Budget Slides for 11-18-201
FY 2020 Year-End and
FY 2021 Budget Update
Miami Beach
FY 2020 Update
CARES Act Update
FY 2021 Outlook
Next Steps
2
Outline
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2
2
Use of Reserves in FY 2020
3
Projected Use of Reserves FERC April 17th Second Quarter
Projections
Third Quarter
Projections
Year‐End
Projections
$2.4 million $2.8 million $272,000
(net of $3.0 million of COVID‐19
reimbursable expenses and
adjustments for PAYGO & CRR)
(net of $4.3 million of COVID‐19
reimbursable expenses and
adjustments for PAYGO & CRR)
(net of adjustments
for PAYGO & CRR)
Resort Tax $5.0 million $5.1 million $5.1million $5.0 million
$272,000$7.1 million$5.4 million$8.6 millionGeneral Fund
(without adjustment for COVID‐19
reimbursable expenses)
General Fund $8.6 million
Third Quarter Projection General Fund
Reserve Amount
Resort Tax
Reserve Amount
Current Reserve $80.6 million $15.2 million
Use of Reserve in FY 2020 ($2.8 million) ($5.1 million)
Use of Reserve in FY 2021 ($9.6 million) 0
Remaining Reserve $68.2 million $10.1 million
Year‐End Projection General Fund
Reserve Amount
Resort Tax
Reserve Amount
Current Reserve $80.6 million $15.2 million
Use of Reserve in FY 2020 ($0.3 million) ($5.0 million)
Use of Reserve in FY 2021 ($9.6 million) 0
Remaining Reserve $70.7 million $10.2 million
Use of Reserves in FY 2020
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3
4
3
Reserves in FY 2020
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General Fund: $350.1 million $ %
Beginning FY 2020 Reserve $80.6 million 23%
Projected FY 2021 Reserve $70.7 million 20%
Current Policy of 25% (3 months) $87.5 million 25%
Prior Policy of 17% (~2 months) $59.5 million 17%
Additional amount needed to reach
policy target of 25% or 3 months $16.8 million
2% Resort Tax Fund: $61.3 million $ %
Beginning FY 2020 Reserve (3 months) $15.2 million 25%
Projected FY 2021 Reserve (2 months) $10.2 million 17%
Current Policy of 50% or 6 months $30.6 million 50%
Prior Policy of 17% or 2 months $10.4 million 17%
Additional amount needed to reach
policy target of 50% or 6 months $20.5 million
CARES Act Reimbursement
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As of November 17th:
●Requested: $52.4 million
●Amount of request meeting criteria: $44.4 million
●Request approved to date: $7.5 million
●Amount received by CMB to date: $502,031
●Potential for reimbursement of $25 million to $35 million
Recommendation:
●Add to existing reserves to meet targets in the General Fund
and Resort Tax Fund = up to $37.3 million
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6
4
FY 2020 Resort Tax Trend
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-25.0%
-75.0% -75.0%-75.0%-75.0%
-75.0%
-50.0%
-9.0%
-62.8%
-82.7%
-92.6%
-69.7%
-80.1%
-62.0%
-100.0%
-90.0%
-80.0%
-70.0%
-60.0%
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Mar Apr May Jun Jul Aug Sep
Revenue Loss Assumption Actual Revenue Loss
Projected loss of $31.7 million
Actual loss of $31.5 million
Difference $209,000 or <1%
FY 2021 Resort Tax Trend
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Only 1 data point in FY 2021
Loss of $535,000 in October
Appears that FY 2021 assumption
of 25% decrease was too optimistic
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8
5
Resort Tax FY 2021 Preliminary
Updated Projections
9
FY 2021 Resort Tax $ %
Original Revenue Loss Projection $22.0 million ‐25%
Optimistic Scenario $33.3 million ‐38%
Likely Scenario $37.5 million ‐42%
Conservative Scenario $39.8 million ‐45%
Difference b/w Original and Likely $15.5 million
Range between Original and Projections $11 to $18 million
Next Steps
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●Provide detailed update in January/February (Q1)
○More resort tax data points to accurately forecast FY 2021
○CARES Act reimbursement amounts should be known
○More time to quantify potential savings on the cost side
●Recommendations
○Add CARES Act reimbursements to existing reserves in the General
Fund and Resort Tax Fund (estimated at $25 to 35 million)
○Potentially use more reserves than originally planned to balance
FY 2021 Budget (preliminary estimate at $11 to 18 million)
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