Utah County commissioners will test their serving skills in May when they dish out the restaurant tax pie and try to make each city happy with its portion.
The county could have as much as $400,000 to use to promote tourism and support cultural and recreational projects in the county's 21 cities and towns. The money comes from the 1 percent restaurant tax the county imposed Oct. 1, 1991. The tax is allowed by HB438, passed by the Legislature in 1991.County officials will use most of the revenue to pay off a $7.7 million bond approved by voters to help construct the Utah Valley Special Events Center. However, the tax generated more than $1 million last year and the annual bond payment is only about $700,000. Commissioners said the extra revenue should benefit local taxpayers since they're the ones paying the tax every time they eat out.
"It should go back to them in some service and it should go to everybody," Commissioner Malcolm Beck said.
Even though local mayors agreed on guidelines for distributing the money at last month's Council of Governments meeting, commissioners are still likely to have a difficult time making everyone happy.
"What we do this year may be a little different than how we do things next year," Commissioner Gary Herbert conceded.
Provo Mayor Mike Hill said new activities that need startup money should be considered first. He also said priority should be given to activities or organizations that struggle financially and those that don't depend on ticket sales.
"The people have already paid the tax and if they have to buy a ticket, it's like making them pay twice," Hill said.
Mayors of the smaller cities expressed concern that most of the money will go to larger cities. Commissioners assured them that would not happen, and said only three applications would be accepted each year from each city.
"It's our intent to spread the money around regardless of where the activities are held," Herbert said.
Organizations interested in receiving a grant can apply through the city in which they're located. Only nonprofit organizations will be considered. Cities will screen the applications and each will turn three into the county. The county will accept applications through April 1 this year, but in subsequent years, the deadline will be March 1. Applications can only be for 25 percent of the activity's or event's total budget, which means most applications the county receives likely will be approved.
"I guess if we don't spend all the money, there's a possibility that we'll open it up later in the year," Herbert said.
Groups that apply and are turned down will receive priority next year.
Grant checklist
These are the criteria approved by Utah County Council of Governments for approving restaurant tax grants:
- Number of visitors the activity is expected to attract.
- Percentage of visitors the activity brings from outside Utah County.
- Ratio of grant funds to total revenues.
- Quality of the event.
- Number of volunteer hours.
- Applicant's demonstrated ability to fiscally manage the event.
- Number of years event has been held.
- Event is new or a community need.