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G-06-09-28-13A4 - 9/28/2006ORDINANCE NO. -IX0-Dq-a-134 AN ORDINANCE ADOPTING THE HOTEL OCCUPANCY TAX BUDGET OF THE CITY OF ROUND ROCK, TEXAS FOR FISCAL YEAR 2006-2007. WHEREAS, the City of Round Rock collects a seven (7) percent hotel occupancy tax on hotel rooms, and WHEREAS, V.T.C.A. , Tax Code Section 351.101(a) states,"Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry," and Section 351.101(b) states, "Revenue derived from the tax authorized by this chapter shall be expended in a manner directly enhancing and promoting tourism and the convention and hotel industry," and WHEREAS, the Tourism Commission for the City of Round Rock (the "Commission") has provided the City with a copy of its recommendations for funding for certain events, arts, and historic preservation, and WHEREAS, in developing the 2006-2007 Hotel Occupancy Tax Budget, the City Council has taken into consideration City -sponsored items which promote tourism, as well the Commission's recommendations, and WHEREAS, a proposed 2006-2007 budget for Hotel Occupancy Tax funds is attached as Exhibit "A" which provides for expenditure of the funds in a manner that complies with statutory requirements and Section 1.1809 of the City Code (1995 Edition), Now Therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: @PFDesktop\::ODMA/WORLDOX/O:/wdox/ORDINANC/060914A5.WPD/rmc That the attached 2006-2007 Hotel Occupancy Tax Budget is hereby approved and the disbursements shown thereon are hereby authorized. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. READ and APPROVED on first reading this the / VII day of , 2006. READ, APPROVED and ADOPTED on second reading this the co day of ba.) , 2006. C y of Round Rock, Texas CHRISTINE R. MARTINEZ, City Secre 2 City of Round Rock Hotel Occupancy Tax Fund # 710 Fund Balance Analysis Estimated Fund Balance 10/01/06 Less Operating Reserves (*1) Estimated Revenue (FY 2006-2007) Total Funds Available Requested Expenditures Estimated Unreserved Fund Balance 9/30/07 $ 2,266,968 $ 3,266,968 (1,000,000) 2,250,000 4,516,968 (2,250,000) * 1 - Operating Reserves are established in accordance with operating reserve policies. 1 EXHIBIT nAu City of Round Rock Hotel Occupancy Tax Fund #710 2006-2007 Proposed Budget Revenues Hotel -Motel Occupancy Tax Interest Income Miscellaneous Revenue Transfer from Convention Ctr. Rev. Fund (Net) Total Revenues Expenditures 1,905,051 $ 40,494 1,656 8,119 1,740,000 $ 20,000 2,200,000 50,000 1,955,320 1,760,000 2,250,000 Event & Tourism Funding Festivals & Events Advertising 5,182 2,500 15,500 Arts Support 19,000 19,000 22,000 Tourism Support 32,000 64,000 20,000 Museum Support 8,000 8,000 8,000 Contingency - 500 - Total Event & Tourism Funding 64,182 94,000 65,500 Convention & Visitors Bureau Personnel 256,872 274,774 272,191 Contractual Services 247,467 231,200 222,719 Materials & Supplies 17,439 16,840 18,590 Other Services & Charges 97,736 131,000 151,500 Capital Outlay 53,681 2,000 4,000 Total Convention & Visitors Bureau 673,195 655,814 669,000 Total Operating Expenditures 737,377 Capital Projects Transfer to Capital Projects Fund Total Transfer to Capital Projects Convention Center Property Insurance Contingency and Trustee Fees Transfer to Reserve Fund at Trustee Bank Transfer to Debt Svc. Fund at Trustee Bank Transfer Capital Repair at Trustee Bank Transfer to Toursim Development Fund Total Convention Center Other 238,500 238,500 31,696 3,996 494,990 187,300 717,982 749,814 734,500 200,000 490,500 200,000 490,500 40,000 48,186 5,000 542,000 75,000 100,000 40,000 45,000 5,000 760,000 75,000 100,000 810,186 1,025,000 Total Expenditures $ 1,693,859 $ 1,760,000 $ 2,250,000 Estimated Fund Balance 10/01/06 Operating Reserves* $3,266,968 (1,000,000) Estimated Unreserved Fund Balance 9/30/07 $2,266,968 'Operating Reserves are established in accordance with operating reserve policies. DATE: September 21, 2006 SUBJECT: City Council Meeting - September 28, 2006 ITEM: *13.A.4. Consider an ordinance adopting the 2006-2007 Hotel/Motel Occupancy Tax Budget. (Second Reading) Department: Staff Person: Justification: Finance Cindy Demers, Finance Director The Hotel/Motel Budget includes operating expenditures associated with the Convention & Visitors Bureau, special event funding and debt service for Dell Diamond/United Heritage Convention Center Complex. Funding: Cost: N/A Source of funds: N/A Outside Resources: N/A Background Information: The Hotel/Motel Fund is used to collect for the levy and use of the hotel -motel bed tax. Proceeds from this tax are to be used toward the promotion of tourism and the convention and hotel industry in the City. Public Comment: N/A