§ 24-30. Administrative requirements; accountability; keeping of records.

(a)

Authority to contract with other entities for management of programs, etc., funded with tax's revenue. The city council may, by contract, delegate to a person, including another governmental entity or a private organization, the management or supervision of programs and activities funded with revenue from the hotel occupancy tax. The city council shall approve in writing in advance the annual budget of the entity to which it delegates those functions and shall require the entity to make periodic reports to the city council at least monthly listing the expenditures made by the entity of revenue from the tax provided by the city and individual summaries of each event conducted using revenue from the tax provided by the city.

(b)

Revenue to remain separate. The entity must maintain the revenue provided by the municipality from the tax in a separate account established for that purpose and may not commingle that revenue with any other money or maintain it in any other account.

(c)

Management of convention and visitor's program by contract only. The municipality may not delegate to any person or entity the management or supervision of its convention and visitor's programs and activities funded with revenue from the hotel occupancy tax other than by contract as provided herein.

(d)

Fiduciary responsibility. The approval by the city council of the annual budget of the entity to which these functions are delegated creates a fiduciary duty in the person or entity with respect to the revenue provided by the municipality to the person or entity under the contract.

(e)

Keeping of records. A person or entity with whom the municipality contracts to conduct authorized activities shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person or entity and on request of the city council or other person shall make the records available for inspection and review.

(f)

Expenditure of revenue for administrative costs. Hotel occupancy tax revenue may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing of expenditures hereinbefore authorized. If a municipal or other public or private entity that conducts an activity authorized under this section conducts other activities that are not authorized under this section, the portion of the total administrative costs for activities for which hotel occupancy tax revenue may be used may not exceed the administrative costs actually incurred in conducting the authorized activities.

(g)

What revenue cannot be spent on. Hotel occupancy tax revenue may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of the tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner.

(Ord. No. 09-13, § 1, 12-8-2009; Ord. No. 2018-19, § 1, 8-13-2018)