This item, sponsored by Commissioner Samuelian, was referred to the Finance and Citywide Projects Committee on July 17, 2019, to consider an amendment to the City Code to require the Administration, as part of the analysis accompanying all ordinances and resolutions placed on City Commission agendas, to specifically disclose the fiscal impact associated with the proposed item. 

The intent of this item is to codify best practices and much of the financial information that the Administration already includes in the commission memoranda that accompanies resolutions or ordinances. The ordinance amendment would require the Administration to briefly state the fiscal impacts on the revenues or expenditures of the City (in the current fiscal year and the next fiscal year) in connection with any proposed item, and provides flexibility to the Administration to provide additional information which may be relevant to the item, such as historical data concerning the item at issue, assumptions used in calculating the impact, and other information.

The fiscal impact statement would only be required for items having an impact on revenues or expenditures in excess of $5,000.  In addition, with respect to the vast majority of the City’s contracts, which are awarded pursuant to a previously approved budget, and with respect to any other expenditures that are made pursuant to a previously approved budget, the requirement would be satisfied by a statement of the budget code or funding source being used to cover the item (as the fiscal impact associated with the item would have already been considered, and approved, as part of the budget).

Many public entities throughout the U.S. require a fiscal impact statement as part of the required analysis of legislation.  Although practices vary, the State of Florida, Miami-Dade County, and Broward County, each require a fiscal impact statement to accompany the analysis of proposed legislation. 

The proposed ordinance amendment has been reviewed, and reflects input provided by, the Chief Financial Officer. 

The text of the proposed ordinance amendment is set forth below:

Sec. 2-12. - Meeting procedures and agendas.

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(d) Agenda items.

(1) Item details. Items published in a city commission meeting agenda shall include sufficient detail and information for the city commission and the public to evaluate the items in a reasonable and timely manner and, whenever possible, endeavor to sufficiently advise the city commission and the public of the nature of any requested actions that may be taken on the items.

                                  a.         Fiscal impact statement required.  As part of the commission memorandum that accompanies any ordinance or resolution placed on a city commission meeting agenda (including any resolution calling for a voter referendum on any matter), the city administration shall prepare a written statement, to be included as a stand-alone section of the commission memorandum, briefly describing the estimated or anticipated increase or decrease of the revenues or expenditures of the city associated with the proposed item, if any, for the current fiscal year and the subsequent fiscal year.

b.         To the extent applicable, the fiscal impact statement should include: (i) historical data concerning the revenues or expenditures at issue; (ii) any assumptions, sources of information or methodologies used to estimate the fiscal impact to the city; (iii) an estimate of the staff time or other resources that may be needed to implement the proposed item; (iv) whether the proposed item could be absorbed in the current fiscal year’s budget, or whether an additional appropriation is required to implement the proposed item; (v) whether the fiscal impact in subsequent years (Years 3-5) materially differs from the fiscal impact in the first and second year; (vi) whether the proposed item will involve pension liability, and the estimated costs thereof;  and (vii) any capital requirements or infrastructure constraints associated with the proposed item. 

c.         If the fiscal impact on the revenues or expenditures of the city cannot be determined at the time the proposed item is considered by the city commission, or in cases where the item involves risk factors or other variables that may make it difficult to project the impact on future revenues or expenditures with certainty, the fiscal impact statement shall include a description of the risk factors or variables involved, and the administrative actions that will be required in order to determine the anticipated impact on future revenues and expenditures.  In such cases, the fiscal impact statement should, to the extent possible, use ranges to estimate the impact on revenues or expenditures.  

d.         With respect to proposed agenda items related to the procurement of goods and services, including construction services, that are awarded pursuant to a previously approved budget, or which involve expenditures that are specifically authorized in a previously approved budget, the requirements of this section shall be deemed satisfied by a statement of the budget code or funding source that will be used to cover the proposed item, and the contract amount associated with the proposed item, if any.

e.         If a proposed item has a fiscal impact on revenues or expenditures of the city in the amount of $5,000 or less, the fiscal impact statement shall state that the item involves an estimated fiscal impact of $5,000 or less, and no further information or analysis shall be required.

f.          If a proposed item has no fiscal impact, the statement shall briefly explain the analysis or assumptions for any such conclusion.

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