HomeMy WebLinkAboutPrposed Budget FY 2008Budget Focus
To prepare a structurally balanced general operating budget with recurring revenues
supporting recurring expenditures.
To provide a budget, which conforms to Generally Accepted Accounting Principles as
applicable to local governments.
To present a budget using the current financial resource measurement focus and the
modified accrual basis of accounting as reported in the City of Miami CAFR.
To receive citizen feedback to ensure the upcoming budget is consistent with the
needs of our citizens.
1
The Budget Process
Date
Activity
4/26/07
Mayor issued State of the City Address
5/1/07 - 5/18/07
Met with Mayor, City Manager, and CFO to discuss financial outlook for
fiscal year 2008.
5/30/07
Departmental budget packages distributed for fiscal year 2008.
6/29/07
Budget submission deadline.
7/2/07 — 7/24/07
Department met with Director, Management and Budget to discuss budget
request.
7/27/07
Office of Strategic Planning, Budgeting and Performance generated 1st draft of
budget.
8/20/07
Commissioners' Budget Workshop.
9/11/07
First Public Budget Hearing.
2
Budget Issues
House Bill 1B
Other Post Employment Benefits
Fire Assessment
3
House Bill 1B
Passed by Florida Legislature on June 14, 2007.
Contains two provisions: maximize property tax revenue and limit property tax
revenue growth in future years.
The statutory allowed operating millage will limit the amount of property tax revenue
the City can collect in FY'08.
Limit City's operating millage rate to rolled back rate.
Not applicable to voted debt.
4
Impact of House Bill 1 B
As a result of HB 1 B, the City's maximum operating millage rate is limited to the
rolled back rate of 7.2999 mills.
The proposed operating millage rate is the lowest rate since FY'81.
Total property tax revenue reduction of $31.6 million.
Will reduce property tax on homestead property by an average of 7 %2 percent on
the County -wide millage rate.
The City Commission may increase the operating millage rate above the rolled back
rate.
5
12.00000
10.00000
8.00000
6.00000
4.00000
2.00000
0.00000
Millage Rates for the City of Miami
FY'04
FY'05
FY'06
FY'07 FY'08
• Operating Debt Service Combined
FY'04
FY'05
FY'06
FY'07
FY'08
Operating
8.76250
8.71625
8.49950
8.37450
7.29990
Debt Service
1.08000
0.95000
0.76500
0.62100
0.57760
Combined
9.84250
9.66625
9.26450
8.99550
7.87750
OPEB
In FY'08, the City of Miami will be required to account for retiree health care benefits
and other post employment benefits (OPEB) in a similar manner to that required for
pension benefits.
Actuarial evaluation to determine the total unfunded liability.
Liability will be required to be recorded on the financial statement in FY'08.
The City of Miami will make its required annual contribution in FY'08.
7
Fire Assessment
FY'07 Adopted Budget included $4.5 million from fire assessment.
Fire assessment revenues not included in the FY'08 Proposed Budget.
Will require the General Fund to support Fire Rescue capital requirements in future
years.
8
General Fund
9
Revenues (Inflows) -General Fund
$523,713,803
Charges for Services
$82,850,712
15%
Other Revenues (Inflows)
$19,205,100
4%
Licenses and Permits
$29,658,555
6%
Intergovernmental Revenues
$41,151,996
8%
(Transfers -IN)
$39,492,737
8%
Other
$13,323,555
3%
Franchise Fees and Other Taxes
$37,005,000
7%
Property Taxes
$261,026,148
49%
10
Revenue (Inflows) —General Fund
Overall, total revenues will increase $15.6 million over the prior year adopted budget.
Compared to actual increases of $48.6 million in FY'06, $28.8 million in FY'05, and
$46.3 million in FY'04.
Property tax revenue increase of $5.65 million. Compared to actual increases of
$41 million in FY'06, $35.3 million in FY'05, and $19.6 million in FY'04.
Elimination of non ad valorem revenues from Fire Assessment. FY'07 Adopted
Budget included $4.5 million.
$7.5 million increase in FPL Franchise Fees as a result of pending change in FPL
contract. Increase based on change in fee calculation method and prior 4-year
historical trend.
11
Revenue (Inflows) —General Fund
76% or $5.6 million of Local Option Gas Tax will be transferred into the General
Fund. The remaining 24% or $1.8 million will be used for payment of Street Bonds in
Special Obligation Bonds Fund.
Increase in Licenses and Permits of $3.1 million from anticipated collections in Waste
Hauler Permit Fees.
$15.55 million dollar use of fund balance for Fire Assessment settlement payment.
12
Expenditure (Outflows) -General Fund
$523,713,803
Other
$65,649,919
13%
(Transfers -OUT)
$29,861,407
6%
Pension
$65,945,032
12%
Risk Management
$52,420,609
10%
Planning &
Development
$11,771,871
General Government
$45,570,476
MMMM-
MMM
MMMMI
MMMM
MMMM
MMM
Other
Public Facilities
$7,478,665
/
9%
Public Safety
$207,445,872
39%
Parks &
Recreation
$21,732,908 J
Public Works
$56,820,488
11%
r 1
Non -
Departmental
$24,666,475 J
13
Expenditure (Outflows) -General Fund
Overall, total proposed expenditures will increase $15.6 million over the prior year
adopted budget. Compared to actual increases of $33.2 million in FY'06, $30.3
million in FY'05, and $39.1 million in FY'04.
Reduction in pension cost of $19.1 million primarily from change in FIPO asset
valuation method. Total FIPO and GESE administration allocation increased $200k to
$4.9 million.
Eliminated 35 full-time vacant positions at a total cost savings of $1.9 million.
Restricted 59 full-time vacant positions to be filled at a later period in FY'08. Total
cost savings of $1.8 million.
Reduced allocation to Risk Management by $9 million for insurance and other risk
related costs based on four-year average and current year expectation.
14
Expenditure (Outflows) -General Fund
Reduced temporary, part-time, and other personnel costs (i.e. overtime and
allowances) by $6 million.
Reduced city-wide operating expense allocation a total of $15.65 million over the
prior year adopted budget. Reduction included all city departments and supporting
agencies.
Total proposed city-wide reductions = $53.5 million.
Added $2.8 million to Parks and Recreation. $475k -Fern Island Park, $386k
Grapeland Park Ball -fields, $988k -Grapeland Water Theme Park, $642k -Little Haiti
Park, and $305k -Maceo Park.
Allocated $5 million for annual contribution to OPEB pending completion of actuarial
report.
15
Expenditure (Outflows) -General Fund
Allocated $900k for 2007 General Elections.
$420k for Slab Covered Trench Cleaning Project.
$740k for four (4) GEO Vacuum Street Sweepers @ $185,000/vehicle.
$4.8 million for City-wide Fleet replacement.
$15.55 million payment of Fire Assessment settlement.
16
General Fund -Outside Agencies
$3,243,312
Gusman Olympia
$381,000
12%
FY'07 = $336,454
9%
Civilian Investigative
Panel
$996,156
31%
FY'07 = $1,206,238
32
*Does not include $800k in prior year rollovers.
Liberty City Trust
$550,000
17%
FY'07 = $579,865
15%
*Virginia Key Beach
Trust
$1,316,156
40%
FY'07 = $1,680,955
44%
17
Questions
18