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HomeMy WebLinkAbout2004-062 Create Tourism Promotion Area Fund ORDINANCE NO. 2004 - 62 AN ORDINANCE relatmg to funds and accounts; creatmg a Tourism Promotion Area Fund, designatmg the sources of revenue and permissible expenditures from such fund, and enacting Chapter 3 117 "Tourism Promotion Area Fund" as a new Chapter and Sections 3 117 010, 3 117 020 and 3 117 030 as new sections of the City of Yakima Municipal Code. BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Chapter 3 117 "Tourism Promotion Area Fund" and Sections 3 117 010, 3 117 020 and 3 117 030 thereof are hereby enacted as a new chapter and new sections of the City of Yakima Municipal Code to read as follows: Chapter 3.117 Tourism Promotion Area Fund Sections: 3 117 010 Fund created — Purposes. 3 117 020 Source of Funds 3 117 030 Expenditures 3.117.010 Fund created — Purposes. There is created a fund to be known as the "Tourism Promotion Area Fund." Money m this fund shall be expended in accordance with YMC § 5.99 050 to fund activities designed to mcrease tourism promotion and convention busmess within the Yakima County Tourism Promotion Area, including but not limited to marketing for mcreased convention business, local tourism, and recruiting of mayor sporting events. 3.117.020 Source of funds. From time to time, the City Council shall budget, appropriate or otherwise authorize the transfer of money from any available source into such fund. These may include the Tourism Promotion Charge, and other resources as deemed appropriate by Council. 3.117.030 Expenditures. Expenditures from such fund shall be only for the purposes mentioned m YMC § 3 117 010 and YMC § 5 99 050 No expenditures shall be made from such fund unless the City Council approves such expenditures by passing an ordinance appropriating money within the fund for the purpose for which the expenditure is to be made, or by mcludmg an appropriation for such purpose m the budget. Section 2. This ordmance shall be in full force and effect thirty (30) days after its passage, approval and publication as provided by law and by City Charter PASSED BY THE CITY COUNCIL, signed and approved this 19th day of October 2004 (I 41j/ n cr 0., UL P GEORGE, MAYOR ATTEST CITY CLERK Publication Date. 10 - 22 - 2004 Effective Date 11 -21 -2004 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of October 19, 2004 ITEM TITLE. Consideration of Legislation regarding the Tourism Promotion Area by A. An ordinance creating the Tourism Promotion Area (TPA) Fund; and B An ordinance amending the 2004 budget and making Appropriations within the Tourism Promotion Area Fund to promote Yakima as a tourism destination SUBMITTED BY Kathy Coffey, President and CEO Yakima Valley Visitors and Convention Bureau Cindy Epperson, Financial Services Manager CONTACT PERSON/TELEPHONE Kathy Coffey — 575 -6062 SUMMARY EXPLANATION Recently the Yakima City Council passed Ordinance No. 2004 -17, establishing the Yakima County Tourism Promotion Area (TPA). Under the agreement, and in conjunction with the Yakima Hotel and Motel Commission recommendation, the Yakima Valley Visitors and Convention Bureau as Administrator of the TPA fund request an appropriation of $130,000 to go toward the 2004 TPA expenses. These expenses are necessary to begin to implement the recognized importance of tourism within Yakima County Tourism Promotion Area as quickly as possible. The Yakima Hotel and Motel Commission has reviewed and unanimously adopted a budget of $120,796 for 2004 (The appropriation is more than the original budget submitted to the Commission because it is proposed to reimburse the Contingency Fund for start-up costs relating to the establishment of the TPA. Also, if the revenues are stronger than anticipated, the Comnussion could recommend additional marketing efforts before year end.) The shoulder and slow season for the hotel/motel industry is quickly approaching and immediate action is requested to set in motion the marketing plan the Bureau and Commission have jointly composed. The projected budget, which was originally outlined in early August, reflected the collection of the TPA funds beginning in October of 2004 The City actually received the first distribution from the Department of Revenue in September for $32,230 Therefore, a cash flow reserve is being built in this first year of operations. To properly account for this new funding source, the attached ordinances create: A) a new Tourism Promotion Area fund, and B) an appropriation for the remainder of 2004 Resolution Ordinance 2 Contract Other (Specify) Funding Source Tourist ro otion Area Charges /A sessments APPROVED FOR SUBMITTAL A City Manager STAFF RECOMMENDATION A) Pass Ordinance creating the Tourist Promotion Area Fund, and B) Read Ordinance by title only at the October 19, 2004 meeting; pass Ordinance after second reading at the November 2, 2004 meetmg. BOARD /COMMISSION RECOMMENDATION Yakima Hotel and Motel. Commission adopted the 2004 budget at their meeting on September 30, 2004 (A) Ordinance passed. ORDINANCE NO. 2004 COUNCIL ACTION (B) First reading or ordmance, second reading scheduled 11 -2 -2004