City of Miami

PROPOSED

Fiscal Year 2009

BUDGET

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Budget Focus• To prepare a structurally balanced general

operating budget.

• To provide a budget, which conforms to Generally Accepted Accounting Principles (GAAP).

• To present a budget using current financial resources as reported in the City of Miami CAFR.

• To receive citizen feedback to ensure the upcoming budget is consistent with the needs of our citizens.

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Budget Issues• Continuation of HB-1B

• Amendment 1

• SB 1588 –Glitch Bill

• Fuel Costs

• Utility Costs

House Bill 1B

• Limits the increase in the City’s rolled back millage rate from year-to-year.

• City removed from list of municipalities under special financial concern in 2007.

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Amendment 1

• Approved by the voters on January 29, 2008.

• Provided an additional $25k exemption up to the 3rd $25k of assessed value on homestead properties.

• Provided a $25k exemption on tangible personal property on businesses.

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Amendment 1

• Provided portability of Save Our Homes up to $500k.

• Reduced Current Year Gross Taxable Values by $1.2 billion in Tax Year 2008.

• City’s Current Year Gross Taxable Values increased by 1.6% in Tax Year 2008 compared to 14.5% in Tax Year 2007.

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SB 1588 –Glitch Bill

• Changed the calculation of the maximum millage rate with a majority vote.

• Takes out the effects of Amendment 1.

• Does not effect the calculation of the maximum millage rate with a 4/5th vote.

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Fuel Prices

• Gasoline prices are projected to average $3.82 per gallon compared to $2.81 per gallon at the start of FY’08.

• Diesel prices are projected to average $4.27 per gallon compared to $2.88 per gallon at the start of FY’08.

• Overall, fuel expenses are forecasted to increase over 40% from $5 million to $8 million in FY’09.

Source: Department of Energy, August 2008 Short-Term Energy Outlook8

Utility Costs• On July 1, 2008 the PSC approved an adjustment

to FPLs pass-through fuel surcharge.

• On average, electricity prices are anticipated to increase from $8.6 cents per kilowatt hour in FY’08 to $10.1 in FY’09.

• Utility costs are forecasted to increase 20% in FY’09.

Source: fpl.com/news and Department of Energy, Energy Information Administration, Short-Term Energy Outlook –August 2008

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General Fund

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Revenues and Other Sources by Source of FundsProposed Budget 2009General Fund -$525,108,930

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Total Revenues and Other Financing SourcesFiscal Years 2003 to Proposed Budget 2009General Fund

8.60% 3.65%

14.08%

9.86%-5.30% 0.27%

Source: City of Miami Comprehensive Annual Financial Reports 12

Revenues (Inflows) –General Fund

• Represents a $1.4 million or 0.3% increase over the FY’08 Adopted Budget.

• $6 million in additional property tax revenue based on proposed millage rate.

• Includes $3 million in additional Solid Waste Fee revenues.

• Includes $2 million in Mural Revenues.

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Expenditures and Other Uses by FunctionProposed Budget 2009General Fund -$525,108,930

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Total Expenditures and Other Financing UsesFiscal Years 2003 to Proposed Budget 2009General Fund

9.97%7.02%

7.21%

17.12%

0.27%-9.52%

Source: City of Miami Comprehensive Annual Financial Reports 15

Expenditures (Outflows) –General Fund

• Overall, total proposed expenditures will increase $1.4 million over the FY’08 Adopted Budget.

• Reduced $16.9 million in City-wide departmental spending.

• Provides $12.7 million more for Public Safety.

• Eliminated 31 vacant full-time positions at a total cost savings of $2 million.

• Provides $2.8 million for the repayment of the Street Bonds approved in FY’08.

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Expenditures (Outflows) –General Fund

• Provides 25 additional Police Officer positions effective April 1, 2009.

• Supports across the board increases provided to all union employees on October 1, 2008.

• $1 million towards the Pension Stabilization Fund.

• $300,000 for the Elderly Feeding Program.

• $200,000 for the Action Community Center.

• Reduces the number of general fleet replacement from 91 vehicles to 58.

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Expenditures (Outflows) –General Fund

• $1 million from mural revenues to be used for new park land acquisition, green space and public realm enhancements.

• Additional $2 million to Parks and Recreation.

• 14 new positions to the Finance Department.

• $3 million for additional fuel increases and $2 million for additional utility costs.

• $1.3 million for PC hardware and software replacement.

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Expenditures (Outflows) –General Fund

• Limit the use of fund balance to only $5 million for contingency purposes.

• Dedicates $3 million in additional Solid Waste Fee revenues for the purchase of new Solid Waste vehicles.

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Key Changes

• Uses more storm-water utility fund distribution in support of eligible General Fund storm-water projects and street cleaning operations.

• Reserves outstanding litigated claims at September 30, 2008 in the General Fund Balance.

• Modifies Solid Waste service delivery plan.

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Questions

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