Agenda 02/26/2013 Item #11B2/26/2013 113.
EXECUTIVE SUMMARY
Recommendation to approve the proposed reallocation of current Tourist
Development Tax funding to increase destination marketing efforts and the annual
accumulation of reserves for major. beach renourishment, to solicit
recommendations from stakeholder groups prior to the Board's consideration of
ordinance and /or policy changes, and to authorize Staff to draft documents for
Board approval to implement said changes.
OBJECTIVE: To obtain approval to initiate reallocations to the existing tourist tax
distributions and Tourist Development Tax (TDT) Ordinance amendments to increase
funding for destination marketing and revise the Tourist Development Tax Category "A"
Funding Policy to increase accumulation of reserves for major beach renourishment.
CONSIDERATIONS: Tourism is a major driver of Collier County's economy
supporting 32,000 hospitality and tourism industry jobs and providing a $1.4 billion
annual economic impact. According to Research Data Services, the Convention and
Visitor Bureau's (CVB) marketing consultant, each dollar invested in destination
advertising and promotion returned $40.79 in direct visitor spending. In addition many
County property and business owners were first introduced to Collier County through
visitation to our area as leisure or group meeting travelers.
A special subcommittee of the Tourist Development Council (TDC) was appointed in
March of 2011 to review the current tourist tax structure and make recommendations on
how the destination can benefit from a more robust year -round marketing and promotion
effort. The committee met ten times beginning April 1, 2011 and developed a list of
findings and conclusions on the current situation of the tourism industry in Collier
County. From those findings and conclusions, a set of recommendations was developed
for review and recommendation to the County Commission.
The TDC requested staff to take the eleven (11) recommendations to the various tourism
industry stakeholder groups for consideration and input. The result of that process is
shown on Attachment 1.
The County Manager reviewed the TDC recommendations and the outcome of the
stakeholder input meetings and has developed a recommendation that combines input
from the Tourist Development Council and stakeholder groups. The result is a set of
recommendations that accomplishes the goals of enhanced funding for destination
marketing, establishing a larger beach renourishment set aside, and introducing General
Fund commitment to Museum, Beach Park Facilities and Emergency Marketing funding.
The proposed changes will require amendments to Tourist Tax Ordinance No. 92 -60, as
amended, and the "Category "A" Beach and Inlet Funding Policy" adopted by the BCC in
October of 2005.
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2/26/2013 11.B.
ADVISORY COMMITTEE RECOMMENDATION: On January 28, 2013 the TDC
voted 8 -0 to recommend approval of the TDT funding redistribution as recommended by
the County Manager.
FISCAL IMPACT: The recommendations under consideration involve changing the
allocation of existing Tourist Development Tax revenues and redistributing interest
earnings. The proposals both increase the allocation for promotional activities and beach
renourishment through decreases to Beach Park Facilities and County Museum funding.
The Manager's proposal adds General Fund commitment to backstop potential Museum
and Beach Park Facility funding shortfalls. The following table compares the current
TDT allocation to staff's recommendation:
Tourist Development Tax Redistribution
Current Allocation
Staff Recommendation
Cat
Description
Fund
Beach
5 5 Change
County
$
5 Change
A
A
Summary by Fund
Beach Facilities
Beach Renourishment
183
195
16.50.3%
33.5003'6
2,369,603
4,909,030
4.309%
35 n835e•
61B,600
5339,030
(1,7512 WD)
500.0co
-`
Su b-Tota I Cat A
Fund 184
50 =%
7,177.5+33
41.2925s
5,927,0W
11,253,1337)
B
B
B
TDC Promotion
TDCAdmin
Promotion Disaster Recovery
184
194
196
25 -0O3%
11-6171
0. WD..
3,588,800
1,667,700
-
35.1015n
11.617%
0.01x3%
S;c38,803
1,667,700
1,450,o03
-
-
Sub-Tots I Cat B
Bearh Renourishment -145
36.617%
5,256,503
46.718x
6,706,500-
1,450,000
C-1
C-2
County Museums
,_ .._ ...-
Nan - County Museums
138
143
1L0m30 6
--
2.38250
1,579 &D
--- ----
342,000
9.60?xS
2.382%
1,379,1€ 0
342, 93
1200,@3{3)
500'GOD
Su b-Tots I Cat Cl
13.383x:
1,921,1W
11.9,1155:
1,7721,200
1200=))
Total
10M.0 M
' 14;355,200 -
100.033%
'14,355,20D
-
The next table illustrates staff's overall reallocation recommendation including interest
and sweeps of fund balances from TDT funds:
In addition to the recommended changes detailed above which will result in additional
marketing and promotion dollars of more than $1.9 million, staff recommends that the
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Non- founry
Beach
Disaster
County
Beach Parks
Promotion
Museums
TDCAdmin
Ranourishm.
Recovery
Museums
Cat
Description
Fund 183
Fund 184
Fund 193
Fund 194
ant Fund 195
Fund 196
Fund 198
A
Beach- Facilities -183
Ii, ?50,DJa3)
-
-
-
-
-
-
A
Bearh Renourishment -145
Sr 0
Sub. -TataI Cat
(2,75i1,GMr)
500'GOD
B
TDC Promotion -184
1,450,0`33
B
TDCAdmin -194
B
TDCAdminSweep
. _
_..._...
250,003
__
---
B
Promotion Disaster Recovery -196
B
Inte rest Sweep (aII TDC funds j
209,500
Sub -TataI Cat B
1,909.51}3
Ci
CDuntyMuseums -198
(2£}D, )
C2
Nan - County Museums -193
Sub -Total Cat C
Total ChangeTDCAilacatcon
11,750A M)
1,909,500
-
SWAM
-
12001030}
In addition to the recommended changes detailed above which will result in additional
marketing and promotion dollars of more than $1.9 million, staff recommends that the
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2/26/2013 11. B.
Board revise the Disaster Recovery Advertising program in Fund (196) by lowering the
ordinance mandated minimum balance in the disaster advertising fund from $1,000,000
to $500,000. Under this proposal, if the Disaster Recovery Fund drops below $500,000 it
will be replenished by the General Fund.
GROWTH MANAGEMENT IMPACT: There is no growth management impact
associated with this Executive Summary.
LEGAL CONSIDERATIONS: Any amendment to the Tourist Development Tax
Ordinance No. 92 -60, as amended, will require a super- majority vote. Changes to the
Tourist Development Tax Category "A" Funding Policy requires a majority vote. This
item has been reviewed by the County Attorney's Office, is legally sufficient for Board
action, and requires a majority vote for approval. — CMG
RECOMMENDATION: To approve the proposed reallocation of current Tourist
Development Tax funding to increase destination marketing efforts and the annual
accumulation of reserves for major beach renourishment, to solicit recommendations
from stakeholder groups prior to the Board's consideration of ordinance and /or policy
changes, and to authorize Staff to draft documents for Board approval to implement said
changes.
Prepared by: Jack Wert, Tourism Director, Ed Finn, Senior Budget Analyst, OMB
Attachments:
1. Stakeholder meeting outcomes
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.6.
2/26/2013 11. B.
Item Summary: Recommendation to approve reallocation of existing Tourist
Development Tax distributions to increase destination marketing efforts and the annual
accumulation of reserves for major beach renourishment. (Jack Wert, Tourism Director)
Meeting Date: 2/26/2013
Prepared By
Name: BrockMaryJo
Title: Executive Secretary to County Manager, CMO
2/20/2013 7:14:13 AM
Submitted by
Title: Executive Secretary to County Manager, CMO
Name: BrockMaryJo
2/20/2013 7:14:15 AM
Approved By
Name: SheffieldMichael
Title: Manager- Business Operations, CMO
Date: 2/20/2013 8:54:16 AM
Packet Page -212-
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