We made a record request of the Pensacola Bay Area Chamber of Commerce to find out how it spends the money it receives from the County. We received their Form 990 Tax Return for the fiscal year that ended 9/30/08 and the expense reports for the Visitor Information Center, Military Development and Economic Development. We received the information late yesterday.
The total gross receipts for the Chamber were $4,337,642. Of that, $2,342,136 came from the County–54 percent – which breaks down to Tourism/Bed taxes $1,790,136 (41%), $150,000 for PEDC (3%) and $402,000 (9%) for Economic Development/Foundations for the Future.
TOURISM – The County contracts with the Chamber to run the Visitor Information Center and Convention Bureau – which has been recognized as the best in 2008 by Southeast Tourism Society. Its budget is approved by a board appointed by the BOCC.
Bed Tax contribution:
Tourism 3rd Cent: $1,190,136.00
Tourism 4th Cent: $600,000.00
Total: $1,790,136.00
Expenditures:
VIC: $1,448,488.00
Convention Sales: $248,559.00
Public Relations: $98,416.00
TACC: $29,437.00
Celebrity Chef Program: $2,892.00
Film Commission : $23,004.00
State Coop Adv: $10,000.00
Consignment Sales: $3,109.00
Southcoast USA Membership: $5,000.00
Total operating expenses$1,868,905.00
Overhead Allocation: $102,413.00
Total expenses: $1,971,318
Budget shortfall covered by other income: ($181,182)
PEDC and Economic Development contributions by the General funds of the City and County partially fund the Economic Development and Military Development efforts the Chamber is contracted to do for the County and City. PEDC is chaired by Comm. Gene Valentino and gets $300K of the funds ($150K each from City and County).
Public Sector (from city & county budgets):
County: $150,000+$402,000=$552,000
City: $150,000+$90,000=$240,000
ESP/Airport=$75,000
Total city/county: $867,000 PEDC: $300,000, ED:$567,000
Expenditures:
Military Development: $257,909
Economic Development: $618,160
Performance Enhancement Plan: $11,673
Dues & Subscriptions: $2,755
Inner City Visit: $164,784
Total operating expenses: $1,055,281–PEDC portion of expenses: $272,640, ED portion:$782,641
Overhead allocation: $137,626
PEDC surplus returned to PEDC fund: $30,786
Total expenses:$1,223,693– PEDC: $303,426, ED: $920,267
ED Shortfall covered by private sector contributions and other revenue sources: ($356,693).
Note: County covers 50 percent of the PEDC and 44 percent of the ED. City General Fund contributes 50 percent of PEDC and only 10 percent of the ED efforts. ESP/Airport contribute 6 percent of ED efforts.
The Bed Tax dollars distort the picture of the County’s contributions to the chamber. Those dollars are for purposes as defined by state statutes and are approved by a BOCC board. So let’s not show the entire $1.8 million and only show the VIC/Tourism overhead allocation in the gross receipts:
Gross Receipts
VIC/CVB overhead allocation: $102,413 (4.0%)
City PEDC/ED General Fund: $240,000 (9.0%)
County General Fund: $552,000 (20.8%)
Airport/ESP: $75,000 (2.8%)
Private investors in ED: $341,408 (12.9%)
Chamber Memberships: $552,929 (20.9%)
State Defense Grant: $72,518 (2.7%)
Other: $713,651 (26.9%)
Total: $2,649,919
BTW: I have asked for a ruling on whether this breaks the ED Free Week pledge. Since it is not about either of the two ED plans and more on the Chamber finances, the judges say we can post this.