2008-26901 ResoRESOLUTION NO. 2008-26901
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2008/09 BUDGETS
FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET
PARKING GARAGE OPERATIONS; 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 7t" Street and Collins
Avenue (the 7th Street Parking Garage) provides funding for operating expenses, debt service,
and a reserve for replacement; 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 security personnel at 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 FY 2008/09 budgets for Special Revenue Funds as listed below:
SPECIAL REVENUE APPROPRIATIONS FY 2008/09
Resort Tax $ 39,403,200
7th Street Garage 2,050,000
State Major Cultural Institution Grant-Bass Museum 23,596
Total $ 41,476,796
PASSED and ADOPTED this 17th day of September, 2008.
M OR
AT EST BY:
C~
CITY CLERK
Robert Parcher
Matti Herrera Bower
APPROVED AS TO
FORM $ LANGUAGE
COMMISSION ITEM SUMMARY
Condensed Title:
A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida, adopting the Fiscal
', Year (FY) 2008/09 budgets for Special Revenue funds for Resort Tax; 7th Street Garage Operations; 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 Communi Satisfaction with Cit 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 ke areas of focus.
Issue:
Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2008/09 budgets
for Special Revenue funds for Resort Tax; 7th Street Garage Operations; and the State Major Cultural
Institution Grant for the Bass Museum?
Item Summary/Recommendation:
The Administration recommends adopting the attached resolution which adopts the FY 2008/09 budgets
for Special Revenue funds for Resort Tax; 7th Street Garage Operations; and the State Major Cultural
Institution Grant for the Bass Museum.
Adviso Board Recommendation:
Financial Information:
Source of Amount Account Approved
Funds: ~
$39,403,200 Resort Tax
2
2,050,000 7th Street Gara e O erations
3
23,596 State Grant for Bass Museum
4
OBPI Tota[
$41,476,796
City Clerk's Office Legislative Tracking:
Department Direc~or I Assistant City Manager ~ City Manager
~- ~ _
~~ ~ ~ ~~ ~ AGERJDADATE ()
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miomi Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez
City Manager
DATE: September 17, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2008/09 BUDGETS
FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET
PARKING GARAGE OPERATIONS; 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 - $39,403,200
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 approximately $1 million.
City Commission Memorandum
Resolution Adopting FY 2008/09 Special Revenue Budgets
September 17, 2008
Page 2
The allocation to the General Fund for Fiscal Year 2008/09 of approximately $21.9 million pays
for tourist related services and costs provided or managed by General Fund Departments. This
funding supports public safety programs including our ocean rescue, 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 2008/09 budget also includes an allocation to the Greater Miami Convention
and Visitors Bureau (GMCVB) of approximately $5.63 million, $1.53 million for debt service,
$1.53 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 $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 - $2,050,000
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.
Operating Expenses
Debt Service
Reserve for Replacement
Total
$ 1,182,623
789,826
77,551
$ 2,050,000
City Commission Memorandum
Resolution Adopting FY 2008/09 Special Revenue Budgets
September 17, 2008
Page 3
State Major Cultural Institution Grant for the Bass Museum of Art - $23,596
Third year of a four-year grant from the State of Florida Division of Cultural Affairs to provide
security personnel.
CONCLUSION
The attached Resolution adopting funding for FY 2008/09 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'
PROPOSED FISCAL YEAR 2008/09 RESORT TAX FUND BUDGET
"ATTACHMENT A"
FY 07/08 Budget FY 07108 Proj Inc/(Dec) FY 08!09 Budget Budget Variance
2% Revenues:
Resort Tax $ 30,217,000 $ 30,700,000 $ 483,000 $ 31,817,000 $ 1,600,000
Special Assessment-North Shore 255,600 300,000 44,400 255,600 0
Special Assessment-Lincoln Road 151,600 520,000 368,400 151,600 0
Interest Income 190,000 180,000 (10,000) 165,000 (25,000)
Registration Fees 7,000 5,800 (1,200) 3,000 (4,000)
Total 2% Revenue $ 30,821,200 $ 31,705,800 $ 884,600 $ 32,392,200 $ 1,571,000
2% Expenditures:
Personnel Costs:
Salaries & Wages $ 159,343 $ 159,343 $ 0 $ 175,061 $ 15,718
Health, Life & Dental Insurance 10,199 10,199 0 11,219 1,020
Pension Contributions & Other Benefits 67,542 67,542 0 62,515 (5,027)
Total Personnel Costs $ 237,084 $ 237,084 $ 0 $ 248,795 $ 11,711
Operating Costs:
Professional Services $ 10,000 $ 10,000 $ 0 $ 10,000 $ 0
Intemal Audit/Resort Tax Auditors' Expenditures 671,481 670,633 (848) 693,057 21,576
Telephone 1,500 1,500 0 1,500 0
Postage 500 500 0 500 0
Administrative Fees 26,450 26,450 0 26,450 0
Rent-Building & Equipment 3,600 3,600 0 3,600 0
Printing 100 100 0 100 0
Office Supplies 750 750 0 750 0
Other Operating Expenditures 1,000 1,000 0 1,000 0
Local Mileage 50 50 0 50 0
Training 1,000 1,000 0 1,000 0
Internal Service -Central Service 13,570 13,570 0 13,570 0
Internal Service -Property Management 9,335 9,335 0 9,736 401
Internal Service -Communications 4,280 4,280 0 4,738 458
Intemal Service -Self Insurance 13,640 13,640 0 14,966 1,326
Internal Service - Computers 10,327 10,327 0 11,132 805
Internal Service -Prop. Management/Electrical 3,073 3,073 0 2,956 (117)
Total Operating Costs $ 770,656 $ 769,808 $ (848) $ 795,105 $ 24,449
Total 2% Operating Expenditures $ 1,007,740 $ 1,006,892 $ 1848) $ 1,043,900 $ 36,160
2% Other Uses:
Contribution to VCA $ 1,450,416 $ 1,473,600 $ 23,184 $ 1,527,216 $ 76,800
Contribution to Bureau 5,463,635 5,463,635 0 5,627,544 163,909
Marketing 400,000 400,000 0 400,000 0
Debt Service -North Shore 975,100 975,100 0 975,100 0
Debt Service -Gulf Breeze 553,000 553,000 0 553,000 0
Contingency 275,000 275,000 0 400,000 125,000
General Fund Contribution 20,696,309 20,696,309 0 21,865,440 1,169,131
Total2%OtherUses $ 29,813,460 $ 29,836,644 $ 23,184 $ 31,348,300 $ 1,534,840
Net 2% $ 0 $ 862,264 $ 862,264 $ 0 $ 0
1% Revenues:
Resort Tax $ 6,411,000 $ 6,500,000 $ 89,000 $ 7,011,000 $ 600,000
Total 1% Revenue $ 6,411,000 $ 6,500,000 $ 89,000 $ 7,011,000 $ 600,000
1% Expenditures:
Other Designated Expenditures
South Beach -Quality of Life Capital $ 801,375 $ 812,500 $ 11,125 $ 876,375 $ 75,000
Middle Beach -Quality of Life Capital 801,375 812,500 11,125 876,375 75,000
North Beach -Quality of Life Capital 801,375 812,500 11,125 876,375 75,000
Arts 801,375 812,500 11,125 876,375 75,000
Total 1 % Other Uses $ 3,205,500 $ 3,250,000 $ 44,500 $ 3,505,500 $ 300,000
Debt Service - TIF Bonds $ 3,205,500 $ 3,250,000 $ 44,500 $ 3,505,500 $ 300,000
Total1%Expenditures $ 6,411,000 $ 6,500,000 $ 89,000 $ 7,011,000 $ 600,000
Net 1% $ 0 $ 0 $ 0 $ 0 $ 0
Total Resort Tax Revenues:
Total Resort Tax Expenditures:
Net
$ 37,232,200 $ 38,205,800 $ 973,600 $ 39,403,200 $ 2,171,000
$ 37,232,200 $ 37,343,536 $ 111,336 $ 39,403,200 $ 2,171,000
$ 0 $ 862,264 $ 862,264 $ 0 $ (0)