HomeMy WebLinkAboutSubmital- Sept. 27 Changes MemoCITY OFML4Mi FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Members ofthe
City Commission
FROM: Johnny Martinez,
City Manager
DATE: September 27, 2012
SUBJECT: Second Budget Hearing Changes
Memo - FY2012-13 Preliminary Budget
The Preliminary Budget that was adopted on September 13, 2012 required some changes due
to the pendinQon'going labor negotiations. We have now completed those negotiations and
are inthe process ofobtaining membership ratification.
When the labor contracts are ratified by the members and approved by the City Commission,
the savings achieved from the negotiations a|ong'vvith reductions in operating expenses fully
close the $4Omillion gap that existed between revenue and expense inJuly.
This memorandum explains the changes made tothe Preliminary Budget that was approved by
the City Commission onSeptember 13`^,IO1Z.
Revenue
The September l]thFY 2012'13 Preliminary Budget for General Fund was $509.43 million. The
budget is revised to include a reduction of $6.215 million (see Table 1). Most of the revenue
changes are due to contract language inthe labor agreements. The most significant change is
in the accounting of the |AFF'ssecondary pension (Section 175) contribution ('$4.865 million).
The Preliminary Budget assumed that this contribution from the |AFF agreement would be
recorded as revenue. Instead, the |AFPs pension contribution will be made in the form of
credit (a reduction to the [ity's Pension expense) that will be realized upon payment of the
[ity's required contribution to the police and fire fighter pension fund in December ofZ012.
The other significant change in revenue is related to the elimination of the required payment to
the City from employees who have take-home cars ('$1.1 million).
The last revenue change was not related tothe labor issues. The Preliminary Budget assumed
that the City would receive $250,000 from the sale of the Miami top domain name. This was
approved by the City Commission earlier in the year, but delays in processing approvals from
third parties have put that revenue inquestion.
01
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Submitted into the public
record inconnection with
item BH' 11on 09'27'13
Priscilla A.Thompson
City Clerk
�
Honorable Mayor and
Members of the City Commission
Page 2 of 6
Table 1 (one) below summarizes the impact of the revenue changes to the General Fund
Budget.
TABLE 1
General Fund Revenue
Preliminary Budget
FY 2012-13
September 13th, 2012
Changes to
Preliminary
Budget
Proposed
Budget
Property Taxes
$217,631,200
$217,631,200
Franchise Fees and Other Taxes
$97,870,700
$97,870,700
Interest
$800,000
$800,000
Transfer -I n
$69,900
$69,900
Fines and Forfeitures
$4,400,200
$4,400,200
Intergovernmental Revenue
$49,849,600
($4,865,000)
$44,984,600
Licenses and Permits
$40,294,100
$40,294,100
Other Revenues
$10,511,200
($1,350,000)
$9,161,200
Charges for Services
$87,997,000
$87,997,000
Total Revenues
$509,423,900
($6,215,000)
$503,208,900
Expenditure changes impacting all Departments
Overall, the changes in the expense budget as a result of labor negotiations and other issues as
noted below also equal $6.215 million, thereby producing a balanced budget. Attachment 1
summarizes the expense adjustment for each department as a result of the changes related to
the labor agreement's computation for pension and health care. The General Fund (GF)
component of this computation is-$18.526 million. In addition to the GF portion, the allocation
of the aforementioned also impacts Special Revenue funds (-$647,500) and the Civilian
Investigative Panel (-$21,300).
In addition to the changes noted above and shown on Attachment 1, which impact every
department; various other changes needed to be made. Most of these changes are associated
with the resolution of the labor contracts. All other changes to the Preliminary Budget are
described below.
General Fund Departments (Summary of consolidated value changes in Attachment 2)
Capital Improvement Plan Administration
The September 13thFY 2012-13 Preliminary Budget is $4.025 million. It is recommended that
the budget be revised to include funding for a Construction Manager I position, which was
originally eliminated from the Proposed Budget ($21,900). This change is needed due to
increase work load and to comply with the labor agreement.
Submitted into the public
record in connection with
item BH. 11 on 09-27-12
Priscilla A. Thompson
City Clerk
Honorable Mayor and
Members ofthe City Commission
Page 3uf6
Information Technology
The September 13thFYZO13-lS Preliminary Budget |s$11.8J1 million. It is recommended that
the budget be amended to reflect a reduction of $569,200. The reduction includes the
elimination of a vacant Quality Assurance Manager ($86,100), salary attrition for vacant
positions of$1l9'9UO, telecommunications contract cost reduction of$Zl7'OOD, and $146,200
ofother operating expenses.
Neighborhood Enhancement Team INET)
The September 13th FYZ0l3'13 Preliminary Budget is $3.524 million. It is recommended that
the Service [enter Representative position that was eliminated in the Proposed Budget be
reinstated($SS,6U0). This change isneeded tocomply with the labor agreement.
Finance
The September 13'h FYZUl2-13 Preliminary Budget is$O7U3 million. It is recommended that
the funding that was added for professional services (accounting, treasury and financial
advisory) related tothe improvements needed in the Department ($gOO,Q0O)on September
13"' be reduced by$7S(l000. This amount shall be placed in Non -Departmental Reserve to be
used to improve processes in the preparation of the Comprehensive Annual Financial Reports'
Cash Management practices, training, and implementation of best practices 'including the Oracle
Financial software application, but only with prior City Commission approval and consent. The
$150\000 that remains in the Department's budget shall be allocated to personnel costs
associated with recruitment ofa Comptroller and other senior level accounting staff.
General Services Administration (GSA)
The September 13m FY 2012-13 Preliminary Budget is $Z1.l�] million. It is recommended that
$115'300 be reduced from the personnel budget by eliminating one Painter Supervisor and one
Account Clerk. Both of these positions are vacant.
Public Works
The September 13th FYZO1I'13 Preliminary Budget is$17.2O4million. It is recommended that
the budget be amended to reflect a personnel cost reduction of $6I,800, including the
elimination of a vacant Engineer Technician || ($44,600) position and anticipated attrition of
$18,200.
Solid Waste
The September 13 thFY 2012'13 Preliminary Budget is$27.Q19 million. It is recommended that
$396,lOObereduced from the personnel budget boaccount for projected attritionoavings. The
positions that will remain vacant are: three Waste Collection Operator |, three Waste Collection
Operator U, two Waste Collector -Garbage, and one Waste Collector -Trash. Additionally,
another two positions are projected to be recruited at a rate lower than currently budgeted.
Submitted into the public
record |nconnection with
item BH. 11on 09-27-12
Priscilla ^4'Thompson
City Clerk
Honorable Mayor arid
Members ofthe City Commission
Page 4 of 6
Fire Rescue
The September 1]~FYIU1I'13Preliminary Budget is$1US.]46million. |tisrecommended that
$1.8 million be added to personnel cost for one-time pay increase for officers that missed merit
and longevity increases from October 2010 through September 2013. Additionally, salary
attrition for remaining vacant positions is increased by $500,000 (reducing salary), and
overtime expense is increased by $500,000to allow for the anticipated cost of officer training
being paid while on duty and or at overtime rate when off -duty. In addition, it is recommended
that the elimination of the subsidy tothe Retiree Health Plan ($325,000) be continued as in FY
ZO1l'lZ.
The Fine Rescue Department has been awarded a Staffing for Adequate Fire and Emergency
Response (SAFER) grant that provides$IS46 million to be spent on staffing over two calendar
years (will impact three fiscal years\. The Department intends tohire J5Fire Fighters with this
grant starting in March or April I013. Since these positions were budgeted in the Preliminary
Budget, use of the grant for this purpose frees up funds ($911,500). Note that the grant will
expire in two years, and the expense for these officers will need to be put back onto the
General Fund. Therefore, it is recommended that these one-time funds be moved to capital to
fund one-time capital needs inthe Fire Rescue Department.
Police
The September 13thFY 2012'13 Preliminary Budget is $167.2 million. It is recommended that
salary be reduced by$1.175 million due to increased salary attrition associated with the
recruitment of lieutenants and $1.55 million in operating expenditures.
Parks and Recreation
The September 13thFY201I'13 Preliminary Budget is$29.8Z million. It is recommended that
the budget be amended to reflect personnel cost reduction of $244,900, including the
elimination ofavacant Deputy Director, a Pool Supervisor, a Lifeguard, and a Recreation Aide
position.
Public Facilities
The September 13 mFY 2012-13 Preliminary Budget is$5.966 million. It is recommended that
the department take over the management of the Black Officer Precinct Museum Facility
effective January 1, 2013. This function will require a funding allocation of $11,300 for
operating expenses.
R|skMManaizernmn1
The September l]th FY 2012'13 Preliminary Budget |s$l3.666 million. It is recommended that
the budget be amended to reflect personnel cost reduction of $43,100, including the
elimination ofavacant Group Insurance Assistant position.
Submitted into the public
record |nconnection with
item OH. 11mn 09'27'12
Priscilla A.Thompson
City Clerk
Honorable Mayor and
Members cfthe City Commission
Page 5or6
Non -Departmental Accounts (N0Al
The NDA appropriations changed due to the reversal of the assumed savings realized in pension
($18.973 million) and Health Insurance ($1.2 million) related to the labor agreements as
described above.
To achieve the operational cost savings needed to balance the Preliminary Budget reflective of
the labor agreements, these additional reductions are recommended: eliminate the remaining
increase that was allocated to increase fund balance ($2.343 million); reduce the allocation for
cost of Legal Services by $I00'000; reduce the transfer to the Civilian Investigative Panel by
$205'200(this is the fund balance that remained at the end ofFYZO1Q'll); reduce the transfer
to the Citywide Capital fund by $784'100; reduce the transfer to Capital related to Storm -Water
Utility related activity by$3OO,000; reduce $342,500 from the Police Vehicle purchase fund to
match the reduction in the labor agreement; reduce the reserve that was set aside for what
was an anticipated Charter Amendment election ($150'000); and reduce the pension and
health contribution to the Special Revenue funds ($944,400) largely as a result of the labor
changes and the redistribution of the savings throughout the City departments.
As noted in the Fire Rescue Department budget, it is recommended that the General Fund cost
reduction associated with the SAFER grant beadded tothe amount to betransferred tocapital
funds. These funds will be for the use of Fire Rescue Department infrastructure needs
($911,500).
Furthermore, as noted in the Finance Department section above, a reserve of $750,000 is
created to cover possible costs associated with future improvements.
Special Revenue Funds (Summary values |nAttachment 3)
Strategic Development Initiatives (SDI)
The September 13 1hFY20I2'13 Preliminary Budget is$Z.7O3 million. It isrecommended that
the budget beincreased by$1,15Z,7DD. This change )sprimarily due toincreased funding from
the South Florida Workforce grant for the One Stop Workforce Career Center at Lindsey
Hopkins ($941,400). Additionally, the Truancy Reduction Man Program Grant awarded by the
Chi|dren'sTrust was also higher than anticipated in the Preliminary Budget. It is increasing by
$211,300.
The aforementioned grants are administered through the Grants department. Its position
count is being revised to include four (4) more positions to complete the grant funded staff of
the One Stop Workforce Career Center at the Lindsey Hopkins education facility, which were
defined after the first budget hearing. The funding for these positions is included in the above
preliminary budget.
Submitted into the public
record inconnection with
item 13H.1lom 09'27-12
Priscilla A. Thompson
Honorable Mayor and
Members ofthe City Commission
Page 6 of 6
Police Services
The September 13th FY 3012'13 Preliminary Budget is$l5.]S8 million. It is recommended that
the budget be revised to include anticipated revenue increase from the Special Taxing District
Pnu8Tanms($11O,20O).
Internal Services Fund
The September 13thFYZO1Z'13Preliminary Budget is$138.S46million. The allocation changes
described in the Expenditure changes that impact all Departments section above reduce this
fund byt18.195million. This reduction isrelated tothe changes inthe labor agreements.
Revised Position Counts bv Department
The changes noted above caused the position counts* in various departments to change.
Attachment 4shows the changes inposition count for all Departments.
Attachments:
Submitted into the public
record /nconnection with
item BN'11mm 09'27'12
Priscilla A.Thompson
City Clerk
Attachment 1
Department
Pension Related
Reduction
Life and Health
Related Reduction
Mayor
Commissioners
City Clerk
City Attorney
Civil Service
City Manager
Neighborhood Enhancement Team (NET)
Code Compliance
Finance
Human Resources
Fire -Rescue
Police
Public Works
Management and Budget
Information Technology
Purchasing
Auditor General
Parks and Recreation
Planning and Zoning
Grants Administration
Communications
CIP and Transportation
Equal Opportunity and Diversity Programs
Solid Waste
Public Facilities
Building
GSA
Risk Management
(15,700)
(46,700)
(36,200)
(112,300)
(10,200)
(45,000)
(68,600)
(145,100)
(177,300)
(80,700)
(5,902,400)
(8,587,600)
(191,400)
(38,000)
(184,600)
(34,600)
(21,200)
(388,700)
(116,100)
(23,000)
(13,100)
(120,500)
(5,700)
(375,200)
(86,300)
(186,600)
(330,800)
(47,700)
(4,800)
(14,500)
(5,300)
(19,800)
(1,500)
(10,900)
(14,900)
(28,600)
(32,900)
(14,500)
(367,400)
(164,300)
(41,700)
(6,300)
(32,900)
(6,800)
(4,400)
(86,000)
(18,900)
(4,400)
(2,900)
(20,300)
(1,500)
(104,700)
(17,800)
(30,000)
(67,400)
(9,600)
Total
(17,391,300)
(1,135,000)
Submitted into the public
record in connection with
item BH. 11 on 09-27-12
Priscilla A. Thompson
City Clerk
Attachment I cont.
Special Revenue Fund
Pension Related
Reduction
Life and Health
Related Reduction
City Clerk
(2'100)
/600\
Neighborhood Enhancement Team (NET)
(14,300)
(3,400)
Fire -Rescue
(55,600)
(5,400)
Police
(316,300)
(13,200)
Parks and Recreation
(8,700)
(1'900)
Grants Administration
(12,700)
(2'900)
[|Pand Transportation
(11,100)
(1,700)
Public Facilities
(1I,400)
(2,100)
Community and Economic Development
(154'200)
(38,900)
Agency Fund
Pension Related
Reduction
Life and Health
Related Reduction
Civilian Investigative Panel
(16,900)
(4'400)
Submitted into the public
record \nconnection with
item 8H. 11mn 09'27'12
Priscilla A. Thompson
City Clerk
Attachment 2
Auditor General
Board of Commissioners
Building
CIP Administration
City Clerk
City Manager
Civil Service
Code Compliance
Communications
Equal Opportunity and Diversity Programs
Finance
Fire -Rescue
Grants Administration
GSA
Human Resources
Information Technology
Law
Management and Budget
Mayor
NDA
Neighborhood Enhancement Team (NET)
Parks and Recreation
Pensions
Planning and Zoning
Police,
Public Facilities
Public Works
Purchasing
Risk Management
Solid Waste
Account Totals - Change Memo Adjustments
General Fund
FY 2012-13
Proposed Budget
$1,097,000
$2,477,300
$7,961,500
$3,904,900
$1,497,000
$2,790,700
$395,400
$4,591,000
$616,300
$321,400
$7,893,400
$105,346,100
$860,500
$21,133,000
$3,148,000
511,661,000
$5,900,900
$1,579,700
$903,900
$30,294,500
$3,523,700
$29,820,000
$657,600
54,818,800
$167,199,900
$5,898,200
$17,203,600
$1,481,700
513,665,900
$26,386,100
Sept. 13
Adjustments
$0
$0
(5112,200)
$120,000
$0
$112,200
$10,000
$0
$324,600
$0
$900,000
$0
$0
($9,600)
$35,000
$159,800
$0
50
$0
$21,444,500
$0
$0
$0
FY 2012-13
Preliminary Budget
$1,097,000
$2,477,300
$7,849,300
$4,024,900
$1,497,000
$2,902,900
5405,400
$4,591,000
$940,900
$321,400
$8,703,400
5105,346,100
5860,500
$21,123,400
$3,183,000
$11,820,800
$5,900,900
$1,579,700
5904,000
$51,739,000
$3,523,700
$29,820,000
$657,600
$0 $4,818,800
$0 5167,199,900
$68,200
50
$0
$0
$1,432,400
$5,966,400
$17,203,600
$1,481,700
$13,665,900
$27,818,500
Sept. 27
Adjustments
($25,600)
($61,200)
($216,600)
($118,900)
($41,500)
($55,900)
($11,700)
(5173,700)
(516,000)
($7,200)
(5960,200)
($5,706,300)
($27,400)
($513,500)
($95,200)
($786,700)
($132,100)
($44,300)
($20,500)
$16,565,300
($27,900)
($719,60o)
so
($135,000)
($11,476,900)
($92,800)
($295,900)
($41,400)
($100,400)
($876,000)
FY 2012-13
Proposed Budget
$1,071,400
$2,416,100
$7,632,700
$3,906,000
$1,455,500
$2,847,000
$393,700
$4,417,300
5924,900
$314,200
$7, 743,200
$99,639,800
$833,100
$20,609,900
$3,087,800
$11,034,100
$5,768,800
$1,535,400
$883,500
$68,304,300
$3,495,700
$29,100,400
$657,600
$4,663,800
$155,723,000
$5,873,600
$16,907,700
$1,440,300
$13,565,500
$26,942,500
General Fund Total: $484,939,000
$24,484,900 $509,424,000
(56,215,100)
$503,208,800
*** Report End ***
Submitted into the public
record in connection with
item BH. 11 on 09-27-12
Priscilla A. Thompson
City Clerk
Attachment 3
ARRA - Others
ARRA - Police
City Clerk Services
Community and Economic Development
Economic Development & Planning Service
Fire Rescue Services
General Special Revenue
Homeless
Law Enforcement Trust Fund (IETF)
Local Option Gas Tax (LOGT)
Miami Ballpark Parking Facilities
NET and Code
Parks and Recreation Services
Police Services
Public Facilities Services
Public Service Tax
Public Works Services
Strategic Initiatives
Transportation and Transit
Account Totals - Change Memo Adjustments
Special Revenue Funds
FY 2012-13
Proposed Budget
$303,800
$11,707,600
$480,500
$49,007,400
$5,031,500
$27,001,000
$1,288,200
$2,259,400
$1,509,900
$6,465,200
55,280,000
51,879,800
53454,700
$15,358,800
$10,385,500
$56,137,400
52,900,900
$3,064,800
$12,464,400
($6,465,200)
$75,800
50
SO
$0
$0
(556,137,400)
$0
Sept. 13
Adjustments
SO
50
$0
FY 2012-13
Preliminary Budget
$303,800
$11,707,600
$480,500
S362,000 $49,369,400
$0 $5,031,500
50 527,001,000
SO $1,288,200
$0 $2,259,400
$0 $1,509,900
$0
$5,355,800
$1,879,800
$3,454,700
$15,358,800
$10,385,500
$0
$2,900,900
(5362,000) $2,702,800
$699,300 $13,163,700
Sept 27
Adjustments
($6,300)
($258,400)
($2,700)
($183,100)
$0
(561,000)
$0
($17,700)
$0
$0
SO
SO
($10,600)
$47400
($14,500)
$0
SO
$1,143,400
($12,800)
FY 2012-13
Proposed Budget
$297,500
$11,449,200
$477,800
549,186,300
$5,031,500
$26,940,000
$1,288,200
$2,241,700
$1,509,900
SO
$5,355,800
$1,879,800
$3,444,100
$15,405,900
$10,371,000
50
$2,900,900
$3,846,200
S13,150,900
General Fund Total: $215,980,800 (561,827,500) $154,153,300
$673,400
$154,776,700
*** Report End ***
Submitted into the public
record in connection with
item BH. 11 on 09-27-12
Priscilla A. Thompson
City Clerk
Attachment 4
Position Count by Department
FY 2.011-12. N i'W Tram, IN TrArr,, c)rlT E.Iiiniate12 ProoinA.-1 P!' 201.2,-13
Auditor General 9 9
Building 62 10 (1) 71
CIP and Transportation 45 1 1 47
City Clerk 12 1 13
City Manager 22 2 3 (1) 26
Civil Service 3 3
Code Compliance 59 (6) (1) 52
Commissioners 30 30
Communications 6 2 3 (1) 10
Community Development 60 (17) 43
Equal Opportunity and Diversity Programs 3 3
Finance 68 68
Fire -Rescue 781 78/
Grants Administration 15 31 (1) 45
GSA 139 (3) (3) 133
Human Resources 30 30
Information Technology 69 (7) 62
Law 41 41
Management and Budget 13 (1) 12
Mayor 11 1 (1) 11
Neighborhood Enhancement Teams (NET) 37 1 38
Parks and Recreation 182 2 1 (3) (4) 178
Planning and Zoning 39 1 40
Police 1502 (1) 1501
Public Facilities 41 1 (1) 41
Public Works 86 (1) 85
Purchasing 14 14
Risk Management 20 (1) 19
Solid Waste 217 16 224
3616 52 16 -1.6 -38 3631)
Submitted into the public
record In connection with
item BH. 11 on 09-27-12
Priscilla A. Thompson
City Clerk