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Broward’s tourist development tax budget keeps convention center expansion and arena improvements but flags hotel and revenue risks
Summary
County and Visit Lauderdale presented a FY26 tourist development tax program that preserves convention center operations, planned arena capital and operating allocations, and beach renourishment funding; staff flagged softening hotel occupancy and the recent loss of state commercial‑lease tax as pressure points.
Broward County staff and Visit Lauderdale officials presented the fiscal‑year 2026 tourist development tax (TDT) program Wednesday, showing the county will continue to support convention‑center operations, a planned headquarters hotel, and arena operating and capital commitments while noting a modest downturn in occupancy and pricing that softens near‑term TDT growth.
Visit Lauderdale CEO Stacy Ritter said occupancy, average daily rate and RevPAR have softened in 2025 relative to the recent high years; staff forecast TDT receipts for FY26 at about $123 million. The county’s recommended FY26 tourist program totals about $269.6 million when recurring and one‑time revenues are included, with recurring allocations supporting Visit Lauderdale marketing and operations, cultural grants, convention‑center operating support and debt service on prior expansion bonds.
Major FY26 components: - Visit Lauderdale marketing: recommended $28.2 million in FY26 (including $4.9 million one‑time to support campaigns); Ritter emphasized efforts to hold market share in key feeder markets. - Convention Center: East expansion expected to be substantially complete in 2025; debt service on prior east/west expansion bonds (about $29.1 million annually) is budgeted. - Arena: the FY26 program assumes $15 million a year for arena operating support and $10 million a year for capital improvements tied to the arena agreement approved earlier in the year; staff also budgeted use of a line of credit associated with the arena’s financing mechanism. - Beaches and reefs: recurring and one‑time funding for beach renourishment, dune restoration and Port Everglades inlet management; FY26 includes transfers, reimbursements and $7.4 million earmarked for beach capital plus other fund balance for large projects.
Staff told commissioners the county is budgeting conservatively for interest earnings and using previously accumulated fund balance and reserves to time large nourishment and transit projects. Commissioners pressed on whether high interest‑earnings projections suggested funds were being held rather than spent; staff replied that project scheduling and grant‑matching timing explain temporary accumulation and said interest earnings will drop as heavy construction spending begins.
What matters: The county’s TDT program keeps high‑profile capital projects on the books — convention expansion, arena improvements, Primo transit projects referenced elsewhere — while acknowledging near‑term softness in hotel receipts and the fall‑out from the state tax‑base change. Commissioners asked for regular updates on occupancy and the phasing of beach and arena capital outlays.
Ending: Staff said they will return with more granular timing on one‑time funds, matching‑fund expectations for major projects and updates on the convention center and hotel delivery dates.
