HomeMy WebLinkAbout02/05/2019 11 2019 Lodging Tax Funds Allocation - Sundome to\'4\lyy tbxk ik 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEM ENT
Item No. 11.
For Meeting of: February 5, 2019
ITEM TITLE: Consideration of allocating $75,000 in Lodging Tax funds to the
Sundome in 2019
SUBMITTED BY: Steve Groom, Director of Finance and Budget
SUMMARY EXPLANATION:
At the January 15, 2019 City Council meeting, Mayor Coffey as Chair of the Lodging Tax
Advisory Committee (LTAC), distributed to Council a letter from the LTAC to Council asking that
$75,000 in lodging tax funds be allocated to the Sundome (letter attached). Council directed staff
to add this item to the February 5, 2019 City Council business meeting agenda for further
discussion and action.
ITEM BUDGETED:
STRATEGIC PRIORITY:
APPROVED FOR '
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
BOARD/COMMITTEE RECOMMENDATION:
The Lodging Tax Advisory Committee supports this funding allocation.
ATTACHMENTS:
Description Upload Date Type
LT r 1/2 /201 r Me o
LTA r quest 1/1 / 019 r Memo
LODGING TAX
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Answering Questions
1 . Lodging Tax Statutes
2 . City of Yakima Lodging Tax and LTAC processes
3 . Follow up on the $75,000 LTAC SunDome recommendation
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What Can Lodging Tax Be Spent On ? `t d fQ'
1. Tourism marketing;
2 . The marketing and operations of special events and festivals
designed to attract tourists;
3 . Supporting the operations and capital expenditures of tourism-
related facilities owned or operated by a municipality or a public
facilities district created under chapters 35 .57 and 36. 100 RCW; or
4. Supporting the operations of tourism-related facilities owned or
operated by nonprofit organizations
( RCW 67. 28. 1816)
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Who are Eligible Recipients ?
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1. The local lodging tax advisory committee must select the candidates from amongst
the applicants applying for use of revenues in this chapter and provide a list of such
candidates and recommended amounts of funding to the municipality for final
determination. The municipality may choose only recipients from the list of candidates
and recommended amounts provided by the local lodging tax advisory committee.
2. All recipients must submit a report to the municipality describing the actual number
of people traveling for business or pleasure on a trip:
• Away from their place of residence or business and staying overnight in paid accommodations;
• To a place fifty miles or more one way from their place of residence or business for the day or
staying overnight; or
• From another country or state outside of their place of residence or their business.
(RCW 67.28.1816)
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What is LTAC Committee Composition ?
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• At least five members, appointed by legislative body of
municipality
• One member an elected official of the municipality who shall serve
as chair of the committee.
• At least two members representing of businesses required to
collect tax
• At least two members involved in activities authorized to be
funded
• Equal number of collecting/receiving members
• May include one nonvoting County elected official member
( RCW 67 . 28. 1817)
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Who is on LTAC ?
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Appointed by Council :
• Elected official Committee Chair: Mayor Kathy Coffey
• Representatives of businesses required to collect tax:
• Ledgestone Hotel — Sara Allen
• Hilton — Lisa Vallejo
• Howard Johnson — Colette Keeton
• Oxford Inn — Sara Davila
• Businesses authorized to be funded by tax
• Yakima Valley Tourism - John Cooper
• Capitol Theatre — Charlie Robin
• Convention Center — Angie Girard
• Sundome — Greg Lybeck
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How often Can/Should LTAC Meet ? �t
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5 �• RCWs silent as to frequency of meetings
• Spending Timeline :
• A municipality proposing a change in the use of revenue shall submit the
proposal to the lodging tax advisory committee for review and comment at
least forty-five days before final action .
• The advisory committee shall submit comments on the proposal in a timely
manner through generally applicable public comment procedures.
• Failure of the advisory committee to submit comments before final action on
or passage of the proposal shall not prevent the municipality from acting on
the proposal.
• A municipality is not required to submit an amended proposal to an advisory
committee under this section . ( RCW 67.28. 1816)
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How Man Annual Room Ni h t s ? fQ'
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1 . Actual 2018 Rooms Sold was 451,848
( Per Smith Travel Research)
2 . Number of hotel rooms :
1. Yakima : 1,937
2. Union Gap: 257
3 . Since total Lodging Tax in 2018 was $ 1,640, 198,
Avg. Lodging Tax per room night was $3 . 63
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What is Historical LodgingTax Spending ?
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170 171 287 370
Lodging Tax Tourist Capibl Debt Convention
Revenue Promotion SunDome Theatre Service- Center
Received Operations* Operations 1996 GO Capital
Bonds**
100%
2009 1,175,137 495,576 - 93,108 442,000 144,453 1,175,137
2010 1,222,135 545,200 - 97,000 428,000 151,935 1,222,135
2011 1,230,615 545,200 - 97,000 428,000 160,415 1,230,615
2012 1,283,306 545,200 - 140,000 428,000 170,106 1,283,306
2013 1,334,800 570,000 - 140,000 428,000 196,800 1,334,800
2014 1,430,792 630,000 - 150,000 428,000 222,792 1,430,792
2015 1,489,294 651,000 75,000 175,000 428,000 160,294 1,489,294
2016 1,575,526 633,550 75,000 200,000 428,000 238,976 1,575,526
2017 1,647,735 660,000 75,000 205,570 428,000 279,165 1,647,735
2018 1,640,198 660,000 75,000 205,570 428,000 261,628 1,630,198
25,323,224 25,313,225
2018 40.1% 4.6% 12.5% 26.0% 16.9% 100%
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Where is Lodging Tax Spent 2019 ? „co
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2019 Budget Allocation
1 . Cony. Center Debt Service $349,000
2 . Cony. Center Capital $375,000
3 . Cony. Ctr Tourist Promotion $670,000
4. Capitol Theatre $205, 570
5 . nallocate $ 5,
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What Is Recipient Application Process ? �td p
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• City Council can only choose from LTAC-recommended recipients
• Applicants applying for use of revenues in this chapter must provide
the ( LTAC) to which they are applying estimates of how any moneys
received will result in increases in the number of people traveling for
business or pleasure on a trip :
• Away from their place of residence or business and staying overnight in paid
accommodations;
• To a place fifty miles or more one way from their place of residence or
business for the day or staying overnight; or
• From another country or state outside of their place of residence or their
business.
( RCW 67.28. 1816)
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Council Roles and Responsibilities ? rtiy
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City Council :
• Has decision making authority from Lodging Tax Advisory Committee-
input
• Authorizes spending in budget
• May amend 2019 budget any time
• Authorizes or rejects projects/recipients
• Once the budget is adopted, may notify the LTAC of any changes in
uses ( projects) .
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Can Unspent LodgingTax Help GF Reserves ? Q'tiJ �
• No, not directly
• Lodging Tax is a restricted revenue fund and can only be
used for purposes outlined in the RCWs
( RCW 67.28-1816)
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What is Lodging Tax Fund Balance ?
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• Projected 2019 Ending Fund Balance $344, 138
• This does not count the $75,000 recommended by LTAC
for SunDome Operations
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Su n Dome Stats Q.
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• 2018 Visitors outside 50-mile radius 45,952
• 2018 Lodging room nights 26, 101
(est. lodging tax @ $3 . 63 avg = $94,750)
• Estimated economic impact to Yakima Valley $23 .9 million
• Total 2018 attendance — all events — 526,663
(Yakima SunKings, WIAA sports, associations and tradeshows, other
events, graduations and commencements, concerts, State Fair) See
handout
Source: 2018 Yakima Valley SunDome report & 2018 Event Tracking Report
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CitySupport of Sun Dome - REET Q.
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• The debt payment in REET is $ 150,000 through 2023, an interlocal
agreement with State, County and City
• Debt paid for 16K sqf expansion (north side), seating capacity increase to
7, 100, new locker rooms and second floor improvements
• We help Central WA Fair:
• $22,900 in PD time (out of a total : $33,900 where $11,000 is reimbursed)
• $18,600 in Transit services (Free shuttle)
• $5,309 in FD stand by services including OT
• FD collected $4,075 in fire inspections fees
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What 's the County's Lod i n Tax ?
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• County gets 2% Lodging Tax of the State's share
about $750,000, for existing 2009 debt
• 2009 bond was for
• Fairgrounds capital
• Capitol Theatre seating
• Convention center flooring
• Seasons performance hall
• Yakima Valley museum
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Staff seeks Council's direction
on the unallocated $75, 000 in 2019 Budget
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WIAA Attendance , Hotel Economic Impact
. Rooms,
WIAA Events Held -- Through December 2018
1 Rata Schadffie: 7 Formula for CalculatinGET2808840 Economic Impact
, ' Conway,Cott,: SIX:020131 { -pal K#peak n, Na x rats x examatbd econominuttpab
SDOM Grob's/Events 111.701$151
M9r Group bactlity #PIORRIT1 0Pp 48ppt ouGaGiown x ak rates x ratebesbeconomie impact
H lAt Rol hits th:n i Ra trftmnBtkd #RmsAct Eton Impact
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Sportibg Events! RA WIAA 18 26 Rebior 2 WHO ag Toumey i_KllI ItaS HS 150 150 , 1 0 . $170 76 74
s $25803
RA WIAA 4AReqlon 388estanITpumay lae HS 400 AOC , 2 0 ' $170 200 200 $138,003
RA WIAA1A Soya and GT'S$' SOketbgli SunDent6 3,200 3,600 40 : T170 2,100 2,400 $2.446,000
RA WIAA 2A EscAg Fad HIGa 87 S8skeRaII SanDome 3,200 3,500 40 . 5170 2800 2 490 82 440,900
RA WIAA ST Gybe&WI SaDoma 3,800 4,500 20 ' $179 1,450 2,790 81,430000
, RA WIAA SlotasSoto&Ensemble Gnntent i my 1,500 ''' 1,500 20 : 0101 1,000 1,000 8643000
RA WIAA IS.48 IA ST Tomb ,Yak Temola see
1 Ciub 500 20 : $.18i
320 320 4481,000
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RA WIAA 1A,GAST Sasebol, ak Co
131 600 SOO '
2 0 : S 500 500 $239,500
' Stab=
1 G41,Sports ,
1 RA WIAA 4.22TS ST Softball Ghamolombps' , 1,000
1 CompRx 1
000 540 540 $802,900
RA WIAA 2A ST Softbll a thamponshps I Ga458 I 2 4 %°°0 s 210° :: SS118311 740 740 8832,003
RA WIAA Coaches Sabel I Cot 426 424 I 20 S101 360 350 $153,850
WM Drat S WIAA 2A Owls Soccer Round,H
18 ak Sebh HS Nov a , 1
RA , Selah HS 00 89 , 10 sie, 20 20 S14,480
,
A
r TV:AA Gist,SWIAA 1AGIrls Socr Round of Marquette
RA 200 200 : I 0 $161 50 50 $35.500
: 16 at Marquette&Snort Nova , Stadium
: RA WIAA IS ST bolextba i SunDerne 1,000 1,000 , 20 G184 500 SOO 4368800
RA , WIAA 25 ST 80600801, 1 SunDome 1,200 1200, 1 2 0 $161 750 750 $651.000
RA , WIAA IA ST bollavabl: ' Sanboane 8,800 2 200 : 20 $161 1,200
,',' PA Tk a llt a D iistb 5 W iIA A'A Girla Sacr Ro un c o re man.
.
1'2779 :4c:51A Dntr5WnIA FoetrarRonda15 'RA atNanHSNov& 241shFS 200 200 10 S16 58 6 s362:°
Mm: 016aMSdium Nov 10 200 200 1 Sit 40 40 .:.2
PA YV'AA 0005 VOA*,2A Ws Soccer
Ebbsg RS 200 200 1.0 I 313 50 5C $36.290
, Cluarterfinals at EbibtalS No3 13
: THAA Dist:SWIM 2A Girls Sneer
RA 1 SeHa laS 200 or 1 o sis* 70 70 $36.200
Quarterfinals at RHO H$NOV 40
YVAA Mob SWIM 44 FOotball Round of 16 Marquette
RA 200 200 50 1.0 $ 3,at Harquette Shot ca,aum N 10 Siadiom 1 50 $36,200
' RA WIAA SART Volley* SonDobe 2.0,50 2,000 20 41t 1,400 1.490 8724.900
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RA , WIAA 4A ST tnoleynal, SimErnme 2,000 1,090 2 0 $181 1,400 1,200 6851,600
6 ' YaRRA Ds'STRAA lE Football QUadrlrlitta%
1 RA at Gv,ew HS Nov ii Gbew HS 80 80 10 $161 20 24 $14,480
1 YVIGA N405 WIAA 1A Toctball Cluarterfirtaks
RA , Gahm HS 300 300 1.0 $131: 50 5C 654.500
at GHeve Ha NH/lb
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SPORTING EVENTS.TTL: • 25 26,135 27,33$ J15,035 , 15,035 511,965,510
WIAA Events alone at Lodging Tax Economic Impact
WIAA Events 2018
Sun Dome
Su n D o m e bring Economic Impact is#of People X#Room Nights X avg.spending$
Ppl Act #Rms Act Rm Nights Econ Impact
[a] [b] [c] [d] [a] x [c] x [d]
approximately $ , 556 1A boys and Girls ST Basketball 3,600 2,400 4 $ 170 $ 2,448,000
2A boys and Girls ST Basketball 3,600 2,400 4 $ 170 $ 2,448,000
ST Dance & Drill 4,500 2,700 2 $ 170 $ 1,530,000
1B ST Volleyball 1,000 500 2 $ 170 $ 340,000
2B ST Volleyball 1,200 750 3 $ 170 $ 612,000
i n Lodging Tax 1A ST Volleyball 2,200 1,200 2 $ 170 $ 748,000
3A ST Volleyball 2,000 1,400 2 $ 170 $ 680,000
4A ST Volleyball 1,800 1,200 2 $ 170 $ 612,000
19,900 12,550 $ 9,418,000
(Tourism ) and Avg. Lodging Tax $ 3.63
Total Lodging Tax $ 45,556 = $ 9,418,000
$ (45,556)
Total non-Lodging Tax economic activity $ 9,372,444
$ 1 5 9 332 In Sales Tax Sales Tax Rate - City 1.70%
1 Sales Tax$- City $ 45,556 x $3.50 = $ 159,332
( General Fund ) Annual Lodging Tax $1,640,198 State 6.50%
total Yakima room nights 451,848 City 1.70%
Avg. LodingTax/room night $ 3.63 Total 8.20%
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What is Lodging Tax 's "Sales Tax Effect ?" d'i¢YtiiJi
Quantifying the economic multiplier
• Assumes $ 170 per person per room night
• $ 1 in Lodging Tax generated about $3 . 50 in Sales Tax
in this one example
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Reference
Information
For reference only
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What is the Lodginglax Rate in Yakima ? �ti, Q
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Of the total
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11 . 2% on h ote l's room rate,
City of Yakima receives 5
.
• To City 2 . 0%+ 1
RCW 67.28.180 RCW 67.28.240
• To City 2 . 0%
RCW 67.28.181(1)
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Can We Measure L-Tax by Event ?
• Sales Tax is received monthly
• Property Tax is received monthly, assessed annually
• Lodging Tax is received monthly
• Hoteliers can measure hotel nights daily or around
events — but is confidential proprietary information
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What is Monthly Seasonality ?
• , ,4::::::,... ......44:::::::a: . ..„
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Lodging Tax - Monthly History
$20 0.000
$180000
$260/300
-- -
'.'. .
$1.4 0000
$120000
$100,000
$80000 -
$60,000 _ ..
$4.0,000
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
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0 2014 0 2015 ii 2016 0 2017 II 2018
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Recipient : Roles and Responsibilities 1'• RCW 67. 28. 1816 requires all Lodging Tax recipients to provide the
Council information on use of the tax and to do annual report to Joint
Legislative Audit Review Committee .
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Lodging Tax Advisory Committee _
January 1[l2O19
� City mfYakima
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^ City Council
129 North 2ndStreet `
Yakima, Washington g89O1
Dear Council,
On November 28, 2018, the Lodging Tax Advisory Committee (LTAC) met. Several options for
different ways to structure funding for the SunDonme were discussed, including phasing out
lodging tax funding gradually and/or partnering to match the level of support on an even basis
between City and County. The committee recognized the C|ty's already-tight budget as
foundational to the discussion, noting the City is supporting SOZO and YMCA pool with debt
issuances, and the city does support the Fairground SunDome in several other ways, including an
annual $15O,OOO payment for SunDmmme debt service.
The committee ultimately decided to recommend that the City Council honor the original 2019
LTAC recommendation of $75,OOO in lodging tax funds for the SunDomme. In addition, the
committee suggests that council engage in an annual re-evaluation of the level of lodging tax
support of5unDmmnm operations. Finally, the LTAC also suggests that Council engage in
discussions with the County on future funding options for the SunDonne.
Respectfully,
Kathyy Co ey,7
Chair, Lodging Tax Advisory Committee
.
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Committee�d r�T��w��
Novemter28,2018
9:30a.nm. Meeting—Minutes
Roll Call—Members present: Kathy Coffey,Charlie Robin,John Cooper,Angie Girard, Sara Allen,
Collette Keeton, Lisa Vallejo,Sarah Davila, and Greg Lybech.
Guests: Rich Austin,Connie Upton, Steve Groom,Jeanne Thompson
Minutes from last meeting—The minutes from the prior meeting were not available.
^
� —Oiscuyo|onvvaobe|d ,p0apdin��heNovembo,1y, 2O18|e�ertothe [TAC�omChe
Communications
Yak|nmaCity Council (A�achment1). John Cooper passed outa summary of3U18 budgeted lodging tax
related activities for discussion (Attachment 2)to clarify what"Convention Center Operations"
comprised. Greg Lybeck asked for clarification mn past annual process. Chairman Coffey and John
, Cooper both concurred that in years of no funding changes there has been no meeting.
The first portion of the letter detailed the Council's selection of candidates to receive lodging tax for
: 2019asfollows:
� Convention Center Operations $670/000
^ Convention Center Capital $375'000
` Capital Theatre Operations $285^570
w, Lodging tax also funds a 2019 bond payment of$349,070,which does not require LTAC or ,
Council action as it was approved in its entirety when the bond was originally issued. This bond
will be retired in November l019.
� John Cooper moved that the LTAC approve the lodging tax allocations for Convention Center
� Operations,Convention Center Capital and Capital Theatre Operations au detailed mn Attachment 2.
The motion was seconded by Charlie Robin and passed unanimously.
,
John also moved that the LTAC support the City's plan to pledge the lodging tax revenues that were
paying the 2'*^LTGO Bonds tmpay debt service for the Convention Center expansion approved lnthe
� 2019 budget. Angie Girard seconded the motion and it passed unanimously.
Discussion then continued regarding CouncU's decision to reject funding of$75,000 for 5unDnme
Operations. Chairman Coffey reminded the group that the City Budget has been difficult to balance, has
incurred debt for projects such as SOZO and YMCA pool,and that the City does support the SunDome
through several means. Greg Lybeck.from the SunDome Board, referred to his November 21'2018 ~
letter to Rich Austin regarding City Counci|^s rejection of$7S,O80in lodging tax funding for the SunDume
(Attachment 3)and the negative effects it would have on the SunDome's ability to attract sports
tournaments and other social events tuYakima,
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Several options for different ways to structure funding for the SunDome were discussed, including
. phasing out lodging tax funding gradually and/or partnering with the County to match the level of
support onan even basis.
Charlie Robin made a motion turecommend that the City Council honor the original 2019budgeted
� support of$7S,##' \n lodging tax funds for the SumDome,tq engage|man annual re-evaluation mfthe
� level of lodging tax support,and to suggest discussions with the County on future funding options for
� thmSum0mmmm. Collette Keaton seconded the motion and it passed unanimously.
� Action Item—The LTAC committee will draft a letter to Yakima County to su&--est the City Council and
the County Commissioners meet to discuss ongoing support for the SunDmme.
Continued Business—Annua| BudgetPvocesyUpdate
The annual budget process for disbursement oflodging tax funds was discussed. City Finance Director
Steve Groom passed out current lodging tax receipts for 1997— 2018 and for the Current year January
through October for the review of the LTACmembers. No action taken.
� Potential future funding recipients. |n the past,the LTAC would only meet if there was a need tuconsider
new funding applications, and would then forward those recommendations to City Council for approval
in the budget. If there were no new requests,funding levels would remain at the same level in subsequent
� years,with any excess revenue over what was originally budgeted going to the Convention Center Capital
� fund. However, per RCVV67.28.1A17(2)
(Attaohmnem¢4),the process is designed to begin with the City Council "submitting a funding proposal to
` the lodging tax advisory committee for review and comment. This submission shall occur at least forty-
five daysbe6ure0na|uctimnono,passo0eofthepnnposu| bythemun|xipa|ity. The advisory committee
shall submit comments on the proposal in a timely manner through generally applicable public comment
procedures. The comments shall include an analysis of the extent to which the proposal will
accommodate activities for tourists or increase tourism,and the extent to which the proposal will affect
the long-term stability of the fund created under RCVV67.28.1O1S. Failure of the advisory committee 10
submit comments before final action on or passage of the proposal shall not prevent the municipality
from acting on the proposal. A municipality is not required to submit an amended proposal toan
advisory committee under this sect|on."
John Cooper did some research regarding how other municipalities handle the application process for
lodging tax funds,found an example of an application form'and updated it with Yakirna's information.
This example is attached (Attachment S)as possible standardized form. After discussion, Angie Girard
* moved to accept the application as presented to use for future LTAC applications for funding. Sara
� Allen seconded the motion and|t passed unanimously.
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^ There was no other new or old business discussed. '
.
� The meeting was adjourned at 10:40a.m`
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,11'.. ^:1_,;"
1.-ky '.1"` s. OFFICE OF THE CITY MANAGER
129 North Second Street
8.4
City Hall,Yakima,Washington 98901
Phone(509)575.6040
November 19, 2018
Lodging Tax Advisory Committee
C/O Kathy Coffey, Chair
129 North 2nd Street
Yakima,WA 98901
Dear Committee Members:
RCW 87.28,1816(2)(b)(ii)indicates that the legislative body may only choose Lodging Tax fund
recipients from the list of candidates and recommended amounts provided by the Lodging Tax
Advisory Committee(LTAC). The Yakima City Council is the legislative body for the City of
Yakima: from the list of candidates provided by the LTAC recommending Lodging Tax fund
recipients the City Council wishes to select the following candidates to receive Lodging Tax
distributions in 2019:
• Convention Center Operations
• Convention Center Capital
• Convention Center Debt
• Capitol Theater Operations
The City Council rejects the following candidate as a potential recipient of Lodging Tax funds in
2019:
• Sundome Operations-$75,000
In accordance with RCW 67.28.1817(2), upon the LTAC's receipt of the City Council's proposed
change in use of the Lodging Tax funds or recipients the LTAC has 45 days to provide
comments on the proposal back to the City Council, after which time the City Council may make
its selection on the designation of fund recipients and uses. Upon making its final decision
regarding disbursement of the funds the Council will amend its 2019 budget accordingly.
The City Council would also like to review the LTAC application process used when seeking
candidates for Lodging Tax funds. This process should identify specific dates for release of
applications available to candidates seeking funding, sample applications and the basic
elements of the review process and selection criteria. Please provide this information within 45
days of your receipt of this letter.
In the future,the list of recommended fund recipients and fund allocations should be submitted
to the City Council no later than July 1 on any given year. The Council will then review the list
and notify the LTAC of who they have selected to receive funds and in what amounts.
In the past, the timing of submitting LTAC recommendations has not allowed for proper review
and has thus diminished the role of the Council. This dynamic needs to change so that the
Yakima
4.0.411.14
1111!
994
34
LTAC ay 1 w.4 perative compliancethat a broader sector of our
community h an opportunity to •ly to receive • fled of funding,if their activities
p •.•rams comply fundingrequirements d the 11 tin process,
Thank you for your partnership and code ration.
Sincerely,
Cliff Moore
City Manager
35
Yakima Lodging Tax Funded Activities 2019 for LTAC action
CONVENTION CENTER OPERATIONS (Account 170): $ 670,000
This includes full or partial support of Convention Center staffing, repairs,
etc; tourism marketing and sales; Sports Commission operations plus
operation of the Visitor Information Center.
SunDome Operational Support $ 75,000
CONVENTION CENTER CAPITAL (Account 370) $ 375,000
On November 6th 2018, the council approved the 2019-2022 Convention
Center Capital Facility Plan which includes the expansion. Project
commences in 2019 with engineering and architecture designs. The budget
also includes upgrades to AV equipment and expanding a service corridor.
CAPITOL THEATRE OPE ATIONS (Account 171) $ 205,570
This is the management fee with the Capitol Theatre and covers labor
costs for programming, repair and maintenance.
The LTGO Bond payment of $349,070 is bonded debt not requiring action.
FIRST: I move that LTAC approve the Convention Center Capital
budget (account 370) plus approve the Capitol Theatre Account 171
and the Convention Center Operations account 170 at $670,000....
leaving the SunDome allocation for a separate discussion and action.
SECOND OTION: ove that LTAC support the City's plan to bond
the lodging tax revenues that were paying the 1996 Center pansion
LTGO Bonds for the approved Convention Center expansion.
36
November 21, 2018
Hello Rich,
We have been made aware the Yakima City Council is looking at taking the$75,000 that the
lodging tax board has allocated to us over the last three years, If this were to happen, we would
be very disappointed.
The$75,000 has given us room to be able to make decisions for the good of both the area hotels
and the City of Yakima, We have felt like we are a part of the tourism team over these last few
years and have made efforts to both attract and keep events that will have a large impact for our
valley, One example: the S orne brought the WIAA 3A &4A State Volleyball tournament to
Yakima(last week)because of the zero dollar rent deal given to WIAA. Without this funding
that type of deal will not be possible,
It is our hope this doesn't happen and we can continue to do things that are not always in the best
financial interest of the SunDome, but in the best interest of our city and hotels.
There are things we do now that we will not be able to continue to do if this decision is made,
> Media food for all events will need to go through Spectra
• Quarterbacks Club will need tia purchase all food and beverage from Spectra at
published rates, when here for the WI events
• All WIAA meal functions will need to be provided by Spectra a their published
rates, ho discounts
Socials will not be allowed unless they run through Spectra at published rates
• 3A&4A Volleyball contract will need to be re-negotiated or cancelled
• 1B-2B-I A Volleyball tournaments will be reviewed to determine if it makes sense
for us to continue to do
YSC Volleyball Festival will need to rent the SunDome at published rates. All
food will need to go through Spectra
• Parking fees will need to be increase for all WIAA events
• Facility fee will need to be raised for all WIAA events
We felt very positive about being part of the tourism team and it is our hope we can continue to
be a part of it.
Greg
�37
1J7/2019 ncwo7,2o,1u1T Lodging tax advisory committee in large municipalities—Submission of proposal for imposition of or change in tax or us.,.
RCW 67.28,1817
Lodging tax advisory committee in large municipalities—Submission of proposal
for imposition of or change in tax or use--Comments.
(1) Before proposing imposition of a new tax under this chapter, an increase in the rate of a tax
imposed under this chaptmr, repeal of an exemption from m tax imposed under this chapter, or change
in the use of revenue received under this chapter, m municipality with a population of five thousand or
more shall establish a lodging tax advisory committee under this section. A lodging tax advisory
committee shall consist of at least five members, appointed by the legislative body of the municipality,
unless the municipality has a charter providing form different appointment authority. The committee
membership mhmU Include: (a)At least two members who are representatives of businesses required to
collect tax under this chapter; and /b\ at least two members who are persons involved in activities
authorized to be funded by revenue received under this chapter. Persons who are eligible for
appointment under (a)of this subsection are not eligible for appointment under(b) of this subsection,
Persons who are eligible for appointment under(b)of this subsection are not eligible for appointment
under(a)of this subsection, Organizations representing businesses required to collect tax under this
chapter, nrQan|zodmna involved in activities muthohzad to be funded by revenue received under this
chapter, and local agencies involved in tourism promotion may submit recommendations for membership
on the committee. The number of members who are representatives of businesses required to collect tax
under this chapter shall equal the number of members who are involved in activities authorized to be
funded by revenue received under this chapter. One member shall be an elected official of the
municipality who shall serve as chair of the committee. An advisory committee for a county may include
one nonvoting member who is on elected official of a c|h/ or town in the county. An advisory committee
for a city or town may include one nonvoting member who is an elected official of the county in which the
city or town is located. The appointing authority shall review the membership of the advisory committee
annually and make changes anappropriate.
/2\Any municipality that proposes imposition of tax under this chapter, an increase in the rate
of tax imposed under this chapter, repeal of an exemption from m tax imposed under this chapter, or
change in the use of revenue received under this chapter shall submit the proposal to the lodging tax
advisory committee for review and comment.The submission shall occur at least forty-five days before
final action on or passage of the proposal by the municipality. The advisory committee shall submit
comments on the proposal in a timely manner through generally applicable public comment pnocedunes.
The comments shall include an analysis of the extent to which the proposal will accommodate activities
for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of
the fund created under F{CW 6T.28.1815. Failure of the advisory committee tm submit comments before
final action onor passage of the proposal shall not prevent the municipality from acting on the proposal.
A municipality is not required to submit an amended proposal to an advisory committee under this
section.
[ 1��8c �� ~� �'' 1��7 �4�� ~� �
^ .]
NOTES:
Validation oftaxes imposed and collected and actions taken—Effective datw--1998c
35: See notes following RCVV67.28.101.
Intent--SmvemmbU!ity--1997c452: See notes following RCVV6T.28.000.
SavYngm�-199Ts452: See note following RCVY67.28'181.
38
Application for City of Ya ' a
FY 2020 Lodging Tax&Tourism Promotion : it Funds
Incomplete and/or late applications will not be coral* - .Applications may not be changed or
; en ;' by the applicant after the submission deadline.
Org mtion/Agency F- eral Tax ID N *ober
Contact N: e Title
Mailing Address City State Zip Code
Tourism promotion activities
Tourism related facility
vE ent/Festival:
Nt. e of Everi estival Date
Non-Profit(a ;oh copy of current non-profit corporate registration with Was t on
Secret: of State)
Public Agency(name):
ount requested:
39
Description of tourism-related activities or event:
Budget Information-How will the funds be divided within the budget?
Supplies
Advertising
Operating rentals $
Travel
Other( )
Number of attendees from a fifty (50)mile plus radius expected:
Number of Yakima overnight stays expected to be generated:
Target markets and region(s)(should be at 1 a 50 mile radius away):
Type of marketing to be used:
Target audience(s):
Attach up to two additional pages of details if needed,
I understand that if selected,my org. 'zationiagency may be required to enter a service contract
with the City of Yakima.
Printed Name:
Signed: Date:
2