City of Miami PROPOSED Fiscal Year 2009 BUDGET

2 Budget Focus To prepare a structurally balanced general operating budget. To provide a budget, which conforms to Generally Accepted Accounting Principles (GAAP). To present a budget using current financial resources as reported in the City of Miami CAFR. To receive citizen feedback to ensure the upcoming budget is consistent with the needs of our citizens.

3 Budget Issues Continuation of HB-1B Amendment 1 SB 1588 –Glitch Bill Fuel Costs Utility Costs

House Bill 1B Limits the increase in the City’s rolled back millage rate from year-to-year. City removed from list of municipalities under special financial concern in

Amendment 1 Approved by the voters on January 29, Provided an additional $25k exemption up to the 3 rd $25k of assessed value on homestead properties. Provided a $25k exemption on tangible personal property on businesses. 5

Amendment 1 Provided portability of Save Our Homes up to $500k. Reduced Current Year Gross Taxable Values by $1.2 billion in Tax Year City’s Current Year Gross Taxable Values increased by 1.6% in Tax Year 2008 compared to 14.5% in Tax Year

SB 1588 –Glitch Bill Changed the calculation of the maximum millage rate with a majority vote. Takes out the effects of Amendment 1. Does not effect the calculation of the maximum millage rate with a 4/5 th vote. 7

Fuel Prices Gasoline prices are projected to average $3.82 per gallon compared to $2.81 per gallon at the start of FY’08. Diesel prices are projected to average $4.27 per gallon compared to $2.88 per gallon at the start of FY’08. Overall, fuel expenses are forecasted to increase over 40% from $5 million to $8 million in FY’09. Source: Department of Energy, August 2008 Short-Term Energy Outlook 8

Utility Costs On July 1, 2008 the PSC approved an adjustment to FPLs pass-through fuel surcharge. On average, electricity prices are anticipated to increase from $8.6 cents per kilowatt hour in FY’08 to $10.1 in FY’09. Utility costs are forecasted to increase 20% in FY’09. Source: fpl.com/news and Department of Energy, Energy Information Administration, Short-Term Energy Outlook –August

General Fund 10

Revenues and Other Sources by Source of Funds Proposed Budget 2009 General Fund -$525,108,930 11

Total Revenues and Other Financing Sources Fiscal Years 2003 to Proposed Budget 2009 General Fund 8.60% 3.65% 14.08% 9.86% -5.30%0.27% Source: City of Miami Comprehensive Annual Financial Reports 12

Revenues (Inflows) –General Fund Represents a $1.4 million or 0.3% increase over the FY’08 Adopted Budget. $6 million in additional property tax revenue based on proposed millage rate. Includes $3 million in additional Solid Waste Fee revenues. Includes $2 million in Mural Revenues. 13

Expenditures and Other Uses by Function Proposed Budget 2009 General Fund -$525,108,930 14

Total Expenditures and Other Financing Uses Fiscal Years 2003 to Proposed Budget 2009 General Fund 9.97% 7.02% 7.21% 17.12% 0.27% -9.52% Source: City of Miami Comprehensive Annual Financial Reports 15

Expenditures (Outflows) –General Fund Overall, total proposed expenditures will increase $1.4 million over the FY’08 Adopted Budget. Reduced $16.9 million in City-wide departmental spending. Provides $12.7 million more for Public Safety. Eliminated 31 vacant full-time positions at a total cost savings of $2 million. Provides $2.8 million for the repayment of the Street Bonds approved in FY’08. 16

Expenditures (Outflows) –General Fund Provides 25 additional Police Officer positions effective April 1, Supports across the board increases provided to all union employees on October 1, $1 million towards the Pension Stabilization Fund. $300,000 for the Elderly Feeding Program. $200,000 for the Action Community Center. Reduces the number of general fleet replacement from 91 vehicles to

Expenditures (Outflows) –General Fund $1 million from mural revenues to be used for new park land acquisition, green space and public realm enhancements. Additional $2 million to Parks and Recreation. 14 new positions to the Finance Department. $3 million for additional fuel increases and $2 million for additional utility costs. $1.3 million for PC hardware and software replacement. 18

Expenditures (Outflows) –General Fund Limit the use of fund balance to only $5 million for contingency purposes. Dedicates $3 million in additional Solid Waste Fee revenues for the purchase of new Solid Waste vehicles. 19

Key Changes Uses more storm-water utility fund distribution in support of eligible General Fund storm-water projects and street cleaning operations. Reserves outstanding litigated claims at September 30, 2008 in the General Fund Balance. Modifies Solid Waste service delivery plan. 20

Questions 21