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Home My WebLink About2008.06.24_City Council Agenda_SpecialPUBLIC NOTICE OF THE MEETING OF THE OWASSO CITY COUNCIL TYPE OF MEETING: DATE: TIME: PLACE: Special June 24, 2008 6:00 p.m. Owasso City Hall 111 N Main Lower Level Conference Room Notice and agenda filed in the office of the City Clerk and posted at City Hall 7:00 p.m. on Thursday, June 19, 2008. _ ~, v ,,~,-y~ C - ~ v,,t. .~-- Timothy D. R n, y, Assistant Cit anager «' ~_~ AGENDA 1. Call to Order Mayor Stephen Cataudella 2. Consideration and appropriate action relating to a request for Council approval of Resolution No. 2008-04, a resolution calling for an election to determine whether or not the voters of the City of Owasso will approve Ordinance No. 925, increasing the Hotel/Motel Tax Rate from 3% to 5%. Ms. Harkins Attachment The staff will present information relating to the proposed increase in the Hotel/Motel Tax Rate and will recommend City Council adoption of Resolution No. 2008-04, calling for an election on the question for August 26, 2008. 3. Adjournment. C:~Documents and Settings\tim_rooneyLL.ocal Settings\Temporary Internet FilesVOLKIAOfi37_special (3).doc MEMORANDUM TO: THE HONORABLE MAYOR AND CITY COUNCIL CITY OF OWASSO FROM: CHELSEA M.E. HARKINS DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: HOTEL/MOTEL TAX RESOLUTION #2008-04 DATE: June 19, 2008 BACKGROUND: On January 8, 2002 the Owasso City Council approved the adoption of Ordinance #699 establishing the framework for ahotel/motel tax, and Resolution #2002-02 calling for an election to submit such Ordinance to the Owasso voters. Ordinance #699 was ratified by a majority of the voters casting votes on March 5, 2002 in the Primary Election adopting a 3% Hotel/Motel Sales Tax. At that time, Owasso had two operating hotels and the anticipated revenue was $60,000. Currently, the city has three operating hotels generating anticipated revenue at 3% tax of $120,000 a year. The proposed ordinance would increase the rate of the Hotel/Motel Tax from 3% to 5%. The Council's approval of Resolution #2008-04 would call an election asking the voters to approve the new tax rate. The proposition would be placed on the August 26, 2008 ballot with the State Run-off Election. The current 3% tax generates approximately $120,000 a year from the three operating hotels. By increasing the Hotel/Motel Tax to 5%, the projected revenue would be approximately $200,000 a year. Three new hotels are either planned or are currently under construction. Each additional hotel will increase the amount of revenue generated based on the number of rooms, room rate and occupancy rate. Based on a 5% rate, each additional hotel would generate approximately $50,000 to $70,000. Currently, Owasso has the lowest Hotel/Motel Tax rate in the area. An increase in the rate from 3% to the regional comparison of 5% would not put our local businesses at a disadvantage in the region. Area cities have rates from 4% to 5% with Oklahoma City at 5.5%. Area Cities HoteUMotel Tax Comparison Hotel/Motel Tax ~.oo°ro 1 5.00% 4.UU% 3.00% 2.00% 1.U0% U.UU% The current ordinance restricts the use of hotel tax funds "to encourage, promote and foster economic development and cultural enhancement, tourism and pursue regional promotion for the City of Owasso, Oklahoma." The benefit of a rate increase would be to fund projects that complement and raise the lifestyle expectations of our residents, businesses and visitors. Possible projects that could be funded from this increased revenue might include: 1. City Gateway Improvements 2. Nature Park and Trails 3. Downtown Festival Park 4. Wireless Hot Spots 5. Museum Capital and Programs 6. Main Street Redevelopment 7. Marketing/Tourism Position 8. Neighborhood Sustainability Projects 9. Higher Paying Job Recruitment 10. Retail Development COMMENTS: Visitors from outside our city travelling through or staying for corporate purposes generally will pay this tax. This is one of the ways visitors contribute to the services they receive from our community while they stay here. With increasing costs in our economy, this is a difficult time to propose new taxes. However this change would help position our community for long-term ~a~SO t~o~ ~ot~ ~J~ya 0~}•~~ J~Qa y,~~e ,~~~5 ~\~005 y,~~e OTC, ~tov- L Lo a~ 0a sustainability. An increase in the Hotel/Motel Tax is a method of maintaining and expanding our services along with completing projects without increasing the tax burden on residents. The proposal to increase the Hotel/Motel Tax from 3% to 5% at this time can "piggy-back" on the State Run-off Election Ballot on August 26, 2008 and cut the cost to the City. RECOMMENDATION: Staff recommends Council approval of Resolution #2008-04 calling an election for the purpose of submitting Ordinance #925 to the City of Owasso voters for their approval of the 5% Hotel/Motel Tax in the August 26, 2008 ballot. ATTACHMENTS: 1. Resolution #2008-04 2. Ordinance #925 CITY OF OWASSO, OKLAHOMA RESOLUTION NUMBER 2008-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, AUTHORIZING THE CALLING AND HOLDING OF AN ELECTION IN THE CITY OF OWASSO, STATE OF OKLAHOMA, FOR THE PURPOSE OF SUBMITTING TO THE REGISTERED VOTERS OF THE CITY THE QUESTION OF WHETHER THE CURRENT EXCISE TAX ASSESSED UPON THE GROSS RECEIPTS DERIVED FROM RENT FOR OCCUPANCY OF HOTEL OR MOTEL ROOMS, PURSUANT TO PART SEVEN (7), FINANCE AND TAXATION, CHAPTER SIX (6), HOTEL TAX, SECTION 7- 602, TAX RATE, OF THE CITY OF OWASSO CODE OF ORDINANCES, SHOULD BE INCREASED FROM THREE PERCENT (3%) TO FIVE PERCENT (5%). WHEREAS, it is deemed advisable by the City Council of the City of Owasso, State of Oklahoma, to submit to the registered voters of said City the question of whether Part Seven (7), Finance and Taxation, Chapter Six (6), Hotel Tax, Section 7-602, Tax Rate, of the City of Owasso Code of Ordinances, originally adopted by the City Council of the City of Owasso, State of Oklahoma on the eighth day of January, 2002, and subsequently approved by the registered voters of the City of Owasso on March 5, 2002, should be increased from three percent (3%) to five percent (5%). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OWASSO, OKLAHOMA: SECTION I. The Mayor of the City of Owasso, State of Oklahoma, is hereby authorized and directed to call for an election to be held in the City of Owasso, State of Oklahoma, on the 26~" day of August, 2008, for the purpose of submitting to the registered electors of said City the following proposition, to-wit: PROPOSITION I. SHALL ORDINANCE NO. 925, INCREASING FROM THREE PERCENT (3%) TO FIVE PERCENT (5%), THE EXCISE TAX ASSESSED UPON THE GROSS RECEIPTS DERIVED FROM RENT FOR OCCUPANCY OF HOTEL OR MOTEL ROOMS, AUTHORIZED IN PART 7, FINANCE AND TAXATION, CHAPTER 6, HOTEL TAX, SECTION 7-602, TAX RATE, IN THE CITY OF OWASSO CODE OF ORDINANCES, AND ALSO REQUIRING APPROVAL OF THIS ORDINANCE BY A MAJORITY OF REGISTERED VOTERS AT AN ELECTION HELD FOR SUCH PURPOSE AS PROVIDED BY LAW, AND FIXING THE EFFECTIVE DATE OF THE ORDINANCE, BE APPROVED? SECTION II. That the City Council of the City of Owasso, State of Oklahoma, hereby states that all precincts within the City of Owasso, State of Oklahoma, shall be open for the purpose of the aforesaid election. SECTION III. That a copy of this resolution shall be personally delivered to the office of the County Election Board of Tulsa County, State of Oklahoma, at least sixty (60) days prior to the date of said election. Adopted and approved this the day of June, 2008. City of Owasso, State of Oklahoma Stephen Cataudella, Mayor ATTEST: Sherry Bishop, City Clerk APPROVED AS TO FORM: Julie Lombardi, City Attorney RECENED: TULSA COUNTY ELECTION BOARD BY: DATE: CITY OF OWASSO, OKLAHOMA ORDINANCE NO. 925 AN ORDINANCE AMENDING PART 7, FINANCE AND TAXATION, CHAPTER 6, HOTEL TAX, SECTION 7-602, TAX RATE , OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, INCREASING THE EXCISE TAX LEVIED UPON THE GROSS RECEIPTS DERIVED FROM THE RENT FOR EVERY OCCUPANCY OF ALL HOTEL OR MOTEL ROOMS LOCATED WITHIN THE CITY OF OWASSO FROM THREE PERCENT (3%) TO FIVE PERCENT (5%); REQUIRING THE APPROVAL OF THIS ORDINANCE BY MAJORITY VOTE OF REGISTERED VOTERS AT AN ELECTION HELD FOR SUCH PURPOSE AS PROVIDED BY LAW; AND FIXING A DATE UPON WHICH THE ORDINANCE BECOMES EFFECTIVE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF OWASSO, OKLAHOMA, THAT, TO-WIT: SECTION ONE (1): PART 7, FINANCE AND TAXATION, CHAPTER SIX, HOTEL TAX, SECTION 7-602, TAX RATE, OF THE CODE OF ORDINANCES OF THE CITY OF OWASSO, OKLAHOMA, IS HEREBY AMENDED BY INCREASING THE EXCISE TAX LEVIED UPON THE GROSS RECEIPTS DERNED FROM THE RENT FOR EVERY OCCUPANCY OF A ROOM IN A HOTEL OR MOTEL IN THE CITY OF OWASSO FROM THREE PERCENT (3%) TO FIVE PERCENT (5%) AS FOLLOWS: SECTION 7-602 TAX RATE There is hereby levied an excise tax of five percent (5%) upon the gross proceeds or gross receipts derived from the rent for every occupancy of a room in a hotel or motel in the City of Owasso, except that the tax will not be imposed where the rent is less than five dollars ($5.00) per day. SECTION TWO (2): EFFECTIVE DATE The effective date of this Ordinance shall be thirty (30) days from the approval of this Ordinance by a majority of the voters of the City of Owasso. SECTION THREE (3): APPROVAL OF QUALIFIED VOTERS The people of Owasso, Oklahoma, by their approval of this Ordinance at the election, hereby authorize the City of Owasso, Oklahoma, by ordinances duly enacted to make such administrative and technical changes or additions in the method and manner of administration and enforcing this ordinance as may be necessary for proper efficiency and fairness, except that the rate of the tax and purposes of the tax as herein provided, shall not be changed without the approval of the qualified electors of the City as provided by law. SECTION FOUR (4): REPEALER All ordinances, or parts of ordinances, in conflict with this ordinance are hereby repealed to the extent of the conflict only. SECTION FIVE (5): SEVERABILITY If any part or parts of this ordinance are deemed unconstitutional, invalid or ineffective, the remaining portion shall not be affected but shall remain in full force and effect. SECTION SIX (6): CODIFICATION The City of Owasso Code of Ordinances, Part 7, Chapter 6, is hereby amended by amending the provisions of Section 7-602 as provided herein. PASSED and APPROVED by the City Council of the City of Owasso, Oklahoma on the day of , 2008. City of Owasso, Oklahoma Stephen Cataudella, Mayor ATTEST: Sherry Bishop, City Clerk (SEAL) APPROVED as to form: Julie Trout Lombardi, City Attorney 2