Requested Agenda Date:
9/13/2022
Requested Agenda Title:
Title
Budget Adjustment: Mayor’s Finance and Administration Requests a Budget Adjustment to True Up the Incremental Property Tax Pass Through Amount that the County Remits to the Convention Center Hotel.
Body
Requested Agenda Item Description: As previewed in the Mayor's June budget presentation (see attached slide), this adjustment increases the contractually-required expenditure and revenue (see attached agreement), based on the updated 2022 taxable value of the Convention Center Hotel and the proposed tax rate (see calculation below).
2022 Taxable value: $100,453,900 * 2022 Proposed tax rate: .010537 = $1,058,483
The tax rate will be final in mid-September, the additional $41K+ in the budget provides a buffer for any related changes. We are also adjusting the budget to use more appropriate accounts for the situation.
Per the agreement, the Treasurer pays the collected property taxes to the County, and, if no holdback by the SLC RDA to pay prior bond holders (highly unlikely to occur), the County then remits the same amount to the hotel owner. The future year adjustment is due to an anticipated increase to the hotel's taxable value in 2023.
Requested Action: Discussion - Vote Needed
Presenter(s) (with titles): Hoa Nguyen, Council Budget and Policy Analyst
Time Needed: 5 MINS
Is this Item Time-Sensitive and/or Requesting a Time-Certain? No
Requesting Staff Member: Greg Folta, Director of Finance and Payroll
Are Supporting Documents Needed for this Agenda Item Request? Yes