Okaloosa County BOCC — February 3, 2015 — Local Event Funding Policy — agenda request — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 3, 2015 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: Local Event Funding Policy DEPARTMENT: Tourist Development Department BCC DISTRICT: All STATEMENT OF ISSUE: The Auditor General’s January 2013 audit report on the use of tourist development taxes and funds received from British Petroleum (BP) cited two findings related to Special Events and Sponsorships funding. To complete the corrective action related to Findings 15 and 16 of the Auditor General's Preliminary and Tentative Audit Findings, staff has further strengthened policies and procedures related to this type of funding. BACKGROUND: The policy has been renamed and revised to clarify authorized uses of funding and the payment process, integrate the application process into the budget cycle, and provide for an economic impact-based funding methodology. The new policy is anticipated to be mostly revenue-neutral for events funded over the last year. Key aspects of the policy are outlined below: • Applicants must attend the Local Event Marketing Funding educational session in April. Events that applied for funding in FY14 or FY15 will be notified of the new policy via electronic and postal service mail so they may plan to attend the April educational session. The purpose of this requirement is to ensure potential applicants receive instruction on funding guidelines, Emerald Coast logo requirements, authorized uses, funding levels, application process, and payment process. It also affords an exchange of questions and answers beneficial to all applicants. Failure to attend the April session or a make-up session with TDD staff may deem the applicant ineligible for funding in the upcoming fiscal year budget. • Applications must be submitted annually no later than May 1. Applications for events to occur October 1, 2015 through September 30, 2016 are due no later than May 1, 2015. The purpose of this deadline is to integrate local event marketing funding into the budget process to streamline the review and approval process and to properly budget for this category of expense. An exception to the May 1 application deadline may be granted by the Tourist Development Director for a new, previously unfunded event. • Authorized uses of funding include print, online, tv & radio, direct mail, and direct sales marketing efforts, as well as site fees (excluding ECCC fees). Additionally, the new policy authorizes Emerald Coast-branded promotional items and prizes, sports sanction fees, and concert/performance booking fees. If funding is requested for Emerald Coast-branded promotional items and prizes, the distribution plan along with quantities and unit costs must be documented. Determination of out-of-market advertising and marketing merit and Emerald Coast logo prominence is at the sole discretion of the Tourist Development Department. • An event’s maximum funding level is a percentage of the event’s economic impact as calculated on the application form based on seasonality, and capped by the room night tiers. It is important to note that this calculation is for purposes of Local Event Marketing Funding only; it is not intended to represent the actual economic impact of an event. For purposes of the calculation, lodging impact is based on the average monthly room night based on STR data and other impact is based on Florida Statutes $36 per diem meals plus a $20 daily allowance for incidentals. To ensure funding promotes lodging room occupancy during the non-summer season, events held in summer (Jun-Jul) are eligible for up to 1% of economic impact, events held in shoulder seasons (Aug-Oct and Mar-May) are eligible for up to 5% of economic impact, and events held in winter (Nov-Feb) are eligible for up to 10% of economic impact. Since lodging occupancy is the primary goal, room night tiers are established to ensure that larger events qualify for higher funding levels. There are approximately 10,700 room nights in the taxing district. Tier 1 - up to $20,000 per Event • 100 documented room nights minimum Tier 2 - up to $50,000 per Event • 5,000 documented room nights minimum • Ticket sales/Event registration tied to room nights Tier 3 - up to $100,000 per Event • 10,000 documented room nights minimum • Ticket sales/Event registration tied to room nights • Two-night minimum lodging stay • Payment requests must be submitted no later than September 30. Payment may only be requested after the Event has occurred. No Payment Request forms will be processed in advance of the Event. Applicants are strongly encouraged to submit the Payment Request within 30 days after the end date of the Event. However, funding lapses at fiscal year end (September 30) and no payment requests will be accepted thereafter, except for events conducted in September. Post event information such as room nights and attendance is integrated into the payment request form to reduce paperwork. The purpose of the fiscal year deadline is to eliminate TDD staff time to monitor event end dates and provide applicants with sufficient time to gather requisite backup documentation. • Payments are on a reimbursement basis only. Copies of proof of performance and proof of payment, specific examples of which are included in the policy, must accompany the applicant’s invoice and payment request. • Tracking of room nights is required. Reports from lodging partners is preferable, but registration rosters, visitor surveys, or ticket sales data are also acceptable. An applicant may elect to use the sample Participant Registration Roster or Visitor Survey provided in the policy, or may elect to develop his own with an appropriate level of detail to determine room nights. • An event receiving Local Event Marketing Funding may not receive any other financial assistance from the Okaloosa County Tourist Development Department during the same fiscal year. At its January 22 meeting, the Tourist Development Council approved the Local Event Marketing Funding policy and recommended it be effective for all events submitting an application after the policy is adopted by the Board. OPTIONS: Approve or Disapprove RECOMMENDATION: Approve the Local Event Marketing Funding policy, effective for all events submitting an application after the policy is adopted by the Board. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator