HomeMy WebLinkAbout1992-150 TOT Cap AgreementMEMORANDUM OF AGREEMENT
This agreement is entered into this ~day of ~
1992 between the Mayor and City Council-of the City oT~-f ~s~nd
and the Ashland Lodging Association (ALA).
(CITY)
WITNESSETH
WHEREAS, the CITY approved an increase in the Transient Occupancy Tax
to 7% effective July 1, 1992; and
WHEREAS,
the ALA is concerned about this increase and the prospect of
future increases, and has indicated its intent to file either
a referendum or initiative; and
WHEREAS,
it is the desire of both parties to avoid the disruption of
city services and to allow more public input into future
increases in the tax.
AGREEMENT
The ALA agrees to not pursue a referendum on the recently approved
increase to 7% in the tax, or a proposed initiative to limit the tax
to 8% without a public vote and a corresponding allocation formula,
provided this Memorandum is approved by the Mayor and City Council.
The CITY agrees that it will refer a measure to cap the tax at 7% and
subject further increases to a public vote, and that said referral to
the voters of the above measure will be at the first possible election
date following approval of the 1993-94 budget (presumably June 30,
1993).
The CITY further agrees that the tax will not be increased beyond the
current 7% between the present time and the public vote on the
proposed measure.
ASHLAND LODGING ASSOCIATION
by:
President
by:
Secretary
CITY OF ASHLAND
by catherine M. Golden
Mayor
At test .' ~:~:~ ~~
Nan E. Franklin
City Recorder
(d: \revenue\t ransocc. ~ ax )
~'.'.~qu~d to the "Memo of Agreement" entered into by O~e Ashland Cl~y
and" ' qhland Lodging Association, it ts my opi~ion that s~
,~ w~,,e not legally binding per se, is moraJly btading upon t?;~
and £uture members of file City Council to uphold and abide
oi~ the agircement, wi:ich majgr pro:zlsions, in geoer~, arc
Set and l~mit the transient occupancy tax at 7% (seven
percent) effective July 1, 1992,
2. Any increases in the transient Occupancy tax above 7%
[seven percent) mu;t be approved by the voters of the City c~f
not having the legal status of an ordhmnce, it woukt still req~Ji~ ,?,
;t the City Council to change or void this agreement,