HomeMy WebLinkAboutCity Council Resolution 2021-322
C ITY OF P LYMOUTH
R ESOLUTION N O. 2021-322
R ESOLUTION R EGARDING THE USE OF THE L OCAL L ODGING T AX
WHEREAS, Minnesota Laws 2019, 1st Special Session, Chapter 6, Article 6, Section
25 (the "Special Legislation"), authorized the City of Plymouth, Minnesota (the "City"), to
impose by ordinance a tax of up to three percent on the gross receipts subject to the
lodging tax under Minnesota Statutes, section 469.190 (the "Lodging Tax"); and
WHEREAS, the Special Legislation further provided that two-thirds of the revenue
collected from the Lodging Tax must be dedicated and used for capital improvements to
public recreational facilities and the remaining one-third collected used for marketing and
promotion of the community (the "Eligible Use"); and
WHEREAS, the City subsequently adopted Ordinance No. 2020-05, imposing the
Lodging Tax; and
WHEREAS, the City has heretofore issued its General Obligation Tax Abatement
Bonds, Series 2020A, dated November 5, 2020 (the "Bonds"), which were issued to
finance the renovation and expansion of the Plymouth Community Center (the "Project"),
as provided in a resolution of the City, dated October 13, 2020, authorizing issuance of
the Bonds (the "Resolution"); and
WHEREAS, the City proposes to use two-thirds of the revenue collected from the
Lodging Tax to pay a portion of the debt service payments on the Bonds, as the Project is
an Eligible Use.
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PLYMOUTH, MINNESOTA that the City determines to utilize two-thirds of the revenue
collected from the Lodging Tax to pay the debt service payments on the Bonds. The City's
Finance Manager is hereby authorized to: (i) make such adjustments to, and provide for
in, the City's annual budget, that two-thirds of the revenue collected from the Lodging
Tax will be used to pay debt-service payments on the Bonds; and (ii) transfer, on an annual
basis, such Lodging Tax revenue amounts into the Debt Service Account established for
the Bonds in the Resolution.
APPROVED by the City Council on this 23rd day of November, 2021.
Resolution 2021-322
Page 2
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota,
certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on
November 23, 2021 with the original thereof on file in my office, and the same is a correct transcription
thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ___________day of
__________________, __________.
____________________________________
Jodi M. Gallup, City Clerk