2009-27209 ResoRESOLUTION NO. 2009-27209
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2009/10 BUDGETS
FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET
PARKING GARAGE OPERATIONS; CITY'S SHARE OF THE SHORTFALL
CONTRIBUTION REQUIREMENT FOR THE 5th AND ALTON PARKING
GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP), AND THE
INFORMATION AND COMMUNICATIONS TECHNOLOGY FUND -DEBT
SERVICE.
WHEREAS, expenses related to tourism, monitoring and auditing payments, and receipt
of Resort Taxes to the City, will be paid by the Resort Tax Fund; and
WHEREAS, the budget for the public parking garage located at 7th Street and Collins
Avenue (the 7th Street Parking Garage) provides funding for operating expenses, debt service,
and a reserve for renewal and replacement; and
WHEREAS, the budget for the public parking garage operations located at 5T" and Alton
provides funding for the City's share of the shortfall contribution requirements; and
WHEREAS, the Art in Public Places (AiPP) fund is used for the commission or
acquisition of works of art, conservation and maintenance of works of art, research and
evaluation of works of art, printing and distribution of related materials, and administration; and
WHEREAS, the City's General Fund budget includes a transfer of $800,000 to the
Information and Communications Technology Fund, of which $586,593 is for debt service and
the balance is appropriated in the Capital budget.
NOW, THEREFORE, BE IT DULY RESOLVED BY THEMAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby adopts the FY 2009/10 budgets for Special Revenue Funds as listed below:
SPECIAL REVENUE APPROPRIATIONS FY 2009/10
Resort Tax $38,888,000
7th Street Garage Operations 2,070,000
5th & Alton Garage-City's Share of Shortfall 162,511
Art in Public Places 2,592,324
Information and CommunicationsTechnology Fund -Debt Service 586,593
Total $44,299,428
PASSED and ADOPTED this 24th day of September. 2009.
MAYOR
ATTEST BY: Matti Herrera Bowe~D~~ ..
FORM ~ LANGUAGE
Gi;-~ CQ~ _ ~ FOR EXECUT10N
CITY LERK G
Robert Parcher ~ ~ 1~ 6_I
~~
•ty Date
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting the Fiscal Year (FY)
2009/1009 budgets for Special Revenue funds for Resort Tax; 7th Street Garage Operations; City's Share of the
Shortfall Contribution Requirements for the 5th and Alton Parking Garage Operations; Art in Public Places (AiPP); and
the Information and Communications Technology Fund -Debt Service.
~cey Intended outcome Supported:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial Health and maintain overall bond rating
Increase Community Satisfaction with City Services
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2009 community survey, quality of life
in the City is rated highly, the City is seen as an `excellent' or'good' place to live, work, play or visit, and over'/.'s of
residents would recommend it to others as a place to live. Impressively, 31 of the residential tracking questions from
2007 experienced increases in each of the areas measured by an overall average of approximately 7.0%; and 28 of
32 business tracking questions experienced increases measured by an overall average of approximately 8.8%.
Relevant findings were: arts and culture was one of services identified that the city should strive not to reduce; and
availability of public parking was one of the services identified as key drivers of overall satisfaction levels.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2009/10 budgets for Special
Revenue funds for Resort Tax; 7th Street Garage Operations; City's Share of the Shortfall Contribution Requirements
for the 5th and Alton Parking Garage Operations; Art in Public Places (AiPP); and the Information and
Communications Technology Fund -Debt Service?
Item Summa /Recommendation:
The Administration recommends adopting the attached resolution which adopts the FY 2009/10 budgets for Special
Revenue funds for Resort Tax; 7th Street Garage Operations; City's Share of the Shortfall Contribution Requirements
for the 5th and Alton Parking Garage Operations; Art in Public Places (AiPP); and the Information and
Communications Technology Fund -Debt Service.
Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: ~
$38,888,000
Resort Tax
2
2,070,000
7th Street Gara e O erations
3
162,511 5 & Alton Garage-City's Share of
Shortfall Contribution Re uirement
4
2,592,324
Art in Public Places
5
586,593 Information & Communications
Technolo Fund-Debt Service
OBPI Total
$44,299,428
Clerk's Office
Department Director I Assistant City Manager City Manager
~- 1 I ~l V 1~ g EAC H AGENDA ITEM
DATE ' Z -0
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, voww.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez
City Manager
DATE: September 24, 2009
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2009/10 BUDGETS
FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET
PARKING GARAGE OPERATIONS; CITY'S SHARE OF THE SHORTFALL
CONTRIBUTION REQUIREMENT FOR THE 5th AND ALTON PARKING
GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP), AND THE
INFORMATION AND COMMUNICATIONS TECHNOLOGY FUND -DEBT
SERVICE.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
ANALYSIS
The City currently offers certain programs and activities not supported through the general
operating budget, but by outside agency grants and self-supporting user fee programs. Funding
from these sources will be utilized as follows:
Resort Tax - $38,888,000
This fund accounts for the collection of the special tax levied citywide on food, beverage and
room rents used to support tourism related activities. This function, which operates under the
direction of the Finance Department and the Office of Internal Audit, is responsible for ensuring
that hotels, restaurants, bars and other establishments which serve food and beverages for
consumption on its premises, comply with Section 5.03 of the City Charter, as amended, as it
related to the reporting, and collection of resort taxes to the City.
An allocation for "operations" provides for all collection and audit expenses associated with
administering the Resort Tax function and are charged directly to this Special Revenue Fund.
Included in this allocation is funding for seven (7) FTE positions and associated operating
support totaling approximately $1,153,235.
City Commission Memorandum
Resolution Adopting FY 2009/10 Special Revenue Budgets
September 24, 2009
Page 2
The allocation to the General Fund for Fiscal Year 2009/10 of approximately $22.5 million pays
for tourist related services and costs provided or managed by General Fund Departments. This
funding supports public safety programs including our ocean rescue, police services on Lincoln
Road, Ocean Drive/Lummus Park, Collins Avenue, Washington Avenue, ATV officers,
Boardwalk security, special traffic enforcement and special event staffing; and fire rescue units
in tourist and visitor areas as well as special event support services. The funding also supports
code compliance services to respond to evening entertainment areas and for special events;
provides for a portion of the operational costs of the Tourism and Cultural Development
Department; and provides a contribution to the Cultural Arts Council beyond their annual
interest allocation from the investment of City funds.
The Fiscal Year 2009/10 budget also includes an allocation to the Greater Miami Convention
and Visitors Bureau (GMCVB) of approximately $5.0 million, $1.5 million for debt service, $1.5
million to the Miami Beach Visitor and Convention Center (VCA), $100,000 for a local Miami
Beach marketing campaign, to be augmented with funds from the GMCVB, the VCA, and the
Cultural Arts Council (CAC), $100,000 for the January 2010 Super Bowl, and a $85,685
contingency for other Resort Tax eligible expenses such as: special events, protocol, and
festivals.
The proceeds of the additional one percent (1 %) tax are used as follows. Fifty percent of the
amount earned is committed to the payment of a portion of the debt service on the Miami Beach
Redevelopment Agency -City Center/Historic Convention Village Bonds. These bonds were
used for the development, improvement and construction of certain public areas including a
portion of the Cultural Center facilities located within the City Center District.
The 1% budget also reflects the revised allocation method for the Qualify of Life funding, which
includes the arts, approved by the Finance and Citywide Projects Committee on February 18,
2004. Effective October 1, 2005, the remaining fifty percent is used to fund Quality of Life
capital projects in North Beach, Middle Beach and South Beach as well as various art and
cultural programs or the maintenance and enhancement of Miami Beach's tourist related areas.
Please see Attachment "A" for the revenue and expenditure detail budget.
7th Street Garage - $2,070,000
The Parking Department is responsible for the collection of the revenues in this garage which
will be used to pay associated operating expenses and debt service. The operating budget is
required to cover operating expenses, debt service, and reserve for replacement. In the event
of any shortfall in projected revenues, the difference shall be made up by funds from excess
parking revenues.
Operating Expenses $1,236,320
Debt Service 790,297
Reserve -Renewal & Replacement 43,383
Total $2,070,000
City Commission Memorandum
Resolution Adopting FY 2009/10 Special Revenue Budgets
September 24, 2009
Page 3
5th and Alton Garage - $162,511
The 5t" and Alton Garage a.k.a. "Potamkin Garage" is a joint venture development between the
City of Miami Beach (City) and Potamkin/Berkowitz (Developer) where a condominium will be
established wherein the City and Developer shall contribute 49% and 51 %, respectively, to the
operating expenses of the parking garage and also share profits and losses consistent with the
aforementioned distribution. The Parking Department is responsible for the collection of the
revenues in this garage. In the event of any shortfall, the City's portion shall be made up by
funds from excess parking revenues.
Revenues
Transfer from FY 2009/10 Parking Operations Budget $162,511
Expenses
City's Share of Shortfall Contribution Requirement $162,511
Art in Public Places (AiPP) - $2,592,324
The Art in Public Places (AiPP) Ordinance (Ordinance No. 95-2985) was adopted in 1995. The
ordinance was created to "enhance the aesthetic environment of the City of Miami Beach by
including works of art on public property within the City and in City construction projects." The
AiPP Ordinance was amended in May 2004 to clarify the definition of terms for eligible
construction projects for funding as well as the policy and procedures for appropriations. The
AiPP Guidelines were also adopted by the City Commission at that time.
The AiPP program is funded by 1 %2 % of all hard costs of City projects, including new
construction, additions, and costs for construction of joint private/public projects. The fund is
used for the commission or acquisition of works of art; conservation and maintenance of works
of art; research and evaluation of works of art; printing and distribution of related materials; and
administration.
Revenues
Prior Year Capital Appropriation $2,463,301
Transfer from FY 09/10 Capital Budget Appropriation 129,023
$2,592,324
Expenses
Administration $96,394
AiPP FY 2009/10 Projects 1,006,453
Reserve for Future Projects 1,489,477
$2,592,324
City Commission Memorandum
Resolution Adopting FY 2009/10 Special Revenue Budgets
September 24, 2009
Page 4
Information and Communications Technology Fund -Debt Service - $586,593
The City's General Fund budget includes a transfer of $800,000 to the Information and
Communications Technology Fund. Of this amount, $586,593 is for debt service and the
balance is appropriated in the Capital budget. The annual debt service payment includes the
following projects: City's WiFi - $332,306, Storage Area Network (SAN) - $135,651, Enterprise
Uninterrupted Power Supply (UPS) and Generator - $26,814, and Public Safety Voice Over IP
(VOIP) - $91,822.
CONCLUSION
The attached Resolution adopting funding for FY 2009/10 budgets from these sources is vital to
the continuation of these projects and activities provided by the City.
JMG:KGB:JC
Attachment A
CITY OF MIAMI BEACH
PROPOSED FISCAL YEAR 2009/10 RESORT TAX FUND BUDGET
FY 07/08 Actual FY 08/09 Budget FY 08!09 Proj InG(Dec) FY 09/10 Budget Budget Variance
2% Revenues:
Resort Tax $ 31,177,551 $ 31,817,000 $ 31,180,000 $ (637,000) $ 31,180,000 $ (637,000)
Special Assessment-North Shore 292,584 255,600 320,000 64,400 253,000 (2,600)
Special Assessment-Lincoln Road 596,033 151,600 345,000 193,400 335,000 183,400
Interest Income 203,860 165,000 200,000 35,000 200,000 35,000
Registration Fees, Filing Fees & Misc. 10,955 3,000 0 (3,000) 0 (3,000)
Total 2% Revenue $ 32,280,983 $ 32,392,200 $ 32,045,000 $ (347,200) $ 31,968,000 $ (424,200)
2% Expenditures:
Personnel Costs:
Salaries 8 Wages $ 167,668 $ 175,061 $ 234,040 $ 58,979 $ 241,689 $ 66,628
Health, Life & Dental Insurance 7,289 11,219 11,219 0 11,219 0
Pension Contributions & Other Benefits 72,940 62,515 67,094 4,579 85,879 23,364
Total Personnel Costs $ 247,897 $ 248,795 $ 312,353 $ 63,558 $ 338,787 $ 89,992
Operating Costs:
Professional Services $ - $ 10,000 $ 10,000 $ (O) $ 10,000 $ (0)
Intemal Audit/Resort Tax Auditors' Exp. 642,578 693,057 694,889 1,832 706,632 13,575
Telephone 851 1,500 1,500 0 1,500 0
Postage 20 500 500 0 7,300 6,800
Administrative Fees 26,450 26,450 26,450 0 26,450 0
Rent-Building & Equipment 230 3,600 3,600 0 3,600 0
Printing 100 100 100 0 100 0
Office Supplies 651 750 750 0 750 0
Other Operating Expenditures 1,237 1,000 1,000 0 1,000 0
Local Mileage 0 50 50 0 50 0
Training 0 1,000 1,000 0 1,000 0
Intemal Service -Central Service 12,959 13,570 13,570 0 12,529 (1,041)
Intemal Service -Property Management 6,022 9,736 9,736 0 1,802 (7,934)
Intemal Service -Communications 4,280 4,738 4,738 0 11,120 6,382
Internal Service -Self Insurance 13,640 14,966 14,966 0 14,898 (68)
Intemal Service- Computers 10,327 11,132 11,132 0 13,299 2,167
Intemal Service -Prop. ManagemenUElectricel 2,389 2,956 2,956 0 2,418 (538)
Total Operating Costs $ 721,734 $ 795,105 $ 796,937 $ 1,832 $ 814,448 $ 19,343
Total 2% Operating Expenditures $ 969,631 $ 1,043,900 $ 1,109,290 $ 65,390 $ 1,153,235 $ 109,335
2% Other Uses:
Contribution to VCA $ 1,504,293 $ 1,527,216 $ 1,496,640 $ (30,576) $ 1,496,640 $ (30,576)
Contribution to Bureau 4,968,245 5,627,544 5,627,544 0 5,000,000 (627,544)
Marketing 126,467 400,000 200,000 (200,000) 100,000 (300,000)
Super Bowl 0 0 0 0 100,000 100,000
Debt Service -North Shore 975,100 975,100 975,100 0 1,014,000 38,900
Debt Service -Gulf Breeze 553,000 553,000 553,000 0 553,000 0
Contingency 0 400,000 100,000 (300,000) 85,685 (314,315)
Transfer to Capital Projects 264,030 0 0 0 0 0
General Fund Contribution 20,696,310 21,865,440 21,865,440 0 22,465,440 600,000
Total 2% Other Uses $ 29,087,445 $ 31,348,300 $ 30,817,724 $ (530,576) $ 30,814,765 $ (533,535)
Net 2% $ 2,223,907 $ 0 $ 117,986 $ 117,986 0 $ 0
1 % Revenues:
Resort Tax $ 6,922,709 $ 7,011,000 $ 6,920,000 $ (91,000) $ 6,920,000 $ (91,000)
Total 1% Revenue $ 6,922,709 $ 7,011,000 $ 6,920,000 $ (91,000) $ 6,920,000 $ (91,000)
1% Excenditures:
Other Designated Expenditures
South Beach -Quality of Lffe Capital $ 865,339 $ 876,375 $ 865,000 $ (11,375) $ 865,000 $ (11,375)
Middle Beach -Quality of Life Capital 865,339 876,375 865,000 (11,375) 865,000 (11,375)
North Beach -Quality of Life Capital 865,339 876,375 865,000 (11,375) 865,000 (11,375)
Arts 865,339 876,375 865,000 (11,375) 865,000 (11,375)
Total 1% Other Uses $ 3,461,355 $ 3,505,500 $ 3,460,000 $ (45,500) $ 3,460,000 $ (45,500)
Debt Service - TIF Bonds $ 3,461,355 $ 3,505,500 $ 3,460,000 $ (45,500) $ 3,460,000 $ (45,500)
Total 1% Expenditures $ 6,922,709 $ 7,011,000 $ 6,920,000 $ (91,000) $ 6,920,000 $ (91,000)
Net 1% $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Total 1% and 2% Revenues $ 38,100,260 $ 38,828,000 $ 38,100,000 $ (728,000) $ 38,100,000 $ (728,000)
Total Resort Tax Revenues: $ 39,203,692 $ 39,403,200 $ 38,965,000 $ (438,200) $ 38,888,000 $ (515,200)
Total Resort Tax Expenditures: $ 36,979,785 $ 39,403,200 $ 38,847,014 $ (556,186) $ 38,888,000 $ (515,200)
Net $ 2,223,907 $ 0 $ 117,986 $ 117,986 0 $ (O)