581-2012 RDA Reso RESOLUTION NO. 581-2012
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY ADOPTING
AND APPROPRIATING THE FIRST AMENDMENT TO THE
FISCAL YEAR 2010/11 OPERATING BUDGET FOR THE CITY
CENTER REDEVELOPMENT AREA AND THE ANCHOR
SHOPS AND PARKING GARAGE FOR ITEMS THAT ARE
OVER-BUDGET; AND, RETROACTIVELY ADOPTING AND
APPROPRIATING THE BUDGET FOR THE PENNSYLVANIA
AVENUE SHOPS AND PARKING GARAGE FOR FISCAL YEAR
2010/11.
WHEREAS, the City Center Redevelopment Area Budget for Fiscal Year 2010/11
was prepared and adopted with the overall City budget by detailed line item on September
20, 2010; and
WHEREAS, the Administration had completed an analysis of revenues and
expenses for the fiscal year ended September 30, 2011 for the City Center Redevelopment
Area; the Anchor Shops and Parking Garage and the Pennsylvania Avenue Shops and
Parking Garage, reflected in Exhibit A attached hereto;
WHEREAS, although, overall, the actual expenditures for City Center
Redevelopment Area Budget for Fiscal Year 2010/11 are below the adopted budget;
certain expenditure categories are over budget, thereby requiring a budget amendment as
the budget was adopted at a detailed level; and
WHEREAS, the Pennsylvania Avenue Garage and Shops opened during Fiscal
Year 2010/11. Revenues and expenses for the facility were not adopted as part of the
Fiscal Year 2010/11 Budget; and
WHEREAS, during fiscal year 2010/11, the Pennsylvania Avenue Parking Garage
generated $478,583 in revenues and incurred $394,068 in related operating expenses for
the facility; and
WHEREAS, in order to address instances where actual expenditures for line items
exceeded.budget for the reasons described in the related commission memorandum, the
Executive Director recommends adopting a First Amendment to the FY 2010/11 Operating
Budget for the City Center Redevelopment Area and the Anchor Shops and Parking
Garage as detailed in and retroactively adopting the Budget for the Pennsylvania Avenue
Shops and Garage for FY 2010/11.
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 appropriate the first amendment to the Fiscal Year
2010/11 operating budget for the City Center Redevelopment Area, and the Anchor Shops
and Parking Garage for the items that are over budget; and, retroactively adopting and
appropriating the budget for the Pennsylvania Avenue. Shops and Garage for FY 2010/11
as follows:
Table 1. City Center RDA Fiscal Year 2010/11
Additional Revenue Appropriation
'/z Mill Children's Trust Contribution $249,581
Additional Expenditure Appropriation
Children's Trust Contribution $249,581
-Management Fee $750
Professional (Legal) Fees $23,903
Debt Service Cost 2005+ Parity Bonds $104,833
Anchor Shops and Parking Garage Fiscal Year 2010/11
Additional Expenditure Appropriation
Garage Use Fee to Loews $78,837
Renewal and Replacement 1 $96,274
Table 2. Pennsylvania Ave. Shops and Parking Garage Fiscal Year
2010/11
Revenues
-Parking Operations $478,583
Total Revenues $478,583
Expenditures
-Parking Operations $300,727
-Parking Base Fee $30,073
-Garage Ground Lease $23,552
-Garage Management Fee $39,716
Total Expenses $394,068
Net $84,515
PASSED AND ADOPTED THIS 11'" DAY OF JANUARY 2012.
AAnnr AIR E SON
ATTEST: �P`v.` •"•'
Z APPROVED AS TO
0� � G� � � FORM 8 LANGUAGE
INCORP ORATED: FOR EXECUTION
SECRETARY
26� �� i Attome Date
JMG:HF:KB:JC:KOB � '
MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting the First
Amendment to the FY 2010/11 Operating Budgets for the City Center Redevelopment Area, the Anchor Shops and
Parking Garage and adopting the Budget for the Pennsylvania Avenue Shops and Garage for FY 2010/11.
Key Intended Outcome Supported:
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 50 percent of actual expenditures in FY 2010/11 were allocated
towards capital expenditures including new capital projects and renewal, maintenance and replacement of existing RDA
capital infrastructure.
Issue:
Should the RDA Board adopt the proposed first amendment to the FY 2010/11 Operating Budgets for the City Center
Redevelopment Area,the Anchor Shops and Parking Garage,as well as adopt the Budget for the Pennsylvania Avenue
Shops and Garage for FY 2010/11?
Item Summa /Recommendation:
The year-end budget to preliminary actual comparisons for the RDA reflect that there is an operating budget surplus of
$669,452 (1.8%) in the RDA, overall. However, because the RDA budget was adopted at a category level, a budget
amendment is required to address certain expenditure categories that are over budget.Similarly,garage revenues at the
Anchor Garage in FY 2010/11 came in approximately $709,000 greater than budget, which is more than sufficient to
offset the resulting $78,837 increase in revenue-sharing obligations with Loews, to cover lower than expected retail
revenues(due to the loss of a tenant earlier in the year)and unanticipated but necessary renewal and replacement costs
totaling $96,274 (e.g. HVAC replacement for three retail tenants, elevator repairs). The Pennsylvania Avenue Garage
opened during Fiscal Year 2010/11 and revenues and expenses for the facility were not adopted as part of the FY
2010/11 budget.The parking garage generated$478,583 in revenues in FY 2010/11,which more than adequately covers
the$394,068 in related operating expenses for the facility.
In order to address instances where actual expenditures for budgeted categories exceeded the adopted budget for the
reasons described in the related commission memorandum, the Administration recommends adopting a First
Amendment to the FY 2010/11 Operating Budget for the City Center Redevelopment Area and the Anchor Shops and
Parking Garage,and retroactively adopting the Budget for the Pennsylvania Avenue Shops and Garage for FY 2010/11.
Advisory Board Recommendation:
N.A.
Financial Information:
Source of Amount Account
Funds: 1
2
'OBPI
City Clerk's Office Legislative Tracking:
Kent Bonde, Laura Aker and Kathie Brooks
Sign-Offs:
RDA Budget Assistant Executive
Coordinator Director Dire RDA rector RDA
KOB KB HF MG
TAAGENDA\2012\1-1 2-12\Budget endment Summ.doc. I L�)
IM MIAMI BEACH AGENDA ITE611 I A
DATE
IM MIAMI BEACH
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: January 11, 2012
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY ADOPTING AND APPROPRIATING THE FIRST
AMENDMENT TO THE OPERATING BUDGET FOR THE CITY CENTER
REDEVELOPMENT AREA AND THE ANCHOR SHOPS AND PARKING GARAGE FOR
ITEMS THAT ARE OVER-BUDGET; AND, RETROACTIVELY ADOPTING AND
APPROPRIATING THE BUDGET FOR THE PENNSYLVANIA AVENUE SHOPS AND
PARKING GARAGE FOR FISCAL YEAR 2010/11.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The year-end budget to preliminary actual comparisons for the RDA are presented in Exhibit A.
Highlights are provided below. These comparisons show that there is an operating budget surplus of
$669,452 (1.8%) in the RDA, overall. However, because the RDA budget was adopted at a category
level, a budget amendment is required to address certain expenditure categories that are over budget.
In addition, it is recommended that a budget of$394,068 is retroactively adopted to cover operating
expenses at the Pennsylvania garage, which opened during fiscal year 2010/11.
Operating Budget- Revenues
Overall, revenues in the RDA are$518,956 over budget.This is primarily due to increased contributions
from the Resort Tax fund, which is based on 50% of the 1% Resort Tax revenues collected.
Contributions from the Children's Trust are also above budget, although this is directly offset by the
remittance of the % mill tax levy back to the Children's Trust. Additionally, the "other
income/adjustments" line item reflects the inclusion of rent proceeds from the Miami City Ballet;these
revenues are in turn used to offset capital maintenance costs related to the facility.
The overall increase in revenues is partially offset by continued declines in interest earnings and
increased adjustments to the City and County tax increment from 2008.
Operating Budget- Expenditures
The total admin/operating expenditures are estimated at$150,496 below approved budget. However,
management fees (including salaries and benefits) are slightly above budget due to the final actual
salary costs of staff that provides administrative support to the RDA, as well as professional(legal)fees
January 11, 2012
Redevelopment Agency Memorandum
First Amendment to the FY 2010111 Operating Budget for City Center
Page 2 of 2
incurred in connection with unanticipated settlement-related costs on prior-year RDA projects. Debt
service costs were also above budget; this amount is the difference between the initial transfer to the
RDA debt service fund and the actual amount that is required to be paid.
Anchor Shops and Parking Garage
Garage revenues at the Anchor Garage in FY 2010/11 came in approximately$709,000 greater than
budgeted. This is more than sufficient to offset the resulting $78,837 increase in revenue-sharing
obligations to the Loews. Retail revenues only came in slightly below forecast, despite the loss of a
tenant earlier in the year. However, the additional overall revenue is more than sufficient to cover
unanticipated and necessary renewal and replacement costs totaling $96,274. These generally
included the replacement of three of the tenant's HVAC systems and elevator repairs.
Pennsylvania Avenue Shops and Garage
The Pennsylvania Avenue Garage and shops opened during fiscal year 2010/11. Revenues and
expenses for the facility were not adopted as part of the FY 2010/11 Budget. During fiscal year
2010/11, the parking garage generated $478,583 in revenues and incurred $394,068 in related
operating expenses for the facility.
In consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the RDA on
City-owned property, the operation of the facility has been structured in the form of a ground lease
between the City and the RDA, providing terms for both the garage and retail operations. Expenditures
for the garage include ground lease rent payments, an administrative fee (consistent with that of the
Anchor Garage) and the Parking Department's operational fee.
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 amends the operating budgets
for the City Center Redevelopment Area, and the Anchor Shops and Parking Garage; and the adopts
the budget for the Pennsylvania Avenue Shops and Garage for FY 2010/11.
JMG/HF/KB/LA/KOB
Attachment
T:/Agenda/2012/1-11-12/RDA First Amendment 2010_11 Memo.doc
Exhibit A.
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Adopted FY 2010111 Adopted Operating Budget to Actual
Budget
FY 08109 FY09/1D FY 10111 FY Will Variance
From FY 10111
Actual Budget Budget Actual Adopted
Revenues and Other Sources of Income
Tex Increment-City Minage 6.2155 $18,345,335 516,946,393 $18,377,816 $16,377,816 $0
Proj Adjustment to City Increment for FY 2008 Tax Roll(2) (1,111,989) (1,178,873) (1,200,000) (1,475,726) ($275,728)
Tax Increment-County Millage 5.4275 15,808,032 14,496,500 16,047,879 16,047,879 $0
Frei Adjustment to County Increment for FY 2008 Tax Roll(3) (961,565) (954,605) (1,000,000) (1,262,384) ($262,384)
50%Contribution from Resort Tax 3,908,668 3,460,000 3,578,067 4,492,075 $914,008
'712 Mill Children's Trust Contribution(4) 1,366,290 1,498,222 1,225,249 1,474,830 $249,581
Inerest Income 56,626 385,057 200,000 9,291 ($190,709)
Fund Balance Reallocation:(Non-TIF) 0 0 0 0 $0
Other Income/Adjustments: 1,344 0 0 84,186 $84,186
TOTAL REVENUES $37,412,741 $34,852,694 $37,229,011 $37,747,967 $518,956
AdmlNOpomting Expenses
Management fee(salaries 8 benefits) $464,775 $489,564 $998,563 $989,313 $750
Advertising 8 promotion 0 1,000 0 0 $o
Postage,printing 8 mailing 1,420 3,500 4,123 2,858 ($1,265)
Once supplies 8 equipment 2,941 3,000 2,900 2,195 ($705)
Meetings 8 conferences 1,799 4,000 1,351 12 ($1,339)
Dues 8 subscriptions 0 1,000 1,260 7a8 ($472)
Audit fees 0 8,500 9,000 5,388 ($3,613)
Professional 8 related fees 57,157 55,000 47,000 70,903 $23,903
Miscellaneous expenses 4,223 10,000 5,000 1,388 ($3,612)
Total AdmiNOperating Expanses $532,315 $575,584 $1,059,197 $1,072,944 $13,647
Project Expenses
Community Policing 32,693,942 $2,871,494 $3,052,215 S2,746,495 ($305,720)
Capital Projects Maintenance(5) 3,456,896 3,050,775 3,332,673 3,127,883 ($204,790)
NWS Pmject/Lincoln Park Complex Cndrgency 0 3,060,189 0 0 so
NWS Project-Gmnl-in-Aid 0 0 15,000,000 15,000,000 $0
Transfer to Capital Projects(6) 20,319,813 13,170,050 130,758 136,758 $0
Total Project Expenses $26,470,651 $22,152,508 $21,521,646 $21,011,136 ($510,510)
Reserve and Debt Service Obligations
Debt Service Cost-2005+Parity Bonds $8,376,443 $8,393,207 $8,393,254 $8,498,087 $104,833
Current Debt Service-Lincoln Rd Project(7) 1,205,268 1,086,961 $1,094,176 51,094,176 $0
Current Debt Service-Bass Museum(8) 506,108 506,531 505,859 505,859 s0
Reserve for County Admin Fee(9) 222,697 203,128 225,718 221,782 ($3,936)
Reserve for CMB Contribution(10) 258,500 236,513 257,667 253,531 ($4,136)
Reserve for Children's Trust Contribution(11) 1,366,290 1,498,222 1,225,249 1,474,855 $249,606
Repayment-Prior Yr Fund Balance 0 0 2.940,246 2,946,246 s0
Total Roserve and Debt Service Obligations $11,935,326 $11,924,622 $14,648,168 $14,994,536 $346,368
TOTAL EXPENSES AND OBLIGATIONS $38,938,292 534,852,894 $37,229,011 $37,078,515 ($150,496)
REVENUES-EXPENSES ($1,525,551) ($0) so $669,452 $669,452
Note#1 Based on Preliminary Tax Increment Adjustment worksheet received from MDC on 6/30/10
Note#2 Adjustment for final FY 08109 Tax Roll-Estimate based on pric
Note#3 Adjustment for final FY 08/09 Tax Roll-Estimate based on pric
Note 94 1/2 Mill Children's Trust pmt to RDA per Interlocal
Note 95 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 Slat
Note 48 Payment of Bass Museum current debt service on Gulf Breeze
Note 99 County admin fee @ 1.5%of Countys increment revenue
Note#10 CMB TIF Contribution @ 1.5%of City's Increment revenue
Note 911 1/2 mill Children's Trust Contribution
Adopted FY 2010111 Anchor Shops and Parking Garage(16th Street Parking Garage) Operating Budget
Budget
FY 08109 FY 00110 FY 10111 FY 10111 Variance
From FY 10111
Revenues: Actual Budget(1) Budget Actual Adopted
Parking Operations $2,585,000 $2,632,000 $2,368,000 53,077,007 $709,007
Retail Leasing 663,779 696,489 714,150 704,365 (S9,7a5)
Interest Pooled Cash 46,100 46,100 39,216 23.908 ($15,218)
TOTAL REVENUES $3,314,879 $3,374,589 $3,121,366 $3,805,370 $684,004
Operating Expenses:
Parking Operations $1,700,768 $1,802,964 $1,704,823 $1,313,809 ($391,014)
Garage Use Fee(To Loms)(1) 342,000 355,208 281,288 360,125 $78,637
Retail Leasing Management Fee 55,000 60,000 95,433 76,917 ($18,516)
Management Fee(Garage Opal 0 158,129 189,074 189,074 so
Renewal and Replacement Anchor Shops 0 0 0 96,274 $96,274
Reserve Future Capital-Parking Operations 563,832 375,922 21%415 0 (5219,415)
Reserve Future Capital-Retail Operations 6531279 622,466 631,333 0 ($631,333)
TOTAL EXPENSES $3,314,879 $3,374,589 $3,121,366 $2,036,199 ($1,085,167)
NET so so $D $1,769,171 $1,769,171
(1)-Based on 28%of annual gross parking revenuues in excess of S1,30,000.(Includes contingency amount)
FY 2010111 Pennsylvania Ave.Shops and Parking Garage Operating Budget
Budget
FY 08109 FY 09110 FY 10111 FY 10111 Variance
From FY 10111
Revenues: Actual Budget Budget Actual Adopted
Parking Operations s0 50 so 5479,583 5478,583
TOTAL REVENUES so So so $478,583 $478,583
Operating Expenses:
Parking Operations 50 s0 so $300,727 $300,727
Parlung Base Fee so s0 s0 S30,073 S30,073
Garage Ground Lease 50 so so 523,552 523,552
Garage Management Fee s0 s0 s0 539,716 539.716
TOTAL EXPENSES $0 $0 $0 $394,068 $394,068
NET $0 $0 $0 $84,515 $84,515