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Tourist Development Tax/ Convention Center
Budget WorksessionJuly 11, 2011
Orange County
• Background
• Revenue Outlook
• TDT Expenditures
• Convention Center Update
Presentation Outline
• Background
• Revenue Outlook
• TDT Expenditures
• Convention Center Update
Presentation Outline
TDT• Short-term lodging tax
• State TDT law has different uses for 1st to 4th cents, 5th cent, and 6th cent levies
Background
• Orange County levied TDT at 2% in 1979
• Currently TDT is at 6%
• State Law governs uses
• Not allowed for: roads, schools, public safety, etc.
• Added tourism levy for convention centers, tourism promotion, sports, arts, and museum costs
Background
Historical Revenue Growth: 9.5% Avg Annual TDT Growth (1979-2010)
Background
• Background
• Revenue Outlook
• TDT Expenditures
• Convention Center Update
Outline
FY Month1st-6th
Cent TDT Collections
MTM Growth
Annual Amount
Annual Growth
2008 Sep-08 168.2$ 3.1%2009 Sep-09 142.2$ -15.4%2010 Sep-10 147.8$ 3.9%2011 Oct-10 13.2 17.4%
Nov-10 13.2 16.8%Dec-10 14.3 15.4%J an-11 12.7 7.3%Feb-11 14.7 20.9%Mar-11 18.5 15.5%Apr-11 16.0 15.9%May-11 13.1 14.7% 115.8$ 16% YTD
Collection Trends (in millions)
Revenue Outlook
2011 YTD $15.9 mill over 2010 pace after 8 months
• FY 11 TDT collection budget amended upward by $20 million to $158 million on January 25, 2011
– $132M 1st-5th Cent
• FY 12 TDT collection budget is $162 million
– Possible upward amendment later
– $135M 1st-5th Cent
Revenue Outlook
• Background
• Revenue Outlook
• TDT Expenditures
• Convention Center Update
Presentation Outline
• First 5 Percent
TDT Expenditures
• TDT expenditures for the first 4 percent are authorized by County ordinance in the TDT plan
• These expenditures are based on a prioritized flow of funds
• The fifth percent is for debt service payments
First 5 Percent
TDT Expenditures
Debt Service
Debt Reserves
OCCC Operations
Transportation
Visit Orlando
Arts and Other
Priority Funding
Priority funding based on revenue availability and BCC approval
TDT Expenditures (1st-5th)
TDT Reserves
Venues Funds
Projected Expenses (in millions):
2011 2012
Debt Service $ 73.2 $ 72.1
Convention Center Operations 15.0 15.0
Visit Orlando (O/OCCVB) Funding 21.2 22.0
Convention Center Capital 10.0 11.9
Arts 1.5 3.3
History Center 2.6 2.6
Other 1.0 1.0
Contract TDT Payment for Venues 0.0 3.0
Total $124.5 $130.9
TDT Expenditures (1st-5th)
Debt Service
Debt Reserves
OCCC Operations
Transportation
Visit Orlando
Arts and Other
Priority Funding
Priority funding based on revenue availability and BCC approval
TDT Expenditures (1st-5th)
TDT Reserves
Venues Funds
Historical OCCC Operating Subsidy (millions)
Fiscal Year
Operating Revenue
Operating Expense
OperatingSubsidy
09-10 42.3 56.3 14.0
08-09 43.1 58.3 15.2
07-08 58.4 67.3 8.9
06-07 50.5 60.9 10.4
TDT Expenditures (1st-5th)
OCCC Operating Subsidy Needed From TDT and RR&R Account
FY 11-12 $15 mill
FY 10-11 $15 mill
TDT Expenditures (1st-5th)
*Budgeted operating subsidy available from TDT and TDT Reserves:$10 million, plus $3 mill transfers from CIP budget and $2 mill from RR&R acct
Debt Service
Debt Reserves
OCCC Operations
Transportation
Visit Orlando
Arts and Other
Priority Funding
Priority funding based on revenue availability and BCC approval
TDT Expenditures (1st-5th)
TDT Reserves
Venues Funds
Visit Orlando (O/OCCVB) TDT Payments (millions)
Fiscal Year
1st – 5th PctCVB Payment
6th PctCVB Payment
TotalCVB Payment
11-12* $21.6 $10.7 $32.3
10-11* 21.2 10.3 31.5
09-10 20.3 9.5 29.8
08-09 19.9 9.0 28.9
07-08 22.1 28.0 50.1
06-07 21.6 27.1 48.7
*Projected
TDT Expenditures (1st-5th)
Last 5-YR CVB payments (2007-11): $189 mill
Debt Service
Debt Reserves
OCCC Operations
Transportation
Visit Orlando
Arts and Other
Priority Funding
Priority funding based on revenue availability and BCC approval
TDT Expenditures (1st-5th)
TDT Reserves
Venues Funds
Arts & Other Expenditures 2011:
Tax Collection Expense $700,000
Central Florida Sports Commission $135,000
Florida Classic $137,500
Arts $1,500,000
Orange County Regional History Center $2,600,000
TDT Expenditures (1st-5th)
• Effective in 2002, the BCC approved using 3% of the first 4 cents of TDT for arts and cultural activities to extent allowed by law
• Arts and cultural funding is a spending priority in the TDT plan
• Funding is contingent upon TDT collection levels
Arts Funding
Arts Funding - History2002 $500,000 Fixed Amount
2003 $500,000 Fixed Amount
2004 $509,461 Fixed Amt Plus Growth
2005 $1,200,000 Fixed Amount
2006 $2,884,029 Formula
2007 $3,083,992 Formula
2008 $3,261,033 Formula
2009 $3,363,189 Formula
2010 $2,246,058 Formula less cut amount
2011 $1,500,000 Fixed Amount
Total $19,047,762
2012 funding formula basis: $3.3 million
Debt Service
Debt Reserves
OCCC Operations
Transportation
Visit Orlando
Arts and Other
Priority Funding
Priority funding based on revenue availability and BCC approval
TDT Expenditures (1st-5th)
TDT Reserves
Venues Funds
$140 million of TDT reserves as of
May 31, 2011
TDT Reserves
$73M
Reserve for Debt Service
$56M
Reserve for OCCC
$11MAmount Above Target
• Background
• Revenue Outlook
• TDT Expenditures
• Convention Center Update
Outline
• Organization Chart
• Proposed FY 2011-12 Budget
• Accomplishments
• Budget Challenges
• Summary
Presentation Outline
• Organization Chart
• Proposed FY 2011-12 Budget
• Accomplishments
• Budget Challenges
• Summary
Presentation Outline
Executive Director – Tom AckertGeneral Manager – Jessie Allen
Deputy General Manager – Kathie Canning
Executive Director – Tom AckertGeneral Manager – Jessie Allen
Deputy General Manager – Kathie Canning
Sales, Marketing andEvent Management
Yulita Osuba
Sales, Marketing andEvent Management
Yulita Osuba
BusinessJan Addison
BusinessJan Addison
Building Security Greg Forehand
Building Security Greg Forehand
Information ServicesMike Walker
Information ServicesMike Walker
Facility OperationsFred Baker
Facility OperationsFred Baker
Event OperationsMichaal Rossi
Event OperationsMichaal RossiHuman Resources
Betty Meeks
Human ResourcesBetty Meeks
Guest & Community RelationsLex Veech
Guest & Community RelationsLex Veech
Organization Chart
• Organization Chart
• Proposed FY 2011-12 Budget
• Accomplishments
• Budget Challenges
• Summary
Presentation Outline
Proposed FY 2011-12 Budget
CurrentFY 11 $ Change
ProposedFY 12
Personal Services $26.9M ($0.1M) $26.8M
Operating Budget* 34.3M 2.9M 37.2M
Total for Operation $61.2M $2.8M $64.0M
Budget Change 4.5%
Staffing 430 (1) 429
*Includes non operating expenses $0.8M FY 10-11 and $1.2M FY 11-12
CurrentFY 11 $ Change
ProposedFY 12
Capital Improvement Projects
$15.4M ($3.5M) $11.9M
Budget Change (22.5%)
Proposed FY 2011-12 Budget
• Organization Chart
• Proposed FY 2011-12 Budget
• Accomplishments
• Budget Challenges
• Summary
Presentation Outline
• 200 Total Events• 91 Convention/Tradeshows• 1.27 Million Total Attendees• 1.03 Million Convention/Tradeshow Delegates• $1.96 Billion Economic Impact
Accomplishments
FY 2010-11 Projected Business Activity
Accomplishments
FY 2011-12 Event Activity • 212 Projected Total Events• 102 Convention/Tradeshows• 1.21 Million Total Attendees• 0.93 Million Convention/Tradeshow Delegates• $1.76 Billion Economic Impact
NBA All-Star Games
• 753 Conventions and Tradeshows• 10.1 Million Convention/Tradeshow Delegates• $19.2 Billion Economic Impact
Accomplishments
Future Business Activity
• ISO 14001 Recertified• LEED Registered• Recycling • Renewable Energy• Community Donations
Accomplishments
Sustainability
• Prime Site Award 2011
• ConventionSouth Magazine 2010 Annual Reader’s Choice Award
• MeetingsNet “Inner Circle Award”
• FLPPR “Pollution Prevention Award”
Accomplishments
Awards
• Organization Chart
• Proposed FY 2011-12
Accomplishments
• Budget Challenges
• Summary
Presentation Outline
Budget Challenges
• Revenue Challenges
• Economy
• Competition/Destination
• Maintaining Facility
• Transportation
• Organization Chart
• Proposed FY 2011-12 Budget
• Accomplishments
• Budget Challenges
• Summary
Presentation Outline
• Although improved, economic issues continue to affect the convention and trade show industry.
• We continue to face challenges from competitors globally, nationally, and regionally.
• The convention center requires continued resources to maintain/upgrade the facility to remain competitive.
Summary
• The mission of the Orange County Convention Center is economic development.
• By hosting regional, national and international conventions, meetings, and trade shows, the Center infuses the local economy with new money and expanding business opportunities.
• The mission of our staff is to provide outstanding service to the clients and users of the Center, to stimulate their desire to return and to enhance the community’s reputation for excellence.
Convention CenterMission Statement
Orange County
Tourist Development Tax/ Convention Center
Budget WorksessionJuly 11, 2011
$135.8$130.5 $133.1
$140.1
$0
$20
$40
$60
$80
$100
$120
$140
$160
2008 2009 2010
Base amount TDT 1st-5th Revenues
TDT Revenues vs. Base Amount (in millions)
Community Venues
TDT Revenues vs. Base Amount (in millions)
Community Venues
$138.5$133.1 $135.8$118.5 $123.1
$0
$20
$40
$60
$80
$100
$120
$140
$160
2009 2010 2011
Base amount TDT 1st-5th RevenuesActual Actual Projected
Events Center Debt
Events Center Contract 6th Cent Revenues & Debt Service:
Contract 6th Cent
PaymentMinimum Net Debt
Service Excess Revenue/Shortfall
2009 $14,672,396 $10,734,784 $3,937,612
2010 $15,140,101 $17,669,419 $(2,529,318)
2011 $17,819,419
2012 $18,284,419
2013 $18,596,419
2014 $18,870,419