R7E-Adopt Second Amendment To FY 2012-13 Special Revenue Fund BudgetsCOMMISSION ITEM SUMMARY
Condensed Title:
A RESOLUTION ADOPTING THE SECOND AMENDMENT TO THE FISCAL (FY) 2012/13 SPECIAL REVENUE
FUND BUDGETS
Key Intended Outcome Supported:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial health and maintain overall bond rating
Supporting Data (Surveys, Environmental Scan, etc.):
N/A
Item Summary/Recommendation:
The City of Miami Beach currently offers certain programs and activities not supported through the general
operating budget, but by outside agency grants and self-supporting user fee programs. These Special
Revenue Fund Budgets include:
• Resort Tax Fund;
• ih Street Garage Operations;
• 5th & Alton Garage Operations;
• Art in Public Places;
• 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
The budgets for the Special Revenue Fund budgets for Fiscal Year 2012/13 were approved on September
27, 2012, with the adoption of Resolution No. 2012-28018. The First Amendment was approved on April
17, 2013, with the adoption of Resolution No. 2013-28185.
Florida Statutes require that actual expenditures not exceed budget at the level at which the budget is
adopted, which for the Resort Tax Fund is at the fund level. Based on the third quarter analysis, the
Resort Fund budget is projected to overspend its appropriation due to higher than anticipated revenue and
needs to be amended.
Resort Tax Fund revenues are projected to be 12% higher than the adopted budget amount due to
enhanced economic conditions and an increase in tourism. Certain expenditures in the fund are based on
a percentage of resort tax collections including contributions to the VCA, debt service, and transfers to
North Beach, Middle Beach, and South Beach for capital projects and the transfers to the arts and cultural
programs. As a result, expenditures are projected to exceed budget, which is offset by higher than
budgeted Resort Tax revenues by $4.5 million. The required budget amendment necessary to offset the
projected increase in expenditures is $1,981,000.
Financial Information·
Source of
~ FY 2012/13
Financial Impact Summary:
MIAMI BEACH
Amount .
$1,981,000
918
Resort Tax Fund
Account
AGENDA ITEM ----'f{_l_E __
DATE f(J -fb-[3
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~ MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeochfl.gov
COMMISSION MEMORANDUM
I
TO: Mayor Matti Herrera Bower and Me bers of the <tity Commission
FROM: Jimmy L. Morales, City Manager I
DATE: October 16, 2013
SUBJECT: A RESOLUTION ADOPTING THE SECOND AMENDMENT TO THE FISCAL (FY)
2012/13 SPECIAL REVENUE FUN BUDGETS
ADMINISTRATION RECOMMENDATION
Adopt the resolution amending the FY 2012/13 Special Revenue Fund budgets.
SUMMARY
The City of Miami Beach currently offers certain programs and activities not supported through
the general operating budget, but by outside agency grants and self-supporting user fee
programs. These Special Revenue Fund Budgets include:
• Resort Tax Fund;
• 7th Street Garage Operations;
• 5th & Alton Garage Operations;
• Art in Public Places;
• 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
The budgets for the Special Revenue Fund budgets for Fiscal Year 2012/13 were approved on
September 27, 2012, with the adoption of Resolution No. 2012-28018. The First Amendment
was approved on April17, 2013, with the adoption of Resolution No. 2013-28185.
Florida Statutes require that actual expenditures not exceed budget at the level at which the
budget is adopted, which for the Resort Tax Fund is at the fund level. Based on the third
quarter analysis, the Resort Fund budget is projected to overspend its appropriation due to
higher than anticipated revenue and needs to be amended.
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Second Amendment to the FY 2012/13 Special Revenue Fund Budgets
Page 2
RESORT TAX FUND
The City's Resort Tax Fund is primarily supported by Resort Taxes collected pursuant to
Chapter 67-930 (Section 6) of the Laws of Florida, as amended, and Section 5.03 of the City of
Miami Beach Charter, as amended. This legislation authorizes the use of Resort Taxes for the
promotion of the tourist industry, which includes, but is not restricted to the following: Publicity,
advertising, news bureau, promotional events, convention bureau activities, capital
improvements and the maintenance of all physical assets in connection therewith; and for the
payment of the reasonable and necessary expenses of collecting, handling and processing of
said tax.
Typically, the City has considered the following services as ~services Related to the Promotion
of Tourism":
• Police Officers serving entertainment areas
• A portion of Fire Rescue services from Fire Stations 1 &2
• Ocean Rescue services
• Sidewalk pressure cleaning in South, Middle and North Beach visitor areas
• South Beach sanitation
• Enhanced Code Compliance/Enforcement provided to respond to evening entertainment
area violations and staffing of special events
• Other Code Compliance/Enforcement activities in tourism and visitor related
facilities/areas
• Tourism, Cultural and Economic Development Department and the Cultural Arts Council
• Museums and Theatres {Garden Center, Bass Museum, and Colony}
• Golf courses (net of revenues}
• Memorial Day and other special event costs
• Homeless services
• Visitor Center funding, Holiday Lights, Festival of the Arts, Jewish Museum, MDPL,
Orange Bowl, Monuments, etc.
These allowable uses have led to increased tourism related activities, such as special events,
Art Basel, and various concerts.
The 2 percent Resort Tax Fund operating revenues are projected to be in excess of budget by
approximately $4.5 million and, as a result, payments to the Visitor's Convention Authority
{VCA), which are based on a percent of revenues, are projected to exceed budget. In addition,
savings are projected in salaries due to staff turnover and the use of contingency is projected to
be below budget.
In addition to the uses listed above, 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 Bonds. The
remaining fifty percent is allocated equally among North Beach, Middle Beach and South Beach
for capital projects that enhance Miami Beach's tourist related areas and various arts and
cultural programs. The 1 percent Resort Tax Fund operating revenues are projected to be in
excess of budget by approximately $1.9 million and, as a result, the debt service and transfers
to North Beach, Middle Beach, and South Beach for capital projects and the transfers to the arts
and cultural programs are projected to exceed budget as represented below.
In total, the projected revenues are estimated to be in excess of budget by $6.5 million and
expenditures in excess of budget by approximately $2.0 million for the reasons described
above. This results in a net operating surplus of approximately $4.5 million.
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Second Amendment to the FY 2012/13 Spedal Revenue Fund Budgets
Page 3
CONCLUSION
Resort Tax Fund revenues are projected to be 12% higher than the adopted budget amount due
to enhanced economic conditions and an increase in tourism. Certain expenditures in the fund
are based on a percentage of resort tax collections including contributions to the VCA, debt
service, and transfers to North Beach, Middle Beach, and South Beach for capital projects and
the transfers to the arts and cultural programs. As a result, expenditures are projected to
exceed budget, which is offset by higher than budgeted Resort Tax revenues by $4.5 million.
The required budget amendment necessary to offset the projected increase in expenditures is
$1,981,000.
It should be noted that these projections are preliminary in nature due to the fact that the City's
financial records will not be closed until after the fiscal year is closed and external auditors
complete their review. Historically, this occurs in April, with the City's Comprehensive Annual
Financial Report (CAFR) For the Year Ended September 30, 2013, usually available in May and
the External Auditor's Report available in July.
JLM:~JW
921
18Nii I THURSDAY, OCTOBEIU 2013 ''" MiamiHerald.com I MIAMI HERALD
MIAMI BEACH
CITY OF MIAMI BEACH
NOTICE OF PUBLIC HEARINGS
NOTICE IS HEREBY given that a pubtic hearing will be held by the Mayor and City Commission of the City of Miami Beach, Florida,
in the Commission Chambers, 3rd Floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida, on WecD!sday, October 16,
2013 to consider the following:
10:20 a.m.
A Resolution Adopting The Second Amendment To The Special Revenue Fund Budgets For Fiscal Year (FV) 2012113.
(Due to The Miami Herald's deadline, If this ltam Is dented, tabled, or withdrawn at tha Septamber 30, 2013 Special
City Commission Maetlng, It will appear in this advarllsemant.)
ln!Jliries concerning this item siDukl be directed to the Budget & Performance Improvement Office at (305) 673-7510.
INTERESTED PARTIES are invited to appear at this meeting, or be represented by an agent, or to express their views in
writing addressed to the City Commission, c/o the City Clerk, 1700 Convention Center Drive, 1st Floor, City Hall, Miami Beach,
Florida 33139. A copy of this item is available for public inspection during normal business hours in the City Clerk's Office,
1700 Convention Center Drive, 1st Floor, City Hall, Miami Beach, Florida 33139. This meeting, or any item herein, may be
continued, and under such circumstances additional legal notice will not be provided.
Rafael E. Granado, City Clerk
City of Miami Beach
Pursuant to Section 286.0105, Fla. Stat, 1tle City hereby advises the public that If a person decides to appeal any decision made
by the City Commission with respect to any matter considered at its meeting or i1s hearing, such person must ensure that a
verbatim record of the proceedlr~gs is made, which record indudes the testimony and evidence upon which the appeal is to be
based. This notice does not constitute consent by the City for the introduction Of admission of otherwise inadmissible or irrelevant
evidence, nor does It authorize challenges or appeals not otherwise allowed by law.
To request this material in accessible format, sign language interpreters, Information on access for persons with disabilities and/
Of any accommodation to review any document or participate in any City-sponsored proceeding, please contact us five days in
advance at (305) 673-7411(voice) or TTY users may also call the Florida Relay Service at 711.
Ad 11846
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RESOLUTION TO BE SUBMITTED
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