2007-26655 ResoRESOLUTION NO. 2007-26655
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2007/08 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.
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, 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 a reduced millage of 0.1382 in FY 2007/08 will generate $234,435
which must be spent within the South Pointe Area, in FY 2006/07 the Capital Renewal and
Replacement millage of 0.182 generated $258,990; 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 2007/08 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-Bass Museum
Total
PASSED and ADOPTED this 26th day of
ATTEST BY:
~~
CITY CLERK
Robert Parcher
FY 2007/08
$37,232,200
1,995,000
234,435
61,951
$39,523,586
YOR
Dermer APPROVED AS TO
FORM & LANGUAGE
FOR CUTION
~I
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting the Fiscal
Year 2007/08 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.
(ey Intended outcome supported:
Ensure expenditure trends are sustainable over the long term
Improve the City's overall financial Health and maintain overall bond rating
Increase Community Satisfaction with City Services
Supporting Data (Surveys, Environmental Scan, etc.): Based on the 2007 community survey, quality of
life in the City is rated highly, the City is seen as an `excellent' or'good' place to live, work, play or visit (and
majority feel it's getting better) over 3/,'s of residents would recommend it to others as a place to live; and
dramatic improvements in business ratings were seen across several areas. Safety and traffic are one of
the most important areas affecting quality of life. Parking and availability of family-friendly cultural
activities were items identified as key areas of focus. The City's performance target for well-maintained
facilities is to have a Facility Condition Index of .1 or better, i.e. the value of required maintenance for a
facility should be equal to or less than .1 (or 10%) of the current replacement value of the facility. The
South Pointe Capital Renewal and Replacement helps the City to achieve this index.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which adopts the Fiscal Year 2007/08
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.
Item Summary/Recommendation:
The Administration recommends adopting the attached resolution which adopts the Fiscal Year 2007/08
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.
Adviso Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: ~
$37,232,200
Resort Tax
2
1,995,000
7th Street Gara e O erations
'~ 3
234,435 South Pointe Capital
Renewal and Re lacement
4
61,951
State Grant for Bass Museum
OBPI Tota'I
$39,523,586
Financial Impact Summary:
Cit Clerk's Office Le islative Trackin
Si n-Offs:
Department Director Ass slant City Manager _ City Manager
~~ ~ ~~ ~-G~wr~n ITEM R~ E
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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 FISCAL YEAR (FY) 2007/08 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
ANALYSIS
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 - $37,232,200
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 six (6) positions and associated operating support
totaling $1 million.
City Commission Memorandum
Resolution Adopting FY 2007/08 Special Revenue Budgets
September 26, 2007
Page 2
The allocation to the General Fund for Fiscal Year 2007/08 of approximately $20.7 million pays
for tourist related services and costs provided or managed by General Fund Departments. This
funding supports 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. The funding also supports
code compliance services to respond to evening entertainment areas and for special events;
provides for a portion of the operational costs of the Tourism and Cultural Development
Department; and provides a contribution to the Cultural Arts Council beyond their annual
interest allocation from the investment of City funds.
The Fiscal Year 2007/08 budget also includes an allocation to the Greater Miami Convention
and Visitors Bureau (GMCVB) of approximately $5.46 million, $1.53 million for debt service,
$1.45 million to the Miami Beach Visitor and Convention Center (VCA), $400,000 for a local
Miami Beach marketing campaign, to be augmented with funds from the GMCVB, the VCA, and
the Cultural Arts Council (CAC), and a $275,000 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.
7t" Street Garage - $1,995,000
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
Operating Expenses
Debt Service
Reserve for Replacement
AMOUNT
$1,201,003
789,972
4,025
Total $1,995,000
City Commission Memorandum
Resolution Adopting FY 2007/08 Special Revenue Budgets
September 26, 2007
Page 3
South Pointe Capital Renewal and Replacement - $234,435
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, fifty percent (50%) of the City's portion of the tax increment revenue
associated with a reduced millage of 0.1382 in FY 2007/08 will generate $234,435 which must
be spent within the South Pointe Area. In FY 2006/07 the Capital Renewal and Replacement
millage of 0.182 generated $258,990.
State Major Cultural Institution Grant for the Bass Museum of Art - $61,951
Second year of a four-year grant from the State of Florida Division of Cultural Affairs to provide
security personnel and other operating support for the facility.
CONCLUSION
The attached Resolution adopting funding for FY 2007/08 budgets from these sources is vital to
the continuation of these projects and activities provided by the City.
JMG:KGB:JC
CITY OF MIAMI BEQ~CH, FLORIDA
PROPOSED FY 2007/U8 RESORT TAX FUND BUDGET
"ATTACHMENT A"
2% 1 % Total
Revenues:
Resort Tax $ 30,217,000 $ 6,411,000 $ 36,628,000
Special Assessment-North Shore 255,600 255,600
Special Assessment-Lincoln Road 151,600 151,600
Interest Income 190,000 190,000
Registration Fees 7,000 7,000
Retained Earnings 0 0
Total Revenue $ 30,821,200 $ 6,411,000 $ 37,232,200
Expenditures:
Personnel Costs:
Salaries & Wages $ 159,343 $ 0 $ 159,343
Health, Life & Dental Insurance 10,199 10,199
Pension Contributions & Other Benefits 67,542 67,542
Total Personnel Costs $ 237,084 $ 0 $ 237,084
,O~eratinp Costs:
Professional Services $ 10,000 $ 0 $ 10,000
InternalAudit/ResortTaxAuditors'Expenditures 671,480 671,480
Telephone 1,500 1,500
Postage 500 500
Administrative Fees 26,450 26,450
Rent-Building & Equipment 3,600 3,600
Printing 100 100
Office Supplies 750 750
Other Operating Expenditures 1,000 1,000
Local Mileage 50 50
Training 1,000 1,000
Internal Service -Central Service 13,570 13,570
Internal Service -Property Management 9,335 9,335
Internal Service -Communications 4,280 4,280
Internal Service -Self Insurance 13,640 13,640
Internal Service - Computers 10,327 10,327
Intemal Service -Prop. Management/Electrical 3,073 3,073
Total Operating Costs $ 770,655 $ 0 $ 770,655
Total Operating Expenditures $ 1,007,739 $ 0 $ 1,007,739
Other Uses:
Contribution to VCA $ 1,450,416 $ 0 $ 1,450,416
Contribution to Bureau 5,463,635 5,463,635
Marketing 400,000 400,000
Excise Tax Bonds 0 0
Other Designated Expenditures 3,205,500 3,205,500
Debt Service:
North Shore 975,100 975,100
Gulf Breeze 553,000 553,000
TIF Bonds 3,205,500 3,205,500
Contingency 275,000 275,000
General Fund Contribution 20,696,310 20,696,310
Total Other Uses $ 29,813,461 $ 6,411,000 $ 36,224,461
Net $ (0) $ (0) $ (0)
Explanation of Other Designated Expenditures:
South Beach -Quality of Life Capital
Middle Beach -Quality of Life Capital
North Beach -Quality of Life Capital
Arts
Total
$ 0 $ 801,375 $ 801,375
801,375 801,375
801,375 801,375
801,375 801,375
$ 0 $ 3,205,500 $ 3,205,500