Okaloosa County BOCC — February 3, 2015 — Financial Update — reading text

Financial Update January 2015 FY 2014-15 AMENDED BUDGET: $35,142,500 Financial data as of 01/13/15 The adopted budget of $34,917,500 has been amended to record Aramark’s annual investment contribution and an FDOT Urban Corridor grant for seasonal bus service to Okaloosa Island and Destin. 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 $2.68M, for a total of $13.4M 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, $1.2M in actual revenue represents collections through November. January 15, 2015 Tourist Development Department, Okaloosa County, FL Financial Update – January 2015 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. October 2014 to October 2013). RevPar = gross monthly receipts divided by days in month divided by number of units (data taken from Tax Collector’s monthly reports) January 15, 2015 Tourist Development Department, Okaloosa County, FL 2 of 6 Financial Update – January 2015 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: $20.0M reserve revenue – $17.8M reserve expenses = $2.2M budgeted use/drawdown, primarily for capital projects. Each percentage of the bed tax is required to be spent in a certain way per County Ordinance. Amended Budget: (1)$15K transferred from convention center operations to personnel to cover overtime; (2) $25K added to convention center operations for Aramark annual investment contribution; (3)$15K transferred from special events to capital for interactive trade show booth purchase; (4)$74K transferred th from 5 penny promotional reserve for Destin to Fish production. January 15, 2015 Tourist Development Department, Okaloosa County, FL 3 of 6 Financial Update – January 2015 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 January 15, 2015 Tourist Development Department, Okaloosa County, FL 4 of 6 Financial Update – January 2015 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 Amended Budget: (1)$15K transferred from convention center operations to personnel to cover overtime; (2) $25K added to convention center operations for Aramark annual investment contribution. FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • expansion, renovation, reconstruction of the convention center and outdoor venues January 15, 2015 Tourist Development Department, Okaloosa County, FL 5 of 6 Financial Update – January 2015 FIFTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • tourism promotion Amended Budget: (3)$15K transferred from special events to capital for interactive trade show booth th purchase; (4)$74K transferred from 5 penny promotional reserve for Destin to Fish production. PROMOTIONAL ACTIVITIES (-548xxx accounts) Amended Budget: (3)$15K transferred to capital for interactive trade show booth purchase; (4)$74K th transferred from 5 penny promotional reserve for Destin to Fish production. EMERALD COAST CONVENTION CENTER Convention center information for the period October – December 2014. TDC Recommendation to BCC Approve the financial update as presented. January 15, 2015 Tourist Development Department, Okaloosa County, FL 6 of 6