You are on page 1of 38
CARLOS A. GIMENEZ MavoR MIAMLDADE COUNTY April 12, 2019 ‘The Honorable Francis Suarez City of Miami Mayor 3500 Pan American Drive Miami, FL 33133 Dear Mayor Suarez: ‘Thank you for granting me the opportunity yesterday to present to you and the City of Miami Commission on my plan to create the Transportation Authority of Miami-Dade (TAMD). While I enjoyed our discussion, | was a bit surprised by some of the comments you made, Of particular note, you mentioned that the City of Miami has to subsidize its trolleys. This comment caught me by surprise because the latest audit report on the City of Miami's use of Charter County Transportation System (Surtax) Proceeds, which is attached for your review, shows that the City of Miami has more than $58 million in unspent Proceeds. If you spent those Proceeds to the point that you have to subsidize your trolleys, we would certainly ike ‘an accounting report that details this activity. As you know, as part of our Interlocal Agreement, the City must apply at least 20 percent of the Proceeds to Transit-related projects, such as circulator buses, bus shelters, bus pullout bays, or other related infrastructure. CITT Resolution 09-055 allows for the rollover of unspent Surtax funds for up to five years, provided that the City's Five-Year Transportation Plan demonstrates how the funds will be used. By ‘way of this letter, m reminding you of these unspent funds because although we don't think you're quite there yet, you're coming close to your five-year rollover deadline ‘Secondly, you stated that yesterday was the first time you saw my TAMD proposal. This also caught me by surprise because my assistant emailed you a copy of the proposal on April 2, 2019 (see attached email). | may have hand- delivered you an updated proposal yesterday, but my records show that a letter outlining my proposal was sent to you well over @ week ago, That would have allowed you enough time to familiarize yourself with my plan ~ in the ‘event that you somehow missed the numerous reports on the TAMD by the local media, Lastly, you said that you were happy that the State of Florida has ellowed up to 25 percent of County Surtax Proceeds to be distributed annually to municipalities. It appears as if you interpret this to mean that the City's allocation will increase from 20 to 25 percent. However, | encourage you to take a closer look at the legislation sponsored by Representative Avila. Because while you may think that the State will increase the City’s allocation from 20 to 25 percent, | interpret the language to mean that the State actually intends to cap the municipalties’ allocation at 25 percent. | look forward to your response. Sincerely, Attachments The Honorable Chairman Ken Russell ‘and Members, City of Miami Commission Emilio T. Gonzalez, City Manager, City of Miami Cathy Jackson, Director, Miami-Dade County Audit and Management Services Department STEPHEN P. CLARK CENTER + 111 N.W. FIRST STREET © 29TH FLOOR + MIAM, FLORIDA 39126-1990 + (205) 275-1880 » FAX (905) 975-1262 701 NW 1" COURT - SUITE 8-175 ‘MIAMI, FLORIDA 33136 ‘TELEPHONE: 786-469-5900 FAX: 786-469-5933 AUDIT AND MANAGEMENT SERVICES DEPARTMENT = OVERTOWN TRANSIT VILLAGE July 23, 2018 Mr. Emilio T. Gonzalez, City Manager City of Miami 444 SW 2" Avenue, 10" Floor Miami, Florida 33130 Re: Audit Report - Charter County Transportation System Surtax Review — City of Miami Dear Mr. Gonzal: Enclosed is the above-captioned Audit Report that was previously discussed with your Staff. Although the Office of the Citizens’ Independent Transportation Trust will be contacting you to resolve the audit findings, a reply is requested within 60 days, We appreciate the courtesies and assistance provided to our staff during the audit process, Please contact me at 786-469-5900, if you have any questions or require further information, Sincerely, Cath echo Catny Jackson Director Chag c: Javier A. Betancourt, Executive Director, OCITT Sandra Bridgeman, Assistant City Manager, City of Miami Memorandum a Date: July 23, 2018 To: Javier A. Betancourt, Executive Director Office of the Citizens’ Independent Transportation Trust (OCITT) From: Cathy Jackson, Director Audit and Management Services Department (AMS) Subject: Audit Repor City of Miami Charter County Transportation System Surtax Review — PURPOSE AND SCOPE We performed a review of the City of Miami’s use of Charter County Transportation System Surtax (Surtax) Proceeds remitted by Miami-Dade County (County) for the two years ended September 30, 2017. ‘The primary objective was to ensure that Surtax Proceeds were used in compliance with the Interlocal Agreement for Distribution, Use and Reporting of Charter County Transit System Surtax Proceeds Levied by Miami-Dade County (Interlocal Agreement) executed on July 10, 2007. BACKGROU! Miami-Dade County Ordinance (Ordinance) No. 02-116, enacted on July 9, 2002, imposed a one- half of one percent Surtax on cligible sales transactions for Transportation-related projects However, at least 20% of the Proceeds received by the County must be distributed to municipalities incorporated as of November 5, 2002, on a pro-rata basis using population statistics (Schedule V). ‘The Surtax Program is administered by the Citizens’ Independent Transportation Trust (CITT), a group comprised of 15 members appointed by the Board of County Commissioners, County Mayor, and Miami-Dade League of Cities. Pursuant to the Interlocal Agreement, the City of Miami (City) must annually continue the same level of General Fund support for Transportation projects appropriated in its Fiscal Year (FY) 2002 Budget (Maintenance of Effort), which totaled $4.7 million (Table 1). Surtax monies may be used to develop, construct, equip, maintain, operate, or expand County-wide bus systems, fixed guideway rapid transit systems, roads, and bridges, as well as secure such bonds or pay debt service. Further, the City must apply at least 20% of the Proceeds to Transit-related projects, such as circulator buses, bus shelters, bus pullout bays, or other related infrastructure. CITT Resolution 09-055, adopted July 30, 2009, allows for the rollover of unspent Surtax funds for up to five years, provided the City’s Five-Year Transportation Plan demonstrates how the funds will be used. See ‘Schedule I for summary financial information.