HomeMy WebLinkAboutReso 1978-9353-Ar
Revised 11-7-78
RESOLUTION N0. 9353-A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ESTABLISHING A SPECIAL TRUST FUND FOR THE
RECEIPT OF TRANSIENT OCCUPANCY TAXES
The City Council of the City of Chula Vista does hereby
resolve as follows:
WHEREAS, several hotel/motel owners or managers have here-
tofore expressed their objection to the recent increase in the tran-
sient occupancy tax from 6~ to 8~ as well as the fact that said
monies are expended through the General Fund of the City rather
than being earmarked, and
WHEREAS, although the majority of hotel/motel operators
have collected and paid to the City taxes which are presently due
and will become delinquent after October 31, 1978, those operators
who have raised such objection have chosen to establish an irrevo-
cable trust fund for the deposit of the taxes which they have
collected with a lending institution, and
WHEREAS, while the City Council has assured all of the
hotel/motel industry of an opportunity to be heard and to discuss
their grievances, the City Council, upon legal advice, has indicated
that the trust arrangement thus established will not relieve the
operators from the payment of a 10~ delinquency penalty and that
such penalty may not be waived, and
64HEREAS, after meeting with a group of the hotel/motel
operators, the City Council recognizes the unique nature of the
transient occupancy tax and feels that an amicable arrangement for
the establishment of a trust fund in the City would protect the
interests of the hotel/motel operators and not jeopardize the
taxing authority of the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of Chula Vista does hereby direct the Director of Finance to
establish a separate and distinct account to be treated as a special
trust fund for the receipt and deposit of all transient occupancy
taxes collected in the City of Chula Vista commencing with the quarter
ending September 30, 1978 and for those subsequent quarters for which
the tax will be collected during the term of said trust.
BE IT FURTHER RESOLVED that said trust fund shall remain in
effect and all monies held therein shall be unallocated by the City
to and until May 30, 1979 at which time said trust fund shall termi-
nate and said money shall be deposited in the General Fund of the
City unless appropriate alternative provisions are adopted in the
interim period.
BE IT FURTHER RESOLVED that all monies may be removed at
any time by mutual consent of the City and all or any number of the
collector payees or at the direction of a court of competent juris-
diction if the issues in contention become subject to litigation in
the determination of the legality and validity of the transient
occupancy tax as administered.
BE IT FURTHER RESOLVED that the Economic Advisory Committee
immediately take under consideration the problem of what the City's
policy and program should be with regard to assistance of the Visitor
Industry in the City of Chula Vista and come back with recommendations
as to what kind of policy the City should have and to what extent it
should provide financial assistance to support it and report back
within three months with their recommendation.
Presented and p ved as to form by
~ --
George%D. Lindberg, City Atte~rney
ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, this 31st day of October
197_x._.__, by the following vote, to-wit:
AYES: Councilmen scott, cox, Egdahl
NAYES~ Councilmen Hyde
ABSTAIN: Councilmen None
ABSENT: Councilmen Gi llow
W~ ~ ~
Mayor of the City of Chula Vista
_.
,_
ATTEST X_ ~'~ ~c~ ~~ ~~~ ,.f~
City `Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California,
DO HEREBY CERTIFY that the above and foregoing is a full, true and .correct copy of
DATED
CC-660
,and that the same has not been amended or repealed.
City Clerk
(seal)
`~ 1S f ~~