2004-25702 Reso
RESOLUTION NO. 2004-25702
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROVING THE MIAMI
BEACH VISITOR AND CONVENTION AUTHORITY (VCA) FISCAL YEAR
2004/2005 BUDGET, IN THE AMOUNT OF $ 1,355,092.
WHEREAS, the Miami Beach Visitor and Convention Authority (VCA) was created
pursuant to Chapter 67-930 of the Laws of Florida, and Sections 102-246 through 102-254
of the City of Miami Beach Code; and
WHEREAS, the VCA's mission is to support, maintain and develop quality programs,
which generate, satisfy and enhance the year-round tourist attractiveness of Miami Beach;
and
WHEREAS, the VCA strategically focuses its funding investments in a balanced
manner, fostering outstanding existing programs, stimulating new activities, and
encouraging partnerships; and
WHEREAS, the VCA is committed to a careful, long-term plan for allocation of
resources to build the uniqueness of Miami Beach as one of the world's greatest
communities and tourist destinations; and
WHEREAS, pursuant to its enabling legislation, the VCA's budget for each fiscal year
shall be approved by the Mayor and Commission; and
WHEREAS, accordingly, the VCA recommends approval of the proposed budget for
Fiscal Year 2004/2005, in the amount of $ 1,355,092, to continue implementation of its
programs.
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 adopt the Miami Beach Visitor and Convention Authority's Fiscal Year
2004/2005 budget, in the amount of $ 1,355,092.
PASSED AND ADOPTED THIS
September , 2004.
ATTEST:
~~ r~~
CITY CLERK
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
Afi ~ 9- fS-~ 't
ty A D8bl
"EXHIBIT A"
Miami Beach Visitor and Convention Authority
FY 04/05 Budget
FY 03/04 FY 04/05
Approved Budget Proposed Budget
Revenues
Estimated Rollover $ 0 $ 183,460
2% Resort Tax Revenue 1,025,088 1,171,632
Total Revenue $ 1,025,088 $ 1,355,092
Expenditures
Administration $ 132,000 $ 141,000
Tourism Advancement Proaram
Tourism Partnerships 75,000 76,000
Cultural Tourism 50,000 50,000
Major One Time 105,000 140,000
Special Events Recurring 181,588 176,600
Development Opportunities 91,500 60,000
Special Projects 75,000 300,000
Festival Season 100,000 100,000
Stratea ic Initiatives
RFP 50,000 100,000
Destination Marketing 100,000 100,000
R&D 35,000 40,000
Initiatives 0 41,492
Cash Flow 30,000 30,000
Total Expenditures $ 1,025,088 $ 1,355,092
CllY OF MIAMI BEACH
COMVIISSION ITEM SUMMARY
~
Condensed Title:
A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, adopting and approving
the Miami Beach Visitor and Convention Authority (VCA) Fiscal Year 2004/2005 budget in the amount of
$1,355,092,
Issue:
To approve the Miami Beach Visitor and Convention Authority (VCA) FY 2004/2005 budget in the amount
of $1,355,092.
Item Summary/Recommendation:
Approve the budget as indicated,
Advisory Board Recommendation:
I N/A
Financial Information:
Source of
Funds:
D
Finance Dept.
Ci Clerk's Office Le islative Trackin
Christina M, Cuervo/Grisette Roque
c
T:\AGENDA\2004\Sep0804\Regular\9-28-VCA BUDGET .SUM.doc
AGENDA ITEM
DATE
A7H
r-d-8'-o~
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
www,miamibeachfi,gov
COMMISSION MEMORANDUM
To:
Mayor David Dermer and
Members of the City Commission
Date: September 28, 2004
From:
Jorge M, Gonzalez
City Manager
6"'0
Subject:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ADOPTING AND APPROVING THE MIAMI
BEACH VISITOR AND CONVENTION AUTHORITY (VCA) FY 2004/2005
BUDGET IN THE AMOUNT OF $ 1,355,092.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution
ANALYSIS
The Miami Beach Visitor and Convention Authority (VCA) was created and exists pursuant
to Chapter 67-930 of the Laws of Florida and Sections 102-246 through, and including 102-
254 of the Code of the City of Miami Beach. The VCA is a seven-member authority. Each
member is appointed by the City of Miami Beach Commission, with the goal of
encouraging, developing and promoting the image of Miami Beach locally, nationally and
internationally as a vibrant community and tourist destination. To this end, the VCA
strategically focuses its funding investments in a balanced manner, fostering outstanding
existing programs, stimulating new activities, and encouraging partnerships. The VCA is
committed to a careful, long-term plan for allocation of resources to build the uniqueness of
Miami Beach as one of the world's greatest communities and tourism destinations.
FY 2003/2004 Reviewrrourism Advancement Proqram
The VCA Tourism Advancement Program (TAP) helps promote Miami Beach as a
sophisticated tourist destination through the allocation of grant funds to events or programs
of work that enhance tourist attractiveness. In fiscal year 2003/2004, the program
allocated funds in one of seven categories, including: Tourism Partnerships, Special
Events Recurring, Major One Time Event, Cultural Tourism, Development Opportunities,
Festival Season and the newly created Special Projects Category.
The TAP awarded $769,937 in fiscal year 2003/2004, compared to $796,290 in fiscal year
2002/2003. The decrease in awards within the TAP reflected a lack of Development
Opportunity applications. The TAP funds helped maintain worthwhile tourism initiatives
such as the South Beach Wine & Food Festival, The Miami Beach Sports & Fitness
Festival, and supported new events on Miami Beach, such as the Clio Awards Festival,
American Black Film Festival and Art Basel Miami Beach.
September 28, 2004
Commission Memorandum
VCA Budget FY 2004/2005
Page 2 of 3
Request for Proposals
The VCA and the GMCVB are partnering in FY 2004/2005 for the Summer Event
Producers Request for Proposal (RFP). Each organization will provide $100,000 towards
the RFP. The objective of the RFP is to offset the cost of programs and events taking
place in the City of Miami Beach during the months of July and August. The RFP will
facilitate the production of proven multi-day quality performances undertaken by
recognized event producers, to take place in Miami Beach for the first time. This will
encourage current and future tourism to Miami Beach and this region, as it enhances its
image as a sophisticated tourist destination with outstanding visitor services, events.
The Summer Event Producer RFP grant category allows organizations with a new or first-
time event or program of work, that has the potential to become recurring and can generate
an extraordinary national and/or international tourism return for Miami Beach between the
months of July and August, to apply for this joint funding.
Administration and Overhead
The VCA's administrative and overhead costs are budgeted at $141 ,000 for the fiscal year
2004/2005. The $141 ,000 administration and overhead allocation reflects an approximate
7% increase from fiscal year 2003/2004. The 7% increase is attributed to the rising cost of
insurance coverage, a newly established retirement plan, medical insurance and a
standard cost of living increase. This figure is also inclusive of the office space and
equipment, and a fully staffed VCA administrative office.
2004/2005 Tourism Advancement Proqram
The VCA has budgeted $902,000 for fiscal year 2004/2005 for its Tourism Advancement
Program. This grant funding reflects an approximate 34% increase or, a total of $224,512
from fiscal year 2003/2004. The increase in funds is reflective of the enhancement of the
Special Projects category. The monies will be awarded in our Tourism Advancement
Program in seven categories, including: Tourism Partnerships, Special Events (Recurring),
Special Events (New or One-Time), Development Opportunities, Cultural Tourism, Festival
Season and Special Projects. The grant application was again reviewed and revised in
2004/2005. New questions about the economic impact of the program, such as the
various aspects of the tourism directed marketing plans, and how the numbers of hotel
room nights were calculated, were enumerated. The final report and contract were also
updated. The final report now includes quantitative and qualitative measures of event
success. The contracts were revised to be more readable; initials are required after every
clause to ensure that it is read and understood by the applicant.
In addition, the application now requires written confirmation of hotel room blocks, and
letters of media confirmation as application attachments.
The VCA website was updated for the 2004/2005 fiscal year. The TAP applications and
guidelines can now be accessed in several formats, including Microsoft Word and PDF at
www.miamibeachvca.com. Upon approval by the board, VCA meeting minutes are made
available on the web.
September 28, 2004
Commission Memorandum
VCA Budget FY 2004/2005
Page 3 of 3
Destination MarketinQ
The destination marketing allocation reflects a 0% increase from fiscal year 2003/2004.
This allocation includes the VCA portion of production costs for the updated Miami Beach
Civic Pride Banners. This resident-focused marketing/PR campaign emphasizes tourism's
benefits to our community, including the need to celebrate our community's diversity and
re-instill the importance of hospitality towards our visitors.
Research and Development
I n fiscal year 2004/2005 The VCA expects to support new initiatives in FY 2004/2005 at the
request of partners and community and resort leaders. Strategic plans, goals and
initiatives will be developed after consulting with all partners and as the result of on-going
communications.
Initiatives
The VCA expects to support new initiatives in fiscal year 2004/2005 at the request of
partners and community and resort leaders. Strategic plans, goals and initiatives will be
developed after consulting with all partners and as the result of on-going communications.
Some of these initiatives include the implementation of summer long events on Miami
Beach, including - but not limited to - supporting a food and wine festival, television
origination projects and a Miami Beach based film festival. The VCA is also taking a
leadership role in encouraging events of mass appeal to take place in Miami Beach.
Strategic goals and initiative will be developed through consultation with partners and
continued outreach.
Proiected Cash Flow Reserve
The VCA has budgeted $30,000 in the cash flow reserve in fiscal year 2004/2005. The
$30,000 cash flow reserve reflects a 0% increase from fiscal year 2003/2004. The City of
Miami Beach allots resort tax payments to the VCA a month after its collection. Therefore
the VCA has built in a $30,000 projected cash flow reserve to its budget to ensure that all
grants awarded will have the necessary funds to be reimbursed upon proper request and
documentation.
Conclusion
It is recommended that the Mayor and Commission should adopt the 2004/2005 budget in
the amount of $1 ,355,092 as set forth in Exhibit A.
JMG/~R
T:\AGENDA\2004\SepOB04\Regurar\9-28_VCA BUDGET.MEM.doc