Loading...
HomeMy WebLinkAboutBack-Up - Board Report40 NW 3rd Street Suite 1103 Miami, Florida 33128 Phone (305) 373-6789 Fax (305) 371-9451 www.miamiparking.com TO: Honorable Chairperson and Members of the Off -Street Parking Board FROM: Arthur Noriega, V, Chief Executive Officer, Miami Parking Authority SUBJECT: FY 2015 Miami Parking Authority Operating Budget DATE: July 31, 2014 Staff is requesting that the Board give its approval for the FY 2015 Miami Parking Authority Operating Budget and related Board Resolution which are attached hereafter. FSC Mixed Sources fo �a off ;"w.`p°ire o�R� Cest no !WOUND) s mvlscog ®1996 Forest ReWeNSM161Candl 40 NW 3rd Street Suite 1103 Miami, Florida 33128 Phone (305) 373-6789 Fax (305) 371-9451 www.miamiparking.com Honorable Mayor and Members of the City Commission: During fiscal year 2013-14, the Miami Parking Authority (MPA) continued our long standing success. We have increased our market share while continually working to improve customer satisfaction and fulfill our mission to meet the City of Miami's parking needs. Accomplishments During the Past Year Accomplishments for MPA during fiscal year 2013- 14 included the following: We expanded the centralization of MPA's facility operations at Courthouse Center allowing 24/7 remote access management, which will provide better service to its customers through a direct interface. The creation of this center has allowed for an increase in efficiencies to our operations as well as to an improvement to the levels of customer service we offer. The Pay -By -Phone program continues to attract new users, as it affords them a convenient method to pay for parking. We have continued to benefit from the expansion of this program throughout our metro area to now include Florida International University. Since its inception in the City of Miami in 2008, approximately 229,606 customers have registered to participate in the program, which in turn has generated approximately $7,355,944 in parking revenue. We continue to seek opportunities to better serve our residents and in so, have expanded our partnership with Car2Go. This car sharing program has been very successful since its launch and continues to grow its membership. There are approximately 22,000 customers registered to use this program since its inception in July 2012. In seeking to help foster continued growth and development in our community, we have assisted developers with meeting their staff parking requirements during construction. This element of our operation has provided us with an additional source of revenue. Page 1 of 4 FSC Mixed Sources Pro.. group from wellmanaged forests and other rontalled sources [eh nndVCUG%o]W wmufscar99 ®f9%Forest stewaNSM1lp[ounsil MPA continues to successfully manage 8,000 parking spaces for the Public Health Trust of Miami Dade County. We have successfully maintained a relationship with the Adrienne Arsht Center for the Performing Arts as its primary parking provider since its inception. During the year ending September 30, 2014, the Authority estimates it will contribute approximately $6,700,000 in excess revenues to the City of Miami. Highlights of the 2014-2015 Budget MPA continues to be a technology leader in the parking industry. We will be implementing one of the first virtual parking districts in the nation (Wynwood District). We continue to increase the areas that offer Pay -by -Phone services and have started the process of eliminating multi -space machines throughout the City. Additionally, multi - space meters in Coconut Grove, Lot 19, and the Florida East Coast Railroad Lot A located next to the Government Center Metrorail Station have been upgraded to a model that allows the customer to pay for parking by entering their license tag, known as Pay by Plate. This has significantly reduced the resell of the paper receipts by vagrants which in turn, has increased our revenues in those lots. We plan to continue to expand this model throughout the city during the upcoming year. There continues to be a steady stream of businesses opening in the areas of Brickell, Design District, Midtown, and Central Business District along with the rapidly -changing Wynwood District. This positively affects the hours of operations and revenues being generated. We continually seek expansion of the pay -by -phone program throughout our metro area, which now includes Florida International University, and broaden the pool of customers that we are able to tap into. This continues to generate revenue for the agency while providing a convenient way to pay for parking for our customers. MPA is committed to the growth of this program which provides our customers with a convenient way to pay for parking. Capital Spending Plan Summary for FY 2014-2015 MPA is finalizing the completion of a project to modernize the elevators at College Station Garage to better serve our customers. Due to its size and the cost associated with it, this project has been completed in phases and will be finalized during the 2014- 2015 fiscal year. Page 2 of 4 We plan to replace older pay and display machines with new pay by plate machines throughout the City. Expansion of this roll -out will increase our efficiency and help reduce maintenance and repair costs. MPA has initiated an overhaul of the existing network infrastructure at our facilities to improve reliability and security of our data along with the installation of cabinets to secure servers and switches in areas where sensitive network equipment is located. FINANCIAL HIGHLIGHTS Revenues Total operating revenues are budgeted to be $28,496,349, which is $811,545 or 2.93% higher than fiscal year 2013-14 budget. Garage revenues are expected to increase by $664,695 or 15.23%. The biggest factor influencing next fiscal year's revenue projections in this category is due primarily to the leasing of the retail spaces in several of our garage facilities along with the increase of transient and monthly parkers at Courthouse Center Garage due to the closure of the Florida East Coast Railroad lots located along the perimeter of the Government Center Metrorail Station (FEC lots). The FEC lots are scheduled to close at the end of the current fiscal year. Lot revenues are budgeted to decrease by $547,257 or 6.82% primarily due to closure of the FEC lots that are managed by MPA as well as a decreased utilization being experienced at various lots throughout the city, which are being utilized by construction crews for a variety of development projects. On -Street revenues are budgeted to increase by $201,023 or 1.36%. The biggest factor influencing next fiscal year's revenue projections in this category is the opening of new businesses in the areas of Brickell, Design District, Midtown, and Central Business District along with the rapidly -changing Wynwood District, as mentioned previously. This positively affects the hours of operations and revenues being generated, as well as expanding our parking space inventory. This increase is offset by the removal of on - street parking spaces due to construction and other projects throughout the City. Expenses Operating expenses are projected to decrease by $12,708 or .08% to $15,845,768. This decrease is largely attributable to the following factors: 1) an increase in transaction fees paid to MPA's pay -by -phone vendor due to increased market penetration and expansion of pay -by -phone areas throughout the city and 2) inclusion of an audit adjustment to include payroll expenses for the Marlins facilities and the Knight Center Garage. The payroll expenses were not included in the 2013-2014 budget. These increases are offset by a decrease in expenses due to cancellation of existing revenue Page 3 of 4 sharing agreements with Fortress in connection with the FEC lots that are scheduled to close at the end of the current fiscal year. Debt Service Interest and principal payments are budgeted at $3,081,797 and $1,210,000 respectively. Total debt service for the fiscal year is estimated at $4,291,797. Net Revenue and Debt Service Coverage The proposed budget for fiscal year 2014-15 will provide approximately $12,660,581 in net revenue available for debt service resulting in debt service coverage of 2.95, 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 $7,200,000. SUMMARY The results for the current year and the budget for fiscal year 2014-15 reflect the continued growth and expansion for the Authority. Net Loss for fiscal year 2014-15 after depreciation, amortization and finance charges is estimated at $1,810,886. We are particularly pleased that we have been able to continue to provide the City with a significant revenue stream for the thirteenth 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 2013-14 fiscal year is estimated at $10,173,244. This figure includes $6,700,000 in excess revenues from operations, $2,300,000 from parking citation revenue and $1,173,244 from the operation of various City of Miami owned parking facilities. In closing, I would like to take a moment to highlight the exemplary job done by MPA's staff and Board. Both have demonstrated an extreme level of dedication and hard work in order to insure the success of our Agency. Sincer, Arthur"Noriega, V Chief Executive Officer Page 4 of 4