HomeMy WebLinkAbout2017-03 Allocating TOT 2017-19 & Repealing 2015-04
RESOLUTION NO. c ta► "7 _ 3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND
ALLOCATING ANTICIPATED REVENUES FROM THE TRANSIENT
OCCUPANCY TAX FOR THE BIENNIUM 2017-2019 BUDGET AND
REPEALING RESOLUTION 2015-04
RECITALS:
A. That the City of Ashland collects a Transient Occupancy Tax (TOT) pursuant to Ashland
Municipal Code 4.24. Revenues from the Transient Occupancy Tax are used to fund general
governmental expenses, economic development, tourism promotion and related infrastructure
and the City's Economic, Cultural, and Sustainability Grant program.
B. The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of the City
of Ashland's total Hotel/Motel tax revenues were expended on tourism promotion, as defined
in Chapter 818 of the 2003 Oregon Laws.
C. Chapter 818 requires 70% of any increased TOT revenue generated by tax rate increases after
2003 be committed to tourism promotion.
D. Appropriations for tourism promotion are based upon the following percentages established
in FY 2009-10 when the rate was increased from 7%-9%:
• A minimum of 14.23% of the estimated TOT revenue generated by the original 7% tax
rate for tourism promotion per Chapter 818 and,
• A minimum of 70% of the estimated TOT revenue generated by additional tax rates
approved by Council on June 3, 2008 consistent with Chapter 818.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1.
For the Biennium 2017-2019, the City of Ashland expects to budget an estimated $5,875,900 for
Transient Occupancy Tax collections. The annual allocation between tourism and general
governmental operations is as follows:
TOT Anticipated Revenues % of Total FY 2017-18 FY 2018-19
Tourism 26.67% 770,070 797,033
General Government Operations 73.33% 2,117,330 2,191,467
TOTALS 100% $2,8879400 $299889500
Tourism Portion
Tourism restricted funds will be allocated as follows:
Tourism Restricted TOT Allocation % of 2017-2018 2018-2019
Tourism
Chamber of Commerce - Visitor & Convention Bureau 56% 431,239 446,338
Oregon Shakespeare Festival - (14.3% & 13.8%) Fixed 110,000 11000
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City Economic, Cultural, and Sustainability Grants 10% 7707 79,703
Public Art 3% 23,102 23,911
Other City Tourism eligible Capital Projects Remainder 128,722 137,080
TOTALS $7709070 $797,033
If actual tourism specific TOT revenue collections exceed 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 qualifying future Tourism related expenditures as
determined by Council.
Non Tourism Portion
The remaining estimated TOT revenue allocated for general government operations will be
100% appropriated through the budget process to fund the Economic Development program and
Economic, Cultural, and Sustainability Grant program as specified below and other uses as
directed by Council.
Unrestricted TOT Allocation % of 2017-2018 2018-2019
Unrestricted
City Economic Development Program 8% 175,000 18500
City Economic, Cultural, and Sustainability Grants 7% 15000 15000
General Fund - General Governmental Operations 85% 1,792,330 1,856,467
TOTALS $291179330 $291919467
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 2. Resolution 2015-04 is repealed upon passage of this resolution.
SECTION 3. This resolution was duly PASSED and ADOPTED this , day of
2017 and takes effect upon signing by the Mayor.
r
Barbara Christensen, City Recorder
SIGNED and APPROVED this day of .2017.
John Stromberg, Mayor
Reviewed as to form:
David Lo an, City Attorney
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