File #: 09-1012    Version: 1
Type: Agenda Item Status: Approved
File created: 7/21/2009 In control: Board of Supervisors
On agenda: 7/28/2009 Final action: 7/28/2009
Title: Chief Administrative Office recommending the Board approve the allocation of $600,000 from the promotions account to be awarded to organizations to carry out activities for the promotion of tourism, entertainment and business and leisure travel in the County of El Dorado. FUNDING: Hotel and Motel Tax (HMT).
Attachments: 1. FY 09-10 Promotions Program memo.pdf - Adobe Acrobat Pro.pdf, 2. 09-1012 B - Promotion Program Account.pdf, 3. 09-1012 C - Promotion Program Budget.pdf, 4. 09-1012 D Promotions Account PPT.pdf, 5. 09-1012 E Promotions Boiler Plate.pdf, 6. 09-1012 F Promotions RFQ.pdf - Adobe Acrobat Pro.pdf, 7. Email from J. Collins, 8. Letter from B. Gorman att'd 7-28-09.pdf
Title
Chief Administrative Office recommending the Board approve the allocation of $600,000 from the promotions account to be awarded to organizations to carry out activities for the promotion of tourism, entertainment and business and leisure travel in the County of El Dorado.

FUNDING: Hotel and Motel Tax (HMT).
Body
BUDGET SUMMARY:
Total Estimated Cost $

Funding
Budgeted $600,000
New Funding $
Savings $
Other $
Total Funding Available $600,000
Change To Net County Cost $

Fiscal Impact/Change to Net County Cost: The amount of $600,000 has been budgeted for Promotions Program via a competitive awards process for the 2009-10 awards funding cycle. There is no net county cost.

Background:El Dorado County first enacted a hotel/motel tax of 8% of the room charge in 1965. In 1992, by Ordinance No. 4262, the Board of Supervisors raised the county hotel/motel tax from 8% to 10%, effective January 1, 1993. This 2% increase was not submitted for voter approval at that time because the law as it then existed did not require voter approval for such an increase. The 10% rate has been collected since January 1993.
In 1995, the California Supreme Court decision in the case of Santa Clara Local Transportation Authority v. Guardino (1995) 11 Cal 4th 220, cast doubt on whether the 2% increase was valid without voter approval. More recent court decisions have continued to suggest that Ordinance 4262 may require voter ratification.
Measure V, as placed on the ballot November 5, 2002 and later defeated, sought voter approval for a 2% increase in the hotel/motel tax on the occupants of lodgings in the unincorporated area of the county enacted by the Board of Supervisors in 1992. Measure V required a simple majority vote to pass and was defeated (28,427) 54.8% No vote to (24,436) 45.1% Yes.

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