We the undersigned are hereby showing our support, and urging your support, as our elected representative in making a change to the City of Shelbyville City Charter, Chapter Six, Sections 6-210 & 6-212, with regards to the disbursement of the Hotel and Motel Privilege Tax.

While in the past, we were able to rely on the Shelbyville-Bedford County Chamber of Commerce, or at least the City Council was as they adopted these two ordinances in 1991.  But now, many years later, times and traditions have changed. 

In researching numerous of our neighboring cities in relation to our size, these cities distribute these funds in a manner that is more acceptable to all, especially to those from whom this tax revenue is obtained from, the tourists and visitors to our city who stay in our hotels and Bed & Breakfasts. 

With the current City Ordinance, 6-212, the funds are given to the Shelbyville-Bedford County Chamber of Commerce, and they in turn, use the majority of these funds for operational expenses and not as they are intended to promote Tourism & Economic Development.  In one year alone, out of approximately $144,000.00 in Hotel Tax given to the Chamber, only $6000 of that was spent on Tourism and $1400 was spent on Economic Development.  It should not be the responsibility of our visitors and tourist to pay the salaries and all operating costs of the Chamber, nor should the hoteliers who collect these funds, many under protest of the visitors and tourists because of the high percentage rate, be responsible for their operating costs.  This should be the Chambers responsibility to generate their own income for these expenses, not the public.

 We are in support of the attached modification to the City Charter, Chapter Six, sections 6-210 and 6-212 to read as follows:

6-210. Proceeds. The proceeds received by the city treasurer from the tax shall be retained by the city treasurer and deposited into two special funds in the city's name and shall be used for tourism, economic and industrial development, and the various Departments and Organizations as provided for in section 6-212 in this chapter, all of which benefit the individuals from whom the tax was collected. 

The first Special Fund shall be allocated Fifty-two Percent (52%) of the proceeds collected (6-212-1) and the second shall be allocated Forty-Eight Percent (48%) of the proceeds Collected (6-212-2). No monies shall be expended from such fund except as provided in this section. Any unencumbered funds and any unexpended balance of this fund remaining at the end of any fiscal year shall not revert to the general fund, but shall be carried forward until expended in accordance with the provisions herein. Interest accruing on investments and deposits of the fund shall be returned to the fund and remain a part of the fund.

 Also a complete repeal of the current Section 6-212 and replacement with the following:

6-212 Distribution of Proceeds. The proceeds received by the city treasurer from the Hotel and Motel Privilege Tax shall be distributed as follows:

      6-212-1: Fifty-Two Percent (52%) shall be deposited into a Special Account in the name of the City of Shelbyville (Article 6-210) and of that Fifty-Two Percent (52%) shall be distributed as follows:

1. Not to exceed Thirty Two and one half Percent (32.5%) shall be deposited into a Special Fund in the name of the “City of Shelbyville-Economic and Industrial Development”, these funds will be made available to the Shelbyville-Bedford County Chamber of Commerce, for Economic & Industrial Development, All of which shall be used in promotion of Economic & Industrial Development, None of these funds shall be used towards any operational expenses; An Annual Report from the Shelbyville-Bedford County Chamber of Commerce shall be presented to the City Council detailing the use of these funds in Economic & Industrial Development;
2. Not to exceed Thirty Two and one half Percent (32.5%) shall be deposited into a Special Fund in the name of the “City of Shelbyville Tourism Commission”, these funds will be made available to the City of Shelbyville Board of Tourism, (see Article 6-212-3 in this Chapter).  An Annual report from the City of Shelbyville Tourism Commission shall be presented to the City Council detailing the use of these funds in Tourism Promotion.
3. Not to exceed Fifteen Percent (15%) to the Shelbyville-Bedford County Chamber of Commerce;
4. Not to exceed Five Percent (10%) to The Fly Cultural Arts Center & Museum;
5. Not to exceed Ten Percent (10%) to Tennessee Backroads Heritage;

6-212-2: Forty-Eight Percent (48%) shall be deposited into the Special Account in the name of the City of Shelbyville (Article 6-210) and that Forty Eight Percent (48%) shall be distributed as follows:

1. Not to exceed Twelve and One Half Percent (12.5%) to The City of Shelbyville Public Works Department;
2. Not to exceed Twelve and One Half Percent (12.5%) to The City of Shelbyville Parks & Recreation Department;
3. Not to exceed Twelve and One Half Percent (12.5%) to the City of Shelbyville Capital Fund for Capital Improvements and Capital Equipment;
4. Not to exceed Twelve and One Half Percent (12.5%) for miscellaneous Beautification Projects and forestry projects in the City of Shelbyville;
5. Not to exceed Fifteen Percent (15%) to the City of Shelbyville Police Department;
6. Not to exceed Fifteen Percent (15%) to the City of Shelbyville Fire Department;
7. Not to exceed Five Percent (5%) to the City of Shelbyville City Treasurers Budget for processing the collection and disbursement of the Hotel Tax as covered in this section and all sections herein.
8. Any remaining Balance of this 48% portion shall revert to the General Fund of the City of Shelbyville, with the exception of any interest earned on the account per 6-210.

6-212-3: Creation of the City Of Shelbyville Tourism Commission: A commission for tourism promotion shall be created effective the date of passage of this Charter charged with promoting the City of Shelbyville, its attractions, Historical features, amenities, and all aspects in an effort to promote tourism to the city.  The City of Shelbyville Tourism Commission will report directly to the City of Shelbyville, Office of the Mayor, and will not be put under the jurisdiction of any other Departments or City Staff, with the exception of the reporting to the City Treasurer, The office of the Mayor of the City of Shelbyville, and the City of Shelbyville City Council.

 The funds allocated for this commission will go into a special account set up by the city treasurer and shall be distributed to those channels chosen by the commission for advertising, Marketing, Digital Marketing and the like in the promotion of tourism to the City of Shelbyville.

The City of Shelbyville Tourism Commission will consist of the following representatives:               

1. Three Seats for a Hotel/Inn/Bed & Breakfast Representative
2. One Seat for the Bedford County Historical Society Representative
3. One Seat for a Tennessee Backroads Heritage Representative
4. One Seat for a The Fly Cultural Arts Center & Museum Representative
5. One Seat for a Local Retail/Restaurant Representative
6. One Seat for a City of Shelbyville City Council Representative
7. One Seat for an At-Large Representative with Tourism Experience
8. One Seat for the Shelbyville-Bedford County Chamber of Commerce Representative (Non-Voting/ Ex-officio Member)
9. One Seat for the City Parks & Recreation Director (Non-Voting/ Ex-officio Member)

 The Commission will lead the Marketing and promotion, in both print and digital formats, for the increase in Tourism to the City of Shelbyville and surrounding areas from which the Hotel and Motel Privilege Tax is collected.

 The Commission will create Bylaws which shall be submitted to the City of Shelbyville City Council for ratification.

 The Commission will submit an Annual Report to the City of Shelbyville City Council.

 In this the era of Digital Marketing, Social Media, and the like, the days of old have passed.  It is not fair to the organization and departments named in the above revision to be left out as they either provide services in direct relation to the people who generate this revenue, or they are the people who can better utilize these funds in order to generate more funds for this section.

We fully support the above revisions to the City Charter and urgently urge you, again as our representatives, to submit this and get it passed and ratified into law for the City of Shelbyville.