Okaloosa County BOCC — January 30, 2014 — IV.b. Financial Update

Financial Update January 2014 FY 2013-14 AMENDED BUDGET: $36,713,969 Financial data as of 01/21/14 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 walkovers, FDOT grant funds for seasonal transit service on Okaloosa Island and Destin, and general reserve carryforwards. The tourist development department has three recurring revenue sources – tourist development tax (5 percent), convention center fees (e.g. room & equipment rentals, ticket sales), and interest income on cash balances – along with two non-recurring revenue sources – grants & assessments (BP, FDOT, FDEP, MSBU) and reserves. Reserves are the largest component of budgeted revenues because the budget reflects current cash on hand as well as anticipated revenues. 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 remit bed tax collections to the tax collector by the 20th of each month for the preceding month. The tax collector reconciles and remits the revenues to the County by the 10th of the following month. Due to the timing of this process, the $953K in actual revenue only represents collections through November 30th. January 28, 2014 Tourist Development Department, Okaloosa County, FL Financial Update – January 2014 The tourist development department has several recurring expenses – personnel, beaches & parks, visitor services & lifeguards, convention center, and tourism promotion – along with two non-recurring expenses – grants & assessments and reserves. 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 use/drawdown for capital projects Each percentage of the bed tax is required to be spent in a certain way per County Ordinance. January 28, 2014 Tourist Development Department, Okaloosa County, FL 2 of 5 Financial Update – January 2014 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 28, 2014 Tourist Development Department, Okaloosa County, FL 3 of 5 Financial Update – January 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 FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) expansion, renovation, reconstruction of the convention center and outdoor venues January 28, 2014 Tourist Development Department, Okaloosa County, FL 4 of 5 Financial Update – January 2014 FIFTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) tourism promotion STRATEGIC MARKETING PLAN: $2,600,000 The FY 2014 Strategic Marketing Plan was approved by the Board of County Commissioners in November 2013. A task order is required for all promotional activities under the SMP, and is the mechanism for actually authorizing individual promotional expenses/activities. To date, task orders in the amount of $1.9M have been issued to the ad agency and $88K has actually been paid to date. Another $241K in payments is pending here in January for October activities, primarily related to the fall and christmas campaigns. Co-Op Opportunities are being reevaluated. Additional opportunities are being designed for partner review, and some of the funding is being reallocated to other marketing plan components to make a larger promotional impact for our area. To date, $32K has been reallocated from co-op to leisure. BP SPEND PLAN $957,471 The FY 2014 BP Spend Plan was approved by the Board of County Commissioners in November 2013. Task orders have been issued for all recovered funds and $50K has actually been paid to date. All funds must be expended no later than March 31, 2014. January 28, 2014 Tourist Development Department, Okaloosa County, FL 5 of 5