2010-27518 Reso i
RESOLUTION NO. 2010- 27518
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 2010/2011 BUDGET, IN THE
AMOUNT OF $1
WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) was created pursuant
to Chapter 67 -930 of the. Laws of Florida, and Sections 1.02 -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
2010/2011, in- the amount of $1,774,511, 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 2010/201 budget, in the amount of.
$1`,774,511,
_ l _
PASSED AND ADOPTED THIS, DAY OF �fe� bey
2010:
MAYOR . -
AT-TESTED BY:
CITY CLERK':
APPROVED AS TO.
FORM & LANGUAGE
&:FnH EXECUTION
TAAGENDA\2010 \September 20 \VCA Budget Resolution.doc
C ity ttor ate
,
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution adopting and approving the Miami Beach Visitor and Convention Authority (VCA) FY
2010%2011 budget in the amount of $1,774,511
Key Intended Outcome Supported:
Increase community ratings of cultural activities.
Supporting Data (Surveys, Environmental Scan, etc.): ,According to the 2009 Survey,
satisfaction levels (those providing ``excellent" or "good" rating) were recorded for each of the following
City destinations /attractions by those respondents suggesting annual use: "City park/recreational
facilities" (84.1%), "beaches ". 81.9% and "recreation programs/family programs/family friendly activities" (81.6%).
Issue:
Shall the Mayor and Commission approve the Miami Beach Visitor and Convention Authority (VCA) FY
2010/2011 budget in the amount of $1,774,511.
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: v
The Miami Beach Visitor and Convention Authority. (VCA) board unanimously approved the FY
2010/201*1 budget.
Financial Information:
Source of Amount Account Approved
Funds: 1 $1,599,511 2% Resort Tax Revenue
2 $175,000 Rollover from prior year
3
4 -
OBPI Total $1,774,511
Financial Impact Summary:
City Clerk's Office Legislative Trackin
Grisette Roque Marcos
Sign-Offs:
: Department: Director Assistant City Manager City Manager
TAAGENDA\2010\September 20 \VCA Budget Comm Summary.doc
AGENDA, 11TEm Arm j' A R /`
DATE [AMIBEACH do 0
BH
MIAMI
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSIO MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City o mission
FROM: Jorge M. Gonzalez, City Manager
DATE: -September 20, 2010
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 2010/11 BUDGET IN THE
AMOUNT OF $ 1,774,511.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution,
BACKGROUND
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 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 one of the -
world's greatest communities and tourism destinations.
ANALYSIS
The following program of work is proposed for FY 2010/11, and as reflected in the attached Exhibit A:
FY.200912010 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 fiscal year 2009/2010, the program allocated funds .in one of nine categories,
including: Cultural Tourism, Development Opportunities, Film Incentive, Initiatives, Major One Time
Special Event, Special Events Recurring, Special Projects, Special Projects Recurring, and the Tourism
Partnership Category.
The TAP awarded $1,042,800 in FY 2009/2010, compared to $1,117,500 in FY 2008/2009. The
decrease in awards within the TAP is reflective of a decrease in the number of applicants in fiscal year
2009/2010. The TAP funds helped maintain worthwhile tourism programs such as the South Beach Wine
& Food Festival and Art Basel Miami Beach.
FY 201012011 Tourism Advancement Program
The VCA has budgeted $1,463,000 for FY 2010/2011 for its Tourism Advancement Program. This grant
funding reflects an approximate 16% increase, or a total of $202,400 from FY 2009/2010. The increase
in funds is reflective of a revised declining scale in the TAP program. This new scale has a smaller
annual percentage decrease: The monies will be awarded in our Tourism Advancement Program in nine
categories, including: Cultural Tourism, Development Opportunities, Film Incentive, Initiatives, Major One
Time Special Event, Special Events Recurring, Special Projects, Special Projects Recurring and Tourism
Partnerships. The grant application was again reviewed and revised for FY 2010/2011. The maximum
VCA Budget FY 2010111
September 20, 2010
Page 2 of 3
amount requested was maintained at $50,000. In addition, the Special Projects grant category maximum
request remained at $100,000. Minimum criterion was reviewed for the Major One Time Special Event,
Special Events Recurring and Development Opportunities grant categories and the criterion remained
the same as in FY 2009/2010 (e.g. 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 $486,400. 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 2009/2010, the Major One Time Special Event Category was budgeted at $215_,000. In FY
2010/2011 the category is funded at $240,000.
The Special Events Recurring Category has been calculated at $456,000 for FY 2010/2011 based on the
established declining scale and the number of applicants anticipated to return.
Tourism Partnerships has been budgeted for FY 2010/2011 at $62,600 considering three applicants at
the maximum request cap of $30,000. Up to three applications are anticipated to return.
For FY 2010/2011, the Development Opportunities category is budgeted at $48,000. The maximum
award for one applicant is $30,000. A minimum of two applications are anticipated, but may not be
funded at the requested amount.
As in previous years, the VCA funds a portion of the Cultural Tourism grant program, with the balance
funded by the City's Cultural Arts Council. Representatives from both boards jointly review and
recommend funding to applicants.
Destination Marketin_g
The destination marketing allocation reflects a 21% decrease from FY 2009/2010. 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 8 Annual Miami Spice Restaurant Month
and position the City of Miami Beach as a destination with excellent restaurants. Other project may
include initiatives developed as a result of the Mayor's Blue Ribbon Task Force on Tourism.
Initiatives
The VCA expects to support new - initiatives in FY 2010/2011 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 $2,000 in the cash flow reserve for FY 2010/2011. The $2,000 cash flow
reserve reflects a 60% decrease from FY 2009/2010. The City of Miami Beach allots resort tax
payments to the VCA a month after its collection; therefore, the VCA has built in a $2,000 projected cash
flow reserve to its budget to ensure that all grants awarded will have the necessary fu to be
reimbursed upon proper request and documentation.
VCA Budget FY 2010/11
September 20, 2010
Page 3 of 3
FY 201012011 Administration and Overhead
The VCR's administrative and overhead costs are budgeted at $247,000 for the FY 2010/2011. The
$247,000 administration and overhead allocation reflects an approximate 8% increase from FY
2009/2010. The 8% increase is attributed.to 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 200912010 Rollover
A total of $175,000 will be rolled over from FY 2009/2010 into the FY 2010/2011 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 2009/2010. These monies also include
grants that were not awarded and /or rescinded.
CONCLUSION:
It is recommended that the Mayor and Commission adopt and approve the proposed Miami Beach Visitor
and Convention Authority budget for FY 2010/11 in the amount of $1,774,511, as reflected in Exhibit A.
TA AGENDA\2010\September 20 \VCA Budget Memo.doc
EXHIBIT A
Miami Beach Visitor and Convention Authority
FY 2010/11 BUDGET
BUDGET BUDGET WORKSHEET VARIANCE
FY 09/10 FY 10111
REVENUES
2% Rollover from prior year $ 100,000.00 $ 175,000.00 $ 75,000.00
Resort Tax Revenue $ 1,496,640.00 $ 1,599,511.00 $ 102,871.00
Total Revenues $ 1,596,640.00 $ 1,774,511.00 $ 177,871.00
EXPENDITURES
ADMINISTRATION
Administration & Benefits $ 186,680.00 $ 200,000.00 $ 200,000.00
Operating Expenses $ 40,000.00 $ 45 $ 45,000.00
Capital $ 2 $ 2,000.00 $ 2,000.00
Total Administration $ 228,680.00 $ 247,000.00 $ 18,320.00
GRANTS PROGRAM
Tourism Advancement Program
Tourism Partnerships $ 70,550.00 $ 62,600.00 $ (7,950.00)
Cultural Tourism $ 42,500.00 $ 30,000.00 $ (12,500.00)
Major Events $ 215,000.00 $ 240,000.00 $ 25,000.00
Special Events Recurring $ 444,850.00 $ 456 $ 11,150.00
Development Opportunities $ 25,500.00 $ 48,000.00 $ 22,500.00
Special Projects $ 85,000.00 $ 80,000.00 $ (5,000.00)
Special Projects Recurring $ 377,200.00 $ 486,400.00 $ 109,200.00
Film Incentive $ - $ 60,000.00 $ 60,000.00
Total Tourism Adv. Program $ 1,260,600.00 $ 1,463,000.00 $ 202,400.00
Other
Destination Marketing $ 42,360.00 $ 33,511.00 $ (8,849.00)
R &D $ 60,000.00 $ 5,000.00 $ (55,000.00)
Initiatives $ - $ 24, 000.00 $ 24, 000.00
Projected Cash Flow Reserve $ 5,000.00 $ 2,000.00 $ (3,000.00)
Total Other $ 107,360.00 $ 64,511.00 $ (42,849.00)
TOTAL EXPENDITURES: $ 1,596,640.00 $ 1,774,511.00 $ 177,871.00
T: \AGENDA \2010 \Septe,mber 20 \Regular \VCA Budget spreadsheet revised final'.xlsx