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Clive reduces CVB and Bravo hotel/motel shares, freeing roughly $70,000 annually for city operations
Summary
Facing revenue constraints, council approved reducing Clive’s hotel/motel tax distribution to the Greater Des Moines CVB and Bravo Greater Des Moines from about 28.6% to 25%, an estimated $35,000–$35,700 per organization to remain in the city budget.
Clive’s City Council voted unanimously to amend intergovernmental agreements that will reduce the city’s hotel/motel tax distributions to two regional organizations.
City staff explained the change responds to projected revenue constraints and complies with state law options. Currently Clive distributes approximately 28.6% of hotel/motel tax revenues to the Greater Des Moines Convention & Visitors Bureau (CVB) and to Bravo Greater Des Moines; the proposed amendments reduce each distribution to 25% beginning in the next fiscal year. Staff estimated the change would free roughly $35,000 to $35,700 for each organization’s share (about $70,000 total) to remain in Clive’s operating budget and be applied to priorities such as library, parks and recreation, and economic development.
Staff noted the reductions are consistent with actions taken by other metro communities and that the amendments were included in meeting materials listing jurisdictions that had adopted similar changes. Councilmembers asked staff how the freed funds could be used; staff said hotel/motel tax rules allow a range of operational uses including CVB services, arts and culture support, library and parks funding, and economic development.
The council approved resolutions authorizing the intergovernmental amendment for the CVB and Bravo Greater Des Moines by voice vote, recorded as four to zero.
Staff will follow up on required intergovernmental steps and monitor regional impacts to funded programs.
