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Home My WebLink AboutExhibit - SUBCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Daniel J. City Mena DATE: THIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT. September 19, 2014 SUBJECT: Second Budget Hearing Changes Memo — FY 2014-15 Preliminary Budget This memorandum serves to address many of the concerns expressed during the First Budget Hearing on September 9th, 2014 and provide the Commission with the most up-to-date information. These recommendations, if approved, will provide a total of 80 "net new" Police Officers over those budgeted in FY 2013-14 and will bring the funding for poverty initiatives up to $1.25 million. This budget resolution for Commission consideration maintains the administration's commitment to investing in the capital infrastructure and employees of the City, all while maintaining financial reserves for the future, though at a slightly lower amount and with targeted reductions in other operating and capital areas. If these recommendations are approved, the City of Miami will have added 115 "net new" officers to the Police Force over a two-year period. This represents a ten percent increase in budgeted sworn positions as described below: +35 Officers added in FY 2013-14 (and others reassigned to patrol) +20 Officers in the Proposed Budget (partially grant -funded, partially General Fund) +6 Officers funded by the Omni CRA in the First Budget Hearing +35 Officers funded by the General Fund in the First Budget Hearing +13 Officers funded by the General Fund recommended now ($1.09 million) +6 Officers funded by the SEOPW CRA recommended now ($1.18 million funded for 11 months) 115 Net -New Officers over a two-year period Two further expenditure changes are recommended: • the Poverty Initiative funding is increased to $1.25 million as described above (a change of $500,000) • additional staff to address the backlog in tree permits in the Planning and Zoning Department ($122,900) IA-- Oo <1,23rn - ExNbi}- ---_-surer Honorable Mayor and Members of the City Commission Page 2 of 5 THIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT. To accommodate these expenditure recommendations totaling $2.89 million, the following combination of revenues and savings are recommended: • Additional Revenues from the SEOPW CRA ($1.18 million) • Savings from reduced funding of the General Employees and Sanitation Employees Retirement Trust as approved at the First Budget Hearing ($361,800) • Savings due to information from the Department of Justice received on September 11, 2014 that the 2009 COPS grant would be extended an additional six months yielding savings to the General Fund as Police Officers would not be converted from grant - funding as early as budgeted in the fiscal year ($162,400) • Savings associated with a refined cost allocation of personnel costs in the Capital Improvements and Transportation Programs Department reflecting the changes made at the First Budget Hearing ($37,300) • Reduction of the funding set aside for vehicle purchases in the General Services Administration (GSA) from $1 million to $576,000 allowing GSA to replace the oldest trucks in the fleet from 1996 to 2000 leaving the oldest vehicles from 2001 ($424,000) • Eliminating the plan to convert 128 temporary positions to permanent positions in FY 2014-15 (shown below in the Parks and Recreation, NET, Public Works, Solid Waste, and Department of Real Estate and Asset Management departments) and instead allowing this conversion to be bargained with AFSCME Local 1907 ($223,700) • Reducing the Reserve for Uncollectable Revenues to meet the difference ($498,700) Outside Agencies The Budget of the Civilian Investigative Panel (CIP) has been reduced from the amount presented on September 9, 2014 by $116,300 to reflect the reduction of staff from six employees in the current year to five employees in FY 2014-15 and a reduction of $85,000 to reflect that the CIP is no longer requesting funding for a settlement of the outside --counsel contract. Should the CIP budget be approved at this new amount, a savings of $31,300 could be realized in the City's general fund budget. The Budget of the Liberty City Community Revitalization Trust is now reflecting operating revenues and expenses of $592,000 which includes a request of $199,000 from the City's General Fund (not included in the City's Proposed Budget). Included in this budget are project revenues and expenditures of $350,000 associated with the Skyrise agreement. The Trust currently has one full-time and three part-time employees increasing by one full-time employee in FY 2014-15 as proposed and requested. Honorable Mayor and Members of the City Commission Page 3 of 5 THIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT. Revenues The September 9th FY 2014-15 Preliminary Budget is $558.75 million. It is recommended that the budget be amended to include an increase of $1.18 million as outlined below (See Table 1): TABLE 1 Preliminary Budget FY 2014-15 Changes to General Fund Revenue September 9th, 2014 Preliminary Budget Proposed Budget Property Taxes $239,056,600 $239,056,600 Franchise Fees and Other Taxes $102,212,800 $102,212,800 Interest $1,900,000 $1,900,000 Transfers -IN $1,715,000 $1,184,200 $2,899,200 Fines and Forfeitures $4,272,200 $4,272,200 Intergovernmental Revenue $50,498,300 $50,498,300 Licenses and Permits $52,039,000 $52,039,000 Other Revenues $10,993,500 $10,993,500 Charges for Services $96,064,400 $96,064,400 Total Revenues $558,751,800 $1,184,200 $559,936,000 The `Transfers -IN' revenue category increased by $1.18 million due to funding appropriated from the Southeast Overtown Park West CRA to the General Fund to fund six additional Police Officers. General Fund Departmental Changes (Summary Values in Attachment A) The September 9thFY2014-15 Preliminary Budget is $558.75 million. It is recommended that the budget be amended to $559.93 million to include a decrease in personnel costs($223,700) for the conversion of temporary positions to permanent positions subject to labor negotiation in the following the Departments: • Neighborhood Enhancement Teams (NET) 36 positions ($64,600) • Public Works -6 positions($9,900) • Solid Waste — One position ($1,900) • Department of Real Estate and Asset Management -9 positions($18,200) • Parks and Recreation — 76 positions($129,100) Additionally, other changes are outline below and summary values in Attachment A. Honorable Mayor and Members of the City Commission Page 4 of 5 THIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT. Capital Improvements and Transportation Programs The September 9th FY 2014-15 Preliminary Budget is $5.13 million. It is recommended that the budget be amended to $5.09 million to include a decrease in personnel costs amount ($37,300) that is classified as project charge back to capital projects. Police Department The September 9th FY 2014-15 Preliminary Budget is $181.27 million. It is recommended that the budget be amended to $182.44 million to include several items added in the first budget hearing. Eleven months of funding for six additional Police Officers by the Southeast Overtown Park West Community Redevelopment Agency in the amount of $1.18 million of which, $998,200 is appropriated in the Police General Fund Budget and $186,000 to be appropriated as a transfer out to the Capital Improvement Fund for the purchase of police vehicles. Funding for 13 new Police Officers in the amount of $1.09 million of which $695,000 is allocated to the General Fund Police Budget and $390,000 is allocated in Transfers Out to Capital for the purchase of police vehicles. Additionally, there're two reductions to Police General Fund Budget. A reduction of $361,800 to the Police General Fund Budget retirement line -item due to a floor amendment during the first budget hearing that reduced the FY 2014-15 Budget of the General Employees and Sanitations Employees Retirement Trust (GESE). Also, a second reduction of $162,400 due to the 2009 COPS grant being extended for another six months until March 31, 2014. This grant was supposed to end on September 30, 2014. Non -Departmental Accounts (NDA) The September 9th FY 2014-15 Preliminary Budget is $40.65 million. It is recommended that the budget be amended to $40.64 million to include the following: Increase the City's Poverty Initiative as per floor amendment $750,000 to $1.25 million. The additional funding ($500,000) is due to a decrease in the Reserve for Uncollectables - ($138,200) and a decrease in the line item Retirement Contributions allocation to GESE ($361,800). Additionally, the line item Budget Reserve for Uncollectables has been reduced by $$498,700 to meet the difference noted above. Transfers -Out The September 9th FY 2014-15 Preliminary Budget is $39.96 million. It is recommended that the budget be amended to $40.09 million to reflect the following: Honorable Mayor and Members of the City Commission Page 5 of 5 THIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT. • $186,000 transfer out to the Capital Improvement Fund for the purchase of police vehicles (for six police officers funded by Southeast Overtown Park West CRA). • $390,000 transfer out to the Capital Improvement Fund for the purchase of police vehicles (for 13 additional police officers funded by General Fund). • Decrease transfer out to Capital Improvement Fund ($424,000) for the purchase of vehicle for fleet replacement. • Decrease transfer out to Homeless Program related to the conversion of 10 temporary to permanent positions ($21,700). Internal Service Fund The September 9th FY 2014-15 Preliminary Budget is $169.85 million. It is recommended that the budget be amended to $169.48 million to include a floor amendment reduction in the General Employees and Sanitation Employees Retirement Trust (GESE) budget of $361,800. Revised Position Counts by Department The changes noted above caused the position counts in various departments to change. Attachment B shows the changes in position count for all departments. oMB14002 Attachment A Department FY 2014-15 Preliminary Budget Amendment Value FY 2014-15 Proposed Budget Mayors Office $1,018,200 $1,018,200 Commissioners $2,880,700 $2,880,700 City Manager $2,678,700 $2,678,700 Office of Agenda Coordination $302,400 $302,400 Auditor General $1,160,000 $1,160,000 Capital Improvements and Transportation Programs $5,130,400 ($37,300) $5,093,100 City Attorney $7,487,900 $7,487,900 City Clerk $1,526,800 $1,526,800 Civil Service $424,900 $424,900 Code Compliance $4,630,700 $4,630,700 Office of Communications and Protocol $1,147,400 $1,147,400 Equal Opportunity and Diversity Programs $344,900 $344,900 Office of Film and Entertainment $341,700 $341,700 Finance $8,511,200 $8,511,200 Grants Administration $1,051,100 $1,051,100 Human Resources $3,851,400 $3,851,400 Information Technology $8,633,700 $8,633,700 Management and Budget $1,821,300 $1,821,300 Neighborhood Enhancement Teams (NET) $4,005,900 ($42,900) $3,963,000 Procurement $2,046,100 $2,046,100 Building $9,703,400 $9,703,400 Planning and Zoning $6,699,900 $122,900 $6,822,800 GSA $21,302,400 $21,302,400 Public Works $18,102,200 ($9,900) $18,092,300 Solid Waste $29,584,900 ($1,900) $29,583,000 Fire Rescue $109,575,000 $109,575,000 Police $181,270,300 $1,169,000 $182,439,300 Department of Real Estate and Asset Management $7,484,500 ($18,200) $7,466,300 Parks and Recreation $32,515,300 ($129,100) $32,386,200 Risk $2,909,500 $2,909,500 Non -Departmental $40,645,600 $1,300 $40,646,900 Transfers -Out $39,963 400 $130,300 $40,093,700 sl (: � tht{t,`}5 tl'i.Pur i �.` 4r � r$ } <girl,' i A i'u'" ,t F ,.ikdlKWW4k�t1�.%fs�.. t i q(j i q'. 1N3wnJoa CAN BE SEEN AT THE END OF THIS 1VNID1210 dn>IDVB 1VNI91B0 01 NOI1n1I1S8nS V SI 1N31A1fJ00 SINS. THIS DOCUMENT IS A SUBSTITUTION TO ORIGINAL. BACKUP ORIGINAL CAN BE SEEN AT THE END OF THIS DOCUMENT. Attachment B Department Preliminary Budget FY 2014-15 Change Memo 2 Proposed Budget FY 2014-15 Fire Rescue 808 808 Police 1,620 +19 1,639 General Services Administration 133 133 Public Works 110 110 Solid Waste 226 226 Office of Agenda Coordination 3 3 Auditor General 9 9 CI PT 43 43 City Attorney 55 55 City Clerk 12 12 City Manager 18 18 Civil Service 3 3 Code Compliance 52 52 Commissioners 32 32 Office of Communications and Protocol 12 12 Equal Opportunity and Diversity Programs 3 3 Office of Film and Entertainment 4 4 Finance 72 72 Grants Aadministration 40 40 Human Resources 38 38 Information Technology 62 62 Management and Budget 15 15 Mayor 12 12 Neighborhood Enhancement Teams (NET) 75 75 Procurement 19 19 Community and Economic Development 38 38 Parks and Recreation 272 272 Building 78 78 Planning and Zoning 55 +2 57 Risk Management 19 19 Department of Real Estate and Asset Management 41 41 Total Full -Time Positions 3,979 +21 4,000 SUBSTITUTED Attachment to be distributed by Budget Department prior to City Commission meeting