HomeMy WebLinkAboutIR 9334INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 9334
To the Mayor and Members of the City Council December 7, 2010
Page 1 of 1
SUBJECT: UPDATE ON THE FORT WORTH CONVENTION & VISITORS
BUREAU AND PROPOSED APPROPRIATION INCREASE
The purpose of this Informal Report is to provide City Council an update on a proposed appropriation
increase for the Fort Worth Convention & Visitors Bureau (CVB).
The Convention & Visitor's Bureau is a contractor with the City and is funded through the Culture and
Tourism Fund, which consists of revenues generated through hotel occupancy taxes (HOT), Public
Events facility revenues and DFW Rental Car Taxes. The CVB serves to enhance tourism and
promote meeting and convention type activities in Fort Worth. In addition to these responsibilities,
the CVB also manages the full -time operations of the Fort Worth Herd.
The funding for the operation of the CVB was reduced ten (10 %) percent in the adopted FY2011
budget for a total budget reduction of $716,253.
The first quarter hotel occupancy tax revenue collections have indicated an upward trend in the HOT
Tax, and it appears reasonable that future collections may continue with a positive collections trend.
The hotel inventory has increased during the last several years. In order to address the increased
inventory, the CVB must continue to aggressively market Fort Worth as a premier destination in
order to maximize the City's investment in the Convention Center and Will Rogers Memorial Center.
Staff is recommending restoration of $433,000.00 to the current year CVB operating budget for
marketing activities and an additional $100,000.00 for the Special Public Facilities Fund (SPFF)
dedicated to the Fort Worth Convention Center subject to mutually agreed uses of the SPFF. The
increased allocation is contingent upon the overall fiscal year collections of HOT, Public Events
facilities revenues and receipts from the DFW Rental Car meeting or exceeding the budget by a
minimum of $533,000.00. Additionally, the expenses for the Culture and Tourism Fund must meet
the budget expectations. Variations to the revenue or expenses may create an environment whereby
subsequent FY2011 payments to the CVB may be reduced.
An M &C will be presented to the City Council on December 14th. One -half of the increased allocation
would be paid upon approval of the M &C, with the remaining half to be made after the second
quarter HOT (7 %) collections are received by the City.
Additionally, new language will be developed relating to the uses of the SPFF to ensure that it is
used specifically to defray facility rental fees at City facilities.
If you have any questions, please contact Kirk Slaughter, Director of Facilities and Public Events at
817- 392 -2501.
Dale A. s ler, P.E.
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS