2012-0907 Special Commission Meeting - 1st Budget Hearing

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Summary Minutes:Special City Commission Meeting September 7.2012 Sunny Isles Beach,Florida First Budeet Hearing 3B. Budget Ordinance (Public Hearing) An Ordinance of the City Commission of the City of Sunny Isles Beach, Florida,Adopting an Operating and Capital Improvement Budget for the Fiscal Year Commencing October 1,2012 through September 30,2013, Pursuant to Section 200.65,Florida Statutes; Authorizing Expenditures of Funds Established by the Budget; Authorizing Encumbrances; Authorizing Issuance of Checks; Providing for Grants and Gifts; Providing for Local and Federal Law Enforcement Trust Funds; Providing for Post Audit; Providing for Severability and Providing for an Effective Date. Action: City Clerk Hines read the title, and Acting City Manager Maas presented a balanced Fiscal Year 2012/2013 Operating Budget and the five-year Capital Improvement Program. Assistant City Manager/Finance Minal Shah reported that staff started preparing the budget in February and had several internal meetings to prioritize and develop a complete and balanced budget. In July, staff presented a balanced budget to the Commission and during our budget workshops held on July 17 and 18, the Commission reviewed details of each departments' proposed budget including the Capital Improvement Budget. During the workshops, decisions were made to reduce and/or delay funding for capital purchases and reduce professional service costs and some personnel costs. These changes are reflected in the summary page that is included in the agenda book behind the Budget Summary tab. Assistant City Manager/Finance Shah said after the budget workshop on July 19, 2012, the Commission voted to reduce the property tax millage rate from 2.8860 to 2.8000 which is about a 3% decrease in the tax rate. Since "Save Our Homes" increases our homesteaded residents property values by 3%. the City's decrease in the tax rate will offset this increase. Therefore, most of our homesteaded residents will pay the same City taxes as they did in the prior year, but yet have even more services and amenities available to them than ever before. It is also important to note that the City of Sunny Isles Beach has the 8'"lowest tax rate out of the 35 cities, which includes unincorporated County. In addition, there have been a few other changes that have occurred in the budget since the budget workshops. We have included the cost of the City subsidizing the extended hours for the Library. the costs for reorganizing the IT Department, an increase in the Commission Expense account, an increase in the % cent Transportation Tax and the Code Enforcement revenues and an increase in the property tax the City must pay for the Heritage Park Garage. It is important to note that the anticipated delay in the completion of the Gateway Park project is not reflected in the budget. There is $150,000 funding provided for in the budget for the grand opening event and the staffing and operating costs to maintain the park. Upon Commission's later approval, these funds can be reallocated for other programming or held for the following year. Assistant City Manager/Finance Shah thanked Acting City Manager Maas, the department heads and their staff,and the Finance staff for their time and efforts in preparing the balanced budget. She also thanked the Commission for their support and direction. Under their leadership, the City has been able to weather through the economic downturns and remain fiscally strong. This is evident in the increasing value of services and amenities the City continues to provide to our residents at a very low millage rate. 9