Page 38 - Southlake FY20 Budget

Transmittal Letter

Special Revenue Funds
Hotel Occupancy Tax. The Hotel Occupancy Expenditure Highlights
Tax is authorized under the Texas Tax Code,
Chapter 351. The City of Southlake adopted Fund Item Expenditure
Ordinance No. 769 in February 2000, levying
a 7% tax on room receipts. The tax on rooms Personnel - pay 2.5% base pay
at the Hilton Hotel in Town Square and the Commercial adjustment adjustment,
Vehicle
Cambria Hotel are providing the revenues to merit
the City in this category. The first expenditures Enforcement Personnel - health 10.38% rate
from this fund were made in FY 2008. Fund insurance increase

Use of these funds is restricted. Planned
expenses must be authorized uses under the Personnel - pay 2.5% base pay
Texas Tax Code, Chapter 351. Court Security adjustment adjustment,
merit
For FY 2020, revenues are estimated at
$1,405,283. The operating budget currently Court Courtroom A/V
includes funding for the Tourism Marketing $150,000
Manager, and a portion of the cost of the Technology replacement
Economic Development & Tourism Director, 2.5% base pay
Deputy Director, Marketing and Graphic Design Personnel - pay adjustment,
Coordinator, and administrative support staff adjustment merit
costs directly attributable to tourism.
Personnel - health 10.38% rate
Total planned expenditures for this fund for FY Hotel insurance increase
2020 are $828,374. Occupancy Tax Wayfinding sign
Fund maintenance / $50,000
The indirect transfer to the General Fund is replacement
projected at $56,211. The budget also proposes
a transfer of $210,792 to the Public Art Fund. Transfer to CIP $200,000
Finally, we are proposing a transfer of $200,000
to the Capital Improvements Program for pre- Transfer to Public
development funds for Visitor Information and Art Fund $210,792
Amenity Center implementation. Note that
the Southlake 2035 Economic Development
Master Plan includes recommended actions for developing and operating this type of center.

The ending fund balance is projected at $1,724,155. This balance will carry forward for future initiatives to
promote tourism in the City.

Hotel Occupancy Tax funds support the strategic focus area of Performance
Management and Service Delivery, and the strategic corporate objective of “Enhance
resident quality of life & business vitality through tourism.”

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