In accordance with the Charter of the City of Sunny Isles Beach, I am pleased to submit this Adopted Budget for the fiscal year 2004/2005. As you know, Public Hearings on the budget were held in the City Commission Chambers on September 9, 2004 at 7:00 p.m. and September 22, 2004 at 6:00 p.m.

The Adopted Budget reflects improvements to a number of municipal services; the full implementation of other programs that were started and partially funded in earlier years; and the continuation of the many existing projects -- plus a few new additions -- set forth in our long-term Capital Improvement Program.

The redevelopment of the City is continuing at a rapid pace, and we are continuing to rebuild the infrastructure of the City to keep pace with our rapid growth. Fortunately, thanks to the continued growth of our tax base and our efforts to restrain unnecessary spending, we have been able to accommodate all of our needs related to both municipal services and infrastructure improvements without raising the tax rate.

Charts/Graphs

Adopted Budget Expenditures

Adopted Budget Revenue

Expected Growth Rate

Piece of the Tax Dollar

Where Does Your Tax Dollar Go

Property Tax Base/Revenue

I want to point out that we have never increased the City's tax rate for general operating purposes. However, zero percent tax rate increases cannot continue forever. It is a challenge to meet the needs of our community for both infrastructure improvements and municipal services, even with the growth. This funding challenge will only increase in the years ahead as the scope of redevelopment in the City inevitably slows.

Still, the good news is that our property tax base increased significantly this past year. It is up approximately 28 percent. However, I do not expect the property tax base to continue growing at that phenomenal rate. The reason? The City's budget already benefits from revenues generated from earlier redevelopment efforts.

Growth in assessed value is based on a multi-year cycle of redevelopment that includes the times it takes to construct a new building, obtain a certificate of occupancy, and pass through the county appraisal process. The appraisal process alone includes a delay of approximately 10 months between the time a property is put on the tax roll and the City realizes revenue from it through the budget process.

We are now at a point in our redevelopment cycle where a certain number of earlier and substantial projects are largely completed and generating significant revenue, and recently started or planned projects still have a few years before they will generate revenue for the City.

As stated earlier, the City's tax rate remains unchanged at $3.35 per $1,000 of assessed value. The City's total assessed value increased approximately 28 percent, going from $2,521,375,000 to $3,231,394,000. This is the greatest increase on a percentage basis in the history of the City and reflects the greatest amount of redevelopment effort to date. Revenue from property taxes increased by $2,259,633, going from $8,024,278 to $10,283,911.

Other Revenue

The category of “other” revenues is expected to increase by approximately $377,671, going from $7,214,183 to $7,591,854 based on our current projections.

Most of these increases, which are minor given the scope of our total budget, include: (1) parking revenue, which is up approximately $140,000 due to the effort and cooperation of our new Parking Enforcement Division and the Police Dept.; and (2) building permit fees, which are up about $150,000 and are higher than we anticipated. (We recently streamlined the permit process for small renovation projects with a total cost under $1,000, such as replacing a window, a door or the tiles on a balcony. The fee for these types of projects is now fixed at $35.00. Previously, the fee might have been several hundred dollars.)

Expenditures

The budget for the Building Dept. is increased by approximately $500,000, largely to support its reorganized and expanded effort, which is expected to be fully operational at the start of the 2004/2005 fiscal year. The Building Dept. has gone from a cadre of part time inspectors in each of the disciplines to a Chief inspector, full time in each area, and a compliment of part time inspectors to fill in. We now service the development and residential community and residents with much more flexibility to address not only major development, but those smaller issues with a more focused approach.

A modest amount of additional spending is required to support our new and expanded Government Center complex. The City is shifting municipal operations over to the new Center during the upcoming and the following fiscal years. We are also planning a grand opening celebration for the complex, which should occur sometime during early next year.

The budget for the Police Dept. has increased over the past two years, primarily to continue implementing key aspects of the department's new Master Plan. Several new personnel positions, which were recommended by the Plan, were included in the 2003/2004 budget. We have commenced the hiring process for those positions and have recently added three new police officers.

The work related to the revised command structure, and the new position of Captain, is nearly complete, including the recruiting of an officer to serve as Captain and second-in-command to the Chief. Other recommendations of the Master Plan, such as eliminating the rank of corporal to help improve supervision, are being implemented. We are also working on State accreditation and a new Manual of Procedures, tailored for the Sunny Isles Beach Police Dept.

The budget for the Public Works Dept. has increased to $350,000 for additional landscaping maintenance and the Dept.'s new Fleet Maintenance Division, which has already demonstrated a superb effort in maintaining the City's fleet of motor vehicles and other motorized equipment. The Division consists of three employees, who, along with the Police Dept., have worked diligently to extend the average life of our vehicles, including police patrol vehicles, to approximately six years.

Thanks to the Fleet Maintenance Division and its efforts to improve our entire vehicle replacement program, this budget reflects the most significant rotation of vehicles since the inception of the City. The vehicles being replaced in 2005 are primarily from the 1998/1999 calendar years.

The budget for the Code Enforcement and Licensing Dept. is increased by approximately $50,000, largely to complete the funding for our new Parking Enforcement Division. The planning, implementation and staffing for the new Division is complete, and we have equipped the parking enforcement team with two new Go-Four vehicles designed specifically for parking enforcement duties in communities like Sunny Isles Beach. Both full time and part time staff handles the parking enforcement duties on an extended hours basis, seven days a week.

Our Information Technology unit is now organized as a separate department, and the budget for its activities is now listed separately. Previously, this unit was a division of the Administrative Services Dept. However, Information Technology is an increasingly critical part of our overall endeavor, especially our efforts to streamline procedures, keep costs low, and enhance services by having better management information at our fingertips. This Dept. oversees, implements and maintains -- with assistance from technical consultants -- our entire network of hardware and software related to data processing, electronic, voice and video communications, website, GIS System, and Cable TV.

Our Cultural and Human Services Dept. is assuming responsibility this fiscal year for the Lifeguard Services program. The City has already purchased three new state-of-the-art lifeguard stands through a municipal contract let by the City of Boca Raton. We will deploy these and our existing lifeguard stands at: the Ellen Wynne Beach Access; the beach access between the Sonesta Hotel and Golden Strand; the Samson Oceanfront Park; the Pier Park; and the beach access at the south side of the Turnberry Ocean Colony project on Collins Ave. This last site is in anticipation of increased beach activity on the southern end of the beach, and will be staffed during the 2005/2006 fiscal year.

This effort to bolster Lifeguard Services is a significant step forward for the City and we hope to continue improving these vital services.

The City's shuttle bus program continues to expand. This fiscal year we are adding more equipment, more routes, and extra and more frequent stops -- such as at the Intracoastal Mall and the Aventura Mall -- to meet the growing demand for the service and to make the shuttle bus transportation more convenient for more riders.

Increased bus ridership also helps to reduce the traffic congestion and parking problems that can come with the use of motor vehicles for transportation. Our expanded shuttle bus service this fiscal year will feature three new state-of-the-art luxury buses and seven-day service.

We are also budgeting a modest amount this fiscal year to help launch our new Sister City program with Netanya, Israel, a coastal resort and beach front community that is remarkably similar to Sunny Isles Beach. The benefits are immeasurable, and we can learn from each other how to better meet the needs of our citizens and visitors.

Continuing Capital Projects

We are continuing our commitment to fund our innovative, long-term Capital Improvement Program. Most of the significant projects anticipated for fiscal year 2004/2005 will be initiated, continued or completed as planned.

A few new projects are also being added to the program. However, the vast majority of activity is a continuation of our existing eight-year plan.

We expect the revised Active Park plans to be completed and out to bid this fiscal year; up-lighting will be added to the Samson Oceanfront Park; and the soccer field at the Margolis Park will be upgraded with proper drainage. We are also awaiting the results of a grant application to acquire additional park land through the Florida Communities Trust Program.

The installation of new decorative street lighting on 159th Street and 174th Street should commence almost immediately after the start of the new fiscal year. We are also in the process of designing the street light replacement program for North Bay Road, 172nd Street, and along Collins Avenue. Also, very shortly you will see our new entranceway signage lit up at night.

We are slightly behind schedule with our efforts to underground the power lines and replace the street lights along Collins Avenue, principally because of the extraordinary complexity involved in this activity.

However, we are working diligently with Florida Power & Light and the individual property owners on the issues of easements and responsibilities. In some instances, the developers of new projects are responsible for the undergrounding. In other areas, the City must be ready to step in and assume the responsibility and costs for this project.

A major focus next fiscal year will be the installation of new bus shelters throughout the City. The acquisition and installation of street furniture has already been completed.

The Sunny Isles Boulevard Street Improvement Project is progressing as planned, and we expect to be out to bid next year. This is a major project to improve the key entranceway to our City. The project is expected to cost more than $4 million and we expect $3 million of that amount will be funded by the Florida Dept. of Transportation.

As a part of our ongoing improvement efforts, we anticipate additional landscaping and beautification of the medians along Collins Avenue and other landscaped areas. Also, the various seawall repairs have commenced and should be completed in the early part of the fiscal year 2004/2005.

Among the new projects added to the Capital Improvement Program is the City's acquisition of the first major piece of sculpture to represent individual and family enjoyment of our parks. The City Commission plans to install the artwork at the entranceway to the Samson Oceanfront Park.

Another new project involves the construction of a masonry wall around the Golden Shores Park, along Collins Avenue and will end at the pathway that leads to the Golden Shores neighborhood. This wall will improve the appearance of the entranceway to the City from the Lehman Causeway and will provide added security for children playing in the Golden Shores Park.

We will also install new parking attendant booths at both the Pier Park and under the Lehman Causeway and we are hoping to add a reference to the beachwalk concept. However, the full costs and feasibility of the beachwalk project are not yet determined. This project still requires approval by the City Commission. We are also near completion of the feasibility study for a pedestrian bridge that would link North Bay Road from 172nd Street to 174th Street. It appears this project can be accommodated as envisioned by the City Commission in our Comprehensive Plan.

We have completed the plans and specifications for the Central Island Stormwater Project and will go out to bid once the Miami-Dade County Bond Issue is approved. We anticipate receiving $2.5 million for this project. Under the requirements of the bond issue, which governs the allocation of these funds to the City, we cannot award the project until the county bond issue is approved and the county issues a “Letter of intent to Issue Bonds.” We expect the Letter will be issued some time between January and March of 2005. We are extremely anxious to begin this long-anticipated project, which will complete the major stormwater-related repair work in our City. We are also working with the Federal Emergency Management Agency to secure additional funding to complete this vital project, which is estimated to cost approximately $3.5 to $4 million.

Two independent consulting firms are conducting a benchmark survey and a staffing analysis. Depending on the results of the study and the analysis, adjustments to both staffing levels and classifications may be recommended. Such adjustments, if warranted, would occur following the adoption of the budget for the fiscal year 2004/2005.

The vast majority of this budget is a continuation of the programs and projects aimed at achieving the goals and objectives set forth in previous years. It also includes a few modifications and additions that developed more recently to meet new or revised priorities.

I am particularly proud to report that our Finance Dept. staff has prepared this year's budget. They have managed the entire budget process promptly and thoroughly while continuing to handle their array of ongoing duties and responsibilities. The staff, including all our Department Heads, are to be commended for their diligence in preparing a budget that meets the diverse needs and desires of our community during a period of significant growth and transition.

I also want to thank the Mayor, City Commission, and volunteer members of the City Manager's Financial Advisory Committee for their support during the past year.

Respectfully submitted,

Christopher J. Russo
City Manager and Budget Officer