HomeMy WebLinkAboutMemo 2Miami Parking Authority
August 15, 2007
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 2006-07 has been a challenging year for Miami Parking Authority (MPA).
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 and entering into joint venture opportunities with public and private
partners in Downtown, the Design District and Health District.
Continuing our implementation of more technologically advanced parking
solutions.
Continued our efforts to expand the parking inventory within the City.
The specific accomplishments included the following:
Continued to implement pay and display (P&D) technology in various parking
lots 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 parking facilities 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 acquire certain land parcels for future parking facilities.
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 750 space garage with approximately
6,000 square feet of retail space and approximately 34,000 square feet of office
space.
Continued to spend a portion of $40.655 million of bond proceeds to fund future
capital projects.
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 (IPI) 2006 Award For
Excellence.
Entered into new agreement with the Public Health Trust of Miami -Dade County
whereby MPA manages over 7,000 parking spaces for the PHT.
Assisted Miami's new Carnival Center for the Performing Arts with their interim
parking program by partnering with Miami -Dade County School Board.
Commenced operation of four parking lots for the Codina Group and Florida East
Coast Railroad.
During the year ending September 30, 2007, the Authority estimates it will
contribute approximately $2,300,000 in excess revenues to the City of Miami.
Highlights of the 2007-08 Budget
Continue installation of P&D technology at a value of $4,500,000.
Expand regulated areas by installing single space meters in various areas of the
City of Miami.
Commence construction of the new Garage No. 1 project across the street from
the Federal Courthouse.
Implement pay by cell phone program allowing our customers one additional
method of payment.
Update single space meters with new electronic mechanisms and software that
controls revenue and collections.
Capital Spending
The budget for the 2007-08 fiscal year is an ambitious one. It contemplates spending
$25.9 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 P&D machines.
These projects are all expected to be completed within the next 2-3 years.
FINANCIAL HIGHLIGHTS
Revenues
Total operating revenues are budgeted to increase by $3,195,473 or 19.64%.
Garage revenues are expected to increase by $124,829 or 3.81%. The two biggest factors
influencing next fiscal year's revenue projections are the projected closing of Garage
No.l in November 2007 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 $1,451,458 or 22.56% due to the opening of
new facilities and increased utilization of existing facilities.
On -Street revenues are budgeted to increase by $1,348,630 or 21.50%. The two biggest
factors influencing next fiscal year's revenue projections are due to the implementation of
approximately 150 additional P&D machines and a contingency reserve projection for
revenue disruptions due to major weather disturbances.
Expenses
Operating expenses are projected to increase by $2,002,850 or 16.70% to $13,994,429.
The increases are primarily in the areas of labor and benefit costs, property insurance,
P&D maintenance, utilities, consultants, and revenue sharing agreements.
Debt Service
Interest and principal payments are budgeted at $2,375,862 and $950,000 respectively.
Total debt service for the fiscal year is estimated at $3,325,862.
Net Revenue and Debt Service Coverage
The proposed budget for fiscal year 2007-08 will provide approximately $6,537,000 in
net revenue available for debt service resulting in a debt service coverage of 2.07, 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 $1,000,000.
SUMMARY
The results for the current year and the budget for fiscal year 2007-08 reflect the
continued growth and expansion for the Authority. Net Income for fiscal year 2007-08
after depreciation, amortization and finance charges is estimated at $1,500,000.
The Executive Director is particularly pleased that we have been able to continue to
provide the City with a significant revenue stream for the eighth 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
2006-07 fiscal year estimated at $7,300,000. This figure includes $2,300,000 in excess
revenues from operations, $3,700,000 from parking citation revenue and $1,300,000 from
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 publiq service.
Arth N'oriega, V
Exec ive Director