R7D-Adopt FY 2012-13 Budgets For Special Revenue FundsCOMMISSION ITEM SUMMARY
A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting the Fiscal Year (FY)
2012/13 budgets for Special Revenue funds for Resort Tax; ih Street Garage Operations; City's Share of the
Shortfall Contribution Requirements for the 5th and Alton Parking Garage Operations; Art in Public Places (AiPP);
Tourism and Hospitality Scholarship Program; Green/Sustainability Fund, Waste Hauler additional Services and
Public Benefit Contribution F Ed Fun ' t Camera Fun nd.
Ke Outcome Su orted:
Ensure expenditure trends are sustainable over the long term; Improve the City's overall financial Health
· tin ; Increase Communit Satisfaction with Cit Services
Supporting Data (Surveys, Environmental Scan, Based on the 2009 community survey, quality of life
in the City is rated highly, the City is seen as an 'excellent' or 'good' place to live, work, play or visit, and over %'s of
residents would recommend it to others as a place to live. Impressively, 31 of the residential tracking questions from
2007 experienced increases in each ofthe areas measured by an overall average of approximately 7.0%; and 28 of
32 business tracking questions experienced increases measured by an overall average of approximately 8.8%.
Relevant findings were: arts and culture was one of services identified that the city should strive not to reduce; and
availabilit ublic arkin was one of the services identified as ke drivers of overall satisfaction levels.
The Resort Tax Fund FY 2012/13 budget includes funding for administrative expenses, allocation to General Fund for
tourist related services, contributions to the GMCVB AND VCA, special events, holiday decorations, tourism related
economic enhancements, marketing etc. The ih St. Garage Fund FY2012/13 budget includes funding for the
operating and debt service expenses of the ih St. Garage. The 5th and Alton Fund FY2012/13 budget includes
funding for the operating expenses of the 5th and Alton Garage. The Art in Public Places (Aipp) Fund FY2012/13
budget includes funding for the administrative expenses, AiPP projects under $25k and reserve for AiPP projects.
The Tourism and Hospitality Scholarship Program Fund FY2012/13 budget includes funding for scholarships for
Miami Beach residents or graduates of Miami Beach Senior High School in the food & hospitality industry. The
Green/Sustainab!lity Fund FY2012/13 budget includes funding for the operating budget for a citywide multi-family
residence and commercial establishment recycllng program, including a media, education and outreach recycling
campaign, as well as the LEED project incentive. The Waste Hauler Additional Services & Public Benefit Fund
FY2012/13 budget includes funding for sanitation related services. The Education Compact Fund FY2012/13 budget
includes funding for the IB program & teacher training. The Red Light Camera Fund FY2012/13 budget includes
funding for red light camera related operating expenses. The E-911 Fund FY2012/13 budget includes funding forE-
911 related o ernt!n ex enses.
Source of
Funds:
Assistant City
225
Account
erations
of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower and Members of the City ~mission
Kathie G. Brooks, Interim City Manager/c/2 A ...
September 27, 2012
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2012/13 BUDGETS
FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET
PARKING GARAGE OPERATIONS; THE 5th AND ALTON PARKING GARAGE
OPERATIONS; ART IN PUBLIC PLACES (AiPP), TOURISM AND
HOSPITALITY SCHOLARSHIP PROGRAM, GREEN/SUSTAINABILITY
FUNDS, WASTE HAULER ADDITIONAL SERVICES AND PUBLIC BENFIT
CONTRIBUTION FUNDS, EDUCATION COMPACT FUNDS, RED LIGHT
CAMERA FUNDS, AND EMERGENCY 911 FUNDS ..
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
ANALYSIS
The City currently offers certain programs and activities not supported through the general
operating budget, but by outside agency grants and self-supporting user fee programs. Funding
from these sources will be utilized as follows:
Resort Tax-$54,254,000
This fund operates for the collection of the special tax levied citywide on food, beverage and
room rents used to support tourism related activities. This function, which operates under the
direction of the Finance Department and the Office of Internal Audit, is responsible for ensuring
that hotels, restaurants, bars and other establishments which serve food and beverages for
consumption on its premises, comply with Section 5.03 of the City Charter, as amended, as it
related to the reporting, and collection of resort taxes to the City.
An allocation for "operations" provides for all collection and audit expenses associated with
administering the Resort Tax function and are charged directly to this Special Revenue Fund.
Included in this allocation is funding for seven (7) FTE positions and associated operating
support totaling approximately $1 ,353, 195.
The allocation to the General Fund for Fiscal Year 2012/13 of approximately $30.97 million pays
for tourist related services and costs provided or managed by General Fund Departments.
Based on an outside consultant study conducted in 2010 using FY 2007/08 actual costs, it is
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FY 2012/13 Special Revenue Fund Budgets
September 27, 2012
Page 2 of 6
estimated that there are approximately $41.7 million in eligible resort tax expenditures in the
General Fund, net of South Pointe tourism eligible costs. This funding supports public safety
programs including our ocean rescue, police services on Lincoln Road, Ocean Drive/Lummus
Park, Collins Avenue, Washington Avenue, ATV officers, Boardwalk security, special traffic
enforcement and special event staffing; and fire rescue units in tourist and visitor areas. The
funding also supports code compliance services to respond to evening entertainment areas and
provides for a portion of the operational costs of the Tourism and Cultural Development.
The Fiscal Year 2012/13 Resort Tax budget also includes an allocation to the Greater Miami
Convention and Visitors Bureau (GMCVB) of approximately $5.3 million, $1.2 million for debt
service, $2.1 million to the Miami Beach Visitor and Convention Center (VCA), $248,000 for a
local Miami Beach marketing campaign, including $148,000 for the Washington Avenue tourism
enhancement initiative, to be augmented with funds from the GMCVB, the VCA, and the
Cultural Arts Council (CAC); and including $75,000 for a grant to the FIU-Wolfsonian over two
years to provide a master plan for the Museum site that will be used to access $10 million in
Miami-Dade County General Obligation Bond funding for expanding and revitalizing their
facilities on Washington Avenue and Lennox. Further, the FY2012/13 Resort Tax Budget
maintains funding for tourism-related economic development activities in North Beach that were
initiated in FY 2011/12; provides $165,000 for holiday decoration (an enhancement of $40,000
from the FY2011/12 budget); funds $100,000 for the sponsorship fee to help offset marketing
and advertising expenses associated with the Ms. USA or equivalent event; funds $2.9M for
enhancing the outcomes from major events such as Memorial Day, including management,
Goodwill Ambassadors, and $122,130 in Administrative Fees to the General Fund for
reimbursement of support provided by General Fund administrative departments.
The proceeds of the additional one percent (1 percent) tax are used as follows. Fifty percent of
the amount earned is committed to the payment of a portion of the debt service on the Miami
Beach Redevelopment Agency -City Center/Historic Convention Village Bonds. These bonds
were used for the development, improvement and construction of certain public areas including
a portion of the Cultural Center facilities located within the City Center District.
The remaining fifty percent of the 1 percent tax budget also reflects the approved allocation
method for the Quality of Life funding, which includes the 25 percent for the arts, and to fund
Quality of Life capital projects in North Beach (25 percent), Middle Beach (25 percent), and
South Beach (25 percent), as well as various art and cultural programs or the maintenance and
enhancement of Miami Beach's tourist related areas. Please see Attachment "A" for the
revenue and expenditure detail budget.
Revenues
2 percent
1 percent
Other Revenues
Total
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$44,132,000
9,368,000
754,000
$54,254,000
FY 2012/13 Special Revenue Fund Budgets
September 27, 2012
Page 3 of 6
Expenses
Administrative Operating including Administrative Fees
Allocation to General Fund for Tourist Related Services
Contribution to GMCVB
Contribution to VCA
Marketing
Special Events/ Goodwill Ambassadors
Holiday Decorations
Contingency
Tourism Related Economic Enhancements (Washington
Ave. & North Beach)
Transfers to FlU Wolfsonian and Ms. USA or Equivalent
Event
Quality of Life Capital Projects & Cultural Programs
Debt Service
Total
th Street Garage -$2,200,000
$ 1,353,195
30,965,000
5,309,000
2,118,361
100,000
2,846,884
165,000
482,241
156,000
175,000
4,684,000
5,899,319
$54,254,000
The Parking Department is responsible for the collection of the revenues in this garage which
will be used to pay associated operating expenses and debt service. The operating budget is
required to cover operating expenses, debt service, and reserve for replacement.
Revenues
Garage Operations
Retained Earnings
Total
Expenses
Operating Expenses
Debt Service
Reserve -Renewal & Replacement
Total
5th and Alton Garage -$162,500
$2,170,475
29,525
$2,200,000
$1,237,298
784,401
178,301
$2,200,000
The 5th and Alton Garage a.k.a. "Potamkin Garage" is a joint venture development between the
City of Miami Beach (City) and Potamkin/Berkowitz (Developer) where a condominium has been
established wherein the City and Developer contributes 46 percent and 54 percent, respectively,
to the operating expenses of the parking garage and also shares profits and losses consistent
with the aforementioned distribution. The Parking Department is responsible for the collection
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FY 2012/13 Special Revenue Fund Budgets
September 27, 2012
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of the revenues in this garage. In the event of any shortfall, the City's portion shall be made up
by funds from excess revenues in the Parking Fund.
Revenues
Garage Operations
Transfer from FY 2012/13 Parking Operations Budget
Total
Expenses
Operating expenses
Art in Public Places (AiPP)-$213,000
$457,400
162.500
$619,900
$619,900
The Art in Public Places (AiPP) Ordinance (Ordinance No. 95-2985) was adopted in 1995. The
ordinance was created to "enhance the aesthetic environment of the City of Miami Beach by
including works of art on public property within the City and in City construction projects." The
AiPP Ordinance was amended in May 2004 to clarify the definition of terms for eligible
construction projects for funding as well as the policy and procedures for appropriations. The
AiPP Guidelines were also adopted by the City Commission at that time.
The AiPP program is funded by 1 % percent of all hard costs of City projects, including new
construction, additions, and costs for construction of joint private/public projects. The fund is
used for the commission or acquisition of works of art; conservation and maintenance of works
of art; research and evaluation of works of art; printing and distribution of related materials; and
administration. The FY 2012/13 AiPP budget of $213,000 is funded from capital budget
appropriations in the amount of $213,000.
Revenues
Prior Capital Budget Appropriations
Expenses
Administration
AiPP Projects Under $25K
Reserve for AiPP Projects
Total
Tourism and Hospitality Scholarship Program-$113,000
$213,000
$148,000
20,000
45,000
$213,000
The City of Miami Beach Tourism and Hospitality Scholarship Program began in 2003 in
partnership with the Greater Miami Convention and Visitors Bureau (GMCVB), SMG and
Centerplate. Contributions to the City's scholarship program were contractually required of the
three (3) entities. During the GMCVB's contract renewal in 2004, the requirement was removed
from their contract. In September of 2008, the City replaced SMG with Global Spectrum.
Global Spectrum and Centerplate currently partner with the City on this program and contribute
$12,500 and $20,000 respectively annually. There is also a carry forward balance of $80,500
available.
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FY 2012/13 Special Revenue Fund Budgets
September 27, 2012
Page 5 of 6
The scholarship program is geared toward Miami Beach residents or graduates of Miami Beach
Senior High School who are enrolled or are planning to enroll in post-secondary education and
have expressed interest in the food and hospitality industry (as demonstrated by coursework
and extracurricular activities). Since the inception of the program, $214,500 has been awarded
to more than 43 different Miami Beach students.
Revenue
Carry forward balance
FY 2012/13 Contribution
Total
Expenses
Reserve for FY 2012/13 & Future Scholarships
Green/ Sustainability Funds $195,000
$80,500
$32.500
$113,000
$113,000
The Environmental Sustainability fund provides funding for the operating budget for a
citywide multi-family residence and commercial establishment recycling program,
including an initiation of a media, education and outreach recycling campaign. In
addition $50,000 is recommended for LEED project incentive funding, if needed.
Revenues
Carry forward balance $195,000
Expenses
Recycling/ LEED program expenses $195,000
Waste Hauler Additional Services & Public Benefit Funds $64,000
Waste Hauler Additional Services and Public Benefit Contribution funds for sanitation
related services including monthly "Wasteful Weekends" bulk drop off site expenses and
twice yearly hazardous waste drop-off site expenses
Revenues
Carry forward balance
Expenses
Sanitation-related services
Education Compact Funds $101,000
$64,000
$64,000
The Education Compact fund provides funding for teacher development programs and
fees to the International Baccalaureate Organization.
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FY 2012/13 Special Revenue Fund Budgets
September 27, 2012
Page 6 of 6
Revenues
Carry forward balance
Expenses
IB Program & Training
Red Light Cameras $314,000
$101,000
$101,000
The City's Red Light Camera Photo Enforcement Program went into effect on April 15,
2010. Overall data shows that driver behavior is being modified, as the number of
violations per intersection has declined since the inception of the program. Average
number of violations issued per day is now 1.63. In comparison, a total of 7,572 red light
camera violations were issued in 2010, with an average of 2.94 per camera per day. In
2011, 7030 violations were issued with an average of 1.94 violations per day.
As a consequence of positive driver behavior, as well as changes in State law which
impacted the amount retained by the City, revenues net of expenditures have declined,
and no transfers to the General Fund are anticipated in FY 2012/13.
Revenues
Violation Revenue
Expenses
Operating Expenses
Emergency 911 Funds $651,000
$314,000
$314,000
The Emergency 911 funds were previously budgeted in the Citywide (General Fund)
accounts. Beginning with the FY 2012/13 budget, the administration has made a policy
decision to create a separate fund for the E-911 budget, and remove it from the Citywide
Accounts. This will allow for more discrete reconciliation of revenues and expenses.
Revenues
Landline E-911 Revenue
Landline E-911 Revenue
Total
Expenses
E-911 Operating Expenses
CONCLUSION
$302,000
349,000
$651,000
$651,000
The attached Resolution adopting funding for FY 2012/13 budgets from these sources is vital to
the continuation of these projects and activities provided by the City.
KGB/TOS/PAR
231
RESOLUTION NO.------
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2012/13 BUDGETS
FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE th STREET
PARKING GARAGE OPERATIONS;THE 5th AND ALTON PARKING GARAGE
OPERATIONS; ART IN PUBLIC PLACES (AiPP), TOURISM AND
HOSPITALITY SCHOLARSHIP PROGRAM, GREEN/ SUSTAINABILITY
FUNDS, WASTE HAULER ADDITIONAL SERVICES AND PUBLIC BENEFIT
FUNDS, EDUCATION COMPACT FUNDS, RED LIGHT CAMERA FUNDS,
AND EMERGENCY 911 FUNDS.
WHEREAS, expenses related to tourism, monitoring and auditing payments, and receipt
of Resort Taxes to the City, will be paid by the Resort Tax Fund; and
WHEREAS, the budget for the public parking garage located at 71h Street and Collins
Avenue {the th Street Parking Garage) provides funding for operating expenses, debt service,
and a reserve for renewal and replacement; and
WHEREAS, the budget for the public parking garage operations located at 5TH and Alton
provides funding for the City's share of the shortfall contribution requirements; and
WHEREAS, the Art in Public Places (AiPP) fund is used for the commission or
acquisition of works of art, conservation and maintenance of works of art, research and
evaluation of works of art, printing and distribution of related materials, and administration; and
WHEREAS, the Tourism and Hospitality Scholarship Program funded by contributions
from Global Spectrum and Centerplate and awarded to Miami Beach students enrolled or
planning to enroll in post-secondary education and have expressed interest in the food and
hospitality industry; and
WHEREAS, the Green/Sustainability fund provides funding for the operating budget for
a Citywide Multi-family Residence and Commercial Establishment Recycling Program, including
an initiation of a media, education and outreach recycling campaign; and
WHEREAS, the Waste Hauler Additional Services and Public Benefit Contribution funds
for sanitation-related services including monthly "Wasteful Weekends" bulk drop off site
expenses and twice yearly hazardous waste drop-off site expenses; and
WHEREAS, the Education Compact fund provides funding for teacher development
programs and fees to the International Baccalaureate Organization; and
WHEREAS, the Red Light Camera fund provides funding for red light camera-related
operating expenses; and
WHEREAS, the Emergency 911 fund provides funding for E-911 related operating
expenses; and
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby adopts and appropriates the FY 2012/13 budgets for Special Revenue
Funds as listed below:
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SPECIAL REVENUE APPROPRIATIONS
Resort Tax
7th Street Garage Operations
5th & Alton Garage-City's Share of Shortfall
Art in Public Places
Tourism and Hospitality Scholarship Program
Green/Sustainability Fund
Waste Hauler Additional Services & Public Benefit Fund
Education Compact Fund
Red Light Camera Fund
Emergency 911 Fund
TOTAL
FY 2012/13
$54,254,000
2,200,000
619,900
213,000
113,000
195,000
64,000
101,000
314,000
651,000
$58,724,900
PASSED and ADOPTED this 27th day of September, 2012.
ATTEST BY:
CITY CLERK
233
MAYOR
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
q-c}J-12-
0ate '
ONALLY
234