Page 237 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 6 Special Revenue Funds
Visitors Association Fund

The Visitors Association Fund was established in late FY 1999-2000 and collects a Hotel Occupancy Tax
from the Marriott Solana, Deloitte, and any future Westlake hotels. A 7% tax is levied on the cost of
nightly room rentals, the maximum allowable under State law.

Funds generated by the occupancy tax are generally restricted to uses that directly promote tourism
and the convention and hotel industry. However, Westlake has broader statutory authority under State
law than most cities, and may spend hotel/ motel occupancy tax funds for any municipal purpose, and
so the Town has used these funds to cover various operational costs and capital projects.

Since FY 2004/ 05, the Town has used Visitors Association Fund revenues to sponsor a shuttle service and
a “Group Business Incentive Program” in partnership with the Marriott Solana that have drawn
additional visitors to Westlake. This fund also accounts for activities related to the Westlake Historical
Board, Public Art Committee, and Westlake’ s annual Arbor Day celebration.

In prior years, the Visitors Association Fund was used ( via transfer out) to make the debt service
payment for the Westlake Academy Arts and Sciences building; however, as of FY17/ 18 the series 2013
refunding debt payments ( originally series 2008) for has been moved to Debt Service Fund 301 to be
covered by property tax revenues as these bonds are tax supported.
Revenues
Total revenues are budgeted to be $843,895
This represents a 0.5% decrease of $4,550 from prior year estimated revenues.
o Hotel Occupancy Tax revenues are projected to remain flat at $816,702.
o Miscellaneous income is projected to decrease $.

Operating Expenditures
Total operating expenditures are budgeted to be $977,059
This represents an 10% increase of $89,059 from prior year estimated expenditures.
o Payroll transfers out to the General Fund are budgeted to increase $ 36,657 to cover two
full time salaries in the Communications department being paid from the Visitors
Association Fund; also, a percentage of Administrative, Facilities, Parks, Finance and
Human Resources are paid from the Visitors Association Fund.
o Rent and Utilities are budgeted to increase $ 20,045 based on the tiered leasing cost of
the new municipal building space in July 2017.
o Service expenditures increased $ 32,357 as a result of an increase for an enhanced
municipal app, and the creation of a new municipal style guide to aid all staff in
properly implementing our new Town of Westlake branding initiative

Non-Operating Expenditures
There are no budgeted non-operating expenditures for this fiscal year.
This represents a 100% decrease of $211,645 from prior year estimated transfers out.
o Transfers out to the Debt Service Fund have been removed from the Visitors Association
Fund and moved to the property tax supported Debt Service Fund 301. These funds
were originally used for debt service payments on Series 2013 General Obligation
Refunding Bonds related to the construction of the Westlake Academy Arts and
Sciences Center.
o Transfers Out to General Fund for the Communication’ s department operating
expenditures have been removed from the Visitors Association Fund; these expenditures
will now be absorbed by the General Fund.

Fund Balance
Excess revenues over(under) expenditures are budgeted to be $(139,083).
The beginning fund balance is projected to $753,694
The ending fund balance is projected to be $614,610.

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