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HomeMy WebLinkAbout2005-26013 Reso RESOLUTION NO. 2005-26013 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 2005/2006 BUDGET IN THE AMOUNT OF $1,473,888. 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 2005/2006 in the amount of $1,473,888 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 2005/2006 budget, in the amount of $ 1,473,888. PASSED AND ADOPTED THIS 21st Sentember ,2005. ATTEST: ~t ftkrk "- CITY CLERK Robert Parcher David Dermer APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION T:\AGENDA\2005\Sep0804\Regular\9-21-VCA BUDGET. RES.doc .; ~~ :l-o'S 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, adopting and approving the Miami Beach Visitor and Convention Authority (VCA) Fiscal Year 2005/2006 budget in the amount of $1,473,888. Issue: To approve the Miami Beach Visitor and Convention Authority (VCA) FY 2005/2006 budget in the amount of $1,473,888. Item Summary/Recommendation: Approve the budget as indicated. Advisory Board Recommendation: I N/A Financial Information: Source of Amount Account Approved Funds: 1 $1,353,888 FY 05-06 Resort Tax W. 2 120,000 FY 04-05 Rollover 3 4 Total $1,473,888 Ci Clerk's Office Le islative Trackin Hilda M. Fernandez/Grisette Roque Si n-Offs: Department Director T:\AGENDA\2005\Sep21 05\Regular\9-21-VCA BUDGET. SUM. doc' AGENDA ITEM DATE f),7X ,--- ?-:<I-th. CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor David Dermer and Members of the City Commission Date: September 21, 2005 Jorge M. Gonzalez ~... \;~ City Manager ,t 6 A RESOLUTIO~ 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 2005/2006 BUDGET IN THE AMOUNT OF $ 1,473,888. ADMINISTRATION RECOMMENDATION From: Subject: Adopt the Resolution. ANAL YSIS 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 2004/2005 ReviewfTourism Advancement Proaram 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 2004/2005, 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 Special Projects Category. The TAP awarded $922,559.50 in fiscal year 2004/2005, compared to $769,937 in fiscal year 2003/2004. The increase in awards within the TAP reflected the establishment of the Special Projects Category. The TAP funds helped maintain worthwhile tourism initiatives such as the South Beach Wine & Food Festival, Winter Party Festival, Art Basel Miami Beach and supported new events on Miami Beach, such as the IMG Swim Shows Miami and the Worldwide Motorcycle Show. September 21, 2005 Commission Memorandum VCA Budget FY 2005/2006 Page 2 of 3 Administration and Overhead The VCA's administrative and overhead costs are budgeted at $181 ,500 for the fiscal year 2005/2006. The $181,500 administration and overhead allocation reflects an approximate 90/0 increase from fiscal year 2004/2005. The g% increase is attributed to the rising cost of insurance coverage, retirement plan, medical insurance, standard cost of living increase, and a reclassification of employee salaries and benefits. This figure is also inclusive of the office space and equipment, and a fully staffed VCA administrative office. 2005/2006 Tourism Advancement Proaram The VCA has budgeted $1,159,700 for fiscal year 2005/2006 for its Tourism Advancement Program. This grant funding reflects an approximate 11.50/0 increase, or a total of $119,608 from fiscal year 2004/2005. The increase in funds is reflective of an increase in the number of applicants in the Special Projects category. The monies will be awarded in our Tourism Advancement Program in seven categories, including: Tourism Partnerships, Special Events (Recurring), Major One Time Event, Development Opportunities, Cultural Tourism, Festival Season and Special Projects. The grant application was again reviewed and revised in 2005/2006. 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 2005/2006 fiscal year. The TAP applications and guidelines can now be accessed in several formats, including Microsoft Word and PDF at www.miamibeachvca.com. VCA meeting minutes are now available on the web. Destination Marketina The destination marketing allocation reflects a 380/0 decrease from fiscal year 2004/2005. This allocation includes the VCA portion of production costs for the Miami Spice Restaurant Month Program Banners. The banners will add a festive atmosphere and help publicize the 4th Annual Miami Spice Restaurant Month and position the City of Miami Beach as a destination with excellent restaurants. Research and Development The VCA expects to support new initiatives in FY 2005/2006 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 2005/2006 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. September 21, 2005 Commission Memorandum VCA Budget FY 2005/2006 Page 3 of 3 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 initiatives will be developed through consultation with partners and continued outreach. Proiected Cash Flow Reserve The VCA has budgeted $20,000 in the cash flow reserve in fiscal year 2005/2006. The $20,000 cash flow reserve reflects a 00/0 increase from fiscal year 2004/2005. The City of Miami Beach allots resort tax payments to the VCA a month after its collection. Therefore the VCA has built in a $20,000 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 adopt the 2005/2006 VCA budget in the amount of $1 ,473,888, as set forth in Exhibit A. JMG/HMF/GR T:\AGENDA\2005\Sep21 05\Regular\9-21-VCA BUDGET.MEM.doc Miami Beach Visitor and Convention Authority FY 2005/2006 "Exhibit A" BUDGET FY 04/05 PROPOSED BUDGET FY 05/06 Variance REVENUES Rollover from FY2004/2005 $ 183,460.00 $ 120,000.00 $ (63,460.00) Resort Tax Revenue $ 1,171,632.00 $ 1,353,888.00 $ 182,256.00 Total Revenues $ 1,355,092.00 $ 1,473,888.00 $ 118,796.00 EXPENDITURES ADMIN/STRA T/ON Administration & Benefits $ 136,000.00 $ 145,000.00 $ 9,000.00 Operating Expenses $ 30,000.00 $ 35,000.00 $ 5,000.00 Capital $ 1,000.00 $ 1,500.00 $ 500.00 Total Administration $ 167,000.00 $ 181,500.00 $ 14,500.00 GRANTS PROGRAM Tourism Advancement Program Tourism Partnerships $ 85,000.00 $ 90,000.00 $ 5,000.00 Cultural Tourism $ 50,000.00 $ 50,000.00 $ - Major Events $ 100,000.00 $ 147,500.00 $ 47,500.00 Special Events Recurring 1 $ 125,767.50 $ 267,200.00 $ 141,432.50 Development Opportunities $ 34,016.00 $ 60,000.00 $ 25,984.00 Special Projects $ 450,308.50 $ 450,000.00 $ (308.50) Festival Season $ 95,000.00 $ 95,000.00 $ - RFP Summer Event Producers $ 100,000.00 $ - $ (100,000.00) Total Tourism Adv. Program $ 1,040,092.00 $ 1,159,700.00 $ 119,608.00 Other Destination Marketing $ 80,000.00 $ 50,000.00 $ (30,000.00) R&D $ 11,000.00 $ 25,688.00 $ 14,688.00 Initiatives $ 37,000.00 $ 37,000.00 $ - Projected Cash Flow Reserve $ 20,000.00 $ 20,000.00 $ - Total Other $ 148,000.00 $ 132,688.00 $ (15,312.00) TOTAL $ 1,355,092.00 $ 1,473,888.00 $ 118,796.00 Special Events Recurring Detail FIRST PERIOD (OCT. 1st - JAN. 31st) Event Max Fundina Reauest Muscle BeachlWhite Party $ 30,000.00 Miami Tropical Marathon $ 30,000.00 Miami Beach Latin Funk Music Festival $ 15,000.00 Miami Beach Sports & Fitness Festival $ 30,000.00 SUBTOTAL $ 105,000.00 SECOND PERIOD (FEB. 1st - MAY 31st) Event Clio Awards Festival at Miami Beach Miami Beach Sports & Fitness Fest. South Beach Wine & Food Fest. Winter Party VolleyPalooza Aqua Girl Fashion Week of the Americas City Style Miami Beach Worldwide Motorcycle Shows Miami FUNKSHION - Fashion Week MB THIRD PERIOD (JUNE 1 - SEPT. 30th) Event All American Celebration TOTAL ANTIC. FOR 2005/2006 SUBTOTAL Max Fundina Reauest $ 11,250.00 $ 30,000.00 $ 11,481.75 $ 12,757.50 $ 8,437.50 $ 14,580.00 $ 9,841.50 $ 18,000.00 $ 15,000.00 $ 15,000.00 $ 146,348.25 Max Fundina Reauest $ 16,200.00 SUBTOTAL $ 16,200.00 $ 267,548.25 if can confirm tv component if can confirm tv component if can confirm tv component