Hotel Fund Sustainability Discussion
Published:
<< Back to NewsMon 11/2/20
Addison's Hotel Fund revenue has been negatively impacted by the economic effects of COVID-19. At the October 27 Council meeting, staff from the Finance, Special Events, Economic Development and Tourism, and Marketing Departments presented Council with an overview of the fund, the Hotel Occupancy Tax, and a projection of the Hotel Fund's financial sustainability over the next five years.
The team shared details on the individual programs (events and activities) budgeted in the Hotel Fund, including a description, financial information, and a staff-developed rating. Recent financial analysis indicates that the fund is unable to maintain the minimum 25% reserve requirement beyond Fiscal Year (FY) 2021, so the team wanted to proactively begin conversations on possible recommendations that can be developed to address this issue after FY2021. Staff will share recommendations for cost-saving strategies at a future meeting.