AGENDA #7

BUDGET WORKING PAPER

TO:                  W. Calvin Horton, Town Manager

FROM:            Kay Johnson, Finance Director

SUBJECT:      Request for 15 Percent of Hotel Motel Taxes for the Visitors Bureau

DATE:            June 7, 2006

At the Public Hearing on the recommended budget on May 10, 2006, the Council received a request from Laurie Paolicelli, the Executive Director of the Orange County Visitors Bureau for an increase in funding from the Town from $69,000 to 15 percent of total Hotel Motel tax receipts.  Hotel Motel Tax receipts are budgeted at $700,000 for 2006-07. Fifteen percent of $700,000 would be $105,000; however, actual Hotel Motel Tax receipts could be more or less than the actual budgeted amount. 

RECOMMENDATION

We recommend continuation of funding at $69,000, as proposed in the Manager’s Recommended Budget.