9.04 USE OF PROCEEDS.

The proceeds of such tax imposed by this chapter shall be used for the following purposes:

1.   At least fifty percent (50%) of the revenues derived from such tax shall be used for the acquisition of sites for, or constructing, improving or maintaining of recreation, convention, cultural or entertainment facilities including but not limited to memorial buildings, halls and monuments, civic center convention buildings, auditoriums, coliseums and parking areas or facilities located at those recreation, convention, cultural or entertainment facilities or the payment of principal and interest, when due, on bonds or other evidence of indebtedness issued by the City for those recreation, convention, cultural or entertainment facilities; or for the promotion and encouragement of tourist and convention business in the City and surrounding areas.

2.   The remaining revenues may be spent for any City operations authorized by law as a proper purpose for the expenditure within statutory limitations of City revenues derived from ad valorem taxes.

3.   The City may pledge an amount not to exceed thirty percent (30%) of the revenues derived from such tax to the payment of bonds which the City may issue for one or more of the purposes set forth in the subsection 1 of this section. Any revenue pledged to the payment of such bonds may be credited to the spending requirement of subsection 1.

EDITOR’S NOTE
Ordinance No. 8-6-79 No. 1 imposing a motel and hotel tax was adopted by the Council on August 6, 1979, and was published on January 10, 1980. Approval of the imposition of the tax was given by voters in an election duly held. Ordinance No. 12-90#3(82) relating on an increase in the tax rate, to become effective January 1, 1991, was adopted December 10, 1990.