In accordance with the Charter of the City of Sunny Isles Beach, I am pleased to submit the Tentative Budget for the fiscal year 2003-2004. This Budget reflects the continuing redevelopment of the City and the results of past planning efforts for both the capital programming and organizational needs of a growing and evolving community. All of this is accommodated without raising taxes or imposing any new taxes. The tax rate will remain the same.

Following the order as it appears in the Budget, I would like to point out the more notable changes and new initiatives contained in the 2003-2004 Budget.

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
The tax base for calculating the amount of revenue to be generated, utilizing the same tax rate, is predicated upon the level of assessed value of the community. The assessed value is determined by the Miami-Dade County Property Appraiser’s Office, based upon its
analysis of the value created by both new development and rising property values in our city. By law, a calendar year is used to set the total value for the next ensuing fiscal year. Therefore, the development completed for valuation by December 31st of 2002 will be included and taxed for the fiscal year commencing October 1, 2003. As you can see, there is a lapse of nine (9) months.

This past year, the assessed value went up to $307,185,000, or 14%, for a new total assessed value of $2,521,375,000. This has generated just under one million dollars in new revenue. When the tax rate of $3.35 per $1,000 of assessed value is applied, the total
property tax revenue is estimated at $8,024,278; this is commonly called the “Ad Valorem Property Tax.” Because of our continuing growth mode, this increase has been quickly absorbed into the operating and capital improvement programs of the city government.

Other Revenues
The category of “other revenues” includes just that, everything “other” than the real property tax revenue. It is generated through sixty-eight (68) different categories of revenue, for a
total of $7,214,183. This represents an estimated $100,779 more in “other revenue” than the past year. As you can see, this category has remained relatively flat, primarily due to the business climate and economy. In fact, this revenue would have been approximately
$250,000 less if not for the anticipated transit system tax. This new tax will be used solely for the enhancement of our bus transportation program.

New Programs and Initiatives
Although the single largest expenditure increase in the Budget is for the Florida Retirement System and associated raises for personnel, there are still some new programs and initiatives planned. The new programs and initiatives are all related to the growth and redevelopment of our city.

This past year we successfully commenced the implementation of our new computer system. This was no small feat, in light of the outside attacks, “viruses,” and “worms” that permeate this highly technical area on a regular basis. Although the system has only been partially utilized to date, the Finance Department has seen the most progress, and their computerization is vital to the operation of city government. However, this project has put a
significant strain on our Finance and Administrative Services Departments, as they have overseen this complex project. All departments have been trained on the system and are at various stages of implementation.

For all of the reasons discussed thus far and to keep ahead of the curve with the development community, we are budgeting for more full time staff in the Building Department, to meet the needs of contractors, architects, developers, and the average homeowner who may need guidance on the smallest of home improvement projects. We are in the process of completing a study of the current structure of the Building Department, which will result in needed full time staff and less hourly employees.

The City Clerk’s Office has been restructured as a result of a recent Charter revision that placed this office under the control and responsibility of the City Manager. Although ministerial in nature, this important office functions no differently from other departments of the City and should be encompassed by the organizational structure. The net result has been a more efficient, streamlined operation with a proposed budget reduction of approximately $50,000.

This past year saw the completion of a five-year Master Plan for the Police Department. This Master Plan gives us a blueprint to follow for the future. It is a guide that has identified needs, based on the projected growth and changes taking place in our city. Although we
will not implement every aspect of this plan, a certain number of recommendations are contemplated and budgeted for the 2003-2004 fiscal year.

Another component of the Police Study was the creation of a formal Disaster Preparedness Plan. This plan is based upon the FEMA model and mimics the Miami-Dade County plan, for which we are a part. Training and accompanying resources for this plan will need to be addressed in the future.

The Code Enforcement and Licensing Department will be launching a new parking enforcement division with the commencement of the 2003-2004 fiscal year. This program will include parking enforcement officers and state-of-the-art equipment to enforce all
aspects of parking, inclusive of our resident-only daytime parking in the Central Island area, no parking throughout the city, and illegal stopping and unloading on all streets. Studies have shown that a dedicated parking enforcement program is very productive, and allows our police officers to better utilize their time, while still keeping an eye on parking as they have time.

The Public Works Department, which has oversight responsibility for the landscape maintenance contractor, has been kept busy with a more than doubling of the landscaped and beautified areas. This, coupled with an ever-growing demand to raise the aesthetic
quality of the City, has kept us very busy. This growth is reflected in the significant increase in landscape project funding and utilities, primarily water usage.

The Cultural and Human Services Department has steadily increased programming over the past several years, particularly with regard to Summer Camp. We anticipate the completion of revised plans and the development of the Active Park in order to better accommodate our program needs. This department is also responsible for the City Shuttle Bus Program. With the anticipated receipt of the Transit System Tax Revenue, we will be replacing our bus fleet, one at a time, and making significant improvements to the routes. The much anticipated bus shelters and accompanying benches and trash receptacles will be replaced during this next fiscal year.

Capital Projects Fund
Our Capital Project Program is proceeding on target and has identified more projects and some additional funding sources over the past year, including stormwater projects. This plan is now a 40 million dollar program over about eight (8) years. The City will realize over 4 million dollars from development impact fees and bonuses next year alone. Over $400,000 in grants is also being used to offset the cost of capital improvement projects. There is a detailed section in the budget that outlines the complete plan and all projects. Every one of these projects is for the beautification and enhancement of the City of Sunny Isles Beach. The City Hall project is currently on schedule and within our total construction
budget of 15 million dollars inclusive of the Tony Roma restaurant construction.

Although this proposal is reflecting growth, it does so in a responsible way that utilizes only the revenue increase we expect from the tax base growth, and no more. We cannot grow faster than our means or we may find ourselves in a deficit situation a few years down the road, like so many other cities.

I want to take this opportunity to thank the Mayor and City Commission for all their guidance, support and help over this past year and during the budget process. I would also like to thank the City Manager’s Financial Advisory Committee for all their input and
guidance on financial matters throughout the year. I am particularly proud of our Finance Department. I have been able to delegate the compilation and management oversight of this budget document to their office. I am very pleased with the results and look forward to
their continued help and support over this next year, as financial oversight and management continues to be more critical as we grow.

I look forward to working with all the residents of our city on these projects and initiatives over the next fiscal year.

Respectfully submitted,
Christopher J. Russo
City Manager and Budget Officer
City of Sunny Isles Beach