1. City Council
February 5, 2013

2. Hotel Occupancy Tax
February 5, 2013

3. Hotel Occupancy Tax
Reasons for Discussion
• Flexibility and Accountability for City Council
• Unprecedented economic growth

4. Hotel Occupancy Tax
Flexibility
• Current ordinance allocates all revenue on a
percentage basis
• Proposed procedure would contract for specific dollar
amounts
Accountability
• Current ordinance does not specify accountability
mechanisms
• Proposed procedure would build accountability into
contracts

5. Hotel Occupancy Tax
Unprecedented Economic Growth
Revenue Trend Issues
• Significant upward trend
• Probably short-lived
• Treat allocation of excess revenue as one-time awards
• Utilize excess revenue for Council priorities

6. Hotel Occupancy Tax
• Unprecedented Economic Growth
Revenue Trend

7. Hotel Occupancy Tax
• Examine 2012-2013 budget
Revenue
• FY12 Actual Revenue $ 2,134,115
• Current Revenue Budget $ 1,575,000
• 1st Quarter Revenues for FY13 $ 653,441
• Possible Revenue based on
FY13 Year to date trend* $ 2,600,000

8. Hotel Occupancy Tax
• Examine existing 2012-2013 expense budget
Reminder of Commitments based on percentages
• Hard
CVB contract $693,250 47%
Civic Events 708,000 48%
SACAC 73,750 5%
Subtotal 1,475,000
Fort Concho 50,000
TX Bank Sports Complex 50,000
Grand total budget $1,575,000

9. Hotel Occupancy Tax
• Potential changes 2012-2013 expense budget
Proposed Commitments
CVB contract $795,000
Civic Events 708,000
SACAC/SAPAC 87,500
Subtotal 1,590,500
Fort Concho 50,000
TX Bank Sports Complex 50,000
Grand total budget 1,690,500
Potential Excess* $909,500

10. Hotel Occupancy Tax
Year End Fund Balance
• 9/30/12 Civic Events Fund Bal. $670,144
LESS 90 days Civic Events (503,477)
Subtotal Civic Events Surplus 166,667
PLUS CVB Return 300,000
Estimated Total Available for $466,667
One-Time Projects

11. Hotel Occupancy Tax
Examples Eligible for One-Time Allocation
• Coliseum roof
• Wayfinding
• Coliseum restrooms
• Convention Center marquee
• Coliseum HVAC utility management system
• Fort Concho Stables Air Conditioning
• Etc.

12. Hotel Occupancy Tax
Need Council Direction to:
• Update HOT ordinance to allow Council more flexibility
and accountability with annual and one-time
allocations
• Propose contracts with CVB & SACAC/SAPAC in
accordance with revised methodology
• Amend the budget ordinance updating HOT revenues
& expenditures
• Schedule a discussion covering legal restrictions and
determining Council’s priorities for one-time funding
consideration

13. Hotel Occupancy Tax
February 5, 2013