Second Budget Hearing September 24, 2019

MINUTES

# SECOND BUDGET HEARING

## KEY BISCAYNE, FLORIDA

TUESDAY, SEPTEMBER 24, 2019

COUNCIL CHAMBER 560 CRANDON BOULEVARD

1. CALL TO ORDER/ROLL CALL OF MEMBERS: The meeting was called to order by the Mayor at 7:09 p.m. Present were Councilmembers Luis Lauredo, Edward London, Brett G. Moss, Kathleen Petros, Ignacio Segurola, Vice Mayor Allison McCormick and Mayor Michael W. Davey. Also present were Village Manager Andrea Agha, Village Clerk Jennifer Medina and Village Attorney Chad Friedman.

2. PLEDGE OF ALLEGIANCE: Mayor Davey led the Pledge of Allegiance.

3. BRIEF COMMENTS BY COUNCIL: There were no comments provided by Council.

4. PUBLIC COMMENTS: The following residents addressed the Council: Jan Dillow, 350 W. Heather Drive, commented on the proposed FY2020 budget and in support of the Chief Resilience Officer; Lynn Paisley, 345 Redwood Lane, commented in support of MAST Academy Green Champions and Solar Hub; Ellie Reyna, 111 SW 21st Road, commented in support of MAST Academy solar panels; Felipe Paioletti, 7407 SW 52nd CT, commented in support of the MAST Academy Green Champions budget request; Holly Thorpe 651 S. Mashta Drive, commented in support of the installation of the MAST Academy solar hub; Cecile Sanchez, 260 Cypress Drive, commented on the funding for landscaping; and Antonio Camejo, 151 Crandon Boulevard commented on the proposed improvements to the Key Biscayne library.

At this time, Councilmember Petros and the Attorney addressed the Council and the public regarding the proposed improvements to the Key Biscayne library.

* * *

There was extensive discussion by Council regarding the proposed improvements to the Key Biscayne library.

At this time, the Mayor called for a recess and the meeting reconvened at 7:43 p.m.

## 5\. MILLAGE RESOLUTION: The Clerk read the following resolution by title:

## A RESOLUTION OF THE VILLAGE OF KEY BISCAYNE. FLORIDA: ADOPTING THE FINAL MILLAGE RATE OF THE VILLAGE OF KEY BISCAYNE FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2019 THROUGH SEPTEMBER 30, 2020 PURSUANT TO FLORIDA STATUTE 200.065 (TRIM BILL); PROVIDING FOR AN EFFECTIVE DATE.

Mayor Davey made a motion to approve the resolution. The motion was seconded by Councilmember Moss.

The Attorney addressed the Council regarding the process for the adoption of the millage resolution.

Mayor Davey made a motion to table the resolution to be heard after Item 6A. The motion was seconded by Councilmember Moss and approved by a 7-0 voice vote. The vote was as follows: Councilmembers Luis Lauredo, Edward London, Brett G. Moss, Kathleen Petros, Ignacio Segurola, Vice Mayor Allison McCormick and Mayor Michael W. Davey voting Yes.

## 6\. ORDINANCES: The Clerk read the following ordinance on second reading, by title:

## AN ORDINANCE OF THE VILLAGE OF KEY BISCAYNE, FLORIDA; ADOPTING THE BUDGETS FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2019 THROUGH SEPTEMBER 30, 2020 PURSUANT TO FLORIDA STATUTE 200.065 (TRIM BILL); PROVIDING FOR AN EFFECTIVE DATE.

Councilmember Moss made a motion to adopt the ordinance on first reading. The motion was seconded by Mayor Davey.

The Manager addressed the Council regarding the process for the adoption of the budget on second reading.

The Manager addressed the Council presenting the FY2020 proposed budget, resiliency, effective and efficient government, strategic planning, quality of life, public safety, beach restoration, increasing stormwater mitigation, land acquisition, undergrounding utilities and enhance communication efforts, capital investments towards parks and open spaces and maintenance standards.

At this time, Councilmember Moss addressed the Council regarding the proposed FY2020 general fund excess revenues over expenditures.

* * *

The Manager addressed the Council regarding the proposed FY2020 General Fund Summary; a proposed total amount of $508,000 from Working Capital to fund the Capital Improvement Plan; and also, possible options to fund the proposed FY2020 budget and Capital Improvement Projects: loan proceeds, increase millage; and funds from Working Capital.

Councilmember Lauredo addressed the Council regarding the Deputy Finance Director.

The Manager addressed the Council regarding the Deputy Finance Director position.

## Council, Boards & Community Groups

The Mayor addressed the Council regarding the funding decrease in the Subscriptions & Memberships budgetary line item.

The Clerk addressed the Council regarding the Subscriptions & Memberships budgetary line item.

There was extensive discussion by Council regarding the State & Local Lobbyist budgetary line item.

It was the consensus of Council to issue a Request for Proposals for both a Local and State Lobbyist.

Councilmember Lauredo addressed the Council regarding a funding request by the Village of Kindness totaling $4,750.

Councilmember Moss addressed the Council regarding the reinstatement of the Youth Engagement budgetary line item totaling $4,500.

Councilmember Moss also addressed the Council regarding removing “Outward Bound” from the Youth Leadership/Outward Bound budgetary line item.

It was the consensus of Council to remove “Outward Bound” from the Youth Leadership/Outward Bound budgetary line item.

Lastly, Councilmember Moss also addressed the Council regarding reinstating the Youth Council budgetary line item totaling $15,000.

It was the consensus of Council to rename the budgetary line item from “Youth Engagement” to “Village of Kindness” and allocate a total of $5,000 in the FY2020 budget.

It was also the consensus of Council to allocate a total of $10,000 in the FY2020 budget towards the Youth Council budgetary line item.

VILLAGE OF KEY BISCAYNE Village Council Michael W Davey,Mayor dlison McCormick, Vice Malor Luis Lauredo Edward London Brett Moss Katie Petros IgnacioJ. Segurola SECOND BUDGET HEARING TUESDAY, SEPTEMBER 24, 20 19 6:00 P.M. 1. CALL TO ORDER/ROLL CALL OF MEMBERS PLEDGE OF ALLEGIANCE BRIEF COMMENTS BY COUNCIL PUBLIC COMMENTI There is a (3) minute time limit for each speoker during public comment. Your cooperation is appreciated in observing the (3) minute rule. If you have a matter you would like to discuss during public comments, o request form is available at the entrance of the Council Chambers, please fill-it in and return it to the Village Clerk prior to the start of the meeting. When your nome is called, please come forward to the podium, STATE YOUR NAME, ADDRESS, IF YOU ARE A HIRED CONSULTANT OR VILLAGE EMPLOYEE AND/OR IF ENGAGED IN LOBBYING ACTIVITIES AND/OR IF YOU ARE REPRESENTING AN ORGANIZATION FOR THE RECORD. 5. MILLAGE RESOLUTION: A RESOLUTION OF THE VILLAGE OF KEY TAB 1 BISCAYNE. FLORIDA: ADOPTING THE FINAL MILLAGE RATE OF THE VILLAGE OF KEY BISCAYNE FOR THE FISCAL YEAR COMMENCING OCTOBER I, 2OI9 THROUGH SEPTEMBER 30, 2020 PURSUANT TO FLORIDA STATUTE 200.065 (TRIM BILL); PROVIDING FOR AN EFFECTIVE DATE. (VILLAGE MANAGER) RE COMMENDATION: Approval I of 2 88Vest Mclntyre Street . Suite 2OO . Key Biscayne, Florida 33149 . (305) 355-5506 . Fax (3O5) 365-8914 MISSION STATEMENT:"TO PROVIDEA SAITE, QUALITY COMMUNI'I.Y ENVIRONMEN'f FORALL ISI,ANDEIISTHROUGH RESPONSIBLE GOVEIiNMENT." www.keybiscayne. fl . gov 2 J 4 A

VILLAGE OF KEY BISCAYNE 6. ORDINANCES: A. SECOND READING: 1.) AN ORDINANCE OF THE VILLAGE OF TAB 2 KEY BISCAYNE, FLORIDA; ADOPTING THE BUDGETS FOR THE FISCAL YEAR COMMENCING ocToBER 1o 2019 THROUGH SEPTEMBER 30, 2020 PURSUANT TO FLORIDA STATUTE 200.065 (TRIM BILL); PROVIDING FOR AN EFFECTIVE DATE. (VILLAGE MANAGER) RECOMMENDATION: Approval OPEN FOR PABLIC COMMENTS 7. SCHEDULEOF'FUTUREMEETINGSiEVENTS: REGULAR COLINCIL MEETING TUESDAY, OCTOBER 15, 2019, 6:00 P.M., COLTNCIL CHAMBER ULAR COUN TUESDAY, OCTOBER29,20I9, 6:00 P.M., COUNCIL CHAMBER 8 I ANY PERSON WISHING TO ADDRESS THE WLLAGE COANCIL ON AN ITEM ON THIS AGENDA IS ASKED TO REGISTER WITH THE WLL.AGE CLERK PRIOR TO THAT ITEM BEING HEARD. PRIOR TO MAKING A STATEMENT, PLEASE STATE YOUR NAME, ADDRESS,IF YOU ARE A HIRED CONSALTANT OR VILL.AGE EMPLOYEE/FORMER WLL,AGE EMPLOYEE AND/OR IF ENGAGED IN LOBBYING ACTIVITIES FOR THE RECORD. il. IN ACCORDANCE TTITH THE AMERICANS WITH DISABILITIES ACT OF 1990, ALL PER^SOIVS WHO ARE DISABLED AND WHO NEED SPECIAL ACCOMMODATIONS TO PARTICIPATE IN THIS PROCEEDING BECAUSE OF THAT DISABILITY SHOALD CONTACT THE OFFICE OF TIIE VILLAGE CLERK, 88 WEST MCINTYRE STREET, KEY BISCAYNE, FLORIDA 33149, TELEPHONE NUMBER (305) 365-5506, NOT LATER THAN TtyO BUSINESS DAVS 2RIOR TO SUCH PROCEEDINGS. III IF A PERSON DECIDES TO APPEAL ANY DECISION MADE BY THE VILL,4GE COANCIL WITH RESPECT TO ANY MATTER CONSIDERED AT A MEETING OR HEARING, THAT PERSON WILL NEED A RECORD OF THE PROCEEDINGS AND, FOR SACH PURPOSE, MAY NEED TO ENSARE TIIAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED (F.5.286.010s). IV. IN ACCORDANCE WITH VILI- GE CODE SECTION 2-161, ADOPTING SECTION 2-11.1(s) OF THE MIAMI-DADE COANTY CODE, ANY PERSON ENGAGING IN LOBBYING ACTIVITIES, AS DEFINED THEREIN, MUST REGISTER AT THE VILL,AGE CLERK'S OFFICE BEFORE ADDRESSING THE COUNCIL ON THE ABOVE MATTERS OR ENGAGING IN LOBBYING ACTIWTIES. 2 of 2 MISSION STATEMENT "TO PROVIDE A SAFE, QUALITY COMMI.JNITY EI.N4RONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT." A. B. ADJOURNMENT

VILLAGE OF KEY BISCAYNE A^-:l 2n 1n 1() Vitlage of Key Biscayne 2019 Vittage Council Meeting Schedule 6:00 P.M. 1.) +ant*a*y+S;+g+g 9.) +une+S;:g+g Budgeil#o*shop 2.) eebn*ary++o+g r0.) W3.)W 4.) Mareh-+9;2019 11.)@ +{++udg€+++earing s.) Apri+ry t2.) @ 2n+Budgeftring 6.) t LyLLt Jv, -v L t 7.) tl{ay++;X+g 13.) October 15,2019 14.) October 29,2019 8.) +une-+l-,+0+g 15.) November 19,2019 16.) December 10,2019 1. September Budget Hearings subject to change due to Miami-Dade County School Board and Miami-Dade County Commissioners Meeting Schedule. THE ABOVE MEETINGS ARE HELD IN THE COANCIL CHAMBER, 560 CRANDON BOULEVARD AND ARE SABJECT TO CHANGE. ZONING MEETINGS AND SPECIAL COUNCIL MEETINGS WILL BE SCHEDALED ON AN AS NEEDED BASIS. PLEASE VISIT www.keybiscayne.fl.gov TO WEW THE MEETING SCHEDULE. MISSION STATEMENT 'TO PROVIDE A SAFE, QUALITY COMMUNITY ET{VIRONMENT FOR ALL ISLANDERS THROUGH RESPONSIBLE GOVERNMENT."

TAB 1

RESOLUTION NO. 2019. A RESOLUTION OF THE VILLAGE OF KEY BISCAYNEO FLORIDA; ADOPTING THE FINAL MILLAGE RATE OF THE VILLAGE OF KEY BISCAYNE FOR THE F'ISCAL YEAR COMMENCTNG OCTOBER l, 2019 THROUGH SEPTEMBER 30, 2O2O PURSUANT TO FLORIDA STATUTE 200.06s (TRIM BILL); PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, pursuant to Section 200.065 of the Florida Statutes, the Property Appraiser has made tax assessments for all real property within jurisdiction of the Village of Key Biscayne; WHEREAS, on July 3l,20l9,the Village transmitted the Certificate of Taxable Value to the Property Appraiser determining the "Proposed Millage Rate" for the fiscal year commencing October l, 2019, and the Council further scheduled the public hearings required by Section 200.065 of the Florida Statutes to be held on September 10, 2019 at 6:00 p.m. and on September 24,2019 at 6:00 p.m.; and WHEREAS' said public hearings, as required by Section 200.065(2)(c) and (d), were held by the Village Council on September 10, 2019, commencing at 6:00 p.m. and on September 24, 2019, commencing at 6:00 p.m., as previously noticed and the public and all interested parties having had the opportunity to address their comments to the Village Council and the Village Council having considered the comments of the public regarding the final millage rate and having complied with the "TRIM" requirements of the Florida Statutes. NOWO THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF KEY BISCAYNE, FLORIDA AS FOLLOWS:

Section 1. That the final millage rate for the Village of Key Biscayne for the fiscal year commencing October 1,2019 through September 30,2020, be and is hereby fixed at the rate of 3.1950 mills which is $3.20 dollars per $1,000.00 of assessed property value within the Village of Key Biscayne. Section 2. That the rolled-back rate is 3.1580 mills and the final millage rate is 3.1950 mills, which is l.I7o/o over the rolled-back rate. Section 3. That this resolution shall be effective immediately upon its adoption by the Village Council and shall be applicable from and after October 1,2019. PASSED AND ADOPTED this 24th day of September,20Ig. MAYOR MICHAEL W. DAVEY ATTEST JENNIFER MEDINA, CMC VILLAGE CLERK APPROVED AS TO FORM AND LEGAL SUFFICIENCY: VILLAGE ATTORNEY

TAB 2

ORDINANCE NO. 2019. AN ORDINANCE OF THE VILLAGE OF KEY BISCAYNE, FLORIDA; ADOPTING THE BUDGETS FOR THE FISCAL YEAR COMMENCING OCTOBER l, 2019 THROUGH SEPTEMBER 30, 2020 PURSUANT TO FLORTDA STATUTE 200.065 (TRIM BILL); PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Village Manager presented to the Village Council a "Tentative General Fund Operating Budget" for the fiscal year commencing October 1,2019 and the Village Council scheduled the public hearing required by Section 200.065(2)(c) of the Florida Statutes to be held on September 10, 2019 at 6:00 p.m.; and WHEREAS, the Property Appraiser has properly noticed the public hearing scheduled for September I0,20Ig, at 6:00 p.m., in the Council Chamber, located at 560 Crandon Boulevard, Key Biscayne, Florida, as required by Chapter 200 of the Florida Statutes; and WHEREAS, said public hearing, as required by Section 200.065 (2)(c), was held by the Village Council on September 10, 2019, commencing at 6:00 p.m. as previously noticed and the public and all interested parties having had an opportunity to address their comments to the Village Council, and the Village Council having had an opportunity to amend the tentative budget as it deemed appropriate and having considered the comments of the public regarding the tentative budget and having complied with the "TRIM" requirements of the Florida Statutes; and WHEREAS, pursuant to Section 200.065(2)(d) of the Florida Statutes, a final public hearing to adopt the budgets for the fiscal year commencing on October l, 20T9, through September 30,2020, was held, as advertised, on Tuesday, September 24,2019, at 6:00 p.m., in the Council Chamber, located at 560 Crandon Boulevard, Key Biscayne, Florida and the Council considered comments from the public. 1

NOW, THEREFORE, BE IT ORDAINED BY THE VILLAGE COUNCIL OF KEY BISCAYNE, F'LORIDA: Section 1. Upon prior adoption of the final millage rate, which is hereby ratified, the attached budgets of the Village of Key Biscayne for the fiscal year commencing October 1,2019, are hereby approved and adopted. Section 2. This Ordinance shall be effective upon adoption on second reading and shall be applicable from and after October I,2019. PASSED AND ADOPTED on the first reading this 10th day ofSgplembq ,2019. PASSED AND ADOPTED on the second reading this 24th day ofSgplglqbgl- ,2019. MAYOR MICHAEL W. DAVEY ATTEST: JENNIFER MEDINA, CMC, VILLAGE CLERK APPROVED AS TO FORM AND LEGAL SUFFICIENCY: VILLAGE ATTORNEY 2

VillageCourril MichaelW.Dney'M4.w Alliron McCormialg Vice Mayor Luis l,auredo Edward London BreftMoss IGtie Petros lgnacioJ. Segurola Village Manager Andrca Agha V]ILLAGE ()]F IK]EY IL$IISCA.VI\]E Office of the Village Manager To: From: Subject: Honorable Mayor and Village Councilmembers Andrea Agha, Village Manager Fire Police Total Actuarial Required Contribution 870,782 552,090 1,422,872 Covered Payroll 3.994.413 2,639,053 6,633,466 ARC as 7o of Covered Payroll 21.80% 20.92% 21.45% State Chapter 175/185 Premium Tax Rebate 379,846 156,922 s36,768 Actuarial Required Village Contribution 490,936 395, I 68 886, I 04 Village ARC as % of Covered Payroll 12.29% 14,970/, 13j6% Chief Resiliency Officer. Additional funding of $ 125,000 has been allocated in the Manger's budget under Professional Services for a Chief Resiliency Officer. The contracted service provider approach will allow the Village to staffthe position immediately, including support for the Village's resiliency needs and project implementation services on an as-needed basis, as a pilot, The funding allocation assumes an hourly rate of $ 125 with a physical presence of 20 houn per week. Based on the results of this pilot program, the Village may transition to a full-time contracted position or in-house employment. (Fiscal Impact: $125,000 increased expenditure) Organizafional Development, Budget Policies & Process Communicetions Progran. Program objectives previously provided in the first budgct hearing memorandum ars no\r detailed in the Manager's Budget, Strategic Priorities line item in lhe supporting budget worksheets. One program goal is to have a dircct line of communication wjth every resident in the Villagc based on their prefened means of communication. Key intended outcomes of the program include expanding reach and social media presence to ensure factual information is readily available and misinformation can be professionally mitigated, improving our customer service while recognizing all stakeholden as our cuslomers, forti$ing the Village's valuable brand through relationship-building and creating a more uscr-friendly experience through a new website and other strategic and technological solulions. The budget previously allocated funds for our part-time conlracled communicalions and website manager (position will be vacant as of 9l30ll9) and other communications consultants across all deparlments (prior year actual expenditures for these services are in excess of $ I 00,000). The total cost of the program which includes tbe cost for a newly created full-time employee has been grouped under the Communications Program to accurately reflect the budget allocation to achieve these outcomes. Public Safety Outreach & Wellness. The Council prioritized preventative measures in dealing with risk reduction and crime. In order to mitigate the risks that impact our youth, including bullying and vaping, fire/time prevention, and to fufiher enhance the Village's communication with its residents, the FY20 budget converts the Fire-Rescue Department community outreach position to a public safety outreach and wellness coordinator position intended lo serve as a shared resource between our public safety and general employees. This position will be responsible for coordinating the proactive measures to raise awareness, miligatc risk and prevenl crime undEr ths strategic direction of the newly established community engagement and communications officer. The position has been enhanced with additional responsibilities that will provide addcd value to the organization. The position will also provide mental health awareness and counseling to public safety staff impacted by potential life altering experiences or other general employees in need of counseling. Finally, the position will also be responsible for conducting trainings for all Village staff in CPR, AED operation, and Stop the Bleeding techniques, preparing us to respond more effectively to large scale disasters. Funding is provided for as a result of approximately $ I 5,000 savings in Fire pension contributions, eliminating $4,500 from the Village Manager's Communications Program for Date: FiscalYear 2019-202A Final Millage and Budgets for the General Fund, Special Revenue Funds, Enterprise Funds and Capilal Improvement Fund September 24,2019 Recommendation It is recommended that the Village Council adopt a finat millage rate of 3.1603 for Fiscal Yezr 2019'2020, which is approximately $3.16 per $1,000 of assessed property value. The millage rate of 3.1603 will generate properly tax revenues or ad valorem in the amount of 524,950,960. The impact is an approximate ieduction of $177,623 or 0.71Yo decrease in ad valorem revenue for the General Fund compared to FYl9 Adopted Budget. It is recommended that the Village Council adopt the budgets for the General Fund, Special Revenue Funds, Enterprise Funds, and Capital Improvement Fund as described below and provided as "Exhibit A". Backsround This memorandum is intended to be a supplement to the first budget hearing memorandum. At the first budget hearing for FY20 held on Tuesday, September 10,2019, Councjl reviewed and discussed the following proposed budgets: General Fund, Community Groups, Transportation Fund, Stormwater Fund, Solid Wasie Fund, and the Capital Improvement F'und. At the conclusion of the meeting, Council adopted via resolution the tentative millage rate of 3.1950 mills. The operating budget was supported at a millage rate of 3.1156, however, the Council tentatively adopted a millage rate of 3.1950, providing the excess revenue to fund projects in the Capital Improvement Plan for a total of $374,433. Some adjustments to the budget have occurred since first hearing and these changes have been described in detail below. Changes from First Reading with Fiscal Impacts Public Safety Pension Contributions. On September 9th, the Village received the Actuarial Valuation Report as of October l, 2018 from Gabriel, Roeder, Smith & Company ("GRS"). The actuarial required contribution ("ARC") as a percsntage of covered payroll prior to State Chapter 175 & 185 funds is 21 .80o/o and 20.92Yo for firefighters and police officers, respectively. After accounting for state chapter funds received based on prior year actuals of$379,846 and $156,922, the net ARC as a percentage ofcovered payroll is 12.29o/o and 14.970/o for fire and police, respeclively. The Village has budgeted the projected impact of the $1.9 million contribution to pay down the unfunded liability of the pension fund using fire transport fees as $ I 00,000 and $75,000 for fire and police, respectively. (Fiscal Impact: $ I 08,823 decreased expenditure) Page1of114

paid newspaper advertisements to reallocats to this function and reallocating $3,000 from Police Department Communications line item. Crime Prevention. Pursuant to Council direction for enhanced visibility and preventative crime tactics, an additional $25,000 has been requested for crime prevention under the Police Overtime budget. This will allow the Police Department to increase officer presence at nighl, which is intended to act as a deterrent to any would-be criminals. Some residents may have already seen the effects of this increascd presence at the Village enhance toward Virginia Key. Officers have taken highly visible posts on either side of Crandon Blvd to deter any individuals intending to conduct illegal activity on the Key. Due to its effectiveness, the Police Overtime allocation was increased to mainlain the elevated presence. We anticipate sufficient salary savings within the Department to cover the expense. Community Groups. Pursuant to direction received by Council at the first budget hearing, community groups have been moved back to their previous homes in various department budgets. Those boards or community groups thal have not received funding in prior fiscal years remain in the Council budget. Statf will determine the operational needs required from the newly funded activities to determine which department will be responsible for the activity. The FY2l budget will allocate the communiry group funding in the accountable deparlment's budget. Department Budget Messages and Pedormance Evaluations. Department budget messages are being created and may be provided with each department budget presentation. The message includes a description of the servicris offered by the department, its major accomplishments in FY19, its goals for FY20, and its key performance indicators (KPIs) that will be used to measure the department's success in accomplishing its goals and for purposes of performance evaluations of Deparfment Directors. These KPIs will provide input into a larger dashboard intended to be shared with the community to inform residents ofthe Village's performance and will tie out to the sffategic plan. Capital Improvement Plan and Policy.'lhe Capital lmprovement Plan ("CP') has been reorganized based on feedback received from Council, All projects within the CIP are now grouped into the following categories: Public Safefy, Resilience, aad Quality of Life. Furthermore, expenditures required forFY2l4.4 have been built out for projects that have well defined project scopes and viable cost estimales, Moving forward, projects included within the CIP will be accompanied by detailed workplans that speci$r timelines, deliverables, funding strategies, alignment with strategic goals, and potential impacts to the operating budget. Only those well-defined projects ready for action will be incorporated into the CIP. Funding strategies for future years in the five-year CIP are contingent on the policy establishing the threshold value, useful life, and character of the capital assets to be included in the CIP. The FY20 budget assumes a useful life of over five years and a total project cost in excess of $100,000 with exceptions per the direction of Council. The FY20 CIP budget assunes loan proceeds in the amount of $2.75M and an appropriation from working capital in the amount of $580,161. As we analyzn the projects, debt capacity and credit rating implications, we will present a funding strategy on a project by project basis. Conclusion. The proposed budgets are structurally balanccd and provide a responsible allocation ofpublic resourc€s that serves the Village, allowing it to continue to be a safe, resilient and beautiful island paradise. This budget adequately provides for the operational needs ofthe Village, while factoring in increased costs and the demand for even more elevated leveis of service. Challenges can be expected in the coming years and we strive to foster a climate that promotes economic development as well as explore new revenue initiatives beyond ad valorem taxation. Led by the vision of the Council, staff is committed to continually executing strategic goals and providing services that allow for the quality oflife Key Biscayne residents expect and deserve. Page 2 of 114

WlageCowril Michael W. Davey, Mrgur Allison McCorm *k, Vicu Mttyor Luis touttdo Edwad London Brett Mocs Katie Petros lgnacioJ.Scgurcla Village Manager Andrea Agha VLLLAG]E ()IF ]KIEY ]tslSCAYI\]E Office of the Village Manager To: From: Subject: Honorable Mayor and Villagc Councilmembers Date: Andrea Agha, Villagc Manager \l(\^A Fiscal Year 2A19-2020 Tentative Millage, Proposed Budgets for the Ceneral Fund, Special Revenue Funds, Enterprise Funds and Capital Improvement Fund, and Setting Budget Hearing Dates September 10,2019 These accomplishrnerrls arc 0ol without challenges. For the sccond time iu cight years, Village propedy values havc dscrensed. The Miami-Dade Couuty Property Appraiser cortilied s gros$ taxable value of $8,3 10,656,693, rcprrsentin ga2,6o/o dsorease frorn the prior y€ar. With this decrease, the rollcd-back ratc, the millage ratc that would result in the sarne ad-valorem rcvcnue as was levied irt the prior yoor' exclusive of new construction arld improvements; would be 3.1580 rnills; slightly higher than the proposod rnillage rate. Introducfion Since the June 18,2019 budget workshop, we have worked to develop a budget that is reflective ofthe priorities ofthe cornnrunity as has been expressed, Last year, st this stsge in the budget developmcnt processr the significant iuitiatives and projecls that rcquiretl detailed workplans, funding slratcgics, and perforrnance measures included (l) utility undergrounding, (2) stormwater infrastructure, (3) beaoh nourishnent, (4) strategic planning, sca level rise aelaption plan and sustainability plan, and (5) investments in oulture; including the library/art facilitios, and add itional culturfl I programm ing. Utility Undergrounding On February 26, 201 9 the Utility Undergrounding Task Force delivered a recommendation to move forward on undergrounding; and Council voted to proceed. Staffhas since providcd a roadrnap on how lo proc€cd with the project.I)uringthe Village Councilstrategy retreat in May of20l9, Councildetennined developing a funding strategr tbr utility undergrounding rs e top priority. The FY20 budget allocates $400,000 to fund the next steps of this inrpo$ant initiative, including a Village-wide survey and Fkxida Powcr and Light ("FPl,') binding cost €stimatc. The survey will facilitate the essential adaptation planning that would bc necessary to move forward with the project and also provides currsnt geoteohnical and slevation data necessary for resilience planning. Stormwater Infrastru cture Another key initiative necessary to improve Village resiliency is suflicient maintetrance of the existing infi'astructure and improvemenls to the stormwater system pursuant to the Stormwatcr Master Plan. Staff performed an evaluation of the cunent system and has made a recommendation for enhanced maintenance, ln coordination with the Village's third party professional Financial Advisor, a financial analysis was performcd to deternrine tlrc stormwater utility rate required lo fund the recomnrended level of ongoing mainleoanc€. ln addition, as parl of this procqss, thc Village pmvided the rate incrcase required to fund the irnplernentation of the first six yeart of the ten-year plan under a condensed three-year timeline to ntest the expectations of Village residcnts morc quickly. Any rate adjustments may be irtcorporated into lhe FY20 budget for second reading pending public input and Council decision. At $e current stormwater utility rate, the highest level ofservics thrt can be provided is reflected in the FY20 budget as proposed. Beach Nourishment Key Biscayne beachss are recognieed worldwide as a prerniol vacation deslination, The cconomic vitality our b