--- OCR page 1 of 59 --- { MIAMI MUNICIPAL | BUDGET | Fiscal Year 2011 - 2012 --- OCR page 2 of 59 --- : [ [ [ [ [ [ [ [ r [ [ [ [ [ L L L [ --- OCR page 3 of 59 --- M City of Vision, Spirit & Opportunity 7 PO Box 1288 129 5" Ave NW Miami, OK 74355-1288 ot Ph: (918) 542-6685 Fax: (918) 542-6845 : www.miamiok.org FY 11-12 Administration . Report Prepared by: Office of the City Manager (June 2011) --- OCR page 4 of 59 --- | TABLE OF CONTENTS P [ City of Miami Organization beceeee3 [' City of Miami Organizational Chart ceed FY 2012 Budget Message vee S27 | FY 2012 Budget Components vee Bl [ [ [ iF [ [ [ : [ | [ [ F Doge? | --- OCR page 5 of 59 --- M City of Vision, Spirit & Opportunity City of Miami Organization Mayor : Kent Ketcher Council Members Terry Atkinson ~ Southwest Ward 3 - Scott Trussler — Northwest Ward 2 : John Dalgarn — Southeast Ward 4 : Rudy Schultz — Northeast Ward 1 , Administration and Staff ‘ Interim City Manager - Tim Wilson : Assistant to the City Manager — Judy Francisco Comptroller —- Mike Romero City Attorney — David Anderson City Clerk — Pat Lee Fire Chief — Ronnie Cline Police Chief — George Haralson Management & Budget Director — Jill Fitzgibbon Library Director — Marcia Johnson Engineering — Chuck Childs Public Works Director — David Rountree Page 3 --- OCR page 6 of 59 --- g rg = Fr y ay = 3 ZF loz u f ge | : q 2 2) 12] le|| eb eye] le) | a " i _| Fe Td Hh $4 a < 3 £ 2 He 2 z tle B. 2] |e.| [8 ° }— 3 g 5: : ef H H 5 i Pil : 5 ae i Q : g ® i B Pol | g i 5 an} TES Z| 8 5 i - |] | ve i gs i Z| |e & i FALE al [EE HY LEE A ef i SE i i i i, Fllas : it F Rt ae iFi EIla --- OCR page 7 of 59 --- IM Cy of Vein, Spt & Oppomeaty Mayor Kent Ketcher “Tim Wilton, Interim City Manager Councilman Terry L. Atkinson, Ward 3 David Anderson, City Attomey Councilman Scott Trussler, Ward 2 Councilman John Dalgamn, Ward 4 ‘Councilman Rudy Schultz, Ward 1 . CITY OF MIAMI, OKLAHOMA BUDGET MESSAGE FY 2011-2012 To: Honorable Mayor and Members of the City Council 1 : The upcoming Fiscal Year (FY) 11-12 annual budget of the City of Miami has been prepared for your consideration and reflects the City’s continuing effort to provide quality services to our : citizens. The focus for FY 11-12 will be on reducing expenditures and getting back to the original : mission of providing quality basic services. . The following are highlights of the proposed budget: ‘ Revenues: : + Sales and use taxes are expected to remain at current year levels, with the exception of the full year of street sales tax revenue. . + Utility revenues are projected at current year levels as well. ; Expenditures: . + Personnel Services: . o Proposing an additional staffer to be filled from within existing personnel for the . Miami Convention & Visitors Bureau. o Revised job descriptions and a salary survey will be completed this fiscal year with administrative recommendations throughout the year. o Health insurance costs are projected to remain the same for FY 11-12. However, due to projected costs, an additional $222,000 was budgeted in the Health Insurance Fund. o Salaries and wages are budgeted to include all automatic raises and a $1,000 stipend to all full and part time employees who meet certain criteria. ($1,000 if hired FT before 1/1/11, $500 after 1/1/11) ($500 if hired PT before 1/1/11, $250 after 1/1/11) oc Eliminate positions through attrition. For example, the Assistant City Manager and Deputy Police Chief positions have not been budgeted. It is Administration’s goal to be at a staffing level of 185 employees by fiscal year end. This may require Administration to move or combine some positions/departments. o Will look into offering early retirement. o Reducing the cost of Professional Services by hiring a full time CPA in-house. Page 5 --- OCR page 8 of 59 --- + Maintenance and Other Services (M&O): | o Cost of gas is projected to rise to approximately $4.50 per gallon. > o Insurance rates (property/equipment) are budgeted with a projected 12% increase. | o M&O expenditures are budgeted to decrease by .5% for FY 11-12. o Installation of water automation system will free up additional personnel. [ . + Capital Improvement Program: | 4 o $763,112 in capital improvements are budgeted for FY 11-12, This amount is based on the Council’s position to maintain $2,000,000 in Utility R&R Funds and a $1,000,000 in Emergency Funds for infrastructure reserves. This includes a onetime | $534,000 transfer from Utility Repair & Replacement Funds to the CIP, a portion of ° these monies will be used to fund a $222,000 transfer to the Insurance Fund and a ® transfer of $124,000 to the Utility Fund to pay for right-of-way contractor services. | : o Highlight expenditures are: lease payments for the two (2) fire trucks, paving of cemetery streets, asphalt the pool parking lots, lease purchase of a dozer, and repair J the solid waste roof and floor. (see list on next page) | ° + Debt Service: [ o Continuing debt service on a loader, mower, fire ladder and pumper trucks, Gradall, . utility tractor, 2003 Series General Obligation Bonds, 2003 OWRB loans, 2004 * OWRB loans, 2005 OWRB loans, sanitation truck, packer truck, excavator, bucket 7 truck, 4 pe utility equipment, JetVac truck, TV truck. The budget also includes an annual payment for a loan for Central Bridge, boring a water line underneath Neosho . River, a well southwest of town, and three (3) miles of water line replacement. { . Capital Improvement List | [Poot $80,000 [Replace roof $25k, asphalt parkingiots |. . | : [ro YS 723000" | 3 newunts,bulingimprovenente | | | Boom mower, expo bidg & beef barns roof repair $35k, | [ Total Capital improvements | $ 763222 | | Page 6 L, --- OCR page 9 of 59 --- Interfund Transfers The following is a schedule of budgeted transfers between the three major funds. This will be the first full budget year for the collection of the newly approved 3.65% sales tax (3% for operations, .65% for street repairs). The 3% is projected to be $4,767,000 and the .65% is projected to be : $1,033,000. For purposes of the City’s bond rating these funds must first be transferred from the General Fund (GF) to the Special Utility Authority (SUA). They must then be transferred back to the GF and the restricted Street Project Fund (3% GF, .65% restricted Street Project Fund). Lr AVI Transfers val eg oe ot Se [Fromutii_ | $2,000,000 | | Operations | fun Ls en | lee ™ | From SUA $ 4,977,598 operations i [mosua TTS 5,800,000 [2.65% salestex | To Miami Downtown —————s (MDRA) $ 55,000 j request Se oe ee ee [roger | YS 2,000,000 | Operations | [Tobemo | $120,000 | Project funding | [rosa 982,050 | Debt service | [rocp TS 410,000 | Project funding | [Tostreet@Aley |__| $500,000 | Project funding | PRORATED IEE a So Out ge Purpose een | [fromutil | $99,050 | | Debt service [fromGr_ | $5,800,000 | | 3.6K salestax | ee ee To GF $4,977,598 _| operations [To street Project-Restricted | | $1,033,000 _| ss%street salestax | The proposed budget presented to you is a conservative balanced budget prepared in accordance with the Oklahoma Municipal Budget Act in Title 11 of the Oklahoma Statutes. We submit this budget for your consideration and approval. City staff looks forward to working with the Council and citizens in the administration of the FY 11-12 budget. Administration recommends Council: 1. Establish a policy for Reserve Fund to include: names (R&R and Infrastructure), balances to maintain, and use of said funds. 2. Hold a Council planning retreat in August 2011. Respectfully submitted, Tim Wilson, Interim City Manager TWiaf Page 7 --- OCR page 10 of 59 --- FY 2012 MAJOR FUND [ BUDGET REVENUES [ , Intergovernmental [" $106,000 . 0.38% , ee sae | co ae ‘ s9353800 Be og 22.50% = ee aoe : ea as se ae a Se ‘ee ee. : : em [: Investment Income eae Te oe ee. Utllities/Charges for $21,500 : pe Services , 0.08% 2 ee ye | oe Co ee aa $20,688,149 2 we ae 74.42% Miscellaneous Mee ee gata oe > 0.16% ee eee a : 7 oe oe eee Fines and oe ae ee s Forfeitures, SS $202,950 {|| License and Permits . 0.73% $481,200 [ a 1.73% REVENUES | The proposed budget continues the City’s commitment to maintain a high level of quality basic public services to which the citizens and business owners of Miami have come to expect. Above is | : an overview of the combined major fund sources of revenue for FY 11-12, (General Fund/City, Utility, Special Utility Authority). | The organization’s primary funding sources (3% sales tax, .65% street tax, sanitation fees, and , utility revenues) will provide $27,798,099 for FY 11-12. [ Page 8 | . --- OCR page 11 of 59 --- FY 2012 MAJOR FUND . BUDGET EXPENDITURES CG im, Personnel Transfers ge oS ey $10,936,676 $14,635,598 Qe ee 24.4% oF oe UNE Raa Se EN ie ee Oe As} = ae abr St lei ey Sle atis ot (ORES Sele Debt senice ee eae $775,000 » Pet arian cantata 1.7% Pe taping a Are pean seal lena Capital ee urna imunteeaiay Improvements ves nanan nail iy ; Program 2 Materials aapancidin ti pte “a ace - Other Services & 30.8% Charges $3,791,932 8.5% EXPENDITURES In maintaining a high level of quality basic public services, adequate funding have been provided to all major fund departments. Above is an overview of the combined major fund expenditures for FY 11-12. PERSONNEL SERVICES The budget for personnel services represents those costs necessary for salary and wages, healthcare benefits, overtime, various allowances, retirement contributions, workers’ compensation, unemployment compensation, FICA, physical examinations, and Medicare. A onetime transfer of $222,000 from CIP to the Health Insurance Fund will better align this fund with projected costs. Historically, this fund has not been budgeted in accordance with projected costs and a permanent plan will need to be created over the next fiscal year to solidify the strength of the fund. The total budget for salaries and other related personnel costs as approved is $10,936,676 compared to $10,556,313 for the previous year, an increase of 3.6% or $380,363. Personnel services appropriations represent 39% of the proposed FY 11-12 expenditures. Page 9 --- OCR page 12 of 59 --- This year’s budget includes a $1,000 stipend to all full and part time employees who meet the [ previously stated criteria, In addition, our goal is to continue to reduce personnel costs through attrition from the current number of 205 to 185. [ : MAINTENANCE AND OTHER SERVICES | . Total appropriations in the proposed budget for Maintenance and Other Services (M&O) are $17,589,855, This represents approximately a 13% increase over the amount budgeted for M&O in | . FY 10-11, which was $15,384,974. However, the GRDA expense is budgeted to increase by $1,800,000. Excluding this expense would reduce the increase to 3.5%, All departments have been . provided with what Administration believes to be adequate funding to operate throughout the year. | COMMUNITY ORGANIZATION SUPPORT | Each year the City provides public funding to a number of community organizations that support . public policy objectives. Funding is provided for various public programs and projects, and helps | each organization meet a public service objective consistent with the goals of the City Council. . Once the budget is formally adopted, agreements will be prepared for each organization funded by : the City. | 4 In the proposed FY 2012 budget, as discussed during the budget hearings, this year’s commitments > are as follows: | 1. Miami Downtown Redevelopment Authority (MDRA) - $55,000 (Fund $25k thru Dee '11 : and fund remaining $30k for last 6 months 1/1/12-6/30/12 including $5k for grant match) | 2. Miami Area Chamber of Commerce - $17,500 (4th of July $10k, NOW $5k, shop local . $2,500 — will be reimbursed once an invoice for Chamber program expenses has been = submitted to the City) | 3. Pelivan Transit - $18,000 (Amount withheld until the City receives an acceptable response from an information request made by the City Attomey) 4, Senior Citizens’ Center - $22,000 ($10,000 cash $10,000 utility credit, may provide an [. additional $2,000 in funding subject to an increase in revenue of $.50 per meal) 5. Miami Main Street Program - $7,500 (Special program funding) 6. Ottawa County Boys and Girls Club - $6,000 ($1,500 rewards, $300 spring break bowling, | . $2,200 supplies, $2,000 summer bowling) 7. Ottawa County Graduated Sanctions Program - $2,500 8. Animal Welfare Society - $10,000 (Require documentation on using funds for animals from | Miami. If Miami Community Foundation funds are not available to AWS, the City will give an additional credit for 4 of previous year’s utility cost ($2,600)) | 9. Miami Area Economic Development Service (MAEDS) — Continue current agreement to . administer the EDA, CDBG, and Rural Development loan program, retain Mayor and City Manager’s ex-officio position on the MAEDS Board, Mayor (with the Council’s approval) | appoints one (1) loan committee member, MAEDS provides a detailed quarterly report on contacts made and their outcomes. Page 10 | . --- OCR page 13 of 59 --- CITY INSURANCE PROGRAM ’ The City has blanket insurance coverage for property, construction equipment, electronic data processing, equipment breakdown, transfer station property, general liability, employee benefits liability, EMT professional liability, law enforcement liability, public officials’ liability, employment practices’ liability, vehicle liability/physical damage, worker’s compensation, and airport liability. This year the St. Paul Insurance Co. will provide policies for all coverage except worker’s compensation (WC), which is provided by Midwest Employers Casualty Company. Our . Third Party Administrator (TPA) for WC is Consolidated Benefits. The total cost for the City/Utility/Special Utility annual property insurance premium is projected to increase 12% and health insurance for FY 2012 will basically stay at the same rate as FY 2011. The City is partially self-insured for employee health benefits with a policy for stop-loss coverage above our Self Insurance Retention (SIR). The City’s third party administrator is Benefits Management Incorporated. . CAPITAL EXPENDITURES In their budget proposals, the department heads identified over $4,500,000 worth of capital improvement projects and asset purchases. The FY 11-12 budget includes the City’s current FY 10- 11 lease payments of $128,485 and new CIP requests of $634,627. CONCLUSION This budget has provided a plan of financial operations for the City of Miami for FY 11-12. It has included estimates of proposed expenditures for given purposes and the proposed means for financing them. A budget summary has been provided which shows a tabular listing of revenues by source and expenditures by fund and by department within each fund for the budget year. Overall, the City’s budget proposal for FY 11-12 represents a 3% increase from last year’s approved appropriations (City, Utility, & Special Utility). The increase is due to the following: GRDA estimated $1,800,000, automatic raises, additional police department personnel, and water production and wastewater treatment line and storm drain replacement for street repair project. Over the next fiscal year, City Administration and staff will closely evaluate expenditures and make recommendations to the Council on ways to increase sales tax collections by promoting additional events in Miami, saving tax dollars through attrition, and by looking into a possible early retirement offering. The City’s fiscal plan for FY 11-12 is a balanced proposal adopted in accordance with the requirements of the Oklahoma Municipal Budget Act. It is presented with recommendations for costs savings without reducing the level of current basic services. . Page 11 --- OCR page 14 of 59 --- QSSh82 BESSSESsH S8eSSSSESSSEseeh essgessse | 8 8 = hen) Mr Veeeeees Ur eCCeCCeeCC Geel MPlteceeee 5 gE B8seeh sesssesssie S8sssseessssssssse GssesssssseR é fl 7 SSSSo ESSPSSP SRE PSSSSSESSsssssssye FSoseesss sig & BE rte etre T err eter rT eT ere ere rere rere & E SELES Skee sres. 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