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2008-26905 ResoRESOLUTION NO. 2008-26905 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 2008109 BUDGET IN THE AMOUNT OF $1,041,175. 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 $1,041,175 budget allocation for Fiscal Year 2008/09 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 2008/09 budget, in the amount of $1,041,175. PASSED and ADOPTED THIS 17th ATTE T: CITY CLERK Robert Parcher day of September 2008. MAYOR Matti Herrera Bower T:\AGENDA\2008\September 17\CAC Budget Memo and Resolution 0809.doc APPROVED AS TO FORM ~ LANGUAGE ~ FQR EXECUTION COMMISSION ITEM SUMMARY f _nnrloncorl Ti+la• 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 2008/09 budget in the amount of $1,041,175. Bey Intenaea outcome auppvr[ea: Increase community rating 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. Icsup~ Shall the City adopt the Miami Beach Cultural Arts Council's Fiscal Year 2008/09 budget in the amount of $1,041,175? Item Summary/Recommendation: The Cultural Arts Council (CAC) 2008/09 Budget is allocated as follows: ', Cultural Arts Grant Programs -The CAC's annual grants program represents 61 % of their annual 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% of their budget, which equals $92,858. Cultural Endowment -The CAC's budget does not include a contribution towards the City's Cultural Endowment for Fiscal Year 2008/09 due to budget constraints. Administration -Administrative and operating expenses represent 30% of the CAC's annual budget or $318,317. 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 May 1, 2008. Financial Information: Source of Amount Account Approved Funds: 1 $1,041,175 140.6080 Cultural Arts Council Fund 2 OBPI Total Financial Impact Summary: Ci Clerk's Office Le islative Trackin Max A. Sklar Si n-Offs• Department Director ,A~istant City Manager _ City Manager l~'1 I AM I B EAR H AGENDA ITEM DATE m MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor Matti Herrera Bower and Members of the City Commission FROnn: 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 THE MIAMI BEACH CULTURAL ARTS COUNCIL'S FISCAL YEAR 2008/09 BUDGET IN THE AMOUNT OF $1,041,175 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. 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 to 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. Cultural Arts Grants The City Administration is recommending grants to 39not-for-profit organizations for cultural events in Miami Beach between October 1, 2008 and September 30, 2009. The CAC's recommended annual budget for grants is $630,000, or approximately 61 % 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 $60,000 and the CAC provided $40,000 to fund this program. The grant awards range from $5,000 to $27,910. A total of $970,000 was requested by 50 grant applicants this year. There is a corresponding item in today's agenda detailing the recommended awards for Fiscal Year 2008/09. - CAC Budget FY 2008/09 Page 2 of 2 Marketing This year, the CAC has recommended allocating $92,858, approximately 9% of its annual budget, to be utilized to promote the City of Miami Beach as the region's preeminent cultural destination. 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 2008/09. Endowment From 1998 through 2001 the City contributed $200,000 towards the CAC's Cultural Endowment, which represented 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, which represented 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. Last year, however, due to significant decreases in interest income and property tax cuts, the City did not contribute towards the CAC's Cultural Endowment, and the City Administration is recommending against a contribution in 2008/09. Administration The CAC's annual budget also includes $318,317, or 30%, to be utilized for administrative and operating expenses. This includes salaries and benefits for two full-time employees, professional services, operating accounts supporting the CAC's programs and City internal service charges. The CAC Administrative budget also includes an allocation of $75,000 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. Programming in 2007/08 brought these programs to Biscayne Elementary, Fienberg-Fisher Elementary, Flamingo Park, Nautilus Middle School, Raindrop Center, Scott Rakow Park, St. Patrick's and Temple Menorah Early Childhood Centers. This program receives supplemental funding of $30,000 from the Tourism & Cultural Development General Fund Budget, which brings the program total to $105,000. CONCLUSION The Mayor and City Commission should adopt the Miami Beach Cultural Arts Council's Fiscal Year 2008/09 budget in the amount of $1,041,175. JMG/HF/MAS/GF/MH T:WGENDA\2008\September 17\CAC Budget Memo and Resolution 0809 (2).doc CAC - FY 2008/09 BUDGET REQUEST (140-6080) REVENUES GMCVB Interest Resort Tax Quality of Life Adopted Budget FY 2007/08 $50,000 50,000 152,000 793,372 Total $1,045,372 EXPENDITURES Salaries Pension -.City Contribution Insurance Other Fringe Benefits Professional Services Operating Expenses Internal Services Total Marketing Endowment Grants Total $138,628 10,567 6,735 2,300 98,000 15,839 43,358 $315,427 $99,945 0 630,000 $729,945 Budget Request FY 2008/09 $50,000 37-,800 152,000 801,375 $1.041.175 $140,304 10,567 7,409 2,300 98,000 16,379 43,358 $318.317 $92,858 0 630,000 Variance Req 2009/ Bud 08 $0 (12,200) 0 8,003 $4,197 $1,676 0 674 0 0 540 0 $2,890 (7,087) 0 0 $7,087 TOTAL EXPENDITURES $1,045,372 $1,041,175 $4,197 Sur lus/ Deficit $0 $0 $0 Budgeted Positions 2 2 0