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2007-26660 ResoRESOLUTION NO. 2007-266~~0 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE MIAMI BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2007/08 BUDGET IN THE AMOUNT OF $1,045,372. WHEREAS, the Miami Beach Cultural Arts Council (CAC) was established by the Mayor and City Commission on March 5, 1997; and WHEREAS, the mission of the CAC is to develop, coordinate, and promote the visual and performing arts in the City of Miami Beach for the enjoyment, education, cultural enrichment and benefit of the residents of, and visitors to, Miami Beach; and WHEREAS, the Mayor and City Commission adopted the Cultural Arts Master Plan on June 3, 1998, identifying the following program areas for the CAC: cultural arts grants; marketing; facilities; advocacy and planning; and revenue development; and WHEREAS, pursuant to its enabling legislation, the CAC's budget for each fiscal year shall be adopted by the Mayor and City Commission; and WHEREAS, accordingly, the CAC recommends a $1,045,372, budget allocation for Fiscal Year 2007/08 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 hereby adopt the Miami Beach Cultural Arts Council's Fiscal Year 2007/08 budget, in the amount of $1,045,372. PASSED and ADOPTED THIS 26th day of Se~ember _ 2007. "~~ p~a~ Robert Parcher ~~ `~ David Dermer CITY CLERK MAYOR T:WGENDA12007\sep2607 budget\Regular\CAC Budget Memo and Resolution 0708.doc APPROVED AS TO FORM & LANGUAGE COMMISSION ITEM SUMMARY Cnnr~ensed Title' A resolution of the Mayor and City Commission of the City of Miami Beach, Florida, adopting the Miami Beach Cultural Arts Council's Fiscal Year 2007/08 budget in the amount of $1,045,372. Key Intended Outcome Supported: Increase community rating of cultural activities. Supporting Data (Surveys, Environmental Scan, etc.): The City's Vision strives to ensure that Miami Beach maintains itself as a culture, entertainment and tourism capital. 60% of businesses and 66% of residents now say there is the right number of cultural activities in the City. Issue: Shall the City adopt the Miami Beach Cultural Arts Council's Fiscal Year 2007/08 budget in the amount of $1,045,372? Item Summary/Kecommenaation: The Cultural Arts Council (CAC) 2007/08 Budget is allocated as follows: ', Cultural Arts Grant Programs -The CAC's annual grants program represents 60% of their annual i budget, which equals $630,000. A companion item is included in today's agenda that provides additional information on the grants process and the recommended awards. Marketing -Utilized to promote the City of Miami Beach as the region's preeminent cultural destination and help market the programs of the City's constituent arts groups. This represents 9.5% of their budget, which equals $99,945. Cultural Endowment -The CAC's budget does not include a contribution towards the City's Cultural Endowment for Fiscal Year 2007/08 due to budget constraints. Administration -Administrative and operating expenses represent 30% of the CAC's annual budget or $315,427. The administrative budget includes an allocation of $75,000 for acurriculum-based arts education program for City of Miami Beach Schools, in partnership with Arts for Learning/Miami. It is recommended that the City Commission adopt the budget as indicated. Advisory Board Recommendation: The Cultural Arts Council approved the proposed budget at their meeting on July 6, 2007. Financial Information: Source of Amount' Account Approved Funds: 1 $1,045,372 140.6080 Cultural Arts Council Fund 2 3 4 OBPI Total Financial Impact Summary: Cit Clerk's Office Le islative Trackin Max A. Sklar, Tourism and Cultural Development Department Director ~~ ~~- ~ AGENQA ITEM R?~ ~ ~ ~ DATE ~~~ -~7 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 MAYO AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING THE MIAMI BEACH CULTURALARTS COUNCIL'S FISCAL YEAR 2007/08 BUDGET IN THE AMOUNT OF $1,045,372. ADMINISTRATION RECOMMENDATION Adopt the Resolution. ANALYSIS The Cultural Arts Council's (CAC) mission is to develop, coordinate, and promote the visual and performing arts in Miami Beach for the enjoyment, education, cultural enrichment, and benefit of residents and visitors. In 1997, the original nine-member volunteer board conducted town meetings with arts groups to evaluate their needs. It then developed a cultural arts master plan identifying programs to assist local arts groups: grants, marketing, facilities, revenue development, and advocacy/planning. The Mayor and City Commission adopted the master plan on June 3, 1998. Since that time the City has awarded in excess of $5 million in cultural arts grants, supporting thousands of performances, exhibits, and other cultural activities in Miami Beach. The CAC continually evaluates its programs and effectiveness based on comments from its constituent arts groups, advisers, grants panelists, community groups, elected officials, City administrators, and others. The positive economic impact of the City's cultural efforts is evident throughout the community as is its effect on our quality of life. Revenue In Fiscal Year 2004/05, the City Commission authorized equally allocating 50% of the 1 Resort Tax to North Beach, Middle Beach, and South Beach, and Tourism & Cultural Development for Cultural Affairs This commitment of funding for arts and culture provided a new permanent funding source that sustains cultural programming long term. This year Quality of Life funding increased by more that $22,000 to $793,372. This accounts for more than 75% of the revenue for the Cultural Arts Council. Additionally, the City was able to allocate an additional $50,000 in interest earned from the Convention Development Tax revenue; this funding was originally projected to cease to exist. The additional funding assisted the City and the CAC in increasing available funding for the cultural grants program, thus allowing additional grant awards. Cultural Arts Grants The City Administration is recommending grants to 36 not-for-profit organizations for cultural events in Miami Beach between October 1, 2007 and September 30, 2008. This recommendation mirrors the CAC's. The CAC's recommended annual budget for grants is $630,000, or approximately 60%, of the total CAC budget. Additionally, the CAC partnered with the VCA for Cultural Tourism grants that support cultural events with documented tourism benefits. The VCA provided $45,000 and the CAC provided $35,000 to fund this program. The grant awards range from $10,000 to $35,000. A total of $1,130,000 was requested by 61 grant applicants in all categories this year. Marketing This year, the CAC has recommended $99,945, 9.5% of its annual budget, to be utilized to promote the City of Miami Beach as the region's preeminent cultural destination, as well as the programming offered by our grantees. Last year's efforts continued the momentum initially generated by the marketing initiative from FY 2004/05, developed by the CAC's Marketing and Communications Task Force to better promote the arts in our community and market the programs of the City's constituent arts groups. The CAC will use these funds to further cultural marketing efforts for Fiscal Year 2007/08. Endowment From 1998 through 2001 the City contributed $200,000 towards the CAC's Cultural Endowment, or 8% of the CAC's annual budget. In fiscal years 2001/02 and 2002/03, due to a decrease in funding sources, the City contributed $160,000, 15% of the CAC's annual budget. Due to significant decreases in resort tax revenue and interest income, the City did not contribute to the CAC's Cultural Endowment for 2003/04. However, in fiscal years 2004/05, 2005/06 and 2006/07, the City contributed $100,000 each year. By the end of Fiscal Year 2006/07, the Cultural Endowment totaled $1,220,000. This year however, due to significant decreases in interest income and property tax cuts, the City will not contribute towards the CAC's Cultural Endowment. Administration The CAC's annual budget also includes $315,427, or 30%, to be utilized for administrative and operating expenses. This includes an allocation of $75,000 from its Administration budget to continue and strengthen curriculum-based arts education programs in the City of Miami Beach Schools. The City partnered with Arts for Learning/Miami to implement these programs in 2005/06. The programs are designed to increase arts and cultural activities for Beach artists, youth and their families at City facilities and within the City schools. An established evaluative process and constant feedback assist the Cultural Affairs Program in monitoring the high quality and continued success of the programs. Expanded programming in 2006/07 brought these programs for the first time to all Miami Beach feeder-pattern schools, as well as to eight pre-schools and two Miami Beach parks. This includes salaries and benefits for two full-time employees, professional services, operating accounts supporting the CAC's programs, capital, and City internal service charges. CONCLUSION The CAC reviewed the attached budget at their June, July and September council meetings and recommended in favor of adopting the budget as proposed in the Exhibit A. The Mayor and City Commission should adopt the Miami Beach Cultural Arts Council's Fiscal Year 2007/08 budget in the amount of $1,045,372. JMG/HF/MAS/GF/RB T:\AGENDA\2007\sep2607 budgetV2egular\CAC Budget Memo and Resolution 0708.doc H m W n C O O C4 ~L ~ m O ~ ti O +' ~ N lL p d V C R .~ ~ d O W ~ V C6 ~. 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