HomeMy WebLinkAbout2012-04 TOT FY 2012-13 Repealing 2011-07 - Repealed by 2013-05 RESOLUTION NO. oZ ►� by
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND
ALLOCATING ANTICIPATED REVENUES FROM THE TRANSIENT
OCCUPANCY TAX FOR THE FY 2012-2013 BUDGET AND REPEALING
RESOLUTION 2011-07.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1. That the City of Ashland collects a Transient Occupancy Tax, as outlined in the
Ashland Municipal Code 4.24. Revenues from the Transient Occupancy Tax are used to fund
General Governmental expenses, economic development, tourism promotion and the City's
Economic, Cultural, and Sustainability Grant program.
SECTION 2. The City of Ashland has adopted policies for the grant program. Through the grant
program, the City is purchasing services from non-profits that it might otherwise provide
directly. The grant program has three basic goals:
• Economic Development. The grant program will support the creation, retention, and
expansion of businesses and other ventures that enrich our community by creating goods
and services that provide employment opportunities while maintaining and enhancing the
overall quality of life.
• Cultural Development. The grant program will support increased diversity and
accessibility of the creative arts and cultural opportunities in Ashland for citizens and
visitors both to support the visitor economy and to enrich the quality of life in the
community.
• Sustainability. The grant program will support efforts to ensure Ashland is
environmentally, economically and socially resilient as a community.
SECTION 3.
The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of total
Hotel/Motel tax revenues were expended on tourism promotion, as defined in Chapter 818 of the
2003 Oregon Laws, and will continue to be spent on tourism promotion increased or decreased
annually consistent with the estimated TOT revenues budgeted. Additionally, Chapter 818
requires 70% of any increased TOT revenue generated by a higher tax rate is committed to
tourism promotion.
Appropriations for tourism are based upon the following percentages established in FY 2009-10
when the rate was increased from 7%-9%:
1. A minimum of 14.23% of the estimated TOT revenue to be generated by the first 7% tax
rate for tourism promotion per Chapter 818,
2. A minimum of 706/o of the estimated TOT revenue to be generated by additional tax rates
approved by Council on June 3, 2008 for tourism promotion per Chapter 818.
For fiscal year 2012-2013,the City of Ashland expects to budget $1,995,000 in total Transient
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Occupancy Tax. Those funds are split between tourism and non tourism uses as follows:
Tourism (26.67%of total): $ 532,065
Non Tourism (73.33%of total): $1,462,935
Tourism Portion
Chamber of Commerce VCB - 56% of Tourism funds, estimated for $297,956
FY 2012-2013 as
Oregon Shakespeare Festival—$110,000 of Tourism funds, $110,000
estimated as 21% for FY 2012-2013
City Economic, Cultural, and Sustainability Grant program - 10% of $53,206
Tourism funds,estimated for FY 2012-2013 as
Public Art—3% of Tourism funds, estimated for FY 2012-2013 as $15,962
Other City Capital Projects that qualify or Grants - the balance of $54,941
Tourism funds ,estimated for FY 2012-2013 as
If the actual TOT revenue, dedicated for Tourism, is in excess of the above allocations or if
actual, qualifying expenditures in the year are less than the appropriated amount, the additional
or unused amount(s) will be reserved for future Tourism related projects or Capital
Improvements that qualify per the state definition as determined by Council.
Non Tourism Portion
The remaining estimated TOT revenue (not restricted by use) will be appropriated for other uses
through the budget process with the following priorities and dollar amounts as minimums unless
insufficient tax proceeds remain after meeting tourism requirements:
1st Priority General Fund operations— 80% of Unrestricted funds, $1,170,345
estimated for FY 2012-2013 as
2nd Priority City Economic Development program - 10% of Unrestricted $146,295
funds,estimated for FY 2012-2013 as
3rd Priority City Economic, Cultural, and Sustainability Grant program, the $146,295
balance, estimated for FY2012- 2013 as
Economic Development programs or other projects are City activities unless otherwise specified
by Council prior to the budget process. Council may determine that such funds are available for
granting purposes and they will then be made available for the coming budget process and
allocation.
If insufficient TOT revenues are generated for the above allocations, the highest priority uses
will receive their full allocation before a lower priority allocation. Unrestricted TOT revenue
unspent in a budget year becomes part of the General Fund unrestricted ending fund balance
unless otherwise determined by City Council.
SECTION 4.
Resolution 2011-07 is repealed upon passage of this resolution.
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SECTIO 5. This resolution was duly PASSED and ADOPTED this day of
10JM4 2012 and takes effect upon signing by the Mayor.
Barbara Christensen, City Recorder
SIGNED and APPROVED this !-1 day of lzi ' 2012.
o n Stromberg, Mayor v
Revi ed as to form:
David Lo ian, City Attorney
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