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HomeMy WebLinkAboutMemo - Year End AmendmentCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : FROM : Honorable Mayor and Members of the City Commission Johnny Martinez, P.E. City Manager DATE: SUBJECT: REFERENCES ENCLOSURES: November 6, 2013 FILE : Information for FY2012-13 Year -End Budget Amendment Background for General Fund Amendment As FY 2012-13 is now complete and the financial system is closed, it becomes necessary to amend the City's previously approved budget allocation so that the budget aligns with the expenditures. These adjustments in the General Fund, Special Revenue Funds, and the Internal Service Fund are only requested when expenditures exceed the authorized budget. These are either due to previously unknown or unforeseen expenditures that must be made, but were not previously allocated such as the higher than anticipated pension contribution requirements and workers' compensation payments. Or adjustments are the result of pass -through revenues and expenditures 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, such as Fire -Rescue and Police. The FY 2012-13 City's Adopted General Fund Budget totaled $506.20 million. This amendment increases the previously Adopted Budget by $10.64 million, to a revised total of $516.84 million. This increase in the General Fund is primarily due to the aforementioned Section 175 and Section 185 revenue and expenditures that were not budgeted. Additionally, there is a need to adjust a couple of departments due to higher than budgeted expenditures. The increased allocation was done and offset with reduction of unspent allocations within the General Fund without increasing the overall budget. Most of these adjustments were noted to the Commission during the verbal monthly Budget Report on October 24, 2013 and previous monthly reports. 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. Also note that most departments have been able to absorb the additional pension contribution and worker's compensation cost without exceeding their current year budget. Honorable Mayor and Members of the City Commission Page 2 of 4 Adjustments to the General Fund Revenue Line Items Intergovernmental Revenue The FY 2012-13 Adopted Budget of $44.98 million is increased by $10.64 million to a revised total of $55.63 million. The increase is due to Florida Statutes Chapter 175 and 185 revenues that are regularly recognized in the Fire -Rescue and Police Departments at the end of the fiscal year. Adjustments to the General Fund Expenditure Line Items Civil Service The FY 2012-13 Adopted Budget of $393,700 is increased by $14,000 to a revised total of $ 407,700. The increase is primarily due to expenditures related to salary increases for two employees for four months and increase in retirement contributions and workers' compensations payments. Capital Improvement Administration The FY 2012-13 Adopted Budget of $4.53 million is increased by $327,400, to a revised total of $4.86 million. The increase is primarily due to higher than budgeted operating expenditures related to the Red Light Cameras. The Red Light Camera revenues exceeded the budget by $818,400 resulting in a corresponding increase to expenditures for vendor payments to the service provider ATS. The un- budgeted expense was partially offset by lower than budgeted operating costs. Information Technology The FY 2012-13 Adopted Budget of $11.03 million is increased by $18,100, to a revised total of $11.05 million. The increase is due to additional retirement contributions and workers' compensation payments. Solid Waste The FY 2012-13 Adopted Budget of $26.85 million is increased by $445,700, to a revised total of $27.30 million. The increase is primarily due to additional Pension and Workers' Compensation expenditures that were allocated throughout all departments of which $318,500 was distributed to the Solid Waste Department and higher than expected cost of Tipping Fees. Fire The FY 2012-13 Adopted Budget of $99.80 million is increased by $7.07 million, to a revised total of $106.87 million. The increase is needed to reflect the pass -through posting of a $5.22 million expense related to the transfer of State Secondary Pension contribution (F.S. Chapter 175). This transaction is Honorable Mayor and Members of the City Commission Page 3 of 4 neutral to the City's finances because the revenue received offsets this expenditure. Secondly, the budgeted cost of FIPO Pension ($35 million) were distributed and budgeted to the Fire and Police departments. However, the City and the FIPO actuary had agreed on a pension payment of $40.1 million, which is higher than the $35 million the City had budgeted. The above mentioned unbudgeted expense was partially offset by lower than budgeted operating costs. Police The FY 2012-13 Adopted Budget of $156.96 million is being increased by $7.11 million, to a revised total of $164.07 million. The increase is needed to reflect the pass -through posting of a $5.43 million expense related to the transfer of State Secondary Pension contribution (F.S. Chapter 185). This transaction is neutral to the City's finances because the revenue received offsets this expenditure. Secondly, the budgeted cost of FIPO Pension ($35 million) were distributed and budgeted to the Fire and Police departments. However, the City and the FIPO actuary had agreed on a pension payment of $40.1 million, which is higher than the $35 million the City had budgeted. The above mentioned unbudgeted expense was partially offset by lower than budgeted operating costs. Parks and Recreation The FY 2012-13 Adopted Budget of $29.00 million is increased by $11,000, to a revised total of $29.01 million. The increase is due to additional retirement contributions and workers' compensation payments. Adjustments to Special Revenue Fund Adjustments in the Special Revenue Funds are normally requested due to the acceptance of additional grants and the receipt of new program revenues and allocation of prior year fund balance that were not previously allocated as part of the original budget adopted by the City Commission. The Special Revenue Fund Budget that was initially approved by the City Commission in September of 2012 and amended in April of 2013 totaled $170.44 million. This Budget Amendment adds $289,800 for a revised total Special Revenue Fund Budget of $170.73 million. The two budget changes (Attachment 2) are further described below. Public Facilities The FY 2012-13 Adopted Budget of $10.37 million is increased by $114,600 to a revised total of $10.49 million. The increase is due to a higher than anticipated transfer -out to the debt payment for the Convention Center Special Obligation Bond. The added cost was offset by higher revenues generated by the Knight Center; the transfer of the higher amount is required per the bond covenant. Honorable Mayor and Members of the City Commission Page 4 of 4 ARRA Other The FY 2012-13 Adopted Budget of $297,500 is increased by $175,200 to a revised total of $472,700. The increase is due to a budget allocation and expenditure of remaining fund balance that was not previously allocated. The grant expenditures were authorized by Resolution # 09-0550, "Energy Efficiency and Conservation Block Grant Recovery Act". Adjustment to the Internal Service Fund Adjustments to the Internal Service Fund are requested this year due to unbudgeted payments remitted to FIPO along with the higher than anticipated Workers' Compensation expenditures. These adjustments were noted to the Commission during the verbal monthly Budget Report on October 24, 2013 and previous monthly reports. Attachments: FY 2013 Close Out ATTACHMENT 1 Amended Budget Year to Date Actual Year to Date Variance Section 175/185 Impact Amending Allocation Final Budget Revenues: Property Tax 217,631,200 207,937,149.86 9,694,050 217,631,200 Franchise Fees and Other Taxes 98,570,700 103,974,851.65 (5,404,152) 98,570,700 Occupational Licenses and Permits 40,294,100 35,794,074.02 4,500,026 40,294,100 Fines and Forfeitures 4,400,200 4,841,001.11 (440,801) 4,400,200 Intergovernmental 44,984,600 58,259,390.60 (13,274,791) 10,644,700 55,629,300 Charges for Services 88,397,000 103,777,252.36 (15,380,252) 88,397,000 Interest 800,000 (2,546,552.19) 3,346,552 800,000 Other 11,050,000 11,701,233.15 (651,233) 11,050,000 Transfer In 69,900 440,059.00 (370,159) 69,900 Total Revenues 506,197,700 524,178,459.56 (17,980,760) 10,644,700 516,842,400 Expenditures: General Government Mayor 883,500 875,161.51 8,338 883,500 Board of Commissioners 2,416,100 2,388,610.12 27,490 2,416,100 Office of City Manager 2,847,000 2,496,072.57 350,927 2,847,000 Office of NET 3,495,800 3,368,873.69 126,926 3,495,800 Office of Code Compliance 4,417,300 4,381,380.74 35,919 4,417,300 Office of City Clerk 1,455,500 1,249,069.11 206,431 1,455,500 Office of Civil Service 393,700 407,618.19 (13,918) 14,000 407,700 Office of Auditor General 1,071,400 925,378.76. 146,021 1,071,400 Office of Communication 924,900 894,854.77 30,045 924,900 Office of City Attorney 5,768,800 5,682,686.57 86,113 5,768,800 Office of Equal Opportunity & Diversity 314,200 298,718.99 15,481 314,200 Management & Budget 1,535,400 1,532,909.94 2,490 1,535,400 Human Resources 3,087,800 2,964,189.67 123,610 3,087,800 Finance 7,743,200 7,174,951.09 568,249 7,743,200 Capital Improvement Administration 4,531,000 4,858,329.38 (327,329) 327,400 4,858,400 Information Technology 11,034,100 11,052,130.99 (18,031) 18,100 11,052,200 Office of Grants Administration 833,100 732,308.29 100,792 833,100 Purchasing 1,440,300 1,383,978.88 56,321 1,440,300 Total General Government 54,193,100 52,667,223.26 1,525,877 359,500 54,552,600 Planning and Development Building 7,711,500 7,135,272.90 576,227 7,711,500 Planning & Zoning 4,781,500 4,754,205.98 27,294 4,781,500 Total Planning and Development 12,493,000 11,889,478.88 603,521 - 12,493,000 Public Works General Service Administration 20,519,900 20,450,566.02 69,334 20,519,900 Public Works 16,907,700 15,994,427.44 913,273 16,907,700 Solid Waste 26,852,500 27,298,179.85 (445,680) 445,700 27,298,200 Total Public Works 64,280,100 63,743,173.31 536,927 445,700 64,725,800 FY 2013 Close Out ATTACHMENT 1 Amended Budget Year to Date Actual Year to Date Variance Section 175/185 Impact Amending Allocation Final Budget Public Safety Fire Police 99,804,800 156,963,000 106,875,799.71 164,069,492.46 (7,071,000) (7,106,492) 5,218,700 5,426,000 1,852,300 1,680,500 106,875,800 164,069,500 Total Public Safety 256,767,800 270,945,292 (14,177,492) 10,644,700 3,532,800 270,945,300 Other Public Facilities Parks and Recreation Risk Management 5,901,400 29,002,100 13,565,500 5,560,110.27 29,013,023.44 11,723,173.36 341,290 (10,923) 1,842,327 11,000 5,901,400 29,013,100 13,565,500 Total Other 48,469,000 46,296,307.07 2,172,693 11,000 48,480,000 Pensions GESE & FIPO 657,600 535,711.05 121,889 657,600 Total Pensions 657,600 535,711.05 121,889 657,600 Non -Departmental Non -Departmental Operating transfers out 29,953,600 39,383,500 21,612,723.39 38,973,300.00 8,340,877 410,200 (4,349,000) 25,604,600 39,383,500 Total Non -Departmental 69,337,100 60,586,023.39 8,751,077 - (4,349,000) 64,988,100 Total Expenditures 506,197,700 506,663,209.13 (465,509) 10,644,700 - 516,842,400 Revenues Over (Under) Expenditures - ' 17,515,250.43 (17,515,250) - - - ATTACHMENT 2 Special Revenue Adjustments SPECIAL REVENUE FUNDS Amended Budget Adjustments Final - Close Out General Special Revenue $ 1,288,200 $ 1,288,200 City Clerk Services 586,900 586,900 Community and Economic Development 52,993,300 52,993,300 Economic Development and Planning Services 5,677,900 5,677,900 Fire Rescue Services 30,860,900 30,860,900 Homeless Programs 2,688,700 2,688,700 Law Enforcement Trust Fund 3,681,900 3,681,900 Parks and Recreation Services 5,388,300 5,388,300 Police Services 21,922,000 21,922,000 Public Facilities 10,371,000 ' 114,600 10,485,600 Miami Ballpark Facilities 5,355,800 5,355,800 Public Works Services 3,133,400 3,133,400 Transportation & Transit 13,150,900 13,150,900 Net/Code Enforcement 1,945,100 1,945,100 Departmental Improvement Intiatives 5,527,600 5,527,600 ARRA Police 5,468,200 5,468,200 ARRA Other 297,500 175,200 472,700 Emergency Fund 100,000 100,000 TOTAL SPECIAL REVENUE FUND $ 170,437,600 $ 289,800 $ 170,727,400