Title
RESOLUTION DISTRIBUTING THE ESTIMATED 2027 HOTEL-MOTEL AND FOOD AND BEVERAGE TOURISM TAXES.
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CITY PROPOSAL:
WHEREAS, Tourism taxes are collected on specific purchases and are used to fund legislatively allowable expenses mandated by Minnesota laws and City ordinance.
WHEREAS, it is expected that tourism tax collections will amount to approximately $14.83 million in 2027. A significant amount of these collections- more than 50%- are set aside through specific authorizing legislation that tie bonding projects to tourism, or through previously stated and mandated commitments. These are:
DECC Improvement Refunding Bonds (AMSOIL Arena) - $33,440,000
Tourism Tax Revenue Bonds (St Louis River Corridor) - $18,000,000
Parks-Based Public Athletic Facilities - $36,000,000
Spirit Mountain Tax Abatement Bonds (Grand Avenue Chalet & Improvements) - $7,055,000
Lake Front Restoration Bonds Phase I - $1,995,000
Lake Front Restoration Bonds Phase II - $3,085,000
Promotion and Publicity 3% Hotel/Motel Tax Mandate
WHEREAS, the allocations for City funding to the General Fund and Parks Fund are focused on the costs of providing services for events and tourist-focused activities. The general fund supports: providing officers for special events, bike patrol in Canal Park, officers to patrol and respond to calls in tourist areas, fire department staff for special events along with traffic control, permitting, risk analysis, and other public safety resources, maintaining the transportation network including plowing, sanding, patching, and sweeping streets used by both residents and tourists, operating and maintaining our bridges particularly the MN Slip Bridge and the Aerial Lift Bridge, the collecting, accounting, reporting, and administration of the tourism taxes, and the maintaining of parks and facilities used by tourists including, but not limited to, the Lakewalk, Enger Tower, and the Rose Garden.
WHEREAS, the remainder can be spent in ways that align with legislative intent in support of our tourism economy. These funds cannot be unilaterally applied to other non-tourism organizational needs of the City.
RESOLVED, that the 2027 hotel-motel and food and beverage tourism taxes, as estimated, be distributed in the following manner:
Statement of Purpose
STATEMENT OF PURPOSE: This resolution distributes the 2027 estimated tourism taxes as required by Minnesota State Statutes, City ordinance, or City policy. $14.83 million is budgeted to be collected in 2027. A comparison of 2026 approved allocations to 2027 proposed allocations is attached as Exhibit A.
For 2027, the City intends to use $1,070,900 of unappropriated fund balance from the tourism tax fund.