Occupancy Tax Board

MINUTES OF THE OCCUPANCY TAX BOARD MEETING Tuesday, June 27, 2017 Regular Meeting 2:30 P.M. CALL TO ORDER AND WELCOME – The regular meeting of the Occupancy Tax Board was called to order at 2:30 p.m. by Chairperson Jim Fielding. ROLL CALL Members Present: Chairperson-Jim Fielding, Kerry Moore, and Roxanne Slayton Members absent: Josh Ragsdale, Jill Cleveland Three members of the board were present representing a quorum. Staff Present: Juanita N. Jennings, Director of Public Affairs, Allison Gray, Tourism & Event Manager, Sharon Coll, City Clerk, Others Present: Larry Connolly APPROVAL OF AGENDA – Ms. Moore motioned to approve the agenda. Ms. Slayton seconded the motion. A voice vote was unanimous (3-0) and the motion passed; APPROVAL OF MINUTES – Ms. Moore motioned to approve the minutes from the June 27, 2017 Occupancy Tax Board meeting. Ms. Slayton seconded the motion. A voice vote was unanimous (3-0) and the motion passed; PUBLIC COMMENTS - Mr. Connolly asked why the Occupancy Tax Board limits public participation to only one minute per person. Ms. Coll indicated that the Open Meetings Act says that the citizens have the right to attend any Body’s meeting, but the Body of that committee has the right to limit that to however much time they wish to do so if they wish to allow the public to speak. Ms. Coll further indicated that this decision is up to the Chair and if the Chair so desires to change the rule, he may. Mr. Connolly asked Chairman Fielding to extend the time period to 3 minutes. Ms. Coll indicated that Mr. Fielding could put the issue on the agenda for a future meeting. Mr. Fielding indicated that he will put it on the Agenda for the July 25, 2017 meeting and ask for a decision to allow 3 minutes per person from the public to speak at future meetings. REGULAR ITEMS (Action Items): 3. None. Other Business / Non-Action Items / Information Items / Reports (Non-Action Items): 4. Revised Lodgers Tax Policy: Mr. Fielding informed all members that the Public Affairs Director and the City Attorney have drafted a revised Lodgers Tax policy. Ms. Jennings informed all members that she wanted to provide the Lodgers Tax Policy draft to everyone for discussion only; this is not up for a vote. Ms. Jennings indicated that the goal of the City Staff and City Attorney and from feedback from City Council was to come up with a guiding document that would help determine how the city would use Lodgers Tax. Based out of the previous OTB meeting and how it determines funding, this document has been drafted. The purpose of the policy is to be fair and ensure the city is following the State statute. It provides how the guidelines would be defined, what the application process would be for the event organizers requesting funds and what eligible expenses are included. Lodgers Tax requests would now be filtered through the Public Affairs Department and is tied to the Special Event and Film policy that will also be going through City Council. The policy is going to General Services Committee tomorrow, June 28, 2017 at 3:30 PM. Mr. Fielding asked Ms. Jennings to go through the draft policy. Ms. Jennings indicated that other municipalities in New Mexico were researched for their Lodgers Tax policy and compared against Roswell’s along with the State Statute. Ms. Jennings went through the draft Lodgers Tax policy including purpose, guidelines, funding for advertising and tourism related events. Lodgers Tax is not available to pay for operational or administrative costs. Ms. Jennings indicated that the new Lodgers Tax Application policy will fall under the Tourism & Event Manager. The Tourism & Event Manager will handle the process from start to finish and work with City departments to make the process more efficient for the event organizer. Ms. Jennings indicated, aligning with State statute, Lodgers Tax funding will now be on a first come first served basis. The funding limits for any one organization in a fiscal year will be set by City Council on a case by case basis. Ms. Jennings covered the application process and indicated that the new policy would define eligible expenses aligning with the State statute and other municipalities. The Lodgers Tax policy would only cover promotion and advertising 80 miles from Roswell and further. One of the changes is that Lodgers Tax will only now pay for placement of advertising, not salaries of people doing the advertisement. Ms. Jennings indicated that entertainment would not be covered under the new Lodgers Tax policy. This is because research was conducted on past events and no entertainment brought in to an event and the City has impacted additional tourism, room nights, etc in a positive way. Ms. Jennings indicated that there is no more 100% advanced funding in this new draft policy. It will now only be on a 50% reimbursement basis. Lodgers Tax and the City wants to support events to eventually grow on their own and support themselves within 3 years. A second application can be made for City Services and be paid for out of Lodgers Tax. However, we want to make sure that City Services are paid for through Lodgers Tax and not directly charged to the event applicant. Ms. Stark-Rankins indicated that monies applied for City Services and awarded shall be awarded through OTB and in the end, City Council. Monies can be awarded either below or above what is requested. Ms. Jennings indicated that City Staff would review the applications and submit them to OTB for approval. Applications will be placed on the OTB Agenda and will be reviewed with a point structure and categories to attract tourism in mind. Ms. Slayton asked how the City will monitor Gross Receipts Tax to see how it impacts Lodgers Tax. Ms. Stark-Rankins indicated that we will lean on the after event surveys to measure against Gross Receipts Tax. Ms. Slayton, Mr. Fielding and Ms. Moore discussed the new thought of switching OTB meetings and subsequently Lodgers Tax approvals/fundings to only twice a year. It was decided that the twice a year proposal would stand in the draft of the new policy. Ms. Stark- Rankins and Ms. Jennings indicated that even if the OTB committee only met twice a year, they would not be overlooked in the decision process. They would still make their recommendation. Mr. Connolly asked which months would be considered. Ms. Jennings indicated October and April would be considered. If the new policy passes through City Council, the Public Affairs department would send out a notification letter informing them of the policy changes. Mr. Connolly asked if Public Affairs would help event organizers with advertising. Ms. Jennings indicated that yes, the Public Affairs department would be a resource for them because we want their event to be successful. Ms. Jennings indicated that the new policy would allow for the OTB to make a recommendation, and if it goes through Finance Committee and they made a different recommendation, it would come back to OTB for another review. The revised recommendation would then go back to Finance Committee and if they did not approve a second time, they would need to make another recommendation to send through to City Council. Ms. Jennings indicated that an event organizer has to be 18 years of age or older, they have to come to an OTB meeting to present their request, and they have to agree to use the Lodgers Tax wording on all promotion and advertising. Ms. Jennings indicated that for reimbursement, an event organizer has to provide a reimbursement form, their proof of payment and proof of performance, their event report and their financial statement. All event organizers have to submit their after event documentation within 90 days of the event. Ms. Coll asked if the new Lodgers Tax policy has to be attested. Ms. Stark-Rankins indicated that she doesn’t think it needs to be attested. Ms. Jennings reviewed the proposed new Special Event Questionnaire.  Ms. Coll asked that if an event organizer does not submit their supporting documentation within the 90 days allowed, do they forfeit their reimbursement? Ms. Jennings said yes. Ms. Moore asked if monies are forfeited, does that money go back into the Lodgers Tax budget? Ms. Jennings said yes. Ms. Jennings handed out the Lodgers Tax Ledgers Balance form. Discussion occurred regarding the numbers and comparisons made on the statement. Mr. Connolly asked if entertainment will be reimbursed. Ms. Jennings indicated that in the new policy, no, entertainment will not be eligible. However, promotions to promote the entertainment will be covered. Ms. Jennings also indicated that Lodgers Tax funds cannot be used for entertainers’ hotel lodging. Mr. Fielding asked if there were any other questions. None were asked. ADJOURN Mr. Fielding requested a motion for adjournment. Ms. Slayton made the motion to adjourn and Ms. Moore seconded the motion. A voice vote was unanimous (3-0) and the motion passed; Mr. Fielding stated that the next scheduled meeting of the Occupancy Tax Board is on July 25, 2017. The meeting was adjourned at 3:11 p.m. Minutes submitted for approval by Allison Gray.