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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 12 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.