Page 269 - City of Westlake FY20 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 $835,420
• This represents a 2% decrease of $18,310 from prior year estimated revenues.
o Hotel Occupancy Tax is budgeted at $816,702; a decrease of $230.
o Investment earnings are budgeted to remain flat at $14,606.
o Miscellaneous income is budgeted at $4,112; an 81% decrease of $18,080
 This revenue type is comprised of the Westlake Historical Preservation Society and
encompasses several fund raising components; Membership sales decreased $500;
Decoration Day decreased $10,925 due to a reduction in the poppy sales fundraiser;
Car Show revenues decreased $5,960 due to sponsors, registrations and pine car derby
sales; printed materials sales decreased $150; misc sponsor revenues decreased $500

Operating Expenditures
• Total operating expenditures are budgeted to be $955,966
• This represents an 9% decrease of $91,256 from prior year estimated expenditures.
o Payroll transfers out to the General Fund are budgeted to decrease $46,092
 A percentage of salaries are paid from the Visitors Association Fund; Town Manager’s
office, Facilities, Parks and Recreation, Finance and Human Resources
 Several department positions were changed midway thru FY18/19 resulting in changes
to fund allocations for FY19/20.
o Rent and Utilities increased $2,117 based on the tiered leasing cost of the new municipal
building space in July 2017.

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