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HomeMy WebLinkAbout09/16/2025 09.A. Ordinance authorizing the establishment of a Special Revenue Fund 184 "Lodging Tax Fund" `y7ljlt r<- ii! ,1- 14111\1 I!I// . s BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.A. For Meeting of: September 16, 2025 ITEM TITLE: Ordinance authorizing the establishment of a Special Revenue Fund 184 "Lodging Tax Fund" (Convention Center Debt Service Fund) SUBMITTED BY: Craig Warner, Director of Finance & Budget SUMMARY EXPLANATION: The proposed ordinance establishes a dedicated Lodging Tax Fund to receive and account for all lodging tax revenues. Creating a separate fund ensures that these restricted revenues are properly managed, reported, and expended in compliance with RCW 67.28. The fund will provide transparency in the use of lodging tax proceeds and support the City's tourism and economic development efforts. Staff will be requesting a budget amendment in the 4th quarter of 2025 to move approximately $633,000 from the Convention Center Debt Service Fund into this new Lodging Tax Fund. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Pass Ordinance. ATTACHMENTS: Ordinance_Fund 184_redline Ordinance_Fund 184 207 ORDINANCE NO. 2025- AN ORDINANCE authorizing the establishment of a Special Revenue Fund 184 "Lodging Tax Fund", specifying sources of revenue for such fund; and designating the purposes of and the manner of authorizing expenditures from such fund. WHEREAS, the City receives a hotel/motel excise tax per Chapter 67.28 of the Revised Code of Washington (RCW); and WHEREAS, Yakima Municipal Code 3.92.050 provides that all proceeds from the local option hotel/motel excise tax shall be deposited into special funds as appropriated in any budget or otherwise by the City Council; and WHEREAS, it is in the interest of transparency and sound financial management to establish a separate special revenue fund to account for the receipt and disbursement of lodging tax revenues; and WHEREAS, it is the best interests of the City and its residents to formalize the special revenue fund for the hotel/motel excise tax through council action; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The City Council does hereby incorporate the above "whereas" recitals as findings in support of this ordinance to establish a separate Special Revenue Fund 184, to be known as the "Lodging Tax Fund". Section 2. There is hereby added a new City of Yakima Municipal Code Chapter 3.133 which establishes the Lodging Tax Fund for the purpose of accounting for all lodging excise tax revenues as defined in RCW 67.28.181, as currently enacted or as hereafter amended or recodified from time to time, and all expenditures made from such revenues, in accordance with applicable state law and city code. 3.133 Lodging Tax Fund A. There is created the Lodging Tax Fund. B. The Lodging Tax Fund may be established with all revenue from lodging excise taxes as defined in RCW 67.28.180 and RCW 67.28.181 as currently enacted or as hereafter amended or recodified from time to time. C. The money in the Lodging Tax Fund is restricted to eligible uses defined by RCW 67.28, as currently enacted or as hereafter amended or recodified from time to time. Section 3. If any provision of this ordinance is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. 208 Section 4. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 16th day of September, 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk Publication Date: September 20, 2025 Effective Date: October 20, 2025 209 ORDINANCE NO. 2025- AN ORDINANCE authorizing the establishment of a Special Revenue Fund 184 "Lodging Tax Fund", specifying sources of revenue for such fund; and designating the purposes of and the manner of authorizing expenditures from such fund. WHEREAS, the City receives a hotel/motel excise tax per Chapter 67.28 of the Revised Code of Washington (RCW); and WHEREAS, Yakima Municipal Code 3.92.050 provides that all proceeds from the local option hotel/motel excise tax shall be deposited into special funds as appropriated in any budget or otherwise by the City Council; and WHEREAS, it is in the interest of transparency and sound financial management to establish a separate special revenue fund to account for the receipt and disbursement of lodging tax revenues; and WHEREAS, it is the best interests of the City and its residents to formalize the special revenue fund for the hotel/motel excise tax through council action; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. The City Council does hereby incorporate the above "whereas" recitals as findings in support of this ordinance to establish a separate Special Revenue Fund 184, to be known as the "Lodging Tax Fund". Section 2. There is hereby added a new City of Yakima Municipal Code Chapter 3.133 which establishes the Lodging Tax Fund for the purpose of accounting for all lodging excise tax revenues as defined in RCW 67.28.181, as currently enacted or as hereafter amended or recodified from time to time, and all expenditures made from such revenues, in accordance with applicable state law and city code. 3.133 Lodging Tax Fund A There is created the Lodging Tax Fund. B. The Lodging Tax Fund may be established with all revenue from lodging excise taxes as defined in RCW 67.28.180 and RCW 67.28.181 as currently enacted or as hereafter amended or recodified from time to time, C. The money in the Lodging Tax Fund is restricted to eligible uses defined by RCW 67.28, as currently enacted or as hereafter amended or recodified from time to time, Section 3. If any provision of this ordinance is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. 210 Section 4. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 16th day of September, 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: 211