HomeMy WebLinkAboutletterArthur Noriego, V.
Executive Director
190 N.E. Third Street
Miami, Florida 33132
Phone (305) 373-6789
Fax (305) 371-9451
www.miamiparking.com
Miami Parking Authority
August 15, 2004
Honorable Mayor and Members of the City Commission:
Fiscal Year 2003/2004 has been a challenging year for Miami
Parking Authority. Our successes during the year have been
marked by the continuous progress an our five-year capital
and operating plan.
Accomplishments During the Past Year
The Authority's accomplishments and goals in the last 12
months were primarily focused on three main areas:
Continued to advance our five-year capital plan.
Exploring joint venture opportunities with public and
private partners.
Continuing our implementation of more technologically
advanced parking solutions.
Continue our efforts to expand the parking inventory
within the City.
The specific accomplishments included the following:
Continued to implement pay and display technology
(P&D) on various parking lots and high revenue on -street
zones. This technology allows our customers to pay with
cash, debit or credit card.
Completed construction of the Watson Island boat ramp
parking lot.
Completed construction of the Watson Island South Lot.
Completed construction of the new Water Sports parking
lot in the Coconut Grove area.
Expanded our smart card program by introducing their
availability at various supermarkets and other retail
operations.
Continued negotiations to acquire certain land parcels
for future parking facilities.
Selected developer and started negotiations for the
development and construction of a mixed use project located
across the street from the new Federal Courthouse currently
under construction. The project is envisioned as a 1,250
space garage with retail at the ground floor and housing
units above the garage.
Selected bond underwriter and bond counsel for a new
bond issue expected to be issued in late 2004 or early
2005.
The Authority is currently investigating the
possibility of issuing said bonds as variable rate bonds
with a forward starting synthetic interest rate to take
advantage of the current low interest rates.
During the year ending September 30, 2004, the
Authority estimates it will contribute approximately
$1,800,000 in excess revenues to the City.
Highlights of the 2004-2005 Budget
Completed negotiations with Goodwill on the parking garage.
in Allapttah.
The Authority is currently working on four projects in
completion with the City's Community Development
Department.
Capital Spending
The budget for the 2004-2005 fiscal year is an ambitious
one. It contemplates issuing approximately $41 million in
new revenue bonds to finance a number of new parking
facilities.
These include the demolition of our Garage #1 and starting
construction of the new Courthouse Garage by mid -year. It
also envisions the completion of the Watson Island parking
facilities, two new garages in the Design District and
Coconut Grove, 3 small parking lots under the I-395
overpass and a number of additional P&D machines.
These projects are all expected to be completed within the
next 3-4 years.
Financial Highlights
Revenues
Operating revenues for the fiscal year 2004/2005 are
budgeted to increase $613,000 to $13,208,000.
Garage revenues are expected to increase slightly against
forecast and last year's budget as a result of the closing
down of Garage #1 in the second half of the year to start
construction of the new Courthouse Garage.
Lot revenue is scheduled to increase from this year's
forecast and budget due to the opening of new facilities.
On -Street revenues are scheduled to increase significantly
over forecast and last year's budget reflecting the
expansion of P&D technology and new meter installations.
Expenses
Operating expenses are budgeted to increase $748,000 to
$9,493,000. The increases are primarily in the areas of
labor costs, meter parts and P&D maintenance, consultants,
advertising, and promotion.
Debt Service
Interest and principal payments are budgeted at $491,000
and $710,000 respectively. Total debt service for the year
is estimated at $1,201,000.
No debt service has been budgeted for the new bonds
inasmuch as they will have no repayment due in the first
two years and it is expected that all interest will be
capitalized.
NET REVENUE AND DEBT SERVICE COVERAGE
The proposed budget for Fiscal Year 2004/2005 will provide
approximately $3,837,000 in net revenue available for debt
service resulting in a debt service coverage of 3.2. After
subtracting debt service of $1,200,000 and replacement and
renewal expenditures of $500,000, we are estimating excess
revenues to be transferred to the City of $1,810,000.
SUMMARY
The current year and Fiscal Year 2004/20054 reflect
continued growth for the Miami Parking Authority. Net
income for fiscal year 2004/2005 after depreciation,
amortization and finance charges is estimated at
$1, 530, 000.
The Executive Director is particularly pleased that we were
able to meet the financial commitment to the City in each
of the first 4 years of our five-year agreement. This
budget for fiscal year 2004/2005 reflects that we will
continue to provide excess revenues to the City.
The total amount that the City will be receiving from Miami
Parking Authority for the 2004/2005 fiscal year is
estimated at $5,500,000. This figure includes $1,800,000
in excess revenues from operations and investments,
$2,700,000 from parking citations revenue and approximately
$1,000,000 from the operation of the Knight Center garage.
The Executive Director is 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 both direction
and polio for this organization. Our Board's willingness
to sacrice their valuable private time is an outstanding
statemeri to their dedication to public service.
rthu '.riega V
Execu +'ve Director