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2008-26907 ResoRESOLUTION NO. 2008-26907 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROVING THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (VCA) FY 2008/09 BUDGET, IN THE AMOUNT OF $ 1,617,216. WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) was created pursuant to Chapter 67-930 of the Laws of Florida, and Sections 102-246 through 102-254 of the City of Miami Beach Code; 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 strategically focuses its funding investments in a balanced manner, fostering outstanding existing programs, stimulating new activities, and encouraging partnerships; and WHEREAS, the VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourist destinations; and WHEREAS, pursuant to its enabling legislation, the VCA's budget for each FY shall be approved by the Mayor and Commission; and WHEREAS, accordingly, the VCA recommends approval of the proposed budget for FY 2008/09, in the amount of $ 1,617,216, 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 FY 2008/09 budget, in the amount of $ 1,617,216. PASSED AND ADOPTED THIS 17th DAY OF September , 2008. ATTEST: (~ Q~(, tr CITY CLERK OR Robert Parcher Matti Herrera Bower APPROVED AS TO FORM & LANGUAGE ~ FOR F,d9ECUTION ~ Z f1 Pl' .. ace COMMISSION ITEM SUMMARY A resolution adopting and approving the Miami Beach Visitor and Convention Authority (VCA) FY 2008 / 09 budget in the amount of $1,617,216. Condensed Title: rce intenaea outcome su ortea: Increase community ratings of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2007 Survey, more cultural activities are ranked by residents as one of the changes that will make Miami Beach a better place to live, work, play or visit; 30% of residents attend cultural activities a couple time a month or more; and, Tourism industry appears as a key driver for making Miami Beach a better place to live and contributes to quality of life. Shall the Mayor and Commission approve the Miami Beach Visitor and Convention Authority (VCA) FY 2008/09 budget in the amount of $1,617,216 Issue: item summaryircecommenaation: This budget allows the VCA to continue its mission to support, maintain and develop quality programs, by strategically focusing its investments which generate, satisfy and enhance the year-round tourist attractiveness of Miami Beach. The VCA's budget funds programs and special events designed to promote the destination. The VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourist destinations. Adviso Board Recommendation: The Miami Beach Visitor and Convention Authority (VCA) board unanimously approved the FY 2008/ 09 budget on August 4. 2008. Source of Amount Account Approved Funds: 1 $1,527,216 2% Resort Tax Revenue 2 90,000 Rollover from prior year 3 4 OBPI Total $1,617,216 Financial Impact Summary: Financial Information: Ci Clerk's Office Le islative Trackin Grisette Roque Marcos Sian-Offs: T:WGENDA12008\sep1708 budgetUvlB VCA 2008-2009 Budget Comm Summary.doc I~ ~ I u AGENDA ITEM ~~ ~Y 1~~a1 ~~~, 1 DATE m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov To: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez , City Manager DATE: September 17, 2008 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROVING THE MIAMI BEACH VISITOR AND CONVENTION AUTHORITY (VCA) FY 2008/09 BUDGET IN THE AMOUNT OF $ 1,617,216. ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS 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, and including 102-254 of the Code of the City of Miami Beach. The VCA is aseven-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 one of the world's greatest communities and tourism destinations. FY 2007/08 Review/Tourism Advancement Program The VCA Tourism Advancement Program (TAP) helps promote Miami Beach as a sophisticated tourist destination through the allocation of grant funds to events or programs that enhance tourist attractiveness. In FY 2007/08, the program allocated funds in one of nine categories, including: Tourism Partnerships, Special Events Recurring, Major One Time Special Event, Cultural Tourism, Development Opportunities, Festival Season, Initiatives, Special Projects and the Special Projects Recurring Category. The TAP awarded $1,125,916 in FY 2007/08, compared to $1,259,026 in FY 2006/07. The decrease in awards within the TAP is reflective of additional applicants subject to the declining scale as part of the Special Events Recurring and Special Projects Recurring Grant categories. The TAP funds helped maintain worthwhile tourism programs such as the South Beach Wine & Food Festival and Art Basel Miami Beach. T:/091708NCABUDGET COMMISSION MEMORANDUM Page 2 of 3 VCA Budget FY 2008/09 Tourism Advancement Program The VCA has budgeted $1,255,636 for FY 2008/09 for its Tourism Advancement Program. This grant funding reflects an approximate 2% increase or, a total of $26,720 from FY 2007/08. The increase in funds is reflective of an increase in the number of applicants in the Special Projects Recurring Grant Category. The monies will be awarded in our Tourism Advancement Program in nine categories, including: Tourism Partnerships, Special Events Recurring, Major One Time Special Event, Development Opportunities, Cultural Tourism, Special Projects, Special Projects Recurring, Festival Season and Initiatives. The grant application was again reviewed and revised for FY 2008/09. The maximum amount requested was maintained at $50,000. In addition, the percentages within the declining scale were revamped and are now also applicable to the Special Projects Recurring grant category where the maximum request remained at $100,000. Minimum criterion was reviewed and maintained at the same level as in FY 2007/08 for each grant category specifying the requirements in place for hotel room nights, impressions and/or viewership numbers providing a clearer picture of the VCA's grant program eligibility requirements. The Special Projects Recurring category is budgeted at $457,200. Anticipated applicants include Art Basel Miami Beach, Orange Bowl Marketing Campaign, South Beach Comedy Festival, ING Miami Marathon and Half Marathon & Tropical 5k, the South Beach Wine and Food Festival, the Miami International Film Festival, and FUNKSHION Fashion Week Miami Beach. In FY 2007/08, the Major One Time Special Event Category was budgeted at $85,000. In FY 2008/09 the category is funded at $90,000. The Special Events Recurring Category has been calculated at $307,800 for FY 2008/09 based on the established declining scale and the number of applicants anticipated to return. Tourism Partnerships has been budgeted for FY 2008/09 at $72,250 considering three applicants at the maximum request cap of $30,000. Up to three applications are anticipated to return. For FY 2008/09, the Development Opportunities category is budgeted at $36,000. The maximum award for one applicant is $30,000. A minimum of one application is anticipated. In FY 2007/08, the Festival Season category was budgeted at $50,000. In FY 2008/09, it is budgeted at $48,386. Destination Marketing The destination marketing allocation reflects a 0% increase from FY 2007/08. This allocation includes the VCA portion of production costs for the Miami Spice Restaurant Month Program Banners. The banners add a festive atmosphere and help publicize the 7th Annual Miami Spice Restaurant Month and position the City of Miami Beach as a destination with excellent restaurants. T:/091708NCABUDGET COMMISSION MEMORANDUM Page 3 of 3 VCA Budget Initiatives The VCA expects to support new initiatives in FY 2008/09 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 ongoing communications. Some of these initiatives include the implementation of summer long events on Miami Beach, including -but not limited to - supporting a food and wine festival, television origination projects and a Miami Beach based film festival. 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. Proiected Cash Flow Reserve The VCA has budgeted $10,000 in the cash flow reserve for FY 2008/09. The $10,000 cash flow reserve reflects a 0% increase from FY 2007/08. The City of Miami Beach allots resort tax payments to the VCA a month after its collection; therefore the VCA has built in a $10,000 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 documentation. FY 2008/09 Administration and Overhead The VCA's administrative and overhead costs are budgeted at $231,580 for the FY 2008/09. The $231,580 administration and overhead allocation reflects an approximate 4% decrease from FY 2007/08. The 4% decrease is attributed to a completed office relocation. This figure is also inclusive of the maintenance of the office space and equipment, and a fully staffed VCA administrative office. FY 2007/08 Rollover A total of $90,000 will be rolled over from FY 2007/08 into the FY 2008/09 VCA budget. This rollover of funds is primarily from the Destination Marketing and Research and Development categories where the total monies allocated were not used during the FY 2007/08. These monies also include grants that were not awarded and/or rescinded. Conclusion It is recommended that the Mayor and Commission should adopt the FY 2008/09 budget in the amount of $1,617,216 as set forth in Exhibit A. T:/091708NCABUDGET COMMISSION MEMORANDUM Miami Beach Visitor and Convention Authority FY 2008/2009 BUDGET FY 07/08 PROPOSED BUDGET VARIANCE FY 08/09 REVENUES Rollover from prior year 2% Resort Tax Revenue $ 150,000.00 $ 1,450,416.00 $ 90,000.00 $ 1,527,216.00 $ (60,000.00) $ 76,800.00 Total Revenues $ 1,600,416.00 $ 1,617,216.00 $ 16,800.00 EXPENDITURES ADMINISTRATION Administration & Benefits $ 179,500.00 $ 186,680.00 $ 7,180.00 Operating Expenses $ 57,000.00 $ 39,900.00 $ (17,100.00) Capital $ 5,000.00 $ 5,000.00 $ - TotalAdministration $ 241,500.00 $ 231,580.00 $ (9,920.00) GRANTS PROGRAM Tourism Advancement Program Tourism Partnerships Cultural Tourism Major Events Special Events Recurring Development Opportunities Special Projects Special Projects Recurring Festival Season $ 85,000.00 $ 45,000.00 $ 85,000.00 $ 320,000.00 $ 50,000.00 $ 135,000.00 $ 458,916.00 $ 50,000.00 $ 72,250.00 $ 60,000.00 $ 90,000.00 $ 307,800.00 $ 36,000.00 $ 184,000.00 $ 457,200.00 $ 48,386.00 $ (12,750.00) $ 15,000.00 $ 5,000.00 $ (12,200.00) $ (14,000.00) $ 49,000.00 $ (1,716.00) $ (1,614.00) Total Tourism Adv. Program $ 1,228,916.00 $ 1,255,636.00 $ 26,720.00 Other Destination Marketing $ 50,000.00 $ 50,000.00 $ - R & D Initiatives Projected Cash Flow Reserve $ 10,000.00 $ 60,000.00 $ 10,000.00 $ 10,000.00 $ 60,000.00 $ 10,000.00 $ - $ - $ - TotalOther $ 130,000.00 $ 130,000.00 $ - TOTAL $ 1,600,416.00 S 1,617,216.00 $ 16,800.00