HomeMy WebLinkAboutItem 2 Room Tax Allocations for Fiscal Year 2007-08
AGENDA ITEM SUMMARY
Meeting Date:
Meeting Type:
Department:
Staff Contact:
Staff Phone No:
Estimated Time:
March 26, 2007
Work Session #
CMO
John Tamulonis
726-3656
15 Minutes
SPRINGFIELD CITY COUNCIL
ITEM TITLE:
ACTIONS
REQUESTED:
ISSUE
STATEMENT:
ATTACHMENTS:
DISCUSSIONI
FINANCIAL
IMPACT:
ROOM TAX ALLOCATIONS FOR FISCAL YEAR 2007-08
Discuss and provide staff with Council direction regarding possible
allocations of recent and anticipated increased Transient Room Tax
(TRT) for the coming fiscal year.
Among the many choices for Council are the following:
. Do nothing
· Have staff set up a formal process for distribution of funds
· Make decisions based on requests known at this time
With a hotel industry rebound, the City's portion of Transient Room
Taxes increased over 20% last fiscal year and over 8% so far this fiscal
year, but the conservative estimate for FY08 of Tourism Promotion
Reserves is $64,177 (see Attachment 1). These will likely grow with
construction of the new Gateway Holiday Inn. Some Room Tax funds
will likely be available for local projects as in the past. Several
organizations have requested Room Tax funds, examples are in
Attachments 2 (summary) and Attachments 3 and 4.
Staff is seeking Council's views of the projected use of funds to
1. Re-establishing prudent reserves,
2. Adjustments for annual cost increases;
3. Re-establishing a process for allocating Room Tax funds, or
4. Allocating funds through timely challenge grants to preserve major
tourism facilities and investments before deterioration increases costs,
restarting delayed activities and projects, and adding flexibility for
small, unanticipated projects.
1. Transient Room Tax Fund FY07 and Proposed FY08
2. Actual and Anticipated Requests for Room Tax Funding
3. January 29, 2007 Letter from Springfield Arts Commission
4. March 16, 2007 Letter from Springfield Museum Board
Attachment 2 indicates possible list of projects and opportunities that
Council could use to prioritize and target funds as they become
available next fiscal year. At this time, an estimated $64,000 would be
available for activities and projects like those on Attachment 2. Note
that the last Hayward Field payment of $15,000 is July 2008, and these
additional funds will be available annually thereafter. Commitments to
the 2008 Olympic Trials are included in the City Manager's Economic
Development budget.
TRANSIENT ROOM TAX FUND
FY07 Year End and ProposingFY08
SB#1 Est Actuals . Proposed
Description EYD1 EYll1 EYn8
REVENUES
Transient Room Tax 657,975 735,300 761,560
Staff Reimbursement 0 0 0
Interest Income 2,350 3,000 3,000
Misc Receipts 0 0 0
Beginning Cash Balance 44,182 44,182 30,618
TOTAL REVENUE 704,507 782,482 795,178
EXPENSES
City Manager's Econ Dev'lp
Personal Services 67,608 67,608 68,076
Material & Services 57,419 57,419 57,426
TOTAL 125,027 125,027 125,502
Council Intergovernmental
Material & Services 69,440 69,440 70,000
Library Youth Services
Personal Services 38,940 38,940 32,340
Art Alley 1,072 1,072 500
Arts Commission 7,566 7,566 5,000
Other M&S 558 558 564
Statue Fund 0 0 0
TOTAL 48,136 48,136 38,404
PW Special Projects
Personal Services 21,685 21,685 22,636
Material & Services 4,720 4,720 5,245
TOTAL 26,405 26,405 27,881
DSD Community Dev'lp/Services
Personal Services 9,840 9,840 9,888
Material & Services 523 523 543
TOTAL 10,363 10,363 10,431
DSD Urban Planning
Personal Services 0 0 0
Material & Services 6,243 6,243
TOTAL 6,243 6,243 0
DSD Community Planning & Revitialization
Personal Services 33,368 33,368 35,694
Material & Services 0 0 0
TOTAL 33,368 33,368 35,694
Non-Departmental
XFR to Fund 100 385,493 432,882
XFR to 713 0 0
Tourism Promotion Reserve 32 0
FUND TOTAL 704,507 751,864
Surplus(Deficit)
Changes
A TT ACflMENT 1
Attachment 2:
Actual & Anticipated Requests for Room Tax Funding
POSSIBLE ACTIVITY
Potential New Amount
A. One-Time Administrative Costs
1. Re-establish Room Tax Reserve Account
-Could cover unusual 'start-of-year' fluctuations in revenues
$10,000
B. Requested Increases in Annual Funding
1. Arts Commission increase from $5000 to $7500 annually
. Current annual allocation same since 1986
$ 2,500
2. Art Mural Maintenance increase from $500 to $2000 annually
. Lucky so far repairs have been infrequent and small
. 12 murals are aging and repairs costly
$ 1,500
C. Challenae Grants for Potential for Tourism & Tourism Maintenance Proiects
In the past, the Council has approved 'challenge grants' to organizations that would
need to demonstrate through documentation the community's commitment to each
project through cash and in-kind donations before funds 'up to' a specified amount are
provided through Room Taxes. Here's a brief list of recent tourism related requests.
1. Re-establish Heritage Art Proiect for the Arts Commission
. Established in 1990s for mural/sculpture
. Funds used to pay other commitments post-911
$7,500
2. Springfield Museum Preservation and Presentation Resource Center
. Archival protection and access to historicalcol.lection
$15,000
3. Maior Historic Sprinofield Depot Repairs
a. Replace deteriorating wooden rails along roof crests ($4,000)
. One runs East/West and other North/South
b. Repair/replace four 24-year old heat pumps ($30,000)
.c. Repair & treat wood for insecUant problems ($2,000)
d. Repaint building exterior (last done in 1990) ($17,000)
e. Paint railcar ($2,000)
f. Refinish Freight Room floor ($2,000)
g. Repaint inside offices and public areas ($3,000)
$30,000
The Chamber and Depot Foundation has already painted the rail car a couple of times;
replaced the hot water heater, blinds, and carpeting in the public area; and replaced
plumbing units in rest rooms and maintains them.
4. Minor opportunities to enhance tourism $4,000
· Intermittent tourism opportunities arise annually without funds
· Limited funds are available for advertising, maps, etc.
D. Re-establish Tourism Grant Process to allocate Room Tax Funds
· Ask community for proposals for Council review and allocation
· Process would take several months to develop, advertise, and complete.
A TT ACf.lMENT 2
225 FIFTH STREET
SPRINGFIELD, OR 97477
(541) 726-3767
FAX (541) 726-3747
Springfield Arts Commission
To: Mayor Sid Leiken and City Manager Gino Grimaldi
City Councilor Christine Lundberg, Chair
City Councilor John Woodrow, SAC
Springfield City Council
January 29, 2007
The Springfield Arts Commission understands there is a projected rise in room-tax revenue. We therefore
ask you to consider our request for increases in our funding. We allocate our money to the following three
areas:
1. Art Alley Acquisition:
We request the $7500 be reinstated into the SAC budget, as a line item. This .will allow us
to once again commission art for the Community, furthering the downtown project of revitilization and
beautification. Examples might indude murals and/or sculpture celebrating the 2008 Olympic Trials and
the 2009 opening of the Justice Center.
2. Operating Funds
We request a raise in our annual budget to $7500, from the current $5000, because our
budget has not been increased since 1986, even to keep up with inflation. Our funds pay for all of our
programs: The Springfield Mayor's Art Show, Youth Arts Workshops for 4th to 8th graders, Heritage Arts
Grants given to local groups for arts related projects, which this year indude Emerald Art Center,
Springfield Museum, Westwind Flute Choir, Springfield Community Chorus, the MlK Celebration and the
Springfield Library Youth Services summer reading program. We also offer fiinandal support and
volunteer help to the annual Springfield Library Puppet Festival, a month-long event unique to the
Northwest.
3. Art Alley Maintenance
We request an annual fund of $2000, (the 2006 cost to dean and recoat the Oregon Trail
Mural with Vandlguard was $1750), as a line item, to maintain the integrity of the existing Art Alley pieces.
It is imperative to keep these works in top condition as they are an irreplaceable heritage for Springfield's
future.
~~ ~,~W -~f~
indele-Cupples, Arts Commission Staff
Carol Plaia
~(). 00~
Robert Winkelman
A TT ACf. [MENT 3
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SPRINGFIELD
MUSEUM
S P R IN G FIE L 0 MUS E U M
"
, March 16, 2007
,
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. city of Springfield
John Tamulonis.&Bill.Grile '.
225 Fifth Street "^
Springfield, OR 97477.
DearJohn and' Bill,
The City of SpringfleldO\vns the ph~sical reminders~fthe City's rich legacy: .from'
Freedom Train phptographs to the Nation'sChri'stmas tree cutting~, from early Booth'
Kelly books to memorabilia of B.J. and the Brpiler Festival. The City.~lso owns . items'
, . tha~ speak to its: future, its vision, and its dream~.' , - " . ." . ~, ,'" " ,
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The Springfield Museum is entrusted with the significant civic' du~y 'of ~aking sure those '
items from the past live on and that the contem.porary items, it takes in some day add to
, the collection of Springfield's plentiful. past. This preservation, of its holdings is a
contractual obligation of the, Museum, but there's ,an iinplicit mor.alresponsibility to
p~oteCt and present 'these items, fQr future generations .,...' future .geri~rations~ho will
marveL at the quaint colhirbox from the turn of the ,century in the sa?1e ,way they view the
. opening night evenfprogram 'for the Wildish T~eater., ',: . '._ .' '"
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I~ order to'c~rry o~tthi~missio~, the Museum is req~~sting an ad.d.itional$15: thous~nd in
" roonl' tax funding^~o that it may begin to address the extremely pressingrieed to
adequately care for the .collection. Simply put, if we can'tpioperly protect and store these
items, we. can, not ensure. their'longevity; immediately' at ris~ are historical: accounts
stored on fil~,s1ide and cassette tape. . ,..... , . . . '. .
''''he request,ed.'$15 thousan4in'supplemental funding would act as seed money for the
. constructiop ofa Preseivatipn ~d Presentation Resource Center. This project is designed
, not. only to' make sure' the collection. is aichivallyprotect~d (proper' storage, adequate
.. environinentalcon,trols, etc), butthat it also: is made available to a much' broader
community,' and'by eXte~siori the.region, by way. of a'''ha'nds-on''.resour~e center. This
. , .center would feature a multi-media study area available :to '~cholars, :stl:ldents; . media,
. genealogy researchers and the generally curious, which would ,highlight the Museum's "
~oldings. .The iriitlal planning 'and dialogue 'with an areaarchitectto envision 'this project.
,is efIicientlyandeffectivelyd~signed 'is currently underway.
. .
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ATTACHMENT 4 - PAGE 1
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590 MAINSTREET. SPRINGFIELD, OREGON ,97477, ,Il (541)726-3677, Q 'FAX (541)726-36~8
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ATTACHMENT 4 - PAGE 2
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