HomeMy WebLinkAboutR-1782 - Adopting a Hotel/Motel Tax PolicyI ~----~--,-:""'I;ro'".("".'1 r •
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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repealed or amended bythe Marysville City Council.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:
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City Attorney
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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.
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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.
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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.
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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.