Resolution 2020-31337 •
RESOLUTION NO. 2020-31337
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATIONS OF THE
FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS JULY 17, 2020
MEETING, AND APPROVING THE USE OF CULTURAL ARTS COUNCIL
("CAC") FUND BALANCE AND CAC ENDOWMENT FUNDS (WHICH
INCLUDE A COMBINED FUND BALANCE OF $1,740,368), FOR THE
PURPOSE OF (1) COVERING THE AMOUNT TO FULLY FUND FY 2021 CAC
BUDGET IN THE AMOUNT OF $92,000; AND (2) ESTABLISHING A FY 2021
"CULTURAL ARTS EMERGENCY FUND", IN AN AMOUNT UP TO
$1,000,000, ASSESSED BY THE CULTURAL ARTS COUNCIL IN $500,000
INCREMENTS, TO PROVIDE FINANCIAL ASSISTANCE TO CULTURAL
ORGANIZATIONS EXPERIENCING REVENUE LOSSES DUE TO THE COVID-
19 CRISIS; AND FURTHER, AUTHORIZING THE ADMINISTRATION AND THE
CAC TO DEVELOP THE CRITERIA AND PROCEDURES FOR THE FY 2021
CULTURAL ARTS EMERGENCY FUND GRANT PROGRAM, AND TO
REVIEW GRANT APPLICATIONS AND MAKE ADVISORY
RECOMMENDATIONS TO THE CITY COMMISSION, WITH THE FINAL
GRANT AWARDS SUBJECT TO THE PRIOR APPROVAL OF THE MAYOR
AND CITY COMMISSION.
WHEREAS, the Miami Beach Cultural Arts Grant Program, created in 1998, is an
essential component of the mission of the Miami Beach Cultural Arts Council ("CAC") and is
charged to develop, coordinate, and promote arts and culture in Miami Beach community; and
WHEREAS, in 2001, the City set aside 1% of the Resort Tax for a Cultural Arts Reserve
Fund and the Quality of Life Fund; and
WHEREAS, currently, the 1% Resort Tax set aside is distributed as follows: 10% to
CAC, 30% to Quality of Life, and 60% to Transportation/Trolley operation; and
WHEREAS, the Resort Tax funding to cultural arts grants and programs is divided into
two restricted funds, the Cultural Arts Council Fund Balance and the Cultural Arts Council
Endowment, both managed by the Cultural Arts Council ("CAC"), which reviews and makes
recommendation for Commissions approval; and
WHEREAS, on September 10, 2014, the Mayor and City Commission, based on the
recommendation of the CAC, adopted Resolution No. 2014-28732, which established a Cultural
Arts Council Fund Balance ("Fund Balance") in the amount of$2,467,000, which is capped and
provides for an annual increase for inflation; and
WHEREAS, the purpose of the Fund Balance is to set aside funds that will ensure the
cultural affairs program operation and grants continue for a period of two (2) years, in the event
of an emergency, unforeseen difficulties, trouble, or need; and
WHEREAS, all funds remaining in the Fund Balance at the end of each fiscal year are
rolled over to the following fiscal year; and
WHEREAS, the Cultural Arts Council Endowment ("Endowment") was recommended by
the CAC and created by the City Commission in 1998 in an attempt to make cultural arts
1
programming and operation self-sufficient by using the fund; and
WHEREAS, the Endowment is capped at $1,581,873, and is to be used for the purpose
of enhancing Miami Beach art institutions, collections and operations; and
WHEREAS, due to the novel COVID-19 pandemic, Miami Beach arts organizations are
facing unprecedented revenue losses; and
WHEREAS, to date, Miami Beach-based cultural organizations are collectively reporting
over $6,000,000 in lost revenue, reflective of the first few months after pandemic-related
closures; and
WHEREAS, during its April 24, 2020 meeting, Finance and Economic Resiliency
Committee ("FERC") recommended that in order to support the cultural arts programs, the City
should utilize the Fund Balance and Endowment, for a combined balance of$4,048,873, for the
purpose of covering the FY2020 Resort Tax Contribution of $1,473,000 to the Cultural Arts
Council, thereby permitting available Resort Tax funds to be reallocated to other Resort Tax
purposes: and
WHEREAS, FERC also recommended for the City to establish a "Cultural Arts
Emergency Fund" in the amount of $1,000,000 to provide financial assistance to Miami Beach
based cultural organizations experiencing revenue losses due to the COVID-19 crisis; and
WHEREAS, FERC further recommended for the City and the CAC to develop the criteria
and procedures for the Cultural Arts Emergency Fund Grant Program in order to review grant
applications and make advisory recommendations to the City Commission, with the final grant
awards subject to prior approval of the City Commission; and
WHEREAS, on May 1, 2020, via Resolution No. 2020-31247, the Mayor and City
Commission established a Cultural Arts Emergency Fund in the amount of $1,000,000 to
provide financial assistance to Miami Beach-based cultural organizations experiencing revenue
losses due to the COVID-19 crisis; and
WHEREAS, the $1,000,000 COVID-19 Emergency Relief grant, as well as the current
FY 2019-20 Grant Program funding of $1,540,000, is being funded through the Cultural Arts
Council Fund Balance, reducing the fund balance from $4,048,873 to $1,740,368; and
WHEREAS, on Thursday, July 9, 2020, CAC reviewed and discussed the impact of their
recommended FY 2021 annual grants and Emergency Grants to be distributed to the cultural
community, and concluded that the crisis COVID-19 continues to create would have a longer
impact than expected, and recommended that there is a need for additional support to cultural
organizations; and
WHEREAS, upon review of the CAC Fund Balance and Endowment, the Administration
supports the CAC recommendation and further recommends an additional $1 million allocation
to the Cultural Relief Fund in addition to the $92,000 necessary to fully fund the CAC's FY 2021
operating budget due to projected revenue loss from COVID-19; and
WHEREAS, this additional $1 million allocation and $92,000 to fully fund the CAC
budget would reduce the fund balance from $1,740,368 to $648,368 (see table below); and
2
Item Amount
CAC Fund Balance $2,653,448
CAC Endowment $1,626,920
FY 2020 CAC 1% Resort Tax for Quality of Life ($1,540,000)
COVID-19 Relief Fund for Cultural Organizations ($1,000,000)
Current Total $1,740,368
FY 2021 Amount to Fully Fund CAC Budget ($92,000)
Additional COVID-19 Relief Funding for Cultural Organizations ($1,000,000)
Updated Total $648,368
WHEREAS, on July 17, 2020, FERC recommended the use of additional funding from
the Cultural Arts Council Fund Balance, in an amount of up to $1,000,000 to provide financial
assistance to cultural organizations experiencing revenue losses due to the COVID-19 crisis;
and
WHEREAS, the funding criteria will be assessed by the Cultural Arts Council throughout
FY 20-21 in $500,000 increments.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the Finance and Economic Resiliency
Committee, at its July 17, 2020 meeting, and approve the use of the Cultural Arts Council
("CAC") Fund Balance and CAC Endowment Funds (which include a combined fund balance of
$1,740,368) for the purpose of(1) covering the amount to fully fund FY 2021 CAC budget in the
amount of $92,000; and (2) establishing an "FY 2021 Cultural Arts Emergency Fund", in an
amount up to $1,000,000, assessed by the Cultural Arts Council in $500,000 increments, to
provide financial assistance to cultural organizations experiencing revenue losses due to the
COVID-19 crisis; and further, authorize the Administration and the CAC to develop the criteria
and procedures for the FY 2021 Cultural Arts Emergency Fund Grant Program, and to review
grant applications and make advisory recommendations to the City Commission, with the final
grant awards subject to the prior approval of the Mayor and City Commission.
PASSED and ADOPTED this _ day of J1(y , 2020.
:2--1---E---------
Dan Gelber, Mayor
ATTpT:
PAC.itilosi
Raf el E. Granado, City Clerk
APPROVED AS TO
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MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: July 29, 2020
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA,ACCEPTING THE RECOMMENDATIONS OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS JULY
17, 2020 MEETING, AND APPROVING THE USE OF CULTURAL ARTS
COUNCIL ("CAC") FUND BALANCE AND CAC ENDOWMENT FUNDS
(WHICH INCLUDE A COMBINED FUND BALANCE OF $1,740,368), FOR
THE PURPOSE OF (1)COVERING THE AMOUNT TO FULLY FUND FY2021
CAC BUDGET IN THE AMOUNT OF $92,000; AND (2) ESTABLISHING AN
ADDITIONAL "CULTURAL ARTS EMERGENCY FUND", IN THE AMOUNT
OF UP TO $1,000,000, ASSESSED BY THE CULTURAL ARTS COUNCIL IN
$500,000 INCREMENTS, TO PROVIDE FINANCIAL ASSISTANCE TO
CULTURAL ORGANIZATIONS EXPERIENCING REVENUE LOSSES DUE
TO THE COVID-19 CRISIS; FURTHER, AUTHORIZING THE
ADMINISTRATION AND THE CAC TO DEVELOP THE CRITERIA AND
PROCEDURES FOR THE CULTURAL ARTS EMERGENCY FUND GRANT
PROGRAM, AND TO REVIEW GRANT APPLICATIONS AND MAKE
ADVISORY RECOMMENDATIONS TO THE CITY COMMISSION,WITH THE
FINAL GRANT AWARDS SUBJECT TO THE PRIOR APPROVAL OF THE
MAYOR AND CITY COMMISSION.
RECOMMENDATION
Accept the recommendation of the Finance and Economic Resiliency Committee, at its July
17, 2020 meeting, for use of additional funding from the Cultural Arts Council Fund Balance, in
an amount of up to $1,000,000 to provide financial assistance to cultural organizations -
experiencing revenue losses due to the COVID-19 crisis, with funding criteria to be assessed
by the Cultural Arts Council throughout FY 20-21 in $500,000 increments; and for use of the
fund balance for the purpose of fully funding the FY 2021 CAC budget in the amount of
$92,000.
BACKGROUND/HISTORY
Over the past decade, the cultural portfolio of Miami Beach has expanded exponentially. The
Grant Program currently supports approximately 50 cultural organizations each year, including
the 16 cultural institutions based on Miami Beach. As published by Americans for the Arts in
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Arts & Economic Prosperity 5 (2015), the nonprofit arts and cultural industry in Miami Beach
generated $7,725,000 in revenue to local government and supported 4,489 jobs. Event-related
spending by arts and cultural audiences totaled $75.1 M (excluding the cost of admission) and
drew a total attendance of 1,868,555 resident and nonresident cultural audiences.
The Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City
Commission on March 5, 1997. The 11- member Commission appointed advisory board, is
charged with developing, coordinating, and promoting the arts and culture in the City of Miami
Beach community. An essential component of the mission of the Miami Beach Cultural Arts
Council is investing in cultural arts programming through the Cultural Arts Grant Program ("Grant
Program"). Since the Grant Program inception, the Mayor, Commission and Cultural Arts
Council ("CAC") have awarded approximately $18 million in cultural arts grants, supporting
thousands of performances, exhibits, and other cultural activities in Miami Beach. The Grant
Program is managed by Tourism and Culture Department.
In 2001,the City set aside 1% of the Resort Tax for a cultural arts reserve fund and those funds
support cultural affairs grants and programs and the Quality of Life Fund for North Beach, Mid-
Beach and South Beach programming. Currently the 1% Resort Tax set aside is distributed as
follows: 10% to CAC, 30% to Quality of Life and 60% to Transportation/Trolley operation. An
eight-year funding history of the Cultural Arts Council, is noted as follows:
' Fiscal Year Cultural Arts Council(Total Budget)
FY 12-13 $ 992,789
FY 13-14 $ 1,315,396
FY 14-15 $ 1,266,797
FY 15-16 $ 1,264,000
FY 16-17 $ 1,679,000
FY 17-18 $ 1,323,161
FY 18-19 - - - - $.1,418,285 - - -FY 19-20 $ 1,427,974
The funding to cultural arts grants and programs is divided into two (2) restricted funds, that are
managed by appointed members of the Cultural Arts Council, which reviews and makes
recommendations for Commission approval. The two (2) funds, essential to the operations,
quality and growth of Miami Beach cultural arts programming are as follows:
Cultural Arts Council Fund Balance
In 2014, the Cultural Arts Council recommended, to the City Commission, to create a Cultural
Arts Council Fund Balance ("Fund Balance") in the amount of $2,467,000, that is capped
(providing for an annual increase for inflation). This recommendation was approved
on September 10, 2014 by Resolution No. 2015-29045. The original City Commission
(Resolution No. 2014-28732)referencing the fund balance, contained a scriber error in the fund
amount referenced and was replaced by Resolution No. 2015-29045. The purpose of the Fund
Balance is to set aside rainy day funds that will ensure the Cultural Affairs program operation
and grants continue for a period of two (2) years, in the event of an emergency, unforeseen
difficulty, trouble or need. All funds remaining, at the end of each fiscal year, are rolled over to
the following fiscal year.
Cultural Arts Council Endowment
The Cultural Arts Council Endowment ("Endowment') was established by the CAC in an
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optimistic attempt to become self-sufficient by using fund. The Endowment is capped at
$1,581,873, and is to be saved, spent, invested and distributed for the purpose of enhancing
Miami Beach's art institutions, collections and operations. Currently, $800,000 of the
Endowment is allocated to the renovation of the Rotunda in Collins Park. The Rotunda
construction is not time sensitive and could be postponed, by City Commission, and revisited.
CAC, at its February 6, 2020 meeting, expressed it would be prudent to retain a rainy-day
balance, of no less than $500,000, for emergencies and unforeseeable situations,
circumstances and opportunities.
COV!D-19
Due to the COVI D-19 pandemic, Miami Beach arts organizations are facing unprecedented
revenue losses. As of June 2020. Miami Beach based cultural organizations collectively
reported over$6M+ in lost revenue, reflective of the first few months after closures. Depending
on social distancing guidelines and community perceptions, it may be more than a year or more
before Miami Beach institutions are able to operate at full capacity, if they survive at all. Venues
such as the Colony Theatre, managed by Miami New Drama, received 40% of their annual
revenue from ticket sales. The management of Miami New Drama has estimated approximately
$615,000 in lost revenue since closing in March 2020. The Miami Beach Botanical Gardens
depends heavily on facility rentals and has lost upwards of$300,00 in event rentals.
ANALYSIS
In April 2020, the combined fund balances for the Cultural Arts Council totaled $4,280,368.As
part of the FY 2020 budget balancing plan presented to the Finance & Economic Resiliency
Committee on April 17, 2020, the Administration recommended funding the FY 2020 budget
allocation of$1,540,000 from the CAC fund balance instead of the 1% Resort Tax for Quality of
Life to free that allocation up for other purposes such as supporting the trolley system or other
resort tax purposes.
The Administration then recommended, with the support of the CAC,the creation of a$1 million
Miami Beach COVI D-19 relief fund for cultural organizations to mitigate and alleviate the
financial and programmatic hardships created by the current COVI D-19 pandemic. On May 1,
2020, via Resolution No. 2020-31247, the Mayor and City Commission established a Cultural
Arts Emergency Fund in the amount of $1,000,000 to provide financial assistance to Miami
Beach-based cultural organizations experiencing revenue losses due to the COVI D-19 crisis.
The $1,000,000 COVID-19 Emergency Relief grant, as well as the current FY 19-20 Grant
Program funding of$1,540,000 is being funded through the Cultural Arts Council Fund Balance,
reduced the fund balance from $4,048,873 to$1,740,368 (see table below).
The nonprofit arts and cultural industry is a vital economic driver for Miami Beach, a growth
industry that supports jobs, generates government revenue, and is the cornerstone of tourism.
Most recently, the COV I D-19 pandemic has had a catastrophic effect on this industry with
reported revenue losses for Miami Beach nonprofit arts and cultural organizations at
approximately$7M since closures in mid-March 2020. These worsening results document that
COVI D-19 threatens the very survival of cultural facilities and events and the livelihoods of arts
workers, ranging from security guards to artists and stagehands to accountants.
Without more resources, both the costs of re-opening at vastly reduced capacity and the
additional expenses needed for required safeguards are daunting. The reactivation of theaters,
museums, cultural centers and events is an indispensable part of restarting our overall economy.
Investing in Miami Beach's cultural life will send a compelling message to tourists and
businesses alike that Miami Beach is an attractive, diverse and dynamic place to come back and
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visit,to grow a company,and raise a family.
On Thursday, July 9, 2020, CAC reviewed and discussed the impact of their recommended FY
2021 annual grants and Emergency Grants to be distributed to the cultural community and
concluded that the crisis COV I D-19 continues to create would have a longer impact than
expected. (Attachment 1) As a result, CAC recommended that there is a need for additional
support to cultural organizations to adapt and continue to prepare and share their work with the
public, until we can safely gather in person again.
CAC recommended additional funding that could help the Miami Beach cultural contributors
adapt their programs, spaces, and operating models as a result of long-term COVI D-19
recovery. This includes costs for finding new safe spaces for performance and rehearsal,
adapting existing facilities to comply with public health standards, developing new capacities in
streaming and virtual engagement, addressing issues of equitable access on digital programs,
retraining staff, and other costs associated with physically distanced program delivery.
Upon review of the CAC Fund Balance and Endowment, the Administration supports the CAC
recommendation and further recommends an additional $1 million allocation to the Cultural
Relief Fund in addition to the $92,000 necessary to fully fund the CAC's FY 2021 operating
budget due to projected revenue loss from COVI D-19 as shown in the table below. This
additional $1 million allocation and $92,000 to fully fund the CAC budgetwould reduce the fund
balance from$1,740,368 to $648,368 (see table below).
Item Amount
CAC Fund Balance $2,653,448
CAC Endowment $1,626,920
_FY 2020 CAC 1% Resort Tax for Quality of Life ($1,540,000)
COVI D-19 Relief Fund for Cultural Organizations ($1,000,000)
Current Total $1,740,368
FY 2021 Amount to Fully Fund CAC Budget ($92,000)
Additional,COV I D-19 Relief Funding for Cultural ($1,000,000)
Organizations
Updated Total $648,368
Given the fluidity of the current economic environment, the Administration also recommends
issuing the additional funding in the Fall 2020. The Administration could process, together with
CAC, how this additional funds can further support, sustain and protect the Miami Beach cultural
community with insight on the impact of the$1 m Emergency Grants.
On July 17, 2020, The Finance and Economic Resiliency Committee recommended the use of
additional funding from the Cultural Arts Council Fund Balance, in an amount of up to
$1,000,000 to provide financial assistance to Miami Beach-based cultural organizations
experiencing revenue losses due to the COVID-19 crisis, with funding criteria to be assessed
by the Cultural Arts Council throughout FY 20-21 in $500,000 increments. Staff, in consultation
with the Cultural Arts Council, will present a plan for distribution of the first installment of
$500,000 in October 2020 and assess the need for the additional $500,000 in April 2021.
FINANCIAL INFORMATION
Funded from the Cultural Arts Council Fund Balance
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CONCLUSION
Cultural anchors and presenters are challenged now, but six(6) months, the impact will be even
greater. Sadly, some cultural presenters, who typically manage smaller operating budgets, will
cease to exist without financial support. Continued investment in our cultural institutions is vital
and long-term funding solutions to support our cultural community is more crucial than ever.
Providing financial support to arts and cultural organizations right now just makes economic
sense. We know the creative sector contributes to Miami Beach's economic productivity, a
robust tourism sector, more livable neighborhoods, the development of young leaders, and
community cohesion. Additional funding, from resource developed for such a crisis will protect
the creative sector now to ensure it can support the long term economic and communal recovery
of the city.
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
No No
Legislative Tracking
Tourism and Culture
ATTACHMENTS:
Description
o CAC Anchor and COVID Relief Funding Grants
o Resolution
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FY 21 CAC ANCHOR GRANT RECOMMENDATIONS WITH 1sT COVID-19 EMERGENCY RELIEF FUNDING
COVID-19 TOTAL CAC AND
ORGANITATION NAME FY 20-21 CAC GRANT EMERGENCY RELIEF• comp RELIEF
RECOMMENDATION GRANT FUNDING
RECOMMENDATION RECOMMENDATION
Friends of the Bass Museum $ 26,600.00 $ 83,160.00 $ 109,760.00
Friends of the Miati Dade Public
Library $ 7,616.89, $ 716.89
Holocaust Memorial Conttit6ee $ 21,760.00 $ 63,079.00 $ 84,839.00
Jewish Museum of Florida-RU $ 20,906.67 $ 62,370.00 $ 83,276.67
living Ms Treat(0 Cinema) $ 21,280.00 $ 65,205.00 $ 86,485.00
Miami Beach Botanical Garden $ 18,550.00 $ 46,305.00 $ 64,855.00
Miami Beach Film Society $ 17,133.33 $ 17,133.33
Mlami Beach Urban St Bios-FIU $ 20,960.00 $ 60,953.00 $ 81,913.00
Miami City Ballet . $ 26,413.33 $ 84,105.00 $ 110,518.33
Miami Design Preservation League $ 21,280.00 $ 65,205.00 $ 86,485.00
Miami New Dra= $ 22,533.33 $ 69,458.00 $ 91,991.33
New Worid Symphony $ 27,128.89 $ 85,050.00 $ 112,178.89
OoMe Arts $ 25,293.33 $ 25,293.33
The Rhythm Foemdation $ 22933.33 $ 68.040.00 $ 90,973.33
' University ofWymmod,Inc. $ 21,866.67 $ 42,998.00 $ 64,864.67
1Molfsonian-FIU $ 26,226.67 $ 83,160.00 $ 109,386.67
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Page 380 of 2461