2013-04-09 HOT Committee Minutes
1
2 MINUTES
3
4 Hotel Occupancy Tax Committee Meeting
5 April 9, 2013
6
7 After determining that a quorum was present, the Hotel Occupancy Tax Committee (HOT)
8 convened into an Open Meeting on Tuesday, April 9, 2013 at 11:06 a.m. in the Utility
9 Administration Conference Room, City of Denton City Hall, 215 E. McKinney Street, Denton,
10 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, Assistant City Manager
17 Jerry Drake, Deputy City Attorney
18 Chuck Springer, Director of Finance
19 Antonio Puente, Jr., Assistant Director of Finance
20 Randee Klingele, Treasury Services Specialist
21
22 AGENDA ITEM 1: CONSIDER APPROVAL OF HOTEL OCCUPANCY TAX MINUTES
23 FROM JULY 10, 2012.
24
25 Minutes were approved as written by Councilmember Dalton Gregory and seconded by
26 Councilmember Chris Watts. Motion passed unanimously.
27
28 AGENDA ITEM 2: RECEIVE A REPORT, HOLD A DISCUSSION AND PROVIDE
29 DIRECTION REGARDING THE HOTEL OCCUPANCY TAX PROGRAM YEAR 2014 FOR
30 FY 2013/14.
31
32 Chuck Springer reviewed the annual process to the committee and advised staff did not have any
33 changes to the program. The guidelines and application are recommended to remain the same.
34 Councilmember Gregory motioned to accept the program guidelines and application without
35 changes and seconded by Chris Watts. Motion passed unanimously.
36
37 Committee and staff agreed on the tentative date of June 18, 2013 for the next meeting date.
38
39 Councilmember Chris Watts opened a discussion regarding additional funding needs for the
40 Public Art Committee from the tourist and convention fund. Staff reminded the committee of the
41 art restrictions in the statute which only allows 15% of revenue to be allocated to the arts
42 annually. The Committee will discuss this possibility during its budget planning meeting in June.
43
44 AGENDA ITEM 3: RECEIVE A REPORT AND HOLD A DISCUSSION REGARDING
45 REVENUE AND EXPENDITURE PROJECTIONS IN THE TOURIST AND CONVENTION
46 FUND.
47
48 Bryan Langley reviewed the tourist and convention fund forecast with the committee. The
49 forecast includes no increases for most program participants other than public art and the
50 Convention and Visitors Bureau. The forecast includes $100,000 each year for convention center
51 related costs and projected revenue increases of 3% year over year. For future years staff
52 estimates gradual increases for the Convention and Visitors Bureau. A onetime amount of
53 $350,000 has also been earmarked in FY 2013/14 for convention center marketing.
54
55 The forecast intentionally builds a fund balance to provide for a convention center asset
56 replacement reserve. Bryan Langley clarified that this reserve would serve two purposes: 1)
57 future facility needs such as HVAC units or flooring replacement and 2) a contingency for the
58 possible need in paying the debt service of the convention center. Gregory Dalton suggested the
59 reserve fund should be labeled so that both purposes are easily illustrated.
60
61 AGENDA ITEM 4: NEW BUSINESS
62
63 Pete Kamp requested an analysis of the 15% art category expenditures in our current year
64 budgets for the June 18, 2013 meeting.
65
66 Meeting adjourned 11:45 A.M.