HomeMy WebLinkAbout2011-07 Setting Grants using TOT Repealing 2010-06
RESOLUTION NO. .)0 l \ - 01
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
HOTEL/MOTEL (Transient Occupancy) TAX AND REPEALING
RESOLUTION 2010-06.
THE CITY OF ASHLAND RESOL YES AS FOLLOWS:
SECTION I. Thallhe City Council recognizes lhat lhe source of monies for the Economic and
Cultural Development Granl program is lhe Hotel/Motel Tax also known as the Transient
occupancy Tax (TOT).
SECTION 2.
The following are lhe goals which lhe Budget Conimittee is attempting to meel by granling
money 10 applicanls for:
a) Tourism Promotion:
I. Attract someone who lravels to Ashland from more lhan 50 miles away to attend an
event.
2. Attracl someone who slays the night in Ashland 10 attend an event.
b) Economic Developmenl:
I. Promote increased number, variely and size of employers.
2. Encourage wages al or above median wage.
3. Promole businesses lhal employ 5 10 100 people or is locally owned.
4. Encourage use oflocal resources.
5. Work with Soulhern Oregon University, especially for inlernalional commerce.
6. Encourage businesses lhal efficiently use resources and minimize lheir impact on the
environment such as water and air pollution or crealion of toxic waste.
7. Promote businesses and instilulions thaI encourage suslainability.
c) Cultural Developmenl:
I. Increase the number, variely and size of cultural opportunilies in Ashland
2. Support diversification of the local economy
3. Showcases local talenl
4. Work wilh Soulhern Oregon University on cultural programs
d) Sustainabilily
Wilh a minimum of $12,500 granled, carry oullhe following lypes of projecls: actual work;
training; conferences; grant writing; research; fund-raisers; invenlion/developmenl in these
calegories, including, but not limited to, the examples lisled:
1. Energy
2. Water
3. Forest
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4. Science
5. Appropriale lechnology
6. Gardening & Agriculture
7. Economics
8. Ecology Applications
9. Community building
SECTION 3.
The Cily of Ashland has determined lhat as of July I, 2003, $186,657 or 14.23% of tolal
HOlel/Motel tax revenues were expended on tourism promolion, as defined in Chapler 818 of lhe
2003 Oregon Laws, and will continue to be spent on tourism promolion increased or decreased
annually consistenl with the estimated TOT revenues budgeted. Addilionally, Chapter 818
requires 70% of any increased TOT revenue generaled by a higher tax rate is committed to
lourism promotion.
Approprialions for tourism are based upon the following percenlages established in FY 2009-10
when lhe rale was increased from 7%-9%:
1. A minimum of 14.23% of lhe eSlimated TOT revenue 10 be generaled by lhe first 7% tax
rate for tourism promotion per Chapler 818,
2. A minimum of 70% of the estimated TOT revenue 10 be generated by additional lax rates
approved by Council on June 3, 2008 for tourism promolion per Chapter 818.
ment Grants - Tourism
$293,160
$110,000
$64,423
$14,375
$19,785
Ifthe actual TOT revenue, dedicated for Tourism, is in excess of the above allocations or if
actual, qualifying expenditures in the year are less lhan the approprialed amounl, the additional
or unused amounl(s) will be reserved for future Tourism relaled projecls or Capital
Improvements lhal qualify per the state definilion as determined by Council.
The remaining estimated TOT revenue (not reslricled by use) will be appropriated for olher uses
lhrough lhe budgel process with the following priorilies and dollar amounts as minimums unless
. ffi' II d . ft t" I' . I
msu lClen ax procee s remam a er mee mg ounsm reqUlremen s:
I sl Priorily General Fund operalions - the greater of 70% of Unrestricted $1,108,522
funds or
2nd Priorily City Economic Development program - the greater of 10% of $150,000
Unrestricted funds or ,
3rd Priority City Granl program for FY 2012 $124,335
Economic Developmenl programs or other projecls are Cily activities unless otherwise specified
by Council prior to the budget process. Council may delermine that such funds are available for
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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, lhe highesl priority uses
will receive their full allocalion before a lower priority allocation. Unrestricled TOT revenue
unspenl in a budget year becomes part of lhe General Fund unrestricted ending fund balance
unless otherwise determined by Cily Council.
By January 31 of each year each recipienl of a granl shall submit a report 10 lhe cily council
setting forth how the grant funds received were expended in furtherance of lhe goals sel forth in
Section 2.
~
SECTION 4. The following requiremenls are established for the Economic and Cultural
Development Granls:
a) Granlee shall be a 50 I (c) non-profil agency.
b) Granlee shall be a non-governmental agency.
c) Granlee shall promole livability for lhe citizens of Ashland.
d) The minimumgranl proposal will be $2,500.
e) The grant will benefil Ashland in lerms of cultural enrichment and/or aClivilies of an
economic nalure.
f) Granlee shall serve lhe populalion in Ashland bul may encompass other venues in
lhe Rogue Valley. Monies granted are inlended 10 be used for programs. or
services performed or provided wilhin the Cily of Ashland or immediale areas.
g) All Granlees shall provide an annual report 10 be eligible for fulure funding.
SECTION 5. Resolulion 2010-06 is repealed upon passage oflhis resolution.
SECTION 6. This resolution was duly PASSED and ADOPTED this 4!- /
~ ~W"ff'''"PO" ,i""e, bytl" M.y".
Barbara Christensen, Cily Recorder
, day of
SIGNED and APPROVED this .2 day of
!kL
,2011.
Attachment:
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Estimated dollar allocation for FY 2011-2012 only
Revenue:
Transient Occupancy Tax $ 1,884,600
Expense:
Non Tourism:
General Fund $ 1,108,522
Economic Development 150,000
Small Grants (minimum $12,500 for Sustainability) 124,335
Total Non Tourism $ 1,382,857
Tourism:
Chamber of Commerce VCB $ 293,160
OSF 110,000
Small Grantees 84,423
Public Art 14,375
Qualifying City Projects or FY 2012 Grants 19,785
Total Tourism $ 501,743
Total Economic and Cultural Development Funding $ 1,884,600
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