HomeMy WebLinkAboutItem #34 - Discussion ItemAttached is an updated budget projection for fiscal year 1982 prepared by the
Department of Management and Budget, which shows a $10.3 million shortfall,
This shortfall takes into consideration the policy expressed by the City
Commission at its April 23, 1981 meeting that 186 police officer positions be
added in FY '82. The cost of this action is $5.6 million: Without the 186
additional positions, the shortfall would be $4.7 million. Similarly, a
shortfall of $10.3 million would require a reduction of 505 positions from
departments other than Police and Fire, while a shortfall of $4.7 million
would only require the reduction of 270 positions.
The City's current work force (excluding CETA) is 3,396. Of this number,
1,787 or 530z� represents Police and Fire employees. The other 1,609 or 47%
represents all remaining departments. If the City Commission continues its
policy not to cut Police and Fire, then the $10.3 million shortfall will
probably have to be absorbed by the remaining departments. To illustrate the
significance of this action on the remainder of the City, a reduction of 505
positions from the targeted work force of 1,609 represents a cut of 31%. In
dollar terms, this means that all departments except Police and Fire will have
to reduce their budgets by 2
In order to fulfill the City Commission policy that the current budget be
reduced in sufficient amounts to begin the next fiscal year budget with a
balanced budget, the annual base of the current budget must be reduced by $8.2
million (400 positions) by July 1, 1981. This action will save S2.1 million
this fiscal year and S8.2 million next fiscal year.
It should be noted that the aforementioned projected shortfalls assumes that
union -negotiated salary increases for fiscal year 1982 will not exceed 10"
or S6 million. If this assumption does not hold true, that is, if unions
ask for more than 10", the shortfall and the number of employees to be laid
off will increase. For every percentage increase, in salaries under
negotiation, the shortfall will increase by $600,000 and the number of layoffs
will increase by 33.
I would like to reiterate my recommendation of May 15, 1981 that the City not
increase the number of sworn personnel in the Police Department by the use of
General Fund monies. It is suggested that proposed increases be accomplished
by establishing special police taxing districts.
s �
My r°easohs for ree6mmt hding this
policy a,re
as followsa The City of Miami
wa§
established as a full -service city with
all of the functions normally
provided by fuliservice cities.
Since the
establishment of Miami as a
full
service City, the City has
relinquished
some of its full service
Pes ponsibilities
to Dade County
such as the
libraries, public welfare,
publicity,
tax collection, water
and sewers
and the ports. The remaining
non
Police and Fire services of
the City are
constantly being dwindled
due
to inflation, cost of labor
and materials,
expectations of the citiehry,
and
the 10 mill limitation on ad
valorem taxes.
To continue to add sworn police officers at the expense of other services,
particularly when there is another alternative, will in effect continue to
erode our position as a full -service City and thereby fall far short of
citizen expectations. This problem was raised recently by the bond rating
companies at a meeting I had with them last month. Their concern is that
the City is putting itself in a posture of not addressing the problems and
needs of a growing metropolis.
Internal Audit
87,898
40,057
_____Convention Bureau
47, 632
21,707
_B_ujl d_i ng and Zoning Ins.
530,462
241,741
_City Cl erk
104,677
47,703
_Civil Service
33,840
15,421
---Community Development
167,095
76,148
__,Computers & Communications
348,058
158,616
Finance
616,918
281,140
Fire
Human Resources
355,576
162,042
Law
224,078
102,116
Leisure Services
663,158
302,213
-Management & Budget
243,O86
112,957
Parks_
1,017,673
463,772
Planning
138,613
63,168
Planning & Zoning Boards
42,105
19,188
Police
-
Public Works
1,486,854
677,585
Solid Waste
3,284,478
1,496,794
Trade & Commerce Developcient
103,824
47,314
ENTERPRISE FUNDS
Coconut Grove Exhbit. Center
118,717
54,101
Municipal Auditorium
87,006
40,561
Marine Stadium
32�987
15,033
Miami Stadium
137,536
62,678
TOTAL
$10,322,675
$4,704,122
POUTION REOUCtIONS
OUW
� bdLE1�
PROALM
AL llhl�
(10.3 Million)
2
1
4
, _,Manager:
..._...Office of the City ?tanager
7
4
Office of Info. & Visitor
6
2
Audit
4
2 _
___ -Convention Bureau
2
1
�,�uilding and Zoning Ins.
18
_
7
City Clerk
6
2
Civil Service
1
.Community Development
200-iF)
10(MF)
___...Computers & Communications
15
7
Finance
33
15
Fire
Human Resources
14
6
Law
8
4
Leisure Services -
46(16PT)
31(16PT)
Management & Budget
10
5
Parks
38
16
Planning
7
3
Planning & Zoning Boards
2
1
Police
Public Works
67
36
Solid Waste
181
106
Trade & Commerce Development
1
1
ENTERPRISE FUNDS
Coconut Grove Exhbit. Center
4.5
2.5
Munici pal Audi turiurn
4.5
2.5
Marine Stadium
Miami Stadium
4
3
TOTAL
505
270
The estiffiated tarry -over Fund balahce for PY 181 will he i ►
., The assumption for Property Taxes is that the City will receive 8%'m6r e
ih property taxes than it received in FY '81 plus new tohSt Ntt16h,
3, This is based on a millage rate of 9.101 which will aeherate
$98,5974052 or 15,503,284 more than the FY '81 Adopted Budget,
4, Homestead Exemptions will not be funded.
S. $3,500,000 will be transferred to the Aeneral Fund from FP&L Ptanchi"se
Capital Improvement Revenues.
6, Federal Revenue Sharina will be funded at approximately 58,5005000.
7. No Countercyclical Revenue Sharing has been anticipated in FY 182�
8. The waste disposal fee charged to City residents will be S75. This
will aenerate $7,000,000 in revenue.
9. Fees paid to Dade County for disposing of the city's solid waste will
increase by 5274,000 (from 53,799,000 to 54,073,000),
10, Workers' Compensation, r;roup Insurance, and Li abi l ity Insurance Will
increase by S2,083,510 or 31%.
11. Provisions have been made for ?17.0 million in Pension costs; which is
5% ($808,604) greater than the current year's appropriation.
12. FICA costs will increase by 10%.
13. Funds have been provided for a 10% union -negotiated salary increase for
fire, Police and qeneral employees which total $6,014,875. Funds have
been provided for a 61Y salary increase for SEA members which total
_$414,335.
14. Street Lightinq costs will increase by g973,n00 or 25%.
15. The deficits for the Enterprise funds for FY '8? will be $832,077 an
increase of $161,284).
16. The contribution to the Department of Buildinq and Vehicle Maintenance'
will be $2,683,074 higher than the current year's Adopted Budget.
17.- All non-oavroll items are adjusted to reflect anticipated increases.
ATTAMNT 9
� 6
. 1 MNE
f4edified Budget
Budget Estimatd
REVENUES $12 ,075,193
$12957W$ 846
$ 6,828,553
APPROPRIATIONS 12 .3, 075,1g
140, .026 521
lq 675
SWBRfi
Fall_.._ _�6y_ __,..,
__,.10.,22,,,675
.322.
It. SUMMAIf___OF_ kCVFNU
Gains
$11,2599089
Losses 4, Wj 36)
Gain
µ6, 62.8, 65.3
Ga �r�s
1.
Property Taxes
$ 5,503,284
2.
Utility Service Taxes
2,139,417
3.
Waste Disposal Fees
9770500
4.
Dinner Key
758,218
5.
Miamarina
585,830
6.
Building Permits
280,150
7.
Franchise Taxes
141,033
8.
Marine Stadium
100,000
9.
Electrical Inspections
91,218
10.
Public Hearing Fees
85,000
11.
Plumbing Permits
80,609
12.
Auto Pound Fees
73,500
13.
State Revenue Sharing
66,906
14.
Watson Island
57,768
15.
Energy Code Fees
55,000
16.
Other
$ 263,656
TotalGains
$1102591089
Losses
1.
Carryover Fund Balance
$ (1,526,948)
2.
Homestead Exemption
(1,067,069)
3.
Cost Allocation Plan
(636,393)
4.
Interest - Interama
(500,000)
5.
Metro Dade County Courts
(200,000)
6.
County Occupational Licenses
(111,406)
7.
Dade County School Board
(100,000)
8.
Interest on Investments
(100,000)
9.
Unclaimed Monies
( 98,000)
10.
Community Development
( 69,211)
11.
Other
$ 221 409
Total Losses
S (4,630,436)
Net Revenue Gain
$ 6,628,653
AfifHiraf �
U�fif�IA Y b + 182 BUOUT
EST! l % (ONT'�i
I i. A�p��PRiAfi t�r� � (JCRCA��B
Salaries and Wages
Other Pay
Operating Expenses
2,i1,8b
08,131,46,�
Capital Expenses
186 Additional Police Offiters
bepartt,lental Reductions
Solid Waste
( 343,207)
Parks
( 232,664)
Leisure
Management and Budget
99,384
( 93,960)
Computers & Communication
M348)
Planning73,E
Community Development
1, 21.8, 449 )
$16 JSIi 328
Increase in Appropriations
$10322,675
IV. SHORTFALL
_-
ATTAC '.
WIMARY OF APPROPRIATION
INCREASES
FISCAL YEAR 1982
i
1. Salaries and Wage
11. Other Pay
1) Pension
$ 7721444
2) Self Insurance
1 543, 533
3) FICA, Overtire, Hol iday Pays etc ,
m .4t;6,1: 3
$ 20821105
III. Operating Expenses:
1) Building and Vehicle Maintenance
$2t683o074
2) Public Safety Fund
(2,000,000)
3) Capital Outlay
(508,133)
4) Street Lighting
973,000
5) Scale Fees
274,000
6) Computer Repairs and Maintenance
and Telephone
321,539
7) Self Insurance
539,977
8) Utilities
1310926
9) Severance Pay
148,616
10) Election
112,000
11) Enterprise Fund Deficit
161,284
12) Other
(5,823)
13) Fiscal Year 1981 Encumbrances
,� 10220,591)
$ 11610 869
Departmental Reductions
( 1,213,449)
186 Additional Police Officers
Total
5,618 553
16,951,328
t1TY 6F MIAM1
AUDAFT PROCESS S W bitL
FISCAL- Y€AR 102
PUALIC H�AAINOS;)
Dates
Worki�ig0ays 90006 of Actiyitiet
1)
July 1
(Wednesday)
City receives Certification of
assessed value,
2)
July 23
(Thursday)
within 0 days laity must advise property Appraiser
on No. l of rolled back rate, proposed
millaae rate, and date, time and
place of first public hearing.
3)
August
18 (Tuesday)
at least 10 days City will advertise for Federal
before no,5 Revenue Sharing Hearing.
4)
August
14 (Friday)
45 days after No. 1 Property Appraiser mails notice of
- or within 15 days proposed property taxes.
of receipt of pro-
posed millaoe rate
from all taxing auth-
orities (whichever
is sooner)
5)
August
31 (Monday)
at least 7 days City Manaer', s Federal Revenue
before No.6 Sharing Public Hearing.
6)
Sept.
10 (Thursday)
60-75 days after, Fi rst publ i c hear i na to adopt
No. I proposed millaae rate and tentative
budget.
Federal Revenue Sharing Hearing,
7)
Sept.
21 (Monday)
within'15 days City will advertise for second
of No. A public hearing. --
8)
Sept.'24
(Thursday)
3`days after Second aublic hearing to adopt final
No. 7 millane rate and hudget. e
9)
Oct. 8
(Thursday)
within 100 days City must submit millaae ordinance e
of No. l to Property Appraiser.
10)
To he
determined by
City Commission reviews Proposed e
City ;Manager
Budget with Department_ Directors.
Lan/D.2
6-8-81