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HomeMy WebLinkAboutM-78-0266• Joseph Grassie, City Manager April 7, 1978 Funding for three Programs Howard V. Gary, Director Department of Management an Budget Recently you requested that I search for funds to finance three programs: ACTION (Bus System for Little Havana) $ 30,000 Blind Elderly Program 16,600 Increased Benefits for Retired Employees (Option No. 2) 190,793* TOTAL $237,393 We have completed our search, and the only funds available in addition to the Contingent Fund are $10,000 allocated for "Environmental Protection" in Special Programs and Accounts. Those funds will not be needed because the Planning Department will be able to absorb any expenditures related to environmental protection. Total commitments against the Co:;gingent Fund to date amount to $84,350, leaving an uncommitted balance of $169,650. The $169,650, added to the $10,000 budgeted for Environmental Protection, results in $179,650 currently uncommitted and available in Special Programs and Accounts. However, the total is $57,743 less than the $237,393 sought. Other budgetary requirements should be taken into consideration when deciding on the use of the above available resources. Firstly, the FY'76-77 Fund Bal- ance is approximately $198,000 short of anticipation. If you recall, $1 mil- lion was anticipated in the FY'78 Budget as carry over fund balance from FY'77. However, preliminary financial reports reveal that only $802,000 will be real- ized. It should be noted that outside budget experts predicted that the City would have $2.3 million in fund balance. If the City had agreed to use this figure, the fund balance would be short approximately $1.5 million instead of $198,000. Secondly, the Fire Department needs approximately $140,000 for a new recruit class, $60,000 for medical examinations and $54,000 for holiday pay for a total of $254,000. r 7CG " `% i78".V _2- Thirdly, the City will owe the University of Chicago approximately $51,000 at the end of this fiscal year for test validations, One of the requiremefts of the Cohen Decree is that the City obtain the services of an independent organization to design examinations that measure ones ability to perform the job being tested for and, in addition, ensure safeguards against any racial, cultural or ethnic biases, University of Chicago was selected to perform these services, No provisions have been made in the budgets of the Police or Human Resources Departments, Fourthly, $27,884 is needed to operate African Square Park, These operational expenses are needed to hire personnel, purchase recreational equipment and supplies and other mandatory costs, In summary, the following are additional budget requirements that are known as of today: Action $ 30,000 Blind Elderly Program 16,600 Increased Benefits for Retired Employees 100,793 Fund Balance Shortfall 198,000 Fire Recruit Class 140,000 Fire Medical Examinations 60,000 Fire Holiday Pay 54,000 University of Chicago Contract 51,000 African Square Park 27,884 EiVr/mt cc: Richard Fo::moen TOTAL $768, 277 b April 20, 1978 The Honorable Joseph R. Grassie Manager, City of Miami 3500 Pan American Drive Miami, Florida 33133 Dear Manager Grassie: 0n the basis of my review of actual severance payments during the period October 1, 1977 to March 25, 1978 and for the prior five years, 1 estimate that actual severance payments for fiscal year 1978 will be S300,000 less than the $2,055,639 currently budgeted. The pattern of expenditures during fiscal year 1978 appears to be a close approximation of the average for fiscal years 1976 and 1977 in which expenditures from October through March were approximately 57 percent of those for the entire year; thus, assuming that the S986,000 in actual severance payments from October 1, 1977 through March 1978 is 57 percent of those for all of fiscal year 1978, the total should be about $1,730,000, or about $300.000 less than the budget. appreciate the excellent assistance and cooperation that Howard Gary and his assistants have given me in gathering data and developing analyses for this estimate. Sincerely, arvey n rickson, Ph.D, CPA 9865 / . 158 Terrace Miami, Florida 33157 r7 f¢ ,2/f•- • 4 7