HomeMy WebLinkAboutExhibitsComposite Exhibit A
Off -Street Parking Board FY2020-2021 Budget
and
Off -Street Parking Board Approval of July 15, 2020
Miami Parking Authority
(Department of Off -Street Parking)
Proposed Operating Budget
Fiscal Year 2020-21
(Submitted to the City of Miami Commission For Approval)
(Approved by the Off -Street Board of Directors July 15, 2020)
MIAMI PARKING AUTHORITY
Schedule of Revenue and Expenses
Proposed FY 2021 Operating Budget
Operating Revenue
Off -Street Facilities
Parking Lots
On -Street
Management Fees
Other
Total Operating Revenue
Operating Expenses
Salaries, Wages & Fringe Benefits
Repairs, Maintenance, Cleaning & Landscape
Security
Utilities
Insurance
Assessment Expenses
Rental - Building/Land
Revenue Sharing
Parking Meter Parts & Installation
Legal and Professional
Bank Charges
Supplies & Miscellaneous
Other Expenses
Advertising & Promotion
Total Operating Expenses
Operating Results Before Depr & Amort
Depreciation & Amortization
Operating Results
Non -Operating Revenues (Expenses):
Interest Income
Gain (Loss) on Disposal Property
Interest Expenses
Excess Revenue Distribution to City
Budgeted Reserves
Total Non -Operating
Net Revenue In Excess of Expenses
FY 2019
FY 2020
FY 2021
Actual
Approved
Budget
Proposed
Budget
5,365,086
9,659,113
30,508,540
1,556,665
646,577
5,748,149
9,363,148
32,530,258
1,312,753
508,000
4,424,627
6,777,439
23,498,090
989,467
553,000
47,735,981 49,462,308
36,242,623
9,193,938
1,804,111
854,558
458,744
489,380
490,955
916,441
813,209
38,883
1,375,681
2,961,214
285,593
200,332
456,333
10,001,844
1,681,272
1,517,043
501,552
708,071
490,079
842,895
767,147
34,045
996,770
3,486,819
282,300
229,628
443,500
9,669,729
1,752,443
1,663,636
456,170
757,119
735,049
513,631
869,162
26,000
851,835
2,682,393
281,450
220,428
443,500
20,339,372 21,982,965
20,922,545
27,396,609
(2,984,370)
27,479,343 15,320,078
(3,158,931) (3,573,659)
24,412,239 24,320,412 11,746,419
562,996
704,070
(2,165,528)
(14,066,657)
160,000
(4,266,014)
(17,225,000)
160,000
(2,392,176)
(14,965,119)
(21,331,014) (2,232,176)
9,447,120
2,989,398
9,514,243
Requested Budget 2021
vs.
FY 2019 Actual Budget 2020
Increase/(Decrease)
(940,459)
(2,881,674)
(7,010,450)
(567,198)
(93,577)
(1,323,522)
(2,585,709)
(9,032,168)
(323,286)
45,000
(11,493,358) (13,219,685)
475,791
(51,668)
809,078
(2,574)
267,739
244,094
(402,810)
55,953
(12,883)
(523,846)
(278,821)
(4,143)
20,096
(12,833)
(332,115)
71,171
146,593
(45,382)
49,048
244,970
(329,264)
102,015
(8,045)
(144,935)
(804,426)
(850)
(9,200)
583,173 (1,060,420)
(12,076,531) (12,159,265)
(589,289) (414,728)
(12,665,820) (12,573,993)
(402,996)
(704,070)
(226,648)
14,066,657
1,873,838
17,225,000
12,732,943 19,098,838
67,123 6,524,845
Requested Budget 2021
vs.
FY 2019 Actual Budget 2020
Increase/(Decrease)
(17.53)
(29.83)
(22.98)
(36.44)
(14.47)
(24.08)
(23.03)
(27.62)
(27.77)
(24.63)
8.86
(26.73)
5.18 (3.32)
(2.86) 4.23
94.68 9.66
(0.56) (9.05)
54.71 6.93
49.72 49.99
(43.95) (39.06)
6.88 13.30
(33.13) (23.63)
(38.08) (14.54)
(9.42) (23.07)
(1.45) (0.30)
10.03 (4.01)
(2.81)
2.87 (4.82)
(44.08) (44.25)
19.75 13.13
(51.88) (51.70)
(71.58)
(100.00) #DIV/01
10.47 (43.92)
(100.00) (100.00)
#DIV/0! #DIV/0!
(85.08) (89.54)
0.71 218.27
MIAMI PARKING AUTHORITY
Schedule of Revenue and Expenses
Proposed FY 2021 Operating Budget
FY 2019 FY 2020 FY 2021 Requested Budget 2021 Requested Budget 2021
Approved Proposed vs. vs.
Actual Budget Budget FY 2019 Actual Budget 2020 FY 2019 Actual Budget 2020
$ $ $ Increase/(Decrease) Increase/(Decrease)
Operating Revenue
Off -Street Facilities 5,365,086 5,748,149 4,424,627 (940,459) (1,323,522) (17.53) (23.03)
Parking Lots 9,659,113 9,363,148 6,777,439 (2,881,674) (2,5.85,709) (29.83) (27.62)
On -Street 30,508,540 32,530,258 23,498,090 (7,010,450) (9,032,168) (22.98) (27.77)
Management Fees 1,556,665 1,312,753 1,009,467 (547,198) (303,286) (35.15) (23.10)
Other 646,577 508,000 533,000 (113,577) 25,000 (17.57) 4.92
Total Operating Revenue 47,735,981 49,462,308 36,242,623 (11,493,358) (13,219,685) (24.08) (26.73)
Operating Expenses
Salaries. Wales & Frinee Benefits
Salaries -Regular 6,579,168 7,482,354 7,465,800 886,632 (16,554) 13.48 (0.22)
Salaries - Overtime 370,422 (370,422) (100.00)
Salaries - Sick & Vacation 554,144 517,002 439,879 (114,265) (77,123) (20.62) (14.92)
Social Security 455,136 521,846 523,963 68,827 2,117 15.12 0.41
Health Insurance 443,214 554,045 501,244 58,030 (52,801) 13.09 (9.53)
Retirement 592,117 735,164 569,765 (22,352) (165,399) (3.77) (22.50)
Benefits - (Auto, LTD, STD) 184,734 191,433 169,078 (15,656) (22,355) (8.47) (11.68)
Tuition 12,620 (12,620) (100.00) -
Miscellaneous Pay 2,383 - (2,383) (100.00)
9,193,938 10,001,844 9,669,729 475,791 (332,115) 5.18 (3.32)
Repairs. Maintenance, Cleanine & Landscape
Maintenance - Property 328,017 209,800 229,000 (99,017) 19,200 (30.19) 9.15
Maintenance -Landscaping 298,879 216,361 178,740 (120,139) (37,621) (40.20) (17.39)
Maintenance - Elevators 99,388 37,000 44,000 (55,388) 7,000 (55.73) 18.92
Maintenance- A/C 37,796 43,500 33,500 (4,296) (10,000) (11.37) (22.99)
Maintenance - Computers 97,052 76,000 28,500 (68,552) (47,500) (70.63) (62.50)
Maintenance- Garage Equipment 173,838 158,900 222,810 48,972 63,910 28.17 40.22
Maintenance -Alarms 10,554 4,700 4,500 (6,054) (200) (57.36) (4.26)
Maintenance- TV Surveillance 27,155 9,125 46,500 19,345 37,375 71.24 409.59
Repairs -Equipment 44,762 78,000 166,000 121,238 88,000 270.85 112.82
Motor Pool 190,502 208,000 104,500 (86,002) (103,500) (45.14) (49.76)
Cleaning & Housekeeping Supplies 289,890 321,911 477,873 187,983 155,962 64.85 48.45
Expendable Tools 68 (68) (100.00)
Clothing 46,501 79,500 68,520 22,019 (10,980) 47.35 (13.81)
Signs 88,623 166,975 74,500 (14,123) (92,475) (15.94) (55.38)
Small Equipment 67,962 71,500 67,500 (462) (4,000) (0.68) (5.59)
Maintenance - Other 3,124 (3,124) (100.00)
Cleaning 6,000 6,000 6,000 -
1,804,111 1,681,272 1,752,443 (51,668) 71,171 (2.86) 4.23
Seem
Security 835,183 1,497,944 1,644,136 808,953 146,192 96.86
Armored Car Services 19,375 19,099 19,500 125 401 0.65
9.76
2.10
854,558 1,517,043 1,663,636 809,078 146,593 94.68
9.66
Utilities
Telephone 177,038 192,700 182,300 5,262 (10,400) 2.97 (5.40)
Light & Power 254,157 282,102 242,790 (11,367) (39,312) (4.47) (13.94)
Water 27,549 26,750 31,080 3,531 4,330 12.82 16.19
458,744 501,552 456,170 (2,574) (45,382) (0.56) (9.05)
Insurance
Property & Gen Liability Insurance 449,566 528,387 578,086 128,520 49,699 28.59 9.41
Workers Compensation Insurance 39,814 179,684 179,033 139,219 (651) 349.67 (0.36)
489,380 708,071 757,119 267,739 49,048 54.71 6.93
Assessment Expenses
Assessment Expenses - Repairs & Maintenance 152,802 3,986 3,986 (148,816) (97.39) -
AssessmentExpenses- Utilities 7,936 5,408 5,408 (2,528) (31.85)
Assessment Expenses - Office Supplies 4,287 41,567 41,567 37,280 869.61
Assessment Expenses - Management Fee 41,550 117,670 117,670 76,120 183.20
Assessment Expenses -Insurance 195,096 121,264 200,000 4,904 78,736 2.51 64.93
Assessment Expenses -Security 89,284 200,184 145,000 55,716 (55,184) 62.40 (27.57)
490,955 490,079 513,631 22,676 23,552 4.62 4.81
Rental - Buildine/Land
Rental- Building/Land 916,441 842,895 735,049 (181,392) (107,846) (19.79) (12.79)
Revenue Sharinp
Revenue Sharing 813,209 767,147 869,162 55,953 102,015 6.88 13.30
MIAMI PARKING AUTHORITY
Schedule of Revenue and Expenses
Proposed FY 2021 Operating Budget
FY 2019 FY 2020 FY 2021 Requested Budget 2021 Requested Budget 2021
Approved Proposed vs. vs.
Actual Budget Budget FY 2019 Actual Budget 2020 FY 2019 Actual Budget 2020
$ $ $ Increase/(Decrease) Increase/(Decrease)
Parkine Meter Parts & Installation
Equipment Rental 35,575 21,545 18,000 (17,575) (3,545) (49.40) (16.45)
Parking Meter Parts & Installation 3,308 12,500 8,000 4,692 (4,500) 141.84 (36.00)
38,883 34,045 26,000 (12,883) (8,045) (33.13) (23.63)
Leeal and Professional
Property Surveys, Platting 7,015 10,000 10,000 2,985 - 42.55
Legal Services 121,152 127,624 127,630 6,478 6 5.35 0.00
Trustee Fees 10,000 25,000 15,000 5,000 (10,000) 50.00 (40.00)
Audit Fees 135,912 163,500 163,500 27,588 20.30
Other Consultants 1,101,602 670,646 535,705 (565,897) (134,941) (51.37) (20.12)
1,375,681 996,770 851,835 (523,846) (144,935) (38.08) (14.54)
Bank Clams
Bank Charges 2,961,214 3,486,819 2,682,393 (278,821) (804,426) (9.42) (23.07)
Suovlies & Miscellaneous
Postage & Courier Services 3,654 6,700 6,700 3,046 83.36
Printing 103,328 69,600 99,750 (3,578) 30,150 (3.46) 43.32
Office Supplies 21,741 37,500 26,500 4,759 (11,000) 21.89 (29.33)
Office Equipment 23,955 25,000 15,000 (8,955) (10,000) (37.38) (40.00)
Computer Supplies 30,500 20,500 20,500 (10,000) (32.79)
Computer Software 132,915 113,000 113,000 (19,915) (14.98) -
285,593 282,300 281,450 (4,143) (850) (1.45) (0.30)
Other Expenses
Property Taxes 48,711 50,528 50,528 1,817 3.73
Licenses&Permits 34,451 30,100 29,950 (4,501) (150) (13.06) (0.50)
Miscellaneous 16,742 15,600 14,600 (2,142) , (1,000) (12.79) (6.41)
Entertainment
Travel 16,761 19,000 19,000 2,239 13.36
Training 10,594 38,000 35,000 24,406 (3,000) 230.38 (7.89)
Meetings and Conventions 61,899 51,850 52,350 (9,549) 500 (15.43) 0.96
Cashier- Overage/(Shortage) (754) 754 (100.00)
Parking Refunds -
Uncollectible Accounts -
Publications 50 1,000 (50) (1,000) (100.00) (100.00)
Membership Dues 22,678 23,550 19,000 (3,678) (4,550) (16.22) (19.32)
Claims Settlement -
Bad Debt Expense -
Penalties & Interest (10,800) - 10,800 (100.00) -
200,332 229,628 220,428 20,096 (9,200) 10.03 (4.01)
Advertisine & Promotion
Promotional 52,500 52,500 52,500 Public Relations 365,006 240,000 240,000 (125,006) (34.25)
Advertising 91,327 151,000 151,000 59,673 65.34
Total Operating Expenses
456,333 443,500 443,500 (12,833) (2.81)
20,339,372 21,982,965 20,922,545 583,173 (1,060,420) 187 (4.82)
Operating Resu is Before Depr & Amor 27,396,609 27,479,343 15,320,078 (12,076,531) (12,159,265) (44.08) (44.25)
Depreciation & Amortization (2,984,370) (3,158,931) (3,573,659) (589,289) (414,728) 19.75 13.13
Operating Results 24,412,239 24,320,412 11,746,419 (12,665,820) (12,573,993) (51.88) (51.70)
Non -Operating Revenues (Expenses):
Interest Income 562,996 160,000 160,000 (402,996) (71.58)
Gain (Loss) on Disposal Property 704,070 (704,070) (100.00)
Interest Expenses (2,165,528) (4,266,014) (2,392,176) (226,648) 1,873,838 10.47 (43.92)
Excess Revenue Distribution to City (14,066,657) (17,225,000) 14,066,657 17,225,000 (100.00) (100.00)
Budgeted Reserves - - - - -
Total Non -Operating (14,965,119) (21,331,014) (2,232,176) 12,732,943 19,098,838 (85.08) (89.54)
Net Revenue In Excess of Expenses 9,447,120 2,989,398 9,514,243 67,123 6,524,845 0.71 218.27
MIAMI PARKING AUTHORITY
Schedule of Revenues and Expenses
Proposed FY 2021 Operating Budget — Line Item Descriptions
Description of Line Items:
Operating Revenue
Off -Street Facilities - Revenue collected at parking garages, including daily customer revenue,
monthly cardholder revenue and revenue derived from special events
Parking Lots — Revenue collected at parking lots, including daily customer revenue, monthly
decal -holder revenue and revenue derived from special events / rental of lots
On -Street — Revenue collected from single space and Pay and Display meters located on -street
as well as revenue derived from rental of metered spaces (production events, valet, etc)
Management Fees — Fees charged to third parties (i.e. Miami -Dade County, Florida FDOT and
City of Miami) for the administration of various parking / non -parking facilities
Other — Majority of line item represents fees remitted by towing companies that assist in
towing illegally parked vehicles from parking facilities / on -street spaces
Operating Expenses
Salaries, Wakes & Fringe Benefits
Salaries — Regular - Base salaries for all full time / part-time Authority personnel
Salaries — Overtime — Overtime funds paid to hourly personnel
Salaries — Sick & Vacation — Sick and vacation time for full-time Authority personnel
Social Security — Social security taxes paid to the federal government for Authority personnel
Health Insurance — Insurance premiums paid by MPA for full-time Authority personnel
Retirement — Employer portion of annual pension obligation paid to the MPA's pension plan
for full-time Authority personnel
Other Benefits — Insurance premiums paid by MPA on behalf of full-time administrative and
operations personnel for auto, short-term disability and long term disability
Page 1 of 6
Tuition — MPA provides educational assistance for regular full-time employees who have
completed 365 calendar days of service in an eligible employment classification. The amount
of assistance paid by the Agency is 100% of tuition costs up to a maximum of $3,000 in a
calendar year providing the employee earns grade of "C" or better
Miscellaneous Pay — Payment for the use of temporary labor for special events and special
employee assignments
Repairs, Maintenance, Cleaning & Landscape
Maintenance — Property — Contractual expenses incurred in connection with the maintenance
of parking facility structural components, excluding items detailed below
Maintenance — Landscaping — Contractual expenses incurred in connection with the
maintenance of parking facility landscaping
Maintenance — Elevators — Contractual expenses incurred in connection with the maintenance
of parking facility elevators
Maintenance — A/C — Contractual expenses incurred in connection with the maintenance of
parking facility, operations and administrative office air conditioning units
Maintenance — Computers — Contractual expenses incurred in connection with the maintenance
of parking facility / administrative office computer equipment
Maintenance — Garage Equipment — Contractual expenses incurred in connection with the
maintenance of parking facility revenue control equipment
Maintenance — Alarms — Contractual expenses incurred in connection with the maintenance of
parking facility revenue alarm / security systems
Maintenance — TV Surveillance — Contractual expenses incurred in connection with the
maintenance of TV surveillance cameras located in garage facilities
Repairs — Equipment — Non -contractual repairs associated with parking facilities
Motor Pool — Expenditures associated with Agency vehicles including gas, repairs and lease
payments for leased Agency vehicles
Cleaning / Cleaning & Housekeeping Supplies — Contractual expenses and cleaning supplies
purchases for the maintenance of parking facilities / administrative offices
Expendable Tools / Small Equipment - Maintenance tools and maintenance / office equipment
purchases that do not exceed $1,000 and therefore are not considered a capital asset
Page 2 of 6
Clothing — Uniforms for operations personnel
Signs — Maintenance and purchase of signage for both off-street and on -street parking facilities
Maintenance — Other — Annual contractual maintenance fee incurred for Authority telephone
system
Security
Security — Contractual expenses incurred for security personnel who perform surveillance of
parking facilities
Armored Car Services — Brinks services for the pickup of cash at specified locations
Utilities
Telephone — Expenses paid to telephone carriers for the usage of telephone lines and cellular
phone lines (i.e. AT&T, Sprint)
Light & Power — Electricity expense for all parking facilities / administrative offices (FPL)
Water — Water expense for all parking facilities / administrative offices (Miami -Dade Water
and Sewer)
Insurance
Property and General Liability Insurance — Insurance premiums related to property, general
liability, and directors and officers liability coverage
Workers Compensation Insurance — Workers compensation premiums for Authority personnel
Rental — Building /Land
Rental Building/Land — Fixed, contractual lease payments paid for the rental of parking lots
managed and not owned by the Authority
Assessment Expenses
Assessment Expenses — The expenses for the Courthouse Center Garage condos that are
accumulated and paid to the condo association. The items in this category include but are not
limited to: repairs and maintenance, utilities, office supplies, management fees, property
insurance and security
Page 3 of 6
Revenue Sharing
Revenue Sharing — Payments made to lessors of parking lots that are managed by the
Authority. These payments are based on a % of either gross or net revenue derived by the
parking lot
Parkin,; Meter Parts & Installation
Equipment Rental — Rental of golf carts for security personnel to roam facilities, rental of
office copiers
Parking Meter Parts & Installation — Purchases of parking meter supplies / parts to replace
defective parking meter equipment
Legal and Professional
Property Surveys, Platting — Expenditures incurred related to property surveys and platting of
prospective parking facility acquisitions
Legal Services — Legal fees paid to City of Miami for City Attorney services
Trustee Fees - Fees paid to Trustee of Authority bonds
Audit Fees — Fees paid in connection with the annual audit of the Authority's financial records
Pay and Display Fees — Service contract fees paid to parking meter vendors, parking
consultants, payroll processing fees, website redesign fees, rating agency fees in connection
with the Authority's bonds
Bank Charges
Bank Charges — Bank fees and credit card processing charges associated with the Authority's
parking facilities
Supplies and Miscellaneous
Postage & Courier Services — Postage expense for Authority's mailings
Printing — Printing of tickets and decals for parking facilities and customer service pamphlets
Office Supplies — Desk supplies (i.e. paper) for all Authority facilities / administrative offices
Office Equipment — Office equipment purchases that do not meet threshold for capitalization
Page 4 of 6
Computer Supplies — Computer supply purchases for all Authority facilities / administrative
offices
Computer Software — Computer software purchases for all Authority facilities / administrative
offices
Other Expenses
Licenses & Permits - Miscellaneous licenses and fees
Miscellaneous — Payment for medical exams and back ground check for employees (new hire
and worker comp cases) and mystery shopper program
Travel - Business travel expenses incurred for parking related conferences
Training -Training expenses for all employees
Meetings and Conventions - Business meeting expenses for all employees
Publications — Miscellaneous business publication subscriptions
Membership dues — Membership dues for various parking related organizations and
professional associations
Advertising & Promotion
Promotional — Promotional materials distributed to customers at special events / customer
appreciation week
Public Relations — Contractual expenditures related to public relations consultant services and
sponsorships of various charities and non-profit organizations
Advertising — Media advertising expenses (i.e. radio, television, and printed media)
Page 5 of 6
Non-Operatint Revenues / (Expenses)
Depreciation & Amortization — Depreciation related to parking facilities, including building
and structures, leasehold improvements, furniture and fixtures, and parking equipment
Interest Income — Interest and gain/losses on Authority investments
Interest Expenses — Interest expenses and amortization of bond issuance costs incurred in
connection with the Authority's bond issue.
Excess Revenue Distribution to the City of Miami — Operating revenues in excess of: (a)
operating expenses; (b) debt service payments; and (c) renewal and replacement capital
requirements and reserves for working capital needs.
Budgeted Reserves — Funds that are based on sound fiscal principles designed to allow the
Authority to maintain continuity of operations in adverse conditions while being mindful of our
fiduciary reasonability to residents and visitors, both current and future generations.
Page 6 of 6
STREET PARKING BOARD
Thomas Jelke (Chairperson) Jami Reyes Marlon hill
Stephen Nostrand Larry Spring
AGENDA - July 15, 2020
I. OPEN - PUBLIC COMMENTS
II. CLOSE — PUBLIC COMMENTS
III. APPROVAL ITEMS
1. 20-0701 May 2020 Financial Statements
A. Miami Parking Authority
B. Knight Center Garage
2. 20-0702 Regular Board Meeting Minutes
A. June 3, 2020 Finance Committee
B. June 3, 2020 Off -Street Parking
3. 20-0703 FY 2021 MPA Operating Budget
4. 20-0704 FY 2021 James L. Knight Center Operating Budget
5. 20-0705 Resolution 20-04 Implementing Procedures for Biennial Election of Board
Chairperson and Finance Committee Chair
6. 20-0706 Skidata Proposal for Contaetless Reader Payment Technology
7. 20-0707 ERP System Upgrade
In accordance with the Americans with Disabilities Act of 1990, as amended, persons needing special
accommodations to participate in this proceeding may contact the Miami Parking Authority Paralegal at (305)
373-6789 ext. 227 (Voice) no later than six (6) business days prior to the proceeding. TTY users may call via
711 (Florida Relay Service) no later than six (6) business days prior to the proceeding.
IV. CHIEF EXECUTIVE OFFICER'S REPORT
V.
o Covid-19 Update
o Regatta Harbour Project
o Grand Station Project
STATUS REPORT
o Regatta Harbour Garage
o MRD Consulting Report
o May 2020 Operational Report
In accordance with the Americans with Disabilities Act of 1990, as amended, persons needing special
accommodations to participate in this proceeding may contact the Miami Parking Authority Paralegal at (305)
373-6789 ext. 227 (Voice) no later than six (6) business days prior to the proceeding. TTY users may call via
711 (Florida Relay Service) no later than six (6) business days prior to the proceeding.
Miami Parking Authority
Board Meeting Minutes July 15, 2020
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Steve?
MR. NOSTRAND: Yes, please.
CHAIRMAN JELKE:
MS. REYES: Yes.
CHAIRMAN JELKE:
MR. HILL: Yes.
CHAIRMAN JELKE:
Jami?
Marlin?
Larry?
Larry, I think you're on mute.
Well, I vote yes.
Larry, we can't hear you, so we're just going
to not have that vote recorded for right now.
That passes.
And then for the regular -- same for the
regular board meeting minutes from June 3rd. If
someone can move that, please.
MR. NOSTRAND: I'll move.
CHAIRMAN JELKE: Moved by Steve.
Second --
MR. HILL: Second.
CHAIRMAN JELKE: -- by Marlin.
Let's take the roll call vote.
Steve?
MR. NOSTRAND: Yes, please.
CHAIRMAN JELKE: Jami?
MS. REYES: Yes.
22
CHAIRMAN JELKE: Marlin?
2 MR. HILL: Yes.
3 CHAIRMAN JELKE: Larry?
4 And I vote, yes.
5 MR. ESPINOSA: It looks like -- I'm sorry to
6 interrupt. It looks like Larry's dropped off.
7 CHAIRMAN JELKE: Okay. Thank you. If he
8 comes back on, Henry, let me know. And then for
9 anything that we vote on, I'll bring up his name.
10 MR. ESPINOSA: Will do.
11 CHAIRMAN JELKE: Okay. And now our -- so that
12 passes, regular board meeting minutes.
13 Now on to the operating budget.
14 Scott?
15 MR. SIMPSON: Henry, could you advance the
16 package to page 51.
17 MR. ESPINOSA: Okay. You should have that.
18 MR. SIMPSON: And could you --
19 MR. ESPINOSA: And --
20 MR. SIMPSON: Yeah. Can you zoom it out a
21 little bit.
22 MR. ESPINOSA: Yeah.
23 MR. SIMPSON: There we go. Perfect.
24 MR. ESPINOSA: Oh --
25 MR. SIMPSON: Good morning, everybody --
23
MR. ESPINOSA: There we go.
2 MR. SIMPSON: That's good. All right.
3 Larry's back on, by the way.
4 MR. ESPINOSA: Yes.
5 MR. SPRING: Can you guys hear me?
6 MR. ESPINOSA: Yes.
7 CHAIRMAN JELKE: We can hear you now.
8 MR. SIMPSON: As I alluded in the finance
9 committee meeting, you know, we've had many, many
10 detailed conversations with the City about the
11 preparation of the 2021 budget. These consist of
12 weekly calls talking about methodologies, looking
13 for alternative financing, whether it be federal,
14 state, et cetera, you know. And we spent a lot of
15 time, you know, on the expense side talking about
16 what we could do, what we should do, what we can
17 do. A lot of time spent on human resource issues.
18 In the one -on -ones we went through detail,
19 excruciating detail about diversions and how we got
20 to the budget that's before you for approval today.
21 Structurally the budget before you is structurally
22 balanced. And by that I mean reoccurring revenues
23 meet or exceed reoccurring expenditures. The
24 budget as presented has a coverage ratio of 4.88
25 that exceeds the 150 that we're required to have
1 for the bond indenture.
2 The one thing you'll notate is this year we
3 did not include an excess distribution to the City
4 in this budget. We did that intentionally because
5 we're not sure what's going to happen. Every day
6 when you read the news something else is going on
7 different with COVID, that type of thing. So, you
8 know, this budget is our best guess on what's going
9 to happen based on the most current information we
10 have, based on historical information and run rates
11 that we have.
12 So some of the highlight points that the
13 manual fiscal revenue this year compared to last
14 year from a budgetary basis is decreased by
15 13.2 million to a recommended number of
16 $36.2 million. We're proposing operating expenses
17 of 20 million, which is about a million dollars
18 less than the prior year, with a bottom line of
19 9.9 million. That 9.5 million again is before the
20 excess contribution to the City.
21 We've talked to the City about how we came up
22 with $2 million and it's -- they agree with our
23 methodology. You know, we have certain things that
24 the bond indenture requires. We also have a fiscal
25 policy that the Board adopted as far as obtaining
24
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1 certain reserves, whether it be workers' comp,
2 working capital, sick and vacation accruals, those
3 types of things. So the salient points are on the
4 revenue side. There are no rate increases
5 contemplated in this.
6 We do have some challenges, you know, due to
7 COVID, those type of the things. You know, we've
8 seen the on -street traffic, you know, coming back
9 with transactions, but the lots and off street
10 continue to be hit hard. People are not coming
11 back. They continue to work remotely which
12 directly impacts us. And, obviously, you know, the
13 tourism industry is not anywhere it needs to be,
14 On the expense side, the salary and wages have
15 a decrease of approximately $332,000. This
16 methodology for this is the same that we've used in
17 preceding years. We did not add any new FTES in
18 the budget. There were a couple of positions that
19 are vacated in the current year, we did not fill
20 those, and we actually took those into income. And
21 then, you know, we have some general increases
22 related to pension calls, health care, cost, those
23 type of things.
24 Rent/Building has a significant decrease. We
25 have a longtime tenant where the relationship just
1 wasn't making fiscal or risk management decisions,
2 so we decided not to renew that lease that ends in
3 November. So, you know, that was approximately
4 $16,000 a month that we were paying to them that
5 will not pay in rent. And that lot at margin --
6 marginally would break even or barely make any
7 rnoney. So it just carve to a good time where we
8 decided it was time to part ways.
9 The bank charges are significantly reduced
10 compared to prior years as that's a consequence of
I 1 revenue. Bank charges on average are about 7.6
12 percent of the revenue. We're plagued with
13 presenting card without capturing signature and ZIP
14 code. So we pay a little bit more for that, plus
15 our average ticket prices are lower than the
16 national average, so, you know, our interchange
17 rate tends to be a little bit higher. But
18 ironically our fraud rate is probably lower than
19 most entities of similar types across the country.
20 So I always scratch my head on that one.
21 And then when you get to below the line,
22 there's significant decrease on the interest
23 expense. If you recall in December of this year,
24 we went and refunded the bonds. That was the same,
25 about a million dollars a year. And the other
26
27
1 difference was the current budget -- the budget
2 that was adopted for 2020 contemplated doing an
3 additional new money issue at about $30 million.
4 We did not issue that bond, nor do I see us issuing
5 any new money in 2021.
6 One of the things that we are going to do in
7 2021 is we're going to sit down. We're going to
8 rereview the capital plan with the timeline and
9 viable projects, that type of thing, to see if
10 there is a need to do any additional financing. We
11 still have the reimbursement resolution in place
12 that was passed at the City Commission in the event
13 that we do go out for a debt issue that we can
14 recover some of the money. We can recover a
15 significant portion of the money for Regatta
16 Harbour since we paid for that in cash.
17 With that, I would respectfully ask for
18 approval of the 2021 operating budget.
19 CHAIRMAN JELKE: Any questions for Scott from
20 the Board?
21 MR. NOSTRAND: Mr. Chairman?
22 CHAIRMAN JELKE: Yes, sir.
23 MR. NOSTRAND: I'd like to thank Scott and his
24 staff for an incredible job during this
25 unbelievable challenge that we're going through
28
1 right now. I know Scott has spent -- and his
2 colleagues have spent endless hours running through
3 all kinds of scenarios, what could, what couldn't,
4 uncertainty, and all these things we know about.
5 And I think to present a budget like this is really
6 a feat, and I want to thank him and his team
7 members for that.
8 CHAIRMAN JELKE: Agreed.
9 MR. SIMPSON: The kudos -- the kudos really go
10 to Mr. Diaz, Mr. Soto, and Victor. They're the
11 ones that spent all the hours and had to deal with
12 me. So if anybody needs to be congratulated, it
13 needs to go to those guys. And I sincerely
14 appreciate all their efforts.
15 CHAIRMAN JELKE: Yes. And we'll look into the
16 worker's comp for them for having to work with you,
17 Scott.
18 MR. NOSTRAND: Mr. Chairman, if there's no --
19 MR. SIMPSON: I think they --
20 MR. NOSTRAND: -- other -- if there are no
2I other comments, I would make a motion to approve
22 the budget.
23 CHAIRMAN JELKE: So there's a motion on the
24 floor. Is there a second?
25 MR. HILL: Second.
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1 CHAIRMAN JELKE: We can take up discussion
2 after, okay?
3 There is a second by Marlin.
4 Any other questions or discussion of the
5 budget?
6 Hearing none, let's take a roll call vote.
7 Steve?
8 MR. NOSTRAND: Aye. Yes.
9 CHAIRMAN JELKE: Jami?
10 MS. REYES: Yes.
11 CHAIRMAN JELKE: Marlin?
12 MR. HILL: Yes.
13 CHAIRMAN JELKE: And Larry?
14 MR. SPRING: Yes.
15 CHAIRMAN JELKE: And I also say yes. So that
16 is approved. Thank you very much.
17 We need to do the same for the Knight Center,
18 I think, right?
19 MR. ESPINOSA: 1' n sorry --
20 MR. SIMPSON: Henry, can you advance --
21 MR. ESPINOSA: I'm sorry --
22 MR. SIMPSON: -- can you advance to page 63?
23 MR. ESPINOSA: Before we move on. Marlin,
24 your camera was turned off when you voted there.
25 CHAIRMAN JELKE: Oh. Sorry, Marlin. We need
30
1 to see you actually say yes.
2 There he is. I see him.
3 MR. HILL: Yes.
4 CHAIRMAN JELKE: Yes for the vote, right?
5 Okay. Thank you.
6 MR. ESPINOSA: Okay. Scott, which page did
7 you need?
8 MR. SIMPSON: 63, please.
9 Excellent.
10 So this is the proposed operating budget for
11 the James L. Knight Center for 2021. From a
12 chronological time point, we start this one in --
13 usually late January, early February, because the
14 City requested an advance even though the MPA
15 doesn't start theirs until mid April, May. So what
16 we're going to task with the approving is
17 appropriating the operating expense at $1,234,519.
18 Sort of the same methodology on the expense
19 side. The actual expenses this year compared to
20 last year have a -- about a $35,000 decrease. One
21 thing that I failed to notate in the discussion
22 with the budget for the MPA -- we're going to use
23 the same methodology here -- is that we're going to
24 backload a lot of these expenses. And so what
25 we're trying to do is accelerate cash inflow and
31
1 decelerate operating expense out for those.
2 So what we're looking to do is hold expenses
3 for the first couple of months to the lowest level
4 possible. So then when December rolls around, in
5 theory, we would have a month or -- you know, a
6 little over a month of expenses budgeted but not
7 incurred. And what that will do is that in the
8 event that something does dire happen to us in the
9 fiscal year, is that it gives us a little lead time
10 to start making additional actions to control
11 expenses.
12 Because if COVID hits like it did in March, we
13 didn't have any notice. Mid March it hit, and we
14 were done. So it took us some time to reach out to
15 vendors. It took us some time, you know, to cancel
16 this or that. So what we're trying to do is have
17 as much cushion on the expense side for lead time
18 to be -- to have a course of action if something
19 does happen.
20 So with that, I would respectfully ask the
21 approval of the proposed operating budget for the
22 Knight Center at $1,234,519.
23 MR. NOSTRAND: I would offer the motion to
24 approve.
25 MR. SPRING: Second.
32
1 CHAIRMAN JELKE: There's a motion and a second
2 on the floor. Any discussion or questions?
3 Hearing none, let's take a roll call vote.
4 Steve?
5 MR. NOSTRAND: Yes.
6 CHAIRMAN JELKE: Jami?
7 MS. REYES: Yes.
8 CHAIRMAN JELKE: Marlin?
9 Ml. HILL: Yes.
10 CHAIRMAN JELKE: Marlin, was that a yes?
11 Sony.
12 MR. HILL: Yes.
13 CHAIRMAN JELKE: Okay. And Larry?
14 MR. SPRING: Yes.
15 CHAIRMAN JELKE: And yes for me. So that
16 motion passes. Thank you, everybody.
17 MR. NOSTRAND: Mr. Chairman, I'd like to ask
18 Scott one more question while we're still in this
19 area. I apologize.
20 CHAIRMAN JELKE: Oh, no problem at all.
21 MR. NOSTRAND: Scott, I just think it's
22 important for the record, because I don't think we
23 covered it under the MPA budget, the current
24 reserves and what our current burn rate is, just to
25 get that on the record. I think it's important.
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1 MR. SIMPSON: We currently — the last time I
2 looked was the day before yesterday. We had
3 approximately $15 million in the DDA account.
4 DD -- or, excuse me, our regular checking account.
5 That doesn't contemplate any of the money that we
6 have in the reserves. The pro forma that we have
7 still have us being net profitable at the end of
8 September of this year and to the tune of about
9 $7 million. So from a liquidity standpoint, we're
10 amply reserved.
11 We also take that into account with the
12 proposed budget and the calculation of the excess
13 contribution of $2 million for next year for the
14 City. My primary goal in preparing this budget is
15 preservation of capital, ensuring that we're in
16 compliance with the bond covenants that bond
17 providers, you know, get paid. We've continued to
18 make those payments.
19 You know, we do make monthly escrow payments.
20 Then they make a one-time principal payment and
21 twice -a -year interest payment. Then after that, we
22 do look at the liability of our employees, vendors,
23 to ensure that everyone is well provided. Again,
24 you know, I want to leave the Parking Authority in
25 a better position than I found it, and that's my
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main mantra when I look at the budget. I hope that
2 answers your question.
3 MR. NOSTRAND: Yes, it does.
4 Thank you, Mr, Chairman.
5 CHAIRMAN JELKE: Thank you.
Any other questions for Scott?
Okay. Great.
Let's move on to the next item which I will
take up, which is the resolution implementing
procedures for the biennial election of board
chairperson and finance committee chair. I mean,
we've sort of handled that organically before, and
I just felt like it was good governance for us to
structure and allow people that want to be chair ol-
io run for chair. And this will just end for both
of the positions, and this would, I think, allow
that to happen in a more formalized process.
So Roland and Alex help me put this together,
and I'm assuming you've had a chance to read
through it. I don't know if anyone --
MR. NOSTRAND: Mr. Chair?
CHAIRMAN JELKE: -- had any questions about
it.
MR. NOSTRAND: 1 don't have a question, but is
it appropriate for me to make a nomination as the
35
1 finance chair?
2 CHAIRMAN JELKE: It would -- once we pass
3 this, I believe, then it would --
4 MR. NOSTRAND: Okay.
5 CHAIRMAN JELKE: -- then it would be
6 appropriate.
7 Any questions about how this -- how the
8 process works or any of that?
Okay.
MR. SPRING: No.
CHAIRMAN JELKE: Then can we have a motion to
approve the item?
MR. SPRING: So moved.
MR. HILL: Second.
CHAIRMAN JELKE: And a second. Great.
There's a motion and second. Let's go with the
roll call vote.
Steve?
MR. NOSTRAND: Yes.
CHAIRMAN JELKE:
MS. REYES: Yes,
CHAIRMAN JELKE:
MR. HILL: Yes.
CHAIRMAN JELKE:
MR. SPRING: Yes.
Jami?
Marlin?
Larry?
36
1 CHAIRMAN JELKE: And I vote yes as well. So
2 the motion passes.
3 And, Steve, if you would like to do that, I
4 think that's fine. I'm assuming that the role will
5 be taken up as soon as this meeting is over.
6 MR. NOSTRAND: Correct.
7 I'd like to nominate Mr. Larry Spring as the
8 finance chair. Everybody knows Larry's
9 qualifications, and he will be outstanding. So I'd
10 like to nominate Larry for that position.
11 CHAIRMAN JELKE: Is there a second?
12 MR. HILL: Second.
13 CHAIRMAN JELKE: Marlin seconded it. All
14 those in favor? I'm sorry. I got to do a roll
15 call vote.
16 So Steve?
17 MR. NOSTRAND: Yes.
18 CHAIRMAN JELKE: Jami?
19 MS. REYES: Yes.
20 CHAIRMAN JELKE: Marlin?
21 MR. HILL: Yes.
22 CHAIRMAN JELKE: Larry, I guess, yes, right?
23 So yeah.
24 MR. SPRING: I'rn going --
25 CHAIRMAN JELKE: You're not supposed to vote.
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