HomeMy WebLinkAbout2018-23-Allocationg anticipated revenues from the Transient occupancy tax
RESOLUTION NO. 2018-23
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND
ALLOCATING ANTICIPATED REVENUES FROM THE TRANSIENT
OCCUPANCY TAX FOR THE BIENNIUM 2017-2019 BUDGET AND
REPEALING RESOLUTION 2017-03.
RECITALS:
A. That the City of Ashland collects a Transient Occupancy Tax (TOT) pursuant to Ashland
Municipal Code 4.24. Revenues from the Transient Occupancy Tax are used to fund general
governmental expenses, economic development, tourism promotion and related infrastructure
and the City's Economic, Cultural, and Sustainability Grant program.
B. The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23% of the City
of Ashland's total Hotel/Motel tax revenues were expended on tourism promotion, as defined
in Chapter 818 of the 2003 Oregon Laws.
C. Chapter 818 requires 70% of any increased TOT revenue generated by tax rate increases after
2003 be committed to tourism promotion.
D. Appropriations for tourism promotion are based upon the following percentages established
in FY 2009-10 when the rate was increased from 7%-9%:
• A minimum of 14.23% of the estimated TOT revenue generated by the original 7% tax
rate for tourism promotion per Chapter 818 and,
• A minimum of 70% of the estimated TOT revenue generated by additional tax rates
approved by Council on June 3, 2008 consistent with Chapter 818.
E. Appropriations for the Tax Rate increase of one percent on August 1, 2018 are based on
projected collections and allocated as follows:
• 70% of the estimated TOT revenue generated by the additional I% tax rate for long term
parking supply pursuant Chapter 818 and,
• 30% of the estimated TOT revenue generated by additional 1% tax rate.
THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
SECTION 1.
For the Biennium 2017-2019, the City of Ashland expects to budget an estimated $5,875,900 for
Transient Occupancy Tax collections. The annual allocation between tourism and general
governmental operations is as follows:
TOT Anticipated Revenues % of Total FY 2017-18 FY 2018-19
Tourism 23.88% 770,070 797,033
General Government Operations 65.67% 2,117,330 2,191,467
Increased TOT 1 percent (from 9 to 10.45% 0 348,658
10 percent)
TOTALS 100% $2,887,400 $3,337,158
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Tourism Portion
Tourism restricted funds will be allocated as follows:
Tourism Restricted TOT Allocation % of 2017-2018 2018-2019
Tourism
Chamber of Commerce - Visitor & Convention Bureau 56% 431,239 446,338
I Oregon Shakespeare Festival - (14.3% & 13.8%) Fixed 110,000 110,000
City Economic, Cultural, and Sustainability Grants 10% 77,007 79,703
Public Art 3% 23,102 23,911
Other City Tourism eligible Capital Projects Remainder 128,722 137,080
Long Term Parking Supply 70% of 0 244,060
Increased
TOT
TOTALS $770,070 $797,033
If actual tourism specific TOT revenue collections exceed the above allocations or if actual,
qualifying expenditures in the year are less than the appropriated amount, the additional or
unused amount(s) will be reserved for qualifying future Tourism related expenditures as
determined by Council.
Non Tourism Portion
The remaining estimated TOT revenue allocated for general government operations will be
100% appropriated through the budget process to fund the Economic Development program and
Economic, Cultural, and Sustainability Grant program as specified below and other uses as
directed by Council.
Unrestricted TOT Allocation % of 2017-2018 2018-2019
Unrestricted
City Economic Development Program 8% 175,000 185,000
City Economic, Cultural, and Sustainability Grants 7% 150,000 150,000
General Fund - General Governmental Operations 85% 1,792,330 1,856,467
General Fund-Public Safety Operations 30% of 0 104,598
Increased TOT
TOTALS $2,117,330 $2,296,065
Unrestricted TOT revenue unspent in a budget year becomes part of the General Fund
unrestricted ending fund balance unless otherwise determined by City Council.
SECTION 2. Resolution 2017-03 is repealed upon passage of this resolution.
SECTION 3. This resolution was duly PASSED and ADOPTED this 11`" , day of
2018 and takes effect upon signing by the Mayor.
Melissa Huhtala, City Recorder
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SIGNED and APPROVED this t day of 'TU-r i , 2018.
e~
J P~S~tromlrg, Mayor lVJ
Reviewed as to form:
David Lohman, City Attorney
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