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Home My WebLink About2006-26335 Reso RESOLUTION NO. 2006-26335 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2006/07 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE th STREET PARKING 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 ih Street and Collins Avenue (the ih Street Parking Garage) provides funding for operating expenses, debt service, and a reserve for replacement; and WHEREAS, In FY 2004/05, the South Pointe Capital Renewal and Replacement was funded through the South Pointe Redevelopment District, in the amount of $199,679; and WHEREAS, With the expiration of the District, and pursuant to the 2001 and 2003 amendments to the Convention Development Tax (CDT) Interlocal Agreement with Miami-Dade County, fifty percent (50%) of the equivalent tax increment revenue is required to be spent within the geographic area of the (former) District, and WHEREAS, Accordingly, fifty percent (50%) of the City's portion of the tax increment revenue associated with the 0.182 Capital Renewal and Replacement millage, which generated $192,453 in FY 2005/06 and will generate $258,990 in FY 2006/07, 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 2006/07 budgets for Special Revenue Funds as listed below: SPECIAL REVENUE APPROPRIATIONS Resort Tax 7th Street Parking Garage South Pointe Capital Renewal and Replacement State Major Cultural Institution Grant-Bass Museum Total FY 2006/07 $35,848,200 1,956,357 258,990 64,532 $38,128,079 PASSED and ADOPTED this 21stday of September 2006. ATTEST BY: ~d' p~ CITY CLERK Robert Parcher ,~ ~ AI"'f'ROVEDAS TO / M & LANGUAGE Vice-Mayor Jerry Libbin ) EXECUTION 'J //17 le~ ~ COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting the Fiscal Year 2006/07 budgets for Special Revenue funds for Resort Tax; 7'h Street Garage Operations; South Pointe Capital Renewal and Replacement; and the State Major Cultural Institution Grant for the Bass Museum. Ke Intended Outcome Su orted: Ensure expenditure trends are sustainable over the long term Improve the City's overall financial Health and maintain overall bond rating Increase Communit Satisfaction with Cit Services Issue: Shall the Mayor and City Commission adopt the attached resolution which adopts the Fiscal Year 2006/07 budgets for Special Revenue funds for Resort Tax; 7'h 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 attached resolution which adopts the Fiscal Year 2006/07 budgets for Special Revenue funds for Resort Tax; 7'h 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: qr; OBPI $35,848,200 Resort Tax 1,956.357 7'h Street Gara e 0 erations South Pointe Capital 258,990 Renewal and Re lacement 64,532 State Grant for Bass Museum Financial Impact Summary: $38,128,079 City Clerk's Office Legislative Tracking: I m ..., MIAMI BEACH AGENDA ITEM DATE R7D 9 "';'/-()G e IAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miomi Beoch, Florida 33139, www.miamibeochfl.90v COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commissi" Jorge M. Gonzalez ~~ City Manager U September 21,2006 TO: DATE: SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2006/07 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET PARKING GARAGE OPERATIONS; SOUTH POINTE CAPITAL RENEWAL AND REPLACEMENT; AND THE STATE MAJOR CULTURAL INSTITUTION GRANT FOR THE BASS MUSEUM. 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 - $35,848,200 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 $1 million. The allocation to the General Fund for Fiscal Year 2006/07 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, ATV 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 2006/07 budget also includes an allocation to the Greater Miami Convention and Visitors Bureau (GMCVB) of approximately $5.3 million, $1.8 million for debt service, $1.4 million to the Miami Beach Visitor and Convention Center (VCA), $400,000 for a local Miami Beach marketing campaign, to be matched with funds from the GMCVB, the VCA, and the Cultural Arts Council (CAC), and a $400,000 contingency for other Resort Tax eligible expenses such as: special events, protocol, and festivals. The proceeds of the additional one percent (1%) 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 Village 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 1 % 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. Effective October 1, 2005, the remaining fifty percent is used to fund Quality of Life capital projects in 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. 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. PROGRAM/ACTIVITY AMOUNT Total $1,136,932 602,956 216,469 $1,956,357 Operating Expenses Debt Service Reserve for Replacement South Pointe Capital Renewal and Replacement - $258,990 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 (CDT) Interlocal Agreement with Miami-Dade County, 50% 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 generated $192,453 in FY 2005/06 and will generate $258,990 in FY 2006/07, must be spent within the South Pointe Area. State Major Cultural Institution Grant for the Bass Museum of Art - $64,532 First year of a four-year grant from the State of Florida Division of Cultural Affairs to provide security personnel for the facility and other operating support. CONCLUSION The attached Resolution adopting funding for FY 2006/07 budgets from these sources is vital to the continuation of these projects and activities provided by the City. JMG:KGB:JC CITY OF MIAMI BEACH, FLORIDA PROPOSED FY 2006/07 RESORT TAX FUND BUDGET "ATTACHMENT A" 2% 1% Total Revenues: Resort Tax $ 29,327,000 $ 5,957,000 $ 35,284,000 Special Assessment-North Shore 255,600 255,600 Special Assessment-Lincoln Road 151,600 151,600 Interest Income 150,000 150,000 Registration Fees 7,000 7,000 Total Revenue $ 29,891,200 $ 5,957,000 $ 35,848,200 Expenditures: Personnel Costs: Salaries & Wages $ 191,373 $ 0 $ 191,373 Health, Life & Dental Insurance 8,229 8,229 Pension Contributions & Other Benefits 62,263 62,263 Total Personnel Costs $ 261,865 $ 0 $ 261,865 OperatinQ Costs: Professional Services $ 10,000 $ 0 $ 10,000 Internal Audit/Resort Tax Auditors' Expenditures 636,533 636,533 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 13,570 13,570 Internal Service - Property Management 9,496 9,496 Internal Service - Communications 3,993 3,993 Internal Service - Self Insurance 16,902 16,902 Internal Service - Computers 14,427 14,427 Internal Service - Prop. Management/Electrical 3,073 3,073 Total Operating Costs $ 743,929 $ 0 $ 743,929 Total Operating Expenditures $ 1,005,794 $ 0 $ 1,005,794 Other Uses: Contribution to VCA $ 1,407,696 $ 0 $ 1,407,696 Contribution to Bureau 5,304,500 5,304,500 Marketing 400,000 400,000 Excise Tax Bonds 303,000 303,000 Other Designated Expenditures 2,978,500 2,978,500 Debt Service: North Shore 946,100 946,100 Gulf Breeze 552,800 552,800 TIF Bonds 2,978,500 2,978,500 Contingency 400,000 400,000 General Fund Contribution 19,571,310 19,571,310 Total Other Uses $ 28,885,406 $ 5,957,000 $ 34,842,406 Net $ 0 $ 0 $ 0 Explanation of Other DesiQnated Expenditures: South Beach - Quality of Life Capital $ 0 $ 744,625 $ 744,625 Middle Beach - Quality of Life Capital 744,625 744,625 North Beach - Quality of Life Capital 744,625 744,625 Arts 744,625 744,625 Total $ 0 $ 2,978,500 $ 2,978,500