LTC 061-2010 FY 2009/10 Resort Tax Budget® MIAMI BEACH 2OlOF1AR-3 fi~1 9:29
OFFICE OF THE CITY MANAGER CI1~Y CLcll`S'S UFFICE
NO. LTC # obi-zoio LETTER TO COMMISSION
TO: Mayor Mattie Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: March 2, 2010
SUBJECT: FY 2009/10 Resort Tax Budget
The purpose of this LTC is to transmit the FY 2009/10 Resort Tax Budget, as requested, at
the January Commission Retreat.
Background
In 1967, the Legislature of Florida passed House Bill No. 2394 of Chapter 67-930 of the
Laws of Florida. This legislation empowered cities and towns in all counties within the state
of a specific population to impose, levy and collect a municipal resort tax.
In 1968, the City of Miami Beach commenced with the levy of a two percent (2%) tax on the
rent of a room or rooms in any hotel, motel, rooming house or apartment house. This 2% tax
was also levied upon the total sales price of all food beverages, alcoholic beverages
(including beer and wine) sold at retail in any restaurant.
On November 3, 1992 an additional one percent (1%) tax on room rent was approved by
referendum. This additional tax became effective on October 1,1996 after the City entered
into an agreement with a developer for a convention center headquarters hotel.
All registered businesses file, on or before the twentieth day of the month following the close
of each calendar month, a report with the City of the total rents or sales prices charged and
received and the amount of tax collected.
No resort tax is imposed upon:
• Federal, state or city governments, or any agency thereof;
• Nonprofit organizations;
• Rents paid by a permanent resident on his permanent place of abode;
• Rents paid by a lessee with a lease term longer than six months provided lease is not
broken; and
• School lunches served to students and teachers; all hospital meals and rooms.
FY 2009/10 Resort Tax Budget
March 2, 2010
Page2of2
Allowable Uses
Allowable uses of the municipal resort tax are as follows: the promotion of the tourist
industry, which includes, but is not restricted to the following: Publicity, advertising, news
bureau, promotional events, convention bureau activities, capital improvements and the
maintenance of all physical assets in connection therewith; and for the payment of the
reasonable and necessary expenses of collecting, handling and processing of said tax.
These allowable uses have led to increased tourist activities, such as special events and ,
Art Basel. In addition to the uses listed above, the proceeds of the additional one percent
(1%) tax are used as follows. Fifty percent of the amount earned is committed to the
payment of a portion of the debt service on the Miami Beach Redevelopment Agency -City
Center/Historic Convention Village Bonds. These bonds were used for the development,
improvement and construction of certain public areas including a portion of the Cultural
Center facilities located within the City Center District. The remaining fifty percent is
allocated equally among North Beach, Middle Beach, and South Beach for capital projects
that enhance Miami Beach's tourist related areas and various arts and cultural programs.
Below is a summary of the FY 2009/10 Resort Tax Budget, totaling $38.9 million Resort Tax
Budget for tourism-related expenditures, a decrease from $39.4 million budgeted in FY
2008/09.
2% Resort Tax: $31.97 million budgeted expenditures
^ $22.47 million Contribution to the general fund
^ $5.0 million Greater Miami Convention and Visitors Bureau
^ $1.5 million Visitor and Convention Authority
^ $0.1 million Marketing
^ $1.57 million Debt Service (North Shore and Lincoln Road Streetscape Projects)
^ $1.15 million Operating
^ $0.08 million Contingency
^ $0.1 million Superbowl
1 % Resort Tax: $6.92 million budgeted expenditures
^ $3.46 million in Quality of Life expenditures
• South Beach -capital $865,000
• North Beach -capital $865,000
• Middle Beach -capital $865,000
• Arts $865,000
^ $3.46 million for Debt Service (City Center/ Historic Convention Village Bands)
Attached is the detail of the Resort Tax budget, as provided in the budget book.
If you have any questions or need additional information, please feel free to contact me.
JMG/KGB/par
2
CITY OF MIAMI BEACH
ADOPTED FISCAL YEAR 2009/10 RESORT TAX FUND BUDGET
FY 07/08 Actual FY 08/09 Budget FY 08/09 Proi Ind(Dec) FY 09/10 Budget Budget Variance
2% Revenues:
Resort Tax $ 31,177,551 $ 31,817,000 $ 31,180,000 $ (637,000) $ 31,180,000 $ (637,000)
Special Assessment-North Shore 292,584 255,600 320,000 64,400 253,000 (2,600)
,Special Assessment-Lincoln Road 596,033 151,600 345,000 193,400 335,000 183,400
Interest Income 203,860 165,000 200,000 35,000 200,000 35,000
Registration Fees, Filing Fees & Misc. 10,955 3,000 0 (3,000) 0 (3,000)
Total2% Revenue $ 32,280,983 $ 32,392,200 $ 32,045,000 $ (347,200) $ 31,968,000 $ (424,200)
2% Expenditures:
Personnel Costs:
Salaries 8 Wages
$
167,688
$
175,061
$ 234,040
$ 58,979
$
241,689
$ 66,628
'Health, Life & Dental Insurance 7,289 11,219 11,219 0 11,219 0
Pension Contributions R Other Benefits 72,940 62,515 67,094 4,579 85,879 23,364
Total Personnel Costs $ 247,897 $ 248,795 $ 312,353 $ 63,558 $ 338,767 $ 89,992
Operating Costs:
'Professional Services $ 0 $ 10,000 $ 10,000 $ (O) $ 10,000 $ (O)
Internal AudiUResort Tax Auditors' Exp. 642,578 693,057 694,889 1,832 706,632 13,575
„Telephone 851 1,500 1,500 0 1,500 0
'Postage 20 500 500 0 7,300 6,800
Administrative Fees 26,450 26,450 26,450 0 26,450 0
Rent-Building & Equipment 230 3,600 3,600 0 3,600 0
Printing 100 100 100 0 100 0
Office Supplies 651 750 750 0 750 0
Other Operating Expenditures 1,237 1,000 1,000 0 1,000 0
LocalMileage 0 50 50 0 50 0
Training 0 1,000 1,000 0 1,000 0
Internal Service-Central Service 12,959 13,570 13,570 0 12,529 (1,041)
Internal Service -Property Management 6,022 9,736 9,736 0 1,802 (7,934)
Internal Service-Communications 4,280 4,738 4,738 0 11,120 6,362
Internal Service -Self Insurance 13,640 14,966 14,966 0 14,898 (68)
"Internal Service- Computers 10,327 11,132 11,132 0 13,299 2,167
-Internal Service -Prop. ManagemenUElectrical 2,389 2,956 2,956 0 2,418 (538)
Total Operating Costs $ 721,734 $ 795,105 $ 796,937 $ 1,832 $ 814,448 $ 19,343
Total2/Operating Expenditures
2 % Other Uses $ 969,631 $ 1,043,900 $ 1,109,290 $ 65,390 $ 1,153,235 $ 109,335
:
Contribution to VCA
$
1,504,293
$
1,527,216
$
1,496,640
$
(30,576)
$
1,496,640
$
(30,576)
Contribution to Bureau 4,968,245 5,627,544 5,627,544 0 5,000,000 (627,544)
Marketing 126,467 400,000 200,000 (200,000) 100,000 (300,000)
Super Bowl 0 0 0 0 100,000 100,000
Debt Service -North Shore 975,100 975,100 975,100 0 1,014,000 38,900
'Debt Service -Gulf Breeze 553,000 553,000 553,000 0 553,000 0
Contingency 0 400,000 100,000 (300,000) 85,685 (314,315)
Transfer to Capital Projects 264,030 0 0 0 0 0
General Fund Contribution 20,696,310 21,865,440 21,865.440 0 22,465,440 600,000
Total2%Other Uses $ 29,087,445 $ 31,348,300 $ 30,817,724 $ (530,576) $ 30,814,765 $ (533,535)
Net2% $ 2,223,907 $ 0 $ 117,986 $ 117,966 0 $ 0
1 % Revenues:
.Resort Tax $ 6,922,709 $ 7,011,000 $ 6.920,000 $ (91,000) $ 6,920,000 $ (91,000)
Totall%Revenue $ 6,922,709 $ 7,011,000 $ 6,920,000 $ (91,000) $ 6,920,000 $ (91,000)
1 % Expenditures
Other Designated Expenditures
South Beach -Quality of Life Capital $ 865,339 $ 876,375 $ 865,000 $ (11,375) $ 865,000 $ (11,375)
Middle Beach -Quality of Life Capital 865,339 876,375 865,000 (11,375) 865,000 (11,375)
' North Beach -Quality of Life Capital 665,339 876,375 865,000 (11,375) 865,000 (11,375)
Arts 865,339 876,375 865,000 (11,375) 865,000 (11,375)
Totall /Other Uses $ 3,461,355 $ 3,505,500 $ 3,460,000 $ (45,500) $ 3,460,000 $ (45,500)
Debt Service - TIF Bonds $ 3,461,355 $ 3,505,500 $ 3,460,000 $ (45,500) $ 3,460,000 $ (45,500)
Total 1 % Expenditures $ 6,922,709 $ 7,011,000 $ 6,920,000 $ (91,000) $ 6,920,000 $ (91,000)
Net 1% $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Totall%and 2%Revenues $ 38,100,260 $ 38,828,000 $ 38,100,000 $ (726,000) $ 38,100,000 $ (728,000)
Total Resort Tax Revenues: $ 39,203,692 $ 39,403,200 $ 38,965,000 $ (438,200) $ 38,888,000 $ (515,200)
Total Resort Tax Expenditures: $ 36,979,785 $ 39,403,200 $ 38,847,014 $ (556,188) $ 38,888,000 $ (515,200)
Net $ 2,223,907 $ 0 $ 117,986 $ 117,986 0 $ (0)