PROPOSED BUDGET IN BRIEF FISCAL YEAR Serving, enhancing, and transforming our community

Transcription

1 PROPOSED BUDGET IN BRIEF FISCAL YEAR Serving, enhancing, and transforming our community

2

3 TOMÁS P. REGALADO Mayor (305) FROM THE MAYOR Honorable City Commission and Citizens of the City of Miami, I am pleased to submit the City of Miami s FY Proposed Budget for your consideration, discussion, and eventual approval. As I near the end of my time as Mayor, and by extension my time as a public servant, I think not of what has happened, but what will happen. The City is in a strong position to make the most of the future ahead of us. I am proud that my consistent priorities of investing in activities and services that impact the quality of life of our residents and businesses, while keeping taxes low, have been implemented by the City Manager and his team so well for so many years. A legacy is not built on one budget, one year, or one decision; but on the myriad of choices, statements, and actions that we each make. The future, both near and long term, is not guaranteed. The first year that I took the oath of office for Mayor, the City s fund balance dropped to $ million. As of the end of this past year, the general fund balance was $ million and is projected to go higher. But, there is always work to do and aspects of City services that need improvement. In this budget, we are addressing some persistent needs. In particular, we are creating the Department of Veterans Affairs and Homeless Services to assist those that need the most help and deserve our attention. Also, we are elevating the Zoning functions to become a separate Department. Lastly, we are utilizing some of the City s fund balance to invest in much-needed capital, especially in the Departments of Information Technology, Parks and Recreation, Police, and Fire-Rescue. Our fine employees cannot do their jobs adequately if they don t have the equipment, systems, or facilities available and functioning. Along those same lines, I encourage our City Commission to approve the Miami Forever General Obligation Bond and let the people decide if this is something they want. Once it is on the ballot, I then encourage everyone to get out and vote in favor of this bond program. It can and will make Miami even greater than it is today. Finally, we have left the dark times of the Great Recession behind us, I encourage every employee of the City, elected or hired, to do their part to ensure that we don t return to those days again. I encourage conservative decisions by those that make them and vigorous effort by those that provide the services. Together, we can make Miami even greater than it is today. I believe that the future will be full of growth and distinction. It is up to each one of us to build that future. I look forward to your input on the FY budget. Respectfully, Tomás P. Regalado

4 DANIEL J. ALFONSO City Manager (305) Friday, July 7, 2017 This message serves as a summary of the FY Proposed Budget. It includes highlights from the four funds that comprise the Operating Budget as well as highlights from the Capital Budget and Multi-Year Capital Plan. As the former Vice-President, Joe Biden, said, Don t tell me what you value, show me your budget, and I ll tell you what you value. Therefore, this Proposed Budget reflects what is important to our stakeholders. THE FOUR FUNDS OF THE OPERATING BUDGET n The General Fund is increasing from $ million to $ million n The Special Revenue funds are increasing from $ million to $ million n The Debt Service funds are increasing from $ million to $ million n The Internal Service Fund is increasing from $ million to $ million Our 456,000 residents expect a broad range of services and have needs that vary greatly from neighborhood to neighborhood, group to group, and person to person. Staff from multiple offices and departments held Community Meetings in the month of May that were attended by more than 100 involved and caring participants. They provided input on services that they considered important, the City s Budget in general, and the proposed general obligation bond (or Go Bond, as we have called it). While no one likes to be taxed, the citizens in these meetings focused not on how high the taxes were, but rather on operating services that they wished would be added or improved as well as capital projects that needed to be constructed, repaired, or otherwise completed. This valuable input helped shape the FY Proposed Budget. 7th Year in a row of property tax rate reductions The first significant feature of this budget is that the total Property Tax Millage Rate is proposed to be lowered from mills in FY to mills in FY If the City Commission adopts the property tax millage rate as proposed in this budget, residents and businesses would benefit from the seventh year in a row of lowering the overall property tax rate (from mills in FY to mills in FY ). The average homesteaded home in the City of Miami has a taxable value of $209,998 and would save $55 this year when compared to the same taxable value in the previous fiscal year. With this budget, the City will realize $ million of additional property tax receipts. This increase in revenues is proposed to fund the following expenditure increases: $6.714 million of increases in salary and wages across all General Fund employees $9.924 million of pension increases $6.281 million of health care increases $2.292 million of worker s compensation increases $4.542 million of debt service increase 2

5 FROM THE CITY MANAGER The Capital Budget proposes $ million of new appropriations, including $ million from the General Fund, of which $ million uses prior year fund balance The second most significant feature of this proposal is the use of prior year fund balance to fund $ million of capital projects. Nonetheless, it is a structurally balanced budget with this one-time revenue being used only for one-time capital expenses. Notable projects funded in this manner include: Electronic plans review initiative spearheaded by the Building Department ($1.500 million), Repairs at the James L. Knight Center ($1.000 million) and at the associated parking garage ($1.250 million), An investment of $2.800 million in firefighting apparatus including the replacement of four Fire-Rescue Trucks, Fully funding the Parks, Public Works, and Solid Waste Operations Building at 20th Street ($1.000 million of general funds, $1.423 million from General Government Impact Fees, and $2 million of Public Works Special Revenue funds), Citywide parks roof repairs ($111,000), Citywide parks air conditioning repairs ($600,000), Citywide playground replacements ($735,000), Citywide pool repairs and improvements ($357,000), Repairs and improvements at the Little Haiti Cultural Complex ($1.850 million), Police capital projects ($817,000), Solid Waste heavy fleet replacement ($2.459 million), Maintenance and repairs of the Coral Gate wall ($95,000), Police technology infrastructure upgrades ($1.030 million), and Relocation of the City s current Technology Data Center to a more secure, advanced, and connected location ($1.977 million). This, in particular, is a significant step into the future for the City of Miami and will facilitate IT infrastructure needs and sustain its business continuity. $3.007 million of technology capital improvements Other new capital funding includes: $ million of parks capital improvements across all funds Parks capacity-enhancing capital projects which also includes matches for Florida Inland Navigation District eligible projects ($ million from Parks Impact Fees), Bathroom remodeling and repairs across departments ($4.431 million from Sanitary Sewer funds), Fire-Rescue capacity-enhancing capital projects ($2.300 million from Fire Impact Fees), Police capacity-enhancing capital projects which also includes Florida Inland Navigation District grant matches ($1.900 million from Police Impact Fees), and Drainage improvements ($2.299 million from Stormwater Utility funds). There are targeted improvements in operations as well. First and foremost, we are creating a new Department of Veterans Affairs and Homeless Services. This new department will assist walk-in guests and callers with the coordination of available veterans benefits and services and will administer and manage the placement 3

6 NEW DEPARTMENTS OF: n Veterans Affairs and Homeless Services n Planning Department n Zoning Department and care of the homeless population, provide outreach, assessment, placement, information, referral, and transportation services to homeless individuals and families. It is created by transferring in 44 existing positions from the Neighborhood Enhancement Team (mostly funded by special revenue grant funds), converting one parttime position to full-time, and adding two new positions (the new Department Director and a position to handle administrative duties). So, for minimal funding, we can assist those that served in the military and also focus on coordinating the treatment of the homeless population. Another targeted change in operations contained in this budget includes elevating the City s Zoning and Planning functions to the status of stand-alone Departments. This will allow each Director to focus on their individual steps in the development process, make targeted improvements both separately and together, and be held accountable for the advancement in their discrete areas of expertise. The new Zoning Department is created by converting two existing positions into a Director and Assistant Director and adding one new position to handle administrative duties. These changes, plus the hiring of already-funded zoning positions will help reduce the turnaround time in this critical service area. The Budget also includes grant match funding for the COPS 2017 grant, if the City is awarded the grant ($967,000), while also moving Police information technology functions to the Information Technology Department (transferring five positions from the former to the latter department) and adding 11 additional positions to the Information Technology Department to improve security, enhance maintenance of existing systems, and allow for centralized management of all technology functions. n 11 new technology positions n 53 all other new positions n Grant Match for 15 new Police Officers, if the City is awarded the COPS 2017 Grant There is a total net gain of 64 positions, which represents a net personnel growth of 1.5 percent across all departments. All personnel changes are summarized in the Personnel Overview at the end of the Overview Section of this book, immediately before the departmental budget narratives. New to the Proposed FY Budget is a section that addresses Resilience Initiatives (both Operating and Capital) throughout the City of Miami. Every employee eligible for a salary increase has it budgeted This Budget is also a responsible Budget in several different ways. First, the Budget funds the priorities expressed by our stakeholders in the Strategic Plan. It includes debt service obligations for new debt (especially the new P25 Public Safety Radio System) approved by the City Commission and funds Public Safety operating and capital. Second, the Budget includes salary increases for employees that are eligible for a raise. Third, the Budget includes departmental reductions in certain line items and the elimination of long-term vacant, civilian positions without reducing service to our citizens. 4

7 FROM THE CITY MANAGER In essence, our departments are doing more with less. But, we must be careful as we look to the future. And, the warnings are similar Doing more with less to those included in last year s message. While we appear to have delayed some of the difficulties for another year, FY was the first in seven years where the City did not add to its general fund balance. As well, FY was the first in three years where the City did not meet its Financial Integrity Principles, though this was more about the way that restricted funds were reported than about fund balances. But, this is the way that financial difficulties begin a few, small issues appear while large collective bargaining agreements are approved. We have been fortunate that property tax revenues, the single largest revenue source of the City, have grown in the double digits again this year, however we can be sure that this cannot continue indefinitely. If revenues do not grow faster or expenditures do not grow slower, the Five-Year Financial Forecast shows that the City will not meet the Financial Integrity Principle reserve requirements in FY As we described last year, revenues have grown greatly, but expenses have grown even faster. These projections do not take into account other issues such as increasing the property tax homestead exemption to $75,000 or the day when the City s Transportation and Trolley System will require General Fund support. For these reasons, it is best to take all appropriate steps to limit the rate of increase of future year expenditures. Thank you I want to thank the staff of the Office of Management and Budget for the many late nights while putting this document together. They are expected to address both detail and big picture issues as they work with all departments to develop this budget. The City of Miami is well served with engaged citizens, an energetic City Commission that always endeavors to serve the residents, and a talented and dedicated professional staff. This budget continues our commitment to balance fiscal responsibility and meet community priorities. I want to also thank the Elected Officials and residents of the City for allowing me to serve as City Manager for the last three years. I believe FY will be another year of Serving, Enhancing, and Transforming Our Community. Respectfully, Daniel J. Alfonso 5

8 CITY COMMISSION DISTRICTS Commission Districts District 1: Commissioner Wifredo Willy Gort District 2: Vice-Chairman Ken Russell District 3: Commissioner Frank Carollo District 4: Commissioner Francis Suarez District 5: Chairman Keon Hardemon District 5 District 1 District 2 District 4 District 3 6

9 ELECTED OFFICIALS TOMÁS P. REGALADO Mayor (305) DISTRICT 1 WIFREDO WILLY GORT Commissioner DISTRICT 2 wgort@miamigov.com (305) KEN RUSSELL Vice-Chairman krussell@miamigov.com (305) DISTRICT 3 FRANK CAROLLO Commissioner DISTRICT 4 fcarollo@miamigov.com (305) FRANCIS SUAREZ Commissioner fsuarez@miamigov.com (305) DISTRICT 5 KEON HARDEMON Chairman khardemon@miamigov.com (305)

10 FY BUDGET OVERVIEW The City adopts two budgets every year - an Operating Budget and a Capital Budget. The City s Proposed Operating Budget for FY : $1,059,026,000. $632,502,000 $1,059,026,000 The City s Proposed Capital Budget for FY : $632,502,000 with $73,133,000 newly appropriated. Debt Service Funds: $79,962,000 Internal Service Fund: $90,039,000 FY Proposed Operating Budget The City s Operating Budget is comprised of four separate fund groups: Special Revenue Funds: $163,814,000 General Fund: $725,211,000 General Fund - City s primary operating fund Special Revenue Funds - accounts for revenues that are restricted to a specific purpose Debt Service Funds - accounts for proceeds of City issued debt and repayment of principal and interest Internal Service Fund - accounts for internal cost allocation between various City cost centers 8

11 REVENUES AND EXPENDITURES PROPOSED BUDGET 9.3% 3.3% 2.2% 0.9% 0.3% 15.0% 9.1% 15.0% 45.0% Where the Money Comes From: General Fund Revenue Sources Total: $725,211,000 Property Taxes $325.9 million 45.0% Franchise Fees and Other Taxes $108.7 million 15.0% Charges for Services $108.7 million 15.0% Intergovernmental Revenues $67.6 million 9.3% Licenses and Permits $65.7 million 9.1% Other Revenues $23.7 million 3.3% Fines and Forfeitures $15.7 million 2.2% Transfers In $6.5 million 0.9% Interest $2.5 million 0.3% The General Fund includes revenues from a variety of sources, including fees, fines, and state and local taxes. Property tax revenue comprises 45.0% of total General Fund revenues and represents the largest source of funding for general operations. 4.1% Where the Money Goes: Expenditures by Category 15.5% 9.9% 27.4% 43.1% Salaries and Wages $312.4 million 43.1% Employee Benefits $198.7 million 27.4% Other Expenses $112.3 million 15.5% Budget Reserve $30.1 million 4.1% Transfer Out $71.6 million 9.9% Transfer to Capital $27.1 million Transfer to Special Revenue $11.3 million Transfer to Debt Service $31.4 million Other $1.7 million Personnel costs, including wages and employee benefits, represent the largest General Fund expenditure category. These costs account for almost three-quarters of the total General Fund expenditure budget. 2.7% Where the Money Goes: Expenditures by Function 9.7% 11.1% 8.6% 50.5% Public Safety $366.0 million 50.5% Public Works $80.7 million 11.1% General Government $70.7 million 9.7% Other Departments $62.1 million 8.6% Planning and Development $19.6 million 2.7% Non-Departmental Accounts $126.1 million 17.4% 17.4% More than half of General Fund spending is allocated to the provision of public safety services. The Police Department and the Fire-Rescue Department together comprise 50.5 % of the General Fund expenditure budget. 9

12 CITY ORGANIZATION CITY COMMISSION Chairman: Keon Hardemon District 5 Office of International Business Development Tomás P. Regalado Executive Mayor Chief Service Officer Chief Administrator / City Manager Daniel J. Alfonso Vice-Chairman: Ken Russell District 2 Commissioner: Wifredo Willy Gort District 1 Assistant City Manager Alberto N. Parjus Capital Improvements Jeovanny Rodriguez, PE Assistant City Manager Chief Financial Officer Fernando Casamayor Finance Erica T. Paschal-Darling, CPA Assistant City Manager Nzeribe Ihekwaba, PhD, PE Building Jose S. Camero, RA Fire-Rescue Joseph F. Zahralban Commissioner: Frank Carollo District 3 Commissioner: Francis Suarez District 4 Code Compliance Orlando Diez Community and Economic Development George Mensah Grants Administration Lillian P. Blondet Human Resources Angela Roberts Film and Entertainment Vicente Betancourt Parks and Recreation Kevin M. Kirwin Police Rodolfo Llanes Communications Diana Gonzalez City Attorney Victoria Méndez City Clerk Todd B. Hannon Independent Auditor General Theodore Guba, CPA General Services Administration Ricardo Falero Neighborhood Enhancement Team Vanessa I. Acosta, Esq. Real Estate and Asset Management Daniel Rotenberg Transportation Management Sandra Harris Veterans Affairs and Homeless Services Vacant Information Technology Kevin Burns Management and Budget Christopher Rose Procurement Annie Perez, CPPO Risk Management Ann-Marie Sharpe, ARMP, CPPT Planning Francisco J. Garcia Public Works Juvenal Santana, P.E., CFM Resilience and Sustainability Jane Gilbert, MPA Solid Waste Mario F. Nuñez Zoning Devin M. Cejas Equal Opportunity and Diversity Programs Vacant Agenda Coordination Anna M. Medina Downtown Development Authority Alyce Robertson Fire Fighters and Police Officers Retirement Trust Dania L. Orta Bayfront Park Management Trust Jose Gell Civil Service Board Tishria Mindingall Miami Sports and Exhibition Authority Lourdes Blanco General Employees and Sanitation Employees Retirement Trust Edgard Hernandez Civilian Investigative Panel Cristina Beamud Omni CRA Jason Walker Midtown CRA Pieter Bockweg Southeast Overtown Park West CRA Clarence Woods Liberty City Trust Elaine Black Coconut Grove BID Tim Schmand Wynwood BID Manny Gonzalez Miami Parking Authority Arthur Noriega Virginia Key Beach Park Trust Guy Forchion 10

13 Public Safety Fire-Rescue Police FY Adopted BUDGET GENERAL FUND BUDGET BY DEPARTMENT $125,451,500 $231,648,100 FY Proposed BUDGET $130,864,000 $235,161,000 FY Adopted POSITIONS 846 1,734 FY Proposed POSITIONS 847 1,752 Public Works Capital Improvements $2,824,600 $3,252, General Services Administration $22,526,000 $23,067, Public Works $21,242,600 $21,111, Solid Waste $31,484,800 $33,291, Transportation Management $0 $ General Government 0 Agenda Coordination City Attorney City Clerk City Manager Civil Service Board Code Compliance Commissioners Communications Equal Opportunity and Diversity Programs Film and Entertainment Finance Grants Administration Human Resources Independent Auditor General Information Technology Management and Budget Mayor Neighborhood Enhancement Team Procurement Resilience and Sustainability Veterans Affairs and Homeless Services $356,200 $8,164,800 $1,697,400 $3,578,400 $453,400 $5,816,000 $3,231,000 $1,160,700 $396,800 $422,700 $9,170,200 $1,566,000 $4,416,800 $1,282,700 $9,102,000 $2,535,600 $1,128,000 $5,800,400 $2,364,800 $139,800 $0 $397,000 $8,418,000 $1,753,000 $3,916,000 $428,000 $6,728,000 $3,602,000 $1,592,000 $438,000 $424,000 $8,873,000 $1,741,000 $4,603,000 $1,126,000 $10,881,000 $2,843,000 $1,246,000 $6,514,000 $2,701,000 $785,000 $1,657, Other Departments Community and Economic Development Parks and Recreation Real Estate and Asset Management Risk Management $3,482,500 $41,653,700 $12,391,400 $3,098,000 $2,411,000 $44,752,000 $12,052,000 $2,920, Planning and Development Building Planning and Zoning Planning Zoning $10,242,600 $6,633,900 $0 $0 $12,533,000 $0 $4,707,000 $2,305, Non-Departmental Accounts $94,735,200 $126,119, TOTAL $670,198,600 $725,211,000 4,346 4, *Budget amounts are General Fund only. Position counts are for all funds.

14 Regional Taxing Authorities 2 YOUR PROPERTY TAX BILL Allocation of Each Dollar Paid in Property Taxes - FY Miami-Dade County 27 City of Miami 37 City of Miami Operating Miami-Dade Public Schools 34 City of Miami Debt 3 3 MILLAGE AND PROPERTY TAX FY TOTAL Adopted MILLAGE RATE MILLS General Operations: General Obligation Debt: FY TOTAL PROPOSED MILLAGE RATE MILLS General Operations: General Obligation Debt: The City s total proposed property tax rate for FY is , a reduction of from last year s total tax rate. Total Assessed Value $209,998 $500,000 $1,000,000 Average Homestead FY Taxes $1,741 $4,145 $8,290 FY Taxes $1,686 $4,015 $8,030 Taxpayer Savings $55 $130 $260 12

15 CAPITAL OVERVIEW Summary by Department Summary by Program Fund Name Total Cost Total Funding Priors Current Projection Unfunded Six Year Plan Six Year Plan Years Five Years Parks and Recreation 453,611, ,285, ,755,000 24,837,000 53,693, ,019,000 Information Technology 16,264,000 16,264,000 1,030,000 15,234,000 Office of Capital Improvements 1,159,948, ,385, ,110,000 12,275, ,563, % 9.2% 7.0% 1.7% 0.5% 0.2% 0.2% Fire-Rescue 133,299,000 31,147,000 18,884,000 5,100,000 7,163, ,315,000 Real Estate and Asset Management 158,734,000 36,866,000 31,806,000 5,060, ,868,000 Police 159,615,000 13,975,000 7,931,000 2,767,000 3,277, ,917,000 Public Works 177,343,000 25,434,000 22,762,000 2,672, ,909,000 Solid Waste 6,943,000 2,943, ,000 2,658,000 4,000, % 31.4% Building 2,475,000 2,475, ,000 1,500,000 General Services Administration 8,840,000 6,940,000 2,289, ,000 3,939,000 5,839, % Transportation 9,066,000 5,599,000 3,399, ,000 1,950,000 5,417,000 Communications 514, , ,000 68,000 Risk 300, , ,000 Neighborhood Enhancement Team 195, , ,000 30,000 Office of Planning 140, , ,000 Procurement 60,000 60,000 60,000 City Clerk 10,000 10,000 10,000 Grand Total 2,287,357, ,502, ,347,000 73,133,000 70,022,000 1,724,877,000 n Disaster Recovery... 1,567,000 n Solid Waste... 2,943,000 n General Government... 58,331,000 n Storm Sewers.. 67,822,000 n n Mass Transit... 1,219,000 Streets and Sidewalk ,292,000 n Parks and Recreation ,709,000 n Public Facilities ,011,000 n Public Safety ,017,000 n Sanitary Sewers... 10,591,000 TOTAL: 632,502,000 Summary by Funding Source Summary of Funding Status 4.6% 4.3% 1.5% 0.8% 0.6% 23.0% 20.8% 63.1% 16.1% 7.8% 8.3% 65.3% n City Funds ,116,000 n City Debt Proceeds ,416,000 n State... 27,109,000 n Private/Other... 4,930,000 n Miami-Dade County... 29,105,000 n Other Local Units... 9,330,000 n Federal... 3,496,000 n Funded ,503,000 n Partially Funded ,811,000 n Unfunded... 1,369,959,000 npartially Funded Allocated 179,999,000 npartially Funded Shortfall 168,812,000 TOTAL: 632,502,000 TOTAL: 2,171,273,

16 TAX ROLL AND MILLAGE HISTORY 48 Net Assessed Valuation of Taxable Property and Total City Millage Rate Taxable Assessed Value (Billions) Total Millage Rate Proposed FISCAL YEARS Taxable Assessed Value Total Millage Rate 14

17 FINANCIAL HISTORY Revenues, Expenditures, and General Fund Ending Balance ,044, $147,404, ,852, ,105,055 $126,256,513 $112,422, ,521, ,656, ,353,204 GF Revenues/Expenditures (Millions) $100,450,144 $87,959,878 $82,959,878 $57,544,000 $75,471, GF Ending Fund Balance (Millions) 400 $17,473,285 $19,644, Projected 2018 Proposed FISCAL YEARS GF Ending Fund Balance GF Revenues GF Expenditures 15

18 FULL TIME EMPLOYEES 2008 to Public Safety 2,310 2,413 2,161 2,383 2,282 2,286 2,338 2,447 2,548 2,580 2,599 Public Works General Government Other Departments Planning and Development TOTAL 3,926 4,025 3,482 3,716 3,630 3,656 3,727 3,882 4,179 4,346 4,410 FISCAL YEARS Public Safety Public Works General Government Other Departments Planning and Development 16

19 DEBT SERVICE OVERVIEW GENERAL OBLIGATION BONDS Maximum Annual Debt Service of approximately $26.9 million (FY ) Final Maturity in 2029 General Obligation Bond Debt Service SPECIAL OBLIGATION BONDS Maximum Annual Debt Service $44.6 million (FY ) Final Maturity in 2039 Special Obligation Bond Debt Service 17

20 PROPOSED BUDGET IN BRIEF FISCAL YEAR Serving, enhancing, and transforming our community