By Bill Oakey – June 4, 2015
The quest to eliminate taxpayer-subsidized special event fee waivers may get a boost, thanks to the discovery of a little-publicized City Manager’s Power Point presentation from mid-2014. This presentation followed the May 1st passage of City Council Resolution # 20140501-036, sponsored by Kathie Tovo, directing the City Manager to review alternative funding sources for special event fee waivers. One specified option was to consider using the Hotel Occupancy Tax. A subsequent information request from then Mayor Pro-Tem Sheryl Cole revealed that Austin’s Hotel Occupancy Tax revenues have galloped from $51 million in 2012 to an estimated $70+ million in 2014.
The newly discovered Power Point presentation should put to rest any fleeting suggestion that Austin cannot or should not use Hotel Occupancy Tax funds to replace millions of dollars in fee waivers. This statement appears on Slide # 17: “To date we have researched and found 30 cities in Texas that currently utilize other funding sources for special events that qualify; most utilizing a percentage of HOT Funds administered by the Convention & Visitors Bureau (CVB).” Cities cited in the presentation include Cedar Park, Dallas, Georgetown, Giddings, Fredericksburg and Round Rock. You can download the Power Point presentation here.
From an affordability standpoint, here’s a revelation that should catch everyone’s attention. On Slide # 8, charts show that in 2013 the City granted $1,146,127 in fee waivers. But somehow they wound up with a funding gap of $3,110,104 that year. The event costs for all City departments added up to $6,703,457, while fees collected only came to $3,593,353. (The City Transportation Dept. reported the 2013 funding gap to be $4,256,000, with the total five-year deficit from 2009-2013 coming to $10,694,000).
At the City Manager’s Power Point session, Slide # 2 states that an alternate funding proposal for special events was due to his office on July 24th, and to the City Council on August 7th (the date specified in the Council resolution). We now know that something transpired at City Hall between May and November of 2014. Marc Ott’s November 7th memo signaled a new direction for responding to the issue, as well as a new one-year-later deadline. They are now pursuing a plan for multi-year agreements with special event organizers. These carry the potential for locking in the taxpayers to continuous fee waiver subsidies. The whole notion of considering the Hotel Occupancy Tax as an alternate funding source disappeared down the rabbit hole.
But now it is on its way back out…Stay tuned!