(A) The amounts collected by the municipality pursuant to this chapter shall be expended by the municipality solely to promote tourism and conventions within the municipality or otherwise to attract non-resident overnight visitors to the municipality. No funds received pursuant to this chapter shall be used to advertise for or otherwise promote new competition in the hotel business.
(B) Expenditures of funds collected by the municipality pursuant to this chapter shall be subject to an annual budget adopted by the City Council for the Hotel/Motel Tax Special Revenue Fund before the beginning of the fiscal year to which it applies. The fiscal year of the municipality begins May 1 and ends April 30.
(C) The Tourism and Arts Director submits requests for appropriation of Hotel/Motel Tax funds as recommended by the Tourism Advisory Committee. The City Administrator uses the request of the Committee as the starting point for formulating a tentative budget. The tentative budget is published and made conveniently available for public inspection for at least ten days prior to the passage of the budget. Not less than one week after the publication of the tentative budget and prior to final action on the budget, the City Council holds at least one public hearing, after which hearing or hearings, the budget may be further revised and passed without any further inspection, notice or hearing. Notice of the budget hearing is given by publication in a newspaper having a general circulation in the municipality at least one week prior to the time of the hearing.
(D) The budget is presented in account code classifications that enable reporting of financial data by fund, function and objects of expenditure. The City Council delegates authority to the departmental Commissioner responsible for tourism development to delete, add to, change or create sub-classes within object classes budgeted previously, subject to prior approval by the City Administrator. On recommendation of the Tourism Advisory Committee and a vote of two-thirds of the City Council members, the annual budget shall be made increasing the budget in the event funds are not available to effectuate the purpose of the revision.
(E) The Tourism and Arts Director is responsible for managing expenditures within limits established by the approved budget. No person shall obligate hotel/motel tax funds for any purpose unless the Tourism and Arts Director has given prior approval as to budget and account coding by signing a source document authorizing the transaction. Expenditures greater than $5,000 require signature approval of the City Administrator. The Tourism and Arts Director may authorize expenditures exceeding individual line item amounts in the approved budget with the prior approval of the Departmental Commissioner, but formal City Council approval at a regular or special meeting shall be required in all of the following circumstances:
(1) For any deviation that would increase the number of full or part-time positions authorized by the budget;
(2) For any deviation from the approved budget that will exceed the "bottom line" established for total expenditures for the Hotel/Motel Tax Fund;
(3) For any deviation from the approved budget that will transfer money between funds; and
(4) For expenditures valued greater than $10,000, regardless if the project or program has been authorized in the approved budget.
(Ord. 91-4662, passed 6-18-1991; Am. Ord. 2004-5192, passed 10-5-2004; Am. Ord. 2005- 5211, passed 11-15-2005; Am. Ord. 2012-5359, passed 12-18-2012)