Title
Presentation on the Business & Industry Fund
Body
Issue/Request:
Presentation on the Business & Industry Fund
Key Issues:
The Business & Industry (B&I) Fund contains the expenditures for the Public Service Agreements (PSA). The revenue source for the B&I Fund is the Hotel/ Motel Tax. The purpose of this presentation is to provide information on the actual revenue data for the hotel/ motel tax and present an updated revenue forecast based on current trends. In addition, the presentation will discuss a model for distributing additional funds to the PSA organizations in the second half of the current fiscal year (January 1, 2021 to June 30, 2021).
Proposed City Council Motion:
The presentation is for informational purposes.
Background:
When the FY21 Budget was approved by the City Council, the decision was made to budget the hotel/ motel tax revenues for the full year and provide six months (half of the normal expenditure amount) of funding to the PSA organizations.
A presentation on the B&I Fund was given to the Finance and Budget Committee on Monday, November 9, 2020. Direction was given by the Finance and Budget Committee for City staff to maintain an end of the year fund balance for the B&I Fund somewhere in the amount between $42,740 and $50,000. Also, staff were directed to come up with a recommendation for the City Council to consider for distributing the excess funds over the recommended year-end fund balance to the PSA organizations.
Steve Arbo, City Manager, met with representatives from each of the PSA organizations on Tuesday, November 17, 2020 to discuss a potential model for distributing the excess funds over the fund balance to the PSA organizations. As a result of feedback received from the PSA organizations, it is recommended that the funds be distributed based upon the FY20 PSA funding proportions (reference slide 10 of the attached presentation for specifics).
Impact/Analysis:
After a review and analysis of the Hot...
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