Ordinance 2024-611 - Laserfiche WebLink

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City of Sunny Isles Beach, Florida Management's Discussion and Analysis September 30, 2023 An additional portion of the City's net assets (4.4%) represents resources that are subject to external restrictions on how they may be used. The balance in restricted net position reflects a net decrease of $3.0 from $17.5 in 2022 to $14.5 in 2023. The fiscal year 2023 balance in unrestricted net position of $57.6 increased by $4.0 or 7.4% from the prior year. This increase is primarily due to the increase in investment income. The balance in the unrestricted net position represents resources that may be used to meet the City's ongoing obligations to its citizens and creditors. Summary of changes in net position: The following information is presented to assist the reader in understanding the different types of normal impacts that can affect revenues: 1) Economic Condition can reflect a declining, stable, or growing environment and has an impact on property taxes, non -ad valorem assessments and sales, gas, or other tax revenues as well as consumer spending habits as it relates to building permits, user fees, and other consumption revenues. 2) The City Commission has authority to set increases or decreases in City rates (millage, stormwater, permitting, impact fees, user fees, etc.). 3) Changing patterns in intergovernmental and grant revenues (both recurring and non-recurring) can change and impact the annual comparisons. 4) Market impacts on investment income may cause investment revenues recorded to fluctuate from the prior year. Basic impacts on revenues/expenses are outlined below: 1) Introduction of new programs can have an impact on property taxes, non -ad valorem assessments and sales, gas, or other tax revenues as well as consumer spending habits as it relates to building permits, user fees, and other consumption revenues. 2) Changes in service demand levels can cause the City to increase or decrease authorized staffing. 3) Salary increases such as cost of living, performance increases and pension con- tributions can impact personnel service costs. 4) While inflation has declined in the past year, the City is a major consumer of certain commodities such as chemicals, supplies, fuels, parts, and materials. Some functional expenses may experience unusual commodity specific increases, such as gasoline, supplies, and materials. In addition, supply chain issues and high demand due to product delays may cause substantial price increases. 10