Title
Chief Administrative Office recommending the Board receive and file a report from County staff relative to the use of Transient Occupancy Tax (TOT) funding, and provide direction for use of funding during Fiscal Year (FY) 2021-22.
FUNDING: Transient Occupancy Tax.
Body
DISCUSSION/BACKGROUND
On March 9, 2021, the Board provided direction to staff for allocating a portion of the anticipated TOT funding for FY 2021-22 (Legistar Item #21-0349).
Historically, Policy 10.1.6.4 of the Economic Development Element of the County's General Plan specified that, "The majority of transient occupancy tax generated revenue shall be directed toward the promotion of tourism, entertainment, business, and leisure travel in El Dorado County." Based on this policy and direction from the Board, the County's recent practice has been to direct 10% of actual TOT revenue to the Treasurer-Tax Collector budget to cover costs associated with administering the VHR program and collecting TOT, 5% of prior year actual TOT revenue to fund Veteran's Commission grants and activities, at least 51% of TOT revenue to the Economic Development budget, and the remaining amount to the General Fund to offset other general, on-going obligations of the County.
Based on a recommendation from the FY 2019-20 Budget Ad Hoc Committee on December 10, 2019 (Legistar Item #19-1755), the Board approved a General Plan Amendment to remove General Plan Section 10.1.6.4. Also on December 10, 2019 (Legistar Item #19-1818), the Board approved a new Budget Policy (Policy B-16, Section II, No. 13), stating the following: “Transient Occupancy Tax revenue shall be directed toward the impact of tourism and economic development, with consideration for support of tourism and promotion activities within the County and for continued support for grant fund allocations to support Veteran programs within the County.”
Due to this new policy direction, staff is seeking direction on the use of TOT funds for FY 2021-22. It is...
Click here for full text