HomeMy WebLinkAbout1988-03-10; City Council; 9326; Transient Tax Increase Golf Course and Tennis-_ C17 OF CARLSBAD - AGEND BILL
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TRANSIENT TAX INCREASE-
SPECIAL TAX FOR GOLF COURSE CITY MGR.-: TRC
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Councilmember Mamaux is proposing that the City CounMl place before the voters a
ballot measure calling for a two-percent increase the Transient Occupancy Tax
would be used in accord with the following priorities:
A. Provide $200,000 per year funding for td'Convention and Visitors Bureau.
B. Provide up to $900,000 per year for debt-service payments on a bond issue of
$8 to $10 million used to construct a major golf course and tennis facility.
C. An additional $200,000 per year to fund golf courseltennis facility
improvements or to construct an executive golf course.
Rate effective beginning on July 1, 1989. The re ?' enue derived from this increase
D. Any funds in excess of $1.3 million received from the tax annually could be
returned to the General Fund.
E. The additional tax of 2% would expire upon the payment of the final debt
service payment related to any issue supported by the tax.
The City's present Transient Occupancy Tax rate is 6%. Council is currently
considering another action which could raise the TOT from 6% to 8% to provide
funds for general operating costs. This action proposes an additional 2% be
added to the TOT rate increasing it from 8% to 10%. The proposed increases could
occur independently of one another.
Under Article XIIIA of the Constitution, the proposed tax falls within the
definition of a special tax.
the Councilmembers to place the issue before the voters and 213 majority of the
voters casting ballots in an election to enact the tax. The deadline for Council
action is March 10, if this issue is to be placed before the voters at the June
election.
A special tax requires approval of the majority of
FISCAL IKPACT:
During 1986-87, the City received $1.7 million in Transient Occupancy Tax
revenue. If the City had implemented a 2% tax increase during that year, an
additional $570,000 would have been collected. For fiscal year 1988-89,
projected TOT revenue (based on a 6% tax rate) is $2.2 million. For 1988-89, a
2% tax increase should provide about $730,000 in additional revenue or a total
revenue of $2.93 million. The amount of revenue provided through this special
tax each year will depend on the health of the tourist industry. The following
table provides a rough estimate of the amount of revenue that could be provided
by this tax in future years assuming the City sustains a 15% growth rate in the
industry.
ESTIMATED REVENUE FROM ADDITIONAL 2% SPECIAL TRANSIENT OCCUPANCY - TAX
Amount
Raised
Year by 2% Tax
1988-89 $ 730,000
1989-90 840,000
1990-91 970,000
1991-92 1,110,000
1992-93 1,280,000
1993-94 1,470,000
Amount
Allocated
to corns
$200,000
200,000
200,000
200,000
200,000
200,000
Amount
Available
for Debt
Service
$530,000
640,000
770,000
900,000
900,000
900,000
Amount
Available
for Constr.
of Executive
Golf Course
10,000
180,000
200,000
Possible
General
Fund
Revenue
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170,000
Page 3 of AB 4) 7-72 6
The amount of a bond issue which could be supported by this debt-service schedule
should be between $8 million and $10 million depending on interest rates and the
taxable status of the issue. It is impossible to predict the bond market that
will exist in 1989.
A taxable issue may be necessary if certain legal tests cannot be passed. As the
issue is structured, bond counsel will advise the City Council on the
considerations going into this decision.
A bond issue guaranteed by TOT revenue would require an additional pledge of
General Fund revenue to secure the bondholder's position. Any shortfall in TOT
revenues would have to be made up from City General Funds.
Funding operating costs for the facilities under consideration is not a part of
the City's long-range budget plan at this time. Facilities of this type should
be designed to generate revenues sufficient to offset operating costs.
EXHIBITS:
1. Resolution No. pf- 75-,
2. Resolution No. rF-76 ,
3. Resolution No. p? -77,
4. Ordinance No. Ns-10
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SHALL ORDINANCE NO. NS-10 BE ADOPTED AMENDING CHAPTER 3.12 OF THE
RATE BY AN ADDITIONAL 2% TO PAY FOR THE PROMOTION OF TOURISM IN CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY TAX
THE CITY AND FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED FACILITIES?
RESOLUTION NO. 88-75
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING RESOLUTION NOS. 88-
58 AND 88-59 CALLING AND GIVING NOTICE OF THE
HOLDING OF THE SPECIAL MUNICIPAL ELECTION TO BE HELD IN THE CITY ON TUESDAY, JUNE 7, 1988, TO
INCLUDE THE SUBMISSION TO THE QUALIFIED ELECTORS
AN ORDINANCE RELATING TO INCREASING THE TRANSIENT
OCCUPANCY TAX BY AN ADDITIONAL 2% TO PAY FOR THE PROMOTION OF TOURISM IN CARLSBAD AND TO FINANCE A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED FAC I L IT1 ES .
WHEREAS, pursuant to the requirements of the laws of the State of
California relating to General Law Cities, there has been called and ordered to
be held in the City of Carlsbad, California, on Tuesday, June 7, 1988, a Special
Municipal Election for the purpose of submitting to the qualified voters an
ordinance relating to increasing the Transient Occupancy Tax from 6% to 8%; and
WHEREAS, the City Council desires to submit another measure to the voters
relating to an additional increase in the Transient Occupancy Tax to pay for the
promotion of tourism in Carlsbad and to finance a public golf course, tennis
courts and related facilities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
SECTION 1. That the above recitations are true and correct.
SECTION 2. That the City Council, pursuant to its right and authority,
does order submitted to the voters at the Special Municipal Election the
YES
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NO
fol 1 owi ng question :
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ATTEST :
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i SECTION 3. That the proposed ordinance submitted to the voters is attached
~ as Exhibit A.
SECTION 4. That Resolution No. 88-58 is hereby amended to include this
1 additional measure to the qualified voters of the City at the Special Election
to be held June 7, 1988.
SECTION 5. That Resolution No. 88-59 is hereby amended to request the
Board of Supervisors of the County of San Diego to authorize the Registrar of
Voters to include this measure in the provision of specified services relating
to the conduct of the election of the City of Carlsbad.
SECTION 6. That the City Clerk shall certify to the passage and adoption ' of this Resolution and enter it into the book of original resolutions.
PASSED, APPROVED AND ADOPTED at an Adjourned Regular Meeting of the City
, 1988, by ~ Council of the City of Carlsbad on the 10th day of March
the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Mamaux and Larson
NOES: Council Member Pettine
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Exhibit "A" to
Resolution No. 88-75
ORDINANCE NO. NS-lo
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CARISBAD, CALIFORNIA, AMENDING TITLE 3, CHAPTER 3.12 OF THE CARLSBAD MUNICIPAL CODE BY THE ADDITION OF SECTION 3.12.035 TO INCREASE THE TRANSIENT OCCUPANCY TAX RATE BY 2% TO PAY
FOR THE PROMOTION OF TOURISM IN THE CITY AND
FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND
RELATED FACILITIES.
The City Council of the City of Carlsbad,
California does ordain as follows:
SECTION I: That Title 3, Chapter 3.12 of the Carlsbad
Municipal Code is amended by the addition of Section 3.12.035 to
read as follows:
"3.12.030 Imposition of additional amount -- where *
payable -- D urposes. (a) In addition to the tax imposed by
Section 3.12.030 for the privilege of occupancy in any hotel, eacl transient is subject to and shall pay a tax in the amount of two
percent of the rent charged by the operator. Such tax constitute:
a debt owed by the transient to the City which is extinguished
only by payment to the operator or to the City. The transient
shall pay the tax to the operator of the hotel at the time the
rent is paid. If the rent is paid in installments, a
proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax
due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to
the tax administrator.
uses specified in this section in the following priority:
(b) The proceeds of this tax shall be limited to the
1. The City Council shall make an annual
appropriation beginning on July 1, 1989 to the Carlsbad
Convention and Visitors Bureau of two hundred thousand dollars to be used for the promotion of tourism in the City of Carlsbad. If
the Bureau ceases to exist or is otherwise unable to use the monel
for such purposes it shall be deposited in the general fund.
dollars per year shall be used by the City Council for the
construction of an 18 hole championship public golf course and
related facilities in the City of Carlsbad and for the
construction of one or more complexes of public tennis courts and
related facilities in the City of Carlsbad.
2. An amount up to the next nine hundred thousand
3. The next two hundred thousand dollars may be
used by the City Council for the construction, reconstruction,
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maintenance or repair of the facilities described in subsection
(2) or for the construction of an executive golf course and related facilities in the city of Carlsbad.
4. Any proceeds from this tax in excess of the
amounts necessary to satisfy the requirements of subsections (l), (2) and (3) or otherwise unexpended when this tax terminates shal
be deposited in the general fund.
(c) The tax imposed by subsection (a) shall be paid fo:
a period beginning on July 1, 1989 and ending twenty years after the date the City sells the bonds necessary to fund the
facilities described in Section (b) (2) .Iv
SECTION 2: The City Council may amend this ordinance
from time to time to add exceptions, or adjust the rate, or
application of tax, or make such other changes as they determine
to be necessary provided the rate of tax to be imposed by this
ordinance shall not be increased and the allocation of funds for
the promotion of tourism in the City or for the construction of
the golf course or tennis courts shall not be decreased.
SECTION 3: In accordance with Section 4013 of the
Elections Code of the State of California, this ordinance shall be
considered as adopted upon the date that the vote is declared by
the city Council and shall go into effect ten days after that
date.
SECTION 4: This ordinance imposes a special tax and
therefore requires the approval of two thirds of the voters voting
thereon in the election.
the same time as another ordinance requiring a majority vote which
It will be presented to the voters at
would raise the transient occupancy tax rate from 6% to 8%. If
both ordinances are adopted the effect of this ordinance will be
to increase the transient occupancy tax rate from 8% to 10%. If
this ordinance passes and the other does not this ordinance would
increase said rate from 6% to 8%.
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INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council on the
1988, and thereafter
day of I
PASSED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad on the
1988, by the following vote, to wit:
day of I
AYES:
NOES :
ABSENT:
APPROVED AS TO FORM AND LEGALITY
VINCENT F. BIONDO, JR., City Attorney
CLAUDE A. LEWIS, Mayor
ATTEST:
ALETHA L. RAUTENKRANZ, City Clerk
3.
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SHALL ORDINANCE NO. NS-10 BE ADOPTED AMENDING CHAPTER 3.12 OF THE
CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY TAX
RATE BY AN ADDITIONAL 2% TO PAY FOR THE PROMOTION OF TOURISM IN
THE CITY AND FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED
FAC I L IT1 ES?
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YES
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NO
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RESOLUTION NO. 88-76
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DIRECTING THE CITY ATTORNEY
TO PREPARE AN IMPARTIAL ANALYSIS OF THE PROPOSED
ORDINANCE PERTAINING TO AN INCREASE IN THE
TRANSIENT OCCUPANCY TAX TO PAY FOR THE PROMOTION
OF TOURISM IN THE CITY AND FOR A PUBLIC GOLF
COURSE, TENNIS COURTS AND RELATED FACILITIES.
WHEREAS, a Special Municipal Election is to be held in the Ci,g
Carlsbad, on June 7, 1988, at which there will be submitted to the qualif
voters of said City, the following Proposition, to wit:
of
ed
WHEREAS, the City Council desires to have an impartial analysis prepared
showing the effect of the Ordinance on existing law and the operation of the
Ordinance;
NOW, THEREFORE, BE IT RESOLVED, DECLARED, DETERMINED AND ORDERED by the
City Council of the City of Carlsbad as follows:
SECTION 1. Pursuant to the provisions of Section 5011 of the Elections
Code of the State of California, this City Council does direct the City Attorney
to prepare an impartial analysis of the Ordinance.
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SECTION 2.
PASSED, APPROVED AND ADOPTED at an Adjourned Regular Meeting of the City
Council of the City of Carlsbad on the 10th day of March , 1988, by
the following vote, to wit:
The impartial ana ysis shall not exceed 500 words in length.
AYES: Council Members Lewis, Kulchin, Mamaux and Larson
NOES: Council Member Pettine
ATTEST:
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SHALL ORDINANCE NO. NS-10 BE ADOPTED AMENDING CHAPTER 3.12 OF THE
RATE BY AN ADDITIONAL 2% TO PAY FOR THE PROMOTION OF TOURISM IN CARLSBAD MUNICIPAL CODE TO INCREASE THE TRANSIENT OCCUPANCY TAX
THE CITY AND FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED FAC I L IT I ES?
RESOLUTION NO. 88-77
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING CERTAIN OF ITS MEMBERS TO FILE A WRITTEN ARGUMENT REGARDING A CITY MEASURE
WHEREAS, a Special Municipal Election is to be held in the City of
Carlsbad, California, on June 7, 1988, at which there will be submitted to the
YES
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NO
voters the following measure:
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Carlsbad, California, does declare, determine and order as follows:
SECTION 1. That the above recitations are true and correct.
SECTION 2. That The City Council authorizes
Claude Lewis
Ann Kulchin
John Mamaux
Eric Larson
to file a written argument regarding the City measure set forth in the recitals
hereof in accordance with Article 4, Chapter 3, Division 5 of the Elections Code
of the State of California, and to change the argument until and including the
date fixed by the City Clerk after which no arguments for or against said City
measure may be submitted to the City Clerk.
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PASSED, APPROVED AND ADOPTED at an Adjourned Regular Meeting of the C
Council of the City of Carlsbad on the 10th day of March , 1988,
the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Mamaux and Larson
Council Member Pettine NOES:
ABSENT : None
ATTEST:
ALETHA L. WUTENKRANZ, City Clerk
(SEAL)
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0
ORDINANCE NO. NS-10
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, AMENDING TITLE 3,
CHAPTER 3.12 OF THE CARISBAD MUNICIPAL CODE BY
THJ3 ADDITION OF SECTION 3.12.035 TO INCREASE
THE TRANSIENT OCCUPANCY TAX RATE BY 2% TO PAY FOR THE PROMOTION OF TOURISM IN THE CITY AND FOR A PUBLIC GOLF COURSE, TENNIS COURTS AND RELATED FACILITIES.
The City Council of the City of Carlsbad,
California does ordain as follows:
SECTION I: That Title 3, Chapter 3.12 of the Carlsbad
Municipal Code is amended by the addition of Section 3.12.035 to
read as follows:
1'3.12.035 ImDosition of additional amount -- where payable -- D umoses. (a) In addition to the tax imposed by Section 3.12.030 for the privilege of occupancy in any hotel, eac
transient is subject to and shall pay a tax in the amount of two percent of the rent charged by the operator. Such tax constitute a debt owed by the transient to the City which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a
proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's
ceasing to occupy space in the hotel. If for any reason the tax
due is not paid to the operator of the hotel, the tax
administrator may require that such tax shall be paid directly to
the tax administrator.
uses specified in this section in the following priority: (b) The proceeds of this tax shall be limited to the
1. The City Council shall make an annual
appropriation beginning on July 1, 1989 to the Carlsbad
Convention and Visitors Bureau of two hundred thousand dollars to
be used for the promotion of tourism in the City of Carlsbad. If the Bureau ceases to exist or is otherwise unable to use the mone for such purposes it shall be deposited in the general fund.
2. An amount up to the next nine hundred thousand dollars per year shall be used by the City Council for the construction of an 18 hole championship public golf course and
related facilities in the City of Carlsbad and for the
construction of one or more complexes of public tennis courts and
related facilities in the City of Carlsbad.
3. The next two hundred thousand dollars may be used by the City Council for the construction, reconstruction,
3.
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maintenance or repair of the facilities described in subsection
(2) or for the construction of an executive golf course and
related facilities in the city of Carlsbad.
4. Any proceeds from this tax in excess of the
amounts necessary to satisfy the requirements of subsections (l),
(2) and (3) or otherwise unexpended when this tax terminates shall
be deposited in the general fund.
(c) The tax imposed by subsection (a) shall be paid for
a period beginning on July 1, 1989 and ending twenty years after
the date the City sells the bonds necessary to fund the
facilities described in Section (b) (2) .'I
SECTION 2: The City Council may amend this ordinance
from time to time to add exceptions, or adjust the rate, or
application of tax, or make such other changes as they determine
to be necessary provided the rate of tax to be imposed by this
ordinance shall not be increased and the allocation of funds for
the promotion of tourism in the City or for the construction of
the golf course or tennis courts shall not be decreased.
SECTION 3: In accordance with Section 4013 of the
Elections Code of the State of California, this ordinance shall be
considered as adopted upon the date that the vote is declared by
the City Council and shall go into effect ten days after that
date.
SECTION 4: This ordinance imposes a special tax and
therefore requires the approval of two thirds of the voters voting
thereon in the election. It will be presented to the voters at
the same time as another ordinance requiring a majority vote which
would raise the transient occupancy tax rate from 6% to 8%. If
both ordinances are adopted the effect of this ordinance will be
to increase the transient occupancy tax rate from 8% to 10%. If
this ordinance passes and the other does not this ordinance would
increase said rate from 6% to 8%.
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2a
INTRODUCED AND FIRST READ at a regular meeting of the
Carlsbad City Council on the 10th day of March I
1988, and thereafter
PASSED AND ADOPTED at a regular meeting of the City
Council of the City of Carlsbad on the 22nd day of March I
1988, by the following vote, to wit:
AYES: Council Members Lewis, Kulchin, Mamaux and Larson
NOES: Council Member Pettine
ABSENT: None
APPROVED AS TO FORM AND LEGALITY
ATTEST:
ALF4$HA L/BBd TEEPKRAN Z, City Clerk
*EN R. KUNDTZ, Deputy City Clerk
3.