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HomeMy WebLinkAboutSubmittal-PowerPoint Presentation FY'09 Proposed BudgetCity of Miami PROPOSED BUDGET Fiscal Year 2009 Budget Focus • To prepare a structurally balanced general operating budget. • To provide a budget, which conforms to Generally Accepted Accounting Principles (GAAP). • To present a budget using current financial resources 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. 2 Budget Issues • Continuation of HB-1B • Amendment 1 • SB 1588 —Glitch Bill • Fuel Costs • UtilityCosts 3 House Bill 1B • Limits the increase in the City's rolled back millage rate from year-to-year. • City removed from list of municipalities under special financial concern in 2007. p 4 Amendment 1 • Approved by the voters on January 29, 2008. • Provided an additional $25k exemption up to the 3rd $25k of assessed value on homestead properties. • Provided a $25k exemption on tangible personal property on businesses. 5 Amendment 1 • Provided portability of Save Our Homes up to $500k. • Reduced Current Year Gross Taxable Values by $1.2 billion in Tax Year 2008. • City's Current Year Gross Taxable Values increased by 1.6% in Tax Year 2008 compared to 14.5% in Tax Year 2007. 6 SB 1588 —Glitch Bill • Changed the calculation of the maximum millage rate with a majority vote. • Takes out the effects of Amendment 1. • Does not effect the calculation of the maximum millage rate with a 4/5th vote. Fuel Prices • Gasoline prices are projected to average $3.82 per gallon compared to $2.81 per gallon at the start of FY'08. • Diesel prices are projected to average $4.27 per gallon compared to $2.88 per gallon at the start of FY'08. • Overall, fuel expenses are forecasted to increase over 40% from $5 million to $8 million in FY'09. Source: Department of Energy, August 2008 Short -Term Energy Outlook 8 Utility Costs • On July 1, 2008 the PSC approved an adjustment to FPLs pass -through fuel surcharge. • On average, electricity prices are anticipated to increase from $8.6 cents per kilowatt hour in FY'O8 to $10.1 in FY'O9. • Utility costs are forecasted to increase 20% in FY'O9. Source: fpl.com/news and Department of Energy, Energy Information Administration, Short -Term Energy Outlook —August 2008 9 General Fund 10 Revenues and Other Sources by Source of Funds Proposed Budget 2009 General Fund -$525,108,930 Other $21,146,514 4% -\\ Charges for Services $84,207,624 16% Licenses and Permits $30,784,757 6% Intergovernmental Revenues $39,909,539 8% Transfers -IN $44,789,572 8% Franchise Fees and Other Taxes $37,053,231 7% Total Revenues and Other Financing Sources Fiscal Years 2003 to Proposed Budget 2009 General Fund 14.08% 8.60% $49.4 Transfers -IN Revenues FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 $392.0 $425.7 $441,2 $503.4 $553.0 Adopted Proposed Source: City of Miami Comprehensive Annual Financial Reports $523.7 $525.1 Revenues (Inflows) —General Fund • Represents a $1.4 million or 0.3% increase over the FY'08 Adopted Budget. • $6 million in additional property tax revenue based on proposed millage rate. • Includes $3 million in additional Solid Waste Fee revenues. • Includes $2 million in Mural Revenues. 13 Expenditures and Other Uses by Function Proposed Budget 2009 General Fund -$525,108,930 Transfers -OUT $33,754,201 6% Parks and Recreation $23,808,813 5% Pension $66,814,932 13% Risk Management $47,246,138 9% $60,955,648 12% Public Safety $228,385,263 43% Total Expenditures and Other Financing Uses Fiscal Years 2003 to Proposed Budget 2009 General Fund $398.6 NozwozoNN $491 j FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 $391.7 $430.7 $461.0 $494.2 $578.8 Adopted Proposed $523.7 $525.1 Source: City of Miami Comprehensive Annual Financial Reports Transfers -OUT Expenditures 15 Expenditures (Outflows) —General Fund • Overall, total proposed expenditures will increase $1.4 million over the FY'08 Adopted Budget. • Reduced $16.9 million in City-wide departmental spending. • Provides $12.7 million more for Public Safety. • Eliminated 31 vacant full-time positions at a total cost savings of $2 million. • Provides $2.8 million for the repayment of the Street Bonds approved in FY'08. 16 Expenditures (Outflows) —General Fund • Provides 25 additional Police Officer positions effective April 1, 2009. • Supports across the board increases provided to all union employees on October 1, 2008. • $1 million towards the Pension Stabilization Fund. • $300,000 for the Elderly Feeding Program. • $200,000 for the Action Community Center. • Reduces the number of general fleet replacement from 91 vehicles to 58. 17 Expenditures (Outflows) —General Fund • $1 million from mural revenues to be used for new park land acquisition, green space and public realm enhancements. • Additional $2 million to Parks and Recreation. • 14 new positions to the Finance Department. • $3 million for additional fuel increases and $2 million for additional utility costs. • $1.3 million for PC hardware and software replacement. 18 Expenditures (Outflows) —General Fund • Limit the use of fund balance to only $5 million for contingency purposes. • Dedicates $3 million in additional Solid Waste Fee revenues for the purchase of new Solid Waste vehicles. 1r 19 Key Changes • Uses more storm -water utility fund distribution in support of eligible General Fund storm -water projects and street cleaning operations. • Reserves outstanding litigated claims at September 30, 2008 in the General Fund Balance. • Modifies Solid Waste service delivery plan. 20 Questions 21