HomeMy WebLinkAbout2008-35 Transient Occupancy Tax - Repealing 2007-08
RESOLUTION NO. aCO~..3S
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ASHLAND REITERATING ITS POLICY RELATING TO THE
EXPENDITURE OF MONIES FOR ECONOMIC AND CULTURAL
DEVELOPMENT TO THE HOTEUMOTEL (Transient
Occupancy) TAX AND REPEALING RESOLUTION 2007-08.
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. Encourage businesses that efficiently use water and minimize their impact on the
environment such as water and air pollution or creation of 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.
The City of Ashland has determined that as of July 1,2003, $186,657 or 14.230/0 of
total Hotel/Motel tax revenues were expended on tourism promotion, as defined in
Chapter 818 of the 2003 Oregon laws, and will continue to be spent on tourism
promotion increased or decreased annually consistent with the estimated TOT
revenues budgeted. Additionally, Chapter 818 requires 700/0 of any increased TOT
revenue generated by a higher tax rate is committed to tourism promotion.
Beginning in Fiscal Year 2009-2010, the City Council will appropriate:
1- 100708 TOT Revised Resolution.res
1. A minimum of 14.230/0 of the estimated TOT revenue to be generated by the first
70/0 tax rate for tourism promotion per Chapter 818,
2. A minimum of 700/0 of the estimated TOT revenue to be generated by additional
tax rates approved by Council on June 3, 2008 for tourism promotion per
Chapter 818.
The amount to be calculated and appropriated for tourism through the budget process
with the following percentage distribution:
Chamber of Commerce VCB
Ore on Shakes eare Festival
Economic and Cultural Develo ment Grants - Tourism
Public Art
Remainin to tourism ro'ects determined in bud et rocess
430/0
23%
210/0
30/0
100/0
The remaining TOT revenue (not restricted by use) calculated and appropriated for
other uses through the budget process with the following priorities and dollar amounts
as minimums unless insufficient tax proceeds remain after meeting tourism
requirements:
1 st Priority General Fund operations - the greater of 700k of
Unrestricted funds or
2nd Priority City Economic Development program the greater of 100/0
of Unrestricted funds or
3rd Priorit Other non-tourism ro'ects determined b Council
$1,000,000
$150,000
Remainin
Economic Development programs or other projects are City activities unless otherwise
specified by Council prior to the budget process. Council may determine that such
funds are available for Economic granting purposes and they will then be made
available for the coming budget process and allocation.
If insufficient TOT revenues are generated for the above allocations, the highest priority
uses will receive their full allocation before a lower priority allocation.
By January 31 of each year each recipient of a grant 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.
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
2- 100708 TOT Revised Resolution.res
services performed or provided within the City of Ashland or immediate areas.
SECTION 5. Resolution 2007-08 is repealed upon passage of this resolution.
This resolution was duly PASSED and ADOPTED this '/ , day
, 2008, and takes effect upon signing by the Mayor.
arbara Christensen, City Recorder
SIGNED and APPROVED this /0 day of tJ~k.r-
,2008.
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Attachment: Allocation for FY 2008-2009 only.
Table Revised for New Tax 10/1/08 Estimation
Starting 10/1/08 Staff Recommendation
TOTAL REVENUE $1,775,000
Subtotal Non Tourism $1,383,000
. General Fund $1,017,000
. Small Grants $116,000
. Chamber Economic Dev. $80,000
. City Economic Dev./Strategic Planning $170,000
Subtotal tourism $392,000
. VCB Qrant $225,000
. OSF $120,000
. Small tourism grants $9,000
. Public Art $9,000
. Qualified city projects $29,000
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