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HomeMy WebLinkAbout24. 17-86 R E V I S E D FEBRUARY 28, 2017 17-86 ORDINANCE FIRST READING (CARRIED______ LOST_______ LAID OVER_______ WITHDRAWN_______)  PURPOSE: AMEND SECTION 8-1.1(B) HOTEL AND MOTEL ROOM TAX TO CLARIFY ORDINANCE PERTAINING TO CONVENTION CENTER DEBT (STAFF RECOMMENDS WAIVING THE RULES & ADOPTING ON FIRST READING) INITIATED BY: CITY ADMINISTRATION A GENERAL ORDINANCE OF THE CITY OF OSHKOSH AMENDING SECTION 8- 1.1(B)(1) OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO THE DISTRIBUTION OF THE HOTEL AND MOTEL TAX RECEIPTS TO CLARIFY THE ORDINANCE PERTAINING TO THE DISTRIBUTION OF HOTEL AND MOTEL TAX RECEIPTS FOR THE PURPOSE OF FINANCING CONVENTION CENTER DEBT WHEREAS, Wisconsin Statutes authorize municipalities to impose a tax upon the privilege and service of furnishing rooms or lodging to transients in an amount not to exceed 8% unless the municipality meets one of several exceptions in the statute; and WHEREAS, the City of Oshkosh meets the statutory exception for any long-term debt outstanding with which the City has financed the construction or renovation of a convention center and has established a Hotel Motel tax of 10%; WHEREAS, additional renovations are required to the Convention Center which will require funding; and WHEREAS, the City plans to apply for a State of Wisconsin Trust Fund Loan and as part of that application process, the State has requested clarification of the City’s current ordinance. The Common Council of the City of Oshkosh do ordain as follows:  Indicates Revision FEBRUARY 28, 2017 17-86 ORDINANCE FIRST READING CONT’D SECTION 1. That Section 8-1.1(B)(1) of the Oshkosh Municipal Code pertaining to the distribution of Hotel Motel tax receipts is hereby repealed and recreated to read as follows: (1) The treasurer shall distribute the room tax receipts on a monthly basis, as follows: a. 2% of the room tax shall, as authorized by Wisconsin Statute 66.0615, be used for long term debt obligations associated with the Oshkosh Convention Center. b. 2% of the room tax shall be used for the purpose of fulfilling the City’s obligations towards operations and maintenance of the Oshkosh Convention Center, as well as other costs incurred by the City to support tourism in the City of Oshkosh. c. 6% of the room tax shall be paid to the Oshkosh Convention and Visitors Bureau, hereby designated as a tourism entity as that term is defined in section 66.0615 Wisconsin Statutes. SECTION 2. This ordinance shall be in full force and effect from and after its passage and publication. SECTION 3. Publication Notice. Please take notice that the City of Oshkosh enacted ordinance #17-XXX AMEND SECTION 8-1.1(B) HOTEL AND MOTEL ROOM TAX TO CLARIFY ORDINANCE PERTAINING TO CONVENTION CENTER DEBT (A GENERAL ORDINANCE OF THE CITY OF OSHKOSH AMENDING SECTION 8- 1.1(B)(1) OF THE OSHKOSH MUNICIPAL CODE PERTAINING TO THE DISTRIBUTION OF THE HOTEL AND MOTEL TAX RECEIPTS TO CLARIFY THE ORDINANCE PERTAINING TO THE DISTRIBUTION OF HOTEL AND MOTEL TAX RECEIPTS FOR THE PURPOSE OF FINANCING CONVENTION CENTER DEBT) on February 28, 2017. The ordinance clarifies the distribution of the City’s hotel motel room tax receipts for the purpose of financing debt pertaining to the Oshkosh Convention Center. The full text of the ordinance may be obtained at the Office of the City Clerk, 215 Church Avenue and through the City’s website at www.ci.oshkosh.wi.us. Clerk’s phone: 920-236-5011. MEMORANDUM TO: Honorable Mayor and Members of the Common Council FROM: Trena Larson, Finance Director DATE: February 23, 2017 RE: Amend Section 8-1.1(B) Hotel & Motel Room tax to Clarify Ordinance Pertaining to Convention Center Debt BACKGROUND In working with the State of Wisconsin Trust Fund Loan program they have requested clarification on the City's current Hotel & Motel Room tax ordinance. It was requested we clarify the distribution of the City's hotel motel room tax receipts. This clarification does not change the funding allocations which were previously established by ordinance, it only re -orders the distribution of the room tax receipts. ANALYSIS Staff is proposing to amend the attached ordinance section 8-1.1(b) Hotel & Motel room tax to clarify ordinance pertaining to the order of distribution. Staff believes that waiving the rules to provide an immediate clarification is appropriate in this instance because amendment is merely a clarification to the original ordinance. FISCAL IMPACT There is not anticipated fiscal impact from the proposed ordinance change. RECOMMENDATION Staff recommends waiving of the rules and adoption of the proposed ordinance on first reading. Respectfully Submitted, Y en a larvon Trena Larson Finance Director Approved: Mark Rohloff City Manager City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oslikosh.wi.us