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Board of Commissioners Page 2 of 4 May 24, 2022 Funding and Analysis Staff estimates total funding of $1,426,064 available for distribution to tourism development agencies in FY 22/23. As of the most recent April 2022 monthly report, Tourist Tax revenues are exceeding last year's collections by 39.6% or $742,111, and exceeding budgeted estimates by 61.1% or $991,427. Because Tourist Tax revenues have been quite strong over the past fiscal year, staff proposes the budget be increased by 31%, or $336,573. On February 2, 2021 the Board of County Commissioners approved allocating UP of the half - cent of Tourist Tax revenue proceeds made available from funding the Jackie Robinson Training Complex, to the Tourism Development Fund. This increased allocation is estimated to generate approximately $148,500 in the upcoming fiscal year. Furthermore, a Reserve for Contingency has been set up to earmark 75% of this additional funding per Board direction. The Reserve for Contingency account is budgeted at $111,375 and will be available to fund any mid -year adjustments or unanticipated funding opportunities that may arise. In light of the increased allocation, as well as the strong performance of Tourist Tax revenues and their associated increase to the budget, staff is proposing 10% of budgeted revenues be retained. Although Tourist Tax revenues are currently exceeding budgeted estimates, there will likely come a time when that trend will no longer be a reality and budgets will need to be reduced. By setting aside funds when collections are high, the County will be able to award additional funding during a potential downturn when tourism promotion is crucial to our economy. An additional $200,283 or 20.8% is available to be awarded to the TDC agencies, after the Reserve for Contingency and Cash Forward allocations are funded. The funding amounts agreed to at the Tourist Development Council meeting, following completion of scoring sheets by TDC members, are summarized in Table 2 below. Following a motion made by Mr. Nunn and seconded by Mr. Collins, the funding levels were approved with a 7-1 vote, with Jennifer Bates dissenting. Table 2 TOURIST DEVELOPMENT COUNCIL Fiscal Year 2022/2023 TDC's Funding Recommendation Organization 2021/2022 Funding 2022/2023 Recommendation Increase (Decrease) % Increase (Decrease) Indian River County Chamber of Commerce $537,043 $656,084 $119,041 22.2% Sebastian River Area Chamber of Commerce $110,050 $140,000 $29,950 27.2% Cultural Council $49,301 $65,000 $15,699 31.8% Historical Society $32,000 $32,000 $0 0.0% Treasure Coast Sports Commission $210,000 $250,000 $40,000 19.0% Vero Heritage $26,000 $32,000 $6,000 23.1% 292