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 2017-18, 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 and that exceed the Town Manager's authority ($8,400 per year) per Ordinance No. 2016-193 are required. The significant line item adjustments are discussed below and summarized in Exhibit A:
GENERAL FUND
At the end of FY 2017-18, the General Fund is projected to generate an operating surplus of $961,750. From this operating surplus, $506,000 was approved for carry-forward to FY 2018-19 Budget for litigation/settlement reserve ($400,000), Committees unused balances ($24,000), and projects/operational expenses that were not completed within the fiscal year ($82,000). The remaining $455,750 is the estimated available surplus for one time projects. This will be presented to Council in the form of a Carryforward Budget Amendment to appropriate funds in FY 2018-19. Staff anticipates presenting the Carryforward Budget Amendment Ordinance for first reading in January 2019.
Below is a summary of the FY 2017-18 General Fund Revenue and Expense Budget and Fund Balance Analysis as projected at the end of the fiscal year.
The General Fund total departmental expenditure allocations for FY 2017-18 are approximately $743,000 lower than budgeted. All departments are well below their budget allocation with the exception of the Mayor and Council Department primarily as a result of expenses for Miami Lakes First Annual Gala. However, this amount is offset by donations received for the gala as discussed below.
Mayor and Council – Miami Lakes Gala – Donations received for the first annual Miami Lakes Gala total $27,595 offset by expenses of $17,200 to benefit the Special Needs Advisory Board initiatives. A budget adjustment is required for expenditure authority and as such funds will be transferred from Police Department overtime account where there is a surplus.
Administration – Professional Services – increase in appropriation for contract professional services ($21,500) to provide administrative support. Funds are transferred from multiple line items within Administration.
Parks – Community Services Department and Community Engagement and Outreach Department – Salaries and Benefits – Through a combination of employee turnover, temporary staffing required to cover vacancies, and the reorganization of the Parks – Community Services and Community Engagement and Outreach Departments, adjustments to the salaries and benefits line items are required to accurately reflect expenses in the appropriate departments. Funds are transferred from various line items between the two departments.
Pocket Parks - Utilities – Increase in appropriation for irrigation and water fountain usage at Canine Cove due to leakage ($10,450). Funds will be transferred from the pocket parks grounds maintenance contract line item where there is a savings from procuring a new contract.
Public Works – Salaries – Through a combination of employee turnover and adjustment in compensation for employees with additional responsibilities, an increase in the Salaries account is required ($10,226). Funds are transferred from Contractual Town Engineer line item where there is a surplus as drainage and other inspection services were performed by in-house staff.
SPECIAL REVENUE FUND
The sub-funds within the Special Revenue Fund is projected to end with a total of $707,177 of revenues over budgeted expenditure allocations including the prior year carryover reserves as follows: Transportation Gas Tax - $111,940; Transit (PTP 20%) - $144,888; Transportation (PTP 80%) - $122,122; Mobility Fees - $0; Black Olive Tree Removal Program - $23,227; and $300,000 in Special Revenue – Other representing contribution from developer for educational purposes. No line item adjustments are required to these budgets.
IMPACT FEES FUND
The Impact Fees Fund is projected to end with a total of $1,172,589 of revenues over budgeted expenditure allocation for the following sub-funds: Parks Improvements - $158,743; Parks Open Space - $893,249; and Public Safety - $120,597. All line items are within budget allocation and therefore 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 2018 with approximately $2,544,367 in revenues over total budgeted expenditures. Line item adjustments are required to cover salaries and benefits for the hiring of a full-time building inspector and receptionist due to increased activity.
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 2018: NW 82nd Avenue and Oak Lane reconfiguration, Emergency Generator and Enclosure, West Lake Neighborhood Reforestation Phase 2, Mary Collins Community Center impact resistant windows and doors replacements, resodding of pocket parks due to Hurricane Irma, and other parks improvements including replacing playground and safety surfaces.
At the end of FY2017-18, the Capital Projects Fund balance is projected at $1,314,426. This amount includes projects that have started but are scheduled to complete in FY 2019, such as Canal Bank Stabilization Phase II, Miami Lakeway South resurfacing, 59th Avenue Extension, Windmill Gate roadway improvement, Optimist Park Storage Facility improvements, and Safe Routes to School. The unexpended funds will be re-programmed in the FY 2018-19 Budget with the Carryforward Budget Amendment in January 2018.
Revisions to line items in the Capital Projects FY 2017-18 Amended Budget are required as follows:
Parks Improvements – Allocate funds for residual construction administration services of MLOP Clubhouse, as well as the purchase of a security camera system for the facility ($11,078). Funds will be transferred from the savings of Mary Collins Community Center impact resistant windows and doors.
Transportation Improvements – Reclassify budgeted funds from Traffic Calming line item to Machinery and Equipment as per uniform accounting code. Funds are used for the purchase of portable speed radar equipment as a traffic calming measure throughout Town neighborhoods ($13,655).
STORMWATER UTILITY FUND
The Stormwater Utility Fund is projected to end with approximately $181,351 in revenues over budgeted expenditure allocations. No line item adjustment is required.
FACILITIES MAINTENANCE FUND
The Facilities Maintenance Fund captures all costs associated with the operations, maintenance and repairs of the Town's Government Center. The cost of centralized services is allocated between the General Fund (Administration at 60% and Police Department at 27%) and Building Department Fund (13%). Expenses are projected to be within budget allocation and therefore no adjustment to the budget is required. This Fund maintains a zero balance at end of year.