Okaloosa County BOCC — February 26, 2015 — I.b. Financial Update — reading text

Financial Update February 2015 FY 2014-15 AMENDED BUDGET: $35,275,929 Financial data as of 02/19/15 The adopted budget of $34,917,500 has been amended to record an FDOT Urban Corridor grant for seasonal bus service to Okaloosa Island and Destin, Aramark’s annual investment contribution, and an FDEP grant for dune walkover construction on Okaloosa Island. REVENUE ANALYSIS Reserves are the largest component of budgeted revenues because the budget reflects anticipated revenues as well as current cash on hand. Reserves/cash on hand 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 $2.68M, for a total of $13.4M in bed taxes. Lodging establishments th remit bed tax collections to the Tax Collector by the 20 of each month for the preceding month. The Tax th Collector reconciles and remits the revenues to the County by the 10 of the following month. Due to the timing of this process, $1.4M in actual revenue represents collections through December. February 20, 2015 Tourist Development Department, Okaloosa County, FL Financial Update – February 2015 RevPAR Revenue per available room (RevPAR) is a widely used performance metric in the lodging industry. RevPAR is a measurement for a point in time, so it is most appropriately used when comparing equivalent time periods (e.g. October 2014 to October 2013). RevPar = gross monthly receipts divided by days in month divided by number of units (data taken from Tax Collector’s monthly reports) February 20, 2015 Tourist Development Department, Okaloosa County, FL 2 of 6 Financial Update – February 2015 EXPENSE ANALYSIS Amended Budget: (1)$15K transferred from convention center operations to personnel to cover overtime; (2) $25K added to convention center operations for Aramark annual investment contribution; (3)$15K transferred from special events to capital for interactive trade show booth purchase; (4)$74K transferred th from 5 penny promotional reserve for Destin to Fish production; (5)$109K transferred from living shorelines for dune walkovers grant match; (6)$125K transferred from SMP to BP. Each percentage of the bed tax is required to be spent in a certain way per County Ordinance. February 20, 2015 Tourist Development Department, Okaloosa County, FL 3 of 6 Financial Update – February 2015 EXPENSES BY LEVEL OF TOURIST DEVELOPMENT TAX RESTRICTION 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 Amended Budget: (5)$109K transferred from living shorelines for dune walkovers grant match. 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 February 20, 2015 Tourist Development Department, Okaloosa County, FL 4 of 6 Financial Update – February 2015 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 • promotion of the Convention Center and Tourist Destination Facilities Amended Budget: (1)$15K transferred from convention center operations to personnel to cover overtime; (2) $25K added to convention center operations for Aramark annual investment contribution. FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • expansion, renovation, reconstruction of the convention center and outdoor venues February 20, 2015 Tourist Development Department, Okaloosa County, FL 5 of 6 Financial Update – February 2015 FIFTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • tourism promotion Amended Budget: (3)$15K transferred from special events to capital for interactive trade show booth th purchase; (4)$74K transferred from 5 penny promotional reserve for Destin to Fish production; (6)$125K transferred from SMP to BP. PROMOTIONAL ACTIVITIES (-548xxx accounts) Amended Budget: (3)$15K transferred to capital for interactive trade show booth purchase; (4)$74K th transferred from 5 penny promotional reserve for Destin to Fish production; (6)$125K transferred from SMP to BP. EMERALD COAST CONVENTION CENTER Convention center revenues and attendance year-to-date for the period October 2014 – January 2015. Recommendation to BCC: Approve the financial update as presented. February 20, 2015 Tourist Development Department, Okaloosa County, FL 6 of 6