Title
A Resolution authorizing the abandonment or partial abandonment of several 2020 Lodgers and Auto Rental Tax (LART) projects and contracts totaling $3,488,711 and the transfer of LART funds in the amount of $90,000 to three additional projects and events recommended by the LART Citizen Advisory Committee, with the remaining $3,398,711 reserved for expenditure budget reductions necessitated by the projected LART revenue loss due to COVID-19 impacts on the lodging and auto rental industries
Presenter:
Charae McDaniel, Chief Financial Officer
Laurel Prud'homme, LART Citizens Advisory Committee Chair
Body
Summary:
In March, 2020, the COVID-19 pandemic and stay at home orders instituted in the State of Colorado, and nationally, caused the closure of non-essential business, which resulted in a dramatic impact on the lodging and auto rental industries. This caused a sharp decline in the forecasted LART revenue in 2020. The LART fund revenue is expected to fall short of budgeted revenue by approximately $4.7 million, a 57% reduction. To balance the budget, in combination with the use of available fund balance, the expenditures need to be reduced to stay within the anticipated revenue. Also, as a result of the impacts of COVID-19, several projects and events that had been recommended by the LART Citizen Advisory Committee (CAC) and approved by City Council as part of the 2020 Budget Appropriation (Ordinance No. 19-87 approved on December 5, 2019), have been canceled or postponed. The LART CAC has also proposed reducing funding for certain events and projects that are scheduled for later in 2020 or occur throughout the year, as well as proposed reductions of the four contracts funded by LART, as measures to reduce the expenditures.
This resolution abandons or partially abandons several projects and events, along with reducing the four contracts, totaling $3,488,711, as shown in Exhibit A. The resolution also transfers LART funds to three additional pr...
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