HomeMy WebLinkAbout2019-17 Allocating anticipated transient occupancy tax Repealed By 2020-07 Page 1 of 2
1 RESOLUTION NO. 2019-17
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASHLAND
ALLOCATING ANTICIPATED TRANSIENT OCCUPANCY TAX
3 TOURISM RESTRICTED REVENUES FOR THE BIENNIUM 2019-2021
4 BUDGET AND REPEALING RESOLUTION 2019-03.
5 RECITALS:
A. That the City of Ashland collects a Transient Occupancy Tax (TOT)pursuant to Ashland
6 Municipal Code 4.24. Revenues from the Transient Occupancy Tax are used to fund general
7 governmental expenses, economic development, tourism promotion and related infrastructure
and the City's Economic, Cultural, and Sustainability Grant program.
8 B. The City of Ashland has determined that as of July 1, 2003, $186,657 or 14.23 percent of the
9 City of Ashland's total Hotel/Motel tax revenues were expended on tourism promotion, as
defined in ORS 320.350.
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C. ORS 320.350 requires 70 percent of any increased TOT revenue generated by tax rate
11 increases after 2003 be committed to tourism promotion.
12 D. Appropriations for tourism promotion are based upon the following percentages established
in FY 2009-10 when the rate was increased from 7 percent—9 percent:
13 • A minimum of 14.23 percent of the estimated TOT revenue generated by the original 7
14 percent tax rate for tourism promotion per ORS 320.350 and,
• A minimum of 70 percent of the estimated TOT revenue generated by additional tax
15 rates approved by Council on June 3, 2008 consistent with ORS 320.350.
16 E. Appropriations for the Tax Rate increase of one percent on August 1, 2018 are based on
projected collections and allocated as follows:
17 • 70 percent of the estimated TOT revenue generated by the additional 1 percent tax rate
18 for long term parking supply pursuant to ORS 320.350 and,
• 30 percent of the estimated TOT revenue generated by additional 1 percent tax rate for
19
General Government Operations.
20 THE CITY OF ASHLAND RESOLVES AS FOLLOWS:
21 SECTION 1.
For the Biennium 2019-2021, the City of Ashland expects to budget an estimated $6,552,738 for
22 Transient Occupancy Tax collections. The annual allocation between tourism and general
23 governmental operations is as follows:
24 TOT Anticipated Revenues % of Total FY 2019-20 FY 2020-21 •
Tourism Restricted(ORS 818) 29% 949,884 949,884 ,
25 General Government Operations 71% 2,326,485 2,326,485
TOTALS 100% $3,276,369 $3,276,369
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Resolution No.2019-17 Page 1 of 2
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1 Tourism Allocation
2 Tourism restricted funds will be allocated as follows:
Tourism Restricted TOT Allocation % of 2019-2020 2020-2021
3 Tourism
TOTAL Tourism TOT 949,884 949,884
4
Long Term Parking Supply (70%of 1%increase in 2018) 245,727 245,727
5 Remaining Tourism TOT 704,157 704,157
6 Visitor& Convention Bureau—Chamber of 47% 446,338 446,338
Commerce
7 Oregon Shakespeare Festival—(13.5%) Fixed 110,000 110,000
City Economic, Cultural, and Sustainability Grants 10% 80,000 80,000
8 Public Art 3% 21,125 21,125
9 Other City Tourism eligible Capital Projects Remainder 46,694 46,694
10 TOTAL RESTRICTED TOT ALLOCATION $949,884 $949,884
11 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
12 unused amount(s) will be reserved for qualifying future Tourism related expenditures as
13
determined b y Council.
Non Tourism Allocation
14
The remaining estimated TOT revenue allocated for general government operations will be 100
15 percent appropriated through the budget process. Unrestricted TOT revenue unspent in a budget
year becomes part of the General Fund unrestricted ending fund balance unless otherwise
16 determined by City Council.
17 Unrestricted TOT Allocation 2019-2020 2020-2021
TOTALS $2,133,571 $2,133,571
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SECTION 2. Resolution 2019-03 is repealed upon passage of this resolution.
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SECTION 3. This resolution was duly PASSED and ADOPTED this 4th, day of June,2019 and
20 takes effect upon signing by the Mayor.
21
22 Melissa Huhtala, City Recorder
23 SIGNED and APPROVED this 5th day of June, 2019.
24 ) 40)
25 ' Jo Stromberg, Mayor
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Revie ed as to form: —
27 /,./
David Lohman, City Attorney
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Resolution No.2019-17 Page 2 of 2