HomeMy WebLinkAboutRes2005-018
Sponsored by: Corbridge
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-18
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING TWO PAYMENTS (EACH IN THE AMOUNT
OF $53,750) TO THE SEWARD CHAMBER OF COMMERCE, FOR A
TOTAL DISTRIBUTION OF $107,500, REPRESENTING HALF OF THE
BED TAX COLLECTED IN 2003
WHEREAS, the City of Seward implemented a 4% bed tax on January 1, 1996 and
from 1996 through 2000, contributed varied amounts ofthe bed tax to the Seward Chamber
of Commerce ("Chamber") to fund specific activities such as improvements to the visitor
center, a visitor brochure, a feasibility study, convention center study, etc.; and
WHEREAS, beginning in 2001, the Seward City Council agreed to share 50% ofthe
budgeted bed tax with the Chamber for the express purpose of providing marketing services
on behalf of the community; and
WHEREAS, beginning in 2002, the Seward City Council began basing the
contribution to the Chamber on 50% of the previous full years' actual bed tax collected; and
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WHEREAS, the 2005 Budget authorized a contribution to the Chamber of$1 07,500,
representing 50% of the bed tax collected in 2003; and
WHEREAS, the Seward City Council approved an agreement with the Seward
Chamber of Commerce on October 25, 2004, pursuant to Resolution 2004-99, for the
purpose of promoting the City's economic and tourism marketing; and
WHEREAS, the City and the Chamber agreed to a distribution of marketing monies
for the purposes of cash flow, through two separate payments, each in the amount of$53,750
(on March 18, 2005 and June 3, 2005); and
WHEREAS, while the 2005 Budget included an appropriation to the Seward
Chamber of Commerce in the amount of $107,500, Seward City Code S6.05.01O requires
City Council approval for expenditures in excess of$10,000.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF SEWARD, ALASKA, that:
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CITY OF SEWARD, ALASKA
RESOLUTION 2005-18
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Section 1. The city manager is authorized to pay the Seward Chamber of
Commerce two separate payments (on March 18, 2005 and June 3, 2005), each in the
amount of $53,750, representing half of2003 bed tax receipts.
Section 2. Funds for marketing were appropriated in the 2005 Budget in the
contributions account number 101-1191-5610-1189.
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,
this 14th day of March, 2005.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, Mayor
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AYES: Valdatta, Dunham, Clark, Branson, Lorenz, Shafer
NOES: None
ABSENT: Amberg
ABSTAIN: None
ATTEST:
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CAS
OUNCIL GENDA TATEMENT
Meeting Date: March 14, 2005
Through: Clark Corbridge, Interim City Manager
From: Kristin Erchinger, Finance Director
Subject: Contribution of Bed Tax to Seward Chamber of Commerce
BACKGROUND & JUSTIFICATION
The City of Seward implemented a 4% bed tax on January 1, 1996. The annual bed tax
revenue since inception is represented in the table below. The table also depicts the annual
amount of contributions to the Chamber of Commerce and, on an annualized basis, what
percent of the bed tax has been historically contributed to the Chamber.
Year Bed Tax Contribution to
Revenue Chamber
1996 53,461 12,782
1997 76,588 28,000
1998 148,211 0
1999 163,330 70,000
2000 212,619 35,000
2001 209,458 90,000
2002 217,482 106,000
2003 215,145 104,700
2004 239,660 107,500
From 1996 through 2000, the City made varied levels of financial contributions to the
Chamber of Commerce to fund specific activities such as improvements to the visitors
’
center, a visitor brochure, a feasibility study, a convention center study, etc.
Beginning in 2001, the Seward City Council agreed to share 50% of the budgeted bed tax
with the Chamber of Commerce, for the express purpose of providing marketing services on
behalf of the community. Beginning in 2002, the Council decided to base the contribution
to the Chamber on 50% of the previous full years actual bed tax collected, since that
’
amount is known and is therefore easier to budget. The 2005 budget includes a
contribution of $107,500, representing 50% of the bed tax collected in 2003.
The administration and the Chamber staff reviewed the Chamber Marketing Work Plan and
agreed that payments would be made from the City to the Chamber based on mutually
agreeable terms. The City intends to make two separate payments to the Chamber, each in
the amount of $53,750, on March 18, 2005 and June 3, 2005.
Bed Tax to Seward Chamber of Commerce
March 14, 2005
Page Two
CONSISTENCY CHECKLIST Yes No N/A
1. Comprehensive Plan X
2. Strategic Plan X
FISCAL NOTE
The 2005 annual budget includes a contribution to the Seward Chamber of Commerce in
the amount of $107,500, earmarked in the contributions account number 101-1191-5610-
1189.
RECOMMENDATION
Council approve Resolution 2005-____ authorizing the City Manager to make two
separate payments to the Seward Chamber of Commerce, each in the amount of $53,750,
for the purpose of the Chamber providing marketing services on behalf of the community.