Agenda 04/23/2013 Item #17D4/23/2013 17.D.
EXECUTIVE SUMMARY
Recommendation to approve and adopt 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 the
Chairwoman to execute the Ordinance amendments; and approve all necessary
budget amendments. Approval of this Amendment requires a super - majority vote.
OBJECTIVE: To obtain final approval of amendments to the TDT Ordinance, and
provide for its implementation.
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 aforementioned recommendations were
incorporated into the Tourist Development Tax Ordinance No. 92 -60 as amended, and on
March 26, 2013 the Board authorized advertisement of the proposed amendments for
public hearing and adoption.
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
Packet Page -1950-
4/23/2013 17. D.
promotion for an additional three fiscal years commencing on October 1, 2013 (FY 14,
15 and 16).
ADVISORY COMMITTEE RECOMMENDATION: On January 28, 2013 the
Tourist Development Council (TDC) voted 8 -0 to recommend approval of the TDT
funding redistribution as recommended by the County Manager.
FISCAL IMPACT: The TDT Ordinance and Category "A" Funding Policy
amendments under consideration involve changing the distribution percentages of TDT
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 Development Tax Redistribution
Current Aggreg ate Distribution
Proposed Aggregate Distribution
Cat
Description
Fund
%
S
%
$
5 Change
A
A
Summary by Fund
Beach Facilities
Beach Renourishment
183
195
16.567%
33.333%
2,392,533
4,785,067
4.476%
36.816%
642,533
5,285,067
(1,750,000)
500,000
A
Total Cat A
Description
50.000%
7,177,600
41.292%
5,927,600
(1,250,0D0)
B
B
B
TDC Promotion
TDCAdmin
Promotion Disaster Recovery
184
194
196
25.000%
11.618%
0.000%
3,588,800
1,667,787
35.101%
11.618%
0.0D0%
5,038,800
1,667,787
1,450,DD0
B
Total Cat B
-.
36.618%
5,256,587
46.719%
6,706,587
1,450,000
C -1
C -2
County Museums
Non- County Museums
198
193
11.0D0%
2.382%
1,579,072
341,941
9.607%
2.382%
1,379,072
341,941
(200,0130)
C
TotaI Cat C
13.382%
1,921,013
11.989%
1,721,013
(200,000)
(1.250,000)
Check Total
1
100.00%
14,355,200
100.01)%
14,355,200
-
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).
(1) = Governed by Category "A" Funding Poicy
(2) = Governed by General Board Policy ap roved by Executive Summary
Packet Page -1951-
Non - County
Beach
Disaster
County
Beach Parks
Promotion
Museums
TDC Admin
Renourishmen
Recovery
Museums
at
Description
Fund 183
Fund 184
Fund 193
Fund 194
t Fund 195
Fund 196
Fund 198
Total
A
Beach Faciirties -183 (1)
(1,750,000)
_ _ -
-.
-
-
-.
- -
(1,750,000)
A
Beach Renourishment -195 (1)
-
-
-
-
500,ODD
_
-
-
50o,ODD
Sub -Total Cat A
(1,750,ODO )
500,DDO
-
-
(1.250,000)
8
TDC Promotion -184
1,450,000
1,450,000
B
TDCAdmin -194
8
TDCAdminSweep
-.. - _._-..
�__
.... 250,000
254,000
B-,
B
Promotion Disaster Rerovery-196
-
-
-
-
-
-
-
-
B
Interest5weep(aIITDCfunds)(2)
209,500
-
209,500
Sub -Total Cat B
1,909,500
2,909,500
C1
County Museums -198
-
-
-
-
(200,ODD)
_ (200,000)
C2
Non- CountyMuseums- 193._.
-...
-
-.....
-
-.....
Sub-Total Cat C
-
-
-
-
-
-
(200,000)
(200,000)
Total Cha 2DC Aiocatn
750 OQ0
-" .1'
-
500
-
206,000
459,500
(1) = Governed by Category "A" Funding Poicy
(2) = Governed by General Board Policy ap roved by Executive Summary
Packet Page -1951-
4/23/2013 17.D.
GROWTH MANAGEMENT IMPACT: There is no growth management impact
associated with this Executive Summary.
LEGAL CONSIDERATIONS: The proposed amendment to the Tourist Development
Tax Ordinance No. 92 -60, as amended, requires a super - majority vote. This item has
been reviewed by the County Attorney's Office and is legally sufficient for Board action.
—CMG
RECOMMENDATION: To approve and adopt 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 the Chairwoman
to execute the Ordinance amendments, and approve all necessary budget amendments.
Prepared by: Jack Wert, Tourism Director, Edward Finn, Senior Budget Analyst, OMB
Attachments:
1. Proposed Ordinance Amendments
Packet Page -1952-
4/23/2013 17.D.
COLLIER COUNTY
Board of County Commissioners
Item Number: 17.17.D.
Item Summary: Recommendation to approve and adopt 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 the Chairwoman to
execute the Ordinance amendments; and approve all necessary budget amendments. Approval
of this Amendment requires a super- majority vote.
Meeting Date: 4/23/2013
Prepared By
Name: GreenKelly
Title: Tourist Development Tax Coordinator,Tourism
4/16/2013 11:51:43 AM
Submitted by
Title: Director - Tourism,Tourism
Name: WertJack
4/16/2013 11:51:45 AM
Approved By
Name: WertJack
Title: Director - Tourism,Tourism
Date: 4/16/2013 12:54:59 PM
Name: GreeneColleen
Title: Assistant County Attorney,County Attorney
Date: 4/16/2013 2:01:36 PM
Name: IsacksonMark
Title: Director -Corp Financial and Mgmt Svs,CMO
Date: 4/16/2013 2:43:38 PM
Name: KlatzkowJeff
Title: County Attorney
Packet Page -1953-
Date: 4/16/2013 2:59:45 PM
Name: OchsLeo
Title: County Manager
Date: 4/17/2013 9:27:47 AM
Packet Page -1954-
4/23/2013 17.D.
4/23/2013 17.D.
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 (4'
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 (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 4`' 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 Str-aek Through are deleted.
Packet Page -1955-
4/23/2013 17.D.
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 ask- T-4eelph are deleted.
Packet Page -1956-
4/23/2013 17.D.
Percentage of Net Revenue
54 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.
CATEGORYB 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: 22:8 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 Stmek Thfeugh are deleted.
Packet Page -1957-
4/23/2013 1 7. D.
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.
ems.
(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.
(4,) The Disaster Recover Advertising Fund will
the me- .236-INe of the 2% tm to maintain a maximum level of $1 millie
$500,000.00. Should the fund fall below $500,000.00, the fund shall be
replenished up to a maximum of $500,000.00 ner fiscal year from the General
Fund. M the end of eseb fiseel . e e g funds the 23.236% f the
21% the abeve uses in the 23.236% of the o
"B" It is the iatefA of the
dollars in the ftawe.
Words Underlined are added; Words gtr-ur* T4eugh are deleted.
Packet Page -1958-
4/23/2013 17.D.
(4) (5) Administrative costs.
a. Tourism promotion administrative costs (Fund 194) shall not
exceed 32% of the total amount collected each fiscal year for
Category "B" revenue. This amount may be amended upwardly or
downwardly each budget year _provided that the amount of the
budget does not exceed 32% of the total Category `B" revenue
b. Project Management and 185), 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). This amount may be
amended upwardly or downwardly each budget year provided that
the amount of the budget does not exceed 15% of Category "A"
revenues.
(5) f 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) L71 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 Lek Thfough are deleted.
Packet Page -1959-
4/23/2013 17.D.
(7) The sum of $1,000,009.00 annually alleeated for- Ga4eger-y "A" BeReh
Park Faeil=ties— Fund 183 shall be malleeated te Ftmd 184 to be used f
at L.' 1, time this pr-eyisiea will e e and be of ne f.«t1,e« f r-ee a efF ^t ..- ess
Geun4y Fund 195 shall be rvalleea4ed te Fund 184 te be used fer- destination
time d ;11 e e and be of ne f H4 er- eree er effeet u: less fia4 .e«
eK4@aded by the BearA-
!9\ Five hundred ($500,000.00) • of the Twe ....:11:..., dellexs
($2,090,090.00)
D ese f.e.,.. /"''ea t., L'.....1 195 shall be r-vmioe^ted to L'.,.,.7 184 to be used
at whieh fi a this p 411 e e and be -ef ne fiH4 e« f «ve a efF ^t up ess
PaAher- extended by the Beafd.
evined Fffi and Museums ea and operated net for-
Musewns to be used .c a e
{-1-1-} M 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.
Words Underlined are added; Words Stmek Pweugh are deleted.
Packet Page -1960-
4/23/2013 17.D.
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.
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
By:
Deputy Clerk
Approved as to form
and legal sufficiency:
C�
olleen M. Greene
Assistant County Attorney
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
GEORGIA A. HILLER, ESQ.,
CHAIRWOMAN
Words Underlined are added; Words Stmek ThFmgh are deleted.
Packet Page -1961-
4/23/2013 17.D.
26D If Wednesday, April 10, 2013 D N A P L E S DA I LY NEWS
W
0`
NOTICE TO CONSIDER ORDINANCE
Notice is hereby given that on Tuesday, April 23, 2013, in the Bo_ ardroom, 3rd Floor,
Administration Building, Collier County Government tenter, 3299 East Tamiami
Trail, Naples, Florida, the Board of County Commissioners will consider the enact-
ment of a Count Ordinance. The meeting will commence at 9:00 A.M. The title
of the proposed Ordinance is as follows:
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 COWER COUNTY CODE OF LAWS AND ORDINANCES,
RELATING TO THE LEVY OF A 2% TOURIST DEVELOPMENT TAX, AN .ADDITIONAL
1 % TAX (3RD 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 SEVERABILTTY; PROVIDING FOR INCLUSION IN THE CODE OF
LAWS AND ORDINANCES,- AND PROVIDING FOR AN EFFECTIVE DATE. `
Copies of the proposed Ordinance' are on file with the Clerk to the Board and are
available for inspection. All interested parties are invited tWattend and be heard.
NOTE: All persons wishing to .speak on any agenda .item must register with the
County administrator prior to "presentation of the agenda item to be addressed.
Individual speakers will be limited to 3 minutes on any item. The selection of an
individual to ,speak on behalf of an organization or group is `encouraged. n If
recognized by the Chairman, a spokesperson for a group or organization may be
allotted 10 minutes to speak.on an item.
Persons wishing to have written or graphic -materials included in the Board agenda
packets must submit said material a minimum of 3 weeks prior to the respective
public hearing. In any case, written materials intended to be considered by the
Board shall be submitted to the appropriate County staff a minimum of seven days
prior to the public hearing. All material used in presentations before the Board
will become a permanent part of the record.
Any person who decides to appeal a decision of the Board will need a record of the
proceedings pertaining thereto and therefore, may need to ensure that a verbatim
record of the proceedings is made, which record includes the testimony and
evidence upon which the appeal is based.
If you are a person with a disability who needs any accommodation in order to
participate in this proceeding, you are entitled, at no cost to you, to the provision
of certain assistance. Please .contact_ the Collier County Facilities Management
Department, located at 3335 Tamiaml Trail East, Suite 4101, Building W, Naples,
Florida 341,2, (239) 252 - 8380.. Assisted listening devices for the hearing impaired
are available in the County Commissioners' Office.
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
GEORGIA A. HILLER, ESQ, CHAIRWOMAN _
DWIGHT E. BROCK, CLERK
By: Teresa Cannon, Deputy Clerk
(SEAL)
Anril 10 2011 No totm�m
Packet Page -1962-