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File #: 21-0349    Version: 1
Type: Agenda Item Status: Approved
File created: 2/25/2021 In control: Board of Supervisors
On agenda: 3/9/2021 Final action: 3/9/2021
Title: Chief Administrative Office and the Department of Planning and Building, Economic Development Division, recommending the Board provide direction on the use of Transient Occupancy Tax (TOT) funding for Fiscal Year 2021-22 Budget. FUNDING: Transient Occupancy Tax.
Attachments: 1. A - TOT Funding Recommendation, 2. B - Use of TOT FY 2013-14 to 2021-22, 3. C - TOT Payments CY 2020, 4. D - WACE Report, 5. E - WACE Report Data Spreadsheet, 6. F - GSEC Fiscal Year 2021-22 Annual Commitment Estimate, 7. G - BOS TOT Minigrant Memo March 8 2021, 8. Public Comment BOS Rcvd 03-05-2021, 9. Public Comment BOS Rcvd 03-08-2021, 10. Public Comment BOS Rcvd 03-09-2021
Related files: 19-0483, 18-0855, 19-1755, 19-1818, 21-1002, 21-0484, 21-0800
Title
Chief Administrative Office and the Department of Planning and Building, Economic Development Division, recommending the Board provide direction on the use of Transient Occupancy Tax (TOT) funding for Fiscal Year 2021-22 Budget.

FUNDING: Transient Occupancy Tax.
Body
DISCUSSION/BACKGROUND
The Transient Occupancy Tax (TOT), or Hotel/Motel Occupancy Tax, is 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 30 days or less. Neither the tax code nor El Dorado County ordinance require any specific use of TOT funds.

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. Total TOT revenue was budgeted at $3,735,000 for Fiscal Year (FY) 2020-21 (reduced from the recommended Budget amount of $4,980,000, due to uncertainty in regard to the effects of the COVID-19 pandemic). TOT was allocated as follows:

Treasurer-Tax Collector - $373,500
Economic Development Division - $1,049,480
Promotions Funding Agreements - $610,940
Wagon Train Contribution - $10,000
Veteran’s Commission - $131,420
Senior Veteran's Services Officer - $90,513
General Fund - $1,554,660

Based on a recommendation from the FY 2019-20 B...

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