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_memoSouth1'Miami THE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: From: Date: Subject: The Honorable Mayor,ViceMayorand Members of the City Commission Steven Alexander,City Manager September 10,2015 Agenda Item: FY 2015-2016 Capitaland Operating Budget and Levy of MillageRate Adoption An Ordinance of the City of South Miami,("City")located in Miami-Dade County,Florida, approving a proposed budget for the Cityfor the fiscal year commencing October 1,2015, through September 30,2016,which amount may be amended at the firstor second reading of this Ordinance,and approving and enacting the final budget on second reading. An Ordinance of the City of South Miami,located in Miami-Dade County,Florida("City"), approving a tentative millage rate of the Cityfor the fiscal year commencing October 1, 2015,through September 30,2016 which amount may be amended at the first or second reading,and approving and enacting the final millage rate of the City on second reading. Below isa breakdown of the millage as advertised in the City's TRIM notice. TAXING AGENCY City of South Miami Miami-Dade County Miami-Dade Fire and Rescue District Miami-Dade County Library District Miami-Dade County School Board-State Rate Miami-Dade County School Board South Florida Water Management District Everglades Project Okeechobee Basin Florida Inland Navigation District Miami-Dade Children's Trust Miami-Dade County Debt Service Miami-Dade County School Board Debt Service Miami-Dade Fire and Rescue District Debt Service Total Taxes Paid by South Miami Residents FY 2016 PROPOSED MILLAGE 4.3639 21.1% 4.6669 22.6% 2.4207 11.7% 0.2840 1.4% 5.1650 25.0% 2.2480 10.9% 0.1459 0.7% 0.0506 0.2% 0.1586 0.8% 0.0345 0.2% 0.5000 2.4% 0.4500 2.2% 0.1990 1.0% 0.0086 0.0% 20.6957 100.0% This memodetails the substantial changesin the proposed budget asbasedon the Workshop heldon August 13,2015,and other events,updatingrevenueandexpenditureforecasts.As you areaware,the FY 2016 Proposed Budget asofJune30,2015was based on the proposed millage rate of 4.3639.The budget,as proposed here,remains based on this rate as approved by the Commission. General Fund Revenue The overall revenue amount for the General Fund remained the same as that which was presented at the August 13 Budget Workshop. General Fund Expenses City-Wide The employee benefits package,approved by Resolution of the Mayor and Commission on Tuesday,September 1,2015,includes health,dental,andvision insurance andhas been negotiated to a lower rate than expected.TheCityhad originally budgeted a15%increase in premiums from FY 2015,s policy amount;however,after negotiations,we were able to obtain a health benefits package foronlya12.2%increase (53.58%less than originally provided proposal of 26.28%increase). Workers Compensation was also reduced,City-wide,due to the reduced premium amount, providingsavingsof approximately $39,961.Webelieve that thisisin part due to the Safety Committee the City Manager implemented during the lastFiscalYearin response to discussions with the various carriers. Human Resources Department Human Resources Department was revised to "Personnel Division",to become consistent with the preexisting City Code of Ordinances. Parks Facilities Impact Fund The Funds description has been revised to reflect the recently adopted relevant Ordinances. Parks Acquisition Development Operations &Maintenance Fund TheFunds description within the Fund section has been revised to reflect the recently adopted relevant Ordinances. Capital Improvement Program (CIP) The CIP planwas updated,andsomevalueswere modified toshowmoreaccurateinformation basedon the continuingworkbeingperformed utilizing and therefore depleting these funds. Refer to Exhibit1fora more detailed depiction of the expected expenditures. SUMMARY OF POTENTAL FINANCIAL ISSUES AHEAD Union Negotiations: The current negotiations with the AFSCME and PBA unionsmayplace additional financial demands on our limited budget and perhaps may require additional funds currently not budgeted. Litigation expenses and exposures: Currently,the Cityisinvolvedin multiple litigations,whichmay result in future financialliabilities. Itis unrealistic at this time,for the City to estimate expenses and exposure for the FY 2015-16 budget. Fuel expenses: Thepriceoffuelfor our fleet varies significantly throughout a typical year.TheCity prepares for this variability with its strategy for estimating offuel cost.TheCity requires that the usage ofCity vehicles be limited only to the essential activities.For example,City policy states that noCity vehicle should be left running idle when not necessary (the K-9 vehicle is the exemption); furthermore,all take home cars should be used strictly pursuant to policy that stipulates that the vehicles will not be used for personal use. WeherebyrecommendapprovaloftheProposedBudgetfor the fiscal year 2015-2016, including Capital Improvement,inatotalamountof $23,673,053 asgenerallypresented below. FY 2015-2016 Appropriated Amount General Fund Stormwater Drain Trust Fund 18,246,767 263,930 Local Option GasTax Hometown Improvement Fund Parks &Recreation Facilities Impact FeeFund Tree Trust Fund 235,000 0 0 0 Peoples Transportation -Transportation Peoples Transportation -Transit Revenue Stabilization Fund 1,508,000 80,000 0 Grant Match Fund 0 Insurance Reserve Fund 0 Tax Equalization Reserve Fund Building Capital Reserve Fund Park Acquisition Development Ops&Maint Fund Debt Service 0 0 0 1,162,924 Capital Improvement Program Emergency Reserve State Forfeiture 1,637,000 0 44,000 Federal Forfeiture 495,432 TOTAL 23,673,053 Attachments:Ordinance approving a proposed FY 2016 Appropriation Amounts Ordinance approving a tentative Millage Rate Capital Improvement PlanExhibit I Exhibit 1 CAPITAL IMPROVEMENT PROGRAM 5-YEAR PLAN PROJECT DESCRIPTION SOURCE FY 15 Estimated Expenditures FY15 FY 16 FY17 FY IS FY 19 FY 20 TRAFFIC CALMING Pinecrest Villas/Snapper Creek TrafficCalming-Construction (Between 62 AVE,80ST&US1;Between 80STto87ST,From57AVE to 62AVE) PTP 150,000 150,000 Twin Lakes/Bird Estates TrafficCalming-Construction (Between 61AVE&64AVE,From 40STto44ST;Between 56STto64ST, From62AVEto67 AVE) PTP 175,000 175,000 Mango Terrace\Traffic Calming-Construction (Between 67AVE and 69AVE,From 72STto80ST) LOGT 140,000 60,000 Manor LaneTraffic Calming -Construction (Between 72ST and US1,from 63AVEto67AVE)PTP 100,000 38,000 Cocoplum TrafficCalming-Construction (SW62AVE&SW67AVE,FromSW64ST&SW72ST)PTP 150,000 60 Avenue TrafficCalmingDevices (Between 56ST and 61ST)CIP 35,000 35,000 ROADWAY &DRAINAGE IMPROVEMENTS Citywide Drainage Improvements SWDTF 100,000 150,000 150,000 150,000150,000 TwinLakes Roadway &Drainage Improvements -Construction SWDTF 91,500 61,500 LOGT 60,000 40,530 100,000 DEP 85,000 PTP 60,000 42 Street Drainage Design and Roadway Reconstruction SWDTF 50,000 19,440 PTP 85,000 85,000 78 Street &63 Avenue Drainage &Roadway Reconstruction SWDTF 50,000 50,000 PTP 85,00086,762 Citywide Roadway &Drainage Phase 6-Construction Part 1:SW74 Terrace (58AVEto59AVE) LOGT 45,000 PTP 155,000 ROAD INFRASTRUCTURE SouthMiami Intermodal Transportation Plan-Design PTP 100,000 South Miami Intermodal Transportation Plan-Construction PTP 125,000 SouthMiamiIntermodal Transportation Plan-Contingency PTP 225,000 100,000 75,000 75,000 75,000 SW64 Street BikeLane and Road Improvements CDBG 336,000 PTP 84,000 Citywide Street Resurfacing Program (Various locations) LOGT 60,000 31,530 40,000 60,000 60,000 60,000 60,000 PTP 20,000 CitywideSidewalkRepairs PTP 40,000 38,000 80,000 40,000 40,000 40,000 40,000 Citywide Street Improvements LOGT 25,000 16,890 50,000 25,000 25,000 25,000 25,000 60PlaceRoadResurfacing (Between 40&44ST)PTP 50,000 50,000 61 Avenue Roadway Improvement (Between 40&44ST)PTP 95,000 62 Avenue DesignandRoadway Reconstruction (85STto70ST)TAP*480,000 PTP 270,000 120,000 Road Resurfacing •SW58ST(62PLto62 AVE)PTP 42,000 RoadResurfacing-SW66 AVE &SW50TR (51TR to67 AVE)PTP 53,000 Road Resurfacing -SW78ST(62 AVE to63 AVE)PTP 52,000 Road Resurfacing -SW81ST(62 AVE to60 AVE)PTP 47,000 Road Resurfacing -SW59PL(74STto76ST)PTP 52,000 Road Resurfacing -SW61ST(62PLto62 AVE)PTP 40,000 Road Resurfacing -SW66ST(67 AVE to66 CT)PTP 75,000 Road Resurfacing -SW68 AVE (72STto76TR)PTP 45,000 RoadResurfacing-SW79ST(63PLto59 AVE)PTP 150,000 Road Resurfacing -SW76TR(69 AVE to67 AVE)PTP 90,000 PARKS Fuch'sPark Playground,Bathroom &Minor Renovations FRDAP 50,000 50,000 CitywideParks Improvement CIP 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Citywide Parks Master Plan CIP 125,000 129,450 CitywideParks Master Plan-Improvements CIP 100,000 100,000 100,000 100,000 100,000 Palmer Park:Concession Stand Renovation CIP 50,000 50,000 BrewerPark:Replace Playground Equipment,Water Fountain CIP 80,000 69,000 Dante Fascell:Construct 2 Playground Structures CIP 100,000 85,000 Marshall Williamson:Convert Tennis Court to Full-Court Basketball &Install Outdoor Fitness Equipment CIP 35,000 MurrayPark Playground Equipment CIP 75,000 65,000 150,000 Underline Project LinearPark&Trail CIP 25,000 25,000 GibsonBethelCC-AirConditioning CIP 40,000 PROJECT DESCRIPTION SOURCE FY 15 Estimated Expenditures FY15 FY 16 FY17 FY 18 FY 19 FY 20 Gibson Bethel CC.-Fitness Equipment Replacement CIP 105,000 Gibson Bethel CC-Fitness Rubber Floor Carpet CIP 16,000 Gibson Bethel CC-Carpet Tile Replacement -Second Level CIP 22,000 Gibson Bethel CC-25High Definition Security Cameras CIP 50,000 Dante Fascell Park-Outdoor Fitness Equipment FRDAP 50,000 Dante Fascell Park-Tennis Court Resurfacing CIP 87,000 Dante FascellPark-Installation ofNew Drainage System (Tennis Courts)CIP 30,000 Marshall Williamson Park/Convert Tennis Courts to Multipurpose Courts CIP 65,000 Murray ParkAquatic Center -Shade Awning CIP 50,000 Palmer Park-Playground Structure Replacement (2-5YearOlds)FRDAP 50,000 FLEET REPLACEMENT 7PoliceVehiclesand Equipment CIP 272,000272,000 272,000 272,000 272,000 272,000 272,000 Tactical Van and Equipment LEFTF 70,00070,000 Hybrid Administrative Vehicle-Building Department CIP 25,000 Hybrid Administrative Vehicle-ParkingDivisionforLPR CIP 25,000 Trash Truck CIP 150,000 Garbage/TrashTruck CIP 380,000 Trash Crane CIP 250,000 Tractor CIP 10,000 CITY FACILITIES PoliceParking&FuelingFacility Improvements LEFTF 400,000 160,449 Public Works Reroof ofMainFacility CIP 18,00011,800 CityFacilitiesADA improvement ADA 30,000 30,000 15,000 MISCELLANEOUS Citywide Sewer Upgrades -Design GOB 200,000 113,850 700,000 300,000 Police Infrared Camera LEFTF 14,000 Citywide Replacement of Directional Street Signs&Posts PTP 150,000 150,000 150,000150,000 150,000 150,000 150,000 Transit Improvements FTP 80,000 176,100 80,000 80,00080,000 80,000 80,000 CitywideLandscaping Program TTF 15,000 15,000 15,000 15,000 Downtown Lighting CIP 150,000148,506 MIS Virtualization Project CIP 77,189 77,189 Street LineParking Infrastructure DP 101,250 City Welcome Signs CIP 25,000 46,230 100,000 Miscellaneous Infrastructure Improvements CIP 40,000 32,950 Tree Planting CIP 20,000 5,000 40,000 20,00020,000 20,000 20,000 Seawater Rising Study SWDTF 11,000 15,000 15,000 New Pay Stations CIP 30,000 50,00050,000 50,000 50,000 CitywideStriping CIP 40,000 Orchids CIP 25,000TrashPads(25Pads)CIP Rubber Mulch for Tree Grates -Downtown Area CIP • Pedestrian Crosswalkw/FlashingBeacons-Sunset Dr.Downtown Area CIP 60,000 SidewalkWideningalong Sunset Dr.(FromSW57 AVE &SW58 AVE)CIP 0 150,000 150,000 TOTAL CAPITAL IMPROVEMENTS BY YEAR 4,125,939 2,545,176 5,220,000 1,864,000 1,817,000 1,227,000 1,387,000 *Pending TAPgrant approval. Changes duetothe update ofthe estimated expenditures.More accurate informationis presented here after receiving bid results forthe projects. Redistributionofthefunds due tothe updates inthe estimated expenditures.Thetotal amount forof the project forFY16 remains the same. ThisprojectwasnotpreviouslyconsideredaCIPitem.AftertheCommission workshop,it was reconsidered and included within the CIP plan. As per Commission workshop,monies were allocated and distributed to include the next four years in the 5 year CIPplan. Original item valuewasreduced as perthe City Commissionrequest.Thevalue for the Rubber Mulch was increased duetothereduction in theOrchidsitembythesame amount. Table showing comparison between previous presented budget and the updated one. PROJECT DESCRIPTION SOURCE FY 15 Estimated Expenditures FY15 previously presented Updated Estimated Expenditures FY15 FY 16 previous FY 16 updated FY17 FY 18 FY 19 FY 20 Mango Terrace\Traffic Calming-Construction (Between 67AVE and 69 AVE,From72STtoSOST)LOGT 140,000 140,000 60,000 Manor Lane Traffic Calming-Construction (Between 72ST and US1,from63AVEto67 AVE)PTP 100,000 28,720 38,000 TwinLakes Roadway &Drainage Improvements -Construction SWDTF 91,500 91,500 61,500 LOGT 60,000 60,000 40,530 100,000 DEP 60,000 85,000 PTP 160,000 60,000 78 Street &63 Avenue Drainage &Roadway Reconstruction SWDTF 50,000 38,640 50,000 PTP 85,000 85,000 86,762 Citywide Street Resurfacing Program (Various locations) LOGT 60,000 60,000 31,530 40,000 40,000 60,000 60,000 60,000 60,000 PTP 20,000 20,000 Citywide Sidewalk Repairs PTP 40,000 40,000 38,000 80,000 80,000 40,000 40,000 40,000 40,000 Citywide Street Improvements LOGT 25,000 20,000 16,890 50,000 50,000 25,000 25,000 25,000 25,000 Citywide Sewer Upgrades -Design GOB 200,000 200,000 113,850 700,000 700,000 300,000 Police Infrared Camera LEFTF 14,000 14,000 City Welcome Signs CIP 25,000 25,000 46,230 100,000 100,000 Miscellaneous Infrastructure Improvements CIP 40,000 40,000 32,950 Tree Planting CIP 20,000 20,000 5,000 40,000 40,000 20,000 20,000 20,000 20,000 New Pay Stations CIP 30,00030,000 50,000 50,000 50,000 50,000 Orchids CIP 20,OOo|. Rubber Mulch for Tree Grates -Downtown Area CIP 30,0001 Column showing previous values