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Home My WebLink AboutCity Manager Second Budget Hearing Changes Memo-FY 2013-14 BudgetCITY OFK4IAMiFLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Members ofthe City Commission FRO �— ban|e . Acting City Mana DATE: September 24, 2013 SUBJECT: Second Budget Hearing Changes Memo — FY2U13'14Budget It has been said that the most important policy document that an elected body passes each year isthe annual budget. This year isnoexception. The Mayor and the Administration have endeavored to serve the City Commission by providing the best information possible for the decisions needed to adopt o Final Budget for the City ofMiami. The budget proposal before you today is not merely a series ofincremental changes, but strategic and intentional plan. That is, this proposal takes a long-term approach to the structural, operational, and financial health ofthe City. This memorandum (sprepared tnprovide the Commission with the most up- to-date information, to offer proposed changes for consideration of both revenues and expenses that if approved will amend the Preliminary Budget adopted at the September 12. Z013First Budget Hearing, and topresent attachments that reflect these changes. The Mayor and Administration heard and understood the message sent by our residents and employees at the First Budget Hearing. Additionally, we acknowledge the direction of the Commission and have identified a total of $9 million of options for consideration. The Mayor and the Administration are recommending a plan for Police Service enhancements totaling $2.44 million. When implemented, it will result in an additional SU officers patrolling our City streets in FY 2013-14 (including the 25 officers in the July Proposal). This can be accomplished with minimal risk and disruption to the Oty'sFY 2013'14 Preliminary Budget that was approved onSeptember 13'3O1S. The Police Department Budget will beincreased by $1.13 million (officers and civilians) and an additional $170,000 for police equipment and $300,000 for police vehicles to be allocated in special revenues; that is in addition to the $2.04 million that was previously allocated for police cars (See Attachment 1). We have also identified $6,58 million of further options, as Directed by the Commission to total $9 million, but are not recommending that they be enacted, These options would require �4_ 0 C?.7�16 _ Honorable Mayor and Members of the City Commission Page 2of& service reductions, positions eliminations, and likely rollback or layoff actions. These options are detailed in Attachment 2. In addition to the changes noted above, two other significant changes are recommended. In the Public Facilities Department, it is recommended that additional revenue and expense be added to allow for additional staffing and maintenance at the Little Haiti Cultural Center and the Black Police Precinct and Courthouse Museum; funding for derelict vessel removal in the City's waterways; and a technical payment associated with the Parrot Jungle lease. Furthermore, in the Building Department, it is recommended that additional revenue and expense be added to allow for inspections and plans review after normal business hours. The above noted changes, along with other minor changes are summarized below and detailed in the various attachments. General Fund Revenue Changes The September 12th, FY 2013-14 Preliminary Budget was $524,01 million. It is recommended that the budget be increased to $524.90 million to include $212,000 in rents and royalties, $480,000 from the Police Department's Vehicle Impound Program, and an additional $200,000 in line item Licenses and Permits in the Building Departments (See Table 1 below). TABLE 1 Preliminary Budget FY 2013-14 Changes to Preliminary General Fund Revenue Sep 12"', 2013 Budget Memo Proposed Budget Property Taxes $225,733,400 $225,733,400 Franchise Fees and Other Taxes 599,191,900 $99,191,900 Interest $1,000,000 $1,000,000 Fines and Forfeitures $4,019,200 $4,019,200 Intergovernmental Revenue $47,112,200 $47,112,200 Licenses and Permits $37,433,500 $200,000 537,633,500 Other Revenues $11,018,100 $11,018,100 Charges for Services 598,502,300 $692,000 $99,194,300 Total Revenues $524,010,600 $892,000 $524,902,600 Honorable Mayor and Members ofthe City Commission Page 3 of 6 General Fund Departmental Expenditure Changes (Summary mfvalues is in Attachment 4) Commissioners The September 12 mFY2U13'l4Preliminary Budget was $2/49miUinn. bisrecommended that afuUtimeequivn|ent(FTE)posibonbeaddedtotheTab|eofOrganizaUonofthe Commissioners to serve in the Office of District 2 with no change to the budget. Building The September 12 mFY2013'14Preliminary Budget was $9.O8million. Itbrecommended that the budget beincreased by $2OO,OOOUn$9.28million toinclude additional overtime expenditures for inspection and plans review ofprojects after hours. These expenses are offset byequal revenues asnoted inthe revenue section above. Communications The September 12 mFY2O13'14Preliminary Budget was $93U1OO. |tisrecommended that the budget beincreased by$633,7OOto$1.57million toinclude the transfer of the Protocol Office and the Print Shop section from GSA toCommunications. This has noimpact onthe overall budget. General Services Administration (GSA) The September l2w FY2O13'14Preliminary Budget was $21.26million. Itisrecommended that the budget be decreased by $633,700 to $20.63 million to include the transfer as noted above. Parks and Recreation The September 1Im FYZO13'14Preliminary Budget was $7S.33million. It isrecommended that the budget be decreased to $29.14 million to include the estimated savings in utility services to reflect historical expenditure levels. Honorable Mayor and Members ofthe City Commission Page 4uf6 The September 12th FY2O13'14Preliminary Budget was $167.35million. }Cisrecommended that the budget be increased by $1.13 million to $168.48 million to include funding for an additional 1Opolice officers and 1Ocivilian positions (see Attachment 1). Public Facilities The September lZ`^FY2O13'14Preliminary Budget was $6.3Smillion. |tisrecommended that the budget be increased to $6'47 million to include additional expenditures as stated previously in this memo and the elimination of the position Lease Compliance Manager (see Attachrnent3). Risk Management The September 12 1hFY2013-14Preliminary Budget was $13.46million. Itbrecommended that the budget be decreased to$13.96 million to include estimated savings in Insurance based on historical trend analysis and realistic levels mfexpectation. Non+Departmenta|Acmmwnts [NDA) The September 13"'FY2O13-14Preliminary Budget was $33.45mi||ion. (t|srecommended that the budget beincreased to$33J9million Coinclude: the reduction ofthe Elections Reserve in the amount of ($500,000) and establishment of a reserve in the amount of $836,800 for Police use tobedetermined next fiscal year. Transfers -Out The September 12,'FY201]'14Preliminary Budget was $4O.2Smillion. |t|srecommended that the budget be decreased to $39.95 million to include the reduction of fund needed in the Public Facilities related tothe Knight Center inthe amount uf$3O4,OOO. Honorable Mayor and Members ofthe City Commission Page 5of6 Special Revenue Expenditure Changes (Summary of values is in Attachment S) Solid Waste Recycling Educational Trust Fund The Solid Waste Recycling Educational Trust Fund was set up several years ago for scholarships Uochildren ofcertain city employees. This fund iscurrently set upinthe Special Revenue Public Works Services Fund. It is recommended that the budget be amended to move these funds from the Public Works Services Fund to the newly created fund "Solid Waste Recycling Educational Trust Fund" as recommended by the internal Auditor, in the amount of$1.26 Public Works Services As noted in the paragraph above, it is recommended that the budget be amended to move funds from the Public Works Services Fund to the newly created fund Solid Waste Recycling Educational Trust Funding in the amount of$I.26 miUiun, reducing this special revenue fund from $3.66 million to $2.4 million. American Recovery and Reinvestment Act Grant Itisrecommended that thebudoetqftheARRA—OtheoSpecim|RevenueFundbwamenJedto include the fund balance of$G4,7UO of the Building Retrofit project, funded by the GrantDE- EEO000778, which was awarded by the Energy Effidency8k Conservation Block Grant Program (EECBG) of the U.S. Department of Energy' No budget was initially proposed for FY 20130'14 because the grant expiration date was September 11' 2013. As the grantor agreed to extend seven (7) additional months the current grant period of performance, the corresponding funds need to be appropriated. The use of this fund balance implies the addition of a full time equivalent /FTE\position currently active inthe Green Lab for FY2O1I'13. Police Services The September 12m FY2U13'14 Preliminary Budget is $21 million. It is recommended that the budget be increased to $21.44 million to include an additional $440,000 in Fund Balance Honorable Mayor and Members ofthe City Commission Page 6uf6 rollover for Ultra Festiva|($350,0D)O) and Burn Notice k$90000, to be added tothe $3O,000 included in the Proposed Budget) not expended in FY 2012-13. Revised Position Counts bwDepartment The changes noted above caused the position counts in various departments to change. Attachment 6shows the changes inposition count for all Departments. Attachment 1: Recommendations to Add More Officers tmPatrol Duties Included fmthe Budget Book 2SNew Officers (for 9months) .............................................................. $l/J4O,00O (in the general fund, the remainder in the COPS grant) Recommended Now 1OMore New Officers (for 9months) .................................................... $1,129'7OD 1SOfficers Reassigned .......................................... ............... ........... ............ ...... $O 1DNew Civilians (for 9months) ........................... ..................................... $475,DQO For Police use tnbedetermined next fiscal year ....................... .............. $g]6,80D TetaV$3,441,500 50 More Officers patrolling in FY Z013-14 than in FY 2012-13 Tm8mFunded Through New Revenues associated with the Vehicle Impoundment Program ....... $480,OGO Reducing the Elections Reserve inNon-Departmental ......... ................... $S000OO (from $79S,000to$295,O0O) Reducing Liability Costs |nRisk Management ........................................... $SDO,OOO (from $8.O3Smillion tn$Q.S]5million) Reducing Utilities costs inthe Parks Department $187,500 (from $J^SD9/4OOto$3'3J1,BOO10reflect historical usage) Reducing Costs in Public Facilities Associated with the Knight Center $304,000 (from $2.638million to$2.334million toreflect the current debt need) Using Money inSpecial Revenue $47O,00] ($35O'OOOfrom the Ultra Festival and $12{\OUOfrom Burn Notice payments) Attachment 2: Additional Budget Reduction Options Identified (Not Recommended) Total Additional Reductions: $6.58 million - - 44 full-time positions - 46 part-time positions I Fire Aeicue Parks & Recreation Information Technology udget Reduction "tittainterianOe • Eliminate Career Opportunity Program • Eliminate over 30 FTEs and restructure service provision • Eliminate aid to FOCAL and the Tacolcy Center Position Impact Service 1 Admini ( FT / PT) ar equipment replacement delayed for at least another year $1,800,000 12 / 20.3 • Reduced service levels in after school programs and summer programs • Closing two seasonal pools • Needed repairs to park and recreation facilities delayed for at least another year • Eliminate Career Opportunity Program ,000 • FedtiCP, 'funding for various public workS services, as:Pt °hole fiUinq and tot clearing • • Reduce funding for professional contracts $480,000 0 / 0 • Reduced quali(y ot service to resden1s: • Stoli'verfilling of pot holes, trash holes Inability overgrown • Reduced external support for key information systems e Admini: ''>ervices ration Neighborhood • Eliminate 17 Neighborhood Service $306,000 Enhancement Teams I Solid Waste Nt$1 t on lrnpact Service t Ad F`IPT) Slower turneround time on vehicle repairs and other service requests - daily vehicle counts will likely notbe met in Police, Solid Waste, and other departments 0 / 17 • Reduced cleaning and beautification Worker positions services in neighborhoods Eliminate four positions $2 ,C}Ot3 r " _ 4 '0 iovr "r inspections process anYraci� log crequests • Close Mini -Dump $204,000 nat ndin Planning & Zoning • Eliminate three positions $168,000 1 / 9 • Residents no longer able to drop off bulky trash 3 / 0 • Slower review processes and delays to applicants Public Facilities Internal Auditor Communications City Clerk Eliminate three positions • Eliminate one position • EBminateonepo • Eliminate one position Position GE Budget Impact imPact Service 1 Administrative •”Reduced level ofcleaning and , paintenance -services at marinas and likely reduced hours of operation $80,000 1 / 0 • Fewer and/or later audits •••' '1.1 leg No live video recording, of Commission• $45,000 1 / 0 • Slower turnaround time on transcriptions $6,577,000 44 / 46.3 pemeMation Attachment 3: Additional Recommendations Public Facilities Additional Revenues from Parrot Jungle and Gardens .................... Total $212,000 Expenditures onderelict vessel removal .-_--'..................... ............ $s0,0OD Expenditures with the Parrot Jungle and Gardens contract ....................... $80,000 Savings Associated with Eliminating a Lease Compliance Manager ........... . $70,000 Expenditures at the Black Police Precinct and Courthouse Museum ......... $52,500 Expenditures akthe Little Haiti Cultural Center ........................................... S99,500 Total $212,000 Expenditures at the U11he HaitiCanibbean Marketplace will beadjusted in the mid -year budget adjustment after the facility is open General Services Administration (GSA)and Communications Moving Protocol from GSA toCommunications GSA..................................................... ..................... ................... ...,-$110,5OD Comnnunicatiuns................ ................. _—.......... ,................... .—+S11Q,5OO Moving the Graphics Print Shop from GSA toCommunications GSA............................. .............. .......................................... .......... -$533,2OO Communications .......... .-.................. ........... ....... ...................... +$SZ3,20O Building Department Additional Revenues ............ .................................................. ....... ...... ....$2O0,ODQ associated with inspections and plans review after hours Additional Expenses ............................................. ...... .............................. $I00000 Account Tutals-changeMenwAdjuotments General Fund Auditor General Board nfCommissioners Building CIPAdninistrativn City Clerk City Manage, Civil Service Code Compliance Communications Equal Opportunity and Diversity Programs Finance Fire -Rescue Grants Administration GSA Human Resources Information Technology Law Management and Budget Mqm, Neighborhood Enhancement Team (NB) Parks and Recreation Planning and Zoning Police Procurement Public Facilities Public Works Risk Management Solid Waste mn« Transfers -Out Total Preliminary Budget FY 2013-14 Changesto September 12th^2813 Preliminary Budget 4TTACwMsmT4 Proposed Budget � 1,078,200 �89,100 9'oOl'5o0 5'zs7'200 z'5Vo'50V Z.9z4'7OV 37O'900 4'5ys'7oV 939'z0O 329'40O B'nz0'8mO 99.o3«'70U 93z'z00 zz'zhO'zVO 3's§6'7OV V'54^'zOO 6,lV4'6O0 z'75s'6O0 957'2VV 3'37G'VV0 zg's3z/}0V s'o2O'8O0 167'348'400 z'567'VVV 6'Z53'4OO z6'37G'*oo zs.4V4'200 z7.s93'sOO as'««9'aoo 40.z52'sVV So4,n1400U 200,000 ' 633,700 (633,7OO) $ 1,078,200 2,489,100 9,282,500 s'z57,2OO 1,508,500 2,924,700 ]70'90O 4,5]a'7VV 1,572,800 329,400 8,O10'VOV 99.634'7V0 g]l.zOO Z0.626'5VV ].s66'7VO 8'54«'zOu b'lO4'h00 z'755'0oO 957,200 J']76'D0O 23'z43.5VV 5'W20'OOV 168'483.100 l'5UTOOO 6'o65,4oO 1D'376'4V0 zZ.96o'zoo z7's93'sVV a*'7os'zon 39,948,300 524,902'600 ATTACHMENT 5 Account Totals ' Change Memo Adjustments Special Revenue Fund Special Revenue Fund Preliminary Budget rY2013'14 Changesto September 12th, 2013 Preliminary Budget Proposed Budget «nRA'Others $ ' 6*,700 $ 64J00 ARRA'Police 704,100 704,100 City Clerk Services 585'700 585'700 Community and Economic Development 57.569,200 57'569'200 Economic Development &Planning Services 7,123'700 7'123'700 [menQencyPnojects 100'000 100'000 Fire Rescue Services 21'387'900 21'387'900 General Special Revenue 777'400 777'400 Homeless 2'315'900 2'315'900 Law Enforcement Trust Fund (L[TR 3'090'900 3'090'900 Miami Ballpark Parking Facilities 5'497'000 5'497'000 NET and Code 2'308'000 2'308'000 Parks and Recreation Services 3'255'000 ]'zss'OuO Police Services 20.999'600 440'000 21'439'600 Public Facilities Services 10'617.500 10'617'500 Public Works Services 3'856'200 (1,257,800) 3'398'400 Solid Waste ' Recycling Education Trust Fun( 1'257'800 1'257'800 Strategic Initiatives 5'869'400 5,869'400 Transportation and Transit 13,780'800 15.780'800 Tuta| $ 161,638,300 $ 504,700 * 162,143,V8O Proposed Position Count by Department FY 2013-14 Proposed Position Count by Department ATTACHMENT Preliminary Budget FY2013-14 Changesto September 12th, 2013 Preliminary Budget Proposed Budget Auditor General 9 S Building 78 78 C|Pand Transportation 45 45 City Clerk 13 13 City Manager 24 24 Civil Service 3 3 Code Compliance 52 52 Commissioners 30 1 31 Communications 10 G 16 Community Development 40 40 Equal Opportunity and Diversity Programs 3 3 Finance 70 70 Fire -Rescue 783 783 Grants Administration 43 1 44 GSA 133 'O 127 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 182 192 Planning and Zoning 48 48 Police 1.530 20 1.550 Public Facilities 42 '1 41 Public Works 94 84 Procurement 15 15 Risk Management 19 19