 (1,000,000 ) ------------------ Total S 5,800,000 c) Projected expenditure FY 1996-97 expenditure overruns S 12,700,000 Our analysis of the document reveals that the following projected overruns must be deducted from the total amount: 1) $ 900,000 from solid waste; This amount is also included in Matrix B of the Strategic Financial Recovery Plan- Departmental Expenditure Recommendations. This is a managerial solution and should not be included as a potential problem. 2 ) $ 2,451,776 from Risk Management; This amount is composed of $ 2,000,000 savings from the task force "best practice recommendations", and $ 451,776 difference between the task force cost estimate and the FY 1996-97 adopted Budget Document. 3) $ 400,000 from the Riverside Center operating expenses. 4) $ 1,333,000 from Police Department overtime; This amount is composed of $ 1,000,000, and $333,333 included in Matrix B of the Strategic Financial Recovery Plan -Departmental Expenditure Recommendations. These are managerial decisions that should not be included as potential problems. Revised projected FY 1996-97 expenditure overruns: S 12,700,000 ( 900,000) ( 2,4519776 ) ( 400,000) (1,333,333 ) Total $ 7, 614,891 2 l 96 897 d) Potential additional revenue shortfalls S 9,400,000 Our analysis reveals that this amount should be decreased as follows: 1) S 175,000 from EMS collection included in Matrix C of the Strategic Recovery Plan -Funding Solutions Matrix. This is a managerial decision and should not be included as a potential problem. 2) S 200,000 from an increase in the enforcement of police parking tickets. This amount has been accepted a5 an attainable goal and approved by the administration and should not be included as a potential problem. Revised additional revenue shortfalls: S 9,400,000 ( 175,000 ) ( 200,000 ) Total S 9,025,000 e) Potential additional expenditure overruns S 1,500,000 ---------------------------------------------------------- Our analysis reveals that this amount should be decreased by S 1,000,000 from Special Events since the Commissioners agreed to stop granting funds for special events. Revised potential additional expenditure shortfalls: S 1,500,000 (1,000,000 ) Total S 500,000 f) Capital Improvement Program shortfalls S 18,200,000 Our analysis reveal that the projected shortfall should be reduced by S 3,502,469 due to projects deferral. 3 96 8 Revised Capital Improvement Program shortfalls: $ 18,200,000 (3,502,469 Total $ 14,697,000 According to the above revised totals the projected FY 1996-97 deficit portrayed in the Fairness Matrix is actually reduced as follows: Year beginning carryover deficit $ 19,400,000 Projected FY 1996-97 revenue shortfalls $ 5,800,000 Projected FY 1996-97 expenditure overruns $ 7,614,891 Potential additional revenue shortfalls S 9,025,000 Potential additional expenditure overruns $ 500,000 Capital Improvement Program shortfalls $ 14,697,531 Total FY 1996-97 revised deficit $ 57,037,422 Our analysis further reveals that by implementing the proposed solutions included in the document, the revised deficit will be eliminated and a fund balance of S 17,964,344 will be realized. It is extremely important to stress the fact that our analysis has been based in the only document available at this time, that is, the Strategic Financial Recovery Plan presented to the City of Miami Commission by Merrett Stierheim, which subsequently accepted the recommendations presented in the document. We are including an appendix in which you will find a detailed explanation of our deficit financial reduction analysis and a list of recommendations to be followed upon. Furthermore, I am now in the process of reviewing FY 1998 problems and will update you on a regular basis. Sincerely yours, Manolo Reyes cc: Board of City Commission, City of Miami 4 96- 897 ri CITY OF MIAMI - DEFICIT REDUC . .N PLAN PART i - DEFICIT ANALYSIS DEFICIT A. Year beginning carryover deficit B. Projected FY'96-97 revenue shortfall C. Projected FY'96-97 expenditure shortfall D. Potential revenue shortfall E. Potential expenditure shortfall F. Capital Improvement Program shortfall Total A. Year beginning carryover deficit B. Projected FY'96-97 revenue shortfall Bedminster contract Sub -Total C. Projected FY'96-97 expenditure shortfall Solid waste -disposal costs Risk Management Riverside Police Overtime Sub -Total D. Potential revenue shortfall Emergency Medical Service Police Parking Tickets Sub -Total E. Potential expenditure shortfall Special events, contribution , donation, etc. Sub -Total F. Capital Improvement Program shortfall Projects deferral Sub -Total Total Revised Deficit Difference ' Page 1 $ 19,400,000 6,800,000 12,700,000 9,400,000 1,500,000 18,200,000 $ 68,000,000 $ 19,400,000 $ 6, 800, 000 (1,000,000) $ 518001000 $ 12,700,000 (900, 000) (2,451,776) (400,000) (1,333,333) $ 7,614,891 $ 9,400,000 (176,000) (200,000) $ 9,025,000 $ 1,500,000 (1,000,000) $ 500,000 $ 18,200,000 (3,502,469) $$ 14,697,531 $ 67,037,422 $ (10,962,678) Appendix A 96-897 OF MIAMI . DEFICIT REDUE )N PLAN PART 3 - CITYWIDE EXPENDITURES UNION RELATED REVISED DEFICIT Original Deficit $ 68,000,000 Part 1 - Deficit Analysis (10,962,578) Part 2 - One Time Solutions (29,289,193) Total Revised Deficit S 27,748,229 Citywide Expenditures and Union Related Reductions A. Actions taken/Cost Containment Measures Eliminate all funded vacancies $ 3,579,600 Eliminate 4% cost of living adjustment for non -union employees 670,457 Portal to Portal Fee 200,000 Eliminate benefits for City Board members -Code Change 141,600 Eliminate non -union executive benefits 464,420 Sub -Total $ 5,056,077 B. Union Concessions FOP $ 6,716,400 IAFF 3,000,000 AFSCME 2,088,918 LIUNA 233,500 $ 12,018,818 C. Pension Contribution Adjustments Pension Trusts $ 5,200,000 Total - Citywide Expenditures & Union Related $ 22,274,995 Retraining Deficit $ 6,473,334 Page 9 7 6- 8 9 7 Appendix A CITY OF MIAMI - DEFICIT REDUC N PLAN PART 2 - ONE TIME SOLUTIONS REVISED DEFICIT Original Deficit Part 1 - Deficit Analysis Total Revised Deficit ONE - TIME SOLUTIONS A. Strategic Financial Recovery - Matrix A $ 68,000,000 (10, 962, 578) $ 57,037,422 City light fleet reduction $ 30,000 B. Strategic Financial Recovery - Matrix B Internal Audits - Defer professional services $ 20,000 C. Strategic Financial Recovery - Matrix C Sell Assets $ 10,000,000 Utilize accumulated and available MSEA funds 9,266,193 Receive deposit on sale of motor pool 300,000 Sell two OH-6 Helicopters from Aviation detail 300,000 Hire collection agency to collect delinquent fines 193,000 Receive payment for WASD easement on Virginia Key 150,000 Reimbursement of RFP expenses from Parrot Jungle 30,000 Sub -Total $ 20,239,193 D. Additional funding available as one-time solution MSEA $ 3,000,000 Developer fee for Port Expansion 6,000,000 Sub -Total $ - 9 000 000 Total - One Time Solutions Remaining Deficit $ 29,299,193 $ 27,748,229 Appendix A i VITY OF MIAMI - DEFICIT REDUC ')N PLAN -ART 4 - DEPARTMENTAL EXPENDITURL REDUCTIONS REVISED DEFICIT Original Deficit $ 68,000,000 Part 1 - Deficit Analysis (10,962,578) i Part 2 - One Time Solutions (29,289,193) Part 3 - Citywide Expenditures & Union Related Reductions (22,274,895) Total Revised Deficit $ 5,473,334 Departmental Expenditure Reduction Recommendations A. Department 1 Police $ 4,572,500 2 Public Facilities 541,776 3 Public Works 394,987 4 Neighborhood Enhancement Teams 241,713 y 5 Parks 208,915 6 Law 142,408 7 Finance 133,811 8 Community, Planning & Revitalization 124,925 9 General Services Administration 97,500 10 Fire 87,500 11 Internal Audits 60,115 12 Asset Management 47,432 13 Hearing Board 31,525 14 Human Resources 30,140 15 City Manager 25,042 16 Equal Opportunity 13,876 17 Civil Service 13,327 18 City Cleric 7,400 19 Labor Relations . 3,494 ! Sub -Total 1 $ 6,778,384 i I B. Non -Departmental j Special Programs and Accounts $ 1,157,320 1 Total - Departmental Expenditures Reductions $ 7,936,704 Surplus $ 21462,370 Appendix A Page 4 c6 8 7 AN `,CITY OF MIAMI - DEFICIT REDU ON PLAN rART 5 - REVENUE ENHANCEMENT RECOMMENDATIONS REVISED DEFICIT Original Deficit $ 68,000,000 Part 1 - Deficit Analysis (10,962,578) Part 2 - One Time Solutions (29,289,193) Part 3 - Citywide Expenditures & Union Related Reductions (22,274,895) Part 4 - Departmental Expenditure Reductions (7,935,704) Total Revised Surplus $ 2,462,370 Revenue Enhancement Recommendations A. Department 1 Police $ 1,666,500 2 Neighborhood Enhancement Teams 1,600,000 3 Public Facilities 320,411 4 Building and Zoning 303,813 5 Community, Planning & Revitalization 26,250 6 City Clerk 15,000 Sub -Total $ 31931,974 B. Non -Departmental Various $ 1,570,000 Total - Revenue Enhancement Recommendations $ 6,601,974 Surplus $ 7,964,344 Page 5 Appendix A r )CITY OF MIAMI - DEFICIT REDU ON PLAN SUMMARY REVISED DEFICIT Original Deficit Part 1 - Deficit Analysis Part 2 - One Time Solutions Part 3 - Citywide Expenditures & Union Related Reductions Part 4 - Departmental Expenditure Reductions Part 5 - Revenue Enhancements Total Revised Surplus Other Issues A. Federal Crime Bill Crime Block Grant B. Revenue Sweeps Licenses and Fees C. Fund Balance General Fund Balance Total - Other Issues Surplus $ 68,000,000 (10,962,578) (29,289,193) (22,274,895) (7,935,704) (5,501,974) $ 7,964,344 $ $ $ 3,000,000 2,000,000 5,000,000 $ 10,000,000 $ 17,964,3" 96 - 897 Appendix A r 0 CITY OF MIAMI -DEFICIT REDO ;ON PLAIN Appendix A Recommendations 1 Review all Departmental Budgets by line item 2 Review and renegotiate the Port Deal 3 Seek to remove all subsidies for Public Facilities 4 Independent Experts to oversee Health Costs 5 Independent Experts to oversee Pension Costs 6 Review Risk Management Function 7 Review $10 Million CDBG Loan Program 8 Develop Task Force on Delinquent Property Taxes 9 Seek to privatize Fleet Management 10 Seek to privatize Heavy Equipment Management 11 Review Street Cleaning Fee for implementation 12 Review Solid Waste Operation 13 Plan for Zero Base Budgeting for FY'98 14 Prepare 3-5 Year Financial Recovery Plan 15 Review all Capital Improvement Projects . 16 Prepare Federal Funding package for recovery 17 Monthly Financial Reports to City Commission 18 Proritize Revenue Audits A Exhibit A Item Revenues Savings Total IN= Onetime Recurring 10 M- M -1 I Savings from Capital Improvement Projects and Self Insurance Bonds (A) 1,200,000 1,200,000 2 Bedminster Payment 1,000,000 1,000,000 3 Self Insurance "Best Practices" Claims Management (B) 1,000,000 1,000,000 4 Law Enforcement Block Grant 3,000,000 3,000,000 5 Special Events, Contributions, Donations, Etc. 1,000,000 1,000,000 6 COPS MORE Technology Grant (Pending) 3,000,000 3,000,000 7 COPS Funding Match Savings 1,000,000 1,000,000 8 Pension Concessions 5,300,000 5,300,000 Union Concessions 12,018,818 12,018,818 10 Management Policies already in place (C) 5,068,477 5,068,477 11 Departmental Savings (D) 10,202,324 10,202,324 12 MSEA Grant (E) 12,600,000 12,600,000 13 Other Revenues (F) 973,000 4,337,001 5,310,001 14 Fire Inspection Fee 970,000 970,000 15 Forfeiture Fines 2,000,000_ 2,000,000 16 Additional 50 Officers covered by COPS Base Funding (Pending) 2,200,000 2,200,000 17 Pawn Shop Fee 262,500 262,500 18 Police Department Savings_ 1,000,000 1,000,000 19 Collections on OUCU and Solid Waste Fees (G) 3,000,000 3,000,000 20 Long term Contract ( 2,3 or 5 years) for Phone Service (H) 28,769 28,769 rt Total 17,573,000 15,769,501 37,818,388 71,160,889 --lTotal Recurring Revenues/Savings 97-98 (includes E, G, & H) 15,869,501 37,827,978 53,697,479 (A) Page 178 Budget Book FY 96-97 (B) F-3 Merreft Stierheirn Report (C) Assume $144 K in savings eliminating stipend and health insurance for all City Board Members. Assume $22 K savings on health insurance deductible (D) Retaining capability to fund 13 NET offices: includes $125 K add back to International Trade Board: (E) MSEA recurring grant $600,000. (F) (G) See Attachment B Second year revenues conservative projection: $2.5 M 96-897 (H) Next full year savings conservative projection: $38,359 Note: Amounts to be deducted from above totals if North and South stations remain open: 191,167 for remaining FY 97 and 207,000 for FY 98. W Recurring 1 Building and Zoning (Fees, etc.) 303,840 2 Conferences, Conventions & Public Facilities (Fees, etc.) 320,411 3 Clerk's Office (Fees) 15,000 4 Community Planning & Revitalization (Fees) 26,250 5 Police (Fees, etc.) 1,866,500 6 Reprogrammed CDBG 1,600,000 7 Sale of Surplus Vehicles 30,000 8 EMS Collections 175,000 Total 4,337,001 nnP Time 8 Receipt of Proceeds from Past Sale of Motor Pool 300,000 9 Receive payment for WASD easement on Virginia Key 150,000 10 Sale of Police Helicopters 300,000 11 Delinquent Police Collections 193,000 12 Parrot Jungle Reimbursement for RFP 30,000 Total 973,000 S �R Grand Total 5,310.001 Revenues Savings Total $ 33,342,501 $ 37,818,388 $71,160,889 One Time Revenues Recurring Revenues/Savings Total $ 71,160,889 $ 17,573,000 $ 53,587,889 L