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Town of Chapel Hill Executive Summary |
Meeting Date: 11-24-2008 AGENDA #4c |
Title of Agenda Item: Budget Ordinance Amendment to Appropriate Additional Funding for the Visitor’s Bureau Performance Agreement.
Background: On June 25, 2008 the Council approved a resolution that increased the funding level for the Chapel Hill/Orange County Visitors Bureau and provided for additional payments based on the level of occupancy tax receipts. The performance agreement with the Visitor’s Bureau has been amended to reflect the changes authorized by the Council. In order to fund the addition to the base level funding of the Visitors Bureau, a budget ordinance amendment increasing the appropriation from $100,000 to $130,000 must be approved. Additional funding contingent on achieving occupancy tax revenues in excess of $1,000,000 will be requested when it is clear that the occupancy tax revenues will reach that level.
Fiscal Note: Enacting the budget ordinance amendment will reduce the General Fund balance by $30,000. This will not materially impact the level of fund balance with respect to the town’s target of 12% general fund balance to appropriations. To the extent that the Town receives occupancy taxes in excess of the $935,000 budgeted for this fiscal year, the additional amount would increase the fund balance. If the occupancy tax receipts exceed $1 million the first $40,000 of additional receipts will be split equally between the Town and the Visitor’s Bureau.
Staff Recommendation(s): That the Council enact the attached budget ordinance amendment increasing the base level of funding for the Chapel Hill/Orange County Visitors Bureau from $100,000 to $130,000 in accordance with the resolution authorizing increases in the Visitor’s Bureau performance agreement adopted by the Council June 25, 2008.
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