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HomeMy WebLinkAboutOrd2007-012Sponsored by Oates Amended/Failed Introduction : 1'uvcmber 26, 2UU7 Public Hearing: December 10, 2007 i h:nactmrnL• Failed 4-2 ~r CI"fY OF SEWARD, ALASKA ORDINANCE 2007-012 AN URllIN:~NCE OP THF. CI'I'1' C'UUNCIL OF THE CITY OF SEWARD, 41.ASK4, REVISING SF.W.4RU CITY CODE SF,CTIUN 5.45.015(,1) (HOTEL/bIU"I'F.I. ROOM TAX - LEVY' OF TAR), INCREASING "!'HE HO'1'I;L/MUTEI, T:1X RATE FRO11 4% 'I'U 6%, EFFECTIVE APRa-I7-l,~{N#3 ,IANL!AR]' 1, 2009 ~~'HF:RN;AS, lttitiativc Ordinance No. 95-01-INl'I' was placed bclore the voters at the regular election in Octoher, 1995, and was approved bV a majority of the voters voting on the question, therehy establishing a 4°io Hotel/Motel Koum tax, and creating Seward City Code 5.45.015, which provides the authority for the imposititm of a hotcL'ntotc! room tax; and WHEREAS, the revised preliminary 2008 operating budget includes a proposed 2% increase in the Hotel°Motel Room tax, increasing the tax rate from 4"/n to 6'%, and generating an estimated S 1 b0,000 in additional revenues; and L WHEREAS, ii is the intent of the Seward City Council drat revenues generated liom the. increase ru the beJ tax be used [o offset increased costa in the General Fund rather than to be used to fund additional markctin, efforts. NUW"I'HERF.FORE, TILE CITY C'Oi1NCIL OF'!'HE CITY" OF SEWARD, ALASKA, HEREBY URD:UNS that: Section 1. Seward City Code Section 5.45.O15(A) is arncnded as follows: Strikeout -Delete Bold - ?!cw A. 'There is hereby levied a tax on all hoteUmotel rent not exempt lium taxation under Subsection B of this section in an amount equal to ~r-~tcv~t{~i~) six percent (ti'%) of the hotclr'nurtcl rent. ..~ CITY' Or SEW:IRD, ALASKA ORDINANCE 2007-012 ti_ ectinn 2. The effective date of the cha~tge in the Hotellvlotel Room Tax rate is ~r+}-l--~u(tk. January I. 2009. Section 3. This ordinance shall take effect :l0 days following its enactment. PASSED AND APPRO~'Ell by the City C'rnmcil of the City of Seward, Alaska, this IOth day of December, 2007. AWES: Valdatla, Ambcrg NOES: Smith, Dunham. Kellar. Corbridge .~16SIrNT: Bardarson AFtS'I'AIN: Nnne a•I-rHSr: - ~ _ ~ ~ ,ti ~ Jea Lewis, CMC3 Cit Clurk ,wnr ~+• ~~s ~;: ~ pF SELtj ~~~i , (Ci Seal) , ~ , ~ pf+~ORGT qp'~ C ~;~• ty e ~~ ; 0 S~~L e s THE CITY OF SEV4'ARD, ALASIG~ i Clark Corbrid~e, Alayor Colmcil Agenda Statement Meeting Date: November 26, ?007 ~~' From: Phillip Oates, City Manager r Aeenda Item: Increase in Hotel/Motel Ronm Tax from 4°iu to 6°io BACKGROUND & .IUS-I-IFICATION: Seward City voters approved an Initiative Ordinance in October, 1995, voting to impleutent a new Hotcl~Motcl Room Tax at the rare ol'4%. Subsequently, the City Council has expressed a desire to see a portion of the bed tax utilized to support economic development efforts and marketing efforts aimed at incrcasint; the number of visitors to Seward. Over the past few years, the City has entered into a cooperative a~eement with [he Seward Chamber of Commerce to provide economic development and marketing services to the City, for an atnount equal to 2"/0 of the bed tax collected. The revised preliminary 2008 operating budget proposes to raise the bed tax from 4°/" to 6"/0, with the intent to utilize the funds to offset General Fund operating costs. The focus ol'dtis years' budget has been on establishing funds to accomplish bed lead removal, fund a capital hedger, addn;ss utunet deferred maintenance needs, and rebuild General Fund reserves. The intent ofthis increase in bed tax is to allocate a portion oflhe costs ofproviding scn~iccs to the visilorcommunity,whose impacts are otherwise paid for by local residents in the form of upgrading fecal roads and sidewalks, repairing and constntcting infrastructure, decorative lights stnd kiosks, highercosts ofpublic safety, public restroom maintenance, etc. CONSISTENCY CHF:Cli1,15'1': Where applicable, this resolution/ordlnanee is consistent with the Sewed City Code, Charter, Coniprchensive Plans, Land Use Plans, Sttategic Plan and City Cotureil Rules oC Procedures. Other: FItiCAL NOTE: The 2% increase in bed tax is expect~e~d/IV generate apptnximately $18Q000. Approved by Finance Department: tLC41~~~J~-cl~G~~ RF.COM,~1ENllA'CIUN: Council approves Ordinance 2UU7-U12, increasing the bed tax from 4% to ti%, effective April 1, ?U08.