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Home My WebLink AboutItem #04 - Discussion Itemi'�1'; oh Mii1►�ir` PLattioA Ill ft =Oft 'I? M t�1 S ANbUM lowad bireotOr bepartttieht of .Mahagemen_ , 8e ices. r3A? jii1y :7,'' 1977. Qt,UJECt Third Status tepbrt oh the i.9'i8 btid/eft NCCC;SURES:. Fdtsuant.to therequestof;the city Commission that the cityManager inform theft on a monthly basis of the status of the FY'78 budget, please find attached a summary explaining the changes that have occurred since our second status report. Also attached is a recommended schedule for the Commission's review and approval of the 1978 Budget Estimate. The assumptions used to compile the third budget status report are the same as those used in the first and second estimates, with the exception of a few which will be discussed later. In summary, those assumptions Which remain the same are as follows: 1) employees who have not received salary increases in FY'77 will receive a 31% increase, which is the same increase granted to Police and Fire sworn personnel in FY'77; 2) employees will receive a 5% increase in FY'78, which is the same increase negotiated for Police and Fire sworn personnel; 3) non -payroll items will increase by six percent (6%); 4) pensions will increase according to the requirement of the 1977 actuarial study; 5) reductions in. Florida Power and Light franchise fees, Federal Revenue Sharing, and Anticipated Salary Savings; and 6) the millage will be increased from 9.592 to 10 mills. As of the second status report, the City faced a net increase in appro- priations of approximately $8.6 million and a net decrease in revenues Of $1 million, resulting in a $9.6 million budget problem at 9.592 mills and,$8 million at 10 mills. 'Since the second budget status report, two phenomena have occurred; namely, a reduction in the projected taxable value and a projected increase in Countercyclical Revenue Sharing. The original projection for taxable value assumed a five percent (5%) increase over last year which would have increased the taxable value from $3,739,711,741 to $3,926,698,000. However, the certification received from Dade County on June 30, 1977, reveals that our taxable value only increased by three and eight -tenths percent (3.8%). The effect of this reduction on our projections is that the value of a mill will decrease by approxi- mately $43,000, resulting in a total loss of approximately $430,000 at '10 mills, (It should be noted, however, that the increase in taxable value from FY'77 and FY'78 will be approximately $1.3 million). dOteph Itt ttat§ie Oh the brighter gide, the United ttateg Congregg hag approVed •Lich inereaging thnUffl bhibliey available tb ttate and lOdal , goVerhMents Uhder the COUhtercyclidal ileVehtie 8hatihg 13rOgraiii and egtehdihg the program, whioh was due to empire 8eptember 10# 19//f through fitcal year 1978. Although we ahticipated funding under this program ih VY,78# we did not anticipate an increase. The projeoted reVehues resulting from this increase is approxiMately $1 Millioht The net effect of these chahges On the second budget status report it . , a reVehue increase of approximately $600#0b0 and a redtictiOh ih ths ' 1 budget Problem from 'approximately $8 Millibn tb $7.4 million. PAM= CALERDAA fth TH2 rwtrw & xrrhovn or TM MA MET City Manager will conduct departmental hudget hearinqt. hdvertite Federal evenue Sharing public hearing to be held on 8/22/7/ with City Manager 3. City Manager conducts public hearing on Federal Revenue Sharing to permit citizen participation. (Must be held 7 days before City Manager presents budget to City Commission.) beginning 7/11 4. City Manager's proposed budget will be 8/29 submitted to the City Commission. 5. Advertise City Commission hearing on Federal 9/1 Revenue Sharing along with the intended use and summary of the proposed budget. (Must advertise 10 days before City Commission hearing.) 6. City Commission holds first reading of the proposed 1977-78 budget and millage rate. 7. City Manager will give an overview of the proposed 1977-78 budget. 8. City Commission conducts discussion of proposed budget with department directors. 9. City Commission to conduct public hearing on proposed uses of Federal Revenue Sharing Funds. 9/8 1 9/8 • thdin0 .1122.L. 10. City Manager modifies proposed budget to re- 9/15 flect changes made during Commission discussion of budget with department heads. 11. City Commission holds formal public hearing (second reading) on the proposed 1977-78 budget and millage rate, and adopts with provision to make effective immediately. 12. Approved ordinance establishing the millage rate will be submitted to the Dade County Tax Assessor. 1 Regularly scheduled City Commission meeting. 9/22 9/26 2:Not a regularly scheduled City Commission meeting. till Anticipated 1teVehties Anticipated keVentiet at 9s592 Mills at'M92 Minis 2hd Estimate 3rd Estimate bi fekende t eran nt�nd' tle)n-Ad V'aiore ► Ad Valorem 9libtotai b1ic ty $ `6tiYa 5i I'tiiic 16h-AdVa1%refi Ad Valorem Street Lighting Fund Pension Fund $52,008060 • nii 8b°,682 :>. ;v42b,954.►_9?i .:.(244, 38i $72,96t,281 $ 835 944 $ 3,194, 829:, (134,750) TOTAL $88,409,330 $89,076,933 $:.667,603: (Applicable to'10,� tni11`:_'cap). .. AeVehl $6 eAge . Ahti.eipated .Ad Valorem reVehUtS at the Publicity and ' outiem tuha i t porti h of the §.592 ni.ilage rate are eltpeeted ta drop as a re -Milt of the CouhtY i s certified e.atested pia .'uatiOn fcr Miatni beihg ,prop ected at $3:i 88i ► 67 o which is _etib atahtiafly lower than the preiit6tit pro., jeetibn of $M26,698006� Aiitic3.peted Ad Valorem revenueS at the Street'' Lighting rtth 'sportion of the S. S92 $Tillage rate; are expected to drop as a result of; the Countyis certified assessed valuation for. Miami being projected at $3,881,367,570 Which is substantially lower than the previous projection of $3►926,698;000. Total; Net 'IteVenue Increase $ . 667,603 r0)t__t'Y J* 77=78 Atltieiliated teVehues A iti'tipated tevehties . at 5,592 Mills at 9392 411s 2hd estimate _-- 2rxd- 2stimate • biffere6ee ' Noh=Ad Valorem Ad Valorem Subtotal ' 8urisin_ Fund Nor► -Ad Valorem Ad Valorem Subtotal 500,000 891►557_ Street Lighting. Fund Don -Ad Valorem $ 1,200,000. Ad Valorem 2,018,127 Pension Fund $`1,200,000 1,994,829 (10,293). ,(23,298 11,537,559 (134,750) $11,672009 $11`,537,559. $ (134,750) $88,409,330 $89,076,933 $ 687,603 - ,dew a P-- tektOtie 1564."'010, Anticipated Ad Vaibrem reVehties at the deheral 'uiid's portion of the9,592 `i►illage rate are expected to drop as a result of the CountyOs certified assessed` Valuation for Miami being projected at $,881,367i570, which is substantially lower than the previous projection of $3,926,698t000. • Revenue Increase • Pursuant to verbal communication from. Marie Israel in Washington, D. C. Countercyclical;funds are projected at 4)106,672forI'Y '77-78, (244,738) 090,6.82 . _. Net Revenue' change . - . - $:�, 835,, 944; I. tension Rund' A. Revenue beer' ease :. 1. Anticipated Ad Valorem revenues at the Pension Fund's portion of the-9.592 milla gerate are expected expected to drop as a result of, the County's certified assessed valuation for Miami being projected at`. $3,881,367,570 which is substantially lower than theprevious projection of $3,926,698,000. itguenlle 156.0 0 0 i Ati i°c ipated Ad Va1Orem meve rues at t ►e PUbl city and Touris ► iitid's porti 5fi of the 9 3 592 miilage mate are empeeted to )i op as a result of•the County's.eeitified assessed vaivatioh lot Miami being pro, •etted at $3,881067,t70 which -is subs stantially lower than the preVibUS•pro, ;jeetion of $3,926,69$10004 ,. Street _, Wahg._" uncl A,. Reveritie Decrease 1, Anticipated Ad Valorem reVehues-at the Street`` Lighting Rund's portion of the '9,592tniilage tate`'ate a cpected tO driip as a result :of the County's certified assessed valtatibn:for` Miami being projected at.$3,881,367,57° which is substantially lower than the previous projection of $3,926,698,000, T otal:Net Revenue Increase 667',603 P tii , t , tIttiltEN 2110, l }may! [(y; I iy {{ ''' tg tUM1MYTRV ,yOr nAmy qq{{MP„.[(1 Ch0PAtA IPNg e iera1 Ftthd Publicity ' & Tourist FUnd Street Lighting,Pttnd Pension Fund TOTAL Apprbpriatioti Applicable to 10'Miil Cap Approtwiatioh Atiproprihtioh 4nd 'F§Ttititat _ 5rd.. tst ro:te bittPtA t SW3,5280581 $78>528>581 469>627:'.- 1>4691627 5 55/>288 i 67>2$b' 14,594>689 . :_14,_694,089 $97 949,97,7=, 97,949,9.77 APPAOMA tHANdtg, ƒKe A :9¥,01 ge IV\Ste t Lighting Puna? ptNt enANGtS Ge ie al Ftlrit Publicity & TTou ist :Street• Lighting Pui $81t 044 (1o;21) (134 60).:. General" PtincU`,: Publicity & Tourism Fund Street Lighting Fund Pension Fund III . BUDGET PROBLEM CHANGE - br 'FEPENCE $E1'WEEN REvENUE CHANGES AND APPROPRIATION `.CHANGES, $667663,,: $66'7 , 603'