ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE Amending Chapter 27 of the CODE of the City of Peoria Pertaining to HOTEL OR MOTEL ROOM RENTAL USE OR PRIVILEGE TAX.
Body
BACKGROUND: At the November 17, 2015 Council meeting, the Council proposed an increase of 2.00% to the Hotel Tax. As part of the proposal, an amount equivalent to the additional revenues generated from the Hotel Tax would be transferred to the Road Fund to be used for infrastructure projects within the City right-of-ways.
FINANCIAL IMPACT: The 2.00% increase in Hotel Tax will provide additional revenue of approximately $800,000 in 2016 and 2017.
NEIGHBORHOOD CONCERNS: Representatives from the Marriott Hotel and the Heart of Illinois Hospitality Association expressed opposition to the increase in the Hotel Tax.
IMPACT IF APPROVED: The City Hotel Tax rate will be increased by 2.00% for a total rate of 8.00%.
IMPACT IF DENIED: The current Hotel Tax rate will remain at 6.00%. The additional revenue will not be realized and infrastructure improvements to be completed with the revenues designated for road improvements will not be done.
ALTERNATIVES: Provide an alternative revenue source or reduction in expenses.
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Attractive Neighborhoods with Character: Safe and Livable
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Invest in our infrastructure and transportation.
3. Reinvest in neighborhoods.
DEPARTMENT: City Manager's Office