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Home My WebLink AboutCity Council Committees - Lodging Tax Advisory Committee - 10/13/2011 (2) ECONOMIC & COMMUNITY DEVELOPMENT Ben Wolters, Director Phone: 253-856-5703 K Fax: 253-856-6454 ENT W A 5 H I N G T O N Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 AGENDA LODGING TAX ADVISORY COMMITTEE MEETING October 13, 2011 - 2:00 p.m. Centennial North & South Conference Room 1st Floor, Centennial Building, City of Kent Campus Attendance: Councilmember Les ,homas, Chair b Nachli er, S aff 1,"� Barbara Smith, ;'Sta Andrew Hutchinson, Kurt Hanson, Staff-� _ --D.a-vi"wokc, Ben Wolters, Staff _Aar-o-Ft 1N-atne, Tom Brubaker Beth Sylves, � Katherine Kertzman, Guest John Casey, V ---AMZ rea-'K'ei lra;Guest Introductions and Call to order — Councilmember Les Thomas, Chair Information Items: 1. Current Financial Statement Items Requiring Action: 1. Approval of minutes of April 18, 2011 2. Tourism Promotion Area - SSVA - Katherine Kertzman 3. Proposed 2012 Budget Assignments for next meeting Next meeting date, time and location Monthly Lodging Tax Collections Change 2008 2009 2010 2011 2010-2011 January 12,977 10,546 9,264 11,466 23.77% February 12,032 13,010 9,202 11,012 19.67% March 12,737 8,725 9,933 10,269 3.38% April 13,453 10,415 9,350 11,272 20.56% May 15,104 11,433 11,624 13,291 14.34% June 13,801 10,243 10,990 12,306 11.97% July 18,001 11,606 11,595 15,107 30.29% August 20,287 14,669 16,203 18,992 17.21% September 21,468 17,814 20,415 October 26,267 15,627 20,403 November 17,276 12,270 17,040 December 23,663 8,881 16,686 Annual Total 207,066 145,239 162,705 103,715 Average per Month 17,255.50 12,103.25 13,558.75 12,964.38 LODGING TAX OPERATING FUND As of September 30, 2011 2010 2011 2011 2012 Actual Budget YTD Prelim BEGINNING FUND BALANCE 240,949 48,624 48,624 66,696 REVENUES Lodging Tax 162,706 160,000 126,926 163,200 Miscellaneous Income 590 1,100 20 300 Total Revenues 163,296 161,100 126,946 163,500 Total Resources 404,245 209,724 175,571 230,196 EXPENDITURES Seattle Southside Visitor Services 120,000 120,000 90,000 120,000 Tourism Unallocated 5,000 20,000 5,000 20,000 Tourism Chamber 18,500 18,500 13,875 18,500 Total Expenditures 143,500 158,500 108,875 158,500 Transfers Out - ShoWare Marquee Project 212,121 TOTAL EXPEDITURES AND TRANSFERS 355,621 158,500 108,875 158,500 Change in Fund Balance (192,324) 2,600 18,071 5,000 ENDING FUND BALANCE 48,624 51,224 66,696 71,696 J Sept. 28, 2011 DRAFT Seattle Southside Tourism Promotion Area (SSTPA) Steps Required for TPA Implementation 1. Hoteliers may initiate the creation of a SSTPA by petitioning the legislative bodies of jurisdictions participating in the Seattle Southside Visitor Services. All jurisdictions that would be a part of the proposed SSTPA must be petitioned, and all must enter into an interlocal agreement pursuant to Chapter 39.34 RCW. The petition must include: (1) a description of the boundaries of the proposed TPA; (2) proposed uses of the revenue generated; (3) estimated rate(s)for the assessment; and (4) signatures of lodging businesses which would pay 60%or more of the assessment(Please see RCW 35.101.020). 2. Each municipality will then pass a resolution expressing its intent to establish the SSTPA and conduct a public hearing to consider establishment of the area. Passage of this resolution does not bind the municipality to adopting the SSTPA, should it choose not to after a public hearing. See attached sample resolution. 3. Municipalities choosing to participate in the SSTPA will then amend the existing tourism promotion Inter-local Agreement that formed Seattle Southside Visitor Services and pass an ordinance imposing the SSTPA.An ordinance is a local law.Although the method of enacting an ordinance will vary from municipality to municipality, they are generally passed by a legislative body(city council) and signed by a city executive (mayor)s. 4. The State Department of Revenue (DOR) will administer collection of the SSTPA revenue via a contract with the municipality in charge of administrating the Inter-local agreement. SSTPA payments are paid to DOR along with lodging tax payments.See attached sample "Spokane County TPA Lodging Charge Rate Change"demonstrating how hoteliers report TPA lodging charges to DOR. 5. An advisory board, the "SSTPA Commission," will be created for oversight and will be composed of representatives of the ratepayer hotel properties. The Seattle Southside Executive Director will regularly report to the SSTPA Commission. The SSTPA funds will be spent on marketing activities and operations of the tourism destination marketing organization Seattle Southside Visitor Services and are subject to recommendation and endorsement by the SSTPA Commission. SSTPA funds will flow to the destination marketing organization Seattle Southside Visitor Services from the municipality in charge of administrating the Inter-local agreement. Page 1 of 1 � n CITY OF KENT INITIATION PETITION TO ESTABLISH A TOURISM PROMOTION AREA WHEREAS,the 2003 State Legislature of the State of Washington has recognized the importance of tourism promotion in the State of Washington and passed Engrossed Substitute Senate Bill 6026 which authorized the establishment of a Tourism Promotion Area to levy Special Lodging Assessments to fund tourism promotion as defined therein; and WHEREAS,the Lodging Businesses within the City of desire now to present an Initiation Petition seeking to have the City Council of the City of establish a Tourism Promotion Area pursuant to the terms of Engrossed Senate Bill 6026; and WHEREAS,pursuant to section 2 of Engrossed Substitute Senate Bill 6026,the Initiative Petition submitted to the City Council of the city of must contain the following: I. A description of the boundaries of the proposed Tourism Promotion Area; 2. The proposed uses and projects to which the proposed revenue from the Special Lodging Assessments should be dedicated and the total estimated costs of such uses and projects ; and 3. The estimated rate for the Special Lodging Assessments to be levied on Lodging Businesses in various Zones within the Tourism Promotion Area with a proposed breakdown by class of lodging business if such classification is to be used; and 4. The signatures of the persons who operate lodging businesses in the proposed are who would pay sixty percent or more of the proposed Special Lodging Assessment. WHEREAS, similar Initiation Petitions have been submitted to the cities of and , Washington for the purpose creating a Regional Tourism Promotion Area by an Interlocal Agreement between the Cities as authorized by law; providing for a Joint Commission for the recommendation of the use of revenues generated by the Special Lodging Assessment; and contracting the services of a PTA Manager for the overall purpose of creating unified promotion for tourism and convention business for the area. 3. The total estimated costs of such uses and projects are as follows: r l The Notel-Motel Association estimates that, on an annual basis, the revenue from the Special Lodging Assessments collected from the operators of Lodging Businesses within the Tourism Promotion Area shall be between$ and$ This amount will vary from year to year depending upon the fluctuating occupancy rates of Lodging Businesses in the 4. The rates of the Special Lodging Assessment to be imposed in support of the functions of the Tourism Promotion Area are as follows: The Special Loding Assessment to be imposed on the operators of those Lodging Businesses with forty (40) or more lodging units is as follows: Classification A: $ per room/day *Classification B: $ per room/day *Non-qualifying Lodging Businesses. This Petition is hereby presented by the following persons who operate Lodging Businesses in the proposed Tourism Promotion Area and will pay sixty percent (60%) or more of the proposed Special Lodging Assessments.