Agenda 04/13/2010 Item #16F 7
Agenda Item No. 16F7
April 13, 2010
Page 1 of6
EXECUTIVE SUMMARY
Report from the March 15,2010 Joint Board ofConnty Commissioner (BCC) and
Tourist Development Council (TDC) workshop covering tourist development tax
dollars and associated budgetary considerations.
OBJECTIVE: To provide information on the distribution of tourist tax dollars as well as
fiscal year 2011 budgetary issues and considerations facing the family of tourist tax
funds.
CONSIDERATIONS: As part of the March 15,2010 Joint Workshop with members of
the Tourist Development Council, the BCC directed that a report covering tourist tax
distribution and the budgeting of those dollars be prepared for consideration on April 13,
2010.
The distribution of tourist tax dollars and their use is governed by section 125.0104,
Florida Statutes as well as local County enabling documents, including;
· Ordinance No. 2005-43 adopted by the Board on July 26,2005 (see attached)
and,
. Category "A" Funding Policy (see attached)
Tourist tax dollars are collected by the Tax Collector and distributed by the Clerk's
Finance Department directly to the following TDC operating and capital funds pursuant
to Ordinance No. 2005-43;
Operating Funds:
I. Fund 184 - Category "B" Marketing and Promotion; Accounts for 4th percent
dollars devoted exclusively to marketing and promotion.
2. Fund 193 - Category "C-2" Non County Museum; Distribution of dollars on a
grant basis to non-county museum facilities.
3. Fund 194 - Category "B" Administration and Overhead; Appropriates dollars to
administer and manage the County's tourist development marketing and
promotion programs.
4. Fund 196 - Disaster Recovery Advertising; No direct TDC dollars deposited;
Replenished from dollars swept out of Fund 194 pursuant to Ordinance 2005-43.
5. Fund 198 - Category "CI" County Museums - Appropriates dollars to operate
County museum facilities.
Capital Funds:
.-
1. Fund 183 - Category "A" Beach Park Facilities; Accounts for 1/3 of category "A"
dollars and is devoted to beach access and related facility proj ects.
2. Fund 195 - Category "A" Beach RenourishmentJPass Maintenance; 213m,s of
category "A" dollars to fund renourishment and maintenance projects.
Distribution of Tourist Tax dollars:
Agenda Item No. 16F7
April 13, 2010
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The following table breaks down the distribution of tourist taxes by category.
Tourist Development Council (TDC) Tax
Category A -
Beaches & Beach
Park Facilities
50%
Category C1 -
Museums-County
Owned
11%
Category C2 -
Museums-Non
County Owned
2%
..J
For every dollar of tourist taxes received 50 cents is devoted to beaches for
renourishment and pass/inlet maintenance as well as beach park facility improvements
and facility access projects. Advertising consumes 25 cents with the remaining 25 cents
split between museums and TDC administration and overhead.
Actual tourist tax collections since FY 2000 are shown below. Note that the fourth
percent was added with the passage of Ordinance No. 2005-43 and collections began
during fiscal year 2006.
Fiscal Year Total Tourist Tax Collections
FY 2000 $8,670,961
FY 2001 $9,175,159
FY 2002 $8,194,936
FY 2003 $8,370,439
FY 2004 $9,720,225
FY 2005 $10,484,443
FY 2006 $13,634,759
FY 2007 $14,228,682
FY 2008 -- $14,795,681
FY 2009 $12,345,136
Budgetary Considerations:
Revenue Centric:
Agenda Item No. 16F7
April 13, 2010
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Tourist tax funds are considered revenue centric - relying predominately upon tourist
taxes to offset appropriations. The exception would be federal or state dollars to offset
renourishment projects or other tourism activities. The County is currently working with
the Federal Emergency Management Agency (FEMA) and the State Department of
Environmental Protection (DEP) to procure up to an additional $] 3,000,000 in additional
dollars due to damage from hurricanes Wilma and Katrina and Tropical Storm Gabrielle.
Reserves:
Each fiscal year there are special budget considerations which must be applied as fund
expense appropriations are considered. This is especially true within Capital Project Fund
195 where beach renourishment and inlet maintenance activities are budgeted. The
Board's adopted Category" A" Funding Policy established a series of set - aside
requirements connected with catastrophe and renourishment reserves. The following table
provides the policy requirements for each by fiscal year.
Fund 195 Restricted Policy Reserves
Catastrophe. Per Policy $500,000 annually (CAP =
$10,000,000)
03/04
04/05
05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
13/14
14/15
15/16
16/17
1,000,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
7,000,000
7,500,000
Major Renourishment Reserves - Begins with
$2,000,000 per year afIer completion of the most
recent renourishmenl project
Completion = 05/06
06/07
07/08
08/09
09/10
10/11
11/12
12/13
13/14
14/15
15/16
16/17
17/18
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
o
2,000,000
Agenda Item No. 16F7
April 13, 2010
Page40f6
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
o
2,000,000
As the budget for Fund 195 is developed for fiscal year 2011, reserves must be sufficient
to cover $14,500,000 in required set-aside pursuant to policy. The last major
renourishment project completed during fiscal year 2006 cost approximately
$25,000,000. Generally, major renourishments are planned every eight (8) to ten (10)
years.
Budgeted fiscal year 20] 0 reserves in Fund 183 - the other TDC capital proj ect fund
totals only $13,600 as the majority of dollars have been appropriated toward a variety of
beach access projects, These projects include: Vanderbilt Beach access improvements,
upgrades to the Clam Pass Southern Boardwalk and the expansion of Conner Park.
Reserves within tourist tax operating funds are relatively low - with the exception of
Fund 196 which by nature sets aside dollars to fund emergency advertising and marketing
as directed by the Board.
Recently, the Board upon recommendation by the Tourist Development Council
authorized that $1,000,000 in beach renourishment and catastrophe reserves be used to
enhance the 20 I 0 marketing and promotion program. This one time transfer will be
revisited by the Board in May after the effect of this advertising dollar infusion can be
assessed and the status of possible FEMA reimbursements determined.
FISCAL IMPACT: For informational purposes, excerpts from the approved fiscal year
2010 budget book covering TOC funds are attached. Fiscal year 2011 tourist
development tax budgets are currently being prepared for Board consideration during the
June workshop - scheduled for June 24th and June 25th.
GROWTH MANAGEMENT IMPACT: None
Agenda Item No. 16F7
April 13, 2010
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LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's
Office and is legally sufficient for Board action. - CMG
RECOMMENDATION: That the Board of County Commissioners accept this report
and continue to appropriate TDC revenues in accordance with the existing enabling
Ordinance and funding policy.
Prepared by: Mark Isackson, Corporate Financial Planning and Management Services,
County Manager's Office
Item Number:
Item Summary:
Meeting Date:
Agenda Item No. 16F7
April 13, 2010
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COLLIER COUNTY
BOARD OF COUNlY COMMISSIONERS
16F7
Recommendation to accept the Report from the March 15,2010 Joint Board of County
Commissioner (BCC) and T ourisl Development Council (TDC) workshop covering tourist
development tax dollars and associated budgetary considerations.
4/13/20109:00:00 AM
Date
Approved By
Leo E. Ochs, Jr.
County Managers Office
County Manager
County Managers Office
4/7/201012:20 PM