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TO: Mayor Thomas J. Weisner
FROM: Carie Anne Ergo, Chief Management Officer
DATE: January 13, 2014
SUBJECT:
A Resolution Authorizing the Execution of an Agreement in Support of the Aurora Area Convention and Visitors Bureau through the Hotel Operators' Occupation Tax.
PURPOSE:
To obtain the City Council's approval of a resolution that would extend the City of Aurora's participation in the Aurora Area Convention and Visitors Bureau from December 16, 2013 through December 15, 2015. Aurora agrees to contribute 90% of its revenues collected through the Hotel Operators' Tax during this period up to $175,000 annually.
BACKGROUND:
In 1987, the city entered into an intergovernmental agreement (IGA) with the Villages of North Aurora, Sugar Grove and Montgomery concerning the imposition of a hotel/motel tax and the use of the proceeds of that tax to promote tourism in the greater Aurora area (Resolution No. R87-3668). Originally, the communities agreed to impose a 3% hotel/motel tax and give 80% of the proceeds to the Aurora Area Convention and Tourism Council (now named the Aurora Area Convention and Visitors Bureau [AACVB]).
Since the execution of the original agreement, it has been amended and its term has been extended several times. Over the course of the extensions, the number of participating municipalities increased and the amount of hotel/motel tax proceeds conveyed to the AACVB increased from 80% to 90% of total collections.
DISCUSSION:
The extension of the fifth amendment to the Intergovernmental Agreement expired on December 15, 2013 (Resolution No. R12-362). In evaluating the terms of the extension, it became clear that the City of Aurora was the largest single financial contributor to the AACVB. According to the AACVB budget documents for fiscal year 2013, the organization's total budget minus carryovers was estimated to be $896,067. The City of Aurora directly contributed $489,912, which was 54.7% of the AACVB's...
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