573-2010 RDA ResoI ,l
RESOLUTION NOI 573-2010
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS
OF THE MIAMI BEACH REDEVELOPMENT ~ AGENCY
ADOPTING AND APPROPRIATING THE OPERATING
BUDGET FOR THE CITY CENTER REDEVELOPMENT
AREA AND THE ANCHOR SHOPS AND PARKING GARAGE
FOR FISCAL YEAR 2010/11
WHEREAS, the proposed City Center Redevelopment Area Budget has been
prepared to coincide with the overall .City budget process; and
WHEREAS, the proposed City Center Redevelopment Area Budget reflects
anticipated construction project costs in addition to operating and debt service costs for
the fiscal year; and
WHEREAS, the proposed budget for the Anchor Shops and Parking Garage has
been included as a separate schedule to the_ City. Center..Redevelopment .Area Budget,
reflecting projected revenues and operating expenses for the fiscal year; and
WHEREAS, the Executive Director recommends approval of the proposed Fiscal
Year 2010/11. budgets for the City Center Redevelopment Area as well as for the Anchor
Shops and Parking Garage; and
NOW, THEREFORE, BE IT DULY RESOLVED.. BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY, that the Chairperson
and Members hereby adopt and appropriates the operating budget for the City Center.
Redevelopment Area, and the Anchor Shops and Parking Garage for Fiscal Year 2010/11,
attached as Exhibit A hereto.
PASSED AND ADOPTED THIS SEPTEMBER 20T" DAY OF 2010.
HAIRPE S N
ATTEST:
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SECRETARY
JMG:HF:KB:JC:KOB
T:WGENDA~20101sep2010RegularlRDA BUDGET RESO 2010_11.doc
APPROVED AS TQ
FORM & LANGUAGE
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MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting and appropriating
the operating budget for the City Center Redevelopment Area and the Anchor Shops and Parking Garage for Fiscal
Year 2010/11.
Intended Outcome Su
Improve the City's overall financial health and maintain overall bond rating
supporting Data (Surveys, Environmental Scan, etc.):
One of the City's Key Intended Outcomes is to ensure well designed and well maintained capital projects and
infrastructure. In keeping with this goal, approximately 9 percent or $3.3 Million of the proposed Budget for City Center
is being allocated towards maintenance of capital projects funded by the RDA. Additionally, according to the 2009
Community Survey, arts, culture and the availability of public parking were among the key factors driving overall
satisfaction levels. Major projects being funded through the RDA address these very priorities, including the New World
Symphony Campus Expansion, and the recently completed Pennsylvania Avenue Gara a and Lincoln Park.
Issue•
Should the RDA Board adopt the proposed operating budget for the City Center Redevelopment Area and the Anchor
Shops and Parking Garage for Fiscal Year 2010/11?
Item Summa /Recommendation:
The proposed budget for the City Center Redevelopment Area for Fiscal Year 2010/11 has been prepared to coincide
with the overall City budget process, and is being presented to assist in providing a comprehensive overview of the
district. Additionally, the revenues and expenses associated with the operations of the Anchor Shops and Parking
Garage are presented as a separate schedule so as to eliminate any perception that proceeds from the Facility's
operations are pooled with TIF and other Trust Fund revenues. Also, subject to the finalization of the FY 2008/09 tax
roll by the County Tax Assessor, the proposed RDA Budget includes an allowance for the County's anticipated
adjustment (reduction) for overpayment of TIF during FY 2008/09 (estimated at $1.2 Million forthe City's Share and $1
Million for the County's share), representing a total decrease in TIF revenues of $2.2 Million. In order to address the
existing and future obligations of the Redevelopment Area, it is recommended that the Redevelopment Agency adopt
the attached Resolution which establishes the operating budget for the City Center Redevelopment Area and the
Anchor Shops and Parking Garage for FY 2010/11.
Advisory Board Recommendation:
Financial Information:
Kent Bonde, Jose Cruz and Kathie Brooks
Sign-Offs:
Budget Assistant Executive
Director Director Director
~~ fZ. _
T:WGENDA\2d4btsep20\Regula DA Budget.SU .doc
m MIAMIBEACH °GE~ p„E-~
City Clerk's Office Legislative Tracking:
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
To: Chairperson and Members of the Miami Beach Redevelopment Agency
FROM: Jorge M. Gonzalez, Executive Director
DATE: September 20, 2010
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI
BEACH REDEVELOPMENT AGENCY, ADOPTING AND APPROPRIATING THE
OPERATING BUDGETS FOR THE CITY CENTER REDEVELOPMENT AREA
AND THE ANCHOR SHOPS AND PARKING GARAGE FOR FISCAL YEAR
2010/11
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The proposed budget for the City Center Redevelopment Area (RDA) for Fiscal Year
2010/11 has been prepared to coincide with the overall City budget process, and is being
presented today to assist in providing a comprehensive overview of the district. Please refer
to the attached Exhibit A for the proposed budget details.
Revenues
Following a period of extensive growth spanning the existence of City Center, the taxable
value in the Redevelopment Area is expected to decline for a second year. This is largely
due to the continuing deterioration of the economy, coupled with weakness in the real estate
market. Based on the 2009 Certificate of Taxable Value from the Property Appraiser's
Office, the value of property in City Center declined by 7% in FY 2009/10. Based on the
Preliminary Tax Increment notice received from the County on June 30, 2010, Property
values are anticipated to drop an additional 1.2% in FY 2010/11. The decline in tax base
over the last two years required the City and the County to propose increases in their
respective millage rates in order to maintain minimum levels of service. Based on the
proposed millage rates (City - 6.2155 mills/County - 5.4275 mills), the RDA anticipates
receiving $34.4 Million in TIF revenues. However, as in previous years, the City also
anticipates receiving correspondence from the County, advising of the finalization of the tax
roll for the prior year, which in the case of FY 2008/09, is anticipated to reflect a decrease
from the preliminary valuation for the same year. Until this final tax roll figure is available,
the proposed Budget includes an allowance factor of $1.2 Million to impact the City's share
of TIF and a $1 Million adjustment to impact the County's share.
Additional sources of revenue include an estimated $3.6 Million in Resort Tax contributions;
a'/2 mill levy in the amount of $1.2 Million to be set aside for the Children's Trust pursuant to
an Interlocal Agreement, dated August 16, 2004 between the RDA, the City of Miami Beach
and Miami-Dade County; and an estimated $200,000 in interest income.
September 20, 2010
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2010/11
Page 2 of 3
Expenditures
Project-related expenses account for approximately $21.5 Million, which includes $3 Million
to be allocated for community policing initiatives in City Center to continue to provide
enhanced levels of staffing and services throughout the area, and $3.3 Million for
maintenance of RDA capital projects. On-going and planned capital projects in City Center
are projected to account for $136,758 in the FY 2010/11 Budget and generally include
allocations for directory signs in the City Center right-of-ways as well as improvements to
Lincoln Road between Collins and Washington Avenue. Additionally, pursuant to the Grant-
in-Aid Agreement between the City and the New World Symphony (NWS), executed on July
23, 2008, the RDA is required to fund a $15 Million Grant-in Aid obligation in connection with
the construction of the NWS Campus Expansion project. Previously funded projects that are
underway in City Center include construction of streetscapes throughout City Center;
construction of Collins Park, including the restoration of the Rotunda and the under-
grounding of utilities surrounding the Park; implementation of improvements to Lincoln Road
between Collins and Washington Avenues; construction of the park adjacent to the NWS
Campus Expansion; and, planning and design of landscaping improvements to the Botanical
Garden.
Administrative Expenses .total $1,059,197, comprising of a management fee of $988,563
which is allocated to the General Fund to pay for direct and indirect staff support for the
RDA, and $70,634 for actual operating expenses. It should be noted that the Management
Fee allocation is reflective of actual city resources applied to the operation of the RDA, as
supported by the RSM McGladrey Cost Allocation Study dated July 20, 2009 and updated
August 6, 2010. It should further be noted that Administrative and Operating expenses only
account for 2:8 percent of the total RDA budget.
The current combined debt service on the 2005 Series Bonds and the Parity Bonds
accounts for approximately $8.4 Million annually. City Center also continues to fund debt
service payments on the portion of the Gulf Breeze Loan used to pay for the Bass Museum
expansion and renovation and the portion of the Sunshine State Loan Program used for
Lincoln Road improvements, which collectively account for approximately $1.6 Million
annually. These payments were previously made from water, sewer, storm water, gas and
resort tax proceeds.
Reserve line item expenditures include those items that, pursuant to the existing Bond
Covenants, may only be expended once the annual debt service obligations have been met.
These include the County's administrative fees, equivalent to 1.5% of its respective TIF
payment; the contribution to the City's General Fund, equivalent to 1.5% of the City's share
of its TIF payment; and the remittance of the '/ mill tax levy back to the Children's Trust.
The Recently reconciled City Center Operating Fund is anticipated to have a deficit of $3.4
million as of September 30, 2010, although this is offset by surplus non-tax increment funds;
as a result the overall City Center Redevelopment Area Funds is not in deficit. The RDA
anticipates remitting $2.9 million towards paying down the prior year negative balance in the
RDA TIF fund.
Anchor Shops and Parking Garage
The revenues and expenses associated with operations of the Anchor Shops and Parking
Garage are presented as a separate schedule in order to eliminate any perception that
proceeds from the facility's operations are pooled with TIF and other Trust Fund revenues.
Garage revenues are projected at $2.4 Million, with operating expenses (including
September 20, 2010
Redevelopment Agency Memorandum
Operating Budget for City Center for FY 2010/11
Page 3 of 3
depreciation, and contractual revenue-sharing obligations with Loews), of approximately $2
Million. The retail operation is expected to generate $714,000 in revenues, with operating
expenses associated with the retail management .contract and related reimbursable
expenditures estimated at approximately $95,000. Additionally, based on the previously
referenced Cost Allocation Analysis, a Management Fee line item is included in the FY
2010/11 operating expenses to address certain city-related costs associated with the
operation of the facility, which were not included as part of the garage or retail operating
budgets..
CONCLUSION
In order to address the existing and future obligations in the Redevelopment Area, it is
recommended that the Redevelopment Agency adopt the attached Resolution which
establishes the operating budgets for the City Center Redevelopment Area and the Anchor
Shops and Parking Garage for FY 2010/11.
JMG/HF/KB/KOB
T: WGEN DA12010~sep201Reg ular~RDABudgetmemo2010_11.doc
Exhibit "A"
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Proposed FY 2010/11 Operating Budget
Budget
FY 07108 FY 08109 FY 09/10 FY 09110 FY 10!11 Variance
Actual Actual Budget Projected Inc/(Dec) Budget From FY 09/10
Revenues and Other Sources of Income
Tax Increment -City Millage 6.2155 .$17,690,977 $18,345,335. $16,946,393 $16,946,393 $0 $18,377,816 $1,431
423
Proj Adjustment to City Increment for FY 2008 Tax Roll (2) (472,472) (1,111,989) (1,178,873) (1,178,873) 0 (1,200,000) ,
($21
127)
Tax Increment -County Millage 5.4275 14,325,453 15,808,032 14,496,500 14,496,500 0 16,047,879 ,
$1
551
379
Proj Adjustment to County Increment for FY 2008 Tax Roll (3) (368,517) (961,565) (954,605) (954,605) 0 (1,000,000) ,
,
($45
395)
50% Contribution from Resort Tax
'
' 3,250,000 3,908,668 3,460,000 3,460,000 0 3,578,067 ,
$118
067
1/2 Mill Children
s Trust Contribution (4) 1,564,051 1,366,290 1,498,222 1,498,222 0 1,225,249 ,
($272
973)
Interest Income 1,980,000 56,626 385,057 385,057 0 200,000 ,
($185
057)
Fund Balance Reallocation: (Non-TIF) 4,489,766 0 0 0 0 0 ,
$0
Other Income/Adjustments: 0 1,344 0 0 0 0 0
TOTAL REVENUES $42,459,258 $37,412,741 $34,652,694 $34,652,694 $0 $37,229,011 $2,576,317
AdmiNOperating Expenses
Management fee (salaries & benefits) $414,000 $464,775 $489,564 $489,564 $0 $988,563 $498
999
Advertising & promotion 1,000 0 1,000 0 (1,000) 0 ,
($1
000)
Postage, printing ~ mailing 770 1,420 3,500 4,120 620 4
123 ,
$623
Office supplies 8 equipment 1,145 2,941 3,000 910 (2,090) ,
2,900 ($100)
Meetings & conferences 4,000 1,799 4,000 1,350 (2,650) 1
351 ($2
649)
Dues 8 subscriptions 1,101 0 1,000 1,260 260 ,
1
260 ,
$260
Audit fees
Professional & related fees 8,500
59,484 0
57,157 8,500
55,000 9,000
49,000 500
(6,000) ,
9,000
47,000 $500
($8
000)
Miscellaneous expenses
Total AdmiNOperating Expenses 10,000
$500,000 4,223
$532
315 10,000
$575
564 5,000
$560
204 (5,000)
1 5,000 ,
(5,000)
Project Expenses , , , ($
5,360) $1,059,197 $483,633
Community Policing
Capital Projects Maintenance (5) $2,577,000 $2,693,942 $2,871,494 $2,590,000 ($281,494) $3,052,215 $180,721
NWS ProjecULincoln Park Complex Contingency 2,195,000
0 3,456,896
0 3,050,775 3,249,076 198,301 3,332,673 $281,898
NWS Project -Grant-in-Aid
0
0 3,060,189 0 (3,060,189) 0 ($3,060,189)
Transfer to Capital Projects (6)
24,765,746
20,319,813 0
13,170,050 0
13,170,050 0
0 15,000,000
136
758 $15,000,000
(13
033
292)
Total Project Expenses
Reserve and Debt Service Obligations $29,537,746 $26,470,651 $22,152,508 $19,009,126 ($3,143,382) ,
$21,521,646 ,
,
($630,862)
Debt Service Cost - 2005 + Parity Bonds $8,375,554 $8,376,443 $8,393,267 $8,393,267 $0 $8
393
254 ($13)
Current Debt Service -Lincoln Rd Project (7) 1,068,148 1,205,288 1,086,961 1,086,961 0 ,
,
$1
094
176 $7
215
Current Debt Service -Bass Museum (8) 506,443 506,108 506,531 506,531 0 ,
,
505
859 ,
($672)
Reserve for County Admin Fee (9)
Reserve for CMB Contribution (10) 209,354 222,697 203,128 203,128 0 ,
225,718 $22,590
Reserve for Children's Trust Contribution (11) 258,278
1,564,051 258,500
1,366
290 236,513
1
498
222 236,513
1
498
222 0 257,667 $21,154
Repayment-Prior Yr Fund Balance
439,684 ,
0 ,
,
0 ,
,
3,158,742 0
3,158,742 1,225,249
2
946
246 ($272,973)
2
946
246
Total Reserve and Debt Service Obligations $12,421,512 $11,935,326 $11,924,622 $15,083,364 $3,158,742 ,
,
$14,648,168 ,
,
$2,723,546
TOTAL EXPENSES AND OBLIGATIONS $42,459,258 $38,938,292 $34,652,694 $34,652,694 $0 $37,229,011 $2,576,317
REVENUES -EXPENSES $0 ($1,525,551) ($p) ($p) $0 $0 $0
Note #1 Based on Preliminary Tax Increment Adjustment worksheet received from MDC on 6/30/10
Note #2 Adjustment for final FY 08/09 Tax Roll -Estimate based on prior years
Note #3 Adjustment for final FY 08/09 Tax Roll -Estimate based on prior years
Note #4 1/2 Mill Children's Trust pmt to RDA per Interlocal
Note #5 Separate detail for capital maintenance items from PW
Note #6 Reflects appropriations for CIP & PW projects
Note #7 Payment of Lincoln Road current debt service on Sunshine State Loan
Note #8 Payment of Bass Museum current debt service on Gulf Breeze Loan
Note #9 County admin fee @ 1.5% of County's increment revenue
Note #10 CMB TIF Contribution @ 1.5% of City's increment revenue
Note #11 1/2 mill Children's Trust Contribution
Proposed FY 2010/11 Anchor Shops and Parking Garage (16th Street Parking Garage) Operating Budget
Revenues:
Parking Operations
Retail Leasing
Interest Pooled Cash
TOTAL REVENUES
Operating Expenses:
Parking Operations
Garage Use Fee (To Loews) (1)
Retail Leasing Management Fee
Management Fee (Garage Ops)
Reserve Future Capital -Parking Operations
Reserve Future Capital -Retail Operations
TOTAL EXPENSES
NET
FY 07/08 FY 08/09
Actual Actual
$2,637,917 $2,585,000
0 683,779
944,549 46,100
$3,582,466 $3,314,879
$1,753,460 $1,700,768
274,400 342,000
53,087 55,000
0 0
610,057 563,832
891,462 653,279
$3,582,466 $3,314,879
$0 $0
FY 09/10
Budget (1)
$2,632,000
696,489
46,100
$3,374,589
$1,802,864
355,208
60,000
158,129
375,922
622,466
$3,374,589
Budget.
FY 09/10 FY 10111 Variance
_ Projected Inc/(Dec) Budget From FY 09/10
$2,501,135 ($130,865) $2,368,000 ($264,000)
699,767 3,278 714,150 17,661
46,077 _ (23) _ 39,216 (6 884)
$3,246,979 ($127,610) $3,121,366 ($253,223)
$1,496,062 ($306,802)
314,612 (40,596)
61,190 1,190
158,129 0
560,423 184,501
656,563 34,097
$3,246,979 ($127,610)
$0 $0
$1,704,823 ($98,041)
281,288 (73,920)
95,433 35,433
189,074 30,945
219,415 (156,507)
631,333 8,867
$3,121,366 ($253,223)
$0 $0
(1) -Based on 28% of annual gross parking revenuues in excess of $1,390,000. (Includes contingency amount)
F:1EAl11RDAV3DA Budget1FY00101Preliminery Ciy Center Budget 00/16/09