2000-24097 RESO
RESOLUTION NO.
2000-24097
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE MIAMI BEACH
CULTURAL ARTS COUNCIL'S (COUNCIL) FISCAL YEAR 2000/2001
BUDGET IN THE AMOUNT OF 1,545,000, AND ACCEPTING THE CITY'S
INTERNAL AUDIT REPORT FOR THE COUNCIL'S FISCAL YEARS
1997/1998 AND 1998/1999.
WHEREAS, the Miami Beach Cultural Arts Council (Council) was established by the Mayor and
City Commission on March 5, 1997; and
WHEREAS, the mission of the Council is to develop, coordinate, and promote the visual and
performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment
and benefit of the residents of, and visitors to, Miami Beach; and
WHEREAS, the Mayor and City Commission adopted the Cultural Arts Masterplan on June 3,
1998, identifying the following program areas for the Council; cultural arts grants, marketing,
facilities, advocacy and planning, and revenue development; and
WHEREAS, pursuant to its enabling legislation, the Council's budget for each fiscal year shall
be approved by the Mayor and City Commission; and
WHEREAS, pursuant to its enabling legislation, the Council shall be audited by the City's
internal audit department, insuring compliance with the Mayor and City Commission's
guidelines established by the Ordinance creating the Council; and
WHEREAS, the City's internal audit department confirmed that all requirements set by the
Mayor and City Commission for the Cultural Arts Council have been properly met for Fiscal
Years 1997/1998 and 1998/1999; and
WHEREAS, accordingly, the Council recommends a $1,545,000 budget allocation for the Fiscal
Year 2000/2001 to continue implementation of its programs.
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 adopt the Miami Beach Cultural Arts Council's (Council) Fiscal Year 2000/2001
budget in the amount of $1,545,000 and accept the City's internal audit report for the Council's
Fiscal Years 1997/1998 and 1998/1999.
ATTE~ f~
~CLERK
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MAYOR
September, 2000
APPROVED ~ TO
FORM & LANGUAGE
& FOR EXECUTION
PASSED AND ADOPTED TIllS
27th
DAY OF
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Exhibit A
Miami Beach Cultural Arts Council budget
FY 1999/2000 adopted & 2000/2001 proposed
Revenues
FY 1999-2000 ADOPTED
$520,000 CAC interest
$300,000 GMCVB
$200,000 CMB Resort taxes
$460,200 Carry forward from FY 97-98
$35,000 North Beach Dev. Corp. matching
grant from 97-98 Quality of life
$1,515,200 total
Expenses
FY 1999-2000 ADOPTED
$701,000
$200,000
$240,600
$200,000
$153,600
$20,000
Cultural arts grants
Marketing
Facilities
Endowment
Administration
Development
$1,515,200 total
FY 2000-2001 PROPOSED
$520,000 CAC Interest
$300,000 GMCVB
$200,000 CMB Resort taxes
$525,000 Carry forward 97/98; 98/99; & 99/00
$1,545,000 total
FY 2000-2001 PROPOSED
$758,000
$220,000
$180,000
$200,000
$187,000
Cultural arts grants.
Marketing
Facilities
Endowment
Administration"
$1,545,000total
· $658,000 in cultural arts grant awards approved by Commission on July 26, 2000
for FY 200012001. Additionally, 550,000 allocated for CACNCA cultural tourism grants
and 550,000 fur cultural advancement grants with Miami Dade Department of Cultural AffiIirs.
.. Administration includes the salaries of the Cultural Arts COWIcil Executive Director
and Operations Manager, City operating accounts supporting the COWIcil's programs,
and City internal service charges
Salaries
Fringe benefits
OperaIing accounts
Internal service charges
5102070
$16483
$55372
$13075
Total $187,000
(pension, health insurance, etc.)
(supplies, mailings. oonsultant)
(property management, computers, elC.)
% of total
34%
19%
13%
34%
100%
% of total
49"10
14%
12%
13%
12%
100%
. CITY OF MIAMI BEACH
INTERNAL AUDIT REPORT
DATE:
TO:
VIA:
FROM:
SUBJECT:
PERIOD:
Exhibit B.
September 12,2000
Jorge M. Gonzalez, City Manager
Mayra Diaz Buttacavoli, Assistant City tiK
James J. Sutter. Intemal Auditor .4 r .
Miami Beach Cultural Arts cou:t; j
October 1,1997 through September 30,1999
This is our first regularly scheduled audit of the Miami Beach Cultural Arts Council (CAe) covering
the first two years since the inception of the CAC.
INTRODUCTION
On March 5, 19997, the City Commission by City Ordinance No. 97-3075 created the Miami Beach
Cultural Arts Council. The mission of the CAC is to develop, coordinate and promote the
performing and visual arts in the City of Miami Beach for the enjoyment, education, cultural
enrichment and benefit of both residents and visitors to Miami Beach. This ordinance established
the CAC by providing for a governing body with a specific composition, qualifications,
appointment, term and removal of members. In addition it specified the purpose and duties of the
CAC and provided for funding and legal counsel.
The City Commission approved under Resolution No. 98-22760 CAC's first budget in the amount
of$64,300 for the required staffing and expenses of the CAC for Fiscal Year 97/98. Funding for this
agency comes from an appropriation of investment income earned from a $10 million dollar portion
offunds received from Miami-Dade County. This money was a result of the interlocal agreement
between the City and the County regarding the Convention Development Tax.
Resol!ltion No. 98-22936 provided funding for the Fiscal Year 98/99 in the amount of $1 ,050,000.
In addition to the estimated $550,000 from the investment earnings, funding included $500,000
provided by the Miami Beach Visitor and Convention Authority for cultural arts grants.
Page 1 of 3 pages
Internal Audit Report
Miami Beach Cultural Arts Council
Seotember 12.- 2000
Program revenues and expenditures for the first two years were as follows:
97/98 98/99 Total
Actual Revenues $560,000 $1,055,961 $1,615,961
Actual Expenditures 54,342 700,590 754,932
Endowment 0 200,000 200,000
Excess of Revenues over Expenditures $505,658 $155,371 $661,029
The fund balance at September 30,1999 was $861,029, which represents the excess of revenues over
expenditures for the first two years and an endowment of$200,000 held in a restricted cash account.
For Fiscal Year 99/00 budget, $460,000 of the $661,029 was carried forward as a source of funds
leaving $200,829 as a reserve for future cash flow to pay for expenditures and early funding of
program grants.
.
OVERALL OPINION
The Cultural Arts Council has properly followed the guidelines established by the Miami Beach
City Commission as to their purpose in the City. It has established a master plan for the arts, and
developed and established criteria and guidelines for review and funding for qualified not-for-
profit organizations. The entire program's funds were properly and timely deposited, accounted
for, and recorded in the CAC's books and records. The CAC should continue to monitor the size
of its fund balance to minimize future growth in this account.
PURPOSE
To determine whether the CAC revenues and expenses related to the not-for-profit grants were
properly used, accounted for, recorded and reported, and whether the CAC complied with all
requirements set by the City Commission.
SCOPE
Confirm that:
1. The CAC has developed and prepared a master plan for the arts.
2. The CAC has developed and established criteria and guidelines for review and funding of
qualified not-for-profit arts organizations.
3. The CAC has stimulated governmental awareness and appreciation of the importance of the
arts.
Page 2 of 3 pages
Internal Audit Report
Miami Beach Cultural Arts Council
SeDtember 12.' 2000
4. The CAC consists of nine members, who are appointed for two-year terms and are residents
of Miami Beach.
S. CAC meetings are held once a month and one public hearing is held annually.
6. Revenues received are entered into the City's Financial System to ensure proper recording
of revenues.
7, Funds paid for grants were for approved programs, meeting the criteria set by the CAC.
8. Expenditures were made in accordance with the approved budget.
FINDINGS AND RECOMMENDATIONS
We have confirmed that all the requirements set by the City ofMiarni Beach Commission for the
Cultural Arts Council have been properly met. In addition, all revenues and expenses for Fiscal
Years 97/98 and 98/99 were correctly recorded on a timely basis in the City's Financial System. We
found no exceptions in our audit scope. However, we did note that the size of the CAC fund balance
was increasing in size, and recommend that the CAC monitor this fund balance and continue to
redirect any large increase to fund future CAC grants.
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(Audit performed by Laura Franco)
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cc: Ronnie Singer
David Whitman
Craig Carpentieri
Page 3 of3 pages
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
http:\lci.miami-beach.fl.us
COMMISSION MEMORANDUM NO. /30 - 00
TO:
Mayor Neisen O. Kasdin and
Members of the City Commission
DATE: September 27, 2000
FROM:
Jorge M. Gonzalez
City Manager
~~
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE MIAMI BEACH
CULTURAL ARTS COUNCIL'S (COUNCIL) FY 200012001 BUDGET IN
THE AMOUNT OF 51,545,000, AND ACCEPTING THE CITY'S INTERNAL
AUDIT REPORT FOR THE COUNCIL'S FY 1997/1998 AND FY 199811999.
A>>MI19~TRA110N RECOMMENDATl9~
Adopt the Resolution
AN:Al.tYSJ~
The Cultural Arts Council's mission is to develop, coordinate, and promote the visual and performing
arts in Miami Beach for the enjoyment, education, cultural enrichment and benefit of the residents and
visitors in Miami Beach. In 1997 the nine-member volunteer board conducted town-meetings with
local arts groups to evaluate their needs. The Council then composed a Cultural Arts Masterplan
identifying programs to assist local arts groups: cultural arts grants, marketing, facilities, revenue
development, advocacy/planning. The Mayor and City Commission adopted the Masterplan on June
3, 1998. Since that time the Council has awarded over $1 million in cultural arts grants resulting in
hundreds ofperforrnances, programs, and exhibits. The Council evaluates its programs every year,
and the 2000/2001 programs have been modified according to the evolving needs of the arts
community.
In September 2000, the City's internal audit department audited the Council's 1997/1998 and
1998/1999 Fiscal Years and reviewed the City Commission's requirements for the Cultural Arts
Council. The City's auditor "confirmed that all requirements set by the City of Miami Beach
Commission for the Cultural Arts Council have been properly met." See Exhibit B.
AGENDA ITEM 4 74
DATE - 2 -lr..)
Cuhunl Arts Coum:il
S.ptet1Iber 27.2000
page 2
1999-2000 review I Cultural arts grants
October 1999 through April 2000 was an active time for Miami Beach arts, and the cultural arts
season now extends beyond April due to the Council's support. The Council's 56 cultural arts grant
recipients produce hundreds of performances and exhibits. In June the Hispanic Theater Festival,
Florida Dance Festival, and Brazilian Film Festival offered a multitude of opportunities for
experiencing the art of different cultures: Theater groups from Spain, Mexico, Netherlands; dance
groups from Japan, India, and Bi'azil.
World premiere dance and theater pieces were shown at the Colony Theater, 10 cultural arts festivals
were held, and dozens of other groups performed and presented their work in Miami Beach as a
direct result of the City's cultural arts grant program.
Marketing
The Council hired the Nixon Group for marketing and public relations services relating to the local
performing and visual arts community. Artsbeach.com, the City's arts website is a key element in
collective marketing. Visit artsbeach.com for a calendar of events, information on local arts groups,
and to sign up for the Miami Beach arts mailing list. Artsbeach.com makes Miami Beach arts global.
The Council participated in several marketing projects with other organizations, accurately portraying
Miami Beach as a thriving multicultural arts community. Cultural journalists from allover the world
toured Miami Beach museums and arts organizations, and attended a Miami Beach arts seminar at
the Garden Conservancy's Palm Festival. As a result, special feature stories have appeared in
newspapers worldwide.
The Sounds, Symbols Project, a 300 by 125 foot environmental art installation by local artist Carlos
Betancourt brought international acclaim to Miami Beach. Made of thousands of primitively inspired
designs, 21 st Street beach was the site of the installation, on the Spring solstice in March with poetry
readings by MacArthur fellow and poet Campbell McGrath and poet Richard Blanco. Betancourt was
the first individual artist to receive a grant from the Cultural Arts Council, and he created the largest
environmental art installation since Christo wrapped Biscayne Bay's islands 25 years ago.
In June the Council assisted Burt Wolf, international travel and culinary television personality with
"Travels and Traditions," a public television special about the art and culture of South Florida. Miami
Beach is featured prominently. Burt Wolfs television programs air worldwide, and have a consistent
audience of over 200 million people.
Facilities
The Council commissioned a study last fall to assess the viability of City properties for use by
performing and visual arts organizations. Fisher Dachs Associates and Artec Consultants were hired
to review eight cultural facilities and make recommendations: Colony Theater, 21 st Street complex,
Oceanfront Auditorium, 72nd Street Bandshell, Performing Arts Network studio at 555 17th Street,
Library Rotunda, Bass Museum auditorium (future) and the Miami Beach Woman's Club (now under
FlU). The report recommends improvements to the Colony Theater, Little Stage and Auditorium
at 21 st Street, and the Library Rotunda; and encourages the City to build and operate a small
rehearsal and performance facility. Council staff have been working with arts groups and City
administration to address arts groups office, rehearsal and performance space issues.
CUltural Arts CUlmeD
September 27,2000
_3
Arts Advocacy
On multiple occasions the Cultural Arts Council staff and board members have met with constituents
to assist in organizational development, and long-range planning. Council staff and board members
work with the City administration as advocates for arts groups researching grants for facilities,
assisting with parking difficulties, and in obtaining permits.
In December 1999 the Council hosted a town meeting at the Miami Beach Woman's Club. The arts
groups are concerned with more funding for grants, marketing support, and a greater level of
understanding and advocacy at the governmental level. The Council redesigned the cultural arts grant
program, offered 2 board development workshops for all arts groups supported by the City, and 15
custom designed board retreat scholarships.
2000-2001 programs I Cultural arts grants
The cultural arts grant program is entering its third year in 2000/200 1. After reviewing the
constituent's needs the Council created new categories specific to the needs of the community. The
Council recommends budgeting $758,000 for three grant programs: Cultural arts grants for non-profit
arts organizations performing, or presenting in Miami Beach, Cultural Arts Council/Visitor &
Convention Authority (VCA) cultural tourism grants, and Cultural Arts Council/Miami Dade
Department of Cultural Affairs (MDDCA) Cultural advancement grants.
Cultural arts grants have five categories: Miami Beach Anchors, Year-round, Festivals,
ProjectslPrograms 1, and ProjectslPrograms 2. Miami Beach Anchors are the eight preeminent arts
organizations based in Miami Beach, whose year-round programs contribute significantly to the
cultural life of the city; the Year-round category supports arts organizations with ongoing, daily
presence in Miami Beach; Festivals category supports festivals (dance, music, theater, film, and visual
arts); ProjectslPrograms 1 supports arts organizations with annual operating budgets over $100,000
and ProjectslPrograms 2 supports arts organizations with annual operating budgets under $100,000.
62 cultural arts grant applications requested a total of$l, 183,650. Community panels, chaired by Arts
Council members recommended awarding $658,000 to 58 arts organizations.
The Council partners with the Visitor & Convention Authority (VCA) for cultural tourism grants.
$100,000 has been allocated for cultural projects, programs, or events specifically designed to bring
tourists to Miami Beach, $50,000 from the Council and $50,000 from the VCA. The Council will
continue to participate with Miami Dade Department of Cultural Affairs, contributing $50,000 for
cultural advancement grants. Over $100,000 returns to Miami Beach arts organizations for
professional development.
Cultural arts grants and the Council's cooperative programs significantly contribute to the quality of
cultural life in Miami Beach.
Marketing
The Council recommends a $220,000 Marketing budget in 200012001. In partnership with local arts
organizations, the Council has developed a new marketing strategy, continuing to increase awareness
of Miami Beach arts. 2nd Thursdays is Miami Beach's monthly arts night. On the Second Thursday
of every month, Miami Beach will feature free arts events from 2nd Street to 87th street. All grant
recipients will participate through the cultural arts grant program, and the Council will collectively
market their product - Miami Beach arts. Project coordinators, marketing and strategy designers, and
press coordinators have been consulted, economizing the Council's marketing budget. 2nd Thursdays
Cultural Arts Cowu:il
September 27, 2000
_4
promises to showcase the plethora of arts opportunities awaiting residents and visitors. $145,000 has
been allocated to insure Second Thursdays success.
Artsbeach.com will continue to be the City's dynamic arts resource, with an up-to-date calendar,
mailing list, community involvement and rotating scenes from recent arts events.
The Miami Beach Arts Trost will receive a $45,000 development grant from the marketing budget
to help build the Council's endowment, and $30,000 for other special outreach projects similar to the
Burt Wolf television show and cultural journalist tour.
F aci/ities
Council staff and board members are actively pursuing ways to prevent the exodus of arts groups
from Miami Beach. The Byron-Carlyle, Seymour Hotel, and the Indian Creek Hotel offer some
solutions; more work. is needed. The Council will contribute $165,000 for the City's portion of the
state grant match for the Colony Theater's renovation, scheduled to begin in June 2001.
Endowment
1998/1999 and 1999/2000 endowment contributions of$200,OOO bring the Council's endowment to
$400,000. A portion of the Council's fund balance is in a "restricted cash" category, and the Council
will continue to support this effort with $200,000.
Administration
An Executive Director and Operations Manager staff the Cultural Arts Council. A part-time intern
helps with administrative support. The Council recommends a $187,000 administrative budget to
implement current and additional programs.
The Mayor and City Commission should adopt the 2000/2001 budget in the amount of$l ,545,000,
see Exhibit A, and accept the City's audit report for the Cultural Arts Council's fiscal years
1997/1998 and 1998/1999.
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