Okaloosa County BOCC — May 28, 2015 — I. d. 2015-05-28 Financial Update — reading text

Financial Update May 2015 FY 2014-15 AMENDED BUDGET: $41,401,299 Financial data as of 05/14/15 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, an FDEP grant for dune walkover construction on Okaloosa Island, a FWC grant for artificial reef construction, tourism summit partnerships, and prior year cash carryforward. 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, $3.3M in actual revenue represents collections through March. May 18, 2015 Tourist Development Department, Okaloosa County, FL Financial Update – May 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) May 18, 2015 Tourist Development Department, Okaloosa County, FL 2 of 8 Financial Update – May 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; (7)$100K transferred from artificial reefs for grant match; (8)$376K cash carryforward for ECCC operations & equipment; (9)$4K for tourism summit partnerships; (10)$125K transferred from reserves to replenish SMP; (11)$25K cash carryforward for 35% O&M; (12)$4M cash carryforward for beach restoration; (13)$43K cash carryforward adjustment; (14)$1.6M cash carryforward for future ECCC improvements. May 18, 2015 Tourist Development Department, Okaloosa County, FL 3 of 8 Financial Update – May 2015 REVENUES & 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; (7)$100K transferred from artificial reefs for grant match; (12)$2.4M cash carryforward for beach restoration. Note: (A)Engineering work is capped at $5,000 under the grant; therefore, a budget transfer within the first penny will be needed to cover expenses in excess of that amount. May 18, 2015 Tourist Development Department, Okaloosa County, FL 4 of 8 Financial Update – May 2015 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 st Amended Budget: (11)$11K cash carryforward for 35% O&M; (12)$258K cash carryforward transfer to 1 penny for beach restoration. May 18, 2015 Tourist Development Department, Okaloosa County, FL 5 of 8 Financial Update – May 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; (8)$376K cash carryforward for ECCC operations & equipment; (11)$15K cash carryforward for 35% O&M; (12)$1.3M cash st carryforward transfer to 1 penny for beach restoration. May 18, 2015 Tourist Development Department, Okaloosa County, FL 6 of 8 Financial Update – May 2015 FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive) • expansion, renovation, reconstruction of the convention center and outdoor venues Amended Budget: (14)$1.6M cash carryforward for future ECCC improvements. May 18, 2015 Tourist Development Department, Okaloosa County, FL 7 of 8 Financial Update – May 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; $4K for tourism summit partnerships; (10)$125K transferred from reserves to (9) replenish SMP; (13)$43K cash carryforward adjustment. 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; $4K for tourism summit partnerships; (10)$125K transferred from reserves to replenish SMP. (9) Recommendation to BCC: Approve the financial update as presented. May 18, 2015 Tourist Development Department, Okaloosa County, FL 8 of 8