HomeMy WebLinkAboutItem #11 - Discussion ItemTO Joseph P4 Cyrassie
City Manager
FROM toward V. Cary, Director
Management and Budget
CITY OF 'MIAMI, FLORIDA
INFER=OFF CE MEMORANDUM
I:): TF July 17, 1978
Second Status on the
FY '77-78 Budget
REFERENCES'
The Department of Management and Budget has completed another review of the fiscal
year 1977-78 Budget. This review entailed an analysis of revenues and
expenditures in an attempt to project the status of the current budget at year end
as well as to determine the variances in the budget and the reasons for these
variances.
The projections reveal that the City of Miami will receive $97,295,543 in revenues
and expend $97,010,758 in operational costs for a net projected fund balance of
$284,785. The difference between this status report and the first one given to
the City Commission on June 13, 1978 is a net increase of $754,667 in the fund
balance. This projected increase in the fund balance is attributable to a
projected increase in salary savings of $1,130,289 and a decrease in
Countercyclical Revenue Sharing of $375,622.
The increase in salary savings is due to temporary vacancies that are projected to
continue throughout the remainder of the fiscal year. The decrease in
Countercyclical Revenue Sharing is mainly due to the fluctuation in the allocation
formula and available revenues.
A summary of these projections by major category is as follows:
A. Revenues
1. Ad Valorem Taxes
2. Sources Other Than
Ad Valorem
3. Fund Balance -
FY '76-77
4. Fund Balance -
Deficit-FY'76-77
5. Salary Savings
6. St. Lighting Fund
Balance
TOTAL Revenues
Adopted
Budget
1977-78
$36,872,992
58,497,614
1,000,000
-0-
1,500,000
-0-
97,870,606
Modified
Budget
1977-78
$36,872,992
58,374,254
1,000,000
(95,736)
1,500,000
240,161
97,891,671
Projected
Budget
1977-78
Projected
Balance
1977-78
$38,281,830 $1,408,838
57,369,288 (1,004,966)
-0- (1,000,000)
(95,736) -0-
1,500,000 -0-
240,161 -0-
97,295,543
(596,128)
84 8stpehditutes
1. Salaries & Wages,
Without Salary
Reserve
2. Other Expenses
3. Salary Savings
TOTAL Expenditures
Projected Fund Balance
Adopted
Budget
1977t78
$53,789,942
44,080,664
$97,870,606
for `Y' 77-78
Modified
Budget
1977=78„,
Projected
Midget
1977 7$ .
projedted
Balande
19774'8..
$53,289,873 •$50,708,915 $(2,580,958)
44,601,798 44,801,843 200,045
0- $__1,500,000 $ 1,500,000__
$97,891,671 $97,010,758 $ (880,913)
$__ 284,785 $ 284,785
Overall, it is projected that the City will receive $596,128 less in revenues than
budgeted and will expend $880,913 less in operational costs than is budgeted. The
net result is a projected fund balance surplus of $284,785.
I. REVENUES: With regard to the projected revenues, the $97,295,543 represents a
net decrease of $596,128 from the modified budgeted amount of $97,891,671.
The major factors contributing to this net decrease are as follows. Firstly,
the $1,000,000 anticipated in carryover fund balance will not be realized
because the City auditors,Peat, Marwick, Mitchell & Company, have concluded
that Metropolitan Dade County overstated the City's tax delinquencies in prior
years and therefore, the anticipated fund balance will have to be used to
offset this error. Furthermore, this error caused a deficit in last fiscal
year's budget in the amount of $95,736.
Secondly, receipts from Metropolitan Dade County Court fines are expected to
fall below the budgeted level by approximately $1,221,000. The reason for
this projected reduction is that the Supreme Court overruled the increased
fines imposed by Dade County.
Another reduction in revenues is anticipated in State Revenue Sharing. The
State Department of Revenue has reported that the City's receipts for this
item will fall short of the aniticipated level by $495,808. This reduction is
mainly attributable to the reduction in cigarette sales tax.
Other reductions are anticipated in Countercyclical Revenue Sharing and
Cigarette Tax. These reductions are approximately $1,100,000 and $540,000
respectively. The anticipated reduction in Countercyclical Revenue Sharing is
due to the fluctuation in the allocation formula and available revenues. The
reduction in the Cigarette Tax is due to the reduction in cigarette sales.
On the brigher side, it is anticipated that the City will receive
approximately $2.8 million more in Utility Service Taxes and $1.4 million more
in ad valorem taxes. The increase in Utility Service Taxes is mainly
attributable to the rate increases granted the utility companies. Ad Valorem
Tax increases are due to an increase in the level of large apartment and
commercial constructions.
II. EXPENDITURES: With regard to expenditures, it is anticipated that the Salary
and Wage accounts will produce a surplus of approximately $2,580,958. This is
primarily attributable to temporary vacancies. It should be noted that 1.5
million of this salary savings will be used to offset the $1.5 million
revenues anticipated from salary savings.
ik
Non Payroll expenditures ate projected to exceed the budgeted amount by
approximately $200,000. The projected overruns are due Mainly to increased
setVices not forseen during the development of the FY '77.78 budget. An
exarple of such overruns occurred in the Parks and Recreation Department where
electricity and water charges exceeded budgeted amounts due to the opening of
new parks.
III SUMMARY: In summary it is projected that the City of Miami_will experience a
surplus_ in the amount of $284,785, This surplus is attributable to projected
receipts of $97,295,543 against projected expenditures of$97,010,758.
IT SHOULD BE NOTED THAT THIS IS THE BEST PROJECTION GIVEN AVAILABLE
INFORMATION. THIS PROJECTION WILL CHANGE AS INFORMATION BECOMES MORE CERTAIN
AND AS THE ASSUMPTIONS CHANGE.
We are in the final stages of firming up our first estimate of next year's
budget. Our preliminary finding is that th- City's expenditures will exceed
its revenues by approximately $2.3 million. This budget gap will require
departments to reduce their projected budgets.
It should be noted that any action the City takes to utilize available
resources this fiscal year will affect the amount of resources available to
solve next fiscal year's budget problem.
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TO:
Fteohi:
kichard ?Osmoen
Adting City Manager
Howard V, Gary, birector
Management and budget
CITY OF MIAMI. FLORIDA
iNtER,OPFICE MEMORANDUM
DATE: May 21, 1078 hLt:
SUBJECT:
Funding for 4 SUMMet lifeguards
REFERENCES:
ENCLOSURES:
One of the alternatives to prevent layoffs proposed in the FY'78 Budget
Was to place all eligible vacancies in the CETA program and use the
General Fund appropriation for these positions to fund those positions
in which layoffs would have occurred. Twenty-four (24) of the positions
transferred to CETA were Summer Lifeguards.
Due to the hiring freeze placed on the CETA program, the City will not be able
to hire the 24 Sumer Lifeguards. These lifeguards are needed to supplement
the existing lifeguards at eight (8) municipal pools during the summer
months; namely, Edison, Dixie, Curtis, Morningside, Shenandoah, West End,
Virrick, and Manor Park. This supplemental assistance is needed because the
pools are open longer during the summer months and service a larger volumne
of patrons.
The cost to employ 24 Summer Lifeguards is $46,000. It is suggested that
existing salary savings in the Parks and Recreation Department be utilized
if it is sufficient to cover the cost. This information will be obtained
from the Finance Department on Friday, May 26, 1978. The salary savings that
will be foregone will have to be offset by other surpluses.
If sufficient salary savings do not exist, it is suggested that this problem
be added to our existing host of budget problems for FY'78.
In any event, the hiring process for the lifeguards should begin immediately
so that the Parks and Recreation Department can be ready for their June 1978
Summer Program. Hence, it is suggested that immediately authorization be
given to Parks and Recreation to hire the lifeguards. Ratification of this
action can be made at a later date.
ce
cc: Vincent Grimm ✓
Albert Howard ✓-
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