Okaloosa County BOCC — March 18, 2014 — reading text

5TH TDT‐FILM COMMISSION 548001 PROMOTIONAL ACTIVITIES 3,200 2,473 77.3% 727 5TH 1155 5TH TDT‐FILM COMMISSION 548003 TRADE SHOW FEES 1,900 4,250 223.7% (2,350) 5TH 1155 5TH TDT‐FILM COMMISSION 548070 ADVERTISING 3,000 ‐ 0.0% 3,000 5TH 1155 5TH TDT‐FILM COMMISSION 554001 BOOK/PUB/SUB/MEMBERSHIPS 300 ‐ 0.0% 300 1155 Total 60,600 53,427 88.2% 7,173 5TH 1199 RESERVES/MISCELLANEOUS 599090 RESERVE FOR CONTINGENCIES 84,000 ‐ 0.0% 84,000 5TH 1199 RESERVES/MISCELLANEOUS 599145 RESERVE‐TOURIST DEVELOP 1,000,000 ‐ 0.0% 1,000,000 1199 Total 1,084,000 ‐ 0.0% 1,084,000 5TH Total 5,114,730 2,070,421 40.5% 3,044,309 FUND Total 26,577,238 12,538,819 14,038,548 Packet Pg. Packet 577 Pg. 45 3.a.4 Attachment: 4th Quarter Expenses for BoCC - Detail (2192 : Tax Receipt, STR and Expenditures Reports)  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: March 18, 2014 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: Tourist Development Tax Financial Update DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: As required by F.S. 125.0104(4)(e), Ordinance 12-21, and the TDD Operations & Procedures Manual, the Tourist Development Council (TDC) and Board of County Commissioners (BCC) shall review expenditure reports at least quarterly. BACKGROUND: Expenditure reports were previously provided by the Clerk’s office and formatted by tourist development department staff into two reports: a summary report by bed tax “penny” and a detailed report by budget line item. As no provision regarding format or presentation is prescribed by regulation, the new Finance, Administration, and Compliance Manager formatted the expenditure report in a manner which aggregates budget to actual information for the tourist development department as well as by categories within each bed tax percentage (the “level of restriction”). To provide the most up-to-date information, data was pulled from the accounting system on February 22 (rather than using January 31 month-end data). The Tourist Development Council discussed the new format and unanimously approved the Financial Update at its February 27, 2014 meeting. Financial updates will be provided at each TDC meeting (currently scheduled monthly) and provided to the BCC quarterly. OPTIONS: Approve or Disapprove RECOMMENDATION: Approve quarterly financial update. RECOMMENDED BY: Packet Pg. 578 APPROVED BY: Ernie Padgett, County Administrator Packet Pg. 579 Financial Update February 2014 FY 2013-14 AMENDED BUDGET: $36,713,969 Financial data as of 02/22/14 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 walkovers, FDOT grant funds for seasonal transit service on Okaloosa Island and Destin, and general reserve carryforwards. The tourist development department has three recurring revenue sources – tourist development tax (5 percent), convention center fees (e.g. room & equipment rentals, ticket sales), and interest income on cash balances – along with two non-recurring revenue sources – grants & assessments (BP, FDOT, FDEP, MSBU) and reserves. 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 remit bed tax collections to the tax collector by the 20th of each month for the preceding month. The tax collector reconciles and remits the revenues to the County by the 10th of the following month. Due to the timing of this process, the $1.2M in actual revenue only represents collections through December 31st. February 24, 2014 Packet Tourist Development Department, Okaloosa Pg.FL580 County, Financial Update – February 2014 The tourist development department has several recurring expenses – personnel, beaches & parks, visitor services & lifeguards, convention center, and tourism promotion – along with two non-recurring expenses – grants & assessments and reserves. 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 use/drawdown for capital projects Each percentage of the bed tax is required to be spent in a certain way per County Ordinance. February 24, 2014 Tourist Development Department, Okaloosa County, FL 2 of 5 Packet Pg. 581 Financial Update – February 2014 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 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 24, 2014 Tourist Development Department, Okaloosa County, FL 3 of 5 Packet Pg. 582 Financial Update – February 2014 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 FOURTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive)  expansion, renovation, reconstruction of the convention center and outdoor venues February 24, 2014 Tourist Development Department, Okaloosa County, FL 4 of 5 Packet Pg. 583 Financial Update – February 2014 FIFTH PERCENTAGE (These permissible uses are intended to be representative, not all-inclusive)  tourism promotion STRATEGIC MARKETING PLAN: $2,600,000 The FY 2014 Strategic Marketing Plan was approved by the Board of County Commissioners in November 2013. A task order is required for all promotional activities under the SMP, and is the mechanism for actually authorizing individual promotional expenses/activities. To date, task orders in the amount of $2.4M have been issued to the ad agency and $374K has been approved for payment. A revised ad agency marketing plan as well as an in-house marketing plan are being brought forth for TDC consideration and recommendation for BCC approval to ensure marketing/promotional opportunities reflect current needs to promote the area and increase lodging occupancy in the taxing district. BP SPEND PLAN: $957,471 The FY 2014 BP Spend Plan was approved by the Board of County Commissioners in November 2013. Task orders have been issued for all recovered funds and $51K has been approved for payment to date. Funding has been reallocated from brand television to brand photography as a result of the recent change in the Emerald Coast brand (e.g. style, color, fonts). All monies must be expended no later than March 31, 2014. February 24, 2014 Tourist Development Department, Okaloosa County, FL 5 of 5 Packet Pg. 584  BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: March 18, 2014 TO: Honorable Chairman and Members of the Board FROM: Ed Schroeder SUBJECT: Reallocation of First Percentage Reserves DEPARTMENT: Tourist Development Department BCC DISTRICT: STATEMENT OF ISSUE: Pursuant to Section D.200(1)(e) of the Tourist Development Department Operations and Procedures Manual, allocation of reserve funds requires recommendation from the Council and Board action. BACKGROUND: In April 2012 the County entered into an interlocal agreement for the Western Destin Beach Restoration Project in an amount not to exceed $8 million dollars. The project was not budgeted in FY14 and the FY13 available balance of $562,103 was carried forward in cash. These remaining funds need to be transferred from the 1175-599010 reserves account to the 1175-581702 project expenditures account to complete the project. The Tourist Development Council unanimously approved the reallocation of reserve funds at its February 27, 2014 meeting. OPTIONS: Approve or Disapprove RECOMMENDATION: Approve the reallocation of $562,103 in reserve funds to complete the Western Destin Beach Restoration Project.