Okaloosa County BOCC — June 26, 2014 — reading text

MR. DIXON: I agree with you a hundred percent. 20 CHAIRMAN PETERSON: All right, then. What are we 21 going to do with this? 22 MR. SCHROEDER: Can -- 23 CHAIRMAN PETERSON: Anybody have a recommendation. 24 MR. SCHROEDER: Really just at this meeting, the -- 25 you've covered all your choices on these items that are Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 106  1.a 101 1 -- that are brought before you. The rest of it is the Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 budget presentation, and then at the end of that we would 3 ask you to vote up or down. 4 MR. GOSSOM: What did you do on the fire district? 5 I'm sorry. 6 MS. HOSHIHARA: I'm sorry? 7 MR. GOSSOM: What did you say? 8 MR. WINDES: We discussed it. 9 MR. GOSSOM: Okay. 10 CHAIRMAN PETERSON: I think right now our hands are 11 bound because of the agreement. 12 MS. HOSHIHARA: The construction -- 13 CHAIRMAN PETERSON: The agreement that, you know, 14 both get the same amount of money. 15 MR. GOSSOM: Okay. 16 MR. SCHROEDER: When those contracts run their 17 course, that can be redesigned. 18 MR. WINDES: And that's two years away. 19 MR. SCHROEDER: Well, there's options for renewals. 20 So we can bring it up -- 21 MS. HOSHIHARA: It expires September 30th of this 22 year. But then the contract says there's an option to 23 renew. But it -- at the end of this year, we can always 24 renegotiate terms. 25 MR. WINDES: How about putting that on your task Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 107  1.a 102 1 list, Ed, look at it when it's time. Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 CHAIRMAN PETERSON: And let's look at if there's a 3 notice, whatever, of how the contract ends, how does that 4 option kick in. 5 MR. SCHROEDER: I'll have that next meeting; does 6 that suffice? 7 MR. WINDES: Whenever you see appropriate. 8 MR. SCHROEDER: Okay. 9 VICE-CHAIRMAN RICE: Where are you getting the at 10 least 7 or 8,000? We've increased film commission; where 11 does that money come from? 12 MR. SCHROEDER: If something else gets cut. I 13 couldn't sit here and tell you where. 14 CHAIRMAN PETERSON: That's why he gets the big 15 bucks. 16 VICE-CHAIRMAN RICE: Okay. So the chamber's going 17 back to -- 18 MR. SCHROEDER: 20,000. 19 VICE-CHAIRMAN RICE: Original 20? 20 MR. DIXON: Ed, make sure that the fire district 21 and the county are notified if this is going to be 22 discussed, and they can at least be here to -- 23 MR. SCHROEDER: (Nodding head affirmatively). 24 MR. DIXON: Thank you. 25 MR. SCHROEDER: You bet. Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 108  1.a 103 1 So now we -- rather than -- the extreme would be go Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 line item per line item. Nobody wants to do that. 3 Interest of time, Charlotte has created a delightful 4 summary. So if you'll look on page 176 she can walk you 5 through the budget summary. And it relates to the bold 6 numbers you'll see in the next 10-15 pages of the actual 7 budget. 8 MS. DUNWORTH: So here we just have a recap of the 9 different various revenue sources as -- by each 10 percentage point. So we can see that we are estimating 11 2.6 million in tourist development tax for each of the 12 five things we have. We have the beach restoration 13 assessment of $350,000 in a separate department, that's 14 the MSBU department; the convention center in the third 15 penny is anticipated to generate about $861,000 in 16 revenue. 17 We have interest in other earnings in each of the 18 pennies dependent upon what their cash balance is. There 19 really should be interest earnings in the third penny, as 20 well. That appears to have been overlooked during this 21 year's budget process when they moved the convention 22 center out of the enterprise fund and into the special 23 revenue fund. That -- those interest earnings appear to 24 have been overlooked at that point. 25 And then we have the anticipated cash balances for Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 109  1.a 104 1 each of those pennies, 10/1 beginning of the fiscal year Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 10/11/15. So we see that we have the overall proposed 3 budget of $34.8 million in revenue. That is balanced 4 with $34.8 million in expenditures, classified by 5 personnel. We have personnel in the first, second, and 6 third pennies. 7 We have operating expenses across all of the 8 pennies, the convention center, the capital improvement 9 penny. That's really just the tax collector's 3% fee. 10 That's not really an operating expense, per se. We have 11 some capital, outlaying capital improvements budgeted in 12 the first four pennies. 13 We have grants and aids in the first penny. That 14 would be the remaining balance of the inner local with 15 Destin for the monitoring associated with the beach 16 restoration. And then we have 520,000 in the second 17 penny for the Destin Fire Control District. Then we have 18 inner fund transfers in the first penny. That's the 19 public works, their beach cleaning activities, as well as 20 the restroom cleaning. 21 And then we also have $520,000 in the second penny 22 for the Okaloosa -- the public safety department due 23 Okaloosa Island's lifeguards. We have the first penny's 24 contribution to the debt service on the MSBU. And then 25 we have the cash balances per the recommended policies Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 110  1.a 105 1 that the TDC set forth at our May 8th meeting. And then Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 we also have some other cash balance for future capital 3 improvements in the fourth penny. 4 So that's sort of a snapshot of the revenues and 5 expenses by category, as well as percentage. There's 6 further detail in the next page that provides summary 7 information, of the detailed line items that fall into 8 each of these categories. 9 And then beginning on page 181 is the actual line 10 item detail by each of the pennies. 11 CHAIRMAN PETERSON: Charlotte, I know I should know 12 this, but why is there a special line for the MSBU 13 special assessment. 14 MS. DUNWORTH: Because that is in a separate 15 department, in the accounting system. 16 CHAIRMAN PETERSON: But doesn't it come out of one 17 of the pennies? 18 MS. DUNWORTH: It comes -- so the MSBU -- yes, it 19 comes -- but only our half. Only half of it comes out 20 the first penny. 21 CHAIRMAN PETERSON: Okay. 22 MS. DUNWORTH: You know, there's the debt service. 23 CHAIRMAN PETERSON: That's what's referred to as 24 the MSBU, the debt service? 25 MS. DUNWORTH: Right, right. So the debt service Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 111  1.a 106 1 amount that's actually paid, is paid -- half of it's out Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 the first penny, or roughly that 320,000, and then 3 350,000 of it is paid from the MSBU, for the total of 4 670,000. So it's in two county departmental -- 5 CHAIRMAN PETERSON: Okay. 6 MS. DUNWORTH: -- buckets. 7 CHAIRMAN PETERSON: So the MSBU comes to the TDC 8 funds and is disbursed? 9 MS. DUNWORTH: It doesn't really come into the TDC 10 funds. It comes into its own accounting department, not 11 co-mingled with TDC revenues. 12 CHAIRMAN PETERSON: Okay. All right. Anybody have 13 any questions for Charlotte? Or comments? 14 You know, I have one comment, and then I'll 15 entertain a motion to approve. I just want y'all to know 16 we have had -- this is based on years of no storms. This 17 income, we've gone up with the income. If we have one 18 hiccup, something else is going to have to go out of all 19 these pennies, because we aren't going to have the money 20 if it happens in July, or, you know, I mean, this is 21 betting on having a better year than last year. Or -- or 22 a similar year. 23 Just so, you know, you're aware, you know, they're 24 -- we're going to approve this based on no hiccups. And 25 we have reserves, too. Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com