HomeMy WebLinkAboutM-81-0844TO: Howard V. Gary
City Manager
E
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
DATE: October 6, 1981 FILE:
SUBJECT: Dinner Key Marina
Financial Analysis, Propoeed
Alternatives
Cesar Odio/r
FROM: Assistant City Manager REFERENCES:
ENCLOSURES:
Attached for your review and information is a supplementary fi-
nancial analysis of Dinner Key Marina for FY 80-81, prepared by
the Department of Management and Budget, which includes updated
information. The recommended and the viable solutions to the
$869915 shortfall presented in the analysis are as follows:
ALTERNATIVE
A. Transfer fund balance
from Miamarina
B. Reschedule funding of
Dockhouse renovation
to FY 81-82
C. Fund Dockhouse renov-
ation from Bond
proceeds
ALTERNATIVE A
During FY 80-81 an ordinance was passed to transfer $190,600 from
Dinner Key Marina Retained Earnings to Miamarina Retained Earn-
ings. This was done on an emergency basis to repair a collapsed
pier at Miamarina. The actual cost of the repair was signifi-
cantly less then anticipated, resulting in a $99,889 surplus in
Miamarina detained Earnings.
The proposed transfer of this surplus back to Dinner Key Marina
would, therefore, virtually eliminate any balance at Miamarina in
FY 80-81 and pay back a portion of the initial "loan" from Dinner
Key.
2
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Howard V. Gary ��� Ootober 6, 1981
ALTERNATIVE B
The actual dockhouse renovation work is not scheduled to begin
until sometime in FY 81-82. This is due to the transfer of the
management function to private enterprise, which delayed the se-
lection of the architect and the commencement of the work.
However, the funds for said renovation were appropriated in the FY
80-81 budget.
By further delaying this project, thereby eliminating the $300,000
cost of the renovation in FY 80-81, Dinner Key Marina will show a
surplus. Accordingly, FY 81-82 projected surplus will be reduced
by the $86,915 shortfall.
This alternative would affect the feasibility of the proposed
revenue bond sale. In addition, due to inflationary trends, the
delay of the renovation will compound the already escalating
costs.
ALTERNATIVE C
Alternative C is to delay the renovation of the dockhouse until
such time as the bonds are sold and pay for the renovation out of
the proceeds. This alternative could delay this project for a
significant length of time, again compounding the escalating
costs.
The expectations at this time, based on the increased dockage
rates, are to upgrade the shower and restroom facilities to at
least meet minimal standards. These facilites, along with the
scheduled addition of a coin laundry and vending machines have
been critically needed for some at Dinner Key Marina.
In summary, the available alternatives and their respective
consequences lead to only one logical conclusion, Alternative A is
the most viable option to choose at this time.
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Howard V. Gary
City Manager
FROM
Manohar S. Suran rector
Department of Man t and Budget
DATE: September 24, 1981 FILE: MEM01CC
SUBJECT: SUPPLEMENT - Financial Analysis
of Dinner Key Marina
Fiscal Year 1981
REFERENCES:
ENCLOSURES:
A further analysis of the financial condition of the Dinner Key Marina opera-
tions for FY181 is presented in three parts: Part I - City of Miami/Biscayne
Recreation Development Company, October 1, 1980 to September 30, 1981;
Part II - City of Miami, October 1, 1980 to September 30, 1981; and Part III -
Biscayne Recreation Development Company, January 16, 1981 to September 30, 1981.
I. CITY OF MIAMI/BISCAYNE RECREATION DEVELOPMENT COMPANY
October 1, 1980 to September 30, 1981.
An analysis of the Dinner Key Marina operations indicates that there will be a
decrease in revenues of approximately $97,000, while expenditures will be less
than appropriations by $10,000 for a net shortfall of $87,000.
Modified
Projected
REVENUES
Budget
9-30-81
Difference
Dockage
$ 652,459
$ 672*332
$ 19,873
Retained Earnings
Other
300,000
182,918
(1179082)
Total
94,482
$17046,941
94,482
949,732
-0-
97 209)
EXPENDITURES
Personnel Services
Operating Expenses
$ 267,626
489,295
$ 263,519
456,650
$ ( 4,107)
( 32,645
Capital Outlay
290,020
316,478
26,458
Total
Tit ,,,
_ )
SURPLUS/(SHORTFALL)
$ -0-
$ 86,915)
$ 86,915)
't3.t
Howard V. Gary
Page 2
3 = September 24, 1981
eft ky
These projections are based on the following assumptions:
1.
Operating expenses incurred by Biscayne Recreation Development
for August and September will not exceed an average of
$47,700 per month.
2. Dockage revenues for August and September will be maintained
at the average of $72,600 per month.
With regard to the projected revenues, the $949,732 represents a decrease of
$97,209 from the modified budget of $1,046,941. The major factors contributing
to this decrease are as follows:
A. Increased operating revenues from dockage $ 19,873
B. Decrease in available retained earnings $(117 082)
Net decrease $ (97,209)
With regard to projected expenditures, the $1,036,647 represents a decrease of
$10,294 from the modified budget of $1,046,941. The major factors contributing
to the decrease are as follows:
A. Savings from the operation are expected to be:
1. Unspent funds for the Dinghy Dock repairs $ 42,900
2. Savings on fixed costs associated with City
operations of the Marina. 71,805
3. Savings on other line items
332292
Total Savings
$1472997
B. These savings will be used to offset the following
increases in expenditures:
1. Increase in electricity and water costs
629703
2. Increase in cost estimate for construction,-.
of Dock Office
75,000
Total Increase
$137,703
Net Decrease
$ 10,294
Y fry L
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4
Howard V. Cary
Page 3
September 24, 1981
II. CITY OF MIAMI
October 1, 1980 to September 30, 1981
Based on actual revenues and expenditures for the period October 1, 1980 to
July 30, 1981 and a projection for August and September, it is projected that
revenues will be decreased by $51,031 while expenditures will be $19,719 more
than the prorated amount (Modified Budget, 3/31/81) for a net shortfall of
70,750. This would increase the overall budgeted shortfall from $92,350 to
163,100.
Actual
Projected
•
Prorated
10-1-80 to
1-16- 81 to
Budget
1-15-81
9-30-81
Total
Difference
REVENUES
Dockage
$ 92,459
$158,510
$ -0-
$ 158,510
$ 66,051
R/E
300,000
-0-
182,918
182,918
(117,082)
Other
Total
94 482
15,128
$173,6T8
79,354
T-262v272
94,482
$ 435,910
-0-
51 031)
EXPENDITURES
Personnel Svcs.
$131,840
$113,482
$ 43,037
$ 156,519
$ 24,679
Op. Expenses
157,431
113,107
12,906
126,013
(31,418)
Cap. Imp.
Total
290,020,
$579,291
5,000
$231,589
311,478
367,421
316,478
599,010
26,458
19,719
SURPLUS/(SHORTFALL) $ 92 350) $ 57 951) $(105 149) $ 163,100) $( 70 750)
This projection is based on the assumption that the amount of funding for the
construction of the Dock Office has been increased from $225,000 to $300,000 and
will be encumbered during the current fiscal year.
With regard to the projected shortfall it should be noted that:
1. Although the City operated the marina for only 3.5 months, it incurred
$25,885 in pension contributions for the previous year's operations.
2. For the period, 10/1/80 to 1/15/81, utility charges exceeded the pro-
rated appropriation by $10,128.
3. Original amount of $300,000 available for fund carryover has been reduced
by $117,082.
In summary, had it not been for the increased construction costs of $75,000,
the shortfall of $163,100 would be reduced to $88,100.
Howard V. Gary
Page 4
September 24, 1981
III. BISCAYNE RECREATION DEVELOPMENT COMPANY
January 16, 1981 to September 30, 1981.
A. Based on actual operating revenues and expenditures for the period
January 16, 1981 to July 31, 1981 and a projection for August and September
based on the previous months findings, it is projected that there will be a
shortfall in revenues of $46,000, while expenditures will be $30,000 less
than the amount approved by the City Manager. The operating surplus is
projected to be $16,000 less than the amount approved.
Approved Projected
Budget 9-30-81 Difference
REVENUES $560,000 $513,822 $(46,178)
EXPENDITURES 467,650 437,637 30 013)
SURPLUS/(SHORTFALL) 92,350 76,185 16 165)
These projections are based on the following assumptions:
1. There will be no extraordinary expenses or major repairs
of a capital nature during August and September.
2. Normal operating expenses will remain at the average of
$47,700 per month.
3. Revenues will be maintained at the conservative estimate
of $72,600 per month.
Since revenues were originally projected to be higher than the approved amount
of $560,000, a follow-up analysis will be performed.
B. In the event that the entire budgeted amount is expended, then the opera-
ting surplus would be reduced from $76,185 to $46,172.
cc: Cesar Odio, Assistant City Manager 3xf
Carla Bernabei, Assistant Director of Finance
Peter Liu, Senior Management Analyst 'IN
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