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HomeMy WebLinkAboutMinutes 09/06/2006 I.~ \ '" i:- . . . LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington September 6, 2006 MEETING MINUTES CALL TO ORDER Mayor Rogers called the meeting to order at 2:08 pm. ROLL CALL Members Present: Mayor Rogers, Bob Harbick, Jack Harmon, Karen McCormick Councilmember Munro, Dave Neupert, Bill Rinehart and Joseph Mollerus. Members Absent: Pat Davis, Steve Oliver and Brian Savage. Staff Present: Mark Madsen, Yvonne Ziomkowski, Glenn Cutler, Gary Kenworthy and Sherry Wright. Public Present: Brian Gawley, Russ Veenema, and Don Perry. APPROVAL OF MINUTES Motion by Bill Rinehart to approve the Lodging Tax Advisory Committee minutes of June 14,2006. The motion was seconded by Grant Munro and carried unanimously. REVIEW CRITERIA FOR FUNDING CAPITAL PROJECTS Sherry Wright distributed draft copies of the criteria for capital projects funding for the committee to review. Bob Harbick suggested adding a reference to the applicable RCW to the list of criteria. Karen McCormick suggested adding a question about whether the project will create additional FTEs. A final suggestion was made to give funding preference to capital projects that were located in the City limits. Russ Veenema asked whether the committee wanted to have two deadlines during the year when applications would be reviewed. Following discussion, the committee agreed to accept applications on an ongoing basis in order to make the process open and accessible for all projects. Motion by Jack Harmon to adopt the criteria for capital projects funding with the three revisions proposed by committee members. Motion was seconded by Dave Neupert and carried unanimously. . . . }. L T AC Minutes September 6, 2006 Page 2 REQUEST FOR CAPITAL FUNDING Glenn Cutler reviewed the downtown waterline and sidewalk replacement project currently underway in the City. He noted that water utility funds have been used for the majority of the project since waterlines were being replaced under most ofthe sidewalks. However, a portion of the west side of Laurel Street, from Railroad to First Street, does not have waterlines and therefore cannot use utility money to fund the sidewalk repair. Mr. Cutler said he was requesting lodging tax revenue to fund the replacement of sidewalks on the west side of Laurel Street from Railroad to First Street. He noted that approval of his request would result in an annual loan payment of $16,704 for 20 years using lodging tax revenue. This amount would cover new sidewalks and backfilling along Laurel Street from Railroad to First, but would not preserve the underground. An additional annual payment of$17,818 for 20 years was also being requested in order to restore the steps and upgrade the sidewalk between Front Street and First Street to a design similar to the current sidewalks. This additional amount would allow the underground to remain operational. Discussion followed on the merits of using lodging tax revenue to fund sidewalk replacement. Mr. Veenema reminded the group of the other capital projects that have been discussed by the committee in the past. He said he thought this request was a bit premature and wanted to consider some of the other options. Bob Harbick asked for clarification of the figures provided by Mr. Cutler. He asked Mr. Cutler to provide information relating to how much ofthe request was directly associated with preserving the underground. Don Perry spoke in favor of Mr. Cutler's request, noting that the underground is directly responsible for bringing tourists to Port Angeles annually. Yvonne Ziomkowski provided a quick overview of the Lodging Tax Fund to clarify how much money was available for capital projects. At a recent meeting, the committee voted to allocate approximately 1/3 oflodging tax revenue to capital projects, which will result in approximately $150,000 annually to fund capital projects. In addition, there is $210,000 in the fund's reserve balance, of which approximately $150,000 is available for one-time capital project expenditures. Joseph Mollerus expressed concern in allocating large on-going expenditures for capital projects when it's uncertain whether revenue will continue to grow. He stated the current revenue growth was a result of room rate increases as opposed to occupancy growth. "'... .,. . . . ~..;" LTAC Minutes September 6, 2006 Page 3 Mayor Rogers suggested the committee make a first call for capital projects with a due date of September 20. The revised criteria will be provided to the media and Chamber for distribution to the public. PRELIMINARY BUDGET DISCUSSION Yvonne Ziomkowski distributed the proposed 2007 Lodging Tax budget. She noted that this proposed budget only allocates $86,000 to capital projects, which is less than the 1/3 split voted on by the committee at an earlier meeting. Motion by Dave Neupert to approve the preliminary budget as presented. Motion was seconded by Jack Harmon and carried unanimously. NEXT MEETING The next meeting will be held Wednesday, September 27 at 2:00 pm in the Public Works Conference Room. ADJOURNMENT The meeting was adjourned at 3:32 pm. ~~