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HomeMy WebLinkAboutExhibitCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO: Honorable Mayor and Members DATE: November 6, 2017 of the City Com , io SUBJECT: Information for the FROM: Daniel J. A . r ,o /] FY 2016-17 Year -End Budget Amendment City Manager Background for General Fund Amendment The books for FY 2016-17 are now closed and it is recommended that the City Commission amend the City's previously approved budget allocations so that the budget remains in compliance with State Law. The City Commission has been alerted to the expectation of these adjustments to the General Fund, Special Revenue Funds, Debt Service Funds, and the Internal Service Fund in previous monthly budget reports and are only requested when expenditures exceed the authorized budget. This amendment does not include rollover allocations to the Special Revenue Funds for unspent funds, pursuant to the Financial Integrity Ordinance (for Elected Officials, information Technology, Parks and Recreation, and Public Facilities) as the currently available expenditures are unaudited, even though the FY 2016-17 audit is already underway. The rollover of these unspent funds will be recommended in the FY 2017-18 Mid -Year Budget Amendment. The FY 2016-17 City's Amended General Fund Budget totaled $676.12 million. These current proposed amendments increase the budget by $11.08 million, to a revised total of $687,20 million. This increase in the General Fund is primarily due to higher than budgeted expenditures in a few departments as noted below and the allocation of additional resources to the Capital Project Fund in accordance with capital expenditures that the City Commission previously approved or knew of such as the purchase of land located at 13 Northwest 6th Street for a new Fire Station 1 as instructed per Resolution R-17-0201 (which, as was noted when the resolution was adopted, will be reimbursed to the General Fund by the sale of the current Fire Station 1 property in future years). The list that follows denotes the areas of increased adjustment and summarizes the principal reasons for each requested increase; additionally, Attachment A shows a listing of the operating units that necessitate an increase in allocation and the proposed adjustments in revenues in order to offset the increases. Honorable Mayor and Members of the City Commission Page 2 of 6 Adjustments to the General Fund Expenditures by Department Neighborhood Enhancement Team The FY 2016-17 Adopted Budget of $5.80 million is increased by $220,500, to a revised total of $6.02 million. Families appear to be experiencing homelessness in increasing numbers, and the granted budgeted amounts to cover emergency shelter bed services to homeless families with children are insufficient. The Homeless Trust Board voted approving an additional $440,000 at the 06/23/2017 Meeting. Thus, the City of Miami Homeless Assistance Programs are using General Fund dollars to pay for this service until an amendment to the Hotel/Motel Placement Program Contract will be fully executed resulting in complete reimbursement to the General Fund of those expenditures. Resilience and Sustainability The FY 2016-17 Adopted Budget of $239,800 is increased by $3,500 to a revised total of $243,300, The increase is due to the revenue received from a 100 Resilient Cities grant ($170,000) being recognized as revenue instead of being credited to the salary line -item to reduce expenditures. Building The FY 2016-17 Adopted Budget of $10.24 million is increased by $407,400 to a revised total of $10.65 million. The increase is due to higher than budgeted "Other Contractual Services" which were necessary to conduct plans review, structural review, and inspection services to meet the demands and expectations for building permits and hence increase building revenues. Even though this funding is from the General Fund, it is not supported by property tax revenues. It is fully funded with permit and inspection revenues. Solid Waste The FY 2016-17 Adopted Budget of $31.48 million is increased by $112,800 to a revised total of $31.60 million. The increase is primarily due to overtime caused by Hurricane Irma that will be reclassified to Disaster Recovery in the Special Revenue Fund in the thirteenth month adjustment period in FY 2017. Capital Improvements The FY 2016-17 Adopted Budget of $2.82 million is increased by $22,700 to a revised total of $2.85 million. The increase is due to personnel expenditures that were not eligible to charge to capital projects. Fire -Rescue Honorable Mayor and Members of the City Commission Page 3 of 6 The FY 2016-17 Adopted Budget of $126.19 million is increased by $693,500 to a revised total of $126.89 million. The increase is due primarily to overtime expenditures for special events that exceeded the special event overtime budget by $887,500. The Department was involved in more off -duty events than anticipated. The Fire Rescue Department revenues for special events exceeded the budget by $1.23 million. Transfers -OUT The FY 2016-17 Adopted Budget of $57.74 million is increased by $14.62 million to a revised total of $72.36 million. The increase is due to the allocation of additional funding to the Capital and Special Revenue Funds as follows: • A transfer to Community Development for Affordable Housing in the amount of $306,000. This Transfers -IN from NDA account to the Community Development "Special Revenue Funds" is necessary to avoid the limitation of time set by the General Fund and to accomplish the task for which it was intended and approved as per Resolution R-16-0594. These funds were set aside in the General fund in FY 2016-17 at the Second Budget Hearing for Citywide Affordable Housing issues and will need to be rolled over into FY 2017-18 by being transferred out to a Special Revenue fund. The funding amount does not change, only that it will be spent in FY 2017-18 instead of in FY 2016-17. • A transfer in the amount of $2.27 million to Special Revenue Fund "Departmental Improvement Initiative" for the Department of Real Estate and Asset Management rollover account for the Settlement currently in progress with the Hyatt Equities, LLC for the maintenance of the Miami Convention Center as previously allocated and approved in the mid -year budget appropriation by Resolution R-17-0205. The funding amount does not change, only that it will be spent in FY 2017-18 instead of in FY 2016-17. • A transfer to Special Revenue Fund "Departmental Improvement Initiative" in the amount of $115,000 to cover the estimated prior years deficit for the EB-5 project. • A transfer of the Contingency Reserves undesignated in Non -Departmental Accounts in the amount of $5.00 million (R-16-0444) to Special Revenue Fund "Emergency Funds" to serve as reserve for future unreimbursed expenditures for Hurricane Irma. • A transfer in the amount of $267,000 to cover the full cost of the Workforce Program for the period beginning July 2016 through June 2017 due to less reimbursement than budgeted. • A transfer to Capital Project Fund in the amount of $3.54 million for the purchase of land located at 13 Northwest 6th Street as instructed per Resolution R-17-0201 that will be reimbursed to the General Fund in future years. • A transfer to Capital Project Fund in the amount of $350,000 for Citywide Environmental Remediation. • A transfer to Capital Project Fund in the amount of $450,000 to Solid Waste for Heavy Equipment Purchase. Honorable Mayor and Members of the City Commission Page 4 of 6 • A transfer to Capital Project Fund in the amount of $469,000 for the Museum Park Walkway project B-30538H pursuant to Resolution R-17-0391. • A transfer to Capital Project Fund in the amount of $420,000 for Curtis Park Environmental Remediation • A transfer to Capital Project Fund in the amount of $1,436,300 to continue funding for the projects recommended for Street Bond Series 2 defunding. Other General Fund Considerations The Department of Community and Economic Development's FY 2016-17 Adopted Budget of $3.48 million remains unchanged. The Department funds public service activities using funds allocated in General Fund. There are several agencies that requested an extension of time to their current contracts and still have a balance as of September 30, 2017, but it does not receive rollover funds at the end of the fiscal year. However, the Department will request to allocate the balance on current contracts to a Special Revenue Fund in the Mid -Year Budget Amendment process to continue funding the services offered by these agencies. The funding amount does not change, only that it will be spent in FY 2017-18 instead of in FY 2016-17. General Fund Budget Reallocation (See Attachment A) It is recommended to increase the General Fund revenues Budget by $11.08 million (See details in Attachment A) to offset the above noted expenditure increase requests. Adjustments to Special Revenue Funds Adjustments in the Special Revenue Funds are normally due to the acceptance of additional grants and the receipt of new program revenues that were not previously allocated as part of the mid -year budget adopted by the City Commission. The Special Revenue Fund Budget that was initially approved by the City Commission in September 2016 and amended in April 2017 totaled $169.45 million. This Budget Amendment adds $7.24 million for a revised total Special Revenue Fund Budget of $176.69 million. The budget changes (Attachment B) are further described below. Adjustments of Tess than $25,000 will not have resolutions associated with them in accordance with Section 18-115 of the City Code. Departmental Improvement initiative The FY 2016-17 Adopted Budget of $14.34 million is increased by $575,000 to a revised total of $14.91 million. The increase is due to the acceptance of the Summer Youth Program 2017 Grant per Resolution R-17-0191 ($367,500), the acceptance of Employ Miami Dade Grant per Resolution R-17-0046 Honorable Mayor and Members of the City Commission Page 5 of 6 ($150,000), the acceptance of the Health Foundation of South Florida grant ($17,500), and the acceptance of a grant awarded by Lowes Community Partner Grant to Keep America Beautiful ($40,000). Emergency Funds The FY 2016-17 Adopted Budget of $100,000 is increased by $2.23 million to a revised total of $2.33 million. The increase is due to the expenditures incurred for Hurricane Irma. Homeless Programs The FY 2016-17 Adopted Budget of $2.92 million is increased by $500,000 to a revised tota➢ of $3.42 million. The increase is due to an amendment to the Hotel/Motel grant PC-1617-HTMT-2 as per Resolution R-15-0516. Parks and Recreation Services The FY 2016-17 Adopted Budget of $1.90 million is increased by $948,000 to a revised total of $2.85 million. The increase is due to the acceptance of the iHeart Senior Program FY 2017-18 grant ($20,000), FY17-18 Community Tree Planting Project ($10,000) both per City Manager agreement, and the Disability State Program grant FY 2017-2021 per Resolution R-17-0246 ($918,000). Planning Services The FY 2016-17 Adopted Budget of $15.76 million remains unchanged; a transfer in the amount of $1.6 million from Development Regional Impact (DRI) Fees to Capital Project Fund for the BCC Traffic Circle B- 30837A pursuant to Resolution R-14-0219 will be included in the Operating Transfers at yearend. Police Services The FY 2016-17 Adopted Budget of $12.22 million is increased by $2.99 million to a revised total of $15.21 million. The increase is due in part to the acceptance of the following grants: "Pedestrian & Bicycle Safety Enforcement Campaign 2017" ($30,000) as per resolution R-17-0037, "2016 COPS Hiring Grant Program" City Match ($1,516,800) as per Resolution R-16-0609, "City of Miami Body -Worn Camera Policy and Implementation Program FY 2016" ($960,000) and City Match ($320,700) as per Resolution R-16-0555, and "2016-2017 U.S. Marshals Service" ($100,000) as per Resolution R-17-0038. Additionally, the increase is due in part to the acceptance of donations for the following programs: High Intensity Drug Trafficking Area (HIDTA) Operation "Jumpout" ($20,000), HIDTA Operation "Quiet Storm" ($20,000), and HIDTA Operation "Round II" ($20,000). Adjustments to Debt Service Funds The FY 2016-17 Adopted Budget of $78.40 million is increased by $114.47 million to a revised total of $192.87 million. The increase is primarily due to the refunding of the General Obligation Bonds Series Honorable Mayor and Members of the City Commission Page 6 of 6 2007A "Fund 20003" ($79.96 million), Series 2009 "Fund 20005" ($34.15 million), and Series 2017 "Fund 20007" ($272,936) per Resolution R-17-0289 and the issuance cost related to the Special Obligation Bond Series 2017 "Fund 24019" (Resolution R-14-0380 and Resolution R-17-0288) in the amount of $92,100. Additionally, it is recommended that the fund balance ($2.36 million) in the Special Obligation Bond Series 2002 A and C "Fund 24016" be transferred to Fund 24019 (Flex Park Remediation) as per FY 2015-16 Adopted Budget Book page 66 and Resolution R-15-0416. Adjustments to Internal Service Fund The FY 2016-17 Adopted Budget of $84.46 million is increased by $6.42 million to a revised total of $90.88 million. The increase is primarily due in part to higher than anticipated health insurance expenditures ($3.47 million), increased workers' compensation claims experience ($1.96 million), and increased expenditures primarily due to vehicle liability and general liability claims ($988,000). Attachment A General Fund Revenues Citywide FY 2016-17 Amended Budget Year to Date Actual Year to Date Variance Amendment and Allocation Value Final Budget Property Taxes $ 303,610,200 $ 294,888,720 $ (8,721,480) $ 303,610,200 Franchise Fees and Other Taxes 106,503,600 111,523,355 5,019,755 106,503,600 Interest 1,700,000 2,986,388 1,286,388 1,700,000 Transfers -In 12,104,100 13,627, 648 1,523,548 12,104,100 Fines and Forfeitures 13,443,900 15,861,887 2,417,987 13,443,900 Intergovernmental Revenues 65,936,900 66,943,182 1,006,282 65,936,900 Licenses and Permits 56,947,100 73,044,068 16,096,968 693,500 57,640,600 Other Revenues 4,902,500 13,851,099 8,948,599 6,734,500 11,637,000 Charges for Services 110,974,800 116,048,382 5,073,582 3,651,000 114,625,800 Total Revenues $ 676,123,100 $ 708,774,729 $ 32,651,629 $ 11,079,000 $ 687,202,100 General Fund Expenditures by Department Amended Budget Year to Date Actual Year to Date Variance Allocation Value Final Budget Mayor $ 1,128,000 $ 1,106,992 $ 21,008 $ 1,128,000 Commissioners 3,231,000 2,940,293 290,707 3,231,000 City Manager 3,578,400 3,253,833 324,567 3,578,400 Office of Agenda Coordination 359,200 356,579 2,621 359,200 Auditor General 1,282,700 990,362 292,338 1,282,700 City Attorney 8,164,800 7,920,192 244,608 8,164,800 City Clerk 1,697,400 1,671,297 26,103 1,697,400 Civil Services 453,400 375,336 78,064 453,400 Code Compliance 5,866,000 5,648,042 217,958 5,866,000 Office of Communications 1,161,700 1,145,330 16,370 1,161,700 Equal Opportunity and Diversity Programs 397,800 369,950 27,850 397,800 Office of Film and Entertainment 422,700 399,605 23,095 422,700 Finance 9,170,200 8,547,844 622,356 9,170,200 Grants Administration 1,566,000 1,208,027 357,973 1,566,000 Human Resources 4,416,800 4,274,211 142,589 4,416,800 Information Technolog 9,102,000 8,862,769 239,231 9,102,000 Management and Budget 2,535,600 2,304,448 231,152 2,535,600 Neighborhood Enhancement Teams(NET) 5,800,400 6,020,866 (220,466) 220,500 6,020,900 Procurement 2,403,200 2,245,818 157,382 2,403,200 Office of Resilience and Sustainability 239,800 243,287 (3,487) 3,500 243,300 Building Department 10,242,600 10,649,933 (407,333) 407,400 10,650,000 Planning & Zoning 6,673,900 6,257,560 416,340 6,673,900 Community and Economic Development 3,482,500 3,033,204 449,296 3,482,500 General Services Administration 22,619,000 21,749,571 869,429 22,619,000 Public Works Department 21,242,600 19,489,486 1,753,114 21,242,600 Solid Waste 31,484,800 31,597,520 (112,720) 112,800 31,597,600 Capital Improvements 2,824,600 2,847,261 (22,661) 22,700 2,847,300 Fire -Rescue 126,191,500 126,884,935 (693,435) 693,500 126,885,000 Police 231,724,100 227,840,455 3,883,645 231,724,100 Dept. of Real Estate and Asset Management 12,396,400 11,939,671 456,729 12,396,400 Parks & Recreation 42,344,600 41,898,263 446,337 42,344,600 Risk Management 3,098,000 2,807,741 290,259 3,098,000 Non -Departmental Accounts )NDA) 41,078,900 34,124,649 6,954,251 (5,000,000) 36,078,900 (Transfers -Out) 57,742,500 56,032,500 1,710,000 14,618,600 72,361,100 Total Expenditures $ 676,123,100 $ 657,037,830 $ 19,085,270 $ 11,079,000 $ 687,202,100 Information for FY 2016-17 Attachment B Special Revenue Adjustments Special Revenue Funds Amended Budget Adjustments Final - Close Out City Clerk Services $ 1,049,600 $ 1,049,600 Community Development 51,307,500 51,307,500 Department of Real Estate and Asset Management 5,537,400 5,537,400 Departmental Improvement Initiative 14,336,500 575,000 14,911,500 Economic Development (SR) 204,800 204,800 Emergency Funds 100,000 2,228,400 2,328,400 Fire Rescue Services 2,493,900 1,400 2,495,300 General Special Revenue 2,472,200 3,250 2,475,450 Homeless Programs 2,923,200 500,000 3,423,200 Law Enforcement Trust Fund 2,362,300 2,362,300 Miami Ballpark Parking Facilities 6,598,400 6,598,400 Parks & Recreation Services 1,899,100 948,000 2,847,100 Planning Services 15,758,300 15,758,300 Police Services 12,217,900 2,987,500 15,205,400 Public Works Services 11,387,400 11,387,400 Solid Waste Recycling Educational Trust Fund 147,000 147,000 Transportation and Transit 24,542,100 24,542,100 Tree Trust Fund 3,467,800 3,467,800 UASI-Fire Rescue 10,643,800 10,643,800 Total Special Revenue Funds $ 169,449,200 $ 7,243,550 $ 176,692,750