2011-27751 Reso RESOLUTION NO. 2011 -27751
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2011/12
BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th '
STREET PARKING GARAGE OPERATIONS; CITY'S SHARE OF THE '
SHORTFALL CONTRIBUTION REQUIREMENT FOR THE 5th AND ALTON
PARKING GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP),
TOURISM AND HOSPITALITY SCHOLARSHIP PROGRAM, AND THE
INFORMATION AND COMMUNICATIONS TECHNOLOGY FUND - DEBT
SERVICE AND CITYSOURCED MOBILE APPICATION PROJECT.
WHEREAS, expenses related to tourism, monitoring and auditing payments, and receipt
of Resort Taxes to the City, will be paid by the Resort Tax Fund; and
WHEREAS, the budget for the public parking garage located at 7 Street and Collins
Avenue (the 7 Street Parking Garage) provides funding for operating expenses, debt service,
and a reserve for renewal and replacement; and
WHEREAS, the budget for the public parking garage located at 7 Street and Collins
Avenue (the 7 Street Parking Garage) provides funding for operating expenses, debt service,
and a reserve for renewal and replacement; and
WHEREAS, the budget for the public parking garage operations located at g Alton
provides funding for the City's share of the shortfall contribution requirements; and
WHEREAS, the Art in Public Places (AiPP) fund is used for the commission or
acquisition of works of art, conservation and maintenance of works of art, research and
evaluation of works of art, printing and distribution of related materials, and administration; and
WHEREAS, the Tourism and Hospitality Scholarship Program funded by contributions
from Global Spectrum and Centerplate and awarded to Miami Beach students enrolled or
planning to enroll in post - secondary education and have expressed interest in the food and
hospitality industry; and
WHEREAS, the City's General Fund budget includes a transfer of $600,885 to the
Information and Communications Technology Fund, of which $26,814 is for debt service, $2,000
is for the CitySourced Mobil Application project and the balance of $572,071 is appropriated in
the FY 2011/12 Capital budget.
WHEREAS, the Mayor and City Commission, at the second budget hearing held on
September 27, 2011, amended the City's Resort Tax budget increasing the 2% Resort Tax
revenue by $500,000, to reflect updated projections as of August, 2011; and
WHEREAS, the Mayor and City Commission directed that the increased revenue be
used to increase the Resort Tax expenditure transfer to the General Fund for tourism - eligible
expenditures in the General Fund; and
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 hereby adopts the FY 2011/12 budgets for Special Revenue Funds as listed below:
SPECIAL REVENUE APPROPRIATIONS FY 2011/12
Resort Tax $47,605,327
7th Street Garage Operations 2,144,000
5th & Alton Garage- City's Share of Shortfall 343,330
Art in Public Places 1,342,387
Tourism and Hospitality Scholarship Program 89,850
Information and Communications Technology Fund 28,814
Total $51,553,708
PASSED and ADOPTED this 27th day of September, 2011.
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COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting the Fiscal Year (FY)
2011/12 budgets for Special Revenue funds for Resort Tax; 7 Street Garage Operations; City's Share of the
Shortfall Contribution Requirements for the 5 and Alton Parking Garage Operations; Art in Public Places (AiPP);
Tourism and Hospitality Scholarship Program and the Information and Communications Technology Fund — Debt
Service and Cit sourced . ro'ect.
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial Health and maintain overall bond rating
Increase Community Satisfaction with City Services
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2009 community survey, quality of life
in the City is rated highly, the City is seen as an `excellent' or 'good' place to live, work, play or visit, and over %'s of
residents would recommend it to others as a place to live. Impressively, 31 of the residential tracking questions from
2007 experienced increases in each of the areas measured by an overall average of approximately 7.0 %; and 28 of
32 business tracking questions experienced increases measured by an overall average of approximately 8.8 %.
Relevant findings were: arts and culture was one of services identified that the city should strive not to reduce; and
availability of public parking was one of the services identified as key drivers of overall satisfaction levels.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2011/12 budgets for Special
Revenue funds for Resort Tax; 7 Street Garage Operations; City's Share of the Shortfall Contribution Requirements
for the 5 and Alton Parking Garage Operations; Art in Public Places (AiPP); Tourism and Hospitality Scholarship
Program and the Information and Communications Technology Fund — Debt Service and Citysourced Project?
Item Summary /Recommendation:
The Administration recommends adopting the attached resolution which adopts the FY 2011/12 budgets for Special
Revenue funds for Resort Tax; 7 Street Garage Operations; City's Share of the Shortfall Contribution Requirements
for the 5 and Alton Parking Garage Operations; Art in Public Places (AiPP); Tourism and Hospitality Scholarship
Program and the Information and Communications Technology Fund — Debt Service and Citysourced project.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: 1 47,105,327 Resort Tax
2 2,144,000 7 Street Garage Operations
3 5 & Alton Garage - City's Share of Shortfall
343,330 Contribution Requirement
4 1,342,387 Art in Public Places
89,850 Tourism and Hospitality Scholarship Program
5 Information & Communications Technology
28,814 Fund —Debt Service
()BPI Total $51,053,708
City Clerk's Office Legislative Tracking:
Sign -Offs:
Department Directo Assistant City Manager City Manager
M AGENDA ITEM R? D I AM I BEACH r
DATE Q o� `I I
MIAMIB
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez <5 6
City Manager
DATE: September 27, 2011
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2011/12 BUDGETS
FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7 STREET
PARKING GARAGE OPERATIONS; CITY'S SHARE OF THE SHORTFALL
CONTRIBUTION REQUIREMENT FOR THE 5 AND ALTON PARKING
GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP), TOURISM AND
HOSPITALITY SCHOLARSHIP PROGRAM, AND THE INFORMATION AND
COMMUNICATIONS TECHNOLOGY FUND — DEBT SERVICE AND
CITYSOURCED MOBILE APPICATION PROJECT
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
ANALYSIS
The City currently offers certain programs and activities not supported through the general
operating budget, but by outside agency grants and self - supporting user fee programs. Funding
from these sources will be utilized as follows:
Resort Tax - $47,105,327
This fund accounts for the collection of the special tax levied citywide on food, beverage and
room rents used to support tourism related activities. This function, which operates under the
direction of the Finance Department and the Office of Internal Audit, is responsible for ensuring
that hotels, restaurants, bars and other establishments which serve food and beverages for
consumption on its premises, comply with Section 5.03 of the City Charter, as amended, as it
related to the reporting, and collection of resort taxes to the City.
An allocation for "operations" provides for all collection and audit expenses associated with
administering the Resort Tax function and are charged directly to this Special Revenue Fund.
Included in this allocation is funding for seven (7) FTE positions and associated operating
support totaling approximately $1,229,926.
City Commission Memorandum
Resolution Adopting FY 2011/12 Special Revenue Budgets
September 27 2011
Page 2
The allocation to the General Fund for Fiscal Year 2011/12 of approximately $26.4 million pays
for tourist related services and costs provided or managed by General Fund Departments.
Based on an outside consultant study conducted in 2010 using FY 2007/08 actual costs, it is
estimated that there are approximately $41.7 million in eligible resort tax expenditures in the
General Fund, net of South Pointe costs. This funding supports public safety programs including
our ocean rescue, police services on Lincoln Road, Ocean Drive /Lummus Park, Collins Avenue,
Washington Avenue, ATV officers, Boardwalk security, special traffic enforcement and special
event staffing; and fire rescue units in tourist and visitor areas as well as special event support
services. The funding also supports code compliance services to respond to evening
entertainment areas and for special events; provides for a portion of the operational costs of the
Tourism and Cultural Development Department; and provides a contribution to the Cultural Arts
Council beyond their annual interest allocation from the investment of City funds. In addition,
the Fiscal Year 2011/12 budget includes $2.1 million for special events and other eligible
expenses, previously funded from the General Fund.
The Fiscal Year 2011/12 budget also includes an allocation to the Greater Miami Convention
and Visitors Bureau (GMCVB) of approximately $5.2 million, $1.2 million for debt service, $1.8
million to the Miami Beach Visitor and Convention Center (VCA), $100,000 for a local Miami
Beach marketing campaign, to be augmented with funds from the GMCVB, the VCA, and the
Cultural Arts Council (CAC), $332,000 for enhancing the outcomes from major events such as
Memorial Day, including management, Goodwill Ambassadors, etc.
The proceeds of the additional one percent (1 percent) 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 1 percent budget also reflects the approved allocation method for the Quality of Life
funding, which includes the 25 percent for the arts, and to fund Quality of Life capital projects in
North Beach (25 percent), Middle Beach (25 percent), and South Beach (25 percent), as well as
various art and cultural programs or the maintenance and enhancement of Miami Beach's
tourist related areas. Please see Attachment "A" for the revenue and expenditure detail budget.
7th Street Garage - $2,144,000
The Parking Department is responsible for the collection of the revenues in this garage which
will be used to pay associated operating expenses and debt service. The operating budget is
required to cover operating expenses, debt service, and reserve for replacement. In the event
of any shortfall in projected revenues, the difference shall be made up by funds from excess
parking revenues.
Operating Expenses $1,258,085
Debt Service 792,200
Reserve - Renewal & Replacement 93,715
Total $2,144,000
City Commission Memorandum
Resolution Adopting FY 2011/12 Special Revenue Budgets
September 27 2011
Page 3
5 and Alton Garage - $343,330
The 5 and Alton Garage a.k.a. "Potamkin Garage" is a joint venture development between the
City of Miami Beach (City) and Potamkin /Berkowitz (Developer) where a condominium has been
established wherein the City and Developer contributes 46 percent and 54 percent, respectively,
to the operating expenses of the parking garage and also shares profits and losses consistent
with the aforementioned distribution. The Parking Department is responsible for the collection
of the revenues in this garage. In the event of any shortfall, the City's portion shall be made up
by funds from excess parking revenues.
Revenues
Transfer from FY 2011/12 Parking Operations Budget $343,330
Expenses
City's Share of Shortfall Contribution Requirement $343,330
Art in Public Places (AiPP) - $1,342,387
The Art in Public Places (AiPP) Ordinance (Ordinance No. 95 -2985) was adopted in 1995. The
ordinance was created to "enhance the aesthetic environment of the City of Miami Beach by
including works of art on public property within the City and in City construction projects." The
AiPP Ordinance was amended in May 2004 to clarify the definition of terms for eligible
construction projects for funding as well as the policy and procedures for appropriations. The
AiPP Guidelines were also adopted by the City Commission at that time.
The AiPP program is funded by 1 '/ percent of all hard costs of City projects, including new
construction, additions, and costs for construction of joint private /public projects. The fund is
used for the commission or acquisition of works of art; conservation and maintenance of works
of art; research and evaluation of works of art; printing and distribution of related materials; and
administration. The FY 2011/12 AiPP budget of $1,342,387 is funded from an appropriation of
prior year capital appropriation from fund balance in the amount of $1,342,387.
Expenses
Administration $119,084
AiPP Projects Under $25K 30,142
Reserve for AiPP Projects 1,077,614
Total $1,342,387
Tourism and Hospitality Scholarship Program - $89,350
The City of Miami Beach Tourism and Hospitality Scholarship Program began in 2003 in
partnership with the Greater Miami Convention and Visitors Bureau (GMCVB), SMG and
Centerplate. Contributions to the City's scholarship program were contractually required of the
three (3) entities. During the GMCVB's contract renewal in 2004, the requirement was removed
from their contract. In September of 2008, the City replaced SMG with Global Spectrum.
City Commission Memorandum
Resolution Adopting FY 2011/12 Special Revenue Budgets
September 27 2011
Page 4
Global Spectrum and Centerplate currently partner with the City on this program and contribute
$12,500 and $20,000 respectively annually. There is also a carry forward balance of $57,350
available.
The scholarship program is geared toward Miami Beach residents or graduates of Miami Beach
Senior High School who are enrolled or are planning to enroll in post- secondary education and
have expressed interest in the food and hospitality industry (as demonstrated by coursework
and extracurricular activities). Since the inception of the program, $205,150 has been awarded
to more than 37 different Miami Beach students.
Revenue
Carry forward balance $57,350
FY 2011/12 Contribution $32,500
Total $89,850
Expenses
Reserve for FY 2011/12 & Future Scholarships $89,850
Total $89,850
Information and Communications Technology Fund - Debt Service and CitySource
Mobile Application project - $28,814
The City's General Fund budget includes a transfer of $600,885 to the Information and
Communications Technology Fund. Of this amount, $26,814 is for debt service payment,
$2,000 is for the CitySourced Mobile Application project. The debt service payment of $26,814
is year 6 of 10 for the Enterprise Uninterrupted Power Supply (UPS) and Generator project.
In addition, $572,071 is appropriated in the FY 2011/12 Capital Budget for the following
projects: Conduit Repairs at City Facilities - $36,000; Interactive Voice Response - $295,186;
Log Management for PCI -DSS compliance - $80,500; Replacement Computers in North Shore
Youth Center and Communications, additional laptops for Code Compliance and Cameras in
the Commission Chamber - $106,385; and Info & Tech Contingency - $54,000.
CONCLUSION
The attached Resolution adopting funding for FY 2011/12 budgets from these sources is vital; to
the continuation of these projects and activities provided by the City.
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CITY OF MIAMI BEACH
PROPOSED FISCAL YEAR 2011/12 RESORT TAX FUND BUDGET
I
Actual Actual Adopted Proposed Prop 12 -Adp 11 % Diff
FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Variance
2% Revenues
Resort Tax $ 30,850,261 $ 34,238,666 $ 33,323,146 $ 37,869,362 $ 4,546,216 13 6%
Special Assessment -North Shore 376,405 327,615 - 255,215 239,365 (15,850) -6.2%
Special Assessment - Lincoln Road 370,862 371,611 344,486 281,543 (62,943) -18 3%
Interest Income 213,163 183,910 200,000 118,104 (81,896) -40 9%
Registration Fees, Filing Fees & Misc 12,324 4,531 0 0 0 0 0%
Total 2% Revenue $ 31,823,015 $ 35,126,333 $ 34,122,847 $ 38,508,374 $ 4,385,527 12.9%
2% Expenditures
Personnel Costs
Salaries & Wages $ 215,914 $ 263,226 $ 272,363 $ 280,531 $ 8,168 3 0%
Health, Life & Dental Insurance 11,332 14,433 13,649 16,304 2,655 19 5%
Pension Contributions & Other Benefits 76,152 104,830 58,946 74,434 15,488 26 3%
Total Personnel Costs $ 303,398 $ 382,489 $ 344,958 $ 371,269 $ 26,311 7 6%
Operating Costs
Professional Services $ 5,385 $ 3,448 $ 2,500 $ 2,500 $ 0 0%
Internal Audit/Resort Tax Auditors' Exp 609,917 645,679 625,232 670,939 45,707 7%
Administrative Fees - Internal Audit 52,900 52,900 24,939 58,713 33,774 135%
Telephone 909 771 1,500 1,500 0 0%
Postage 0 0 7,300 7,300 0 0%
Administrative Fees 26,450 26,450 31,483 56,655 25,172 80%
Rent - Building & Equipment 1,148 1,489 3,600 3,600 0 0%
Pnnting 725 1,000 100 100 0 0%
Office Supplies 1,175 1,652 750 750 0 0%
Other Operating Expenditures 14,371 106,593 1,000 1,000 0 0%
Travel 0 0 0 0 0 0%
Local Mileage 0 0 50 50 0 0%
Training 0 0 1,000 1,000 0 0%
Internal Service - Central Service 5,298 8,518 12,529 12,529 0 0%
Internal Service - Property Management 995 1,657 3,588 2,943 (645) -18%
Internal Service - Communications 4,738 11,120 7,052 7,185 133 2%
Internal Service - Self Insurance 16,463 14,898 20,405 20,098 (307) ' -2%
Internal Service - Computers 11,132 13,299 10,304 9,735 (569) -6%
Internal Service - Prop Mgmt/Electncal 1,608 1,938 2,476 2,060 (416) , , ' -17%
Total Operating Costs $ 753,214 $ 891,412 $ 755,808 $ 858,657 $ 102,849 14%
Total 2% Operating Expenditures $ 1,056,612 $ 1,273,901 $ 1,100,766 $ 1,229,926 $ 129,160 12%
2% Other Uses
Contnbution to VCA $ 1,483,481 $ 1,661,942 $ 1,599,511 $ 1,817,729 $ 218,218 14%
Contnbution to Bureau 5,591,004 5,070,151 5,135,000 5,253,105 118,105 2%
Marketing 116,406 117,303 200,000 100,000 (100,000) -50%
Goodwill Ambassadors 0 0 0 250,000 250,000 100%
Special Events 0 0 0 1,968,000 1,968,000 100%
Holiday Decorations 0 0 0 125,000 125,000 100%
Debt Service - North Shore 975,100 3,313,410 669,000 668,000 (1,000) 0%
Debt Service - Gulf Breeze 553,000 553,000 552,400 549,000 - (3,400) -1%
Enhanced Management of Major Events 0 0 0 82,174 82,174 100%
Contingency 0 0 400,730 0
(400,730) - 100%
Transfer to Service & Special Improvement
District Funds 0 735,553 0 0 0 0%
General Fund Contribution 21,865,440 24,415,990 24,465,440 26,465,440 2,000,000 8%
Total 2% Other Uses $ 30,584,431 $ 35,867,349 $ 33,022,081 $ 37,278,448 $ 4,256,367 13%
Net 2% $ 181,972 $ (2,014,917) $ 0 $ (0) $ (0) 0%
1% Revenues
Resort Tax $ 6,562,030 $ 7,472,331 $ 7,156,134 $ 8,596,953 $ 1,440,819 20 1%
Total 1% Revenue $ 6,562,030 $ 7,472,331 $ 7,156,134 $ 8,596,953 $ 1,440,819 20 1%
1% Expenditures
Other Designated Expenditures
South Beach - Quality of Life Capital $ 820,254 $ 934,041 $ 894,517 $ 1,074,619 $ 180,102 20%
Middle Beach - Quality of Life Capital 820,254 934,041 894,517 1,074,619 180,102 20%
North Beach - Quality of Life Capital 820,254 934,041 894,517 1,074,619 180,102 20%
Arts 820,254 934,041 894,517 1,074,619 180,102 20%
Total 1% Other Uses $ 3,281,015 $ 3,736,166 $ 3,578,067 $ 4,298,477 $ 720,409 20%
■
Debt Service - TIF Bonds $ 3,281,015 $ 3,736,166 $ 3,578,067 $ 4,298,477 $ 720,409 20%
Total 1% Expenditures $ 6,562,030 $ 7,472,331 $ 7,156,134 $ 8,596,953 $ 1,440,819 20%
Net 1% $ 0 $ 0 $ 0 $ 0 $ 0 0%
Total Resort Tax Revenues $ 38,385,045 $ 42,598,664 $ 41,278,981 $ 47,105,327 $ 5,826,346 14%
Total Resort Tax Expenditures $ 38,203,073 $ 44,613,581 $ 41,278,981 $ 47,105,327 $ 5,826,346 14%
Net $ 181,972 $ (2,014,917) $ (0) $ (0) $ 0 0%