Title
RESOLUTION DISTRIBUTING THE ESTIMATED 2021 HOTEL-MOTEL AND FOOD AND BEVERAGE TOURISM TAXES.
Body
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 the tourism tax collections will be $9 million for 2021. A significant amount of these collections- more than 60%- are set aside through specific authorizing legislation that tied 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
* Spirit Mountain Tax Abatement Bonds (Grand Avenue Chalet & Improvements) - $7,055,000
* Minnesota Slip Bridge Interfund Loan - $2,200,000
* Promotion and Publicity 3% Hotel/Motel Tax Mandate
WHEREAS, the allocations for City funding to the General Fund and Parks are focused on the costs of providing services for events and tourist-focused activities which include but are not limited to: Lakewalk, Enger Tower, Rose Garden, Public Safety staffing and road closures for special events.
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 2021 hotel-motel and food and beverage tourism taxes, as estimated, be distributed in the following manner:
Promotional
Capital
& Operational
Support &
Total
Support
Debt Service
3% Hotel/Motel Tax:
$2,181,100
$834,300
$1,346,800
1% Hotel/Motel Tax:
$722,800
$722,800
$0
1% Food & Beverage:
$1,959,100
$1,959,100
$0
Additional 2% Hotel/Motel:
$1,351,700
$675,800
$675,900
Additional .75% Food & Beverage:
$1,469,300
$0
$1,469,300
Additional .5% Food&Bev & .5% Hotel/Motel
$1,316,000
$0
$1,316,000
Tourism Tax Fund Balance
$719,400
$25,600...
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