Tourist Development Tax Update October 6, 2015 Orange County TDT Update TDT for Venues Presentation Outline Orange County levied Tourist Development Tax (TDT) at 2% in 1979 Currently TDT is at 6% State Law governs uses Added tourism levy for convention centers, tourism promotion, sports, arts, and public venue costs Not for: General government services, schools, public safety Tourist Development Tax Pledged for repayment of over $750 million of Convention Center debt until 2031, and funds over $48 million of annual tourism promotion. 1-4% OCCC Debt and O&M, Tourism Promotion, Tourist Development Plan uses, Arts, future growth above 2% paid to City for Venues (DPAC and Citrus Bowl) 5% OCCC Debt 6% 50% Tourism Promotion/50% to City for Arena Debt Orange County TDT Uses: TDT Historical Uses TDT Update TDT for Venues Presentation Outline 2007 Interlocal Agreement Amended in 2012 and 2013 County provides City with of 6 Cent TDT and surplus TDT collections from 1-5th Cents for construction costs City responsible for: Additional capital funding Financing construction Owning and operating facilities (all O&M costs) TDT for Venues Tourist Development Tax Interlocal Agreement Maximum Venues Project Funds from TDT 6 th cent Amway - $270m Total 6 th Cent - $270m 1 st 5 th Cent Citrus - $167m DPAC - $163m* MLS - $20m Total 1 st 5 th Cent - $350m Venues Total - $620m * Pending Final Calculation of Cost Escalator for Stage II of DPAC 6 th cent Levied in 2006 Split between tourism promotion and new Amway Center debt repayment Only two uses statutorily allowed TDT 6 th Cent 6 th Cent TDT Payments to City of Orlando for Amway Center Debt and to Visit Orlando YearVisit Orlando 6 th Cent Payment City Amway Ctr 6 th Cent Payment 2006 $1,399,637$0 2007$27,143,540$0 2008$28,018,118$ $9,016,267$14,672, $9,483,971$15,140, $11,826,200$17,482, $11,780,307$17,436, $12,752,104$18,408, $13,853,413$19,509,542 TDT 1-5 th Cent 1-5 th Cents TDT Annual TDT Base Amount Convention Center Debt and Operations Tourism Promotion Annual Surplus Above Base Amount Debt Service on City Venues Debt under 2007 Interlocal Agreement TDT 1-5 th Cents (in millions) Revenue Base Amount County keeps collections up to Base Amounts to fund TDT plan expenditures TDT Collections TDT 1-5th Percent Projected FY 2016 Expenses (in millions): Debt Service$ 69.7 Convention Center Operations 15.0 Visit Orlando Funding** 32.5 Convention Center Capital 24.6 Arts 4.6 History Center & Other 3.8 Total $150.2 ** Additional $16.2m from 6 th percent TDT = $48.7m total TDT 1-5 th Cents (in millions) Revenue Base Amount City receives surplus TDT revenues to help finance Community Venues (Citrus and DPAC) TDT 1-5 th Cents Contract TDT Payments to City TDT 1-5 th Cent for City Venues Citrus Bowl - $167m MLS Stadium - $20m DPAC Stage I & II - $163m Total 1 st -5 th Cent for City Venues - $350m TDT 1-5 th Cent for City Venues Citrus Bowl - $167m MLS Stadium - $20m DPAC Stage I & II - $163m Total 1 st -5 th Cent for City Venues - $350m $330m Venues Status Amway Completed in 2010 Soccer Stadium being privately financed after state did not provide $30 million sports funding Citrus Bowl Renovations Completed in 2014 Dr. Phillips Center for the Performing Arts Stage One completed in 2014 Stage Two still raising funding with target ground breaking in Spring 2016 Venues Status July 2007 October 2013Difference County TDT$270 $0 City/CRA99 0 Private-Magic62 0 State30 0 Other-Interest19 0 Total$480 $0 Events Center Overall Funding Change (in Millions) Venues Status July Difference County TDT$140.0$167.0$27.0 City/CRA Private-FL Citrus Other Total$175.0$220.7$45.7 Citrus Bowl Overall Funding Change (in Millions) Venues Status July 2007 October 2013Difference County TDT$130$163$33 City/CRA188 0 Philanthropy Other26293 Total$425$514$89 Performing Arts Center Overall Funding Change (in Millions) Venues Status Funding Amount Percentage of Funding County TDT$ % City/CRA % Donors/Private % Other/Int/State82.07% Total$1,215100% Venues Overall Funding (in Millions) TDT Summary FY2015 TDT collections are above expectations Many successful TDT collection years are needed to fund venues interlocal obligations Higher TDT collections pay off venues obligations faster and save interest costs Tourist Development Tax Update September 22, 2015 Orange County