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HomeMy WebLinkAboutExhibit CATKINS Mrs. Marie "Maggie" Gouin Director Office of Management and Budget Miami Riverside Center 444 SW 2nd Avenue, 5th Floor Miami, FL 33130 Atkins North America, Inc. 2001 Northwest 107th Avenue Miami, Florida 33172-2507 Telephone: +1.305.592.7275 wvvw.atkinsgiobal.com/northamerica February 17, 2022 Reference: Loss of Revenue Analysis — City of Miami — ARPA (SLFRF) Recommendation for Loss of Revenue under ARPA (SLFRF) Project Name: ARPA Grant Oversight, Management Proposed Funds Amount: $69,659,199 Proposed Use of Funds: Loss of Revenue Mrs. Gouin, In pursuant to the Department of Treasury's guidance on the of loss of revenue under (ARPA), and calculation thereof, we are providing this summary to detail Atkin's review of the City of Miami's loss of revenue calculation in the amount of $69,659,199, for the fiscal year ended September 30, 2020. According to the Department of Treasury's final rule, recipients may use payments from the Fiscal Recovery Funds for the provision of government services to the extent of the reduction in revenue experienced due to the COVID-19 public health emergency. Pursuant to sections 602(c)(1)(C) and 603(c)(1)(C) of the Act, a recipient's reduction in revenue is measured relative to the revenue collected in the most recent full fiscal year prior to the emergency. The Department of Treasury's final rule offers a standard allowance for revenue loss of $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation. The City of Miami's has used the full revenue loss calculation for the fiscal year ended September 30, 2020. The components used in the calculation include base year revenue, growth adjustment rate, and actual revenue for a given period. Base year revenue is defined as the most recent full fiscal year prior to the public health emergency (i.e., last full fiscal year before January 27, 2020). For purposes of measuring revenue growth, recipients may use a growth adjustment of either 4.1 percent per year or the recipient's average annual revenue growth over the three full fiscal years prior to the COVID-19 public health emergency, whichever is higher. In determining the loss of revenue, the average annual growth rate over the past three fiscal years was calculated to be 7.2 percent and was applied to the base year revenue Page 1 of 2 ATKINS (Fiscal year ended September 30, 2019), to come up with counterfactual revenue. Actual revenue, as of September 30, 2020, was then subtracted from counterfactual revenue, to determine the loss of revenue for the fiscal year ended September 30, 2020. Atkins has reviewed the components of general revenue, which have been included in the calculation of loss of revenue, and all revenue lines items included are in accordance with Treasury's guidance. General revenue, as defined by the Treasury's Interim Final Rule, was utilized throughout the calculation in determining the base year revenue, actual revenue, and the three preceding fiscal years revenue. In accordance with the Interim Final Rule, general revenue is defined as money that is received from tax revenue, current charges, and miscellaneous general revenue, excluding refunds and other correcting transactions, proceeds from issuance of debt or the sale of investments, agency or private trust transactions, and intergovernmental transfers from the Federal Government, including transfers made pursuant to section 9901 of the American Rescue Plan Act. As part of this analysis, Atkins reviewed the City of Miami's Comprehensive Annual Financial Reports, for the years included in the calculation, to determine that the revenue utilized in the calculation, agreed to the revenue reported in the City of Miami's annual reports. The following revenue streams, as reported by the City of Miami, were excluded from revenue as part of the calculation of general revenue. • 431000 - Federal Grants - 31 CFR Part 35 — Interim Final Rule excludes intergovernmental transfers from the Federal Government including "Federal grants" from the calculation of general revenue. • 436900 - State Pension Payment - 31 CFR Part 35 — Interim Final Rule definition of general revenue within the Census Bureau Classification Structure of revenue excludes Social Insurance Trust Revenue including "Public Employee Retirement Systems" from the calculation of general revenue. • 438011 - Shared Revenues from Other Local -Federal - 31 CFR Part 35 — Interim Final Rule excludes intergovernmental transfers from the Federal Government from the calculation of general revenue. The following revenue streams were also excluded from the calculation of general revenue per the City of Miami's request. • 469000 - Miscellaneous Other Revenues • 469300 - Miscellaneous Settlements • 489000 - Other Nonoperating Sources • 489900 - Other Nonoperating Sources/Carryover • 489910 - Other Carryover Budget After review of the Treasury's loss of revenue guidance under (ARPA) SLFRF and information/documentation provided by the City of Miami, Atkin's supports the City's loss of revenue calculation, in the amount of $69,659,199, for the fiscal year ended September 30, 2020. Page 2 of 2 ATKINS Mrs. Marie "Maggie" Gouin Director Office of Management and Budget Miami Riverside Center 444 SW 2nd Avenue, 5th Floor Miami, FL 33130 Atkins North America, Inc. 800 Waterford way, Suite 700 Miami, Florida 33126 %-+1.305.592.7275 July 15, 2022 Reference: Loss of Revenue Analysis — City of Miami — ARPA (SLFRF) Recommendation for Loss of Revenue under ARPA (SLFRF) Project Name: ARPA Grant Oversight, Management Proposed Funds Amount: $93,989,727 Proposed Use of Funds: Loss of Revenue Mrs. Gouin, In pursuant to the Department of Treasury's guidance on the of loss of revenue under (ARPA), and calculation thereof, we are providing this summary to detail Atkin's review of the City of Miami's loss of revenue calculation in the amount of $93,989,727, for the fiscal year ended September 30, 2021. According to the Department of Treasury's final rule, recipients may use payments from the Fiscal Recovery Funds for the provision of government services to the extent of the reduction in revenue experienced due to the COVID-19 public health emergency. Pursuant to sections 602(c)(1)(C) and 603(c)(1)(C) of the Act, a recipient's reduction in revenue is measured relative to the revenue collected in the most recent full fiscal year prior to the emergency. The Department of Treasury's final rule offers a standard allowance for revenue loss of $10 million, allowing recipients to select between a standard amount of revenue loss or complete a full revenue loss calculation. The City of Miami's has used the full revenue loss calculation for the fiscal year ended September 30, 2021. The components used in the calculation include base year revenue, growth adjustment rate, and actual revenue for a given period. Base year revenue is defined as the most recent full fiscal year prior to the public health emergency (i.e., last full fiscal year before January 27, 2020). For purposes of measuring revenue growth, recipients may use a growth adjustment of either 4.1 percent per year or the recipient's average annual revenue growth over the three full fiscal years prior to the COVID-19 public health emergency, whichever is higher. In determining the loss of revenue, the average annual growth rate over the past three fiscal years prior to 2020 was calculated to be 7.2 percent and was applied to the base Page 1 of 2 ATKINS year revenue (Fiscal year ended September 30, 2019), for 2 years to come up with counterfactual revenue for September 30, 2021. Actual revenue, as of September 30, 2021, was then subtracted from counterfactual revenue, to determine the loss of revenue for the fiscal year ended September 30, 2021. Atkins has reviewed the components of general revenue, which have been included in the calculation of loss of revenue, and all revenue lines items included are in accordance with Treasury's guidance. General revenue, as defined by the Treasury's Interim Final Rule, was utilized throughout the calculation in determining the base year revenue, actual revenue, and the three preceding fiscal years revenue. In accordance with the Interim Final Rule, general revenue is defined as money that is received from tax revenue, current charges, and miscellaneous general revenue, excluding refunds and other correcting transactions, proceeds from issuance of debt or the sale of investments, agency or private trust transactions, and intergovernmental transfers from the Federal Government, including transfers made pursuant to section 9901 of the American Rescue Plan Act. As part of this analysis, Atkins reviewed the City of Miami's Comprehensive Annual Financial Reports, for the years included in the calculation, to determine that the revenue utilized in the calculation, agreed to the revenue reported in the City of Miami's annual reports. The following revenue streams, as reported by the City of Miami, were excluded from revenue as part of the calculation of general revenue. • 431000 - Federal Grants - 31 CFR Part 35 — Interim Final Rule excludes intergovernmental transfers from the Federal Government including "Federal grants" from the calculation of general revenue. • 436900 - State Pension Payment - 31 CFR Part 35 — Interim Final Rule definition of general revenue within the Census Bureau Classification Structure of revenue excludes Social Insurance Trust Revenue including "Public Employee Retirement Systems" from the calculation of general revenue. • 438011 - Shared Revenues from Other Local -Federal - 31 CFR Part 35 — Interim Final Rule excludes intergovernmental transfers from the Federal Government from the calculation of general revenue. The following revenue streams were also excluded from the calculation of general revenue per the City of Miami's request. • 469000 - Miscellaneous Other Revenues • 469300 - Miscellaneous Settlements • 489000 - Other Nonoperating Sources • 489900 - Other Nonoperating Sources/Carryover • 489910 - Other Carryover Budget After review of the Treasury's loss of revenue guidance under (ARPA) SLFRF and information/documentation provided by the City of Miami, Atkin's supports the city's loss of revenue calculation, in the amount of $93,989,727, for the fiscal year ended September 30, 2021. Page 2 of 2