Atlanta Georgia

2009 FINANCIAL PLAN NARRATIVE

The revenue in the Financial Plan for 2009 is decreasing 3.2% over our forecast for the year ending 12/31/2008. For 2009, City of Atlanta hotel tax collections are projected to another decrease 2.6% over 2008’s current year-end forecast. Private sector revenues for 2009 are projected to decrease only by 1.3 percent over 2008 year-end forecast.

Payroll and related expenses are projected to decrease 5.5% during 2009 over 2008's forecast. This is due primarily to existing attrition, a 60-day wait period in 2009 on filling any vacancies and some benefit reductions/adjustments. All salaries are currently frozen through 2009 for this plan.

Operating expenses are decreasing 9%.

Direct promotional expenses are increasing 2.0%.

Capital expenses are increasing 1.3% primarily due to depreciation expense

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