Okaloosa County BOCC — September 18, 2014 — reading text

Category: Update Prepared By: Aida Wilkinson SCHEDULED Initiator: Aida Wilkinson Sponsors: TDC ITEM (ID # 3361) DOC ID: 3361 Financial Update - September Updated: 9/15/2014 4:40 PM by Aida Wilkinson Page 1 Packet Pg. 30  3.b.a Financial Update September 2014 FY 2013-14 AMENDED BUDGET: $36,835,319 Financial data as of 09/12/14 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 restoration, FDOT grant funds for seasonal transit service on Okaloosa Island and Destin, FDEP grant funds for Okaloosa Island dune walkovers, reserve carryforwards, and other unanticipated revenues. REVENUE ANALYSIS Attachment: III.b. Financial Update (3361 : Financial Update - September) 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 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 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, $11.7M in actual revenue represents collections through July. Based on these receipts, tourist development tax revenues are on track to generate $14.4M this year, which is $924K or 6.8% more than last year’s collections. September 12, 2014 Packet Tourist Development Department, Okaloosa County, FL Pg. 31 Financial Update – September 2014 3.b.a EXPENSE ANALYSIS Attachment: III.b. Financial Update (3361 : Financial Update - September) 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 budgeted use/drawdown for capital projects. Each percentage of the bed tax is required to be spent in a certain way per County Ordinance. September 12, 2014 Tourist Development Department, Okaloosa County, FL 2 of 5 Packet Pg. 32 Financial Update – September 2014 3.b.a 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 Attachment: III.b. Financial Update (3361 : Financial Update - September) 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 September 12, 2014 Tourist Development Department, Okaloosa County, FL 3 of 5 Packet Pg. 33 Financial Update – September 2014 3.b.a 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 Attachment: III.b. Financial Update (3361 : Financial Update - September) FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • expansion, renovation, reconstruction of the convention center and outdoor venues September 12, 2014 Tourist Development Department, Okaloosa County, FL 4 of 5 Packet Pg. 34 Financial Update – September 2014 3.b.a FIFTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • tourism promotion Attachment: III.b. Financial Update (3361 : Financial Update - September) PROMOTIONAL ACTIVITIES (-548xxx accounts) 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. February 2014 to February 2013). However, since year-to-year comparison is not possible until twelve months of data are obtained, it is being presented here to establish benchmarks. RevPar = gross monthly receipts divided by days in month divided by number of units (data taken from Tax Collector’s monthly reports) TDC Recommendation to BCC Approve the financial update as presented. September 12, 2014 Tourist Development Department, Okaloosa County, FL 5 of 5 Packet Pg. 35  3.c Tourist Development Council Meeting: 09/18/14 02:00 PM 1540 Miracle Strip Parkway Department: Tourist Development Council Fort Walton Beach, FL 32548 Category: Update Prepared By: Aida Wilkinson SCHEDULED Initiator: Aida Wilkinson Sponsors: TDC ITEM (ID # 3362) DOC ID: 3362 Expenditure Transaction Analysis - August Updated: 9/15/2014 4:41 PM by Aida Wilkinson Page 1 Packet Pg. 36  3.c.a Expenditure Transaction Analysis August 2014 Pursuant to Florida Statutes 125.0104(4)(e), “The council shall continuously review expenditures… Expenditures which the council believes to be unauthorized shall be reported to the county governing board and the Department of Revenue”. One of the most comprehensive reports from the County’s accounting system is the Expenditure Transaction Analysis, which lists the fiscal period, date, transaction type, check number, vendor number, vendor name, dollar amount, and description for each tourist development tax expenditure transaction. This report is being provided to assist the TDC in identifying possibly unauthorized expenditures. Attachment: III.c. Expenditure Transactions (3362 : Expenditure Transaction Analysis - August) The following pages provide transaction detail for the month of August 2014. TDC Recommendation to BCC For informational purposes only; no action needed. September 12, 2014 Packet Tourist Development Department, Okaloosa County, FL Pg. 37  **August Transactions** SUNGARD PENTAMATION, INC. PAGE NUMBER: 1 DATE: 09/12/2014 OKALOOSA COUNTY BOCC AUDIT11 TIME: 12:27:30 EXPENDITURE TRANSACTION ANALYSIS SELECTION CRITERIA: transact.yr=’14’ and transact.period=’11’ and transact.fund=’104’ ACCOUNTING PERIOD: 12/14 FUND − 104 − TOURIST DEVELOPMENT FUND DEPARTMENT − 1151 − 5TH TDT−TOURISM PROMOTION ACCOUNT DATE T/C ENCUMBR REFERENCE VENDOR BUDGET EXPENDITURES ENCUMBRANCES DESCRIPTION 534003