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2010-06-15 HOT Committee Minutes 1 2 MINUTES 3 4 Hotel Occupancy Tax Committee Meeting 5 June 15, 2010 6 7 After determining that a quorum was present, the Hotel Occupancy Tax Committee (HOT) 8 convened into an Open Meeting on Tuesday, June 15, 2010, at 10:06 a.m. Posted to meet in the 9 Finance Conference room, but convened in the City Council Work Session Room, City of 10 Denton City Hall, 215 E. McKinney Street, Denton, Texas. 11 12 PRESENT: Council Members Pete Kamp, Chris Watts and Dalton Gregory 13 14 EX-OFFICIO MEMBERS: 15 Jon Fortune, Assistant City Manager 16 Bryan Langley, Director of Finance 17 Jerry Drake, Deputy City Attorney 18 Antonio Puente, Jr., Treasury Manager 19 Randee Klingele, Treasury Services Specialist 20 21 Meeting opened with Chair Pete Kamp considering the necessity of a closed meeting. Jerry 22 Drake advised proceeding into a closed meeting to discuss agenda item 3 as unnecessary. Pete 23 Kamp did chose to begin the meeting with agenda item 3. 24 25 AGENDA ITEM 3: RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF 26 DIRECTION REGARDING ALLOWABLE ADVERTISING EXPENDITURES. 27 28 Randee Klingele provided the historical synopsis of the administration of advertising expenses 29 paid from hotel occupancy tax funds. As stated in the agenda information sheet, the advertising 30 restrictions in place in Program Year 2003 were removed. From that point forward, advertising 31 ting tourism to the city. Thus, advertising 32 funds are to be spent on materials that will be distributed outside the Denton city limits. 33 34 The committee directed staff to memorialize the advertising expenditures by placing language in 35 the Program Year 2011 contracts and the Program Year 2012 Guidelines stating materials for 36 advertising must be placed outside the City of Denton. In addition, an email to all current 37 recipients should be sent to provide clarification regarding advertising restrictions. 38 39 AGENDA ITEM 1: CONSIDER APPROVAL OF HOTEL OCCUPANCY TAX 40 COMMITTEE MINUTES FROM APRIL 20, 2010. 41 42 Minutes were approved as written by Councilmember Dalton Gregory and seconded by 43 Councilmember Chris Watts. 44 45 AGENDA ITEM 2: RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF 46 DIRECTION REGARDING THE COMPLETION OF A HOTEL TAX RECEIPT AUDIT 47 48 49 three year hotel tax receipt audit. Chris Watts requested that a methodology be found for the 50 hotel tax audit to be expended from hotel tax revenues in future audits rather than being 51 . The committee directed staff to move forward in 52 contracting MuniServices for the audit of hotel tax receipts. 53 54 AGENDA ITEM 4: RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF 55 DIRECTION REGARDING HOTEL REVENUE AND EXPENDITURES FOR PROGRAM 56 YEAR 2010 57 58 Bryan Langley provided the committee with the new projection of current year hotel tax revenue. 59 Staff continues to estimate receipts to be down 2.2% with total revenue estimated at $1,212,240. th 60 Although this is a 4% increase in revenue projections from the April 20 meeting, staff 61 recommends not making any changes to the 18% reduction to expenditures in the current 62 program year. Chris Watts conveyed his concern regarding maintaining the 18% reductions with 63 the new projected revenue. The increased projection could provide approximately $70,000 in 64 additional revenue which could be reallocated amongst the twenty current recipients. Committee 65 and staff continued discussions by reviewing the necessity for a fund balance that could support 66 possible shortfalls in the future. In addition, the future of this fund could entail debt payments to 67 support a convention center. 68 69 The committee and staff decided to hold another HOT meeting on August 3, 2010. At this date, 70 staff will have two additional months of hotel receipts to review and provide another 71 recommendation on the current year. 72 73 AGENDA ITEM 5: RECEIVE A REPORT, HOLD A DISCUSSION AND GIVE STAFF 74 FUNDING RECOMMENDATIONS REGARDING THE PY2011 FUNDING LEVELS AND 75 BUDGET REQUESTS 76 77 Randee Klingele provided a short overview of the requested budgets, which exceed the projected 78 total revenue of $1,236,485. Dalton Gregory requested that the committee support the Texas 79 Filmmakers Corporation by approving some funding for Program Year 2011. The committee not 80 only agreed to fund the Texas Filmmakers Corporation but also the Music Theatre of Denton 81 with $5,000 each. 82 83 Since the current program year will not be finalized until August, the committee requested that 84 final funding decisions for the next program year (2011) be discussed further on August 3, 2010. 85 86 AGENDA ITEM 6: NEW BUSINESS 87 88 Dalton Gregory requested a summary of the in-kind or monetary assistance provided by the city 89 to various events. Bryan Langley advised that this information will be presented to the City 90 Council as a part of the upcoming Fiscal Year 2010/11 budgeting process. In addition, Bryan 91 informed the committee that an economic impact study will be performed regarding events in the 92 city. 93 94 Pete Kamp requested a future meeting to discuss program philosophy, event economic impact, 95 strategic planning and forecasting for the hotel occupancy tax fund. 96 97 Meeting adjourned 11:30.A.M.