1. Tourist Development Tax/ Convention Center Budget Worksession July 11, 2011 Orange County

2. Background Revenue Outlook TDT Expenditures Convention Center Update Presentation Outline

3. Background Revenue Outlook TDT Expenditures Convention Center Update Presentation Outline

4. TDT Short-term lodging tax State TDT law has different uses for 1 st to 4 th cents, 5 th cent, and 6 th cent levies Background

5. Orange County levied TDT at 2% in 1979 Currently TDT is at 6% State Law governs uses Not allowed for: roads, schools, public safety, etc. Added tourism levy for convention centers, tourism promotion, sports, arts, and museum costs Background

6. Historical Revenue Growth: 9.5% Avg Annual TDT Growth (1979-2010) Background

7. Revenue Outlook TDT Expenditures Convention Center Update Outline

8. Collection Trends (in millions) Revenue Outlook 2011 YTD $15.9 mill over 2010 pace after 8 months

9. FY 11 TDT collection budget amended upward by $20 million to $158 million on January 25, 2011 –$132M 1 st -5 th Cent FY 12 TDT collection budget is $162 million –Possible upward amendment later –$135M 1 st -5 th Cent Revenue Outlook

10. Background Revenue Outlook TDT Expenditures Convention Center Update Presentation Outline

11. First 5 Percent TDT Expenditures

12. TDT expenditures for the first 4 percent are authorized by County ordinance in the TDT plan These expenditures are based on a prioritized flow of funds The fifth percent is for debt service payments First 5 Percent TDT Expenditures

13. Debt Service Debt Reserves OCCC Operations Transportation Visit Orlando Arts and Other Priority Funding Priority funding based on revenue availability and BCC approval TDT Expenditures (1 st -5 th ) TDT Reserves Venues Funds

14. Projected Expenses (in millions): 20112012 Debt Service$ 73.2$ 72.1 Convention Center Operations 15.0 15.0 Visit Orlando (O/OCCVB) Funding 21.2 22.0 Convention Center Capital 10.0 11.9 Arts 1.5 3.3 History Center 2.6 2.6 Other 1.0 1.0 Contract TDT Payment for Venues 0.0 3.0 Total $124.5 $130.9 TDT Expenditures (1 st -5 th )

15. Debt Service Debt Reserves OCCC Operations Transportation Visit Orlando Arts and Other Priority Funding Priority funding based on revenue availability and BCC approval TDT Expenditures (1 st -5 th ) TDT Reserves Venues Funds

16. Historical OCCC Operating Subsidy (millions) Fiscal Year Operating Revenue Operating Expense Operating Subsidy 09-1042.356.3 14.0 08-0943.158.3 15.2 07-0858.467.3 8.9 06-0750.560.9 10.4 TDT Expenditures (1 st -5 th )

17. OCCC Operating Subsidy Needed From TDT and RR&R Account FY 11-12$15 mill FY 10-11$15 mill TDT Expenditures (1 st -5 th ) *Budgeted operating subsidy available from TDT and TDT Reserves: $10 million, plus $3 mill transfers from CIP budget and $2 mill from RR&R acct

18. Debt Service Debt Reserves OCCC Operations Transportation Visit Orlando Arts and Other Priority Funding Priority funding based on revenue availability and BCC approval TDT Expenditures (1 st -5 th ) TDT Reserves Venues Funds

19. Visit Orlando (O/OCCVB) TDT Payments (millions) Fiscal Year 1st – 5th Pct CVB Payment 6th Pct CVB Payment Total CVB Payment 11-12*$21.6$10.7$32.3 10-11*21.210.3 31.5 09-1020.39.5 29.8 08-0919.99.0 28.9 07-0822.128.0 50.1 06-0721.627.1 48.7 *Projected TDT Expenditures (1 st -5 th ) Last 5-YR CVB payments (2007-11): $189 mill

20. Debt Service Debt Reserves OCCC Operations Transportation Visit Orlando Arts and Other Priority Funding Priority funding based on revenue availability and BCC approval TDT Expenditures (1 st -5 th ) TDT Reserves Venues Funds

21. Arts & Other Expenditures 2011: Tax Collection Expense$700,000 Central Florida Sports Commission$135,000 Florida Classic$137,500 Arts$1,500,000 Orange County Regional History Center$2,600,000 TDT Expenditures (1 st -5 th )

22. Effective in 2002, the BCC approved using 3% of the first 4 cents of TDT for arts and cultural activities to extent allowed by law Arts and cultural funding is a spending priority in the TDT plan Funding is contingent upon TDT collection levels Arts Funding

23. Arts Funding - History 2002$500,000Fixed Amount 2003$500,000Fixed Amount 2004$509,461Fixed Amt Plus Growth 2005$1,200,000Fixed Amount 2006$2,884,029Formula 2007$3,083,992Formula 2008$3,261,033Formula 2009$3,363,189Formula 2010$2,246,058Formula less cut amount 2011$1,500,000Fixed Amount Total$19,047,762 2012 funding formula basis: $3.3 million

24. Debt Service Debt Reserves OCCC Operations Transportation Visit Orlando Arts and Other Priority Funding Priority funding based on revenue availability and BCC approval TDT Expenditures (1 st -5 th ) TDT Reserves Venues Funds

25. $140 million of TDT reserves as of May 31, 2011 TDT Reserves $73M Reserve for Debt Service $56M Reserve for OCCC $11M Amount Above Target

26. Background Revenue Outlook TDT Expenditures Convention Center Update Outline

27. Organization Chart Proposed FY 2011-12 Budget Accomplishments Budget Challenges Summary Presentation Outline

28. Organization Chart Proposed FY 2011-12 Budget Accomplishments Budget Challenges Summary Presentation Outline

29. Executive Director – Tom Ackert General Manager – Jessie Allen Deputy General Manager – Kathie Canning Executive Director – Tom Ackert General Manager – Jessie Allen Deputy General Manager – Kathie Canning Sales, Marketing and Event Management Yulita Osuba Sales, Marketing and Event Management Yulita Osuba Business Jan Addison Business Jan Addison Building Security Greg Forehand Building Security Greg Forehand Information Services Mike Walker Information Services Mike Walker Facility Operations Fred Baker Facility Operations Fred Baker Event Operations Michaal Rossi Event Operations Michaal Rossi Human Resources Betty Meeks Human Resources Betty Meeks Guest & Community Relations Lex Veech Guest & Community Relations Lex Veech Organization Chart

30. Proposed FY 2011-12 Budget Accomplishments Budget Challenges Summary Presentation Outline

31. Proposed FY 2011-12 Budget Current FY 11$ Change Proposed FY 12 Personal Services$26.9M($0.1M)$26.8M Operating Budget* 34.3M 2.9M 37.2M Total for Operation$61.2M$2.8M$64.0M Budget Change4.5% Staffing430(1)429 *Includes non operating expenses $0.8M FY 10-11 and $1.2M FY 11-12

32. Current FY 11$ Change Proposed FY 12 Capital Improvement Projects $15.4M($3.5M)$11.9M Budget Change(22.5%) Proposed FY 2011-12 Budget

33. Organization Chart Proposed FY 2011-12 Budget Accomplishments Budget Challenges Summary Presentation Outline

34. 200 Total Events 91 Convention/Tradeshows 1.27 Million Total Attendees 1.03 Million Convention/Tradeshow Delegates $1.96 Billion Economic Impact Accomplishments FY 2010-11 Projected Business Activity

35. Accomplishments FY 2011-12 Event Activity 212 Projected Total Events 102 Convention/Tradeshows 1.21 Million Total Attendees 0.93 Million Convention/Tradeshow Delegates $1.76 Billion Economic Impact NBA All-Star Games

36. 753 Conventions and Tradeshows 10.1 Million Convention/Tradeshow Delegates $19.2 Billion Economic Impact Accomplishments Future Business Activity

37. ISO 14001 Recertified LEED Registered Recycling Renewable Energy Community Donations Accomplishments Sustainability

38. Prime Site Award 2011 ConventionSouth Magazine 2010 Annual Reader’s Choice Award MeetingsNet “Inner Circle Award” FLPPR “Pollution Prevention Award” Accomplishments Awards

39. Organization Chart Proposed FY 2011-12 Accomplishments Budget Challenges Summary Presentation Outline

40. Budget Challenges Revenue Challenges Economy Competition/Destination Maintaining Facility Transportation

41. Organization Chart Proposed FY 2011-12 Budget Accomplishments Budget Challenges Summary Presentation Outline

42. Although improved, economic issues continue to affect the convention and trade show industry. We continue to face challenges from competitors globally, nationally, and regionally. The convention center requires continued resources to maintain/upgrade the facility to remain competitive. Summary

43. The mission of the Orange County Convention Center is economic development. By hosting regional, national and international conventions, meetings, and trade shows, the Center infuses the local economy with new money and expanding business opportunities. The mission of our staff is to provide outstanding service to the clients and users of the Center, to stimulate their desire to return and to enhance the community’s reputation for excellence. Convention Center Mission Statement

44. Orange County Tourist Development Tax/ Convention Center Budget Worksession July 11, 2011

46. TDT Revenues vs. Base Amount (in millions) Community Venues

47. TDT Revenues vs. Base Amount (in millions) Community Venues Actual Projected

48. Events Center Debt Events Center Contract 6th Cent Revenues & Debt Service: Contract 6th Cent Payment Minimum Net Debt ServiceExcess Revenue/Shortfall 2009$14,672,396$10,734,784$3,937,612 2010$15,140,101$17,669,419$(2,529,318) 2011$17,819,419 2012 $18,284,419 2013 $18,596,419 2014 $18,870,419