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HomeMy WebLinkAbout2005-26010 Reso RESOLUTION NO. 2005-26010 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR 2005/06 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; 7th STREET GARAGE OPERATIONS; SOUTH POINTE CAPITAL RENEWAL AND REPLACEMENT; AND THE STATE MAJOR CULTURAL INSTITUTION GRANT FOR THE BASS MUSEUM. 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 7th Street and Collins Avenue (the 7th Street Parking Garage) provides funding for operating expenses, debt service and a reserve for replacement; and WHEREAS, the South Pointe RDA expires on September 30, 2005, and pursuant to the 2001 and 2003 amendments to the Convention Development Tax (CDT) Interlocal Agreement with Miami-Dade County, 500/0 of the equivalent tax increment revenue is required to be spent within the geographic area formerly known as the South Pointe RDA District. Accordingly, 500/0 of the City's portion of the tax increment revenue associated with the 0.182 Capital Renewal and Replacement millage which will generate $192,453, must be spent within the South Pointe Area; and WHEREAS, a State Major Institution Grant received by the Bass Museum of Art from the State of Florida Division of Cultural Affairs will be used for general operation purposes of the Museum. NOW, THEREFORE, BE IT DULY RESOLVED BY THEMAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopts the Fiscal Year 2005/06 budgets for Special Revenue Funds as listed below: SPECIAL REVENUE/ APPROPRIATIONS Resort Tax 7th Street Garage South Pointe Capital Renewal and Replacement State Major Cultural Institution Grant for the Bass Museum of Art Total All Funds FY 2005/06 BUDGET $35,246,000 1,956,357 192,453 /1 / ,/ 102,684 $37,497,494 PASSED and ADOPTED this 21stday sif Se I ~sslt:~ / CITY CLERK Robert Parcher APPROVED AS TO FORM & LANGUAGE MAYOR CUTION Dav~. ..... _ , </~[ i / " CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution adopting Fiscal Year 2005/06 budgets for Special Revenue funds for Resort Tax; th Street Garage Operations; South Pointe Capital Renewal and Replacement; and the State Major Cultural Institution Grant for the Bass Museum. Issue: Should the Commission adopt Fiscal Year 2005/06 budgets for Special Revenue funds for Resort Tax, ih Street Garage Operations; South Pointe Capital Renewal and Replacement; and the State Major Cultural Institution Grant for the Bass Museum? Item Summary/Recommendation: The administration recommends adopting the Fiscal Year 2005/06 budgets for Special revenue funds for Resort Tax; ih Street Garage Operations; South Pointe Capital Renewal and Replacement; and the State Major Cultural Institution Grant for the Bass Museum. Advisory Board Recommendation: I Financial Information: Source of Funds: [j] Finance Dept. $35,246,000 1,956,357 192,453 102,684 Resort Tax 7 Street Garage Operations South Pointe Capital Renewal and Re lacement State Grant for Bass Museum $37,497,494 City Clerk's Office Legislative Tracking: I AGENDA ITEM DATE Rl \=- q-c I-os- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.cLmiami-beach.f1.us COMMISSION MEMORANDUM From: Mayor David Dermer and Date: September 21,2005 Members of the City Commission Jorge M. Gonzalez , ~Y City Manager 0 U A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR 2005/06 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; 7TH STREET GARAGE OPERATIONS; SOUTH POINTE CAPITAL RENEWAL AND REPLACEMENT; AND THE STATE MAJOR CULTURAL INSTITUTION GRANT FOR THE BASS MUSEUM. To: Subject: ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANAL YSIS 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 - $35,246,000 This fund accounts 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) positions and associated operating support totaling $874,096. FY 2005/06 - Special Revenue Budgets September 21 , 2005 Page 2 The allocation to the General Fund for Fiscal Year 2005/06 of approximately $19.6 million pays for tourist related services and costs provided or managed by General Fund Departments. This funding supports approximately $18.5 million of public safety programs including our beach patrol, police services on Lincoln Road, Ocean Drive/Lummus Park, Collins Avenue, Washington Avenue, A TV officers, Boardwalk security, special traffic enforcement and special event staffing; and fire rescue units in tourist and visitor areas as well as special event support services. Approximately $500,000 supports code compliance services to respond to evening entertainment areas and for special events. An additional $600,000 provides for a portion of the operational costs of the Tourism and Cultural Development Department, and a contribution to the Cultural Arts Council beyond their annual interest allocation from the investment of City funds. The Fiscal Year 2005/06 budget also includes a $500,000 contingency for other Resort Tax eligible expenses such as: special events, festivals, marketing, and protocol. This budget also reflects the revised allocation method for the Qualify of Life funding, which includes the arts, approved by the Finance and Citywide Projects Committee on February 18, 2004. $400,000 is also provided for a local Miami Beach marketing campaign, to be matched with funds from the Greater Miami Convention and Visitors Bureau, the Miami Beach Visitor and Convention Authority, and the Cultural Arts Cou ncil. The proceeds of the additional one percent (10/0) 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 \(illage 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 is allocated equally among North Beach, Middle Beach and South Beach for the maintenance and enhancement of Miami Beach's tourist related areas. In prior years, these funds were used for the following: beautification and landscaping within these areas, various art and cultural programs (Festival of the Arts, Miami Mimo Exhibits, 2nd Thursdays, etc.), and public safety. Effective October 1, 2005, the remaining fifty percent will be used to fund Quality of Life Capital projects North Beach, Middle Beach and South Beach 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. FY 2005/06 .:... Special Revenue Budgets September 21,2005 Page 3 7th Street Garage - $1,956,357 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. In the event of any shortfall in projected revenues, the difference shall be made up by funds from excess parking revenues. Operating Expenses Debt Service Reserve for Replacement Total $1,066,867 789,282 100,208 $1,956,357 South Pointe Capital Renewal and Replacement - $192,453 In FY 2004/05, the South Pointe Capital Renewal and Replacement was funded through the South Pointe RDA District in the amount of $199,679. With the expiration of the District, and pursuant to the 2001 and 2003 amendments to the Convention Development Tax (COT) lnterlocal Agreement with Miami-Dade County, 500/0 of the equivalent tax increment revenue is required to be spent within the geographic area formerly known as the South Pointe RDA District. Accordingly, 50% of the City's portion of the tax increment revenue associated with the 0.182 Capital Renewal and Replacement millage which will generate $192,453, must be spent within the South Pointe Area. State Major Cultural Institution Grant for the Bass Museum of Art - $102,684 Third year of a three-year grant from the State of Florida Division of Cultural Affairs to provide security personnel for the facility and other operating su pport. CONCLUSION The attached Resolution adopting funding for FY 2005/06 budgets from these sources is vital to the continuation of these projects and activities provided by the City. JMG:KGB:JC ATTACHMENT "A" CITY OF MIAMI BEACH, FLORIDA RESORT TAX FUND BUDGET - FISCAL YEAR 2005/06 2% 1% Total Revenues: Resort Tax $ 28,206,000 $ 5,945,000 $ 34,151,000 Special Assessment-North Shore 263,000 263,000 Interest Income 125,000 125,000 Registration Fees 7,000 7,000 Retained Earnings 700,000 700,000 Total Revenue $ 29,301,000 $ 5,945,000 $ 35,246,000 Expenditures: Personnel Costs: Salaries & Wages $ 179,172 $ 0 $ 179,172 Health, Life & Dental Insurance 7,619 7,619 Pension Contributions & Other Benefits 30,716 30,716 Total Personnel Costs $ 217,507 $ 0 $ 217,507 Operatina Costs: Professional Services $ 10,000 $ 0 $ 10,000 Internal Audit/Resort Tax Auditors' Expenditures 557,742 557,742 Telephone 1,500 1,500 Postage 500 500 Administrative Fees 26,450 26,450 Rent-Building & Equipment 3,585 3,585 Printing 100 100 Office Supplies 750 750 Other Operating Expenditures 1,000 1,000 Local Mileage 50 50 Training 2,000 2,000 Internal Service - Central Service 3,570 3,570 Internal Service - Property Management 3,496 3,496 Internal Service - Communications 6,110 6,110 Internal Service - Self Insurance 16,902 16,902 Internal Service - Computers 20,095 20,095 Internal Service - Prop. Management/Electrical 2,739 2,739 Total Operating Costs $ 656,589 $ 0 $ 656,589 Total Operating Expenditures $ 874,096 $ 0 $ 874,096 Other Uses: Contribution to VCA $ 1,353,888 $ 1,353,888 Contribution to Bureau 5,000,000 5,000,000 Marketing 400,000 400,000 Excise Tax Bonds 298,706 298,706 Other Designated Expenditures 2,972,500 2,972,500 Debt Service: North Shore 935,000 935,000 Gulf Breeze 368,000 368,000 TI F Bonds 2,972,500 2,972,500 Contingency 500,000 500,000 General Fund Contribution 19,571,310 19,571,310 Total Other Uses $ 28,426,904 $ 5,945,000 $ 34,371,904 Net $ 0 $ (0) $ (0) Explanation of Other Desianated Expenditures: South Beach - Quality of Life Capital $ 0 $ 743,125 $ 743,125 Middle Beach - Quality of Life Capital 743,125 743,125 North Beach - Quality of Life Capital 743,125 743,125 Arts 743,125 743,125 $ 0 $ 2,972,500 $ 2,972,500