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HomeMy WebLinkAboutMemo - City ManagerTO: Honorable Mayor and Members DATE: November 5, 2015 of the City Commission SUBJECT: Information for FY 2014-15 FROM: Daniel J. Alfonso Year -End Budget Amendment City Manager Background for General Fund Amendment As FY 2014-15 is now complete and the financial system is now closed, it becomes necessary to amend the City's previously approved budget allocation so that the budget remains in compliance with State Law. These adjustments in the General Fund, Special Revenue Funds, Debt Service Funds, and Internal Service Fund are only requested when expenditures exceed the authorized budget. The various additional General Fund expenditure authority requested herein is in accord with expectations presented in the monthly budget reports to the City Commission or are adjustments that are the result of pass-through revenues and expenditures that must be recorded in the City's financial system, but are not truly an operating cost of the City and as such were not budgeted, such as in the Fire -Rescue and Police Departments. These are the secondary pension funds received from the State of Florida Statutes Chapters 175 and 185. This amendment does not include allocations to the Special Revenue Funds for unspent funds, pursuant to the Financial Integrity Ordinance (for Elected Officials, Information Technology, Parks, and Public Facilities) and or for unspent funds in the City Manager's Reserve because the numbers in the financial system are not yet finalized as the FY 2014-15 audit is currently in progress. The rollover of these unspent funds will be included in the FY 2015-16 Mid -Year Budget Amendment. The FY 2014-15 City's Adopted General Fund Budget totaled $582.79 million. This amendment increases the previously Adopted Budget by $12.08 million, to a revised total of $594.87 million. This increase in the General Fund is primarily due to the aforementioned Section 175 and Section 185 revenue and expenditures that were not budgeted in the FY 2014-15 Adopted Budget; however, they are now budgeted in the FY 2015-16 Adopted Budget. Additionally, there is a need to adjust a few of departments due to higher than budgeted expenditures or, in the case of the City Attorney's office, to reallocate unspent money to a Capital Fund in accordance with what the City Commission was previously told. The increased allocation was done and offset with a reduction of unspent allocations within the General Fund without increasing the overall budget. Most of these adjustments were noted Honorable Mayor and Members of the City Commission Page 2 of 5 to the Commission during the monthly Budget Discussions, previous monthly reports and approved resolutions. The list that follows denotes the areas of increased adjustment and summarizes the principal reasons for each requested increase; additionally, Attachment 1 shows a listing of the operating units that necessitate an increase in allocation and the operating units that were reduced in order to offset the increases. Adjustments to the General Fund Revenue Line Items Intergovernmental Revenue The FY 2014-15 Adopted Budget of $50.50 million is increased by $9.44 million to a revised total of $59.94 million. The increase is due to Florida Statutes Chapter 175 and 185 revenues that are regularly recognized in the Fire -Rescue and Police Departments at the end of the fiscal year. This will not occur in FY 2015-16 or following years as theses revenues and expenses are and will be budgeted in the respective departments. Transfers -in The FY 2014-15 Adopted Budget of $5.90 million is increased by $2.63 million to a revised total of $8.53 million. This increase is attributed to a transfer in the amount of $2.14 million from the Street Bond 2007 Series Capital Fund as per resolution R-15-0169. Additionally, a transfer in the amount of $497,000 from the Street Bond 2007 Series Capital Fund to replenish the General Fund for the transfer to Debt Service that was previously made in accordance with this proposed budget amendment. Adiustments to the General Fund Expenditures by Department Capital Improvements and Transportation The FY 2014-15 Adopted Budget of $5,15 million is increased by $459,800 to a revised total of $5.61 million. The increase is primarily due to higher than budgeted operating expenditures related to the Red Light Cameras. The Red Light Camera revenues exceeded the budget thus resulting in a corresponding increase to expenditures for vendor payments to the service provider. City Attorney The FY 2014-15 Adopted Budget of $7.49 million is decreased by $130,000 to a revised of $7.36 million. The decrease is due to the reallocation to Capital Fund of unspent funds in the amount of $130,000 to the existing "City Attorney's Office Reconfiguration Project" as per Resolution R-15-00757. Honorable Mayor and Members of the City Commission Page 3 of 5 Fire The FY 2014-15 Adopted Budget of $110.09 million is increased by $4.64 million, to a revised total of $114.73 million.: The increase is needed to reflect the pass-through posting of a $4.64 million expenditure related to the transfer of State Secondary Pension contribution (F.S. Chapter 175). This transaction is neutral to the City's finances because the revenue received offsets this expenditure; additionally, an incorrect payment in the amount of $219,000 made to Miami Gardens Road Four, LLC that is currently being pursued through the legal process. Police The FY 2014-15 Adopted Budget of $188.99 million is being increased by $5.85 million, to a revised total of $194.84 million. The increase is needed to reflect the pass-through posting of a $4.8 million expense related to the transfer of State Secondary Pension contribution (F.S. Chapter 185). This transaction is neutral to the City's finances because the revenue received offsets this expenditure. Additionally, allowable costs to cover a deficit in the E911 Program in the amount of $1.64 million were transferred to and absorbed by the General Fund. Tranfers-out The FY 2014-15 Adopted Budget of $61.64 million is increased by $2.76 million to a revised total of $64.41 million. The increase is due to the allocation to a Capital Fund as previously noted, from the City Attorney's FY 2014-15 operating Budget to the existing "City Attorney's Office Reconfiguration Project" in the amount of $130,000. A transfer in the amount of $2.14 million to the Streets and Sidewalks Capital Fund which was previously reallocated back to the General Fund as per resolution R-15-0169. Additionally, $497,000 related to the General Fund (Local Option Gas Tax) was transferred to Debt Service Fund for the upcoming debt service payment of January 1, 2016. Non -Departmental Expenses The Non -Departmental portion of the City's Budget did not need to be amended as the expenditure authority therein was not exceeded; instead, $1.51 million of unused allocation in the Non - Departmental budget was removed 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 of 2014 and amended in May and July 2015 totaled $161.03 million. This Budget Amendment adds $8.26 Honorable Mayor and Members of the City Commission Page 4 of 5 million for a revised total Special Revenue Fund Budget of $169.29 million. The budget changes (Attachment 2) are further described below. Adjustments of less than $25,000 will not have resolutions associated with them in accordance with Section 18-115 of the City Code. Fire Rescue Services The FY 2014-15 Adopted Budget of $14.96 million is increased by $5.26 million to a revised total of $20.22 million. The increase is primarily due to the acceptance of the Urban Areas and Security Initiatives (UASI) 2014 grant as per Resolution R-15-0113 ($5.23 million), the acceptance of the Emergency Management Service County Grant as per Resolution R-15-0248 ($33,239) and the acceptance of Sound Off Home Safety Patrol grant ($5,000). Homeless Programs The FY 2014-15 Adopted Budget of $3.13 million is increased by $200,000 to a revised total of $3.33 million. The increase is due to an amendment to the 2012-2013 Homeless Hotel/Motel Placement Program, Feeding Coordination Program and Homeless Management Information System Staffing Program as per Resolution R-13-0379. Parks and Recreation Services The FY 2014-15 Adopted Budget of $3,36 million is increased by $151,700 to a revised total of $3.51 million. The increase is due to the acceptance of the National Recreation and Park Association Wellness and Fitness Program grant 2015 per Resolution R-15-0088 ($60,000) and the acceptance of the Health Foundation South Florida "I Am Fit" grant 2015 per Resolution R-15.0249 ($91,700). Police Services The FY 2014-15 Adopted Budget of $15.59 million is increased by $208,000 to a revised total of $15.80 million. The increase is due to the acceptance of the following grants: 2014-15 United States Marshals Service grant ($91,000) per Resolution R-15-0038, FY 2015 School Resource Officer Grant ($20,600) per Resolution R-15-0044, FY 15 Records Improvement Project grant ($20,600) per Resolution R-15-0039, High Intensity Drug Trafficking Area (HIDTA) Operation "Frustration" ($12,700), High Intensity Drug Trafficking Area (HIDTA) Operation "Day Break" ($12,700), High Intensity Drug Trafficking Area (HIDTA) Operation "Final Hour" ($20,000), High Intensity Drug Trafficking Area (HIDTA) Operation "Take Back Little Havana ($12,700), High Intensity Drug Trafficking Area (HIDTA) Operation "Thunderstorm" ($12,700), and High Intensity Drug Trafficking Area (HIDTA) Operation "No More Tears/Next Episode" ($5,000). Honorable Mayor and Members of the City Commission Page 5 of 5 Departmental Improvement Initiatives The FY 2014-15 Adopted Budget of $8.14 million is increased by $491,968 to a revised total of $8.63 million. The increase is due to the acceptance of the Summer Youth Employment and Financial Empowerment Program 2015 grant per Resolution R-15-0148. Transportation & Transit The FY 2014-15 Adopted Budget of $17.75 million is increased by $875,600 to a revised total of $18.63 million. The increase is due to a transfer in the amount of $3.09 million to the Transportation and Transit CITT Capital Fund which was previously reallocated back to the Transportation and Transit Special Revenue Fund as per resolution R-15-0169. NET Offices and Code Enforcement The FY 2014-15 Adopted Budget of $0 is increased by $1.07 million. The increase is due to the reallocation of funds to the Tree Trust Fund which will now be administered by the Planning and Zoning Department as of FY 2014-15.