2010-04-20 HOT Committee Minutes
1
2 MINUTES
3
4 Hotel Occupancy Tax Committee Meeting
5 April 20, 2010
6
7 After determining that a quorum was present, the Hotel Occupancy Tax Committee (HOT)
8 convened into an Open Meeting on Tuesday, April 20, 2010, at 11:04 a.m. in the Finance
9 Conference Room, City of Denton City Hall, 215 E. McKinney Street, Denton, Texas.
10
11 PRESENT: Council Members Pete Kamp, Chris Watts and Dalton Gregory
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13 EX-OFFICIO MEMBERS:
14 Jon Fortune, Assistant City Manager
15 Bryan Langley, Director of Finance
16 Jerry Drake, Deputy City Attorney
17 Antonio Puente, Jr., Treasury Manager
18 Randee Klingele, Treasury Services Specialist
19
20 AGENDA ITEM 1: CONSIDER APPROVAL OF HOTEL OCCUPANCY TAX
21 COMMITTEE MINUTES FROM JUNE 24, 2009
22
23 Minutes were approved as written by Councilmember Chris Watts and seconded by Dalton
24 Gregory.
25
26 AGENDA ITEM 2: RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF
27 DIRECTION REGARDING HOTEL REVENUE AND EXPENDITURES FOR PROGRAM
28 YEAR 2010
29
30 Bryan Langley provided an overview of the current status of the hotel revenue receipts. The
31 forecast for the tourism and convention fund in FY 09/10 reveals a reduction in projected
32 receipts thus the need for expenditure reductions. Staff recommended a 15.8% reduction, but the
33 committee recommended be reduced by 18% to provide for a margin of
34 error in the projections. Once more data becomes available, the reduction percentages will be
35 .
36
37 Bryan Langley advised the committee of the need to audit the hotel/motel tax receipts to ensure
38 the City is receiving the appropriate amount of revenue from each property. Staff will be
39 reviewing auditing agencies while Jerry Drake reviews the state statute for his legal opinion
40 regarding what fund can be used to pay for an audit of the properties.
41
42 Councilmember Chris Watts motioned to accept the 18% across the board reductions, with
43 another review of the revenue during the next committee meeting planned for June 15, 2010.
44 Councilmember Dalton Gregory seconded.
45
46 In reviewing the fund balance drawdown, the committee decided to set a mandatory fund balance
47 at 15% of budgeted expenditures for future years.
48
49 AGENDA ITEM 3: RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF
50 DIRECTION REGARDING THE HOTEL OCCUPANCY TAX PROGRAM YEAR 2011 FOR
51 FY 10/11.
52
53
54 committee recommended a few language changes to clarify eligibility, possible reductions and
55 exhibits.
56
57 Councilmember Dalton Gregory motioned to accept the program guidelines and application with
58 added changes. Councilmember Chris Watts seconded.
59
60 AGENDA ITEM 4: NEW BUSINESS
61 None
62
63 Meeting adjourned 12:02 P.M.