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Agenda 03/26/2013 Item #16F63/26/2013 16. F.6. EXECUTIVE SUMMARY Recommendation to approve the proposed amendments to the Tourist Development Tax (TDT) Ordinance to increase destination marketing efforts and the annual accumulation of reserves for beach renourishment, authorize advertisement of the proposed amendments for public hearing, and approve the proposed resolution amending the TDT Category "A" Funding Policy. OBJECTIVE: To obtain approval of amendments to the TDT Ordinance and obtain direction to advertise the amendments and return to the Board for final approval, and obtain approval of a resolution amending the TDT Category "A" Funding Policy. CONSIDERATIONS: On February 26, 2013 the Board reviewed the County Manager's recommendations for redistribution of TDT proceeds and directed staff to incorporate the recommendations into the Tourist Development Tax Ordinance No. 92 -60, as amended, and the Category "A" Beach and Inlet Funding Policy and return to the board with the proposed changes. The proposed recommendations accomplishes the goals of enhanced funding for destination marketing, establishing a larger beach renourishment set aside, while introducing a contingent General Fund commitment to Museum, Beach Park Facilities and Disaster Recovery marketing funding. The proposed General Fund (001) funding commitment associated with the proposed recommendations is discussed below: Museum — Working with the County Manager, Museum staff will develop a plan for replacing the $ 200,000 TDT funding reduction through enhanced fundraising, grants and aids, admission fees or other means. General Fund monies will be held in reserve to offset any shortfall in this revenue item. Disaster Recovery Funding — The required fund balance in the TDT Disaster Recovery Fund (196) will be reduced from $1 million to $500,000. In the event that TDT funding falls below the $500,000 threshold, the fund balance will be maintained as required through a transfer from the General Fund (001). The annual General Fund Commitment to Disaster Recovery Funding shall not exceed $500,000. Beach Park Facilities — Through the budget process, the Board may authorize General Fund monies for Beach Park Facilities not fully funded by TDT proceeds. The Board's policy of redirecting all interest earned on TDT monies to supplement destination advertising, marketing and promotion funding expires on September 30, 2013. The County Manager's recommendation includes extending the use of interest earnings on Tourist Development Tax funds for destination advertising, marketing and promotion for an additional three fiscal years commencing on October 1, 2013 (FY 14, 15 and 16). Packet Page -1044- 3/26/2013 16. F.6. ADVISORY COMMITTEE RECOMMENDATION: On January 28, 2013 the Tourist Development Council (TDC) voted 8-0 to recommend appidval of the TDT funding redistribution as recommended by the County Manager. The proposed Ordinance and Policy amendments will be reviewed again by the TDC on March 25, 2013. FISCAL IMPACT: The TDT Ordinance and Category "A" Funding Policy amendments under consideration involve changing the distribution percentages of VT revenues and redistributing interest earnings. The amendments 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 as well as Disaster Recovery promotion. The following table compares the proposed aggregate TDT distribution to the current distribution: Tourist Develloornent Tax Redbb bution Cuffert Dotribudon Fund (194) into the Promotion Fund (184). Obxribution tamer CMI cat Descrii3tion Fund % Total % (1750 amme 500000 1250.000 S_u V by Fund - B TUCAekNn 194 A Beech FaCS 1$3 15 667% 2,392.533 4-64-7-6-9-6 642.533 {1,750,000 A Beach Renour)shmettt 195 33.333% 4,785,067 36.816% ,285,067 500,000 A " TatatCetA' 30.000% 7,1Z7b00 "= , 41:292 %'+ .., ,927,60Ei "250,1100 8 TDC Promotion 184 25.000% 3,588,800 35.101% a 038„800 1„450 000 B _ ._........_ TOCAt#rmn —..... - -- 194 - 11.618% — - 1,6fi7,787 _..._._._. _... - 11618!4 _._ 1,567,787 - B Protnottt Disaster R 196 0.000% - _ ...... -- ... 0.000% __...._ - _...__ ........... - fo#aifat8 = " 3fi.fi1B46 " 5,256,8 415719 707 - "850,0B C -1 Colmty Museums 198 11.000% 1„579,072 9.507% 1,379,072 (200,OD0 C -2 lhlon-CwntvWluseum3 193 2 .382% 341,941 2382% 341,941 - C " T.otat CaYC ::1. _-23- 2.921;013 11989% ; 721Oi3 3fl0,OQ0 by Fxeafte Summary C# okTata) 100:00% 14.355..200 100 M 55.200 - The next table illustrates the overall funding redistribution including interest allocations, the split of TDT Category "A" proceeds between Beach Park Facilities and Beach Renourishment and Inlet projects, and sweeps of fund balances from TDT Administration Fund (194) into the Promotion Fund (184). tamer CMI Beach Parks Promotion MMUM TDCAdndn Mmaefthrm Recovery Museums Cat tion Fwd 183 Fund 184 Fund 193 Fund 144 t Fwd 195 Fund 195 Fund 196 Total A Beach FadBries 189 (1) .._.__.... _ _._- 1750000) _.......... _ _._. -. (1750 ................ — 500 860. _..... . . _..... ... . .......... _ A eeachRena,skhme,rt -lys Sub-TOt IWA 750. 5004000 500000 1250.000 B rM Promottao-lB4 1,450.000 1,450 000 B TUCAekNn 194 0 .. TOCAdminSweeP... _...... ..... .. _ %,666 _ _ _ ....._._ ........ - _._..... - - .....--- - — ... --- -. _B Promotbn 04saster Remver�i% .._.H..µ. - _ _ _.... -'..._ _ _Mow B Imarlst aBTOCfmds (2 ) 209500 204.500 Sub -Total Cat 6 1.90.50 11909500 Cl M9 20D,000 C2 Non-000n Musewn6-193 Wb-TOtal Cat C - (20D, 120D.000 ;11 155 (1) =Governed by Category `A' Funding Po cy (2) = C--ned by Ger,asat Board Poky by Fxeafte Summary Packet Page -1045- 3/26/2013 16. F.6. 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 and is legally sufficient for Board action. — CMG RECOMMENDATION: To approve the proposed amendments to the Tourist Development Tax (TDT) Ordinance to increase destination marketing efforts and the annual accumulation of reserves for beach renourishment, authorize advertisement of the proposed amendments for public hearing, and approve the proposed resolution amending the TDT Category "A" Funding Policy and approve the redirection of interest earned on TDT funds to promotion for three additional years. Prepared by: Jack Wert, Tourism Director, Edward Finn, Senior Budget Analyst, OMB Attachments: 1. Proposed Ordinance Amendments 2. Proposed Resolution - Category "A" Beach and Inlet Funding Policy" 3. Underline and strike through version of the Category "A" Beach and Inlet Funding Policy" Packet Page -1046- 3/26/2013 16. F.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.F.16.F.6. Item Summary: Recommendation to approve the proposed amendments to the Tourist Development Tax (TDT) Ordinance to increase destination marketing efforts and the annual accumulation of reserves for beach renourishment, authorize advertisement of the proposed amendments for public hearing, and approve the proposed resolution amending the TDT Category "A" Funding Policy. Meeting Date: 3/26/2013 Prepared By Name: LehnhardPat Title: Operations Coordinator,Transportation Administrati 3/20/2013 1:53:34 PM Submitted by Title: Senior Budget Analyst, OMB Name: FinnEd 3/20/2013 1:53:36 PM Approved By Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 3/20/2013 3:21:19 PM Packet Page -1047- 3/26/2013 161.6. ORDINANCE NO. 2013 - AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NO. 92 -60, AS AMENDED, ALSO CITED AS SECTION 126-83 OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES, RELATING TO THE LEVY OF A 2% TOURIST DEVELOPMENT TAX, AN ADDITIONAL 1% TAX (3an PERCENT), AND AN ADDITIONAL 1% TAX (4TH PERCENT) THROUGHOUT COLLIER COUNTY PURSUANT TO THE LOCAL OPTION TOURIST DEVELOPMENT ACT, SECTION 125.0104, FLORIDA STATUTES, AS AMENDED; BY AMENDING SECTION THREE, "USES OF TAX REVENUES," IN ORDER TO REALLOCATE CERTAIN TOURIST DEVELOPMENT TAX FUNDS AND ELIMINATE THOSE PROVISIONS THAT HAVE EXPIRED AND ARE OF NO FURTHER FORCE AND EFFECT; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 125.0104, Florida Statutes, provides for the levy of a local option tourist development tax by any county; and WHEREAS, on August 18 1992 the Board of County Commissioners gu ty (Board) adopted Ordinance No. 92 -60, which levied and imposed a 2% tourist and development tax throughout Collier County for the purposes permitted in Section 125.0104, Florida Statutes, as amended; and WHEREAS, through its adoption of Ordinance No. 95 -56 and Ordinance No. 2005 -43, the Board levied an additional P and 4t' percent tourist development tax; and WHEREAS, subsequent amendments to Ordinance No. 92 -60, as amended, included Ordinance No. 2009 -58, Ordinance No. 2010 -44, and Ordinance No. 2012 -08 which temporarily reallocated certain Tourist Development Tax funds; and WHEREAS, the time periods established for these temporary reallocations of Tourist Development Tax funds have expired; and WHEREAS, the Board, by an extraordinary vote, desires to amend the uses of tax revenue and the tourist development plan in order to redistribute certain Tourist Development Tax funds and eliminate expired provisions that are of no further force and effect; and WHEREAS, the proposed amendments were presented to and approved by the Collier County Tourist Development Council. Words Underlined are added: Words S#wk Thfetgh are deleted. Packet Page -1048 - rage t of i 3/26/2013 16. F.6. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: AMENDMENT TO SECTION THREE OF ORDINANCE NO. 92 -60, AS AMENDED. Section Three is hereby amended to read as follows: SECTION THREE - USES OF TAX REVENUES. (a) The tax revenues received pursuant to this division shall be used to fund the County Tourist Development Plan, which is hereby amended as follows: Tourist Development Plan The two percent tourist development tax was levied throughout Collier County beginning the first day of the second month following approval of this Ordinance by referendum. The tax district includes the entire geographic area of Collier County, Florida. The anticipated revenue for a two percent tourist development tax for all of Collier County over a 24 -month period was $7,000,000.00, less costs of administration. The additional one percent tourist development tax (3rd percent) was levied throughout the county beginning the first day of January, 1996. A majority of the electors of Collier County voting in a straw referendum election approved the continuation of the additional one percent tourist development tax prior to June 30, 2000, therefore the additional one percent tourist development tax shall continue until terminated by an amendment to this Ordinance. The tax district shall include the entire geographic area of Collier County, Florida. The additional tourist development tax (4th percent) shall be used to finance tourism promotion as provided herein. The tax district shall include the entire geographic area of Collier County, Florida. (1) The categories of use of the two percent, one percent (3rd percent) and additional one percent (4th percent) tax revenues by specific project or special use are hereby listed in the order of priority: CATEGORYA To finance beach park facilities or beach improvement, maintenance, renourishment, restoration and erosion control, including pass and inlet maintenance shoreline protection, enhancement, cleanup or restoration of inland lakes and rivers to which there is public access as these uses relate to the physical preservation of the beach, shoreline or inland lake or river. Words Underlined are added; Words StmsicweeO. are deleted. Packet Page -1049 - rup t 01 3/26/2013 16.F.6. Percentage of Net Revenue M 32.584 percent of the two percent tax and 100 percent of the one percent tax (3rd percent), reduced by the amount required for Category D. CATEGORY B To promote and advertise county tourism within the State of Florida, nationally and internationally, which encourages tourism to Collier County and to fund convention bureaus, tourist bureaus, tourist information centers and news bureaus as county agencies. If tax revenues are expended for an activity, service, venue or event, the activity, service, venue or event shall have as one of its main purposes the attraction of tourists as evidenced by the promotion of the activity, service, venue or event to tourists. Percentage of Net Revenue 23.236 43.438 percent of the two percent tax and 100 percent of the additional one percent tax (4th percent) CATEGORY C To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate or promote one or more County owned or operated museums or municipal owned museums that are owned and operated by not for profit organizations and open to the public. Percentage of Net Revenue Sub - categories: C(1): County owned or operated museums: 224 19.214 percent C(2): Municipal owned museums and museums owned and operated by not for profit organizations open to the public: 4.764 percent CATEGORY D To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate or promote one or more fishing piers which are publicly owned and operated. Words Underlined are added; Words wee& are deleted. Packet Page -1050 - ._C'__ —. 3/26/2013 16. F.6. Percentage of Net Revenue Amount budgeted for this category by the Board of County Commissioners each fiscal year, but not to exceed $200,000.00. This amount may be amended upwardly or downwardly prospectively from the date of the budget amendment approval, provided that the amount of the aggregate allocation per fiscal year does not exceed $200,000.00. It is the intent of this division that the above uses shall be funded separately, but simultaneously in the above percentages regardless of the actual amount of net revenues collected. (2) The additional one percent tax revenues (3rd percent) collected pursuant to Section TWO (F) shall be used to finance beach park facilities, beach improvement, maintenance, renourishment, restoration and erosion control including pass and inlet maintenance shoreline protection, enhancement, cleanup or restoration of inland lakes and rivers to which there is public access as these uses relate to the physical preservation of the beach, shoreline or inland lake or river. (3) The additional one percent tax (4th percent) collected pursuant to Section TWO (G) shall be used entirely to finance tourism promotion including advertising, public relations, promotion, research and fulfillment. It is the intent of the Board of County Commissioners to maintain this new level of tourism promotion dollars in the future. f The Disaster Recover Advertising Fund will the 23.23694 ef he 294 t&x te maintain a maximum level of $1-- 4148 $500,000.00. Should the fund fall below $500,000.00, the fund shall be replenished up to a maximum of $500.000.00 per fiscal year from the General Fund. , any r-enudaing ftmds in the 23.23694-0 uses dellm in the fiaum. Words Underlined are added; Words Stmak ThEet1h are deleted. Packet Page -1051 - rdsv 4 vi i n 3/26/2013 16. F.6. (4) C5,) Administrative costs. a. Tourism promotion administrative costs shall not exceed 32% of the total amount collected each fiscal year for Category "B" revenue. b. Project Management, Indirect Overhead, and Program Administration in support of Fund 195 (Beaches) and Fund 183 (Beach Park Facilities) shall not exceed 15% of Category "A" revenues. These charges to be split 75% to Fund 195 (Beaches) and 25% to Fund 183 (Beach Park Facilities). (4) (6) The revenues to be derived from the tourist development tax may be pledged to secure and liquidate revenue bonds in accordance with the provisions of Section 125.0104, Florida Statutes. Such revenue bonds and revenue refunding bonds may be authorized and issued in such principal amounts, with such interest rates and maturity dates, and subject to such other terms, conditions and covenants as the governing board of Collier County shall provide. This paragraph shall be full and complete authority for accomplishing such purposes, but such authority shall be supplemental and additional to, and not in derogation of, any powers now existing or later conferred under law. (b) (7,) The event bonds are issued by Collier County for any of the purposes enumerated by the Tourist Development Plan, the amount of tourist development tax receipts used to pay debt service on such bonds may exceed the percentages provided for the purpose for which such bonds were issued; provided, however, the maximum annual debt service on such bonds, together with any other obligations of Collier County which were issued to finance improvements for the same purpose and which are secured by the tourist development tax, must not exceed the stated percentage of tourist development tax receipts provided in the Tourist Development Plan for such purposes, as calculated as of the date of sale of such bonds. For purposes of performing the calculations described in this paragraph, the amount of tourist development tax receipts shall be assumed to be the amount provided as such in Collier County's immediately preceding annual audit, plus, if the levy of such tax was imposed or increased subsequent to the beginning of the period which was audited, an amount equal to the estimate by the County Manager of the moneys the County would have received if the tax imposition or increase had been in effect during the entire audit period. At or prior to the issuance of bonds the County Manager shall provide a certificate as to the findings required in this paragraph, which certificate shall be conclusive as to all matters provided herein. Words Underlined are added; Words Seek 44wexgh are deleted. Packet Page -1052 - rap J 01 1 3/26/2013 16.F.6. ; io" -,:,. =V. R-Vz- ;,: • W-IfATIWATSTAIWATANUM • • n. Y. • Y_- •A ••• AA • Y. "(8) The above and foregoing tourist development plan may not be substantially amended except by ordinance enacted by an affirmative vote of a majority plus one additional member of the Board of County Commissioners. SECTION TWO: CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law, the more restrictive shall apply. If any phrase or portion of the Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION THREE: INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or relettered to accomplish such, and the word 'ordinance" may be changed to "section," "article," or any other appropriate word. Words Underlined are added; Words Swdek Thmugh are deleted. Packet Page -1053- r acv v vt i 3/26/2013 16. F.6. SECTION FOUR: EFFECTIVE DATE. This Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by a vote of a majority plus one of the Board of County Commissioners of Collier County, Florida, this day of , 2013. ATTEST: DWIGHT E. BROCK, CLERK LIM , Deputy Clerk Approved as to form and legal sufficiency: olleen M. Greene Assistant County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: GEORGIA A. HILLER, ESQ., CHAIRWOMAN Words Underlined are added; Words Stmt are deleted. Packet Page -1054- . -el- I — . 3/26/2013 16. F.6. RESOLUTION 2013- A RESOLUTION OF THE COLLIER COUNTY BOARD OF COUNTY COMMISSIOENRS AMENDING THE TOURIST DEVELOPMENT CATEGORY "A" FUNDING POLICY DATED NOVEMBER 1, 2005 AND ESTABLISHING AUTHORIZED USES FOR CATEGORY "A" FUNDS. WHEREAS, Section 125.0104, Florida Statutes, provides for the levy of a local option tourist development tax by any county; and WHEREAS, on August 18, 1992, the Board of County Commissioners (Board) adopted Ordinance No. 92 -60, which levied and imposed a 2% tourist and development tax throughout Collier County for the purposes permitted in Section 125.0104, Florida Statutes, as amended; and WHEREAS, through its adoption of Ordinance No. 95 -56 and Ordinance No. 2005 -43, the Board levied an additional 3`d and 4u' percent tourist development tax; and WHEREAS, on November 1, 2005, Collier County established a Tourist Development Category "A" Funding Policy establishing authorized uses of Category "A" Funds; and WHEREAS, the Board now wishes to amend the Category "A" Funding Policy to provide a revised allocation of funds within Category "A" by increasing the allocation to beach renourishment and beach - related maintenance activities and decreasing the allocation to beach park facilities. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA that the Tourist Development Category "A" Funding Policy is amended as follows: TOURIST DEVELOPMENT CATEGORY "A" FUNDING POLICY 1. Authorized Uses of Category "A" Funds: To finance beach park facilities or beach improvement, maintenance, renourishment, restoration and erosion control, including pass and inlet maintenance, shoreline protection, enhancement, cleanup or restoration of inland lakes and rivers to which there is public access, as these relate to the physical preservation of the beach, shoreline or inland lake or river. (Ordinance No. 92 -60, as amended.) 2. Source of other funds: Federal or State funds are desirable and should be diligently pursued. Packet Page -1055- 3/26/2013 16.F.6. 3. Mandatory annual budget allocation of funds and maintenance of reserves. a. Catastrophe reserves shall be accumulated in the budget with $1 M in 2004 plus $0.5M per year thereafter (up to a maximum of $I OM). In the event of a catastrophe requiring the expenditure of all or part of these reserves, $0.5M will continue to be set aside. b. Major renourishment reserves shall be accumulated in the budget with $2.5M per year. Reserves shall not be accumulated in the year(s) during the major beach renourishment. (Scheduled for November 2013). c. Beach park facilities (including beach access property acquisition) shall be funded annually at 10.840 percent of the TDC Category "A" revenues. d. Remaining funds may be used for eligible grant applications as outlined in the policy below. 4. Eligibility: Eligible beach areas qualify for Category "A" funding. An "eligible beach area" is: a. Accessible to the public; and b. No more than one -half mile from a beach park facility, public access point, hotel or motel and if at least 80% of the entire beach area is classified as eligible, otherwise ineligible gaps will be deemed eligible. 5. Ineligible beach areas: a. Beach areas not meeting the criteria for eligibility of paragraph 4. above, are not eligible for Category "A" funding. Renourishment or maintenance of these beach areas are the responsibility of adjacent property owners and must be privately funded. b. An area of an ineligible beach that is subject to high erosion, with the recommendation of the Coastal Advisory Committee and finding by the Board of County Commissioners that the project promotes tourism may have erosion control structures installed, with Category "A" funding. 6. Inlet Sand Bypassing. The bypassing of sand across inlets may be funded by Tourist Development Tax Category "A" funding provided the Inlet Management Plan recommends the bypassing, the dredging of the pass or inlet is recommended by the Coastal Advisory Committee, and is approved by the Board of County Commissioners with a finding that the project promotes tourism. No TDC Category "A" funding will be approved for dredging non -beach compatible material except when encountered during an approved realignment or modification to an existing approved pass /inlet dredging project and then only when recommended by the Coastal Advisory Committee, Tourist Development Council and Packet Page -1056- 3/26/2013 16. F.6. approved by the Board of County Commissioners with a finding that the project promotes tourism. 7. Shore protection structures and project sponsorship. Projects, including construction and maintenance of shore protection structures (groins, jetties, breakwaters, etc.), may be funded by Category "A" funding for eligible beaches. However, `ownership' responsibilities must rest with an entity other than "Tourist Development Taxes" — i.e. there must be a project sponsor (private interest, taxing districts, municipalities or County Departments other than those funded with Tourist Development Taxes). 8. Grant Application Review. The Coastal Advisory Committee and the Parks and Recreation Advisory Board will prepare and maintain a proposed prioritized annual spending plan for the use of Tourist Development Tax Category "A" funds, with a ten year projection. The proposed plans will be submitted to the Board of County Commissioners (BCC) for their consideration and approval, via the TDC. These submissions will coincide with the annual Collier County budget cycle. The Coastal Advisory Committee will review all requests for Tourist Development Tax Category "A" funds, with the exception of County maintained beach park facilities that will be handled by the Parks and Recreation Advisory Board. Both advisory boards will make recommendation for approval, denial or modification to the BCC, via the TDC, consistent with the BCC established policy for use of these funds. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this day of , 2013, after motion, second and majority vote favoring same. ATTEST BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By: Deputy Clerk GEORGIA A. HILLER, ESQ., Chairwoman Approved as to Form and Legal Sufficiency: olleen M. Greene Assistant County Attorney Packet Page -1057- 3/26/2013 16.F.6. (Revised 2005) TOURIST DEVELOPMENT CATEGORY "A" FUNDING POLICY 1. Use of TDC Category A Fund: To finance beach park facilities of or beach improvement, maintenance, renourishment, restoration and erosion control, including pass and inlet maintenance, shoreline protection, enhancement, cleanup or restoration of inland lakes and rivers to which there is public access, as these relate to the physical preservation of the beach, shoreline or inland lake or river. (Ordinance No. 92 -60, as amended. Gad or- Or-daaaee, Di--4s n ;. See. 126 8;.) 2. Source of other funds: Federal or State funds are desirable and should be diligently pursued. 3. Mandatory annual budget allocation of funds and maintenance of reserves. a. Catastrophe reserves shall be accumulated in the budget with $1M in 2004 plus $0.5M per year thereafter (up to a maximum of $10M). In the event of a catastrophe requiring the expenditure of all or part of these reserves, $0.5M will continue to be set aside. b. Major renourishment reserves shall be accumulated in the budget with 2.5M per year. pennitfin (as of September- 2005; pr-ejeet d tee- setting -aside €unds Reserves shall not be accumulated in the vear(s) during the maior beach renourishment. ext scheduled for November 2013.) ; Ws in FY 2086). n c. Beach park facilities (including beach access property acquisition) shall be funded annually at 10.840 percent in of the TDC Category "A" revenues. d. Remaining funds may be used for eligible grant applications as outlined in the policy below. 4. Eligibility: Eligible beach areas qualify for Category "A" funding. An "eligible beach area" is: a. Accessible to the public; and b. No more than one -half mile from a beach park facility, public access point, hotel or motel and if at least 80% of the entire beach area is classified as eligible, otherwise ineligible gaps will be deemed eligible. 5. Ineligible beach areas: a. Beach areas not meeting the criteria for eligibility of paragraph 4. above, are not eligible for Category "A" funding. Renourishment or maintenance of these beach areas are the responsibility of adjacent property owners and must be privately funded. b. An area of an ineligible beach that is subject to high erosion, with the recommendation of the Coastal Advisory Committee and deteffaination finding by the Board of County Commissioners as being in the ..ublie into .v that the project promotes tourism, may have n erosion control structures installed, with Category "A" funding. Packet Page -1058- 3/26/2013 16. F.6. 6. Inlet Sand Bypassing. The bypassing of sand across inlets may be funded by Tourist Development Tax Category "A" funding provided the Inlet Management Plan recommends the bypassing, the dredging of the pass or inlet is recommended by the Coastal Advisory Committee meets- the -filet f6adingpaheyeriteria and is approved by the Board of County Commissioners with a finding that the project promotes tourism. . No TDC Category "A" funding will be approved for dredging non -beach compatible material except when encountered during an approved realignment or modification to an existing approved pass /inlet dredging project and then only when recommended by the Coastal Advisory Committee, Tourist Development Council and approved by the Board of County Commissioners as being in the ..ubli„ iatemg with a finding that the project promotes tourism. 7. Shore protection structures and project sponsorship. Projects, including construction and maintenance of shore protection structures (groins, jetties, breakwaters, etc.), may be funded by Category "A" funding for eligible beaches. However, `ownership' responsibilities must rest with an entity other than "Tourist Development Taxes" — i.e. there must be a project sponsor (private interest, taxing districts, municipalities or County Departments other than those funded with Tourist Development Taxes). 8. Grant Application Review. The Coastal Advisory Committee and the Parks and Recreation Advisory Board will prepare and maintain a proposed prioritized annual spending plan for the use of Tourist Development Tax Category "A" funds, with a ten year projection. The proposed plans will be submitted to the Board of County Commissioners (BCC} for their consideration and approval, via the TDC. These submissions will coincide with the annual Collier county budget cycle. The Coastal Advisory Committee will review all requests for Tourist Development Tax Category "A" funds, with the exception of County maintained beach park facilities that will be handled by the Parks and Recreation Advisory Board. Both advisory boards will make recommendation for approval, denial or modification to the BCC, via the TDC, consistent with the BCC established policy for use of these funds. Packet Page -1059-