Broward County FY25 Budget Workshop: TDT, Transportation, and Capital Programs – August 27, 2024
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Broward County FY25 Budget Workshop: TDT, Transportation, and Capital Programs
The Broward County Commission held a budget workshop on August 27, 2024, to discuss the FY25 budget recommendations for four major areas: Tourist Development Tax (TDT), Transportation Capital, Transportation Surtax, and General Capital. County Administrator Monica Cepero, budget staff, and tourism officials presented revenue forecasts, program expenditures, and capital needs. The meeting also included a consensus on the Sheriff's Office budget and a brief discussion on state park development.
Tourist Development Tax (TDT) Program
- Presentation by: Elijah Anderson (OMB Program Manager) and Stacy Ritter (President & CEO, Visit Lauderdale), with Tony Cordo (Executive VP).
- Revenue: FY24 TDT revenue projected at $124 million, with FY25 recommended budget also $124 million, reflecting stabilization. All six pennies of the tourist development tax are levied (first two in 1980, sixth in 2018). Historical revenue declined 17% between FY08-09 and 27% during COVID-19.
- Hotel Performance: Hotel occupancy stable in FY24, but average daily rate declined 3-5%. Expect slight rate growth in FY25; Easter falling a month later will extend the spring season. RevPAR expected to improve in FY25.
- Budget: FY25 TDT program budget totals $284.6 million, supported by recurring and one-time revenues. Recurring funds support Visit Lauderdale operations, marketing ($23.9 million recommended), convention center operations ($25 million), debt service ($29.1 million annually until 2051), and beach projects. One-time funds support marketing supplements, convention center renovations, and beach projects.
- Beach Program: FY25 uses $7.4 million annual contribution plus interest and fund balance for beach renourishment, dune restoration, and a new artificial reef program. FY26-28 save for first Port Everglades Inlet Management dredging event, estimated city share in FY29.
- Convention Center Expansion: West Expansion substantially complete (Oct 2021); East Expansion estimated at $369 million, substantial completion fall 2025. Headquarters hotel (not TDT funded) estimated at $730 million, completion fall 2025.
- Visit Lauderdale Bookings: ~30 group bookings through 2031, ~55,500 room nights, $18.7 million revenue. Notable bookings include National Funeral Directors Association and Association for the Advancement of Medical Instrumentation.
Public Comments & Testimony
- Mayor's comments on Visit Florida removing LGBT section: Mayor asked Stacy Ritter to comment. Ritter stated 15% of travelers are LGBTQ+, spending 1.5 times more than others; already received emails from travelers canceling trips; reiterated commitment to “Everyone Under the Sun” message. Mayor cited survey: 52% of LGBTQ+ travelers hesitant to travel to Florida due to legislation.
- Commissioner’s concern about short-term rentals: Commissioner noted impact on affordable housing and community character; supported enforcement of bed tax collections.
- Commissioner on ecotourism: Expressed interest in promoting Everglades ecotourism; Stacy Ritter conceded it's an underdeveloped niche.
- Commissioner on cultural funding: Expressed support for cultural tourism investments and asked about TDT cultural support; Ritter noted efforts to fund cultural organizations like Slow Burn Theatre.
Discussion Items
- Transportation Capital (presented by Sunjan Zanker): Gas tax revenues projected to decline 4.7% in FY24; FY25 budget assumes 1% decrease. Five-year program totals $446 million, including $374 million in gas tax revenues. Major projects include convention center bypass road (total $62 million, 15% complete), bridge projects, road maintenance, and transit operating transfers.
- Transportation Surtax (presented by Sunjan Zanker): FY24 revenues down 1% vs FY23; FY25 budgeted flat. Five-year program totals $2.67 billion, leveraging ~$1 billion in federal/state grants. Oversight board approved FY25 budget and five-year plan on Aug 2 & 9. Municipal projects over 10% of projected revenue. Includes Port-to-Port light rail (FY26), BRT projects, Broward Commuter Rail South (cost over $300 million).
- General Capital Program (presented by Elijah Anderson): Focus on maintaining $2 billion in tax-supported assets; proposed $43.4 million average annual facility maintenance. FY25 appropriations include $15 million for general facility maintenance, $13.9 million for library projects, $13.6 million for main jail glazing, $12.9 million for public safety answering points, and $7.4 million for parks maintenance. Major unfunded future projects include Government Center East ($640 million), South Regional Courthouse ($262.7 million), and Emergency Operations Center.
- County Administrator's Budget Comments: Highlighted challenges of aging assets; emphasized need for feedback on large capital projects.
- Sheriff's Budget Discussion: Mayor Geller proposed giving Sheriff's Office a lump sum increase (7.23%) rather than line-item details, citing sheriff's discretion under 30.49. County attorney clarified legal requirements for line-item budgeting. Consensus reached to support the 7.23% increase within line-item structure, with flexibility for sheriff to reallocate.
- State Parks Development: Mayor Bogen expressed opposition to state park development (golf courses, hotels). Commission agreed to send a letter to state officials; staff will attend public hearings.
Key Outcomes
- TDT Budget: No formal vote; presentation accepted with questions and comments.
- Transportation Capital and Surtax: No formal vote; updates provided on ILA third amendment, including progress on a “skinny amendment” to address municipal project interpretations.
- General Capital: Commissioner Udine voiced concerns over costs of major projects; Commissioner Fisher emphasized debt service transparency; no formal action.
- Sheriff's Budget: Consensus reached to support the County Administrator's recommendation of a 7.23% increase, with funding allocated at object code level (not lump sum), and sheriff retains reallocation authority.
- State Parks: Directed staff to prepare a letter to state officials opposing park development.
- Next Steps: County administration to provide additional details on capital project debt service and a cheat sheet on bus shelter ownership.
Meeting Transcript
Good morning. Good morning, everybody. Good morning, Madam Mayor. Good morning. Morning, Mayor. Morning, everyone. Glad everyone is here this morning, except Tim is on the line, I believe. I don't know if he's on yet. Can we check and see if Tim Ryan, if Commissioner Ryan's on? Yeah, please. Okay. Thank you. Okay. So we are at uh have an uh four-point agenda here for the budget workshop today. I mean, we're going to uh begin with uh tourist development taxes. Uh and that would be our uh former commissioner Stacey Ritter. Well, first we'll we'll let you're gonna applaud for the uh for the administrator first. Thank you. Thank you, and good morning start. Yeah, all kick us off. Um make up for another commissioner who might not physically be present. It's only for Tim Ryan. He's not here, so um, so so good morning uh and thank you. So uh we are here to talk about uh rounding the corner with our budget workshops. Um we have four major topics that we'll be um did you need that we'll be covering today. We're gonna start off with uh the tourist development tax, and you'll get to see um you know where we've been, where we're where we are today and where we're going, and and the plan um on on how to um what to do with the revenues and the forecasting there. Then we're gonna switch over to transportation capital, um, then the surtax program and and with general capital program. We'll make this as painless as possible. Um the necessary evil here, but I will tell you that um you know it was um you know uh uh uh an exercise in playing um making the puzzle pieces put um put them all together. We've got a lot of uh ambitious goals, as you know, um in the coming year, and and we're trying to make it all work within the the limited resources and and seeing where the revenues are going and and how to make it all happen. So we'll we'll start off with uh the TDT conversation, and um Elijah Anderson is gonna kick it off, and then um Stacy's gonna um uh tag team in this presentation as well. Thank you. Morning, Commissioners. Good morning, Mayor. Uh like uh County Administrator Monica Spiro said, my name's Elijah Anderson. I'm a program manager with the Office of Management Budget. Today we'll be talking about the county administrator's FY25 tourist development tax program recommendations. But first, we will have a tourism overview provided by President and CEO Stacy Ritter. Thank you, Commissioner Gallar. My biggest, my second biggest fan, I think. Thank you. Um morning, Commissioners, Mayor, Vice Mayor, thank you. Uh we always we always love this part of our year because we get to come and spread sunshine, happiness, and beach weather. So um, I think you'll find that that's true with the information we're gonna provide today. So slide one is um hotel occupancy for fiscal years 23, 24, and 25. Um, you can see that the curve is pretty much the same as it um this is this is our yearly curve and and always has been our yearly curve with the exception of 2020, which we all remember fondly. Um hotel occupancy is relatively stable in fiscal year 24 as compared to fiscal year 23. In terms of limited revenue group growth, hotels tend to cut rates to maintain occupancy, and that's what we're seeing in FY24. Um, it's a real balancing act with most with the hotel properties. Do we keep our rates high and our occupancy low, or do we increase our occupancy and lower our rates?
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