City staff updated the City Council Monday on the state of the Hotel/Motel Fund. As expected, local hotel occupancy has been low in recent months and projected hotel/motel tax revenue for Fiscal Year 2019-20 is expected to be $1.8 million (44 percent) less than originally budgeted. Eisemann Center revenue is down by $1.1 million since it has been unable to host events since early March.
Though the reduction has been offset significantly by reserved funds and reduced operating expenses, there are many unknowns going forward, including future hotel occupancy, and the willingness/ability of audiences to attend events and performing arts organizations to perform at the Eisemann Center. To work with these unknowns, “multi-year recovery strategies” are planned, including:
- Carefully monitor hotel/motel occupancy tax trends
- Suspend “Eisemann Center Presents” programming for 2020-21; holding only a few events that already have a strong following
- Conservatively budget hotel/motel occupancy tax and Eisemann Center revenue
Staff will have final projections ready for the City Council’s budget workshop July 27-28.
Video: https://richardsontx.swagit.com/e/07132020-937/6/
