R7D-Adopt FY 2013-14 Final Budgets For Special Revenue FundsCOMMISSION ITEM SUMMARY
Condensed Title:
A resolution adopting the Fiscal Year (FY) 2013/14 final budgets for Special Revenue funds for Resort Tax; 7"' 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 Fund; Education Compact Fund; Red Light Camera
Fund; and Emergency 911 Fund.
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term; Improve the City's overall financial Health
and maintain overall bond ratinQ; Increase Community Satisfaction with City Services
Supporting Data (Surveys, Environmental Scan, etc.): 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 of the 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
availability of public parking was one of the services identified as key drivers of overall satisfaction levels.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2013/14 final budgets for
Special Revenue funds?
Item Summary/Recommendation:
The Resort Tax Fund FY 2013/14 final 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 ?'h St. Garage Fund FY 2013/14 final budget includes funding
for the operating and debt service expenses of the 7'h St. Garage. The 51h and Alton Fund FY 2013/14 final budget
includes funding for the operating expenses of the 5th and Alton Garage. The Art in Public Places (Aipp) Fund FY
2013/14 final budget includes funding for the administrative expenses, AiPP projects under $25k and reserve for AiPP
projects. The Tourism and Hospitality Scholarship Program Fund FY 2013/14 final budget includes funding for
scholarships for Miami Beach residents or graduates of Miami Beach Senior High School in the food & hospitality
industry. The Green/Sustainability Fund FY 2013/14 final budget includes funding for the operating budget for a
citywide multi-family residence and commercial establishment recycling program, including a media, education and
outreach recycling campaign, as well as the LEED project incentive. The Waste Hauler Additional Services & Public
Benefit Fund FY 2013/14 final budget includes funding for sanitation related services. The Education Compact Fund
FY 2013/14 final budget includes funding for the IB program & teacher training. The Red Light Camera Fund FY
2013/14 final budget includes funding for red light camera related operating expenses. The E-911 Fund FY 2013/14
final budQet includes fundinQ for E-911 related operatinQ expenses.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: 1 $59,507,000 Resort Tax
2 2,161,000 7&1 Street Garage Operations
OBPI 3 602,000 5th & Alton Garage Operations
4 729,000 Art in Public Places
5 142,000 Tourism and Hospitality Scholarship Program foe 6 225,000 Green/ Sustainability Fund
7 Waste Hauler Additional Services & Public
77,000 Benefit Contribution Fund
8 111,000 Education Compact Fund
9 420,000 Red Light Camera Fund
10 489,000 Emergency 911 Fund
Total $64,463,000 I
City Clerk's Office Legislative Tracking:
Si n-Offs:
t City Manager
MIAMI BEACH 187
AGENDA ITEM B 7 D
DATE Cf-&J-/3
(9 MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miomi Beoch, Florida 33139, www.miomibeochfl.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower and embers~· Commission
Jimmy L. Morales, City Manage
September 30, 2013
A RESOLUTION OF THE MAYO AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2013/14 FINAL
BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 71
h
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-$59,507,000
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 $1,141,000.
188
FY 2013/14 Special Revenue Fund Final Budgets
September 30, 2013
Page 2 of 6
The allocation to the General Fund for Fiscal Year 2013/14 of approximately $32.97 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
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 2013/14 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, $2.3 million to the Miami Beach Visitor and Convention Center (VCA), $173,000 for a
local Miami Beach marketing campaign 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 2013/14 Resort Tax Budget
maintains funding for tourism-related economic development activities in North Beach that were
initiated in FY 2011/12; provides $230,000 for holiday decoration (an enhancement of $65,000
from the FY2012/13 budget}; funds $100,000 for the sponsorship fee to help offset marketing
and advertising expenses associated with the Ms. USA or equivalent event; funds $2.8 million
for enhancing the outcomes from major events such as Memorial Day, including management,
Goodwill Ambassadors, and $165,000 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
189
$47,681,000
11,097,000
729,000
$59,507,000
FY 2013/14 Special Revenue Fund Tentative Budgets
September 11, 2013
Page 3 of6
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
Transfers to FlU Wolfsonian and Ms. USA or Equivalent
Event
Quality of Life Capital Projects & Cultural Programs
Debt Service
Total
7th Street Garage -$2,161,000
$1,326,000
32,965,000
5,366,000
2,289,000
173,000
2,839,000
230,000
1,836,000
175,000
5,548,500
6.759,500
$59,507,000
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 -$602,000
$2,161,000
Q
$2,161,000
$1,228,000
787,000
146,000
$2,161,000
The 51t1 and Alton Garage a.k.a. "Potamkin Garage" is a joint venture development between the
City of Miami Beach (City) and EDENS (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 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 2013/14 Parking Operations Budget
Total
Expenses
Operating expenses
190
$409,752
192.248
$602,000
$602,000
FY 2013/14 Special Revenue Fund Final Budgets
September 30, 2013
Page 4of6
Art in Public Places (AiPP) • $729,000
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 2013/14 AiPP budget of $729,000 is funded from capital budget
appropriations in the amount of $729,000.
Revenues
Capital Budget Appropriations
Expenses
Administration
AiPP Projects Under $25K
Reserve for AiPP Projects
Total
Tourism and Hospitality Scholarship Program -$142,000
$729,000
$151,000
53,000
525,000
$729,000
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
$15,000 and $20,000 respectively annually. There is also a carry forward balance of $107,000
available.
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, $219,550 has been awarded
to more than 44 different Miami Beach students.
Revenue
Carry forward balance
FY 2013/14 Contribution
Total
Expenses
Reserve for FY 2013/14 & Future Scholarships
191
$107,000
$35,000
$142,000
$142,000
FY 2013/14 Special Revenue Fund Final Budgets
September 30, 2013
Page 5 of6
Green I Sustainability Funds • $225,000
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.
Revenues
Carry forward balance $225,000
Expenses
Recycling/ LEED program expenses $225,000
Waste Hauler Additional Services & Public Benefit Funds-$77,000
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 • $111 ,000
$ 77,000
$77,000
The Education Compact fund provides funding for teacher development programs, City's
contribution for school agenda books, fees to the International Baccalaureate
Organization, and other expenses to fund community education compact events.
Revenues
Carry forward balance $ 111,000
Expenses
IB Program & Training $ 111,000
Red Light Cameras· $420,000
Since the City's Red Light Camera Photo Enforcement Program went into effect on April
15, 2010 crashes have decreased at the 9 intersections where the cameras have been
installed. Due to the previous revisions to State law regulating red light camera photo
enforcement, the number of Notice of Violations has been trending downward over the
last two (2} years. However, effective July 1, 2013, the most recent change in State law
regulating red light camera photo enforcement went into effect, and now requires a
192
FY 2013/14 Special Revenue Fund Final Budgets
September 30, 2013
Page 6 of6
complete stop before making a right turn. Since July 1, 2013, the City has experienced a
marked increase in the number of Notice of Violations.
Based on the changes in State law, municipalities with red light camera programs are
required to fund local hearing officers for drivers who get violation notices and want to
appeal them. The FY 2013/14 expenditure budget includes $49,000 for a Clerk position
and funding for a Special Master. These additional costs are offset by new hearing
appeal fee revenues.
Revenues
Violation Revenue
Expenses
Operating Expenses
Emergency 911 Funds -$489,000
$420,000
$420,000
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
Cell Phone E-911 Revenue
Total
Expenses
E-911 Operating Expenses
CONCLUSION
$248,000
241,000
$489,000
$489,000
The attached Resolution adopting funding for FY 2013/14 budgets from these sources is vital to
the continuation of these projects and activities provided by the City.
JLM: KGB/JW
@
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~ (Q ~ * •MIAMI HERALD I MiamiHerald.com NE THURSDAY, SEPTEMBER 19, 2013 I 13NE MIAMI BEACH CITY OF MIAMI BEACH NOTICE OF A SPECIAL CITY COMMISSION MEETING AND PUBLIC HEARINGS NOTICE IS HEREBY given that a Special Commission Mooting regarding the Second Public Hearings to consider the adoption of the Millage Rate and Budget for FY 2013/2014 will be held by the City Commission of the City of Miami Beach, Florida, on Monday, September 30, 2013, commencing at 5:00 p:m., in the Commission Chambers, 3rd Floor, City Hall, 1700 Conve11tion Center Drive, Miami Beach, Florida to consider the following: 5:01p.m. A Resolution Adopting: 1) The Final Ad Valorem Millage Of 5.8909 Mills For General Operating Purposes, Which Is Six And Eight-Tenth Percent (6.8%) More Than The "Rolled-Back" Rate Of 5.5158 Mills: And 2) The Debt Service Millage Rate Of 0.2529 Mills for Fiscal Year (FY) 2013/14. 5:01p.m. A Resolution Adopting Final Budgets For The General, G.O. Debt Service. RDA Ad Valorem Taxes, Enterprise, And Internal Service-Funds For Fiscal Year (FY) 2013/14. 5:02p.m. A Resolution Of The Board Of Directors Of The Normandy Shores Local Government Neighborhood Improvement District Adopting The Final Ad Valorem Millage Of 1.2687 Mills For Fiscal Year (FY) 2013/14 For The Normandy Shores Local Government District, Which Is Nineteen Percent (19.0%) More Than The "Rolled-Back" Rate 011.0664 Mill~. 5:02p.m. A Resolution Of The Board Of Directors 01 The Normandy Shores Local Government Neighborhood Improvement District Adopting The Final Operating Budget For Fiscal Year (FY) 2013114. 5:03p.m. A Resolution Adopting The Final Capital Improvement Plan For Fiscal Years (FY) 2013114-201711 BAnd Adopting The Final Capital Budget For FY 2013/14. 5:03p.m. A Resolution Adopting Fiscal Year (FY) 2013/14 Finat"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· Benefit Contribution Funds, Education Compact Funds, Red Ught Camera Funds, And Emergency 911 Funds. 5:03p.m. A Resolution Adopting The Final Budget Of $1,200,000 From Fiscal Year (FY) 2013/14 People's Transportation Plan (PTP) Funds And $87,000 From (FY) 2013/14 South Beach Concurrency Mitigation Funds, To Fund The Final Operating Budget For The South Beach Local In Miami Beach; And Further Adopting The Final Budget Of $301,000 From FY 2013/14 People's Transportation Plan Funds For Administrative And Technical Operating Expenditures, As Part Of The Five Percent (5%) Allowable For Administrative Assistance And Technical Assistance. · 5:03p.m. A Resolution Authorizing The Adoption Of The Miami Beach Cultural Arts Council's Fiscal Year (FY) 2013/14 Final Budget in The Amount Of $1,470,000. 5:03p.m. A Resolution Adopting The Rscal Year (FY) 2013/14 Police Special Revenue Account Final Budget In The Amount Of $75,000 For The Purchase Of Those Items Set Forth In Exhibit "A," And Such Account Funded By Unclaimed Evidence Currently Held In The Police Special Revenue Account. · .5:03p.m. , A Resolution Adopting The Police Confiscation Trust Fund Final Budget For Fiscal Year (FY) 2013(14 In The Amount Of $724,000, To Be Funded From Slate Confiscated Funds In The Amount Of $235,000 And Federal Justice Confiscated Funds In The Amount Of $469,000, For The Appropriation And Expenditure Of Those Items Set Forth In Exhibit "A," Which Shall Be Funded Through The Police Confiscation Trust. 5:03p.m. A Resolution Adopting The Fiscal Year (FY) 201312014 Police Training & School Resources Fund Final Budget In The Amount Of $3~.000. 5:03p.m. Resolution Adopting The Second Amendment To The General Fund, Enterprise, Internal Service Fund, And Special Revenue Fund Budgets For Fiscal Year (FY) 2012113. 5:03p.m. A Resolution Adopting And Appropriating The Fourth Amendment To The Police Confiscation Trust Budget For Fiscal Year 2012/2013 In The Amount Of $10,000, To Be Funded From The Proceeds 01 Stale Confiscated Funds, For The Appropriation And Expenditure Of Those Items Set Forth In Exhibit "A," Which Shall Be Funded Through The Pollee Confiscation Trust Fund. 5:04p.m. 1. Ordinance Amending Chapter 50 Of The City Of Miami Beach Code, Entitled "Fire Prevention And Protection," By Amending Section 50-4 Thereof, Entitled "Enforcement By Fire Inspectors; Notice Of Violation," To Add Citations And Implement New Fine Schedule Related To Fire Code Violations; By Amending Section 50-5 Thereof, Entitled "Annual Fire Prevention And Fire Safely Inspection Permit" To Include The Night Inspection Faa Previously Adopted Under Section 102.379 Of The City Code. · 2. Ordinance Amending Chapter 102 Of The Code Of The City Of Miami Beach, Entitled "Taxation, • By Deleting The Nightclub Fee Set Forth In Section 102.379, Entitled "Schedule Of Taxes, Effective October 1, 2j,J09", 5:04p.m. Ordinance Amending Chapter 50 Of The Code Of The City Of Miami Beac_h, Entitled "Fire Prevention And Protection," By Creating Section 50-6 Thereof, To Be Entitled "Fire Alarms, Regulations, Penalties, Enforcement" To Estab:;Jt; "'.· Requirements And Fines For False Fire Alarms. 5:04p.m. An Ordinance Amending Appendix A, Entitled "Fee Schedule" For Subsection (A) Of Section 11 0-16B, Entitled "Sanitary Sewer Service Charge," Of Chapter 110 Of The Miami Beach City Code, Entitled "Utilities," Article IV, Entitled "Fees. Charges, Rates And Billing Procedure"; Division 2 Thereof, Entitled "Rates, !'ees And Charges," To Increase The Sanitary Sewer Service Charge Imposed By The City. 5:04p.m. ~ Ordinance Amending Part I, Subpart B, Article IX. Related Special Acts, Of The Miami Beach City Code Entitled "Pension System For Disability And Retirement Of Members Of Police And Fire Departments"; Implementing Provisions Of The 2012-2015 Collective Bargaining Agreements Between Tile City And Fire Fighters Of Miami Beach.iAFF Local 1510, And Miami Beacl1 Fraternal Order Of Police, William Nichols Lodge No. 8; Amending Section 62 Entitled "Definitions"; Amending Section 63 Entitled "Source Of Monies For Fund; Con)putation Of Liability; Use And Investment Of Fund"; Amending Section 65 Entitled "Computation Of Creditable Service; Service Record"; Amending Section 66 Entitled "Service And Disability Benefits Generally"; Amending Section 67 Entitled "Cost Of Living Adjustment"; Amending Section 79 Entitled "Deferred Retirement Option Plan"; Amending Section 62 Entitled "Military Service"; Creating A New Section 88 Entitled "Benefits For Members Hired-On Or After September 30, 2013.
RESOLUTION TO BE SUBMITTED
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