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FY 2010/2011 Budget Summaries <br />Revenues: <br />The CCTA receives 98.5% of its revenue through a 6% Occupancy Tax levied on guests who <br />stay in Cabarrus County Hotels. This tax rate is not expected to change in FY 2010/2011. The <br />last rate increase was in April 2008 when the rate was increased from 5% to 6%. <br />Occupancy Tax: <br />Forecasted FY 2009/2010 3,092,060 <br />FY 2010/2011 3,318,617 <br />Occupancy Taxes are budgeted to increase 7.3% in FY 2010/2011. Occupancy Tax revenues <br />are based on the following assumptions: <br />• New properties: Hilton Garden Inn opened in March of 2009 and Country Inn and <br />Suites will open in May 2010. Non comp. revenue that will be recognized from these 2 <br />properties will be $133,797. <br />• Existing hotels Occupancy tax forecasts are fora 3% increase. In FY 2009/2010 three <br />new hotels came online and added 656 rooms to the current inventory. Due to this <br />increase in total rooms and the economy Occupancy %'s year over year was -15.9% in <br />2009 and Revenue Per Available Room was -19.7%. Even those these numbers were <br />down overall demand was up 5.4% in 2009 and all of the Occupancy indicators have <br />stabilized and moved into a positive category in the last few months. <br />• Occupancy tax Revenue received in July 2010 from June 2010 occupancy will be <br />accrued back into June 2010 for FY 2009/2010 accrual statements. <br />Other Revenue: <br />• Other revenue of $52,499 includes Advertising Cooperative opportunities, interest on <br />investments, and retail sales in the visitor center. There will be an increased emphasis <br />on Cooperative Advertising with hospitality partners through ad placements and other <br />marketing opportunities. <br />Attachment number 1 <br />F-1 Page 58 <br />