BY COUNCILOR STEWART:
WHEREAS, there is available fund balance in the tourism tax fund of the city of Duluth; and
WHEREAS, the city desires to repair the tiger observation deck at the zoo;
NOW, THEREFORE, BE IT RESOLVED, that $120,000 be allocated to the Capital Improvement fund; this source coming from the reserve for capital improvements fund balance in the tourism tax fund.
FURTHER RESOLVED, that the 2007 tourism taxes of hotel-motel and food and beverage, as estimated, be distributed in the following manner:
STATEMENT OF PURPOSE: This resolution :
(a) Authorizes $120,000 to the capital improvement fund from the reserve for capital projects for repairs to the tiger observation deck at the zoo;
(b) Distributes the 2007 estimated tourism taxes to various agencies as determined by Minnesota state statutes or city policy. Revenue is projected to increase 7.3 percent, or $385,300 over the 2006 budget due to local trends. The projected increase translates into increased budgets for the Historical Union Depot, public arts commission, sister cities, the general fund and debt service.
The allocation to the DECC is increasing $100,700 due to the increase of projected revenue and based on state law requiring the city to allocate 61.75 percent of the three percent hotel-motel tax.
The Visit Duluth (formerly Duluth Convention and Visitors Bureau) allocation will also increase per the allocation method approved in the latest contract between the agency and the city. The increase for 2007 is $99,200 over 2006.