HomeMy WebLinkAboutMinutes 10/29/1998
CALL TO ORDER -
REGULAR MEETING:
ROLL CALL:
APPROVAL OF
MINUTES:
Review of 1998 Lodging
Tax Allocations and 1999
Funding Requests
1999 Lodging Tax
Appropriations
LODGING TAX ADVISORY COMMITTEE
Port Angeles, Washington
October 29, 1998
Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to
order at I :30 p.m.
Members Present:
Councilman Wiggins, Councilman Campbell, Bob Harbick,
Richard Vogel, John Platt, Randy Johnson, and Jim
Haguewood.
Members Absent:
David Morris, Steve Oliver, and Bill Rinehart.
Staff Present:
Economic Development Director Smith and Clerk Upton.
Others Present:
Rick Hert.
Dick Vogel moved to approve the minutes of the Lodging Tax Advisory Committee
meeting of October 5, 1998. The motion was seconded by Bob Harbick and carried
unanimously.
Review of 1998 Lodging Tax Allocations and 1999 Funding Requests: Tim Smith
entered on the whiteboard a list of agencies receiving 1998 lodging tax funds, the dollar
amount allocated, and a list of agency requests for 1999 funding. Allocations for 1998
totaled $129,000, and requests were submitted for 1999 funding in the total amount of
$192,000.
1999 Lodging Tax Appropriations: Lengthy discussion was held with regard to the
level of funds available for distribution in 1999, and the committee members addressed
the issue of whether or not funds should be set aside in a reserve status. Bob Harbick
noted the importance of having reserve funds available for new, worthy requests that
may be submitted during the year.
Councilman Wiggins referenced an article in Destination, pertinent to how lodging tax
revenues are invested. Within the article, there was a suggested formula to be used in
determining how lodging tax funds are spent, and Councilman Wiggins felt it may be
appropriate to consider usage of the formula with regard to the City's funds. The
formula set forth 40% for facilities and organizations; 10% for events; and 50% for
marketing the facilities, organizations, visitor assets, and events.
A question was raised as to whether there is an established standard on the level of
funds to be set aside in a reserve fund. Kay Godbey, Finance Director, joined the
meeting to respond to the question. As a matter of practice, the City sets aside 10-15%
of General Fund expenses in the reserve. The reserve is considered to be a "rainy day"
fund for emergency purposes.
Discussion was also held with regard to the importance of having the different agencies
wean themselves off lodging tax funding, and it was suggested that the formula
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LODGING TAX ADVISORY COMMITTEE
October 29,1998
1999 Lodging Tax
Appropriations (Cont'd)
referenced earlier may prove to be of assistance in that regard. Another consideration
was the possibility of calling the bonds on the Vern Burton Center in the year, 2002.
Tim Smith indicated a reserve fund could be set aside for that purpose. Committee
members debated the level of reserve funds, and Bob Harbick moved to establish the
goal of building the reserves back up to $49,000 by the end of 1999. The motion
was seconded by Jim Haguewood.
In the ensuing discussion, the committee recalled that previous discussion indicated that
agencies should be self-supporting in a period of three (3) years. Tim Smith suggested
that, during agency presentations, the committee members pose questions as to how the
agencies have delivered on increasing overnight lodging and how they have
accomplished the increase in the shoulder and off-season months. After further lengthy
discussion, a vote was taken on the motion which carried by a majority vote, with
Dick Vogel voting in opposition.
Councilman Wiggins raised the question as to which requests are "must spend" items;
therefore, he asked that Tim Smith be prepared for the Monday meeting with a
recommended list of funding commitments that must be made by the City. Rick Hert
reminded the committee that revenue projections for the year have been very
conservative, and he felt it likely that revenues would exceed projections.
ADJOURNMENT:
The meeting adjourned at 2:50 p.m.
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Becky 1. U ,Cler -
Glenn Wiggins, Chair
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