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96-22115 RESO RESOLUTION NO. 96-22115 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ESTABLISHING THE EXPENDITURE BUDGET FOR THE OCEANFRONT BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 1996/97, AND APPROPRIATING FUNDS FOR SAID BUDGET. WHEREAS, the Mayor and City Commission have created management services districts within the City pursuant to the requirements of Chapter 170, Florida Statutes, to improve the environment for business activities; and WHEREAS, these districts are funded in part through the use of the Municipal Resort Tax; and WHEREAS, the expenditure of City funds requires an appropriation by the Mayor and City Commission. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA as follows: 1. That there be authorized and appropriated $1,980,000 for the management services district or districts, to be known, for funding purposes, as the "Oceanfront Business Improvement District. " 2. That there be authorized and appropriated $327,000 from the Municipal Resort Tax receipts toward the budgets of said Oceanfront Business Improvement District. 3. That the management district or districts comprising the Oceanfront Business Improvement District be created pursuant to the requirements of Chapter 170, Florida Statutes, and that the approval of said district or districts be further confirmed by a special election of the official property owners within the district or districts. September ,1996. PASSED and ADOPTED this 11 thday of Attest: Ro~<f' PC4~ City Clerk C:IWPWIN60IWPDOCSIRESOLUTNIOCEANFRT,DlS " I un L l l-H r 1\ , , By CITY OF MIAMI BEACH- CITY HALL t70C CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. ~33-gG, September 11, 1996 To: Mayor Seymour Gelber and Members of the City Commission Subject: Jose Garcia-Pedrosa W City Manager p .. Business Improvement Districts Budgets From: Administrative Recommendation The Administration recommends that the Mayor and City Commission Adopt the resolution establishing the Oceanfront Business Improvement District Budget for Fiscal Year 1996/97 and to call for the Election on said District. Background The four Business Improvement Districts that currently exist in the City are well beyond the national norms for such Districts. These local districts are small in size and receive a substantial portion of their funding from the City and not from the property owners. In response to those concerns, the Administration began a process of conferring with the districts on reducing their City costs and consolidate. The impetus for these meetings was twofold. The first was a lack of funding available from the City's resort tax to fund the districts in the same manner as previous years. The second was the concern of the duplication of services, highlighted in the audits of the districts, which could be eliminated through the City operating the districts or through district consolidation. Oceanfront Business Improvement District This process began with the submission of budget requests to the Budget Office for the Fiscal 1996/97 Year. This submission was substantially the same as previous years budget requests. The Administration began a series of meetings over the summer with the districts in an effort to reach an agreement on consolidation and reduced funding. The districts were cooperative in this process with the Ocean Drive and Collins A venue Districts agreeing to consolidate their operations into the Oceanfront Business Improvement District with a reduction in City costs of approximately $500,000. The Oceanfront District will be bounded by Fifth Street on the South, 24 Street on the North, the Agenda Item R 1 :r Date '} - 11- '1 ~ Atlantic Ocean on the East, and Ocean Court to 15 Street to the centerline of Collins Avenue and Lincoln Road, the 200 and 300 block of Lincoln Road and the centerline of Collins Avenue north to 24 Street plus the four properties at the intersection of Eight Street and Collins Avenue. This District, which is slightly larger than the combined previous Ocean Drive and Collins Avenue Districts, will require a contribution of 16.5% of its budget to be funded from resort tax. As a part of the services, the new District will provide patrol, street and sidewalk cleaning, and landscape maintenance currently provided by the City, for which service the City will contribute their FY 95/96 baseline cost to the District. The new District has agreed to comply with all of the recommendations of the audit, previously presented to the City Commission, except for the recommendation for the City to manage the District. A copy of the financial model for the new Oceanfront District is attached. Presidents Business Improvement District The other districts, Lincoln Road and Washington Avenue, were not in agreement with the City on a consolidation of their operations into an "L" shaped district extending from Alton Road along Lincoln Road to Washington Avenue and then south on Washington Avenue to Fifth Street, collectively called the "Presidents District". The City desires this consolidation because an additional savings of approximately $100,000 in administrative costs alone would be achieved by reducing the duplication of the administrative overhead in these two undersized districts. An additional $150,000 in savings would be attained by reducing the marketing, retention and realizing cost savings on the services performed by the District and in addition $250,000 would be achieved by eliminating other costs in the District. The Administration submitted a proposed financial model (a copy of which is attached) as a beginning discussion point intended to consolidate these two districts into a larger, more cost effective district which will also reduce the City's costs by approximately $500,000. However, no agreement, even in concept has been reached with these two districts, by the Administration at this time. The Administration proposes no action be taken. Analysis The proposed budgets for the two consolidated districts total $3,500,813. In addition the City will be providing $280,737 in basic services outside of the districts budgets. The total expended in these two districts will total $3,781,550. Of this amount, the districts will provide $1,435,898 and the City will provide $2,315,652. This cost funding will be 38.8% from district provided funds and 61.2% from City provided funds. This represents a cost shifting of 11.2% from the City to the Districts from the fiscal 1995/96 Year. The total savings to the City from the two new combined Districts would be $1,012,923 (see attached chart). Without the proposed consolidated district, the savings from the Oceanfront District would be $512,827, plus the savings that the City will derive from managing the Washington Avenue and Lincoln Road areas. Conclusion As the City can achieve the objectives of the audits of the Districts and more nearly conform to the national average in terms of size and cost, the Mayor and City Commission should adopt the attached resolution confirming the new Oceanfront District. Until and unless there is agreement with the proposed Presidents District, no Commission action is necessary or recommended. 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