HomeMy WebLinkAboutcover memoCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
BH.3
TO
FROM :
The Honorable Mayor and Members
of t City Co tiission
Joiola
Ci, anager
DATE:
SUBJECT:
REFERENCES:
ENCLOSURES:
September 17, 2004 FILE
Appropriations Ordinance
for Fiscal Year 2004-2005
RECOMMENDATION
It is respectfully requested that the City Commission adopt the attached ordinance
establishing the proposed appropriations for the fiscal year ending September 30,
2005 ("FY05"). The General Fund budget for FY '05 is $445.6 million. The
proposed budget for all funds totals $652.6 million.
BACKGROUND
The proposed appropriations ordinance reflects the City's continued ability to
meet its financial obligations and comply with or, with respect to the level of
designated General Fund reserves, continue the progress toward compliance with
the City's Financial Integrity Ordinance:
• Forecasted revenues and other resources equal budgeted
expenditures, transfers and reserves.
• Recurring revenues exceed recurring expenses.
• Prescribed reserves are established.
• Additional reserves are budgeted to address contingencies.
Summary Comparison: FY04 Amended Budget to FY05 Proposed Budget
Fund
FY `05
Proposed
Budget
FY '04
Amended
Budget
Difference
Change
General Fund
445.6
420.7
24.9
5.9
Special Revenue Funds
' 166.2
233.2
(67.0)
(28.7)
Debt Service Funds
40.8
42.4
(1.6)
(3.8)
Total:
$ 652.6
$ 696.3
(43.7)
(6.3)
General Fund
Real and personal property taxes represent the most significant revenue source
for the General Fund. Due to a $3 billion increase in the City's taxable assessed
value, we continue to fulfill our commitment to reducing the millage rate. The
proposed millage rate will remain static at 8.7625 mills. This operating millage
rate will yield revenues of approximately $179.3 million in FY '05, for a $23.5
million increase over the prior year.
Revenue assumptions for FY '05 also included a $3.0 million dollar negative
impact to the parking surcharge revenue. This reduction is the result of new
legislation that was passed by referendum requiring a 25% reduction in the fee
charged.
For FY '05, the tentative budget forecast reflects a fund balance rollover of
approximately $40 million. $34 million of fund balance will be used to fund the
City's required actuarial payment of $70 million. The remaining $6 million will be
used to fund one-time expenditures for citywide capital improvements.
Salary projections for FY '05 are based upon a total of 3,462 permanent positions,
both filled and vacant. For all employees no cost of living increase is projected as
labor negotiations have not been concluded, however 5% step increases are
included in the budget assumptions and were applied based on the employee's
anniversary date, where applicable. Any fiscal impact from the finalized labor
negotiation will be addressed by future budget amendments.
JA/Is
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