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Home My WebLink About2006-26339 Reso RESOLUTION NO. 2006-26339 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 2006/07 BUDGET IN THE AMOUNT OF $1,607,696. 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 FY 2006/07, in the amount of $ 1,607,696, 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 FY 2006/07 budget, in the amount of $ 1,607,696. rk,,-,~' Vice-Mayor Jerry Libbin APPROVED AS TO FORM & LANGUAGE & FOR EXECUnON ~WPL 'Attomey~ Dafe COMMISSION ITEM SUMMARY Condensed Title: To adopt and approve the Miami Beach Visitor and Convention Authority (VCA) FY 2006/07 budget in the amount of $1,607,696 Ke Intended Outcome Su orted: Increase visibility of Miami Beach as a tourist destination. Issue: To approve the Miami Beach Visitor and Convention Authority (VCA) FY 2006/07 budget in the amount of $1,607,696 Item Summary/Recommendation: During the Miami Beach Visitor and Convention Authority (VCA) board meeting on September 12, 2006, the board met and unanimously voted to approve the budget for the FY 2006/07 fiscal year in the amount of $1 ,607,696. The motion was made by Mr. Stephen Hertz and seconded by Mr. Diego Lowenstein. This budget allows the VCA to continue its mission to support, maintain and develop quality programs, by strategically focusing its investments which generate, satisfy and enhance the year- round tourist attractiveness of Miami Beach. The VCA is committed to a careful, long-term plan for allocation of resources to build the uniqueness of Miami Beach as one of the world's greatest communities and tourist destinations. Adviso Board Recommendation: The Miami Beach Visitor and Convention Authority (VCA) board has unanimously approved the 2006/07 bud et. Financial Information: Source of Funds: Resort Tax Revenue Rollover from Prior Year [$J $1,607,696 Financial Impact Summary: Ci Clerk's Office Le islative Trackin Grisette Roque Marcos m ..., MI.AMI BEACH AGENDA ITEM DATE ~71-/ q-J./-O~ lD MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov COMMISSION MEMORANDUM FROM: Mayor David Dermer and Members of the City Commission Jorge M. Gonzalez, City Manager \~ September 21 , 2006 {I TO: DATE: 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 2006/07 BUDGET IN THE AMOUNT OF $1,607,696. 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 2005/2006 Review/Tourism 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 FY 2005/06, the program allocated funds in one of seven categories, including: Tourism Partnerships, Special Events Recurring, Newor One Time Special Event, Cultural Tourism, Development Opportunities, Festival Season and the Special Projects Category. The TAP awarded $965,128.25 in FY 2005/06, compared to $922,559.50 in FY 2004/05. The increase in awards within the TAP is reflective of additional applicants within the Special Projects Category. The TAP funds helped maintain worthwhile tourism initiatives such as the South Beach Wine & Food Festival, Sunglass Hut Swim Shows Miami presented by L YCRA, Art Basel Miami Beach and supported new events on Miami Beach, such as the South Beach Comedy Festival. Administration and Overhead The VCA's administrative and overhead costs are budgeted at $202,000 for the FY 2006/07. The $202,000 administration and overhead allocation reflects an approximate 12% increase from FY 2005/06. The 12% 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. FY 2006/07 Tourism Advancement Prooram The VCA has budgeted $1,226,780 for FY 2006/07 for its Tourism Advancement Program. This grant funding reflects an approximate 5% increase or, a total of $17,080 from FY 2005/06. 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), New or One Time Special Event, Development Opportunities, Cultural Tourism, Festival Season and Special Projects. The grant application was again reviewed and revised in FY 2006/07. The maximum amount requested was raised to $50,000, from $30,000. In addition, the percentages within the declining scale were revamped and are now also applicable to the Special Projects grant category, creating the Special Projects Recurring grant category. Minimum criterion was further defined for each grant category specifying the requirements in place for hotel room nights, impressions and/or viewership numbers providing a clearer picture of the VCA's grant program eligibility requirements. The grant contract was reviewed and revised making it available in an electronic format for the convenience of the VCA's grant recipients. In addition, the final report, contained within the grant contract, now requires a profit and loss statement to be submitted as part of the final paperwork submitted in order to determine the overall success of the event. In addition, the application now requires written confirmation of hotel room blocks, and letters of media confirmation as application attachments. Destination Marketino This $100,000 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 5th Annual Miami Spice Restaurant Month and position the City of Miami Beach as a destination with excellent restaurants. For FY 2006/07 we budgeted $10,000 for the VCA's Visibility Plan and to enhance the current Marketing plan and any joint promotions/marketing we may do with the GMCVB. Research and Development The VCA expects to support new initiatives in FY 2006/07 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 FY 2006/07 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 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 for FY 2006/07. The $20,000 cash flow reserve reflects a 0% increase from FY 2005/06. 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. FY 2005/06 Rollover A total of $200,000 will be rolled over from FY 2005/06 into the FY 2006/07 VCA budget. This rollover of funds is primarily from the Destination Marketing and Research and Development categories where the total monies allocated were not used during the FY 2005/06. These monies also include grants that were not awarded and/or rescinded. Conclusion It is recommended that the Mayor and Commission should adopt the FY 2006/07 budget in the amount of $1,607,696 as set forth in Exhibit A. T:I Agenda/regular/vcabudgetcommissionmemorandumn05 Miami Beach Visitor and Convention Authority FY 2006/2007 BUDGET FY 05/06 PROPOSED BUDGET FY 06/07 Variance REVENUES Rollover from prior year $ 120,000.00 $ 200,000.00 $ 80,000.00 Resort Tax Revenue $ 1,353,888.00 $ 1,407,696.00 $ 53,808.00 Total Revenues $ 1,473,888.00 $ 1,607,696.00 $ 133,808.00 EXPENDITURES ADMINISTRATION Administration & Benefits $ 145,000.00 $ 159,500.00 $ 14,500.00 Operating Expenses $ 35,000.00 $ 40,000.00 $ 5,000.00 Capital $ 1,500.00 $ 2,500.00 $ 1,000.00 Total Administration $ 181,500.00 $ 202,000.00 $ 20,500.00 GRANTS PROGRAM Tourism Advancement Program Tourism Partnerships $ 90,000.00 $ 90,000.00 $ - Cultural Tourism $ 50,000.00 $ 75,000.00 $ 25,000.00 Major Events $ 147,500.00 $ 150,000.00 $ 2,500.00 Special Events Recurring $ 267,200.00 $ 256,780.00 $ (10,420.00) Development Opportunities $ 60,000.00 $ 60,000.00 $ - Special Projects $ 450,000.00 $ 500,000.00 $ 50,000.00 Festival Season $ 95,000.00 $ 95,000.00 $ - RFP Summer Event Producers $ - $ - $ - Total Tourism Adv. Program $ 1,159,700.00 $ 1,226,780.00 $ 67,080.00 Other Destination Marketing $ 50,000.00 $ 100,000.00 $ 50,000.00 R&D $ 25,688.00 $ 25,000.00 $ (688.00) Initiatives $ 37,000.00 $ 33,916.00 $ (3,084.00) Projected Cash Flow Reserve $ 20,000.00 $ 20,000.00 $ - Total Other $ 132,688.00 $ 178,916.00 $ 46,228.00 TOTAL $ 1,473,888.00 $ 1,607,696.00 $ 133,808.00