HomeMy WebLinkAboutItem #33 - Discussion ItemCITY CF MIAMI. FLORIOA
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Howard Gary
City Manager
Joe Carollo
Vice -Mayor
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at' 02-16-8 FILE
Discussion Item for next Commission
Meeting
Please include on the next agenda a discussion item regarding the
surplus in the city budget from fiscal year 180 - 181.
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Mayor and Members of the February 12, 1982 ='�=
City Commission
--- = Status of Preliminary
FY'81 Fund Balance
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Howard V. Gary -
City Manager
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Attached is a preliminary fund balance status report indicating the fund
balance of $6.4 million for the fiscal year ending September 30, 1981.
However, this fund balance has to be adjusted as follows to determine the
fund balance available for reuse:
1. We must deduct the $3.2 million which has already been appropriated as
a revenue item in the fiscal year 1982 budget.
2. Then we must also deduct an additional $1.7 million for waste disposal
fees, which we received in fiscal year 1981, but is really revenue for
fiscal year 1982. This adjustment is necessary to meet acceptable
auditing standards.
The net effect of these adjustments of $4.9 million will result in an
available fund balance of $1.5 million for FY'81. I will be recommending
to you that $1.1 million of this $1.5 million fund balance be used to
offset the additional cost of the salary increases negotiated with the
unions in FY'82. Once this action is taken, the available fund balance
will be $400,000.
There are two major reasons for the additional $1.5 million fund balance:
1. The hiring freeze and early budget reductions implemented in FY'81
generated more salary savings than anticipated.
2. The interest on our investments was significantly higher than we —
anticipated.
The City Commission should be proud of this fund balance; it shows this
community and the financial community that the City is not in financial _
trouble. Furthermore, it demonstrates that the City Commission and the
Administration has handled the taxpayers' money in a responsible and
prudent manner.
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STATUS OF FUND BALANCE
FISCAL YEAR ENDING SEPTEMBER 30, 1981
(millions)
Preliminary Fund Balance $6.4
Less: (1) Fund balance
appropriated in FY'82 (3.2)
(2) Adjustment for waste disposal
fees anticipated in FY'82, but
collected and accrued in FY'81 (1.7)
Unallocated fund balance $1.5
Less: (1) Funds needed to cover additional
cost of Union negotiated salary
increases
Remaining fund balance $ .4