DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Patricia Muzquiz Cantor
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
Local Contribution related to Major Reimbursable Events
SUMMARY:
An Ordinance authorizing submission of a local contribution in the amount of $41,824.00 to the Texas Governor’s Office in anticipation of reimbursement of up to $303,223.00 for rental concessions related to contractual hosting obligations from the Texas State Events Trust Fund for the American Association of Physicists 2019 Annual Meeting at the Henry B. Gonzalez Convention Center. Funding in the amount of $41,824.00 is available in the Convention and Sports Facilities State Reimbursement Fund Adopted Budget.
BACKGROUND INFORMATION:
The Events Trust Fund Program created through statute, Vernon's Texas Civil Statutes 5190.14, provides municipalities and counties the opportunity to obtain reimbursement for eligible expenses related to hosting and attracting high-visibility, high-tax impact events to the State of Texas that could otherwise have taken place outside of the state. The Event Trust Funds may be utilized to pay for eligible expenses such as preparing for an event, conducting an event to include equipment, or pay towards principal and interest used to build or improve facilities to host the proposed event.
The Events Trust Fund applies local and state gains from sales and use, auto rental, hotel and alcoholic beverage taxes generated over a 30-day period from the date of an event or series of events conducted no more than once annually. Reimbursable dollars for these sports events are based on anticipated tax gain for a particular event. In order to obtain reimbursement for eligible expenses, municipalities are required to match funds that are deposited in the Event’s Trust Fund on a ratio of 1:6.25.
The American Association of Physicists 2019 Annual Meeting was held at the Henry B. Gonzalez Convention Center from July 14-18, 2019, with an estimated 4,100 average daily attendance. This event has been approved by the Governor’s Office as eligible under the State’s Event Trust Fund program for reimbursement of up to $303,223 in qualified expenses related to hosting the event.
ISSUE:
This action will authorize the payment of the local contribution share of $41,824.00 to the Texas State Events Trust Fund.
ALTERNATIVES:
If the matching funds are not deposited within the Texas State Events Trust Fund, the City loses its opportunity to obtain reimbursement for eligible expenses related to hosting this event. Lack of financial support for sporting or major events jeopardizes the City's ability to remain competitive in hosting these events in the future.
FISCAL IMPACT:
This Ordinance approves a local contribution in the amount of $41,824.00 to the Texas State Events Trust Fund in anticipation of reimbursement of up to $303,223.00 from the Texas State Events Trust Fund for eligible expenses related to hosting the American Association of Physicists 2019 Annual Meeting at the Henry B. Gonzalez Convention Center. Funding in the amount of $41,824.00 is available in the Convention and Sports Facilities State Reimbursement Fund. Upon receipt of the reimbursement of up to $303,223.00 from the Texas State Governor’s Office, those funds will be deposited back into the State Reimbursement Fund.
RECOMMENDATION:
Staff recommends approval of the local contribution in the amount of $41,824.00 to the Texas State Events Trust Fund to qualify for reimbursement of eligible expenses in an amount up to $303,223.00 related to the American Association of Physicists 2019 Annual Meeting.