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 30th. At the end of FY 2015-16 the Town is well positioned with all expenditures below the approved budget at the Fund level, however, modifications to line items that 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 2015-16, the General Fund is projected to generate a carryforward amount of $1,117,000 and the Building Department will have a carryforward amount of $403,000. The General Fund carry-forward includes $210,000 in projects that were not completed within the fiscal year and will be re-programmed for FY 2016-17. Therefore, the available carry-forward is $907,000 of which $600,000 was anticipated in the budget to be available as litigation /settlement reserve, and the remaining $307,000 will go to a General Fund contingency to cover any final FY 2015-16 invoices and audit adjustments, if required. (See attached General Fund Budget Summary)
Any remaining contingency balance after the year is closed will be presented to Council in the form of a Carryforward Budget Amendment Ordinance to reallocate funds to the FY 2016-17 Adopted Budget for one time projects. Staff anticipates presenting the Carryforward Budget Amendment Ordinance for first reading in January 2017.
Revenues
The General Fund projected net increase in revenue of $368,000 is mostly as a result of building permit revenues. It consists of Permits and Fees ($427,000), Utility Services Tax ($175,000), and Fines and Forfeitures ($128,000). The increase in revenue is offset by a reduction in Communication Services Tax (-$141,000), State Revenue Sharing (-$91,000), Ad Valorem Taxes (-$83,000) and FPL Franchise Fees (-$71,000). Other revenues show a net increase of $24,000.
Expenses
The General Fund total departmental expenditure allocations for FY 2015-16 are approximately $1.15M lower than budgeted. All departments are well below their budget allocation. Revisions to line items 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:
FRS Contributions – The Town's portion of contribution to Florida Retirement System was under-estimated throughout all departments, and requires an additional $56,580 to cover expenses in the General Fund. Funds are taken from various line items in each department where there is a surplus.
Administration – Professional Services - A transfer is required for professional services for work in progress on the Town's 10-Year Financial Plan ($13,250). This amount is partially offset by the budgeted allocation of $7,394 for the production and publication of the Strategic Plan. An additional transfer is required for procurement consulting services ($24,760). Hurricane Expenses – Purchase of an emergency generator and construction of a generator room at Government Center was approved in FY 2016 and is currently underway. It is expected to be completed before the 2017 hurricane season. In the meantime, a transfer is required for the rental of an emergency generator for the 2016 hurricane season ($12,746). Machinery and Equipment – Purchase of two network-attached storage (NAS) devices; one used to expand our IT storage at Government Center and the other for an off-site backup storage in the event of a disaster ($9,261).
Police – Vehicle Repair and Maintenance – New graphic kits were required for installation on the new police vehicles purchased through Miami Dade County Lease/Purchase Agreement in FY 2015-16. In addition, the Town's vehicle assigned to the Police Department required major transmission repairs ($11,378).
Building – Professional Services – Due to the development of the Dunnwoody Lake Property, additional resources were required to handle the increased permit activity ($12,820). The cost of the additional resources is offset by the additional permit revenue associated with the project.
Community and Leisure Services – Salaries and Benefits – Through a combination of employee turnover and conversion of the arborist position to full time status, an increase in salaries ($31,887), payroll taxes ($5,719) and health insurance (17,193) is required. Royal Oaks Park – Infrastructure – installation of rules and regulations signage throughout the park ($9,650). Park West – Infrastructure – installation of split rail wood fence along the perimeter of the parking lot, as well as rules and regulations signs throughout the park ($12,985).
Public Works – Town Engineer – increase in appropriations for general engineering management assistance as well as engineering inspection services for Public works and Parks ($13,300). 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, as well as engineering services for plans review ($7,860). The cost of the plans review is offset by the permit fee. Transit – On Demand Service – Includes unbudgeted expenses for Sunday and soccer transportation services ($8,700).
SPECIAL REVENUE FUND
The Special Revenue Fund is projected to end with $1,534,633 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 – increase in appropriation for sidewalk pressure cleaning ($3,285) and replacement of roadway signs ($9,225). Funds are transferred from sidewalk replacement and roadway system maintenance to cover these expenses. This sub-fund is estimated to have a remaining contingency of $16,691.
Transit (PTP 20%) – increase in appropriation for the relocation of a bus shelter 200 feet south from Windmill Gate and 67th Avenue ($7,000), as well as repair and maintenance of the Town's two Moover buses ($8,680). Funds will be transferred from fuel allocation. This sub-fund is estimated to have a remaining contingency of $520,892.
People's Transportation Plan (PTP 80%) - With the implementation of the Street Light Retrofit Program, a project manager was hired under an Independent Contractor Agreement (ICA) to oversee the replacement of the high pressure sodium light fixtures to LED. An appropriation for professional services rendered ($17,000) is required and funds will be taken from street lighting repairs and maintenance line item. It is expected that the LED street light conversion program will significantly reduce the cost of energy and maintenance, and reduce staff management time. A sub-fund contingency in PTP 80% of $465,756 is estimated.
Tree Ordinance – Black Olive Removal Program – This sub-fund ended with a projected $9,636 of revenues over expenditure. No revision is required.
Impact Fees – Police – This sub-fund under the Special Revenue Funds in FY 2015-16 has a fund balance of $-138,536 which is offset against the Public Safety Impact Fees Fund. No revision is required.
Mobility Fee Trust Account Fund – This sub-fund ended with a projected $660,194 of revenues over expenditures. No revision is required.
CAPITAL PROJECTS FUND
Substantial progress has been made toward implementing the Town's Five (5) Year Capital Improvement Program including completion of the Park East Youth Center and playground, West Lakes A Phase 2 Roadway and Drainage Improvements, Lake Martha Roadway and Drainage Improvements, ADA compliant pedestrian crosswalks and beautification at Main Street and Bull Run, the 154th Street beautification project, and design for on-road striping of bicycle paths throughout Town pursuant to the Town's Greenways and Trails Master Plan. The Town realized net savings of these completed projects compared to the budget. ($119,000)
Substantial progress to the following projects was made in FY 2015-16 and these projects are scheduled to be completed in FY 2016-17: Miami Lakes Optimist Park Clubhouse, the Dog Recreation Area, Canal Bank Stabilization Project along NW 77th Court and NW 170th Street, Generator Room, IT infrastructure upgrades in the parks, Safe Routes to School, FDOT Beautification Project, and design for Windmill Gate roadway improvements. The unexpended funds (1.35M) will be re-programmed in the FY 2016-17 Budget with the Carryforward Budget Amendment Ordinance in January 2017.
A revision to the FY 2015-16 Amended Budget is required for conceptual design and boundary/topographic survey for the development of Bridge Park ($28,620) and Par 3 Park (12,500); this is funded through the Developer's contribution for passive park development as intended. An increase in appropriations is required for the completion/final documents on Park East Youth Center ($22,000). Since there is currently no contingency for Parks capital improvements in FY 2016, funds will be taken from the IT Infrastructure project for IT enhancement throughout all Parks facilities.
STORMWATER UTILITY FUND
The Stormwater Utility Fund is projected to end with approximately $555,067 in revenues over budgeted expenditure allocations. Line item adjustments are required to salary and benefits for the conversion of the Stormwater Field Inspector position from independent contractor to full-time status as approved by Council at the beginning of the fiscal year ($38,068). An increase in appropriation is also required for the purchase of two laptops for field personnel and a replacement utility trailer to transport the water tank during sidewalk pressure cleaning ($5,550). Funds are taken from various line times within the Fund where there is surplus.