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HomeMy WebLinkAboutMinutes 09/13/2004 CALL TO ORDER: ROLL CALL: Welcome to New Members Approval of Minutes Redemption of Bond Debt 2005 Budget Allocations for Marketing LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington September 13, 2004 Councilmember Rogers called the meeting of the Lodging Tax Advisory Committee to order at 3:04 p.m. Members Present: Councilmember Rogers, Pat Davis, Bob Harbick, Dave Neupert, Steve Oliver, and Brian Savage. Members Absent: William Giraldez, Jim Haguewood, Jack Harmon, Councilmember Munro, and Bill Rinehart. Staff Present: Finance Director Ziomkowski and Clerk Upton. Others Present: Brian Gawley and Russ Veenema. Councilmember Rogers welcomed the new members of the Lodging Tax Advisory Corrnnittee: Pat Davis, Downriggers, serving as an at-large member, and Brian Savage, Quality Inn, serving as a representative ofthe lodging industry. William Giraldez, Red Lion and also a new member representing the lodging industry, was unable to attend today's meeting. Approval of Minutes: Dave Neupert moved to approve the Lodging Tax Advisory Committee minutes of August 16, 2004. The motion was seconded by Steve Oliver and carried unanimously. Redemption of Bond Debt: Finance Director Ziomkowski distributed information pertinent to the redemption of the bonded debt on the Veffi Burton Conference Center, consideration of which had been previously proposed for consideration. The 1992 debt. which also included the cost of a fire truck, could be redeemed either December I or June 1, and both would require 45 days notice. The cash balance in reserve is currently $200,000, and the maturity date of the bond is presently 2012. Interest rates on bonds are projected to be between 6.4% and 6.75% for the period, 2005 - 2012. Director Ziomkowski indicated it could be good business to pay off the debt; however, ifthis path were to be pursued, she felt the total amount should be paid in its entirety as opposed to making payments. Discussion ensued on the matter of possibly purchasing a new bond; however, the interest generated would be about 4.5%, and other costs would be attributed to attorney fees so the endeavor wouldn't be cost effective. Director Ziomkowski felt it would be better to borrow from the General Fund to pay offthe bond. Discussion ensued as to the benefits or the lack thereof in redeeming the bond. Once paid off, there would be an additional $50,000 that could be used for marketing. However, should an interfund loan be acquired, the payment amount would still be reflected on the financial statement. Russ Veenema pointed out the $130,000 in the proposed budget that is earmarked for other capital. He noted that a portion of those funds could be dedicated to the bond. 2005 Budget Allocationsfor Marketing: For the benefit of the new committee members, Russ Veenema reviewed the proposed 2005 budget for marketing. He advised the committee that 2004 actual figures had been changed due to the receipt of an August -1- LODGING TAX ADVISORY COMMITTEE September 13, 2004 2005 Budget Allocations for Marketing (Cont'd) payment. At the presenttime, lodging tax revenues are 13% ahead oflast year, and Mr. Veenema was comfortable proj ecting total revenues for the year in excess of $41 0, 000. Discussion was held with regard to using $100,000 from the conference center reserve for marketing, and Mr. Veenema reminded the group that marketing does not equate to advertising. He then reviewed more of the detail of the budget, summarizing the different categories such as, capital projects, event/tournament funding, guest service, and marketing. If approved, the next step would be to address the matter of how capital projects should be funded. Director Ziornkowski indicated the budget should be adopted on December 7, but the preliminary budget figures will be presented to the Finance Committee for consideration. Mr. Veenema discussed capital projects, and Steve Oliver advised the group he had been contacted by the Babe Ruth organization with a request to install lighting at Volunteer Park. It is felt that the availability oflighting would help attract more tournaments to the area in the shoulder season. This led to discussion as to previous funding commitments recommended by the committee, with one-third for events, one-third for capital, and one-third for marketing. In conjunction with the Babe Ruth request, Mr. Veenema discussed a proposal for a covered arena at the Fairgrounds, and he suggested the possibility of combining the two into one. He noted the County is looking at a new tax for capital projects, and he supported an expanded use of the Fairgrounds. Clerk Upton shared information relative to the City's lease of the Fairgrounds property to the County and requirements set forth by the Federal Government as to the use of the property. Further consideration was given to funding for capital projects, and Russ Veenema felt that certain criteria should be established, similar to the criteria used in determining funding for special events. Bob Harbick moved to approve the proposed marketing budget for 2005 as presented, to include a process for funding capital projects. The motion was seconded by Dave Neupert and carried by a majority vote, with Steve Oliver voting in opposition. Mr. Oliver felt that funding for capital has been taken from prior budgets and used for other purposes. He expressed the desire to remain consistent with the 1/3-1/3-1/3 split. Councilmember Rogers advocated a process for determining capital projects to be financed, and Russ Veenema volunteered to prepare something for consideration. Committee members Oliver, Neupert, and Harbick volunteered to work with Mr. Veenema on this issue. Mr. Veenema, for the benefit of the new members, briefly explained the process used to fund special events. Adjournment Adjou nment: The meeting adjourned at 4:15 p.m. Ao,.~ J..Jpm^ Becky J. Up , C Clerk - 2-