HomeMy WebLinkAboutResolution 2003-081 N.C.S. 04/21/2003Resolution No. 2003-081 N.C.S.
of the City of Petaluma, California
APPROVING THE CITY OF PETALUMA
TRANSIENT OCCUPANCY TAX POLICY
WHEREAS, the City imposes a 10% Transient Occupancy Room Tax on all motels and
hotels in the City; and,
WHEREAS, these funds are segregated into a fund entitled "Transient Occupancy Tax
(TOT)"; and,
WHEREAS, it has been the practice of this City to return a portion of these tax receipts
to fund various non-profit organizations; and,
WHEREAS, a policy for the use of these funds was established under the provisions of
Resolution No. 94-281, N.C.S. in 1994; and,
WHEREAS, the City Council wishes to revise and establish a new policy that will guide
the use of these funds beginning in fiscal year 2004.
NOW, THEREFORE, BE IT RESOLVED,
1. Resolution No. 94-281 N.C.S. is hereby rescinded as well as all other Resolutions that
have established policy regarding TOT uses; and,
2. The policy as ,shown in Exhibit A to this Resolution, is hereby adopted.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE
AYES:
NOES:
I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
:. _..__.-form
Council of the City of Petaluma at a (Regular) (Adjourned) (Special) meeting
on the .........2.1 :............ day of ........f.~%11....................................., 20..Q~, by the I l
following vote: ................~/..`..................
City~Attorney
Canevaro, Mayor Glass, Harris, Healy, Moynihan, Vice Mayor O'Brien, Torliatt
None
ABSENT: one
A TES .....
Ci Clerk
......... ..................................................................................
ayor
Council File ..................................
Res. No........ZQ.Q3.-0.8]_......N.c.s.
EXI-IIBI'I' A
City of Petaluma
Transit Occupancy Tax (TOT) Fund
USE OF FUNDS POLICY
I. SOURCES OF FUNDS
A. The Transit Occupancy Tax (TOT) is authorized under State Revenue and
Taxation Code Section 7280 as an additional source of non-property tax revenue
to local government. This tax is levied in the City of Petaluma at a rate of 10%.
The code does not require any specific use of the Transit Occupancy Tax (TOT).
Funds received can be used for any purpose that the City Council approves.
The Petaluma City Council (Council) agrees that the funds will be used in part to
finance advertising and promotional activities. These activities must be utilized
for the following purposes:
1. Advertising, promoting, and making known the resources ofthe City.
2. Exhibiting or advertising the agricultural, horticultural, mineral, industrial,
commercial, climatic, educational, recreational, artistic, musical, cultural,
and other resources or advantages of the city.
3. Making plans and arrangements for a trade fair, or other fair or exposition
at which such resources maybe exhibited.
4. Doing any of such work in cooperation with or jointly by contract with
other governmental agencies, associations, or corporations to promote
Petaluma.
The City Council has determined that the Transit Occupancy Fund should attempt
to maintain a reserved fund balance, which. is approximately equal to a minimum
of 5% of the previous year's TOT revenues.
B. The annual schedule relative to the TOT fund processes of application,
recommendations and final approval of TOT allocations shall be as follows:
Mid-March: Application packets publicly announced and mailed to previous
recipients
Late March Applications reviewed for eligibility and recommendation to TOT
Sub Committee
Early April Review of applications, with recommendations for funding brought
forward by TOT Sub Committee for consideration in the general
budget review process
May-June Applications approved as part of the budget adoption process
Resolution No. 2003-081 N.C.S. Page 2
II. POLICY STATEMENT
Based upon a level of funding to be estimated each year:
A. It is the Council's intent and desire to promote a series of promotional,
community, and cultural, activities through use of the TOT funds. The Petaluma
City Council wishes to encourage the community spirit that arises from local
community events; and to promote art and cultural activities in a broad and
comprehensive manner; promote tourism; agriculture; and industry in the City
through local, regional and national advertising and marketing. It is also the
desire of the City Council to promote other special events as deemed consistent
with this policy
B. The Council has established the following general principles, which shall govern
the allocation of advertising funds.
1. The City may provide advertising funds to private non-profit organizations
whose purpose is to promote cultural activities, historical preservation
activities, and promotional activities that enhance tourism and. industry,
and/or local community events that encourage a sense of community and
provide an economic benefit.
2. Any event promoted by clubs, fraternal organizations, societies, human
service organizations, and other similar type organizations, and for which
the proceeds of the event will be used to fund other activities, may be
considered as a factor in determining eligibility for advertising fund
allocations.
3. The funds made available for the Advertising Program shall be used
primarily for advertising and promotions cost. For purposes of this policy:
a. "Advertising" shall be taken to mean costs of advertisements in
radio, television, newspapers, guides, and magazines, printing of
newsletters, direct mail, posters and handbills, Internet and other
paid advertising; the purpose of which is to draw an increased
attendance at an event or promotional activity.
b. "Promotions & Marketing" shall be taken to mean the cost of
communication primarily directed outside of the City for which the
purpose is the further recognition of Petaluma and/or regional
areas, events and/or activities in order to achieve favorable media
attention and/or large audience exposure. Examples of
communication may include attendance at trade shows, public
relations activities, in-city familiarization tours and marketing
programs.
Resolution No. 2003-081 N.C.S. Page 2
4. As part of the City application process, all organizations that apply for
advertising funds will be required to provide the City with:
a. A year-end financial statement (at the discretion of the City's
Finance Director);
b. Program report containing results and benefits of prior year's
activities and events, whether or not TOT funds were received in
the prior year;
c. Detail. on advertising/promotion campaign, both type and region,
for which TOT funds are being requested;
d. Documentation including "scope of work" for any professional
service contracts included in the agency request for funding from
the City;
e. Copy of non-profit status of sponsoring organization
5. Costs for staff salaries, overhead operational expenses, travel expenses
(such as transportation, lodging and/or meals) and fixed. assets are not
allowable advertising and promotions reimbursable expenses. (Activities
and budgets of the Petaluma Visitors Program (PVP) and Petaluma
Downtown Association (PDA) are exempt from this provision as indicated
in Section III-A.)
6. City funds are not to be used for individual business promotion or
advertisement. Any business name mentioned in City funded materials
must be a sponsor or direct participant in the event or promotional effort.
Any listing of service or product providers or co-sponsors must. be
inclusive. Any advertising space or time purchased by an individual
business must be clearly and separately identified as paid advertising. The
City of Petaluma must be prominently displayed in the advertising as a
contributor.
III. ACTIVITIES ELIGIBLE FOR ADVERTISING AND PROMOTIONS FUNDS
A. Promotional Organizations:
The City will designate a sum for marketing, advertising, and promotional efforts
as provided by the Petaluma Visitors Program (PVP), in affiliation with the
Petaluma Area Chamber of Commerce, as agreed to in the Petaluma City Council
Resolution, # 93-294 (including attachment "A" denoting the composition of the
PVP Advisory Board). The promotional and community development activities
of the Petaluma Downtown Association (PDA) are also included in this category.
Resolution No. 2003-081 N.C.S. Page 3
PVP and PDA may apply for funding of staff, and related costs, in addition to the
costs of promotional activities for administration of these programs.
B. Historical, Cultural, Artistic, and Community Event Organizations:
The City will designate a portion of the TOT resources to support the advertising
and promotional efforts of Historical, Cultural, Artistic, and Community Events
sponsored by local organizations.
It is the Council's intent to support events and activities of Historical, Cultural,
Artistic, and Community Event organizations that demonstrate community appeal,
and/or countywide or regional interest to residents and visitors. Proven and
potential economic benefit generated to the City by an event shall also be a
consideration for the allocation of advertising funding.
These organizations shall adhere to the above stated TOT policy .
C. The maximum amount available for all groups in FY 2004 is $520,200. This
amount will increase on an annual basis by the increase in the Consumer Price
Index (CPI) for the San Francisco-Oakland-San Jose -All Items Indexes. The
remaining funds available from the annual TOT resources will be transferred to
the General Fund to cover the cost of providing services.
Resolution No. 2003-081 N.C.S. Page 4