R7A - Amend Fy2025 City Budgets

Resolutions - R7 A

R7 A A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE NINTH AMENDMENT TO THE GENERAL FUND, ENTERPRISE FUNDS, INTERNAL SERVICE FUNDS, AND SPECIAL REVENUE FUNDS BUDGETS FOR FISCAL YEAR 2025 AS SET FORTH IN THIS RESOLUTION AND IN THE ATTACHED EXHIBIT "A." Applicable Area:

COMMISSION MEMORANDUM

DATE:

RECOMMENDATION

The Administration recommends that the Mayor and City Commission adopt the attached Resolution.

BACKGROUND/HISTORY

The budgets for the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds for Fiscal Year (FY) 2025 were adopted by the Mayor and City Commission on September 25, 2024, through Resolution No. 2024-33294.

The First Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on November 20, 2024, through Resolution No. 2024-33403.

The Second Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on February 3, 2025, through Resolution No. 2025-33503.

The Third Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on February 26, 2025, through Resolution No. 2025-33550.

The Fourth Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on March 19, 2025, through Resolution No. 2025-33586.

The Fifth Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on May 21, 2025, through Resolution No. 2025-33682.

The Sixth Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on June 25, 2025, through Resolution No. 2025-33787.

The Seventh Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on July 23, 2025, through Resolution No. 2025-33842.

The Eighth Amendment to the General Fund, Enterprise Funds, Internal Service Funds, and Special Revenue Funds budgets for FY 2025 was adopted by the Mayor and City Commission on September 3, 2025, through Resolution No. 2025-33889.

ANALYSIS

GENERAL FUND

The preliminary year-end analysis for FY 2025 reflects that the General Fund has a projected operating surplus of approximately $28.0 million.

FY 2025 Budget

Adopted Budget

General Fund

Excess of Revenues Over/(Under) Expenditures $

Of the preliminary FY 2025 General Fund year-end surplus of $28.0 million, the Administration is recommending that approximately $1.9 million be carried forward and appropriated in the respective FY 2026 General Fund operating budgets to fund goods and/or services that were procured during FY 2025, but not received and/or provided due to the timing between fiscal years.

Similarly, the Administration is recommending that approximately $8.1 million be carried forward and appropriated in the respective FY 2026 General Fund operating budgets for projects that were budgeted in FY 2025 that have not been completed and are still ongoing.

After accounting for the recommended FY 2025 to FY 2026 General Fund carryforwards, the Administration is recommending that the remaining preliminary FY 2025 General Fund surplus of approximately $18.0 million be set-aside and/or appropriated as follows:

• •

Set aside approximately $3.4 million to fully fund the City’s General Fund reserve target of 25%, or 3 months, based on the Adopted FY 2026 General Fund Budget of $482.5 million (this is in addition to the $3.1 million set-aside that was included in the Adopted FY 2025 General Fund budget) pursuant to the City’s General Fund reserve policy that was adopted by the Mayor and City Commission, through Resolution No. 2024-33340. Appropriate and transfer approximately $1.2 million in FY 2025 based on the combined projected FY 2025 surplus of the Miami Beach and Normandy Shores Golf Courses’ operations to the Capital Pay-As-You-Go Fund to fund a portion of the Miami Beach Golf Course Renovation Project that has a total estimated cost of $9.2 million, with approximately $2.8 million currently unfunded.

• •

The remaining preliminary FY 2025 General Fund surplus, after accounting for the recommended General Fund carryforward encumbrances and appropriations from FY 2025 to FY 2026 and the additional set-asides and/or appropriations that were listed above, is approximately $13.4 million.

Given the cancellation of the October City Commission meeting, several legislative items that were on the October City Commission agenda with potential fiscal impacts have not yet been heard or discussed. Among these are items with funding priorities that require further City Commission discussion and direction before any appropriations can be finalized. In addition, there

Amended Budget

28,028,000

are other pending legislative items with potential funding implications amounting to several hundreds of thousands of dollars that may also be considered.

To ensure fiscal prudence and maintain flexibility in addressing these outstanding items, it is recommended by the Administration that the remaining preliminary FY 2025 General Fund surplus of approximately $13.4 million be set aside in the General Fund for future commitments. This approach will allow the Administration to respond appropriately once the Mayor and City Commission have had the opportunity to deliberate on these pending items and provide guidance on funding priorities for those formally approved.

It is important to note that when there exists an excess of General Fund revenues over expenditures, any remaining funds after funding the increase in the City’s reserve, should be deposited in the Capital Reserve Fund in accordance with Resolution No. 2002-24764. The Administration recommends that this policy be waived by the Mayor and City Commission based on the recommendations being made.

FY 2025 General Fund

Projected Year-End Surplus/(Gap)

Recommended FY 2025 to FY 2026 Encumbered Carryforwards

Recommended FY 2025 to FY 2026 Unencumbered Carryforwards

Surplus/(Gap) Net of Recommended Carryforward Requests

Set aside to fully fund General Fund reserve at 25%, or 3 months, based on adopted FY 2026 General Fund budget

FY 2025 golf courses surplus for MB Golf Course Renovation Project

Remaining Surplus/(Gap)

Set aside for future commitments

Net Remaining Surplus/(Gap)

PROPOSED GENERAL FUND AMENDMENTS

Consistent with the quarterly analyses and projections that were provided by the Administration through Letters to Commission on the status of the FY 2025 budget during the fiscal year, the preliminary year-end expenditures reflect that all General Fund departments, except for those that will be detailed further below, are projected to have savings at year-end. In addition, based on the preliminary FY 2025 General Fund surplus and the Administration’s recommendations on allocating the surplus, the following amendments are being proposed for the FY 2025 General Fund budget through the appropriation of additional revenues that were collected over and above the current year amended budget and the realignment of projected savings in applicable General Fund department expenditures.

For a detail of General Fund revenues by category and expenditures by department, refer to the attached Exhibit A.

$

$28,028,000

(1,871,500)

(8,075,500)

$18,081,000

(3,456,000)

(1,188,000)

$13,437,000

(13,437,000)

$ -

Operations

Preliminary FY 2025 year-end expenditures reflect that the following General Fund departments are projected to exceed their current FY 2025 amended budgets, and as such, the current FY 2025 amended budgets are proposed to be amended.

Police – The Police Department is projected to exceed its current amended FY 2025 budget by 3.4%, or approximately $5.2 million. This overage is primarily due to increased personnel costs associated with the collective bargaining agreements that were approved by the Mayor and City Commission during FY 2025. Additionally, the department is expected to surpass its overtime budget, driven by several factors including the sustained high-visibility police presence citywide in response to the October 2023 attacks, aimed at ensuring public safety.

Approximately $7.7 million was budgeted in a centralized Citywide Accounts reserve within the General Fund to cover the anticipated impacts of collective bargaining agreements that were pending approval at the time the FY 2025 budget was adopted. The Administration recommends reallocating a portion of these funds to the Police Department to cover the additional expenditures incurred during the fiscal year.

FY 2025 Amended Budget

Expenditures $ 152,654,000 $

Fire – The Fire Department is projected to exceed its current amended FY 2025 budget by 1.5%, or approximately $1.8 million. This overage is primarily due to increased personnel costs resulting from the City’s collective bargaining agreements.

Similar to Police, approximately $7.7 million was budgeted in a centralized Citywide Accounts reserve within the General Fund to address the anticipated impacts of these agreements, which were pending approval at the time the FY 2025 budget was adopted. The Administration recommends reallocating a portion of these funds to the Fire Department to offset the additional expenditures incurred during the fiscal year.

FY 2025 Amended Budget

Expenditures $ 123,317,000 $

Capital Transfers

As part of the FY 2026 Capital Budget development process, the Administration prioritized funding for critical renewal and replacement projects that extended the useful life of existing City facilities, as well as addressing budget gaps in key ongoing projects. The recommendations also reflected a commitment to improving public-facing assets, including parks, recreation facilities, and public safety enhancements.

Police

Projected vs Amended Budget Variance

FY 2025 Projected

% Over / (Under)

157,804,000 $

157,804,000 $ 5,150,000 3.4%

Fire

Projected vs Amended Budget Variance

FY 2025 Projected

% Over / (Under)

125,157,000 $

125,157,000 $ 1,840,000 1.5%

This proposed budget amendment recommends appropriating $1.2 million from the preliminary FY 2025 General Fund year-end surplus to be transferred to the Capital Pay-As-You-Go Fund. Consistent with the Administration’s quarterly analyses and projections that were distributed through Letters to Commission during the fiscal year, this amount corresponds to the combined additional surplus generated by the operations of the Miami Beach and Normandy Shores Golf Courses during FY 2025.

These funds would be allocated to support the Miami Beach Golf Course Renovation Project, which has a total estimated cost of $9.2 million, with approximately $2.8 million currently unfunded. This appropriation would fund a portion of the remaining gap and aid in advancing the project toward completion.

RESORT TAX

Overall, preliminary FY 2025 Resort Tax revenues are projected to be approximately $1.1 million, or 1.0%, above the current amended FY 2025 Resort Tax budget while Resort Tax expenditures are projected to be $0.1 million, or 0.1%, below the current amended FY 2025 Resort Tax budget resulting in a preliminary year-end surplus of approximately $1.2 million.

RESORT TAX FUND

FY 2025 Adopted Budget

FY 2025 Amended Budget

Revenues

Expenditures

Revenues Over/(Under) Expenditures

Encumbered FY 2025 to FY 2026 Carryforward Requests

Unencumbered FY 2025 to FY 2026 Carryforward Requests

Remaining Revenues Over/(Under) Expenditures

The Administration is recommending that $13,000 be carried forward and appropriated in the FY 2026 Resort Tax budget to fund goods and/or services that were procured in FY 2025, but not received and/or provided due to the timing between fiscal years.

The Administration is also recommending that $1.2 million be carried forward and appropriated in the FY 2026 Resort Tax budget for projects that were budgeted in the FY 2025 Resort Tax budget that have not been completed and are still ongoing.

After accounting for the recommended Resort Tax carryforward encumbrances and appropriations from FY 2025 to FY 2026 that total approximately $1.2 million combined, the Resort Tax budget is balanced.

Preliminary Actuals as of 09/30/2025 % Actual of Amended Budget FY 2025 Year End Projection Over/(Under) % Over/(Under) Amended Amended Budget Budget

1,221,000

(13,000)

(1,208,000)

-

PROPOSED RESORT TAX FUND AMENDMENTS

Based on the preliminary FY 2025 year-end Resort Tax revenues and expenditures, the following budget amendments are proposed:

• •

• •

• •

Appropriate $120,000 of additional 2% Resort Tax revenues collected in FY 2025 for an increase in the contractually required contributions to the Miami Beach Visitor and Convention Authority (VCA) and Greater Miami Convention & Visitors Bureau (GMCVB) of $46,000 and $74,000, respectively, since the contributions to both the VCA and GMCVB are based on a percentage of 2% Resort Tax collections that are projected to exceed the current amended budget in FY 2025. Appropriate $385,000 of additional 1% Resort Tax (Quality of Life) revenues collected, which are to be allocated and transferred, as adopted by Resolution No. 2018-30512, as follows: 60% allocated for Transportation initiatives in tourist-related areas; 10% allocated equally among North Beach, Middle Beach and South Beach for capital projects that enhance Miami Beach’s tourist related areas; and 10% allocated to various arts and cultural programs. Appropriate $385,000 of additional 1% Resort Tax (Convention Center) revenues collected, which are to be allocated solely for the purposes of expanding, enlarging, renovating, and/or improving the Miami Beach Convention Center, including debt service related thereto, and any excess proceeds allocated and transferred to provide Capital Renewal and Replacement funding for the Miami Beach Convention Center.

ENTERPRISE, INTERNAL SERVICES, AND SPECIAL REVENUE FUNDS

The City accounts for those goods and/or services provided by a department to external users for which a fee is charged as Enterprise Funds. The City’s Sanitation, Water, Sewer, Storm Water, Parking, Convention Center, and Building operations comprise this category of Proprietary Funds.

Similarly, the City accounts for goods and/or services provided by one department to other departments citywide on a cost reimbursement basis as Internal Service Funds. Central Services, Fleet Management, Information Technology, Facilities Management, Risk Management (Self Insurance), Inspector General, and Medical and Dental comprise this category of Proprietary Funds.

Lastly, Special Revenue Funds consist of revenues and expenditures that are legally restricted and/or committed for specific purposes, other than debt service and/or capital projects. Special Revenue Funds, which include Resort Tax previously detailed above, also include Transportation and People’s Transportation Plan (PTP) Fund operations, 7 th Street and 5 th & Alton Garage operations, the Tourism and Hospitality Scholarship Program, Information and Communications Technology Fund, Education Initiatives Fund, Franchise Waste Haulers and Sustainability Contributions, the Residential Housing Program, Red Light Camera Program operations, Emergency 911 Fund, Miami Beach Cultural Arts Council, Normandy Shores and the City’s three Security Guard Special Taxing Districts (Biscayne Point, Biscayne Beach, and Allison Island), Miami City Ballet, Art in Public Places (AiPP) operations, Tree Preservation and Commemorative Tree Trust Funds, Beachfront Concession Initiatives Program, Beach Renourishment, Resiliency, Sustainability and Resiliency, and Biscayne Bay Protection Trust Funds, Police Confiscation Trust Funds (Federal and State), Police Training and School Resources Fund, and the Adopt-a-Bench and Brick Paver Programs, among others.

All Enterprise, Internal Services, and Special Revenue Funds budgets are projected to be at or below their current FY 2025 amended budgets as of year-end, except for the specific Enterprise,

Internal Services, and Special Revenue Funds that will be detailed further in the following section for which budget amendments are being proposed as part of this item.

The preliminary year-end analysis for FY 2025 reflects that there are approximately $2.4 million of encumbrances in the Enterprise Funds, $0.8 million of Internal Services Funds encumbrances, and $3.1 million of Special Revenue Funds encumbrances (not including Resort Tax) for FY 2025 goods and/or services that were procured, but not received, that are recommended to be carried forward and appropriated in the respective FY 2026 operating budgets.

It is also recommended that appropriations of approximately $8.1 million in the Enterprise Funds, $1.6 million in the Internal Services Funds, and $5.0 million in the Special Revenue Funds (not including Resort Tax) be carried forward and appropriated in the respective FY 2026 operating budgets for projects that were budgeted in FY 2025 that have not been completed and are still ongoing.

PROPOSED AMENDMENTS TO THE ENTERPRISE, INTERNAL SERVICES, AND SPECIAL REVENUE FUNDS

Enterprise Funds

Convention Center – Consistent with the Administration’s quarterly analyses and projections that were distributed through Letters to Commission during FY 2025, the Convention Center Fund is projected to exceed its current amended budget by approximately $7.5 million, or 15.1%. This increase is due to the 143 events held at the Miami Beach Convention Center during FY 2025, compared to the 71 events that were originally anticipated when the budget was developed. While overall expenditures are also projected to exceed the current amended budget, revenues are expected to exceed the current budget by approximately $11.6 million, or 23.3%, resulting in a projected surplus of $4.1 million. This surplus is recommended to be set aside for the future renewal and replacement of Convention Center assets and/or to address future operating and expenditure obligations. This proposed budget amendment seeks to appropriate the additional revenues and expenditures associated with the increased event activity at the Convention Center during FY 2025.

Convention Center

FY 2025 Amended Budget

Internal Services Funds

Information Technology – The Information Technology Fund is projected to exceed its current amended budget by approximately $287,000, or 1.4%, due to the resolution of a contractual dispute that originated in the prior fiscal year and remained unresolved until mid-FY 2025. The recent resolution of this matter resulted in unanticipated expenditures being incurred during the current fiscal year that were not originally budgeted. To address these additional costs, this proposed budget amendment is to appropriate available prior year fund balance within the Information Technology Fund.

Projected vs Amended Budget Variance

FY 2025 Projected

% Over / (Under)

61,217,000 $

Information Technology

FY 2025 Amended Budget

Special Revenue Funds

Normandy Shores – The Normandy Shores Local Government Neighborhood Improvement District is projected to exceed the current amended budget by approximately $5,000, or 1.5%, due to unforeseen damages to the community gate, which required unplanned repair expenditures. Although expenditures are projected to exceed the current amended budget, the additional costs are expected to be offset by increased revenues and/or available fund balance. This proposed amendment recommends appropriating those available funds to cover the unbudgeted expenditures that were incurred during the fiscal year.

Normandy Shores

FY 2025 Amended Budget

FISCAL IMPACT STATEMENT

See information provided above

Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY)

If applicable, the Business Impact Estimate (BIE) was published on: See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/

FINANCIAL INFORMATION

See information provided above

CONCLUSION

The Administration recommends that the Mayor and City Commission adopt the Ninth Amendment to the General Fund, Enterprise Fund, Internal Services Fund, and Special Revenue Fund budgets for FY 2025 as previously detailed and reflected in the attached Exhibit “A,” which is necessary to comply with Florida Statute, Section 166.241, that provides that the City has 60 days following the end of the fiscal year to amend the budget for that year.

EC/JDG/TOS/RA

Projected vs Amended Budget Variance

FY 2025 Projected

% Over / (Under)

21,326,000 $

Projected vs Amended Budget Variance

FY 2025 Projected

% Over / (Under)

345,000 $

Applicable Area

Citywide

Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No

If so, specify the name of lobbyist(s) and principal(s):

Department

Management and Budget

Sponsor(s)

Co-sponsor(s)

Condensed Title

5:01 p.m. PH, Adopt 9th Amendment to FY 2025 Operating Budget. OMB