HomeMy WebLinkAbout2010-06 Transient Occupancy Tax - Repealing 2008-35 RESOLUTION NO. aDID- 0(4'
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 2008 -35.
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 also known
as the Transient occupancy Tax (TOT).
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 resources and minimize their impact
on the environment such as water and air pollution or creation of toxic waste.
7. Promote businesses and institutions that encourage sustainability.
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
d) Sustainability
With a minimum of $12,500 granted, carry out the following types of projects: actual
work; training; conferences; grant writing; research; fund raisers; invention /development
in these categories, including, but not limited to, the examples listed:
1. Energy
2. Water
3. Forest
4. Science
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5. Appropriate technology
6. Gardening Agriculture
7. Economics
8. Ecology Applications
9. Community building
SECTION 3.
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. Additionally, Chapter 818 requires 70% of any increased TOT
revenue generated by a higher tax rate is committed to tourism promotion.
Appropriations for tourism are based upon the following percentages established in FY
2009 -10 when the rate was increased from 7 -9
1. A minimum of 14.23% of the estimated TOT revenue to be generated by the first
7% tax rate for tourism promotion per Chapter 818,
2. A minimum of 70% 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 annual allocation of total appropriations for tourism estimated for the ensuing
budget year is as follows unless specifically amended by Council:
Chamber of Commerce VCB $280,000
Oregon Shakespeare Festival $110,000
Economic and Cultural Development Grants Tourism $55,000
Public Art $14,375
Other City Capital Projects that qualify or Grants for FY 2012 $19,785
If the actual TOT revenue, dedicated for Tourism, is in excess of 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 future Tourism related projects
or Capital Improvements that qualify per the state definition as determined by Council.
The remaining estimated TOT revenue (not restricted by use) will be 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:
1st Priority General Fund operations the greater of 70% of $1,058,760
Unrestricted funds or
2nd Priority City Economic Development program the greater of 10% $150,000
of Unrestricted funds or
3rd Priority City Grant program for FY 2011 $112,080
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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. Unrestricted TOT
revenue unspent in a budget year becomes part of the General Fund unrestricted
ending fund balance unless otherwise determined by City Council.
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 requirements 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 terms of cultural enrichment and /or 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
services performed or provided within the City of Ashland or immediate areas.
g) All Grantees shall provide an annual report to be eligible for future funding.
SECTION 5. Resolution 2008 -35 is repealed upon passage of this resolution.
SECTION This resolution was duly PASSED and ADOPTED this /6 day
of 7' //a, 2010, and takes effect upon signing by the Mayor.
/r,
:ara hristensen, City Recorder
SIGNED and APPROVED this /7 day of Itery 2010.
4' 1
i n Stromberg, Mayor
Reviewed as to form:
Richard Appicel�/ ity Attorney
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Attachment: Estimated dollar allocation for FY 2010 -2011 only.
Revenue:
Transient Occupancy Tax 1,800,000
Expense:
Non Tourism:
General Fund 1,058,760
Economic Development 150,000
Small Grants (minimum $12,500 for Sustainability) 112,080
Total Non Tourism 1,320,840
Tourism:
Chamber of Commerce VCB 280,000
OSF 110,000
Small Grantees 55,000
Public Art 14,375
Qualifying City Projects or FY 2012 Grants 19,785
Total Tourism 479,160
Total Economic and Cultural Development Funding 1,800,000
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