Okaloosa approves $2M in tourism tax-funding for Destin and Fort Walton Beach

In Brief:

  • 🏖️ Destin will receive over $1.4 million for beach park operations and debt repayment for previous public access projects.

  • Fort Walton Beach secured $650,000 for golf course renovations and athletic complex maintenance.

  • 🔄 Unspent TDT funds will roll over, and other cities are saving or using funds for future joint projects with the county.

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CRESTVIEW — The Okaloosa County Commission approved the 2026 municipal expenditure plans for the cities of Destin and Fort Walton Beach on Tuesday, allocating nearly $2 million in Tourist Development Tax (TDT) revenues for beach operations and sports tourism projects.

Tourism Director Jennifer Adams presented the proposal, highlighting the annual allocation of 12.5% of TDT funds to Okaloosa’s municipalities.

This year, only Destin and Fort Walton Beach submitted eligible proposals. Valparaiso submitted a request but was asked to revise and resubmit at a later date.

Meanwhile, other cities opted to bank their funds for future use.

“The city of Destin will be paying back the money that they borrowed from Tarpon (Beach State Park),” Adams said. “We’re in year four of year 10, and they will also be using the rest of their money for beach and boardwalk operations.”

Under the approved plan, Destin will receive $750,000 for its annual repayment to the county under an interlocal agreement for previously advanced funds used to expand public beach access.

An additional $665,000 will support maintenance and operations of popular beach parks and boardwalks, including June White Decker Park, Norriego Point, and the Captain Royal Melvin Heritage Park.

Destin’s detailed spending plan includes $445,000 for staff salaries and benefits, $90,000 for janitorial supplies, with additional funds allocated for utilities, pest control, and deck repairs.

City documents emphasized the importance of maintaining Destin’s reputation as a leading tourist destination in the Panhandle, noting these facilities are operated 12 to 16 hours a day, 365 days a year.

Fort Walton Beach, meanwhile, will receive $575,000 to renovate the aging greens on the Pines Course at the municipal golf club, as well as $75,000 to support maintenance at the Preston Hood Athletic Complex.

The golf course project involves stripping and fumigating all 18 holes before installing new turf. City officials highlighted the course’s role in drawing tourists year-round and noted that over 3,200 of 6,492 rounds played this year came from non-local zip codes.

The new greens are expected to reopen by August 2025 following a closure beginning in March.

The athletic complex hosts over 30 tournaments annually, drawing teams from across the country. Of 1,127 teams participating in 2023, roughly 80% came from outside Okaloosa County. The TDT-backed maintenance funds will help cover costs like trash cleanup, restroom upkeep, and field repairs during peak summer usage.

Commissioner Paul Mixon acknowledged the broader collaboration between cities and the county, noting that Shalimar, Cinco Bayou, and Mary Esther are using their allocations in joint projects.

“I’d like to remind you all that three municipalities… are using their dollars in conjunction with the county for tourist-related projects,” Mixon said.

The funds are reimbursed after the fact, meaning cities must front the costs before seeking repayment from TDT collections in the following fiscal year.

Applications were due by March 1 and reviewed by the Tourist Development Council before Commission approval.

Adams said unused allocations from other municipalities will roll over and remain available for future initiatives, and that efforts continue to streamline the process.

“We try to have them submit in March to keep in line with our budgeting, but those funds are there and we’re certainly able to evaluate,” Adams said.