Loading...
_Ea - MemoCITY OF SOUTH M lAM I OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM THE CITY OF PLEASAN T LIVIN G To: From: Copy: Date: SUBJECT: The Honorable Mayor & City commiSS ~.O Steven Alexander, City Manager Alfredo Riverol, CPA, CGFM, CGL.A, Chief Financial Officer September 23, 2014 2 nd Budget Hearing -Fiscal Year 2014-2015 Proposed Budget Below is a list of significant changes incorporated in the Proposed FY 2014-2015 Budget subsequent to the September 9, 2014, budget hearing. These suggested changes incorporate newly obtained information and of course the recommendations provided by the Mayor and City Commission. GENERAL BUDGET ITEMS CAPITAL IMPROVEMENT PROGRAM The City has included $100,000 for Citywide Parks Improvement in the FY 2015 Budget; below is a detailed financial breakdown ofthe proposed projects in this line item: Fuchs Park Historic Pavilion Scope: replace old preserved structural wood supports and replace roof. Approximately: $23,500 Dante Fascell Park -Runoff Mud/Clay -Drainage Issue Scope: implement a permanent solution to the drainage issue for runoff coming from the tennis courts. Approximately: $52,500 (includes survey, geotechnical engineering and construction) Brewer Park Tennis & Basketball Improvements Scope: fill cracks, resurface and restripe two (2) tennis courts and one (1) basketball half court. Approximately: $16,500 Murray Park Athletic Field Scope: Turf renovations to include the complete removal of the existing vegetation and reestablishment of the athletic field turf area. The City and SMCRA have both committed to fund the matching portion ofthe project in equal amounts. Approximately: $7,500 Total = $100,000 Additionally, $20,000 has been allocated in the CIP program for FY 16 for a traffic calming study on 60 th Avenue from 56 th Street (Miller) and 62 nd Avenue. Furthermore, the City has already included the 42 nd Street, between 62 nd Avenue and 64th Avenue, Roadway and Drainage design and construction in FY 2015 CIP budget, which was discussed at the first public hearing. Beginning in FY 2016, the City will be establishing a Parks Acquisition and Capital Improvement Fund. As per the developer's agreement, the City will be obtaining $250,000 from Metro South once the project receives the Certificate of Occupancy (CO) in full satisfaction of the Developer's obligation for parks/open space. The City expects to issue CO in FY 2016. The monies received from the Metro South Project will provide the initial funds within the Parks Acquisition and Capital Improvement Fund. REVENUES The City is currently researching the details involved with establishing separate exclusive franchises for towing services city-wide and commercial solid waste hauling. The City has initiated the procurement process to select a vendor for the installation of commercial or residential solar panels to be accessed by the entire City and perhaps ultimately beyond our borders, at a predetermined vendor price. The RFP has been sent to the City Attorney for his review. Once the procurement process is complete, residents will be allowed to use the City selected vendor at their discretion. A revision was made to the explanation of the line-item for Franchise Fee -Electric on page 61 to clarify that the City currently has a franchise agreement with FPL, not an Interlocal agreement as incorrectly stated in the first draft. Additional clarification is included in the description for the Parking Fund line item in the General Fund budget. This line item excludes the businesses in the Hometown District, because those businesses are accounted for in the Hometown District Improvement Trust Fund. Staff has reviewed and updated the CRA funds transfer amount. The revision excludes code enforcement expenses related to the CRA and includes a portion of the expenses related to the use of the City's procurement division to purchase goods and services for the CRA. It should be noted that the amounts listed below are based on estimates and actual amounts may be substantially different, especially as it relates to the Madison Square project. Below please find a breakdown of the expenses related to the CRA transfer to the General Fund: EXPENSES Postage & Printing for CRA mail-outs CRA Vehicle Fuel Expense CRA Vehicle Insurance Expense Procurement Division PD Clothing Allowance Police Vehicle Fuel Expense CRA Deputy Clerk (Secretary) Expenses Finance for Collections Planning Department Land-Use Amend Processing GIS (CRA Maps & Demographic Analysis) Human Resource Services City Attorney Contract 10% City Community Pool CITY ATTORNEY'S OFFICE 1,910 800 500 1,850 400 1,333 7,096 4,490 3,800 7,945 3,050 26,291 50,000 TOTAL 109,465 A budget highlight was added for the City Attorney's Expense line item explaining that this line item is used to cover printing, travel, faxes, courier fees, etc., as per the City Attorney's contract. Additionally, the expense for the Lexis Nexis annual subscription has been reallocated to this line item from the Human Resources Office. HUMAN RESOURCES OFFICE The City has recently received the General Liability, Property, Auto, Workers Compensation and Public Officials and Employment Insurance Policies and their costs, from Public Government Insurance Trust (PGIT) and Florida Municipal Insurance Trust (FMIT). Below please find a breakdown of the changes in the City's Proposed FY 15 Budget related to insurance when compared to the expense line-items that were presented during the first budget hearing on September 9, 2014: • The City's workers compensation expenditure amount was reduced by $76,487. • Auto Insurance increased by $19,871, which was satisfied with reduction from workers compensation. • The difference of $56,616 from the reduction of workers compensation and the increase in auto insurance was applied to the Liability Insurance expense account. Furthermore, the $40,000 which was allocated to pay Sapoznik was also reallocated to the Liability Insurance account to help pay for deductibles which may be needed throughout FY 15. Sapoznik will continue to provide health insurance representation, on a commission basis, which we believe will continue the same level of excellent representation and assistance that the firm has always provided (a true value to the City) at a lower cost than the consulting fee of $40,000. In FY 2016 the City will be establishing an Insurance Stabilization Reserve Fund with the intent of preparing for some of the increases, which inherently occurs from one fiscal year to the next related to General Liability, Property, Auto, Workers Compensation and Public Officials and Employment Insurance and Health. Any General Funds within the Liability Insurance expense line item which remains unspent, unencumbered at the end of the fiscal year will be transferred into the Stabilization Reserve Fund. BUILDING DEPARTMENT & CODE ENFORCEMENT OFFICE The activity reports for both the Building Department and Code Enforcement were revised to reflect the actual numbers rather than estimates and averages for their respective activities within each of the displayed fiscal years. PUBLIC WORKS STREETS AND LANDSCAPING DIVISION In order to provide the reader more clarity, the title for the line item of citywide street lighting expense was updated to read: Electricity -Street Lights. PARKS LANDSCAPING DIVISION A budget highlight was added for the Electricity line item to explain the budgeted expense revision reflecting current electrical projections based on the electrical usage for the past year. The history of the fluctuation in this line is due to a full or partial assignment of these expenses in the Public Works budgets in prior years. Below please find a comparison of the adopted appropriated amounts for FY 2014 and how it compares with the FY 2015 Proposed Appropriated amounts. Appropriation Comparison (FYs) Amount ADOPTED FY 2014 General Fund 16,737,052 Stormwater Drain Trust Fund 567,818 Local Option Gas Tax 225,000 Hometown Improvement Fund 0 Tree Trust Fund 15,000 Peoples Transportation 1,100,000 Debt Service 1,241,634 Capital Improvement Program 600,000 Emergency Reserve 0 State Forfeiture 45,000 Federal Forfeiture 818,283 TOTAL 21,349,787 General Fund Additional Expenses Red light Cameras 512,400 144,000 317,178 2 New Police Officers CRA Expenses Covered by GF Streetline Project Community Pool -6 Months TOTAL 87,480 88,253 1,149,311 PROPOSED FY 20lS 17,659,802 351,729 285,000 0 0 1,560,000 1,247,827 1,268,439 0 30,000 887,432 23,290,229 Diff 922,750 -216,089 60,000 0 -15,000 460,000 6,193 668,439 0 -15,000 69,149 1,940,442 The term "ro"-back" is used to describe the total taxable value in the prior fiscal year and the amount of monies raised by ad-valorem taxes in the year being budgeted . With the millage roll-back rate, the City would realize exactly the same amount of ad valorem revenue as the preceding fiscal year. If the City decides to raise the millage rate above the ro"- back rate , it me ans th at t he co st of gov ernme nt operat i o ns has increased , or th at new p u bli c service programs have been added to t he budget or a combination of the two .