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� _�� - ' � Memo To: Mayor and City Council Neal Beets, City Manager From: Chris Miller, Finance Directo �� Date: November 15,2004 Re: Information Regarding the Local Lodging Tax Date: 11/15/04 Item: 3 Lodging Tax Background On November 9, 2004 Councilmember Kough, via phone, requested Staff to bring forth specific information regarding the local lodging tax. The following information is submitted per Mr. Kough's request. MN State Statutes 469.190 allows municipalities to establish a local lodging tax to fund a local convention or tourism bureau for the purposes of marketing and promoting the City as a tourist or convention center. A copy of the Statute is included in Attachment A. On March 23, 1998, the City of Roseville adopted Ordinance No. 1200 establishing a local lodging tax and creating the Roseville Visitors Association. A copy of the council action items, minutes, and ordinance is included in Attachment B. The ordinance was incorporated in City Code, Chapter 312 and was expanded in 2002 to require the RVA to provide an annual presentation of the RVA's activities and fmancial condition. This presentation has been made by the RVA in January each of the last two years. Lodging Tax Proceeds Over the past few years, the local lodging tax has generated approximately $450,000-500,000 annually. As noted above, these funds are restricted in that they can only be used to market and promote the City. The funds cannot be used for the venues or attractions themselves, or any City program or service. Final Comments As a Supplement, the RVA's current bylaws are included in Attachment C. Staff will be prepared to answer any further inquiries regarding the local lodging tax at the meeting.