The URL can be used to link to this page

Home My WebLink AboutAgenda Packet City Council - 08/25/2022 Lw,A.,5r.,f,�r s City of Corpus Christi 1201 Leopard Street Corpus Christi,TX 78401 _ x w cctexas.com \ Meeting Agenda - Final City Council Thursday,August 25,2022 9:00 AM Council Chambers FY 2022-2023 BUDGET WORKSHOP - Economic Development Department, Hotel Occupancy Tax, American Bank Center, Visit Corpus Christi, Airport and Potential Adjustments from Community Input Sessions Public Notice: ITEMS ON THIS AGENDA ARE FOR COUNCIL'S INFORMATIONAL PURPOSES ONLY. NO ACTION WILL BE TAKEN AND NO PUBLIC COMMENT WILL BE SOLICITED. A. Mayor Paulette Guajardo to call the meeting to order. B. City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. C. BRIEFINGS: 1. 22-1453 FY 2022-2023 BUDGET WORKSHOP - Economic Development Department, Hotel Occupancy Tax, American Bank Center, Visit Corpus Christi, Airport and Potential Adjustments from Community Input Sessions sponsors: Office of Management and Budget D. ADJOURNMENT City of Corpus Christi Page 1 Printed on 8/22/2022 SC o� � h U yc°"P°Rp'tio 1852 AGENDA MEMORANDUM City Council Workshop of August 25, 2022 DATE: August 18, 2022 TO: Peter Zanoni, City Manager FROM: Eddie Houlihan, Director of the Office of Management and Budget EddieHo@cctexas.com (361) 826-3792 City Council Workshop on FY 2023 Proposed Budget for Economic Development Department, Hotel Occupancy Tax Fund, American Bank Center, Visit Corpus Christi, Airport Fund and Budget Wrap-up STAFF PRESENTER(S): Name Title/Position Department 1. Heather Hurlbert Director of Finance & Business Analysis Economic Development 2. Brian Martin General Manager American Bank Center 3. Brett Oetting President & CEO Visit Corpus Christi 4. Kevin Smith Director of Aviation Airport ISSUE: This is the sixth and final City Council workshop to discuss the FY 2023 proposed operating budget. The topics for the final workshop include Economic Development, Hotel Occupancy Tax Fund, American Bank Center, Visit Corpus Christi, Airport Fund, and Budget Wrap-up. BACKGROUND INFORMATION: A briefing on the FY 2023 proposed budget was presented to the Mayor and City Council on July 26, 2022. The FY 2023 proposed budget focuses on City Council and community priorities including public safety, street reconstruction/maintenance, parks, neighborhood services and utilities. The FY 2023 proposed budget, comprised of all funds excluding transfers, totals $1.4B. The General Fund budget is $279.6M, and the Capital Budget totals $558.6M. A series of six City Council budget workshops are scheduled to be held from August 8 to August 25. At these sessions, City staff will review in detail the budget proposals with the Mayor and City Council. Additionally, there will be five public input sessions to be held from August 8 to August 17. The budget is scheduled to be adopted on September 6, 2022, for the City's fiscal year which begins on October 1. The sixth budget workshop will be held on Thursday, August 25, 2022, at 9:00 am. At the workshop, the City Council will be presented with the FY 2023 proposed budget for Economic Development, Hotel Occupancy Tax Fund, American Bank Center, Visit Corpus Christi, Airport Fund, and potential adjustments due to Community Input sessions. Economic Development Department: A new Economic Development Office is proposed to centralize economic development activity under one department. Four existing positions were realigned, one Business & Economic Coordinator and one Department Administrator were added to the newly formed department. Economic Development Office will work closely with the Mayor's Office. The FY 2023 proposed budget for the Economic Development Department is $705.8k and includes funding from the General Fund and the Street Maintenance Fund. Below is a summary of the funding and positions that would be authorized by the FY 2023 Proposed Budget. FUND FY 2023 AUTHORIZED POSITIONS PROPOSED BUDGET General Fund $606,317 5 Street Maintenance Fund 99,456 1 Total $705,7731 6 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 2023 proposed budget for the Hotel Occupancy Tax Fund and State Hotel Occupancy Tax Fund is $32.9M 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 2023 Proposed Budget. FUND FY 2023 AUTHORIZED POSITIONS PROPOSED BUDGET Hotel Occupancy Tax $19,464,840 11 State Hotel Occupancy Tax 13,422,350 55 Total $32,887,1901 66 The State Hotel Occupancy Tax Fund's FY 2023 proposed budget includes funding for Beach Operation vehicles and machinery, six additional lifeguards, restroom facility at North Beach and a Gulf Beach facility which includes restrooms, showers, storage, and parking. American Bank Center: The management of the American Bank Center was recently contracted with OVG360. OVG360 was founded in 2015 and has one simple goal — to provide venues with customized services that produce results. The total FY 2023 proposed budget for the American Bank Center is $15.1 M 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 2023 proposed budget includes $4.2M for Arena projects and $3.3M for Convention Center projects. Arena projects include major building and lighting upgrades. Convention Center projects include auditorium dressing room improvements, lighting and energy management improvements and landscaping. Visit Corpus Christi: The focus for Visit Corpus Christi is to encourage overnight visitors to the Corpus Christi area. Aviation: The focus for the Corpus Christi International Airport is to provide access to air transportation and aeronautical services. The FY 2023 proposed budget for the Airport Fund is $20.3M and includes funding from Airport Fund and Capital Improvement Program. Below is a summary of the funding and position counts that would be authorized by the FY 2023 Proposed Budget. FUND FY 2022 AUTHORIZED PROPOSED BUDGET POSITIONS Airport Fund $14,077,179 86 Capital Projects 6,194,100 0 Total $20,271,2791 86 Proposed Budget Wrap-up: The sixth workshop will also include a discussion with the City Council on any potential budget amendments resulting from the five public input sessions and the six City Council Budget work sessions. A summary of all amendments will be presented to the City Council at the first reading of the FY 2023 budget on August 30, 2022. Final reading will take place on September 6, 2022. LIST OF SUPPORTING DOCUMENTS: PowerPoint - not attached • Economic Development Department • Hotel Occupancy Tax Fund • American Bank Center • Visit Corpus Christi • Airport Fund • Proposed Budget Wrap-up