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Commission Budget Workshop Presentation1 FY 2022 Commission Budget Workshop Miami Beach Introduction 1 2 2 Budget Workshop Purpose Kickoff the FY 2022 budget process with the City Commission Cover several budget-related topics and identify any areas requiring additional attention Increase efficiency of the 3 planned FERC budget briefings that include the Mayor and City Commission 3 Budget Timeline Jan – Feb Initiate Budget Development Process Feb – Mar Review Budgets with Departments and City Manager May 27 City Commission establishes Budget Priorities at Budget Workshop Jun – Jul Finance and Economic Resiliency Committee (FERC) Budget Briefings June 18 July 16 July 23 4 3 4 3 Budget Timeline (cont.) June 1 Preliminary Taxable Value received from the Property Appraiser July 1 Certification of Taxable Value received from the Property Appraiser July 28 City Commission meets to set tentative millage rates August City Manager and OMB finalize Proposed Budget Document September 1st public hearing on September 17 2nd public hearing on September 30 5 Helpful Documents FY 2021 Adopted Program Budget ○Breaks out department budgets by programs and service levels ○More user friendly for elected officials and citizens ○Focus policy on funding of desired levels of service Nine Year Summary of Enhancements & Reductions 6 5 6 4 Helpful Documents Comparison of Budgets and Positions by Department Compares FY 2014 to FY 2021 Explains budget and position variances Nets out normal inflation in the budget 7 FY 2021 Budget Overview 7 8 5 Types of Funds GENERAL FUND ENTERPRISE FUNDS INTERNAL SERVICE FUNDS G.O. DEBT SERVICE FUNDS RDA FUND RESORT TAX FUND OTHER SPECIAL REVENUE FUNDS 9 General Fund Departments $ 329,023,000 Mayor & Commission City Manager Capital Improvement Projects City Attorney Housing & Community Services City Clerk Code Compliance Marketing & Communications Economic Development Human Resources Finance Fire Planning Management & Budget Public Works Police Parks & Recreation Citywide Accounts Environment & Sustainability Procurement Tourism & Culture Property Management (Asset Mgmt. & Beach Maintenance) Organizational Development Performance Initiatives 10 9 10 6 G.O. Debt Service Fund $ 12,798,000 Enterprise Funds $ 218,478,000 Water Operations Sewer Operations Storm Water Operations Parking Department Convention Center Sanitation Building 11 Internal Service Funds $ 107,038,000 Information Technology Central Services Fleet Management Risk Management Property Management Medical & Dental Inspector General Redevelopment Agency (RDA) $ 31,110,000 City Center – City of Miami Beach TIF only 12 11 12 7 Special Revenue Funds (excl. Resort Tax) $ 23,804,000 Education Compact Cultural Arts Council Franchise Waste Haulers Sustainability Normandy Shores Taxing District Biscayne Point Special Taxing District Allison Island Special Taxing District Biscayne Beach Special Taxing District 5th & Alton Garage Fund 7th Street Garage Operations Transportation Fund Tree Preservation Fund Commemorative Tree Trust Fund People’s Transportation Plan Police Special Revenue Funds IT Tech Fund E-911 Fund Other Special Revenue Funds 13 Resort Tax Fund $ 69,330,000 2% Tax 1% Tax 1% Tax Eligible tourism-related expenditures in General Fund Quality of Life Capital Projects Convention Center Renovation Debt Service GMCVB & VCA Arts Convention Center Capital Renewal & Replacement Sanitation in tourist areas Transportation Tax Collections 14 13 14 8 Operating $ 627.1 M$ 60.2 M FY 2021 Total Budget $ 687.3 Million Capital 15 Where the Money Comes From… 15 16 9 Property Tax 60% Other Taxes 7%Resort Tax 6% Intergovernmental Charges for Services Miscellaneous Non Operating Other Revenues Other 27% FY 2021 General Fund Revenues $329.0 Million Property and Resort Taxes comprise 66%of Total General Fund Revenues Licenses and Permits GENERAL FUND 17 Where the Money Goes… 17 18 10 Police $ 115 M 35% Fire $ 91 M 28% Parks & Rec. $ 34 M 10% Public Works $ 14 M 4% Other $ 75 M 23% FY 2021 General Fund Expenditures $329.0 Million Public Safety (Police & Fire) comprises 63% of Total General Fund Expenditures GENERAL FUND 19 Personnel Services $249 M Operating Expenses $37 M 11% Internal Services $39 M 12% Debt and Other $4 M 1% Personnel Services comprise 76%of Total General Fund Expenditures FY 2021 General Fund Expenditures $329.0 Million GENERAL FUND 20 19 20 11 Salaries $ 134 M Pension Contributions $ 63 M Health & Life Insurance $ 31 M 12% Overtime & Other Wages $ 21 M 9% FY 2021 General Fund Personnel Services $249.3 Million Salaries comprise 54% of General Fund Personnel Services Expenditures Pension contributions comprise 25% of General Fund Personnel Services Expenditures GENERAL FUND 21 Budget Trends 21 22 12 Combined Millage The current combined millage rate is 33%less than in FY 1999 and 21%less than in FY 2007 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Debt Service Millage 0.2990 0.2415 0.2375 0.2568 0.2870 0.2884 0.2568 0.2529 0.2295 0.2031 0.1796 0.1664 0.1600 0.2933 0.3227 Operating Millage 7.3740 5.6555 5.6555 5.6555 6.2155 6.1655 6.0909 5.8634 5.7942 5.7092 5.7092 5.7224 5.7288 5.7288 5.7288 Total Combined 7.6730 5.8970 5.8930 5.9123 6.5025 6.4539 6.3477 6.1163 6.0237 5.9123 5.8888 5.8888 5.8888 6.0221 6.0515 (0.3000) 0.7000 1.7000 2.7000 3.7000 4.7000 5.7000 6.7000 7.7000 Mil l a g e R a t e s 23 Overlapping Millage Miami Beach For Miami-Dade County property owners, each property tax dollar paid is split as shown above 37¢School Board 31¢City of Miami Beach 28¢Miami-Dade County 4¢Other 24 23 24 13 Overlapping Millage The City of Miami Beach portion of the property tax bill has decreased as a percentage of the total bill from 33% to 31% between FY 2007 and FY 2021 OVERLAPPING TAX MILLAGE FY 2007 % of FY 2007 Total FY 2021 % of FY 2021 Total Variance from FY 2007 City of Miami Beach 7.6730 32.9% 6.0515 31.3% (1.6215) Miami Dade County Countywide 5.6150 24.1% 4.6669 24.1% (0.9481) Library 0.4860 2.1% 0.2840 1.5% (0.2020) Debt Service 0.2850 1.2% 0.4780 2.5% 0.1930 Subtotal 6.3860 27.4% 5.4289 28.0% (0.9571) School Board 8.1050 34.8% 7.1290 36.8% (0.9760) Children's Trust 0.4220 1.8% 0.4507 2.3% 0.0287 Other 0.7360 3.2% 0.2995 1.5% (0.4365) Total 23.3220 100.0% 19.3596 100.0% (3.9624) 25 Police $115.1 M 35% Fire $91.2 M 28%Other $122.7 M 37% Public Safety Trend Police $75.3 M 32% Fire $43.3 M 18%Other $119.1 M 50% Public Safety as a percentage of the General Fund budget has increased from 50% in FY 2007 to 63%in FY 2021 FY 2007 General Fund $237.7 M FY 2021 General Fund $329.0 M 26 25 26 14 General Fund Revenues Resort Tax Transfer decreased to 6%in FY 2021 from 8%in FY 2007 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021* Other Revenues $78 $85 $88 $86 $101 $107 $111 $114 $118 $120 $119 $121 $127 $126 $114 Resort Taxes $20 $21 $22 $24 $24 $27 $31 $33 $34 $37 $38 $35 $36 $37 $19 Property Taxes $140 $125 $126 $116 $112 $110 $114 $117 $128 $143 $161 $175 $182 $188 $197 Total Revenues $238 $231 $235 $226 $238 $244 $256 $264 $280 $300 $317 $331 $346 $350 $329 $- $50 $100 $150 $200 $250 $300 $350 $400 $ M i l l i o n *FY 2021 Other Revenues and Resort Taxes includes projected negative impact of $7.9 million and $18.1 million, respectively, attributed to COVID-19 27 General Fund Expenditures Expenditures have experienced an average 2.4% growth since FY 2007 or 3.1% if exclude FY 2021 $3 5 0 . 1 $2 3 7 . 7 $2 3 0 . 6 $2 3 5 . 4 $2 2 6 . 3 $2 3 7 . 5 $2 4 4 . 3 $2 5 6 . 3 $2 6 4 . 1 $2 8 0 . 1 $3 0 0 . 4 $3 1 7 . 3 $3 3 0 . 9 $3 4 5 . 6 $3 5 0 . 1 $3 2 9 . 0 $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21* *Commencing in FY 2021, $16.6 million for Building Operations and $1.5 million for the Office of the Inspector General transferred out of the General Fund to stand-alone funds 28 27 28 15 General Fund and G.O. Debt by ADP Budget per Average Daily Population has increased by 1.2%since FY 2007 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 GO Debt per ADP $40 $38 $35 $33 $33 $30 $29 $29 $29 $31 $30 $30 $30 $60 $65 GF Exp per ADP $1,452 $1,416 $1,346 $1,243 $1,294 $1,212 $1,258 $1,277 $1,385 $1,565 $1,631 $1,684 $1,759 $1,782 $1,675 Total per ADP $1,493 $1,454 $1,381 $1,276 $1,327 $1,242 $1,287 $1,305 $1,415 $1,596 $1,662 $1,714 $1,789 $1,842 $1,740 $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 29 Position Count Trend Positions are 2.0% less (42 full-time positions) in FY 2021 than in FY 2007 1,509 1,441 1,399 1,345 1,273 1,322 1,337 1,371 1,442 1,469 1,536 1,536 1,537 1,526 1,428 618 609 608 582 521 574 566 571 585 600 624 620 620 603 657 - 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Other Funds 618 609 608 582 521 574 566 571 585 600 624 620 620 603 657 General Fund 1,509 1,441 1,399 1,345 1,273 1,322 1,337 1,371 1,442 1,469 1,536 1,536 1,537 1,526 1,428 Total 2,127 2,050 2,007 1,927 1,794 1,896 1,903 1,942 2,027 2,069 2,160 2,156 2,157 2,129 2,085 30 29 30 16 General Fund FY 2021 Update Note: New gap in FY 2021 addresses projected revenue losses in both the General Fund and the Resort Tax Fund; Gap will be updated as part of the Second Quarter projections 32 General Fund Resort Tax Reserve Amount Reserve Amount Pre-COVID Reserve as of 09/30/2019 $80.6 million $15.2 million Actual Use of Reserve in FY 2020 ($0.3 million) ($5.0 million) Adopted Use of Reserve in FY 2021 ($9.6 million) Remaining Reserve $70.7 million $10.2 million New gap in FY 2021 (Q1 projection) ($27.8 million) CARES Act funds to date $37.0 million Police initiatives (staffing, cameras, RTCC) ($7.5 million) No furlough days for FOP & IAFF; 1 less furlough day for all other employees ($1.2 million) Arts & Cultural programming (Pending Commission approval on June 23rd)($1.0 million) Revised Reserve $70.2 million $10.2 million 31 32 17 The Current Service Level (CSL) budget represents the cost of providing the same level of service as in the prior fiscal year Provides the baseline of funding for the upcoming budget process to which enhancements and reductions are applied 1. Assumes no change in operating millage rate 2. Assumes elimination of $1.2M transfer to Parking Fund 3. Assumes elimination of $4.4M transfer in from the RDA 4. Does not include any enhancements or reductions unless approved during FY 2021 5. Includes the use of $1.5M of General Fund Reserves Enhancing Police Staffing in Art Deco Cultural District 6. 10% increase for health and life insurance 7. No Cost-of-Living-Adjustments (COLAs) 8. No new revenues or COVID reimbursement funds FY 2022 Preliminary General Fund Budget As s u m p t i o n s 34 33 34 18 Parking Fund Transfer to General Fund FISCAL YEAR $ FY 2011 3,600,000 FY 2012 7,200,000 FY 2013 7,200,000 FY 2014 8,400,000 FY 2015 8,400,000 FY 2016 8,400,000 FY 2017 6,400,000 FY 2018 4,400,000 FY 2019 1,166,000 FY 2020* 1,166,000 FY 2021 0 FY 2022 0 Transfer to the General Fund eliminated in FY 2021 3. 6 7. 2 7. 2 8. 4 8. 4 8. 4 6. 4 4. 4 1. 2 1. 2 0. 0 0. 0 0 1 2 3 4 5 6 7 8 9 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Mi l l i o n s * Budgeted $1.2M transfer in FY 2020 eliminated due to impact of COVID-19 on Parking’s finances 35 Proposed Uses of City Center RDA Funds Expenditure FY 2022 FY 2023 Replace General Fund Fleet with Cash 5,613,000 5,826,000 Total $ 5,613,000 $ 5,826,000 Funding from RDA to General Fund ends in FY 2023 per 4th Amendment to agreement with County 36 35 36 19 Prior Uses of City Center RDA Funds Expenditure FY 2018 FY 2019 FY 2020 FY 2021 HUD Repayment $ 1,079,000 $ 0 $0 $0 Fillmore 40-Year Certification 654,734 0 0 0 Above Ground Costs West Ave Phase II and 11th Street Flamingo Neighborhood 3,118,266 0 0 0 Replace Parking Fund Transfer to General Fund 0 4,400,000 4,414,000 1,119,000 Transfer to PAYGO Capital Fund 0 872,000 0 0 Transfer to General Fund for COVID-19 Impact 0 0 0 3,295,000 Replace GF Fleet with Cash 0 0 1,067,000 1,152,000 Total $ 4,852,000 $ 5,272,000 $5,481,000 $5,566,000 37 Total Claims Trend Me d i c a l & D e n t a l $1 7 . 0 M $2 0 . 3 M $2 3 . 7 M $2 1 . 5 M $2 1 . 3 M $2 4 . 6 M $2 7 . 1 M +20% +17% -9%-1% +15% +10% $0.0 M $5.0 M $10.0 M $15.0 M $20.0 M $25.0 M $30.0 M FY 2016 Actuals FY 2017 Actuals FY 2018 Actuals FY 2019 Actuals FY 2020 Actuals FY 2021 Projected FY 2022 Projected 5 year average: 8.4% 38 37 38 20 Property Values Property Values Preliminary FY 2022 Property Values Miami Beach’s Preliminary Property Values: 0.2% decrease FY 2 0 2 2 P r o p e r t y V a l u e s Normandy Shores Miami-Dade County Miami-Dade School Board +2.2% +3.6% +1.7% 40 39 40 21 Overall Property Value Trend 41 30.3% 18.1% 0.2% -8.2% -10.5% -0.6% 5.0%6.9% 9.9% 13.3%13.0% 7.8% 4.0%3.1%4.1% -0.2% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 New Construction Trend 42 $0.79 $0.29 $0.20 $1.78 $0.56 $0.10 $0.10 $0.08 $0.15 $0.27 $1.17 $0.86 $0.19 $0.30 $1.31 $0.15 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 $ B i l l i o n 41 42 22 Existing Property Value Trend 43 25.8% 16.8% -0.6% -14.8%-12.7% -1.0% 4.5%6.5% 9.3% 12.3% 9.2% 5.3%3.5%2.3%0.8%-0.6% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 44 Percentage Change in Existing Property Values by Municipality Miami Beach Normandy Shores Bal Harbour Bay Harobor Islands Surfside North Bay Village Key Biscayne Aventura Sunny Isles Beach Miami North Miami Beach Coral Gables FY 2020 2.3% 3.6% -0.2% 4.7% 0.8% 0.7% -2.9% -0.4% -4.2% 4.5% 5.7% 3.8% FY 2021 0.8% 4.3% -4.0% -3.5% -1.4% -2.7% -1.5% -2.6% -5.2% 2.3% 3.0% 2.1% FY 2022 -0.6% 0.9% -0.6% -1.3% 4.9% 2.6% 0.5% -1.6% -5.0% 1.5% 2.6% 2.3% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 43 44 23 Lien Statements by Month 2020 activity was weak during the shutdown but increased from September to December (impacts FY 2022 property values) 2021 activity has been very strong through May (impacts FY 2023 property values) 45 FY 2022 Preliminary General Fund Budget FY 2022 FY 2021 $ Var Preliminary Revenues 321,819,000 329,023,000 (7,204,000) Preliminary Expenditures 347,582,000 329,023,000 18,559,000 Surplus / (Gap) ($25,763,000) $0 Includes Impact of COVID-19 on Revenues 46 45 46 24 COVID vs. Non-COVID Budget Gap Fiscal Year 2022 Preliminary Gap $ 25.7M COVID-19 Gap $ 19.5M Non-COVID-19 Gap $ 6.2M 47 Approaches to Balance COVID-19 Related Impact –Temporary Non-COVID-19 Impact –Permanent 48 47 48 25 Preliminary FY 2022 Budget Gap NON-COVID-19 (Permanent) COVID-19 (Temporary) General Fund ($6.2 million) ($8.0 million) Resort Tax 0 ($11.5 million) Total ($6.2 million) ($19.5 million) 49 COVID-19 Gap Gap totals $19.5 million Since the gap is “temporary” in nature due to COVID-19, one-time funds can be used to close the gap until revenues return to normal in FY 2023 Recommend applying the American Rescue Plan Act allocation of approximately $22 million to balance this gap 50 49 50 26 Non-COVID-19 Gap Gap totals $6.2 million This gap is “permanent” and the budget needs to be structurally balanced so that recurring revenues equal recurring expenditures Needed a 3.1%increase in property values to structurally balance the General Fund 51 General Fund Revenues General Fund Revenues 51 52 27 FY 2022 Revenue Variances Revenue Budget Variances $ Use of General Fund Reserves to Balance FY 2021 Budget (incl. $1.2 million contribution to Parking and $388,000 in one-time enhancements)(9,599,000) Additional Contribution from Resort Tax Fund for Tourism-Eligible Expenditures in the General Fund 6,399,000 City Center Redevelopment Agency Contribution (4,414,000) Use of General Fund Reserves for Enhanced Police Staffing in Art Deco Cultural District (ADCD) as approved mid-year of FY 2021 1,546,000 Property Tax Revenues based on 0.2% decrease in Preliminary Values as of June 1 (448,000) Coca-Cola Sponsorship Revenue and Other Contractual Revenue (372,000) Other Miscellaneous (316,000) Total ($7,204,000) 53 General Fund Expenditures General Fund Expenditures 53 54 28 General Fund Expenditures Expenditure Budget Variances Notes $ Fire/Police Pension IAFF and FOP Employees 1,977,000 MBERP Pension General Employees (1,244,000) 5% Step Police & Fire 1,138,000 0 – 3% Merit Non-Police & Fire 1,255,000 Health Insurance – Active Employees 10% Increase in City Portion 2,545,000 Health Insurance – Retirees 10% Increase in City Portion 1,422,000 Internal Service Charges Fleet, Property, Info. Tech, Risk Mgmt., Central Svcs., & Inspector General (344,000) Sub-Total $ 6,749,000 55 General Fund Expenditures Expenditure Budget Variances $ Sub-Total $ 6,749,000 Elimination of One-Time Expenditure Reductions Budgeted in FY 2021 due to COVID-19 (Citywide Hiring Freeze, Furloughs, Freeze on Non- Essential Expenditures and Travel) 9,430,000 Enhanced Police Staffing (15 Officers and 2 Sergeants) in Art Deco Cultural District (One-Time)1,546,000 Parks Grounds Maintenance (going out to bid assuming 15% increase in rates); 500-700 Alton Road Park Maintenance; Parks Facilities, Courts, and Playground Improvements 1,443,000 Elimination of One-Time General Fund Contribution to Parking Fund (1,211,000) Sub-Total $ 17,957,000 56 55 56 29 General Fund Expenditures Expenditure Budget Variances $ Sub-Total $ 17,957,000 Reduction in Gulf Breeze Debt Service for Miami Beach and Normandy Shores Golf Courses (Final Payments in FY 2021)(1,208,000) Reduction in Pension Obligation Loan Debt Service (Final Payments in FY 2021)(1,076,000) Increase in Police and Fire Overtime (based on anticipated department needs)907,000 Elimination of One-Time Expenditure Enhancements Budgeted in FY 2021 (Re-Write of City’s LDR’s, Art in Resilience Program, MBSHS and South Pointe Elementary Projects, Restaurant Delivery Program, etc.) (888,000) Sub-Total $ 15,692,000 57 General Fund Expenditures Expenditure Budget Variances $ Sub-Total $ 15,692,000 Increase in Citywide Grounds Maintenance (Original Vendor Defaulted on Agreement during FY 2021 Resulting in Secondary Vendor Selected)831,000 Flamingo Park Tennis Center Operations based on Increased Demand (Offset by Additional Revenue)299,000 Education Initiatives Programs Transferred from Education Compact Fund (Due to Disruption in Garage Advertising Agreement)255,000 Increase in Contract Maintenance for Police and Code Compliance Body Cameras (Based on Multi-year Agreement)250,000 Sub-Total $ 17,329,000 58 57 58 30 General Fund Expenditures Expenditure Budget Variances $ Sub-Total $ 17,329,000 Pre-Kindergarten Pilot Program Enhancement (Approved as part of FY 2021 Adopted Budget)250,000 South of Fifth Marina Properties Expenditures for Utilities, Taxes, Licenses, etc. (Previously Funded from Parking Enterprise Fund)249,000 Increase in Other Miscellaneous General Fund Expenditures 177,000 Total $ 18,005,000 59 Request Notes $ Year 1 Park Rangers at 500-700 Alton Road Park Add 4 part-time Park Rangers to provide coverage at 500-700Alton Road Park 189,000 Park Rangers and Janitorial Services at Polo Park Add 2 part-time Park Rangers and janitorial services in the evenings at Polo Park 139,000 Business Incentive & Grants Job Creation Incentive Program to attract and expand existing businesses to the City while increasing number of quality, high-paying jobs 180,000 Sub-Total $508,000 Pre-Approved Enhancements 60 59 60 31 Request Notes $ Year 1 Pre-K Program Expand access to Pre-K providers for 92 Miami Beach families 250,000 Math Tutors Afterschool Provide mathematics support to students from Nautilus and Miami Beach Senior High 15,000 Flu Vaccines Continue providing flu vaccines to Miami Beach residents 15,000 GED/ESOL Classes Prepare resident adult learners to enter career and technical fields and/or post- secondary education/employment in civic life 11,000 Substitute Teacher Incentive Program Recruit Miami Beach residents to become substitute teachers for Miami Beach public schools 5,000 Sub-Total $296,000 Pre-Approved Education Enhancements 61 Preliminary FY 2022 Millage Rate Preliminary FY 2022 budget assumes no change in the operating millage rate of 5.7288 Debt service portion of the millage rate will be adjusted from current millage of 0.3227 each year per debt service schedule for 1st tranche and future tranches Will adopt maximum millage rate on July 28th 62 61 62 32 Millage Rate Comparison Additional $1 million = 0.0291 millage increase (based on FY 2021 values) Municipality Operating Rate Debt Service Rate Total Millage Rate Opa-Locka 9.8000 9.8000 Biscayne Park 9.7000 9.7000 Golden Beach 7.7720 0.6280 8.4000 El Portal 8.3000 8.3000 Miami Shores 7.9000 0.3773 8.2773 Miami 7.6665 0.3235 7.9900 Miami Gardens 6.9363 0.7803 7.7166 North Miami 7.5000 7.5000 Miami Springs 7.3300 7.3300 Florida City 7.2946 7.2946 West Miami 6.8858 6.8858 North Miami Beach 6.2000 0.6021 6.8021 North Bay Village 5.8500 0.8118 6.6618 Homestead 6.2055 0.4485 6.6540 Hialeah 6.3018 6.3018 Indian Creek 6.3000 6.3000 Miami Beach 5.7288 0.3227 6.0515 Coral Gables 5.5590 5.5590 Hialeah Gardens 5.1613 5.1613 Virginia Gardens 5.0000 5.0000 Medley 4.8000 4.8000 Surfside 4.3499 4.3499 South Miami 4.3000 4.3000 Sweetwater 3.9948 3.9948 Bay Harbor Island 3.6245 3.6245 Key Biscayne 3.2022 3.2022 Cutler Bay 2.6198 2.6198 Pinecrest 2.3500 2.3500 Miami Lakes 2.3127 2.3127 Palmetto Bay 2.2350 2.2350 Sunny Isles 2.2000 2.2000 Doral 1.9000 0.1794 2.0794 Bal Harbour 1.9654 1.9654 Uninc. County 1.9283 1.9283 Aventura 1.7261 1.7261 Note: 10 mill cap per Florida Statutes 63 May 2021 Recent Trends in Miami Beach Property Values 64 63 64 33 Analysis: What are recent trends in assessed property values? Research Question How do recent trends differ within the Miami Beach property market? Where are values growing vs. contracting? Note: Analysis was focused on Miami Beach and does not compare local trends to the broader Miami-Dade County or other regional property market. Approach Analyzed 2016-2019* assessed values to examine recent property value trends Analyzed market segments including Neighborhoods Property types (e.g., residential or commercial) 30+ property characteristics (e.g., year built, luxury status, neighborhood amenities, environmental factors, parcel and road elevation) *Latest data available at time of analysis 65 Property Categories & Environmental Features Examined Decade built Luxury status Elevation Flood risk Nearby road elevation Federal flood insurance status (pre- FIRM/post-FIRM) Eastern waterfront Western waterfront Waterfront/shoreline Seawall Beach access Open water proximity Class 1 permit area proximity Historic district Crime rate School rating Golf course proximity Highway proximity Park proximity Bike transit score Transit score Walkability score 66 65 66 34 Context: Overview of Property Market Townhouse, $0.1 B Housing cooperative, $0.1 B 67 Key Findings Overall assessed values grew, citywide Growth rate has slowed notably since 2016 5.5 5.0 0.1 1.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Residential Commercial Compound Annual Growth Rate (%) 8-year trend (2012-2019) 4-year trend (2016-2019) $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2012 2013 2014 2015 2016 2017 2018 2019 As s e s s e d V a l ue ( $ 2 0 1 9 ) B i l l i o n s Assessed Values Over Time, by Property Type Single-family Multi-family Condos Townhouse Housing cooperative Entertainment / tourism Retail Other commercial Governmental 68 67 68 35 Key Findings Of all neighborhoods and property types, the following areas contracted from 2016-2019: South Pointe residential properties West Avenue residential and commercial properties North Shore entertainment-related properties Flamingo Lummus condos City Center entertainment-related properties and condos Most impactful negative changes to total assessed value were in South Pointe residential, and most impactful positive changes were in City Center retail and other commercial Factors associated with slower growth rates citywide included: Luxury property values declined in most neighborhoods, relative to non-luxury. Citywide, residential properties subject to nuisance and King Tide flooding grew more slowly than other properties, as did properties with lower elevation roads. The trend varied by neighborhood. 69 Growth Rate by Neighborhood and Property Type Compound Annual Growth Rate (%) Note: Entertainment/tourism property type includes restaurants, theaters/auditoriums, nightclubs, golf courses, hotels/motels, recreational areas, and properties that have a “tourist attraction” or “entertainment” use type).70 69 70 36 Luxury property values declined in most neighborhoods, relative to non-luxury. -1 0 1 3 -2 -1 0 1 2 3 4 5 Residential Commercial 20 1 6 - 2 0 1 8 C o m p o u n d A v e r a g e G r o w t h R a t e ( % ) Citywide Compound Average Growth Rate, 2016-2019: Luxury vs. Non-Luxury Luxury Non-Luxury 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 2012 2013 2014 2015 2016 2017 2018 2019 Av e r a g e V a l u e p e r P a r c e l ( $ 2 0 1 9 ) Average Value Per Parcel (Residential) Luxury Non-Luxury 71 Residential properties subject to nuisance and King Tide flooding grew more slowly than other properties. Both properties and roads subject to King Tide flooding depreciated relative to other properties. Road values based on whether average road elevation within 0.1 miles of parcel is below 1.7 ft. NAVD88. Parcels “subject to King Tide flooding” indicates some portion of the parcel is below 1.7 ft NAVD88 in elevation. -0.1 -2.9 0.2 0.2 -3.5 -3.0 -2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 Parcel subject to King Tide flooding? Roads subject to King Tide flooding? Co m p o u n d A v e r a g e G r o w t h R a t e ( % ) Citywide, Residential Properties, by Flood Risk Category Yes No 72 71 72 37 Key Findings Recap Of all neighborhoods and property types, the following areas contracted from 2016-2019: South Pointe residential properties West Avenue residential and commercial properties North Shore entertainment-related properties Flamingo Lummus condos City Center entertainment-related properties and condos Most impactful negative changes to total assessed value were in South Pointe residential, and most impactful positive changes were in City Center retail and other commercial Factors associated with slower growth rates citywide included: Luxury property values declined in most neighborhoods, relative to non-luxury. Citywide, residential properties subject to nuisance and King Tide flooding grew more slowly than other properties, as did properties with lower elevation roads. The trend varied by neighborhood. 73 Resort Tax Fund 73 74 38 Resort Tax Bed Tax 4% 3% 7% Visitor staying at a hotel on Miami Beach will pay 14% 75 Resort Tax Summary Miami Beach has a 4% bed tax and 2% food & bev. tax 2% Resort Tax (FY 2021 = $46.1M) ○Consists of 2% bed tax and 2% food & beverage tax ○Funds tourism-related expenditures 1% Resort Tax (FY 2021 = $10.7M) ○Consists of 1% bed tax ○Quality of life expenses: transportation, arts & culture, capital projects in North, Mid, South 1% Resort Tax (FY 2021 = $10.7M) ○Consists of 1% bed tax ○Debt service on the Convention Center Renovation bonds 76 75 76 39 Resort Tax Occupancy (weekly) 77 Resort Tax Average Daily Rate (weekly) 78 77 78 40 Resort Tax Food & Beverage (monthly) 79 FY 2019 FY 2020 FY 2021 Resort Tax Revenues (monthly) FY 2019 FY 2020 FY 2021 80 79 80 41 FY 2021 Resort Tax Projections Original FY 2021 projection ○75% or $22M less than FY 2019 Revised FY 2021 projection for Q1 ○50% or $44M less than FY 2019 Updated FY 2021 projection for Q2 ○70% or $27M less than FY 2019 81 FY 2022 Resort Tax Projections Strong domestic travel is driving the recovery ○Pent up demand during COVID-19 ○Miami Beach as attractive outdoors destination ○Uncertainty re: trend as other destinations open up Still recovering… ○Conventions and meetings ○Cruise industry ○International travel Currently assuming less than normal for FY 2022 ○85% or $13M less than FY 2019 (contributes to COVID gap) 82 81 82 42 2% Resort Tax Fund Preliminary Budget FY 2021 FY 2022 Var. ($) Var. (%) Revenues 46,102,000 51,288,000 5,186,000 11% Expenditures 46,102,000 51,288,000 5,186,000 11% Surplus / (Gap)$ 0 $ 0 Does not include funding for Spring Break programming or additional police staffing for Spring Break 83 Resort Tax Revenues Revenue FY 2022 Notes Increase in 2% Resort Tax collections 5,875,000 Based on collections thru April 2021 with FY 2022 projection assuming 85% of FY 2019 actuals Decrease in projected interest income (646,000) Lower interest rate environment Decrease in miscellaneous revenues (43,000)Includes special assessments and Resort Tax account registration fees Total $ 5,186,000 84 83 84 43 Resort Tax Expenditures Expenditure FY 2022 Notes Additional Transfer to General Fund for Tourism- Eligible Expenditures in General Fund 6,399,000 $25.0M of $ 36.8M Budgeted in FY 2020 and $151.5 Eligible to be Reimbursed per 2019 Study Sanitation Contribution (2,740,000) FY 2021 Budget Included “One-Time” Contribution of $2.7M for Reimbursement of Prior Year Services Provided GMCVB Contribution 2,362,000 Reflects proposed contract terms: 10% of the gross 2% collections net of the 4% City allowance, plus up to $2M incentive fee 1% Convention Center Bed Tax Subsidy (1,414,000) 2% Subsidy for Annual Convention Center Debt Service Coverage based on 1% Bed Tax Collections Sub-Total $ 4,607,000 85 Resort Tax Expenditures Expenditure FY 2022 Notes Sub-Total $ 4,607,000 VCA Contribution 1,370,000 5% of the gross 2% collections net of the 4% City allowance One-Time Expenditure Enhancements Budgeted in FY 2021 (1,050,000)College Football Championship ($900K) & Orange Bowl ($150K) 2% Merit for all groups, except 5% Step for Police and Fire, and 10% increase in health over FY 2021 projections 219,500 Police, Code Compliance, Inspector General, and Finance Increase in Miscellaneous Operating Expenditures 39,500 Includes Internal Services Total $ 5,186,000 86 85 86 44 Potential Enhancements Police Initiatives Approved in FY 2021 Initiative Estimated Cost Enhanced Staffing $5.5 million over 3 years for 15 police officers and 2 sergeants (one-time) Accelerate Installation of Security Cameras $500,000 for contractual resources to assist with implementation (one-time) Create Real Time Crime Center $1.5 million (one-time) for all necessary equipment and finish out and $180,000 for 2 non-sworn positions (recurring) 88 87 88 45 Police Enhanced Staffing Currently funded on a one-time basis for a period of 3 years To make the 17 temporary positions permanent the recurring costs are $3.9 million in year 1 and $3.0 million year 2 ○A millage rate increase of 0.1144 would likely be needed ○Impact on median homesteaded property: $24 ○Impact on average homesteaded property: $62 89 Police Enhanced Staffing The recruitment plan for the 17 new positions includes: ○New and expanded Police Academy classes •Current class ready in the Fall •Next class ready in early 2022 ○Continuous recruitment of certified law enforcement candidates ○Offset for attrition ○Goal: all officers in place for next Spring Break 90 89 90 46 Police Enhanced Staffing Proposal to address uncertainty re: number of visitors after Memorial Day and more time to onboard new Miami Beach positions Temporarily augment staffing on weekends through the Summer in FY 2021 ○25 police officers from other agencies ○Coverage on Friday and Saturday nights for 8 hour shifts ○Estimated one-time cost of $335,000 91 The FY 2022 budget includes $1.4 M in funding for the 6P o l i c eO f f i c e r s and 1 Sergeant positions (added in FY 2019) for the Cops in Schools program The Marjory Stoneman Douglas High School Public Safety Act of 2018 requires that armed officers be present in each school ○Local municipalities placed officers in the schools until the MDSPD force grew to have enough officers for every school ○For FY 2022, a Miami Dade School Police Officer will be permanently assigned to each school ○Miami Beach PD will assign 3 police officers as liaisons ○Allows PD to re-purpose 7 positions to other policing duties COPS in Schools Program 92 91 92 47 Code Enhanced Staffing Current enhanced staffing in FY 2021 is funded on a one-time basis through overtime Potential FY 2022 enhancement ○6 positions for dedicated code enforcement team in Art Deco & Cultural District: $508K ○6 positions to expand capacity for enforcement: $508K 93 Spring Break Enhancements Spring Break programming estimated at $1.4M Enhanced police staffing for Spring Break estimated at $1.0M Potential costs for event sponsorships: TBD 94 93 94 48 Potential Resort Tax Enhancements New request for 3-year sponsorship for American Black Film Festival: $400K Additional Holiday Lighting: $200K Increase Fire overtime for high impact periods: $170K Enhanced police staffing for Orange Bowl: $75K Programming for Pride Park, Collins Canal Park, and Collins Park: $75K 95 Potential Resort Tax Enhancements All approved resort tax enhancements would have to be funded on a one-time basis from reserves until resort taxes grow enough to cover these expenses on a recurring basis 96 95 96 49 Capital Project Gaps Capital Project Cost Increases COVID-19 has disrupted global supply chains resulting in a spike in prices that are dramatically impacting the City’s capital project costs ○Contractors are forced to build high contingencies to compensate for pricing of commodities, labor, transportation, fuel, etc. ○Inability to commit to delivery schedules ○Uncertainty regarding how long the impact will last ○Potentially a year or more Various cost impacts from scope changes, normal cost inflation, permitting delays, competition with private sector construction, etc. 98 97 98 50 Capital Project Cost Increases 99 Potential Capital Project Gaps GO Bond projects ○72nd Street Complex: >$20 million ○Bayshore Park (Par 3): $6 to $7 million ○Fire Station #1: $6 to $10 million ○Police Headquarters: $4 to $5 million ○Maurice Gibb Park: $500K to $1 million Other ○North Beach Oceanside Park: ~$2 million ○1st Avenue: $20 million 100 99 100 51 72nd Street Project Gap On April 12th staff entered negotiations with The Haskell Company ○Currently reevaluating design assumptions and cost saving measures Potential budget gap of $24.6 to $49.1 million ○$1 million earmarked from the Ocean Terrace legal settlement ○Look at parking garage cost to potentially bond that portion of the project Current North Shore Branch Library site could be sold to generate revenue to offset the gap ○Appraised value of $75 million if all 5 parcels are included; would trigger voter referendum due to oceanfront parcels ○On May 21st FERC asked for appraisal of the front 2 parcels ($10 million); look at value from FAR scenarios; potentially turn 3 other parcels into green space 101 Unfunded Projects Collins Park Cultural Facility Byron Carlyle Barclay Old Fire Station #1 Tight Urbanism Other 102 101 102 52 Capital Project Funding Options Potential sale of 5 vacant parcels identified by Property Management and CBRE’s asset inventory study: $16.2M Proposed Seagull Hotel street vacation: $7.4M Uncommitted Ocean Terrace legal settlement: $1.6M Savings in various GO Bond projects ○Parks category: $1.5M; Public Safety category: $1.0M Other 103 Resilience Capital Projects - Address Flooding and Sea Level Rise, Aging Infrastructure, Quality of Life Co-Benefits - Reduce risk from current and future flooding from storms, rainfall, tidal, and sea level rise through stormwater infrastructure, road elevation, blue green infrastructure - New and improved infrastructure including Water and Sewer, sidewalks, lighting, landscaping - Avoid flooding and damage & water and sewer breaks that are public health and near-shore water quality concerns, improve water flow for fire Department, pedestrian & cyclist safety 103 104 53 Wa t e r & S e w e r Critical Capital Needs Update $122 million of critical needs were identified in a report developed by Hazen and Sawyer Commission approved a funding plan for the $122 million 105 Wa t e r & S e w e r Critical Capital Needs Update 5 year schedule of rate increases approved in November 2020 FY 2022 rate increase is 1% Bonds of approx. $50 million will likely be issued in FY 2023 Fiscal Year Rate Increase FY 2021 0.0% FY 2022 1.0% FY 2023 3.6% FY 2024 3.6% FY 2025 3.7% 106 105 106 54 Wa t e r & S e w e r Capital Update A portion of the capital needs for Water & Sewer will be addressed as part of the implementation of Neighborhood Improvement projects Funding for these projects will require future rate increases that will depend on the projects selected and timing of implementation 107 RE S I L I E N C E 108 Indian Creek •Phase III - $19.6 M (funded) •Next step: commence seawall West Ave •Phase II - $105 M (funded) •Next steps: completing harmonization agreements, permitting, breaking ground First Street •Estimated Cost $26 M (funded) + $20 M (unfunded) •Next step: Issue task for design, Option 5B may have additional cost Current Neighborhood Projects 107 108 55 109 Recommended Next Projects 1. North Beach Town Center 2. Normandy Isles A Projects in Progress 1. West Ave 2. Indian Creek 3. First St. RE S I L I E N C E 110 1.North Beach Town Center Staff recommends Town Center based on CRA opportunity, resilience and development readiness, and cost in comparison to Normandy Isles A $100M staff estimated cost: ($4M GO Bond, $21M water, $21M sewer, $54M stormwater 2.Normandy Isles A Jacobs Neighborhood Project Prioritization Project #1 (approved July 2020) Ranked #1 based on flood risk, water and sewer needs, and population density $300 M staff estimated cost based on La Gorce Bids: ($8M Go Bond, $64 water, $64 sewer, $164 stormwater) 109 110 56 RE S I L I E N C E 111 North Beach Town Center (NBTC) ●NBTC overlay was approved in Nov 2018, after being envisioned by the North Beach Master Plan (approved Oct 2016) ●Development in NBTC will accelerate CRA benefits ●The NBTC is resilient ready: requires sea level rise adaptation through a 5’ freeboard that can more easily harmonize with road elevation goals. ●NBTC requires greater setbacks, which will mean easier harmonization and pedestrian-friendly walkways, with larger trees for a more immediate canopy. ●6 Private developments have been approved, providing an opportunity for coordination for above ground improvements. ●72ND St Complex is adjacent to the North Beach Town Center ●Green and yellow parcels are approved developments. RE S I L I E N C E 112 Normandy Isles A ●Mainly residential housing stock ●Dense, mix of single-family homes, multi-family ●Mixed-income ●Includes Normandy Isles Historic District ●Partially within the CRA boundaries ●Normandy Town Center Corridor 111 112 57 RE S I L I E N C E 113 Public Seawalls 53 Miles of Seawall 4.15 are Public 1 Mile is Improved 3.15 Remaining to Build $42 M in Construction Cost $10 M available from GO Bond $12 M available from Citywide Seawalls Funding Gap = $20 M in future years Resiliency Fund Commitments 114 Resiliency Funds Available 57,176,165 Indian Creek Dr. Flooding Mitigation (March Capital Budget Amendment)(6,862,745) Community Park (Par 3) Park Renovations (May Capital Budget Amendment)(3,500,000) Projected FY 2022 Revenue 11,000,000 Updated Total Available for Appropriation 57,813,420$ Requests West Ave. Ph II Improvements (Discussed at FERC)(15,000,000) First Street Project (Discussed at FERC)(20,000,000) Funding for Seawalls in Capital Budget (50% funding of $20 million) (10,000,000) $666K to be appropriated to Resiliency Fund for 5 years (3,333,330) Stormwater funding for Lincoln Road Project (1,800,000) North Beach Town Center (remainder of project to be funded by future rate increase) (7,680,090) Total 0$ 113 114 58 Goal: Prevent damage from  flooding now and in  the future. Nov 2020 City Commission: Resilience Fund Approved* •Support property owners to make flood resilience  improvements to their properties through a 50/50 matching  grant between the city and grantee.  •Assessment as Year 1 •Projects are reimbursement based, up to $20,000 per property •Agreement between property owner and contractor •Special consideration for low to moderate income‐no match  required *Appropriation is required through the FY 21‐22 budget process. Private Property Adaptation Flood Mitigation and Sea Level Rise Resilience 115 ASSESSMENT YEAR 1             1) Grant program 2) Assessments •Report of options  and costs 3) RFP‐consultant to  prepare assessments ‐Contractor with flood  mitigation experience  and a landscape  architect CONSTRUCTION YEARS 2+             1) Grant program 2) Assessments &  Construction •Blue Green  Infrastructure •Property Flood  Mitigation 3) RFP –Agreement  between contractor and  owner 4) Staff resources for  program administration Funding Approval‐Nov 2020: $666K Appropriation: Oct 2021 Funding Approval:  Up to $666K  within the annual budget process 116 115 116 59 Eligibility •Single  Family •M u l t i‐ Family • Commercial Requirements •Elevation  Certificate • Flood  Insurance •P r o p e r t y  Owner Priority •Low Income • Evidence of   flooding  issues •L o w  elevation 117 NEXT STEPS •City Commission appropriation through the budget process •Creation of program: procurement, materials, grant process, applications, legal  agreements, awareness and communications, impact metrics •Launch program 118 117 118 60 Advertising & Sponsorships SPECTRA PARTNERSHIPS MIAMI BEACH COMMISSIONERS MEETING June 4, 2021 119 120 61 DAVID LIVINGSTON VICE PRESIDENT, SPECTRAPARTNERSHIPS GREG CARNEY DIRECTOR OF PARTNERSHIPS, SPECTRA; CITY OF MIAMI BEACH 121 SPONSORSHIP ENVIRONMENT CURRENT INDUSTRY STATUS Brand confidence starting to come back as vaccinations continue to roll out Brand Spending Primarily focused on venues/events that have regional/national media exposure due to expanded audiences for events (i.e. MLB/NBA) Still slow to commit dollars to properties/events that rely on “in- person” impressions. Targeting late Q3 to early Q4 returns once confident that in-person events won’t lead to surges Category Insight “Warm”: Discount Mortgage; Retail - Grocery; “Health” “Cold”: Finance/Banking (low rates); Auto (low inventory due to scarcity of used vehicles and chip tech for new vehicles) 122 121 122 62 CURRENT KEY PRIORITIES 1. Naming Rights •M B C C • North Beach Band Shell 2. City Pouring Rights Partnership 3. Major Events • Fire on the 4th • Veterans Day 4. City-wide “Official Partnerships" 123 LOCAL SPONSORSHIP UPDATE Continue to actively engage brands across all industries for Naming Rights to the Miami Beach Convention Center, the North Beach Bandshell and other city-owned venues Currently negotiating with Coca-Cola (incumbent) and other brands in order to realize most beneficial Pouring Rights partnership for City Continuously working with City on exploring possible partnerships with city vendors that would offer cost savings on large expenses, i.e. vehicles, technology, ride share, uniforms/apparel Currently engaged with a number of brands specifically for sponsorships for events later in the year, calendar Q1 (Veterans Parade, Art Week, etc.) 124 123 124 63 LOCAL SPONSORSHIP UPDATE CHALLENGES AND OPPORTUNITIES Brands unable/unwilling to travel to see venues in-person (Naming Rights). Starting to change as vaccines roll out Unable to reach out to banking brands during city-wide RFP process (Banking is the #1 category for Convention Center Naming Rights nation- wide). Recently able to begin engaging Desire/ability for people to gather outdoors will lead to good opportunity for both major and recurring minor events/programs MBCC securing partnership with Informa for International Boat Show provides another premium event to attract major lifestyle brands Brands’ focus on “Social” and “Environmental” consciousness potentially opens up additional funding apart from traditional advertising dollars 125 THANK YOU 125 126 64 Transportation Fund Transportation Funding $3 5 0 . 1 $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 FY 2019 FY 2020 FY 2021 FY 2022 Resort Tax Parking PTP Other FY 2019 FY 2020 FY 2021 FY 2022 $ 14,552,758 $ 11,118,190 $ 9,485,200 $ 11,336,000 Tr a n s p o r t a t i o n Funding for Transportation Initiatives has decreased by 22% between FY 2019 and FY 2022 128 127 128 65 Trolley Service Update Trolley service suspended March 26, 2020 Trolley service resumed February 15, 2021 (reduced service level) FY 2022 Budget assumes continuation of reduced service level Tr a n s p o r t a t i o n 129 Trolley Level of Service Tr a n s p o r t a t i o n Pre-COVID Level of Service FY 2021 FY 2022 Hours 18* (6 am to 12 am) 15 (8 am to 11 pm) 15 (8 am to 11 pm) Vehicles 25 15 15 Routes 4 4 4 Frequency Average of 15 to 20 minutes Average of 30 minutes Average of 30 minutes *Except for Sundays which was 16 hours (8 am to 12 am) 130 129 130 66 Additional Updates Tr a n s p o r t a t i o n ○Includes resumption of Middle Beach On-Demand Freebee at the service level approved by the City Commission ○Includes costs for cleaning/sanitizing of the vehicles ○Trolley vehicle assignment, service frequency, and service hours would be subject to change based on demand ○Trolley level of service could be increased incrementally depending on budget availability ○Also includes $1.5M for Intelligent Transportation System (ITS) operating & maintenance costs 131 Funding for Pilot Projects Tr a n s p o r t a t i o n Continuation of funding for existing pilot projects - $223K Open-Slow Streets – Flamingo Park Neighborhood – $137,000 Washington Avenue Protected Bicycle Lanes – $86,000 132 131 132 67 Funding for New Pilot Projects Tr a n s p o r t a t i o n New pilot projects discussed at May 24th Bicycle & Pedestrian Safety Workshop - $404K Pennsylvania Ave Temporary Bike Lanes – $64,000 Bicycling Parking Islands – $15,000 North Beach Pedestrian Improvements - $75,000 Pine Tree Drive/La Gorce Dr Protected Bicycle Lanes - $100,000 South Beach Promenade Interim Project - $150,000 133 ITS Project Purpose •Implementation of state-of-the-art technology (smart traffic monitoring cameras, travel time detection sensors, and dynamic message signs) to reduce traffic congestion and increase traffic efficiency •Deployment of real-time traffic information signs to manage incidents •Real-time data analytics to integrate signal timing changes to mitigate congestion before it occurs •Integration with parking to provide real-time parking availability information to reduce congestion related to parking shortage •Expert traffic monitoring staff to review and deploy mitigation strategies real time for 14-hours a day 134 133 134 68 Project Status •90% Design: Phases 1 (Red) and 2 (Purple) 100% Structural Plans 100% TMC Plans Coordination with FDOT and County •Construction Notice to Proceed expected in July 2021 135 What to Expect? •Starting July 2021, contractor will begin: Camera Installation Sensor and Data Collector in installation Traffic Management Center construction Installation of Digital Message Signs •Immediate Benefits 14 Hours per day of traffic monitoring and management Improved information dissemination on traffic congestion and incidents Real-time parking availability information on all garages and 35 parking lots 136 135 136 69 Convention Center Fund Convention Center Fund ●Reserve at the end of FY 2020 totaled $8.3M ○Projected to use $8.2M during FY 2021 ○Projected to use $584K during FY 2022 ■Planned events are trending up so this amount may decrease ●Projected reserve by end of FY 2022 would be ($530K) ○May need to be covered by the Resort Tax or General Fund 138 137 138 70 Convention Center Fund Balance $13.7 M $8.3 M $54.1 K - $529.9 K-$2.0 M $0.0 M $2.0 M $4.0 M $6.0 M $8.0 M $10.0 M $12.0 M $14.0 M 9/30/2019 9/30/2020 9/30/2021* PRELIMINARY 9/30/2022 *Projected as of Q1 of FY 2021 139 Convention Center Legal Fees ●Projected to need $4 million legal fees related to defending lawsuit with Clark ○Commission approved a budget amendment for $2 million on April 21st ○Remaining $2 million is still anticipated to be needed 140 139 140 71 PARKING BUDGET UPDATE 141 COVID‐19 Impacts The Parking Department experienced a 90% revenue loss at the beginning of the Pandemic. As a result, during the FY 2021 budget process the following measures were implemented: •Suspension of all pay stations ($1.7M) •Reduction of parking funded positions in other dept’s ($509K) •Reduction in levels of service ($2.0M) – i.e. security, litter control, pressure washing, & landscaping •Reduction in full-time positions ($500K) - reclass of both AD positions & elimination of 6 other FT positions •Refinancing of 2010 Parking Bonds ($2.6M) •Reduced contribution to renewal and replacement ($5M) •Miscellaneous ($300K) – furlough days and deferment of vehicle replacements •Deferment of funding for certain capital projects TOTAL: $12.6M 142 141 142 72 Current Year  Status •Revenues from Parking operations projected above budget •Delay in reinstatement of service levels that were reduced due to the Pandemic such as landscaping, security and janitorial •Continued vacancy of budgeted positions due to lingering effect of the Pandemic, new vacancies, and hiring challenges 143 Current Year  Status 144 FY 2021 FY 2021 FY 2021 VarianceBudget* Projected Operating Revenues: Meters and Garages 27,593,000 28,964,000 1,371,000 Other 7,437,000 7,633,000 196,000 General Fund Transfer 1,211,000 1,211,000 0 Use of Prior Year Fund Balance 178,000 178,000 0 Total Revenues $36,419,000 $37,986,000 $1,567,000 Operating Expenditures: Salaries & Benefits 12,491,200 10,549,000 (1,942,200) Operating Expenditures 16,064,800 13,280,000 (2,784,800) Other 7,863,000 7,863,000 0 Total Expenditures $36,419,000 $31,692,000 ($5,954,000) Surplus/(Gap) $0 $6,294,000 *FY 2021 Budget adjusted to exclude pass-thru for Park Mobile fees collected and paid 143 144 73 FY 2022 Budget FY 2021 FY 2022 Projected Preliminary Total Revenues 37,986,000 43,493,000 Total Expenditures 31,692,000 43,493,000 Projected Surplus/(Gap)$6,294,000 $0 Elimination of General Fund Transfer (1,211,000) 0 Revised Projected Surplus/(Gap)$5,083,000 $0 145 FY 2022 Budget •FY 2022 Parking revenues projected at 90%of FY 2019 Actuals (Pre-COVID) •FY 2022 Parking Budget includes the following: Elimination of General Fund Subsidy (FY 2021 - $1.2 million) Reconnection of Parking Pay Stations suspended due to COVID-19 Convention Center Garage Operations and Maintenance Debt Service for Parking Revenue Bonds Budgeted Set-aside for Renewal and Replacement of Parking Assets 146 145 146 74 Special Taxing Districts 10/01/2018 10/01/2020 10/01/2020 Special Taxing Districts / Assessments Miami Beach Security Guard Special Taxing Districts Biscayne Point Biscayne Beach Allison Island Star Island Palm and Hibiscus Island Transfer Date 148 147 148 75 Sp e c i a l T a x i n g D i s t r i c t s Staffing Update •Hired an Administrative Officer in 2021- Kenneth Soler •Dedicates at least 50% of time to the City’s Special Taxing Districts 149 No r m a n d y S h o r e s Normandy Shores Update •FY 2015 – Inadvertent reinstatement of ad valorem cap of $500 per property •FY 2021 – Significantly reduced millage rate adopted due to $500 cap; used most of reserve to balance the budget •FY 2021 – Ordinance amended to remove $500 cap •FY 2022 – Significant increase in millage rate to return to normal level 150 149 150 76 No r m a n d y S h o r e s Normandy Shores Budget & Millage FY 2019 FY 2020 FY 2021 FY 2022 Residents 165,000 174,000 17,900 169,000 City Subsidy 88,000 93,000 93,100 91,000 Use of Fund Balance 0 30,000 138,000 0 Total Revenues $253,000 $297,000 $249,000 $260,000 Dedicated Normandy Shores Millage 0.8161 0.8161 0.0773 0.7538 Total Expenditures $253,000 $297,000 $249,000 $260,000 151 Fleet Mgmt. Fund 151 152 77 General Fund Fleet Replacement Trend $ 4 . 5 1 M $ 3 . 9 1 M $ 4 . 6 4 M $ 4 . 9 5 M $ 5 . 1 1 M $ 0 . 0 0 M $ 2 . 5 1 M $ 3 . 0 3 M $ 7 . 4 7 M $ 9 . 9 7 M $ 7 . 4 1 M $ 0.00 M $ 2.00 M $ 4.00 M $ 6.00 M $ 8.00 M $ 10.00 M $ 12.00 M 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 153 5-Year Vehicle & Equipment Replacement Plan Contributions from RDA funds in FY 2022 and FY 2023 are helping to address these needs $ 7.41 M $ 8.13 M $ 6.80 M $ 4.93 M $ 5.10 M $ 0.00 M $ 2.00 M $ 4.00 M $ 6.00 M $ 8.00 M $ 10.00 M 2022 2023 2024 2025 2026 154 153 154 78 “Green” Vehicle Fleet Projected Growth 155 Collective Bargaining Update 155 156 79 Expiring Agreements Fraternal Order of Police (FOP) 402 Intl. Assoc. of Fire Fighters (IAFF) 202 Communications Workers of America (CWA) 299 Gov. Supervisors Assoc. of Florida (GSAF) 71 American Federation of State, County and Municipal Employees (AFSCME) 367 All five collective bargaining agreements expire in FY 2022 157 IAFF –Classifications within Bargaining Unit Fire Inspector Fire Inspector Supervisor Firefighter Fire Lieutenant Fire Captain All probationary employees serving in these classifications. *All other employees in other present classifications, including Fire Chief, Assistant Chief, Division Chief, Battalion Chief and any other classifications established by the City, are excluded. 158 157 158 80 IAFF –October 1, 2018 – September 30, 2021 Highlights: COLA o 0% October 2018 (FY 2019) o 1% April 1, 2020 (FY 2020) o 1% April 1, 2021 (FY 2021) Modifications to certain assignment pays Modifications to paid leave provisions Pension buyback provision paid by the employee to purchase past service for military and fire service Modifications to the promotional process Modifications to the method used to determine contributions to the IAFF Health Trust 159 GSAF –Classifications within Bargaining Unit Air Conditioning Supervisor Plumbing Supervisor Backflow Coordinator Police Records Supervisor Beach Patrol Operations Supervisor Public Safety Payroll Administrator Carpenter Supervisor Pumping Operations Supervisor Central Services Supervisor Recreation Supervisor I City Surveyor Sanitation Operations Supervisor Communications Supervisor Security Specialist Crime Scene Supervisor Senior Building Inspector Electrician Supervisor Senior Engineering Inspector Electronics/Instruments Supervisor Service Supervisor Fire Inspections Supervisor Sewer Field Operations Supervisor Fleet Operations Supervisor Street Lighting Operations Supervisor Lead Mechanic Street Operation Supervisor Maintenance Supervisor Utility Billing Supervisor Metered Service Supervisor Warehouse Supervisor Paint Supervisor Water Field Operations Supervisor Park Operations Supervisor Water Meter Supervisor Parking Operations Supervisor 911 Communications Records Custodian 160 159 160 81 GSAF -October 1, 2018 – September 30, 2021 Highlights: COLA o 1% October 1, 2018 (FY 2019) o 1% October 1, 2019 (FY 2020) o 1% October 1, 2020 (FY 2021) (2% COLA possible if General Fund revenue growth exceeds 10%) Modifications to classifications within bargaining unit Modifications to certain skill and certification pays Modifications to paid leave provisions Establishment of a landfall team for natural disasters Modifications to uniform allowances Modifications to meal allowance Modifications to Drug Testing Policy 161 FOP -Classifications within Bargaining Unit Trainees Police Officers Sergeants of Police Lieutenant of Police Detention Officers * FOP has a new executive board. Paul Ozaeta is the newly elected FOP President. 162 161 162 82 FOP -October 1, 2018 – September 30, 2021 Highlights: COLA o 0% October 2018 (FY 2019) o 1% April 1, 2020 (FY 2020) o 1% April 1, 2021 (FY 2021) Modifications to certain assignment pays Modifications to paid leave provisions Pension buyback provision paid by the employee to purchase past service for military and police service Modifications to the promotional process Modifications to the method used to determine contributions to the IAFF Health Trust Modifications to grievance resolution process 163 CWA -Classifications within the Bargaining Unit Account Clerks Administrative Aides Administrative Assistant I Administrative Secretary Air Conditioning Mechanic Building Inspector Buyer Carpenters Clerk Clerk Typist Code Compliance Administrator Code Compliance Officers Commission Reporters Communications Operator Complaint Operator II Crime Analysis Specialist Crime Scene Technicians Data Entry Clerk Dispatchers Duplicating Equipment Operator Electrical Inspector Electrician Elevator Inspector Engineering Assistants Engineering Inspector Field Inspectors Finance Specialists Lifeguards Lifeguard Lieutenant Mason Masonry Helper Mechanical Inspector Meter Analyst Painter Parking Dispatcher Parking Enforcement Specialists Parking Meter Technicians Permit Clerks Planning Technician Plumber Plumbing Inspector Pool Guards Police Fleet Specialist Police Photographer Police Records Technician Property Evidence Technicians Public Safety Specialist Revenue Processors 164 163 164 83 CWA -October 1, 2018 – September 30, 2021 Highlights: COLA o 1% October 2018 (FY 2019) o 1% October 2019 (FY 2020) o 1% October 2020 (FY 2021)(2% COLA possible if General Fund revenue growth exceeds 10%) Modifications to certain assignment pays Increase in PSCD specialty pays Increase in EMT pay for Ocean Rescue Hazardous Duty Pay Modifications to paid leave provisions Enhancement to OT provision Establishment of a landfall team for natural disasters Modifications to Seniority Modification to Drug Testing Addition of hallucinogens 165 AFSCME -Classifications within the Bargaining Unit Assistant Pumping Mechanic Building Supervisor Building Services Technician Central Services Technician Control Room Operator Concession Attendant Customer Service Representative Diesel Generator Mechanic Fire Equipment Mechanic Fleet Service Writer Fleet Service Representative Heavy Equipment Operators Ice Rink Technician Irrigation System Supervisor Mechanics Municipal Service Workers Municipal Service Worker Trainee Museum Guard Park Supervisor Pest Control Supervisor Pumping Mechanic Recreation Attendant Recreation Leaders Recreation Program Supervisor School Guard Sewer Pipefitter Sewer Supervisor Sign Maker Storekeeper’s Storekeeper/Mechanic Street Lighting Technicians Street Supervisor Tree Maintenance Supervisor Tree Trimmer Waste Collector Waste Driver Supervisor Water Meter Technicians Water Pipefitter Water Supervisor 166 165 166 84 AFSCME –May 1, 2019– April 30, 2022 Highlights: COLA o 1% April 2019 (FY 2019) o 1% July 2020 (FY 2020) o 1% July 2021 (FY 2021) (2% COLA possible if General Fund revenue growth exceeds 10%) Modifications to certain assignment pays Increase in certification and skill pays Modifications to paid leave provisions Modifications to Seniority Vacation Leave Sell Back Program – one time basis One Time Early Retirement – one time basis Modification to Drug Testing Addition of hallucinogens 167 Parks and  Recreation ZERO BASED BUDGET 168 167 168 85 DE P A R T M E N T  MI S S I O N We are dedicated to providing beautiful, exciting, and vibrant parks along with recreational services and facilities. 169 169 BUDGET –EXCLUDING GOLF CLUBS FY 2021 Parks and Recreation Budget Expenses $27,446,000* Revenue $4,254,100* Other City  Revenue  Generated by  Parks •Children’s Trust Grant •Other Department Grants •Park Impact Fees,  •South Pointe Park SW Lease •South Pointe Park  Concession Lease •Special Event Revenue Expenses $27,446,000 Revenue $4,254,100 The Parks and Recreation programs are 85% subsidized  *Does not include the Golf Clubs 170 170 169 170 86 REVENUES –EXCLUDING GOLF CLUBS Recreation 45% Flamingo Park  Tennis Center 26% Transfer in  From Resort Tax* 12% Other 17% *Does not include the Golf Clubs **These funds are to be used for beachfront restrooms- related expenditures. 171 171 BUDGET – GOLF CLUBS FY 2021 Golf Club Budget Expenses $7,090,000 Revenue $6,964,900 Expenses $7,090,000 Revenue $6,964,900 The Golf Clubs are 2% subsidized  172 172 171 172 87 REVENUES – GOLF CLUBS Miami  Beach  Golf Club 67% Normandy  Shores Golf  Club 33% 173 173 TYPES OF PROGRAMS PRIMARY PROGRAMS SECONDARY  PROGRAMS OTHER PROGRAMS •Parks Ground  Maintenance •Parks Facilities •Park Ranger Program •Operations, Management  & Support  Services •Child Care •Summer Camps •Teen Programs •Senior Programs •Special Populations •Youth Programs •Aquatics •Youth & Teen Athletics •Adult Programs •Ice Rink •Adult Athletics •Special Events •Miami Beach Tennis  Center •Flamingo Park Tennis  Center •Miami Beach Golf Club •Normandy Shores Golf  Club 174 174 173 174 88 Primary  Programs 175 Parks Grounds  Maintenance This program oversees the landscape maintenance services. In addition, this division is responsible for the management of vendor contracts pertaining to grounds maintenance, athletic fields and dog parks. •Cultivation of a resilient urban landscape •Continuous transformation of greenspaces to meet evolving community needs •250 acres serviced (excluding golf courses) •Preparation of park spaces pre and post special events of global magnitude Revenue* $0Expenses* $1,963,903 This program is 100% subsidized.  * Excludes RDA-funded portion, which is noted separately 176 176 175 176 89 Grounds  Maintenance •Tree Trimming •Implementation of Annual Plantings •Mow, Edge, Line Trim •Irrigation Control Check •Full Irrigation Services (Wet Test) •Plant Bed – Shrub Pruning •Weed and Pest Control •Litter Control •Green Infrastructure Enhancements •Implementation of City Resiliency Initiatives REGULAR SERVICES PROVIDED BY CONTRACTORS •Soil Sampling 4x per year •Fertilizing 9x per year •Apply growth regulators every 3 weeks from  March‐November •All Palms fertilized 4x a year •36 General Service Visits a year for all parks and  52 visits for South Pointe Parks and Soundscape  Park •140 General Services for Sports Fields •Trash and Recycle Bin emptied 6x per day and  wiped down 1x daily 177 177 Parks Facilities This program oversees the facility maintenance operations, preparation of park maintenance, swimming pools, Flamingo Park Tennis Center and neighborhood courts. This division manages all repairs and small capital projects within the department. •Identify existing parks with opportunities for enhancements. •A highly resilient parks and recreation system will be prepared to address the challenges of  the future. •Delivery of cutting‐edge facilities ranging from full‐service recreation centers to outdoor  play and fitness amenities Revenue* $542,000Expenses* $5,183,220 This program is 90% subsidized.  *Includes a $542,000 Transfer In from the Resort Tax Fund 178 178 177 178 90 Park Ranger  Program This program serves to patrol park facilities and grounds enforcing park rules and regulations. This includes explaining and enforcing regulatory codes and ordinances. This program has been transformative in enhancing the park user experience at destination parks such as Lummus, Flamingo, South Pointe, and North Beach Oceanside. Revenue* $0Expenses* $1,979,000 This program is 100% subsidized.  FY 20 Statistics Verbal Warnings 177,105 Face Masks Warnings 78,632 Face Masks Issued 7,433 Written Citations 5 Written Warnings 14 Police Assists 113 Maintenance Assists 131 Parking Assists 28 Code Compliance Assists 5 Fire Assists 113 Homeless Outreach Assists 4,577 Safety/Security Checks 79,577 * Excludes RDA-funded portion, which is noted separately 179 179 Park Ranger  Program Dedicated Park Rangers Roving Park Rangers •South Pointe Park•Lummus Park •Flamingo Park •Maurice Gibb Memorial Park (Weekends) •North Beach Oceanside Park •Beachwalk from South Pointe to 5th •Beachwalk from Lummus Park to 24th •Marjory Stoneman Douglas Park •Collins Park •Palm Island Park•Belle Isle Park •Beachwalk from 24thto 46th •Beachwalk from North Beach Oceanside Park to 71st Street (Includes Altos del Mar Park) •Misc. Park Spot Checks Citywide Funded Park Ranger Positions  Full‐Time 13 Part‐Time 23 Total 36 180 180 179 180 91 Operations,  Management &  Support Services •Ensures a workforce of excellence that meets the evolving community •Leverage underutilized City assets for recreational opportunities. •Incorporate the principles and recommendations of Commission‐approved plans  into the implementation of parks and open space improvements. This division is responsible for the overall management of the department. Expenses include salaries and benefits for 38 FTEs, telephone, bank fees, internal services, travel/training, memberships, and more. Revenues includes misc. fees and rentals. Expenses range from salaries to internal servicesand telephone expenses. Revenue $257,000Expenses $7,477,697 This program is nearly 100% subsidized 181 181 Secondary  Programs 182 181 182 92 Child Care Child Care includes safe, structured and supervised programming for children during the school year such as the Playtime Program for ages 3‐ 4 years old and the Afterschool Programs for grades K‐5th. Financial aid is available for those who qualify. Average customer satisfaction surveys for Child Care programming exceeds 90%. Locations: •South Pointe Park •Flamingo Park •Scott Rakow Youth Center •Muss Park •North Shore Park Youth Center Schedule: •School Year •Monday‐Friday •Playtime: 9am‐1pm         Afterschool: 2pm‐6pm 183 183 Child Care This program is 89% subsidized  Revenue $226,000 Average Annual Enrollment •Playtime Program: 80 •Afterschool Program: 650 Expenses $2,091,105 184 184 183 184 93 Summer  Camps Summer Camps include traditional summer camp, Playtime summer camp and specialty summer camps such as Culinary, Coding, Mad Scientist, Jr. Firefighter and Police, throughout all park facilities. Financial aid is available for those who qualify. Average customer satisfaction surveys for Child Care programming exceeds 90%. Average Annual Enrollment •Traditional Summer Camps: 1080 •Playtime Summer Camps: 80 •Specialty Summer Camps: 1650 Schedule: June – August 7:30am –6 p m Locations: Camps are offered  throughout the City 185 185 Summer Camps This program is 78% subsidized  Revenue $627,000 Expenses $2,913,594 186 186 185 186 94 Teen Programs The Miami Beach Teen Club is an After‐School Program designed for T e e n si na ne f f o r tt oe n g a g eas o m e t i m e s“ a t‐risk” population in meaningful activities such as: drug prevention and entrepreneurial programming, field trips, performing arts, summer camp and community service opportunities. •Number of Teens Served Annually: 920 Expenses $275,676 Revenue $1,000 This program nearly 100% subsidized  187 187 Senior Programs This program includes a variety of activities and programs for seniors ages 55+ such as field trips, bingo nights, Tai‐Chi, Yoga and more. •Annual Fitness Program Participants: 998 •Number of Field Trips a Year: 24 •Estimated Participants at each Senior Event: 700+ Revenue $14,000Expenses $131,992 This program is 89% subsidized 188 188 187 188 95 Special  Populations  Programs This includes programs for children ages 16+ and adults with intellectual disabilities to participate in regularly scheduled recreational activities. •Number of Participants on Annual Basis: 210 •Number of Programs Offered: 17 •This program also includes the $85k Grant that is given to the Shane Rowing Center annually for their Para‐rowing Program. Revenue $2,000Expenses $186,456 This program is nearly 100% subsidized 189 189 Youth   Programs Youth Programs includes specialized youth programs which take place in the youth centers for ages 5 – 13. Programs are instructed by staff as well as Contractors. Types of Youth Programs Offered •Dance •Art •Guitar •Piano •Storytime  •Cooking •Gymnastics Revenue $135,000 Expenses $98,332 Revenues exceed expenditures for this program. 190 190 189 190 96 Aquatics This program includes all operational expenses and programming revenue such as Swim Team, Learn to Swim programs and Pool Entrance fees at the City's 3 aquatic centers. •Annual Number of Program Participants: 1410 •Number programs offered: 10 •Number of participants benefiting from Free Swim Lessons: 40 •Annual Number of Pool Users: 172,110 Revenue $196,100Expenses $2,020,395 This program is 90% subsidized. City of Miami Beach Residents have free access to the pools. 191 191 Other  Programs 192 191 192 97 Youth  & Teens  Athletics  Athletic programs for youth and teens includes Danny Berry Baseball, Travel Soccer and the Teen Basketball League. •Annual Number of Program Participants: 1507 •Number programs offered: 7 Revenue $118,000 Expenses $210,471 This program is 44% subsidized 193 193 Adult Programs Adult Programs include specialized programs for ages 18+ such as yoga, zumba, open gym and fitness centers. •Monthly Fitness Center Enrollment: 205 •Monthly Use of Open Gym: 140 •Average Number of Participants in Zumba & Yoga: 330 Revenue $75,000 Expenses $69,571 Revenues exceed expenditures for this program. 194 194 193 194 98 Scott Rakow  Youth  Center Ice  Rink This program includes all operational expenses and programming revenue for the Scott Rakow Youth Center Ice Rink such as public skating sessions, private lessons and rentals. •Annual Number of Program Participants: 10,199 •Number programs offered: 11 •Annual Number of Rentals: 138 Revenue $368,000Expenses $558,497 This program is 34% subsidized. 195 195 Adult Athletics  This program includes all adult athletic leagues such as Sand Volleyball, Co‐ed Softball League, and Flag Football. •Annual Number of Program Participants: 5,685 •Number programs offered: 18 Revenue $22,000 Expenses $0 Revenues exceed expenditures for this program. 196 196 195 196 99 Special Events This includes all special events organized by the department such as the following: Spring Eggstravaganza, Youth Music Festival, Black History, Jose Marti, Kid Zone during Memorial Day Weekend, Winter Wonderland, Hispanic Heritage and Halloween Safe Night of Fright. •Number of Special Events: 26 •Annual Estimated Number of Event Participants: 15,676 Revenue $13,000Expenses $391,091 This program is nearly 100% subsidized. 197 197 Miami Beach  Tennis Center The Miami Beach Tennis Center (formerly known as the North Shore Tennis Center) is currently managed by a Contractor. They are responsible for all maintenance and staffing expenses. The Contractor collects the revenue and pays the City a monthly fee. •Number of Tennis Program Participants: 1594 •Number of Programs Offered: 4 •Number of Members: 112 Revenue $60,000 Expenses $0 Revenues exceed expenditures for this program. 198 198 197 198 100 Flamingo Park  Tennis Center The Flamingo Park Tennis Center (FPTC) is currently managed by the City. Through Independent Contractors, the City provides private and group tennis lessons. All expenses are paid by the City and all revenues are collected and deposited into a City account. •Number of Tennis Program Participants: 3010 •Number of Programs Offered: 38 •Number of Members: 284 Revenue $1,104,000Expenses* $1,228,000 This program is 10% subsidized. *Includes $78,000 in administrative costs funded out  of the general Parks & Recreation budget 199 199 EXPENSES FY 2020 Actuals FY 2021 Adopted FY 2021 Projection FY 2022 Prelim. $ 496,531 $ 1,150,000 $ 1,259,800 $ 1,555,200 REVENUE FY 2020 Actuals FY 2021 Adopted FY 2021 Projection FY 2022 Prelim. $ 470,635 $ 1,104,000 $ 1,412,000 $ 1,810,300 NET -$25,896 -$46,000 $152,200 $255,100 FLAMINGO PARK  TENNIS CENTER 200 200 199 200 101 Miami Beach  Golf Club The Miami Beach Golf Club is managed by a contractor which oversees the golf operations, course maintenance and food & beverage. It is a nationally acclaimed golf course, ranking among the highest rated public courses. The course also serves as an economic driver. FY 20 •44,399 Rounds •225 Members •18,442 Range Revenue $4,690,100 Expenses $4,154,000 Revenues exceed expenditures for this program. FY 19 •43,441 Rounds •201 Members •18,420 Range FY 21 •49,628 Rounds •225 Members •25,415 Range FY 22 •46,025 Rounds •225 Members •21,000 Range 201 201 Normandy  Shores  Golf Club The Normandy Shores Golf Club is managed by a contractor which oversees the golf operations, course maintenance and food & beverage. Revenue $2,192,800Expenses $2,763,000 This program is 20% subsidized. FY 20 •31,881 Rounds •43 Members •2,784 Range FY 19 •35,213 Rounds •36 Members •4,162 Range FY 21 •40,272 Rounds •60 Members •11,351 Range FY 22 •35,250 Rounds•50 Members •19,000 Range 202 202 201 202 102 Miami Beach Golf Club FY 2019 Actuals FY 2020 Actuals FY 2021 Adopted FY 2021 Projection FY 2022 Prelim. Revenue $ 4,383,047 $ 4,181,722 $ 4,690,100 $ 4,694,000 $ 4,602,000 Expenses $ 3,779,084 $ 3,920,705 $ 4,154,000 $ 4,251,600 $ 3,647,200 Net $ 603,963 $ 261,017 $ 536,100 $ 442,400 $ 954,800 Normandy Shores Golf Club FY 2019 Actuals FY 2020 Actuals FY 2021 Adopted FY 2021 Projection FY 2022 Prelim. Revenue $ 2,178,444 $ 1,820,068 $ 2,274,800 $ 2,265,000 $ 2,271,500 Expenses $ 3,363,640 $ 2,702,476 $ 2,763,000 $ 2,981,500 $ 2,608,400 Net -$ 1,185,196 -$ 882,408 -$ 488,200 -$ 716,500 -$ 336,900 COMBINED NET -$581,234 -$621,391 $47,900 -$274,100 $617,900 GOLF CLUB FINANCIAL SUMMARY  203 203 Parks RDA The Parks and Recreation Department is also funded through the RDA. The grounds maintenance services for Soundscape Park and the Park Rangers that rove the Parks in the RDA District. Revenue $474,000 Expenses $474,000 The Parks RDA Budget is Balanced. 204 204 203 204 103 Adopt‐A‐Bench  Program *Only 2 benches were adopted under the 2016 model, in which the fee was $10,000 and included a commemorative plaque. •Tier 1 Parks (Pocket/Mini Parks) ‐Existing Bench: $1,000 ‐New Bench: $4,000 •Tier 2 Parks (Neighborhood Parks) ‐Existing Bench: $1,500 ‐New Bench: $4,500 •Tier 3 Parks (Special, District & Regional Parks) ‐Existing Bench: $2,000 ‐New Bench: $6,000 Revenue $20,000 Expenses $20,000 This budget is balanced. On November 9, 2016, City Commission passed Resolution No. 2016‐29649 supporting the creation of an “Adopt‐A‐Bench Program.” Funds donated will benefit park improvements. 205 205 Program Summary Total Expenses Total Revenue Subsidy % Primary Programs $16,776,820 $799,000 95% Secondary Programs $7,717,550 $1,201,100 84% Other Programs $10,041,630 $9,218,900 8% Total $34,536,000 $11,219,000 66% 206 206 205 206 104 Opportunities 207 Analyze Parks Concurrence Fee The Parks Concurrence Fee is based on the Levels of Service for parks facilities adopted in the City’s Comprehensive Plan. •Current Account Balance:$799,565 •Average Annual Revenue:$45,000 •Allowable Use:Parks Capital Projects The City’s Comprehensive Plan supports the implementation of a Parks and Recreation  Impact Fee, as noted in:  POLICY CIP 1.5.6: Due to the built‐out nature of the City, the City shall explore the  feasibility of replacing recreation and open space concurrency Level of Service Standards  with a Parks and Recreation Impact Fee to allow for greater flexibility in meeting the  needs of residents and visitors to the City. 208 208 207 208 105 Analyze Our Parks Concurrence Fee Research on Parks Impact Fees  Miami Beach Hotels: $97.35 per unit Residential: $486.25 per unit Miami $3,959.00 ‐$6,818.00  Doral $1,453.40  Coral Gables $3,377.00  ‐$8,982.00  Fort Lauderdale $1,650 ‐$2,900 West Palm Beach $269.67 ‐$3,599 San Diego, California Average of $5,000 Potential Revenue Increase of $180,000 ‐$240,000 annually Recommendation: Conduct a study to analyze our current Parks Concurrence Fee with the possibility of converting it into a Parks Impact Fee at a higher rate that is more in line with surrounding comparable communities. The City currently collects on average $45,000 annually from the Parks Concurrence Fee.209 209 Enhance Adopt‐a‐Bench Program Recommendation: •Add commemorative plaque to adoption •Potential Annual Revenue:$20,000+ (Revenue is used for Park Improvements) •On September 11, 2019, the City Commission lowered the adoption fee and categorized it into 3 price tiers. City Commission also voted to eliminate the element of commemorative bench plaques. •Since this change, there has been interest, but they become disinterested when they are told there is no commemorative plaque. •To date, no benches have been adopted under this new fee structure.210 210 209 210 106 Contribute Revenue Generated by the Lummus Park Artisanal Market to Park Improvements •The City is currently in the process of going out to RFP for the management of the Lummus Park Artisanal Market. The RFP includes a minimum guarantee of 25% of revenue or $74,000 annually. •The RFP will also allow for the management in other locations throughout the City, which includes the possibility of Collins Park and the Normandy Fountain. Recommendation: •Put revenues back into Lummus Park Improvements or Programming (ex. pop‐up events etc.) •Potential Annual Revenue:>$74,000 211 211 Possible Revenue from Paddle Board Rentals This item discussed was during the May 19, 2021 Neighborhoods and Quality of Life Committee Meeting. The item has been referred to Commission with a favorable recommendation. The City has the possibility of proposing profit sharing with the company that will be operating paddle board rentals, if approved. Potential pilot sites will be Parkview Island Annex Park and Pinetree Park. The City should also include kayak rentals for diversity. As a comparison to project estimated additional revenue from this consideration, Pelican Harbor generates $40,000 annually on kayak rentals. Possible Additional Revenue:$8,000 per station (Based on 20% Revenue Share to City) 212 212 211 212 107 Elite Sports Program Offerings The Parks and Recreation Department is exploring the option of contracting with reputable, world‐class sport organizations that focus on premiere competitive play in sports such as soccer and baseball. The Miami Beach athletic baseball and soccer programs have grown over the years. As such, the Parks and Recreation Department believes these sports can be taken to the next level to provide residents with a superior, higher‐quality experience. A competitive bid process for sports such as soccer and baseball can allow for potential additional revenue streams to the City and is a popular model among South Florida municipalities. 213 213 Elite Sports Program Offerings If  the City pursues contracting soccer and baseball with an organization, below is the  potential financial impact for the City:  SOCCER •Current Net Revenue: $4,600 annually •Potential Net Revenue if Contracted and if City collects 20% of revenue: •$50,000+ annually BASEBALL •Current Net Revenue: $0 (The City pays the current Contractor up to $75,000 annually) •Potential Net Revenue if Contracted keeping program rates the same:  •$10,000 if City collects 20% of revenue •$17,500 if the City collects 30% of revenue 214 214 213 214 108 Potential Subsidy  Reductions 215 Comparison of Recreation Rates YEAR‐ROUND PROGRAMMING Current Miami  Beach Rates City of Miami  Springs City of Coral  Gables City of Doral MB A‐Z for  Kids Miami Springs  Montessori Little Heroes Learning Center –Doral Boys & Girls Club Miami & Miami Beach After School Program 9 month program $631* $1,750 $3,730* $3,150 x x x x Playtime Program 8 month program $386 x x x $4,960 $4,240 $6,080 x Teen Club 9 month program $0 x x x x x x $100 SEASONAL PROGRAMMING Current Miami  Beach Rates City of Miami  Springs City of Coral  Gables City of Doral MB A‐Z for  Kids Miami Springs  Montessori Little Heroes Learning Center –Doral Boys & Girls Club Miami & Miami Beach Summer Camp Program 10 –1 1 week program $673* $1,200 $1,760* $1,600 x x x $100 Camp for Tots 9 week program $394 x x x $1,240 $1,060 $1,710 x *Offers financial aid 216 216 215 216 109 Solicitation of Sponsorship to Offset Recreation  Programming Costs The Parks and Recreation Department would like to work with Spectra on seeking sponsorships to mainly offset the subsidy of programs such as childcare, summer camp, Teen Club and special events. The Department is continuously working with the City’s Grants Division to identify other possible sources of revenues. •Sponsorship Ideas: •Naming rights, uniforms, sponsored activations, etc. Recreation Programs Subsidized by the City: •Child Care: 89% / $1,865,105 •Summer Camp: 78% / $2,286,594 •Teen Programs: <100% / $274,676 •Special Events: <100%/ $378,091 •Senior Programs: 89% / $117,992 •Special Populations: <100% / $184,456 •Aquatics: 90% / $1,824,295 •Youth & Teens Athletics: 44% / $92,471 •Ice Rink: 34% / $190,497 •TOTAL SUBSIDY: $7,214,177 217 217 Opportunities Summary Opportunity Potential Revenue Analyze Parks Concurrence Fee $180,000‐$240,000 Enhance Adopt‐a‐Bench Program $20,000+ Contribute Revenue Generated by the Lummus Park  Artisanal Market to Park Improvements >$74,000 Possible Revenue from Paddle Board Rentals $8,000 per station Elite Sports Program Offerings $50,000+ Potential Subsidy Reduction •Fee Increases •Sponsorships TBD 218 218 217 218 110 Questions 219 Next Steps 219 220 111 Next Steps FERC Budget Briefing Operating Budget July 16th FERC Budget Briefing Finalize Capital & Operating Budgets July 23rd Finalize maximum millage rates for Property Appraiser July 28th FERC Budget Briefing Capital Budget June 18th 221 Next Steps City Manager and OMB finalize Proposed Budget August •FIRST PUBLIC HEARING o Adopt tentative millage rates o Adopt tentative operating and capital budgets September 17th Beginning of Fiscal Year 2021 October 1st •SECOND PUBLIC HEARING o Adopt final millage rates o Adopt final operating and capital budgets September 30th 222 221 222 112 Thanks! 223