TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Liza Tamura, City Clerk
George Gabriel, Senior Management Analyst
SUBJECT:Title
Resolution No. 18-0521, Placing a Ballot Measure on the March 5, 2019 General Municipal Election to Adjust the City's Hotel/Motel Transient Occupancy Tax (TOT) by up to 4% and Resolution No. 18-0164, Providing for the Filing of Rebuttal Arguments for City Measure (Finance Director Charelian and City Clerk Tamura)
ADOPT RESOLUTION NOS. 18-0521 AND 18-0164
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 18-0521 to submit a ballot measure to the voters to adjust the City's TOT by up to 4% and adopt Resolution No. 18-0164 providing for the filing of rebuttal arguments for city measure.
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FISCAL IMPLICATIONS:
The City Council previously directed staff to utilize the services of the Los Angeles County Registrar-Recorder/County Clerk to conduct the March 5, 2019, General Municipal Election. Funds totaling $314,182 were previously allocated towards conducting the March 5, 2019 General Municipal Election. In the event City Council submits a ballot measure at the March 5, 2019, election, $3,000 has been appropriated and budgeted.
The City currently collects approximately $5.2 million in TOT revenue each year from 12 hotels and motels through what is commonly known as a "hotel bed tax." The tax is not a tax on residents or their property, but a tax paid by guests choosing to stay in a lodging facility within the City. 100% of the additional TOT revenue will go to the General Fund. Of the current $5.2 million received on an annual basis, the City Council has, in past years, allocated 15% (approximately $750,000) to the Capital Improvement Project (CIP) Fund (the allocation is at the discretion of the City Council). Each 1% increase in the TOT is ...
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