Title
Action on Resolution 20-021, a Resolution Providing Financial Commitment for a Reserve from Three B Tax surplus to fund the SDSU Visitor Promotional Fund.
Body
Summary:
The 2020 SDSU Visitor Promotional Fund was decreased to $10,000 from the historical $50,000 level. City Council requested an evaluation of 2019 3B revenues to potentially increase the SDSU Visitor Promotional Fund. 2019 revenues were greater than expected mostly due to a one-time increase, which led to surplus funds.
At the February 18, 2020 City Council Study Session, staff divulged the SDSU promotional fund carried over $33,000 from 2019 which was unspent. Council funded $10,000 in the 2020 SDSU budget. Therefore, staff recommended an additional $7,000 to solidify $50,000 in total 2020 available funds. With an increase of revenue from a one-time opportunity realized in 2019, staff further recommends placing $30,000 aside for 2021 that can be utilized should the 3B revenue and expenditures minimize City Council's available contribution to the SDSU Promotional Fund. The utilization will be determined thought the 2021 budget process or again in February 2021.
Background:
Three B is a one percent tax charged on bed, booze, and board. The Pillow Tax is a $2 charge on hotel rooms within a Business Improvement District. These revenues provide city funding for various outside visitor and economic development agencies. Some agencies have increased their overall dependency over time; however, the revenue source which funds these agencies has not kept up with the demand. This unsustainable funding has been augmented with revenues from the Liquor Store through a transfer.
The future recommended funding levels need to mirror the revenue received from the 3B and Pillow Tax in order to be sustainable. The annual increase in these revenue sources has been minimal. Additionally, Liquor Store revenues assist in funding the General Fund. The 2020 projected budget does not provide revenue necess...
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