The Mount Vernon City Council is set to finalize a restructuring of the distribution process for its 3% motel tax revenue. The Foundation Park Conservancy, previously a recipient of these funds, will no longer be included in the distribution.
According to the city's codified ordinances, 5% of the funds are allocated to the city's general fund. The remaining portion of the lodging tax revenue is earmarked for tourism destination marketing and development. This is achieved through grants to qualifying not-for-profit organizations and projects, as per the Mount Vernon City Council's Dec. 11 meeting agenda. These organizations are required to report annually to the City Council with an outline detailing their use of the funds.
The Foundation Park Conservancy had been contracted to receive 5% of this tax revenue on a monthly basis from Jan. 1, 2022, through Dec. 31, 2023. However, according to the same meeting agenda, an amendment has been made to eliminate the conservancy from this tax distribution.
In contrast, the Mount Vernon Parking Company is slated to receive 10% of this tax revenue over two years from Jan. 1, 2024, through Dec. 31, 2025. Experience Mount Vernon will receive a larger share at 30%. Additionally, Woodward Opera House will get a quarter (25%) of these funds—an increase by five percentage points compared to previous years—while Knox County Convention & Visitors Bureau will receive one-fifth (20%).
As per the council's Dec. 11 meeting agenda, an ordinance reserves the final tenth (10%) of these tax receipts for distribution among not-for-profit agencies via an application process. The Greater Downtown Management Council will oversee this process: accepting applications; reviewing them; and making recommendations to both city mayor and auditor who can then accept, modify or reject any proposals put forth. These grant funds must also be used specifically for tourism destination marketing and development.
