CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the first reading and pass an ordinance amending Title 3, Chapter 1, Section 9 of the Naperville Municipal Code pertaining to the distribution of collected food and beverage taxes for the Special Events and Cultural Amenities (SECA) Grant Program reinstating an annual escalator component (six positive votes required)
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DEPARTMENT: City Clerk's Office
SUBMITTED BY: Pam Gallahue, PhD, Director-City Clerk
BOARD/COMMISSION REVIEW:
Presented by the SECA Commission as Recommendation #3 at the February 2018 City Council workshop.
BACKGROUND:
In 2004, the City enacted a 1% citywide Food and Beverage tax and passed an ordinance creating the Culture Fund (today's SECA Grant Fund). The Culture Fund was created to fund City services necessary to support social and artistic events, and entities, who provide cultural experiences for Naperville and its visitors. Revenues generated from the citywide Food and Beverage tax funded the Cultural Fund at 100%.
The Food and Beverage Fund and the SECA Grant Fund Program are regularly reviewed and have been refined almost annually since 2013.
Most recently in February 2018, the City Council hosted a workshop with the SECA Commission to consider several recommendations to the application process and use of grant monies. The recommendation to reinstate the annual 2% escalator and apply it, or the Consumer Price Index (CPI), whichever is lower, to the SECA Grant Fund allocation was approved.
DISCUSSION:
Food and Beverage Tax - Revenue Application
Revenues from the Food and Beverage have grown significantly since 2013. Due to its positive performance, the tax now funds SECA at 75% (capped at $1.9 million) and supports additional programs such as Social Services Grants (SSG), pension payments, and debt service with the remaining 25%. Specifically, revenues generated are dispersed to five sequential functions:
* Administrative Expenses
Revenues from the tax are first alloc...
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