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CITY OF SEWARD, ALASKA
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RESOLUTION 2013 -058
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, REAFFIRMING THE SEWARD CHAMBER OF COMMERCE,
CONFERENCE AND VISITORS BUREAU AS THE LEAD MARKETING
ENTITY AND ESTABLISHING COUNCIL'S INTENT TO ANNUALLY
FUND WITH HALF OF THE ACTUAL BED TAX REVENUE FROM EACH
SECOND PRIOR YEAR
WHEREAS, the City of Seward implemented a 4% bed tax on January 1, 1996, and from
1996 through 2000, contributed varied amounts of the bed tax to the Seward Chamber of Commerce,
Conference and Visitors Bureau (Chamber) to fund specific activities such as improvements to the
visitors center, a visitor brochure, a feasibility study, convention center study, etc; and
WHEREAS, beginning in 2001, the Seward City Council agreed to split half of the budgeted
bed tax with the Chamber for the express purpose of providing contract marketing services on behalf
of the community; and
WHEREAS, beginning in 2002 the Seward City Council began basing the contribution to
the Chamber of half of the previous full year's actual bed tax collected; and
WHEREAS, since the 2005 the city budget has included an appropriation to the Chamber
from the second previous full year's bed tax revenue at 50 %; and
WHEREAS, the city's Strategic and Comprehensive Plans clearly state the city's desire to
expand its business base and to generate year -round employment; and
WHEREAS, the city obtains significant benefits, direct and indirect, of marketing efforts
with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable.
vibrant, year -round economy; and
WHEREAS, marketing is an important effort that must take place to achieve the goals of
attracting new business and industry, support and grow existing businesses, and increasing customers
coming to Seward; and
WHEREAS, the Chamber has the experience, professional contacts and ability to provide
marketing services for the community with the ability to focus resources and target specific
marketing groups to react to changing markets and demands more efficiently and expertly than the
City; and
WHEREAS, the Chamber presents its budget to the Seward City Council annually and
�,� provides monthly updates on activities; and
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -058
....1
WHEREAS, the council recognizes that a coordinated marketing effort at the community-
wide level is critical to a successful economy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Council hereby reaffirms the Seward Chamber of Commerce.
Conference and Visitor's Bureau as the designated lead marketing entity for the City of Seward.
Section 2. The City Council hereby confirms its intent to annually fund with half of the
actual Bed Tax Revenue from each second prior year.
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22 day of
July, 2013.
THE CITY OF SEWARD, ALASKA j
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David Seaway , M or
AYES: Valdatta, Bardarson, Keil, Shafer, Terry
NOES: Seaward
ABSENT: Casagranda
ABSTAIN: None
ATTEST:
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Acting City 1,gek OF SEfte •e
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Agenda Statement
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Meeting Date: July 22, 2013
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To: City Council
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From: City Manager Jim Hunt
Agenda Item: Reaffirmation of Chamber funding
BACKGROUND & JUSTIFICATION:
The City's Strategic and Comprehensive Plans clearly state the City's desire to expand its business
base and to generate year -round employment. Both plans include goals and objectives in regards to
having a robust marketing campaign highlighting Seward's diverse resources and excellent quality of
life. The City and its Citizen's obtain significant benefits, direct and indirect, of marketing efforts
with the quality of life for the citizens of Seward and surrounding areas as a direct result of a stable,
vibrant, and year round economy.
Marketing is an important effort that must take place to achieve the goals of attracting new business
and industry, support and grow existing businesses, and increasing customers coming to Seward.
The Seward Chamber of Commerce, Conference and Visitor's Bureau (Chamber) has the experience,
professional contacts and ability to provide marketing services for the community with the ability to
focus resources and target specific marketing groups to react to changing markets and demands more
efficiently and expertly than the City.
During the budget process Council ensures the Chamber meets their mandated goals and objectives
for the citizens and business of Seward. Representatives of the Chamber give a presentation to the
City Council, and provide a written budget, specifying the use of these funds. Additionally, the
Chamber Director provides monthly updates to Council and the Port and Commerce Advisory Board.
INTENT:
The City Council recognizes that a coordinated marketing effort at the community -wide level is
critical to a successful economy and with this Resolution reaffirms the Seward Chamber of
Commerce, Conference and Visitor's Bureau as the designated lead marketing entity for the City of
Seward. Additionally, the City Council hereby confirms its intent to annually fund with half of the
actual Bed Tax Revenue from each second prior year.
CONSISTENCY CHECKLIST: Yes No N/A
Comprehensive Plan: 3.1.1 Attract new business and industry to the
greater Seward area. 3.1.1.1 Develop an active marketing campaign
1. that highlights the diverse resources and quality of life that makes X
Seward an attractive place in which to live and to establish a business
or industry.
Strategic Plan: Page 5 Goals and Objectives, Attract New Industry
2
• Develop an aggressive marketing campaign which highlights the X
diverse resources and quality of life that makes Seward a great
place to live and establish a business or industry.
�J�
3 Other: Ordinance 1995 -001, City Council Resolutions 1997 -052, 2004- X
047 and 2005 -018. PACAB Resolution 2004 -006
FISCAL NOTE: The hotel /motel tax rate is 4 %. It has been 4% since it was first put in place by an
Initiative Ordinance by the voters, effective in January, 1996. Following is a sampling of various
communities and their Bed Tax rates:
Adak 5 %; Anchorage 12 %; Barrow 5 %; Bethel 12 %; Bristol Bay Borough 10 %; Cordova 6 %;
Dillingham 10 %; Fairbanks 8 %: Fairbanks North Star Borough 8 %; Haines Borough 4 %; Juneau
7 %; Ketchikan 7 %; Ketchikan Borough 4 %; Kodiak 5 %; Kodiak Island Borough 5 %; Kotzebue 6 %;
Mat -Su Borough 5 %; McGrath 10 %; Nome 6 %; North Pole 8 %; Pelican 10 %; Petersburg 4 %; Sand
point 7 %; Seward 4 %; Sitka 6 %; Skagway 8 %; Valdez 6 %.
Seward's Ordinance was followed up by a Resolution of the City Council, stating their intent to
appropriate a portion of the bed tax to promote tourism and develop visitor infrastructure.
Resolution 1997 -052 specifically identified the Chamber of Commerce for purposes of providing
marketing and other services on behalf of the community. Ever since that time, the City has
appropriated a portion of the Bed Tax, and beginning in 2001 it has been one -half of the bed tax to
the Chamber of Commerce for marketing and economic development. The other half of the bed tax
is used to fund the General Fund's infrastructure projects benefiting visitors which could include
things such as public restrooms, viewing areas, pavilions, campground improvements, sidewalks,
library, etc.
The bed tax is apportioned to the Chamber based on one -half of the bed tax collected during the
second prior year (the intent is that when the budget is formulated, the amount of the bed tax
allocation for the first year in the biennial budget, is based on a known figure). So for example, in
2012 the City provided the Chamber with $164,198 which represented one -half of the 2010 actual
bed tax revenues of $328,396. Bed tax revenues in 2011 were $334,823.77, so one -half of that
would be $167,411.88 to the Chamber in 2013, and were $380,210.48 in 2012, so the Chamber
allocation in 2014 -- assuming the Council still allocates one -half of the bed tax to the Chamber --
would be $190,105.24.
Approved by Finance Department:
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: $
Approve Resolution 2013 - O reaffirming the Seward Chamber of Commerce, Conference, and
Visitor's Bureau as the lead marketing entity and establishing Council's intent to annually fund with
half of the actual bed tax from each second year prior.
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