Okaloosa County BOCC — August 28, 2014 — III.b. Financial Update — reading text

Financial Update August 2014 FY 2013-14 AMENDED BUDGET: $36,823,319 Financial data as of 08/19/14 The adopted budget of $33,967,750 has been amended during the year to record BP grant funds for marketing, FDEP grant funds for Okaloosa Island dune restoration, FDOT grant funds for seasonal transit service on Okaloosa Island and Destin, FDEP grant funds for Okaloosa Island dune walkovers, and reserve carryforwards. REVENUE ANALYSIS Reserves are the largest component of budgeted revenues because the budget reflects anticipated revenues as well as current cash on hand. Reserves/cash on hand is a budget “placeholder” and represents the accumulation of unspent prior year bed tax dollars; it’s not an actual source of incoming revenues for the year. Tourist development taxes comprise the largest part of actual annual revenue collections. Each percentage is anticipated to generate $2.4M, for a total of $12M in bed taxes. Lodging establishments th remit bed tax collections to the tax collector by the 20 of each month for the preceding month. The tax th collector reconciles and remits the revenues to the County by the 10 of the following month. Due to the timing of this process, $8.4M in actual revenue represents collections through June. Based on these receipts, tourist development tax revenues are on track to generate $13.9M this year, which is $1.9M or 16.2% more than budgeted and $415K or 3.1% more than prior year collections. August 21, 2014 Tourist Development Department, Okaloosa County, FL Financial Update – August 2014 EXPENSE ANALYSIS Reserves are the largest component of budgeted expenses because budgeted expenses must equal budgeted revenues. The budgeted use/drawdown of reserves is reflected in the amount by which budgeted reserves expenses are less than budgeted reserves revenues: $21M reserve revenue – $15M reserve expenses = $6M budgeted use/drawdown for capital projects. Each percentage of the bed tax is required to be spent in a certain way per County Ordinance. August 21, 2014 Tourist Development Department, Okaloosa County, FL 2 of 6 Financial Update – August 2014 EXPENSES BY LEVEL OF TOURIST DEVELOPMENT TAX RESTRICTION FIRST PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • beach park facilities or beach improvements • beach & waterway maintenance, renourishment, restoration, enhancement, access • tourist destination facilities SECOND PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • visitor services, brochure distribution, communication and research • tourist bureau administration • lifeguard services and protection August 21, 2014 Tourist Development Department, Okaloosa County, FL 3 of 6 Financial Update – August 2014 THIRD PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • operations, maintenance, improvement of Visitor Welcome or Information Centers, Convention Center, and Tourist Destination Facilities • promotion of the Convention Center and Tourist Destination Facilities FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • expansion, renovation, reconstruction of the convention center and outdoor venues August 21, 2014 Tourist Development Department, Okaloosa County, FL 4 of 6 Financial Update – August 2014 FIFTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • tourism promotion STRATEGIC MARKETING PLAN RevPAR Revenue per available room (RevPAR) is a widely used performance metric in the lodging industry. RevPar is a measurement for a point in time, so it is most appropriately used when comparing equivalent time periods (e.g. February 2014 to February 2013). However, since year-to-year comparison is not possible until twelve months of data are obtained, it is being presented here to establish benchmarks. RevPar = gross monthly receipts divided by days in month divided by number of units (data taken from Tax Collector’s monthly reports) August 21, 2014 Tourist Development Department, Okaloosa County, FL 5 of 6 Financial Update – August 2014 EXPENDITURE TRANSACTION ANALYSIS Pursuant to Florida Statutes 125.0104(4)(e), “The council shall continuously review expenditures… Expenditures which the council believes to be unauthorized shall be reported to the county governing board and the Department of Revenue”. One of the most comprehensive reports from the County’s accounting system is the Expenditure Transaction Analysis, which lists the fiscal period, date, transaction type, check number, vendor number, vendor name, dollar amount, and description for each tourist development tax expenditure transaction. This report is being provided to assist the TDC in identifying possibly unauthorized expenditures. The following pages provide transaction detail for the months of June & July 2014. TDC Recommendation to BCC Approve the financial update as presented. August 21, 2014 Tourist Development Department, Okaloosa County, FL 6 of 6  **July Transactions** SUNGARD PENTAMATION, INC. PAGE NUMBER: 1 DATE: 08/20/2014 OKALOOSA COUNTY BOCC AUDIT11 TIME: 09:51:03 EXPENDITURE TRANSACTION ANALYSIS SELECTION CRITERIA: transact.yr=’14’ and transact.period=’10’ and transact.fund=’104’ ACCOUNTING PERIOD: 11/14 FUND − 104 − TOURIST DEVELOPMENT FUND DEPARTMENT − 1151 − 5TH TDT−TOURISM PROMOTION ACCOUNT DATE T/C ENCUMBR REFERENCE VENDOR BUDGET EXPENDITURES ENCUMBRANCES DESCRIPTION 534003 CS−CONSULTING 10/14 07/02/14 21 V1406819 21200456 GAIL MORGAN 3,166.67 .00 FILM COMMISSION SVCS TOTAL CS−CONSULTING .00 3,166.67 .00 534018 CS−CHAMBER OF COMMERCE 10/14 07/10/14 21 1406947 002241 DESTIN AREA CHAM 5,000.00 .00 APR−JUN2014 TDD TOTAL CS−CHAMBER OF COMMERCE .00 5,000.00 .00 534500 CS−PERSONNEL 10/14 07/02/14 21 V1406809 009350 KELLY SERVICES,I 121.24 .00 LATIMER 6/15/14 10/14 07/02/14 21 V1406809 009350 KELLY SERVICES,I 237.30 .00 THATCHER 6/8/14 10/14 07/02/14 21 V1406809 009350 KELLY SERVICES,I 549.91 .00 WARDLOW 6/15/14 10/14 07/10/14 21 V1406988 009350 KELLY SERVICES,I 69.28 .00 LISHEFSKI 6/22/14 10/14 07/10/14 21 V1406988 009350 KELLY SERVICES,I 692.80 .00 WARDLOW 6/22/14 10/14 07/17/14 21 1407141 21101150 LANDRUM STAFFING 1,064.00 .00 NIXON 6/21/14 10/14 07/17/14 21 1407141 21101150 LANDRUM STAFFING 108.00 .00 HALSEY 6/21/14 10/14 07/17/14 21 1407141 21101150 LANDRUM STAFFING 252.70 .00 NIXON 6/28/14 10/14 07/24/14 21 V1407270 009350 KELLY SERVICES,I 138.56 .00 WARDLOW 6/29/14 10/14 07/24/14 21 V1407270 009350 KELLY SERVICES,I 207.84 .00 LISHEFSKI 6/29/14 10/14 07/24/14 21 V1407270 009350 KELLY SERVICES,I 237.30 .00 THATCHER 6/22/14 TOTAL CS−PERSONNEL .00 3,678.93 .00 540002 TRAVEL OUT−OF−COUNTY 10/14 07/17/14 21 V1407147 21200456 GAIL MORGAN 1,664.36 .00 LOS ANGELES CA TOTAL TRAVEL OUT−OF−COUNTY .00 1,664.36 .00 540005 TRAVEL LODGING EXPENSES 10/14 07/17/14 21 V1407147 21200456 GAIL MORGAN 1,494.43 .00 LOS ANGELES CA TOTAL TRAVEL LODGING EXPENSES .00 1,494.43 .00 545990 INSURANCE−OTHER 10/14 07/01/14 19 BUDGET−5 62.00 GENERAL LIABILITY TOTAL INSURANCE−OTHER .00 62.00 .00 547002 PRINTING & BINDING 10/14 07/29/14 21 V2140238 014799 BANK OF AMERICA 740.00 .00 OFFICE DEPOT #1099 TOTAL PRINTING & BINDING .00 740.00 .00 548003 TRADE SHOW FEES 10/14 07/31/14 21 V1407429 21200456 GAIL MORGAN 2,000.00 .00 REGISTRATION TOTAL TRADE SHOW FEES .00 2,000.00 .00 548010 AGENCY BASE SVCS−MONTHLY 10/14 07/02/14 21 1406832 21300295 PETER A MAYER AD 1,522.47 .00 TRAVEL HARD COST 10/14 07/10/14 21 1407009 21300295 PETER A MAYER AD 2,350.25 .00 TRAVEL HARD COST 10/14 07/17/14 21 1407159 21300295 PETER A MAYER AD 18,232.50 .00 BASE SVCS 10/14 07/17/14 21 1407159 21300295 PETER A MAYER AD 18,232.50 .00 BASE SVCS RUN DATE 08/20/2014 TIME 09:51:03 SUNGARD PENTAMATION, INC. − FINANCIAL ACCOUNTING  **July Transactions** SUNGARD