2007-26662 ResoRESOLUTION NO. 2007-26662
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
2007/08 BUDGET, IN THE AMOUNT OF $ 1,600,416
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 2007/08, in the amount of $ 1,600,416, 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
2007/08 budget, in the amount of $ 1,600,416.
PASSED AND ADOPTED THIS 26th DAY OF September , 2007.
ATTEST:
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xobert Parcher Matti Herrera Bower ~ FOR EXECUTION
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COMMISSION ITEM SUMMARY
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A resolution adopting and approving the Miami Beach Visitor and Convention Authority (VCA) FY
2007/08 budget in the amount of $1 600,416.
Ke Intended Outcome 5u orted:
Increase community ratings of cultural activities.
Supporting Data (Surveys, Environmental Scan, etc.): According to the 2007 Survey, more cultural
activities is ranked by resident's as one of the changes that will make Miami Beach a better place to live,
work, play or visit; 30% of resident's attend cultural activities a couple time a month or more; and, Tourism
industry appears as a key driver for making Miami Beach a better place to live and contributes to quality of
life.
issue:
Shall the Mayor and Commission approve the Miami Beach Visitor and Convention Authority (VCA) FY
2007/08 budget in the amount of $1,600,416.
Item Summa /Recommendation:
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's budget funds programs and special events designed to
promote the destination.
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 unanimously approved the FY
2007/08 budaet on September 6, 2007.
Financial Information:
Source of Amount Account Approved
Funds: 1 $1,450,416 Resort Tax Revenue
2 $ 150,000 Rollover from prior year
3
4
O Total $1,600,416
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Grisette Roque Marcos
Sian-Offs:
Department Director sl tant City Manager City Manager
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T:WGENDA\2007\sep2607 budget\Regular\MB VCA 2007-2008 Budget Comm Summary.doc
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AGENDA ITEM ~-
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m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor David Dermer and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
~_..
DATE: September 26, 2007
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 2007/08 BUDGET IN THE
AMOUNT OF $1,600,416.
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 aseven-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 2006/07 Review/Tourism Advancement Program
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
that enhance tourist attractiveness. In fiscal year 2006/07, the program allocated funds in
nine categories, including: Tourism Partnerships, Special Events-Recurring, Major One Time
Event, Cultural Tourism, Development Opportunities, Festival Season, Initiatives, Special
Projects and the Special Projects-Recurring Category.
The TAP awarded $1,259,026 in fiscal year 2006/07, compared to $1,015,128 in fiscal year
2005/06. The increase in awards within the TAP is reflective of additional applicants within
the Special Projects Category. The TAP funds helped maintain worthwhile tourism
programs, such as the South Beach Wine & Food Festival and Art Basel Miami Beach.
Page 2 of 3
VCA FY 2007/08 Budget
FY 2007/08 Administration and Overhead
The VCA's administrative and overhead costs are budgeted at $241,500 for the fiscal year
2007/08. The $241,500 administration and overhead allocation reflects an approximate
20% increase from fiscal year 2006/07. The 20% increase is attributed to office relocation,
the rising cost of insurance coverage, retirement plan, medical insurance, standard cost of
living increase, a reclassification of employee salaries and benefits, and the hiring of a
receptionist. This figure is also inclusive of the office space and equipment, and a fully
staffed VCA administrative office.
2007/08 Tourism Advancement Program
The VCA has budgeted $1,228,916 for fiscal year 2007/08 for
Program. This grant funding reflects an approximate 1 % increa;
fiscal year 2006/07. The increase in funds is reflective of an
applicants in the Special Projects category and past grantees wh
developed Special Projects-Recurring Grant Category. The mo
Tourism Advancement Program in nine categories, including: Toy
Events Recurring, Major One Time Event, Development Oppoi
Festival Season, Special Projects, Special Projects Recurring
application was again reviewed and revised for 2007/08. The m
was maintained at $50,000. In addition, the percentages withii
revamped and are now also applicable to the Special Projects c
Special Projects Recurring grant category. Minimum criterion w
grant category specifying the requirements in place for hotel room
viewership numbers providing a clearer picture of the VCA'
requirements. The grant contract was reviewed and revised
electronic format for the convenience of the VCA's grant recip
report, contained within the grant contract, now requires a profi
submitted as part of the final paperwork submitted in order to det
of the event.
is Tourism Advancement
~, or a total of $2,136 from
icrease in the number of
~ will apply under the newly
ies will be awarded in our
rism Partnerships, Special
:unities, Cultural Tourism,
and Initiatives. The grant
iximum amount requested
the declining scale were
'ant category, creating the
is further defined for each
nights, impressions and/or
grant program eligibility
making it available in an
ants. In addition, the final
and loss statement to be
:rmine the overall success
The Special Projects Recurring category is budgeted at $458,916. Anticipated applicants
include Art Basel Miami Beach, Orange Bowl Marketing Campaign, Premios Fox Sports,
South Beach Comedy Festival, Miami Marathon and Half Marathon & Tropical 5k, the South
Beach Wine and Food Festival and the Miami International Film Festival.
In FY 2006/07, the Major One Time Event Category was budgeted at $150,000. In FY
2007/08 the category is funded at $85,000.
The Special Events Recurring Category has been calculated at $320,000 for FY 2007/08
based on the established declining scale and the number of applicants anticipated to return.
Tourism Partnerships has been budgeted for FY 2007/08 at $85,000. The maximum award
for one applicant would be $30,000. Up to three applications are anticipated to be funded.
For FY 2007/08, the Development Opportunities category is budgeted at $50,000. The
maximum award for one applicant is $30,000. Up to two applications are anticipated to be
funded.
Page 3 of 3
VCA FY 2007/08 Budget
Destination Marketing
The destination marketing allocation reflects a 50% decrease from fiscal year 2006/07. This
allocation includes the VCA portion of production costs for the Miami Spice Restaurant
Month Program Banners. The banners add a festive atmosphere and help publicize the 6m
Annual Miami Spice Restaurant Month and position the City of Miami Beach as a destination
with excellent restaurants.
Initiatives
The VCA expects to support new initiatives in FY 2007/08 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 ongoing communications and outreach.
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.
Projected Cash Flow Reserve
The VCA has budgeted $10,000 in the cash flow reserve for fiscal year 2007/08. The
$10,000 cash flow reserve reflects a 50% decrease from FY 2006/07. The City of Miami
Beach allots resort tax payments to the VCA a month after its collection, therefore the VCA
has built in a $10,000 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 2006/07 Rollover
A total of $150,000 will be rolled over from FY 2006/07 into the 2007/08 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 2006/07 fiscal year.
These monies also include grants that were not awarded and/or rescinded.
CONCLUSION
It is recommended that the Mayor and Commission should adopt the 2007/08 budget in the
amount of $1,600,416 as set forth in Exhibit A.
Miami Beach Visitor and Convention Authority
FY 2007/08
BUDGET
FY 06/07
PROPOSED BUDGET
FY 07/08
Variance
REVENUES
Rollover from prior year $ 200,000.00 $ 150,000.00 $ (50,000.00)
Resort Tax Revenue $ 1,407,696.00 $ 1,450,416.00 $ 42,720.00
Total Revenues $ 1,607,696.00 $ 1,600,416.00 $ (7,280.00)
EXPENDITURES
ADMINISTRATION
Administration & Benefits $ 159,500.00 $ 179,500.00 $ 20,000.00
Operating Expenses $ 40,000.00 $ 57,000.00 $ 17,000.00
Capital $ 2,500.00 $ 5,000.00 $ 2,500.00
Total Administration $ 202,000.00 $ 241,500.00 $ 39,500.00
GRANTS PROGRAM
Tourism Advancement Program
Tourism Partnerships $ 90,000.00 $ 85,000.00 $ (5,000.00)
Cultural Tourism $ 75,000.00 $ 45,000.00 $ (30,000.00)
Major Events $ 150,000.00 $ 85,000.00 $ (65,000.00)
Special Events Recurring $ 256,780.00 $ 320,000.00 $ 63,220.00
Development Opportunities $ 60,000.00 $ 50,000.00 $ (10,000.00)
Special Projects $ 500,000.00 $ 135,000.00 $ (365,000.00)
Special Projects Recurring $ - $ 458,916.00 $ 458,916.00
Festival Season $ 95,000.00 $ 50,000.00 $ (45,000.00)
Total Tourism Adv. Program $ 1,226,780.00 $ 1,228,916.00 $ 2,136.00
Other
Destination Marketing $ 100,000.00 $ 50,000.00 $ (50,000.00)
R&D $ 25,000.00 $ 10,000.00 $ (15,000.00)
Initiatives $ 33,916.00 $ 60,000.00 $ 26,084.00
Projected Cash Flow Reserve $ 20,000.00 $ 10,000.00 $ (10,000.00)
Total Other $ 178,916.00 $ 130,000.00 $ (48,916.00)
TOTAL $ 1,607,696.00 $ 1,600,416.00 $ (7,280.00)