HomeMy WebLinkAbout2019-03 Allocating Anticipated Transient Occupancy Tax Page 1 of 2
RESOLUTION NO. 2019-03
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND
ALLOCATING ANTICIPATED TRANSIENT OCCUPANCY TAX
TOURISM RESTRICTED REVENUES FOR THE BIENNIUM 2019-2021
BUDGET AND REPEALING RESOLUTION 2018-33.
5 RECITALS:
A. That the City of Ashland collects a Transient Occupancy Tax (TOT)pursuant to Ashland
6 Municipal Code 4.24. Revenues from the Transient Occupancy Tax are used to fund general
7 governmental expenses, economic development, tourism promotion and related infrastructure
and the City's Economic, Cultural, and Sustainability Grant program.
8 B. The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of the City
g of Ashland's total Hotel/Motel tax revenues were expended on tourism promotion, as defined
in ORS 320.350.
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C. ORS 320.350 requires 70% of any increased TOT revenue generated by tax rate increases
11 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%:
13 • A minimum of 14.23% of the estimated TOT revenue generated by the original 7%tax
rate for tourism promotion per ORS 320.350 and,
• A minimum of 70% of the estimated TOT revenue generated by additional tax rates
i5 approved by Council on June 3, 2008 consistent with ORS 320.350.
16 E. Appropriations for the Tax Rate increase of one percent on August 1, 2018 are based on
projected collections and allocated as follows:
17 • 70% of the estimated TOT revenue generated by the additional 1%tax rate for long term
18 parking supply pursuant to ORS 320.350 and,
• 30% of the estimated TOT revenue generated by additional 1%tax rate.
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THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
2° SECTION 1.
21 For the Biennium 2019-2021,the City of Ashland expects to budget an estimated$6,552,738 for
Transient Occupancy Tax collections. The annual allocation between tourism and general
22 governmental operations is as follows:
23 TOT Anticipated Revenues % of Total FY 2019-20 FY 2020-21
Tourism Restricted(ORS 818) 29% 949,884 949,884
24 General Government Operations 71% 2,326,485 2,326,485
2 5 TOTALS 100% $3,276,369 $3,276,369
26 Tourism Allocation
27 Tourism restricted funds will be allocated as follows:
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Resolution No.2019-03 Page 1 of 2
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Tourism Restricted TOT Allocation 2019-2020 2020-2021
1 TOTAL Tourism TOT 949,884 949,884
2 Long Term Parking Supply(70%of 1%increase in 2018)
3 Visitor& Convention Bureau–Chamber of Commerce 446,338 446,338
Oregon Shakespeare Festival 110,000 110,000
4 City Economic, Cultural, and Sustainability Grants
5 Public Art
Other City Tourism eligible Capital Projects
6 Restricted TOT–Not Yet Allocated 393,546 393,546
TOTAL RESTRICTED TOT $949,884 $949,884
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8 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
o determined by Council.
Non Tourism Allocation
11 The remaining estimated TOT revenue allocated for general government operations will be
12 100%appropriated through the budget process. Unrestricted TOT revenue unspent in a budget
year becomes part of the General Fund unrestricted ending fund balance unless otherwise
13 determined by City Council.
14 Unrestricted TOT Allocation 2019-2020 2020-2021
TOTALS $2,133,571 $2,133,571
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16 SECTION 2. Resolution 2018-23 is repealed upon passage of this resolution.
17 SECTION 3. This resolution was duly PASSED and ADOPTED this i ►fit" , day of
t'kr„r-rl—. , 2019 and takes effect upon signing by the Mayor.
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19 � 1 l
20 `Melissa Huhtala, City Recorder
21 SIGNED and APPROVED this 217' day of Jfi-t , 2019.
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Reviewed as to form: Job Stromberg, Mayor
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26 l avid Lohman;City Attorney
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Resolution No.2019-03 Page 2 of 2