HOT Funding Committee Meeting Date: 02/28/2017 Submitted By: Leno Hernandez, Paul Poag Theatre Mgr. Attachments
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3 HOT Funding Committee Meeting Date: 02/28/2017 Submitted By: Leno Hernandez, Paul Poag Theatre Mgr 3.a. SUBJECT: Approval of Minutes No file(s) attached. Attachments
4 HOT Funding Committee Meeting Date: 02/28/2017 Submitted For: Leno Hernandez, COMMUNITY SERVICE Submitted By: Leno Hernandez, COMMUNITY SERVICE 4.a. Subject HOT Fund Financial Report HOT_FIN_RPT Attachments
5 HOTEL OCCUPANCY TAX FUND COLLECTIONS AND ALLOCATIONS HOTEL OCCUPANCY TAX FUND COLLECTIONS Allocations by Percentages Oct $38, $61, $48, $53, Nov $47, $52, $62, $59, Organization Percentage Actuals Dec $44, $55, $51, $54, DRCC CVB 35% 220, , , , Jan $44, $54, $50, $49, HOT fund Committee 29% 183, , , , Feb $37, $57, $54, $55, DRHCC 10% 63, , , , Mar $60, $50, $62, Casa De La Cultura 8% 50, , , , Apr $58, $64, $82, DRCA 7% 44, , , , May $59, $64, $67, Whitehead Museum 5% 31, , , , Jun $59, $56, $57, Shumla 2% 12, , , , Jul $58, $60, $63, Brown Plaza Assoc. 2% 12, , , , Aug $64, $69, $62, Laughlin Heritage 2% 12, , , , Sep $57, $59, $57, % 631, , , , TOTAL $631, $705, $720, $272, $90, $80, $70, $60, $50, $40, $30, HOT Fund by Fiscal Year Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep HOTEL OCCUPANCY TAX FUND COMMITTEE ALLOCATIONS 29% to Date 675, Approved Expenses Date Ordinance Post Evt Rpt Notes 1 City of Del Rio - 4th of July /21/15 No Ord n/a budget transfer 2 International Good Neighbor Council /13/15 No Ord yes 3 BRMC Ch /08/16 No Ord Yes 4 City of Del Rio - 4th of July /14/16 O: n/a budget transfer 5 Del Rio Babe Ruth /14/16 O: n/a Schedule conflicts 6 Casa De La Cultura /22/16 O: Yes 7 SHUMLA /22/16 O: In Progress 8 City of Del Rio - Visitors Guide /07/16 O: In Progress 9 International Good Neighbor Council /07/16 O: Yes 10 Box-Scene # /07/16 O: Yes 11 Parks Foundation /11/16 O: Yes 12 Del Rio National Little League /24/17 O: In Progress BALANCE 599,525.41
6 HOT Funding Committee Meeting Date: 02/28/ a. Subject HOT Application for funding in the amount of $30,000. PAA_App Attachments
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14 HOT Funding Committee Meeting Date: 02/28/ b. Subject Hotel Occupancy Tax Fund Application for Air Service in the amount of $20,000. HOT_CODR Attachments
15 Hotel Occupancy Tax CITY OF DEL RIO Hotel Occupancy Tax (HOT) Funds FY Purpose By ordinance, the City of Del Rio approves a local hotel occupancy tax with portions of the fund to be dedicated to support convention and tourism centers, promotional and tourist advertising of the City, promotion of the arts, historical restoration and preservation programs, and support for events and activities that attract tourists to the City of Del Rio. The City of Del Rio accepts applications from eligible organizations seeking funds to be used to promote tourism and overnight stay to the City of Del Rio. I. Use of HOT Funds Municipal hotel occupancy taxes are governed by Chapter 351 of the Texas Tax Code. The HOT funds are generated as a result of a person paying for the use or possession, or for the right to the use or possession, of a room in a hotel, motel or bed and breakfast, with a cost of $2 or more each day, that is ordinarily used for sleeping, not on a permanent basis. There is a two-part test for every expenditure of local Hotel Occupancy Taxes. Criteria # 1 EVERY expenditure must DIRECTLY enhance and promote tourism AND the convention and hotel industry. Criteria # 2 EVERY expenditure MUST clearly fit into one of nine statutorily provided categories. The nine categories for expenditure of the hotel occupancy tax are as follows: 1. Funding the establishment, improvement or maintenance of a convention center or visitor information center. 2. Paying the administrative costs for facilitating convention registration. 3. Paying for advertising, solicitations and promotions that attract tourists and convention delegates to the city or its vicinity. (1/7 of total funds must be spent on advertising and promoting the city and its vicinity to attract tourist and hotel/convention activity) 1
16 Hotel Occupancy Tax 4. Expenditures that promote the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution and exhibition of these major art forms. This category is limited to 15% of total funds collected. 5. Funding historical restoration or preservation programs. This funding may be used in primarily two ways. First, to enhance historical restoration and preservation projects. Second, for activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums. Either of those uses must be for activities, programs or events that are likely to attract tourists and hotel guests (limited to 50% of total funds). 6. Funding certain expenses, including promotional expenses, directly related to a sporting event within counties with a population of under 1 million. This sporting event must include mostly participants from out of town. 7. Funding the enhancement or upgrading of existing sports facilities or sports fields for certain municipalities. (Based on population requirements, THIS DOES NOT APPLY TO DEL RIO). 8. Funding transportation systems for tourists. 9. Signage directing tourists to sights and attractions that are visited frequently by hotel guests in the municipality. Further clarification of qualifying Hotel Occupancy Tax fund use is available at: PLEASE TAKE THE TIME TO READ THE CLARIFICATION ON THE LINK ABOVE. II. Review Process The Del Rio City Council approved the Hotel Occupancy Tax (HOT) Fund Committee to be a permanent board, for the main purpose of providing HOT fund recommendations to the City Council. 2
17 Hotel Occupancy Tax The internal HOT Fund Committee reviews all acceptable applications from individuals, groups and organizations applying for HOT funding. An acceptable application is one that is complete and meets the deadline requirements. Each group, with an acceptable application, will be scheduled for a date and time to present their request to the Committee. At the presentation, the Committee may ask questions and seek clarification. A formal presentation is encouraged, however it is not required. After presentations are made, the Board will prepare an initial funding recommendations based on the requested amount and/or a percentage, Notification of the initial funding recommendations will be ed to all applicants. Funding recommendations may vary from the amount requested. Applicants will be notified by of the Committee s final recommendations. The City Council will receive formal recommendations by the HOT Fund Committee Chairperson, at a regularly scheduled Council meeting, and will make the final decision on the allocation of funds. After October 1, 2016, when the fiscal year of the City of Del Rio begins, the Assistant City Manager or designee will send out formal contracts to successful applicants. After the contracts are signed and returned to the City, the organization may receive monthly payments based on the awarded percentage/amount. Organizations are REQUIRED to submit monthly reconciliation statements on Hotel Occupancy Tax fund use. Failure to do so can delay the payment of the following monthly payment. Statements can be sent via to mchavez@cityofdelrio.com or at the City Secretary s Office, 109 West Broadway, Del Rio, Texas, Statements are subject to review and MUST COMPLY with the requirements of qualifying HOT fund expenditures. Any organization that owes tax dollars to the City of Del Rio will not receive funds until their debt is paid. 3
18 Hotel Occupancy Tax Hotel Occupancy Tax Application I. Contact Information Legal name of Organization requesting funds: Organization Mailing Address: Phone: Mobile: Name of Primary Contact: Title of Primary Contact: Mailing Address of Primary Contact: Phone: Mobile: II. Organization Type This Organization Is: Private Non-Profit/Tax Exempt Other Tax ID#: Type of Organization (IRS Code): What is the Mission of your Organization? Year Organization was established: Number of full time staff: Number of part time staff: Number of volunteers: 4
19 Hotel Occupancy Tax III. Required Information to be submitted with Application Organization s proposed annual budget, including all revenue sources, expenditures, and proposed HOT funds expenditures. Acceptable HOT Fund expenditures will be required to meet the requirements established in Criteria #1 and at least one of the nine categories in Criteria #2. Organization financial statements from previous two years Articles of Incorporation By-laws Board Members - names and titles IV. Previous HOT Funding Has the Organization previously received HOT funding from the City of Del Rio? If Yes, what year(s) and for what purpose? V. Previous Events/Programs Organized List major events/programs that this Organization or Applicant has organized and hosted. 5
20 Hotel Occupancy Tax Additional information such as schedules, financial statements, articles or other relevant information regarding these events/programs may be provided during the Board presentation. Marketing collateral samples may also be brought to the presentation and are not required with the application. VI. Request HOT Fund Amount Requested: If this request for funding is denied, will the program continue: Comments: VII. End of Year Report Upon completion of awarded payment, the Hotel Occupancy Tax Fund recipient will be required to deliver an annual report to the City Secretary s Office, 109 West Broadway, Del Rio, Texas, The recipient must also present the annual report to City Council at an agreed future date to be determined. Failure to submit a Post Event/Program report could affect future funding recommendations for HOT funds. VIII. Submitting an Application Applicants must submit a completed application and provide required documentation. The application deadline is Monday, December 12, 2016, 3:00pm. At which time there will be a mandatory meeting with all perspective applicants at City Hall Monday, December 12, 3:00pm to go over FY HOT funding and expectations. 6
21 Hotel Occupancy Tax Completed applications will be accepted online at is the preferred method of receiving the application and required documents. However, applications will also be accepted at City Hall, City Secretary Office, 109 West Broadway, Del Rio, TX Notification of dates and times of presentations, appeals or any changes that may occur, will be made by and/or phone. Applicants are responsible for providing addresses / phone numbers that will allow them to be contacted expediently. IX. Acknowledgment I, representing understand the Texas State limitations placed on use of Hotel Occupancy Tax funds, and certify that the requested funds will be used only for purposes described in this application or as approved by the City. Furthermore, I understand our Organization s use of HOT funds is subject to audit. Signature Date 7
22 HOT Funding Committee Meeting Date: 02/28/2017 Submitted By: Leno Hernandez, Paul Poag Theatre Mgr, COMMUNITY SERVICE 5.c. SUBJECT: Adoption of HOT Fund Application SUMMARY: Adopting a replacement of the HOT fund Application with updated information BACKGROUND: Based on the application process to date areas of improvement to the application were identified and obsolete data was updated. DISCUSSION: Approval of updated HOT Fund Application. PROS: Updated application will make it easier to gather appropriate data to make decision on expenditure recommendations. CONS: none RECOMMENDATION: TBD Fiscal Impact No file(s) attached. Attachments
23 HOT Funding Committee Meeting Date: 02/28/ d. Subject Post Event Report for Del Rio Babe Ruth Tournament. No file(s) attached. Attachments
24 HOT Funding Committee Meeting Date: 02/28/ e. Subject Post Event Report for Del Rio National Little League Clinic. $3000 No file(s) attached. Attachments
25 HOT Funding Committee Meeting Date: 02/28/2017 Submitted By: Leno Hernandez, Paul Poag Theatre Mgr, COMMUNITY SERVICE 5.f. SUBJECT: Subcommittee for Expense Recommendations. SUMMARY: Creation of a HOT Fund Expense Recommendations Subcommittee. BACKGROUND: During the February 6 HOT Fund Committee meeting the committee express interest in exploring a subcommittee that would make recommendations to City Council on Expense Recommendations of the unspent funds to date. DISCUSSION: Explore the feasibility of a HOT Fund Committee Subcommittee to make funding recommendations. PROS: The unspent HOT Fund Committee dollars can be allocated for appropriate projects and/or activities. CONS: Dilution of the funds can hinder the opportunity to have funds available to qualifying applicants. RECOMMENDATION: TBD by HOT Fund Committee. FISCAL IMPACT: Fiscal Impact Creation of Subcommittee may see an increase of Hotel Occupancy Tax use. No file(s) attached. Attachments
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