00-0821R

RESOLUTION DISTRIBUTING THE ESTIMATED 2001 TOURISM TAXES OF HOTEL-MOTEL AND FOOD AND BEVERAGE.

BY COUNCILOR HOGG:

RESOLVED, that the 2001 tourism taxes of hotel-motel and food and beverage, as estimated, be distributed in the following manner:
 

       3% Hotel-
Motel
1% Hotel-
Motel
1% Food
& beverage
Additional 2.5%
Hotel-Motel
TOTAL
Duluth public arts commission        20,000 10,000 30,000
Sister cities         22,000 13,600 35,600
DECC 700,900     20,000 19,800 740,700
Convention and Visitors Bureau 377,400 124,700 430,000 134,600 1,066,700
Heritage and Arts Center     89,900 49,600 8,000 147,500
Spirit Mountain         39,800     39,800
Donations         30,000 20,000 50,000
Transfer to general fund 56,700 160,400 394,000 142,000 753,100
Transfer to debt service         344,600 348,000 692,600
DECC debt service         675,000 174,000 849,000
TOTALS 1,135,000 375,000 2,025,000 870,000 4,405,000

STATEMENT OF PURPOSE:  This resolution distributes the 2001 estimated tourism taxes to various agencies as determined by Minnesota state statutes or city policy. Revenue is projected to increase 4.2% over 2000 budget due to the steady growth in sales. The allocation to the DECC is increased per state law requiring the city to allocate 61.75% of the 3% hotel/motel tax. The DECC debt service allocation is based on city ordinance stating that .5% of the 1.5% food and beverage tax, and .5% of the 2.5% hotel/motel tax shall be used for debt service on the DECC expansion. DCVB's allocation increased by $41,700 to maintain the city policy of allocating 33.25% of budgeted revenue to that organization. The transfer to general fund increased by $77,900 based on general fund support of tourism related activities.