ProPosed FY 2010/11 Work Plan And Budget - City of Miami Beach

FY 2010/11 Proposed Work Plan and Budget Message
September 10, 2010
Page 6
• $3.66 million FY 2008/09 Year-end Surplus
This was set aside to address potential shortfalls in FY 2010/11, however,
it will require a waiver of City policy as described below.
• $3.6 million Transfer of Prior Year Surplus from The Parking Operating Fund
There are sufficient funds available for prior year’s revenue in excess of
expenditures to provide for this transfer. However, the City must raise
Parking fees as described below for these funds to be recurring.
• $10.1 million Millage Recapture
Operating millage increase of 0.5600 needed to recapture a portion of
the $13.7 million revenue loss due to decline in property values outside of
the City Center RDA . Further, it is estimated that approximately 40
percent could either have no impact or could actually experience a
savings, due to offsetting declines in property values. Further, an
additional 50 percent of homeowners are estimated to have their taxes
increase less than $300. As a result, approximately 90 percent of
homesteaded properties will have less than a $300 per year ($25 per
month) impact,
Additional Employee “Give-Backs”
As noted above, approximately one-quarter of the budget shortfall is anticipated to be addressed
through employee “give-backs”. To-date we have ratified and approved agreements with four of
our five bargaining units: The American Federation of State, County and Municipal Employees
(AFSCME), the Government Supervisors Association (GSA), the Fraternal Order of Police (FOP),
and the International Association of Fire Fighters (IAFF). Each of these bargaining units has agreed
to significant concessions over the 3 year terms of their agreements. In addition, similar
concessions began to be implemented for non-bargaining unit employees as early as October
2009. As a result between FY 2009/10 and FY 2010/11, approximately $13 million in
concessions Citywide will be achieved from these groups.
Regrettably, in August, after more than a year of negotiations, we declared Impasse with the
Communications Worker’s of America bargaining unit (CWA). The employee give-backs in the
General Fund budget assume approximately $1.4 million in concessions from CWA to be achieved
by the end of the fiscal year, towards a target of $2 million in CWA concessions across all funds.
Efficiencies and Reductions
In addition to employee “give-backs”, we have identified approximately $1.3 million in recurring
efficiencies and reductions in the General Fund while only tweaking service levels in the few areas
described above. The impact of additional efficiencies in the Internal Service Funds Departments
result in a total savings of $1.5 million in the General Fund. We have also reviewed our