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HomeMy Public PortalAboutLTC 140-2018 Proposed Operating Budget & Capital Plan Fiscal Year 2018-19BAL HARBOUR - VILLAGE - OFFICE OF THE VILLAGE MANAGER LETTER TO COUNCIL NO. 140-2018 To: Mayor Gabriel Groisman and Members of the Village Council From: Jorge M. Gonzalez, Village Manager Date: August 31, 2018 Subject: Proposed Operating Budget & Capital Plan Fiscal Year 2018-19 The purpose of this Letter to Council (LTC) is to transmit to you the Proposed Operating Budget & Capital Plan Fiscal Year 2018-19 for your review. As you know, the First Budget Hearing is scheduled for Wednesday, September 12, 2018 at 7:00 pm. The Second Budget Hearing will take place on Monday, September 17, 2018 at 7:00 pm; along with your regularly scheduled Council meeting for the month. A hard copy of the budget book is enclosed with this LTC. Additionally, an electronic version has been sent to you via email. The First Budget Hearing Agenda will be provided to you next week. Finally, I have asked my assistant, Alex Cardelle, to schedule budget briefings with each of you should you wish, at a date and time that is convenient for you. Please feel free to contact me should you need further information. JMG PROPOSED OPERATING BUDGET & CAPITAL PLAN FISCAL YEAR 2018-19 MAYOR Gabriel Groisman ASSISTANT MAYOR Seth E. Salver COUNCIL MEMBERS David Albaum Patricia Cohen Jeffrey P. Freimark VILLAGE MANAGER Jorge M. Gonzalez VILLAGE CLERK Dwight S. Danie FINANCE DIRECTOR Amber Riviere CONTROLLER Tom Pham BUDGET ADVISORY COMMITTEE MEMBERS Jose Biton, Chair Neca Logan Raj Singh Raymond Slate TABLE OF CONTENTS VILLAGE MANAGER MESSAGE ………………………………………………………….……1 OVERVIEW ……………………………………………………………………………………19 FUNCTIONAL TABLE OF ORGANIZATION ………………………………………………...…..25 FINANCIAL SUMMARY ……………………………………………………………………..….27 DEPARTMENTAL NARRATIVES LEGISLATIVE ………………………………………………………………………………….51 ADMINISTRATIVE SUPPORT ADMINISTRATION ………………………………………………………..…53 INFORMATION TECHNOLOGY………………………………………………56 LEGAL SUPPORT ………………………………………………………… . 58 GENERAL GOVERNMENT………………………………………………….62 FINANCE & BUDGET ………………………………………………………………………… 63 POLICE ……………………………………………………………………………….…...….67 BUILDING ……………………………………………………………………………………..71 PARKS AND PUBLIC SPACES ………………………………………………………………...75 WATER AND WASTEWATER UTILITY FUND …………………………………………………. 83 RESORT TAX FUND …………………………………………………………………….….... 85 CAPITAL OUTLAY ……………………………………………………………………………. 91 POSITION DETAIL ………………………………………………………………………….... 95 Village Manager’s FY 2018-19 Budget Message September 12, 2018 Honorable Mayor and Members of the Village Council: I am pleased to present to you the Proposed Operating and Capital Budget for Fiscal Year (FY) 2018-19 which commences on October 1, 2018 and ends on September 30, 2019 for Bal Harbour Village. This document outlines the fifth budget I have developed since becoming your Village Manager and, as in years past, provides you and our community as much information as possible about our Village’s plans and expected accomplishments during the next fiscal year. Reviewed together with our Comprehensive Annual Financial Reports (CAFR’s), this document provides a good and clear understanding of our financial position, as well as past accomplishments and future plans for our community. Bal Harbour Village has three (3) primary funds used to operate the Village: (1) General Fund, (2) Resort Tax, and (3) Water and Wastewater Utility Fund (Utility Fund). The total Proposed Budget for all major funds is $26,377,900, this includes new capital appropriations of $990,800, and further capital expenditures of $3,938,900 largely from prior year capital appropriations. The total General Fund budget proposed is $479,900 lower than the current year, due to reduced pay-as-you-go capital needs in the coming fiscal year. In addition, we continue to provide management and operational services to the Gated Community Area, the Landscape and Security Fund Budget is $641,300 for the provision of these services through the next fiscal year. This budget proposes “Enhancements” of $1,410,300 which have been identified or discussed throughout the year. These enhancements will help us further implement our strategic priorities, which reflect our vision and objectives outlined in the Strategic Plan for the Village. Through a disciplined approach to resource allocation, careful management practices and conservative financial policies, the Village continues to maintain a very strong financial position in all of our funds. The FY 2018-19 Proposed Budget includes my recommendation to once again, keep the current millage rate of 1.9654 unchanged. This would be the fourth consecutive year that our millage is set at this historically low level. The proposed millage rate is a reduction of 4.6% since 2014 and a cumulative reduction of 32.27% since 2004. This year, our assessed property values grew by 3.36% over last year, in large part due to new construction and the continued build out of units within the Oceana Bal Harbour condominium project. I recommend we continue to invest as much of this growth as possible in capital projects and services aligned with our Vision and Strategic Plan, thereby further enhancing the “Bal Harbour Experience.” 1 The most significant investments of proposed new funding for FY 2018-19 are found in various capital improvement investments to our public spaces and infrastructure with a total of $990,800 in proposed new capital appropriations. Combined with past year appropriations, our total anticipated capital expenditures for FY 2018-19 are $3,938,900. THE BAL HARBOUR EXPERIENCE At our Village Council Retreat in November 2017, we discussed the collective vision that will drive decision making for the Village through the next several years. We focused on what we described as the “Bal Harbour Experience”, which represents that distinctive feeling one experiences when living in or visiting our unique, exclusive, curated and refined community. Developing funding strategies, initiatives and programming that will further this vision are the focus of the budget development process. The four (4) main elements which denote the essence of the Bal Harbour Experience are: •Beautiful Environment – represented by our pristine beach, lush landscaping, well maintained public spaces, well-designed jogging paths, sidewalks and rights of way, with interesting public art experiences. These signature public amenities reflect the maintenance standards the community expects, and allow visitors to immediately identify they are in Bal Harbour. In other words - you immediately recognize when you have arrived to Bal Harbour and you immediately know when you have left. •Destination & Amenities - represented by the luxury hotels, eateries, and high-end boutiques and shopping available, in our beautiful setting. •Exclusivity & Access – represented by our curated art programs and well-produced special events. Our recognized Museum Access Program, Art Chats, exclusive tours, creative public art installations, special access programs during Art Basel, the Bal Harbour Series of the South Beach Wine and Food Festival are just some of the exclusive opportunities created for residents and visitors, and reflect the community’s refined taste. •Safety - anchored by our focus on a Community Policing model, where our officers are staffed, trained and motivated to provide excellent service and safety to our residents and visitors in a pleasant and friendly manner. The increased visibility, investment in state- of-the-art technology and employment of innovative 2 policing strategies ensures that our community remains safe at all times, as well as a leader and model in public safety. Together, these elements define what it means to live, work, play and visit in Bal Harbour and what makes our community so unique and distinctive. This vision rests on a foundation based on: •Developing and maintaining well designed and modernized public facilities and infrastructure; •Implementing smart policies and strategic solutions to address the challenges of today and to ensure that we remain a Resilient and Sustainable community able to protect our future; and •Ensuring that both the perception and reality of safety in our community remains uncompromised. BUDGET DEVELOPMENT GOALS In developing the proposed budget, we continue to focus on the following five (5) key goals, which ensure that our resources are focused on achieving our vision for Bal Harbour and enhancing the “Bal Harbour Experience”: ▪Enhance community policing strategies and accountability; ▪Improve and beautify our public spaces; ▪Invest in our Information Technology; ▪Enhance community engagement through public events and expanded communications with our residents and visitors; and ▪Establish sustainable fiscal policies and plan for future capital investments. The Proposed Budget is the culmination of an evaluation and assessment process undertaken each year. We carefully evaluate the existing activities, determine where the Village would benefit from additional investment and ensure that we establish appropriate levels of service and identify efficiencies or enhancements for each operational activity. It remains my goal to provide to you as much information as possible for you to make informed decisions, and to support the Village vision; this budget for the first time develops a multi-year Capital Project Plan in support of the Bal Harbour Experience and identified priorities. The following is a breakdown of the allocations proposed for FY 2018-19 for each distinct Fund: ▪ General Fund $16,079,700 ▪Resort Tax Fund 3,700,000 ▪Water and Wastewater Fund 6,598,200 ▪Security & Landscape Fund 641,300 These funds combined total $27,019,200. As we near the conclusion of the current fiscal year and with some of the accomplishments completed this year, we can conclude that much of the long standing or pending issues that the Village was facing as I became your Village Manager have been brought to a successful resolution. For example: we oversaw the completion of the complex construction of the Oceana Condominium project; we have approved the Bal Harbour expansion and continue to work on implementation of the plan. In addition, we executed a global settlement agreement with Flamingo Way Enterprises (Yacht Club) bringing resolution to significant and potentially costly litigation. Included in the agreement, the Village secured 3 needed utility easements and ensured that the “Park” areas in the gated community were conveyed to the reconstituted Civic Association at no cost. Concurrently, we negotiated a Milestone Agreement with the Civic Association creating a path for the gated community to take over and manage their affairs in an orderly manner. We negotiated a settlement agreement with the owners of the Beach Haus (former Quarzo) project to kick start construction and bring the construction to completion as quickly as possible. Finally, we negotiated a new agreement with our Village Attorney resulting in an orderly transition and basing fees on a flat fee retainer arrangement. Each of these have helped collectively move us away from dealing with past or pending issues and instead freeing us up to work on exciting new projects and a vision for the future of our community. This focus on the future allows the Village to continue to complete the utility infrastructure upgrades, design exciting capital projects to modernize our facilities and to develop sustainable policies for the future. Each of these have been handled in a professional manner and have been brought to fruition in a very professional and amicable manner. We now look forward to the next fiscal year and beyond with the wind at our backs, well positioned fiscally to create a solid foundation for the future knowing that the Village is pointed in the right direction and focused on the things that matter to our residents. In short, preserving and enhancing the “Bal Harbour Experience!” The FY 2018-19 Proposed Operating and Capital Budget builds upon our past accomplishments and continues the current levels of service our residents and visitors have grown accustomed to. The multi-year capital program continues the investment in modernizing and upgrading the infrastructure and facilities in our community. PROGRESS TO DATE ON OUR GOALS: Enhance Community Policing and Accountability The Bal Harbour Police Department remains dedicated to a community-oriented policing model, focused on increasing police visibility through innovative directed patrol activities, and improved readiness for high liability incidents. These practices produce results, the Village has experienced a 12.9% reduction in property crimes from 2016 to 2017 and a 24% reduction since 2014 when we first implemented this focus; violent crime was reduced by 12.6% from 2016 to 2017, and a 23% reduction since 2014. Not only are crime rates down, the clearance rates for crimes committed are well above the national average. Newly proposed this year is the investment in License Plate Reader technology (LPR). LPR technology operates as a police force multiplier enhancing the capability and productivity of officers on the street by providing a direct connection to the National Crime Intelligence Center (NCIC), identifying from a vehicle’s license plate if an individual is a wanted person, has a protection order, a known or suspected terrorist, or national sex offenders within four seconds. The purchase of two LPRs are proposed through the use of Law Enforcement Trust Fund (LETF) allocations for FY 2018-19. These coupled with the two cameras to be funded by the Shops through the development agreement will enhance the overall functionality of our Police Department and allow us to 4 identify persons traveling through the Village who are wanted by law enforcement agencies. Bal Harbour Village made history after becoming the first municipality in the United States to pass an ordinance that defines an anti-Semitic hate act as a hate crime. These actions by the Council were subsequently forwarded to the Miami - Dade County Association of Chiefs of Police. The Association passed a resolution encouraging all Miami-Dade County Police Departments to adopt similar legislation. This legislation adopted an internationally recognized definition of anti-Semitism in order to ensure the well-being of its Jewish community; underscoring our police department’s commitment to protecting all of the Village community from hate crimes. We take care to protect our residents and visitors year-round, and provide enhanced patrol presence and heightened security measures during special events and high holy days. Our Police Department has increased their community outreach and community relations activities; educating our residents and businesses about crime prevention strategies, eliciting feedback from residents and business owners regarding their concerns. Hosted events include: a Cops & Kids event, the Rotary Club 5K, a Holiday Toy Drive, a Back to School Supplies give away for underprivileged students, Feeding Homeless Veterans, and selecting two scholarship recipients for the Chiefs Mark Overton & Miguel De La Rosa Memorial Scholarship Fund. Five special community outreach events are planned in the coming fiscal year. However, we always strive to become better. Therefore, earlier this year, I tasked the police department with pursuing State of Florida accreditation. This review of our departmental policies and operations will evaluate us through a rigorous process conducted by outside evaluators against a criterion of accepted best practices in police service. Achieving this accreditation will ensure that we remain current and on the leading edge of policing in the State of Florida. We have expanded our force through our Police Reserve Officer Program to include four additional experienced retired officers that will provide volunteer police assistance and augment police services as needed for traffic control, special event details and off duty details. Through the implementation of the County’s Civil Citation Program, our Department now has an additional enforcement mechanism for a number of misdemeanor crimes, the program will reduce the time and cost associated with processing and arresting individuals for minor offenses. Finally, we have commenced the implementation of our Computer Aided Dispatch and Records Management System (CAD-RMS), which will further enhance the efficiency and effectiveness of our Police Department. The FY 2018-19 Proposed Budget includes continued community policing efforts at the current level of service, in addition, funding for five community outreach events ($14,500), and the purchase of two LPRs with funding provided from the Law Enforcement Trust Fund ($40,000) are proposed. Improve and Beautify Our Public Spaces Presenting an aesthetically beautiful setting for our residents and visitors is a key component of the Bal Harbour Experience. The Parks and Public Spaces Department continues to improve the appearance of the Village through increased routine maintenance and cleaning of our public areas. This year the department rose to the challenge of 5 restoration and recovery after Hurricane Irma. The debris on our roadways and in our public spaces was removed before residents and visitors returned. In addition, the replanting of vegetation damaged from the storm throughout our public spaces continues and damaged or missing signage has been replaced. To better prepare Village Hall and the Police Administration Building for future storm events, dated energy inefficient windows were replaced with the installation of hurricane impact windows. Additionally, a stand-alone emergency generator was purchased to provide power to Village Hall and the Police Administration buildings in the event FPL power is disrupted. The grading and restoration of the surface of the jogging path with all new coquina was completed along with the installation of additional trees. Collins Avenue and parts of the Jetty also received repairs to sections of damaged sidewalk and all of the Village owned bus shelters were repainted. This year we also amended our sanitation service agreement to increase weekly recycling service, adding no cost bus stop collection service, new trucks on the service route, and increased penalties for non-compliance. Through a $50,000 contribution to Miami-Dade County Parks and Recreation, we expanded the public spaces available to our residents with the addition of a skate park and pump track in Haulover Park. This adds a new amenity to the array of options available to the youth of our community. The ribbon- cutting ceremony was held in early August. This project served as an excellent example of our collaboration with neighboring jurisdictions. The FY 2018-19 Proposed Budget continues to invest in our public spaces with funding allocations toward our Village’s Beach Entryway and Jetty with the additional appropriation of $595,800, bringing the total allocation toward this project to $1,259,800. We anticipate design and development of a conceptual plan to be completed in FY 2018-19. The combination of local capital appropriations, Bal Harbour Shops and Capital Reserves is sufficient to fund the current probable costs of the Site Plan and amenities for the planned Waterfront Park which was approved in May 15, 2018. We anticipate design refinement, A&E and construction drawing development to take place in FY 2018-19 and have an expected expenditure of approximately $800,000 for this step. Critical to this project is the need to identify a suitable location to house our Parks and Public Spaces operations, staff and equipment. We continue to work on this effort and will present options to the Village Council when ready. Once again, this past year, our community faced the threat of a major hurricane event. While we were fortunate that the impacts of Hurricane Irma were modest, the need to have appropriate emergency plans in place and more importantly policies and objectives to ensure a resilient community are essential. Whether due to more frequent and stronger hurricanes, higher king-tides, greater rain events or other climate impacts efforts to ensure that the Village is properly addressing our future needs are essential. As we discussed during the February 26, 2018 Village Beach Re-nourishment Workshop, our beach sand naturally erodes southward over time. The impacts of Hurricane Irma, however, greatly exacerbated this natural erosion. Our efforts to implement a sand-by-pass project have been underway for several years now. Village staff has worked through County, State, and 6 Federal channels to advance this important issue with modest success. Beyond the by-pass project, however, it is critically evident that more dedicated attention to our larger level resiliency and climate impact issues is needed. Whether continuing to advocate for beach re-nourishment projects, to implementing our storm water infrastructure improvements; to managing the bay bottom and sea walls; to efforts to make sure our policies reflect our needs to be a resilient community it is important to have professional support that is available and working on our behalf. The FY 2018-19 Proposed Budget includes $90,000 of funding for dedicated contractual services from outside engineering consultants to help guide our coastal management efforts and beach re-nourishment initiatives. The cost of this resource will be shared equally between the General and Resort Tax funds. In addition, pending approval from the Department of Economic Opportunity, we propose to partner with the South Florida Regional Planning Council (SFRPC) to participate in a “peril of flood” analysis for our community to determine our flood risk and a plan for remediation if needed. SFRPC would review the existing Coastal Management element of our Comprehensive Plan; update our community’s Coastal High Hazard Area (CHHA) through the use of storm surge modeling; and prepare a comprehensive plan amendment to make the Coastal Management element of our Comprehensive Plan consistent with the Peril of Flood requirements set out in section 163.3178(2)(f), F.S. Concurrently, staff will develop required amendments to our local Flood Plain Management Ordinance. Invest in Information Technology The IT Master Plan for the Village is based on a needs assessment of IT infrastructure necessary to enhance the Village’s e-government capabilities. In the last few years, we have accomplished a great deal of improvements, and with the anticipated implementation of our Computer Aided Dispatch (CAD) system within our Police Department, we will conclude the last major project outlined in the original IT Strategic Plan. CAD is the most significant technology initiative undertaken to date. The project is well on its way with the upgrade of our network, backup, security and storage solutions complete, as well as the initial software installation. As we close this fiscal year, Police Department and Village IT staff are already initiating training and system customization has begun, and we expect full project implementation to be completed early in calendar year 2019. One new part-time position was added in support of this important initiative. This project will dramatically improve the efficiency of our Police Department and finally bring its operations in line with 21st century standards. Late last calendar year, we successfully completed the FDLE Police audit ensuring proper compliance with the Criminal Justice Information System (CJIS) requirements. This result indicates our Police Agency is now operating in full compliance with CJIS and FBI services, security policies and procedures, and ensures that the agency has established the proper controls to safeguard the full lifecycle of criminal justice information; this achievement is due to collaboration between Village IT services and operations staff in our Police Department. In coordination with the Finance Department online payments for Utility Billing, Business Tax Receipt renewals, and our Building Department were deployed on the Village website 7 and Village app. To further drive payment traffic to our Village website and payment page. Upon completion of CAD-RMS related activities, the coming fiscal year will provide an opportunity to reassess our future IT needs. We will determine the next steps and any IT service enhancements to ensure that we continue to develop best practices for our IT environment and a new IT Master Plan. Enhance Community Engagement through Public events and expanded Communication with Our Residents and Visitors We continue to focus on engaging our community and visitors through our public events and programming, while continuing to ensure that our communication with our residents and visitors is clear and that our community is as connected as possible with their government. The proposed budget continues to fund and enhance these efforts. In print, the resident bi-monthly newsletter and postcards advising of upcoming special events remain in place. Our electronic communication efforts include the My Bal Harbour mobile Application (App), the Wireless Emergency Notification System (WENS), e-mails, our social media (Facebook, Instagram and Twitter) for both residents and tourists, and our government and tourism websites. In our park this year, we have hosted in excess of eight thousand seven hundred (8,700) residents and their guests at Bal Harbour Park, and conducted seasonal basketball skill clinics for children thirteen (13) years of age and younger totaling two hundred twenty-two (226) participants. Our Park and Public Spaces produced five (5) successful Family Excursions for residents, with a total of one hundred twelve (112) participants. We have coordinated a number of public events including family-friendly movies on the beach; an event to kick-off the holiday season with the lighting of the holiday décor on Founders Circle and along Collins Avenue; and an Independence Day celebration on the 4th of July for our residents and hotel guests to accompany our traditional fireworks display. On the art side, three public art exhibits were curated along the beach walk: Carrie Schneider’s “Reading Women” in conjunction with the Miami Book Fair; Jewish Treasures of the Caribbean; and the Burneshas of Albania. The next exhibition will be a curated exhibit by the Andy Warhol Museum. In addition, the public art program on Founders Circle this year included the Robert Chambers piece entitled Roto Relief which was installed in January 2018 and will remain until November 2018. Art tours and chats continue and included visits to: Vizcaya Museum and Gardens; The Phillip and Patricia Frost Museum of Science; Art Basel Private Brunch and Tour at the Aqua Art Fair; Art Fair Access during Art Basel to: NADA Miami, Art Miami and Context Art Miami, Pulse Contemporary Art Fair, and Untitled Miami Beach; Bass Museum; Jewish Museum of Florida; Perez Art Museum Miami (PAMM); and an art focus on accessing museums. The Village’s Unscripted Art Access Program now includes eighteen (18) cultural institutions, having added two this current fiscal year, including the Jewish Museum of Florida- FIU and History Miami. 8 The FY 2018-19 Proposed Budget continues the activities we have enjoyed in the current year and adds several enhancements, including one additional Art Chat experience ($5,000), upgraded and enhanced installations of art exhibit exhibitions on the beach path ($17,000), sponsorship again of the South Beach Food and Wine Festival to host three intimate, luxury dinners in Bal Harbour Village ($30,000), bringing back the much-requested New Year’s Eve Fireworks display ($15,000) over Bal Harbour beach, and the addition of a full year of domestic public relations offered by Quinn PR. Establish Sustainable Fiscal Policies and Plan For Future Capital Investments Safeguarding the fiscal integrity of the Village and ensuring the functionality of our infrastructure is a daily priority - one that is not so noticeable when all is going right - but typically engenders unfavorable attention when it goes wrong. To this end, we continue our efforts to establish appropriate controls and further improve the processes of the pasts while planning for the future and developing a more resilient community. Improvements to the control environment surrounding cash receipt and payroll processing were advanced through the use of technology. Early this year, the Village, launched an online payment portal coded by our Village Controller, for online Utility payments. The payment page includes the option to make a one-time payment, setup recurring payments, and the ability to opt out of receiving paper bills. At the same time, the ability to pay for building permits online was launched. With the links prominently displayed on our Village website, within one month, we noted a twenty-three percent (23%) increase in visitors to our Village webpage. In August, we launched online payment capabilities for Business Tax Receipt renewals, and in September will do the same for monthly Resort Tax payment and affidavit submission, and Accounts Receivable payments. The Village’s FY 2017 external audit was concluded with the issuance of the Comprehensive Annual Financial Report in February with an unqualified opinion, receiving GFOA recognition for the third year in a row. Additional activities this year, included an audit from Miami-Dade County, for CITT funding, and working with the Federal Emergency Management Administration to recapture expenses the Village incurred as a result of Hurricane Irma. In addition to the accomplishments above in the last five years, Finance operations have evolved to improve the control environment between functional activities, timely issuance and filing of compliance reports, complete daily reconciliations of financial activity, a completely upgraded financial management system and restructured utility billing system, supporting capital project initiatives and drawing down funding reimbursements, and improving customer service delivery for ad valorem and non-ad valorem tax, and Village Utility inquires. To continue these improvements, the FY 2018-19 Proposed Budget includes a new Finance Clerk position, this enhancement will allow the core staff in Finance to focus on their daily task-oriented assignments, with ancillary audit, reconciliation of online payments, accounts receivable follow-up, and customer service duties assigned to the new Clerk. Major capital initiatives will continue in FY 2018-19 including construction drawings for the Waterfront Park. In addition, the development of a design plan for the Jetty, cut walk and 96th street beach entry will begin. The FY 2018-19 Proposed Budget includes a capital allocation of $990,800. Together 9 with prior year appropriations, the total funding available for these improvements now exceeds $1,454,800. We anticipate issuing Requests for Qualifications later this year and hope to award a contract to the successful firm as soon as possible. This year we completed one-hundred percent of the cleaning and videoing inspection of the sanitary sewer infrastructure system for the entire Village. We also completed Phase 2a of the Utility Master Plan, which comprised the rehabilitative sanitary sewer pipe lining of seven thousand three hundred (7,300) linear feet of sanitary sewer pipe along Collins Avenue and completed rehabilitation of approximately thirty-seven (37)sanitary sewer manhole structures. Our revised approach to the Utility Master Plan project is resulting in significantly reduced impact and inconvenience to our residents and visitors and significant savings to the Village. From prior year project appropriations, we anticipate beginning the Phase 2b of the Utility Master Plan to replace of sections of water system main lines along Collins Avenue in front of the Kenilworth and Carlton Terrace Condominiums will conclude Phase 2 of the project next year. Phase 3 will commence with sewer, water, and stormwater improvements on Park and Bal Cross Drives north of Harbour Way in FY 2019 with an anticipated expenditure of $2.620 million. Additionally, the design of the replacement sixteen-inch (16) diameter emergency water main line which provides a redundant water supply to the Village from the City of North Miami Beach in the event of a disruption from Miami Dade County is planned for next year. Improvements to our stormwater pump stations ensure proper drainage of our roadways and personal property in the event of a severe weather event, over two years $310,000 is allocated toward these necessary components of the Plan. We anticipate drawing down the remaining $2.7 million of the $6.5 million in Miami-Dade County General Obligation Bond (G.O.B) reimbursements for the Utility Master Plan project in FY 2018-19. Overall the Master Plan improvements improve the resiliency of our Village and our ability to withstand major weather events. The operations of Village Water and Wastewater Utility continue to improve. We have replaced with in-house staff one-hundred and nine (109) water service meters throughout the Village reached the end of their useful lifecycle. Recently, the Council approved the purchase of an additional four hundred and seventy-eight (478), technologically advanced water service meters. These upgrades result in more accurate consumption readings and better billing and reporting capabilities. Operationally, we continued to meet Environmental Protection Agency and Department of Environmental Protection requirements for both sanitary sewer pump stations; and we continue to meet the National Pollutant Discharge Elimination System (NPDES) permit requirements through proper routine maintenance of our catch basins and proper project management controls. Factors Affecting FY 2018-19 Budget In developing a budget, we must look at available revenues, expected expenses, potential enhancements, and opportunities for cost savings or efficiencies. By setting an appropriate millage ceiling, we established the first parameter in the development of the FY 2018-19 Operating Budget. It is important to set a level that offers appropriate opportunities to make prudent choices leading to the adoption of the final budget. 10 The Miami-Dade County Property Appraiser provides municipalities with a certification of Assessment Roll Values for the upcoming fiscal year on July 1 of each year. Pursuant to Florida Statutes (F.S.) 200.065, within thirty-five (35) days of certification of value, each taxing authority shall advise the Property Appraiser of its proposed millage rate, of its rolled- back rate, and of the date, time, and place at which its first public budget hearing will be held to consider the proposed millage rate and tentative budget. This requires the setting of the preliminary millage rate, and establishing the date and time for the budget hearing at the July Village Council meeting. It should be noted that setting the preliminary millage rate is simply an initial step in our budget process. At the July 17, 2018 Village Council meeting, the Council set the tentative millage rate, the first step to formally adopting a budget, at 1.9654 mills, consistent with the current fiscal year rate. The Public Budget Hearing Dates were set for Tuesday, September 12, 2018 and the second public hearing for Monday, September 17, 2018. Tax Roll, Millage Rate, and Ad Valorem Revenue The tax roll certified by the Miami-Dade County Property Appraiser on July 01, 2018 is $5,498,822,089, which includes an addition of $214,540,918 in new construction and improvements. At the current and proposed tentative millage rate of 1.9654 mills and calculated at 95% of the adjusted taxable value certified as required per F.S. 200.065(1), the ad valorem revenue generated is $10,267,000, resulting in an increase of approximately $344,700, of tax revenue village wide over current year ad valorem budgeted revenue. The rolled-back rate for FY 2018-19 would be 1.9382 mills. The rolled-back rate, calculated as required by the Florida State Department of Revenue will provide the same ad valorem tax revenue as levied during the prior year exclusive of new construction and improvements. The preliminary proposed millage rate of 1.9654 mills is 1.40% higher than the current year aggregate roll-back rate. The state required methodology for calculating the rolled back rate requires the use of the current year gross roll value. Proposed Millage Rate History & Analysis Since FY 2007 the millage rate for the Village has dropped significantly, by 32.27% from 2.9020 mills to 1.9654 mills for the current and proposed tentative millage rate for FY 2018- 19; resulting in no proposed millage adjustment for the upcoming fiscal year. Maintaining this historically low millage rate for the last three fiscal years, has allowed the Village to plan for future capital projects through the appropriation of funding on an annual basis. The following chart reflects the millage rates for FY 2006 through FY 2018, and the continuation of the existing rate for FY 2019: 2.9020 2.9020 2.2874 2.3085 2.5265 2.5567 2.4468 2.2678 1.9192 2.0611 1.9654 1.9654 1.9654 1.9654 Bal Harbour Village Millage 11 Currently, the FY 2017-18 adopted millage rate for Bal Harbour Village is the third lowest millage rate in Miami-Dade County as compared to other municipal rates. It is the only long-established municipality within the grouping of the lowest eight millage rates for Miami-Dade County cities. The following chart reflects the FY 2018 adopted millage rates for Miami-Dade County municipalities: It is recommended that Village Council re-affirm their action taken at the July 17, 2018 Council meeting and set the millage rate for FY 2018-19, at 1.9654 mills, a rate which is $1.9654 per $1,000 of assessed property value. The proposed tentative millage rate, calculated at 95% for budget purposes, and based upon the July 1, 2018 estimated adjusted Taxable Value as provided by the Miami-Dade County Property Appraiser is anticipated to yield $10.267 million, for FY 2018- 19. The recommended FY 2018-19 proposed tentative millage rate outlined for consideration by the Village Council, allows the Village to retain a historically very low rate, while providing for funding of inflationary impacts to maintain existing service levels, reduced budgeted expenses in key activities, and enhancements toward Village capital projects and operating support as summarized below. By setting an appropriate millage rate, we establish the primary parameter in the development of the FY 2018-19 Operating Budget. It is important to set a millage rate that allows for the continued advancement of our budget development goals and allocating resources in a strategic manner with an emphasis on results-oriented management practices. The FY 2018-19 Proposed Operating and Capital Budget does just that, by building on the foundation, we established together in the last several years and further cultivating the Bal Harbour experience. Impact of Proposed Millage to Village Homestead Exempt Property Owners For the 2018 Tax Roll, the median assessed homestead exempt property value for the Village is $650,179. This is a value at which there are as many properties with an assessed value above this amount as there are below it. The impact of the preliminary proposed millage rate of 1.9654 mills to the median assessed property value for the Village is 1.7261 1.9000 1.9654 2.3000 2.3000 2.3292 2.3353 2.3907 3.0000 3.9995 4.2151 4.3000 4.8000 5.1500 5.1613 5.4000 5.5590 5.6500 5.7092 5.9215 6.3018 6.4000 6.6092 6.8858 6.9363 7.1858 7.3575 7.4365 7.4800 7.5000 7.9000 8.3000 8.9999 9.7000 0.0000 2.0000 4.0000 6.0000 8.0000 10.0000 12.0000 Aventura Doral Bal Harbour Pinecrest Sunny Isles Beach Palmetto Bay Miami Lakes Cutler Bay Key Biscayne Bay Harbour Islands Sweetwater South Miami Surfside Virginia Gardens Hialeah Gardens Medley Coral Gables North Bay Village Miami Beach Homestead Hialeah North Miami Beach Indian Creek West Miami Miami Gardens Florida City Miami Springs Miami Golden Beach North Miami Miami Shores El Portal Opa-Locka Biscayne Park FY 2018 Municipal Millage Rates Bal Harbour FY 2018-19 Proposed Millage Rate 1.9654 mills 12 approximately $1,278 per year per homeowner. For the Village, the value of the average homestead exempt property is approximately $1,062,043; the impact of the proposed millage rate is approximately $2,087 per year per home with the average assessed value. General Fund Expense In developing the Proposed Budget, we assessed available revenues, expected expenses, potential enhancements, and opportunities for cost savings or efficiencies. The Proposed General Fund Budget incorporates the funding for operating departments and activities within the proposed FY 2018-19 Base Budget expenditures of $15,067,500, at the proposed millage rate of 1.9654 mills. Building upon the FY 2017-18 Adopted Base Budget of $15,931,570, a net reduction of identified efficiencies of $864,100, is applied to arrive at funding sufficient to continue the existing level of service as the current year. The identification of savings allowed for a balanced base budget within existing resources. These changes bring the General Fund FY 2018-19 Proposed Base Budget to $15,067,500, excluding proposed enhancements, as summarized in the following table. This provides $1,012,200, for enhanced investments toward The Capital Construction Manager position is budgeted with shared funding 1/3 from the General, and 2/3 from the Utility Fund, representing the funding allocations associated with Village capital projects at a base salary of $120,000. The Finance Clerk position at a base salary of $40,000 is also proposed with shared expense among two funds 80-percent with funding from the General Fund and 20-percent with funding from the Utility Fund. Contractual beach management support split equally between the General Fund and the Resort Tax Fund, will provide the Village with professional consultation on the Coastal Management Program, including strategy and vision, updates on trends and changes in the state and federal agency programs, effect of rule/policy changes, assistance pursuing funding opportunities, regulatory agency and stakeholder coordination, and participation in key meetings. This professional support provides dedicated assistance to this issue vital to the sustainability of our Village and in support of beach re-nourishment. FY 2018-19 total Revenue with Tentative Roll / Millage $16,079,700 FY 2017-18 Adopted General Fund Base Budget 15,931,570 Variance Revenue / Expenditure $148,130 CHANGES IN PROPOSED BUDGET FROM FY 2017-18 ADOPTED BUDGET FY 2017-18 Adopted General Fund Base Budget 15,931,570 Less Net Efficiencies (864,070) FY 2018-19 General Fund Proposed Base Budget 15,067,500 FY 2018-19 PROPOSED GENERAL FUND OPERATING BUDGET 13 Enhanced funding allocations are provided toward the restoration of the Haulover Inlet Jetty, stormwater improvements, and toward the renewal and replacement of fleet ($895,800). Capital Projects The total FY 2018-19 proposed Capital Projects appropriation for all funds are $990,800. Projected FY 2018-19 Capital Projects expenditures from both proposed and prior year appropriations total $3,938,900. Progress is planned toward completion on the Waterfront Park, Utility Master Plan, Haulover Inlet Jetty, cut walk and 96th street beach entry plaza, enhancements to the Haulover Inlet Bridge, and the Computer Aided Dispatch and Records Management system for the Police Department, as summarized in the table below. Of the proposed capital programming the FY 2018-19 General Fund appropriation is $895,800, and projected FY 2018-19 spend is $1,223,900; for the Utility Fund there are no additional capital appropriations proposed, however the projected spend in FY 2018-19 on the Utility Master Plan is $2,620,000; and for the Resort Tax Fund an appropriation of $95,000 are proposed for necessary Haulover Bridge improvements. New General Fund capital appropriations include $595,800 toward improvements to the Jetty, cut walk and 96th street beach entry, bringing the total project allocation to $1,454,800; an appropriation of $150,000 for Stormwater improvements for a total allocation of $310,000; and an PROPOSED ENHANCEMENTS to the FY 2018-19 BASE BUDGET FY 2018-19 General Fund Proposed Base Budget $15,067,500 Operating Capital Construction Manager (GF Impact)$51,400 Temp Document Management Assistance $20,000 Accounting Clerk (No GF Impact)$0 Beach Management (GF Impact )$45,000 subtotal operating $116,400 Capital Jetty Restoration $595,800 Stormwater Improvements $150,000 Fleet R&R $150,000 subtotal capital $895,800 Total Proposed Enhancements $1,012,200 FY 2018-19 Proposed General Fund Budget $16,079,700 Revenue Less Expense $0 CAPITAL PROJECT Re-allocation of Prior Year Appropriation FY 2019 Proposed Appropriation Total Capital Appropriation (prior years & proposed) FY 2019 Projected Spend GENERAL FUND Revenue Appropriation 895,800 6,911,052 Park Bathroom (50,000) 0 - Sea Wall (51,700) 0 - Village Hall Improvements 563,000 - Jetty 595,800 1,259,800 100,000 Waterfront Park 101,700 986,100 800,000 96th Street Plaza 100,000 12,000 Jogging Path 100,000 - Beach Furniture 75,000 - Fleet 150,000 1,561,400 - Information Technology 227,000 - CAD 380,000 161,900 Collins Corridor Redesign 0 - Utility Master Plan: Stormwater 150,000 310,000 150,000 TOTAL CAPTIAL APPROPRIATION 0 895,800 6,911,052 1,223,900 RESORT TAX FUND Revenue Appropriation 95,000 95,000 Haulover Bridge Improvements 95,000 95,000 95,000 TOTAL CAPTIAL APPROPRIATION 95,000 95,000 95,000 WATER & WASTEWATER UTILITY FUND Revenue Appropriation 14,917,000 Utility Master Plan: Water/Sewer 0 0 14,885,000 2,620,000 Mini Excavator 0 0 32,000 - TOTAL CAPTIAL APPROPRIATION 0 0 14,917,000 2,620,000 14 additional $150,000 for a fleet renewal and replacement program. Water & Wastewater Utility Fund and Rates Water and Wastewater services within the Village are provided as an enterprise operation, services are funded as payments for measurable water and wastewater services are consumed. Rates established as charges for services should sustain its operations and satisfy any related debt. For the Village utility operations, water is purchased at a wholesale rate from the Miami-Dade County Water and Sewer Department (Miami-Dade WASD) and the City of Miami Beach (CMB) applies a wholesale rate for Wastewater or sewer services which travels through their system for treatment at to the Miami-Dade WASD Virginia Key plant. Wholesale water service is paid directly to Miami-Dade WASD, and wholesale sewer services are paid directly to the City of Miami Beach by the Village, for this reason their rates directly affect the rates the Village charges to our customers. In the past few years, we have passed-through rate increases from our wholesale service providers to our customers, this year Miami-Dade WASD has proposed a water rate decrease, so in turn we propose to pass that savings on to our customers as well. The proposed rate decrease by WASD is as a result of renewal and replacement costs and reductions to debt service due to refunding. The proposed wholesale water rate change is a decrease of 3.89%, or $0.0713 cent for Wholesale Water Rates, from $1.8341/1,000 gallons to $1.7628/1,000 gallons. If this rate reduction were passed-through to Village utility customers consistent with the past practice, it would result in an adjustment from $4.88/1,000 gallons, to $4.81/1,000 gallons or a 1.46% rate reduction to Village customers, as summarized below. We know Miami-Dade WASD has not proposed a FY 2018-19 rate increase for wholesale Sewer service rates. The City of Miami Beach pays Miami-Dade WASD for sewer services, and the Village pays the City of Miami Beach. At this time the proposed FY 2018-19 rates for the City of Miami Beach are still under review with a recommendation forthcoming. Presently, the FY 2018-19 Proposed Utility Fund Budget is balanced with the proposed rate decrease for wholesale water services, and with a flat rate for wholesale sewer service of $8.38/1,000 gallons. The Village Budget Advisory Committee at their July 31, 2018 meeting, reviewed the proposed pass-through water rate decrease and reached a consensus on the approval of the water rate recommendation. The Committee was advised of the forthcoming rate information for sewer rates and reached consensus on a ceiling for a potential rate increase they would recommend as a pass-through of six-percent. With the proposed water pass-through rate reduction and a flat sewer rate provide for the annual proprietary operations of the Village Utility, converting a contracted worker to a Village staff position, and coverage of bond payments. The FY 2018-19 Operating Budget for the Utility is $3.978 million, and the Proposed Capital Budget is $2.620 million. 2016-17 2017-18 2018-19 Percent Change MD-WASD wholesale rate $1.7341 $1.8341 $1.7628 -3.89% Bal Harbour Village $3.05 $3.05 $3.05 0.00% Total $4.78 $4.88 $4.81 -1.46% Water Service Rates (per 1,000 gallons) 2016-17 2017-18 2018-19 Percent Change CMB wholesale rate $3.2705 $3.4179 $3.4179 unknown Bal Harbour Village $4.96 $4.96 $4.96 0.00% Total $8.23 $8.38 $8.38 unknown Wastewater Service Rates (per 1,000 gallons) 15 Resort Tax Bal Harbour Village is one of only three Miami-Dade County municipalities, along with the City of Miami Beach and the Town of Surfside, to levy a resort tax, and in doing so takes advantage of the benefits derived from this revenue source. This includes the reinvestment in the promotion of tourism and enhancing tourist eligible activities throughout the Village as well as efforts related to the beautification and maintenance of the Village in areas visited by tourists. Bal Harbour Village levies a Resort Tax of four (4) percent of the amount received for the occupancy of a room in any hotel, motel, or apartment house. In addition, it levies a two (2) percent of such retail sales of all items of food or beverages, alcoholic or otherwise, sold at retail for consumption on the premises, at any place of business within the Village. Both these levies are consistent with Part I, Chapter 212, of Florida Statutes. The FY 2018-19 Proposed Budget for Resort Tax includes $1,625,100 (45.78%) for Tourism related activities, $352,200 for Special Events and Community Activities (9.92%), and $1,572,700 (44.30%) for Beautification and Greenspace Maintenance and other Resort Tax Eligible expenses; operating capital includes the one-time creation of video and creative collateral design imagery ($50,000) and a luxury partnership with the Greater Miami Convention and Visitors Bureau ($100,000). The FY 2018-19 Proposed Budget for the Resort Tax Fund includes a capital enhancement to the Haulover Bridge ($95,000), operating enhancements to include the addition of New Year’s Eve Fireworks ($15,000) and an expanded 4th of July Fireworks display ($5,000), shared beach management support with the General Fund ($45,000), domestic public relations representation ($60,000), South Beach Wine & Food Festival sponsorship with three events planned and promoted here in Bal Harbour venues ($30,000), expansion of the beach art exhibit ($25,000), the addition of the Lowe Museum to the Museum Access Program ($4,500), and one additional Art Chat ($5,000) for a total of $284,500 of capital and operating enhancements to the fund. The total proposed fund allocation is $3.7 million, which includes Tourism and Marketing Services, and Landscape and Beautification activities within the public areas of the Village. For the FY 2018-19 Proposed Budget, the Resort Tax Funding Resort Tax Fund Haulover Bridge Improvements $95,000 subtotal capital $95,000 New Year's Eve Fireworks $15,000 Expanded 4th of July Fireworks net increase $5,000 Beach Management Support (50/50 GF & RSTX)$45,000 Domestic Public Relations (Quinn) net increase $60,000 South Beach Food & Wine Festival $30,000 Beach Art Exhibit Expansion $25,000 Museum Access additional venue $4,500 One Additional Art Chat $5,000 subtotal operating 189,500$ Total Proposed Resort Tax Fund Enhancements $284,500 PROPOSED ENHANCEMENTS to the FY 2018-19 PRELIMINARY ROPOSED BUDGET 16 17 18 Overview Bal Harbour Village remains a pristine community, a carefully designed haven for the very best in residential living and upscale tourism. With elegant homes and condominiums, elite shops and exquisitely manicured roadways, the Village is widely recognized as the jewel in the crown of South Florida's communities - a model for the good life. The "dream village" that was envisioned so many years ago continues to prosper and thrive today. The vision for this subtropical paradise began in 1929 when Miami Beach Heights, a Detroit-based real estate development corporation purchased the raw land. Headed by industrialist Robert C. Graham with associates Carl Fisher and Walter O. Briggs, Miami Beach Heights began the task of crafting a new community. Perhaps most significantly, they hired one of the leading urban planning firms of the twentieth century - Harland Bartholomew & Associates - to design the Village. Bal Harbour is one of only a few Miami-Dade County municipalities that were built with a fully conceived master plan in place. From the beginning, the Village was envisioned as a modern community that would maintain exceptionally high standards, provide superior services and foster civic pride. Village founders thoughtfully master-planned this model community and it has evolved into an internationally renowned place to live and visit. Their goal was to make this Village, with its unique advantages of ocean, bay and South Florida climate, a lovely place to live. GOVERNMENT STRUCTURE The Village exists as a Council-Manager form of municipal government. Under Florida law, Bal Harbour is considered a municipal corporation. The Village is governed by a Council of five (5) qualified persons, each of whom must be a registered voter residing within the limits of the Village for a period of at least one year immediately prior to their qualification. The Charter allows, and the Village Council has enacted, legislation requiring the creation of five (5) districts of nearly equal area and population. To qualify as a candidate for election, the person must reside within the District that he or she proposes to 19 Overview represent on the Council. Village registered voters elect each of the five Council Members without regard to districts. The Council elects one of its members as Mayor. The Mayor presides at the meetings of the Council. The Council also elects one of its members as an Assistant Mayor who acts as Mayor during the absences or disability of the Mayor. The Council appoints the Village Manager and the Village Clerk. The Village Manager appoints Department Directors and administers the government of the Village. The Department Directors have the primary responsibility to hire and fire employees, however, the final decision ultimately rests with the Village Manager. The Village is organized into various Departments as shown in the organization chart on Page viii. VILLAGE MANAGER’S OFFICE is responsible for leadership and the overall management of the Village. Any policy that the Village Council wishes implemented becomes the responsibility of this Office. FINANCE DEPARTMENT is responsible for Financial Administration, Business and Tourism Taxes, Payroll, and Water & Sewer Utility Administration and Customer Service. BUILDING DEPARTMENT is responsible for Planning, Zoning, Land Use activities, Building Permits and Inspections. POLICE DEPARTMENT is responsible for all aspects of Law Enforcement services, inclusive of Code Enforcement. PARKS AND PUBLIC SPACES DEPARTMENT combines the Public Works, Park and Recreation, Water & Sewer Utility Operations, and Beautification activities and is responsible for the Village’s facilities and infrastructure, beach maintenance, solid waste and recycling, landscaping efforts, recreational and cultural activities. TOURISM DEPARTMENT is responsible for the marketing and branding efforts of the Village and is the liaison for the Tourism Board. Financial Structure The following details the Bal Harbour Village Fund Structure, describing the various funds and providing information regarding appropriations, or spending authority, within those funds. A fund is a set of self-balancing accounts that are segregated for the purpose of carrying on specific activities or attaining certain objectives, as required by special regulations, restrictions, or limitations. Bal Harbour Village’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Only governmental funds and proprietary funds, are appropriated as part of the annual budget. The budget resolution that is presented to the Council in September for the two public budget hearings follows this fund structure. Governmental Funds Governmental funds account for most of the Village’s basic services. Taxes, intergovernmental revenues, and charges for services, principally support the activities reported in this fund. The General Fund is the Village’s primary operating fund. It is used to account for the financial resources of the general government and operating departments except those required to be accounted for in another fund. Within the general fund, the operating budget separates expenditures by departments and operational activities. The separation provides accountability for directors to manage and monitor their 20 Overview departmental expenditures and also to track expenditures at the more discrete activity level. The activities within the General Fund include Legislative, Administration, Finance, General Government, Law Enforcement, Building & Permitting, Public Works, Parks & Recreation, Information Technology, and Legal Support Services. The Proposed General Fund Operating and Capital Budget for FY 2018-19, reflects a decrease of 2.90% over the current fiscal year budget, inclusive of capital enhancements. The net reduction of $480,000 is predominantly due to less capital project appropriations within the Parks & Recreation, Public Works and Information Technology activities than the current year. The Resort Tax Fund is a special revenue fund derived from hotel and food and beverage purchases within the Village, used to account for proceeds for resort tax revenue restricted for tourism development and maintaining the aesthetics of the community. Resort Taxes are paid monthly by establishments doing business within the Village based on four-percent of their revenues from hotel room rentals and two-percent of food and beverage sales. The Proposed Resort Tax Fund Operating and Capital Budget for FY 2018-19, reflects an increase of 7.47% over the current fiscal year budget, due to an anticipated increase in Resort Tax collections for the coming fiscal year. Proprietary Funds Proprietary funds are those funds where the Village charges a user fee in order to recover costs; they are used to finance and account for the acquisition, operation, and maintenance of facilities and services that are intended to be entirely or predominantly self-supporting through the collection of charges from external customers. The Village has two proprietary funds, the Water & Wastewater Utility Fund and the Security and Landscape Assessment Fund. The Water & Wastewater Utility Fund is used to account for water and sewer utility operations, which are financed and operated in a manner similar to a private enterprise. This fund captures the fees for service and expense, related debt, and capital projects associated with operations of the utility. The FY 2018-19 Proposed Operating and Capital Budget for the Water & Wastewater Utility Fund includes a pass-through rate decrease for water as a result of a decreases from our wholesale service provider Miami-Dade County Water & Sewer, and a flat rate for Sewer as a result of no rate adjustment information from the City of Miami Beach, the Village’s sewer wholesale service provider. The Fund includes the appropriations and expense for advancement of water and sewer components of the Utility Master Plan capital project. The FY 2018-19 Proposed Operating and Capital Budget for the fund reflects a capital expenditure increase of 16.70% due to the continuation of the Utility Master Plan Project, overall proposed fund expenditures reflects an increase of 8.77% as a result of proposed project advancement in the coming year. The Security and Landscape Assessment Fund, includes an assessment rate applied to residents of the gated area within the Village, sufficient to provide for landscape and security related expenditures within the coming fiscal year. The FY 2018-19 Proposed Operating and Capital Budget for this fund reflects a 12.5% increase over the current fiscal year, as a result of possible security enhancements and legal reimbursements. 21 Overview Fiduciary Funds Fiduciary funds are used to report assets held in a trust for a specific purpose. The Village currently has forfeiture moneys from prior fiscal years held in restricted funds. The use of these funds must follow an approval process required by State Statute with subsequent approval by the Village Council. In addition, the Village has two pension related fiduciary funds for the General Employee and Police Pensions, each administered by a separate Retirement Board. These funds are not a part of the Village’s annual operating and capital budget. What Is A Budget? An annual budget is a financial, operating, and capital plan for the coming fiscal year. It provides an outline of service levels provided to the citizen, and public capital investments in the community, for use by both our customers and the village. Bal Harbour Village’s Proposed Budget for FY 2018-19 is a tool that serves five purposes: •Planning: The budget process is an annual plan for management of the Village to coordinate and schedule program and services to address the Village’s priorities. •Prioritization: Village resources that address needs identified by the Mayor, Councilmembers, and residents, are prioritized through this process. •Information: The Proposed Budget document is the primary way for the Village to explain to the public what it intends to do with the taxes and fees it collects. Through the document, the public can see how and where tax dollars and other revenues raised by the Village will be spent. •Evaluation: The budget is used to help determine how well services are provided and how successful the Village is in meeting the community’s needs. •Accountability: The budget is a tool for legally authorizing public expenditures and to account for and control the use of public resources. The Fiscal Year 2018-19 Proposed Operating and Capital Budget for Bal Harbour Village, Florida is intended to serve as a policy guide, a financial plan, and a means of communication. The annual budget is determined for a fiscal year, which is the twelve-month cycle that comprises the jurisdiction’s reporting period. The State of Florida and certain Federal programs have different fiscal years than the Village. The Village's fiscal year starts on October 1 and ends September 30 of the following year. This Proposed Operating and Capital Budget is for the period October 01, 2018 to September 30, 2019 and is shown as either ‘FY 2018-19’ or ‘FY 2018’. Property Taxes Millage Rates The millage rate is the tax rate that is applied to property values to generate the revenue needed to pay for services proposed and adopted in the budget. A mill is a rate of tax equal to $1 for each $1,000 of assessed taxable property value. If a piece of property has a taxable value of $100,000 and the millage rate is 1, the property owner would pay $100 in taxes. The rolled-back rate, calculated as required by the State Department of Revenue will provide the same ad valorem tax revenue as levied during the prior year exclusive of new construction and improvements. 22 Overview Overall, the proposed millage rate is 1.40 percent above the state defined aggregate rolled-back rate. The tentative operating millage rate for FY 2018-19 is 1.9654 mills, is the same as the current year millage rate and still among the three lowest of Miami-Dade County municipalities. Setting the Millage Rate Each year, the Proposed Budget is developed with millage rates necessary to fund the property tax supported portion of the budget. At its July meeting, the Council must determine the millage rates that will be used for the tax notices mailed to all property owners in August. The tax notices also referred to as TRIM notices; TRIM stands for Truth In Millage. The tax rates that are on the notices property owners receive in August represent the ceiling of the rates that can be approved by the Council at the September budget hearings, unless additional notices are sent to all property taxpayers. Because re-noticing all taxpayers is difficult and expensive, the tax rates included in the TRIM notices are considered the ceiling. Several years ago, the State Legislature approved legislation intended to provide tax relief to the citizens of Florida. In addition to requirements to lower the tax rates themselves for one fiscal year, it instituted new definition and voting requirements that apply to governing boards when setting millage rates. Already established was the State defined rolled- back millage rate, which is the millage rate that, when applied to the tax roll for the new year, excluding the value of new construction and any dedicated increment value, would allow the taxing authority to raise the same amount of property tax revenue for the new budget as it estimates to receive in the current year. Section 200.065 of State Statutes outlines this rate, known as the “no tax increase” rate because it allows the entity to generate the same property tax revenue from year to year, adjusted only by any new properties that may have been placed on the property tax roll. Because it does not take into account value adjustments for properties already on the property tax roll, the rolled-back rate does not take into account inflationary growth in the Village. The current year rolled-back rate for the Village is 1.9382. The State has defined the highest millage rate that may be levied by a simple majority vote of the governing body known as the maximum millage rate. This rate is the rolled-back rate, adjusted for the growth in per capita personal income in Florida (1.0147). Beginning in FY 2009-10, the maximum millage rate is based on the rolled-back rate (the rate that generates the same property tax revenue) assuming the maximum millage rate had been adopted for the prior year and then adjusted for growth in per capita Florida personal income, whether or not the maximum millage rate had been adopted in the prior year. In other words, if the millage rate that was adopted was higher than the calculated maximum millage rate, that rate is the cap. If a millage rate below the maximum millage rate is adopted, an adjustment is made to credit the revenue that was lost because a rate below the maximum millage rate was adopted. The formulas used to calculate the various millage rates is promulgated by the Florida Department of Revenue. The Council may adopt a rate that is higher than the state- defined maximum millage rate. State law provides that a millage rate of up to 110 percent of the calculated maximum millage rate may be adopted if approved by a two-thirds vote of the governing body of the Village. A millage rate higher than 110 percent may be adopted by unanimous vote or a three-fourths vote if the governing body has nine or more members. The 23 Overview penalty for violating these standards is the loss of state revenue from the local government half-cent sales tax for a period of twelve months. Calculation of Property Taxes There are four factors for calculating the amount of property tax assessed on property: 1.The assessed value of the property; 2.Adjustments for Amendment 10 of the Florida Constitution, if applicable this amendment limits the growth in assessed value of residential properties with a homestead exemption to the lesser of the growth in the Consumer Price Index (CPI) or three percent; 3.The amount of value that is not subject to taxes (e.g., the $50,000 homestead exemption and the additional homestead exemption for senior citizens who meet income criteria, the $25,000 exemption for personal property); and 4.The millage rate, established according to state law restrictions. According to state law, the County Property Appraiser determines the market value of each property in Bal Harbour Village as of January 1 each year. Then Amendment 10 adjustments are applied to find the assessed value. Finally, appropriate exemptions are applied to reach the taxable value. The taxable value is then multiplied by the millage rates set by the Council in September to determine the amount of property taxes that must be paid for the property in November. The Village levies a municipal millage rate and a solid waste assessment, and security and landscape assessment, these items appear on the tax notice for the Village along with County, School Board, and Special District taxes. Additional Property Tax Legislation Amendment 10 to the State Constitution from 1992, also known as Save Our Homes limits the growth in assessed value of residential properties with a homestead exemption to the lesser of the growth in the Consumer Price Index or three percent. Adjustments for Amendment 10 have resulted in a disparity for assessed values among homestead exempt properties with long standing owners and non-homestead exempt properties or those which have changed hands in recent years. The State Constitution allows an exemption of up to $50,000 for homesteaded properties and caps the assessment value increase for non-homestead properties at ten percent. There is also an exemption of $25,000 for tangible personal property (TPP), which is usually the equipment and other assets of a business. 24 Functional Table of Organization Fiscal Year 2018-19 Citizens Village Council Village Attorney Village Manager Finance & Budget Police Code Compliance Building Planning & Zoning Tourism Parks & Public Spaces Recreation Greenspace Management Public Works Property Management Village Clerk 25 26 FY 2018-19 Proposed Operating & Capital Budget FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget GENERAL FUND REVENUE Ad Valorem Taxes 7,370,100$ 7,190,100$ 7,876,800$ 9,922,300$ 10,267,100$ 3.47% Delinquent Ad Valorem Taxes 221,400 3,700 318,800 0 0 Utility Service Tax 863,400 860,400 901,900 788,000 898,000 13.96% Franchise Fee 696,900 668,500 689,000 670,000 685,800 2.36% Intergovernmental Revenue 768,900 750,400 725,000 732,300 729,100 -0.44% Permits & Licenses 1,772,900 1,296,300 2,186,900 1,840,000 1,852,700 0.69% Fines & Forfeitures 612,600 759,900 280,700 600,000 468,700 -21.88% Miscellaneous 595,900 791,200 715,300 710,300 499,500 -29.68% Solid Waste Assessments 630,300 622,500 641,700 671,700 678,800 1.06% Subtotal Operating Revenue 13,532,400 12,943,000 14,336,100 15,934,600 16,079,700 0.91% Fund Balance-Capital Projects Reserve 1,078,000 1,595,600 0 625,000 0 TOTAL GENERAL FUND REVENUE 14,610,400$ 14,538,600$ 14,336,100$ 16,559,600$ 16,079,700$ -2.90% 27 FY 2018-19 Proposed Operating & Capital Budget FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget GENERAL FUND LEGISLATIVE Salaries & Benefits 41,200 51,600 68,800 70,000 145,900 108.43% Other Operating 34,300 642,900 254,700 100,600 98,100 -2.49% Operating Capital TOTAL LEGISLATIVE 75,500 694,500 323,500 170,600 244,000 43.02% ADMINSTRATION Salaries & Benefits 850,400 912,100 994,000 1,103,900 1,186,200 7.46% Other Operating 79,500 60,800 59,900 113,400 142,700 25.84% Operating Capital TOTAL ADMINISTRATION 929,900 972,900 1,053,900 1,217,300 1,328,900 9.17% FINANCE Salaries & Benefits 436,600 408,700 489,700 534,700 522,200 -2.34% Other Operating 82,200 99,700 124,400 160,300 146,300 -8.73% Operating Capital TOTAL FINANCE 518,800 508,400 614,100 695,000 668,500 -3.81% GENERAL GOVERNMENT Salaries & Benefits 228,200 173,800 121,600 284,500 537,900 89.07% Other Operating 459,900 645,700 624,500 1,072,600 1,006,800 -6.13% Operating Capital 1,050,000 1,109,300 0 200,000 200,000 0.00% TOTAL GENERAL GOVERNMENT 1,738,100 1,928,800 746,100 1,557,100 1,744,700 12.05% LAW ENFORCEMENT Salaries & Benefits 5,000,100 5,718,100 5,254,800 6,010,700 6,407,100 6.59% Other Operating 1,042,900 932,600 695,600 878,100 792,700 -9.73% Operating Capital 147,800 55,000 15,000 -72.73% TOTAL LAW ENFORCEMENT 6,043,000 6,650,700 6,098,200 6,943,800 7,214,800 3.90% 28 FY 2018-19 Proposed Operating & Capital Budget FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget GENERAL FUND BUILDING & PERMITTING Salaries & Benefits 93,500 227,600 436,200 659,900 749,600 13.59% Other Operating 920,800 562,100 312,900 364,300 184,600 -49.33% Operating Capital 0 TOTAL BUILDING 1,014,300 789,700 749,100 1,024,200 934,200 -8.79% PUBLIC WORKS Salaries & Benefits 350,900 216,000 202,300 356,700 491,000 37.65% Other Operating 1,242,100 1,519,500 1,599,900 1,899,800 1,346,700 -29.11% Operating Capital TOTAL PUBLIC WORKS 1,593,000 1,735,500 1,802,200 2,256,500 1,837,700 -18.56% PARKS & RECREATION Salaries & Benefits 247,900 243,500 207,200 257,900 216,600 -16.01% Other Operating 99,100 85,500 198,200 178,300 158,000 -11.39% Operating Capital 0 4,300 934,400 595,800 -36.24% TOTAL PARKS & RECREATION 347,000 329,000 409,700 1,370,600 970,400 -29.20% INFORMATION TECHNOLOGY Salaries & Benefits 0 0 0 0 0 Other Operating 128,100 180,900 287,400 256,200 320,600 25.14% Operating Capital 170,600 177,800 51,200 638,100 425,900 -33.25% TOTAL INFORMATION TECHNOLOGY 298,700 358,700 338,600 894,300 746,500 -16.53% LEGAL SUPPORT SERVICES (General Fund only) Salaries & Benefits 0 0 0 0 0 Other Operating 399,000 554,300 567,000 430,200 390,000 -9.34% Operating Capital TOTAL LEGAL SUPPORT SERVICES 399,000 554,300 567,000 430,200 390,000 -9.34% GENERAL FUND TOTAL 12,957,300 14,522,500 12,702,400 16,559,600 16,079,700 -2.90% 29 FY 2018-19 Proposed Operating & Capital Budget FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget RESORT TAX FUND REVENUE Operating Revenue 3,530,900 3,449,000 3,353,700 3,442,900 3,550,000 3.11% Carryforward/ Fund Balance 212,600 223,100 0 0 150,000 Capital & Operating Revenue 3,743,500 3,672,100 3,353,700 3,442,900 3,700,000 7.47% TOURISM Salaries & Benefits 191,500 159,100 192,000 258,900 283,600 9.54% Other Operating 1,370,400 1,724,000 1,671,800 1,728,900 1,693,700 -2.04% Operating Capital 189,900 0 400 0 150,000 TOURISM TOTAL 1,751,800 1,883,100 1,864,200 1,987,800 2,127,300 7.02% BEAUTIFICATION/ GREENSPACE /OTHER RESORT TAX ELIGIBLE Salaries & Benefits 323,200 357,800 290,700 247,100 249,000 0.77% Other Operating 1,478,600 1,431,200 1,179,300 1,208,000 1,323,700 9.58% Operating Capital 189,900 0 0 0 0 TOTAL BEAUTIFICATION/GREENSPACE 1,991,700 1,789,000 1,470,000 1,455,100 1,572,700 8.08% RESORT TAX FUND TOTAL 3,743,500 3,672,100 3,334,200 3,442,900 3,700,000 7.47% 30 FY 2018-19 Proposed Operating & Capital Budget FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget WATER & WASTEWATER UTILITY FUND REVENUE Operating Revenue 3,805,900 4,457,900 4,231,300 4,816,600 5,053,400 4.92% Debt Proceeds (Capital)0 0 0 0 0 Inergovernmental Revenue/ CO 540,300 534,700 3,783,500 2,245,000 2,716,500 21.00% Carryforward/ Contributions 475,000 0 2,277,000 2,620,000 15.06% Capital & Operating Revenue 4,346,200 5,467,600 8,014,800 9,338,600 10,389,900 11.26% WATER & WASTEWATER UTILITY Salaries & Benefits 205,000 397,700 503,600 591,100 755,900 27.88% Other Operating 3,624,600 3,148,200 3,096,600 3,230,200 3,222,300 -0.24% UTILITY OPERATIONS TOTAL 3,829,600 3,545,900 3,600,200 3,821,300 3,978,200 4.11% Capital Projects 276,800 1,689,600 3,062,200 2,245,000 2,620,000 16.70% UTILITY FUND TOTAL 4,106,400 5,235,500 6,662,400 6,066,300 6,598,200 8.77% 31 FY 2018-19 Proposed Operating & Capital Budget FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget LANDSCAPE & SECURITY ASSESSMENT FUND REVENUE Operating Revenue 523,400 443,400 439,000 570,000 596,700 4.68% Fund Balance 11,800 11,700 90,400 0 44,600 Capital & Operating Revenue 535,200 455,100 529,400 570,000 641,300 12.51% LANDSCAPE & SECURITY ASSESSMENT AREA EXPENSE Salaries & Benefits 15,300 20,000 33,500 40,400 39,000 -3.47% Other Operating 519,900 435,100 495,900 529,600 602,300 13.73% L & S ASSESSMENT TOTAL 535,200 455,100 529,400 570,000 641,300 12.51% 32 FY 2018-19 Proposed Operating & Capital Budget FY 2018-19 total Revenue with Tentative Roll / Millage $16,079,700 FY 2017-18 Adopted General Fund Base Budget 15,931,570 Variance Revenue / Expenditure $148,130 CHANGES IN PROPOSED BUDGET FROM FY 2017-18 ADOPTED BUDGET FY 2017-18 Adopted General Fund Base Budget 15,931,570 Less Net Efficiencies (864,070) FY 2018-19 General Fund Proposed Base Budget 15,067,500 FY 2018-19 PROPOSED GENERAL FUND OPERATING BUDGET 33 FY 2018-19 Proposed Operating & Capital Budget The Millage and Budget Resolutions are the legislation approved by the Village Council to adopt the annual budget. The attachment to the Resolutions, which establishes the expenditure authority by department and by fund, are included in this document. There are seven (7) pieces of legislation associated with the adoption of the Proposed Budget. The following are presented to the Village Council for adoption: • Resolutions delineating the millage rate, revenues and expenditures for the Village departments and funds; • Resolution establishing solid waste service assessments; • Resolution establishing the assessment rate for security and landscape services within the gated residential section; • Resolution establishing Water & Wastewater rates for the Village Utility; • Resolution adopting a comprehensive fee schedule for the Village. Discussion of the millage rate must be the first substantive action taken at the public hearings. As you know, Bal Harbour Village has three (3) primary funds used for Village operations – the General Fund, the Resort Tax Fund, and the Water and Wastewater Utility Fund. By way of process, budget development begins with an evaluation of anticipated revenue, an evaluation of reductions or savings that can be derived over the prior year, and a determination of the cost associated with the current level of service delivered to residents; this generates the development of the Base Budget for the fiscal year. Revenue permitting, an evaluation of additional service enhancements or capital projects may be evaluated for inclusion to comprise the Proposed Budget. The Proposed General Fund Operating and Capital Budget for FY 2018-19 is $16,079,700 which is a decrease of 2.90% over the current fiscal year budget. The net reduction of $480,000 is predominantly due to less capital project appropriations within the Parks & Recreation, Public Works and Information Technology activities than the current year. The Resort Tax Fund Proposed Operating and Capital Budget is $3,700,000, which is an increase of 7.47% over the current fiscal year. The net increase of $257,100, is due to an anticipated increase in Resort Tax collections ($107,100), and the programming of $150,000 in fund balance for the use toward one- time tourism promotional initiatives and increased programming within the Tourism and Beautification activities. The Water and Wastewater Utility Fund Proposed Operating and Capital Budget is $6,598,200 which is an overall increase of 8.77% over the current fiscal year budget, a net increase of $531,900. Proposed capital expenditures within the fund reflect a 16.70% increase due to the advancement of the Utility Master Plan project with an additional $375,000 in additional proposed capital expenditures over the current fiscal year budget; projected carryforward capital funding is $3,791,700 for the completion of capital projects in future fiscal years. Proposed carryforward funds are largely due to the anticipated drawdown of the remaining $2,716,500 of Miami-Dade County General Obligation Bond (GOB) Funding for the Village’s Utility Master Plan Project; GOB 34 FY 2018-19 Proposed Operating & Capital Budget pledged proceeds are $6.5 million, $3.784 million of project expenses were reimbursed by the County in prior fiscal years. The Security and Landscape Fund, is a minor budgeted fund, which accounts for the special assessments received from the property owners residing in the special district maintaining the security and common areas. GENERAL FUND REVENUE Municipalities within the State of Florida are entitled by law to collect revenues for eligible public purposes. Municipalities generate their revenue from a combination of sources, including fees and charges, property taxes, state shared revenue and specifically authorized taxes. A summary of primary General Fund revenue sources is provided below. AD VALOREM TAXES Ad valorem tax or “property tax” is a major source of revenue for local governments in Florida. “Ad valorem” is Latin for “the value of.” Ad valorem taxes constituted 30 percent of total county revenue, and 15 percent of total municipal revenues. This makes it by far the largest single source of general revenue for general- purpose governments in Florida. The property tax is a limited revenue source. The Florida Constitution caps the millage rate assessed against the value of property at 10 mills per taxing entity. That is, taxing units are prohibited from levying more than $10 in taxes per $1,000 of taxable value on properties they tax, without obtaining voter approval. The proposed millage rate for FY 2018-19 is 1.9654 mills, this rate is consistent with the last two fiscal years, and equates to $1.9654 per $1,000 of assessed value to generate ad valorem revenue. FY 2017-18 projected current year ad valorem revenue is $9,656,500, an amount that is $265,800, less than budgeted as a result of Value Adjustment Board action. Delinquent ad valorem revenue collected in the current year, is projected at $338,000, bringing total FY 2018 collections to $9,994,500, or $72,200 less than budgeted. FY 2017 experienced $421,000 less ad valorem revenue collected than budgeted, and FY 2016 experienced $744,900 less collected than budgeted. The results, which began in FY 2015, grew significantly in FY 2016. Although the multi-year backlog of appeals generating these impacts are now cleared by the Miami-Dade County Property Appraiser’s Office, the Village continues to experience annual appeals which include all units within some of our largest developments, a trend we do not expect to change. The budgeting of ad valorem revenue is governed by the Truth in Millage (TRIM) process required by the State of Florida, with the intent to inform the public about the legislative process determining local property taxes. The TRIM process commencing in July with the certification of taxable values by the property appraiser, and the establishment of a proposed millage rate by the governing body, a public hearing date is established for the first September budget hearing where the tentative millage rate will be set by the governing body. The tentative budget presented is required to include at least 95% of ad valorem proceeds as a revenue source, computed as required by F.S. 200.065, multiplying the tentative millage rate to the certified taxable value provided by the property appraiser. The five-percent (5%) is intended to allow for value adjustments and discounts up to four- percent (4%), offered for early tax payments. This does not allow local governments to budget anticipated revenue collection based upon recent trends, the same latitude we have will all other revenue sources. If we had this ability, we could reasonably estimate a reduction of $150,000 in ad valorem collections due to value adjustment board appeals; to mitigate this impact the Proposed Budget incorporates a budget stabilization line item in the amount of $150,000. 35 FY 2018-19 Proposed Operating & Capital Budget The TRIM process incorporates a very prescriptive timeframe, providing for specific advertising placements, notification to taxpayers commencing in July and concluding in September. However, in contrast, the tax year runs from January to December, with the Value Adjustment Board appeal window for taxpayers believing their property value is incorrectly assessed running through September; in short, a process is commencing which can result in an adjusted taxable value as municipalities are adopting their budgets and millage rates for the following fiscal year. The budget stabilization line item will minimize or prevent the swings we have experienced in the last few fiscal years with ad valorem proceeds. Ad valorem revenue for the FY 2018-19 Proposed Operating and Capital Budget, derived from a tentative millage rate of 1.9654 mills are $10,267,016. While it is likely additional impacts resulting from future Value Adjustment Board action will result in FY 2019, the State Statutes require ad valorem revenue are budgeted at 95%, a budget stabilization reserve is incorporated into the Proposed Budget to offset revenue decreases anticipated in the coming fiscal year in the amount of $150,000. This is the second year in a row we have incorporated this line item to mitigate potential Value Adjustment Board impacts to our Ad Valorem revenue. At 1.9654 mills, Bal Harbour Village’s millage rate is the third lowest in Miami-Dade County out of all 34 municipalities, and the lowest municipality that is not newly-incorporated. This means that Bal Harbour Village is the only municipality within the seven with the lowest millage rates, that is a full-service municipality with legacy related expenses such as pensions; all others were incorporated in 2000 or later. The table below provides a comparison of Miami-Dade County municipal millage rates in the current fiscal year with Bal Harbour the third from the bottom of the chart as one of the lowest. Preliminary Tax Roll By law, the Property Appraiser is required to give a “preliminary certification” of the tax roll by June 1 of each year. The “final” certification by the Property Appraiser is due by July 1 of each year. Each jurisdiction is then required to set a “tentative” millage no later than July 31 of each year. Finally, a “final” millage is set by the Village Council after two public meetings held in September of each year. Bal Harbour FY 2018-19 Proposed Millage Rate 1.9654 36 FY 2018-19 Proposed Operating & Capital Budget The tax roll certified by the Miami-Dade County Property Appraiser on July 01, 2018 is $5,498,822,089, which includes an addition of $214,540,918 in new taxable value or construction and improvements. At the current and proposed tentative millage rate of 1.9654 mills, and calculated at 95% of the adjusted taxable value certified as required per F.S. 200.065(1)(a)1, the ad valorem revenue generated is $10,267,016, resulting in an increase of approximately $344,700 of tax revenue Villagewide over current year ad valorem budgeted revenue of $9,992,314. STATE PASS THROUGH REVENUE Sales and Option Taxes, State Revenue Sharing, and Communications Service Taxes are received by the Village through the State of Florida, overall these revenues showed a slight decline in the last few years, but are anticipated to stabilize in FY 2018-19 consistent with FY 2017 and FY 2018 trends. Estimates of these revenues are provided by the Florida Department of Revenue, budgeted values are derived from State projections based upon prior year actual collections, combined with current market trends within key industries such as statewide tourism. Local Government Half-cent Sales Tax Program Authorized in 1982, the program generates the largest amount of revenue for local governments among the state-shared revenue sources currently authorized by the Legislature. It distributes a portion of state sales tax revenue via three separate distributions to eligible county or municipal governments. Additionally, the program distributes a portion of communications services tax revenue to eligible fiscally constrained counties. Allocation formulas serve as the basis for these separate distributions. The program’s primary purpose is to provide relief from ad valorem and utility taxes in addition to providing counties and municipalities with revenues for local programs. FY 2017 revenues for the Village were $212,190, and FY 2018 revenue projections are $213,800, FY 2019 budgeted revenue is $212,000. Local Option Sales Tax Seven different types of local discretionary sales surtaxes (also referred to as local option sales taxes) are currently authorized by law and represent potential revenue sources for county and municipal governments and school districts. The local discretionary sales surtaxes apply to all transactions subject to the state tax imposed on sales, use, services, rentals, admissions, and other authorized transactions, and communications. FY 2017 revenues for the Village were $145,300, FY 2018 revenue is projected at $147,700, and FY 2019 budgeted revenue is anticipated at $143,000. Revenue Sharing The Florida Revenue Sharing Act of 1972, codified as Part II of Chapter 218, Florida Statutes, was an attempt by the Florida Legislature to ensure a minimum level of revenue parity across municipalities and counties. Provisions in the enacting legislation created separate revenue sharing trust funds for municipalities and counties, identified appropriate revenue sources, specified formulas for redistribution and listed eligibility requirements. Subsequent changes have not resulted in major revisions to the overall program. Changes have centered on the expansion of county bonding capacity and changes in the revenue sources and tax rates. The current Municipal Revenue Sharing Trust Fund includes three sources for municipalities: 1.3409 percent of net sales and use tax collections, the state-levied one-cent municipal gas tax collections, and 12.5 percent of the state alternative fuel user decal fee collections. FY 2017 revenues for the Village were $72,100, FY 2018 projections are $71,900, and FY 2019 budgeted revenue is anticipated at $71,000. 37 FY 2018-19 Proposed Operating & Capital Budget PUBLIC SERVICE OR UTILITY TAX Section 166.231(1)(a), Florida Statutes, provides that a municipality may levy a tax, not to exceed 10 percent, on the purchase of electricity, metered or bottled gas (natural lique fied petroleum gas or manufactured), and water service. This tax is often referred to as a “utility tax.” The tax shall be levied only upon purchases within the municipality. FY 2017 revenues for the Village were $901,900, FY 2018 projections are $894,500, and FY 2019 budgeted revenue is anticipated at $898,000. COMMUNICATIONS SERVICES TAX In 2000, the Florida Legislature created the Communications Services Tax. This legislation created a new simplified tax structure for communications services which is codified in Chapter 202, Florida Statutes. Municipalities and charter counties are authorized to levy a tax up to 5.1 percent on the transmission of voice, data, audio, video or other information services, including cable services. In addition, municipalities are authorized to levy an additional surcharge up to 0.12 percent to cover the costs of permitting activity within public rights of way. Some cities’ rates are higher due to a revenue- neutral conversion rate enacted by the Legislature for this law. FY 2017 revenue collections for the Village were $289,400, FY 2018 projections are $297,500, and FY 2018 budgeted revenue is anticipated at $297,000. FRANCHISE FEES A “franchise fee” is often confused with a public service or utility tax. There is, however, a very clear distinction. A franchise fee is a negotiated fee to a company or utility for the use of municipal rights of way (for their poles, lines, pipes, etc.), and could include the value of the right for the utility to be the exclusive provider of its services within a specified area. It is charged directly to the utility and payable to the municipal governing body by the utility as a cost of doing business. It cannot be a direct charge to the customers of the utility, but it appears to be done so due to a Florida Public Service Commission rule. FY 2017 revenues to the Village were $689,000, FY 2018 projections are $683,800, and FY 2019 budgeted revenue is anticipated at $685,800. BEVERAGE LICENSE TAX Various alcoholic beverage license taxes are levied on manufacturers, distributors, vendors, and sales agents of alcoholic beverages in Florida. The tax is administered, collected, enforced, and distributed back to the local governments by the Division of Alcoholic Beverages and Tobacco within the Florida Department of Business and Professional Regulation. Proceeds from the license tax fees are deposited into the Alcoholic Beverage and Tobacco Trust Fund, which is subject to the 7.3 percent General Revenue Service Charge. From the alcoholic beverage license tax proceeds collected within an incorporated municipality, 38 percent is returned to the appropriate municipal officer. An authorized use of the proceeds is not specified in the statutes. FY 2017 revenue distributed to the Village was $6,100, FY 2018 projections are $6,700, and FY 2019 budgeted revenue is anticipated at $6,100. FINES AND FORFEITURES This revenue source includes, receipts from fines and penalties imposed for the commission of statutory offenses, violation of legal administrative rules and regulations, and for neglect of official duty. Fines include, but are not limited to, court fines, violations of municipal ordinances, pollution control violations, animal control fines and library fines. Forfeitures include revenues resulting from confiscation of deposits or bonds held as performance guarantees, and proceeds from the sale of contraband property seized by law enforcement agencies. 38 FY 2018-19 Proposed Operating & Capital Budget Over eighty-percent of this revenue for the Village is derived from the Village’s red-light camera program, traffic, and code enforcement fines comprise the balance. FY 2017 revenues collections for the Village were $280,700, which is significantly lower than prior years due to the temporary removal of three red light cameras for construction purposes through the third quarter of FY 2018, FY 2018 projection is $371,800, and FY 2019 budgeted revenue is anticipated at $468,700, of which $384,000 is red light camera related. INVESTMENT INCOME Revenues derived from the investment of cash receipts and idle funds are an important source of revenue. Many local governments in Florida recognize the importance of establishing effective investment policies and cash management programs. The 1995 Florida Legislature, also recognizing this critical need of state and local governments, enacted Chapter 95-194, Laws of Florida. This act creates the state investment policy for public funds and provides its applicability to the state, local governments, and public officers. This act also creates the “State Investment Policy Committee” and provides for its duties in recommending changes to the state investment policy and its duties in reviewing investments and vendors of investments eligible for receiving public funds. Section 166.261, Florida Statutes, is amended by this legislation to prescribe the duties of municipalities with respect to investment funds: “The governing body of each municipality shall invest and reinvest any surplus funds in its control or possession in accordance with the state investment policy for public funds.” The term “surplus funds” is redefined as “funds in any general or special account or fund of the municipality, held or controlled by the governing body of the municipality, which funds are not reasonably contemplated to be needed to meet current expenses”. This law further requires that all municipalities shall adopt written investment policies by October 1, 1995 or a municipality’s investments must be limited to certain categories of investments authorized by statute. FY 2017 revenue is $61,488, FY 2018 projections are $96,000, and the FY 2019 budgeted revenue is anticipated at $85,000. Increased revenue is due to basis point earning increases at the State Board of Administration. 39 FY 2018-19 Proposed Operating & Capital Budget REVENUE SUMMARY ALL FUNDS Operating revenue by Fund are summarized in the chart below for five fiscal years. Total FY 2018-19 proposed operating revenue for the Village’s three primary funds is $24,683,100. The General Fund comprises just over sixty-three and one-half percent of all Village revenue, just under twenty percent is the revenue for the Water and Wastewater Utility Fund, and fourteen percent is the Resort Tax Fund revenue. The Security and Landscape Assessment Fund is just over two and one-half percent of revenue at $641,300. Revenue for the General Fund is largely comprised of property taxes, Franchise Fees and Utility Taxes, Fees and Charges for Services, and Intergovernmental revenue sources. The Resort Tax Fund derives revenue from taxes levied on lodging and food and beverages sold within the Village, four-percent, and two- percent respectively. The Water and Wastewater Utility Fund derives revenue through direct charges for metered services provided to customers. The largest source of General Fund Revenues within the FY 2018- 19 Proposed Operating and Capital Budget are property taxes at sixty-four percent, followed by Permit and Licensing revenue at eleven and one-half percent, Utility Tax and Franchise Fees just under ten percent, and Intergovernmental (State) revenue comprising four and one-half percent. Fines and forfeitures are just under three percent. Licenses and Permit revenue includes Local Business Tax collections and Building Permit revenue, the latter of which is to offset the costs associated operating processing building permits in operating a Building and Permitting Department. Operating Revenue Summary by Fund FY2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget General Fund $14,610,400 $14,538,600 $14,336,100 $16,559,600 $16,079,700 Resort Tax Fund 3,743,500 3,672,100 3,353,700 3,442,900 3,550,000 Water and Wastewater Fund 3,805,900 4,457,900 4,231,300 4,816,600 5,053,400 Total Operating Revenue $22,159,800 $22,668,600 $21,921,100 $24,819,100 $24,683,100 General Fund 63.49% Resort Tax Fund 14.02% Water and Wastewater Fund 19.95% Security & Landscape Assessment Fund 2.53% Percentage of Total Operating Revenue by Fund 40 FY 2018-19 Proposed Operating & Capital Budget Assessments include revenue collected for residential solid waste collection services at just over four percent of total General Fund revenue at $678,800 for FY 2018-19. Miscellaneous revenue are those which are not otherwise categorized for financial reporting purposes, these include interest earnings, lobbyist registration fees, parking meter collections, and administrative service charges, for the Village these comprise just over three percent of total General Fund revenue at $499,600 largely due to the collection of police off-duty and retiree health pass through revenue within this category ($230,400). Recurring and non-recurring are two broad classifications applied to revenue. Recurring revenue, are from sources which can be anticipated year over year, examples of these are ad valorem taxes, state revenue sources, and fees or charges for service. Non- recurring revenue are those which cannot be anticipated in future years, examples of these for the Village are proceeds from developer agreements, the programming of prior year fund balance, single year funding allocations from other agencies, and debt proceeds. Non-recurring revenue is typically used for capital projects, and initiatives which are one-time in nature, it is not advisable to use one-time revenue for operating ongoing operating purposes. The FY 2018-19 Proposed Operating and Capital Budget does not include non-recurring revenue within the General Fund. The Resort Tax Fund includes $150,000 of fund balance revenue for the provision of one-time tourism operating capital initiatives. FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND REVENUE Ad Valorem Taxes 7,876,800$ 9,922,300$ 10,267,100$ Delinquent Ad Valorem Taxes 318,800 0 0 Utility Service Tax 901,900 788,000 898,000 Franchise Fee 689,000 670,000 685,800 Intergovernmental Revenue 725,000 732,300 729,100 Permits & Licenses 2,186,900 1,840,000 1,852,700 Fines & Forfeitures 280,700 600,000 468,700 Miscellaneous 715,300 710,300 499,500 Solid Waste Assessments 641,700 671,700 678,800 Subtotal Operating Revenue 14,336,100 15,934,600 16,079,700 Fund Balance-Capital Projects Reserve 0 625,000 0 TOTAL GENERAL FUND REVENUE 14,336,100$ 16,559,600$ 16,079,700$ Ad Valorem Taxes 64% Utility Service Tax 6% Franchise Fee 4% Intergovernmental Revenue 5% Permits & Licenses 11% Fines & Forfeitures 3% Miscellaneous 3% Solid Waste Assessments 4% General Fund Revenue by Type 41 FY 2018-19 Proposed Operating & Capital Budget The Utility Fund incorporates $2,620,000 of prior year capital project appropriations as Carryforward revenue, and anticipated reimbursements of $2,716,500 as intergovernmental revenue from Miami-Dade County GOB reimbursements for Utility Master Plan capital expenses. The FY 2018-19 Proposed Operating and Capital Budget for the Security and Landscape Assessment Fund includes the anticipated use of $71,300 of fund balance revenue for anticipated operating expenses in the coming fiscal year. Fees and Charges The evaluation of fees and service charges, provides an opportunity to ensure those that use the services pay for the cost of service provision. An annual evaluation of existing fees for service within the Village is a part of each year’s budget development process. A comprehensive fee schedule accompanies the proposed budget for adoption by the Village Council to provide a singular reference point for all Village fees, so they are clearly identified for customers and staff alike. The annual evaluation of fees provides an opportunity, if so desired, to limit the proportionate share of revenue generated from property taxes. No fee changes are proposed for the coming fiscal year, however a five-percent change to Local Business Tax Receipts was adopted by Council in July, and the Proposed Budget recommends a pass-through rate decrease to Water rates for the Village Utility customers, which are proposed for incorporation into the comprehensive fee schedule. Water & Wastewater Utility Fund Rates and Adjustments Water and Wastewater services within the Village are provided as an enterprise operation. Services are funded as payments for measurable water and wastewater services are consumed. Pursuant to Chapter 180, Florida Statutes, municipalities are authorized to establish just and equitable rates to be paid for the use of the utility. Rates established as charges for services should sustain its operations and satisfy any related debt. Water & Wastewater Utility Rates For the Village utility operations, water is purchased at a wholesale rate from the Miami-Dade County Water and Sewer Department (Miami-Dade WASD), and the City of Miami Beach applies a wholesale rate for wastewater or sewer services which travels through their system for treatment at to the Miami-Dade WASD Virginia Key plant. The Wholesale water service is paid directly to Miami-Dade WASD, and wholesale sewer services are paid directly to the City of Miami Beach by the Village, for this reason their rates directly affect the rates the Village charges to our customers. The Miami-Dade WASD has incorporated a water rate decrease in their proposed FY 2019 Budget, and we propose to pass that reduction on to our Village customers. The proposed wholesale water rate change is a decrease of 3.89%, or $0.0713 cent for Wholesale Water Rates, from $1.8341/1,000 gallons to $1.7628/1,000 gallons. If this rate reduction were passed-through to Village utility customers consistent with the past practice in the last few fiscal years, it would result in an adjustment from $4.88/1,000 gallons, to $4.81/1,000 gallons or a 1.46% rate reduction to Village customers, as summarized below. The pass-through wholesale water rate decrease, would save Village customers who average 20,000 gallons per month approximately $17.00 for the fiscal year at the new rate of $4.81/1,000 gallons. 2016-17 2017-18 2018-19 Percent Change MD-WASD wholesale rate $1.7341 $1.8341 $1.7628 -3.89% Bal Harbour Village $3.05 $3.05 $3.05 0.00% Total $4.78 $4.88 $4.81 -1.46% Water Service Rates (per 1,000 gallons) 42 FY 2018-19 Proposed Operating & Capital Budget We know Miami-Dade WASD does not propose a FY 2018-19 rate increase for wholesale Sewer service rates. The City of Miami Beach pays Miami-Dade WASD for sewer services, and the Village pays the City of Miami Beach. As of publication of the Village’s Proposed FY 2018-19 Operating and Capital Budget, the City of Miami Beach is still reviewing the wholesale sewer rates through a rate consultant and therefore are unable to provide a rate recommendation for the coming fiscal year. Presently, the FY 2018-19 Proposed Utility Fund Budget is balanced with the proposed rate decrease for wholesale water services, and with a flat rate for wholesale sewer service rates. A surcharge is included within the City of Miami Beach wholesale sewer rate as an administrative fee and a renewal and replacement infrastructure fee. Miami-Dade County requires a Service Fee of $8.00 per each one hundred $100.00 of the receipts of the utility, this 8.0% is collected on each bill as Utility Tax and is remitted to the County at the conclusion of each fiscal year; this rate has remained unchanged since FY 2015. At their July 31, 2018 meeting, the Village Budget Advisory Committee reviewed the proposed pass-through water wholesale rate decrease and reached consensus on the recommended reduction, and in light of the limited information on wholesale sewer rates recommended approval of a possible rate increase not to exceed a six-percent increase to the current Bal Harbour However, the FY 2018-19 Proposed Operating and Capital Budget is presented inclusive of the reduced water rate of $4.81/1,000 gallons, and the existing sewer rate of $8.38/1,000 gallons of consumption. 2016-17 2017-18 2018-19 Percent Change CMB wholesale rate $3.2705 $3.4179 $3.4179 unknown Bal Harbour Village $4.96 $4.96 $4.96 0.00% Total $8.23 $8.38 $8.38 unknown Wastewater Service Rates (per 1,000 gallons) 43 FY 2018-19 Proposed Operating & Capital Budget EXPENDITURES EXPENDITURE SUMMARY FY 2018-19 proposed expenditure by Department or Activity for all funds inclusive of enhancements totals $27,019,200. Just under forty-three percent of total expenditures, or $11,560,300 are within the Parks and Public Spaces Department, which is comprised of the Public Works, Parks & Recreation, Utility, Beautification, and Security & Landscape activities for the Village, across all funds. Law Enforcement comprises just under twenty- seven percent or $7,214,800 of expenditures followed by Tourism comprising just under eight-percent or $2,117,300. Lesser single digit percentage allocations are proposed for the remaining departments and activities, as summarized in the following charts. Percentage of Total Expenditure Legislative $244,000 0.90% Administration 1,328,900 4.92% Finance 668,500 2.47% General Government 1,744,700 6.46% Law Enforcement 7,214,800 26.70% Building 934,200 3.46% Information Technology 746,500 2.76% Legal Support Services 460,000 1.70% Tourism 2,117,300 7.84% Parks and Public Spaces $11,560,300 42.79% TOTAL ALL FUNDS $27,019,200 100.00% All Funds FY 2018-19 Proposed Expenditure by Department / Activity Legislative 0.90% Administration 4.92%Finance 2.47%General Government 6.46% Law Enforcement 26.70% Building 3.46% Information Technology 2.76% Legal Support Services 1.70% Tourism 7.84% Parks and Public Spaces 42.79% All Funds FY 2018-19 Proposed Expenditure by Department/Activity 44 FY 2018-19 Proposed Operating & Capital Budget The FY 2018-19 proposed General Fund expenditure by Department or Activity are comprised of Law Enforcement at just under forty-five percent of the whole, followed by seventeen and one-half percent for Parks and Public Spaces including the Public Works and Parks & Recreation activities, just under eleven percent for General Government, followed by single digit percentages for the remaining activities, as summarized in the following charts. GENERAL FUND To balance the FY 2018-19 Proposed Budget inflationary increases to expenditures and reductions to operating and capital expense were identified, which amounted to a net decrease of ($864,100). Proposed expenditure increases included retirement costs driven by actuarial valuations of the Village pension plans, approved salary adjustments for the Village Council, bargaining related increases to Police Department salaries, increased liability and workers compensation insurance costs, and additional expense for budgeted retiree related expenses. The impact of these increases were offset by reductions from prior fiscal year budgeted expenditures within Building and Permitting professional services, rentals and leases within the Police Department), reductions to capital expense within Public Works and Parks Capital allocations; generating a net reduction of $864,100. The identification of savings allowed for a balanced base budget within existing resources. Legislative 1.52% Administration 8.26% Finance 4.16% General Government 10.85% Law Enforcement 44.87% Building 5.81% Public Works 11.43% Parks & Recreation 6.03% Information Technology 4.64% Legal Support Services 2.43% General Fund FY 2018-19 Proposed Expenditure by Department / Activity Percentage of Total Expenditure Legislative $244,000 1.52% Administration 1,328,900 8.26% Finance 668,500 4.16% General Government 1,744,700 10.85% Law Enforcement 7,214,800 44.87% Building 934,200 5.81% Public Works 1,837,700 11.43% Parks & Recreation 970,400 6.03% Information Technology 746,500 4.64% Legal Support Services $390,000 2.43% TOTAL $16,079,700 100.00% General Fund FY 2018-19 Proposed Expenditure by Department / Activity 45 FY 2018-19 Proposed Operating & Capital Budget These changes bring the General Fund FY 2018-19 Proposed Base Budget to $15,067,500, excluding proposed enhancements. Complementary to the evaluation of available revenue resources, the incorporation of inflationary expenditures, costs associated with existing levels of service, and opportunities for budgetary reductions, proposed operating and capital enhancements were identified for inclusion in the FY 2018-19 Proposed Budget. The proposed enhancements summarized in the following chart provide for $895,800 in Villagewide capital improvements, the addition of one Capital Construction Manager position and one Accounting Clerk position, and temporary document management assistance to the Village Clerk ($71,400), and dedicated contractual Beach Management support ($45,000) totaling $116,400. Combined with the base budget, the proposed enhancements result in a FY 2018-19 Proposed Operating and Capital General Fund Budget totaling $16,079,700. Additional capital funding allocations are proposed for restoration of the Bal Harbour Jetty ($595,800), toward Utility Master Plan Stormwater improvements ($150,000), the renewal and replacement of fleet ($150,000) totaling $895,800 in new appropriations for capital projects. FY 2018-19 total Revenue with Tentative Roll / Millage $16,079,700 FY 2017-18 Adopted General Fund Base Budget 15,931,570 Variance Revenue / Expenditure $148,130 CHANGES IN PROPOSED BUDGET FROM FY 2017-18 ADOPTED BUDGET FY 2017-18 Adopted General Fund Base Budget 15,931,570 Less Net Efficiencies (864,070) FY 2018-19 General Fund Proposed Base Budget 15,067,500 FY 2018-19 PROPOSED GENERAL FUND OPERATING BUDGET PROPOSED ENHANCEMENTS to the FY 2018-19 BASE BUDGET FY 2018-19 General Fund Proposed Base Budget $15,067,500 Operating Capital Construction Manager (GF Impact)$51,400 Temp Document Management Assistance $20,000 Accounting Clerk (No GF Impact)$0 Beach Management (GF Impact )$45,000 subtotal operating $116,400 Capital Jetty Restoration $595,800 Stormwater Improvements $150,000 Fleet R&R $150,000 subtotal capital $895,800 Total Proposed Enhancements $1,012,200 FY 2018-19 Proposed General Fund Budget $16,079,700 Revenue Less Expense $0 46 FY 2018-19 Proposed Operating & Capital Budget CAPITAL AND CAPITAL PROJECTS The FY 2018-19 Proposed Operating and Capital Budget includes capital improvements Villagewide, as summarized in the following chart. The Proposed Budget includes new funding or appropriations for the Haulover Inlet Jetty ($595,800), funds for the Utility Master Plan Stormwater Improvements ($150,000), an allocation toward the Renewal and Replacement of Fleet ($150,000), for a General Fund total of $895,800. Within the Resort Tax Fund $95,000 is appropriated for Haulover Bridge Improvements, and there are no new appropriations within the Utility Fund toward the Utility Master Plan Project. Remaining Appropriations reflect prior year revenue allocations toward a project, net of the prior fiscal year. For all funds, remaining appropriations total total $13,895,550, with $3,908,400 within the General fund, $95,000 within the Resort Tax Fund, and $9,892,100 within the Utility Fund. FY 2019 projected capital project expense for all funds are $3,938,900, of the anticipated spend $1,223,900 is from the General Fund, $95,000 from the Resort Tax Fund, and $2,620,000 from the Utility Fund. General Fund Capital The FY 2018-19 Proposed Operating and Capital General Fund Budget includes additional investment toward the restoration of the Jetty, the stormwater component of the Utility Master Plan project and a renewal and replacement program for fleet. The FY 2018-19 proposed capital expenditure for the fund totals $1,223,900, for the advancement of Jetty and Bal Harbour Park improvements, the concept design of the 96th Street Plaza, implementation of the CAD RMS projects within the Police Department and stormwater improvements. Bal Harbour Jetty: The Jetty surface is degraded and requires significant restoration. This Bal Harbour landmark could be much more than it is today, providing a stable pedestrian walking surface and enhancing the overall aesthetic of the Beach. For this reason, the FY 2018-19 Proposed Capital Plan includes the expense of $100,000 to complete a concept plan for improvements to the Jetty, the total appropriations for the project now total $1,259,800. Improvement could include features such as railing, seating, an Art in Public Spaces component, a custom navigational lighting feature and or custom walking surface. CAPITAL PROJECT Re-allocation of Prior Year Appropriation FY 2019 Proposed Appropriation Total Capital Appropriation (prior years & proposed) FY 2019 Projected Spend GENERAL FUND Revenue Appropriation 895,800 6,911,052 Park Bathroom (50,000) 0 - Sea Wall (51,700) 0 - Village Hall Improvements 563,000 - Jetty 595,800 1,259,800 100,000 Waterfront Park 101,700 986,100 800,000 96th Street Plaza 100,000 12,000 Jogging Path 100,000 - Beach Furniture 75,000 - Fleet 150,000 1,561,400 - Information Technology 227,000 - CAD 380,000 161,900 Collins Corridor Redesign 0 - Utility Master Plan: Stormwater 150,000 310,000 150,000 TOTAL CAPTIAL APPROPRIATION 0 895,800 6,911,052 1,223,900 RESORT TAX FUND Revenue Appropriation 95,000 95,000 Haulover Bridge Improvements 95,000 95,000 95,000 TOTAL CAPTIAL APPROPRIATION 95,000 95,000 95,000 WATER & WASTEWATER UTILITY FUND Revenue Appropriation 14,917,000 Utility Master Plan: Water/Sewer 0 0 14,885,000 2,620,000 Mini Excavator 0 0 32,000 - TOTAL CAPTIAL APPROPRIATION 0 0 14,917,000 2,620,000 47 FY 2018-19 Proposed Operating & Capital Budget Waterfront Park Development: This project is part of the approved Development agreement between the Village and The Bal Harbour Shops, providing funding $3,500,000 toward the design and redevelop the Bal Harbour Park after the charrette and plan approval. Two community design workshops were held, resulting in a concept plan for the park, which was approved by Council at the May 15, 2018 meeting. The project will redesign the site of our existing park, parking lot and public works facility into an inviting waterfront community park. The FY 2018-19 Proposed Capital Plan includes $800,000 for the completion of design and architectural and engineering work for the waterfront park. Village total appropriations toward the project are $986,100, this is in addition to the $3,500,000 contribution from the Shops toward the completion of this project, and $1.233 million of capital project reserve funds from FY 2017, which could be earmarked for this project, bringing the total of funds allocated to $5.7 million. It is important to note the development of the Bal Harbour Waterfront Park displaces the offices and storage facilities for the Parks and Public Spaces Department and parking for Village Hall. Accommodations were made within the Development Agreement for the Bal Harbour Shops to provide shared parking for Village Hall during construction of the Waterfront Park and before the construction of a new Village Hall. Staff has been searching for a facility or land with favorable terms to store our equipment and house staff. The ideal location for this is inland, yet proximate to the Village, enabling the facility to serve a dual purpose, for day- to-day operations and as a hardened emergency operations facility in the event of an extreme weather event or hurricane. 96th Street Sunset Park: Improvement of the Public entrance to the Beach at the terminus of 96th Street, is an ideal project to partner with the Town of Surfside on. Providing improvements to this unremarkable entrance to one of the Village’s primary features would prove a key enhancement to our aesthetics. The FY 2018- 19 Proposed Capital Plan includes the expense for the creation of a project concept plan for the creation of a pedestrian plaza as an entry feature to our linear park; the total appropriations for the project now total $100,000. CAD RMS: The CAD RMS project is key to enhancing the efficiency of Police Department operations, FY 2018-19 will mark the second and final year of implementation for this important technological initiative. The FY 2018-19 Proposed Capital Plan includes $161,900 to complete the installation, training and mobilization of the system, with no further appropriations remaining. Stormwater Improvements: The Utility Master Plan includes water, wastewater, and stormwater improvements. Provided with funding from the General Fund stormwater improvements are key to the resiliency of the Village in the aftermath and during extreme weather events. The FY 2018-19 Proposed Capital Plan includes $150,000 for stormwater improvements, adding to $160,000 of improvements made in the current fiscal year to Pump Station One on Harbour Way, and North of Harbour Way on Park Dive. 48 FY 2018-19 Proposed Operating & Capital Budget Resort Tax Fund Capital The Resort Tax Fund includes one proposed capital project. Haulover Inlet Bridge: The FY 2018-19 Proposed Capital Plan includes $95,000 to restore and paint the underside of the Haulover Inlet Bridge to bringing it back to pre FDOT construction Bal Harbour standards. Utility Fund Capital The Utility Fund includes the continuation of one capital project; the multi-year Utility Master Plan Project. Utility Master Plan Project: The FY 2018-19 Proposed Capital Plan continues progression on the Utility Master Plan with prior year appropriations with $2,620,000 in proposed expenditure for water and wastewater improvements. Anticipated expenditures include improvements to Sewer Pump Station One, along Collins Avenue in front of the Kenilworth and Carlton Terrace Condominiums, Park Drive north of Harbour Way, and water improvement in the location of Stormwater Pump One on Harbour Way. These improvements advance the master plan toward completion of Phase Three with our revised approach which minimizes the disruptive impact to residents through lateral drilling and relining of existing pipes. PROPOSED EXPENDITURE SUMMARY OF ALL FUNDS Bal Harbour has three primary Funds used for operating the Village; the General Fund, the Resort Tax Fund, and the Water & Wastewater Utility Fund. The FY 2018-19 Proposed Operating and Capital Budget for all funds includes an overall increase just under one and one-half percent over the FY 2017-18 Budget, as summarized in the chart below. The General Fund inclusive of capital appropriations reflects a decrease just under a three- percent from the current year budget with proposed expense of $16,079,700, the Resort Tax Fund reflects just under a two and one-half percent decrease for the Tourism and Beautification activities at $3,700,000, and the Water and Wastewater Utility Fund reflects almost a nine-percent increase from the FY 2017 budget at $6,598,200. In addition, the minor Security and Landscape Assessment Fund includes an increase of twelve and one-half percent with a proposed expense of $641,300. Water & Wastewater Utility Fund Proposed Expense The Proposed FY 2018-19 Operating and Capital Budget for the Utility Fund includes $3,978,200 in operating expense, and $2,620,000 toward the continuation of the Utility Master Plan capital project. Operating expenses reflect work performed for the proprietary fund inclusive of personnel expenses, absent a General Fund subsidy which occurred prior to FY 2015. Expense Summary for All Funds FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget to Proposed FY 2019 Budget General Fund $12,702,400 $16,559,600 $16,079,700 -2.90% Resort Tax Fund 3,334,200 3,442,900 3,700,000 7.47% Water and Wastewater Utility Fund 6,662,400 6,066,300 6,598,200 8.77% Total Operating Revenue $22,699,000 $26,068,800 $26,377,900 Security & Landscape Assessment Fund $529,400 $570,000 $641,300 12.51% FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget to FY 2019 Proposed Budget WATER & WASTEWATER UTILITY Salaries & Benefits 503,600 591,100 755,900 27.88% Other Operating 3,096,600 3,230,200 3,222,300 -0.24% UTILITY OPERATIONS TOTAL 3,600,200 3,821,300 3,978,200 4.11% Capital Projects 3,062,200 2,245,000 2,620,000 16.70% UTILITY FUND TOTAL 6,662,400 6,066,300 6,598,200 8.77% 49 FY 2018-19 Proposed Operating & Capital Budget Resort Tax Fund Proposed Expense FY 2018-19 proposed expenditures for the Resort Tax Fund reflect an overall decrease of 2.42% from the FY 2017-18 budget. The Proposed Budget provides for both Tourism and Beautification activities within the anticipated Resort Tax collections for FY 2018- 19, and an allocation of fund balance for non-recurring tourism initiatives. Tourism, Marketing, and Beautification efforts to enhance the overall appeal of the Village as premier destination continue at the level of service experienced in the current fiscal year with the additional allocation for dedicated contractual Beach Management - Re-nourishment support ($45,000) with a matching amount in the General Fund totaling $90,000, and for restoration of the Haulover Bridge to pre FDOT construction standards ($95,000). Operating capital for Tourism includes proposed expenditures for still and video design imagery refreshing the Village’s creative collateral and promotional materials for advertising, marketing, and public relations placements ($50,000) and an additional luxury focused engagement in partnership with the Greater Miami Convention and Visitor’s Bureau ($100,000). Security & Landscape Assessment Fund The FY 2018-19 Proposed Budget for the Security and landscape Assessment Fund reflects an increase over the current year of $71,300, for potential security enhancements and legal service expenses. For the second year in the row, the FY 2018-19 Proposed Budget was prepared based on the rates of $2,639.53 for each Single- Family Residential Unit, half that number, $1,319.76, for each Unimproved Property and $10,557.12, for each Private Recreational Facility. The FY 2018-19 proposed operating expense for the fund requires a $44,600 allocation of fund balance to provide a balanced proposed budget. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget RESORT TAX FUND TOURISM Salaries & Benefits 191,500 159,100 192,000 258,900 283,600 9.54% Other Operating 1,370,400 1,724,000 1,671,800 1,728,900 1,693,700 -2.04% Operating Capital 189,900 0 400 0 150,000 TOURISM TOTAL 1,751,800 1,883,100 1,864,200 1,987,800 2,127,300 7.02% BEAUTIFICATION/ GREENSPACE /OTHER RESORT TAX ELIGIBLE Salaries & Benefits 323,200 357,800 290,700 247,100 249,000 0.77% Other Operating 1,478,600 1,431,200 1,179,300 1,208,000 1,323,700 9.58% Operating Capital 189,900 0 0 0 0 TOTAL BEAUTIFICATION/GREENSPACE 1,991,700 1,789,000 1,470,000 1,455,100 1,572,700 8.08% RESORT TAX FUND TOTAL 3,743,500 3,672,100 3,334,200 3,442,900 3,700,000 7.47% FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget % Change from FY 2018 Budget to FY 2019 Proposed Budget LANDSCAPE & SECURITY ASSESSMENT FUND LANDSCAPE & SECURITY ASSESSMENT AREA EXPENSE Salaries & Benefits 33,500 40,400 39,000 -3.47% Other Operating 495,900 529,600 602,300 13.73% L & S ASSESSMENT TOTAL 529,400 570,000 641,300 12.51% 50 Legislative DESCRIPTION The Bal Harbour Village Council is made up of the Mayor and four Councilmembers. The Mayor presides over Council meetings and is considered the Village’s representative locally, nationally and internationally. The Mayor and Councilmembers set policy for the Village. Setting policy means making decisions about what is allowed and what is not allowed in the Village, about what services need to be provided to the residents, businesses and visitors, and about how to solve problems that concern citizens. As elected officials, the Mayor and Councilmembers respond to citizens who seek their assistance in matters involving the governance and operation of the Bal Harbour Village. Through the enactment of ordinances and resolutions, the review and approval of contracts, and proclamations, the Village Council works to improve the quality of life, economic development, and enhanced communication between Village government and the community. FINANCIAL SUMMARY FUNCTIONAL TABLE OF ORGANIZATION BUDGET HIGHLIGHTS • The Proposed Budget includes full funding of health insurance coverage for the five elected officials at Point of Service level coverage; if officials opt not to avail themselves of the insurance, funds will not be spent. • The Proposed Budget incorporates salary increases for the Council Groups one, three, and five, as adopted in September of 2017. • The Proposed Budget does not incorporate funding for outside legal services which impacted expenditures during FY 2016 and FY 2017. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND LEGISLATIVE Salaries & Benefits 41,200 51,600 68,800 70,000 145,900 Other Operating 34,300 642,900 254,700 100,600 98,100 Operating Capital TOTAL LEGISLATIVE 75,500 694,500 323,500 170,600 244,000 Citizens Village Council 51 52 Administration DESCRIPTION The Village Manager is appointed by the Village Council, and vested with the responsibility to ensure that policies, directives, resolutions, and ordinances adopted by the Village Council are enforced and implemented. As the Village Chief Executive Officer, the Village Manager is responsible for providing executive-level leadership, vision, and guidance to the organization, providing recommendations to the Village Council and implementing policy directives in an efficient and effective manner. In addition, the Village Manager is responsible for the daily operations of the Village, preparing and administering the budget, planning the development of the Village, supervising Village employees, interacting with citizen groups and businesses, and is otherwise responsible for the health, safety, and welfare of the residents, members of the business community, and the visitors to the Village. The Administration operating budget includes the following functions: • Human Resources, which is responsible for personnel, recruitment, benefits, compensation, risk management and labor relations. • General Administration, which encompasses activities related to the coordination and supervision of day-to-day operations of the Village administration, including contract management, records management, agenda coordination, and information technology, among others. • The Village Clerk is appointed by the Village Council and serves as the secretary and custodian of the Village Seal, compiling official Village Council committee agendas and minutes, and serving as the facilitator in providing public records and information expeditiously to the Village Council, the public, Village staff and other governmental agencies. FUNCTIONAL TABLE OF ORGANIZATION Village Council Village Manager Human Resources Information Technology General Administration Village Clerk 53 Administration FINANCIAL SUMMARY BUDGET HIGHLIGHTS • The Proposed Budget incorporates funding for temporary records management assistance for the Village Clerk ($20,000). • The Proposed Budget incorporates funding for the Village’s participation in the Best Buddies program ($15,000). SIGNIFCANT ACCOMPLISHMENTS • Ended the fiscal year with an operating budget surplus of $1.6 million. • Renegotiated Village Attorney contract to retain the expertise of Weiss Serota while significantly reducing costs for routine legal services. • Overhauled and updated the Village’s sign ordinance to harmonize with the Village’s new development projects. • Coordinated a beach re-nourishment roundtable discussion with the County Mayor with the long-term goal of creating an advocacy coalition with our neighboring coastal cities. • Entered into a milestone agreement with the Bal Harbour Civic Association to allow for the formation of an autonomous homeowner’s association within the Gated Community. • Coordinated a Village Council retreat to develop group- solving strategies and memorialize the priorities for the Village’s long-term goals – with specific focus on beach re- nourishment, tourism, and the new waterfront park. • Reached a settlement with Flamingo Way, which granted the Village important utility easements and access to future greenspace. • Opened a new public Skate Park at Haulover in partnership with neighboring cities. • Entered into a development agreement for the new Beach Haus project, which encompasses the redevelopment of the former Quarzo site. • Hosted two public design workshops to gather perspectives and desires from residents for the new waterfront park. • Successfully acquired property for a new off-site Parks and Public Spaces operating facility. • Published over 200 LTC detailing weekly events, police information, monthly check disbursements, along with policy changes and other pertinent information for Council. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND ADMINSTRATION Salaries & Benefits 850,400 912,100 994,000 1,103,900 1,186,200 Other Operating 79,500 60,800 59,900 113,400 142,700 Operating Capital TOTAL ADMINISTRATION 929,900 972,900 1,053,900 1,217,300 1,328,900 54 Administration Village Clerk • Conducted, supervised and successfully completed the qualification and election processes for the November 2018 General Municipal, and have begun the 2020 election cycle. All elections-related documents, including candidate qualification papers, campaign finance reports, and certified election results, were promptly made available for public access on the Village’s website. • Purchased, installed and implemented a closed- captioning software to compliment live streaming of Village Council Meetings in compliance with ADA and FCC accessibility standards. 55 Information Technology DESCRIPTION As a part of Administration, Information Technology provides support services to both internal and external customers to enhance operational effectiveness and continuity through technology. Through a contracted service delivery model information technology provides sound, secure and stable infrastructure, allowing for the smooth flow of communications and information. FINANCIAL SUMMARY BUDGET HIGHLIGHTS • The Proposed Budget continues to provide contractual Information Technology services through Calvin Giordano and Associates, consistent with current fiscal year levels of service. • The Proposed Budget reflects a capital reduction of $212,200, as a result of the implementation of of the CAD RMS system commenced in the current fiscal year with completion in FY 2019. SIGNIFICANT ACCOMPLISHMENTS • Implemented and configured new network environment with Dell servers, storage solution, and backup solution for upcoming Police Computer Aided Dispatch (CAD) Superion Software. • Build and installed network rack and remodeled server room to accommodate new CAD hardware. • Configured new virtual environment with new cluster, hosts, and virtual servers to accommodate CAD environment. • Implemented and configured new firewall access control list for new CAD environment. • Configured Dell network switches to ensure high rate read- write transfer rate with CAD environment. • Migrated to disked based backup solution for high performance network backups for CAD and Village network environment. • Implemented Carbonite cloud network back to ensure redundant network backup, including fileshare documents. • Coordinated with the Finance Department to deploy online payments for Utility Billing and Business Tax Receipt on the Village website and Village app. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND INFORMATION TECHNOLOGY Salaries & Benefits 0 0 0 0 0 Other Operating 128,100 180,900 287,400 256,200 320,600 Operating Capital 170,600 177,800 51,200 638,100 425,900 TOTAL INFORMATION TECHNOLOGY 298,700 358,700 338,600 894,300 746,500 56 Information Technology • Coordinated with the Building Department, Finance Department and Smartgov (Building Department permitting application) to integrate online payments for permits through the Village website and Village app. • Purchased a third redundancy wireless line for Police Dispatch to ensure communication continuity during critical incidents. • Ensured continuity of internet during critical incidents by purchasing Cradlepoint LTE router for redundancy of internet, email, and VoIP systems. • Migrated AVLS Trackstar software to new web environment which will allow fleet access across multiple platforms which includes internet browsers, smartphones, and tablets. • Transitioned to new Sharp multi-function printers to ensure high performance, efficient printing, copying, and scanning for Village. • Successfully completed FDLE Police audit to meet the requirements for the Criminal Justice Information System (CJIS) Compliance. • Coordinated demonstrations with software vendors for productivity applications for the electronic plan review process for the Building Department and staffing and scheduling software for the Police Department. • Upgraded payment terminal in the Village reception area to payment card industry (PCI) compliant standards. 57 Legal Support Services DESCRIPTION Village legal services are provided by Weiss Serota Helfman, Cole and Beirman, P.L., a full-service municipal law firm (the “Firm”). The Firm has served as Village Attorney for more than 20 years, providing guidance to the Village Council, its advisory committees and Village staff on a wide array of legal matters in order to ensure that the various laws, rules and requirements of the local, state and federal governments are understood and followed by the Village. While the legal services required by the Village vary slightly from time to time, the Firm employs attorneys with expertise in each area of the law that has been or may be required. FINANCIAL SUMMARY BUDGET HIGHLIGHTS • Funding for legal support services is shared by all funds based upon the nature of the work performed, at $390,000 the General Fund has the largest share of the total annual expense. This includes $300,000 for general legal expenses, $40,000 for Defense of Officials, $25,000 for Legal Fees, and $25,000 for Litigation. The Proposed Budget allocation for the remaining funds are $50,000 for the Utility, $10,000 for Resort Tax, and $10,000 for the Security and Landscape Assessment Fund. • Base legal fees are $480,000, for FY 2017-18, additional fees are incurred for cost recovery, litigation activities, and at times outside legal services which are not incorporated in the FY 2017-18 Proposed Budget. • Base legal services are now provided under a current retainer agreement with a fixed fee component of $30,000/month resulting in a cost savings to the Village for FY 2018-19; not included in the fixed fee are litigation expenses, support for collective bargaining negotiations, and Security and Landscape area related legal support. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget LEGAL SUPPORT SERVICES (All Funds) Salaries & Benefits 0 0 0 0 0 Other Operating 511,000 634,500 575,685 480,000 460,000 Operating Capital TOTAL LEGAL SUPPORT SERVICES (ALL FUNDS )511,000 634,500 575,685 480,000 460,000 58 SIGNIFICANT ACCOMPLISHMENTS Litigation: • Settled Bal Harbour Yacht Club, Inc. litigation, and implement settlement. • Settled Flamingo Way Enterprises, LLC litigation. • Continued monitoring of the litigation involving ownership of park properties in gated community. • Adopted milestone agreement with Bal Harbour Civic Association, Inc. • Defended red light camera program in Florida Supreme Court and other courts. • Continued the defense of four challenges to Shops expansion approved in FY 16-17 (two petition responses, one answer/affirmative defenses, and one motion to dismiss filed, along with responses to numerous motions to strike and other motion practice). • Prevailed on appeal of challenge regarding charter amendment petitions. • Provided regular email updates to Council on significant developments in pending litigation. • Scheduled Council executive sessions as needed to manage litigation. • Supported the Police Department regarding employment actions. • Supported the Village Clerk in records requests and maintenance activities related to litigation matters. • Contested Value Adjustment Board appeals for all units in Oceana and certain units in St. Regis as requested by the Village Manager. Legislation: • Drafted hate crime (adopted) and anti-Semitism ordinances (adopted), and related police standard operating procedure. • Drafted ordinance regulating Private Club marina activities (adopted). • Drafted automatic tipping ordinance (adopted) and advise staff on implementation. Drafted revision to the automatic tipping ordinance requested by staff based on implementation experience (adopted). • Drafted changes to the Comprehensive Plan and Code to implement the grandfathered apartment hotel use in RM-5 (adopted), and settle related unsafe structures proceeding to achieve code compliance and enable redevelopment of Beach Haus without challenge. Advise on the impact of Quarzo bankruptcy proceedings. • Drafted B District access ordinance and related materials and provide advice re minor site plan amendment for Bal Harbour Shops expansion (rejected by Council). Draft and review materials related to site plan adjustment for Bal Harbour Shops expansion (approved by the Manager). • Drafted sign code revision, and revise to address input from business properties as requested by Village staff (adopted). Advise re implementation. • Reviewed, finalized and obtained compliance finding for adoption of EAR-based comprehensive plan amendments prepared by Village Planner, along with pending water supply plan and small-scale plan amendments, without challenge (adopted). • Revised Code re Plan policy allowing bicycles on sidewalks (adopted). 59 • Drafted ordinance for color palette requirement under Chapter 5.5 (pending). • Drafted sea turtle lighting ordinance (pending). • Advise staff re floodplain ordinance (pending). • Drafted dock ordinance (pending). • Drafted ordinance to officially adopt a new Village seal (pending). Administration Support: • Continued drafting and implementing form agreement language for common Village activities, while drafting unique agreements for procurements and activities that are not suitable for form agreements. Improve warranty provisions for Village agreements. (This project commenced in the second half of FY 16-17.) • Updated all tourism-related agreements, and accomplish various other tourism procurement activities. • Advised staff and Council in soliciting and selecting new Village Engineer and other engineering consulting services in accordance with state law, and prepare various related agreements and resolutions. • Procured construction services related to sewer and other public works activities, and prepare various related agreements and resolutions. Advise Village regarding FPL claim for damages to its lines from sewer project, and evaluate potentially responsible parties and remedies. • Supported response to Hurricane Irma in September 2017 and provided contract development assistance for future events. • Advised re implementation of new noise ordinance and Bal Harbour Shops development agreement and approvals (both adopted in FY 16-17). Drafted second interim lease for the police department at Bal Harbour Shops (adopted). • Prepared options to purchase and contracts for potential Public Spaces property in North Miami. Advised Public Spaces re registration and ROW use regulations. • Met with staff and police union regarding implementation of change to FRS for future hires. Advised re interpretation of pension ordinances. Advised police re civil citations. Worked with police to negotiate and draft agreements related to Superion CAD RMS. Review proposed LETF purchases. Initiate police collective bargaining. • Advised Clerk on ADA issues related to Village videocasts, on public records matters, and on Village election in November 2018. • Attended Special Magistrate hearings on request, and advise Village Code Enforcement staff. Advise staff on permit and compliance matters with St Regis and Beach Haus. • Advised new Building Official on interpretation of the Village Code and Building Code, and on the operation of Architectural Review Board. Analyze and advise staff re variance applications, medical marijuana uses, interpretation of code standards and other development issues. Review various applications, including unities of title. • Drafted modified Memorandum of Understanding regarding Skatepark. Reviewed various interlocal agreements for school nurse, mutual aid, and other matters. • Reviewed Finance items related to annual budget, millage rate, special assessment resolutions and implementation. Analyzed issues re use of assessment monies for legal fees. • Reviewed all Council agenda items, and draft various memos, summaries, agreements, and resolutions. 60 Other: • Brought the Village Attorney function under a current retainer agreement with a fixed fee component resulting in a cost savings, as requested by the Village Council. • Staffed the Architectural Review Board and train all boards and board member replacements. Began to staff Resort Tax Committee in January 2018. • Trained police pension board. • Participated in Village Council Retreat. • Attended multiple Village Council park, tourism, and beach re-nourishment workshops. • Responded to Council and Village Staff inquiries regarding the application of ethics rules to Village activities. 61 General Government DESCRIPTION The General Government activity has historically included expenses which were not uniquely attributable to a specific operating department. Beginning with fiscal year 2015, this activity was refined to exclude facility maintenance and transit operating related expenses, which are now reflected within the Parks and Public Spaces Department. The Village Receptionist, was historically located within this activity, but has been included as a part of Administration. In addition, expense related to liability insurance, debt service, payouts for retiring employees, excess benefit plan expenses, cost of living adjustment (COLA) for employees, and the establishment of a capital projects reserve are included within this activity. FINANCIAL SUMMARY BUDGET HIGHLIGHTS • The Proposed Budget includes funding for Excess Benefit Plan expenses for former Village Manager ($71,610). • The Proposed Budget includes funding for potential payouts for the separation of tenured employees during the coming fiscal year ($111,000), and COBRA related insurance expense for retirees, which are offset by participant payments ($67,000). • The Proposed Budget includes a Capital Projects Reserve ($200,000) for use toward future capital projects, a general contingency line item at two percent ($320,000), and budget stabilization reserve to mitigate the impacts resulting from Value Adjustment Board action ($150,000). FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND GENERAL GOVERNMENT Salaries & Benefits 228,200 173,800 121,600 284,500 537,900 Other Operating 459,900 645,700 624,500 1,072,600 1,006,800 Operating Capital 1,050,000 1,109,300 0 200,000 200,000 TOTAL GENERAL GOVERNMENT 1,738,100 1,928,800 746,100 1,557,100 1,744,700 62 Finance & Budget DESCRIPTION As a part of Village Administration, the Finance Department delivers financial services for sound management decision- making and is responsible for centralized accounting, cash management, financial and debt management, tax and utility collections, and preparation of the annual budget. The Finance Department provides fiscal and accounting controls over financial resources by processing vendor payments, and payroll, maintaining the Village’s financial management and utility billing system, and issuing annual of financial reports. The Finance Department serves both internal and external customers, including those entities conducting financial transactions with the Village including Water and Wastewater Utility customers, Local Business Tax renewal and Resort Tax customers, and vendors providing Village services. The Department prepares non-ad valorem special assessment rolls, issues and collects local business tax receipts, and resort taxes, issues timely financial statements and quarterly and annual compliance documents for funding partners, in addition to managing and monitoring all fiduciary assets and related debt. FUNCTIONAL TABLE OF ORGANIZATION FINANCIAL SUMMARY SIGNIFICANT ACCOMPLISHMENTS • Enhanced our use of technology through the development and rollout of online payments for the convenience of our customers, and improved our use of the ADP payroll system functionality and control environment. • Developed a secure portal for the processing of online utility payments. The payment page coded by our Village Controller and launched in June, includes the option to make a one-time payment, setup recurring payments, and the ability to opt out of receiving paper bills for the convenience of Utility customers. • Implemented the merchant service connector through First Data’s Payeezy platform establishing online payment functionality for the Building and Permitting system to FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND FINANCE Salaries & Benefits 436,600 408,700 489,700 534,700 522,200 Other Operating 82,200 99,700 124,400 160,300 146,300 Operating Capital TOTAL FINANCE 518,800 508,400 614,100 695,000 668,500 Finance Director Centralized Accounting & Cash Management Financial Reporting and Account Monitoring Budget Development Tax and Utility Administration & Collections 63 Finance & Budget enhance the control environment for payments, customer convenience, and processing efficiencies. Also launched in June, this online payment functionality has increased collaboration between the Building and Finance Departments on the closure of daily batches, and synchronizing of revenue between the two departmental systems. • Increased visitors to our Village website by twenty-three percent (23%) in one month as a result of the online payment customer service offerings; online payments are now the 11th most visited link on the Village’s website, status we expect to improve after the recent launch of Business Tax Receipt renewal online payments, and the September launch of Resort Tax, and Accounts Receivable payments online. • Developed and the payment page and established the online payment portal for the convenience of Resort Tax customers to file their monthly affidavits and returns electronically, and the functionality for annual Business Tax Receipt renewal payments; providing a significant convenience to our customers with remote corporate offices. • Identified and implemented credit card processing savings as much as 1% to 1.5% on interchange rates for the Village by adding Level three advanced certified payment technology by providing commodity code detail for the convenience of corporate and government cardholder accounts. • Ended FY 2017 with General Fund revenue in excess of expenditure of $1,633,828 or 10.5% of the Amended Budget, with an Unassigned fund balance for the General Fund at year end, totaling $12,890,300, close to one-year of operating expenses. • Continued to add to the Capital Projects Reserve, which now totals $3,592,300 and the IT Renewal and Replacement Reserve, which now totals $400,000 of assigned fund balance for these future Village projects. • Completed the FY 2017 Village annual external audit with the issuance of the Comprehensive Annual Financial Report by February of 2018; the Miami-Dade County Audit and Management Services Department conducted an audit of the Citizen’s Independent Transportation Trust funds disbursed to the Village from FY 2013 through FY 2017, identifying the attainment of the Village’s required annual maintenance of effort (MOE) in advance for the next seven years. In total these engagements spanned ten months of a twelve-month period, necessitating significant direct support from the CFO, Controller, and Finance Staff in addition to the completion of their daily duties. • Successfully submitted damage assessment schedules, estimates for repairs, actual cost, and supporting documentation to the Federal Emergency Management Administration (FEMA) in pursuit of reimbursement for Hurricane Irma related damage expenses for the Village; working closely with our FEMA liaison and the Parks and Public Spaces Department, this process commencing in October has resulted in the approval and advancement of subaward and grant agreements from the State, with more to come in FY 2018-19. 5 • Proactively provide notification to residential Utility customers of potential leaks through the use of improved system data. • Issued 277 Business Tax Receipts, generating $716,400 in general revenue to the Village. 64 Finance & Budget • Awarded the Government Finance Officer Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the third year in a row. • Completed timely filing of the FY 2016-17 Annual Financial Report to the State of Florida Department of Finance. • Completed the timely filing of the FY 2016-17 Annual Audit Report to the State of Florida Auditor General’s Office. • Issued monthly check by date reports which allows the public to view all vendor payments, and wire transfers issued by the Village to further enhance transparency. • Prepared the annual operating and capital budget in compliance with State Laws. • Prepared the non-ad valorem assessment rolls in compliance with State Laws to facilitate the collection of Solid Waste and Security and Landscape Assessments by the Miami-Dade County Tax Collector. BUDGET HIGHLIGHTS • The Proposed Budget includes the proportionate split of employee costs for direct work performed on the Water and Wastewater Utility system within the Utility Fund. • The Proposed Budget includes one new Finance Clerk position at a base salary of $40,000/year; the expense for this position is shared between the Utility and General Funds. 65 66 Police Department DESCRIPTION The Bal Harbour Police Department (BHPD) came into existence in 1946 when the Village was incorporated. The BHPD provides public safety services to Village residents, visitors and businesses based on a community policing philosophy. The BHPD is comprised of two main functions; Operations and Administration. Operations Division The Operations Division is the most visible representative of Village services, with 24 full-time sworn personnel and 10 civilian staff members, including support staff, dispatchers and Code Officers. This Division is responsible for high profile, proactive public safety and crime prevention patrol functions including: • Directed Patrol (including bike patrol, golf cart, ATV, and beach patrol) • Marine Patrol • Traffic Enforcement • Code Enforcement In addition, this Division is responsible for reactive public safety services, such as responding to calls for service, as well as the investigation of any crimes, which occur within the Bal Harbour Village jurisdiction. A summary of primary activities includes: • Criminal incident investigative follow up • Prosecution of cases via the Criminal Justice System • Tracking crime trends and Uniform Crime Reporting (UCR) to the State of Florida • Arrest and Search Warrant Affidavit Coordination and Verification Administration The Police Administration, which includes the Office of the Chief of Police, is responsible for the fulfillment of the mission of the BHPD by providing leadership, and the establishment of the managerial functions of planning, organizing, motivating, controlling, disciplining and coordinating the subordinate members of the police department, inclusive of: • Budget monitoring and fiscal management • Personnel management consistent with Fair Labor Standards/Collective Bargaining Agreement/State Law Enforcement Standards • Media Relations • Mutual aid coordination with local, state and federal law enforcement agencies • Establishment of policies, protocols and regulations to complete the Police Department’s service mission within the guidelines of State procedural law and substantive law. Support and departmental logistics also form part of the Police Administration functions, including: • Emergency Communications (9-1-1 radio service) • Sworn mandatory training, such as firearms and tactics, as well as ensuring that sworn officers receive necessary legal updates (i.e., new State statues, procedural law updates and changes, etc.) 67 Police Department Support functions also include: • Fleet Management • Equipment inventory and maintenance • Property and Evidence Management • Off Duty and Special Event Police Service Coordination • Internal Affairs and Personnel Compliance • Major Event Coordination and Operational Response • Beach Access Permitting. FUNCTIONAL TABLE OF ORGANIZATION FINANCIAL SUMMARY BUDGET HIGHLIGHTS • The Proposed Budget incorporates required collective bargain related expenses, including Supervisor Pay, Night Differential, and Education Pay ($85,600). • The Proposed Budget incorporates increased community outreach and community relations activities with funding for five (5) special events ($14,500). • The Proposed Budget includes additional funding for police off-duty expenses at the same rate as the current fiscal year ($350,000), which are directly offset by corresponding revenue for services; the hours could increase during the year dependent on the progression of the Bal Harbour Shops project. • The Proposed Budget includes an increase in retirement expenses as a result of the actuarial valuation of our pension plans ($268,100). • The Proposed Budget includes an increase to overtime expenses sufficient to provide coverage for special events and strategic initiates in the new year ($42,600). Office of the Chief Administrative Services Public Safety Communications Code Compliance Operations Patrol Marine Patrol Criminal Investigations FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND LAW ENFORCEMENT Salaries & Benefits 5,000,100 5,718,100 5,254,800 6,010,700 6,407,100 Other Operating 1,042,900 932,600 695,600 878,100 792,700 Operating Capital 147,800 55,000 15,000 TOTAL LAW ENFORCEMENT 6,043,000 6,650,700 6,098,200 6,943,800 7,214,800 68 Police Department • The Proposed Budget includes a reduction in lease expenses due to the early pay-off of vehicle leases in the current fiscal year ($226,650); a fleet renewal and replaced line has been added into General Government to provide for purchases in future years ($150,000). • The Proposed Budget includes life scans for the health screening of employees for $380 each. SIGNIFICANT ACCOMPLISHMENTS • Experienced a reduction in property crimes of 12.9% from 2016 and by 24% from 2014, which can be attributed to the Bal Harbour Police Department’s proactive policing tactics. These tactics include the deployment of personnel and resources that provide high visibility patrols in target areas and enhanced traffic enforcement aimed at preventing and deterring criminal activity. • Reduced 2017 Total Part I UCR (violent) Crimes by 12.6% from 2016, and 23% since 2014; and cleared 31.3% of Part I crimes by either arrest or exceptional clearances. The national average clearance rate on Part I property crimes range between 13.1% - 20.4 %. In 2017, the police department’s clearance rate was well above the national average. • Trained an additional six (6) officers in Marine Patrol Operations, receiving instruction on navigation, vessel operations, boarding, and maritime law. The certification of these officers in Marine Patrol Operations will ensure that there are multiple officers on each shift with the required certifications to operate the Department’s vessel. In addition, it will give the Department greater flexibility to augment marine patrols during normal operations as well as peak periods. • Officers attended multiple active shooter training courses hosted by the Federal Law Enforcement Training Center (FLETC) and former military personnel. Topics of emphasis were single-man entry tactics, verbal commands, link-up tactics with other agencies, and practical role play exercises. • Participated in field force training as part of the Regional Field Force Unit, which includes eight (8) additional agencies in the surrounding area. • Procured and distributed equipment to outfit up to ten (10) field force officers, should the need arise to deploy them. • Procured simulated training ammunition and weapons, as well as associated protective gear for every officer. The training equipment will enhance officers’ response to high liability incidents, high risk traffic stops, building searches, active shooter scenarios, and training tactics. • Completed the procurement process for the Computer Aided Dispatch and Records Management System (CAD RMS). The selected vendor, Superion, was approved by the Village Council, and is expected to be fully implemented in April 2019. • Upgraded the IT infrastructure required for the implementation of CAD RMS, including servers and expanded data backup capabilities. • Enhanced patrol presence during special events and high holy days to ensure the safety of all residents and guests through heightened security measures and visibility patrols. • Completed a hurricane emergency table top exercise to ensure proper protocol of the Bal Harbour Village Critical Incident Operations Plan. Department Directors were put 69 Police Department through several realistic decision-making scenarios to prepare for possible critical incident situations. • Reorganized existing staff to create an additional Police Lieutenant, which is part of to the Police Department’s Command Staff. The Lieutenant will manage the Department’s accreditation process and provide oversight of the Criminal Investigations Division. • Commenced the Bal Harbour Police Department state accreditation process, including an initial review of all department policies and procedures. • Expanded the Police Reserve Officer Program to include four (4) additional Reserve Officers (RO). The ROs’ are experienced retired officers that will provide volunteer police assistance and augment police services as needed for traffic control, special events details and off duty details. • Increased community outreach and relations activities and events. The police department’s efforts enhance community partnerships with department personnel, facilitated an opportunity to share crime prevention strategies, and elicit feedback from residents and business owners regarding community concerns. Some notable events include: Cops & Kids, Rotary Club 5K, Holiday Toy Drive, Book Bag Give Away and Feeding Homeless Veterans. • Implemented the Civil Citation Program through an Interlocal Agreement with Miami-Dade County, which provides the Bal Harbour Police Department (BHPD) with an additional enforcement mechanism for a number of misdemeanor crimes, the program will reduce the time and cost associated with processing and arresting individuals for minor offenses. • Implemented the Village’s Anti-Semitism and Hate Crime Ordinances and developed an Anti-Semitism and Hate Crime departmental policy that outlines the officer’s responsibility and investigative protocols. • Hosted a community Autism Awareness Training to create an open dialogue about Autism and how to interact and deal with people with autism and families with a child who has autism. • Awarded two (2) scholarships to the Police Academy on behalf of the Chief Mark N. Overton Legacy Memorial Fund in collaboration with the Rotary Club of Bal Harbour to encourage and assist individuals interested in the law enforcement profession. 70 Building Department DESCRIPTION The Building Department is responsible for Enforcing the Florida Building Code, Village Ordinances, and Miami-Dade County Ordinances. In House Building Department Professionals (Village) employees work together to provide permitting, plan review and inspection services to Village residents as governed by the Florida Building Code. The Building Department is self-funded through permit fees, and is specifically, per the Florida Building Code required to: • Enforce the Florida Building Code; • Coordinate with outside departments including Fire, DERM, Public Works, and Utilities; • Perform Building, Mechanical, Electrical, Plumbing and Structural plan review; • Performs inspections for all Building Code disciplines; and • Issue Permits, Certificates of Completion and Occupancy. The unique needs of the Village’s Building Department necessitates additional responsibilities. Some of the additional work unique to this Village includes: • Review of all plans prior to submittal to the Architectural Review Board (ARB) and making the appropriate recommendations; • Verification of compliance with the Zoning through plan review and inspections; • Enforcing ARB Certificates of Appropriateness through construction completion; • Administering the Community Rating System to ensure residents receive maximum discount for flood insurance; • Representing the Village in Local Mitigation Strategy Groups; • Participating in ISO’s Building Code Effectiveness Grading Schedule which is used to develop insurance rates for individual properties; and • Implementing a standardized permitting system through development of a standard operating procedures manual and standardization of forms and letters. FUNCTION TABLE OF ORGANIZATION Building Official Permitting Inspections FEMA Flood Regulation Building and Records Routing PZ & Architectural Review Board 71 Building Department FINANCIAL SUMMARY BUDGET HIGHLIGHTS • The Proposed Budget includes a funding reduction to Professional Services due to the transition away from a purely contractual service delivery model ($199,100). • As an optimal model for service delivery the Proposed Budget incorporates funding for an in-house Building Official, three permit Clerks, and a Chief for Building and Roofing; part-time positions include an Electrical Inspector, Plumbing Inspector, Structural Engineer, and contracted expenditures for other professional services to supplement staff. • For the second fiscal year, the Proposed Budget provides for a fully self-sustaining Building and Permitting Department; no General Fund subsidy to departmental operations are necessary, as the permit fees collected cover the cost of services delivered. SIGNIFICANT ACCOMPLISHMENTS • A Customer Service Survey has been made available to BD Customers in order to obtain feedback. Feedback from Building Department customers. including Residents, Permit Expeditors, General Contractors (GC) and Architects and Engineers was evaluated as "Excellent". • Completed the transition from CAP Government to a new service deliver model for permitting services, continually train staff in building department processes and procedures and the importance of delivering excellent customer service. • All active records and files have been organized by address and Permit Clerks have started scanning files and requesting an electronic version of Village Copy permit plans and as-builts. • New Permit Application and Permit Submittal Checklist detailing concise submittal requirements required for permit issuance and constant training and efficient assignment of permit clerk tasks to expedite permit processing. • In response to resident GC concerns, implemented Pre- Construction Meetings with GC and GC Affidavit Acknowledgment of Village Construction Ordinances. • Chief Building Inspector monitors in house plan review and inspection team to ensure acceptable plan review turnaround times and meets inspection deadlines as requested by permit applicants. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND BUILDING & PERMITTING Salaries & Benefits 93,500 227,600 436,200 659,900 749,600 Other Operating 920,800 562,100 312,900 364,300 184,600 Operating Capital 0 TOTAL BUILDING 1,014,300 789,700 749,100 1,024,200 934,200 72 Building Department • Implemented Online Permit Payments and established a deadline of August 31, 2018 to accept only credit cards. No cash and no checks unless a special project is authorized by the Building Official. This achieves separation of Permit Clerks and Cashier which is a standard business practice ensuring financial accountability. • Submitted annual CRS Recertification documents required by FEMA and maintained a CRS Recertification with a Score of 8, ensuring residents lower flood insurance costs. • Participating in the South Florida Regional Planning Council’s Project Flood Resilience Resources, which will compile maps of the Village’s flood risk from storm surge and sea level rise as well as provide comprehensive plan amendments to ensure our Villages Coastal Management element fulfils specific requirements of the Florida Statute 163.3178(2)(f). • Enforcing Permit Fee ordinance regarding building valuations that has resulted in achieving 2018 Building Department Revenue goals ahead of schedule by 2 months and processed 1,079 permits in 10 months. • Enforce the new building Permitting Fee schedule for the Village. Review project evaluations submitted by permit applicants at the time of permit applications and at the time of CO/CC applications for general conformance with current industry costs, which have resulted in revenue increases. • Continue to update building department operations manual and procedures as required. Forms are published on the Village portal. • New permitting system was implemented on February 1, 2017. BD Continues to close out electronic files in the previous Energov system as projects are transitioned to new software. • Continue to monitor and review all Village properties for compliance with 40/10/10 year re-certifications. • Standardized a Paint Palette in order to deliver improved customer service and lower cost of residential painting expenses for residents so that residents do not have to submit their paint projects to ARB ($250) and submit paint permit application ($150). • Started Daily reconciliation of permit fees collected per day and submits to Finance on a daily basis. Overall improved coordination with Finance. • Improved coordination with Code Compliance per Audit Report. In house Inspectors coordinate with Code and are available for consultation on violations and assist in issuance as appropriate. 73 74 Parks and Public Spaces Department DESCRIPTION The Parks and Public Spaces Department, is comprised of four (4) areas of focus; Facilities, Public Works, Recreation and Greenspace Management. Each unit provides services in support of the Department’s areas of responsibility. The Department provides public right-of-way and infrastructure maintenance services; utility and solid waste management, landscape design and maintenance, as well as recreation program management. These activities are conducted by a small team of in-house staff, along with various contracted service providers. Additionally, the Department provides management and support for all Village conducted capital improvement projects, supports the Building Department’s permitting activities, operates the community shuttle service and supports the enforcement activities of the Bal Harbour Police Department’s Code Compliance Division. Facilities The Facilities Unit is responsible for the maintenance, repair, and operation of Village buildings and equipment at the following sites: • Village Hall • The Police Department Administration and Annex • The Recreation Center • Bal Harbour Park • The Public Works Operations Warehouse The Facilities Unit also provides services in the following areas: • Village wide cleanliness • Street and landscape up lighting maintenance • Street furniture and signage maintenance Public Works The Public Works Unit provides services related to the repair, maintenance, and operation of Village infrastructure, and other services including: • Water, sewer and storm water utility system maintenance and operation • Solid waste collection, disposal and recycling services • Capital Project management • Plan reviews* • Code enforcement support • Pedestrian walkways and surfaces maintenance • Curb, gutter and roadway maintenance • Community shuttle services • Park maintenance *The Public Works Unit supports the Building Department with the review of all utility and landscape related plans submitted for permitting to the Building Department and post construction utility and landscape installation inspections prior to permit closures. Recreation The Recreation Unit provides recreational and leisure programs and services for children, adults and seniors in our community utilizing Bal Harbour Park, the Recreation Center and Bal Harbour Beach. The Recreation unit also provides resident park access management services and maintains the cleanliness of Bal Harbour Park. Additionally, recreation staff develop, produce and support several community focused special events during the 75 Parks and Public Spaces Department year to provide additional recreational opportunities for our residents such as: • Movie Night on the Beach Events • Holiday Tree Lighting Event support • New Year’s Eve Event support • Fourth of July Event support • Seasonal Monthly Excursion Trips to local area attractions Greenspace Management Program The Greenspace Management Program is responsible for the grounds maintenance and appearance of the Village, including: • All building grounds • Bal Harbour Park • Village-controlled medians, swales, and landscape areas • Bal Harbour Beach and adjacent areas • The Gated Residential Section common areas • Management of the Village urban forestry program FISCAL ENVIRONMENT Services provided by the Parks and Public Spaces Department are supported through several funding sources, including the General Fund, for Public Works and Parks and Recreation activities, the Water & Sewer Fund for Utility activities, the Resort Tax Fund for greenspace and beautification activities, and dollars from the Gated Residential Section Special Assessment. A breakdown of services funded through each fund is provided below: General Fund Facilities Maintenance This provides funds for the operation of all Village-owned buildings, such as Village Hall and the Public Works Facility. Expenditures include on-going contractual services, such as air conditioning, pest control, elevator and copier services, along with the janitorial contract. In addition, other operational supplies used to maintain Village Hall, Police Department Administration and Public Works buildings are supported through this fund. Additionally, the Pooper Scooper (Dog Waste) Bag Program and landscape maintenance contract for Village Hall and the adjacent parking lot is budgeted within this fund. Public Works This unit performs activities such as the maintenance of the storm drains, solid waste and recycling collection contract, equipment and vehicle rentals/leases and repairs, maintenance of the street sweeper and grapple truck, maintenance of street lights, storm drainage pump station in the residential area, transit services, management of residential solid waste service, and the maintenance of Florida Department of Transportation (FDOT) storm pumps for 96th Street. Operating supplies, signs and posts are also budgeted as part of this fund. Recreation This unit performs the operations and maintenance of Bal Harbour Park and Recreation Center. All staffing and operational costs, including the two (2) full-time, five (5) part-time employees, the grounds, play equipment and water feature included within the unit. 76 Parks and Public Spaces Department The Water & Wastewater Utility Fund This fund supports the operation and maintenance of the infrastructure, which distributes potable water to residents and businesses; collects, pumps, and transmits wastewater to the County treatment facilities. The activities funded in this area include: • Professional engineering services • Utility locates • Water testing • Maintenance of sewer station pumps • Wet wells and generators • Meter installation and service • Fire hydrant and water/sewer mains service • Capital projects relating to the Utility • Regulatory compliance • Staff training for utility operations Resort Tax Fund/ Beautification and Maintenance This fund, through Resort Tax Collections, supports the operations for greenspace, beautification, and other Resort Tax eligible activities. All operations related to the purchasing and maintenance of landscaping and irrigation systems on Collins Avenue, 96th Street, and on the Beach. The costs for the maintenance of the bus stops, landscaping lights, signs, buoys, emergency life rings, warning flags, holiday decorations, bollard lights along the jogging path, benches/trash receptacles are also budgeted within this fund. Landscape & Security Assessment Fund The assessment provides the funding necessary for landscape maintenance services through a contracted provider for all the green space within the gated community, which is not privately maintained. FUNCTIONAL TABLE OF ORGANIZATION 77 Parks and Public Spaces Department FINANCIAL SUMMARY BUDGET HIGHLIGHTS • The Proposed Budget reflects a significant reduction of Capital Project allocations within the Public Works and Parks activities over the current fiscal year ($1,167,950). • The Proposed Budget includes the addition of one new Capital Projects Coordinator position with 50/50 shared funding between the General and Utility Funds ($120,000 base), One new Utility Technician position is included with funding through the Village Utility ($41,600 base). • The Proposed Budget incorporates funding for General Fund stormwater improvements to advance the component of the Utility Master Plan Project ($150,000). • The Proposed Budget includes an enhancement to provide professional, dedicated support toward the Village’s beach re-nourishment efforts with 50/50 shared funding between the General and Resort Tax Fund ($90,000). • The Proposed Budget includes additional funding toward improvements of the Bal Harbour Jetty within the Parks Activity ($595,800). • The Proposed Budget includes funding for Haulover Bridge restoration improvements ($95,000). • The Proposed Budget for the Utility incorporates a pass- through water rate reduction from Miami-Dade County, resulting in a change to Village customers from $4.88/1,000 gallons to $4.81/1,000 gallons consumed. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget GENERAL FUND PARKS AND PUBLIC SPACES DEPARTMENT PUBLIC WORKS Salaries & Benefits 350,900 216,000 202,300 356,700 491,000 Other Operating 1,242,100 1,519,500 1,599,900 1,899,800 1,346,700 Operating Capital TOTAL PUBLIC WORKS 1,593,000 1,735,500 1,802,200 2,256,500 1,837,700 PARKS & RECREATION Salaries & Benefits 247,900 243,500 207,200 257,900 216,600 Other Operating 99,100 85,500 198,200 178,300 158,000 Operating Capital 0 4,300 934,400 595,800 TOTAL PARKS & RECREATION 347,000 329,000 409,700 1,370,600 970,400 RESORT TAX FUND BEAUTIFICATION/ GREENSPACE /OTHER RESORT TAX ELIGIBLE Salaries & Benefits 323,200 357,800 290,700 247,100 249,000 Other Operating 1,478,600 1,431,200 1,179,300 1,208,000 1,323,700 Operating Capital 189,900 0 0 0 0 TOTAL BEAUTIFICATION/GREENSPACE 1,991,700 1,789,000 1,470,000 1,455,100 1,572,700 WATER & WASTEWATER UTILITY FUND WATER & WASTEWATER UTILITY Salaries & Benefits 205,000 397,700 503,600 591,100 755,900 Other Operating 3,624,600 3,148,200 3,096,600 3,230,200 3,222,300 UTILITY OPERATIONS TOTAL 3,829,600 3,545,900 3,600,200 3,821,300 3,978,200 Capital Projects 276,800 1,689,600 3,062,200 2,245,000 2,620,000 UTILITY FUND TOTAL 4,106,400 5,235,500 6,662,400 6,066,300 6,598,200 LANDSCAPE & SECURITY ASSESSMENT FUND LANDSCAPE & SECURITY ASSESSMENT AREA EXPENSE Salaries & Benefits 15,300 20,000 33,500 40,400 39,000 Other Operating 519,900 435,100 495,900 529,600 602,300 L & S ASSESSMENT TOTAL 535,200 455,100 529,400 570,000 641,300 TOTAL PARKS AND PUBLIC SPACES DEPT 8,573,300 9,544,100 10,873,700 11,718,500 11,620,300 78 Parks and Public Spaces Department SIGNIFICANT ACCOMPLISHMENTS • Successfully completed Hurricane Irma restoration and repair efforts which began September 11, 2017. • Developed and completed the solicitation with multi-year continuing services agreements for the new Village Engineer and a secondary engineering firm for design services as needed. • Completed the procurement activities for the replacement of four hundred seventy-eight (478) replacement Village water service meters, in order to obtain more accurate readings of consumption, and an estimated annual increase in Utility Fund revenues and reduce water loss to less than five (5%) percent annually. • Completed the procurement of a back-up pump for the sanitary sewer lift stations to increase critical equipment redundancy. • Completed the solicitation activities and initiated the construction activities for the Sanitary Sewer Station No. One (PS-1) Drainage Improvements Project. • Developed and completed a new Village facility janitorial services solicitation with a multi-year agreement execution and a $ 5,700 savings from the old contract. • Executed a new agreement for the provision of water line repairs, sanitary sewer and storm water rehabilitative pipe and manhole cured in-place lining and rehabilitation work. • Completed the procurement of a portable generator and wiring services to provide for emergency back-up power for Village Hall and the Police Department Administration building. • Completed the restoration of the Bal Harbour Beach Jogging Path. • Developed and completed the solicitation with the execution of three (3) multi-year continuing services agreements, for Disaster Debris Management Services with three service providers. • Developed and completed the solicitation with the execution of a multi-year continuing services agreement, for disaster debris monitoring services. • Completed the procurement activities to obtain a new debris grapple truck, mini excavator and a replacement tracked skid steer loader for operations. • Replaced twenty thousand five hundred dollars ($20,500) worth of blue twilight sidewalk on the west side of the 10200 block of Collins Avenue. • Performed eighty thousand four hundred ($18,400) in jetty surface repairs to minimize trip hazards. Water: • Replaced with in-house staff one-hundred and nine water service meters throughout the Village, which had reached the end of their useful lifecycle. • Continued to conduct water main leak detection testing throughout the Village in order to meet Miami Dade County Environmental Resources Management (DERM) requirement of less than ten (10%) annual water loss. • Continued to meet all water quality requirements by the Department of Environmental Protection (DEP) and the Department of Health (DOH). • Collected all required water samples for lead and copper testing with the report due mid-year 2019. • Completed the preliminary investigation on the Phase 2A Sanitary Sewer Rehabilitation Project for the proposed water main sections on Collins Avenue. On-going 79 Parks and Public Spaces Department investigation continues in order limit impact of construction activities inside the easement and/or, adjacent condominium properties. • Reduced the time required to obtain initial monthly water service meter reads to within three (3) hours from five to seven (5-7) days for billing. • Responded to all customer water meter service requests within twenty fours (24). • Performed fire hydrant inspections and flushing for all of the Village fire hydrants. • Inspected and exercised all water service valves within the Village. • Installed three (3) water testing stations within the Village. Sewer: • Completed the rehabilitative sanitary sewer pipe lining of seven thousand three hundred (7,300) linear feet of sanitary sewer pipe along Collins Avenue and completed rehabilitation of approximately thirty-seven (37) sanitary sewer manhole structures. This eliminates the new sanitary sewer pipe construction activities portion of the Phase Two Utility Restoration Project inside the easement and/or, along Collins Avenue. • Closed the Sewer Pump Station No. One (PS-1) Rehabilitation Project and obtained certification of construction completed and accepted by Miami Dade County Environmental Resources Management (DERM) and the Miami Dade County Department of Health (DOH). • Continued to meet EPA / DERM requirements for both Sanitary Sewer Pump Stations to be in operational full compliance (no moratoriums) and, obtain sewer mechanical pumps run times below the allowable daily running times. • Completed one hundred percent (100%) of the cleaning and videoing inspection of the sanitary sewer infrastructure system in the entire Village. • Completed the design of a sanitary sewer line replacement project on Park Drive, north of Bal Harbour Way. Construction scheduled for 3rd quarter of 2019. • Performed thirty-five thousand dollars ($35,000) worth of sanitary sewer main line replacement work to remedy backflow conditions on Harbour Way and Bal Bay Drive. • Installed fifty-two thousand dollars ($52,000) worth of picket security fencing around Sanitary Sewer Stations No. 1 & No. 2 (PS-1 & PS-2). Storm water: • Continued cleaning annually all drainage catch basins. • Continue to meet annually the (NPDES) permit requirements. • Completed thirty-five thousand eight hundred dollars ($35,800) worth of Village Storm Water System repairs. • Competed the Video inspection for seven hundred (700) feet of Storm Water pipes. • Performed seventy-four thousand dollars ($74,000) worth of curb and street repairs. Landscaping: • Installed four (4) Screw Pines behind the Bal Harbour 101 Condominiums. • Installed fifteen (15) Sea grape Trees behind the Seaview Hotel. • Installed twenty (20) Fishtail Palms on Park Drive. 80 Parks and Public Spaces Department • Replaced the Jasmine in the center median of the 9700 block and 9800 block of Collins Avenue with Zoysia turf. Sanitation: • Executed an amended sanitation services contract with Waste Connections to include the following: o 100% increase to weekly recycling service o No cost for service increase until 2019, annual thereafter increase tied to CPI, capped at 3% o No charge for bus stop collection service o New garbage truck to service the Village o Increased penalties for non-compliance Facility Maintenance: • Installed fifty-nine thousand dollars ($59,000) worth of impact windows in Village Hall and the Police Annex Building. • Upgraded the lighting within Bal Harbour Park to energy efficient Light Emitting Diode (LED) lighting. • Upgraded the Jetty Light to a solar powered Light Emitting Diode (LED) light. • Upgraded the lighting and wiring under the Bal Harbour Bridge Parking Lot to energy efficient Light Emitting Diode (LED) lighting. • Upgraded Air Conditioning unit in Police Department Station electronics technical control room. Recreation: • Hosted in excess of eight thousand seven hundred (8,700) residents and their guests at Bal Harbour Park. • Produced two (2) seasonal Special Events (Movies on the Beach) with average attendance of over one hundred fifty (150) participants. • Assisted the Tourism Department, with registration and staff support for the 2018 Independence Day Celebration on the Beach. • Conducted seasonal basketball skill clinics for children thirteen (13) years of age and younger totaling two hundred twenty-two (226) participants. • Produced four (4) successful excursion for residents, with a total of one hundred twelve (112) participants. • Facilitated sixteen (16) Bal Harbour Park space rentals for resident parties. • Managed the Bal Harbour Express shuttle service with an average monthly ridership of over one thousand (1000) users. Training: • Obtained Florida Water and Pollution Control Operators Association (FWPCOA) Water Distribution certification for one staff and one pending • Trained and assisted two employees to obtain a State of Florida Commercial Drivers Licenses (CDL). • Provided advanced Excel 2013 Training for two employees with both obtaining certificates of completion. • Implemented Phase II Analytical data recording of Pronto Forms system. • Obtained the Water Distribution Operator 3 License from Florida Department of Environmental Protection for one employee. • Obtained certification in Wastewater “C” Collection System Technician certification for one employee. 81 82 Water & Wastewater Utility Fund DESCRIPTION Water and Wastewater services within the Village are provided as an enterprise operation, through the Utility within the Parks and Public Spaces Department. Services are funded as payments for measurable water and wastewater services are consumed. Pursuant to Chapter 180, Florida Statutes, municipalities are authorized to establish just and equitable rates to be paid for the use of the utility. Rates established as charges for services should sustain its operations and satisfy any related debt. This fund supports the operation and maintenance of the infrastructure, which distributes potable water to residents and businesses; collects, pumps, and transmits wastewater to the County treatment facilities. The activities funded in this area include: • Professional engineering services • Utility locates • Water testing • Maintenance of sewer station pumps • Wet wells and generators • Meter installation and service; • Fire hydrant and water/sewer mains service • Capital projects relating to the Utility The FY 2018-19 Proposed Operating and Capital Budget for the Water and Wastewater Utility Fund is $6,598,200 which reflects $531,900 in less proposed expenditure than the FY 2017-18 Budget, as a direct result of the timing and funding allocation for the construction of the capital improvements included in the Utility Master Plan for the Village. Progress on this project will continue in FY 2019 with a proposed allocation of $2,620,000 toward the capital improvements. This allocation is subject to reimbursement from General Obligation Bond Funds from Miami-Dade County, for the sewer portion of the project., in total FY 2018-19 anticipated Reimbursements include $2,716,500. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget WATER & WASTEWATER UTILITY FUND REVENUE Operating Revenue 3,805,900 4,457,900 4,231,300 4,816,600 5,053,400 Debt Proceeds (Capital)0 0 0 0 0 Inergovernmental Revenue/ CO 540,300 534,700 3,783,500 2,245,000 2,716,500 Carryforward/ Contributions 475,000 0 2,277,000 2,620,000 Capital & Operating Revenue 4,346,200 5,467,600 8,014,800 9,338,600 10,389,900 WATER & WASTEWATER UTILITY Salaries & Benefits 205,000 397,700 503,600 591,100 755,900 Other Operating 3,624,600 3,148,200 3,096,600 3,230,200 3,222,300 UTILITY OPERATIONS TOTAL 3,829,600 3,545,900 3,600,200 3,821,300 3,978,200 Capital Projects 276,800 1,689,600 3,062,200 2,245,000 2,620,000 UTILITY FUND TOTAL 4,106,400 5,235,500 6,662,400 6,066,300 6,598,200 83 Water & Wastewater Utility Fund BUDGET HIGHLIGHTS • The Water and Wastewater Utility Fund Proposed Budget includes the continuation of the Utility Master Plan project with a proposed expenditure of $2,620,000 from prior year project appropriations. • The Proposed Budget includes $10,389,900 in revenue, and $6,589,200 of expenditures, generating a carryforward balance toward the capital project of $3,791,700. • The wholesale services are purchased from the Miami-Dade County Water and Sewer Department for water and the City of Miami Beach for sewer services, as such the Village’s Utility is subject the rate adjustments of our service providers. • Miami-Dade County Water and Sewer Department proposed a 3.89% reduction to water rates, the Proposed Budget in turn reduces the water rate charged to Village customers from $4.88 to $4.81/1,000 gallons consumed. • The Proposed Budget includes the appropriate allocation of salary and fringe expenses associate with work performed for the Utility by operating departments, services are delivered in collaboration between the Village Parks and Public Spaces and Finance Departments. 84 Resort Tax Fund DESCRIPTION Bal Harbour Village levies a Resort Tax of four percent of the rent received on the occupancy of a room in any hotel, motel, or apartment house, and two percent of such retail sales of all items of food or beverages, alcoholic or otherwise, sold at retail for consumption on the premises, at any place of business within the Village. This levy is consistent with Part I, Chapter 212, of Florida Statutes. Bal Harbour Village is one of only three municipalities in Miami- Dade County to levy such a tax (in addition to the City of Miami Beach and the Town of Surfside). This Resort Tax is used to fund the beautification and maintenance of the Village on the beach and the Collins corridor areas as well as reinvesting in the promotion of tourism and enhancing tourist eligible activities throughout the Village. According to the Florida Statutes, these resort tax funds must be used for tourism related activities such as the enhancement of tourism, publicity and advertising. For the FY 2018-19 Proposed Budget, the Resort Tax Funding allocated for beautification, greenspace, and other resort tax eligible activities such as special events and community activities is equivalent to 0.70 mills, if the services and activities were funded within the General Fund through ad valorem revenue. FINANCIAL SUMMARY BUDGET HIGHTLIGHTS • The FY 2016-17 Proposed Budget for the Resort Tax Fund includes $1,977,350 or fifty-six percent for Tourism related operating activities. • Operating capital for Tourism includes one-time proposed expenditures for still and video design imagery refreshing the Village’s creative collateral and promotional materials for advertising, marketing, and public relations placements FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget RESORT TAX FUND REVENUE Operating Revenue 3,530,900 3,449,000 3,353,700 3,442,900 3,550,000 Carryforward/ Fund Balance 212,600 223,100 0 0 150,000 Capital & Operating Revenue 3,743,500 3,672,100 3,353,700 3,442,900 3,700,000 TOURISM Salaries & Benefits 191,500 159,100 192,000 258,900 283,600 Other Operating 1,370,400 1,724,000 1,671,800 1,728,900 1,693,700 Operating Capital 189,900 0 400 0 150,000 TOURISM TOTAL 1,751,800 1,883,100 1,864,200 1,987,800 2,127,300 BEAUTIFICATION/ GREENSPACE /OTHER RESORT TAX ELIGIBLE Salaries & Benefits 323,200 357,800 290,700 247,100 249,000 Other Operating 1,478,600 1,431,200 1,179,300 1,208,000 1,323,700 Operating Capital 189,900 0 0 0 0 TOTAL BEAUTIFICATION/GREENSPACE 1,991,700 1,789,000 1,470,000 1,455,100 1,572,700 RESORT TAX FUND TOTAL 3,743,500 3,672,100 3,334,200 3,442,900 3,700,000 85 Resort Tax Fund ($50,000) and an additional luxury focused engagement in partnership with the Greater Miami Convention and Visitor’s Bureau ($100,000). • Special Events and Community Activities are also a part of Tourism, they comprise over nine percent of proposed Resort Tax expenditures at $352,200. • The Proposed Budget includes funding for return of the New Year’s Eve Fireworks display off of Bal Harbour Beach. • Beautification and Greenspace activities comprise and forty-four percent of the proposed funding at $1,572,700. Further detail regarding Beautification and Greenspace Maintenance activities are included in the Parks and Public Spaces Departmental Narrative, as these activities are managed within that department. TOURISM DEPARTMENT The focus of the Tourism Department is to position Bal Harbour Village as a premier luxury and lifestyle destination worldwide. This is achieved by continuing to re-invest and support the Village by attracting tourism, generating business, creating awareness as well as building equity for the Village as a destination. The goal being that this investment will translate into continued and incremental Resort Tax funds to be used for increasing the quality of life, beautification maintenance and enhancements of Village assets, and the ongoing creation of advertising, marketing, public relations efforts, programs and events to promote tourism to Bal Harbour Village. FINANCIAL SUMMARY Advertising The Village’s advertising efforts are critical in bringing positive attention to Bal Harbour and in promoting and attracting tourism to our destination. Our current advertising campaign and strategy has been in place since mid-2015 when a creative agency was used to design a new advertising campaign and brand assets for the Village. As a result, as part of these rebranding efforts, all new and expanded creative and collateral materials were developed. Guided by the Bal Harbour Village Resort Tax, the Village’s advertising efforts adapt to the ever-changing world of using the best available methods to promote the Village. The Village and the Resort Tax Committee work with Criterion Global, a leading international media buying consultancy, to develop a strategic and coordinated media plan. The advertising plan is comprised of a local, national, and international media buys. The intention is to work with key publications that are closely aligned with Bal Harbour’s brand pillars and represent our targeted demographic and to further target our desired population of visitors and tourists. FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Budget FY 2019 Proposed Budget RESORT TAX FUND TOURISM Salaries & Benefits 191,500 159,100 192,000 258,900 283,600 Other Operating 1,370,400 1,724,000 1,671,800 1,728,900 1,693,700 Operating Capital 189,900 0 400 0 150,000 TOURISM TOTAL 1,751,800 1,883,100 1,864,200 1,987,800 2,127,300 86 Resort Tax Fund Representation in Key Strategic Domestic and International Markets The Village has several contracted professionals strategically located globally for Sales, Marketing, and Public Relations (PR) services to further position Bal Harbour Village as a tourist destination. Each office is charged with continuing to develop specific and strategic sales, marketing and PR efforts in each of these markets, which have been identified as important to Bal Harbour including: United States, Argentina, Brazil, Canada, Chile, Mexico, and Russia. These markets are intended to offer support, resulting in incremental resort tax revenue from each of those areas. The markets have been chosen based on a series of indicators, including: in-country economic indicators, existing Bal Harbour business volumes, historical business volumes, and airlift into the greater Miami area. The focus for the Sales and Marketing teams is to maximize relationships with the top travel trade communities, select end- consumers, and luxury travel distribution channels promoting Bal Harbour as a destination. These targeted direct sales efforts assist in increased production and provide critical support for our partners in each market. Public Relations efforts are geared toward generating more news worthy attention and media hits for Bal Harbour and to help build brand equity in each region. Efforts are tracked weekly, monthly and yearly, based on Bal Harbour media hits generated by each office. In FY 2017-18, the Village Council approved an agreement with Quinn PR to provide domestic public relations services to the Village, which has yielded tremendous positive results and exposure to Bal Harbour Village. Familiarization Trips Familiarization (FAM) Trips refers to all the visiting media which comes to Bal Harbour Village. Our sales, marketing and PR professionals organize a series of media familiarization trips throughout the year to Bal Harbour. These trips result in subsequent media coverage for Bal Harbour from the visiting journalists and bloggers, which in turn creates media hits and PR for Bal Harbour. FAM trips are an important component and complement to our advertising and public relations efforts. Website and Social Media The existence of a completely functional and engaging website and platform is crucial in today’s world and using this platform to sustain our efforts is key. Additionally, given the social media climate and the consumer’s desire for new content, our social media efforts continue to be enhanced and expanded. Greater Miami Convention Visitors Bureau (GMCVB) The Greater Miami Convention and Visitors Bureau (GMCVB) is an accredited destination tourism and marketing organization. Its mission is to promote the Greater Miami area for leisure travel, conventions, business travel and tourism to our area. Bal Harbour is an important area for the GMCVB to promote, specifically in the luxury market. Bal Harbour Village continues to partner with the GMCVB on joint and appropriate marketing efforts. Special Events The Village’s intention with special events is to build programming within the community to benefit our visitors while at the same time providing an added benefit to our residents. The programs recommended this year include the continuation of an expanded Unscripted Bal Harbour Art Access Program; events associated with major regional events taking place in South Florida such as 87 Resort Tax Fund Art Basel / Miami Beach and the South Beach Wine and Food Festival (SBWFF); the addition of fireworks on New Year’s Eve and an expanded fireworks show on the 4th of July. The Unscripted Bal Harbour Art Program has evolved each year since it was launched in 2012. The intention is to support and provide access to the arts by connecting our visitors and residents to special events, curated programs and special access to cultural events and museums throughout the year. The mission of this program is to bring cutting edge contemporary art exhibitions and experiences to Bal Harbour, which are interesting to Bal Harbour hotel guests and residents, as well as relevant to the greater Miami community by fostering critical dialogue that is topical and meaningful and providing aesthetically and conceptually interesting experiences. The Unscripted Bal Harbour Museum Access Program provides Bal Harbour visitors and residents free access to the finest and most dynamic art museums and institutions in South Florida. When the program began it incorporated four of the most important visual arts museums in the Miami area. The program has grown to the current 18 cultural institutions that participate in addition to the proposed addition in FY 2018-19 of the Lowe Art Museum at the University of Miami. A museum guide and Bal Harbour Access card describing the program and each institution was created and sent to all Bal Harbour residents and is offered to Bal Harbour hotel guests as well. An updated guide and card will be created in the new FY to reflect the updates to the program. Unscripted Bal Harbour Art Access Tours offers unique access to, and private tours of, some of the Miami areas most sought after art experiences. Tours include visits to collectors’ homes, galleries, museums, private collections and art fairs, for a personal and distinctive Unscripted Bal Harbour experience. The Access Tours are complimentary and exclusive for Bal Harbour’s visitors and residents. Unscripted Bal Harbour Art Chats are a series of complimentary art talks held throughout the year that explore topics pertinent to commissioning public art projects and exhibiting in the public sphere. The program brings art experts— including curators, artists, architects and designers from around the world to Bal Harbour with the aim of fostering critical dialogue that is both timely and accessible to members of the art community, residents of and guests to Bal Harbour Village SIGNIFICANT ACCOMPLISHMENTS • Resort Tax Collections from October 1 through June 30 are up 16.7% from the previous same time period in FY 2017- 18. • FY 2017-18 proved to be a record year for tourism in Bal Harbour. From October 1 through June 30 was the highest overall collected for this time period and there were four months where the resort tax collection for each of those months was the highest ever collected. • March was the highest resort tax collection in the Village’s history with collections approaching $500,000. • Contracted with Quinn PR to provide domestic public relations services in the U.S. market for the Village beginning in January 2018 with results exceeding expectations with number of placements and direct exposure to the Village as a tourist destination and local place to visit. • Coordinated a number of public events including family- friendly movies on the beach; an event to kick-off the holiday season with the lighting of the holiday décor on 88 Resort Tax Fund Founders Circle and along Collins Avenue; and an Independence Day celebration on the 4th of July for our residents and hotel guests to accompany our traditional fireworks display. • The Unscripted Art Access Program now includes 18 cultural institutions, having added two this current year, including the Jewish Museum of Florida- FIU and HistoryMiami. • Art tours and chats included: Vizcaya Museum + Gardens; Phillip and Patricia Frost Museum of Science; Art Basel Private Brunch and Tour at the Aqua Art Fair; Art Fair Access to: NADA Miami, Art Miami and Context Art Miami, Pulse Contemporary Art Fair, Untitled Miami Beach; Bass Museum; Jewish Museum of Florida; Perez Art Museum (PAMM); and an art focus on accessing museums. • Curated three exhibitions for the public art project along the beach walk: Carrie Schneider’s “Reading Women” in conjunction with the Miami Book Fair; Jewish Treasures of the Caribbean; and Burneshas of Albania. The next exhibition will be a curated exhibit by the Andy Warhol Museum. • Installation of public art on Founder’s Circle in January of Robert Chamber’s artwork “Rotorelief”. • Held a Village Council Workshop on Tourism and Resort Tax in April to discuss and provide an overview on the following: Resort Tax enabling legislation; Resort Tax Committee; Resort Tax Budget for FY 2017-18; Resort Tax Collections; Village Tourism Department staffing and structure; Tourism efforts over the past 5 years; and performance measures and metrics. 89 90 FY 2018-19 Capital Budget and Multi-Year Capital Improvement Plan Local governments prepare and adopt comprehensive, fiscally sustainable, and multi-year capital plans to ensure effective management of capital assets. A prudent multi-year capital plan identifies and prioritizes expected needs based on a strategic plan. Historically, the Village has had only one major capital project, the Utility Master Plan, allocations for this and smaller projects were provided on an incremental fiscal year basis in spite of the multi-year nature of their duration. Now that the Village has developed a long-term vision for the future, a true multi-year capital plan emerges with the appropriation of funding toward the Bal Harbour Jetty, 96th Street Sunset Plaza, the development of a Waterfront Park for the Village, in addition to the Utility Master Plan Project. As the full design and scope of these projects emerge future years and corresponding funding allocations will emerge. As summarized in the Capital Improvement Plan below, the Village has completed $1,512,600 of Capital Projects with General Fund appropriations in the past few fiscal years, these completed projects are highlighted in gray within the Plan for the completion of Bus Shelters, the Bus Purchase, Crosswalk Installation, installation of the Park Shade Structure, the pur chase of Boat Engines, a Skid Loader, and a contribution toward the Haulover Skate Park. Within the Water and Wastewater Utility fund, $8,029,900 has been spent advancing the Utility Master Plan Project in prior years. Multi-year projects include the Bal Harbour Jetty, Waterfront Park development, Collins Corridor Redesign, and the Utility Master Plan Project. These include phased progression beginning with concept plans, architectural and engineering components, permitting and finally construction. Improvements to the Bal Harbour Jetty are anticipated to span three fiscal years commencing in FY 2019 and concluding in FY 2021. Development of the Waterfront Park is anticipated to span FY 2019 through FY 2023. Redesign of the Collins Avenue Corridor is anticipated to commence in FY 2023, the same year the Utility Master Plan Project is concluded. These multi-year horizons allow the Village to effectively plan and allocate resources toward project phasing and completion with minimal disruption to Village residents and visitors. Capital assets for the Village are defined as assets with an initial, individual cost of more than $25,000 and an estimated useful life in excess of one year. As such, they are recorded at historical cost, purchase or construction, and depreciated through time based upon a fixed schedule for each asset type. 91 FY 2018-19 Capital Budget and Multi-Year Capital Improvement Plan CAPITAL PROJECT Re-allocation of Prior Year Appropriation FY 2019 Proposed Appropriation Total Capital Appropriation (prior years & proposed) Remaining Appropriation FY 2019 Projected Spend FY 2020 Projected Spend FY 2021 Projected Spend FY 2022- FY 2023 Projected Spend GENERAL FUND Revenue Appropriation 895,800 6,911,052 Bus Shelters 1,027,227 0 Bus Purchase 66,200 0 Croswalk Installation 86,325 0 Park Shade Structure 12,000 0 Boat Engines 59,000 2,766 Haulover Skate Park 50,000 0 Skid Loader 48,000 11,962 Park Bathroom (50,000) 0 0 - Sea Wall (51,700) 0 0 - Village Hall Improvements 563,000 518,000 - Jetty 595,800 1,259,800 1,259,800 100,000 1,000,000 1,950,000 Waterfront Park 101,700 986,100 986,100 800,000 6,200,000 2,000,000 1,000,000 96th Street Plaza 100,000 100,000 12,000 Jogging Path 100,000 20,000 - Beach Furniture 75,000 75,000 - Fleet 150,000 1,561,400 465,900 - Information Technology 227,000 157,000 - CAD 380,000 161,900 161,900 Collins Corridor Redesign 0 0 - 5,000,000 Utility Master Plan: Stormwater 150,000 310,000 150,000 150,000 240,000 54,000 630,000 TOTAL CAPTIAL APPROPRIATION 0 895,800 6,911,052 3,908,428 1,223,900 7,440,000 4,004,000 6,630,000 RESORT TAX FUND Revenue Appropriation 95,000 95,000 Haulover Bridge Improvements 95,000 95,000 95,000 95,000 TOTAL CAPTIAL APPROPRIATION 95,000 95,000 95,000 95,000 - - - WATER & WASTEWATER UTILITY FUND Revenue Appropriation 14,917,000 Utility Master Plan: Water/Sewer 0 0 14,885,000 9,887,439 2,620,000 3,160,000 546,000 6,370,000 Mini Excavator 0 0 32,000 4,683 - TOTAL CAPTIAL APPROPRIATION 0 0 14,917,000 9,892,122 2,620,000 3,160,000 546,000 6,370,000 Total 0 990,800 21,923,052 13,895,550 3,938,900 10,600,000 4,550,000 13,000,000 Footnote: Potential New Building Purchase 2,500,000 92 FY 2018-19 Capital Budget and Multi-Year Capital Improvement Plan SIGNIFICANT ACCOMPLISHMENTS • Completed Phase 2a of the Utility Master Plan Project with Sanitary Sewer improvements, resulting in the relining of sewer pipes from 96th Street to 105th Street along Collins Avenue. • Purchased water meters for replacement and advance stormwater improvements consistent with the Master Plan • Contributed $50,000 toward the construction of a new Haulover Skate Park, resulting in a ribbon cutting ceremony in August and a new facility for our youth. • Held two public design workshops for the Bal Harbour Waterfront Park, resulting in the approval of the Conceptual Design Plan by the Village Council. • Commenced system installation and implementation design for the Police Department’s CAD RMS system, with project completion in FY 2019. 93 94 Position Detail FTEs PT FTEs PT FTEs PT FTEs PT GENERAL FUND Legislative 5.00 - 5.00 - 5.00 - 5.00 - Administration 6.00 - 6.00 - 6.00 - 7.00 - Finance 4.00 - 4.00 - 4.00 - 5.00 - General Government - - - - - - - - Law Enforcement 39.00 1.00 39.00 1.00 39.00 1.00 39.00 2.00 Building 4.00 - 4.00 3.00 5.00 3.00 5.00 4.00 Parks and Recreation 2.39 5.00 2.39 5.00 2.48 5.00 2.89 5.00 Public Works 1.94 - 1.94 - 3.74 - 5.18 - Total General Fund 62.33 6.00 62.33 9.00 65.22 9.00 69.07 11.00 WATER AND SEWER FUND Water and Sewer 3.46 - 4.46 - 7.73 - 6.50 - Total Water and Sewer Fund 3.46 - 4.46 - 7.73 - 6.50 - RESORT TAX FUND Marketing 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Beautification and Maintenance 4.21 - 4.21 - 2.49 - 2.14 - Total Resort Tax Fund 5.21 1.00 5.21 1.00 3.49 1.00 3.14 1.00 LANDSCAPE & SECURITY FUND Public Works - - - - 0.31 - 0.29 - Total Landscape & Security Fund - - - - 0.31 - 0.29 - TOTAL VILLAGE 71.00 7.00 72.00 10.00 76.75 10.00 79.00 12.00 FY 2018-19 Proposed Budget FY 2017-18 Adopted Budget FY 2016-17 Adopted Budget FY 2015-16 Adopted Budget 95 96 Position Detail FY 2018-19 Proposed Budget FY 2017-18 Adopted Budget FY 2016-17 Adopted Budget FY 2015-16 Adopted Budget GENERAL FUND Legislative FTEs PT FTEs PT FTEs PT FTEs PT Mayor 1.00 - 1.00 - 1.00 - 1.00 - Councilmember 4.00 - 4.00 - 4.00 - 4.00 - Total Legislative 5.00 0.00 5.00 0.00 5.00 0.00 5.00 0.00 Administration FTEs PT FTEs PT FTEs PT FTEs PT Village Manager 1.00 - 1.00 - 1.00 - 1.00 - Village Clerk 1.00 - 1.00 - 1.00 - 1.00 - AVM / Human Resources Director 1.00 - 1.00 - 1.00 - 1.00 - Executive Assistant 1.00 - 1.00 - 1.00 - 1.00 - Records Liason 1.00 - 1.00 - 1.00 - 1.00 - Capital Projects Coordinator - - - - - - 1.00 - Receptionist 1.00 - 1.00 - 1.00 - 1.00 - Total Administration 6.00 0.00 6.00 0.00 6.00 0.00 7.00 0.00 Finance FTEs PT FTEs PT FTEs PT FTEs PT Finance Director 1.00 - 1.00 - 1.00 - 1.00 - Accounting Clerk 3.00 - 2.00 - 2.00 - 3.00 - Controller 1.00 1.00 1.00 Total Finance 4.00 0.00 4.00 0.00 4.00 0.00 5.00 0.00 General Government FTEs PT FTEs PT FTEs PT FTEs PT Receptionist - - - - - - - - Total General Government 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 97 98 Position Detail FY 2018-19 Proposed Budget FY 2017-18 Adopted Budget FY 2016-17 Adopted Budget FY 2015-16 Adopted Budget Law Enforcement FTEs PT FTEs PT FTEs PT FTEs PT Police Chief 1.00 - 1.00 - 1.00 - 1.00 - Executive Secretary 1.00 - 1.00 - 1.00 - 1.00 - Captain 1.00 - 1.00 - 1.00 - 1.00 - Management Services Administrator 1.00 - 1.00 - 1.00 - 1.00 - Quality Assurance Coordinator - 1.00 - 1.00 - 1.00 - 1.00 Commander - - - - - - - - Lieutenant 2.00 - 2.00 - 2.00 - 3.00 - Sergeant 6.00 6.00 5.00 4.00 Detective 2.00 - 2.00 - 2.00 - 1.00 - Corporal 1.00 - 1.00 - 1.00 - - - Motorcycle Officer - - - - - - - - Canine Officer/Handler 1.00 - 1.00 - 2.00 - 1.00 - Officer 12.00 - 12.00 - 11.00 - 14.00 - Code Enforcement Officer 2.00 - 2.00 - 2.00 - 2.00 - Public Service Aide 1.00 - 1.00 - 1.00 - 1.00 - Public Safety Beach Ranger (Resort Tax Funded) 1.00 1.00 1.00 1.00 Dispatcher 6.00 - 6.00 - 6.00 - 6.00 - Records Administrator 1.00 - 1.00 - 1.00 - 1.00 - CAD Support Staff 1.00 Mechanic - - - - - - - - Communications Administrator & Code Compliance 1.00 1.00 Total Law Enforcement 39.00 1.00 39.00 1.00 39.00 1.00 39.00 2.00 99 100 Position Detail FY 2018-19 Proposed Budget FY 2017-18 Adopted Budget FY 2016-17 Adopted Budget FY 2015-16 Adopted Budget Building FTEs PT FTEs PT FTEs PT FTEs PT Building Official/ Director 1.00 - 1.00 - 1.00 - 1.00 - Chief Building 1.00 1.00 Permit Clerks 2.00 - 2.00 - 3.00 - 3.00 - Clerical Assistant 1.00 - 1.00 - - - - - Inspectors - - - 3.00 - 3.00 - 4.00 Total Building 4.00 0.00 4.00 3.00 5.00 3.00 5.00 4.00 Recreation FTEs PT FTEs PT FTEs PT FTEs PT Parks & Public Spaces Director 0.10 - 0.10 - 0.10 - 0.10 - Parks and Rec. Director - - - - - - - - Park Attendants 2.29 5.00 2.29 5.00 2.38 5.00 2.79 5.00 Total Recreation 2.39 5.00 2.39 5.00 2.48 5.00 2.89 5.00 Public Works FTEs PT FTEs PT FTEs PT FTEs PT Parks & Public Spaces Director 0.24 - 0.24 - 0.30 - 0.27 - Operations Coordinator 0.15 - 0.15 - 0.12 - 0.10 - Maintenance Staff 0.70 - 0.70 - 2.52 - 3.97 - Management Analyst 0.30 - 0.30 - 0.25 - 0.26 - Secretary - - - - - - - - Facilities Coordinator 0.55 - 0.55 - 0.55 - 0.58 - Total Public Works 1.94 0.00 1.94 0.00 3.74 0.00 5.18 0.00 TOTAL GENERAL FUND 57.33 6.00 57.33 9.00 60.22 9.00 64.07 11.00 101 102 Position Detail FY 2018-19 Proposed Budget FY 2017-18 Adopted Budget FY 2016-17 Adopted Budget FY 2015-16 Adopted Budget WATER AND SEWER FUND Water and Sewer FTEs PT FTEs PT FTEs PT FTEs PT Parks & Public Spaces Director 0.33 - 0.33 - 0.40 - 0.40 - Maintenance & Administrative Staff 3.13 - 4.13 - 7.33 - 6.10 - Total Water and Sewer 3.46 0.00 4.46 0.00 7.73 0.00 6.50 0.00 TOTAL WATER AND SEWER FUND 3.46 0.00 4.46 0.00 7.73 0.00 6.50 0.00 RESORT TAX FUND Marketing FTEs PT FTEs PT FTEs PT FTEs PT Tourism/Marketing Director 1.00 - 1.00 - 1.00 - 1.00 - Assistant - 1.00 - 1.00 - 1.00 - 1.00 Total Marketing 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Beautification and Maintenance FTEs PT FTEs PT FTEs PT FTEs PT Parks & Public Spaces Director 0.33 - 0.33 - 0.19 - 0.19 - Maintenance Staff 3.88 - 3.88 - 2.30 - 1.95 - Total Beautification and Maintenance 4.21 0.00 4.21 0.00 2.49 0.00 2.14 0.00 TOTAL RESORT TAX FUND 5.21 1.00 5.21 1.00 3.49 1.00 3.14 1.00 SECURITY & LANDSCAPE FUND Beautification and Maintenance FTEs PT FTEs PT FTEs PT FTEs PT Parks & Public Spaces Director 0.10 - 0.10 - Maintenance Staff 0.21 - 0.19 - Total Beautification and Maintenance 0.00 0.00 0.00 0.00 0.31 0.00 0.29 0.00 TOTAL SECURITY & LANDSCAPE FUND 0.00 0.00 0.00 0.00 0.31 0.00 0.29 0.00 TOTAL VILLAGE 71.00 7.00 72.00 10.00 76.75 10.00 79.00 12.00 103 - 3 9 V l l I A - NflO9HVH 1VI