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2004-25700 Reso RESOLUTION NO. 2004-25700 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE MIAMI BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2004/2005 BUDGET, IN THE AMOUNT OF $1,406,294. WHEREAS, the Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City Commission on March 5, 1997; and WHEREAS, the mission of the CAC is to develop, coordinate, and promote the visual and performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment and benefit of the residents of, and visitors to, Miami Beach; and WHEREAS, the Mayor and City Commission adopted the Cultural Arts Master Plan on June 3, 1998, identifying the following program areas for the CAC: cultural arts grants; marketing; facilities; advocacy and planning; and revenue development; and WHEREAS, pursuant to its enabling legislation, the CAC's budget for each fiscal year shall be approved by the Mayor and City Commission; and WHEREAS, accordingly, the CAC recommends a $1 ,406,294, budget allocation for the fiscal year 2004/2005 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 approve the Miami Beach Cultural Arts Council's Fiscal Year 2004/2005 budget, in the amount of $1 ,406,294. PASSED AND ADOPTED THIS 28th September ,2004 ATTEST: .~~ fCu~ CITY CLERK APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION OJ- '2-1 ~ tV 't u. Exhibit A Miami Beach Cultural Arts Council Budget FY 2004-2005 Revenues FY 2003-2004 Adopted $250,000 CAC interest 360,000 GMCVB 152,000 CMB resort taxes 123,638 Carry forward - facilities 7,750 Carry forward - grants 0 Quality of Life Funds $893,388 Total Expenses FY 2003-2004 Adopted $500,750 Cultural arts grants 0 Additional grants 91,790 Marketing 0 Endowment 177,210 Administration 123,638 Carry forward 0 Contingency $893,388 Total FY 2004-2005 Proposed % of total $250,000 CAC interest 324,000 GMCVB 152,000 CMB resort taxes 102,912 Carry forward - facilities o Carry forward - grants 577,382 Quality of Life Funds 18% 23% 11% 7% 41% $1,406,294 Total 100% FY 2004-2005 Proposed % of total $500,750 Cultural arts grants 1 36% 98,265 Additional grants 7% 146,200 Marketing 10% 50,000 Endowment 4% 216,312 Administration2 15% 102,912 Carry forward - facilities3 7% 291,855 Contingency4 21% $1,406,294 Total 100% Note 1- 49 Cultural arts grant awards for FY 2004/2005 recommended for Commission approval on September 28, 2004, Note 2- Administration includes the salaries of the Cultural Affairs Program Manager and Operations Manager, City operating accounts supporting the Council's programs, professional services, and City intemal service charges Salaries Fringe benefits Operating accounts Internal service charges $115,376 (two full time staff positions) 18,354 (pension, health insurance, etc,) 64,447 (supplies, mailings, printing, consultants) 18,135 (property management, computers, etc,) Total $216,312 Note 3- Carry fOlWard for facilities represents unspent funds for Colony Theater rennovations. Note 4- Represents increased Quality of Life funding 9/21/2004 3:40 PM RevisedCAC Budget Memo and Resolution 0405 Exhibit A CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, approving the Miami Beach Cultural Arts Council's Fiscal Year 2004/2005 budget, in the amount of $1,406,294, Issue: Shall the City approve the Miami Beach Cultural Arts Council's Fiscal Year 2004/2005 budget in the amount of $1 ,406,294? Item Summa IRecommendation: The Cultural Arts Council (CAC) 2004-2005 Budget is allocated as follows: Cultural Arts Grant Programs - The CAC's annual grant program represents 43% of their annual budget, which equals $599,015. This includes a $50,000 matching grant to the VCA for cultural tourism grants that support cultural events with documented tourism benefits. Marketing -Utilized to promote the City of Miami Beach as the region's preeminent cultural destination and help market the programs of the City's 49 constituent arts groups, This represents 10% of their budget, which equals $146,200. Endowment - The CAC's will be contributed towards the City's Cultural Endowment with a contribution of $50,000 or 4% of their annual budget. Administration - Administrative and operating expenses represent 15% of the CAC's annual budget or $216,312. Facilities Carry Forward - The CAC's annual budget also includes $102,912 or 7% carry forward from last fiscal year. These funds were utilized as matching grant funds for the Colony Theater renovations. Contingency - This year the CAC also receives an infusion of additional revenue from Quality of Life funding. This funding is 25% of the 50% allocation of the 1 % Resort Tax that is now being equally divided between North, Middle and South Beach, as well as cultural arts programs for the City. Of those funds, $291, 855 or 21 % will be placed into a contingency line item to be used throughout the year as new cultural affairs programs are developed or enhanced, It is recommended that the Ci Commission a rove the bud et as indicated. Financial Information: Source of Funfts / ~, City Clerk's Office Legislative Tracking: I L AGENDA ITEM ~ 7 F DATE 9-;<11-0'1 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\cLmiami-beach,fl,us COMMISSION MEMORANDUM To: From: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez 4fc....~(. City Manager Date: September 28, 2004 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING THE MIAMI BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2004/2005 BUDGET, IN THE AMOUNT OF $1,406,294. ADMINISTRATION RECOMMENDATION Subject: Adopt the Resolution. FUNDING Funding is available from the Cultural Arts Council's (CAC) budget for Fiscal Year 2004/2005. ANALYSIS The Cultural Arts Council's (CAC) mission is to develop, coordinate, and promote the visual and performing arts in Miami Beach for the enjoyment, education, cultural enrichment, and benefit of residents and visitors. In 1997, the nine-member volunteer board conducted town meetings with arts groups to evaluate their needs. It then developed a cultural arts master plan identifying programs to assist local arts groups: grants, marketing, facilities, revenue development, and advocacy/planning. The Mayor and City Commission adopted the master plan on June 3, 1998. Since that time the City has awarded approximately $4 million in cultural arts grants, supporting thousands of performances, exhibits, and other cultural activities in Miami Beach. The CAC continually evaluates its programs and effectiveness based on comments from its constituent arts groups, advisers, grants panelists, community groups, elected officials, City administrators, and others. The positive economic impact of the City's cultural efforts is evident throughout the community as is its effect on our quality of life. Quality of Life Revenue The City Commission endorsed a proposal at their February 18, 2004 workshop that freezes the Quality of Life funding allocated to the three areas at the current level (2002 level) and any additional funds received in 2003 be allocated to the Tourism and Cultural Development Department (TCD) for cultural affairs. In essence, this divides the funding into quarters. The 50% allocation of the 1 % Resort Tax shall be equally allocated to North Beach, Middle Beach, South Beach, and TCD, each receiving 25% of the collections. This commitment of funding for arts and cultural was done to provide a new permanent funding source that will sustain cultural programs long-term. Cultural Arts Grants The City Administration is recommending grants to 49 not-for-profit organizations for cultural events in Miami Beach between October 1, 2004 and September 30, 2005. The CAC's annual budget for grants is $599,015 or 43%. This includes a $50,000 matching grant to the VCA for cultural tourism grants that support cultural events with documented tourism benefits. The grant awards range from $5,600 to $25,000. A total of $931,915 was requested by 55 grant applicants this year. A companion item is included in today's agenda that provides additional information on the grant process and the recommended awards. This year's recommended grant awards of $599,015 represents a 20% increase over FY 03/04 grant funds, The additional cultural grants funding increased the Panels' recommended awards by 40%, up to the Category cap or the cultural organization's requested award amounts. This is a significant increase for the cultural organizations and will prove to be invaluable in enhancing the cultural fabric of the community. With the exception of one applicant, the CAC has been praised for the manner in which this year's grant process was managed and for the professionalism of the panels. Twenty-nine volunteers comprised of citizens and professionals in the various artistic disciplines were selected last April to review grant applications and make funding recommendations at public meetings in May and June. The panelists collectively volunteered hundreds of hours of their time reviewing the applications and attachments, working with the City's Cultural Affairs staff and, where possible, attending events. The panelists were informed, diverse, and dedicated. All panels were co-chaired by members of the CAC. Marketing This year, the CAC has recommended $146,200, 10% of its annual budget, to be utilized to promote the City of Miami Beach worldwide as the region's preeminent cultural destination. A new marketing initiative, developed by the CAC's Marketing and Communications Task Force, will better promote the arts in our community and market the programs of the City's 49 constituent arts groups. Endowment From 1998 through 2001 the City contributed $200,000 towards the CAC's endowment, 13% of its annual budget. In fiscal years 2001/2002 and 2002/2003, due to a decrease in funding sources, the City contributed $160,000, 15% of the CAC's annual budget. Due to significant decreases in resort tax revenue and interest income, the City did not contribute to the CAC's endowment for 2003/2004. This year the CAC will contribute $50,000 towards the endowment, 4% of its annual budget, which brings the endowment total up to $960,000. Administration The CAC's annual budget also includes $216,312 or 15% to be utilized for administrative and operating expenses. This includes salaries and benefits for two full-time employees, professional services, operating accounts supporting the CAC's programs, capital, and City internal service charges. Carry forward The CAC's annual budget also includes $102,912 or 9% carry forward from last fiscal year. These funds were utilized as matching grant funds for the Colony Theater renovations. Contingency This year the CAC also receives an infusion of additional revenue from Quality of Life funding, This funding comes is 25% of the 50% allocation of the 1 % Resort Tax that is now being equally divided between North, Middle and South Beach, as well as cultural arts programs for the City. Of those funds, $291, 855 or 21 % will be placed into a contingency to be used throughout the year as new cultural affairs programs are developed or enhanced. JMG/CMC/MAS/RB F:~nfoI$ALL\Roberta\Commission ItemsIFY0405\CAC Budget\CAC Budget Memo and Resolution 0405,doc