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Home My WebLink About05-25-21 Finance Com MinutesCK4101JU [so) A � m9moialml Ms. Alutto called the Finance Committee meeting of May 25, 2021 to order at 4:00 pm. Members present: Ms. Alutto and Mr. Keeler. Mr. Peterson was absent (excused). Staff present: Ms. }'Callaghan, Mr. Hammersmith, Mr. Stanford, Mr. Dearth, Mr. Stiffler, Mr. O'Brien, Ms. Ochletree, Ms. LeRoy, Mr. Plouck and Mr. Earman Also present: Mr. Scott Dring, Executive Director, Visit Dublin Ohio Approval of Minutes Ms. Alutto moved to approve the minutes of the April 19, 2021 Finance Committee meeting. Mr. Keeler seconded. Vote on the motion: Mr. Keeler, yes; Ms. Alutto, yes. Visit Dublin.Ohio Budqet Discussion Mr. Stiffler stated that, as part of the 2021 operating budget, the City provided additional support above the 35% to Visit Dublin Ohio due to the decline in bed tax revenues. Due to the rapidly changing conditions, it was decided to do a six-month budget and revisit this topic at the midpoint of the fiscal year, He stated we are now ready to discuss the second six month period of the budget for Visit Dublin Ohio. He stated that the financial model was for a $400,000 six month budget. This required the City to make a series of direct monthly payments to Visit Dublin Ohio totally $173,000. Mr. Stiffer provided a table illustration of the Visit Dublin Ohio 2021 funding year-to- date and what is projected for July through December. The January through June showed about a 60% decline in bed tax revenues as was predicted and budgeted for. The budget will be increased in the second half from $400,000 to $550,000. July through December is projected to be a little better and is estimated that it will only be about a 38% decline. The $173,000 subsidy provided in the first half of 2021 has been utilized., so staff is recommending a $116,000 subsidy for the second half of the year. Mr. Dring stated that he works closely with the hoteliers in getting projections. He projected an 80% increase in bed tax revenue from July to December, He stated it is an improvement over 2020, but still substantially lower than this period in 2019. Mr. Dring stated that he is projecting that the gap funding needed for the second half of the year is, as Mr. Stiffler stated, $116,000. • May 25, 2021 Page 2 Staff recommended that the Finance Committee recommend approval of the funding i the amount of $116,000 to Visit Dublin Ohio for the second half of 2021. This will be included in the June Supplemental Appropriations Ordinance and that this appropriati will continue to be monitored by the Finance Committee. Mr. Stiffier stated that staff will continue to monitor Hotel Motel Fund revenues and keep the Finance Committee apprised of any increases or decreases. Ms. Alutto stated that she is suortive of th' riation and continued m-#xffr4Yfj, Mr. Keeler stated that he is also supportive. Ms. Alutto stated that she will report back to Council accordingly. Mr. Dring thanked the Committee for their support. May 25, 2021 Page 3 ilr� IIII1111I I I II[TIffiollm =1 In 11�1111111 I ! 4 10' # Cemetefy Fund Structure, Balance and Potential Usage Mr. Stiffler stated that the Cemetery Perpetual Care Fund is not the Cemetery Fund; they are two different funds. Mr. 0"Brien stated that the Cemetery Perpetual Care Fun't"', was established by the authority of the Ohio Revised Code in sections 759.12 and 759.15. The purpose of this fund was to provide a mechanism to collect resources to maintain the cemetery. This designates the money received through the sale of lots to be held in perpetuity. The principal amount in the financial statement is not to be spent. The interest accumulated on the principal is to be used for the maintenance of the cemetery. The balance in this fund as of December 31, 2020, is $1,130,329 in non - spendable funds and the restricted fund balance is $443,937 for a total 'r The fund has been in existence since 1995, but has never been used by the City. Mr. Stiffler stated that potential uses for consideration include capital improvements, such as improvements to gravestones, veteran markers, etc. Staff recommended that the Finance Committee recommend to Council to direct staff to explore these potential uses. Staff will examine potential uses and bring forward a recommendation in a future capital budget or supplemental ordinance for Council's consideration if so directed. Award of Additional Bed Tax Grants Ms. Ocheltree reviewed the Hotel Motel Fund grants that were awarded in December in the amount of $185,442. The amount awarded was less than the appropriation amount of $200,000 in order to consider the unknown and unpredictable impact of the pandernic on special events. Ms. Ocheltree provided a table illustrating the requests, what was awarded and what amounts were to be evaluated. Organizatio Event Request F A;.,.M Awarded Not Awarded Arthritis Foundation Classic Auto brIOW 111#111 #0 Crawford Hoying Dublin Market $25,000 $10,000 Foundation Dublin P��ota a ,000 1$1,000 Dublin Cha�i�CyR III Dublin United I Champiog§ Cup Various Eventsr 1 $12,000 len e Cur i! ti 1O1 104 May 25, 2021 Page 4 Crohns �nd -Colius Foundation Dublin Scioto Lacrosse Boosters Dublin Youth Athleti Bed Tax Grants Future Appropriation Level Discussion Mr. Stiffler reviewed the ordinance that governs the hotel motel tax and that 25% of hotel motel revenues are deposited into an account for Visit Dublin Ohio. The 25% was the minimum requirement in the ordinance until 2016 when City Council increased it to 35%. Mr. Stiffler reviewed the other allowable uses for the hotel motel fund. Mr. Stiffler provided graphs illustrating the hotel motel revenues and what percentage of the hotel motel revenue was dedicated to community grants. There is no guiding policy for the level of community grant funding. The appropriation of $200,000 has not changed since 2009. May 25, 2021 Page 5 Staff recommended that the greater of: an appropriation of $200,000, or 6% of prior year's hotel motel tax revenues rounded up to the nearest thousand. Mr. Stiffler listed the benefits to this recommendation by stating: • Based on 2019 actuals, the amount appropriated for community grants would increase about 10%; • Similar to other appropriations made from hotel motel taxes (35% to Visit Dublin Ohio, 25% to Dublin Arts Council, 6% to Community grants); • Allows hotel motel revenues to recover prior to increasing the appropriation without reducing the funding for community grants; • The percentage can be reviewed regularly and modified as necessary; and • City Council would review this appropriation annually as part of the budget process. Ms. Alutto stated that there is an increase of heads in beds is to these events. $200,000 today is not worth the same amount of money as $200,000 in 2009. She stated that she feels an increase is overdue. Ms. LeRoy stated that she does expect events to go up when Riverside Crossing Park opens in the coming years. Mr. Keeler stated that $200,000 seems a little short. He would like to ratchet it up a bit and then from that point forward indexing it as staff suggested in future years. Ms. Alutto suggested starting at $225,000 and then indexing it from there. Mr. Stiffler recommended the index to be 6,5%. Ms. Alutto will take this recommendation to City Council. The next Finance Committee meeting is scheduled for 3une 7, 2021 at 4:00 p.m. There being no further business to come before the Committee, the meeting was adjourned at 5:04 p.m. Ct Cl of uncil