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Item D7 D.7 County f � .�� ",�, 1 BOARD OF COUNTY COMMISSIONERS Mayor Craig Cates,District 1 Mayor Pro Tem Holly Merrill Raschein,District 5 The Florida Keys Michelle Lincoln,District 2 James K.Scholl,District 3 David Rice,District 4 County Commission Meeting May 17, 2023 Agenda Item Number: D.7 Agenda Item Summary #12083 BULK ITEM: Yes DEPARTMENT: Tourist Development Council TIME APPROXIMATE: STAFF CONTACT: Ammie Machan (305) 296-1552 N/A AGENDA ITEM WORDING: Approval to Revise Section 11 of the TDC Operations Manual to include a policy for Special Public Facilities Projects. ITEM BACKGROUND: See attached Policy for Special Public Facilities. Upon approval this will be included in the TDC Operations Manual, Section II,pages 30-31 TDC Approved same at their meeting of April 25, 2023 PREVIOUS RELEVANT BOCC ACTION: The BOCC at its December 7, 2022 the Board directed for staff to work with the TDC to develop a policy to set aside funds for special public facilities projects. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: Special Public Facilities Policy FINANCIAL IMPACT: Effective Date: Expiration Date: Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Packet Pg. 1163 D.7 Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Maxine Pacini Completed 04/28/2023 9:29 AM Christine Limbert Completed 05/01/2023 10:14 AM Purchasing Completed 05/01/2023 10:23 AM Budget and Finance Completed 05/01/2023 3:13 PM Brian Bradley Completed 05/01/2023 3:44 PM Lindsey Ballard Completed 05/02/2023 10:25 AM Board of County Commissioners Pending 05/17/2023 9:00 AM Packet Pg. 1164 D.7.a Policy to be inserted into TDC Operations Manual, Section II, pages 30-31 SPECIAL PUBLIC FACILITIES: The TDC budget is to be formulated in accordance with the Monroe County Tourism Development Plan as set forth Sec. 23-200, Monroe County Code. Every year as part of the formulation of the TDC budget, an amount that will be determined based upon the details as set forth herein and as agreed upon by the OMB and the TDC administrative office will be allocated for special public facility projects within the district budgets. These public facility project funds shall be taken from the previous end of year Unappropriated fund balance and brought forward for the public facility project fund (example: FY 22 Unappropriated fund balance amount which has been agreed upon shall be placed in the FY 24 Special Public Facility Projects line item) -. The special public facility projects funds should stay in in the fund/account for that purpose, unless the District 2 Advisory Committee (DAC) and TDC makes a special request to the BOCC to move those funds into other line-items within the DAC budget where the tourist development tax was collected. The special public facility projects will require TDC and BOCC approval but will not be processed through the capital application process. In formulating the TDC budget, the following funds will be set aside for operations and activities as set forth in detail herein: • OPERATIONS BUDGET: A minimum 6-month operation budget will be determined and agreed upon by the OMB and TDC administrative office. This operation budget will be for administrative operations to support TDC related activities and other contracted services and shall include funding to complete capital projects and events that have been approved for funding within that fiscal year. This operation budget will be established and preserved to ensure that the TDC can continue to operate if revenue collections are reduced or below projected revenue collection. • EMERGENCY RESERVE: An emergency reserve for special advertising and capital projects as needed to respond to economic disasters or other emergency events that directly or indirectly effect the Florida Keys and the promotion of tourism within the Florida Keys. The BOCC and TDC are responsible to ensure adequate funds are available. Beginning with Fiscal Year 2024, The emergency reserve fund account balance should maintain a minimum of $4 million and a CL maximum of $12 million. In the event these funds fall below the set amount an action plan to begin the replenishment to the appropriate level will be addressed in the ensuing budget year. Emergency reserve funds under the 1st and 2nd penny are allowed to be used for capital and generic promotional advertising resources in response to an emergency, natural or economic disasters or other economic disruptions which is held in account and requires TDC and BOCC approval. CL 76 Emergency reserve funds under 3rd and 4t" pennies are allowed to be used upon approval by the DACs for capital and promotional advertising resources in response to an emergency, natural or economic disasters or other economic disruptions. The emergency reserve amounts are contingency funds and are set aside based upon usage for promotional and capital project purposes in prior years, the potential needs of tourist facilities and the estimated cost of construction related services for repairs to those tourist facilities. Packet Pg. 1165