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Chief Administrative Office and Planning and Building Department, Economic Development Division, recommending the Board approve and authorize the Chair to sign the following one-time Funding Agreements for the issuance of Transient Occupancy Tax funding during Fiscal Year 2021-22 for the reimbursement of costs associated with tourism related responses, activities, and/or equipment:
1) Agreement 5839 with Lake Valley Fire Protection District, with a term of one year and a not-to-exceed amount of $572,000;
2) Agreement 5842 with Georgetown Fire Protection District, with a term of six months and a not-to-exceed amount of $5,800; and
3) Agreement 5843 with El Dorado County Fire Protection District, with a term of six months and a not-to-exceed amount of $68,000.
FUNDING: Transient Occupancy Tax (General Fund).
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DISCUSSION / BACKGROUND
The Transient Occupancy Tax (TOT), or Hotel/Motel Occupancy Tax, is a tax imposed on the daily rental price of a room in a lodging facility, including vacation home rentals, when used by visitors staying in the unincorporated portions of El Dorado County for a period of 30 days or less. Neither the tax code nor El Dorado County Ordinances require any specific use of TOT funds; however, historically at least 51% of TOT funds have been directed toward Economic Development to offset operational expenses as well as other various tourism related expenses, including funding agreements to promote tourism and economic development.
On December 10, 2019 (File No. 19-1818, Item No. 45), the Board approved a new Budget Policy (B-16). Policy B-16, Section II, Item No. 13, state that “Transient Occupancy Tax revenue shall be directed toward the impact of tourism and economic development, with consideration for support of tourism and promotional activities within the County and for continued support for grant fund allocations to support Veteran programs within the County.”
On March 9, 2021 (File No. 21-0349, Item No. 38), the Board rec...
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