Page 215 - Colleyville FY21 Budget

Hotel Occupancy Tax Fund 5-Year Forecast

*Colleyville has been collecting this tax since FY17 and has amassed a substantial fund
balance. Staff plans to spend this down on non-recurring costs for FY 2021, and will likely
do the same in subsequent fiscal years.

Economic restrictions brought on by COVID-19 drastically affected revenues, as hotel
bookings throughout the spring and summer months waned. For FY 2021, staff
anticipates hotel tax revenue to improve substantially over FY 2020, although not reach
the heights they had been at previously. The remainder of the forecast conservatively
projects 1.5% to 2% increases annually. As stated previously, costs contained here
included personnel expenses, limited improvements to the Colleyville Center, special
event funding, and marketing materials. Netting out that planned draw down for non-
recurring improvements, the fund is operationally balanced with revenues being
sufficient to support the ongoing operational costs contained here.

The City plans to draw down the Hotel Tax Fund's balance by almost $90,000 in FY
2021. This is for non-recurring improvements to the Colleyville Center. Netting those
costs out, the fund is operationally balanced and will remain so through the five-year
forecast.

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