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Ordinance 95-3016 ORDINANCE NO. 95-3016 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING MIAMI BEACH CITY CODE ARTICLE VI ENTITLED "VISITOR AND CONVENTION AUTHORITY", SECTION 41-68 "POWERS AND DUTIES OF AUTHORITY AS THE CITY'S LOCAL ARTS AGENCY", SUBSECTION (e) THEREOF BY PROVIDING THAT PRIOR TO ANY DISTRIBUTION (BUT SUBORDINATE TO INDEBTEDNESS SERVED BY RESORT TAX) THE CITY SHALL BE ENTITLED TO A COLLECTION FEE OF FOUR PERCENT OF ALL SUMS COLLECTED ON RESORT TAXES; PROVIDING FOR A REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. That the Miami Beach City Code Article VI entitled "Visitor and Convention Authority" , Section 41-68 "Powers and duties of Authority as the City's Local Arts Agency" , Subsection (e) thereof is amended to read as follows: Sec. 41-68. Powers and duties of authority as the City' s local arts agency. The authority shall, as the City of Miami Beach's local arts agency, have the following powers and duties: *** (e) To annually prepare and submit a budget for the expenditures of the portion of the resort tax provided for in article V of this chapter, or any future amendment thereof, allocated to the authority, as hereinafter provided. The budget prepared and submitted by the authority to the City Commission 1 shall specify, with particularity, the expenditures anticipated and proposed to be made by the authority, and no budgetary provisions shall be made in broad or all-inclusive terms, and such proposed budget shall be in conformity with the requirements for a "line-by- line" budget. A sum not to exceed twenty percent of the total annual budget may be placed in an "Event Contingency Fund" , to be expended by the authority during the budget period for events and projects authorized subsequent to passage and approval of the budget, and which will occur within one year from date of authorization thereof. (1) Subject to the limitations contained in paragraph (4 ) below with respect to the rights of bondholders, commencing October 1988, fifty percent of the resort tax monies collected by the city in each month on or after October 1988 . The resort tax receipts allocated to the authority shall be distributed and paid to the authority on or before the twentieth day of the month immediately following the month of collection thereof in the following manner: Twenty-five percent of the total collections for the months of October, November and December, the remaining twenty-five percent to be paid as hereinafter set forth; Forty percent of the total collections for the months of January, February and March, the remaining ten percent to be paid as hereinafter set forth; Fifty percent of the total collections in each of the remaining months of the fiscal year; 2 On or before May 31st of each year the portion of collections withheld and not paid during the prior months of October through March shall be distributed and paid to the authority; (2) Subject to the limitations contained in paragraph (3) below with respect to the rights of bondholders, the authority's percentage of past due taxes shall be paid to the authority within thirty days after collected in the manner provided for current collections . (3) Commencing October 1, 1995, prior to any distribution, the City shall be entitled to a collection fee of 4% of all sums collected on resort taxes . (3) (4) Notwithstanding the foregoing, all Such payments shall be junior and subordinate in all respects to any and all obligations of the city under any ordinances and resolutions pursuant to which the city issues bonds or other indebtedness secured by the resort tax provided for in article V of this chapter or any future amendment thereof. SECTION 2 . REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 3 . SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. 3 SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect on the 21st day of October , 1995. PASSED and ADOPTED this 11th day of October , X1995. ATTEST: // / • MAYOR // IA CITY CLERK FORM APPROVED JKO: lm " LEGAL DEPT. A:jean\visitor.ord By 1 1st reading 9/27/95 Date _ 9/11-1qc 2nd reading 10/11/95 4 • • CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 • OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. --7/ 5-95 October 11, 1995 To: Mayor Seymour Gelber and Members of the City Commission From: Jose Garcia-Pedrosa City Manager Subject: An Ordinance Providin or a Collection Allowance on the Municipal Resort Tax Administrative Recommendation The Administration recommends that the Mayor and City Commission hold a public hearing and adopt this ordinance on second reading. Background The ordinance also establishes a collection allowance of 4%to fund the operations of the resort tax collection section. This section of the Finance Department administers the monthly collection of the tax and is the audit and compliance section. The section annually audits over two hundred accounts to insure their compliance with the requisite City Code sections. Analysis Prior to the passage of this ordinance,the City receives$125,000 from the 50% of the funds allocated to the VCA. This amount has been static for ten years and was originally established to fund one half of the costs of collections. The effect of this static amount was to cause the City to increased amounts for the operations of the resort tax section. The $125,000 now is equivalent to one third of the operating cost of this section. Conclusion To establishing a method of funding the collection effort for the tax the proposed ordinance should be adopted. JGP/RJN/cp AGENDA ITEM Q R- DATE - - 95 • +) I 4-) � \ cop v Cr) H I 7 a_1 it CU •H C U I-I 2 W c3) UZ O O H O •H C4 2 ++ O H >, F: 4-+ v •r•I O U 0 • 0 • U • v • Cd • Ofj G i+ • • 4 O • N CA • •