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210.01(b) and (c) of this chapter may be pledged to secure and liquidate revenue bonds issued by the county for the purposes set forth in section (a)(1). Per Indian River County Code 210.01, the first two cents do not have a specific use limitation, however the third cent can only be used as set forth in Indian River County Code 210.03(a)(4) and the fourth cent can only be used as set forth in Indian River Code 210.03(a)(2) and (a)(6). Tourist Tax Cents — Indian River County Code Code Subsection 1St Penny (1)(Sports stadium) x (2)(Promote tourism) x (3)(Tourist bureau) x (4)(Beaches) x (5)(Museum/Zoo) x (6)(Debt service x Spring training facility) 2nd Penny 3rd Penny 4th Penny x x x x x x X x x Per Florida Statute 125.0104, the first three cents of Tourist Tax collected can be used towards any of the allowable expenses within the statute which includes convention centers, sports stadiums, auditoriums, aquariums, zoos, tourism promotion, beach restoration, lagoon improvements, shoreline protection, enhancement and cleanup or infrastructure improvements. The fourth cent may only be used towards funding the debt service for professional sports franchise facilities, retained spring training franchise facilities, convention centers, the operation and maintenance of a convention center or tourism promotion. Staff is recommending the half cent of Tourist Tax revenue be split with two-thirds (2/3) of the amount -dedicated for Beach Restoration and one-third (1/3) dedicated for Tourism Promotion beginning in FY 21/22. As mentioned above, this one-half cent is estimated to generate approximately $315,000 in revenue each fiscal year which would provide $210,000 in additional revenue for the Beach Restoration Fund and $105,000 in additional revenue for the Tourism Promotion Fund. Due to the rising cost of beach restoration projects, as well as the need to nourish County beaches more frequently, additional funding is needed in the Beach Restoration fund. This expense is detailed as being eligible per County Code 210.03 as referenced above in the fourth bullet point. As an example of this, the estimated cost of Sector 3 beach restoration in the current fiscal year is $15.5M. Due to the initial high bids for Sector 3 in late 2020, the County had to re- bid this project in two parts with the first portion (-60%) scheduled for this season (2020-21) and the remainder set for construction next year. The total estimated cost for the entire Sector 3 portion of the beach is now $25.7M, compared to a cost of $12.9M the last time Sector 3 was renourished in 2012. The County's beaches were impacted by hurricanes in 2016 (Matthew), 2017 (Irma), and 2019 (Dorian) causing significant beach erosion estimated at a total cost of $10.9M. While FEMA has provided funding for this erosion in the past, it is not necessarily guaranteed going forward. Furthermore, these funds must be matched (typically 25%) with local funding (typically 12.5% is provided by the State). Regardless of hurricane impacts, these renourishment projects have been needed with increased frequency over the last several years, which is a trend that will likely continue into the future. 181