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February 24, 2003 Page 63 (3) Funds "not expended, obligated, or reserved, as approved by the County, shall be remitted to Cabarrus County for its use." Mr. Day stated these three passages address apparent misconceptions currently being discussed in the community. First, he said the purpose of the occupancy tax proceeds is not to ~put heads in beds" and there is no mention of filling hotel rooms in the legislation. Second, Mr. Day stated the Tourism Authority budget has not been submitted for Board approval since FY 1995 through an oversight that needs to be rectified at this time. Third, Mr. Day advised that since the County Commissioners never approved a capital reserve for a convention center (or any other purpose), the law requires the fund balance accumulated at the end of last fiscal year to be submitted to Cabarrus County. He reported staff had worked with CVB staff as directed by the Board in January to develop a budget for the fund balance that has accumulated in the Tourism Authority trust fund. Mr. Day said a tentative budget that included funding for a marketing analysis, grant program, sports marketing and operating reserve was developed and scheduled for discussion by the Tourism Authority at a meeting last week. However, the Tourism Authority Board met at that time with its attorney (Gerry Hancock) concerning the use of the occupancy tax revenue. Finally, Mr. Day disagreed with Attorney Hancock's interpretation that the Tourism Authority controls the use and disposition of the proceeds from the additional two percent occupancy tax enacted in 1998. Mr. Hartsell clarified that the Resolution adopted by the Board of Commissioners in 1998 raised the occupancy tax from three percent to five percent, but was silent as to what the additional revenue would be used for. Although there had been discussion at that time regarding a possible convention center in Cabarrus County, he stated the Board cannot adopt something by implication and that action only occurs when the Board takes affirmative action in a manner. Mr. Cox stated the Tourism Authority Board adopted a Resolution in 1998 supporting the levy of the additional two percent occupancy tax and designating the use of the additional tax revenue for a convention center. There was lengthy discussion by the two boards regarding the proceeds from the occupancy tax revenue and legal responsibilities concerning the use of those funds. Issues addressed included the following: (1) budget approval process for the CVB; (2) legislation governing the use of occupancy tax revenue; (3) possible interest by local hotel owners to increase the occupancy tax to six percent with the additional funds used to establish a grant program to encourage tourist-related activities; (4) the importance of tourism in Cabarrus County; and (5) hiring of an attorney by the Tourism Authority Board to advise them on the use of the occupancy tax revenue. Mr. Howard outlined concerns regarding recent events and discussions regarding the use of the occupancy tax revenue. He stated the Tourism Authority had hired an attorney because it wanted to make sure that the funds are used as originally intended. Further, Mr. Howard stated the two boards have established that there is a difference of opinion and suggested that representatives of the Tourism Authority meet with the Interim County Manager, County Attorney, and one or two County Commissioners to discuss this matter. UPON MOTION of Vice Chairman Suggs, seconded by Commissioner Carruth and unanimously carried, the Board appointed Chairman Freeman, Commissioner Carpenter, John Day and Fletcher Hartsell to a committee to meet with representatives of the Tourism Authority (Convention and Visitors Bureau) to come up with a solution concerning the use of the occupancy tax revenue. Mr. Day reported that five hotels are delinquent in submitting occupancy tax revenue to Cabarrus County. Ms. Dubois stated that, on the advice of the County Attorney, she would be sending letters by certified mail to the five hotel owners who are delinquent in submitting the occupancy tax revenue. In those letters, she will explain a change in the penalty violation and give the owners ten days to respond or appropriate collection procedures as provided by law would be carried out. Adjournment UPON MOTION of Commissioner Privette, seconded by Commissioner Carruth and unanimously carried, the Board adjourned the meeting at 9:03 p.m. Clerk to the Board