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HomeMy WebLinkAboutMemo - Year-End Budget AmendmentCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : FROM: Honorable Mayor and Members of the City Commission Johnny Martinez, City Manager 1 DATE : March 22, 2012 FILE : SUBJECT : Information for FY2010-11 Year -End Budget Amendment REFERENCES: ENCLOSURES: Background for General Fund Amendment Each year as the annual audit is completed, it may be necessary to amend the City's previously approved budget allocation so that the budget aligns with the expenditures. These adjustments in the General Fund are normally necessary due to previously unknown or unforeseen expenses that must be made, but were not previously allocated. Other adjustments are the result of pass -through revenue and expense that must be recorded on the City's financial system, but are not truly an operating cost of the City and as such were not budgeted. The FY 2010-11 Commission amended and adopted City's General Fund Budget totaled $500.83 million. The City did not exceed this allocation (actual expense totaled $498.266 million); therefore, this amendment will not increase the overall size of the City's General Fund budget; instead, it proposes shifting of unspent allocation to areas that exceeded the allocation. The list that follows denotes the areas of increased adjustment and summarizes the principal reasons for the required increase; additionally, Attachment 1 shows a listing of the operating units that required an increase in allocation and the operating units that were reduced in order to offset the increases. Adjustments to the General Fund Code Enforcement The FY 2010-11 Adopted Budget of $2.762 million is increased by $532,300, to a revised total of $3.295 million. The increase is primarily due to the retention of seven positions ($368,100) that were not contemplated in the budget. This was the result of the AFSCME 1907 MOU Imposition Agreement of 2010 (Attachment 2). Additionally, the department had to absorb three positions that were rolled back ($196,700). The above noted higher than budgeted expense was partially offset by attrition savings of ,-$69,100. Operating expenses imthe Department were higher than anticipated ($36,600), primarily due to costs associated with lot clearing and postage. The expenses for Code Enforcement, as noted above, are net of reimbursements from Community Development Block Grant funding that was temporarily set aside on January 13th, 2011 at a City's Commission meeting. The expenditure of these funds for use in FY 2010-11 is authorized as per the Honorable Mayor and Members of the City Commission Page 2 of 4 Fiscal Year -End Resolution in today's Agenda. Attachment 3 contains information noting the reimbursable time for work performed by Code Enforcement staff which is paid from those funds. Communications The FY 2010-11 Adopted Budget of $662,700 is increased by $18,900, to a revised total of $681,600. The increase is primarily due to the retention of a position ($57,000) that was not contemplated in the budget. This was the result of the AFSCME 1907 MOU Imposition Agreement of 2010 (Attachment 2). The above noted higher than budgeted expense was partially offset by attrition savings and lower than budgeted operating expenses. Fire Rescue The FY 2010-11 Adopted Budget of $72.349 million is increased by $4.433 million, to a revised total of $76.782 million. The increase is needed to reflect the pass -through posting of a $5.09 million expense related to the transfer of State Secondary Pension contribution (S.S. Section 175). This transaction is neutral to the City's finances because the revenue equal to this expense is also received. The Fire Rescue department actually completed FY 2010-11 $655,500 under budget. NET The FY 2010-11 Adopted Budget of $2.255 million is increased by $253,800, to a revised total of $2.508 million. The increase is primarily due to the retention of eight positions ($356,700) that were not contemplated in the budget. This was the result of the AFSCME 1907 MOU Imposition Agreement of 2010 (Attachment 2). The above noted higher than budgeted expense was partially offset by attrition savings and lower than budgeted operating expenses. Parks The FY 2010-11 Adopted Budget of $22.365 million is increased by $172,200, to a revised total of $22.537 million. The increase is primarily due to higher than budgeted operating expenditures at the Melreese Golf Course. These expenditures were largely offset by revenues; though no adjustment is needed for the revenue budget. Pensions The FY 2010-11 Adopted Budget of $72.08 million is being increased by $115,300, to a revised total of $72.195 million. This is primarily due to higher than expected actuarial cost of the GESE pension plan. Police The FY 2010-11_Adopted Budget of $124.317 million is being increased by $5.293 million, to a revised -total of $12961 million. The increase is needed to reflect the pass -through posting of a $4.287 million expense related to the transfer of State Secondary Pension contribution (S.S. Section 185). This Honorable Mayor and Members of the City Commission Page 3 of 4 transaction is neutral to the City's finances because the revenue received offsets this expenditure. Additionally, an unbudgeted expense of $1.126 million had to be posted to cover the non -reimbursable payroll expenditures of 43 Police Officer positions funded by the ARRA-Cops Hiring Grant. The above mentioned unanticipated/unbudgeted expenses were partially offset by lower than budgeted expenses operating expenses. Public Facilities The FY 2010-11 Adopted Budget of $4.227 million is being increased by $108,500, to a revised total of $4.335 million. The increase is primarily due to higher than anticipated utility expenses ($259,300). The above mentioned expense was partially offset by lower than budgeted personnel and other operating expenses. Risk Management The FY 2010-11 Adopted Budget of $62.844 million is being increased by $1.095 million, to a revised total of $63.939 million. The increase is needed primarily due to expense accruals associated with legal settlement of cases during the first quarter of FY 2011-12. If not for the settlement payments, the Department would have ended the year approximately $880,000 below budget. Non -Departmental Expenses The Non -Departmental portion of the City's Budget did not need to be amended as it was not exceeded; in fact, $6.488 million of unused allocation in the Non -Departmental budget was removed to allocate to other areas. Nonetheless, it is important to note some unanticipated expenses that were absorbed in Non -Departmental, but which were not included when the budget was prepared in September of 2010. The most notable expense in this area was the Wellman Settlement (Net $2.266 million). Other expenses of note are the Housing & Urban Development fund reimbursement ($1.9 million); higher than budgeted one time salary expenses ($1.66 million); professional services (Primarily Labor Negotiation $561,500); legal services ($352,800); and payment to the Miami Parking Authority to liquidate shortfall in the Gusman Center operation for FY2010-11 ($216,700). Background to Special Revenue Fund Amendments Each year as the annual audit is completed, it is necessary to amend the City's previously approved budget allocation so that. thebudget aligns with the expenditures. In the case of Special Revenue Funds, at the beginning of each fiscal year, it has been the policy of the City's administration to only _ . _ : - --appropriate 50 percent of funds available as of the prior year June 30`h close. This is done to allow time forthe the year end revenue and expense to occur while providing a margin that will - prevent a Special Revenue fund from being overdrawn. However, this practice inevitably results in a Honorable Mayor and Members of the City Commission Page 4 of 4 need to appropriate the other 50 percent (or the balance) of the funds later in the fiscal year (usually at the Mid -Year amendment). In addition to appropriating the remaining prior year available fund balance, this End -of -Year Amendment also appropriates the sum total of grants accepted by the Commission during the fiscal year and which were also expensed. These grants include actual cash awards as well as reimbursement grants such as the various versions of the ARRA grants and Community Development Block Grants. Another adjustment to the Special Revenue funds results from appropriation of program revenues such as billboards, Park and Recreation activities, and transportation taxes just to name a few. The Special Revenue Fund Budget that was initially approved by the City Commission in September of 2010 and amended in November of 2011 totaled $154.764 million. This Budget Amendment adds $29.778 million for a revised total Special Revenue Fund Budget of $184.542 million. Attachment 4 includes a listing of the various Special Revenue funds and the amounts by which they changed as a result of reconciliation of the 50 percent of prior year available funds, new program revenues and expenses, and or additional grants. As you will see, the bulk of the increase is attributable to the ARRA grants ($14.449 million); Community Development ($7.674 million); Fire Rescue Services which includes UASI, USAR, FEMA, etc. ($5.417 million); Homeless Programs ($860,000); Parks and Recreation which includes the Grapeland operation, Programs for the Developmentally Disabled, Children's Trust programs, etc. ($835,000); Public Service Taxes ($362,200); and Strategic Development Initiatives ($179,900). Attachments: General Fund Departmental Adjustments Department, Boards & Offices: Mayor Board of Commissioners Office of the City Manager Office of City Clerk Office of Civil Service Communications Building Public Facilities Finance Fire - Rescue General Services Administration Employee Relations Office of Equal Opportunity Information Technology Office of Auditor General Law Office of Strategic Planning, Budgeting & Perf Parks and Recreation Pension Department of Planning Police Public Works Purchasing Risk Management Solid Waste Office of Grants Administration Office of Zoning Non -Departmental Accounts (NDA) CIP Administration NET Offices Code Enforcement TOTAL GENERAL FUND Amended Budget Adjustment 643,700 1,700,000 1,650,500 1,061,100 292,600 662,700 18,900 5,146,400 - 4,226,500 108,500 6,320,200 (752,200) 72,348,700 4,432,800 16,025,200 2,452,200 247,700 10,890,200 858,400 5,239,000 (910,900) 1,384,400 22,364,800 172,200 72,079,700 115,300 2,591,700 - 124,317,400 5,292,600 14,396,000 (2,560,500) 1,121,200 - 62,844,100 1,094,800 19,358,500 (391,300) 509,700 - 783,500 41,744,000 (6,487,900) 2,552,700 (918,400) 2,254,500 253,800 2,762,300 532,300 ATTACHMENT 1 Final -. Close out 643,700 1,700,000 1,650,500 1,061,100 292,600 681,600 5,146,400 4,335,000 5,568,000 76,781,500 16,025,200 2,452,200 247,700 10,890,200 858,400 4,328,100 1,384,400 22,537,000 72,195, 000 2,591,700 129,610,000 11,835,500 1,121,200 63,938,900 18,967,200 509,700 783,500 35,256,100 1,634,300 2,508,300 3,294,600 500,829,600 $ $ 500,829,600 ATTACHMENT 2 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MIAMI, FLORIDA AND AFSCME, LOCAL 1907 i ThisMemorandum of Understanding is entered into this day of 0f MAW , 2009 between the City of Miami, Florida ("City") and the Miami General Employees, American Federation of State, County, and Municipal Employees Local 1907, AFL-CIO ("AFSCME Local 1907") (jointly "Parties") to modify the 2007-2010 Collective Bargaining Agreement ("CBA") as follows. NOW THEREFORE, the Parties agree.as follows: A. Across -the -Board (Article 24 of CBA) - Effective October 1, 2009, employees shall receive an across-the-board wage increase of 3% as outlined in Article 24 of the CBA. However, employees who entered the DROP as of October 1, 2009, shall not receive the 3% across-the-board wage increase set forth in the CBA until September 30, 2010, B. GESE Pension Contribution - Effective October 1, 2009, and ending September 30, 2010, employee contributions to the GESE pension plan shall increase from 10% to 13%. Effective September 30, 2010, employee contributions to pension shall revert back to 10%. C. Uniforms and Safety Shoes (Article 29 of CBA) — Effective October 1, 2009, and ending September 30, 2010, employees shall not be entitled to or be issued uniforms and safety shoes, unless an emergency, as determined by the City Manager; warrants issuance. However, the City agrees that no disciplinary action will be taken against employees for failing to wear unifoiuis if they are unfit for wear, and the City has not replaced them after reasonable notice to the respective department director that replacement is necessary. D. Vacation — (Article 37 of CBA) — Effective October 1, 2009, and ending September 30, 2010, employees shall not be entitled to or permitted to cash out any accrued vacation hours. This provision shall not prohibit employees from cashing out accrued vacation hours upon separation, All hours accrued above 200 ("excess vacation") shall not be forfeited, but shall be carried over to the 2010-2011 Fiscal Year. Furlough Days — Effective October 1, 2009, and ending September 30, 2010, employees shall take two (2) unpaid furlough days. The employee must request the furlough date(s) from the respective department director at -least 14 daysprior. to :theabsence,and the request -shall not be unreasonably denied. The two (2) furlough days shall not affect seniority for any purpose, including bid purposes and shall not be counted as "without pay" for pension purposes. F. Lay -Offs - The City identified a potential of two hundred ten (210) lay- offs of bargaining unit members. In consideration for the above concessions and efforts from both Parties, the City agrees NOT to lay-off more than eighty six (86) bargaining unit members; however, if the City lay-offs any of the 86 bargaining unit members, Local 1907 retains the right to grieve the lay-offs under the terms of the CBA, or to file any other action or appeal available, and this right is not forfeited or affected by entering into this MOU. The Parties agree that by entering into this MOU, they do not waive any arguments or defenses that they may make in any grievance or other proceeding regarding the up to 86 layoffs. NOW THEREFORE, this MOU shall become effective upon ratification by the Parties. ON BEHALF OF THE UNION Charlie Cox, President AFSCME, Local 1907 ON F OF THE CITY Pedro G. He City Manager dez, P.E. a��olocl CITY OF MIAMI DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF SALARY FORECAST AGENCY: -Code Enforcement Office ATTACHMENT 3 BUDGET FORM II PERIOD COVERING: April 1, 2011 - March 31, 2012 ErmI eeName ,. - Positiohfritle� ;:., Type of Employee Pt/Ft,,i . y Period r �_ Budgeted = PayPeriods Annual Gross Salary , _ .. Total Salary Per:Pay'Period . Percent of Salary Charged`-to..City Total Amount Charged to City • ;;a Enforcement April 1, 2011 - 4/1/11 - Mauricio Lezama Inspector FT March 31, 2012 3/31/12 $45,631.66 $1,901.32 100.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $3,490.82 $49,122.49 _. Enforcement April 1, 2011 - 4/1/11 - Brenda Meregildo. Inspector FT March 31, 2012 3/31/12 $61,262.24 $2,552.59 100.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $4,686.56 $65,948.80 Enforcement April 1, 2011 - 4/1/11 - Federico Fernandez Inspector FT March 31, 2012 3/31/12 $11,384.42 $474.35 20.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $870.91 $12,255.33 Enforcement April 1, 2011 - 4/1/11 - Andrea Aquino Inspector FT March 31, 2012 3/31/12 $51,684.26 $2,153.51 100.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $3,953.85 $55,638.10 Hedjbert Point Du Enforcement April 1, 2011 - 4/1/11 - Jour Inspector FT March 31, 2012 3/31/12 $45,631.66 $1,901.32 100.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $3,490.82 $49,122.49 Enforcement April 1, 2011 - 4/1/11 - Maria Tovar Inspector FT March 31, 2012 3/31/12 $71,128.30 $2,963.68 100.00% . Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $5,441.32 $76,569.62 Enforcement April 1, 2011 - 4/1/11 - Juky Lindo Inspector FT March 31, 2012 3/31/12 $56,922.11 $2,371.75 100.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $4,354.54 $61,276.65 Enforcement April 1, 2011 - 4/1/11 - Maria Zeinc Inspector FT March 31, 2012 3/31/12 $43,506.11 $1,812.75 100.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $3,328.22 $46,834.33 Enforcement April 1, 2011 - 4/1/11 - RaghubirSandhu Inspector FT March 31, 2012 3/31/12 $56,922.11 $2,371.75 100.00% Enforcement April 1, 2011 - 4/1/11 - FICA Taxes Inspector FT March 31, 2012 3/31/12 $4,354.54 $61,276.65 Luis Gomez, Jr. Position -,Title Enforcement Inspector Type of.y Employee' Pt/Ft - FT Perin April 1, 2011 - March 31, 2012 Budgeted=; Pay Periods 4/1/11 - 3/31/12 $56,922.11 Total Salary Per Pay Period $2,371.75 Percent of. Salary...' Charged to City 100.00% Total -Amount Charged to City FICA Taxes Jacqueline Palacios FICA Taxes Gustavo Merejildo FICA Taxes Jacqueline Gil FICA Taxes Magalie Jeancine Enforcement Inspector Enforcement Inspector Enforcement Inspector Enforcement Inspector Enforcement Inspector Enforcement Inspector Enforcement Inspector Enforcement Inspector FT FT FT FT FT FT FT FT April 1, 2011 - March 31, 2012 April 1, 2011 - March 31, 2012 April 1, 2011 - March 31, 2012 April 1, 2011 - March 31, 2012 April 1, 2011 - March 31, 2012 April 1, 2011 - March 31, 2012 April 1, 2011 - March 31, 2012 April 1, 2011 - March 31, 2012 4/1/11 - 3/31 /12 4/1/11 - 3/31 /12 4/1/11 - 3/31 /12 4/1/11 - 3/31 /12 4/1/11 3/31/12 4/1/11 - 3/31 /12 4/1/11 - 3/31 /12 4/1/11 - 3/31 /12 $4,354.54 $58,345.04 $4,463.40 $45,631.66 $3,490.82 $10,172.05 $778.16 $8,131.69 $2,431.04 $1,901.32 $423.84 . $338.82 100.00% 100.00% 17.00% 15.00% $61,276.65 $62,808.44 $49,122.49 $10,950.21 FICA Taxes Enforcement Inspector FT April 1, 2011 - March 31, 2012 4/1/11 - 3/31/12 $272 06 TOTALS: $670,606.00 $25,969.81 $8,403.75 $670,606.00 Special Revenue Adjustments SPECIAL REVENUE FUNDS General Special Revenue City Clerk Services Community Development Economic Development Fire Rescue Services Homeless Programs Law Enforcement Trust Fund Parks and Recreation Services Police Services Public Facilities Public Service Taxes Public Works Services Transportation & Transit Local Option Gas Tax Net/Code Enforcement Strategic Development Initiatives ARRA CD ARRA Police ARRA Other TOTAL SPECIAL REVENUE FUND Amended Budget $ 9,506,300 347,400 34,139,700 2,671,600 1,908,600 520,900 1,577,000 2,204,400 7,199,200 10,863,800 62,851,900 1,110, 500 11, 365, 600 6,587,400 777,600 1,132, 500 Adjustment $ 66,300 6,954,000 200,000 11,470,100 985,800 176,900 1,796,300 2,158,200 177,800 362,200 1,673,400 479,100 1,629,200 2,925,000 4,583,500 7,853,300 ATTACHMENT 4 APPROPRIATIONS $ 9,572,600 347,400 41, 093, 700 2,871,600 13,378,700 1,506,700 1,753,900 4,000,700 9,357,400 11,041,600 63,214,100 1,110,500 13,039,000 7,066,500 777,600 2,761,700 2,925,000 4,583,500 7,853,300 $ 154,764,400 $ 43,491,100 $ 198,255,500