Orange County NC Website
~-~achrn~n~ a <br />To: Frank Clifton, County Manager <br />Fr: Laurie Paolicelli, Director, Visitors Bureau <br />Cc: Board of County Commissioners <br />Date: July 6, 2011 <br />Re: Visitors Bureau Performance Agreement with the Town. ofChapel Hill <br />A history to the funding relationship with Chapel Hill and Orange County: <br />The Orange County Occupancy Tax was passed in the 1991 session's law and specified <br />that Orange County could levy a room occupancy tax of up to 3%. <br />httl~•%/~~~~~~ ncga 4tate nc us/Ses5io~3s/1991 %Bills/Senatei7:-1"1,~1:11/S622v3.htm.1 <br />The bill gives both Chapel Hill Town Council and the Orange County Board of <br />Commissioners prerogative to decide on the allocation of the revenues collected from this <br />tax annually during its budgeting process. At least ten percent (10%) of the annual <br />revenues shall be used to provide funding for visitor information services and to support <br />cultural events. <br />The Visitors Bureau was created in 1992 by Orange County-- using the initial 1 <br />occupancy tax-( raised to 2% in 1995 and 3% ir. 2008) and since in its inception, the <br />Visitors Bureau staff and programs have- been made possible by the Orange County <br />Board of County Commissioners. <br />In 1994/95, the town of Chapel_Hill began giving_the visitor's bureau a grant, which first <br />equaled $58,625.00 and then took the following course: <br />- In 1995/96; 15% of the occupancy tax revenues or $71,778. <br />- In 1996/97; 15% ofthe occupancy tax revenues or $80,810. <br />- In 1997/98; 15% or $83,779. <br />- In 1998/99; 15% or $83,751. <br />- 1999/2000; 15% or $92,860. <br />- 2000/2001; 15% or $94,545. <br />- 2001/2002; 15% or $88,498. <br />- 2002/2003; 15% or $84,067. <br />- 2003/2004; 15% or $86,649 <br />- 2004/OS REVERTS TO 10% GRANT OR $67,000 (Coincides with Pavao's <br />departure on council) <br />- 2005/06 STAYS AT 10% GRANT OR $69,000 <br />- 2006/07; inches up to $85,000 at VB request. <br />- 2007/08; inches up to $100,000 at VB request. <br />- 2008/09 inches up to $130,000 with $20,000 additional grant. <br />- 2009/10 inches up to $150,000 <br />- 2010/11 remains at $150,000 <br />- 2011/12 remains at $150,000 <br />5 <br />