HomeMy WebLinkAbout2008-0303 Study Session PACKET
CITY OF
ASHLAND
Important: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit
written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the record is closed,
Except for public hearings, there is no absolute right to orally address the Council on an agenda item. Time permitting, the
Presiding Officer may allow oral testimony; however, public meetings law guarantees only public attendance, not public
participation. If you wish to speak, please fill out the Speaker Request located near the entrance to the Council Chambers,
The chair will recognize you and inform you as to the amount of time aI to you, if any. The time granted will be dependent to
some extent on the nature of the item under discussion, the number ofpeo . ewho wish to be h and the length of the agenda.
CITY COUNCIL STUDY SESSION
AGENDA
Monday, March 3, 2008 at 6:00 p.m.
Council Chambers, 1175 East Main Street
6:00 p.m. Study Session
1. Look Ahead Review
2. Review of regular meeting agenda for March 4, 2008
3. Does the City Council wish to schedule a formal public hearing to consider an
increase in the Transient Occupancy Tax Rate? What additional amount does the
Council wish to consider? How would the City use the revenue generated by the
proposed increase?
4. Does the proposed plan from staff incorporate the steps and timing Council feels
appropriate for the Fiscal Stability council goal?
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting wil/ enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I).
C:01TNC'IL MI:r~]rNC;S AIZE BROADC';\ST'LIVE ON C'lIANNEL 9
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CITY OF
ASHLAND
IrnlJort~~t: Any citizen may orally address the Council on non-agenda items during the Public Forum. Any citizen may submit
written comments to the Council on any item on the Agenda, unless it is the subject of a public hearing and the record is closed.
Excepffotpublic hearings, there isno absolute right to orally address the Council on an agenda item. Time permitting, the
PresidirigOfficer may allow oral tes~m()ny;however, public meetings laW guarantees only public attendance, not public
)Jartici}J~tion. . If you wish to speak, ph~aseftll ()u~ the Speaker Request Jonn locatedllear the entrance to the Council Chambers.
The chair will recognize you andinformyo~a.stothe aJl10unt of time anott~q to you, if anY. The time granted will be dependent to
sOlneextenton the nature ofthe itemundefdiscussioll,thenumber of people who wish tobeheard, and the length of the agenda.
AGENDA FOR THE REGULAR MEETING
ASHLAND CITY COUNCIL
March 4, 2008
Council Chambers
1175 E. Main Street
6:30 p.m. Executive Session - to consult with legal council regarding pending litigation
pursuant to ORS 192.660(2)(h)
7:00 p.m. Regular Meeting
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL
IV. MAYOR'S ANNOUNCEMENT OF BOARD AND COMMISSION VACANCIES
V. SHOULD THE COUNCIL APPROVE THE MINUTES OF THESE MEETINGS?
[5 minutes]
1. Executive Session of February 12, 2008
2. Executive Session of February 19, 2008
3. Regular Council of February 19, 2008
VI. SPECIAL PRESENTATIONS & AWARDS
1. Mayor's Proclamation of International Women's Day
2. RVCOG Annual Presentation
VII. CONSENT AGENDA [5 minutes]
1. Does the Council accept the Minutes of Boards, Commissions, and Committees?
2. Should Council reset the date of the continued SDC appeal hearing from March 4, 2008 to
March 18, 2008 and notify the appellant of the revised date?
3. Should the Council approve the revised First Amendment to the Development and Security
Agreement between City of Ashland, Craig Bramscher and Brammo Motorsports, LLC?
4. Will the Council approve Amendment 1, Addition of Phase II Transit Review and Update in the
amount of $41 ,260 to the HDR Contract for the Transportation System Plan (TSP) Update?
5. Will the Council, acting as the Local Contract Review Board, consent to enter into a public
contract with Health Future for Third Party Administrative Services for Worker's
Compensation?
6. Will the Council approve the first amendment of the contract with Harrang Long, et aI., for
legal representation through the July 2008 trial for the City in the MAA v. City of Ashland case,
in the amount of $160,OOO?
7. Does the Council wish to approve a Liquor License Application from Helena Darling dba
Helena Darling Catering LLC at 1000 Benson Way #1 03?
(()UNC"JL !\/lEETINCiS AItEBROADCAST LIVE ON C!JANNEL 9
VIS1ITHE crrv OF ASrILAND'S \VEB SITE: AI WW\VASrILAND.OR.US
VIII. PUBLIC HEARINGS (Testimony limited to 5 minutes per speaker, unless it is the subject of a
Land Use Appeal. All hearings must conclude by 9:00 p.m., be continued to a subsequent
meeting, or be extended to 9:30 p.m. by a two-thirds vote of council {AMC ~2.04.040})
1. Will Council approve the FY09 Capital Improvement Program (CIP) project list, the FY09
equipment purchases including replacements with hybrid vehicles and conceptually approve
the overall FY09-14 CIP program?
IX. PUBLIC FORUM Business from the audience not included on the agenda. (Total time allowed for
Public Forum is 15 minutes. Speakers are limited to 5 minutes or less, depending on the number
of individuals wishing to speak.) [15 minutes maximum]
X. UNFINISHED BUSINESS
None.
XI. NEW AND MISCELLANEOUS BUSINESS
1. Does the Council want to authorize a contract with Batzer Construction for $298,344.00 to
enclose the existing covered storage electric building located at the 90 N. Mountain Ave.
complex?
2. Does Council have feedback and direction about the current use of the Rogue Valley
Transportation District (RVTD fixed route bus system and the Valley Lift program within
Ashland and staffs budget recommendations for transit funding for FY 2008-09?
XII. ORDINANCES, RESOLUTIONS AND CONTRACTS
1. Does the Council wish to approve first reading of a proposed ordinance to revise AMC
Chapter 2.12, which governs the Planning Commission?
2. Should the Council conduct first reading of an Ordinance titled, "An Ordinance Amending
Chapter 18 of the Ashland Municipal Code, providing for revisions to definitions and zoning
district classifications, providing for revisions to conditional use standards and general
regulations for the following zoning districts: woodland residential, rural residential, single
family residential, suburban residential, low density multi-family residential, high density multi
family residential, North Mountain neighborhood, retail commercial, employment, industrial,
health care services and Southern Oregon University; providing for revisions to chapters for
tree preservation and protection, physical and environmental contraints, general regulations,
site design review, partitions, performance standards option, parking, sign age, procedures
and enforcement, providing also for corrections to and adoption of official maps, including
zoing and overlay maps in digital format"?
XIII. OTHER BUSINESS FROM COUNCIL MEMBERS/REPORTS FROM COUNCIL LIAISONS
1 . Does the Council wish to invite Mount Ashland Association and the Oregon Department of
Environmental Quality to make a presentation about the performance and regulations
related to the wastewater treatment plant at the Mount Ashland Ski Area?
XIV. ADJOURNMENT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this
meeting, please contact the City Administrator's office at (541) 488-6002 (TTY phone number 1-800-735-
2900). Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to the meeting (28 CFR 35.102-35.104 ADA Title I).
COUNCiL MF:FfTNCiS '\RE BRO/\DC';\SI LIVE ()N ('flANNEL 9
VIsrrrrlE (Try or::\sHLAND'S WF'!3 srTF AT \VWW;\SHLAND.(mdUS
CITY OF
ASHLAND
Council Communication
Study Session on Transient Occupancy Tax Increase Discussion
Meeting Date: March 3, 2008 Primary Staff Contact: Lee Tuneberg
Department: Administrative S E-Mail: tuneber1@ashland.or.us
Secondary Dept.: Administratio Secondary Contact: Ann Seltzer
Approval: Martha Benn Estimated Time: One Hour
Question:
Does the City Council wish to schedule a formal public hearing to consider an increase in the Transient
Occupancy Tax Rate? What additional amount does the Council wish to consider? How would the
City use the revenue generated by the proposed increase?
Staff Recommendation:
Staff recommends Council consider the information gathered during two open house meetings where
information was gathered from the public on this topic.
Background:
Council directed staff to gather information from stakeholders and the general public regarding how
the additional revenues generated from an increase in the Transient Occupancy Tax rate should be used
if increased.
Stakeholders were invited to attend one or both of the two meetings. Attendees participated in
roundtable discussions to address the potential for an increase and how the monies could be used.
Specific questions asked of the two groups were:
1) What would be the desired outcome( s) if additional funds were spent on tourism?
2) What would be the best way to spend the additional funds to achieve the desired outcome(s)?
3) What would be the benefits ofleaving the TOT as is?
4) What other information would be helpful for the council to make a well-informed decision?
An over view of the process and answers and comments are contained within the attached memo from
Ann Seltzer, Administration Management Analyst. Ann also provided a summary of the comments
recorded at the meetings held February 14 and 21 as well as an email and written comments received
separately. Also, provided with the overview is other information suggested by participants and
information handed out with the agenda.
Those wishing additional information can consult previous meetings' packets online or request copies
from the City. The September 17, 2007, Council Communication and the current resolution (2007-08)
are attached. Other dates in 20070finterest include but are not limited to, February 6th and March 6th.
Page 1 of2
030308 TOT Discussion.CC.doc
rA'
CITY OF
ASHLAND
This study session is meant to provide Council with information gathered in answer to specific
questions and any other open comments collected.
Related City Policies:
Resolution 2007-08
Council Options:
Council should consider the information provided and advise staff of desired next steps.
Potential Motions:
None for the study session
Attachments:
Internal cover memo dated 2/26/2008 - 3 pages
Public meeting Raw Data Session Notes from 2/14 & 21,08 meetings - 11 pages
TOT in Other Oregon Cities table of info requested by participants - 1 page
Oregon Cities and Counties who have raised the TOT/ORS Language TOT - 1 page
Current TOT in Other Oregon Cities/Estimated Revenue Generated from a TOT increase - 1 page
What We Know/Why Generate New Money -1 page
Ashland Chamber of Commerce/VCB Wish List - 2 pages
Email comments from David RunkellEmail comments from Annie Hoy- 2 pages
Written comments from Dana Bussell
Local Lodging Tax Receipts by Jurisdiction - Dean Runyon Associates - 8 pages
Resolution 2007-08 dated March 23,2007 - 2 pages
Council Comm. - TOT Rate Increase and Use of Proceeds - 9/17/07 excluding attachments - 4 pages
Page 2 of2
030308 TOT Discussion.CC.doc
r~'
CITY OF
ASHLAND
Memo
DATE:
February 26,2008
TO:
FROM:
DEPT:
RE:
Lee Tuneberg and Martha Bennett
Ann Seltzer
Administration
TOT public forum
The City held two public forums to solicit public input on a possible increase to the transient occupancy
tax (TOT).
An invitation letter was mailed to 70 lodging establishments (based on current business license list) in
Ashland, the Chamber of Commerce Board, the VCB Board, Chamber staff, and selected OSF staff and
Board members.
The first public forum was held on Thursday, February 14 from 11 :30 p.m.-l :30 p.m. and twenty four
people attended. The second was held on Thursday February 21 from 4:00 p.m.-6:00 p.m. and nine
people attended. The forums were facilitated by Adrienne Graham of Leapfrog Training and
Facilitation.
After a brief introduction, explaining the City Council is considering a possible increase to the TOT
which would generate new revenue for tourism promotion and funds for economic development,
participants began the round table discussions and were asked to answer four questions:
1) What would be the desired outcome(s) if additional funds were spent on tourism?
2) What would be the best way to spend the additional funds to achieve the desired outcome(s)?
3) What would be the benefits of leaving the TOT as is?
4) What other information would be helpful for the council to make a well-informed decision?
After each table had discussed and answered each question, the responses from each table were shared
with the group and posted on a flip chart. The verbatim responses are attached and summarized below.
1) What would be the desired outcome(s) if additional funds were spent on tourism?
Generally people agreed that an increase in overnight visitor to Ashland during the shoulder season is
the most desirable outcome. Some suggested that a measurable outcome is a percentage increase in
ADMINISTRATION
20 East Main Street
Ashland. Oregon 97520
WJ:LWash!and.orLIS
Tel: 541-488-6002
Fax: 541-488-5311
TTY 800-735-2900
r:.1
room occupancy rates during the shoulder season. Other outcomes included year round employment
expanding the current special events and creating new special events during the shoulder season.
2) What would be the best way to spend the additional funds to achieve the desired outcome(s)?
Generally participants agreed that the best use of the new monies is for increased marketing and
outreach particularly to areas north of Ashland. Some suggested using the funds for targeting
convention business and some suggested a convention site would be desirable but not connected to a
hotel. There was mention of using the funds for improved parking, public art and improving public
transportation (taxi, shuttle services) in order to link the other Ashland attractions (Scienceworks and
Schneider Museum with the downtown). Some believe that sprucing up the downtown is a good use of
funds (cleaning the sidewalks and streets).
It was suggested that a citizen committee of interested parties (lodging, OSF, YCB) work with the
council on the best use of new funds.
3) What would be the benefits of leaving the TOT as is?
This was the liveliest discussion and people voiced concerns and frustrations. Generally people agreed
that an increase to a tax going into a recession was not a good idea. Some commented that tourist
related activities in Ashland (room rates, ticket prices, restaurants) were already high and increasing the
tax adds to those already high costs. Some suggested that visitor might willing pay the increased tax but
might reduce their spending on other amenities (retail and restaurants).
Frustration was expressed that so little money is spent on tourism (14.23%) compared to the amount
generated by the TOT.
Some suggested that leaving the TOT as is makes Ashland more competitive and they don't want
Ashland to have a reputation of burdening visitors with taxes.
4) What other information would be helpfulfor the council to make a well-informed decision?
Participants requested staff provide the council with a chart showing the TOT rate in all Oregon cities
and how other cities allocate the funds.
Some expressed the need for good data research such as whether or not visitors decide to go to a
destination based on local taxes and the demographics of Ashland visitors to determine if an increase
would be a detriment.
At the end of the forum, participants were encouraged to email additional comments. Participants were
assured that all comments gathered during the public forums would be provided to the council and
emailed to the participants. Participants were also advised that the City Council will discuss the TOT
increase the study session on March 3 and they were invited to attend.
ADMINISTRATION
20 East Main Street
Ashland. Oregon 97520
www.ashlQrl!iOfus
2
Tel: 541-488-6002
Fax 541-488-5311
TTY 800-735-2900
r~'
Other concerns expressed during the public forums:
There are lodging establishments in or very near Ashland that are actually in the County and guests at
those locations pay only the 1 % State TOT tax. Some expressed concern that if the TOT were increased
they would lose guests to those establishments.
There was general concern about when the tax increase (if decided) would be implemented. Many
places have already booked business for the next several months. If the new tax were to go into effect
with the new fiscal year in July, the lodging industry would have to communicate with guests who have
already booked and paid a deposit. Some guests might choose to cancel their reservations.
Has the council fully analyzed if the money currently spent on tourism is being spent wisely? Are the
guidelines and criteria for the ECD grants accurate? ECD money is from TOT yet the funds are given to
smaller entities that don't directly draw visitor to Ashland.
Attachments:
· Participant responses during public forum
· TOT and use in other Oregon cities as requested by forum participants
· Invitation letter
· Public Forum handouts including current TOT in Other Oregon cities, estimated revenue from a
TOT increase, Oregon Cities and Counties who have raised the TOT since the 2004 legislation,
ORS language re: TOT, and Chamber ofCommerce/VCB wish list
· Oregon local lodging taxes prepared by Dean Runyan and Associates for Travel Oregon
· Copy of response emails
· Copy of additional comment sheet from public forum
3
ADMINISTRATION
20 East Main Street
Ashland, Oregon 97520
www,ashlandorus
Tel: 541-488-6002
Fax: 541-488-5311
TTY 800-735-2900
r~'
City of Ashland Public Meetings February 14 and 21, 2008
Round Table Discussion on the Transient Occupancy Tax
'Raw Data' Session Notes
Facilitated and Prepared by Leapfrog Troining & Facilitation
QUESTION ONE
What would be the desired outcome(s) if additional funds were
spent on tourism ("bigger pictureU)?
. Consistent and frequent message
o Increase advertising to northern areas
o Education re: off season activities
o A professional marketing firm to promote properly
o Additional funds spent on marketing
o We need to educate-it is also ongoing the value of tourism
o Marketing, research of Business in season
o Telling the story
o Desire to [do] advertisement and marketing; [there just isn't the money]
o Spend on inclusive advertising- Create new reasons for people to come
to Ashland
o Increase name recognition-I didn't know OSF went for nine months
o We have lots of opportunities-promote what we have
o Market regionally. Redding/Eugene
o Web based outreach
o Counter misperception of OSF
. Better funding for Chamber & VCB
o VCB distinguished/separate from Chamber
o Improve/replace Chamber site-handicapped improvements make it
accessible & engaging.
o Chamber activity-food and wine classic romance winter
o Research on where location for new chamber: considering location,
rents, etc.
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
1
o Look at Chamber/VCB wish list
o Better presence of Chamber facilities in downtown
o If we could guarantee the funds would be spent on ideas that have been
on the table for a long time with the Chamber and their organizations to
market then we would have industry support.
o Need our own VCB
o Sales position for VCB and Welcome (Info) Center full time
o Maintain tourism we have-improve what we offer so we do not lose
appeal (permanent offering no matter what time of year, public art, and
beautify city.)
. Increase tourism in shoulder season and dead season
o Increase business "Everybody eat all year"
o Focus on shoulder season
o Bring more business (esp. restaurants)
o Keep more businesses around (survival would be easier without the dead
winter season)
o All around business stability
o Promote increased support to ALL businesses
o Economic stability for retail downtown
o Cohesive development of other tourism activities
. Keep employees year-round
o Increase opportunities for living wage jobs
. Better occupancy rates
o Increase occupancy
o Increase year round occupancy
o Additional nights
o More lodging packages available in January
o Increased percentage of occupancy rates
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
2
. Facilities-Info Center and Convention Center year round
o Convention Center increase group travel
o Convention Center-no hotel/lodging
o Don't think that having a convention center is a good answer especially if
there are more hotel rooms attached
. Increase in TOT tax brought in (improve the cycle of tourism)
o Increase 14% to Tourism & Economy Dev.
. Specialized events that draw overnight/ extended stays in non-summer
months
o Funding for festivals
o Artisan/culinary
. Parking improvements
o Parking
o 1992-Wasn't that for parking
o employee parking supported through business
. More visible thing like public art,
o Make art more visible for tourist attraction/enjoyment
. Stronger required partnerships
o Participate more in SOVA activities
o Work with partners
. Transportation infrastructure improvement-not necessarily downtown
o Public transportation downtown it not the only part of the city
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
3
. Track-able and traceable tax-reporting
o How they allocate the money is not right
o I want to see them get more money for general funds-no way!
o Non profits-grants not right
o The city is not handling the right-don't throw money @ a fixed system
o Give money to larger groups (organizations) that are more effective as
opposed to more money to little groups that may not be able to leverage
the use of it
. Increase #'s for OSF opening weekend
. Lower the age group of tourists
. Provide means of attracting large groups
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
4
QUESTION Two
What would be the best way to spend additional income to
achieve desired outcomes?
. Increase VCB with dedicated sales
. Convention Center: Gets people here not just for OSF or activity
o Convention business
o Convention center
o "Buy convention business."
. Improve parking in & out of downtown
. Green, affordable transportation system
o Infrastructure of tourism: improve taxi, bus, shuttle service invest in
public transportation. Connect varied locations (Science Works, SOU
museum, downtown)
. Increase marketing
o Reach younger audience-Specifically use of Internet and new resources.
o Web based marketing programs
o Full time marketing person (specifically electronic marketing)
o Advertise in AARP (continue growth in baby boomer sector (recognize
their importance)-those who have the time/money/desire to travel).
o Dramatic increase in winter promotions (activities and events to sustain
room rates)
o Marketing efforts in Spring (create more reasons to come, advertising
what is happening in the spring)
o Influence when they visit, not just the summer.
o Find and promote what else attracts people-work on the niches
o Having trouble getting cohesive marketing structure together
o Making potential visitors aware of the smaller and diverse lodging
facilities available
. New events (festivals, outdoor adventure)
o Diversify product appeal to new/different tourists
o Culinary tourism during shoulder/off season
o Mt. Ashland mid-week
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
5
o Museum
o Film festival
o Farmers market downtown
o Writing/literary festival. Fiction written 2 weeks at a time
o US Poet Laureate
· Public art permanent or temporary
o Art in unique places
. Re-package what we have
. Build Information center (SOVA, Chamber, VCB combined)
· Clearly delineate jobs of Chamber, VCB, etc. (Chamber focused inward, VCB
focused outward)
· Clean streets & sidewalks - spruce up downtown
. Cycle Oregon
. Question who gets grants same 01' same 01'
· Committee of interested parties (lodging, OSF, etc.) with only some council to
determine where money is spent - not budget committee
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
6
QUESTION THREE
What would be the benefit of leaving TOT as it is?
· Keeps Ashland attractive in this low-economy time
o Make Ashland more competitive
o Not in competition with other cities that have higher tax-especially large
groups
o Don't want reputation of having a high tax
o Because [by not increasing] TOT & Food & Beverages [taxes, you] will not
increase tax burden on guests
o Keep expectations of what you would get in the rest of Oregon
o Keep perception of Oregon's low/no taxes
o Would influence them to keep coming if we didn't raise it
o Business increased if tourists come for lower rates (fewer empty
businesses on the plaza)
o Easier to market (less negative impact) on prospective visitors
. People might spend less on other amenities
o Not raising the tax rate will/may allow people to stay longer and spend
more money on other services
o Already too much increase in cost of doing business, travel, gas, etc.
. Entering recession worrying about spending more money
o Bad timing
. It wouldn't affect the guests-bottom line
o May not be an impact on those from Bay area or other metropolis that
have higher tax including F&B
. Will not have to alter quoted rates
. Risk of too much of a good thing.
. Group tourism-leave as is-want the right kind of growth.
. Would like to see us develop more industry, diversify the economy
. More weekend festivals
. Rowing regatta
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
7
· Nervous about increasing "How fast would it be implemented?"
. County lodging establishment that don't pay Ashland tax
. Don't kill the golden goose
· Black Swan Inn: Taxes already too high for small area
. Raise TOT lower F&B
· Increases possibility of improvingjre-allotting current allocations.
· Analyze what the money is going towards currently before deciding to increase
. There is no follow up
. Are we being good stewards?
. Need to deliberate a lot more
. Comfortable with that; but this is so quick
. Lesser conflict with F&B
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
8
QUESTION FOUR
What other information wauld be helpful for the council to make a
we/!- informed decisian?
· How did tax increases in other [cities] agencies turn out?
o Up/down on the revenue streams
o Chart with how other counties spend TOT money and how much is
generated
o Compare Ashland to another who built Convention Center & its impacts
o % of TOT that goes to tourism comparison with other cities
o What is the amount spent on visitor promotion at other cities
o Sense of what other tourism related taxes are applied in other cities
(TOT, FOB, others?)
o Average room rates here and competing cities
o What are plans for Convention Center for local cities? Redding?
Medford? Grants Pass?
o Where is the tipping point of the unintended consequences?
· Need visitor survey data: experience, parking issues, tax level, and public
transportation.
o Need data-does tax increase deter tourism?
o Impact on visitor demography, i.e. % of seniors visiting? Retirees?
School groups?
o Public transportation
. How quickly would it be implemented
o Phase in advanced-reservation- date certain
o If they move forward with this 7/2008, it will have a significantly
negative impact on potential visitors.
· Explore other methods of raising funds
o Are there other sources of funds to accomplish this?
· Consensus of community consider food tax & if it is necessary
o Need to know how community feels
· Determine [what the City is] doing [re:] economic dev.
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
9
· Accountability for tax. How do we know that increase is actually helping
tourism economic development? How do we set standards?
o Be accountable for how money is spent and how they are viewed
· Include average room rates
· Measure occupancy percentages
· Measure increase in possible meals tax
· Need to go back and look at impact of the closing of 150 rooms @ Windmill
· Our visitor center needs to be upgraded significantly
o Visitor information will be an enhancement
o Understand importance of VCB and Chamber as separate and important
entities
· Understand the trickle-down effect
· How do we handle lack of rooms in high season?
· No "pie in the sky" dreaming-stick to reality
· Reasonable cap on expectations if it's more than 2-3 years-not okay.
· Consider location Convention Center-can't be too far away from downtown.
· Who will manage, maintain, etc. Convention Center. Who/what group would be
available to manage?
· Location balance between OSF & Convention Center (OSF on one side
Convention Center down near railroad property.)
· Why is hotel industry apathetic to informing council (through open houses)
· When Ashland Springs has a conference the frequently "spill" business to other
properties
· Council understands that 1% goes to state
. Action plan accountable
. Smart clause
. Look at fairness of
· New money for shoulder season
. Don't tax ??? industry
· Renewal of small grant guidelines criteria
· Tourism aspect
· Support small increase
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
10
LAST COMMENTS
· Appreciate having public forum
o Provide food at open house [public round table meetings]
o Appreciate the process of dialogue
o Thanks
· Have to recognize what we've got here in Ashland; food, art, bed and
breakfasts, nature, adventure.
o Infrastructure-don't do anything to ruin what we're got
· Improvements usually come from citizens, not political realms
o We are over-regulated
o Things done at political level to enhance Ashland-Improve and look at
areas like land use planning, sign code, lack of art in Lithia Park, etc.
· People on council well meaning, but not one represents the tourism or lodging
industry-need to reach out
· Who will articulate vision-need someone as point-what is the leadership for this
project?
· Costs are a concern for this low economy
o Don't increase meals tax
o Don't want to hurt OSF by discouraging lengthier stays
o Increase may discourage people from attending
· City's lodging process is too awful-if easier those facilities running illegally may
register-which might increase TOT levels.
· Don't want a convention center (now wJeconomy)
· If Grants Pass or Medford builds conference center will we be sorry that we
didn't?
· The city has to honor the hospitality industry
· General public doesn't feel that the council understands the value of small
business and the industry as a whole.
· What are non-lodging businesses doing to promote tourism to stay open?
· Does having TOT as is eliminate possibility of altering the current allocations or
the possibility of having a separate TOT committee?
Facilitated and Prepared by Leapfrog Training & Facilitation
February 2008
11
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Oregon Cities and Counties who have raised the TOT
Since the 2004 legislation was passed only a handful of communities have raised their local TOT.
Jacksonville: 7.5% raised to 9%
Of the 70% required to be spent in tourism, 50% is dedicated to visitor information services, 20% is allocated
towards beautification and visitor services in the form of competitive grants, 10% is allocated to parks and 10%
to parking, 5% for administrative services and 5% for the lodging establishment.
Hines: 7% raised to 9%
lOO% of the 70% required to be spent for tourism is given to the local Chamber of Commerce.
TiIlamook: 7% raised to 9%
lOO% of the 70% required to be spent for tourism is allocated for the construction of a transit center/tourism
information center adjacent to City Hall.
Klamath County: 6% raised to 8%
Gfthe 70% required to be spent for tourism, 70% is used to contract with the Great Basin Tourism Association
and the remaining 30% is used for a competitive grant program for organizations that promote tourism in the
area.
Grant County: $2 raised to 8%
No additional information.
Washington County: 7% raised to 9%
No additional information.
ORS Language Transient Occupancy Tax
The following are the relevant portions State Law ORS.320.300 regarding the use of funds for tourism.
"Tourism promotion" means any of the following activities:
Advertising, publicizing or distributing information for the purpose of attracting and welcoming tourist;
Conducting strategic planning and research necessary to stimulate future tourism development;
Operating tourism promotion agencies: and
Marketing special events and festivals designed to attract tourists.
"Tourism promotions agency" includes:
An incorporated nonprofit organization or government unit that is responsible for the tourism promotion of
a destination on a year-round basis;
A nonprofit entity that manages tourism related economic development plans, programs and projects.
A regional or statewide association that represents entities that rely on tourism related business for more
than 50 percent of their total income.
"Tourism-related facility" means:
A conference center, convention center or visitor information center; and
Other improved real property that has a useful life of lO or more years and has a substantial purpose of
supporting tourism or accommodating tourist activities.
"Tourist" means:
A person who, for business, pleasure, recreation or participation in events related to the arts, heritage or
culture, travels from the community in which that person is a resident to a different community that is
separate, distinct from and umelated to the person's community of residence, and that trip requires the
person to travel more than 50 miles from the community ofresidence; or includes an overnight stay.
Current TOT in Other Oregon Cities
The following information provided by Dean Runyan Associates
for the Oregon Tourism Commission.
Portland 11.5% Jacksonville 9.0%
Bend 9.0% Seaside 8.0%
Medford 9.0% Roseburg 8.0%
Astori a 9.0% Ashland 7.0%
Grants Pass 9.0% Cannon 6.0%
Beach
Klamath Falls 9.0% Eugene 9.5%
Salem 9.0% Springfield 9.5%
Estimated Revenue Generated from a TOT Increase
Based on anticipated TOT revenue for FY08
TOT Increase 1% 2% 3%
Estimated $225,000 $450,000 675,000
additional
revenue
Must be spent on $158,000 $315,000 $473,000
tourism (70%)
Balance $67,000 $135,000 $202,000
(likely to be used
for Economic
Development)
The City currently spends approximately $225,000 (14.23%) of the TOT funds on
tourism each year by allocating a portion to the Chamber of Commerce, a portion to the
Oregon Shakespeare Festival and grants to smaller cultural organizations. Lodging
establishments keep 5% of the total tax they collect.
What We Know
· Ashland lacks large group meeting facilities and thus cannot capitalize on convention and
conference business.
· Weare in the midst of a challenging economy and increasing gas prices.
· As a community we want to work towards enhancing existing businesses and developing new
businesses.
· The competition for tourism dollars is high. Visitors have many options on where to spend their
dollars. Ashland can't rest on its laurels.
· 70% of the money generated from an increase to the TOT must be spent on tourism.
· Currently, approximately $225,000 is spent on tourism development. Of the 7% TOT collected,
66% goes to the city's general fund to support city services, 34% is divided between the Chamber
(66%), OSF (28%) and Economic and Cultural grants (12%)
· Lodging establishments keep 5% of the TOT collected to offset administrative costs.
· Occupancy rates from October through March average between 30% and 37%.
· Occupancy rates from April through June average about 51 %.
· Occupancy rates from July through September average about 74%.
· TOT was raised in 1992 from 6% to 7%
Why Generate New Money
The objective for generating new money to be spent on tourism is to develop a greater diversity of tourism
activties; new reasons for people to travel and stay in A~hland during the off season and potentially reduce
the financial dependency on the high season.
1% = $158,000
· Increased marketing
· Expand seasonal events
· Develop new events/festivals
· Create new reasons for people to travel to Ashland
2% = $315,000
All of the above and/or
· Use the entire amount to pay for monthly debt on a $4 million convention/space
3% = $473,000
All of the above and/or
· Purchase land to develop additional parking
· Other???
Ashland Chamber of CommerceNCB
Wish List
The following provided by the Chamber/VCB.
Should the City of Ashland raise the current transient occupancy tax to 9%, it would
result in roughly an additional $450,000 in revenue.
$315,000 would be slated to tourism promotion and $135,000 would likely be dedicated
to economic development.
How would we like to have that money spent?
Ideas on the table include but are limited to:
Additional Marketing Funds could be used in a variety of ways to increase business
in our shoulder seasons:
. Placing consistent and regular advertisement of our brand in the marketplace
some done individually and some placed cooperatively.
. Deeper penetration in the market place is paramount to our goals of increasing
visitor traffic and stays in our shoulder seasons.
. Fund the Food & Wine Classic (operationally and much larger promotional
efforts) placing ads and hosting writers from such publications as Gourmet, Food
& Wine Magazine, Bon Appetite and the like. Lifestyle publications are a new
and growing tool used for travel decisions and awareness.
. We could have more ofa presence in Northern California with signage and
brochure placement in Granzella's and advertisements In the Redding Searchlight,
SF Chronicle, and The Sacramento Bee
. Participate in more SOV A co-ops. We could further leverage our market impact
by participating in ads in publications such as: Travel Oregon, Via Magazine, Los
Angeles Magazine, a campaign titled Totally San Francisco which encompass
print and radio advertisements and Gourmet.
. Additional staff person to create and manage
. Web based marketing programs, reservations system, blogs, social networking
. Online video what's happening in Ashland- create more high definition footage
. Web based outreach to people wanting more information on Ashland
. Create new marketing campaigns surrounding "visiting friends and relatives" a
community development campaign with businesses that support our mission.
. Print more brochures
. In person attendance instead of brochure placement only at travel trade shows,
convention & meeting planners shows such as the LA Travel Show, Sunset and
the Bay Area Trade Show.
. The increased marketing efforts will result in more staffing, postage and
fulfillment costs.
Another idea is to improve our current visitor center. Ashland is one of the prettiest
small towns in America with spectacular recreational and cultural amenities. The
Chamber of Commerce office serves over 100,000 annually and has one of the smallest
offices in the state to serve the traveling public, to hold a meeting with more than six
people to talk about business relocation and retention or to showcase all we have to offer.
The potential to better serve our members, our citizens, perhaps some local organizations,
such as the Historical Society) and the business community would be of great value.
Both of those ideas clearly cannot be paid for with an additional $3 1 5,000 per year.
As an example, The City of Roseburg completed their Chamber /Visitor Center building
nine years ago. The initial money came from TOT's saved for several years. The nest egg
was $145,000. They raised $40,000 from local tribes, received $200,000 from Douglas
County and four businesses in town contributed $5,000 each towards the new center that
houses the Chamber and the VCR The total cost of the project was $650,000.
A convention center:
Meeting space is clearly needed with breakout space available in our community due to
the closure of the Windmill Inns. A thorough analysis is needed to determine the
feasibility of this project.
Other ideas:
. Parking facility
. Shuttle
Email from Dave Runkel
February 22
Many thanks Ann, I've been trying to put our concerns in the clearest terms possible, so here's my
latest attempt.
Before the Council takes steps to increase the tourism tax, it should justify spending 86 percent of
current revenues from the tax for general fund purposes. If the city can show that tourism is costing
the city $1,350,000 a year in police, fire, ambulance, streets, etc and that this cost is going up then
there would be no basis for opposing an increase.
Dave
> Date: Fri, 22 Feb 2008 13:29:12 -0800
> From: seltzera@ashland.or.us
> To: runkels@hotmail.com
> Subject: Re: tourism tax
>
> David,
>
> Thanks for taking the time to attend the public forum and for your candid and insightful input.
>
> As promised, I will be sure that all the comments gathered are given to the council including
concerns (!) and I'll send a copy of what I prepare for the council to each of the TOT public forum
participants.
>
> Please feel free to contact Bryn Morrison at 552-2002 in the finance department. Bryn can answer
any questions you might have about the Economic and Cultural Grant applications and process. Have
you viewed the information about the ECD grants on the city's website? Here's the link:
http://www.ashland.or.us/PaQe.asp?NavID=8326
>
> Thanks again, Ann
>
> Ann J. Seltzer
> Management Analyst
> City of Ashland
> 20 East Main Street
> Ashland, OR 97520
> 541-552-2106
>
> >>> Deedie Runkel <runkels@hotmail.com> 02/21/08 10:31 PM >>>
>
> Dear Ann, Thanks for listening today. I had several thoughts as I was walking home.
>
> First, I think the hospitality industry would be less resistant to a tax increase if we felt there was a
real interest on the part of the City Council in the issues we face. No one has asked what they are.
>
> Second, one strong signal by the Council that it truly wanted to support tourism would be a
committment to increasing the amount of current tourism tax revenues that are devoted to tourism
promotion. I'm not talking about any sudden increase in the percent from 14 percent to 70 percent,
but a path to increasing this percentage on an annual basis to a "more reasonable" percent. Surely
something could be agreed upon that would help reduce our skepticism about the proposed tax
increases.
>
> Third, the Bed and Breakfast Network's views would have been less resistant if the city had
expressed any interest in working with us last year to overcome the problems we had in applying for
funding for a spring advertising program. Instead of any offers of help, the door was closed in our
face. The Budget Committee at first refused to even allow us to testify and only through the personal
intervention of a Councilor was I allowed to make a few brief remarks. Surely, if there was a true
commitment to tourism promotion, an offer to work with us would have been made. In the last year,
we have become a non-profit corporation under Oregon law and have applied for IRS tax exempt
status. We don't know if approval will be in hand before this year's budget cycle begins, and I'm
concerned that we could be shut out again unless there is greater understanding on the part of the
city government.
>
> Best wishes, David Runkel
>
>
> Shed those extra pounds with MSN and The Biggest Loser'
> http://biqqestloser.msn.com/
>
Helping your favorite cause is as easy as instant messaging. You 1M, we give.
http://im.live . com/Messenger/1M / Ho me/?sou rce = text _ hotma i I ~oi n
Email from Annie Hoy
February 4
Hey Ann,
I can't come to either of the sessions. Here's my thought.
If Medford can do 9%, why in the heck is the tourist Mecca of the region not
charging the same amount????
That's my short way of saying I'm in favor of increasing the TOT. I know the
lodging industry in town will complain. However, the time has come to
increase the money we have to spend on getting visitors in town and our own
unique econ dev efforts.
Thank you for reading.
Annie
Annie Hoy
Outreach/Owner Services Manager
Ashland Food Co-op
237 N. First St.
Ashland OR 97520
541/482-6431 (direct line)
outreach(6Jashlandfood .coop
www.ashlandfood.cooP
Other Comments
Please feel free to write any additional conunents about a TOT increase and/or tourism enhancement.
Your conunents will be given to the City Council.
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RESOLUTION NO. 2007- OS
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ASHLAND REITERATING ITS POLICY OF RELATING THE
EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL
DEVELOPMENT TO THE HOTEUMOTEL (Transient
Occupancy) TAX AND REPEALING RESOLUTION 2004-32
THE CITY OF ASHLAND RESOLVES AS FOllOWS:
SECTION 1. That the City Council recognizes that the source of monies for the
Economic and Cultural Development Grant program is the Hotel/Motel Tax.
SECTION 2.
The following are the goals which the Budget Committee is attempting to meet by
granting money to applicants for:
a) Tourism Promotion:
1. Attract someone who travels to Ashland from more than 50 miles away to attend
an event.
2. Attract someone who stays the night in Ashland to attend an event.
b) Economic Development:
1. Promote increased number, variety and size of employers.
2. Encourage wages at or above median wage.
3. Promote businesses that employ 5 to 100 people or is locally owned.
4. Encourage use of local resources.
5. Work with Southern Oregon University, especially for international commerce.
6. Discourage businesses that need water, that emit air pollution, or that create
toxic waste.
c) Cultural Development:
1. Increase the number, variety and size of cultural opportunities in Ashland
2. Support diversification of the local economy
3. Showcases local talent
4. Work with Southern Oregon University on cultural programs
SECTION 3.
Beginning in Fiscal Year 2007/2008, the City Council will appropriate thirty-three and
one-third percent (33.3%) of the anticipated Hotel/Motel tax monies for Economic and
Cultural Development. 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. The minimum amount to be spent on tourism in FY
2007-2008 is $218,715.
The amount to be allocated annually to Ashland Chamber of Commerce (COC) and
Oregon Shakespeare Festival (OSF) for promoting tourism per the state definition shall
be $85,330 and $116,700, respectively, adjusted each year by the amount of inflation
or deflation established in the Budget process. An additional amount of $169,740,
1- 2007 TOT Expenditure Resolution Repealing 2004-32 final
adjusted each year by the amount of inflation or deflation (increase or decrease in
budgeted TOT revenue) established in the Budget process, will be granted annually to
COC for economic development projects in cooperation with City staff.
Any additional amount for tourism required by Chapter 818 shall be allocated to COC,
OSF or other group during the budget process specifically for that purpose. The
remainder of the monies budgeted for these grants may be allocated to grantees for
activities fitting in any of the three categories set forth in Section 2 of this Resolution.
By January 31 of each year each recipient of a grant greater than $2,500 for non-
tourism programs or any amount specifically intended for tourism per this resolution
shall submit a report to the city council setting forth how the grant funds received were
expended in furtherance of the goals set forth in Section 2. Grant recipients of $2,500
or less for non-tourism programs are required to report its use only when requesting
additional money in a subsequent year.
SECTION 4. The following guidelines and criteria are established for the Economic and
Cultural Development Grants:
a) Grantee shall be a 501(c) non-profit agency.
b) Grantee shall be a non-governmental agency.
c) Grantee shall promote livability for the citizens of Ashland.
d) The minimum grant proposal will be $2,500.
e) The grant will benefit Ashland in regards to enrichment and activities of an
economic nature.
f) Grantee shall serve the population in Ashland but may encompass other venues in
the Rogue Valley. Monies granted are intended to be used for programs or
service performed or provided within the City of Ashland or immediate areas.
g) Irrespective of sub-paragraph 'b', the City of Ashland Public Arts Commission may
apply for and receive funds.
SECTION 5. Resolution 2004-32 is repealed upon passage of this resolution.
SECTION 6. This resolution takes effect upon signing by the mayor.
This r olution was read by title only in accordance with ASh~d Municipal Code
92.0 90 duly PASSED and ADOPTED this;20 day of . IIA~L ,2007.
Barbara Christensen, City Recorder
SIGNED and APPROVED this ~ day of
,2007.
~
John W. Mor 'son, Mayor
2- 2007 TOT Expenditure Resolution Repealing 2004-32 final
CITY OF
ASHLAND
Council Communication
Transient Occupancy Tax Rate Increase and Use of Proceeds
Meeting Date: September 17, 2007 Primary Staff Contact: Lee Tuneberg
Department: Administrative Services E-Mail: tuneberl@ashland.or.us
Secondary Dept.: Secondary Contact:
Approval: Martha Bennett Estimated Time: 60 minutes
Statement:
Council requested information on the potential of increasing the Transient Occupancy Tax rate and
opportunities to use the additional revenue generated from the change.
Staff Recommendation:
Staff requests that the Council review the information provided and give direction to staff on how to
proceed. If an increase in the TOT rate is to be considered, staff recommends that Council hold
meetings and discussions to answer questions and resolve any issues from the community, in general,
and specifically with the lodging industry. The grant agreement with the Chamber of Commerce
includes a requirement that the Chamber assist the City with this work. Council should also work with
the Community to identify desired uses of these funds.
Background:
Staff provided research and other material to Council in February and March relating to the City's
Transient Occupancy Tax (TOT) rate, how it compares to other cities, the revenue generated by the
tax, how it is used and what could be the impact if the rate was changed.
February 6 and March 6,2007, Council communications are attached.
At those earlier meetings it was identified that the City's rate is low when compared to other similar
communities. Discussions included estimates of the added revenue that could be generated and to what
purpose those monies would be used. State requirements for use of proceeds from new taxes helped to
identify, in general, what could and could not be done. Altogether, the information provided and
ensuing discussion prompted the request for a more specific consideration of an increased tax rate.
Resolution 2007-08 identifies how current revenue is distributed and establishes goals for its use.
Briefly, the city must spend 14.23% of TOT revenue proceeds on tourism from the existing 7% tax.
The resolution identifies what amounts are allocated to the Chamber of Commerce (CoC) and Oregon
Shakespeare Festival (OSF) and for what purposes. It also identifies what amount will be granted to
applicants during the budget process, general guidelines and goals.
In FY 2006-07 the City received over $1.5 million with a little over $1.0 million being treated as
general revenues (no specifically designated purpose) to the General Fund. At this level of revenue,
about $214,000 must be spent on tourism. However, the resolution is based upon budget estimates and
called for $224,123 in total for tourism in FY 2007-2008, with $116,700 going to OSF, $85,330 to
CoC and the remainder of $22,093 intended to be spent by smaller grant applicants. An additional
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annual amount of$169,740 was allocated from the proceeds to CoC for Economic Development
projects. We allocate monies based upon the budget thus increased actual revenues would become
General Fund resources but shortfalls could also reduce the support to that fund.
Using the amounts budgeted for FY 2007-2008 an additional 1 % on the tax would generate $225,000
more revenue. State requirements would allocate $158,000 to tourism leaving $67,000 for other uses.
The following table demonstrates the total revenue and allocation impact of potential increases:
Economic and Cultural Grant Allocation
With Tourism Calculation Per Budget Plus Additional Tax
Cu rrent Additional
Tourism Calculation: 7% 1% 2% 3%
Hotel/Motel Tax Revenue (estimated FY 08) $ 1,575,000 $ 1,575,000 $ 1,575,000 $ 1,575,000
Per Resolution 2007-08 & State 14.23% 14.23% 14.23% 14.23%
Base Tourism Requirement per State $ 224,123 $ 224,123 $ 224,123 $ 224,123
Additional Revenue from new tax $ 225,000 $ 450,000 $ 675,000
Tourism requirement per State on new revenue 70.00% 70.00% 70.00%
Additional Tourism dollars $ 158,000 $ 315,000 $ 473,000
Total Amount to be Spent on Tourism $ 224,123 $ 382,123 $ 539,123 $ 697,123
Tourism Amount Allocated per Budget
Chamber to promote tourism $ 85,330 $ 85,330 $ 85,330 $ 85,330
OSF to promote tourism 116,700 116,700 116,700 116,700
Direct Tourism Allocation per Resolution 2007-08 202,030 202,030 202,030 202,030
Additional amount to be spent on Tourism 22,093 180,093 337,093 495,093
Total to be spent on Tourism State requirements $ 224,123 $ 382,123 $ 539,123 $ 697,123
The table demonstrates that increasing the TOT rate three additional percent would require the City to
increase tourism spending from a minimum of $224,123 to a new minimum of$697,123. This would
require $495,093 to be spent internally and/or awarded externally in addition to the $202,030 directly
awarded to CoC and OSF.
A conflict may exist between the City's resolution and State requirements for added tax revenue in that
a "shift" is precipitated by raising the TOT rate, causing a larger percentage of the granted monies to
go toward tourism than to non-tourism activities. The following table demonstrates that the
combination of the two tends to shift money in the one-third portion of the TOT revenue used for
Economic and Cultural granting program from non-tourism activities to tourism activities. This can be
seen in to places on the table. The first is the drop from $300,777 to $52,177 on the line identifying
Amount Available for N on- Tourism Activities. The second place is demonstrated when the decreasing
amount is matched with the current amount awarded to the Chamber by Resolution 2007-08. The
amount available to others for non-tourism becomes negative when the tax rate is raised 2% or 3% and
Resolution 2007-08 remains unchanged.
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Impact On Resolution 2007-08 When Tax is Raised
Current
7%
1%
Additional
2%
3%
Grant Calculation Combining State & City Guidelines:
Total TOT Revenue
1,800,000 $
2,025,000 $
2,250,000
$
1,575,000 $
Total Grant (1/3 of revenue) Per Resolution 2007-08 $ 524,900 $ 599,400 $ 674,300 $
Total Amountto be spent on Tourism 224,123 382,123 539,123
Amount Available for Non-Tourism Activities $ 300,777 $ 217,277 $ 135,177 $
Please note the shift from Non-tourism to Tourism expenditures caused by State requirements and Resolution 2007-08.
Non-tourism Grant Money
Direct Economic Development Grant
to Chamber (Res. 2007-08)
Available to other Applicants for Non-tourism Activities
$
300,777 $
135,177 $
217,277 $
169,740
47,537 $
169,740
(34,563) $
169,740
(117,563)
$
169,740
131,037 $
749,300
697,123
52,177
52,177
Council would need to consider this impact and could revise Resolution 2007-08 to deal with it. Even
if unchanged, there is an estimated additional $67,000 generated for other activities in the General
Fund by an additional 1 % tax.
Uses of Proceeds
The table shows that potentially $67,000 to $450,600 could be generated or "freed up" for other
General Fund activities. The "shifted" money could be considered if it meets Council goals but, unless
directed otherwise, staff would focus on how to employ the "new" revenue from a tax increase. That
amount is in the $67,000 to $202,000 range depending upon what rate increase was approved and
implemented.
Impact On Resolution 2007-08 When Tax is Raised
General Fund Impact from TOT Revenue at various levels
General revenues from TOT 7% Rate
General revenues from Additional TOT rate
1,050,100 $
nla $
1,050,100 $
67,000 $
1,050,100 $
135,000 $
$
1,050,100
202,000
The City would need to actively engage and fund tourism activities to expend at the levels identified
above. There has been significant reliance on both CoC and OSF to meet those requirements but other
efforts would probably be needed. Council could ask the Chamber to assist in developing programs in
addition to the Visitor & Convention Bureau (VCB), OSF and small grant applicant activities.
If increased tourism expenditure requirements as identified above are satisfied, the $67,000 to
$202,000 can be used for any program or activity identified by Councilor it could remain as a general
resource to the General Fund. This could help with some of the diminishing revenues in the General
Fund due to changes in the building industry and Federal limitations on ambulance service revenues.
However, the current TOT revenue stream already provides over $1 million in general resources that
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has been used to balance the General Fund services to the community and that need remains in the near
future.
At this time the City is considering Economic Development programs in addition to what is being done
through the Chamber. This effort may entail using CoC and/or other grant applicants even more in lieu
of or in conjunction with hiring consultants and/or staff to accomplish new or established goals.
Allocating funds toward Economic Development could play an important role in impacting future
resources to assist with the health and welfare of the community funded through the General Fund.
Making a Change
The current Transient Occupancy Tax rate was established by ordinance and last revised in May of
1992. If Council should choose to revise the tax rate the City would need to follow the ordinance
revision process including legal notice, hearing, first and second reading.
As noted above, prior to holding public hearings, staff recommends meeting with interested parties
regarding the tax rate, any increase and how the additional monies may be used.
Related City Policies:
City Council goal: "Develop a City-led Comprehensive Economic Development Strategy with an
Emphasis on Local Economy, Diverse Population, Risks of Over-Reliance on Single-Industry, and
Living Wage."
Council Options:
Council can:
a. Direct staff to return to Council with any additional information
b. Direct staff to schedule public meetings and hearing to take input on changes to the TOT
tax and use of proceeds including allocations identified in Resolution 2007-08.
c. Take other actions determined through discussion.
Potential Motions:
I make a motion directing staff to schedule a public hearing at a future Council meeting to gather input
from the public on an increase in the Transient Occupancy Tax rate, identifying how additional
proceeds will be used.
Attachments:
Ordinance 2674 dated May 20, 1992
Resolution 2007-08 dated March 23,2007
FY 2007-2008 Economic and Cultural Development Grant Allocation with Tourism Calculation
Council Communication dated March 6, 2007
Council Communication dated February 6, 2007
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Council Communication
Meeting Date:
Department:
Secondary Dept.:
Approval:
Study Session on Council Goal for Fiscal Stability
March 3, 2008 Primary Staff Contact: Lee Tuneberg
Administrative Services E-Mail: tuneberl@ashland.or.us
Secondary Contact:
Estimated Time: One Hour
Question:
Does the proposed plan from staff incorporate the steps and timing Council feels appropriate for this
goal?
Staff Recommendation:
Staff recommends Council consider the steps listed below that were identified in the initial staff report
on the goal.
Background:
Fiscal stability is, and has been, of significant concern to Council, staff and the public. All services
provided by the City rely on fiscal stability and the ability to adapt to changes in the economy and in
the community whether caused by local or national factors.
Ashland has been fortunate to weather many of the recent economic changes because of its diverse
community, revenue streams, services and reserves. In question is the City's ability to maintain a good
financial position while costs increase for the services being provided and many revenue streams are
remaining relatively flat or diminishing.
Council adopted this as a priority goal and probably has ideas ofwhatjiscal stability means to them as
a group and individually. However, we should anticipate considerable input from others and differing
perspectives on what it (fiscal stability) looks like for the City, what gaps exist today, what steps will
be needed and how will we know when we have achieved it.
Some of the elements that will need to be addressed are:
· Agreement on a priority listing of services to be provided, at what level of service and how
those services will be funded.
· Identification of what reserves must be developed and maintained to effectively address short-
term spikes in costs and revenue streams.
· Policy on how the City should address the costs of aging infrastructure and new capital needs.
· Policy or policies regarding City indebtedness and related debt service.
There is, or will be, the temptation to do this goal ourselves, either with staff available or volunteers
from the community. While these resources will be important to accomplish this goal, staff
recommends using an outside consultant for most of the work. In order to be successful we must be
critical about existing resources, capabilities and availability of those who would do the work, timing
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of the project and level of acceptance. Staff believes the proposed schedule is aggressive, especially
when core work and other projects are taken into consideration.
In order to do this goal, staff proposed the following steps:
1. Identify the internal resources (appropriations and staff) available to support the goal. This will
impact proposed changes in the budget this year and next. January - February 2008
2. Develop a solicitation process (Request For Qualifications and Project Proposals) to perform
this goal and provide additional support not available within the City. March - June 2008
3. Create a timeline for gathering input from stakeholders and identifying deliverables. July-
August 2008
4. Perform the work including evaluation of existing, and the development of new, measures,
benchmarks and systems for monitoring. September - November 2008
5. Report on work to date to Council and subsequent revisions to the project. December 2008
6. Implementation, staff training and incorporation into City budget, operational and reporting
processes. January ~ March 2008
7. Complete integration into the FY 2009-2010 budget process. April-June 2009
Step 1 requires us to identify staff that has the ability and time to work on the goal through its entire
process. The process may identify the need for an ongoing commitment from some staffmember(s) to
manage, monitor and report changes beyond the project timeline proposed above.
With that said, the Administrative Services (Finance) Department has not been able to actively pursue
this goal over the recent years for several reasons. As City administration and finance departments
have changed staff has been unavailable to pursue financial and other goals due to loss of institutional
knowledge, failed recruitments to attract skilled applicants, reduced budget dollars available to take on
projects, greater demands in financial reporting and economic variations.. . all pushing other priorities
to the forefront. Regardless of the abilities of existing staff, availability to dedicate to this project is
limited during significant portions of the year.
This lead us to propose Step 2 where external help with the appropriate skills, experience, time and
industry relationships to accomplish this goal is recruited. We do not have a good estimate on the cost
for such help but the City should expect it will cost beyond $100,000 given the complexity of the City
and the expected length of the project. Additionally, it will require dedicated staff time to support the
work to gain the most benefit from the consultant.
The timing and scope for Steps 3 through 7 are likely to change once a consultant is onboard. It is
doubtful that a comprehensive review with meaningful outcomes that are generally accepted could be
accomplished in less than a year. A year seems like a long time to wait but Council should note that
we continue doing things that will support this goal including the annual budget process, evaluating
major revenue streams like electric and water utility charges, Transient Occupancy and Food &
Beverage taxes, reviewing our capital improvements and financing options, analyzing personnel and
benefit costs, etc.
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A good beginning for the City is to look at what we have in place today, not to revise or update, but to
gain a sense of what has been relied on to date. Attached are the financial policies of the City that have
been presented as part of the budget document. They have been incorporated in the annual process in
various formats over the past 20 years. As part of this goal they will be updated to represent policy
decisions made.
This study session will help to put Council and staff on the same page for accomplishing this goal.
If the approach and timing are generally acceptable, staff will submit an add package as part of the FY
2008-2009 budget for consideration by the Committee that will potentially include consulting services
and staff changes thought necessary after this discussion.
Related City Policies:
Financial Management Policy
Council Options:
Council should identify any areas of concern they have with the proposed process to accomplish the
goal.
Potential Motions:
None for the study session
Attachments:
Financial Management Policies included in the budget document
Page 3 of 3
030308 Fiscal Stability Goal.CC.doc
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financial management policies
Scope
The Financial Management Policies apply to fiscal
activities of the City of Ashland.
Objectives
The objectives of Ashland's financial policies are as
follows:
'r To enhance the City Council's decision-making
ability by providing accurate information on
program and operating costs.
'r To employ revenue policies that prevent undue or
unbalanced reliance on anyone source, distribute
the cost of municipal services fairly, and provide
adequate funds to operate desired programs.
:.- To provide and maintain essential public programs,
services, facilities, utilities, infrastructure, and
capital equipment.
:.- To protect and enhance the City's credit rating.
:.- To ensure the legal use of all City funds through
efficient systems of financial security and internal
control.
Investments
All City funds shall be invested to provide-in order of
importance-safety of principal, a sufficient level of
liquidity to meet cash flow needs, and the maximum yield
possible. One hundred percent of all idle cash will be
continuously invested.
Accounting
,. The City will maintain an accounting and financial
reporting system that conforms to Generally
Accepted Accounting Principles (GAAP) and
Oregon Local Budget Law. The City will issue a
Comprehensive Annual Financial Report (Audit
report) each fiscal year. The Comprehensive Annual
Financial Report shows fund expenditures and
revenues on both a GAAP and budget basis for
companson purposes.
.,. An independent annual audit will be perfonned by a
certified public accounting firm that will issue an
official opinion on the annual financial statements
and a management letter detailing areas that need
improvement.
:.- Full disclosure will be provided in financial state-
ments and bond representations.
A-8 city of ash/and
,. The accounting systems will be maintained to
monitor expenditures and revenues on a monthly
basis with thorough analysis and adjustment of the
annual budget as appropriate.
y The accounting system will provide monthly informa-
tion about cash position and investment performance.
:.- Annually, the City will submit documentation to
obtain the Certifieate of Achievement for Excellence
in financial reporting from the Government Finance
Officers Association (GFOA).
Operating Budgetary Policies
,. The budget committee will be appointed in conform-
ance with state statutes. The budget committee's
chief purpose is to review the city administrator's
proposed budget and approve a budget and maximum
tax levy for city council consideration. The budget
committee may consider and develop recommenda-
tions on other financial issues as delegated by the
city council.
y The City will finance all current expenditures with
current revenues. The City will avoid budgetary
practices that balance current expenditures through
the obligation of future resources.
,. The City budget will support city council goals and
priorities and the long-range needs of the community.
,. [n contrast to the line-item budget that focuses
exclusively on items to be purchased (such as
supplies and equipment), the City will use a program/
objectives format that is designed to:
I) Structure budget choices and information in
terms of programs and their related work
activities,
2) Provide information on what each program is
committed to accomplish in long-term goals and
in short-term objectives, and
3) Measure the degree of achievement of program
objectives (performance measures).
y The City will include multi-year projections in the
annual budget.
,.. To maintain fund integrity. the C~ity will tnanage each
fund as an independent entity in accordance with
applicable statutes and with generally accepted
accounting principles.
.,. The City will allocate direct and administrative costs
to each fund based upon the cost of providing these
services. The City will recalculate the cost of
administrative services each year to identify the
impact of inflation and other cost increases.
" The City will submit documentation annually to
obtain the Award for Distinguished Budget Presenta-
tion from the Government Finance Officers
Association.
Fund Balance Policy
General Fund
The General Fund accounts for all financial resources not
accounted for in other funds. Resources include working
capital can'yover, taxes, licenses and penn its,
intergovernmental revenue, fines and forfeitures, charges
for services, miscellaneous revenues, and inter-fund
transfers. Expenditures are for Social Services, Economic
and Cultural Development, Police Depal1ment, Municipal
Court Department, Fire and Rescue Department, City Band,
Cemeteries, and the Depal1ment of Community
Development. This fund uses the modified accrual method
of accounting.
,. The General Fund will maintain an unrestricted and
undesignated balance of annual revenue of at least
10 percent. This is the minimum needed to maintain
the City's credit worthiness and to adequately
provide for economic uncertainties and cash flow
needs.
J>- No portion of the General fund balance is restricted
for specific uses.
J>- The General fund was pledged in the issuance of the
1996 Limited Tax Improvement Bonds. Bond and
interest payments may be paid trom this fund or an
additional tax levy imposed. provided assessment
payments were inadequate.
J>- The City will budget a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Special Revenue Funds
Special Revenue Funds account for the proceeds of
specific sources that arc legally restricted to expenditures
for specified purposes. Special Revenue Funds account for
transactions using the modified accrual method of
accounting.
financial management policies
Commullity Developmellt Block Grallt FUlld. This fund
was established in 1994-95. The fund accounts for the
Block Grant and related expenditures.
;.. A fund balance policy is not needed since this fund
works on a reimbursement basis.
.,. The City will budget a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Street FUI/d. Revenues are from the state road tax, grants,
franchise fees, charges for services and miscellaneous
sources. Expenditures are for the maintenance. repair, and
surfacing of streets, as well as the maintenance, repair and
construction of storm drains.
" The Street Fund will maintain an unrestricted and
undesignated balance of annual revenue of at least
10 percent. This is the minimum needed to maintain
the City's credit worthiness and to adequately
provide for economic uncertainties and cash flow
needs.
,. The System Development Charges for Transporta-
tion and Storm Drains are included in the Street Fund
balance. This portion of the Street Fund balance is
restricted and shall not be used in determining the
minimum fund balance.
.,. The City will budget a contingency appropriation to
provide for unanticipated expenditures of a non-
recurring nature or shortfalls in projected revenues.
The minimum contingency will be maintained at not
less than 3 percent of annual revenues.
Airport FUI/d. Revenues are from airport leases, and fuel
sales. Expenditures are for airport operations.
J>- The Airport Fund will maintain an unrestricted and
undesignated balance of annual revenue of at least
16 percent. This is the minimum needed to maintain
the City's credit worthiness and to adequately
provide for economic uncertainties and cash flow
needs.
y No portion of the Airp0l1 fund balance is restricted
for speci fi c uses.
;.. Many of the Airport assets have restrictions placed
on them by the Federal Aviation Administration.
None of the current revenues are pledged to outside
lenders. Over the next 20 years, the Airport Fund is
obligated to repay the Equipment Fund for the
installation of fuel tanks through an equipment rcntal
fce.
city of ash/and A-9
financial management policies
).- The City will budget a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Capital Projects Funds
Capital improvement funds are established to account for
financial resources that are used for the acquisition or
construction of major capital facilities (other than those
financed by Enterprise Funds, Internal Service Funds,
Special Assessment Funds, and Trust Funds). Capital
projects funds use the modified accrual method of
accounting.
Capital Improvemel/ts FUI/d. This fund accounts for
revenues from grants, unbonded assessment payments, and
other sources, and will account for the construction of
special local improvements, usually streets, with revenues
from shOJ1 term bOlTowing and unbonded assessments.
Expenditures are for construction, property and equipment
acquisition and replacement, improvements and related
purposes, and the repayment of short-term debt principal
and interest incurred in financing improvements.
).- The purpose is to accumulate funds prior to a large
construction project; therefore, there is no minimum
fund balance.
).- The System Development Charges (SDCs) for Parks
are included in the Capital Improvement fund
balance. This portion of the Capital Improvements
fund balance is legally restricted and shall not be
used in determining the minimum fund balance. The
city council has established other restrictions on this
fund, such as affordable housing and office space
needs.
).- The City will budget a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Debt Service Funds
Debt Service Funds account for the accumulation of
resources for, and the payment of, general long-term debt
principal and interest. Expenditures and revenues are
accounted for using the modified accrual method of
accounting. All bond issues and notes are separated in the
accounting system.
A-10 city of ash/and
" All of the monies within the Debt Service fund are
restricted for Debt service until the specific debt is
repaid in full. ORS prohibits cities from borrowing
this money for any other purpose.
" The Debt Service Fund will maintain an unrestrieted
and undesignated balance of annual revenue as
required by the specific debt instrument. This is the
minimum needed to maintain the City's credit
worthiness and to adequately provide for eeonomic
uncertainties and cash flow needs.
Enterprise Funds
Enterprise funds account for the following operations: (a)
those that are fInanced and operated in a manner similar to
private business enterprise, where the intent of the govern-
ing body is that the costs (expenses, including deprecia-
tion) of providing goods and services to the general publ ic
on a continuing basis be financed or recovered primarily
through user charges; or (b) those where the governing
body has decided that periodic determination of revenues
earned, expenses incurred, and/or net income is appropriat-
ed for capital maintenance. public policy, management
control, accountability, or other purposes.
Enterprise funds use full accrual basis of accounting for
financial statement presentations. However. the enterprise
activities use a modified accrual basis of accounting for
budgetary purposes. This assures budgetary compliance
with such expenditures as capital construction and acquisi-
tion, as well as debt principal transactions.
Water FUlld. This fund accounts for water operations.
Revenues are from sales of water, other charges for
services, and miscellaneous sources. Expenditures are for
operations, conservation programs, capital construction,
and retirement of debt.
)i. The Water Fund will maintain an unrestricted and
undesignated balance of annual revenue of at least
20 percent. This is the minimum needed to maintain
the City's credit worthiness and to adequately
provide for economic uncertainties and eash flow
needs.
, The \Vater Systenl Development Charges and
reserved debt service fund balances are included in
the Water Fund balance. These portions of the
Water Fund balance are restricted and shall not be
used in determining the minimum fund balance.
financial management policies
.,. Thc nct rcvenucs of the Watcr Fund werc pledgcd in
thc issuancc of thc 1994 Watcr Rcvcnuc Bonds uscd
to finance the upgrade to the water treatment plant.
.,. The City will budget a contingency appropriation to
provide for unanticipatcd non-recurring expenditures
or shortfalls in projectcd revcnucs. Thc minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Wastewater FUlld. This fund accounts for wastewater
treatment and collection. Revenues are from charges for
services. Expenditures are for operations, capital construc-
tion, and retirement of debt.
.,. The Wastewater Fund will maintain an unrestricted
and undesignated balance of annual revenue of at
least 15 percent, but no less than required by the
Wastewater Treatment Plant loan. This is the
minimum needed to maintain the City's credit
w0l1hiness and to adequately provide for economic
uncertainties and cash flow needs.
.,. The Wastewater System Development Charges
are included in the Wastewater Fund balance. This
portion of the Wastewater Fund balance is restricted
and shall not be used in detern1ining the minimum
fund balance.
,. The net revenues of the Wastewater Fund that
were pledged in the issuance of the 1998 Clean
Water State Revolving Fund (CWSRF) Loan used to
finance the upgrade to the treatment plant are
included in this fund.
.,. The City will budget a contingency appropriation to
provide for unanticipated non-reculTing expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Electric FUlld. The Electric Fund accounts for the distribu-
tion of purchased electricity according to standards set
forth by the Federal Energy Regulatory Commission.
Revenues are from sale of electricity and other charges for
services and intergovernmental grants. Expenditures arc for
related opcrations. Utility operations include wholesale
power purchases, operating expenses, energy conservation
incentives. capital outlay, retirement of debt, franchisc tax,
and related purposes.
.,. The Electric Fund will maintain an unrestricted and
undesignated balance of annual revenue of at least
12 percent. This is thc minimum necded to maintain
the City's credit worthiness and to adequatcly
provide for economic uncertainties and cash flow
needs.
.,. No portion ofthc Electric Fund balance is restricted
for spccific uscs.
,. The City will budgct a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenucs. The minimum
contingency will be maintained at not less than 3
perccnt of annual revenues.
Telecommullicatiolls FUlld. The Telccommunications
Fund accounts for the revenues and cxpenditures of the
Ashland Fiber Network.
.,. The Tclecommunications Fund wi II maintain a
minimum balance of20 percent of annual revenue as
was established in FY 2006-07.
Internal Service Funds
Internal service funds account for the financing of goods or
services provided by one department or agency to other
departments or agencies of the governmental unit, or to
other governmental units, on a cost reimbursement basis.
Internal service funds use full accrual accounting methods
for financial statement presentations. However, the internal
service funds use a modified accrual basis of accounting
for budgetary purposes. This assures budgctary compliance
with such expenditures as capital construction and acquisi-
tion as well as debt principal transactions.
Central Services FUlld. This fund is divided into Admin-
istration, Computer Services, Finance, City Recorder, and
Public Works Administration/Engineering, and Mainte-
nance. Expenditures are for personnel, materials and
services and capital outlay for these departments. These
functions are supported by charges for services by all
direct servicc departments and divisions.
.,. The Central Services Fund will maintain anunre-
stricted and undesignated balance of annual revenue
of at least 3 percent. This is the minimum needed to
maintain the City's credit worthiness and to ad-
equately provide for economic uncertainties and
cash flow needs.
,. No portion of the Central Services Fund balance is
restricted for specific purposes.
'"" The City will budget a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
city of ash/and A-11
financial management policies
Insurance Services Fllnd. Revenues in this fund are from
service charges from other departments, investment
income, and insurance retrospective rating adjustments.
Expenditures are for insurance premiums, self-insurance
direct claims, and administration.
)i- The Insurance Services Fund will maintain an
unrestricted and un designated balance of $350,000
as recommended in the June 1993 Risk Financing
Study. This balance will be increased annually by the
Consumer Price Index (CPI) to account for inflation.
This is the minimum needed to maintain the City's
insurance programs and provide for uninsured
exposures.
)i- No portion of the Insurance Services Fund balance is
legally restricted for specific uses.
, The City will budget a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Equipment Fllnd. This fund is used to account for the
maintenance and replacement of the City fleet of vehicles.
Revenues are from equipment rental charges. Expenditures
are for personnel, materials and services, and capital
outlay. This fund is divided into two functions: equipment
maintenance and equipment replacement. The purpose of
the equipment replaeement function is to accumulate
adequate funds to replace equipment. This replacement
schedule is updated annually.
, No minimum fund balance is recommended.
)r. No portion of the Equipment fund balance is legally
restricted for specific uses. The City has a policy of
renting equipment at rates that include the replace-
ment cost of the specific piece of equipment.
,. The City will budget a contingency appropriation to
provide for unanticipated non-recurring expenditures
or shortfalls in projected revenues. The minimum
contingency will be maintained at not less than 3
percent of annual revenues.
Trust and Agency Funds
Trust and agency funds account for assets held by a
governmental unit in a trustee capacity or as an agent for
individuals, private organizations. or governmental units,
and/or other funds. These include (a) expendable trust
funds, (b) non-expendable trust funds, (c) pension trust
funds, and (d) agency funds.
Cemetery Trllst Fund. The Cemetery Trust Fund is a
non-expendable trust fund that uses the accrual basis of
A-12 city of ash/and
accounting. Revenues are from interest income and
perpetual care service charges on cemetery operations.
Expenditures are for the repurchase of plots and transfers
of earnings to the cemetcry fund for operations.
,. No minimum fund balance policy is recommended.
Discrete Components Unit
Parks
Parks and Recreation Fllnd. (Special Revenue Fund)
Revenues are from property taxes, charges for services,
and miscellaneous sources. Expenditures are for parks,
recreational, and golf course operations.
Parks Capita/Improvements Fund. (Capital Projects
Fund) This fund is used to account for resources from
grants and inter-fund transfers that are to be expended for
equipment purchases and major park renovations.
Revenues
, The City will estimate its annual revenues by an
objective, analytical process. Because most rev-
enues are sensitive to conditions outside the City's
control, estimates will be conservative.
)r. The City will make every effort to maintain a
diversified and stable revenue base to protect its
operation from short-term fluctuations in anyone
revenue source.
,. With the exception of grants. charges for serviccs,
and earmarked donations, the City will not earmark
revenue for specific purposes in the General Fund.
, The City will establish charges for enterprise funds
that fully support the total cost of the enterprise.
Utility rates will be reviewed annually. Rates will be
adjusted as needed to account for major changes in
consumption and cost increases.
,. The City will charge user fees to the direct beneficia-
ries of City services to recover some or all of the full
cost of providing that service. All user fees will be
reviewed biannually to insure that direct and
overhead costs are recovered in the percentage
approved by City Council.
,. To the extent practicablc, new development shall pay
nccessary fees to meet all identified costs associated
with that development.
financial management policies
;, The City will work aggressively to collect all delin-
quent accounts receivable. When necessary,
collection procedures will include termination of
service. submission to collection agencies, foreclo-
sure, and other available legal remedies.
Expenditures
;, The City will provide employee compensation that is
compctitive with comparable public jurisdictions
within the rclative recruitment area.
,. Estimated wage increases and changes in employee
benefits will be included in the proposed budget
under Personal Services.
,. The City is committed to maintaining and improving
the productivity of its staff by providing a proper
working environment, adequate equipment and
supplies, and appropriate training and supervision.
;, A Social Service appropriation will be included in
the proposed General Fund Budget. This appropria-
tion will increase or decrease relative to the overall
General Fund revenues.
;, An Economic and Cultural Development appropria-
tion will be included in the proposed General Fund
Budget. This appropriation will increase or decrease
relative to the overall Transient Occupancy Tax
Revenues.
Purchasing
;, The City will purchase materials, supplies, and
equipment through a competitive process that
provides the best product for the least cost.
Capital
)- The City will provide for adequate maintenance of
equipment and capital assets. The City will make
regular contributions to the Equipment Replacement
Fund and the City Future General Capital Improve-
ments Account to ensure that monies will bc
available as needed to replace City vehicles and
facilities.
)- The City will update its tive-year Capital lmprove-
mcnts Program biannually, identifying capital needs
and potential capital funding sources. The Capital
Improvements Program will reflect the priorities of
the City Council and the long-range needs of the
community.
)- Future operating costs associated with new capital
improvements will be projected and included in the
long-telm budget forecast.
)- The City will determine and use the most appropriate
method for financing all new capital projects.
,. Special accounts dedicated for capital improvements
will be segregated in the accounting system and
used only for the intended capital purposes.
:;.. The Capital Improvement Plan will encourage a
level capital replacement schedule.
Debts
)- The City will not use long-term borrowing to finance
current operations.
.,. Capital projects, financed through bond proceeds,
will be financed for a period not to exceed the useful
life of the project.
.,. Whenever possible, enterprise debt will be self-
supporting. Regardless of the type of debt issued,
the City will establish a one-year reserve for all self-
supporting debt.
,. The City will seek to maintain and improve its bond
rating to minimize bOITowing costs and to ensure its
access to credit markets.
)- The City will keep the final maturity of general
obligation bonds at or below 20 years. with the
exception of water supply and land acquisition that
will be limited to 30 years.
,. The City will maintain good communications with
bond rating agencies about its financial condition.
.,. The City will not issue general obligation debt,
which combined with all other overIappingjurisdic-
tions, will exceed the medium affordability index.
Risk Management
)- The City will provide an active risk management
program that reduces human suffering and protects
City assets through loss prevention, insurance, and
self-insurance.
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