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HomeMy WebLinkAboutMinutes 11/03/1997 CALL TO ORDER: ROLL CALL: Lodging Tax Debt Service, Vern Bwton Revenue & Expense, and Leveraging of Future Tax Funds City Council Priorities Re. Lodging Tax Allocations LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington November 3, 1997 Chairman Wiggins called the meeting to order at 3 :00 p.m. Members Present: Councilman Glenn Wiggins, Councihnan Orville Campbell, Bob Harbick, Dick Vogel, John Platt, David Morris, Steve Oliver, Randy Johnson, Bill Rinehart, Bob Grattan, and Jim Haguewood. Staff Present: Contracts/Projects Administrator Smith, Clerk Upton, and Accounting Manager Ziomkowski. Public Present: Rick Hert. I. Lodging Tax Debt Service, Vem Burton Revenue & Expense, and Leveraging of Future Tax Funds Accounting Manager Yvonne Ziomkowski distributed and reviewed a fact sheet pertinent to the debt service on the Convention Center, Vern Bwton revenues, and leveraging of future funds. She noted that operating costs directly related to the Vern Bwton Center are difficult to track by virtue of the fact they are paid out of the General Fund. Revenues generated are returned to the General Fund in order to offset the expenses. In the ensuing discussion, Bob Grattan inquired as to whether there were any projections on the utilization of the Vern Bwton facility. Tim Smith offered to pursue this matter and report back to the committee. In addition, it was suggested that staff be prepared to at least provide expense information related to utilities and maintenance of the facility. In response to a question from Chairman Wiggins, Ms. Ziomkowski indicated the roof for the Fine Arts Center will have a 1998 payment of $3 ,500, after which time the roof will be paid in fulL With regard to the possibility of leveraging future tax funds, Ms. Ziomkowski reported that $170,000 would finance $2 million in GO bonds for twenty (20) years. Interest is currently at a level of 6%. 2. City Council Priorities Re. Lodging Tax Allocations Councilman Campbell, having taken an informal poll of the City Council members, reported there are certain projects which hold a place of importance with the City Council, such as: the Marine Lab, the Juan de Fuca Festival of the Arts, the Museum, the Fine Arts Center, and the Visitors Center. He noted there were varying degrees of support by the CounciL He cautioned everyone that this committee needs to take into account that these organizations are considered to be important to the community. However, this committee will have a strong influence on how the Council views the recommendations. He felt the committee should make its wishes known, with wisdom and validity. Councihnan -1- LODGING TAX ADVISORY COMMITTEE November 3, 1997 City Council Priorities Re. Lodging Tax Allocations (Cont'd) Campbell recalled that last year there was a reversal of some of the allocations recommended; however, in the final analysis, a small percentage was changed. The basic recommendstion remained in place. Councilman Campbell reiterated his opinion that this committee would have a strong voice with the Council. Chairman Wiggins added that most of the entities would need some kind of support, as they are not in a profit mode and may not exist without some type of assistance. Discussion followed, and Councilman Campbell responded to inquiries from committee members. To his knowledge, the Council did not have a list of priorities. In addition, the Council had not yet considered the proposal for an additional 2% tax, as Council members were awaiting a recommendation from this committee. Discussion centered arOlll1d Council's ongoing support of organizations and the fact that many of the organizations should become self-supporting. Jim Haguewood spoke in support of the committee considering longevity of funding before meeting with the various groups. Lodging Tax Advisory Committee Priorities 3. Lodging Tax Advisory Committee Priorities Bob Grattan opened the discussion by asking if the revenues from Vern Burton could go towards the bond, and Councilman Campbell noted it may be somewhat difficult to change the ordinance financing a bond. Steve Oliver suggested that the committee reach consensus on what hasn't worked in the past and marketing that hasn't been accomplished. He felt that the Parks & Recreation program has been most successful. Randy Johnson led a discussion pertinent to the Visitors Center and the Chamber of Commerce. He urged the group to first consider the current tax before turning to address the proposal for an additional 2%. Tim Smith suggested that the committee set a baseline for the summer months and then address an investtnent for the winter/shoulder months. John Platt emphasized the need to either increase revenues Of decrease expenses. He noted there were 3,500 rooms due to the Parks & Recreation programs. He suggested we consider participation in the entertainment book, improvement in marketing of the Vern Burton Center in order to fill beds during the week, and capitalizing on current marketing programs. Bob Grattan expressed the need to see as much direct marketing in Seattle and Portland as possible, with less marketing of Vern Burton. This led to discussion on the importance of having an overall marketing strategy, how to attract tourists, and the need to have activities for those tourists. Jim Haguewood summarized the concept of the Basecamp Port Angeles, which incorporates a multi-faceted approach into a cohesive plan. David Morris cautioned the group to not lose sight of the fact that the summer months are so very important to Port Angeles. He felt there was a need to assure repeat visits by those tourists frequenting the area in the summer months. Additional 2% Tax 4. Additional 2% Tax Chairman Wiggins introduced the possibility of investing additional tax funds into capital for facilities. He reviewed facilities he has visited, all of which appeared to have tremendous success. John Platt pointed out that people who cannot afford summer rates come to the area in the winter; we should give them something to do at a cheaper rate. He noted that a great deal of private money is spent in advertising to bring people to the area. If that money were co-mingled with tax funds and all of the private enterprises were involved, the "pot" of money would be expanded for the benefit of all. This concept led into discussion of other similar efforts in other parts of the country. and Bob Grattan summarized a similar effort in Whitefish, MT. The question was asked if such an effort would be County-wide. John Platt felt the focus should be placed on Port Angeles. Jim Haguewood urged the group to reach consensus on those programs that should receive funding, based on the priorities stated by the City Council. The question must be asked, - 2- Additional 2% Tax (Cont'd) Revised Grant Application Form LT AC Schedule LODGING TAX ADVISORY COMMITTEE November 3, 1997 therefore, as to how to prioritize the remainder of the funding. The focus must then be placed on the possible increase of 2%. Chairman Wiggins noted there won't be a lot of funding left to accomplish more than what has already been done. He viewed the additional tax as an opportunity to better and more fully market the area. Randy Johnson expressed the opinion that, whatever is agreed upon, there should be an effort made to monitor the results. Bob Harbick, reviewing cooperative efforts of local B & B's, felt such an effort to be private and not germane to tax ftmds. Bob Grattan suggested an effort with matching funds from the private entities, and Chairman Wiggins agreed this could be pursued, but there would probably be no benefits realized this season. Steve Oliver felt there could be a dedication of funds for 1998 for matching purposes for community-wide marketing. Tim Smith suggested incorporating the committee's priorities into the application and then determining how to fund the different areas. Once the level of funds remaining has been determined, the committee could then address the use of those funds, as well as the possible increase. Bob Harbick stressed the importance of the committee members being present at the City Council meeting when the recommendations are submitted. Bill Rinehart felt that any increase in the tax would have to be justified to the people in the industry and, in order to do that, there should be a specific plan in mind for the use of the additional tax. Discussion followed, and Steve Oliver queried as to whether people question the cost of the tax. Dick Vogel indicated that his customers are very interested in the level of the tax; John Platt reviewed a summary he conducted whereby those participating were overwhehningly opposed to an increase. If the customers were asked how they felt about an increase, he felt they would be opposed. People need to feel that they are getting their money's worth. After further discussion, it was agreed there is no consensus on this issue at the present time. Councilman Campbell supported the concept of ventilating this issue across the conununity. 5. Revised Grant Application Fonn The committee directed its attention to the draft application form. It was suggested that applicants answer the question as to how funding would help them become self-sufficient. In addition, the applicants should provide a "long-term prognosis". Tim Smith suggested a letter from this committee be included as to what is being sought this year and in future years. Any suggested additions or changes to the application format should be submitted to Tim. 6. LT AC Schedule In reviewing the proposed schedule, it was agreed the committee would reconvene at 1 :30 p.m., on Monday, December 1, to hear presentations from the requesting agencies. The committee would then meet again on Monday, December 8, to commence the formulation of funding allocations to be forwarded to the City Council for consideration. During the ensuing discussion, the question was raised as to whether the tax is adjustable and could, therefore, run from one date specific to another date specific. Staff is to follow up on this possibility. The tax could conceivably be higher in the summer and lower in the winter. There was not unanimous support of this concept by the conunittee members. Jim Haguewood generated discussion about the concept of a Basecamp Port Angeles and whether such a cohesive marketing theme should be pursued. It was pointed out that partnering public and private entities in such an effort could be very successfuL There needs to be a level of consistency in all marketing of the area. John Platt indicated that everyone has typically worked quite'independent of each other, and it may be difficult to - 3- LODGING TAX ADVISORY COMMITTEE November 3, 1997 L T AC Schedule (Cont'd) get everyone to set aside their own agendas. However, if commenced successfully in a smaller scale, he felt the effort would grow significantly. ADJOURNMENT: The meeting was adjourned at 4:50 p.m. .------- "/</ ~ " ~. ,', '''4.;:::; :7~'-"-- Glenn Wiggins, Chair -4, ~ t1Q;,~. l.);sh]^_ Becky 1. Upt Ci lerk