TDC approves FY2027 budget with $9 million advertising baseline after debate over $11 million

The Collier County Tourist Development Council on Tuesday approved its FY2027 tourism development tax-funded budget and set a $9,000,000 advertising baseline after members debated whether to restore the recent $11,000,000 spend level.

The board’s approval covers the period Oct. 1, 2026, through Sept. 30, 2027, and follows staff projections of roughly $41.8 million in TDT revenue, a 5% increase over the current budget. Staff described fund-level allocations including transfers, contingencies and reserves, and identified a $3.3 million expanded request tied to advertising baseline adjustments and other initiatives.

“Based on CPI and increased media cost, restoring the same purchasing power today will require an estimated budget of approximately $7.7 to $7.8 million,” the presenting staff member said while outlining the proposed baseline and the $3.3 million expanded request.

Board members split over whether to adopt the $9 million figure recommended by staff or to request the $11 million total that had been used in the past two years with supplemental funds. Several members argued the council should ask for the higher amount to avoid midyear shortfalls and to preserve momentum on contracts; others said adopting $9 million now while signaling a likely supplemental $2 million request from reserves was a pragmatic approach.

John Mullins, director of communications, government and public affairs, briefed the council on reserves and process, saying the county typically carries about $19 million to $20 million in reserves and that a formal recommendation could be brought forward to access an additional $2 million if the board desires.

Rudy Webb of Paradise Advertising, the CVB’s contracted agency, told the council the agency would work with whatever appropriation the board approved and that prior supplemental funding had demonstrable impact on market share: “We will utilize the funds that are appropriated as to the best of our ability, whether that's 6, whether that's 11, whether that's 9.”

A motion to approve the FY2027 budget as presented — which included the $9,000,000 marketing baseline — passed by voice/hand count, recorded in the meeting as 5 in favor and 4 opposed. The council also made a formal finding that the budgets “promote tourism,” a procedural requirement for TDT-funded actions.

Staff said that if the board later approves a privatization transition to a nonprofit destination marketing organization, a budget amendment would be expected to cover transition costs such as IT, HR and procurement changes. John Mullins said those transition costs are still being worked out and would be addressed if and when the board advances the nonprofit option.

The council’s approval authorizes the staff to proceed under the adopted FY2027 figures; the Board of County Commissioners will review budget workshop items during a June session and could modify allocations in the county-level process.