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Legislation #: 120112 Introduction Date: 2/2/2012
Type: Ordinance Effective Date: none
Title: Amending Chapter 2, Code of Ordinances, by repealing Sections 2-931 through 2-950, and enacting in lieu thereof new sections of like numbers and subject matters that will provide guidelines for the expenditure of Neighborhood Tourist Development Funds to promote tourism.

Legislation History
2/1/2012 Filed by the Clerk's office
2/2/2012 Referred to Neighborhoods & Healthy Communities Committee
2/8/2012 Hold On Agenda (2/22/2012)
2/22/2012 Hold Off Agenda
1/16/2013 Release
2/20/2013 Released

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Amending Chapter 2, Code of Ordinances, by repealing Sections 2-931 through 2-950, and enacting in lieu thereof new sections of like numbers and subject matters that will provide guidelines for the expenditure of Neighborhood Tourist Development Funds to promote tourism.




Section 1. That Chapter 2, Code of Ordinances of the City of Kansas City, Missouri, is hereby amended by repealing Sections 2-931 through 2-950, and enacting in lieu thereof new sections of like numbers and subject matters, to read as follows:


Sec. 2-931. Neighborhood tourist development fund committee.


The council establishes the following plan for the administration of the neighborhood tourist development fund (NTDF):

(1)               A neighborhood tourist development fund committee of 15 members is hereby established, consisting of:

a.                   Two persons from each council district, each to be appointed by his or her respective council representative;

b.                  Three representatives from the community at-large, to be appointed by the mayor.

(2)               All members must be residents of Kansas City. Six councilmanic district representatives will serve one-year terms. The remaining six councilmanic representatives will serve two-year terms. The city-wide representatives will serve a three-year term; however, all members shall continue in office as such until the respective successors have been appointed and qualified. All terms will begin on April 1. The mayor shall designate one member of the committee to serve as its chairperson and one member to serve as vice-chairperson. The purpose of the committee will be to review proposals and make recommendations to the council on the disbursement of the funds on a city-wide basis.

a.                   The neighborhood tourist development fund of the convention and tourism tax will be appropriated to one city-wide account that will be distributed as follows:

1.                  Civic Tourism Events. Fifty (50) percent of the fund shall be for civic tourism events that are defined as those events that promote the neighborhood in addition to drawing tourists nationally or regionally or that may have international appeal. A special emphasis shall be placed on events that are planned as recurring and have a plan to become self sustaining without the assistance of NTDF funds.

2.                  Neighborhood Tourism Events. Twenty (20) percent of the fund shall be for neighborhood tourism events as defined by the Neighborhood & Community Services that will promote the neighborhood and draw tourists primarily from the city and local region.

3.                  Destination Marketing Organization. Thirty (30) percent of the fund shall be for the promotion of the events that have been approved by council. The City shall contract annually with a not-for-profit organization incorporated in the state of Missouri and located within the city limits that is the official, designated Destination Marketing Organization ("DMO") for the western Jackson County and Clay County area, as prescribed by the Missouri Division of Tourism that will promote the approved events.

b.                  The committee will meet as often as necessary to review proposals for funding.

c.                   Recommendations on the disbursement of funds will be made quarterly during the fiscal year. The first quarterly disbursement will be included with the manager's budget package.

d.                  The director of neighborhood and community services will cause to be prepared for introduction before council an ordinance reflecting the committee's recommendation.

e.                   No proposal will be considered by the council for approval, modification or disapproval without first being reviewed and reported to the council by the committee, except those approved pursuant to Section 2-931(1)(a)(3) above.

f.                    Staff will notify the council of any proposals not recommended by the committee in the form of a communication to the mayor and council.

(3)               The committee is authorized to adopt reasonable rules and regulations governing the form, method and procedures used in the recommendation on the disbursement of funds, and for the conduct and administration of its affairs.

Sec. 2-932. Project selection guidelines.


In accordance with the general purpose of the fund to promote neighborhoods through cultural, social, ethnic, historic, educational and recreational activities, the following guidelines for project selection are established:

(1)               Projects must take place within city limits and should have appeal to local residents as well as to tourists.

(2)               Projects should be open to the general public and attract persons who would not otherwise plan to be in Kansas City, as well as attract those who are visiting for other purposes.

(3)               Projects should not reflect or enhance political parties, candidates or political office holders or promote religious tenets.

(4)               Capital projects may be considered if such projects are consistent with all other guidelines herein and funding for the planning, maintenance, and staffing of the capital projects from sources other than the fund are outlined in the applications.

(5)               Proposals which include hiring staff, securing consultant/planning services, or market studies are prohibited;

(6)               Proposals which include advertising should be encouraged. Such advertising may take the form of brochures, advertisements in travel literature, electronic communication, etc. All publicity and advertising must include reference to the city and credit the neighborhood tourist development fund as a funding source.

(7)               Proposals which request funds to supplant operating costs currently publicly-supported should not be considered.

(8)               Those proposals which are designed to generate funds which might alleviate the need for future city subsidy are preferred.

(9)               In order to maximize tourist participation, projects which have been coordinated with the convention and tourism industry are encouraged.

(10)           Proposals which provide for the maintenance of capital projects, including tourist attractions, are prohibited.

(11)           Proposals should identify whether the project is a civic tourism event or a neighborhood tourism event.

Sec. 2-933. Applicant criteria.


In accordance with the requirements of Section 92.336 RSMo, these funds must be provided to not-for-profit neighborhood organizations which are incorporated in the state and located within city limits. An eligible project must also meet the following criteria:

(1)               Must demonstrate that it encourages broad based citizen input and participation. This fund is intended to assist groups and projects as defined herein, as well as umbrella organizations and development corporations which meet these tests. It is not designed to fund the normal ongoing activities of individual block clubs and homes associations.

(2)               Any organization funded is subject to and must conform with the provisions of the city manager's administrative regulations setting forth the procedures, consistent with federal and state law, the City Charter and the Code of Ordinances for entering into contracts with nonmunicipal agencies.

Sec. 2-934. Activity criteria.


The council instructs the NTDF committee to consider funding for only "neighborhood tourist development activities." Neighborhood tourist development activities are cultural, social, ethnic, historic, educational and recreational activities which promote the city as a convention visitors and tourist center, and which meet all of the following criteria:

(1)               Neighborhood.

a.                   Provide a clear, geographical definition of the neighborhood that will be promoted by the activity.

b.                  Provide a clear, geographical definition of the neighborhood which is the beneficiary of the activity.

c.                   Provide a clear description of the way in which the activity will promote the benefitting neighborhood.

d.                  Provide a clear description of the way in which the activity will benefit the neighborhood in the short term and in the long term.

e.                   Demonstrate how the neighborhood, in which the activity will be held, participated in planning the activity.

(2)               Tourist.

a.                   Provide a clear appeal to persons who live in Kansas City but who would not normally visit the neighborhood in question, or

b.                  Provide a clear appeal to persons who do not live in Kansas City but who would travel to Kansas City to participate in or otherwise attend the proposed activity, or

c.                   Provide a clear appeal to persons who do not live in Kansas City but are visiting in the city and hear of the proposed activity.

(3)               Tourist development.

a.                   Provide a clear goal for the implementation of subsection (2) above.

b.                  Develop short- and long-term plans for achieving and maintaining interest in the proposed activity.

c.                   Provide a long-term plan to fund the activity.

(4)               Activity.

a.                   May be a one-time event.

b.                  May be a series of events.

c.                   May be an annual event.

d.                  May be a capital project.

e.                   If the event is noncapital, it may be entertainment, education or sports related only.

Sec. 2-935. Definition of neighborhood organization.


The term "neighborhood organization" means any organization performing community services or economic development activities that is located within the city limits, incorporated in the state of Missouri as a not-for-profit corporation established for the purpose of promoting such neighborhood through cultural, social, ethnic, historic, educational, and recreational activities in conjunction with promoting such city as an international trade, convention, visitors and tourist center.

The activities of a neighborhood organization should also contribute to the overall health and welfare of the city.

Sec. 2-936. Contract administration.


(a)    Staff from the neighborhood and community services department will be responsible for the contract administration of this fund in accordance with the city manager's administrative regulations setting forth the procedures, consistent with federal and state law, the City Charter, and the Code of Ordinances, for entering into contracts with nonmunicipal agencies.

(b)   The specific procedures for NTDF contracts regarding financial statement, program report, future funding, and first payment are set forth below; provided, however, that this subsection shall not apply to the contract for the promotion of the events approved by the Council pursuant to Section 2.931(1)(a)(3). The procedures for the financial statement, program report and allocation and disbursement of annual funds shall be specifically set forth in the executed contract for the promotion of events, as follows:

(1)               Financial statement. Within 90 days after the completion of the event/project, the contractors must submit to the city a compilation of costs in a form substantially as that found in section 2-939(a) RSMo, prepared by a certified public accountant. This compilation of costs must detail all event/project revenue sources and amounts, and related expenditures. Pursuant to section 2-939, the compilation of costs required herein can be included as an expense eligible for reimbursement.

(2)               Program report. Within 90 days after the event/project, the contractor must submit to the city a narrative report describing the activities of the event/project and including, but not limited to, such information as total estimated attendance, groups involved in planning and implementation, and in-kind contributions.

(3)               Future funding. If the contractor does not comply with the financial statement and program report requirements above, the contractor will not be considered for the award of neighborhood tourist development fund monies for one year following the year in which contractor received its last award.

(4)               First payment. The city may issue a first payment to the contractor in an amount not to exceed 1/2 of the contract amount upon presentation of a written request for said payment from the contractor. The contractor must provide the city with complete documentation supporting the expenditure of said payment. Documentation must include copies of both sides of the canceled checks issued and paid receipts from vendors. The city will not process any further payments to the contractor without documentation to support the first payment.

(5)               Semi annual reporting requirement: The NCS department shall submit a semi-annual report (in June and December of each year) on all funds expended, not expended, and the available fund balance to the Finance committee.

Sec. 2-937. Additional program requirements and restrictions.


The following additional requirements for funding are established:

(1)               Every corporation receiving neighborhood tourist development fund monies must maintain its registered office within the city limits.

(2)               The schedule of ineligible and eligible expenses found in section 2-939(b) RSMo must be followed.

(3)               No neighborhood tourist development fund contract shall be approved to fund activities or events performed prior to the adoption of an ordinance approving the contract.

(4)               After each quarterly recommendation by the NTDF committee but prior to the expenditure of any funds, the staff will hold a meeting with all grant recipients to explain the process and to distribute disbursement files for each project. The staff will assist organizations receiving NTDF funding in the preparation of the required disbursement documents. Distribution of funds will be contingent upon the prompt return of the disbursement file to the city and the contractor's compliance with the requirements of section 2-936.

Sec. 2-938. Administration of neighborhood tourist development fund.


The neighborhood and community services department will be designated to provide staff support to the neighborhood tourist development activities, by assisting the committee and by administering and monitoring all projects funded by this activity. The council expresses its desire that if the proper administration of this fund requires staff in excess of that currently budgeted, the NCS Director shall submit a budget amendment request to the City Council requesting additional funding.

Sec. 2-939. Forms/schedules pertaining to neighborhood tourist development fund.


(a)    Form of financial statement.




FOR THE PERIOD ____________/____________/____________ TO ____________/____________/____________


SPONSOR: _____


















































































A.     If balance is positive, please describe use of income:

____________Use for sponsoring organization's general operations.

____________Use for funding of future similar event.

____________Donate to beneficiary organization. (Name) ____________ ____________Other. Attach detailed explanation.

B.     If balance is negative, attach detailed explanation of plans to resolve outstanding indebtedness.


We have compiled the accompanying statement of revenues and expenses of the ____________ as of ____________/____________/____________, in accordance with standards established by the American Institute of Certified Public Accountants.

A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited the accompanying financial statements and, accordingly do not express an opinion on them.

Based on my review, I am not aware of any material modifications that should be made to the accompanying statement of revenues and expenses-cash basis, in order for it to be in conformity with the cash basis of accounting.

This report is intended solely for the information and use of the board of directors and management of the (organization) and the Neighborhood and Community Services Department of the City of Kansas City, Missouri. This restriction is not intended to limit the distribution of this report, which is a matter of public record.


(b)   Schedule of ineligible/eligible expenses for NTDF expenditures.

(1)               Ineligible expenses.

a.                   Utility installation/service.

b.                  Equipment purchases.

c.                   Cash awards.

d.                  Rental of office space.

e.                   Expenses for services/goods where an "arm's length relationship" does not exist between the contractor and the vendor.

f.                    Gasoline purchases.

g.                   Salaries/stipends.

h.                   Travel expenses not included in contract of entertainment vendor.

i.                     Consultants/planners (directors, technicians).

j.                    Permits, licenses or expenses for alcoholic beverages.

(2)               Eligible expenses should be event specific.

a.                   Postage.

b.                  Entertainment*.

c.                   Printing.

d.                  Permits.

e.                   Security.

f.                    Trophies/awards.

g.                   Equipment rental.

h.                   Facility rental.

i.                     Advertising.

j.                    Office supplies.

k.                  Long distance calls.

l.                     Costume rental.

m.                 Catering.

n.                   Insurance.

o.                  Promotional material.

p.                  Exhibit rentals.

q.                  Minor equipment.

r.                    Publicity.

s.                   Certified public accountant.**

*Contracts with entertainers should be developed to include their fee and any expenses for lodging and/or transportation. Travel expenses for staff or members associated with the project are not eligible for reimbursement.

**Reasonable certified public accountant expenses are eligible for reimbursement only when they are incurred in connection with the preparation of the compilation of costs form required under section 2-939(a).

Secs. 2-940-2-950. - Reserved.




Approved as to form and legality:




Kathy Adams

Assistant City Attorney