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MEMORANDUM Page 1 of 3 <br />AGENDA ##4e <br />MEMOP:~~NI~JM <br />TO: Mayor and Town Council <br />FROM: W. Calvin Horton, Town Manager <br />SUBJECT:Recommendations for Use of HoteUMotel Occupancy Tax.Revenues in 20'01-2002 <br />DATE: February 26, 2001 <br />The attached resolution would authorize the Council to include a specific allocation Af the hoteUmotel <br />occupancy tax proceeds in the Manager's Recommended Budget. <br />BACKGROUND <br />The Town currently levies a room occupancytax of 3% for transient lodging of less than 90 days. The <br />enabling legislation that grants the Town the right to collect the tax requires that at least 10% of tax <br />proceeds be used to support-visitor information services and culturaLevents. <br />In 1995, the Council adopted anon=binding resolution expressing intent to provide $20,000 per year for <br />ten (10) years for purchaseof the ArtsCenter's building. <br />The Council has historically allocated 15% of all hoteUmotel tax receipts to the Chapel HilUOrange <br />County Visitors Bureau. <br />Last year the Council made five hoteUmotel funding. allocations, which totaled- approximately 22% of <br />the projected total of hoteUmotel +,~ proceeds. All remaining proceeds we-r-e allocated to municipal <br />services in general. <br />In- FY 2000-01 the Council awarded HoteUMotel --Grants to_ 5 groups, based on numbers of visitors <br />generated by activities and community and visitors services provided: <br />The ArtsCenter $ 20,000 <br />Chapel HilUOrange County Visitors Bureau $ 87,750 <br />Chapel Hill Public Arts Commission $ 7;000 <br />El Pueb-lo, Inc. $ 5,000 <br />North Carolina High School Athletic Association $ 10,000 <br />Total awarded: $129,750 <br />The projected total of hoteUmotel tax proceeds for FY 2001-02 is $640,000. <br />DISCUSSION <br />We believe that budget development for FY 2001-02 will be even more difficult this year than it was last <br />year. Knowing that, we recommend the allocations be the same as last year and that no action be taken <br />now to solicit applications from other visitor information services or cultural events groups. <br />We recommend that the Council instruct the Manager to include the following allocations of hoteUmotel <br />20 <br />http://townhall.townofchapelhill.org/archives/agendas/ca010226/4e-Hotel%20Motel%200... 8/11 /2011 <br />