M E M O R A N D U M
To: Honorable Mayor and Town Council
From: Rafael G. Casals, ICMA-CM, CFM, Town Manager
Date: November 20, 2019
Re: Fiscal Year 2018-19 Budget Amendment
REQUEST
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A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN OF CUTLER BAY, FLORIDA, AMENDING RESOLUTION 18-60, WHICH ADOPTED THE BUDGET FOR THE 2018/2019 FISCAL YEAR, BY REVISING THE 2018/2019 OPERATING AND CAPITAL BUDGET AS OUTLINED IN EXHIBIT “A” ATTACHED HERETO; AUTHORIZING THE TOWN MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE.
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BACKGROUND AND ANALYSIS
State statutes allow for amending the budget legally adopted by the Town Council up to sixty (60) days after the end of the Fiscal Year. This allows the Council to provide for items not anticipated or not fully known when the original budget was adopted. It also allows the Council to adjust balances between line items within departments or to reallocate funds among departments based on circumstances that transpired during the Fiscal Year.
The Town requires such an amendment for the 2018/2019 Fiscal Year which will need to be adopted within the “sixty (60) days after year end” time frame primarily as a result of (1) costs and expenses incurred related to Hurricane Irma which continued into Fiscal Year 2019, (2) election, and run-off election costs, (3) unanticipated technology replacement costs, (4) appraisal and survey costs related to proposed land swap properties, (5) increased costs related to building permitting services due to higher than anticipated permit revenues (shared with the contractor per agreement) as well as costs for Town projects, (6) carryover of costs into Fiscal Year 2019 from the prior fiscal year for uncompleted sidewalk repair/replacement projects, as well as for emergency sidewalk repairs during the current year, (7) higher than anticipated police local patrol costs as a result of new contract terms negotiated between the Miami-Dade Police Department and the police union which went into effect in Fiscal Year 2019, (8) emergency repairs and additional contractual services for various Parks activities, (9) unanticipated rentals of portable A/C machines for the Cutler Bay Town Center due to operating issues with the building’s HVAC system, (10) insurance proceeds and FEMA reimbursements related to certain Hurricane Irma claims, and (11) stronger than anticipated revenue receipts for certain revenue categories, primarily franchise fees, building permits, State shared revenues, and interest income.
When adopting the Fiscal Year 2019 budget it was anticipated that the bike/pedestrian grant project would not start until Fiscal Year 2020 and, as a result, that project was not budgeted in Fiscal Year 2019. However, that project was able to initiate the design phase in Fiscal Year 2019 and, as a result, this budget amendment reflects adoption of that project. This change reflects an increased “transfer out” from the Special Revenue - CITT Fund to provide for the Town’s cost share of this project.
In July 2019, the Town Council adopted Resolution No. 19-46 amending the Town’s portion of the cost of the Cutler Ridge Park LED Lighting grant project. This budget amendment adjusts the adopted budget for that grant to reflect the new terms. This change reflects an increased “transfer out” from the General Fund to the Special Revenue - Lighting Fund to provide for the Town’s new cost share of this project.
The Gulfstream Elementary School Safe Routes to School project was budgeted for in Fiscal Year 2019, but an amendment to allocate the cost of the project between the “professional services” and “other contractual services” categories is being proposed. This budget amendment does not change the total adopted cost of this project.
The proposed budget amendment is in balance.
RECOMMENDATION
Staff recommends Council adopt the attached Resolution amending the Fiscal Year
2018-19 budget.