HomeMy WebLinkAboutAgenda Packet City Council - 08/27/2020City Council Workshop Session
City of Corpus Christi
Meeting Agenda - Final
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
City Council Chambers11:30 AMThursday, August 27, 2020
Budget Workshop for Airport Operations, American Bank Center, Convention & Visitor's
Bureau and Hotel Occupancy Tax Fund
NOTE: This meeting will start late. It will begin following the TIRZ No. 4 meeting, which is
scheduled to start at 11:15 a.m.
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:
1.20-0917 Proposed FY 2020 - 2021 Airport Operations, American Bank Center,
Convention & Visitor's Bureau, and Hotel Occupancy Tax, and potential FY
2021 Proposed Budget adjustments as a result of Community Input.
D.ADJOURNMENT
Page 1 City of Corpus Christi Printed on 12/23/2020
AGENDA MEMORANDUM
City Council Workshop of August 27, 2020
DATE: August 21, 2020
TO: Peter Zanoni, City Manager
FROM: Eddie Houlihan, Director of the Office of Management and Budget
EddieHo@cctexas.com
(361) 826-3792
STAFF PRESENTER(S):
Name Title/Position Department
1. Kevin Smith Assistant Director Airport
2. Matt Blasy General Manager American Bank Center
3. Brett Oetting President & CEO Visit Corpus Christi
ISSUE:
This is the fourth and final City Council workshop to discuss the FY 2021 proposed operating
budget. The topics for the fourth workshop include Airport, American Bank Center,
Convention & Visitor’s Bureau and Hotel Occupancy Tax Fund and potential FY 2021 Proposed
Budget adjustments as a result of community input.
BACKGROUND INFORMATION:
A briefing on the FY 2021 proposed budget was presented to the Mayor and City Council on
July 28, 2020. The FY 2021 proposed budget focuses on City Council and community priorities.
The FY 2021 proposed budget, comprised of all funds excluding transfers, totals $1 billion. The
General Fund budget is $241.9 million, and the Capital Budget totals $259.9 million.
A series of four City Council budget workshops are scheduled to be held from August 6 to August
27. At these sessions, City staff will review in detail the budget proposals with the Mayor and
City Council. Additionally, there will be five on-line, interactive public input sessions to be held
from August 10 to August 19. The budget is s cheduled to be adopted on September 15, 2020
City Council Workshop on FY 2021 Proposed Budget for
Airport, American Bank Center, Convention & Visitor’s Bureau
and Hotel Occupancy Tax Fund
– with the first reading to be help on September 8th, and the second and final reading on
September 15th.
Airport:
The focus for the Corpus Christi International Airport is to provide access to air transportation
and aeronautical services.
The FY 2021 proposed budget for the Airport Fund is $26.2 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 2021 Proposed Budget.
FUND FY 2021
PROPOSED BUDGET
AUTHORIZED
POSITIONS
Airport Fund $12,734,102 81
Capital Projects 13,434,400 0
Total $26,168,502 81
American Bank Center:
The management of the American Bank Center is contracted with ASM Global (formerly known
as SMG). As industry leaders in venue management serving the Coastal Bend community, ASM
Global is committed to always doing more and providing extraordinary experiences for its clients,
guests, and employees. The total FY 2021 proposed budget for the American Bank Center is
$15.1 million which includes funding from the Visitor’s Facilities Fund (where the revenues are
recorded for both the Convention Center and Arena), Hotel Occupancy Tax Fund, and Type A
Arena Fund.
The American Bank Center’s FY 2021 proposed budget includes $4.98 million for Arena projects
and $1.58 million for Convention Center projects. Arena projects include suite and terrace
enhancements and audio video enhancements. Convention Center projects include carpet
replacement and security enhancements.
Convention & Visitor’s Bureau:
The focus for the Convention & Visitors Bureau is to encourage overnight visitors to the Corpus
Christi area. The FY 2021 proposed budget for the Convention & Visitor’s Bureau is $5.7 million
of which 93% comes from the City of Corpus Christi through the Hotel Occupancy Tax Fund.
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. There are two sources
for hotel occupancy tax: local and state hotel occupancy tax. The local hotel occupancy rate is
nine percent. This includes seven percent (.07) for the municipal hotel occupancy tax and two
percent (.02) to pay for debt associated with the Convention Center. This is recorded in the
Hotel Occupancy Tax Fund. The State hotel occupancy tax is six percent. The City receives
two percent (.02) of this six percent (.06), and it is recorded in the State Hotel Occupancy Tax
Fund.
The FY 2021 proposed budget for the Hotel Occupancy Tax Fund and State Hotel Occupancy
Tax Fund is $17.8 million and includes funding from Hotel Occupancy Tax and the State Hotel
Occupancy Tax. Below is a summary of the funding and positions that would be authorized by
the FY 2021 Proposed Budget.
FUND FY 2021
PROPOSED BUDGET
AUTHORIZED
POSITIONS
Hotel Occupancy Tax $15,834,185 0
State Hotel Occupancy Tax 1,950,152 21.90
Total $17,784,337 21.90
The State Hotel Occupancy Tax Fund’s FY 2021 proposed budget includes funding for
replacement of Beach Operation vehicles and machinery.
Proposed Budget Wrap-up:
The fourth workshop will also include a discussion with the City Council on any potential budget
amendments resulting from the five public input sessions and the four City Council Budget work
sessions. A summary of all amendments will be presented to the City Council at the first reading
of the FY2021 budget on September 8, 2020. Final reading will take place on September 15,
2020.
LIST OF SUPPORTING DOCUMENTS:
PowerPoint - not attached
Airport
American Bank Center
Convention & Visitors Bureau
Hotel Occupancy Tax