| | | | | | | | |  | Town of Miami Lakes
Memorandum | |
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| | | | | | | | | To: | Honorable Mayor and Councilmembers
| | From: | Alex Rey, Town Manager
| | Subject: | FY 2016-17 Budget Revision
| | Date: | 5/2/2017
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| | | | | | | | | Recommendation: | It is recommended that the Town Council approve a revision to the FY 2016-17 Amended Budget modifying line items within the General, Building Department, Impact Fees, Capital Projects and Stormwater Utility Funds. These changes can be implemented by Resolution since the revisions are below the total appropriations in each fund and has no impact on the Budget's bottom line. The proposed revisions are described below and summarized in Exhibit A. |
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| | | | | | | | | Background: | Budget revisions are periodically required throughout the fiscal year to adjust line item amounts. The FY 2016-17 Budget adopted by Ordinance No. 2016-197 allows for the Town Manager to administratively transfer amounts not exceeding $700 per month from any unencumbered line item of allocation of funds to another line item classification within the same department, provided that the Town Manager reports such transfers at the next regular Town Council meeting. This proposed revision exceeds the Town Manager's authorization and is therefore being presented to Council for approval. The total Budget as amended remains unchanged at $35,413,282 for all Funds.
GENERAL FUND
Cost of Living Adjustment - $25,000 - The FY2016-17 Budget adopted on September 20, 2016 included an across the board 2% cost of living adjustment (COLA) effective April 2017. The full amount was budgeted in Administration Department for easy reference and transparency. This budget revision reallocates this amount to the various departments to properly reflect the 2% increase in the salaries line item by Department.
Employee Retention Program - $100,000 – The FY 2016-17 Budget provided funds for the development of an Employee Retention Program. On April 3, 2017, staff presented an
Employee Retention Plan to Council. Elements of the Program include salary increases to bring employees closer to the average compensation for comparable positions ($17,000); customer service training, certification and professional development ($20,000); an annual leave cash out ($14,500) and wellness initiatives ($5,500). In addition, the budget revision accounts for adjustments in compensation for employees with additional responsibilities ($43,000).
Professional Services – Independent Contractor Agreement
- Due to the vacancy of the Public Works Director position, a consultant was contracted under the Independent Contractor Agreement (ICA) in the interim to oversee and carry-out the functions of this position and other strategic capital project initiatives. This includes the operations, maintenance and improvements of the Town's infrastructure such as canal cleaning, street sweeping, litter debris pick-up, sign repairs and replacement, roadway and sidewalk repairs, storm drains and street lighting. The cost over a 5-month period is split between the General Fund and Stormwater Utility Fund. Funds will be transferred from the Salaries line item where the position was originally budgeted. The vacancy was subsequently filled by a full-time employee. ($14,068)
- Due to the Procurement Manager vacancy, a consultant was contracted to provide professional procurement services under an ICA. This position oversees procurement processes in the Town and manages vendor contracts. A transfer is required from Salaries where the position was originally budgeted to offset the expense for the remainder of the fiscal year. The position was reclassified to an Administrative Services Manager and was filled in April 2017. ($20,000)
- With the implementation of the 2025 Strategic Plan and in light of the operational and maintenance needs for the new facilities and infrastructures as identified in the Strategic Plan, a Long Term Financial Plan is of utmost importance. A consultant was hired to assist in the financial planning exercise to design a model to facilitate long term forecasting of revenues and expenditures throughout the duration of the Strategic Plan implementation and beyond. Surplus funds are being transferred from the Independent Audit line item ($10,000) due to a new audit contract negotiated lower than budgeted, and a small portion from Office Supplies ($400) for a total of $10,400 to complete the Long Term Financial Plan.
- This budget revision also includes a fund transferfor theParks Business Operations Supervisor position from the salaries line item as initially budgeted to ICA ($78,000); as well as transfer of funds as budgeted for the Parks Athletics Manager from the School Crossing Guard division to fully reflect in the Parks Community Services Department ($25,000).
Election Costs - $6,800 - The November 2016 general election and run-off election costs for the Mayoral Seat, Seats 1, 3 and 5 exceed the budgeted amount of $60,000. Funds are being transferred from the Agenda Manager line item where there is a surplus to cover this expense.
BUILDING DEPARTMENT FUND
The permitting, inspection and Building Code enforcement activity in the Building Department has significantly increased due to the Town's new developments, and as a result, two inspectors were hired under the Independent Contractor's Agreement to handle the increased inspections and permit activity. A transfer of $215,000 from the Building Department Fund reserve will cover expenses which is offset by the increase in revenues.
IMPACT FEES FUND
Public Safety Vehicles and Equipment - $90,000 - The FY 2016-17 Budget provides salary and benefits for two additional Police Officers effective August 2017. The additional officers will meet the anticipated increase in demand for services based on the Town's expected population growth due to new development on the west side of Town. This requires the purchase of two new police vehicles ($60,000) which will be funded by Public Safety Impact Fees. Impact Fees are collected from the developer and are intended to offset the cost of additional capital resources required to maintain adequate police protection for the existing population and to accommodate projected population growth due to new development. Additionally, impact fee funds will be used for the purchase and installation of 3 radar speed signs ($30,600): one at NW 87th Avenue north of 152nd Terrace and two on Miami Lakeway South at the corner of Poinciana Court, and close to Rosewood Road. These are intended to reduce speeding as well as inform and educate motorists. Funds will be transferred from the Impact Fee Fund reserve for contingency.
CAPITAL PROJECTS FUND
NW 82th Avenue and Oak Lane Reconfiguration - $70,000 - Pursuant to the recommendations provided in the Traffic Operations and Mobility Study dated January 2017, funds are required for planning, survey and design ($20,000) and construction services ($50,000) to reconfigure NW 82nd Avenue and Oak Lane. This includes reconfiguring the dedicated southbound right turn lane into a right-turn/left-turn lane on the southbound approach to allow safe left turn movement at the intersection, as well as restripe and reconfigure existing crosswalks to ensure ADA compliance. This project will be funded by Mobility Fee Funds. Funds are being transferred from the Adaptive Signalization Program line item where the executed contract for this project came in under budget.
Canal Bank Stabilization - $45,000 - The Town obtained a $1 million grant through the Florida Legislature (via the Florida Department of Environmental Projection, FDEP) to fund Phase I of the Canal Stabilization Project. Phase I of this project stabilized approximately 3,000 linear feet of the Golden Glades and Peter's Pike canals along the residential side of the canal along NW 170th Street from approximately NW 78th Avenue to just south of NW 170th Street on NW 77th Court. Subsequent phases of the project will address stabilization of the residential side of the canal along NW 170th Street from NW 78th Avenue toward I-75 and is subject to obtaining State funding.
The survey and geotechnical work, however, was done on the entire cross-section of the project which is estimated at $3 million dollars. As a result, a transfer is required from the Capital Projects Fund – Stormwater Improvements reserve for contingency line item to cover the portion of the survey and geotechnical work that is not included in Phase 1. Phase 1 was recently completed within the $1 million grant allocation.
NW 67th Avenue Widening Project - $148,000 – At the March 7, 2017 meeting, the Town Council authorized the Town Manager to execute a work order to Marlin Engineering under contract 2012-04ME to include design, permitting and construction administration for NW67th Avenue Widening Project. The total cost of the project is estimated at $615,000 (design $148,000 and construction $467,000) and we are expecting to get reimbursed from the Road Impact Fee Program. For the initial capital outlay, this budget revision reallocates $130,000 from the 154th Street and 77th Court Project line item which was to provide design plans and construct an added 150 feet to the northbound right turn lane at 154th Street and 77th Court, as FDOT will perform the work as a pushbutton project at no cost to the Town. In addition, $18,000 will be transferred from the Miami Lakes Green (NW 77th Avenue Greenway South) Project which was to provide design plans for the construction of sidewalks, bicycle infrastructure, curb ramp and crosswalks funded by a $600,000 TAP grant. FDOT recommended postponing construction to coincide with FDOT's Palmetto construction project. Funds will therefore be reprogrammed in future years.
NW 64th Avenue Resurfacing- $35,000 - Funds are required to conduct pavement repair on a section of the roadway on NW 64th Avenue between Miami Lakeway North and NW 162nd Street ($35,000). This includes milling and resurfacing 650 linear feet of full width pavement, as well as installation of pavement markings and reflective markers. Funds are being transferred from the FDOT Beautification Project line item that included landscape and irrigation along NW 77th Avenue between NW 154th Street and 167th Street. This project was partially funded by a FDOT grant and cost less than budgeted.
STORMWATER UTILITY FUND
Funds in the total amount of $72,050 are transferred from the Stormwater Utility reserve for contingency line item to cover the following expenses:
- NPDES Permit Fees - To comply with the requirements of the National Pollutant Discharge Elimination System (NPDES) Permit, and through an Interlocal Agreement with Miami-Dade County and the Town, the County performs annual water quality sampling, monitoring, laboratory analyses, data evaluation and compilation of the water quality annual report. This budget revision increases this line item ($10,000) to budget for the full cost of services provided per the Interlocal Agreement.
- Professional Services – As mentioned above, a consultant was hired to fill the Public Works Director vacancy and the cost split between the General Fund and Stormwater Utility Fund. The cost to the Stormwater Utility Fund is $14,100.
- Canal Maintenance and Slope Mowing – The new 2016 executed contract for canal systems maintenance services include the added service for canal slope mowing 9 times per year ($26,230), and an increase in cost for above-surface cleaning and debris removal ($21,720). It should be noted that FDOT's 826 Capacity Improvement Project eliminates the embankment on the east side of NW77th Court thus reducing the acreage for slope mowing and partially offsetting the expenditure for this service.
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