Okaloosa County BOCC — April 9, 2013 (meeting #1123) — reading text

1,679,187 These tax revenues distributed to local $2,800,000 governments may be used for any public 851,754 $2,100,000 purpose, including a pledge to repay $1,400,000 indebtedness. As a protection for bondholders, the tax revenues received by local governments $700,000 are deemed to be a replacement source for those $0 2009 2010 2011 2012 2013 tax revenues repealed by the enacting legislation. Actual Budget Projected The Communication Services Tax in Okaloosa County, as of January 1, 2006, is currently levied at 2.3%. The County has no additional increase available for this revenue source. Budget staff estimates the Fiscal Year 2013 revenue to decrease from the Fiscal Year 2012 total of $2,208,919 by approximately (-$529,732) to a total of $1,679,187. Fiscal Year 2014 revenue is estimated at $1,600,000 and currently is accounted for in the General Fund. The last five years of trends and projection are shown above. Local Option Tourist Taxes Local Option Tourist Taxes. Counties, for the most part, are authorized to levy 13,838,894 five separate tourist development taxes 13,128,501 13,092,667 12,561,052 on transient rental transactions pursuant $15,000,000 10,500,000 to Florida Statutes Chapter 125.0104. 10,500,000 10,392,040 10,250,000 $13,500,000 Depending on the particular tax, the levy 9,750,000 8,766,718 $12,000,000 may be authorized by vote of the $10,500,000 governing body or referendum approval. $9,000,000 Generally, the revenues may be used for $7,500,000 capital construction of tourist-related $6,000,000 facilities, tourist promotion, and beach and shoreline maintenance; however, the 1,510,076 $4,500,000 authorized uses vary according to the $3,000,000 particular levy. $1,500,000 $0 Okaloosa County now levies the entire 2009 2010 2011 2012 2013 five percent tourist development tax authorized on all transient rental Actual Budget Projected transactions in the sub-county tourist development tax district. The 1st percent is earmarked for beach, park improvements and maintenance, shoreline protection and restoration Page 7 Packet Pg. 14  1.b improvements. The 2nd percent provides administration, as well as beach, waterway and tourist destination facilities improvements along with lifeguard services. The 5th percent is used for tourism promotion. The 4th percent is pledged to payment of debt service for the Convention Center. Since Fiscal Year 2011, the Board called a large portion of these bonds, utilizing a Special Redemption provision. The remaining outstanding bonds should be completely called and paid off on October 1, 2013 utilizing this provision. The 3rd percent is for convention center and other facility operations. Fiscal Year 2013 revenue appears to be continuing to increase after the promotional advertising following the oil spill incident in the Gulf of Mexico. Budget staff estimates the Fiscal Year 2013 revenue to increase from the Fiscal Year 2012 total of $13,128,501 by approximately $710,393 to a total of $13,838,894. The last five years of the five percent levy trends and projection are shown on the graph on the previous page. The Fiscal Attachment: Budget Policy Document FY14 (1578 : Budget Policy Document) Year 2014 revenue is estimated to collect about $13,750,000. Local Option Infrastructure Surtax. Local governments are authorized to levy numerous types of local discretionary sales surtaxes pursuant to Florida Statutes Chapter 212.055. The only local option sales tax that has been utilized by the Board of County Commissioners, and continues to be a potential major source of discretionary funding for capital projects, has been the Local Option Infrastructure Surtax which was levied initially to fund Jail Construction in 1989 and most recently utilized solely by the Okaloosa County School Board to fund major school renovation from 1995 until 1999. According to the State 2013 estimate, a one-cent sales tax would generate $31,649,702 countywide. This tax is intended to be distributed to all local governments within the County. This tax, as divided by the State formula, would generate approximately $21,159,995 (66.85%) for the Board of County Commissioners and approximately $10,489,707 (33.15%) for Okaloosa’s municipal governments. Currently, 48 of the 67 counties in the State levy some portion of these discretionary taxes, with 20 of these counties levying the Infrastructure Surtax portion previously levied by Okaloosa County. Local Option Fuel Tax. Local governments are authorized to levy up to 12 cents of local option fuel taxes with three separate levies. All counties receive 7 cents worth of tax revenue on diesel fuel, regardless of Ninth-Cent Voted Fuel Tax whether or not the county is levying no tax on 1,100,000 $1,500,000 1,119,336 1,111,779 motor fuel or at the maximum level. 1,050,000 1,007,578 1,000,000 980,000 977,680