Item D09 D9
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
May 15, 2024
Agenda Item Number: D9
2023-2475
BULK ITEM: Yes DEPARTMENT: County Attorney
TIME APPROXIMATE: STAFF CONTACT: Christine Limbert-Barrows
No.
AGENDA ITEM WORDING: Approval to Revise Section II of the TDC Operations Manual to add
provisions as needed in anticipation of SB 1456 becoming law effective July 1, 2024 and to revise
provisions relating to the special public facilities projects policy.
ITEM BACKGROUND:
In anticipation of SB 1456 becoming law effective July 1, 2024 and since the Board has no meeting in
June, this Policy is being presented to ensure that the provisions of SB 1456 can implemented upon
becoming law.
SB 1456 provides that Monroe County, as an area of Critical State Concern, that also levies a tourist
development tax and a tourist impact tax may use any accumulated surplus from such taxes collected
through September 30, 2024, not to exceed $35 million for purposes of providing housing that is
Affordable and available to employees of private sector tourism related businesses in the county.
SB 1456 defines the term "accumulated surplus" to mean accumulated excess of revenue over
expenditure from prior years which has not been set aside for a specific purpose.
The Board adopted Ordinance 011-2023 at its June 21, 2023, meeting which established a separate
account established for special public facility projects which was at that time anticipated to be expanded
by legislation to include affordable housing. The special public facilities policy was also adopted
regarding how the special public facilities fund will be funded.
This revised policy is needed in order to address the provisions of SB 1456 and to clarify that the
special public facilities account does not "set aside funds for a specific purpose" and therefore can be
transferred to an account for the affordance housing in accordance with SB 1456 and as authorized by
the BOCC.
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The separate account for special public facility will remain in place under the tourist management plan
and in accordance with the revised policy.
The BOCC will adopt a separate policy or resolution setting forth the process for distribution and
expenditure of the accumulated funds for affordable housing in accordance with the conditions as set
forth in SB 1456.
The TDC was advised SB 1456 at its March 26, 2024 Meeting and this Policy at its April 30, 2024
meeting as part of the strategic budget presentation.
PREVIOUS RELEVANT BOCC ACTION:
The Board approved Ordinance 011-2023 at its June 21, 2023 Meeting.
The Board approved the special public facilities project policy at its May 17, 2023 meeting.
The Board directed staff at its April 17, 2024 meeting to prepare an ordinance relating to SB 1456.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Policy to revise Public Facility Policy to allow for accumulated funds in accordance with SB 1456 rev 4
29 24.docx
FINANCIAL IMPACT:
This Policy will allow for accumulated surplus tourist development tax and tourist impact tax revenues
through September 30, 2024 in an amount not to exceed $45 million to be used for affordable housing
in accordance with SB 1456.
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Policy to allow for"accumulated surplus funds"from TDT and Tourist Impact Tax revenues collected
through September 30,2024, Not to Exceed $35 Million to be used for affordable housing available to
private sector tourism-related businesses as needed in accordance with SB 1456.This language also
proposes to clarify that funds held in the special public facility fund shall not be considered "set aside
for a specific purpose"in order to conform to the definition of"accumulated surplus funds"as defined
in SB 1456.(Proposed to include in Section II of Operations Manual-to conform to portions from pg.
30)
The highlighted language is the added/revised policy language.
SB 1456: In accordance with SB 1456, upon the bill becoming law effective July 1, 2024, Monroe County
authorizes for "accumulated surplus funds" from Tourist Development Tax and Tourist Impact Tax
revenues through September 30, 2024, in an amount not to exceed$35 Million to be used for affordable
housing available to private sector tourism-related businesses in accordance with the provisions of SB
1456.The "accumulated surplus funds" may be transferred to an account held by the County or the
Monroe County Land Authority as approved by the Monroe County BOCC.
Special Public Facilities:The TDC budget is to be formulated in accordance with the Monroe County
Tourism Development Plan as set forth in Sec. 23-200, Monroe County Code.
In consideration of SB 1456 and in clarification of the policy previously adopted for special public
facilities, any amount of funds previously held in the special public facility fund shall not be considered
"set aside"for any specific purpose and may be used and transferred to the account established for the
purpose as established and set forth in SB 1456.
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 Advisory
Committee (DAC) and TDC make 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.
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• 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
affect 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
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.
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