Motel Occupancy Fund

The purpose of this fund is to account for resources generated from the local hotel/motel occupancy tax, which collects at the rate of 7% of the cost of a hotel room. It is the policy of the City of Lake Jackson to use and distribute the Hotel Occupancy Tax using two levels of funding to encourage tourism:

The first level of funds (Level 1) assists the following organizations and events and is distributed on a percentage basis. The maximum level of funds allocated to Level 1 is $568,803 for FY 2021-2022. The maximum may be adjusted annually by the City Council, taking into consideration inflation and increases in operating expenditures. This year, the base amount was adjusted 4.2%.

As much as 29% of Level 1 Funds to be used for promotion of tourism through: 1. Brazosport Convention & Visitors Council; and/or 2. Individual contractors who will advertise and promote the City; As much as 14% of Level 1 Funds to the Brazosport Fine Arts Council to be used for the promotion of the arts; As much as 21% of Level 1 Funds to the Museum of Natural Science at the Center for

Arts and Sciences operated by the Brazosport Fine Arts Council to encourage visitations to museums; As much as 21% of Level 1 Funds to the Lake Jackson Historical Museum to encourage visitations to historical museums and sites; As much as 14% of Level 1 Funds to be used to promote Festival of Lights and other types of festivals or events that promote tourism; As much as 1% of Level 1 Funds to be used to fund tourism-marketing material.

The second level of funds (Level 2) is the remainder and residue of the Hotel Occupancy Tax the City collects and can be allocated for some other lawful method of advertising the City or encouraging tourism, including preservation of historical sites, promoting visitation through attraction of conventions, and encouraging visitations to museums.

Requests for Level 2 funds are made to the Hotel Occupancy Tax (HOT) Committee assigned with the responsibility to recommend expenditures of Level 2 funds to the City Council. The HOT Committee is recommending that level 2 funds for FY 2021-22 be used to continue funding a regional marketing campaign to increase tourism to Lake Jackson.

RESOURCES ACTUAL BUDGET ESTIMATED ADOPTED 2019-20 2020-21 2020-21 2021-22

Fund Balance $ 126,764 $ 85,283 $ 85,283 $ 85,863

Revenues

Hotel Occupancy Tax

Best Western $ 78,560 $ 86,000 $ 62,600 $ 86,000

Super 8 17,316 20,000 16,200 22,000

Staybridge Suites 102,144 127,000 120,000 160,000 Less Rebate (66,394) (82,550) (78,000) (104,000)

Clarion 31,447 36,000 36,000 40,000

Comfort Suites 57,790 67,000 62,800 82,000

Courtyard by Marriott 178,108 217,000 168,000 218,000 Less Rebate (133,581) (162,750) (126,000) (163,500)

Woodspring 43,919 37,000 70,000 84,000

Candlewood 74,961 82,000 72,000 75,000 Total Occupancy Tax $ 384,272 $ 426,700 $ 403,600 $ 499,500

Interest Income 1,290 100 30 30 $ 385,561 $ 426,800 $ 403,630 $ 499,530

Total Resources $ 512,326 $ 512,083 $ 488,913 $ 585,393

EXPENDITURES ACTUAL BUDGET ESTIMATED ADOPTED 2019-20 2020-21 2020-21 2021-22

Fine Arts Council $ 55,889 59,690 56,500 75,600 Brazosport Area C of C 115,769 123,640 117,050 144,800 Museum of Natural Science 83,833 89,530 84,700 105,000 L.J. Historical Museum 83,833 89,530 84,700 105,000 Level 2 Expenditures 31,581 0 0 0 Marketing Items / Brochure 250 4,265 3,600 4,800 Transfer to Special Events 55,889 59,690 56,500 75,600

Total Expenditures $ 427,043 $ 426,345 403,050 $ 510,800

Ending Fund Balance $ 85,283 $ 85,738 85,863 $ 74,593

Level 1 Max Increase to $568,803 based on .042 CPI Adjustment (April 2020 to April 2021)