Page 49 - N. Richland Hills General Budget

BUDGET OVERVIEW

Promotional Fund

FY 19/20 Adopted FY 19/20 Revised FY 20/21 Adopted

Revenue $290,000 $260,077 $276,808
Expenditures $290,000 $260,077 $276,808
Balance $0 $0 $0

FY 2019/2020 Revised Budget

The Promotional fund is used to account for the collection and use of the City’s hotel/motel
occupancy tax. Occupancy tax revenues are used primarily to attract tourists and new
businesses to the City. Revenue reflects a decrease of ($88,746) or (30.6%) from the FY
2019/2020 Adopted Budget. This decrease is directly related to impacts from the COVID-19
pandemic on anticipated hotel occupancy tax receipts from the downturn in the hotel and
travel industry. Reserves are anticipated to be used to offset this loss. Expenditures were
reduced by ($29,923) or (10.3%) from the adopted budget due to operational cuts and the
removal of the planned contribution to reserves to offset a portion of the losses in revenue
anticipated this fiscal year.

FY 2020/2021 Adopted Budget

Promotional Fund revenue for FY 2020/2021 is projected to total $180,982 which is a
decrease of ($109,018) or (37.6%) from the FY 2019/2020 budget. This decrease is directly
related to anticipated lingering impacts on the hotel and the travel industry from the COVID-19
pandemic. Expenses are proposed at $276,808 which is a decrease of ($13,192) from the
adopted budget due to the funds anticipated inability to contribute to reserves in FY
2020/2021. The fund is anticipated to pull $95,826 from available reserves within the fund to
balance the fund.

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