Budget Primer: The Bed Tax Fund

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The bed tax fund is created from a 6% tax on hotel room bills.  Towns can use this fund for tourisim and economic development purposes.  Total revenues from this source are estimated to be a bit more than $782,000 in 2012-2013

The fund pays for a variety of items. The following are include in the budget:

• Three economic development department personnel: $231,126
• Economic development department operations: $180,536
• Economic development marketing: $60,000
• $194,810 transferred to the aquatic center.  Some of this, approximately $177,000 is being used to fund increased personnel to operate the aquatic center. The remainder is being used to pay for the interest on the bonds in January 2013 of $18,603.

There is one item, subject to check, that should have been included in this budget.

• The town's contributions to MTCVB, TREO and or Oro Valley Chamber of Commerce for a total of $149, 981

In addition, the ending balance of the fund of $311,301 has been depleted via a $300,000 transfer to the aquatic fund to cover some of the pool reconstruction overrun.  This is in addition to the $500,000 that was transferred in 2011-12 to fund the aquatic center construction.

So, it is relatively easy to see that....

The bed tax fund is, in reality, the "workhorse of the aquatic fund." This is because the bed tax fund has been and will be used over the years to service the substantial debt incurred to rebuild the facility and to operate the facility.

Our next posting will be about the aquatic fund.
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