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HomeMy WebLinkAboutAccomplishmentsMiami Parking Authority August 9, 2004 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 2004/2005 has been a challenging year for Miami Parking Authority. Our successes during the year have been marked by the continuous progress on 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 four main areas: Continued to advance our five-year capital plan. Exploring joint venture opportunities with public and private partners in Downtown and the Design District. 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 such as downtown and Brickell. This technology allows our customers to pay with cash, debit or credit card. Developed a strong partnership with City of Miami Community Development department to construct parking facilities in under -developed areas of Miami. This parking will serve as a catalyst to encourage strong economic growth and renewed confidence in business owners. Total dollars allocated for these projects top $5.3 million. Completed construction of the new Water Sports parking lot in the Coconut Grove area. Continued negotiations to acquire certain land parcels for future parking facilities. Signed the development agreement and began permit process 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 1,000 space garage with retail at the ground floor and 400 condominium units above the garage. Finalized Bond Study for bond issue expected to be completed by November, 2005. Opened Lots 76-78 (1-395 Lots/Arts & Entertainment Lots) with 300 new parking spaces. Purchased a parcel of property in Little Havana to serve the Tower Theater, Domino Park and Viernes Culturales. Completed construction management and oversight of new parking facility at Southwest Social Services in Flagami. Designed three new projects that will begin construction September 2005 (SW 16th Street/SW 7th Avenue, Model City Lots, Alternative Program and West Grove Lot). Opened a restroom facility in the Watson Island Boat Ramp. Broke ground on our Allapattah Parking Plaza garage adjacent to Goodwill Industries. Completion expected March 2006. Designed and implemented City-wide MVP Program to protect Miami residents from hurricanes and other major weather disturbances. During the year ending September 30, 2005, the Authority estimates it will contribute approximately $2,000,000 in excess revenues to the City. Highlights of the 2005-2006 Budget Completed construction of the 350-space parking garage in Allapttah. Finalization of $5.3 million in projects in partnership with the City's Community Development Department. Commence construction of the new Garage No. 1 project across from the Federal Courthouse. Finalize development scope for project in the Design District. Continue installation of Pay & Display technology at a value of $3,750,000. Capital Spending The budget for the 2005-2006 fiscal year is an ambitious one. It contemplates issuing approximately $27 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, 3 small parking lots under the 1-395 overpass and a number of additional P&D machines. These projects are all expected to be completed within the next 3 years. Financial Highlights Revenues Total operating revenues are budgeted to increase by $2,251,000 or 19%. Garage revenues are expected to increase by $385,000 or 14% due primarily to increased utilization in existing facilities and the opening of the Allapattah garage. Lot revenues are budgeted to increase by $1,406,000 or 31% due to the opening of new facilities, implementation of rate increases and increased utilization of existing facilities. On -Street Revenues are budgeted to increase by $792,000 or 14% due to the increased use of pay and display meters, new meter installations and the implementation of rate increases. Expenses Operating Expenses are projected to increase by $1,501,000 or 16% to $10,994,000. The increases are primarily in the areas of labor and benefit costs, security, utilities, consultants, bank charges, advertising and promotion. Debt Service The 2005/2006 budget assumes the issuance of $27,000,000 of revenue bonds in the first quarter of the fiscal year. Last year, the Authority negotiated a $25,000,000 forward starting interest rate swap. Under the terms of the swap the Authority will pay a variable interest rate until April 2006 and pay at a synthetic fixed interest rate from that point on. In addition the Authority obtained a $3,000,000, 20-year loan from CDBG funds in connection with the construction of the Allapattah garage. Debt service for the year includes interest payments of $1,281,646 and principal payments of $860,000. A portion of the interest payments will be funded from bond proceeds. NET REVENUE AND DEBT SERVICE COVERAGE The proposed budget for Fiscal Year 2005/2006 will provide approximately $5,143,000 in net revenue available for debt service resulting in a debt service coverage of 2.40, before taking into consideration the capitalized interest. After subtracting debt service and expenditures for replacement and renewals, we are estimating an excess revenue contribution to the City of $2,000,000. SUMMARY The results for the current year and the budget for fiscal year 2005/2006 reflect the continued growth and expansion for the Miami Parking Authority. Net Income for fiscal 2005/2006 after depreciation, amortization and finance charges is estimated at $1,944,000. The Executive Director is particularly pleased that we have been able to continue to provide the City with a significant revenue stream for the sixth 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 2005/2006 fiscal year estimated at $5,900,000. This figure includes $2,000,000 in excess revenues from operations, $2,900,000 from parking citation revenue and $1,000,000 from the operation of various City owned parking facilities. 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 direction and set policy for this organization. Our Board's willingness to sacrifice their valuable time is an outstanding stateme-'' to their dedication to public service. i Arthu.i Noriega V Executive Director