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HomeMy WebLinkAboutR-1782 - Adopting a Hotel/Motel Tax PolicyI ~----~--,-:""'I;ro'".("".'1 r • f ~~~:;.,'I ---- CITY OF MARYSVILLE Marysville,Washington RESOLUTION NO.I 76'd- A RESOLUTION OFTHECITYOF MARYSVILLE ADOPTING A HOTEUMOTEL TAX POLICY. WHEREAS,the Marysville City Council believes thatthe community as a whole should benefit from Hotel/Motel tax funds;and WHEREAS,the City Council's objective isto use Hotel/Motel tax fundsto enhance the Cityof Marysville's tourism market;and WHEREAS,the Cityof Marysville annually receives Hotel/Motel tax revenue. NOW,THEREFORE,BE IT RESOLVED BYTHECITY COUNCIL OF THECITYOF MARYSVILLE,WASHINGTON AS FOLLOWS: The attached Cityof Marysville Hotel/Motel Tax Policy,which is incorporated herein by this reference,is hereby adopted asthe official policy of the City,andsuch policyshall remain infullforceandeffectuntil otherwise repealed or amended bythe Marysville City Council. PASSED by the City Council and APPROVED bythe Mayorthis IJ.-fi.., dayof E..~",1996. CITYOF MARYSVILLE Moud !du4 MAYOR Approved astoForm: ~kLJW City Attorney 'i'~_'i ..;;--of....... CITY OF MARYSVILLE HOTEL/MOTEL TAX pOLIcy Introduction: Annually the City of Marysville receives Hotel/Motel tax funds. RCW 67.28.210 details how these funds shall be used. The Marysville City Council believes that the community as a whole should benefit from these funds. Due to this philosophy it has been determined that 60% of Hotel/Motel Tax revenue should be allocated to qualified or eligible community groups as further defined herein through a grant process. The remaining 40% of funds received will be used by the City of Marysville to promote tourism. This funding allocation must be approved by the City Council. The City Council has the authority to award beyond the 60%. The City Council's objective in selecting projects for assistance from the Hotel/Motel Tax Grant Program is to enhance the City of Marysville's tourism market.Awards are limited to projects promoting tourism in Marysville. This means not only investing in tourism solicitation, but also ensuring that viable programming exists here for the visitors we attract. Consequently, in addition to funding visitor solicitation proposals, the City also funds program proposals if they are accompanied by a reasonable public promotion component. Project Eligibility: The most basic eligibility requirement is that the applicant demonstrate clearly and convincingly that the proposed project is in compliance with state statutes governing the use of funds. A copy of Title 67.28 RCW governing use of these funds is attached for your reference. Please examine it carefully before preparing your project request. In addition to state statutes,applications must satisfy several other criteria: • The application must demonstrate that the project proponent will supply at least ~of the total project cost. The matching requirement may be met by a cash contribution,in-kind services, or a combination of both. If project proposals demonstrate a higher matching contribution application may receive higher consideration. • Projects must be of no more than one year's duration. • Other assistance program funds can be used to offset project proposals. Operation and maintenance costs are not eligible for grant funds. ------------------------------------------------. •.i,.~'. o • Cityof Marysville Hotel/Motel Tax Policy Page 2 •Project requests which are cooperative in nature (co-sponsored by twoor more agencies)and project requests which demonstrate a matching ration in excess of 25%will receive higher priority inthe selection process. Proponent Eligibility: The program is opento applications from any qualified private nonprofit entity that has demonstrated abilityto accomplish the proposed project.This includes agencies such as historical societies,art groups,chambers of commerce, museums and galleries,youth activity organizations,service clubs,etc.Eligible applicants must demonstrate evidence of non-profit status. Application Elements: Applications formswill be developed bythe City Clerk's office and will address 12 specific areas. •Eligibility.Each proponent willbe required to concisely definethe tourism project benefitto be provided through the proposed project and demonstrate howitwill do so.Essential to this process will be establishing that the project, if funded,will be in compliance with state statutes governing the useof program funds. • Scope of Work.The applicant willbe required to submita scopeofwork which breaks the overall project down intoa progression of logical steps. •Time Line.The elements and the scope ofworkmustbe keyed to milestones indicating when each will be undertaken and/or completed. •Endorsements.Each application mustbe accompanied by three letters of endorsement.Each letter should definethe writer's relationship withthe project proponent and briefly statehisor her reasons for supporting the project.Copyof minutes reflecting organizational support and matching commitment must accompany application. .. City of Marysville Hotel/Motel Tax Policy Page 3 2 • Budget. In the budget section of the application form,please present any additional figures or details you feel will clarify the basic information.Please note that salaries and related personal expenses,as well as travel and administrative costs, are ineligible for reimbursement and qualify as sponsor match. • Match Availability.Each project proponent will be required to demonstrate that, if the project is funded, matching share will be available on the specified date of project commencement. •Proof of Non-profit Status.Non-profit organizations proposing projects will submit evidence of their status (i.e. a copy of the certificate of nonprofit incorporation signed by the Secretary of State for the State of Washington and/or a copy of the Federal Internal Revenue Service letter confirming 501 (c) (3) status). Tax identification number is required. •Cooperative Commjtments.The lead sponsor of a cooperative project will be required to submit formal letters of commitment for project co-sponsors. •Reimbursement.Project proponents must understand that the City's support for funded projects is on a reimbursement basis, i.e. no funds can be advanced in support of a project.Sponsors must first incur costs and then bill the City for reimbursement under contract guidelines.Reimbursement will be for exact invoice amounts.Applicable taxes are reimbursable. • Contract. Each project selected for funding will be required to enter into a contractual agreement with the City. The contract will cover such areas as definition of the project goals,definition of eligible costs,specification of payment procedures,limits of City liability and other usual and customary requirements. •Monitoring and Reporting.As a contractual condition, each funded project will be monitored for progress and consistency with original goals. The sponsor will be required to submit a final report at the end of the project and may be required to submit periodic progress reports during the course of the project. •Contact Person. Each project proponent will designate a primary individual as the contact for the project. During the life of a funded project, this individual will be the principal representative in dealings with the City. ."..."~. Cityof Marysville Hotel/Motel Tax Policy Page 4 Selection Process: When the application solicitation period opens,Cityof Marysville staffwill use every opportunity to inform potentially eligible applicants for the funding process and its eligibility criteria.Whenthe solicitation period closes,City staffwill review applications for completeness and eligibility.Qualifying applications will then be evaluated by a five member review panel which will make funding recommendations.The panel will be comprised ofthe Mayor,City Clerk,Park& Recreation Directorandtwo City Council members whowill be appointed bythe Mayor.The panel's funding recommendations will be forwarded to the entireCity Council for their review and action. Conclusion: In summary,Marysville's Hotel/Motel Tax Policy attempts to institute a system for planning,funding,monitoring,and evaluating community tourism needs,that is effective,fair and equitable.The policy isa positive reflection of the City's desire to assistthose organizations within our community who possess a desireto promote tourism.