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HomeMy WebLinkAboutItem #10 - Discussion Itemdit or' MIAMI. tLottibA 1NtER,Ort I MtMt RANtUM t$: Joseph Ft, Grassie City Manager t6M: Howard V. Gary, birector bepartment of Management Services s b&tt:April i4, 1977 sun.acr: Budget Preparation Calendar RtritIENCt:s: tNCLOSURtS. Attached hereto you will find the "Proposed Budget Preparation Calendar" for the development of the fiscal year 1977s78 hudcget. You will note that dates have been omitted on City Commission activities. These dates will be established later in conjunction with you, the City Clerk and the City Commission, ProPosed 13udget PreParat.i.nh .Calendar Activity Submit first draft of budget manual to departments for review and comment, Beginning Ending _Date 3/24/71 3/24/77 City Manager reviews the first budget estimate with the Director of Management Services, 4/8/77 4/8/77 Give the City Commission a presentation based on the first budget estimate. 4/14/77 4/14/77 City Manager meets with Department Directors to discuss first budget esti- mate and budget manual, 4/29/77 4/30/77 Departmental training sessions on budget manual will be in process. Departments will be preparing their budgets. Departments wi1.1 submit their budgets to Management Services. Management Services' budget hearings will be in process. City Manager's budget hearings will be in process. City Manager's Proposed Budget will be submitted to the City Commission. City Manager anti/or Director of Manage- ment Services will give an overview of the Fiscal Year 1977-78 Budget. 5/9/77 5/11/77 5/5/77 6/13/77 6/13/77 6/13/77 7/18/77 7/27/77 8/1/77 8/12/77 8/29/77 8/29/77 To be established, Activity, I"ederai iteVenue Sharing budget hearings will be conducted. City Commission engages in discussion of budget, City Commission conducts formal public hearings. City Commission adopts the budget,' Beginning Ending hate _ _ ,date.._ To be established, To be established. To be established. To be established. stJMMt R' n1' t s'DTttn't' h ttrVr:t•Jt1 ;S F:ot?. 1977=l, 3 Anticipated PeVrnues at 9,592 Mills Estimated 12eitenUe8 at 9,592 Mills Fiscal Year 1976-77 _., Fiscal. Year 1;977-7R bi_f ference_ Genes- i utid Non -AA Valorem $53,884,412 $50,834,987 ($3,049,425) AEI Valorem 20,457,556 21,199,659 _74,2_,103 Subtotal $74,341,968 $72,034,646 ($2,307,322) ruhl ici. t1 Tour i. nrn Fund Non -Ad Valorem Ad Valorem Subtotal Street Lighting Fund Non -Ad Valorem Ad Valorem Subtotal Pension Fund Non -Ad Valorem Ad Valorem Subtotal TOTAL (Applicable to 10 mill cap) $ 500,586 860,322 $ 1,360,908 500,000 891,557 $ 1,391,557 $ (586) 31,235 $30,649 $ 85,637 -0- ($85,637) 1,946,503 2,018,127 71,624 $ 2,032,140 $ 322,129 11,263,758 $11,585,887 $89,320,903 $ 2,010,127 ($14,013) -0- ($322,129) 11,672,308 408,550 $11,672,308 $86,421 $87,116,638 ($2,204,265) Tail:;rc t't?R 151'T1;1,_•lttlitic; Itr�'1'tltirs r, Gener tl t'ltnd All revenues were determined by using the current year s anticipated revenues with the exception of the follow.ingt A. Reevenue br ereago 1. A logs in revenues from steam sales clue to closing of Incinerator, • Lost of Incinerator fees due to closing of Incinerator. 3. i't't, Franchise in FY' 76-77, the FPL Franchise Fund contributed $2,750,000 to the General Fund. However, in FY'77-7R only $2,500,000 will he con- tributed to the 0oneral Fund, restat- ing in a $250,000 loss. In addition to this loss, the City will tic,t have available for its use $1,091.,5132 of F'T't, funds utilized in FY'76-77. ';'dose funds wore origi- nally appropriated for on year to offset the projected deficit in the F'Y'75-76 Midget. However, these funds were not utilized ed in FY' 75-76 and wore reallocated to offset the rr'76-77 budget gap. 4. Federal Revenue? Shirinq - The origi- nal plan for utilizing Federal tif' ' itue Sharing Equity Funds provided $3,0U0,000 a:; a contribution to the General Fund in 1'Y' 77-7R. however, the City Commission mrdi fied this plan .in 1'Y'76-77 l.q reallocating ;.' 70,000 for social sei vi ces. The remaining loss is attributable to loss of $2 , 1.,'1S6 in Federal F'+veitue Sharing Funds which wore appropriated for one year to purchase fire eduipmrnt. In an effort to reduce the FY' 7f,-77 budget gall, these funds were reallocated for use ns ii itiiscol1ane:'CU3 revenue in the Goiteral Fund, (5.000) (8, 550) (1,341,582) (941,986) 5. Mise.el.laiirous Matching Funds - In F'Y' 7r,-77, the City was teitnhtir.se2(1 $27, .307 for its advancement to a federal program, These fund., wi.1l not be available in i Y` 77*-y8. 6, Anticip(ted Salary Savings - The FY'76-77 iiudget anticipated $2,000,000 as a revenue item from Vacancies that would occur in cIISpar ttnental budgets, The effect of this accounting practice was the reduction. of departmental budgets 1, $2,000,000 without actually renloVi.nq the appropriation, This accounting practice will he phased out over a period of time. Thus, instead of anticipating at:.inq the same $2,000,000 as in 1'Y'76-77, this year we will anticipate only $1,500,000. 7, tinl.i.ke last year, no surplus will be available in FY'76-77 to fund the F '77-78 Budget. . S. Revenue Increases Additional t-.ional revenue:; from incre,7no in taxable le value. Net Pevenue Ch;inge II. Pension Fund A. l'evr'nue Decreases Unlike last year., nn surplus in they Pension fund is anticipated in I''i' 76-7'1. hence, do revenues can be Jttt i.c i.I'ated i it rt. .17-78. $ (27,307) (500,000) (225,000) $(3,049,425) $(322,129) B. PevenUe Increases Increase in ad valorem revenues. 408, 550 iet Revenue Ching 742,103 $(2,307,322) $ FG,421 III, Pubiicy tourism. F'ttnrl_ A. Revenue! Decre_asns Unlike last yea}-, no surplus in the Publicity and Tourism Fund is anti- cipated in FY' 76=77. nnhce, no revenues can be anticipated in FY' 77-78. 134 t:evrtit5e Increases Increase in ad valorem revenues. Net Revenue Change IV. . '_reet- Lighting Fund n, t?r ettue Decreases Unlike last year, no surplus in the Street Li.ghting Fund is anticipated in FY'76-77. hence, no revenues can be anticipated in FY' 77-78. B. 1'cve11ue increases Increase in .ad valorem revenues. Net Revenue Change 586 31.,235 $ (S5,637) 71,624 30,649 (14,013) TOTAL Let Revenue Change $ (2, 204, 265) arttavx g mW SUMMARY or I: ITlt:1A`i'l:t) APPItOP TA` /P S., Estimated 11I6-77 Appropriation Difference I3etWeen IAP,prpT,riatiot ,,fot_ 977-7Ei., 1976 77_;WK '071-78, cener.ai Fund $740341,968 $ 78,537,934 $4,195,966 Publicity & Tourism 1,360,90G 1,468,413 ' 107,505 Street Light.intf 2,032,140 2,229,2CBU 197,140 Pension Fund 11,.585,n137 12,525,245 939,358 TOT:;:. ;a=ptol : ;ctt: icn Applicable tc 10 :dill Cap :m , 320, 003 94,760.P.72 $5,430,969 ;f- IAA ;IS FOR nwrrn.titi.ttJC,, APPI'It7 Rf ATIoNS 1' t;etrer,=11 Fund A' Al Tro r jut ion Net -oases 1. Salaries and Wages a. The same budgeted level of per., sonttel in 1976-77 is tnaitttained in 1 977-7t3. h. it is a:ssuMed that all employees will receive the SUMO percentage nteagee salary increase in 1976-77 as Police_ and Fire personnel, Although we have only negotiated salary increases for Police and Fire personnel, it is felt that we must anticipate and under- stand, at its wurst, the impact of this potential liability oh the financial status of area City, to view of the fact that the City dotes not practice d t:i.cit budgeting, all expendi- tures trust he logically antici- pated dnd included in the ti:;cal year in which they will i e incurred. c. 1 t is also assumed that all employees wi 11 receive the same percentage salary increase in 1 Y' 7 7- 7t8 as Police and Fire per- sonnel. Again, although we have only ne+ete',t.i.tt.e,l salary increases fur Police and Fire personnel, it i:; teelt that we must antici- pate sand understand the impact_, of this potential liability on the financial status of the City. of Provisions are: made for increases in tmployee:s' longevity and anni- versary payments. it: assumed that all employees who are eligi- ble to receive anniversary and longevity increases will receive gunk?. 175,361 2,661,689 H38,.193 10 2► lton-Payroll. Items at It is assumed that the cost of all non payroll item:, (i.e., materials, supplies, equi.pmeht, etc.) will increase by 6%. This IJerdentage increase is based on economic indices published by The Wall Street journal) the United States Departments of Labor and Commerce. Specifi- crtlly, in the February 22, 1917 Wall Street Journal, the Depart- ment of Comuturc:e predicted that the annual inflationary rate for 1977 will be 5% to 6%. Also included in tl►i3 article was an analysis of the GNP -based index which revealed that prices rose at a 5.7% annual rate. Our in-house analysis of the Consumer. Price Index and the Wholesale Price Index reveals an average inflationary rate of 6. 2% from January, ] 976 to Jan- nary, 1977. b. Provisions are made for the 1977 fall elections. c. A c inflationary increase was assumed for Public Property's services. B. i.ppr.pvri.rtican nOcieiSus tinal luc.itt d 1?alanco _. There will 1.e no unu 1 1 •.,�at & '1 fund balance for fiscal year 1977-I8. td,.t. Appropriation ation Change $ 632,705 72,500 43,7013 $4,424,656 (228,690) 4,1c15,966 tt. PPnsioh Flinn it is anticipated that an additional $939,358 will be regUired to fund the Retirement System and Plan in 1077-78t of this sum, $6,290 is attributable to salary increases. This is the best approx.- imation that can be made until. we receiVe the final actuarial projection which is expected un May 15, 1977, The Alternative Pension Plan, which was approved by the city commission in 1976-77 for directors and assistant di rectors under the Executives Pension Plan, is expected t-U require funding of $42, 540. This is the best assessment that can be male Without historical data. III. Publicity and Totiri tsM Fund Apprr pri ati un ir,crea:.e.s - Assumed a salary increase and a 61 increase in non- payroll costs. IV. Street i.igtit1nrr Furul Appropriation Increases - Assumed a salary increases and a 6% increase in non -- payroll costs. '1'O'I'AI. Net Appropriation Champ..? 11 $ 939,358 107,505 107,1,10 $ 5,4:19,9(,99 C01PAta1SOtt OF RtVI"t•ttlt:S & 1PPR0M1Ih' IONS IF 'rFtR 197607 MtLLAGt PATt OF 9.592 IS M11IttTAttlr17 IN 1977=78 REVil ioFS GeneralFund Publicity & rourisn Street Lighting Pension $72,034,646 1,391,557 2,018,127 11,672,308 Total Revenues $87,116,638 II. API-q7OrRIWICL4S General. Fund $78,537,934 Publicity •& Tourism 1,468,413 Street Lighting 2i.2294280 Pr'n:;icn 17.,5?_5,245, Total Appropriations $94,760,872 III. MIDGET PRCI3LEt•1 - DT r'T'EPEt3C1 RETS•11•'Ftd R1 I T FS F ll1'PR0PRRII 1TT011S ($7 , 6a4 , 2)4 ) IV. TI!1 BUDGET PROBLEM CREVrr:U AT THE EXISTING MILEAGE PATE OF 9.592 IS $7,644,234 AND REQUIRES THE FOI.,I..OWING DEPARTMENTAL REDUCTIONS: 1. Office of Mayor. 2. l3oarcl of Commissioners 3. City Clerk 4. City Clerk Elections 5. Law 6. Planning -Zoning Advisory Boards 7, City Manager 8. City :tanager Ofc. of Community Affairs 9. Management Services 10. Finance 11. Human Resources 12. Civil Service 13. Police 14. Fire 15. Communications 16. Sanitation 17. Public Works 18. Parks and Recreation 19. I uildinc3 20. Planning 21. Planning & Zoning Adm. 22. Dinner Key Office Buildings $ 9,794 11,622 11,923 7,166 73,260 2,268 49,656 13,625 73,533 291,721 61,090 17,643 2,122,636 1,416,415 196,011 1,081,494 437, 17G 431,454 136,407 45,462 10,991 19,632 Sub Total $6,521,019 23. Special Programs and Accounts 982,908 24. Publicity and Tourism 140,307 Total $ 7,644,214 , V. 1? TnE mittAGE P.ATE 15 INCREASED TO THE 10 hitt CAP AN ADE1tIoNAL $1,521,989 WILL BE GENERkTIM AND TnE MIDGET PROBLEM WILL NO LONGER' BE $7,644,2340 BUT $60.22,245. THIS GAP AT 10 MILLS WILL REQUIRE THE FOLLOWING DEPARTMENTAL REDUCTIONS: 1. Office of Mayor 2. Board of Commissioners 3. City Clerk 4. City Clerk Election 5. Law 6. Planning-oning Advisory Boards 7, City Manager 8. City Manager Oft. of Community Affairs 9. Management Services 10. Finance 11. Human Resources 12. Civil Service 13. Police 14. Fire 15, Communications 16, Sanitation 17, Public Works 18. Parks and Recreation 19, Building 20, Planning 21. Planning 2oning Mn. 22. Oinnor Key Office nuildings Sub Total 23. Special Programs and Accounts 24. Publicity and Tourism Total $ 7,845 9,309 9,550 50740 58,677 1,817 39,803 10,915 58,895 233,651 48,930 14,131 1,700,107 1,134,465 156,993 866,213 350,154 345,570 109,254 36,413 8,803 15,724 $5,222,959 786,909 112,378 $6,122,245 14 den, cif MIAM . t'LoitibA iN?tr4=6rtiviC M ANM UM ten ttonoiable Members of the City Commission FttOM: .7oseph tt. Grassie City Manager bAttc. SUBJECT: hEFthEP CE3: ENcLOSUttt5: April 140 1.977 Preparation► of the 107,,78 Budget tstitnate The 1977 78 Budget Manual, which is a guide for the development of departmental budget requests, was submitted to department heads an March 24, 1977 for a two -week review and comment period. This review period will be followed by a management retreat on April 29 and 30, 1977, to discuss the budget policies and guidelines and the budget preparation calendar for the development of the fiscal year 1977-78 Pudget Estimate. This year, City departments and spending agencies will be required to develop two (2) budget requests. The first set of requests Will allow departments and agencies to maintain current service levels by allowing for wage increases and inflationary increases for non -payroll items. The various spending limits to be used for developing the first budget request and the formula for deriving same will be given below. The second set of budget requests requires the curtailment of services in recognition of the City of Miami's projected budget gap of $6,122,245. This budget gap will be absorbed by the spending entities in the General Fund and the Publicity and Tourism Fund. Departmental spending limits for fisca]. year 1977-78, corresponding to the first budget requests, were determined by taking each department's 197E--77 adopted salaries and wages appropriations and applying a 34 per cent increase for 1976-77 and a 5 per cent increase for 1977-78. A 6 per cent inflationary increase was computed for non -payroll items and then added to the projected salaries and wages portion of the budget. The resulting spending limits for the departments and agencies are given below. Page 1 of 3 is 1, Office of Alayr r 2, 13o<trd of Commissioners 3, City clerk 4, City Clerk !auctions 5, Law 6, Planning 'Soning Advisory t3o.trds 7, City Manager h. City Manager Of Clue of CoMmuni ty Affairs 9. iiatla.jotnunt Service's 10, Finance 11, Human Ft_"ioUrce_s 12, Civil Service 13, Po 1 i ce 1.4. Piro 15. Commutticutiun:; 16, Sanitation 17, Public Works 1.6. Parks and kec re tic;n 10, building 20. Planning 2.1, Planning r. Zoning Administration Dinner Key tiff it.e: buildings Subtotal $ 102,505 1.21,636 124,786 75,000 766,723 23,736 520, 001. 142,622 769, 570 3,053,064 639,350 184,650 22,214,913 14, 023, i;00 2,051,392 11,118,613 4,575, 3t30 4,515,478 1,427,596 475, 79ti 715,030 2t)5, 463 $u8, 247, .194 23. ; l •eec i a i. Programs and Accounts 10,200,740 1,464,413 ;13ri, ftt:2, '347 1n preparing ring Chu SC,. nd Lucltiot request, each dc.ttat tment: and spending agency will simply reduce the. limit: given above by 7. 653%. The per- centage cut was derived Ly dividing the: projected budget tt.rp of 6, 12 2,245 by tl.e: projected total arj,rr>pri ati.t)tt for the ilent.,ra1 Cund ,.rid Publicity and Tourism fund, 'Thus, 2.14 1''thl i; i t_' and Tourism Total Pr., ieCttrcj Fund A1at,rtT a i At' i ,ti t;trtl.)t .t 1 :} i8, c; :i7,'i34 Publicity and '1'ottt. i::Rt Tot al l.tr:a 7.6t; 3' c_.ttt * Now Limit 6, 009, 8t,7 $72, 528, 067 _ 1,„:164,41 i ___ 112,'3'7F1 1,352,015 0 00' 22 2, 5 `�`; ',347 �ti,J ...,..la .,73,£380,102 *$6, 1 2:2 , 24ci burl t0t GAL 7.6531, Cut. ,,60, 00 , '347 Total / proL ri ativn:1 Page 2 of 3 1. Office of Mayor 2. Board of Commissioners 3. City clerk 4. city Clerk Elections 5. taW 6. Planning Zoning Advisory Boards 7. City Manager 8. City Manager Office of comtnunity Affairs 9. Management SerV'i.ces 10. Finance 11. human Resources 12. Civil. Servi.ce 13. Police 14. fire 15. Communications 16. Sanitation 17. Public Works 18. Parks and Recreation 19. Building 20. Planning 21. Planning & Zoning Administration 22. Dinner Kay Office Buildings Subtotal 23. Special Programs and Accounts 23. Publicity and Tourism 94,660 11.2,327 115,236 691260 708,046 21;919 480,288 131,707 710;675 2,819,411 590,420 170,519 20,514,806 13, 689, 335 1,894,399 10,452,400 4,225,226 4,169,908 1 , 318, 7 2 439,383 •106,227 189,739 r63,024,235 9,503,832 1,352,0_5 Total. ;73,880,102 i Two things :tiiou1J be noted at: this point:. First, each department and spending agency will be required to identify, in the second budget request, the impa.:t of they requested reduction: on that agency. Secondly, the final reductions rctlected in the 1977-78 Budget will not be based on a percentage, but rather on the priorities and assessments that was make jointly. Pagu 3 of 3