BY COUNCILOR NESS:
RESOLVED, that the 2005 tourism taxes of hotel-motel and food and beverage, as estimated, be distributed in the following manner:
STATEMENT OF PURPOSE: This resolution distributes the 2005 estimated tourism taxes to various agencies as determined by Minnesota State Statutes or city policy. Revenue is projected to increase 6.8 percent, or $320,000 over the 2004 budget due to local trends.
This projected increase translates into increased budgets for the Depot, Duluth Convention and Visitors Bureau, donations and the general fund.
The allocation to the DECC is increasing $37,100 due to the increase of projected revenue and based on state law requiring the city to allocate 61.75% of the three percent hotel-motel tax.
Due to council action in June of 2003, the additional one half percent hotel-motel tax and additional one half percent food and beverage tax can be used to retire Great Lakes Aquarium bonds as well as DECC bonds.