Agenda Packet_2026-05-05 - Laserfiche WebLink

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EXHIBIT 1 FINANCIAb REPO ASSESSMENT There is no change in the method and basis of levying the assessment.The annual assessment rate is two percent(2%)of gross short-term room rental revenue.Based on the lack of benefit received,assessments will not be collected on revenue resulting from:stays of more than thirty (30)consecutive days;stays by any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty;and stays by any nonprofit organization that,as the result of a disaster,provides at its own expense hotel or motel shelter to any victim of a disaster. The term"gross room rental revenue,"as used herein means:the total consideration charged,whether or not received,for the occupancy of a space in a Lodging business valued in money,whether to be received in money,goods,Labor,or otherwise,including aLL receipts, cash,credits,property and services of any kind or nature,without any deduction whatsoever.Gross room rental revenue shaLL not include any federal,state,or local taxes collected,including but not Limited to hotel visitor taxes.The assessment is Levied upon and is a direct obligation of the assessed Lodging business. However,the assessed Lodging business may,at its discretion,pass the assessment on to transients.The amount of assessment,if passed on to a transient,shaLL be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes,and each transient shaLL receive a receipt for payment from the business.The assessment shaLL be disclosed as the"SATMD Assessment."The assessment is imposed solely upon,and remains the sole obligation of,the assessed Lodging business,even if it is passed on to transients.The assessment shaLL not be considered revenue for any purposes,including calculation of hotel visitor taxes. The City will continue to be responsible for collecting the assessment on a monthly basis(including any delinquencies,interest,and overdue charges)from each assessed lodging business.The City shall take all reasonable efforts to collect the assessments from each assessed lodging business.The City shaLL continue to forward the assessments collected to Travel Santa Ana. Interest and Overdue Charges The TMD shaLL reimburse the City for any costs associated with collecting unpaid assessments.If sums in excess of the delinquent TMD assessment are sought to be recovered in the same collection action by the City,the TMD shaLL bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shaLL be responsible for paying: 1.Original Delinquency Overdue Charge:Any Lodging business which fails to remit any assessment within the time required shaLL pay an overdue charge of ten percent(10%)of the amount of the assessment in addition to the amount of the assessment. 2.Continued Delinquency Compounding Overdue Charge:Any Lodging business which fails to remit any delinquent remittance on or before a period of thirty(30)days following the date on which the remittance first became delinquent shall pay an additional delinquency overdue charge of ten percent(10%)of the amount of the assessment and the ten percent(10%)overdue charge first imposed.Any lodging business which fails to remit any delinquent remittance on or before a period of sixty(60)days following the date on which the remittance first became delinquent shaLL pay an additional delinquency overdue charge of ten percent(10%)of the amount of the assessment and the ten percent(10%) overdue charge first imposed together with the additional ten percent(10%)overdue charge imposed. 3.Audit Deficiency Compounding Overdue Charge:If,upon audit by the City,a lodging business is found to be deficient in either its return or its remittance or both,the City shall immediately assess the lodging business the amount of the net deficiency plus an audit deficiency overdue charge of ten percent(10%)of the amount of the net deficiency.If said lodging business's remittance was deficient fora period of greater than thirty(30)days following the date on which remittance was first delinquent,said lodging business shall pay an additional audit deficiency overdue charge of ten percent(10%)of the net deficiency and the ten percent(10%)overdue charge first imposed.If said lodging business's remittance was deficient for a period of greater than sixty(60)days following the date on which the remittance first became delinquent,said Lodging business shall pay an additional audit deficiency overdue charge of ten percent(10%)of the amount of the assessment and the ten percent(10%)overdue charge first imposed together with the additional ten percent(10%)overdue charge imposed 4.Fraud:If the City determines that the nonpayment of any remittance due under this Plan is due to fraud,an overdue charge of twenty-five percent (25%)of the amount of the assessment shaLL be added thereto in addition to the overdue charges stated in subsections(1)and(2)of this section. 5.Interest:In addition to the overdue charges imposed,any Lodging business who fails to remit any assessment imposed by this Plan shaLL pay interest at the rate of one and one-half percent(1.50%)per month or fraction thereof on the amount of the assessment,exclusive of overdue charges,from the date on which the remittance first became delinquent until paid. 6.Overdue Charges Merged with Assessment:Every overdue charge imposed and such interest as accrues under the provisions of this section shaLL become a part of the assessment herein required to be paid. City Council 11 —28 5/5/2026