Agendas and Minutes

Citizens' Budget Committee (View All)

Transient Occupancy Tax

Thursday, March 11, 2004

These Minutes are preliminary pending approval by Council.

Transient Occupancy Tax
Draft Minutes
March 11, 2004 12:00pm
Siskiyou Room, 51 Winburn Way

Call to Order

00 The meeting was called to order at 12:08 PM.

Roll Call

00 Council Present: Cate Hartzell, Chris Hearn, and Kate Jackson
Staff Present: Mike Franell, Lee Tuneberg, and Bryn Morrison

Approval of Minutes

00 It was determined that the minutes from 2/23/04 still need to be approved. Tuneberg will present to council when prepared.
00000Approval of subcommittee Minutes of February 24, 2004
Minutes on page four, first paragraph, last sentence are revised to read, "Hartzell responded that was to try to reduce the competition of the small and larger organizations.
00000Hartzell/Hearn m/s to accept minutes as revised. All Ayes.

Transient Occupancy Tax

Please see attachments:

Hearn presented an email document to council and staff dated 3/11. A document that was dated 3/6 from OSF and a memo dated 3/11by Mike Franell and Lee Tuneberg were also presented.

Hearn put on record that he would like to change his previous position on the baseline percentage. He believes that in HB 2267, that the money that the City spent on welcoming and tourism promotion is 27.3%.

Consideration of changes to current resolution

Jackson believes that the Resolution should first, state what they want to achieve and secondly, who. It was clarified that the percentage of tourism promotion is out of the 100% of funds from the revenue of TOT. Hearn believes that welcoming from HB 2267 needs to be defined in the new Resolution. It was determined that the Council needs to express a baseline for tourism promotion to abide by the state law and the state law doesn't necessarily have to be included in the Resolution. Tuneberg suggested that the Resolution include two parts: the percentage that is for grants (now 33%), and the percentage baseline or minimum for tourism. Franell cautioned that the 15% might be misleading. Whatever percentage the Council determines is the baseline for tourism promotion, you would multiply that by 3 and the rest would be available for other than tourism promotion. In the case of using 15%, 55% would be available for other than tourism.

It was determined by the subcommittee to present the following to council in a study session for the council meeting on April 6:

Hartzell/Jackson m/s to recommend the following items to council. Hearn opposed.

Section 1:

00000 Retain

Section 3, revised to be Section 2:

Would include the following goals:

1. Promotion of Tourism
2. Economic Development and include categories A, C, D, and E from Section 3 of Resolution 2000-25.
3. Cultural Development

Section 2, revised to be Section 3:

00000 Retain first sentence and last three sentences.
Add a sentence related to the percent going to tourism promotion.
Define State Law.
All grantees create a financial report and provide to Finance Department by January 31 of each year.

Hearn m/s adding in section 2 after 60% to Chamber of Commerce for use by VCB per in tourism promotion, and 28% for OSF. These funds will be considered tourism promotion. Hearn stated he would keep the allocations as they are in the Resolution as he sees in accordance with the state law. Motion failed due to lack of second.

Hartzell/Jackson m/s to ask council to let the subcommittee continue to look at economic development process and the targets for the TOT funds, non-tourism related. All Ayes.

Grant Process

It was determined to not mail the grant applications until after the study session in April.


00 The meeting was adjourned at 2:00 PM.

Respectively submitted,
Bryn Morrison, Administrative Secretary, Finance Department

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