1A-Adopt And Appropriate 1st Amendment To Budget For City Center RDA And AnchorMIAMI BEACH REDEVELOPMENT AGENCY ITEM SUMMARY
Condensed Title:
A Resolution of the Chairperson and Members of the Miami Beach Redevelopment Agency adopting the First
Amendment to the FY 201 0/11 Operating Budgets for the City Center Redevelopment Area, the Anchor Shops and
Parking Garage and adopting the Budget for the Pennsylvania Avenue Shops and Garage for FY 2010/11.
Key Intended Outcome Supported:
Improve the City's overall financial health and maintain overall bond rating
~upporting Data (Surveys, Environmental Scan, etc.):
One of the City's Key Intended Outcomes is to ensure well designed and well maintained capital projects and
infrastructure. In keeping with this goal, approximately 50 percent of actual expenditures in FY 2010/11 were allocated
towards capital expenditures including new capital projects and renewal, maintenance and replacement of existing RDA
capital infrastructure.
Issue:
Should the RDA Board adopt the proposed first amendment to the FY 2010/11 Operating Budgets for the City Center
Redevelopment Area, the Anchor Shops and Parking Garage, as well as adopt the Budget for the Pennsylvania Avenue
Shops and Garage for FY 201 0/11?
Item Summary/Recommendation:
The year-end budget to preliminary actual comparisons for the RDA reflect that there is an operating budget surplus of
$669,452 (1.8%) in the RDA, overall. However, because the RDA budget was adopted at a category level, a budget
amendment is required to address certain expenditure categories that are over budget. Similarly, garage revenues at the
Anchor Garage in FY 2010/11 came in approximately $709,000 greater than budget, which is more than sufficient to
offset the resulting $78,837 increase in revenue-sharing obligations with Loews, to cover lower than expected retail
revenues (due to the loss of a tenant earlier in the year) and unanticipated but necessary renewal and replacement costs
totaling $96,274 (e.g. HVAC replacement for three retail tenants, elevator repairs). The Pennsylvania Avenue Garage
opened during Fiscal Year 2010/11 and revenues and expenses for the facility were not adopted as part of the FY
2010/11 budget. The parking garage generated $478,583 in revenues in FY 2010/11, which more than adequately covers
the $394,068 in related operating expenses for the facility.
In order to address instances where actual expenditures for budgeted categories exceeded the adopted budget for the
reasons described in the related commission memorandum, the Administration recommends adopting a First
Amendment to the FY 2010/11 Operating Budget for the City Center Redevelopment Area and the Anchor Shops and
Parking Garage, and retroactively adopting the Budget for the Pennsylvania Avenue Shops and Garage for FY 2010/11.
Advisory Board Recommendation: I N.A.
Financial Information:
Source of Amount
Funds: 1
I I 2
OBPI
City Clerk's Office Legislative Tracking_:
Kent Bonde, Laura Aker and Kathie Brooks
Si n-Offs:
KOB
RDA
Coordinator
T:\AGENDA\2012\1-12-12\Budget
MIAMI BEACH 453
Account
AGENDA ITEM __.:../_,_A.:.__ __
DATE J-11-l "2-
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miomi Beach, Florida 33139, www.miamibeachfl.gov
REDEVELOPMENT AGENCY MEMORANDUM
TO: Chairperson and Members of the Miami Beach Redevelopment Agency
FROM: Jorge M. Gonzalez, Executive Director
DATE: January 11, 2012
SUBJECT: A RESOLUTION OF THE CHAIRPERSON AND MEMBERS OF THE MIAMI BEACH
REDEVELOPMENT AGENCY ADOPTING AND APPROPRIATING THE FIRST
AMENDMENT TO THE OPERATING BUDGET FOR THE CITY CENTER
REDEVELOPMENT AREA AND THE ANCHOR SHOPS AND PARKING GARAGE FOR
ITEMS THAT ARE OVER-BUDGET; AND, RETROACTIVELY ADOPTING AND
APPROPRIATING THE BUDGET FOR THE PENNSYLVANIA AVENUE SHOPS AND
PARKING GARAGE FOR FISCAL YEAR 2010/11.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
ANALYSIS
The year-end budget to preliminary actual comparisons for the RDA are presented in Exhibit A
Highlights are provided below. These comparisons show that there is an operating budget surplus of
$669,452 (1.8%) in the RDA, overall. However, because the RDA budget was adopted at a category
level, a budget amendment is required to address certain expenditure categories that are over budget.
In addition, it is recommended that a budget of $394,068 is retroactively adopted to cover operating
expenses at the Pennsylvania garage, which opened during fiscal year 2010/11.
Operating Budget-Revenues .
Overall, revenues in the RDA are $518,956 over budget. This is primarily due to increased contributions
from the Resort Tax fund, which is based on 50% of the 1% Resort Tax revenues collected.
Contributions from the Children's Trust are also above budget, although this is directly offset by the
remittance of the ~ mill tax levy back to the Children's Trust. Additionally, the "other
income/adjustments" line item reflects the inclusion of rent proceeds from the Miami City Ballet; these
revenues are in turn used to offset capital maintenance costs related to the facility.
The overall increase in revenues is partially offset by continued declines in interest earnings and
increased adjustments to the City and County tax increment from 2008.
Operating Budget· Expenditures
The total admin/operating expenditures are estimated at $150,496 below approved budget. However,
management fees (including salaries and benefits) are slightly above budget due to the final actual
salary costs of staff that provides administrative support to the RDA, as well as professional (legal) fees
454
January 11, 2012
Redevelopment Agency Memorandum
First Amendment to the FY 2010111 Operating Budget for City Center
Page 2 of2
incurred in connection with unanticipated settlement-related costs on prior-year RDA projects. Debt
service costs were also above budget; this amount is the difference between the initial transfer to the
RDA debt service fund and the actual amount that is required to be paid.
Anchor Shops and Parking Garage
Garage revenues at the Anchor Garage in FY 2010/11 came in approximately $709,000 greater than
budgeted. This is more than sufficient to offset the resulting $78,837 increase in revenue-sharing
obligations to the Loews. Retail revenues only came in slightly below forecast, despite the loss of a
tenant earlier in the year. However, the additional overall revenue is more than sufficient to cover
unanticipated and necessary renewal and replacement costs totaling $96,27 4. These generally
included the replacement of three of the tenant's HVAC systems and elevator repairs.
Pennsylvania Avenue Shops and Garage
The Pennsylvania Avenue Garage and shops opened during fiscal year 2010/11. Revenues and
expenses for the facility were not adopted as part of the FY 2010/11 Budget. During fiscal year
2010/11, the parking garage generated $478,583 in revenues and incurred $394,068 in related
operating expenses for the facility.
In consideration of the fact that the Pennsylvania Avenue Shops and Garage was built by the RDA on
City-owned property, the operation of the facility has been structured in the form of a ground lease
between the City and the RDA, providing terms for both the garage and retail operations. Expenditures
for the garage include ground lease rent payments, an administrative fee (consistent with that of the
Anchor Garage) and the Parking Department's operational fee.
CONCLUSION
In order to address the existing and future obligations in the Redevelopment Area, it is recommended
that the Redevelopment Agency adopt the attached Resolution, which amends the operating budgets
for the City Center Redevelopment Area, and the Anchor Shops and Parking Garage; and the adopts
the budget for the Pennsylvania Avenue Shops and Garage for FY 2010/11.
JMG/HF/KB/lA/KOB
Attachment
T:/Agenda/2012/1-11-12/RDA First Amendment 201 0_11 Memo.doc
455
Exhibit A.
Miami Beach Redevelopment Agency
City Center Redevelopment Area
Adopted FY 201 0/11 Adopted Operating Budget to Actual
FY 08/09 FY09/10 FY1DI11
Actual ~ 8Ud9;!t
Revenues and Other Sources of Income
Tax Increment~ City Millage 6.2155 $18,345,335 $16,946,393 $18,377,816
Proj Adjustment to City Increment for FY 2008 Tax Roll (2) (1,111,989) (1,178,873) (1,200,000)
Tax Increment~ County Millage 5.4275 15,808,032 14,496,500 16,047,879
Proj Adjustment to County Increment for FY 2008 Tax Roll (3) {961,565) (954,605) (1 ,000,000)
50% Contribution from Resort Tax 3,908,668 3,460,000 3,578,067
'1/2 Mill Children's Trust Contribution (4) 1,366,290 1,498,222 1,225,249
Interest Income 58,626 365,057 200,000
Fund Balance Reallocation: (Non-TIF) 0 0 0
Other Income/Adjustments: 1,344 0 0
TOTAL REVENUES $37,412,741 ~ $37,229,011
Admln/Operating Expenses
Management fee (salaries & benefits) $464,775 $489,584 $988,563
Advertising & promotion 0 1,000 0
Postage, printing & mailing 1,420 3,500 4,123
Office supplies & equipment 2,941 3,000 2,900
Meetings & oonferences 1,799 4,000 1,351
Dues & subscriptions 0 1,000 1,260
Audit fees 0 8,500 9,000
Professional & related fees 57,157 55,000 47,000
Miscellaneous expenses 4,223 _____1MQQ_ 5,000
Total AdminiOperating Expenses $532,315 $575,564 $1,059,197
Project Expenses
Community Policing $2,693,942 $2,871,494 $3,052,215
Capital Projects Maintenance (5) 3,456,896 3,050,775 3,332,673
NWS ProjecVLincoln Park Complex Contingency 0 3,060,189 0
NWS Project-Grant-in-Aid 0 0 15,000,000
Transfer to Capital Projects (6} 20 319,813 13,170,050 136,758
Total Project Expenses $26,470,651 $22,152,508 $21,521,646
Reserve and Debt Service Obligations
Debt Service Cost-2005 + Parity Bonds $8,376,443 $8,393,267 $8,393,254
Current Debt Service-Lincoln Rd Project (7) 1,205,288 1,086,961 $1,094,176
Current Debt Service-Bass Museum (8) 506,108 506,531 505,859
Reserve for County Admin Fee (9} 222,697 203,128 225,718
Reserve for CMB Contribution (1 0) 258,500 236,513 257,667
Reserve for Children's Trust Contribution (11) 1,366,290 1,498,222 1,225,249
Repayment-Prior Yr Fund Balance 0 0 2,946 246
Total Reserve and Debt Service Obligations $11,935,326 $11,924,622 $14,648,168
TOTAL EXPENSES AND OBLIGATIONS $38,938,292 $34,652,694 $37,229,011
REVENUES • EXPENSES ($1,525,551) ($0) $0
Note #1 Based on Preliminary Tax Increment Adjustment worksheet received from MDC on 6/30/10
Note #2 Adjustment for final FY 08/09 Tax Roll -Estimate based on pric
Note #3 Adjustment for final FY 08/09 Tax Roll-Estimate based on pric
Note #4 1/2 Mill Children's Trust pmt to RDA per lnterlocal
Note #5 Separate detail for capital maintenance items from PW
Note #6 Reflects appropriations for CIP & PW projects
Note #7 Payment of Lincoln Road current debt service on Sunshine Stat
Note #8 Payment of Bass Museum current debt service on Gulf Breeze
Note #9 County admin fee @ 1.5% of County's increment revenue
Note #10 CMB TIF Contribution@ 1.5% of City's increment revenue
Note #11 1/2 mill Children's Trust Contribution
FY10/11
Actual
$18,377,816
(1,475,726)
16,047,879
(1,262,384)
4,492,075
1,474,830
9,291
0
84,186
$37,747,967
$989,313
0
2,658
2,195
12
788
5,388
70,903
1,388
$1,072,844
$2,746,495
3,127,883
0
15,000,000
136,758
$21,011,136
$8,498,087
$1,094,176
505,859
221,782
253,531
1,474,655
2,946,246
$14,994,538
$37,078,515
$669,452
Budget
Variance
From FY 10111
Adoeted
$0
($275,726)
$0
($262,384)
$914,008
$249,581
($190,709)
$0
$84,186
$518,956
$750
$0
($1,265)
($705)
($1,339)
($472)
($3,613)
$23,903
($3,612)
$13,647
($305,720)
($204,790)
$0
$0
$0
($510,510)
$104,833
$0
$0
($3,936)
($4,136)
$249,606
$0
$346,368
($150,496)
$669,452
Adopted FY 2010/11 Anchor Shops and Parking Garage (16th Street Parking Garage) Operating Budget
Budget
FY 08/09 FY 09110 FY10/11 FY10/11 Variance
From FY 10/11
Revenues: Actual ~ Budget Actual Adoeted
Parking Operations $2,585,000 $2,632,000 $2,388,000 $3,077,007 $709,007
Retail Leasing 683,779 696,489 714,150 704,365 ($9,765)
Interest Pooled Cash 46,100 ~ 39,216 23,998 ($15,218)
TOTAL REVENUES $3,314,879 $3,374,589 $3,121,388 $3,805,370 $684,004
Operating Expenses:
Parking Operations $1,700,768 $1,802,864 $1,704,823 $1,313,809 ($391,014)
Garage Use Fee (To Loews) (1) 342,000 355,208 281,288 360,125 $78,837
Retail Leasing Management Fee 55,000 60,000 95,433 76,917 ($18,516)
Management Fee (Garage Ops) 0 158,129 189,074 189,074 $0
Renewal and Replacement Anchor Shops 0 0 0 96,274 $96,274
Reserve Future Capital-Parking Operations 563,832 375,922 219,415 0 ($219,415)
Reserve Future Capital-Retail Operations 653,279 ~ 631,333 0 ($631,333)
TOTAL EXPENSES $3,314,879 $3,374,589 $3,121,366 $2,036,199 ($1,085,167)
NET $0 $0 $0 $1,769,171 $1,769,171
(1)-Based on 28% of annual gross parking revenuues in excess of $1,390,000. (Includes contingency amount)
FY 2010/11 Pennsylvania Ave. Shops and Parking Garage Operating Budget
Budget
FY 08109 FY09/10 FY1DI11 FY10/11 Variance
From FY 10/11
Revenues: Actual ~ Budget Actual AdoE:ted
Parking Operations so $0 $0 $478 583 $478,583
TOTAL REVENUES $0 ---$-0 $0 $478,583 $478,583
Operating Expenses:
Parking Operations $0 $0 $0 $300,727 $300,727
Parking Base Fee so $0 $0 $30,073 $30,073
Garage Ground Lease $0 $0 $0 $23,552 $23,552
Garage Management Fee $0 $0 so $39,716 $39,716
TOTAL EXPENSES $0 ---$0-$0 $394,068 $394,068
NET $0 $0 $0 $84,515 $84,515
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RESOLUTION TO BE SUBMITTED
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