GENERAL FUND

The General Fund Balance at the beginning of FY 2015-16 was approximately $4,567,000. During the year, $1,504,340 was transferred from Fund Balance for FEMA reimbursement ($747,000), additional funding of legal fees and a litigation reserve ($550,000), special election mail ballot ($75,000), and other miscellaneous projects ($132,340) including the Town's marketing initiative, software enhancements, and an increase in Public Officials Liability insurance premium. This reduced the Fund Balance to approximately $3,062,000.

At the end of FY 2015-16, budgeted operations are estimated to result in a net surplus of approximately $1,400,000 with an estimated $1,328,165 of expenditures lower than budgeted, an excess of $362,692 of revenues over budget, and a transfer out of $291,334 to the Building Fund which represents the Building Departments accumulated fund balance as a result of the separation from the General Fund. From the net surplus of approximately $1,400,000 staff is now proposing to bring over $1,399,523 into FY 2016-17 Budget: $120,480 for projects that were budgeted but not completed, $600,000 for legal fees in defending and/or potential settlement in the criminal case of Michael Pizzi vs Town of Miami Lakes, $200,000 for beautification projects which includes a grant match of $100,000, $162,300 for parks improvements, employee retention program $100,000, reinstate travel and training budget $38,300,contractual legal services on land use development issues $24,000 and $20,000 for media strategy implementation and training. This will leave an unassigned reserve of $134,443 to fund one-time projects at the Council's discretion.

The carryover amount to the General Fund FY 2016-17 Budget as proposed is summarized in the chart below and detailed in Exhibit A:

General Fund Carryover Summary

Project Related Expense Carry-over - $120,480 - The budget amendment includes the programming of expenses for projects that were budgeted but not completed in the prior fiscal year. It includes $50,000 for Town Branding to market and bring new business to the Town of Miami Lakes; $7,105 for the Strategic Plan web portal and Community Outreach; $21,872 to replace the safety surface under the playground at Royal Oaks Park; $21,000 for landscape and ground cover at the SE corner of 154th Street and Palmetto; $11,240 for a new alarm/electrical panel at Mary Collins Community Center; $4,998 for the replacement and installation of six (6) doors at Royal Oaks Park; and $4,265 for entrance signs at Park West.

Legal Fee Settlement - $600,000 – In the criminal case of Michael Pizzi vs Town of Miami Lakes staff is proposing to appropriate $600,000 for the potential settlement of legal fees. At Council's discretion, this amount can either be appropriated as Litigation Reserves with this budget amendment or remain in Fund Balance for appropriation at a later date.

Beautification Projects - $200,000 – As part of the Town's Strategic Plan Goals to enhance signature beauty and park landscape, staff is proposing to appropriate $100,000 to complete tree and landscape installation and irrigation enhancements in accordance to the Beautification Master Plan along NW 154th Street between the Palmetto Expressway and NW 67th Avenue. In addition, the Town was awarded $100,000 in grant funding from the Florida Department of Transportation which requires a Town match of $100,000. This amendment allocates $100,000 for the match from the prior year's operating surplus and transfers said amount to the Capital Projects Fund where the project is budgeted.

Parks Improvements - $162,300 – Funding includes replacing the water fountains ($20,000) and soccer goals ($25,000) at Royal Oaks Park, new playground and safety surface at P84-West Lakes ($25,000) and P91-Royal Oaks (25,000), drainage improvements at P87-Florinda Estates ($17,000), swale curbing, sod and irrigation to address parking issues at P35-Big Cypress Drive ($15,000), sod restoration at P44 & P45-Miami Lakes Drive ($6,800), remove playground at P69-Lake Sandra ($5,000), and the replacement of rule signs ($23,500) throughout the Town's 92 mini parks phased over years.

Employee Retention - $100,000 - At the September 2016Council meeting, staff was directed to develop an employee retention program to be presented to Council in April 2017. This amendment sets aside a portion of the cost ($100,000) from the prior year operating surplus to implement the employee retention plan, upon Council approval. Proposed elements of the program will include wellness initiatives, customer service training and professional development, employee recognitions and rewards as well as bonuses to bring employees closer to the average compensation for comparable positions.

Travel and Training - $38,300 – At the December Meeting, Council approved fully reinstating the travel, training and education budget using the prior year's surplus funds. However, due to the immediate need for available funds to accommodate Council and staff training and travel prior to the adoption of the carryover budget amendment, instead, a budget revision was approved and processed to temporarily transfer $10,000 from the Independent Audit line item to cover registration, training, travel and per diem. This amendment reverses the $10,000 to the Independent Audit line item and fully reinstates the Travel, Training and Education Budget at $38,300 across Town Council and General Fund staff.

Legal Services for Land Use Development - $24,000 – The Town is dealing with several complicated development, and planning/land use requests including the Lennar development, Graham developments, Loch Ness development law suit and others. As a result, in coordination with the Town Attorney, staff recommends retaining legal specialized outside counsel to protect the best interest of the Town.

Media Strategy Implementation and Training - $20,000 - This initiative proposes to hire a consultant to assist the Town with increasing public awareness of the Town through local, regional, and national news media. The goal is to develop and maintain a narrative in the public eye, showcasing the Town of Miami Lakes, not as a continuation of its recent past at the mayoral level, but instead as the vibrant, positive, growing community it truly is. The consulting firm will provide multiple facets of media training, including media optimization, which will cover how to identify, develop, pitch and market positive news stories involving the Town, its leaders, employees, and residents. The media strategy consulting firm will also provide one-on-one training for those designated by the Town Manager, who will represent the Town in media interviews. The consultant will also provide guidance, direction and feedback on editorials, news releases, and other written materials.

GENERAL FUND UNASSIGNED SURPLUS

As mentioned earlier, if Council approves the prior year carryover amendment as proposed, the General Fund will have an unassigned prior year operating surplus of $134,443 which can either remain in fund balance, be used to fund the following initiatives that have been requested by individual Councilmembers, or, can be used as otherwise directed by Council.

• Sunday On-Demand Transit Service - $4,500 – At the October, 2016 Council Meeting, staff was directed to try to find funds within the FY 2016-17 Budget to possibly reinstate the On-Demand Transit Service and to pursue other alternatives such as Uber/Lift service. To date, staff is still studying/reviewing the alternatives and in the interim. Staff has earmarked $4,500 from the prior year carryforward amount to fund the On-Demand service in a limited capacity of two hours drop-off and pick-up at Our Lady of the Lakes Church on Sundays.

• Black Olive Tree Removal - $50,000 – The Town's 15-Year Removal Program requires funding at approximately $85,000 per year for the removal of approximately 3,040 black olive trees in phases which will allow us to mitigate the costs involved with the program and the impact to the Town's tree canopy. Since its adoption in 2012, the Town has not been able to fully fund the Program annually; however, it remains a high priority for the Council and residents. FY 2016-17 Budget currently provides for $28,807 for black olive tree removals.

• Tree Removal at Lake Katherine - $50,000 - The business community at the NE corner of 154th Street and Miami Lakeway Drive have expressed concern about the overgrowth of trees and shrubbery which blocks their visibility from the roadway. The area is full of Mahoe trees that are on Miami Dade County Prohibited Tree Species List and their removal is anticipated to enhance economic development through improved visibility and aesthetics to the local shopping center..The area is also adjacent to the upcoming Safe Routes to Schools project on Miami Lakeway North and will receive new landscaping and tree planting consistent with the Town's Beautification Master Plan as part of that project to improve the overall aesthetics of this area.

CAPITAL PROJECTS FUND

At the beginning of FY2015-16, the Capital Projects Fund had $5,576,804 available to fund capital improvements throughout the Town. During the year, the Fund received $1,411,333 in inter-governmental revenues and inter-fund transfers, and approximately $4,269,209 was spent on completing budgeted projects. These projects include the Youth Center at Park East and Playground, Lake Martha Roadway and Drainage improvements, West Lakes Phase A Roadway and Drainage improvements, beautification projects on NW 154th Street at the Palmetto Expressway and along 77th Court to Miami Lakeway North and South, installation of pedestrian crosswalks at Main Street and Bull Run, design of on-road striping of bike paths throughout the Town, and substantial completion of Optimist Clubhouse. This resulted in a net surplus of $2,718,928 at the end of FY 2015-16.

The FY 2016-17 Adopted Budget assumed a carry-forward amount of $1,811,680 of the fund balance in the Capital Projects Fund for the generator at Town Hall, park projects, roadway and drainage projects, and stormwater improvements including the canal stabilization project. This budget amendment adjusts the carry-forward amount for the net difference of $907,248 and re-appropriates the balances for projects which were funded yet not completed from the prior fiscal year. In addition, due to timing, revenues that were not received in the prior year are also re-budgeted to offset the project expense. The difference is allocated to the contingency reserves for future project expense. These projects are summarized in the chart below. See Exhibit A.

Capital Projects Fund Carryover Summary

SPECIAL REVENUE FUND

Impact Fee Fund - Art in Public Places - $14,400 - In conjunction with Miami Dade County Ordinance and the construction of the Youth Center at Park East, the Town is required to appropriate not less than 1.5% of the construction cost of any new governmental building for the purpose of acquiring works of art. Funds will be used to commission a professional artist to design an interior art piece that artistically enhances the existing architecture and complements the use and vision of the Youth Center. This amendment transfers $14,400 from the Impact Fee Fund – Parks Improvements reserves to the Capital Projects Fund where the Youth Center construction is budgeted.


GRANTS AND DONATIONS

Grant Awards - $766,494 – The following grants were recently awarded to the Town. This amendment recognizes the grants and appropriations as follows:

• $100,000 Highway Beautification Council Grant from Florida Department of Transportation with a Town match of $100,000. Funding is to enhance landscaping along the NW 154th Street northbound and southbound exits, and to improve the hardscape median area underneath the Palmetto Expressway underpass and NW 154th Street. Project must be completed by December 2017.

• $125,000 grant from South Florida Water Management District under the Cooperative Funding Program for Lake Sarah Drainage Improvement project. Funding covers construction related costs incurred and expended during the period October 1, 2016 to September 30, 2018.

• $541,544 Transportation Alternative Program Priority grant awarded by the Metropolitan Planning Organization for Miami Lakes GREEN 2.0 Project. This project includes the reconstruction of NW 146th Street between NW 89th Avenue and NW 87th Avenue to two lanes with bike lanes and landscaped path. The grant covers the period FY2020-21 and as such, only an amendment to the Five Year Capital Improvement Plan is required at this time. See attached Exhibit B.

Donations - $15,298 - During the year, unanticipated donations are received from individuals and the business community to fund specific events and enhance certain activities and programs. This budget amendment increases the General Fund by recognizing the donations received and appropriates said funds for expenditure. To date, donations totaling $15,298 were received from sponsors for the following: Youth Activity Task Force events including Movies in the Park ($10,473) and Halloween Haunted House ($3,825),and the annual Holiday Toy Drive ($1,000).