HomeMy WebLinkAbout2013-05 TOT FY 2013-15 Repealing 2012-04 - Repealed by 2015-04
RESOLUTION NO. 09013'OS
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND
ALLOCATING ANTICIPATED REVENUES FROM THE TRANSIENT
OCCUPANCY TAX FOR THE BIENNIUM 2013-2015 BUDGET AND
REPEALING RESOLUTION 2012-04.
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 70% 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 the Biennium 2013-2015, the City of Ashland expects to budget $2,071,100 in 2013-2014
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and $2,143,900 in 2014-2015 in total Transient Occupancy Tax. Those funds are split between
tourism and non tourism uses as follows:
2013-2014 2014-2015
Tourism (26.67% of total): $ 552,362 $ 571,778
Non Tourism (73.33% of total): $1,518,738 $1,572,122
Tourism Portion
2013-2014 2014-2015
Chamber of Commerce VCB - estimated as 56% of Tourism $309,323 $320,196
funds
Oregon Shakespeare Festival - $110,000 of Tourism funds, $110,000 $110,000
estimated as 19.9% in 2013-2014 and 19.2% in 2014-2015
City Economic, Cultural, and Sustainability Grant program - $55,236 $57,178
estimated as 10% of Tourism funds
Public Art -3% of Tourism funds, estimated $16,571 $17,153
Other City Capital Projects that qualify or Grants - the balance of $61,232 $67,251
Tourism funds, estimated as 11.1% and 11.8%
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:
2013-2014 2014-2015
1st Priority General Fund operations - 80% of Unrestricted $1,214,990 $1,257,697
funds, estimated
2nd Priority City Economic Development program - 10% of $151,874 $157,212
Unrestricted funds, estimated
3rd Priority City Economic, Cultural, and Sustainability Grant $151,874 $157,212
program, the balance, estimated
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.
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SECTION 4. Resolution 2012-04 is repealed upon passage of this resolution.
SECTION 5. This resolution was duly PASSED and ADOPTED this S day of
, 2013 and takes effect upon signing by the Mayor.
Barbara Christensen, City Recorder
SIGNED and APPROVED this day of 2013.
Yhnt mberg, Mayor
Review d as to form-
David Lohman, City Attorney
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