HomeMy WebLinkAboutMemo - FY 2013-14 Proposed BudgetCITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable Members of the
City Commission
FROM: Johnny
feW City Manager
DATE: September 3, 2013
SUBJECT: First Budget Hearing Changes
Memo — FY 2013-14 Proposed Budget
The preparation of the City of Miami's annual operating budget is a dynamic process that often
involves changes in information and policy, both of which ultimately affect the final adopted
budget. This memorandum is prepared to provide the Commission with the most up-to-date
information, to offer proposed changes for consideration of both revenues and expenses
between the July 16, 2013 Proposed Budget and the current date, and to present attachments
that reflect these changes.
Revenue
The FY 2013-14 Proposed Budget for General Fund revenue as of July 16th, 2013 was $523.59
million. It is proposed that the budget be revised to $524.01 to include the following
adjustments: (See Table 1 below).
TABLE 1
Proposed Budget
FY 2013-14
Changes to
Preliminary
General Fund Revenue
July 16th, 2013
Proposed Budget
Budget
Property Taxes
$225,733,400
$225,733,400
Franchise Fees and Other
Taxes
$99,191,900
$99,191,900
Interest
$1,000,000
$1,000,000
Fines and Forfeitures
$3,519,200
$500,000
$4,019,200
Intergovernmental Revenue
$47,112,200
$47,112,200
Licenses and Permits
$37,743,500
($310,000)
$37,433,500
Other Revenues
$10,738,100
$280,000
$11,018,100
Charges for Services
$98,552,300
($50,000)
$98,502,300
Total Revenues
$523,590,600
$420,000
$524,010,600
Honorable Mayor and
Members of the City Commission
Page 2 of 3
The majority of these revenue adjustments are based on recommendations provided at the July
19th, 2013 City of Miami Revenue Estimating Conference as required by the Financial Integrity
Principles Ordinance. The adjustments reflect the latest available information in terms of year-
to-date revenue collections and projections. The net effect of the Committee's changes is a
proposed increase in revenue of $420,000. The Committee Chair's letter is attached for your
review (Attachment 1).
General Fund Departmental Changes (Summary values in Attachment 2)
Finance
The FY 2013-14 Proposed Budget as of July 16th, 2013 is $7.91 million. It is recommended that
the budget be revised to $8.01 million to address a recurring audit finding related to capital
asset management. The external auditing firm has recommended that the Finance Department
assume all accounting functions of capital assets. As such the administration is recommending
that, as of January 2014, two positions will be created in the Finance Department which will
then assume these functions from CIP Administration ($104,600).
CIP Administration
The FY 2013-14 Proposed Budget as of July 16th, 2013 is $5.18 million. It is recommended that
the budget be revised to $5.16 million to include the elimination of two positions associated
with the change of responsibility for accounting functions of capital assets as noted above. The
salary budgets are recommended to be adjusted to reflect the 77.5 percent project chargeback
amount ($23,600).
Office of Management and Budget
The FY 2013-14 Proposed Budget as of July 16th, 2013 is $1.67 million. It is recommended that
the budget be revised to $1.76 million to include $85,000 in additional operating expenses for
public engagement activities associated with the development of the citywide strategic plan
(such as focus group meetings and citizen surveys) and for financial management training of
budget staff.
General Services Administration
The FY 2013-14 Proposed Budget as of July 16th, 2013 is $21.267 million. It is recommended
that the budget be revised to $21.260 million to include the transfer of Stormwater Utility Fee
($7,100) to Public Facilities.
Honorable Mayor and
Members of the City Commission
Page 3of3
Public Facilities
The FY 2013-14 Proposed Budget as of July 16th, 2013 is $6.246 million. It is recommended
that the budget be revised to $6.253 million to include the transfer of Stormwater Utility Fee
($7,100) from GSA. Additionally, staff will monitor expenditures related to the Caribbean
Marketplace and the Black Precinct which are expected to open in the Fall of 2013 and
additional funding, if needed, will be provided at the mid -year budget amendment as well as
additional revenues.
Revised Position Counts by Department
The changes noted above caused the position counts in various departments to change.
Attachment 3 shows the changes in position count for all Departments.
Attachments:
ATTACHMENT I
City at tic llll, jYtoribt3
CHRISTOPI-HER ROSE
13udger Director
August 27, 2013
The Honorable Mayor, Members of the City Commission
and the City Manager
3500 Pan American Drive
Miami, Florida 33133
RE: Fiscal Year 2013-2014 Proposed Operating Budget Estimating Conference Recommendations
In accordance with the City of Miami (City) Financial Integrity Ordinance (Ordinance), the City
conducted an annual Budget Estimating Conference on July 19, 2013 to review the assumptions
used in developing the Fiscal Year 2013-2014 Proposed Operating Budget. As required by the
Ordinance, a Budget Estimating Committee (Committee) was formed and consisted of at least one
principal staff member from the City's Finance Department and Office of Management & Budget,
and also included a minimum of two outside professionals with public financial and accounting
experience.
The members of this year's conference were as follows:
• Dr. Terry Murphy, Government Relations Consultant — President, Public Affairs Concepts
• Barbara Galvez, Operating Budget Coordinator — Office of Management & Budget, Miami -
Dade County
• Jose Fernandez, Director — Finance Department, City of Miami
• Leon Michel, Deputy Director — Office of Management & Budget , City of Miami
Additional support members included:
• Daniel J. Alfonso, CFO/Assistant City Manager — Office of the City Manager, City of Miami
• Erica Paschal, Assistant Director — Finance Department, City of Miami
• Chris Rose, Deputy Director— Department of Solid Waste Management, Miami -Dade County
Below please find a summary of the comments and recommendations made by the committee:
• The Committee recommends a positive adjustment of $500K to Fines and Forfeitures. The
adjustment would be as a result of increasing the FY14 proposed budgeted revenue
collections from line item Judgments and Fines (#451000) of $3.00M to $3.50M. It was noted
that historically actual collections versus final budgeted amounts have a favorable variance at
year end. Additionally, current year to date collections are doing better than expected as
result of an increase from Police fines collections.
OFFICE OF MANAGEMENT & 13U1)GE f
444 S.W. 2 d Avenue. 5 Floor/Miami, }'I.: 33130
FY14 Budget Estimating Conference Recommendations
August 27, 2013
Page 2 of 2
• The Committee reaffirmed a prior recommendation to split out the sources that made up State
Shared Revenues. The half cent state sales tax and municipal revenue sharing monies were
previously lumped into one category and the City is now tracking them separately. As said
split would allow management to properly track and account for larger collections. The
Committee further suggests that City could benefit from revising the current chart of accounts
and especially creating specific accounts to track collections from murals, parking surcharge,
and casinos.
• The Committee concurs with management that aggregating certain accounts that typically
generate smaller amounts (less than $100K) is acceptable.
• The Committee recommends a negative adjustment of $310K to Licenses and
Permits. Although a recent expansion to mural boundaries could generate additional
revenues for the City, the adjustment would take into account the possibility of policy
changes/various challenges to future mural revenue collections. The reduction would be as a
result of reducing FY14 proposed budgeted revenue collections from murals (included in the
Planning and Zoning line item #429000) of $5.81M to $5.50M.
• The Committee recommends that the City should focus on increasing the $5.00M minimum
requirement in the Emergency Contingency Reserve (ECR). Specifically, if there is a surplus
at fiscal year-end, those savings should be considered for the ECR versus using those
savings to create a future recurring expenditure or even a one-time expenditure. It should be a
goal of the City to ultimately limit the potential use of savings on discretionary things.
• The Committee recommends an overall positive adjustment of $280K to Other Revenue. The
adjustment would be as a result of increasing the FY14 proposed budgeted revenue
collections from the Fire line item (#489000) of $1.42M to $1.60M and the Finance line item
(#469000) of $1.30M to $1.40M.
• The Committee recommends a negative adjustment of $50K to Charges for Services. The
adjustment would be as a result of reducing the FY14 proposed budgeted revenue collections
from the Emergency Service Fee line item (#442400) of $7.65M to $7.60M.
• The Committee made suggestions to the layout of various reports that were distributed during
the Estimating Conference which would allow the user to more easily navigate through the
information presented.
The Committee appreciates the opportunity to participate in this very important process. It is hoped
that the comments and recommendations indicated above will help the City of Miami achieve and
maintain its financial and strategic goals. The Committee would like to commend the City's budget
staff and particular its director for all of the hard work, sound budget assumptions and the strategic
approach utilized in the budget process.
The Budget Estimating Committee
OFFICE C)F M;\N 1GEMI N1' & BUDGET
444 S.W. 2" Avenue. 511' Floor/Miami. FT. 33130
Account Totals - Change Memo Adjustments
General Fund
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
Neighborhood Enhancement Team (NET)
Parks and Recreation
Planning and Zoning
Police
Procurement
Public Facilities
Public Works
Risk Management
Solid Waste
NDA
Transfers -Out
Proposed
2013-14 Budget (v1)
$ 1,078,200
2,489,100
9,082,500
5,180,800
1,508,500
2,924,700
370,900
4,533,700
939,100
329,400
7,906,200
99,584,700
931,100
21,267,300
3,566,700
8,544,100
6,104,600
1,670,600
957,200
3,376,000
29,331,000
5,820,800
167,298,400
1,567,000
6,246,300
16,376,400
13,464,200
27,593,500
33,449,300
40,098,300
ATTACHMENT 2
Change Memo 1 Proposed
Adjustment 2013-14 Budget (v2)
$ 1,078,200
2,489,100
9,082,500
(23,600) 5,157,200
1,508,500
2,924,700
370,900
4,533,700
939,100
329,400
104,600 8,010,800
99,584,700
931,100
(7,100) 21,260,200
3,566,700
8,544,100
6,104,600
85,000 1,755,600
957,200
3,376,000
29,331,000
5,820,800
167,298,400
1,567,000
7,100 6,253,400
16,376,400
13,464,200
27,593,500
33,449,300
254,000 40,352,300
Total $ 523,590,600 $ 420,000 $ 524,010,600
Proposed Position Count by Department ATTACHMENT 3
FY 2013-14 Proposed Position Count by Department
Prior Total New Elimination New Total
Auditor General 9 9
Building 78 78
CIP and Transportation 47 (2) 45
City Clerk 13 13
City Manager 24 24
Civil Service 3 3
Code Compliance 52 52
Commissioners 30 30
Communications 10 10
Community Development 40 40
Equal Opportunity and Diversity Programs 3 3
Finance 68 2 70
Fire -Rescue 783 783
Grants Administration 43 43
GSA 133 133
Human Resources 34 34
Information Technology 62 62
Law 41 41
Management and Budget 13 13
Mayor 11 11
Neighborhood Enhancement Teams (NET) 38 38
Parks and Recreation 192 192
Planning and Zoning 48 48
Police 1,530 1,530
Public Facilities 42 42
Public Works 94 94
Procurement 15 15
Risk Management 19 19
Solid Waste 226 226
Total 3,701 2 (2) 3,701