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01.20.17 FCWP Supplemental to Item 14 FINANCE AND CITYWIDE PROJECTS COMMITTEE SUPPLEMENTAL TO ITEM #14 Commission Chambers, 3RD Floor, 1700 Convention Center Drive January 20, 2017 AT 2:30 PM Committee Members Commissioner Ricky Arriola, Chair Commissioner Joy Malakoff, Vice Chair Commissioner John Aleman, Member Commissioner Micky Steinberg, Alternate Allison R. Williams, Committee Liaison SUPPLEMENTAL TO ITEM #14 NEW BUSINESS 14. Discuss Urging The Florida Legislature To Collect A 1% Tax On Food And Beverage Consumption To Fund Efforts to End Homelessness (January 11, 2017 Commission R9V) Maria Ruiz – Housing and Community Services Director Referred by Commissioner: Ricky Arriola Status: Item enclosed. Discuss Urging The Florida Legislature To Collect A 1% Tax On Food And Beverage Consumption To Fund Efforts to End Homelessness Finance and Citywide Projects Committee January 20, 2017 Page 2 of 4 An additional one percent would increase the sales tax rate for food and beverage establishments in Miami Beach with gross revenues of more than $400,000 per year to 10% (excluding hotels and motels). CITY OF MIAMI BEACH SERVICES The City's Homeless Outreach Team continues expanding its service capacity. As a reminder, the City operates the sole municipal walk-in center for homeless services in Miami-Dade County. The following is the Office's service numbers for last year as well as thus far this fiscal year: While the City's initial intake services, refers homeless individuals to shelter placements, a critical success of City service is the transition to transitional or permanent housing through a coordinated care effort, including care coordination (replaces traditional case management) and employment, as outlined below. Calendar Year 2015 FY15/161 Service/Activity Number Service/Activity Number Census Count (January 2015) 193 Census Count (January 2016) 156 Client Contacts (Office & Street) 2,094 Client Contacts (Office & Street) 3,334 Homeless Clients (unduplicated) 1,214 Homeless Clients (unduplicated) 1,033 1 Data for FY 15/16 IS from October 1, 2015 through June 1, 2016 Despite the very high street population, our City is very effective in sheltering those who want help as well as obtaining permanent housing for those who follow their care plan as demonstrated by the service data: Calendar Year 2015 FY 15/16 Service/Activity Number Service/Activity Number Client Relocations 78 Client Relocations 55 Shelter Placements 540 Shelter Placements 548 Clients Transitioned to Permanent Housing 91 Clients Transitioned to Permanent Housing 43 Permanent Homeless Reduction RateL 47% Permanent Homeless Reduction Rate 28% .. . . 2 Percentage of permanent trans1t1ons as compared to off1c1al homeless count The City purchases 52 emergency shelter beds from the following providers: • Camillus House (single men) • Lotus House (women and children) • Miami Rescue Mission (single men) • The Salvation Army (women, men and families with children) The City also has placement privileges for up to 55 additional beds provided by the Trust. The number of beds available fluctuates depending on their use by the City of Miami. As a member of the Miami-Dade County Continuum of Care, the City is one of two outreach teams for the County ; the City of Miami is the other outreach team. A Continuum of Care (CoC) is a regional or local planning body that coordinates housing and services funding for homeless families and individuals and is a requirement for jurisdictions receiving federal funds from the US Department of Housing and Urban Development (HUD). Discuss Urging The Florida Legislature To Collect A 1% Tax On Food And Beverage Consumption To Fund Efforts to End Homelessness Finance and Citywide Projects Committee January 20, 2017 Page 4 of 4 HOMELESS CENSUS The City's homeless census for January, 2016 reflected 156 homeless people in our City, a 19 percent decrease from the prior January. In comparison, the total number of unsheltered persons in Miami fell by two percent to 982 people for the same period . The August count for the City of Miami Beach increased to 208, a 6% increase from the August 2016 count of 196., it is important to note that the count for the Miami increased as well , from 1067 to 1126, a similar 6 percent increase. It cannot be determined whether this is a trend or a fluctuation, The next homeless census is scheduled for January 26, 2017. CONCLUSION The administration is seeking direction on this issue . JLM/KGB/MLR ATTACHMENT 1 APPENDIX 0 : TRANSIENT LODGING AND FOOD AND BEVERAGE TAXES FOR TOURIST DEVELOPMENT, CONVENTION DEVELOPMENT, AND HOMELESS AND DOMESTIC VIOLENCE PROGRAMS AND FACILITIES Tax Imposed Permissible Use Distributed To 2% Tourist 1978 Convention centers, arenas, 60% less $1,100,000 to Greater auditoriums; promote and advertise Miami Convention and Visitors Development** tourism; convention/tourist bureaus; Bureau ; 20% to Dept. of Cultural ·Transient Lodging beach maintenance/improvements Affairs; 20% to facilities within the City of Miami ; $1,100,000 to the Tourist Development Council grants Florida Statutes Section 125.0104; County Code section 29-51 2% Tourist 1990 Countywide convention/visitors bureau 100% less $100 ,000 to Greater Development Surtax** for promotional activity Miami Convention and Visitors -Food and Beverages Bureau $100,000 to To urist (sold in hotels and motels) Development Council Florida Statutes Section 212. 0306; County Code section 29-51 3% Convention 1983 2/3 to largest public convention center Miami-Dade County for bond Development*** then excess to County for payments for the Performing Arts -Transient Lodging constructing/operating stadiums , Center and neighborhood arenas, auditoriums, exhibition halls , cultural facilities, Performing Arts light rail systems; 1/3 to be spent in Center operations , American most populous city for eligible projects Airline Arena such as constructing/operating operations/maintenance, stadiums , arenas , auditoriums , and lnterlocal payments to City of exhibition halls Miami Beach and City of Miami; residuals to Miami-Dade County for eligible projects Florida Statute 212.0305 (4)(b); County Code section 29-60 1% Professional 1990 To pay debt service on bonds issued to Miami-Dade County to pay debt Sports Franchise** finance construction, reconstruction or service on bonds -Transient Lodging renovation of a professional sports franchise facility Florida Statute 125.0104 (3)(1); County Code section 29-51 1% Food and Beverage 1993 85% for homeless programs and 15% Approximately 85% to Homeless Tax for Homeless and for the construction and operation of Trust and approximately 15% to domestic violence centers Miami -Dade County for domestic Domestic Violence** violence centers (premises of consumption excluding hotels and motels) Florida Statute 212.0306; County Code section 29-51 NOTE: Pursuant to state statute, FY 20 16-1 7 estimates are budgeted at 95% of estimated revenues * Excluding collection fees **Geographic area incldues Miami-Dade County except Miami Beach , Bal Harbour and Surfside ***Geographic area inclduesMiami-Dade County except Bal Harbou r and Surfside 210 Collections* FY 2014-15 Actual: $ 24,918,694 FY 2015-16 Projection: $ 27,090,000 FY 2016-17 Estimate: 28,069,000 FY 2014·15 Actual: $ 7,580,192 FY 2015-16 Projection: $ 7,979,000 FY 2016-17 Estimate : $ 8,298 ,000 FY 2014-15 Actual: $ 75 ,512,712 FY 2015-16 Projection: $ 80 ,125,000 FY 2016-17 Estimate: 84 ,978 ,000 FY 2014-15 Actual : 12,459,347 FY 2015-16 Projection: $ 13,545 ,000 FY 2016-17 Estimate: $ 14,034 ,000 FY 2014-15 Actual : $ 23,091 ,177 FY 2015-16 Projection : $ 24,358 ,000 FY 2016-17 Estimate : $ 25 ,819 ,000 Office of Economic and Demographic Research History of Local Option Tourist Tax Levies Summary of Impositions, Expirations, and Rate Changes ### Active Levies, as of July 1, 2016, Are Noted in Bold Italics. ### County I Action I Rate I Effective Date I Expiration Date Note: The Miami-Dade municipalities of Bal Harbour and Surfside impose a 4 % Mun icipal Resort Tax and are exempt from the county's levies of the Tourist Development Tax and Convention Development Tax. The municipality of Miami Beach imposes a 4 % Municipal Resort Tax and is exempt from the county's Tourist Development Tax levy, but is not exempt from the county's Convention Development Tax levy. Data Source: Florida Department of Revenue's "History of Local Sales Tax and Current Rates" (Last Updated: July 1, 2016). https://revenuelaw.state. fl. us/Pages/Browse .aspx#3-17 -23 201 6 Lo ca l Gove rn ment Fin a ncia l Information Ha nd book Page 244 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF MIAMI BEACH URGING THE FLORIDA LEGISLATURE TO AMEND SECTION 212.0306, FLORIDA STATUTES, AND ALLOW FOR THE COLLECTION OF A ONE PERCENT SALES SURTAX ON ALL FOOD AND BEVERAGE SALES FOR CONSUMPTION ON PREMISES EXCEPT HOTELS AND MOTELS WITHIN THE CITY OF MIAMI BEACH TO ASSIST HOMELESS PERSONS, OR THOSE AT RISK OF HOMELESSNESS, AND VICTIMS OF DOMESTIC VIOLENCE ATTACHMENT 2 WHEREAS, Section 212.0306, Florida Statutes, authorizes Miami-Dade County to levy a homeless and domestic abuse tax. WHEREAS, pursuant to Section 212.0306 , this one percent tax is collected on all food and beverage sales in much of Miami-Dade County by establishments that are licensed by the State of Florida to sell alcoholic beverages for consumption on the premises, except for hotels and motels. WHEREAS, the homeless and domestic violence tax is collected throughout Miami-Dade County with the exception of establishments in the cities of Miami Beach, Surfside and Bal Harbour. WHEREAS, 85 percent the tax receipts goes to the Miami-Dade County Homeless Trust, the governing body which oversees the use of portion of the tax dedicated to homeless programs, and 15 percent goes to Miami-Dade County and is overseen by the Domestic Violence Oversight Board , for the construction and operation of domestic violence centers. WHEREAS, when the homeless tax legislation was enacted in 1993 , state statute exempted cities or towns imposing a municipal resort tax as authorized by Chapter 67-930 from the homeless and domestic abuse tax . WHEREAS, Miami Beach wishes to urge the Florida Legislature to amend Section 212 .0306, and allow the one percent homeless and domestic abuse tax to be collected on all food and beverage sales for consumption on premises in Miami Beach, except for hotels and motels. WHEREAS, in accordance with Section 212.0306, and subject to the subsequent amendment of Miami-Dade County Ordinance No. 94-66 by the Miami-Dade Board of County Commissioners, 85 percent of tax receipts would go to the Miami -Dade County Homeless Trust, to assist persons who have become or are about to become homeless , and 15 percent would go toward the construction and operation of domestic violence centers, ensuring that proceeds are used in a manner which will provide the greatest benefit to homeless persons and the community as a whole. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, THAT THIS BOARD Section 1: Urges the Florida Legislature to amend section 212.0306 , Florida Statutes, and allow for the collection of a one percent tax on all food and beverage sales for consumption on premises within the City of Miami Beach to assist homeless persons, or those at risk of homelessness, and victims of domestic violence . Section 2: Directs the City Clerk to transmit a certified copy of this resolution to the Governor, the Senate President , the House Speaker, and the Chair and Members of the Miami-Dade County State Legislative Delegation. Section 3: Directs Miami Beach 's state lobbyists to advocate for the legislative action set forth in Section 1 above, and authorizes and directs Miami Beach's Legislative Affairs Office to include this item in the 2017 State Legislative Agenda. PASSED and ADOPTED this _th day of ____ 2016. ATTEST: PHILIP LEVINE, MAYOR RAPHAEL E. GRANADO, CITY CLERK nearly 140 programs providing housing and services to the homeless utilizing evidenced-based practices, continuum-wide standards of care, and data-driven decision making focused on outcomes. As envisioned, the F&B Tax has also been instrumental in leveraging additional resources . Today, the F&B Tax makes up approximately 34 percent of the Trust's budget, with 49 percent of revenues coming from state and federal grants. Today, approximately 20 percent of the current homeless population in Miami-Dade County rema i ns on Miami Beach, and many are hard-to-serve chronically homeless persons who are shelter resistant. These men and woman often have a combination of mental health problems, substance abuse disorders and medical conditions. Without connections to the right types of care, these individuals often cycle in and out of hospital emergency departments, substance abuse programs, jails, prisons and psychiatric institutions at a high cost to taxpayers. Among the evidence-based solutions to chronic homelessness is Permanent Supportive Housing, which combines affordable housing and supportive services that help people achieve housing stability and get connected to health care and other social services . Together with other interventions, including Specialized Outreach Teams capable of engaging, assessing and administering medical treatment to hard-to-reach chronically homeless individuals, we can meet the goal of ending homelessness in Miami-Dade. However, more resources are needed to get people off the streets and under a roof. Miami Beach, Surfside and Bal Harbour are uniquely positioned to further assist in this effort by urging the Florida Legislature to amend Section 212.0306, and allow the one-percent homeless and domestic abuse tax to be collected on all food and beverage sales for consumption on premises in Miami Beach, except for hotels and motels. It's estimated that removing the tax exemption could provide an additional $8 million in revenue . With the legislative session fast approaching, we look forward to working with you and the elected leadership of Miami Beach to address homelessness more aggressively with enhanced resources . Sincerely, ,/L!:_L Ronald L. Book Chairman Miami-Dade County Homeless Trust c: Miami Beach Mayor Philip Levine Miami Beach Commissioner Mickey Steinberg Miami Beach Commissioner Michael Grieco Miami Beach Commissioner Joy Malakoff Miami Beach Commissioner Kristen Rosen Gonzalez Miami Beach Commissioner Ricky Arriola Miami Beach Commissioner John Elizabeth Aleman Miami-Dade County Homeless Trust Board Members Miami-Dade Mayor Carlos A. Gimenez Miami-Dade County Chairman Esteban Bovo, Jr . and Members, Board of County Commissioners Russell Benford, Deputy Mayor, Miami-Dade County Shannon Summerset-Williams, Esq., Assistant County Attorney Victoria L. Mallette, Executive Director, Miami-Dade County Homeless Trust