FY 17 Annual Report

Restricted Cash Funds

2017

CITY OF SPENCER, IOWA

HOTEL / MOTEL TAX

FUND #085

FUND INFORMATION

The Hotel/Motel Tax fund was established to account for the revenues and expenditures of the City's Hotel/Motel Tax receipts. In November 2001, residents of the City of Spencer were asked to impose a hotel and motel tax at the rate of 5% on all rooms in the City of Spencer. The vote passed and the tax became effective January 2, 2002. Under State Law, the revenue generated by the hotel/Motel Tax shall be spent as follows:

* Each City which levies the tax shall spend at least 50% of the revenues derived therefrom for recreation, convention, cultural or entertainment facilities; or for the promotion and encouragement of tourist and convention business; * The remaining revenues may be spent by the city for any purpose authorized by law.

In November 2010, residents were asked to increase the tax rate from 5% to 7%, the maximum amount allowed under State Law. The vote passed and the tax rate change became effective January 1, 2011. The City uses the money generated by the additional 2% increase to fund tourism functions and the Clay County Convention and Visitors Bureau. Through June 30, 2017, the Hotel/Motel Tax has generated $2,709,178. The revenue from the tax has supported a variety of community projects over its history. The chart on the second page illustrates which projects have received funding and the amount they have received.

CURRENT BUDGET

YEAR TO DATE

% OF

FY 2016 ACTUAL

ACTUAL

BUDGET

REVENUES

TAXES

284,000.00

336,475.37

118.48 274.74

355,172.93

2,329.03

USE OF MONEY MISCELLANEOUS OTHER FINANCING

1,000.00

2,747.38

- - 357,501.96

- -

-

- -

TOTAL REVENUES

285,000.00

339,222.75

119.03

EXPENDITURES CONTRACTUAL SVCS

110,250.00 75,000.00

110,750.00 175,000.00

100.45 233.33

143,950.00 325,000.00 468,950.00

TRANSFERS

185,250.00

285,750.00

154.25

TOTAL EXPENDITURES

RESTRICTED CASH