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Home My WebLink About11/17/2020 03A Lodging Tax Advisory Committee (LTAC) Report 't..an,gtntj ka ra aY BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEM ENT Item No. 3.A. For Meeting of: November 17, 2020 ITEM TITLE: Lodging Tax Advisory Committee (LTAC) Report SUBMITTED BY: Mayor Patricia Byers, Chair, LTAC Committee Steve Groom, Budget& Finance Director SUMMARY EXPLANATION: The Lodging Tax Advisory Committee met on October 22 to discuss the 2021 Budget Lodging Tax grant applications and recommend a revised allocation. ITEM BUDGETED: Yes STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL BY THE CITY MANAGER RECOMMENDATION: LTAC recommends approval of their revised allocation of October 22, 2020. ATTACHMENTS: Description Upload Date Type Lc gin T Marna 111512020 backup Material finance mama 11/10/2020 r Marna 2 Lodging Tax Advisory Committee October 22, 2020 City of Yakima City Council 129 North 2nd Street, Yakima, Washington 98901 Dear City Council, The Lodging Tax Advisory Committee (LTAC) met on June 9th, August 14th and August 27th to review applications for the 2021 Budget Lodging Tax. The committee received several applications during the publicly-noticed application period from March 1st through June 1st In response to City Council's October 13th request to reconsider the allocation, the committee's revised budgetary recommendation is as follows: LTAC LTAC Recommendation Recommendation August 27 October 22 Revenue forecast 1,310,000 1,310,470 Less,existing city obligations Convention Center debt 347,051 347,051 Convention Center capital exp 72,949 65,654 Convention Center operations 606,000 545,400 Visitor Center Operations 52,900 57,375 Sports Commission Operations 87,500 78,750 1,166,400 1,094,230 Capitol Theatre Operations 75,000 154,500 SunDome 48,600 43,740 SOZO 20,000 18,000 Surplus(Deficit) 0 Respectfully, J f r;c-Z Patricia Byers Chair, Lodging Tax Advisory Committee 3 \ FINANCE TO: City Council FROM: Steve Groom, Finance Director DATE: November 5, 2020 RE: City Council's Lodging Tax options for 2021 Budget The allocations proposed and reviewed by the LTAC are: A e r` I,TA£:. iTAC: Adopted Bridget; RdtApplicant CM Proposed Recommendation Recommendenon 2020 Re ueet52021 Bud: et AU Wt 27 October22. Revenue formal 1,620,44 1. 1.480,00C 1,100.000 1.310 i 1„310.470: ten,evstmg cey abbeanons. :C}})vt+nle{}r:tenterdebtrti,icx; 347,r31 n 347,b51 34,7031 347051. Convent en Center tapnat xrxp ` 235,41-0 72,949 12.,949... 72.343 65,454: Cennentien.Center creeratien5 606, 545,4ce Visitor Center Operations:. 74,020 ' 7re,5 76,5 ... S2::. 87,175 SpornComrnmemn Operabom ` 84,8030 87,500 87, 87.500 78.750:: 4373,710 t T,1 T 1,190,00Ct 1,2 1,094,230 4a4r201 t'beam Operatmos 198,ItA s: 206, 84.000 70, 104, SunOome... 48, 49,605 43,600 44605 43,t.28'. Tom Ex 5a3 !,C*2p• 1.374, 2,494,0: 1,310. 130,470:... Surplus Wink) (174,00 V34,600) d: City Council's options. The allocations LTAC has reviewed and commented on, are: 1) Allocation A was reviewed by LTAC on August 27'h 2) Allocation B was proposed by LTAC on August 27'h eliminating Airport and Museum from further City allocation proposals, (Per RCW 67.28.1816 §2 (b) ii "The municipality may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee") 3) Allocation C was proposed by LTAC October 22' Timing. A motion may be made at the city council business meetings on November 17th or December 1st during the agenda item for the 2021 Budget. The LTAC's recommends Allocation C, revised on October 22nd, will be budgeted. The statutory deadline for city council to make any new proposals has passed (45 days prior to adoption, October 15'h, prior to expected adoption on December 1st (RCW 67.28.1817 §2). Council may make no new allocation proposals prior to adoption on December 1st. 4 ' FINANCE The annual process is: City Matt rriAc City cit Jan and noting," Monthly Revenue imbibing i Grant applications Jun IR deadline received iu#.;l.:v top 3t7#`. L't'AC.y GI # I s,t. y: . •••••;;•• m firs eligibility et ctty salts budget atltatation A te LTAC CY: :submits aq iakrAar Pgggeggi g to City comet gfiggf . ya et'study s i4it frensdng Peaky tufal r Comma atiect Akrr £sxxii. '., PrOggigggg. bggglitt yak webbed *OCT *Kigali Sit.c.MbAn 15'h deadline tsar council to communicate#tr€:posat k'to;CAC kTRtl by o Gakkmcd Socatfon c #t+'} P 55 in k COMIC •r%rmr A.i$or s ka `* tTAC., reopientz ;, Timeline Review. The LTAC (Lodging Tax Advisory Committee) received several applications during the publicly-noticed application period from March 1st through June 1st, met on June 9th, August 14th and August 27th and made recommendation to City Council. On October 13'h, City council requested LTAC to reconsider and revise their recommendation. LTAC met on October 22nd and proposed a revised allocation. 5 f w FINANCE RCW 67.28.1816 Lodging tax—Tourism promotion. 1. Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: a) Tourism marketing; b) The marketing and operations of special events and festivals designed to attract tourists; c) 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 d) Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) of the internal revenue code of 1986, as amended. 2. a) (a) Except as provided in (b) of this subsection, applicants applying for use of revenues in this chapter must provide the municipality 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: i. Away from their place of residence or business and staying overnight in paid accommodations; ii. To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or iii. From another country or state outside of their place of residence or their business. b) i. In a municipality with a population of five thousand or more, applicants applying for use of revenues in this chapter must submit their applications and estimates described under (a) of this subsection to the local lodging tax advisory committee. ii. 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. c) i. All recipients must submit a report to the municipality describing the actual number of people traveling for business or pleasure on a trip: A. Away from their place of residence or business and staying overnight in paid accommodations; B. To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or C. From another country or state outside of their place of residence or their business. A municipality receiving a report must: Make such report available to the local legislative body and the public; and furnish copies of the report to the joint legislative audit and review committee and members of the local lodging tax advisory committee. ii. The joint legislative audit and review committee must on a biennial basis report to the economic development committees of the legislature on the use of lodging tax revenues by municipalities. Reporting under this subsection must begin in calendar year 2015. d) This section does not apply to the revenues of any lodging tax authorized under this chapter imposed by a county with a population of one million five hundred thousand or more. 6 i 1 �? f w FINANCE 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 chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter, a 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 for a different appointment authority. The committee membership shall include: o (a)At least two members who are representatives of businesses required to collect tax under this chapter; and o (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, organizations involved in activities authorized to be funded by revenue received under this chapter, and local agencies involved in tourism promotion may submit recommendations for membership on the committee. o 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. o One member shall be an elected official of the municipality who shall serve as chair of the committee. o An advisory committee for a county may include one nonvoting member who is an elected official of a city 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. o The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate. (2), Any municipality that proposes imposition of a tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a 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 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 RCW 67.28.1815. • 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.