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HomeMy WebLinkAboutLetterMiami Parking Authority September 24, 2009 Honorable Mayor and Members of the City Commission: Arthur Noriega, V. Executive Director 190 N.E. Third Street Miami, Florida 33132 Phone (305) 373-6789 Fax (305) 371-9451 www.miamiparking.com Fiscal Year 2008-2009 has been a successful year for Miami Parking Authority (MPA). We have realized growth in this universally challenging period and we continue to fulfill our mission to meet the City of Miami's parking needs. Accomplishments During the Past Year The Authority's accomplishments in fiscal year 2008-2009 are centered on the following: Continued deployment of the latest parking technology with multi -space meters, electronic single space meters and pay -by -phone service. Continue to explore joint venture opportunities with public and private partners in Downtown, the Design District and Health District and Coconut Grove. Furthered our efforts to expand the parking inventory within the City by regulating areas of increasing demand. The specific accomplishments included the following: Expanded "Pay by Phone" customer payment amenity that adds an additional payment option for our customers. The system makes paying for parking as simple as a 15 second phone call. Upgraded all of our Pay and Display (P&D) machines with enhanced dollar bill acceptors. This technology increases the machine's reliability and allows our customers to pay with cash, coins, debit or credit card. Completed the upgrade of 5,500 single space meters with new electronic mechanisms which allows for expanded reporting and audit functionality. Continued growth of residential parking permit zones. This program enhances the residents' quality of life by providing designated parking areas solely for their use. Continued and nearly completed the construction of the Courthouse Center Garage. This 852 space garage garage is located across the street from the new Federal Courthouse and will contain approximately 4,000 square feet of retail space and approximately 40,800 square feet of office space. Continued to promote the City-wide MVP Program to protect City of Miami residents from hurricanes and other major weather disturbances. The program was the recipient of the International Parking Institute's 2006 Award For Excellence. Continued our management relationship with the Public Health Trust of Miami - Dade County whereby MPA manages over 7,000 parking spaces for the PHT. MPA financed and oversaw the installation of a $2 million revenue access control equipment project. Continued to provided parking services for the Adrienne Arsht Performing Arts Center as the PAC's primary parking provider. During the year ending September 30, 2009, the Authority estimates it will contribute approximately $1,000,000 in excess revenues to the City of Miami. Highlights of the 2009-10 Budget Enhance customer service experience with the implementation of automated pay on foot systems in garages and lots. Expand regulated areas by installing single space meters in various areas of the City of Miami. Continue construction of the new Garage No. 1 project across the street from the Federal Courthouse. Expand pay by cell phone program allowing our customers one additional method of payment. Complete the upgrade of the single space meters with new electronic mechanisms and software that controls revenue and collections. Capital Spending The budget for the 2009-10 fiscal year includes the final drawdown of $25.9 million of revenue bonds proceeds for the completion of the new Courthouse Center Garage. Additional capital spending will go toward a system wide facility automation system that will provide cost savings while enhancing customer service. FINANCIAL HIGHLIGHTS Revenues Total operating revenues are budgeted to be 22,948,023 which is $1,537,709 or 7.2% higher than fiscal year 2008-2009 budget. Garage revenues are expected to increase by $707,928 or 24.9%. The re -opening of MPA's newly constructed Courthouse Center Garage will generate most of this additional revenue. Lot revenues are budgeted to decrease by $918,443 or 10.3% due to the reduced amount of construction parking in several of surface lot facilities. On -Street revenues are budgeted to increase by $1,734,000 or 19.0%. The two biggest factors influencing next fiscal year's revenue projections in this category are the updated electric meters and the maturing of our pay and display system. Expenses Operating expenses are projected to decrease by $181,428 or 1.2% to $14,707,743. This decrease is despite the opening of the new Courthouse Center Garage with operating expenses of approximately $300,000. Debt Service Interest and principal payments are budgeted at $3,098,037 and $1,025,000 respectively. Total debt service for the fiscal year is estimated at $4,123,037. Net Revenue and Debt Service Coverage The proposed budget for fiscal year 2009-10 will provide approximately $8,315,280 in net revenue available for debt service resulting in a debt service coverage of 2.34, before taking into consideration capitalized interest. After subtracting debt service and expenditures for replacement and renewals, we are estimating an excess revenue contribution to the City of Miami of $4,000,000. SUMMARY The results for the current year and the budget for fiscal year 2009-10 reflect the continued growth and expansion for the Authority. Net Income for fiscal year 2009-10 after depreciation, amortization and finance charges is estimated at $2,441,493. We are particularly pleased that we have been able to continue to provide the City with a significant revenue stream for the tenth consecutive year and at the same time continue to address and meet the parking needs of our residents, commuters and visitors. The total amount that the City will be receiving from Miami Parking Authority for the 2008-09 fiscal year estimated at $6,040,000. This figure includes $1,000,000 in excess revenues from operations, $3,500,000 from parking citation revenue and $1,540,000 from the operation of various City of Miami owned parking facilities. I am also extremely appreciative of the efforts of the Authority's employees for their dedication and hard work and for the Miami Parking Authority Board who have tirelessly provided direction and set policy for this organization. Our Board's willingness to sacrifice their valuable time is an outstanding statement to their dedication to public service. Noriega, V ?xecutive Officer