Okaloosa County BOCC — June 26, 2014 — reading text

Packet Pg. 112  1.a 107 1 MS. DUNWORTH: And then -- Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 CHAIRMAN PETERSON: Just -- 3 MS. DUNWORTH: Sorry. 4 CHAIRMAN PETERSON: Go ahead. No, you go ahead. 5 You go ahead. 6 MS. DUNWORTH: I do want to say -- this is not in 7 your packet -- but I do want to say that the budget is 8 balanced in so far as for the first four pennies, the 9 recurring revenues equal or exceed your recurring 10 expenses. So for instance, in the first penny, the 11 recurring revenues exceed the recurring expenses by about 12 700,000. 13 In the second penny it's about $42,000. We're 14 pretty even in the third penny, only about $419. And 15 then in the fifth penny we are recurring expenses 16 exceeding our recurring revenues. So in the fifth penny, 17 to fund the marketing plan, in essence, the $1.9 million, 18 we are going to be taking into reserves to fund that. 19 Because we only have $2.68 million in tourist 20 development revenues coming in, 60,000 roughly of 21 interest earnings, and we've got a budget of about $3 22 million in that penny. So, you know, looking forward, 23 that's probably not sustainable. But we do have reserves 24 in that penny. 25 For this year we can -- I think the plan is to go Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 113  1.a 108 1 forth with -- go forth with this augmented strategic Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 marketing plan, the media plan, and then evaluate it, see 3 if it generates the anticipated ROI and tourist 4 development tax, and support itself going forward. 5 so ... 6 CHAIRMAN PETERSON: And if you recall, we're trying 7 to catch up to Walton County. 8 MR. WINDES: Yep. 9 MS. JOYCE: How does that impact the -- I know 10 we're getting to the reserve policy, that's coming up 11 next, but how will that impact what we're wanting to do 12 with the reserve policy? 13 MS. DUNWORTH: So that is -- the reserve policy, as 14 recommended at the last meeting, I think that's going to 15 be challenging in the -- to get -- to build up the 14 16 million is going to be a challenge moving forward. 17 Because there's really -- you know, that third penny is 18 very tight. And the second penny really, also, 19 projecting -- and, you know, I did these projections and 20 now I am getting into the reserve policy discussion. 21 But I did these projections very conservatively. I 22 estimated a 3% annual increase in revenues. I estimated 23 a 3% annual increase in operating expenses. But then I 24 did a 5% increase in personnel, just thinking healthcare, 25 my experience with healthcare, and retirement Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 114  1.a 109 1 contributions, 5% is probably optimistic. Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 But anyhow, so looking at this going forward, I 3 think the reserve policy's going to be challenging to 4 build that up. And then looking at the fifth penny, the 5 promotion -- the promotional activities -- it's hard to 6 say if they -- if they are effective would be great, if 7 not ... 8 CHAIRMAN PETERSON: Because I do -- 9 MS. DUNWORTH: Hard to say. 10 CHAIRMAN PETERSON: -- have a motion to recommend 11 approval of this budget to county commissioners. 12 VICE-CHAIRMAN RICE: I'll second. 13 CHAIRMAN PETERSON: And Tom Rice seconds. 14 Any discussion? All those in favor say aye. 15 (Ayes) 16 CHAIRMAN PETERSON: Anyone opposed? 17 MS. JOYCE: I oppose. 18 CHAIRMAN PETERSON: Okay. Rachel opposes. 19 MR. WINDES: Mr. Chairman? 20 CHAIRMAN PETERSON: Yes? 21 MR. WINDES: I might -- I just want to say to 22 Charlotte -- I can't speak for the other panel members -- 23 but since you've come here, and I've noticed that I felt 24 a lot more confident about the books, and the numbers, 25 and I think you're doing a great job for us, and I want Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 115  1.a 110 1 so say, from me anyway, I appreciate it. Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 MS. DUNWORTH: I appreciate it. 3 (Applause) 4 MR. WINDES: Thank you, thank you. 5 CHAIRMAN PETERSON: Since you're on a roll, let's 6 go ahead and talk about reserves. 7 MS. DUNWORTH: So we -- I guess I said my little 8 blurb about -- you'll see the bulleted points there at 9 the May 8th meeting, what we recommended for the reserve 10 policies, 35% of operations, 13 million for beach 11 restoration, with 500,000 budgeted annually to build 12 reserves up to 14 million. 13 2 million for East Pass dredging; 1.5 million for 14 the convention center; insured loss deductibles, and the 15 25% of promotional activities. 16 And then on the next page, at the top of that, 17 you'll see I went ahead and inserted a loose paper in 18 your binder. 19 MR. WINDES: Charlotte, what page are we on? 20 MS. DUNWORTH: I am on page 196, top of 196. 21 And the loose page is a blown-up version of that, 22 because once it printed, I realized you would need a 23 microscope to see it. So you can see that the proposed 24 or recommended budget meets or exceeds the recommended 25 reserve levels for operations, East Pass dredging, the Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 116  1.a 111 1 convention center, insured loss deductible, as well as Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 promotional activities. 3 And then we are aware that we do not quite meet the 4 beach restoration policy. And so it will take us several 5 years to get there. And so I've basically said what I 6 was going to say, was that when I took this out five 7 years, it's going to be tough getting $500,000 additional 8 built up for the beach restoration in future years. 9 CHAIRMAN PETERSON: So we need a motion to 10 recommend this reserve policy to the board of county 11 commissioners? 12 MS. DUNWORTH: (Nodding head affirmatively). 13 CHAIRMAN PETERSON: Do I hear that motion? 14 MR. GOSSOM: I'll make a motion. 15 MS. JOYCE: I'll make a motion. 16 CHAIRMAN PETERSON: Thom-- Thom moves -- Rachel, 17 did you -- 18 MS. JOYCE: I'll second. 19 CHAIRMAN PETERSON: Rachel seconds. 20 Any further discussion? All those in favor say 21 aye. 22 (Ayes) 23 CHAIRMAN PETERSON: Anyone opposed? 24 All right, motion carries. 25 Charlotte, we appreciate it very, very much. Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 117  1.a 112 1 Again. And I have to ask, again, we -- there is no -- Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 did we -- do we approve this part of the plan? 3 MR. SCHROEDER: Yes, sir. The marketing plan was 4 part of the budget. 5 CHAIRMAN PETERSON: Okay. Including the time 6 frame? 7 MR. SCHROEDER: Yes. 8 CHAIRMAN PETERSON: Okay. 9 MR. SCHROEDER: Yeah, all that's in the budget 10 packet. 11 CHAIRMAN PETERSON: Okay. 12 MS. DUNWORTH: It's in the there with the $1.9 13 million dollar level, though. Not the augmented level. 14 MR. SCHROEDER: No, but we didn't -- 15 MS. DUNWORTH: Right. 16 CHAIRMAN PETERSON: All right. Our next meeting is 17 scheduled for June 26th of this same year. All right. I 18 will, at this point, open the floor up to public 19 comments. 20 MR. GUIDRY: Mr. Chairman? 21 CHAIRMAN PETERSON: Yes, sir? 22 MR. GUIDRY: We have a brand new hotel out on 23 island here, and I just passed by it, and you've got to 24 go through a lake to get into it after one day of rain. 25 Can anybody tell me what is happening with that out Destin Reporting & Technology Group (850) 837-5078 scheduling@destinreporting.com Packet Pg. 118  1.a 113 1 there? I mean, is that something -- I mean, we're Minutes Acceptance: Minutes of May 29, 2014 2:00 PM (Consider Okaloosa County Tourist Development Council Meeting Minutes (Dale 2 talking about product improvement and everything, and 3 that situation is just really out of control. 4 MR. SCHROEDER: Uh-huh. 5 MR. GUIDRY: Well, does anybody know anything about 6 it? 7 MR. SCHROEDER: I do not, but I'll find out and get 8 back to you. 9 CHAIRMAN