2. Hotel Occupancy Tax
Adopted HOT ordinance to allow Council more
flexibility and accountability with annual allocations
Recent contracts with CVB & SACAC
Held stakeholder meeting
• “Concept” discussion with Council
• Schedule a discussion covering legal restrictions and
determining Council’s priorities for one-time funding
consideration
• Amend the budget ordinance updating HOT revenues
& expenditures
3. Hotel Occupancy Tax
• One-seventh of tax proceeds must be spent on
advertising and promotion
• COSA currently contributes $795,000 to CVB
• Not more than 15% may be used for promotion of the
arts
• COSA currently contributes 5% of total revenues for
this purpose
4. Hotel Occupancy Tax
• For a municipality the size of San Angelo, remaining
revenue may be allocated as the municipality dictates
• COSA will contribute $708,000 Civic Events for FY
2013 (based on annual budget)
• Remainder of surplus revenue is allocated at the
direction of Council
5. Hotel Occupancy Tax
Allowable uses of Hotel Occupancy Tax revenues:
• Construction, improvement, and maintenance of
convention center facilities or visitor information
centers
• Furnishing of facilities, personnel, and materials for the
registration of convention delegates or registrants
• Advertising promotional programs to attract tourists
and conventions to the municipality or its vicinity
• Promotion of the arts so long as they directly promote
tourism and the hotel industry
(continued on next slide)
6. Hotel Occupancy Tax
Allowable uses of Hotel Occupancy Tax revenues
(continued):
• Historical restoration and preservation projects or
advertisement of such so long as they directly promote
tourism and the hotel industry
• Expenses directly related to a sporting event that
attracts tourists and substantially increases economic
activity at hotels and motels (correlation must be
documented and proven)
(continued on next slide)
7. Hotel Occupancy Tax
Allowable uses of Hotel Occupancy Tax revenues
(continued):
• Promotion of tourism by enhancing and upgrading
existing sports facilities or fields, if the municipality
owns the facilities or fields
• Funding transportation systems for tourists
• Signage directing tourists to sights and attractions that
are visited frequently by hotel guests in the
municipality
8. Hotel Occupancy Tax
Other Important Information:
• Hotels are permitted to retain 1% of Hotel Occupancy
Tax
• Incentive for keeping stays at less that 30 days
• Forfeited if submission of Hotel Occupancy tax is late
(continued on next slide)
9. Hotel Occupancy Tax
Other Important Information (continued):
• Thirty day exemption rule:
• Guest must notify hotel in writing upon arrival for
exemption to be granted. If hotel is notified upon
departure, the guest is only exempt after payment of
first thirty days’ tax.
• Hotels have incentive of 1% retainage (encourage
shorter stays)
10. Hotel Occupancy Tax
• Examine 2012-2013 budget
Revenue
Current Year Projection
• FY12 Actual Revenue $2,237,409
• Current Revenue Budget $1,575,000
• Year to date Revenues for FY13 $2,261,630
• Possible Revenue based on
FY13 Year to date trend* $ 2,600,000
11. Hotel Occupancy Tax
9/30/12 Year End Fund Balance
• 9/30/12 Civic Events Fund Bal. $669,720
LESS 90 days Reserve (505,832)
Subtotal Civic Events Surplus 163,888
PLUS CVB Return 300,000
Estimated Total Available for $463,888
One-Time Projects
12. Hotel Occupancy Tax
Eligible projects include
• Fort Concho Stables Air Conditioning $100,000
• Convention Center marquee $15,000*
• River Fest $30,000
• Sewer line at Convention Center $50,000
• Beams at Visitors Center $30,000**
• Coliseum roof consultant $40,000
(continued next slide)
13. Hotel Occupancy Tax
Eligible projects include (continued)
• Coliseum roof $460,000
• Wayfinding Phase 1 $300,000*
• Wayfinding River Corridor $150,000
• Forklift $32,000**
• Sports Complex irrigation and repairs $175,000
Editor's Notes
**Just a start
**Just a start
**Just a start
And fields must have been used a combined total of more than 10 times for district, state , regional or national sports tournaments in the preceding calendar year.
**Just a start
With that, would Council like to move on to some numbers and examples of uses that were suggested by our stakeholders (CVB and Civic Events)?
*estimate – actual may exceed this amount
*Partial – remainder to be paid from Capital Projects**Partial – some matching funds to be provided by SA Area FoundationCouncultant may be required if roof is found to have structural issues
*Just a start**Needed by civic events to allow for bigger events and productions