TITLE
Title
BUDGET AMENDMENT: ROOM OCCUPANCY & TOURISM DEVELOPMENT FUND
end
SPONSOR
Sponsor
Don Warn and Toy Beeninga
end
BACKGROUND
Background
The Room Occupancy & Tourism Development Fund accounts for occupancy taxes collected from various hotels, motels, and similar establishments in Guilford County. Under North Carolina General Statutes, Session Law 1983-988, Guilford County levies a three percent occupancy tax. The County remits 70% of the net proceeds to the Greensboro/Guilford County Tourism Development Authority and the remaining 30% to the City of High Point. The FY 2023 budget of $6 million was developed based on estimated revenues from prior years. Revenue that is collected is 100% remitted out as a pass-through revenue. Currently, Guilford County has collected almost 100% of the budgeted $6 million. In order to continue remitting collected revenue, the County must increase the budget authority. Staff estimate total collections of approximately $9 million, resulting in a $3 million increase in revenue and expense authority.
Section 3 of the Budget Ordinance authorizes the Budget Officer to amend the budget in the event the actual net proceeds from the Occupancy Tax exceed or fall short of the appropriated amounts. When this occurs, the actual net proceeds from the tax shall constitute the appropriations from the tax levy and the Budget Officer is authorized to amend the budget upward to cover the actual revenue collected. Since this action is being requested prior to actuals exceeding budget, and to avoid multiple actions over the next three (3) months as revenues are collected, the amendment is being brought before the Board of Commissioners to amend once based on a year-end projection, with any clean-up authorized under Section 3 of the FY2022-23 budget ordinance.
end
BUDGET IMPACT
Budget Impact
Budget Amendment to the Room Occupancy & Tourism Development Fund:
Increase Revenue: Occupancy Tax - $3,000,000
Increase Expense: Appropriation Room Occupancy & Tourism Development Fund - $3,000,000
end
REQUESTED ACTION
Requested Action
Approve an increase to Occupancy Tax revenue in the amount of $3,000,000 and increase appropriation to the Room Occupancy & Tourism Development Fund by the same amount to amend the budget to cover the actual revenue collected.
end