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Home My WebLink AboutCC 1980-06-18 Special Budget Workshop0 9. CITY OF MIAMI _ • \\`111�11 II / y COMMISSION MINUTES OF MEETING HELD ON June 18,1980 (SPECIAL BUDGET WQ PREPARED BY THE OFFICE OF THE CITY CLERK CITY HALL ASSUMPTIONS FOR PROJECTING FY'81 BUDGET 1. The estimated carry-over fund balance for FY'80 is $500,000. 2. The assumption for Property Taxes is that the City will levy a millage rate of 7.694 mills, which will generate $46,895,563 or $5,167,753 more than FY'80 projected receipts. 3. $3,500,000 will be transferred to the General Fund from FP&L Franchise Capital Improvement Revenues. 4. Federal Revenue Sharing will be funded at approximately $8,500,000. 5. Conference and Convention Bond Fund revenues totaling $1,182,067 will be transferred to the Enterprise Funds to reflect a change in accounting practices. 6. No Countercyclical Revenue Sharing has been anticipated in FY'81. 7. The waste disposal fee charged to City residents will increase by $34 (from $36 to $70). This increase will generate $6,300,000 in revenue, or $3,060,000 more than the $3,240,000 anticipated in FY'80. 8. Fees paid to Dade County for disposing of the City's solid waste will increase by $1,573,000 (from $2,226,000 to $3,799,000). 9. Workers' Compensation, Group Insurance, and Liability Insurance will increase by approximately $600,000 or 10%. 10. Provisions have been made for $16.2 million in Pension costs, which is approximately 5% ($800,000) greater than the current year's appropria- tion. 11. FICA costs will increase by approximately $262,000 pursuant to Federal law. 12. Funds have been provided for a 6% union -negotiated salary increase which total $3,626,089. 13. Street Lighting costs will increase by $540,583. 14. Only mandatory nonpayroll items were adjusted for inflation - other nonpayroll items were not adjusted. 15. The deficits for the Enterprise Funds for FY'81 will be $706,755 (an increase of $130,245) if services are maintained at current levels. 16. Capital improvements for the Department of Stadiums and Marinas will be funded from the Capital Improvement Program ($255,000). 17. The contribution to the Department of Building and Vehicle Maintenance will be $1,960,495 higher than the current year's Adopted Budget based on current service levels. L Assumptions for Projecting FY'81 Property Taxes 16 Assessment - Property is presently assessed @ 75% of market value. - For FY '81, property will be assessed 0 100% of market value. - The change from 75" to 100% assessment, plus adjustments for inflation, will increase the dollar value of all property in the City by 4411V (from $4.2 billion to $6.1 billion). 11, Revenue - The State Law permits an 8% increase in the amount of revenue the City currently receives from property taxes, plus new construction. The resulting millage rate will be 7.558 mills, yielding $46,081,164. - The 8% increase allowed by the State can be exceeded by a 4/5 vote of the City Commission. sc/L7 4 ' . W C. SUMMARY OF FY '81 EUDGET GAP I. BUDGET SUMMARY REVENUES APPROPRIATIONS BUDGET GAP II. REASONS FOR GAP A. Summary of Revenues Gains Losses Gain Gains Modified Budget 1979-80 $106 497,063 106,497,063 $ -0- Budget Estimate 1980-81 $113,213,349 116,247,653 $ 3 ,034 ,304 $ 11,870,404 (5,154,118) $ 6,716,286 1. Property Taxes 5,167,753 2. Waste Disposal Fees 3,060,000 3. Utility Service Taxes 1,149,097 4. Indirect Cost Allocation 1,000,000 5. Federal Revenue Sharing 677,510 6. Paybacks from Self -Insurance 199,619 7. Certificate of Use Accessory 82,500 8. Other Charges for Services 67,615 9. Business Licenses 65,000 10. Telephone Franchise 59,707 11. Gas Franchise 55,826 12. Public Hearing Fees 47,668 13. Day Care Fees 44,944 14. PluTnbing Permits 39,000 15. Auto Pound Fees 36,000 16. Electrical Inspections 33,925 17. Civilian ID 31,090 18. Urban Park and Recreation Recovery Program 22,000 19. Dade County Crim. Justice Inst. 21,000 20. Other Licenses and Permits 10,150 Total Gains Losses 1. Conf. and Conv. Bond Fund (1,182,067) 2. FP & L Franchise (1,088,530) 3. Co untercyclical (1,039,000) 4. Anticipated Salary Savings (500,000) 5. Homestead Exemption (228,345) 6. Community Developnent (167,571) 7. Carryover Fund Balance (164,066) 8. False Alarm Response Fee (135,000) 9. Interest on Investments (130,000) sc/L7.1 r%: $ 6,716,286 9,750,590 $ 3,034,304 $ 11,870,404 • OK 10. Metro Dade County Court (120,000) 11. Parks for People (114,303) 12. Rental Properties (98,494) 13. Unclaimed Monies (79,230) 14. Other Charges for Services (36,214) 15. Inspection Reports (22,000) 16. Fire Code Inspection Fees (18,890) 17. Police Special Investigation (12,508) 18. Social Services Trust and Agency Fund Balance (11,000) 19. Interest -Property Unit Money (6,900) Total Losses Net Revenue Gain B. Appropriation Increases Salaries & Wages Other Pay Other Expenses Capital Outlay Increase in Appropriations C. Budget Gap sc/L7.2 $ 3,466,890 841,268 4,725,525 716,907 $(5,154,118) $ 6,716,286 $ 9,750,590 $ 3,034,304 Department - City Clerk Elections - Computers & Communications Telephones Utilities Repairs & Maintenance - Conference Center Transfer to Ent. Funds - Parks Department Electricity - Public Works Street Lighting - Solid Waste Scale Fees Postage - Special Programs and Accounts Contrib. to Ent. Funds Butcher Case B.& V. 1-1. Increase Grp. Ins.; W. C. ; Liability Ins. Contingent Fund Severance Pay Other GENERAL FUND INCREASES IN OPERATING EXPENSES 138,833 37,147 366,633 1,573,000 20.000 130,245 (375,000) 1,947,431 600,000 290,525 242,377 Increase Decrease (114,000) 5429613 (964,779) 113*125 540,583 1,593,000 2,836,078 178,905 Total 4,725,525 GENERAL OBLIGATION DEBT SERVICE FY '80 FY '81 Difference Debt Service $17,695,730 $19,269,208 $ 1,573,478 Less Fund Balance J571,768) (1,213,529) (641,761) Less Homestead Exemption 420,138) (308,774) 111,414 Ad Valorem Req. $16,703,774 $17,746,905 $ 1,043,131 Millage Rate 3.960 2.910 (1.05) OUTSTANDING ISSUES 1. As of today, Federal Revenue Sharing has not been approved by Congress for FY'81. The President has included it in his budget, but Congress has not acted. 2. Commission approval is needed for an increase in the baste Disposal Fee. 3. No provisions have been made to increase the number of budgeted sworn personnel to equal the highest number of budgeted sworn personnel the City has had at any given time: FY'76 - 807 sworn FY'80 - 714 sworn 9393 shortfall The salary and support costs for 93 Police Officers is $ 2,379,747. If it is decided to add 93 Police Officers to the FY'81 Budget, the gap increases from $3,034,304 to $5,414,051. 4. The City must decide on the a -Mount of funds it wants to receive from property taxes, as �,rell as the millage rate it wants to levy, before July 30, 1980, assuring that Cade County provides the City with a certification of assesselValUe by July 1, 1980. 5. The State has not yet promulgated the final rules by which municipal- ities are to compute the tax rate. These rules may differ slightly from those used in this report and to arhich municipalities are accustomed. Hence, these rules may slightly change the tax rate included in this report. sc/L9 C.