591-2012 RDA Reso RESOLUTION NO. 591-2012
A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF
THE MIAMI BEACH REDEVELOPMENT AGENCY ADOPTING
AND APPROPRIATING THE FIRST AMENDMENT TO THE
FISCAL YEAR 2011/12 OPERATING BUDGET FOR THE CITY
CENTER REDEVELOPMENT AREA, THE ANCHOR SHOPS
AND PARKING GARAGE AND THE PENNSYLVANIA AVENUE
SHOPS AND PARKING GARAGE FOR ITEMS THAT ARE
OVER-BUDGET FOR FISCAL YEAR 2011/12.
WHEREAS, the City Center Redevelopment Area Budget for Fiscal Year 2011/12
was prepared and adopted with the overall City budget by detailed line item on September
27, 2011; and
WHEREAS, the Administration had completed a preliminary analysis of revenues
and expenses for the fiscal year ended September 30, 2012 for the City Center
Redevelopment Area; the Anchor Shops and Parking Garage and the Pennsylvania
Avenue Shops and Parking Garage (hereinafter, collectively referred to as "Budget"),
reflected in Exhibit A attached hereto;
WHEREAS, certain expenditure categories in the City Center Redevelopment Area
Budget for Fiscal Year 2011/12 exceed the adopted budget, requiring a budget
amendment as the budget was adopted at a detailed level; and
WHEREAS, in order to address instances where actual expenditures for line items
exceeding budget for the reasons described in the related commission memorandum, the
Interim Executive Director recommends adopting a First Amendment to the FY 2011/12
Operating Budget for the City Center Redevelopment Area,the Anchor Shops and Parking
Garage and the Pennsylvania Avenue Shops and Garage for FY 2011/12.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CHAIRPERSON AND
MEMBERS OF THE MIAMI BEACH REDEVELOPMENT AGENCY,that the Chairperson
and Members hereby adopt and appropriate the first amendment to the Fiscal Year
2011/12 operating budget for the City Center Redevelopment Area,the Anchor Shops and
Parking Garage and the Pennsylvania Avenue Shops and Garage for the items that are
over budget for Fiscal Year 2011/12 as shown on the attached schedules.
RDA OPERATING BUDGET __
FY 2011/12
FY 2011/12 t Adjustment I FY 2011/12
Budget 11/14/2012 Amended Budget
Revenues and Other Sources of Income
Tax Increment-City .$18,337,693 $ $ 18,337,693
Proj Adjustment to City Increment (1,326,883) (429,574) (1,756,457)
Tax Increment-County 14,291,236 14,291,236
Proj Adjustment to County Increment (1,262,3) (104,773)1 (1,367,157)
50% Contribution from Resort Tax 4,298,477 371,36 4,669,831
1/2 Mill Children's Trust Contribution 1,487,121 (6,117)1 1,481,004
Interest Income 179,000 (170,722)1 8,278
Fund Balance Renewal and Replacement 1,370,981 (399,322) 971,659
Other Income/Adjustments: 5,196 5,19d6
TOTAL REVENUES $37,375,241 $ (733,958)1 $ 36,641,283
Admin/Operating Expenses
Management fee(salaries & benefits) $ 1,010,901 $ 1,589 $ 1,012,490
Postage, printing & mailing 4,123 4,123
Office supplies & equipment 3,810 3,810
Meetings & conferences 1,351 1,351
Dues & subscriptions 1,260 1,260'
Audit fees 9,000 11,260
Professional & related fees 251,000 ----��0-1OON— 201,000
Repairs and Maintenance 84,857 (50,000) 34,857
Miscellaneous expenses 1 105,9981 (50,000)1 55,998
Total Admin/Operating Expenses $ 1,472,300 $ (137,151) $ 1,335,149]
Project Expenses
Community Policing $ 3,413,695 $ $ 3,413,695
Capital Projects Maintenance: - -
Greenspace 622,896 (74,417) 548,479
Sanitation 2,661,686 (50,000) 2,611,686
Property Management 1,061,006 1,061,006
Transfer to Penn Garage Parking 48,801 217,190 265,991
Transfer to Penn Garage Retail 347,112 347,112
Transfer to Capital/Renewal and Replacement 13,541,301 13,541,301
Total Project Expenses $21,696,497 $ 92,7731 $ 21,789,270
Reserve and De bt Service Obligations
Debt Service Cost-2005+ Parity Bonds $ 8,393,816 $ 120,420 1 $ 8,514,236
Current Debt Service-Lincoln Rd Project 1,103,366 1,103,366
Current Debt SenAce-Bass Museum--- 502,746j________j 502,746.
Reserve for County Admin Fee 195,433 195,433
Reserve for CM Contribution 255,162 255,162
Reserve for Children's Trust Contribution 1,487,121 l 1,487,121
I Reserve for Collins Park Parking Garage 2,268,800 (810,000) 1,458,800
Repayment-Prior Yr Fund Balance -
Total Reserve and Debt Service $14,206,444 $ (689,580)1 $ 13,516,864
TOTAL EXPENSES AND OBLIGATIONS 1 $37,375,241 $ (733,958)1 $ 36,641,283
REVENUES -EXPENSES i $ 0 s $ 0
FY 2011/12 Anchor Shops and Parking Garage (16th Street Parking Garage
FY 2011/12
FY 2011/12 Adjustment FY 2011/12
Revenues: Budget 11/14/2012 Amended Budget
Parking Operations $ 2,885,000 $ 2,885,000
Retail Leasing 714,150 714,150
Interest Pooled Cash 27,433 a 27,433
TOTAL REVENUES $ 3,626,583 $ - $ 3,626,583
f
Operating Expenses:
Parking Operations $ 11773,125 1 $ 101,648 $ 1,874,773
Garage Use Fee(To Loews) 408,800 31,442 440,242
Retail Leasing Property Management Fee _ 62,720 24,879 87,599
Retail Internal Service Charges 41,129 41,129
Management Fee to General Fund 206,221 206,221
Reserve for Future Capital -Parking Operations - 520,435 (100,000) 420,435
Reserve for Future Capital -Retail Operations_- 614,153 (57,969)1 556,184 , E
TOTAL EXPENSES - $ 3,626,583 $ - $ 3,626,583 €
REVENUES -EXPENSES $ - $ - $ -
FY 2011/12 Pennsylvania Ave Shops and Garage Operating
FY 2011/12
FY 2011/12 Adjustment FY 2011/12
Revenues: Budget 11/14/2012 Amended Budget
Parking Operations _ $ 521,400 $ 97,350 $ 618,750
Retail Leasing - '-- 292,763 (145,640) 147,123
Parking Transfer from RDA Operations 48,801 217,190 _ 265,991
Retail Transfer from RDA Operations 347,112 - 347,112 _
Interest Pooled Cash - 74 74
TOTAL REVENUES $ 1,210,076 $ 168,974 $ 1,379,050
Operating Expenses:
Parking Operations Expenditures $ 453,678 $ 202,271 $ 655,949
Parking Base Fee I 45,368 - __ _45,36_8
Garage Ground Lease - 23,552 - 23,552
Garage Management Fee- 47,604 - 47,604
( Retail Ground Lease 276,448 - 276,448
Contingency - 10,000 __._. (10,000) � -
Leasing Commissions 326,697 (23,297) 303,400
Retail Management Fee 26,729 - 26,729
TOTAL EXPENSES $ 1,210,076 $ 168,974 $ 1,379,050
REVENUES -EXPENSES _ �----_ $ �; Is -^ - Is - `-
PASSED AND ADOPTED THIS 14T" DAY OF NOVEMBER, 2012.
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T:\AGENDA\2012\Nov 14\RDA Budget Amendment Reso.doc
APPROVED AS TO
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MIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting the First
Amendment to the FY 2011/12 Operating Budgets for the City Center Redevelopment Area, the Anchor Shops and
Parking Garage and the Pennsylvania Avenue Shops and Garage for FY 2011/12.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
Supporting Data (Surveys, Environmental Scan, etc.):
One of the City's Key Intended Outcomes is to ensure well designed and well maintained capital projects and
infrastructure. In keeping with this goal, approximately 74 percent of actual expenditures in FY 2011/12 were allocated
towards capital expenditures including new capital projects and renewal, maintenance and replacement of existing RDA
capital infrastructure.
Issue:
Should the RDA Board adopt the proposed first amendment to the FY 2011/12 Operating Budgets for the City Center
Redevelopment Area, the Anchor Shops and Parking Garage, and the Pennsylvania Avenue Shops and Garage for FY
2011/12?
Item Summa /Recommendation:
The Administration has completed a preliminary analysis of revenues and expenses for the fiscal year ended September
30,2012,for the City Center Redevelopment Area,the Anchor Shops and Parking Garage and the Pennsylvania Avenue
Shops and Parking Garage.
- Redevelopment Area(RDA)—With approval of the resolution,the adopted budget will be reduced by$733,958
to reflect decreased revenues and changes to individual expenditure categories in excess of budget.
- Anchor Shops and Parking Garage—Overall the adopted budget for Anchor Garage and Shops came in under
budget, however, specific categories are in excess of budget requiring a budget amendment.
- Pennsylvania Avenue Shops and Parking Garage—With approval of the resolution, the adopted budget will
be increased by$168,974 to fund Parking Operations Expenditures that exceeded the budget.
This requires an amendment to adjust both the revenue and expenditure budgets as shown in the attached.
Advisory Board Recommendation:
N.A.
Financial Information:
Source of Amount Account
Funds: 1 ($733,958) Redevelopment Area(RDA)
2 - Anchor Shops and Parking Garage
3 $168,974 Pennsylvania Avenue Shops and Parking Garage
OBPI
City Clerk's Office Legislative Tracking:
Victoria Kroger, Georgette Daniels and Kathie Brooks
Sign-Offs:
Assistant Interim Executive
RDA Director RDA Director RDA
/MP MS KGB
T:\AGENDA\2012\12-14-12\Budget Amendment Summ.doc
MIAMIBEACH AGEPDA ITEM C
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MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Beach Redevelopment Agency
FROM: Kathie Brooks, Interim Executive Director
DATE: November 14, 2012
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY ADOPTING AND APPROPRIATING THE FIRST
AMENDMENT TO THE OPERATING BUDGET FOR THE CITY CENTER
REDEVELOPMENT AREA, THE ANCHOR SHOPS AND PARKING GARAGE AND THE
PENNSYLVANIA AVENUE SHOPS AND PARKING GARAGE FOR ITEMS THAT ARE
OVER-BUDGET FOR FISCAL YEAR 2011/12.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The Fiscal Year 2011/12 year-end budget to preliminary actual comparisons is provided in the
attached. It is important to note that the Finance Department is still preparing ear-end accruals and
P P P P 9Y
adjustments through November 15, 2012, as part of the year-end accrual process. The proposed
budget amendment represents the budget amendment required by state law for departments or
accounts that exceed their appropriated authority.
In past years,the preliminary year-end analysis has been prepared in the early part of the next calendar
year. In an effort to provide this information on a more timely basis, the analysis and recommended
amendments presented herein are therefore still subject to change. However, staff in the Office of
Budget and Performance Improvement and the Finance Departments has worked to identify any major
adjustments that might be needed, particularly in the expenditure area that would impact the required
appropriation authority. We will continue to refine the estimate and present an update once the year-
end close-out process is complete, typically in the March timeframe.
Details of the preliminary estimated year-end expenditures are provided on the attached schedules,
along with an explanation of major variances below.
RDA OPERATING BUDGET
With this amendment, the RDA operating budget will be reduced by $733,958 to reflect decreased
revenues and changes to individual expenditure categories in excess of budget.
November 8, 2012
Redevelopment Agency Memorandum
First Amendment to the FY 2011112 Operating Budget for City Center Redevelopment Area, the Anchor Shops and
Parking Garage and the Pennsylvania Avenue Shops and Garage for FY 2011112
Page 2 of 3
Operating Budget- Revenues The budgeted revenues in the RDA will be reduced by $733,958 to
better reflect preliminary actual revenues. This is partially due to an increase in the County's
adjustment for the finalization of the prior year's tax roll, resulting in a$534,347 decrease in actual TIF
revenues compared to budget. The Budget also reflected a transfer of funds from Capital Renewal and
Replacement totaling $1,370,981,to fund certain capital renewal and replacement projects scheduled
in FY 2011/12. It was subsequently determined that only$971,659 was available from the City Center
Renewal and Replacement Account. Interest revenue also came in below budget by $170,722. The
shortfall was partially offset by a$371,354 increase in contributions from the Resort Tax fund,which is
based on 50% of the 1% Resort Tax revenues collected.
Operating Budget — Expenditures Based on preliminary year-end operating results and barring
further final journal entries and adjustments,the total admin/operating expenditures for FY 2011/12 are
estimated at $36,445,345, or $195,938 below the amended budget as shown on the attached
schedule. However, individual categories for debt service, audit fees, and management salaries and
benefits were slightly in excess of budget. Further, an additional$217,190 had to be transferred to the
Pennsylvania Avenue Shops and Parking Garage Fund to offset operating losses described further
below.
ANCHOR SHOPS AND PARKING GARAGE
Overall the adopted budget for Anchor Shops and Parking Garage came in under budget primarily due
to unspent reserves for capital repairs and projects in both Parking and Retail Operations, however,
specific categories are in excess of budget requiring a budget amendment.
Revenues at the Anchor Shops and Parking Garage in FY 2011/12 are estimated to be $104,721
greater than budgeted revenues, offset by increased expenditures. Garage Revenues are in excess of
budget by approximately$230,000, more than sufficient to offset the approximately$100,000 increase
in Parking Operations expenditures and $30,000 increase in revenue-sharing obligations to the Loews.
Retail revenues came in $101,647 below forecast due to a prolonged, year-long vacancy, which has
recently leased. However, the additional overall revenue is more than sufficient to cover the Retail
Leasing Property Management Fee-$24,879, which includes the amortization of brokerage fees not
included in the adopted budget. In addition, Interest revenues were approximately $23,000 below
budget.
PENNSYLVANIA AVENUE SHOPS AND GARAGE
Overall the adopted budget for Pennsylvania Avenue Shops and Garage came in over budget primarily
due to funding for future renewal and replacement which is recommended based on prior year
depreciation levels.
Revenues at the Pennsylvania Shops and Garage in FY 2011/12 are estimated to be$168,974 greater
than budgeted revenues, offset by increased expenditures. Revenues at the recently opened
Pennsylvania Avenue Garage are$97,350 more than budgeted; however, retail revenues are$145,640
below budget. This was due to the adoption of certain amendments to the Tenant's Lease, which
adjusted and temporarily deferred three-months' lease payments to assist the Tenant in offsetting its
build-out and start-up costs. The revenues reflect an additional transfer of$217,190, as explained
above to offset the increased expenditures.
November 8, 2012
Redevelopment Agency Memorandum
First Amendment to the FY 2011112 Operating Budget for City Center Redevelopment Area, the Anchor Shops and
Parking Garage and the Pennsylvania Avenue Shops and Garage for FY 2011112
Page 3 of 3
In consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the RDA on
City-owned property, the operation of the facility has been structured in the form of a ground lease
between the City and the RDA, providing terms for both the garage and retail operations. Expenditures
for the garage include ground lease rent payments, an administrative fee (consistent with that of the
Anchor Garage) and the Parking Department's operational fee. In total, the garage and retail
expenditure budgets were exceeded by $168,974. Total expenditures for the garage operations
exceeded budget by$202,271, due to the funding for future renewal and replacement, which was not
included in the FY 2011/12 adopted budget. Operating expenses for the retail area came in $33,297
under budget.
CONCLUSION
In order to address the existing and future obligations in the Redevelopment Area, it is recommended
that the Redevelopment Agency adopt the attached Resolution, which amends the FY 2011/12
budgets for the City Center Redevelopment Area, the Anchor Shops and Parking Garage and the
Pennsylvania Avenue Shops and Garage.
KGB/MS/MPNK/GD/KOB
Attachment
T:/Agenda/2012/11-12-12/RDA First Amendment 2011_12 Memo.doc
Miami Beach Redevelopment Agency
FY 2011/12 Budget to Year End Actuals
FY 2011/12 FY 2011/12
FY 2011/12 Adjustment FY 2011/12 Preliminary
Budget 11/14/2012 Amended Budget Year-End Actuals
Revenues and Other Sources of Income
Tax Increment-City $18,337,693 $ - $ 18,337,693 $ 18,337,693
Proj Adjustment to City Increment (1,326,883) (429,574) (1,756,457) (1,756,457)
Tax Increment-County 14,291,236 - 14,291,236 14,291,236
Proj Adjustment to County Increment (1,262,384) (104,773) (1,367,157) (1,367,157)
50%Contribution from Resort Tax 4,298,477 371,354 4,669,831. 4,669,831
1/2 Mill Children's Trust Contribution 1,487,121 (6,117) 1,481,004 1,481,004
Interest Income 179,000 (170,722) 8,278 8,278
Fund Balance Renewal and Replacement 1,370,981 (399,322) 971,659 971,659
Other Income/Adjustments: 5,196 5,196 5,196
TOTAL REVENUES $37,375,241 $ (733,958) $ 36,641,283 $ 36,641,283
Admin/Operating Expenses
Management fee(salaries&benefits) $ 1,010,901 $ 1,589 $ 1,012,490 $ 1,012,490
Postage,printing &mailing 4,123 4,123 -
Office supplies&equipment 3,810 3,810 1,207
Meetings&conferences 1,351 1,351
Dues&subscriptions 1,260 1,260 795
Audit fees 9,000 11,260 20,260 20,260
Professional&related fees 251,000 (50,000) 201,000 175,373
Repairs and Maintenance 84,857 (50,000) 34,857 31,489
Miscellaneous expenses 105,998 (50,000) 55,998 44,164
Total Admin/Operating Expenses $ 1,472,300 $ (137,151) $ 1,335,149 $ 1,285,778
Project Expenses
Community Policing $ 3,413,695 $ - $ 3,413,695 $ 3,411,726
Capital Projects Maintenance: - - -
Greenspace 622,896 (74,417) 548,479 506,242
Sanitation 2,661,686 (50,000) 2,611,686 2,560,468
Property Management 1,061,006 1,061,006 1,030,973
Transfer to Penn Garage Parking 48,801 217,190 265,991 265,991
Transfer to Penn Garage Retail 347,112 347,112 347,112
Transfer to Capital/Renewal and Replacement 13,541,301 13,541,301 13,541,301
Total Project Expenses $21,696,497 $ 92,773 $ 21,789,270 $ 21,663,813
Reserve and Debt Service Obligations
Debt Service Cost-2005+Parity Bonds $ 8,393,816 $ 120,420 $ 8,514,236 $ 8,514,236
Current Debt Service-Lincoln Rd Project 1,103,366 1,103,366 1,103,366
Current Debt Service-Bass Museum 502,746 502,746 502,746
Reserve for County Admin Fee 195,433 195,433 193,861
Reserve for CMB Contribution 255,162 255,162 248,718
Reserve for Children's Trust Contribution 1,487,121 1,487,121 1,481,004
Reserve for Collins Park Parking Garage 2,268,800 (810,000) 1,458,800 1,451,823
Repayment-Prior Yr Fund Balance - -
Total Reserve and Debt Service $14,206,444 $ (689,580) $ 13,516,864 $ 13,495,754
TOTAL EXPENSES AND OBLIGATIONS $37,375,241 $ (733,958) $ 36,641,283 $ 36,445,345
REVENUES-EXPENSES $ 0 $ - $ 0 $ 195,938
FY 2011/12 Anchor Shops and Parking Garage (16th Street Parking Garage)
FY 2011/12
FY 2011/12 Adjustment FY 2011/12 FY 2011/12
Revenues: Budget 11/14/2012 Amended Budget Year-End Actuals
Parking Operations $ 2,885,000 $ 2,885,000 $ 3,114,778
Retail Leasing 714,150 714,150 612,503
Interest Pooled Cash 27,433 27,433 4,023
TOTAL REVENUES $ 3,626,583 $ - $ 3,626,583 $ 3,731,304
Operating Expenses:
Parking Operations $ 1,773,125 $ 101,648 $ 1,874,773 $ 1,874,773
Garage Use Fee(To Loews) 408,800 31,442 440,242 440,242
Retail Leasing Property Management Fee 62,720 24,879 87,599 87,599
Retail Internal Service Charges 41,129 41,129 41,129
Management Fee to General Fund 206,221 206,221 196,740
Reserve for Future Capital-Parking Operations 520,435 (100,000) 420,435
Reserve for Future Capital-Retail Operations 614,153 (57,969) 556,184 -
TOTAL EXPENSES $ 3,626,583 $ - $ 3,626,583 $ 2,640,483
REVENUES-EXPENSES $ - $ - $ - $ 1,090,821
FY 2011/12 Pennsylvania Ave Shops and Garage Operating
FY 2011/12
FY 2011/12 Adjustment FY 2011/12 FY 2011/12
Revenues: Budget 11/14/2012 Amended Budget Year-End Actuals
Parking Operations $ 521,400 $ 97,350 $ 618,750 $ 618,750
Retail Leasing 292,763 (145,640) 147,123 147,123
Parking Transfer from RDA Operations 48,801 217,190 265,991 265,991
Retail Transfer from RDA Operations 347,112 - 347,112 347,112
Interest Pooled Cash - 74 74 74
TOTAL REVENUES $ 1,210,076 $ 168,974 $ 1,379,050 $ 1,379,050
Operating Expenses:
Parking Operations Expenditures $ 453,678 $ 202,271 $ 655,949 $ 655,949
Parking Base Fee 45,368 - 45,368 45,368
Garage Ground Lease 23,552 - 23,552 23,552
Garage Management Fee 47,604 - 47,604 47,604
Retail Ground Lease 276,448 - 276,448 276,448
Contingency 10,000 (10,000) - -
Leasing Commissions 326,697 (23,297) 303,400 303,400
Retail Management Fee 26,729 - 26,729 26,729
TOTAL EXPENSES $ 1,210,076 $ 168,974 $ 1,379,050 $ 1,379,050
REVENUES-EXPENSES $ - $ - $ - $ -
i