2021 City of Shakopee Budget

130

2021 Annual Budget

Lodging Tax

Fund:

Description of Services:

A statutorily allowed 3 percent lodging tax is imposed by the City Council. Once collected, 95 percent is submitted to the Shakopee Chamber and Visitors Bureau (CVB) and 5 percent is retained to defer administrative expenses. This fund accounts for the tax revenue and the expenditures to both the CVB and the city's General Fund for the administration portion of the lodging tax proceeds.

Budget:

Actual

Actual

Budget

Budget

Expenditures by Category Supplies and Services

2018

2019

2020

2021

378,950 378,950

397,273 397,273

415,000 415,000

190,000 190,000

Totals

$

$

$

$

Dedicated Revenues

$

378,950

$

397,272

$

415,000

$

190,000

Expenditures by Category and Dedicated Revenue

$- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000

Supplies and Services Dedicated Revenues

Actual 2018

Actual 2019

Budget 2020

Budget 2021

Key Measures:

6

11

12

13

Actual

Actual

Projected

Projected

2018

2019

2020

2021

Number of Hotels

10

11

12

12

Budget Impact:

A new hotel was added during fourth quarter of 2019. In the first quarter of 2020 another new hotel was added to the lodging tax collection. In 2018, lodging tax receipts and corresponding payments to the Shakopee Convention & Visitors Bureau were moved out of the General Fund and into a separate special revenue fund in 2018. Lodging tax was hit hard with the coronavirus pandemic resulting in a decrease in revenues of about half. We continued this decreased revenue and expenditures for 2021 as we are not sure when the lodging will be back to previous levels.