Table Of ContentSAN FRANCISCO PUBLIC LIBRARY
3 1223 07805 8626
CITY AND COUNTY OF SAN FRANCISCO
BOARD OF SUPERVISORS
DOCUMENTS DEP"
BUDGET ANALYST
1390 Market Street, Suite 1025 San Francisco, CA 94102 (415) 554-7642 MAR -6
FAX (415)252-0461 2
SAN FRANCISCO
PUBLIC LIBRARY
V
s
January 2008
9,
Ammiano
>or
Analyst
iding
San Francisco PublicLibrary
request, the Budget Analyst completed this report in
Government Information Csnter
requested hearing on the City and County funding ofthe
San Francisco Public Library
100Larkin Street, 5th Floor , FY 2006-2007, and FY 2007-2008 (File 07-1210).
BanFrancisco, CA 94102
tgs and Recommendation
REFERENCE BOOK
inds that although funding for the arts has increased by
ximately 18 percent, since FY 2005-2006, changes to the
Nor to be taken from the Library illocations established pursuant to the City's Business
s Code have resulted in (a) less Hotel Tax revenue
rts, tourism, and affordable housing and (b) more Hotel
iated to the City's General Fund for discretionary use.
Specifically, beginning in FY 2003-2004, and every fiscal year thereafter, the
Hotel Tax allocations, as specified in the City's Business and Tax Regulations
Code, have been amended through the City's Administrative Provisions ofthe
Annual Appropriation Ordinance (AAO). As a result, since FY 2005-2006,
there has been an average annual decrease of $25,171,974 in Hotel Tax
revenue appropriated to the arts, tourism, and affordable housing - all of
which has been appropriated to the City's General Fund for discretionary
use.
Further, since FY 2004-2005, the Administrative Provisions of the AAO have
dditionally required that all Hotel Tax revenues collected in excess of the
D Dpropriated amounts be transferred to the City's General Fund. As a result,
REF
353.77
Sa523a
CITY AND COUNTY SLMviMBl OF SAN FRANCISCO
)Z\
BOARD OF SUPERVISORS
DOCUMENTS DEF
BUDGET ANALYST
1390 Market Street, Suite 1025 San Francisco, CA 94102 (415)554-7642 M..A.Kp "°R ,
FAX (415)252-0461 '
SAN FRANCISCC
PUBLIC LIBRARN
January 2008
9,
TO: Supervisor Ammiano
FROM: Budget Analyst
SUBJECT: Arts Funding
In response to your request, the Budget Analyst completed this report in
preparation for your requested hearing on the City and County funding ofthe
arts in FY 2005-2006, FY 2006-2007, and FY 2007-2008 (File 07-1210).
Summary of Findings and Recommendation
The Budget Analyst finds that although funding for the arts has increased by
$10,349,071 or approximately 18 percent, since FY 2005-2006, changes to the
Hotel Tax revenue allocations established pursuant to the City's Business
and Tax Regulations Code have resulted in (a) less Hotel Tax revenue
appropriated to the arts, tourism, and affordable housing and (b) more Hotel
Tax revenue appropriated to the City's General Fund for discretionary use.
Specifically, beginning in FY 2003-2004, and every fiscal year thereafter, the
Hotel Tax allocations, as specified in the City's Business and Tax Regulations
Code, have been amended through the City's Administrative Provisions ofthe
Annual Appropriation Ordinance (AAO). As a result, since FY 2005-2006,
there has been an average annual decrease of $25,171,974 in Hotel Tax
revenue appropriated to the arts, tourism, and affordable housing - all of
which has been appropriated to the City's General Fund for discretionary
use.
Further, since FY 2004-2005, the Administrative Provisions of the AAO have
additionally required that all Hotel Tax revenues collected in excess of the
appropriated amounts be transferred to the City's General Fund. As a result,
Memo to Supervisor Ammiano
January 2008
9,
Page 2
in FY 2005-2006 and FY 2006-2007, an average of $13,263,142 in additional
Hotel Tax revenues were transferred to the City's General Fund for
discretionary use.
The Budget Analyst recommends that ifthe practice ofreallocating Hotel Tax
revenue for discretionary General Fund purposes through amendments to the
Administrative Provisions of the AAO continues to be the ongoing policy of
the Board of Supervisors, the Board of Supervisors should amend City's
Business and Tax Regulations Code in order to make the Code consistent
with the Administrative Provisions ofthe AAO.
Background
On December 15, 2004, the Board of Supervisors approved Resolution No.
0781-04 which established a San Francisco Arts Task Force1 for the purposes
of making recommendations to the Board of Supervisors and the Mayor on
whether and how to update or restructure the various elements of the City's
arts agencies, programs, and policies to better achieve the goals of:
(a) Sustaining and stabilizing community-based not-for-profit arts
organizations;
(b) Building upon the City's creative workforce and existing arts economy
to increase employment and leverage new economic opportunities;
and,
(c) Expanding City resources for low and moderate income housing and
affordable studios and workspaces to help retain artists in San
Francisco.
In March of 2006, the San Francisco Arts Task Force submitted a report to
the Board of Supervisors and the Mayor which (a) identified funding
appropriations made in FY 2005-2006 to eight City departments and agencies
to support the arts, (b) detailed Hotel Tax allocations from FY 2001-2002
through FY 2005-2006, and (c) provided 20 recommendations to improve the
structure, programming, and funding ofthe arts in San Francisco.
'Pursuant to Resolution No. 0781-04, the San Francisco Arts Task Force is comprised of34 individuals
who represent the fiscal and artistic diversity of San Francisco's art industry including, (a) 21 voting
members and (b) 13 non-voting members. Ofthe 21 voting members, (a) one member was appointed by
each member ofthe Board ofSupervisors, for a total of 11 members, (b) five members were collectively
appointed by the Board ofSupervisors, and (c) five members were appointed by the Mayor. The 13 non-
voting members were comprised of specified representatives from City departments and agencies, the
Mayor's Office, and acharitable foundationthatprovides fundingforthearts.
3 1223 07805 8626
Memo to Supervisor Ammiano
January 2008
9,
Page 3
The Arts Task Force report identified funding to the following City
departments and agencies in their determination of funding for the arts in
FY 2005-2006:
• Arts Commission (ARTS);
• Asian Art Museum (AAM);
• Fine Arts Museum (FAM);
• War Memorial and Performing Arts Center (WAR);
• Grants for the Arts, under Administrative Services Department
(ADM);
• Entertainment Commission, under Administrative Services
Department (ADM);
• Airport Arts Program, under Airports Commission (AIR);
• Film Commission, under Department of Economic and Workforce
Development (ECN);
• Museum of the African Diaspora, Yerba Buena Center for the Arts,
and the Zeum, under the San Francisco Redevelopment Agency
(SFRA).
For the purposes ofthis report, the Budget Analyst notes that funding for the
arts in FY 2005-2006, FY 2006-2007, and FY 2007-2008 is inclusive of
funding allocated to and revenue generated by the City departments and
agencies for arts-related programs and activities identified in the March 2006
San Francisco Arts Task Force report.
Although we include the aforementioned City departments and agencies
identified by the Arts Task Force in our analysis of funding for the arts in
fiscal years 2005-2006, 2006-2007, and 2007-2008, the Budget Analyst notes
that pursuant to Article V, Section 5.100 of the City's Charter, the arts and
culture departments of the City and County of San Francisco are expressly
identified as the Arts Commission, the Asian Art Museum, the Fine Arts
Museum, and the War Memorial and Performing Arts Center.
Funding for the Arts: FY 2005-2006 to FY 2007-2008
Tables I, II, and III below prepared by the Budget Analyst summarize
funding for the arts in San Francisco, as specified, by City department,
program, and source of funds for fiscal years 2005-2006, 2006-2007, and
2007-2008. As shown in the tables below, overall funding for the arts has
increased by $10,349,071, or approximately 18 percent, over these three fiscal
years, from $57,501,727 in FY 2005-2006 to $67,850,798 in FY 2007-2008.
Hotel Tax revenue remains the largest source of funding for the arts in San
Francisco - representing $36,849,059, or approximately 54.3 percent, of the
$67,850,798 in total funding for the arts in FY 2007-2008. Similarly, in FY
2005-2006, Hotel Tax revenues of $31,237,000 comprised approximately 54.3
Memo to Supervisor Ammiano
January 2008
9,
Page 4
percent of total arts funding of $57,501,727. Hotel Tax revenues to City arts
departments and agencies has increased by $5,612,059, or approximately 18
percent, over this three fiscal year period, from $31,237,000 in FY 2005-2006
to $36,849,059 in FY 2007-2008.
In addition to Hotel Tax revenue, several City arts departments and agencies
also receive General Fund support for arts-related facilities, programs, and
services. As detailed in the below tables, General Fund support for the arts
has increased by $3,514,327, or approximately 27.7 percent, over this three
fiscal year period, from $12,666,751 in FY 2005-2006 to $16,181,078 in FY
2007-2008. In FY 2007-2008, General Fund support for City arts
departments and agencies totals $16,181,078 and represents approximately
23.8 percent ofthe $67,850,798 in total funding for the arts in FY 2007-2008.
In comparison, in FY 2005-2006, the General Fund appropriation of
$12,666,751 represented approximately 22 percent of total funding for the
arts of $57,501,727.
Several City departments and agencies also generate departmental revenues
from various fees, concessions, rentals, performances, programs, and
activities to support the arts. Departmental revenues have increased by
$1,212,685, or approximately 13.5 percent, over this three fiscal year period,
from $8,957,976 in FY 2005-2006 to $10,170,661 in FY 2007-2008. In FY
2007-2008, departmental revenues of $10,170,661 comprise nearly 15 percent
of the $67,850,798 in total funding for the arts in FY 2007-2008. However,
in FY 2005-2006, departmental revenues of $8,957,976 comprised nearly 15.6
percent oftotal funding for the arts of$57,501,727.
The SFRA also provides fixed annual operating subsidies to arts
organizations located within SFRA project areas including the Museum ofthe
African Diaspora, the Yerba Buena Center for Arts, and Zeum, a multi-media
arts and technology museum. SFRA funding to these arts organizations has
increased by only $10,000, or .2 percent, over this three fiscal year period
from $4,640,000 in FY 2005-2006 to $4,650,000 in FY 2007-2008. In FY
2007-2008, SFRA funding of $4,650,000 represents approximately 6.9 percent
ofthe $67,850,798 in total funding for the arts in FY 2007-2008.
i 11 1 ii i I r 11 1 1 I(
© © © o ©
81oEm 0ooCc©C—mNO9"f C0oolLIoOO9_ S0ClclCi>N0oOHOO eoC©0tu0Ms05so eO©1<C—*Mo (CcOoif-MoJiHt (OoCCCfOMOir (olt1Ct7—~J-O31- 0©©C©C9MO-" 0©©©cC0i9o—O5-" 0©©©Lr9OH-" 0C©©©9M"- 0©©C©©O'9 0C©©©9O"- 000CI0-00N05H 4©i©©l0-MH- «Cial©lCT--NNaOs^HH «CcClL©l9--jOOO"HH-T 0o©0L9O0-* 0CooLlL9OOOO"*- 0©©©©©9*- 0©©©©9*- Cl©Il-N>>H
o o o © © © © ©
0©5 © 0©0 00 ©
tj a. OS Or-S CtM> LO CO © CiO> t> r*H C©O 85
£ o 6eOCSOo9 0-CCtDM9f 0LCL9OMO-" (c1Lfo—Oi"r 0too>9" 0o—91"- 0C01O95—*-_ 00Cr9-M5- 0elc©9og>-"" 0c©com9"" eOctl-SoO»'
EOh ^o f5c 0ooCCOOM9 00<olCLO*N0O9" «0CfMcL1—-0nOOo1' eCCt0trLN>>H0DOo 01oCv9>5S- (ooCcCfmOOi"r (ooolrCfo-Mi"r 0©©©©C9M*- (©©©0cOtf—0oSii"r 0©©©L19O—"- (CCo©fMDi"r C0^CC©t3M5*Ne5 <©©C©©!fN^ir CCCCC0ON^OO0 «CC0©©©L(DO0O9_- 0©©©L0O90_*- 0©©LlLc©9OoOO*-" 0©©©©©©9*- 0©©©©9^"- etorUSrU~HSO*So-d^
Source* "3 ©o ©o Oo ©© ©© ©© ©© ©
© © © eo
c CO oIot" oo" co' LO* o©o" ©"
and E w © qrM 0CM9 0LC9OO- 0i-9H- 0LO9 0L9O-
09-
HBV»
Department
© © © © ©
© © © © ©
< © © © ©
I X 16 LO* ©©" ©" ©©_'
able bgy CO 0090- 0LLC9OOO-" 0©9- 0©•9*-" e©"to
Ti Fundin —av BS oo©rc©Mo CoooroOM_ oo©CD_ O©©ii——_i ©©©0C0O" ©©©o©s" o©©©" ©©©©LO" t©©©C>O_
05 CO CN m
ts ffl 0CrOH9* C6i-9OH- 6r9M" (if—ir 0i9—-i" 0CO9' 09- 000*" eCOo <u0rM)3 CuCEUUU
<©©i©©i "OVB»3 —Es3th 60©L<L9ON0O*- 0olCLO0NO" CC(<rt©f*—MDH*i"1r (oOcOfoSSi"r (ooCC0fMO0i"r ©©r0©L9O--* <©0©©i9—M"- 0©01l©c9m—0O-" 0©©©C-M^9* CCC0cC©c9ooOONO-"" «ee1U©-ooSoH fTBaCB0cl3U3u T-CCncB>hrBM3J>uHl)
<•CioCcss$oC>fO-HdO1t0o!0f © sH r8--CHCBcHBMMOoO O'--aoCrCCaoB<agcrc«mmHOOuuH Eor<HK s<-acC3a0CMuO3O !C-30SoHCiMomm5Onb 1'+o0Ca-33^3O a6'ouou> Tm-ao0U3S3aao3d3 o"o4HrCCC1Sr3-3OUh>ahHH ao'+•HcB0cr>0r3(-3jo3H3Hj>>rro>HS>Ur2.-BcOCBoBorfaC32BpoJJHJt*rrP-o3QB, C*CCccrOjOOuuH rOC<JO CBaoCC<aoBJ-OO< EHCCcBaC3rrrmUuOHHO3 O_I'Cao00fO30M0MSmB3))3t(rM3'-0rOaC0a0CCoacC3r5CM^3H033JDuOH 1ropr4-+cCrcBc0BcC*C3-CqQM5oUHuu3uOMU1 [Sa3C3U oEECMshmOH OHoHQPh rJpoooCm0C50CC3Q3aC>cHC-cG—3fIrnO3Uh1UJuiOjJ, --_•--CB0CC3Bc>Cu0MrcaXmC-CirddM—)U35UuOHuUsJJ,
£h in
03
3 CD ft 3 CO 2
CD QCO O
< 1 5 w 1
•-3 Ph Em CO
1 1 11 1i 11(1 li <<i I 1i 11 i
°1 oMttc-dooM o>oCoDo oi»ccr.-oooo «CC1ltrf-oOMOoH't VC)> l(0ti./-5oO> OoaodO M1^CCX-OO o©oo0-.—c3r- oo©oO©oXi0 0i©©©.—0d rO1C©i.T——O~OO_ O[CCCL-O-OrOOO" 0OX._i——0 rtCC©T~^O'i CXlCi-i-—DO»4H XcIroHS CCCCCerr--MMOOnA3t o©©oLICOMOo" Oc©o©LLloOOOO'' O©©©©oCO'O ©©©©Xl>. 6XoCoeWc1-sOn5»ftf
—4F^*) *Qo4>g)) • <OIoQlX-oOO' 1 0[oNlL-0OO' • t0CCX--0rOO'» • ' • ' OCril—-OOO' OXT©T^f—HO' ©OctLto)>O'» OXtCTr^j-»OHO«H' OXLC-rOOO' OCLCCCc'm*MOOOOO'' • • ' cCCIeMoOOn
« OO eft-
*h3 O^3£O ©C00cSf3m3l o3Clo"Ooo; •»Ctc^ecooHoOoa' COitIlf.OOolO' 0oeCT-t0Dnro- &ooooo ©CCO©©oOOO OoooC1C-—NDfO Oo©ooX©oOf' O©©©L.—OO O1C©LT—OOO' OCCxCCi—MNOOO"i • CxOCO©•*]OM'O' o©©©©l©T—O"o OXLCC.e—OOOnO OLtC0C>OO3OO" OooolCCOMOO" Oc©©oLLLoOOOO'" O©©©oCO'O O©©o©X1"O'' OeCClnMMOS
fa oo eft-
C*-TCCOJ3O "s«3 (A o£oC~TtOh> , ooXoT , , , oo©oo0-) o©"cCo*O' , O©o©LOO . , . o©xc-LorO" ©o©©l-Or" , , , , , , e©ft-
c ,_,' w_; OO OO OO 00-
OO
0)
g .8 2
8h u
C&O a
1—1 "0) , , , , . , , . , . , , , . , , , . ©©© ©©© ©©© ©©© o©©d
LO" LO' o©" ©X' X
if fa LO
Cfl OCOO LO OCOO t*-
co'
OO oo eft-
-c a co© , o©o ooo , , , . ©©© ©©© . , , , ©o© , ©©© ttL--O , , , , w
"3 *3 O0Cn0O 0X003 oCXTi lCCOO> ©X©' C1e—-n' cCoO' tCe>On cCMo f(3S10h) c0o)i
<0S9h K oC^HOo oc1—oo' eo- OO OOJO OcoO' O-*O' OcoO" eCfOt- T+alJ CUS>Dh
tOC©©'•N^£ OVa« fsSa • oICto0lfOo)Ooi" ooLecoloOnOo' tetCoot-oe~Oof'- • otoC"*0oD#3o e©©©©\a"o o©o©©C1r—Oo'A 1 OC1tT©LrO—>fOHO' OCCcCi!o—MMOOO" • Oc0COCLco3MOO-JO' O©©©©©COO" OCCL©LLTO—OOOOO" • eC"1!T-fM^^nH -0rCi0co/L33l)iT-40SCS3a3-h)hJ1
eft 033 COUh
•<•w2<.oCcBaSOC--fOhKIl c&T VO <N faauohai <a'csXa«Sfo-m. ''a03o£ocC3cSc«35hD EOsQ<- 1<.0S3c«3a2j3u C<Ib's«ououSei <•0aoauaa] ob®oUaou> w<o'oo30>3s3oc3.aewu3g ow"o1Ea«>33Q. C>fl>o--fa0cuco>coa333^3ut>Ou3h CCC0C(O-OO)P. 1oC<O O&'aoCo3c33HoO 33QC3C03JOO) Ol1'C3o0C3oacJ0f(a5Puh3iHO3- p%-CC0OfC030C0O333wDO3O33J3t <hoP-Cc43C0ac30SCSS2QMu1D3u3hUhhO [S33cIu IoHfCaO iHOHPZOS ^Th-0fCC0CCS3r0><Sm1CCaoSHO3/uf1U1ODhihJhB)u1l TTi—+CC0Cr0Ca10OC3aC>SSX-35J-DD3hhUo)J3DD)4
O CO
Mem Janu CbCDOe Qaeg Q< | < 2 1pej En I*n **
&H CO
i ilI1 1 ii1 1 ( (1 1 I 1 j 4
3OH gHQZfIa 6tL©oCii——-OoM© eCcCtCO^O>Oe €^""0rp©li"--o*HJ^tH*" i©oCC<-O#O< VoooleCoOOi^ Loo(iOi--—OMSH" cioooC1—ofO1"} 0CCCrC0C-9NNNON0I- ©Ce01©Co—NN5- e©©oo0Cceom0M""- ©©©LeiO—e" e©C©cCC1o—OOOe" e©tl©CLe>>OO"- eCT©L0i-OM*0eH" ClCClCII4-->M>NO0HH- 0©0oCI-0N0H VCrC©tILl-OM~MOO}*H* 4©CC©0©Cl-MM0M^*^H ©©©o©L09O"- e©©©©llCOOOe"" 0©©©©©©9"- V©©o©L"O}t «Ot©©LC©e-OOO*-
•ff2al *a=v>* ' 1 CC0ele0OOO- oC9oolC9OOO- CoCOicJ-OonDH iooooCfO"} t©c<eix—oo->l"- 1 ' e©©CLOOe" eC©L01O—M0e" eICi©Li--—MOe"HT e0©0©oe00"- e©©©ltO-e" CLe©ClCcm-MMO>e" . • . 1 tl©©©I©l---~^*HHH
«»
tf
* OHH.. How 2zQCf3a et0iL©i——-O0e"l ClfeCLCrO>O>Oe- CIo•"1l1f>——>*©*1t rciiW-——c5~ (CCCoONOOo* e©©©Cli-eOOH-* iC©COCCCfODNNON}" Ci©0©C1f—NNJ} e©ooooCCMooMe*" e©©©L^eOH_"- e©C©cCCoOOOe" ©©I0©«©0O9* V©©©©I©l-O}^*^H VCC©C©lrl--OOO}*fHH ©LB!C0©-OO0>** e©©©©©lO"e e©©©©llcoOOe"" 0©©©©©©9"- ©©o©Lc-*O©<* «©tlCr0C9->OH0O*-*
CoD © © © © © o
S3h *ea23 « sCCCoMMO? . sCC©oMM"? , , . , ©©©©" CCi-MNJ , ©©l—oI" , . . CC©©LMMO" ©©©lO &}
C'fOl — co eII—-elH eir--eHT eCeM- e<*e ee ee ee
a
s. 1
"2h
+j
V
fl
a
I—
-*> , , , , , , , , , , , , , , , . , , ©© ©© ©© ©© ©©
a <! ©©" o©" ©©" o©" ©©^*
B Qo> tf0ia5 e©LOe LlOO e©©e L©HO L©O
co"
ee ee fl»
© ©
.rT2Qa -ndhf3ilnn; !K*_cv*,d fa3a o0o©0Cii—00OB" , oo0c0CLioO00OH"" tooooCM& , , , , eo©©C©cmeM""- eo©ccCc©omoMe"" , , , , e©o©CeoO"- , e©©©cCLmOeM""- (C©l©I0©—OO0"A L©©0©COO0^**
ee ee CO
<Ooo-COmfl ca0)j*a? , %CC0CtfO--O0y &C1clcCO>o^O>} ieolCii*f-o—n>OH}" , i<CCc0<£foMOO0>"} i©©CL©if-DOH} 0©©CCCiC9—NNNO- , i , e©C©cCCro-OOOe"I , , elllc©©o>>Oe" e©©©©©©e" eC©c©ll-oemMOH""- 0©r0l©r-0H0H^*H *CCaC52DD.. "f0aoC^>l))D
<N »
.-S
lO> 03 CO
o a CO Soah C cd
o ><HN ao 4o-a CUaP QC0O3 -CaD > ft
<••ilfcsaohcfs-5-fl*oiHHl 0o0 fe faShua h8o-+e<SCfaS3csnDhOhS o"CC3oac2|(C3a-OOdD1 iEoE9Hh 1a<C3a2CDOO P1uScHboICOaHh«HOe ''ao0>Caa3HO o•6OaoCgL> -o'G3aaaoaaO O*O"+cChCaVHaaj3OD O*Wo'+Ca0>cH3«ajO3,r ©Oc0Hfu3 o-Co>aoaaOuar3aOH>, 1pu3O 1UCC90SOO)h %EOECEHhOH OaoCcaoaaOo <iaCC33CCa5sDOOD *'EoaCa2lD -(-4a0uCOa3CC3ta-H3DDO> .Op-SSCaC0aC30SC2qQhhDD3D3hD a3CD EOEfHHa CHOEQOohOH T®o3 -coC3a0>CS3D)Dhd
CQ of <3 Dh K3 fa fa [S3 CO CD 2
^ a § S 2 a a&«B
O 0f3c r<-u» Q 9 5 f5a3 5 o fa £9 PsH fa *
be
Mem Janu a
Ph
Memo to Supervisor Ammiano
January 2008
9,
Page 8
Hotel Taxes
As shown in Tables I, II, and III, Hotel Tax revenues represent the largest
funding source, or approximately 54 percent, ofall revenues to the arts in the
City. Article 7 of the San Francisco Business and Tax Regulations Code
imposes a 14 percent tax on hotel room occupancy and requires that (a) 6
percent of the 14 percent tax, or 42.9 percent, be deposited in the City's
General Fund for discretionary use and (b) 8 percent ofthe 14 percent tax, or
57.1 percent, be allocated to support the arts, tourism, affordable housing,
and to pay debt service on San Francisco Redevelopment Agency (SFRA)
Hotel Tax Revenue Bonds.2
Specifically, as previously approved by ordinance ofthe Board of Supervisors,
Article 7, Section 515.01 of the San Francisco Business and Tax Regulations
Code established baseline dollar amounts for each designated allocation of
Hotel Taxes and required that these baselines be adjusted annually
beginning in FY 1997-1998 (for most allocations) by the percentage increase
or decrease in actual Hotel Tax revenues compared with the prior fiscal year,
provided that the amount of the annual adjustment did not exceed 10
percent. Additionally, Business and Tax Regulations Code Section 515.2(b)
and Section 11.12 of the Administrative Provisions of the FY 2005-2006, FY
2006-2007, and FY 2007-2008 Annual Appropriation Ordinances (AAO)
authorize the Controller to make adjustments to Hotel Tax revenue
allocations, as may be necessary, based on the debt service requirements for
the 1994 Hotel Tax Revenue Bonds issued by the SFRA.
In accordance with the City's Business and Tax Regulations Code, any
remaining Hotel Tax revenue, in excess of specified allocations and
adjustments, is required to be transferred to the City's General Fund, of
which up to 0.2 percent is appropriated to the Tax Collector to cover
administrative expenses. As shown in Table IV below, the City's total Hotel
Tax revenues have increased by between approximately 5.3 percent to 13.6
percent during fiscal year 2005-2006 through fiscal year 2007-2008.
2According to Mr. Mario Menchini of the SFRA, Hotel Tax Revenue Bonds were issued in
1994, subject to approval by the Board ofSupervisors, the proceeds from which were used to
build a portion of the Yerba Buena Gardens, which include a park, visual arts building,
theater, and a children's facihty on top ofMoscone Center South. Mr. Menchini advises that
the amount of Hotel Tax revenue provided to SFRA mirrors the amount ofdebt service due
and payable in any givenyear.
