RDA City Center Redevelopment Area revenue sources for FY 2022 include City and County Tax Increment funds, estimated interest income, and use of prior year excess RDA Trust Fund revenues in accordance with the Fourth Amendment to the Interlocal Agreement between the City and Miami-Dade County.
RDA City Center Redevelopment Area expenditures for FY 2022 include community policing initiatives to provide enhanced levels of staffing and services throughout the area and capital projects maintenance for repairs and maintenance of existing capital assets in the City Center Redevelopment Area. In addition, the FY 2022 budget includes administrative expenditures that are comprised of a management fee allocated to the General Fund to pay for indirect staff support provided to the RDA, annual audit fees, and chargebacks for internal service department services provided.
The RDA City Center Redevelopment Area budget also includes the annual debt service related to the issuance of the 2015 Convention Center bonds. On December 15, 2015, the RDA issued $286,245,000 in Tax Increment Revenue and Revenue Refunding Bonds, Series 2015A, and $35,850,000 in Tax Increment Revenue Refunding Bonds, Taxable Series 2015B, which financed certain costs associated with the renovation and expansion of the Miami Beach Convention Center.
Other line-item expenditures budgeted in FY 2022 include items that, pursuant to the existing Bond Covenants, may only be expended once the annual debt service obligations have been met. These include a transfer to the Miami Beach Convention Center Fund, Miami-Dade County’s administrative fees, which are equivalent to 1.5% of its respective tax increment financing ("TIF") payment, and the corresponding contribution to the City’s General Fund, which is equivalent to 1.5% of the City’s share of its TIF payment.
PROPOSED AMENDMENTS TO THE RDA CITY CENTER OPERATING BUDGET
Convention Center Settlement Agreement
On January 20, 2022, Miami Beach City Commission Resolution No. 2022-32014 and Miami Beach Redevelopment Agency Resolution No. 666-220 approved the Fifth Amendment to the City Center RDA lnterlocal Agreement. On March 15, 2022, Miami-Dade Board of County Commissioners Resolution No. R-256-22 approved the Fifth Amendment to the City Center RDA lnterlocal Agreement.
The Fifth Amendment provided for the City to access $27.1 million of excess RDA Trust Fund revenues to fund or reimburse the City for payments related to the Miami Beach Convention Center Project Final Settlement Agreement, which was approved by the Miami Beach City Commission on September 30, 2021, through Resolution No. 2021-31870.
This proposed amendment is a year-end “clean-up” item to appropriate the $27.1 million of excess RDA Trust Fund revenues in the City Center RDA operating budget that was previously approved by the City Commission, the RDA, and the County for the Miami Beach Convention Center Project Final Settlement Agreement during FY 2022. In an effort for the Administration to minimize the number of mid-year budget amendments for the RDA, the appropriation of these funds in accordance with the Fifth Amendment to the RDA Interlocal Agreement that was previously approved during FY 2022 was deferred to year-end.
Carryforwards from FY 2022 to FY 2023
The preliminary year-end analysis based on the proposed realignment of funding budgeted between the various departments with funding in the City Center RDA for FY 2022 reflects that the City Center Redevelopment Area revenues totaled approximately $54.2 million while total expenditures were $52.4 million resulting in a projected surplus of approximately $1.8 million. The Administration is recommending that $68,000 be carried forward into FY 2023 to fund goods and/or services that were procured in FY 2022, but not received and/or rendered due to timing issues between fiscal years. Similarly, the Administration is recommending that $288,000 be carried forward into FY 2023 for projects and equipment that were originally budgeted in FY 2022, but not completed and/or received in FY 2022 due to supply chain issues. The remaining projected FY 2022 surplus would be set aside to retire the outstanding debt issued in 2015 for the Convention Center renovation and expansion project as required pursuant to the Third Amendment to the Interlocal Agreement between the City and Miami-Dade County.
PROPOSED AMENDMENTS TO THE ANCHOR SHOPS AND PARKING GARAGE OPERATING BUDGETS
The revenues and expenditures associated with the operations of the City Center Redevelopment Area Garages and Shops are presented as separate schedules in order to eliminate any perception that the proceeds from these facilities’ operations are comingled with TIF and other City Center Trust Fund revenues.
Capital Project Needs
As part of the FY 2023 Capital Budget process, the City Administration identified several necessary capital renewal and replacement projects at the Pennsylvania Avenue Garage that required funding totaling $435,000 to be completed. Based on FY 2022 projections, approximately $307,000 is available in the Pennsylvania Avenue Garage Fund (467) resulting in approximately $128,000 needed to fully fund these capital project needs. These projects consist of the fire sprinkler system renewal ($300,000), replacement of the fire pump ($100,000), and the fire alarm system ($35,000).
This proposed amendment is to appropriate $128,000 from the Anchor Garage Fund (463) fund balance to be transferred to the Pennsylvania Avenue Garage Fund (467) to fund these capital project needs at the Pennsylvania Avenue Garage.
PROPOSED AMENDMENTS TO THE PENNSYLVANIA AVENUE SHOPS AND PARKING GARAGE OPERATING BUDGETS
Carryforwards
The preliminary year-end analysis for the FY 2022 Pennsylvania Avenue Shops operating budget reflects that there are projects and equipment estimated at $31,000 that were budgeted in FY 2022 that were not completed and/or received in FY 2022 that the Administration is recommending be carried forward into the FY 2023 Pennsylvania Avenue Shops operating budget.