04-0785R


RESOLUTION DISTRIBUTING THE ESTIMATED 2005 TOURISM TAXES OF HOTEL-MOTEL AND FOOD AND BEVERAGE.

BY COUNCILOR NESS:

     RESOLVED, that the 2005 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

796,600

 

 

 

796,600

Convention and Visitors Bureau

428,900

141,300

482,300

169,700

1,222,200

Historical Union Depot

 

88,200

54,600

13,000

155,800

Donations

 

 

45,000

 

45,000

To general fund

64,500

195,500

669,800

187,700

1,117,500

Spirit Mountain debt service

 

 

225,000

 

225,000

To debt service

 

 

831,300

591,000

1,422,300

TOTALS

$1,290,000

$425,000

$2,350,000

$985,000

$5,050,000


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.