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2013-28336 Reso 2013-28336 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADOPTION OF THE MIAMI BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2013/14 TENTATIVE BUDGET IN THE AMOUNT OF $11470,000, AS SET FORTH IN THE ATTACHED EXHIBIT A, SUBJECT TO A SECOND PUBLIC_ HEARING SCHEDULED ON MONDAY, SEPTEMBER 30, 2013 AT 5:03-,.� P.M. WHEREAS, the Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City Commission on March 5, 1997; and WHEREAS, the mission of the CAC is to develop, coordinate, and promote the visual and performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment and benefit of the residents of, and visitors to, Miami Beach; and WHEREAS, the Mayor and City Commission adopted the Cultural Arts Master Plan on June 3, 1998, identifying the following program areas for the CAC: cultural arts grants; marketing; facilities; advocacy and planning; and revenue development; and WHEREAS, pursuant to its enabling legislation, the CAC's budget for each fiscal year shall be adopted by the Mayor and City Commission; and WHEREAS, accordingly, the CAC recommends a $1,470,000 budget allocation for Fiscal Year 2013/14 to continue implementation of its program as set forth in the attached Exhibit "A". 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 authorize the adoption of the Miami Beach Cultural Arts Council's Fiscal Year 2013/14 budget in the amount of$1,470,000, as set forth in the attached Exhibit A, subject to a second public hearing scheduled on Monday,.September 30, 2013 at 5:02 p.m. PASSED and ADOPTED THIS . day of P 4ek 6Q Y'-- 2013. ATTEST' ,t ,� .2 a F" CITY CLERk MAYO ` APPROVED AS TO INCORR ORATE: TAAGENDA\2013\September 11\CAC e'�RESO 1 1 .doc FORM &LANGUAGE & FOR EXECUTION 'qty '41, ,ney Dat CAC - FY 2013/14 Request 140-6080 Budgeted Positions 2 Cultural Affairs Program Manager 100% Grants&Operations Administrator 100% FY 12/13 FY 12/13 Actuals as Proj.as of FY 13/14 Variance FY REVENUES Budget of 3/31/13 Q2 CSL 13 vs.FY 14 140-8000-361145 Interest Allocated-Pooled Cash 43,000 6,994 32,300 33,000 (10,000) 140-8000-366903 GMCVB 50,000 - 50,000 50,000 - 140-8000-381100 Quality of Life(25%of collected) 1,229,681 617,481 1,229,681 1,387,000 157,319 140-8000-381400 Resort Tax(Citywide) - - - - Fund Balance - - - - Total 1,322,681 624,475 1,311,981 1,470,000 147,319 FY 12/13 FY 12/13 Actuals as Proj.as of Variance FY EXPENDITURES Budget of 3/31/13 Q2 FY 14 CSL 13 vs.FY 14 140-6080-000111 Salaries 154,881 77,722 155,443 157,000 2,119 140-6080-000160 Pension-401A 4,836 2,333 4,665 5,000 164 140-6080-000161 Pension-City Contribution 37,887 - 37,887 50,000 12,113 140-6080-000162 Health&Life Insurance 14,101 6,609 13,287 15,000 899 140-6080-000165 Social Security Medicare 2,246 1,067 2,246 3,000 754 140-6080-000167 OPEB Contribution 17,788 - 17,788 20,000 2,212 140-6080-000168 OPEB Pay Go - - - 10,000 10,000 140-6080-000312 Professional Services 80,000 18,750 80,000 80,000 - 140-6080-000316 Telephones 720 246 660 800 80 140-6080-000321 Postage&Shipping 250 - 50 100 (150) 140-6080-000323 Rent-Building Equip 373 31 373 400 27 140-6080-000341 Office Supplies 1,780 251 1,780 2,000 220 140-6080-000343 Operating Expenses 4,626 969 4,550 4,500 (126) 140-6080-000345 Marketing 345 112,285 5,206 112,000 52,000 (60,285) 140-6080-000349 Grants 349 650,000 299,060 649,947 710,000 60,000 140-6080-000361 Dues&Memberships 1,125 150 1,125 1,200 75 140-6080-000367 Training&Awards 5,950 - 2,500 6,000 50 140-6080-000501 Intrnl Svc-Central Svc 2,719 1,454 2,719 3,000 281 140-6080-000504 Intrnl Svc-Telecom 7,289 3,645 7,289 7,000 (289) 140-6080-000505 Intrnl Svc-Self Insurance 57,195 28,598 57,195 31,000 (26,195) 140-6080-000506 Intrnl Svc-Applications 7,949 3,975 7,949 8,000 51 140-6080-000999 Contingency I i 1 304,000 Total 1,164,000 1 450,063 1 1,159,453 1 1,470,000 306,000 Surplus/(Deficit) 158,681 174,412 152,528 - (158,681) Exhibit A COMMISSION ITEM SUMMARY Condensed Title: A Resolution adopting the Miami Beach Cultural Arts Council's Fiscal Year 2013/14 budget in the amount of$1,470,000 subject to a second public hearing scheduled on Monday,September 30, 2013 at 5:03 p.m. Key Intended Outcome Supported: Increase community rating of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2012 Community Satisfaction Survey two out of three residents(67%)believed the City offered the right amount of cultural activities, while 27% said there were too few. In 2005, 34% of residents thought there were too few cultural activities, and in 2009 the figure decreased to 24%. Residents of North Beach (30%) and South Pointe (31%) were. more likely to say there were too few cultural activities. Item Summa /Recommendation: The Cultural Arts Council (CAC)2013/14 Budget is allocated as follows: Cultural Arts Grant Programs-The CAC's annual grants program represents 48% of their annual budget, which equals $710,000. A companion item is included in today's agenda that provides additional information on the grants process and the recommended awards. Marketing - Utilized to promote the City of Miami Beach as the region's preeminent cultural destination and help market the programs of the City's constituent arts groups.This represents 4% of their budget, which equals $52,000. Cultural Endowment-The CAC's budget does not include a contribution towards the City's Cultural Endowment for Fiscal Year 2013/14 due to budget constraints. Administration-Administrative expenses represent 17%or$250,000 of the CAC's annual for salaries & benefits and 10% or $154,000 for operating expenses. The operating budget includes an allocation of $75,000 for a curriculum-based arts education program for City of Miami Beach Schools. Contingency-A contingency of$304,000 is being set aside pending final direction from the City Commission regarding use of Quality of Life (QOL) resort tax funds for the North Beach circulator. Currently the QOL funds are split into 4 categories, North Beach, Middle Beach, South Beach and Arts. The Administration recommends adopting the Resolution. Advisory Board Recommendation: The Cultural Arts Council approved the proposed budget at their meeting on February 7, 2013. Financial Information: Source of Amount Account Approved Funds: 1 $1,470,000 140.6080 Cultural Arts Council Fund 2 3 4 ep Total $1,470,000 Financial Impact Summary: City Clerk's Office Legislative Tracking: Gary Farmer Sign-Offs: -7 D rttDire Assist t:City Manager ity Manager MAS KGB l JLM M M AGENDA ITEM DATE - -1 MIAMI BEACH City of Miami Beath, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Bower and Members the City Co ission FROM: Jimmy L. Morales, City Manage DATE: September 11, 2013 SUBJECT: A RESOLUTION OF THE MAYOR ND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADOPTION OF THE MIAMI BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2013/14 TENTATIVE BUDGET IN THE AMOUNT OF$1,470,000 SUBJECT TO A SECOND PUBLIC HEARING SCHEDULED ON MONDAY, SEPTEMBER 30, 2013 AT 5:03 P.M. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING The Cultural Affairs Program is funded by interest earned from the Resort Taxes and Quality of Life funds, Miami Beach Convention Center Capital Fund,and the GMCVB(per contract). ANALYSIS The Cultural Arts Council's(CAC)mission is to develop,coordinate,and promote the visual and performing arts in Miami Beach for the enjoyment, education, cultural enrichment, and benefit of residents and visitors. In 1997, the original nine-member volunteer board conducted town meetings with arts groups to evaluate their needs. It then developed a cultural arts master plan identifying programs to assist local arts groups:grants, marketing, facilities, revenue development, and advocacy/planning. The Mayor and City Commission adopted the master plan on June 3, 1998.Since that time the City has awarded in excess of $10 million in cultural arts grants,supporting thousands of performances,exhibits,and other cultural activities in Miami Beach. The CAC continually evaluates its programs and effectiveness based on comments from its constituent arts groups, advisers, grants panelists, community groups,elected officials, City administrators,and others.The positive economic impact of the City's cultural efforts is evident throughout the community as is its effect on our quality of life. Quality of Life Revenue In Fiscal Year 2004/05, the City Commission authorized equally allocating 50% of the 1% Resort Tax to North Beach, Middle Beach, and South Beach, and Tourism & Cultural Development for Cultural Affairs This commitment of funding for arts and culture provided a new permanent funding source that sustains cultural programming long term. Cultural Arts Grants The City Administration is recommending grants to 46 not-for-profit organizations for cultural events in Miami Beach between October 1, 2013 and September 30, 2014. The CAC's recommended annual budget for grants is$710,000 or approximately 48%of the total CAC budget. Included in this figure is the joint CAC/VCA program for Cultural Tourism grants that support cultural events with documented tourism benefits. The VCA provides$30,000 and the CAC provides $30,000 to fund this program. The grant awards range from $7,011 to $31,987. A total of$955,000 was requested by 46 viable grant applicants this year. There is a corresponding item in today's agenda detailing the recommended awards for Fiscal Year 2013/14. City Commission Meeting Cultural Arts Council Budget FY 13/14 September 11, 2013 Page 2 of 2 Marketing This year,the CAC has recommended$52,000 approximately 4%of its annual budget,to be utilized to promote the City of Miami Beach as the region's preeminent cultural destination. Last year's efforts continued the momentum initially generated by the marketing initiative from FY 2004/05, developed by the CAC's Marketing and Communications Task Force to better promote the arts in our community and market the programs of the City's constituent arts groups. The CAC will use these funds to further cultural marketing efforts for Fiscal Year 2013/14.The successful launch of an interactive"Mbculture.com"website features an extensive cultural calendar and allows the CAC's constituent groups to post advertisements about their events to its 3600 subscribers. Endowment From 1998 through 2001 the City contributed $200,000 towards the CAC's Cultural Endowment,8%of the CAC's annual budget. In fiscal years 2001/02 and 2002/03,due to a decrease in funding sources, the City contributed $160,000, 15% of the CAC's annual budget. Due to significant decreases in resort tax revenue and interest income,the City did not contribute to the CAC's Cultural Endowment for 2003/04. However, in fiscal years 2004/05, 2005/06 and 2006/07, the City contributed $100,000 each year. By the end of Fiscal Year 2006/07 the Cultural Endowment totaled$1,220,000.Over the last several years however, due to significant decreases in interest income and property tax cuts,the City did not contribute towards the CAC's Cultural Endowment and the City Administration is recommending against a contribution in 2013/14. Administration & Operating The CAC's annual budget also includes$250,000 or 17%for salaries and benefits for two full-time employees. In addition, operating expenses account for 10% of the CAC's annual budget or$154,000 and include, professional services, operating expenses supporting the CAC's programs, and City internal service charges. Included in the CAC's operating budget is an allocation of $75,000 to continue and strengthen curriculum-based arts education programs in City of Miami Beach schools, and after-school arts classes at school, park and youth center locations. The City began contracting for these services in 2005/06,following several years of CAC grant support for these programs. The programs are designed to increase arts and cultural activities for Beach youth and their families at City facilities and within the City schools. An established evaluative process and constant feedback assist the Cultural Affairs Program Staff in monitoring the high quality and continued success of these programs, which receive supplemental funding of$30,000 from the Tourism &Cultural Development General Fund Budget, bringing the total program costs to $105,000. Contingency A contingency of $304,000 is being set aside pending final direction from the City Commission regarding use of Quality of Life (QOL) resort tax funds for the North Beach circulator. Currently the QOL funds are split into 4 categories, North Beach, Middle Beach, South Beach and Arts. CONCLUSION The Administration recommends the Mayor and City Commission should adopt the Miami Beach Cultural Arts Council's Fiscal Year 2013/14 budget in the amount of$1,470,000. JLM/ 4A13\September F/MH TAAG 11\CAC Budget Memo 1314.doc Cultral Arts Council - FY 2013/14 Proposed Budget Budgeted Positions 2 Cultural Affairs Program Manager 100% Grants&Operations Administrator 100% FY 11/12 FY 12/13 FY 13/14 Variance FY REVENUES Actual Budget Proposed 13 vs. FY 14 Interest Allocated -Pooled Cash $ 32,562 $ 43,000 $ 33,000 $ (10,000) GMCVB 50,000 50,000 50,000 0 Quality of Life(25%of collected) 1,229,681 1,071,000 1,387,000 316,000 Resort Tax(Citywide) 152,000 0 0 0 Fund Balance 0 0 0 Total $ 1,464,243 $ 1,164,000 $ 1,470,000 $ 306,000 FY 11/12 FY 12/13 FY 13/14 Variance FY EXPENDITURES Actuals Budget Proposed 13 vs. FY 14 Salaries $ 182,619 $ 154,881 $ 157,000 $ 2,119 Benefits 51,365 76,858 93,000 16,142 Operating Expenses 94,037 94,824 95,000 176 Marketing 345 171,202 112,285 52,000 (60,285) Grants 349 612,343 650,000 710,000 60,000 Internal Services 70,922 75,152 59,000 (16,152) Contingency 304,000 304,000 Total $ 1,182,488 $ 1,164,000 $ 1,470,000 $ 306,000 Surplus/(Deficit) $ 281,755 $ - $ - $ - SS I THURSDAY.AUGUST 29.2013 Hi LOCAL&STATE MiamiHeraldxom I MIAMI HERALD Lj AI AM I EEIEA(,� CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARINGS wmx is wamay gnarl tr-at pubic tvaongswis to hafj pyiftwmandcity carnmizbn of"my of wayi Smortsorida,in CmjtW, Mianl3each,RonM or V*dnesfty.SePbAlberli. 2M3 to co-adw"fdk)WtV wi part. 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