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HomeMy WebLinkAboutMINUTES - 05011984 - 2.3 • a .3 TO: BOARD OF SARVISORS FROM: C. E. Dixon, Interim Contra County Administrator Costa DATE: April 30, 1984 County SUBJECT: Funding for Concord Convention and Visitors Bureau SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION 1. Release the remaining balance of funds ($14,529) budgeted for support of the Concord Convention and Visitors Bureau for the 1983-1984 fiscal year. 2. Refer to the Finance Committee for review and recommendation the issues of additional funding for the Bureau for the 1983-1984 fiscal year and the requested funding for the 1984-1985 fiscal year. BACKGROUND Based on a request received from the City of Concord in March, 1983, your Board included $33, 704 in the 1983-1984 County Final Budget as the County 's contribution to the original 1983-1984 budget of $120, 802 for the Concord Convention and Visitors Bureau. Subsequently, the county was notified by the City of Concord that inasmuch as the Bureau was taking steps to become an independent agency by January 1, 1984, the City was proposing only a six month contract for the period July 1, 1983 through December 31, 1983. The Bureau' s budget for that six month period was $88, 959 . The county's share was $19, 175. Your Board approved such a contract on September 27, 1983 . Approval of the aforesaid contract leaves a balance of $14,529 remaining from the original appropriation of $33, 704 . The budget for the Concord Convention and Visitors Bureau for the period January 1, 1984 through June 30, 1984 is $111, 103 with a requested county share of $26 ,922 . This request exceeds the available budget balance of $14,529 by $12, 393 . On December 13, 1983 your Board recommended that the county contribute the balance of $1.4, 529 to the Bureau for the period January 1, 1984 through June 30, 1984 with the understanding that additional funds up to the amount of $12, 393 would be provided if such funds were realized through increased transient occupancy tax collections for the 1983-1984 fiscal year over the 1982-1983 fiscal year. In addition, your Board provided that release of the county funds is contingent on receipt from the Bureau of specific goals and objectives related to increased use and occupancy of facilities and evdluation criteria to be used to determine the Bureau's effectiveness in meeting its goals and objectives. CONTINUED ON ATTACHMENT: Xx YES SIGNATURE: XX RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT F BOARD COMMITTEE XX APPROVE OTHER SIG NATURES)C.� �-- ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER The Chairman is also AUTHORIZED to EXECUTE contract releasing the $14,529. VOTE OF SUPERVISORS 00 230 UNANIMOUS(AB ENT ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: ",-", NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED May 1; 1984 Auditor-Controller J.R. OLSSON, COUNTY CLERK City of Concord AND EX OFFICIO CLERK OF THE BOARD C Concord Convention and Visitors Bureau Finance Committee f M9es/�-as BY DEPUTY 2. Set forth below is a tabulation of the county's transient occupancy tax receipts indicating, by quarter, the total amount received and the amount received from the Sheraton Inn: 1980-1981 Total Sheraton Inn lst Quarter $21, 906 . 48 $20, 696 .68 2nd Quarter 23, 298 23 22,093. 84 3rd Quarter 35, 492. 52 34, 237.69 4th Quarter 41,566. 56 39 , 785 . 81 $122, 263. 79 $116 , 814 . 02 1981-1982 lst Quarter $48, 534. 13 $43, 048:35: 2nd Quarter 47, 008. 95 35 ,105 . 21 3rd Quarter 54 ,517. 62 42, 333.06 4th Quarter 60, 066. 31 46 , 990 .02 $210, 127 . 01 $167 , 476 . 64 1982-1983 1st Quarter $46 , 867. 77 $44, 420 . 82 2nd Quarter 38, 836 . 09 36 , 320 .55 3rd Quarter 26 ,619. 85 24, 472. 70 4th Quarter 37,527. 96 34, 355 . 49 149 , 851. 67 $139 ,569.56 1983-1984 lst Quarter $37, 084. 01 $34, 233. 82 2nd Quarter 46, 114 . 30 43, 406 . 74 83, 198. 31 $77, 640 .56 The 1981-1982 figures include collections from the Sycamore Inn, Danville . Revenues from that facility were lost when the City of Danville was incorporated July 1, 1982 . The Sycamore Inn accounted for $35 ,000 of the transient occupancy tax collections in the 1981-1982 year. The figures indicate that, historically, 3rd Quarter collections have been larger than collections for either of the first two quarters . However, for the 1982-1983 year the 3rd Quarter collections dropped sharply. This drop can be attributed to the major remodeling project which occurred at the Sheraton Inn during this period. Thus, the tax collections for the 1982-1983 year do not reflect the normal pattern. Inasmuch as the Sheraton Inn accounts for about 93% of the county' s total transient occupancy tax collections, a variation in its room usage significantly affects the county' s total tax collection. The figures for the first two quarters of 1983-1984 indicate that tax revenue for that facility are again on the increase. For the 1983-1984 fiscal year, the first two quarters have produced tax collections of $83, 198. Historically the tax collections have been higher for the 3rd and 4th Quarters as compared to the lst and 2nd Quarters and it appears this pattern will return for the 1983-1984 year. A conservative approach of simply doubling the $83, 198 received in the first two quarters would produce a total collection for the year of $166 , 396 . This would mean that total collections for 1983-1984 would exceed those for 1982-1983 by $16 ,544 . On this basis, the county 's contribution to the Concord Convention and Visitors Bureau would include the additional $12, 393 requested by the Bureau and referenced in the December 13, 1983 Board Order. The 3rd Quarter collections for the current year will be known in early May. Those figures will be significant in projecting the total collections for this year. With regard, to your Board' s request for the Bureau's goals, objectives and evaluation criteria, forwarded herewith is a copy of the Bureau' s 1983-1984 activity report. The report includes a listing of goals and objectives but no evaluation criteria has been provided. 00 23 -1 3. Now that the Concord Convention and Visitors Bureau has become an independent agency, the issue of the county' s contribution to the Bureau's 1984-1985 budget will be discussed directly with Bureau staff . There will no longer be a contract between the County. and the City of Concord. For the 1984-1985 year, the Bureau has proposed a total budget of $281, 123 . The requested county contribution is $65 , 712, representing an increase of 43% over the amount requested for the 1983-1984 year. The Bureau has continued to provide promotional services on behalf of the Sheraton Inn but has received no County funding for the contract period which began January 1, 1984. It is in order to release the balance of funds budgeted for support of the Bureau for the 1983-1984 fiscal year. The issues of additional 1983-1984 funding and the requested 1984-1985 funding require further review. 00 2.3%0 I ti