HomeMy WebLinkAboutItem #39 - Discussion ItemTC! Mayor and Members of
the City Commission
Fl;am. Howard V. Gary
City Manager
t �
(,F MIAMI. FLORIOA r
I,`IT'.�F Gi�rICE iME- ORANUUM
;.'k-: June 8, 1931-,t.:-.
I �4 CPF`.CES
Budget Status Information
for June 8, 1981 Commission
Meeting
(2)
Attached 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 531 represents Police and Fire employees. The other 1,600, 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 department's except Police and Fire will have
to reduce their budgets by 26",.
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 58.
million (400 positions) by July 1, 1981. This action will save $2.1 million
this fiscal year and 58.2 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 $6 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.
14
- 2 -
My reasons for recommending this policy are as follows. The City of Miami
was established as a full -service city with all of the functions normally
provided by full -service cities. Since the establishment of Miami as a
full service Cite, the City has relinquished some of its full -service
responsibilities 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 citizenry,
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.
I am asking the City Commission to establish the policy of funding 186
additional police officers from special police taxing district rather than
General Fund monies. I am also requesting permission to begin implementing
personnel reductions now through end of this fiscal year.
PROPOSED BUDGET REDUCTION
F Y ' 82
BUDGET BUDGET
PROBLEM PROBLEM
($10. 3 Million) ($4. 7 Million)
GENERAL FUND
Mayor
$ 46,632
$ 21,251
Board of Commissioners
59,133
26,948
City Manager
Office of the City Manager
210,665
96,004
Office of Info. & Visitor
126,974
57,864
Internal Audit
87,898
40,057
Convention Bureau
47,632
21,707
Building and Zoning Ins.
530,462
241,741
City Clerk
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
248,086
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 Development
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
PROPOSED POSITION REDUCTIONS
F Y ' 82
BUDGET BUDGET
PROBLEM PR03 LEM
($10.3 Million) ($4.7 Million)
GENERAL FUND
Mayor
2
1
Board of Commissioners
4
2
City Manager:
Office of the City Manager
7
4
Office of Info. & Visitor
6
2
Internal Audit
4
2
Convention Bureau
2
1
Building and Zoning Ins.
18
7
City Clerk
6
2
Civil Service
1
-
Community Development
20(h1F)
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 a Commerce Development 1 1
ENTERPRISE FUNDS
Coconut Grove Exhbit. Center 4.5 2.5
Municipal Auditorium 4.5 2.5
Marine Stadium -
Miaiii Stadium 4 3
TOTAL 505 270
t
-Lo'7!D.�
TC Howard V. Gary June R, 19R1 LAM/28.6°
City Manager
Projection of FY 'R2 Budget
Estimate
FR I Manohar S. Suran irector -
Department of Man eie t and Budget
The Department of Management and Budget has revised the May 14,1981 projec-
tion of the fiscal year 1982 budget.
Attached are our projections which reveal that the City of Miami wi 1 1 re-
ceive $129.7 million in revenues and expend 5140.0 million in operating
costs for a net -projected shortfall of 510,322,675. The projected shortfall
is attributable to a gain of $6.7 million in revenues offset by an increase
of $17.0 million in operating costs. This projection is primarily based on
the assumptions shown in Attachment A.
Overall, it is projected that the City will receive 56,628,653 more in reve-
nues than budgeted and will expend 51.6,951,328 more in operational costs
than budgeted. The net result is a projected shortfall of $10,322,675 which
is explained in Attachment B.
1. Revenues
With regard to projected revenues, the 5129,703,446 represents a net
vain of a6,628,653 from the Modified Budget of 5123,075,193. The
factors contributing to this net gain are as follows:
A. Gains
Our projections show revenue gains 'of S11,259,089. Significant
gains are a follows:
1. An increase in Property Taxes of 55,5n3,2R4. This increase is
based on the assumption that the City will receive 8% more in
property taxes than it received in FY 'R1 plus new
construction.
2. An increase in utility Service Taxes of $2,139,417. This
increase is a result of rate increases by the major utility
companies.
3. An increase in Waste Disposal Fees of 5977,500 as a result of
anticipated increased collections in FY 'R2.
4. An increase in Charges for Services of 51,501,816. This
increase is a result of increasing rates at Dinner Key Marina
(S758,218), Miamarina (g5R5,930), Marine Stadium (5100,000),
and Watson Island ($57,768).
Projection of Budget Estimate
Page 2
B. Losses
Our projections show revenue losses of g4,630,436. Significant
losses are as follows:
1. Reduction of the FY 181 Carryover Fund Balance by 51,526,948 of
which $1.2 million represents the reappropriation of FY '80
encumbrances.
2. Reduction of Homestead.Exemption by 51,067,069 since it will
not be funded in FY '82.
3. Reduction of Cost Allocation by S636,393. This reduction is
based on the latest FY '81 revenue projection.
4. Reduction of Interest - Interama by S500,000 since no interest
is expected from Interama in FY 182.
5. Reduction of Fines and Forfeits (Metro -[jade County Court) by
$200,000. This reduction is due to a drop in the collection
rate.
II. Expenditures
With reqard to projected expenditures, the 5140,026,521 represents an
increase of S16,951,328 from the Hodifed Budget of S123,075,193. The
major factors contributing to the increase are as follows:
1. Increase in Salaries and Wages in the amount of S8,153,250.
2. Increase in Other Pay in the amount of 52,782,105.
3. Increase in Operatina_ $ Capital Expenses in the amount of
$1,610,869.
4. Departmental reductions will result in a savings of 51,213,449.
5. Addition of 186 police officers which will cost S5,6111,553.
Attachment C summarizes the appropriation increases.
Summary
In summary it is projected that the City of Miami will experience a
shortfall in the amount of $10,322,675.
This shortfa is attri uta e to
projectedreceipts o 9, 0 ,8 aaainst projected expenditures o
dkp
ATTACHMENT A
ASSUMPTIONS FOR PROJECTING FY'82 RUDGET
1. The estimated carr.v-over fund balance for FY '91 will he �193,643.
2. The assumption for Property Taxes is that the City will receive Po more
in property taxes than it received in FY '81 plus new construction.
3. This is based on a millaqe rate of Q.1.01 which will generate
$58,597,052 or $5,503,284 more than the FY '81 Adopted Budget.
4. Homestead Exemptions will not be funded.
5. $3,500,000 will be transferred to the General Fund from FP&L Franchise
Capital Improvement Revenues.
6. Federal Revenue Sharing will he funded at approximately g8,500,000.
7. No Countercyclical Revenue Sharing has been anticipated in FY 'F?2.
8. The waste disposal fee charged to City residents will he 575. This
will generate S7,000,000 in revenue.
9. Fees paid to Dade County for disposing of the city's solid waste will
increase by S274,000 (from S3,799,000 to ?4,073,000).
10. Workers' Compensation, Group Insurance, and Liability Insurance will
increase by S?,083,510 or 31`�.
11. Provisions have been rude for e17.0 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-nenotiated salary increase for
Fire, Police and general employees which total $6,014,P75. Funds have
been provided for a 6, salary increase for SEA members which total
$414,335.
14. Street Liqhtinq costs will increase by S973,n00 or 25".
15. The deficits for the Enterprise Funds for FY '3? will he S,932,Q77 (an
increase of $161,284).
16. The contribution to the Department of Ruildinn and Vehicle 'Iaintenance
will be S2,683,074 higher than the current year's Adopted Rudqet.
17. All non -payroll items are adjusted to reflect anticipated increases.
1P,. No provisions are included for the q2 million Public Safety Fund.
19. Provisions have been made to add 1P6 police officers in the Police
Department, thereby increasing sworn positions from RIA to 1,000 at a
cost of S5,61P,553.
smc/LAN 29
6/8/81
ATTACHMENT B
SUMMARY OF FY '82 BUDGET ESTIMATE
I. BUDGET SUMMARY
REVENUES
APPROPRIATIONS
SHORT FALL
II. SUMMARY OF REVENUES
Gains
Losses
Gain
Ga ins
Modified Budget Budget Estimate
as of 3-31-81 1981-82
$123,075,193
123,075,193
$ -0-
1. Property Taxes
2. Utility Service Taxes
3. Waste Disposal Fees
4. Dinner Key
5. Miamarina
6. Building Permits
7. Franchise Taxes
8. Marine Stadium
9. Electrical Inspections
10. Public Hearing Fees
11. Plumbing Permits
12. Auto Pound Fees
13. State Revenue Sharing
14. Watson Island
15. Energy Code Fees
16. Other
Total Gains
Losses
$129,703,846
14 0,026,521
10,322,675
$11,259,089
(4,630,436)
$ 6,628,653
1. Carryover Fund Balance
2. Homestead Exemption
3. Cost Allocation Plan
4. Interest - Interama
5. Metro Dade County Courts
6. County Occupational Licenses
7. Dade County School Board
8. Interest on Investments
9. Unclaimed Monies
10. Community Developi-ient
11. Other
Total Losses
Net Revenue Gain
$ 5,503,284
2,139,417
977,500
758,218
585,830
280,150
141,033
100,000
91,218
85,000
80,609
73,500
66,906
57,768
55,000
S 263,656
$ (1,526,948)
(1,067,069)
(636,393)
(500,000)
(200,000)
(111,405)
(100,000)
(100,000)
( 98,000)
( 69,211)
S (221,409)
Difference
$ 6,628,653
16,951,328
$ 10,322,675
$11,259,089
S (4,630,436)
$ 6,628,653
ATTACHMENT B
SUMMARY OF FY '82 BUDGET ESTI14ATE (CONT'D)
III. APPROPRIATION INCREASES
Salaries and Wages
Other Pay
Operating Expenses
Capital Expenses
186 Additional Police Officers
Departmental Reductions
Solid Waste
Parks
Leisure
Management and Budget
Computers & Communication
Planning
Community Development
Increase in Appropriations
IV. SHORTFALL
$ 8,153,250
2,732,105
2,119,002
( 508,133)
$( 385,159)
( 343,207)
( 232,654)
( 99,384)
( 93,960)
( 40,343)
18,737)
$12,546,224
5,618,553
( 1,213,449)
$16,951,328
$10,322,675
.A
ATTACHMENT C
SUMMARY OF APPROPRIATION INCREASES
FISCAL YEAR 1982
I. Salaries and wages
II. Other Pay:
1) Pension
2 ) Self Insurance
3) FICA, Overtire, Holiday Pay, etc.
III. Operating Expenses:
1)
Building and Vehicle Maintenance
2 )
Public Safety Fund
3)
Capital Outlay
4 )
Street Lighting
5)
Scale Fees
6)
Computer Repairs and Maintenance
and Telephone
7)
Self Insurance
8)
Utilities
9)
Severance Pay
10)
Election
11)
Enterprise Fund Deficit
12 )
Other
13)
Fiscal Year 1981 Encumbrances
Departmental Reductions
186 Additional Police Officers
Total
$ 772,444
1,543,533
466,123
$2,683,074
(2,000,000)
(508,133)
973,000
274,000
321,539
539,977
131,926
148,616
112,000
161,284
(5,823)
( 1,220,591)
$ 8,153,250
$ 2,782,105
$ 1,610,869
( 1,213,449)
5,618,553
lii,951, 328
�' ' L
Howard V. Gary June 3, 1981
-" City tanager
FY '82 Budget Process Schedule
(Public Hearings)
Manohar S. Su an Director
F Department of Pan ent and Budget
In accordance with the guidelines established by the "TRIM" bill,
attached please find the City of Hiami`s proposed fiscal year 1982
Budget Process Schedule (Public Hearings). The schedule is based on
the City receiving the 1981 Certificate of Assessed Value on July 1,
1981. As outlined in the "TRIM" bill the City must advise the
property appraiser of its proposed millage rate, rolled back rate, and
the day, time, and place of the first public hearing by July 30, 1981.
Conclusively, the attached schedule is based on receiving the
Certificate of Assessed Value on July 1, 1931. However, if Dade
County fails to deliver the assessed valuation on time the entire
- schedule will have to be revised.
a
• V..
Dates
1) July I (Wednesday)
2) July 23 (Thursday)
3) August 18 (Tuesday)
4) Auqust 14 (Friday)
5) August 31 (7-londay)
6) Sept. 10 (Thursday)
7) Sept. 21 (-'onday)
8) Sept. 24 ( Thursday)
9) Oct. 8 (Thursday)
10) To he determined by
City Manager
CITY OF MIAMI
BUDGET PROCESS SCHEDULE
FISCAL YEAR 1982
(PUBLIC HEARINGS)
Working Days
within 30 days
on No. 1
at least 10 days
before no.5
45 days after No. 1
or within 15 days
of receipt of pro-
posed millaae rate
from all taxina auth-
orities (whichever
is sooner)
at least 7 clays
before No.6
60-75 days after
No. 1
Schedule of Activities
City receives certification of
assessed value.
City must advise Property Appraiser
of roiled back rate, proposed
mill aae rate, and date, time and
place of first public hearing.
City will advertise for Federal
Revenue Sharina Hearina.
Property Appraiser mails notice of
proposed property taxes.
City Manger's Federal Revenue
Sharina Public Nearing.
First public hearing to adopt
proposed millane rate and tentative
budget.
Federal Revenue Sharinn Pear-ina.
within 15 days C i t v wi 1 l advertise for second
of '`o. F, public hearing.
3 days after Second nubl is hear inq to adopt final
No. 7 mi11aoe rate ,and hudaet.
within 100 days City must submit 'ni 11 age Ord inance
of No. 1 to Property Appraiser.
City Commission reviews Proposed
Budget with Department directors.
Lan/D.2
ti