The Town Manager's memorandum presented on First Reading at the October 3, 2017 Council Meeting to create a Disaster Fund, allocate funds from the General Fund Balance to the Disaster Fund for Hurrican Irma expenses, and recognize donations received for specific Town events is attached hereto for reference.

CHANGES FROM FIRST READING

Pursuant to Section 166.241 (4) of the Florida Statutes, the final revision to the budget must be adopted within 60 days following the end of the fiscal year prior to November 30^th. At the end of FY 2016-17 the Town is well positioned with all expenditures below the approved budget at the Fund level, however, modifications to line items that significantly exceed budgeted appropriations within various departments are required. The significant line item adjustments are addressed below by Fund.

GENERAL FUND

At the end of FY 2016-17, the General Fund is projected to generate an operating surplus of $1,138,000 which includes the $1.39 million of carryforward approved by Council for FY 2017. From this operating surplus, $500,000 was approved for carry-forward to FY 2017-18 Budget as litigation/settlement reserve and approximately $150,000 represents projects that were not completed within the fiscal year and will be re-programmed for FY 2017-18. The remaining $488,000 is the available surplus which will be presented to Council in the form of a Carryforward Budget Amendment Ordinance to appropriate funds to the FY 2017-18 Budget for one time projects. Staff anticipates presenting the Carryforward Budget Amendment Ordinance for first reading in January 2018.

Below is a summary of the FY 2016-17 General Fund Revenue and Expense Budget and Fund Balance Analysis as at the end of the fiscal year.

Revenues

The General Fund projected net increase in revenue of approximately $526,000 is primarily a result of insurance settlement related to the Pizzi vs Town of Miami Lakes case ($500,000), reimbursement from the Special Revenue Fund – Peoples' Transportation Plan for audit adjustments ($175,000), an increase in Code Violation Fines ($77,000), Planning and Zoning related fees ($70,000), Public Works Permit Fees ($68,500) and Utility Services Tax ($66,000). The increase in revenue is offset by a significant decrease in FPL Franchise Fees (-$274,000), Communication Services Tax due to a refund claim for internet access charges (-$100,000), and Half Cent Sales Tax (-$75,000). Other revenues are projected at a net increase of $18,500.

Expenses

The General Fund total departmental expenditure allocations for FY 2016-17 are approximately $612,000 lower than budgeted. All departments are well below their budget allocation with the exception of the Planning division which exceeds their expense allocation by $58,000. However, this amount is offset by $16,400 in reimbursements from the “Cost Recovery” program, in addition to other deferred revenues not yet realized this fiscal year.

Although expenses are within budget at the Fund and Department levels, adjustments to line items that exceed the budgeted appropriations are required as detailed in Exhibit A, and the amounts that exceed the Town Manager's authority of $700 per month per Ordinance No. 2016-193 are discussed below:

Administration and Police – Transfers Out – an increase in allocation is required for a transfer out to the Facilities Maintenance Fund for the General Fund's pro rata share of costs associated with the operations, maintenance and repairs of the Town's Government Center. Administration portion represents 60% of the increased cost ($17,941) and the Police Department 27% ($8,073) for a total of $26,014 from the General Fund. Funds will be transferred from the Operating Surplus line item in Non-Departmental. The remaining 13% ($3,887) is allocated from the Building Fund.

Planning – Salaries and Planning Consulting – increase in salary appropriation for the Planning Director ($14,800) and Planning Consulting contractual service ($46,195) for review and approval of major developments, special projects and planning studies. As mentioned above, the cost of service is offset by actual and deferred revenues from “Cost Recovery” fees. Funds are transferred from various line items in the General Fund where there is a surplus.

Parks – Community Services – Administrative Support – Temporary staffing required to cover vacancy ($9,648). Park East Youth Center – Salaries and Benefits – Through a combination of employee turnover and staffing the newly built Youth Center for recreational programs, an increase in salaries and benefits is required ($10,620). Infrastructure – increase in appropriation to replace the exterior doors to the Youth Center due to flooding issues ($8,040). Funds will be transferred from various line items within the department where there is a surplus to cover these expenses.

Community Engagement and Outreach – Salaries and Benefits – Through a combination of employee turnover and adjustment in compensation for employees with additional responsibilities, an increase in salaries for the Committee and Events Coordinator is required ($8,930).

Public Works – Underground Utility Location Service – Due to AT&T's major construction of adding new communication conduit to upgrade services throughout the Town, there has been a surge in requests for standard and emergency locates. This has resulted in an increase in expenses for this service ($3,260) as well as engineering services for plans review ($6,045). The cost of the plans review is offset by the permit fee.

Non-Departmental – Bad Debt Expense – authorization to write off bad debt incurred for employment tax and false alarm service fees ($85,038). Funds will be transferred from Operating Surplus.

SPECIAL REVENUE FUND

The Special Revenue Fund is projected to end with $1,375,497 of revenues over budgeted expenditure allocations including the prior year carryover contingency reserve. Transfers are between line items within each sub-fund and this budget revision does not change the bottom line budget for the Fund.

Transportation Gas Tax - The projected fund balance at the end of FY 2016-17 for this sub-fund is $59,292. No adjustment is required to the budget.

Transit (PTP 20%) – increase in appropriation to transfer out to the General Fund $174,490 as a result of the Office of Citizen's Independent Transportation Trust (OCITT) 2016 audit surplus. Funds will be taken from the contingency line item. The projected fund balance at the end of the fiscal year for this sub-fund is $280,400.

People's Transportation Plan (PTP 80%) - This sub-fund is projected to end with $541,880 in revenues over expenditures. An increase in appropriation for street lighting utility expense ($4,675) is required and funds will be transferred from the street lighting repairs and maintenance line item.

Mobility Fee Trust Account Fund – This sub-fund ended with a projected $193,925 of revenues over expenditures. No adjustment is required to the budget.

Special Revenues – Other – Sub-fund balance at the end of FY 2016-17 is $300,000 representing contribution from developer for educational purposes. No adjustment required.

IMPACT FEES FUND

The Impact Fees Fund is projected to end with a total of $296,932 of revenues over budgeted expenditure allocation (Parks $295,149 and Public Safety $1,783). No adjustment to the budget is required.

BUILDING FUND

The permitting, inspection, and Building Code enforcement activities have significantly increased due to the Town's new developments, and as a result, the Building Department Fund is projected to end FY 2017 with approximately $1,803,770 in revenues over total budgeted expenditures. Line item adjustments are required for the annual maintenance and support of Building's permitting software Trakit ($4,258), to purchase IPads for the new building inspectors ($4,305), and a transfer out to the Facilities Maintenance Fund ($3,887) for the Building Department's pro rata share of costs associated with the operations, maintenance and repairs of the Town's Government Center. Funds will be transferred from Professional Services line item.

CAPITAL PROJECTS FUND

Substantial progress has been made toward implementing the Town's Five (5) Year Capital Improvement Program including completion of the following projects in FY 2017: Miami Lakes Optimist Clubhouse, the Dog Recreation Area, Canal Bank Stabilization Project along NW 77^th Court and NW 170^th Street, Hutchinson Roadway and Drainage Improvement, NW 64^th Avenue milling and resurfacing, FDOT Beautification Project at NW 154^th Street and Palmetto, IT infrastructure upgrades in the parks, and other parks improvements including replacing water fountains, soccer goals, rule signs, playground and safety surface and year 1 of 3 of new uniform furniture throughout the pocket parks.

At the end of FY 2016-17, the Capital Projects Fund balance is projected at $3,324,556. This amount includes projects that have started but are scheduled to completed in FY 2018: Lake Sarah Roadway and Drainage Improvement, West Lake Neighborhood Reforestation, FDOT Beautification Project at the southbound on NW 154^th Street and Palmetto, Mary Collins Community Center Improvements, Optimist Park Storage Facility, Emergency Generator and Enclosure, Safe Routes to School, and Windmill Gate roadway improvement. The unexpended funds will be re-programmed in the FY 2017-18 Budget with the Carryforward Budget Amendment Ordinance in January 2018.

Revisions to line items in the Capital Projects FY 2016-17 Amended Budget are required as follows:

Parks Improvements – Allocate funds for the replacement of damaged light rack at Miami Lakes Optimist Park offset by insurance claim. Funds will be transferred from the CIP Reserve for Parks ($24,250).

Transportation Improvements – Allocate funds for the purchase and installation of speed humps and signs as a traffic calming measure throughout Town neighborhoods ($9,030), replace damaged bus shelter offset by insurance claim ($11,880), and final payment to close out permit for the roadway portion of Lake Martha Roadway and Drainage Improvement Project ($6,111). Funds are transferred from the Beautification line item where the beautification project on the north side of NW 154 Street and the Palmetto was less than budgeted.

Stormwater Improvements – Allocate funds for final payment to close out permit for the drainage portion of Lake Martha Roadway and Drainage Improvement Project ($4,074). Funds are transferred from Hutchinson Drainage Improvement where the project came in under budget.

STORMWATER UTILITY FUND

The Stormwater Utility Fund is projected to end with approximately $337,454 in revenues over budgeted expenditure allocations. Line item adjustments are required to salary and benefits for the Public Works Manager position that was previously budgeted but not funded in FY 2017 ($36,302). Funds are transferred from the Health Insurance and the Utility's Repairs & Improvements line items where there is surplus.

FACILITIES MAINTENANCE FUND

The Facilities Maintenance Fund captures all costs associated with the operations, maintenance and repairs of the Town's Government Center. At the end of FY 2017, expenses are projected to exceed the budget by approximately $29,900 including salaries and benefits ($9,328), utilities ($5,198), and custodial and contractual maintenance ($15,374). The cost of centralized services is allocated between the General Fund (Administration at 60% and Police Department at 27%) and Building Department Fund (13%) and a transfer is required from these Funds to cover expenses and zero-out the Facility Maintenance Fund.