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HomeMy WebLinkAbout2006-68 TOT as amended EXHIBIT A TO RESOLUTION AMENDING RESOLUTION NO. 2006-68 RESOLUTION NO 2006-68, AS AMENDED ON AUGUST 28, 2006 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING ALLOWABLE USES OF HOTEL- MOTEL ROOM OCCUPANCY TAX REVENUES RESULTING FROM AN INCREASE IN THE TAX RATE FROM 8% TO 10%, WHEREAS, 1. The City of Ukiah in 1965 adopted Sections 1750-1763 (Chapter 8A of Division One) of the Ukiah City Code ("UCC"), establishing a hotel-motel room occupancy tax by an' ordinance known as the Uniform Transient Occupancy Tax Ordinance; and 2. Said tax is a general excise tax imposed on each person paying for the privilege of occupying any hotel or motel located within the City; and 3. The revenues produced by the Hotel-Motel Room Occupancy Tax are deposited into the City's general fund and used for general governmental purposes of the City; and 4. At least since 1990, the rate of tax has been established by UCC Section 1752 at 8% of the rent charged by a hotel or motel operator to stay in a room in the hotel or motel; and 5. The City Council has determined to present to the voters of the City at the Statewide General election scheduled for November 7, 2006, a measure which would increase the tax rate provided in UCC Section 1752 to 10% of the rent charged by a hotel or motel operator ("rate increase"), but would make no other changes to the Uniform Transient Occupancy Tax Ordinance; and 6. If the rate increase is approved by a majority vote of the voters in the November 7, 2006, election, the Hotel-Motel Room Occupancy Tax will remain a general excise tax in the City to be used for the general governmental purposes of the City; and 7. The City Council expects the revenues from the City's Hotel-Motel Room Occupancy Tax to increase in the coming years due to the increase in the number of hotels and motels within the City; and 8. The City Council also expects an increase in revenues deposited in the general fund resulting from the rate increase and increased promotional efforts if the increase is approved by the voters; and 9. The City Council wants to inform the voters of the City and future City Councils how it expects to spend the revenue increase to the City resulting from the rate increase; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The City Council shall use increased revenues that may result from the tax increase exclusively for the following purposes: A. For the first two years, not less than 75% shall be expended for promotion of the City of Ukiah and its tourist industry, and not less than 50% thereafter, B. The balance shall be expended for: * Beautification of commercial areas within the City of Ukiah; * Economic development within the City of Ukiah; * Park development and maintenance within the City of Ukiah; * Scholarships for local children to attend local recreation programs. 2. The revenues expended for promotion of the City of Ukiah and its tourist industry as specified in Section 1 .A. of this Resolution shall be administered by the Greater Ukiah Chamber of Commerce subject to an annual performance agreement with the City of Ukiah. 3. The revenues expended for promotion of the City of Ukiah and its tourist industry as specified in Section 1.A. of this Resolution shall be administered by the Greater Ukiah Chamber of Commerce subject to an annual performance agreement with the City of Ukiah. 4. Prior to conducting public hearings on the annual budget, the Finance Director shall report to the City Council the total tax revenues attributable to the tax increase projected for the next fiscal year, commencing July 1. The projection shall be based on the actual revenues received from the tax increase in the previous fiscal year and reasonable assumptions about the potential change in such revenues for the upcoming fiscal year. A specific budget for the use of these revenues among the categories specified in Section I of this Resolution shall be prepared and approved each year as part of the City Council's approval of the annual budget for the City of Ukiah. 5. The City Council does not intend any portion of this resolution to change the Hotel-Motel Room Occupancy Tax from a general excise tax to a special tax or assessment. If a court of competent jurisdiction were to determine in a final, non- appealable judgment that this resolution or any portion thereof converts such tax or all or any portion of the revenues produced by such tax from a general tax to a special tax or assessment, then this resolution is and shall be to that extent null and void. 2 PASSED AND ADOPTED, as amended, this 28th day of August, 2006, by the following roll call vote: AYES: NOES: ABSENT: Councilmember Crane, McCowen, Rodin, Baldwin and Mayor Ashiku None / Mark Ashiku, Mayor / ATTEST: ~ ~ail Petersen, City Clerk 3