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Tourist Development Tax November 30, 2023 Page 2 insurance proceeds, and other miscellaneous revenues, as qualifying events occur. Even though the Fund receives revenues from multiple sources, the Fund has a negative fund balance of approximately $4M, with $14.3M in reimbursable grants owed to the County. Thus, the Board decided to increase the allotment of Tourist Tax dollars to beach renourishment by decreasing the amount of Tourist Tax allocated to the Jackie Robinson Training Complex fund from one half cent to one-quarter of a cent. The reduction will still generate $258,750 which sufficiently covers the maintenance portion of the County's lease obligation ($200,000). The Board directed that the remaining $154,188 be funded from Optional Sales Tax revenues. This freed up that one-quarter of a cent, or $258,750, to be allocated to the Beach Restoration Fund, which brings the total fiscal year 2023/24 Tourist Tax portion of the fund's budget to $2,156,112. The allocations of Tourist Tax revenues are now distributed as follows: Eligible Usage Categories 1 st or 2nd 31d 4th Total Sports Stadium 0.25 0.25 Tourism Promotion 0.67 1.0 1.67 Beach Restoration 1.08 1.0 2.08 Total 2.0 1.0 1.0 4.0 The attached Ordinance Amendment removes the "sixth cent" but retains the above fund allocations. Future Allocation — 6th Cent As mentioned previously, the County has the ability to levy what is referred to as the "sixth cent", but the levy must be approved by referendum at a general election. The next general election will take place in November 2024. In order to qualify for that election, the final referendum must be submitted to the Indian River County Supervisor of Elections by August 14, 2024. The title of the referendum can be no longer that 15 words and the body of the referendum no longer than 75 words. The County Attorney's office will coordinate with the Supervisor's office to place the needed referendum on the November ballot. Funding: Although there is no change from the four cents that has previously, and will continue to be collected, a budget amendment is necessary to reflect the budgetary adjustment down to four cents since the levy of an additional cent was included in the approved 2023/24 budget. Recommendation Staff recommends the Board conduct the Public Hearing on the proposed ordinance amendment, take testimony from interested parties, approve the proposed amendment repealing the "sixth cent" of Tourist Tax, but retain the reallocation of funds, and authorize the Chairman to execute the amendment on behalf of the Board. Attachment Proposed Ordinance Amendment 181