2009-27215 ResoRESOLUTION NO. 2009-27215
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 2009/10 BUDGET, IN THE
AMOUNT OF $1,596,640.
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
2009/10, in the amount of $1,596,640, 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 2009/10 budget, in the amount of $1,596,640.
PASSED AND ADOPTED THIS 24th
ATTEST:
CITY CLERK A R
Robert Parcher Matti Herrera Bower
A-PI~tONED 143 TO
FORM ~ LANGUAGE
+~, F EXECUTION
~~-~~~~
____
Ci Attomey~~ Date
DAY OF September , 2009.
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution adopting and approving the Miami Beach Visitor and Convention Authority (VCA) FY
2009/10 budget in the amount of $1,596,640.
Ke 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.
Issue:
Shall the Mayor and Commission approve the Miami Beach Visitor and Convention Authority (VCA) FY
2009/10 budget in the amount of $1,596,640.
Item Summa /Recommendation:
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.
Advisory Board Recommendation:
The Miami Beach Visitor and Convention Authority (VCA) board unanimously approved the FY
2009/10 budget on August 24, 2009.
Financial Information:
Source of Amount Account Approved
Funds: 1 $1,496,640 2% Resort Tax Revenue
2 $100,000 Rollover from prior year
3
4
OBPI Total $1,596,640
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Grisette Roque Marcos
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T:\AGENDA\2009\September 24\Regular\VCA Budget Comm Summary.doc
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: May M i Herrera Bower and Members of the City Commission
FROM: Jor e onzale~~
City Manager
DATE: September 24, 2009
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 2009/10 BUDGET IN
THE AMOUNT OF $ 1,596,640.
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 2008/09 Review/Tourism AdvancementFY 2008/09 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 fiscal year 2008/09, the program allocated funds in one of eight
categories, including: Tourism Partnerships; Special Events Recurring; Major One Time Special
Event(s); Cultural Tourism; Development Opportunities; Initiatives; Special Projects; and the
Special Projects Recurring Category.
The TAP awarded $1,272,564 in FY 2008/09, compared to $1,125,916 in FY 2007/08. The
increase 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.
Page 2 of 3
VCA Budget
2009/10 Tourism Advancement Program
The VCA has budgeted $1,260,600 for FY 2009/10 for its Tourism Advancement Program. This
grant funding reflects an approximate 0.4% increase, or a total of $4,964 from FY 2008/09. 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 eight categories, including: Tourism Partnerships; Special Events Recurring; Major One Time
Special Event(s); Development Opportunities; Cultural Tourism; Special Projects; Special
Projects Recurring; and Initiatives. The grant application was again reviewed and revised for FY
2009/10. 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 relating to the requirements in place for hotel room nights, impressions and/or
viewership numbers, was reviewed and increased for Major One Time Special Events, Special
Events Recurring and Development Opportunities grant categories providing a clearer picture of
the VCA's grant program eligibility requirements.
The Special Projects Recurring category is budgeted at $377,200. 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 2008/09, the Major One Time Special Event Category was budgeted at $90,000. In FY
2009/10 the category is funded at $215,000.
The Special Events Recurring Category has been calculated at $444,850 for FY 2009/10 based
on the established declining scale and the number of applicants anticipated to return.
Tourism Partnerships has been budgeted for FY 2009/10 at $70,550. The maximum award for
any one applicant is $30,000. Up to three applications are anticipated to be submitted.
For FY 2009/10, the Development Opportunities category is budgeted at $25,500. The
maximum request amount for any one applicant is $30,000. At least one application is
anticipated to be received.
Destination Marketing
The destination marketing allocation reflects a 15% decrease from FY 2008/09. 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 9th Annual Miami Spice
Restaurant Month and position the City of Miami Beach as a destination with excellent
restaurants.
Initiatives
The VCA expects to support new initiatives in FY 2009/10 at the request of partners and
community and resort leaders, and pending any funds that may become available. 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
Page 3 of 3
VCA Budget
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. Funding
Projected Cash Flow Reserve
The VCA has budgeted $5,000 in the cash flow reserve for FY 2009/10. The $5,000 cash flow
reserve reflects a 50% decrease from FY 2008/09. The City of Miami Beach allots resort tax
payments to the VCA a month after its collection; therefore the VCA has built in a $5,000
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 2009/10 Administration and Overhead
The VCA's administrative and overhead costs are budgeted at $228,680 for the FY 2009/10.
The $228,680 administration and overhead allocation reflects an approximate 1% decrease
from FY 2008/09. The 1 % decrease is attributed to the maintenance of the office space and
equipment, and a fully staffed VCA administrative office.
FY 2008/09 Rollover
A total of $100,000 will be rolled over from FY 2008/09 into the FY 2009/10 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 2008/09. These
monies also include grants that were not awarded and/or rescinded.
Conclusion
It is recommended that the Mayor and Commission adopt the FY 2009/10 budget in the amount
of $1,596,640 as set forth in Exhibit A.
T:\AGENDA\2009\September 24\Regular\VCA BUDGET COMMISSION MEMORANDUM NO.doc
Miami Beach Visitor and Convention Authority
FY 2009/2010
BUDGET PROPOSED BUDGET VARIANCE
FY 08/09 FY 09/10
REVENUES
2% Rollover from prior year $ 90,000.00 $ 100,000.00 $ 10,000.00
Resort Tax Revenue $ 1,527,216.00 $ 1,496,640.00 $ (30,576.00)
Total Revenues $ 1,617,216.00 $ 1,598,640.00 $ (20,576.00)
EXPENDITURES
ADMINISTRATION
Administration & Benefits $ 186,680.00 $ 186,680.00 $ -
Operating Expenses $ 39,900.00 $ 40,000.00 $ 100.00
Capital $ 5,000.00 $ 2,000.00 $ (3,000.00)
Total Administration $ 231,580.00 $ 228,680.00 $ (2,900.00)
GRANTS PROGRAM
Tourism Advancement Program
Tourism Partnerships $ 72,250.00 $ 70,550.00 $ (1,700.00)
Cultural Tourism $ 60,000.00 $ 42,500.00 $ (17,500.00)
Major Events $ 90,000.00 $ 215,000.00 $ 125,000.00
Special Events Recurring $ 307,800.00 $ 444,850.00 $ 137,050.00
Development Opportunities $ 36,000.00 $ 25,500.00 $ (10,500.00)
Special Projects $ 184,000.00 $ 85,000.00 $ (99,000.00)
Special Projects Recurring $ 457,200.00 $ 377,200.00 $ (80,000.00)
Festival Season $ 48,386.00 $ - $ (48,386.00)
Total Tourism Adv. Program $ 1,255,636.00 $ 1,260,600.00 $ 4,964.00
Other
Destination Marketing $ 50,000.00 $ 42,360.00 $ (7,640.00)
R 8 D $ 10,000.00 $ 60,000.00 $ 50,000.00
Initiatives $ 60,000.00 $ - $ (60,000.00)
Projected Cash Flow Reserve $ 10,000.00 $ 5,000.00 $ (5,000.00)
Total Other $ 130,000.00 $ 107,360.00 $ (22,640.00
TOTAL $ 1,817,216.00 S 1,598,640.00 $ (20,576.00)