Title
Presentation on the Business & Industry Fund
Body
Issue/Request:
Presentation on the Business & Industry Fund
Key Issues:
The Business and Industry (B&I) Fund contains the expenditures for the Public Service Agreements (PSAs). The revenue source for the B&I Fund is the hotel/ motel tax. This presentation gives information on the actual revenue data for the hotel/ motel tax and presents an updated revenue forecast based on current trends. (Reference the presentation slides for specific information.)
Proposed City Council Motion:
Not applicable. This presentation is for informational purposes.
Background:
When the budget was approved by 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.
Impact/Analysis:
Based on the updated revenue forecast, there will not be enough funds available to provide an additional six months of expenditures for the PSAs.
Other Information/Unique Characteristics:
Also, included in the presentation materials is information about a suggested reserve balance amount for the B&I Fund. It is recommended that the B&I Fund follow the guidelines for the General Fund Reserve Balance (outlined in City Ordinance No. 7428) and maintain a fund balance amount equal to that of at least two average months of regular operating revenues or expenditures, whichever is greater based on the prior fiscal year, to address emergencies and provide for economic stability.
Presenter
Stephen Arbo, City Manager
Chris Clubine, Management Analyst
Recommendation
Recommendation: Not applicable. This presentation is for informational purposes.
Committee Recommendation
Committee Recommendation: [Enter Committee Recommendation text Here]