BY COUNCILOR HOGG:
TOURISM TAX FUND BALANCE.
WHEREAS, there is an available fund balance in the tourism taxes fund of
the city of Duluth; and
WHEREAS, the city desires to assist the Spirit Mountain recreation area
authority in stabilizing their finances.
NOW, THEREFORE, BE IT RESOLVED, that $250,000 additional funds will be
allocated to the Spirit Mountain recreation area authority for cash flow
and fund stabilization in 2001 beyond the amount already accorded, this
source coming from the unreserved, undesignated fund balance in the fund.
BE IT FURTHER RESOLVED, that contributions to Spirit Mountain and the DECC
be increased $12,300 and $4,600 respectively, to reflect the changes in
cost allocation charges.
STATEMENT OF PURPOSE:
This resolution will authorize the city to transfer $250,000 from the tourism
tax fund to the Spirit Mountain recreation area authority (SM) as an infusion
of working capital. Despite a record revenue year due to the higher
snowfall, SM did not have a successful year financially due to ongoing
increases in labor, health insurance, energy and capital maintenance.
The $250,000 will be a one time infusion that will help SM avoid a cash
deficit leading into its ski season and season pass sales period.
The administration will be evaluating and monitoring SM's financial performance
over the next year to determine if an annual subsidy from the tourism tax
is warranted. SM is specifically mentioned as an authorized recipient
in all of the tourism tax ordinances and the $250,000 transfer will still
leave the tourism tax fund with a ten percent undesignated fund balance