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2000-24136 RESO RESOLUTION NO. 2000-24136 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (VCA) FISCAL YEAR 2000/2001 BUDGET, IN THE AMOUNT OF $ 1,070,320.32. WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) was created and exists pursuant to Chapter 67-930 of the Laws of Florida and Sections 102-246 through 102-254 of the Code of Miami Beach; and WHEREAS, the VCA's mission is to support, maintain and develop quality programs, which generate, satisfy and enhance the year-round tourist attractiveness of Miami Beach; and WHEREAS, the VCA is a seven member authority; each member is appointed by the City of Miami Beach Commission, with the goal of encouraging, developing and promoting the image of Miami Beach locally, nationally and internationally as a vibrant community and superb tourist destination; and WHEREAS, the VCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships. WHEREAS, the VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as ones of the worlds greatest communities and tourism destinations. WHEREAS, pursuant to its enabling legislation, the VCA's budget for each fiscal year shall be approved by the Mayor and Commission; and WHEREAS, accordingly, the VCA recommends a $ 1,070,320.32 budget approval for 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 Visitor and Convention Authority's (VCA) Fiscal Year 2000/2001 budget, in the amount of$ 1,070,320.32 PASSED AND ADOPTED THIS 18th DAY OF October ,2000 ATTEST: APPROVED AS 10 FORM & LANGUAGE & FOR EXECUTION ~ _~rf~ CITY CLERK MAYOR J/)-/~-OD [)ale ; IT Y 0 F M I A M I BE A C H 1Y HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 :p:\\ci.miami-beach.ft.us ~. COMMISSION MEMORANDUM NO. ~ D~ - 00 TO: Mayor Neisen O. Kasdln and Memben of the City Commission DATE: October 18, 2000 FROM: Jorge M. Gonzalez ~ LI ~ City Manager . v~ C) A RESOLUTION 0 THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (VCA) FY 2000/2001 BUDGET IN THE AMOUNT OF $1,070,320.32. SUBJECT: ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS The Miami Beach Visitor and Convention Authority (VCA) was created and exists pursuant to Chapter67-930 of the Laws of Florida and Sections 102-246 through, and including 102-254 of the Code of Miami Beach. It is a seven member authority, each member is appointed by the City of Miami Beach Commission, with the goal of encouraging, developing and promoting the image of Miami Beach locally, nationally and internationally as a vibrant community and tourist destination. To this end, the VCA strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships. The VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as ones of the worlds greatest communities and tourism destinations. 1999/2000 reviewlTourism Advancement Program The Miami Beach VCA Tourism Advancement Program helps promote Miami Beach as a sophisticated tourist destination through the allocation of grant funds to events or programs of work that enhance tourist attractiveness. In fiscal year 1999/2000, the program allocated funds in one of six categories, including: Tourism Partnerships, Special Events New or First Time, Major One-Time Event, Special Events Recurring, Cultural Tourism and Development Opportunities. The Tourism Advancement Program awarded $441,900.00 in fiscal year 1999/2000. These funds helped maintain worthwhile tourism incentives such as the Tourist Hospitality Center, The Shane Watersports Center; Supported new events on Miami Beach, such as the Latin Billboard A wards and the Summer MusiCool Down free concert series. AGENDA ITEM DATE K1M IO-Ig'-Ou C:/SHAREDIFY 99-00/COMMISSION MEMORANDUM October 18,2000 Commission Memorandum VCA Budget FY 2000/2001 Page 2 Marketing The Destination Marketing Campaign created in fiscal year 1999/2000 focused on increasing tourism in Miami Beach through cooperative efforts with the Greater Miami Conventions and Visitors Bureau, the City of Miami Beach and other community and civic organizations, The campaign for the upcoming fiscal year 2000/2001 will continue that focus and, will stimulate awareness about Miami Beach with the general public, potential tourists, and travel industry professionals. The campaign is based on market research from the 1999 Profile of Visitors to Greater Miami and the Beaches compiled by the Strategy Research Corporation, requests and responses from other community and civic organizations, and the City of Miami Beach. By creating visitor and community friendly materials, the VCA will assist both Miami Beach tourists and promoters in fostering strong collaborative relationships with the City of Miami Beach and stimulating the production of programming. The VCA established the Destination Marketing and Public Relations Campaign to boost the visibility of Miami Beach as a tourist destination with exciting visitor events and attractions during the 'low-season' of May through September. The VCA is committed to producing marketing opportunities that will enhance this campaign. The campaign will use a wide variety of media including: Internet, magazines, newspapers and radio. Programs include co-op advertising with the Greater Miami Convention and Visitors Bureau, which will better allow the VCA to leverage its limited advertising dollars. The advertising program in fiscal year 1999/2000 was comprised of several elements including: a live remote radio show with promotions and a special travel contest; a Miami Beach Summer 2000 Brochure; advertising placements in magazines; and advertising placements in national, local, regional and national newspapers. 2000/2001 programslTourism Advancement Program Grant funding for fiscal year 2000/2001 reflects an 8.5% increase or a total of $578,800 from fiscal year 1999/2000. This increase of 8.5% is slightly higher than the increase in resort tax allocations. The monies will be awarded in our Tourism Advancement Program in one of six categories, including: Tourism Partnerships, Special Events (Recurring), Special Events (New or One-Time), Development Opportunities, Cultural Tourism and Low-Season, Many changes were developed and implemented in the fiscal year 2000/2001 application process to better develop our Tourism Advancement Program. Pointedly, grants will be determined on a quarterly basis to ensure better funding allocation throughout the fiscal year. The VCA application itself also went through many revisions, to better represent the proposed events. The revised applications include more background information about the events themselves, event producers and ADA compliance. In addition, the "Low-Season" grant category was created to address the months of May through September when tourism levels are at their lowest point. C:/SHAREDIFY 99-00/COMMISSION MEMORANDUM October 18, 2000 Commission Memorandwn VCA Budget FY 2000/2001 Page 3 Marketing The destination marketing allocation reflects a 0% increase or $125,000 from fiscal year 1999/2000. This allocation includes the VCA portion of production of the Miami Beach Summer 2001 brochure, radio, magazine and newspaper advertisements. As part of the VCA's continued outreach, a grant brochure will be created and distributed to community leaders throughout Florida and tourism organizations; a website will be created and used as an informational tool; new VCA logo and tagline will be incorporated. These three marketing initiatives are designed to promote the image of the VCA as a grant giving organization. Research and Development In fiscal year 2000/2001 the VCA will undertake several new research and development projects, including assembling an architectural survey of Miami Beach in its entirety and analyzing signage throughout Miami Beach from a tourist perspective. The VCA is also focusing attention on creating more options for families vacationing in Miami Beach. To help make the City a more family friendly tourist destination, the VCA is working with several local organizations to create a Summer Camp Program catering to tourists needs. Projected Cash Flow Reserve The City of Miami Beach allots resort tax payments to the VCA a month after its collection. Therefore the VCA has built in a $50,000 projected cash flow reserve to its budget to ensure that all grants awarded will have the necessary funds to be reimbursed upon proper request and docwnentation. Special Projects The VCA expects to support new initiatives in FY 2000/2001 at the request of partners and community and resort leaders. Strategic plans, goals and initiatives will be developed after consulting with all partners and as the result of on-going communications. Some of these initiatives include the implementation of more family friendly events on Miami Beach, including - but not limited to - supporting day camps for children and encouraging family oriented festivals. The VCA is also developing a comprehensive website that will give event producers easy access to essential information about the grant giving process and a downloadable application. The website also gives tourists the web links they need to enjoy their stay on Miami Beach. The VCA is also taking a leadership role in encouraging events of mass appeal to take place in Miami Beach. Strategic goals and initiatives will be developed through consultation with partners and continued outreach. C:/SHAREDIFY 99-00/COMMISSION MEMORANDUM October 18, 2000 Commission Memorandum VCA Budget FY 2000/2001 Page 4 Administration and Overhead The VCA's administrative and overhead costs are budgeted at $120,000 for the fiscal year 2000/2001. The $120,000 administration and overhead allocation reflects a 0% increase from fiscal year 1999/2000. This figure is inclusive of the new office space and equipment, and a fully staffed VCA administrative office. The Mayor and City Commission should adopt the 2000/2001 budget in the amount of $ 1,070,320.32, see Exhibit A. '1 A C;/SHAREDIFY 99-00/COMMISSION MEM~ cJ1~. MIAMI BEACH VISITOR AND CONVENTION AUTHORITY PROPOSED BUDGET FY 2000 - 2001 Projected 2% Resort Tax Collections per Finance Department Memo dated 6/8/00: $19,600,000 REVENUE BREAKDOWN: Projected Resort Tax Revenues Collection Fee ($19,300.000 - 4%) Remaining Balance ~ $18,528,000 Resort Tax Revenues to the City for Tourism-Related City Services (according to the Nov, 2, 1999 Illfelllndum) Adjusted Net Amount (Payment to VCA for collections prior to Nov. 2, 1999 refelllndum) = $926,400 TOTAL REVENUES: (VCA 5% Share of Remaining Resort Tax Revenues) EXPENDITURES Proposed Budget FY2000-2001 Budget FY1999-2000 VCA Administration' i. Director (salary + frtngel25%) (approx. $55k + $12k) ii. Administrative Aasistar.t (approx. $28k + $7.5k fringe) III. OfIIce Expenses (approx. $17.5k) $ 120,000.00 $ 120,000,00 Tourism Advancement Grante Program Vearlona Grant Cateaories I. Tourism Partnerships v. CuRural Tourism Joint Funding Program (with the Miami Beach Arts CoUncil) ""vi. Low-Season Marketing Quarterlv-based Grant Cateaories II. Special Events (18CUtring) 1at Quaffer $ 30,000.00 2nd Qullller S 30,000.00 3ni QuIIIler S 20.000.00 4IIr Quarter S 20.000.00 III. Major Event (New or One- Tlms)- t.Quarter S 40,000.00 2nd Qullller S 40,000.00 3ni Qullller S 40,000.00 4111 Quarter S 40.000.00 Iv. Development Opportunftles t. QuIIIler S 2nd Quarter S 3td Quarter S 4111 Quarter S $ $ 50,800.00 48,000.00 $ $ 51,400.00 15,000.00 $ 100,000.00 $ $ 100,000,00 $ 150,000.00 $ 160,000.00 $ 198,455,00 $ 120,000.00 $ 120,000.00 30.000.00 30,000.00 30,000.00 30,000.00 N_ Investment Cetegories/Strateglc Initiatives I. Destination Marketing Ii. Tourism Related Research & Development Projects Projected Cash Flow Reserve iii. Special Projects $ 125.000.00 $ 125.000.00 $ 52,600.00 $ $ 50,000.00 $ 84,216,00 $ 926,400.00 $ 864,071.00 $ 926,400.00 $ 864,071.00 $ 143,920,32 $ $ 143,920.32 $ $ 1,070,320.32 Current as of 09129/00 PROJECTED RESORT TAX ALLOCATION TOTAL EXPENDITURES PROJECT RESERVE/CASH FLOW FUND TOTAL PROPOSED BUDGET -NIIWCIItegofy - Combination of Speciel Events (New or First-Time) and Major Events (New or One-time)