Minutes 06-06-2013 - Laserfiche WebLink

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Commissioner McKee said wondered whether adjustments need to be made moving forward. He just wants to clarify that slight shifts may be needed as things move along. Frank Clifton said that the funding now is to create a base. He said the County has been fortunate to have low interest rates that allow for expansive projects. Visitors Bureau and Arts Commission Page 275 Visitor's Bureau Budget Highlights • Occupancy Rates and Revenue: In FY 2013-14, the Visitors Bureau will target a 68% occupancy rate. Orange County's 3% occupancy tax projection is $1.2 million. Carrboro's new 140-room Hampton Hotel will generate an additional $68,482, in occupancy taxes. Additionally, the area'sl,600 hotel rooms will see a slight increase in room rates, back to the industry's 2007 peak rates, and contribute to tax growth. • Travel Revenue and Impacts: Next fiscal year, domestic travelers will spend an estimated $160 million in Orange County, a 5% increase from current year estimates. State and local tax revenues projections from Orange County travel total $12 million. About 1,800 Orange County jobs will be directly attributable to travel and tourism, which will generate $29 million in income, for workers. • Appropriated Fund Balance: In FY 2013-14, the Visitors Bureau will appropriate $20,000 from fund balance, a decrease of$130,000 from the current year. The FY 2012-13 fund balance appropriation funded an advertising initiative, the "Orange County Pride" series and agri-tourism efforts. The Bureau will conduct a research study to assess the effects of the recent advertising campaign, in FY 2013-14. • Town Contributions: In FY 2012-13, Chapel Hill increased its Visitors Bureau contribution by $25,000 to $175,000. The Bureau will request another $25,000 increase, in the upcoming year. Additionally, Carrboro and Hillsborough will have implemented their 3% occupancy tax, which will generate an additional $65,000 and $52,000, respectively. Currently, neither jurisdiction provides a contribution to the Visitor's Bureau. Arts Commission Budget Highlights No significant changes, in FY 2013-14. Tonya Walton said the Visitors Bureau fund is outside of the general fund and includes the Visitors Bureau and the Arts Commission. She said the expenditures budget totals just over $1.25 million. This is a decrease of$37,000 with a corresponding revenue decrease. She said the decrease is due to a $150,000 fund balance appropriation done this year that will not be necessary next year. She said bureau revenues have increased by about $93,000. She reviewed the above budget highlights. Commissioner McKee said the department needs to "toot their horn" more about their accomplishments through these services. He said it is bringing in not only visitors, but also business. Elections Page 67