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HomeMy WebLinkAboutLetterMiami Parking Authority August 16, 2006 Honorable Mayor and Members of the City Commission: Arthur Noriega, V. Executive Difector 1�{3 N.E. Third Street Miami, Florida 33132 Phone(305) 373-.6789 fax (305} 371-9,451 www.rniamiparting.com Fiscal Year 2005-06 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. Continued our efforts to expand the parking inventory within theCity. The specific accomplishments included the following: Continued to implement pay and display (P4D) technology in various parking Tots and high revenue on -street zones ~such as Downtown, Civic Center, and Brickell. This technology allows our customers to pay with cash, coins, debit or credit card. Continued to develop a strong partnership with 'City of Miami Community Development department to construct parkingfacilities in under -developed areas of the City of Miami. This parking will 'serve as a catalyst to encourage strong economic growth and renewed confidence in business owners. Continued negotiations to artluire certain land parcels for future parking facilities. 'Began permit process for the development and construction of a mixed ltse•ptroject located across the street from the new federal Courthouse curry under construction. The project is -envisioned as a 750 space garage with approximately 6:000 square Feet of retail space and approximately 34,000 square feet.ofoliice spare. 1n March, issued revenue bonds in the amount of $40 i55 million to fund lure capital projects and to reimburse the Authority for various completed.pvojecrts. Continued to promote the City-wide MVP Program to protectCity of Miami residents from hurricanes and other major weather disturbances. The program was the recipient of the International Parking lnstitute's (WI) 2006 Award For Excellence. In June completed construction and opened the Allapatta 'Parking Plaza Garage (Garage No.9) adjacent to Goodwill industries on time and on budget. During the year ending September 30, 2006, .the Authority estimates it will contribute approximately S2;000,000 in -excess revenues to the City of Miami. Highlights of the 2006-07 Budget Continue installation of R&D technology at a value of S3,750,000. Expanded regulated areas by installing single 'space meters in Allapattah, Coral Way, and other areas through the City of Miami. Continence construction of the new Garage No. 1 project across the street .from the Federal Courthouse. Finalize development scope forproject in the Design District. Capital 'Spending The budget for the 2006-07 fiscal year is an ambitious one. It contemplates spending S12.1 Million of revenue bonds proceeds to construct a number of new parking facilities. These include the demolition of our Garage No.1 and starting construction of the new Courthouse Garage by mid -year and the implementation of additional PAD machines. These projects are all expected to be completed within the next 2-3 years. FINANCIAL GHLUCiTS Revenues Total operating revenues are budgeted to increase by $509.655.or 3.23%. Garage revenues are expected to increase by '$190,000 or 5.87%. The two biggest factors influencing next fiscal year's revenue projections are the projected closing of Garage No.1 in the second half of the fiscal year to start construction of the new Courthouse Garage and a contingency reserve projection for revenue disruptions due to major weather disturbances. Lot revenues are budgeted to increase by'$42,802 or 7.1$% due to the opening of new facilities and increased utilization of existing facilities. On -Street revenues are budgeted to decrease by S97,549 or 1.53%. The two biggest factors influencing next fiscal years revenue projections are impact of street closures due various capital projects occurring in the City of Miami and a contingency reserve projection for revenue disruptions d.ue to major weather disturbances. E wen ses Operating expenses are projected to increase by $997,890 or 9.08% to S11,991,579. The increases are primarily in the areas of labor and benefit costs, property insurance, ft&D maintenance, utilities, consultants, and bank charges. Debt Service Interest and principal payments are budgeted at S1,853,000 and $920;000 respectively. Total debt service for the fiscal year is estimated at $2,773,000. Net Revenue and Debt Service Coverage The proposed budget for fiscal year 2006-07 will provide approximately $5,801;000 in net revenue available for debt service resulting in a debt service coverage of 2:,09, 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 Miami of $2,000,000. SUMMARY The results for the current year and the budget for fiscal year 2006-07 reflect the continued growth and expansion for the Authority. Net Income for fiscal year 2O06-07 after depreciation, amortization and finance charges is estimated at $2,387,;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 seventh 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 Mize City will be receiving from Miami Parking Authority for the 2006-07 fiscal year estimated at $6.2O0,000. This figure includes $2,O00,0OO in excess revenues from operations. $2,900,000 from panting citation revenue and $1,300;000 fizz the operation of various City of Miami 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 statement to their dedication to pub'.uemice. Arthur Noriega, V Executive Director