Okaloosa County BOCC — May 23, 2016 — I. d. Proposed Budget

TOURIST DEVELOPMENT DEPARTMENT MEMORANDUM DATE: May 23, 2016 TO: Tourist Development Council FROM: Ed Schroeder, Tourist Development Department Director Charlotte Dunworth, Finance, Administration, & Compliance Manager SUBJECT: FY 2016-17 Proposed Budget STATEMENT OF ISSUE: Consideration and discussion of the proposed FY 2016-17 budget. BACKGROUND: A budget is a planning tool that identifies expenses by account classification. Some dollar amounts reflect known contractual values, while other dollar amounts are estimates. Not all anticipated amounts may be necessarily incurred, and some expenses may be incurred that are not currently identified because a need or opportunity arises during the year that was unanticipated. The attached document reflects the proposed FY 2016-17 Tourist Development Department budget that will be presented to the County Administrator. Total revenues equal total expenses for each percentage point, but more importantly, recurring revenues fund both recurring and non-recurring expenses to a large extent. Use of non-recurring revenues is limited to capital improvements and one-time marketing initiatives. STAFFING – The FY17 budget includes 41 FT positions compared to 37 FT positions in FY16. Two positions were added mid-year FY16 as part of the internalization of marketing functions (Digital Marketing Specialist, Sports & Events Sales Specialist) and two new positions are budgeted for FY17 (Client Services Coordinator to support group sales and Content Specialist to manage website content). MARKETING – The FY17 strategic marketing plan totals $6.55M compared to $4.49M in FY16. A detailed media and marketing plan for October – December 2016 will be brought forth at a future date. Activity FY16 FY17 Promotional Items & Collateral 140,000 152,400 Local Event Promotional Activities (e.g. Mardi Gras) 5,000 5,000 Trade Show Fees 59,225 53,605 Advertising Agency Services 565,000 0 Website Development & Maintenance 82,068 133,000 Public Relations (e.g. Familiarization Tours, Road Shows) 95,000 95,000 Media Campaign (e.g. print, digital, tv, radio) 2,513,270 3,470,000 Campaign Production 200,000 500,000 Local Event Marketing Funding Applications 219,850 475,528 Advertising (e.g. Welcome Centers, Publication Listings) 11,480 16,705 Promotional Reserves 100,000 300,000 Allegiant Air Paid Media Services 500,000 1,775,148 $4,490,893 $6,976,386  Seasonality FY16 FY17 Media Allocation FY16 FY17 Fall 601K 1.011M Print 515K 674K Christmas 100K 168K Online 965K 1.517M Snowbirds 133K 337K TV 444K 1.011M Spring 543K 1.011M Radio 63K 101K Summer 350K 337K Other 545K 67K Non-Seasonal/Niche 595K 268K $2.532M $3.470M Groups/Meetings 210K 337K $2.532M $3.470M PUBLIC SAFETY SERVICES – F.S. 125.0104 was recently amended to authorize that the County may use u