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HomeMy WebLinkAboutAgenda Packet City Council - 08/22/2019City Council Workshop Session City of Corpus Christi Meeting Agenda - Final 1201 Leopard Street Corpus Christi, TX 78401 cctexas.com City Council Chambers9:00 AMThursday, August 22, 2019 Hotel Occupancy Tax, Convention &Visitors Bureau, American Bank Center, Airport Public Notice - - ITEMS ON THIS AGENDA ARE FOR COUNCIL'S INFORMATIONAL PURPOSES ONLY. COUNCIL MAY GIVE DIRECTION TO THE CITY MANAGER, BUT NO OTHER ACTION WILL BE TAKEN AND NO PUBLIC COMMENT WILL BE SOLICITED. The City Council may elect to go into executive session at any time during the meeting in order to discuss any matters listed on the agenda, when authorized by the provisions of the Open Meeting Act, Chapter 551 of the Texas Government Code. If the Council elects to go into executive session regarding an agenda item, the section or sections of the Open Meetings Act authorizing the executive session will be publicly announced by the presiding officer. THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS ARE PROHIBITED IN THE COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. A.Mayor Joe McComb to call the meeting to order. B.City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. C.BRIEFINGS TO CITY COUNCIL: The following items are for Council's informational purposes only. Council may give direction to the City Manager, but no other action will be taken taken and no public comment will be solicited. 1.19-1208 FY 2019-2020 Budget Workshop on the Hotel Occupancy Tax Collections and Programs, the Convention & Visitor's Bureau, the American Bank Center, and Airport Operations. D.ADJOURNMENT *City Council will not be taking action in this workshop session, except for the purpose of directing the City Manager in accordance with the Charter. To the extent the classification of this meeting as a workshop is construed to limit this authority, then this meeting is determined to be a special meeting. Page 1 City of Corpus Christi Printed on 8/16/2019 MEMORANDUM To: Mayor and Council Members From: Peter Zanoni, City Manager CC: Executive Leadership Team; Eddie Houlihan, Budget Director Date: August 15, 2019 Subject: Council Workshops for FY 2020 Proposed Budget on Hotel Occupancy Tax, American Bank Center, Convention & Visitor’s Bureau, and Airport BACKGROUND INFORMATION: A Briefing on the FY 2020 Proposed Budget was presented to the Mayor and City Council on July 30, 2019. The FY 2020 Proposed Budget focuses on City Council and community priorities including Hotel Occupancy Tax, American Bank center, Convention & Visitor’s Bureau and the Airport. The FY 2020 Proposed Consolidated Annual Budget, comprised of all funds excluding transfers, totals $1.1 billion. The General Fund budget is $271.1 million, and the Capital Budget totals $327.7 million. The Proposed Budget adds a net of 157 new positions for a total of 3,317 authorized positions. A series of city council budget workshops are scheduled from August 15 to August 29. At these sessions, City staff will review the budget proposals with the Mayor and City Council in detail. There will also be Public Input Sessions held from August 12 to August 22. There will be one Public Input Session held in each district. The budget is scheduled to be adopted on September 17 for the City’s fiscal year that begins on October 1. ISSUE: A budget workshop is scheduled for Thursday, August 22 from 9:00 A.M. to 11:00 A.M. in City Council Chambers. At this session, the City Council will be presented with the FY 2020 Proposed Budget for the Hotel Occupancy Tax, American Bank Center, Convention & Visitor’s Bureau, and Airport. Hotel Occupancy Tax Hotel owners, operators or managers must collect Hotel Occupancy Tax from their guests who rent a room or space costing $15 or more each day for 30 days or less. The City receives 2 percent (.02) of the 6 percent (.06) the State collects in hotel occupancy taxes, the Municipal hotel occupancy tax rate is 7 percent (.07) and the Convention Center hotel occupancy tax rate is 2 percent (.02) for a total of 11 percent (.11) of the cost of a room. The Proposed FY 2020 Budget for the Hotel Occupancy Tax Fund and State Hotel Occupancy Tax Fund is $19.2 million and includes funding from Hotel Occupancy Tax and the State Hotel Occupancy Tax. Below is a summary of the funding that would be authorized by the Proposed FY 2020 Budget. FUND FY 2020 PROPOSED BUDGET AUTHORIZED POSITIONS Hotel Occupancy Tax $15,933,000 0 State Hotel Occupancy Tax $3,295,000 22.02 Total $19,228,000 22.02 The State Hotel Occupancy Tax Fund’s FY 2020 Proposed Budget includes funding of $25,000 to develop a McGee Beach master plan and $100,000 for maintenance of McGee Beach. Also included in the FY 2020 Proposed Budget is $57,995 to add two Park Techs at North Beach for increased sanitation services and maintenance of beach facilities. For Gulf Beaches, $46,110 was added for a Compliance Officer to ensure the park rules and ordinances are followed by patrons , $47,208 for a head lifeguard to provide continuity and increase accountability of lifeguards, and $26,606 for four Summer- lifeguards to enhance the public’s safety at the beach. For the Bay Beaches, $46,110 was included for a Compliance Officer to ensure the park rules and ordinances are followed by patrons. American Bank Center As industry leaders in venue management serving the Coastal Bend community – we are committed to always doing more and providing extraordinary experiences for our clients, guests and employees. The total Proposed FY 2020 Budget for the American Bank Center is $15.6 million which includes funding from the Convention and Arena Revenue, Hotel Occupancy Tax, and City support The American Bank Center’s FY 2020 Proposed Budget includes over $8 million for arena projects to include locker/dressing room upgrades and audio video enhancements. Convention & Visitor’s Bureau The Convention & Visitor’s Bureau’s, known as Visit CC, focus is to drive overnight visitors to the Corpus Christi area. The FY 2020 Proposed Budget for the Convention & Visitor’s Bureau is $5.5 million and over 95% comes from the City of Corpus Christi. Airport The Airport Department’s focus is to provide access to air transportation and aeronautical services. The FY 2020 Proposed Budget for the Airport Department is $18.7 million and includes funding from Airport revenue and Capital Improvement Program. Below is a summary of the funding and position counts that would be authorized by the FY 2020 Proposed Budget. FUND FY 2020 PROPOSED BUDGET AUTHORIZED POSITIONS Airport Fund $9,875,790 82 Capital Projects 8,825,400 0 Total $18,701,190 82 ALTERNATIVES: N/A FISCAL IMPACT: This presentation provides a briefing on the major initiatives within the Hotel Occupancy Tax, American Bank Center, Convention & Visitor’s Bureau, and Airport. The FY 2020 Budget is scheduled to be adopted by City Council on September 17, 2019. RECOMMENDATION: This item is a workshop for discussion of the Proposed FY 2020 Budget and is for briefing purposes only.