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July 17, 1976
Honorable Maurice Ferre, Mayor
City of Miami
Dinner Key
Miami, Florida
RC: City of Miami Budget
Review Committee
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Dear Mayor Ferret
On behalf of the Budget Review Committee, previously
appointed by the City Commission, I am pleased to present
an interim report setting forth certain observations and
recommendations.
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Attachment
Copy: Commissioner Rose Gordon
Commissioner T. Gibson
Commissioner J. L. Plummer, Jr.
Commissioner M. Reboso
Mr. Paul Andrews, City Manager
Cordially,
;'e --.
Martin Fine
Chairman
Pik
IN tAIM PO1T 'tf t0tAtt 1ttV1tw 11 '?tt
The is good news atd bad news!
The good hews is that we still have a l mited amount of time to face up
to the fiscal dilemma facing the City of Miami = and many other Cities across
the Nation.
The bad news is that the cost of City government and the costs of
delivering services to Miami residents is escalating geometrically, while the
income which the City can obtain is growing arithmetically.
In addition, the City has a maximum millage of 10 mills = but of course,
has no simple way to establish a maximum on its expenses.
Our Committee has met five times and has addressed itself to a review of
the current budget and an overall discussion of budgetary policy. Because the
budget for next year is not yet available, we have not discussed any aspect of
that budget, other than the fact that based on preliminary discussions with
representatives of the Budget Department we anticipate a difficult situation
will exist in connection with the 1975-76 budget.
SPECIFIC PRELIMINARY OBSERVATIONS AND RECOMMENDATIONS
Federal Revenue Sharing Funds
a. Immediately re -activate the existing Committee which the City,
appointed last year, to assist the Commission in allocating a portion of these
funds for social service programs. There is a great deal of potential benefit
to be derived from working with the same Committee, rather than appointing a new
one each year.
b. Recognize that the bulk of such funds are being used for operating
purposes, rather than for capital improvements, or social service programs.
Metrestricts the use of such funds to capital improvementt,
t, kecognite that the federal funding of this program expires in 1976
and that there is a possibility that it will not be te'ntitued. If that were
the casei the elimination of these funds would create financial havoc and chaos
for the City of Miami,
be;partret t oil_ .Public Iacil i tie
•a, Dinkier_ Key becks,
The rental rates are wholly and totally inadequate. They presently are
40% less than comparable commerical space, and 10% less than the rates charged
by Metro at Crandon Park. SHOCKER. The last increase in rental rates was five
years ago. Compare that with the increased cost of personnel and other costs
necessary to operate these facilities during the past five years. A substantial
number of tenants are non-residents of the City of Miami, Residents of Miami
aren't given any preference.
b. Marine Stadium.
A great community asset. By its location and use it is basically a
Countywide, if not regional facility. The City should seriously consider:
(1) Transferring it to the County.
(2) Leasing it, under appropriate restrictions, to a private lessee
who would promote it more aggressively than the City. (Discuss Rusty Pelican
on adjacent land as an example.)
(3) If City continues to operate, it should appoint an advisory
committee, composed of representatives of the City of Miami Tourist and Publicity
Department, the Chamber of Commerce, the Hotel Industry and other interested
business and citizen groups, to assist the City in promoting the use of this
facility.
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This should be studied with a view toward 'higher utilization and More
productive use* including the possibility of a footba11 stadium to be used
by local High tchoos, and ;others
#m l mentati n 6#..$aiiit %Oh_ re 5.a
MMliami spends $9,200,000 for the operation of thus Department and is the
only City in the County which does not impose a charge for this service. Metro
imposes a charge which covers approximately 72% of the cost of operating this.
Department. (Discuss chart prepared by Budget Department,) The Committee
recommends that the City implement a fee for service charge, effective January 10
1976, in an amount which would be equal to at least 50% of the cost of operating
the Department. We believe this annual fee should be approximately $50.00 per
household, or 14 per day for each resident homeowner. This would result in
the City receiving approximately $5,000,000 per annum for this service.
For the 1975-76 Budget.
Although we haven't seen it, we strongly recommend:
a. A delay in any capital improvements, other than those funded by bond
proceeds previously approved.
b. A cap on existing City positions and a reduction of personnel through
attrition.
d. No new programs, unless funds are provided by the County, State of
Federal Governments.
e. A millage increase of .7 of a mill.
The Fiscal Management System recommended by Booz, Allen & Hamilton, which
basically deals with the computerization and modernization of the City's Account-
ing System, should be implemented as promptly as possible. This will allow the
Budget Department, and all other Departments of the City, to operate more
efficiently from a budgeting point of view.
The City, o fissibr, not the Budget bepart ienti should establish a t GOALS
AiV OBJECTIVES" program for each fiscal year and incorporate the same as of
integral part of the budget. This section would deal primarily with physical
improvements and/or programs 'which the City intends to carry out during the
year. This concept would have several important benefits!
a. It would afford the citizens of Miami an opportunity to share
in the knowledge and excitement of what the City intends to do, other
than to maintain the status quo,
b. It would afford the citizens of Miami an opportunity to see if its
elected officials can carry out such a program.
c. It would afford the City Commission an opportunity to see if the
Manager and the various Departments are properly executing and carrying
out such programs in an efficient and timely manner.
Future Budget Recommendations.
a. The manager should render a quarterly budget report to the Commission
for their review, in order that the Commission and the citizens may be aware of
the fiscal situation prevailing in the City from time to time.
b. Immediately after the adoption of the 1975-76 budget, the Manager
and the Budget Department should commence the preparation of a 1976-77 projected
budget and present the same to the Commission on or before April 1 1976.
c. Perhaps more importantly, the Manager and the Budget Department should
commence the preparation of a 1979-80 budget, which will of necessity be based
on certain assumptions, which should be clearly set forth in the proposed budget.
The Committee feels very strongly that such a projected budget will vividly
and dramatically point out and highlight the untenable fiscal road which the
City is destined to travel between now and then unless very substantial changes
are undertaken by the City to face up to this problem.
111111IIi1III01rui1"1 i }'iilt
The,opmittep offers its ttntinuing servites to the City for the next budget
year, 1076.77s so that it may maintain a continuity of its effortt #n working
with the City Manager and the Budget beparmefnt and render a 'higher degree of
service to the Commission and to the residents of the City of Miami.
the7t0_,Coptitup is aware of the on -going negotiations between the City of Miami
and Metro in connection with an attempt to properly define the services rendered
to the City residents by Metro. The Committee recommends that these discussions,
both at the Commission level and between the respective Budget Departments, take
place on an ongoing basis, rather than just prior to the time the budget is to
be adopted, so that there will be a full and complete review of this situation.
Martin Fine, Chairman
Budget Review•Committee
1;'Dade Cbut ty
2. Miairni
3. Tlialcah 36
4. IV iafl i 13each 67
5. 'oral. Gables '60
6 North Mia.rni 35
7. North Miami 13eacli 36
1 Dade County
$7, 900, 724 fees
10, 935, 113 expenses
2. Miami
$ 0 fees
$9, 200, 000 expenses
(floes not include fringe and contribution
from FRSF)
3. 1-lialea• h
$1, 160, 000 fees
$2, 213, 000 expenses
. Miami leach
$1, 025, 000 fees
$2, 900, 000 expenses
(does not include fringe benefits)
5. Coral Gables
$ 677, 511 fees
$1, 818,475 expenses
(includes fringe)
6. North Miami
$440, 000 fees
$939, 659' expenses
(does not include fringe benefits)
7, North Miami Beach
$721,000 fees
$S20, 000 expenses
(does not include fringe benefits
72.3%
0 %
52. 4%
35. 3%
37. 3%
46. 8%
87. 9%
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Mr. Paul W. Andrews
City Manager
City Hall
Miami, FL 33133
bear Mr. Andrews:
June 3, 19?
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Thank youfor your letter of June l9th, in connection with
the City Commission meeting at which I will be pleased to
render an interim report for our Budget Review Committee.
I would very much appreciate your advising me if you plan
to schedule this appearance in the morning or afternoon, so
that I can adjust my schedule accordingly. While I know it
is not easy to determine the specific hour of the presentation,
I would particularly like to schedule the morning or afternoon
for this purpose.
Thanking you for your kind cooperation, I remain
Cordially
Martin Fide
MF/ad