Item 06 - Staff briefing regarding an update on the Hotel Occupancy Tax by Laura Odegaard, Cultural Investment Program Manager — original pdf

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HOTEL OCCUPANCY TAX UPDATE JANUARY 29, 2024 C I T Y O F A U S T I N E C O N O M I C D E V E L O P M E N T 1 Hotel Occupancy Tax – November 2023 o Total HOT Collections November 2023 = $6,327,721 o 22.4% towards FY24 Approved Budget of $152,172,894 o Cultural Arts Fund November 2023 = $604,297 Hotel Occupancy Tax – December 2023 o Total HOT Collections December 2023 = $196,344 o 22.5% towards FY24 Approved Budget of $152,172,894 o Cultural Arts Fund December 2023 = $18,751 HOT Cultural Arts Fund - FY24 Approved Budget for FY24: $14,525,594 FY24 HOT Cultural Arts Fund in the bank: $3,266,808 HOT Collections (FY22-FY24) $15.65M $12.87M How HOT programs work: History OLD WAY (ESTIMATES) CURRENT WAY (ACTUALS) Grant awards were made based on ESTIMATE of how much we thought we would collect during the next fiscal year. Example – ◦ COA made a projection about FY2018 (Oct 1 2017 – Sept 30 2018) HOT funds ◦ Grants launched in May 2017, Award letters went out in August 2017. ◦ We reported out every month how much was collected (and hoped for the best). ◦ AC wanted to move to Actuals for years, in case anything unexpected happened. Grant awards are made based on the actual funds we collected in the previous fiscal year. Example -- ◦ We collected $12.87 m in FY 2022 ◦ Those FY22 Collections became the FY23 Actuals. ◦ This allowed staff to accurately budget in FY23 and identify the $10.4M we were able to grant out to 286 awardees. How HOT works: Usage vs Collections Right now, staff reports monthly on: Past Present Future • Update of FY22 fund usage (FY23 grantees – Thrive, Elevate, Nexus R1) • Plan for FY23 fund usage (to be launched/awarded in FY 24) • HOT Collections in FY24 (future funding for FY25 programs) How HOT Spending Works FY23 Grantee Activities (FY 22 Funds - $10.4M) FY23Collections ($15.6M) become FY24 Actuals FY24 Actuals budgeted by COA Reserves, Salaries, Admin, Existing Contracts, Programs FY24 Grant Programs Launch ($13.7 M) FY24 Grantees Selected & Contracted FY24 Grantees paid FY24 Grantees (FY23 Funds) FY24 Collections will fund FY25 Grantees 4 2 0 2 Y F Report Out past Plan/ Spend present + + Collect future Questions