[BoulderCouncilHotline] Re: CVB information

[Doelling, Kady]

Hi Lisa –
The city collects Accommodations and Food Service Taxes and, under current City of Boulder guidelines, a portion of the accommodations tax collected and all of the 0.15 percent sales tax collected on prepared food is transferred to the Visitors and Convention Bureau (CVB).

The following payments were paid to CVB:
2016 = $1,925,309
2017 = $2,136,795
2018 = $1,763,471


The accommodations tax was first implemented in 1970, at a rate of 5.0 percent. There was no amount transferred to CVB until 1984 when the organization was created.  In 1984, City Council agreed to increase the Accommodations Tax by 0.5% and transfer that amount, which was 9.09 percent (one eleventh) of the new rate, to the organization that is known today as the CVB. In 2010, the tax was increased to 7.5 percent. The 2 percent increase was split equally between the city and CVB (50 percent of the additional 2 percent). This additional amount, on top of the 9.09 percent of the original rate, equals 20 percent of the total rate, which is the  current amount transferred annually.

The final amount established by City Council is stated in Ordinance 7771.  It states, “although the city council recognizes that it cannot bind future city councils, it nonetheless declares its intention that up to 20 percent of the revenues generated by this tax be appropriate by future city councils for purposes of promoting programs and services that bring increased tourism to the city.” The incremental 0.15 percent sales tax that is charged on prepared food was implemented January 1, 1987, and the first transfer of the money to CVB occurred in 1989.  From what staff can determine the transfer has always been 100 percent of the amount collected.


The CVB does have council oversight as they have one City Council member (Bob Yates) and an alternate (Cindy Carlisle) sit on the board of directors. Members of the city’s Community Vitality Department and the Office of Arts & Culture act as ex-officio members of CVB’s board of directors. In addition, the CVB conducts at least one meeting annually with the city’s Finance Department and with special events staff. Through these efforts, staff and council participate in, and are aware of, the ongoing work and efforts of the organization.



The following Information Packet<https://protect-us.mimecast.com/s/q3SKC2kDlJukLAWVHM2mTa?domain=boulder.novusagenda.com> was sent to City Council in June and responds to how the money is spent and the composition of the CVB.



Thanks!



Kady



Kady Doelling

Executive Budget Officer



O: 303-441-1848

C: 720-724-6409

doellingk at bouldercolorado.gov



Finance Department

1136 Alpine | Boulder, CO 80304

www.bouldercolorado.gov



-----Original Message-----
From: Morzel, Lisa <MorzelL at bouldercolorado.gov>
Sent: Wednesday, October 2, 2019 11:35 AM
To: Doelling, Kady <DoellingK at bouldercolorado.gov>; MaryAnn Mahoney <maryann.mahoney at bouldercvb.com>
Cc: Council <council at bouldercolorado.gov>; HOTLINE <HOTLINE at bouldercolorado.gov>
Subject: CVB information



Dear Kady and MaryAnn



First, thank you, Kady, for being so responsive to my questions yesterday regarding the budget.



I have a few additional questions regarding the Convention and Visitors Bureau:



1. How much tax revenue has CVB collected in 2018, 2017, and 2016?



2.  How was that tax revenue spent? And how much of that was returned to the city’s general fund?



3.  What percentage was kept by CVB and how was that spent?  Who made the decision on how that percentage was spent? Was there public notice to the general public when monies were being considered for distribution to different entities so that interested parties in the general public could apply for some of those monies?



4.  I understand there is a board which oversees CVB. How is that board selected and why is that board not under the purview of the City Council since the money collected is tax revenue?



Thank you 🙏.



Lisa



Lisa Morzel

Member, Boulder City Council

303-815-6723 c

303-938-8520 h





How far we humans as stewards of the Earth have fallen.




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