01-0851R REPLACEMENT
RESOLUTION DISTRIBUTING THE ESTIMATED 2002 TOURISM TAXES OF HOTEL - MOTEL AND FOOD AND BEVERAGE.
BY COUNCILOR HOGG:

        RESOLVED, that the 2002 tourism taxes of hotel-motel and food and beverage, as estimated, be distributed in the following manner:
 
    3% hotel-motel 1% hotel-motel 1.5% 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 731,700     26,400 19,800 777,900
Convention and Visitors Bureau 394,000 112,300 430,900 152,200 1,108,400
Heritage and Arts Center 89,900 49,600 8,000 147,500
Spirit Mountain         54,200     54,200
Donations 30,000 20,000 50,000
Transfer to general fund 59,300 173,800 420,700 142,000 795,800
Transfer to debt service 19,000 334,200 365,600 718,800
DECC debt service         694,000 182,800 876,800
TOTALS 1,185,000 395,000 2,082,000 914,000 4,576,000



STATEMENT OF PURPOSE: This resolution distributes the 2002 estimated tourism taxes to various agencies as determined by Minnesota state statutes or city policy. Revenue is projected to increase 3.9% over 2001 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 $42,700 based on general fund support of tourism related activities.

This is a replacement resolution re-allocating $19,000 from DCVB to transfer to Debt Service as per the prior pledge of the DCVB and the city to financially assist Lake Superior Center as necessary.