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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 f i: :/,1 ~~ ~~Inl ....~. 1'~i,'I'.'1 . . r"::1 '~I I I I ~ SPRINGFIELD MUSEUM S P R IN G FIE L 0 MUS E U M " , March 16, 2007 , .. , . 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~.' , - " . ." . ~, ,'" " , , .',,' '.'. .' " ' "', , :' ' . ,', . - 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., ',: . '._ .' '" . . ,', ," " ' , , , ' 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. . . -.- - --,-- - ----~ ~ ~ ~ \'.: ATTACHMENT 4 - PAGE 1 ". c-. __ ~ _.'\ n 590 MAINSTREET. SPRINGFIELD, OREGON ,97477, ,Il (541)726-3677, Q 'FAX (541)726-36~8 . . -, ' "", ,', I . . ',-" I <,:, ,-, ., '~ " ~. . ,.1./ ,. ". " . " . , , .1'- .'. .... ,1." .(. ',' '. , " ':., ":r' ~,\ .' .;., \:- - " . '." ,J .1 ..' ,..;;". 0, \' "'P, , ,', \,' " ~ ';' ,; ./ 'J' , . ~., . , , \ ~ i' ;~ J I:.. .);1' " . With s~~~ htone;)~l pl~c~~ ~p~~riity:.ari~~'s f<?r'ch~lleng~ ~dJormatchitiggfai1tsp-oIIl' '. federal'and state resources. Tlie'Mus'eum:Board. and 'its' DirecforWillalso se~k monies' ,~otnprivate::cOntributionsan9JI1~kiri~ .sefVice~:to '~nsur~, adequate ~Qdingis in p~ace to accommodate anticipated growth.: .,.... .\ ,,' '" ',,",.0- :... '. '," '/'~' .'" ~ ' . . < . ~'~ ~: I: ,. . A . ,'. " ':The:'Museurll, -respectfully,'submits'this' .' ~conslderatiori:: " . .". "", '. ,. '. , \. '. } .', -' . . i' " ,:' , . _', .' re~uesf'ap.d'is: 'grafeful'{o,fhe,'C!ty, (or.. its .: \ . '. '~ " "~I i \or I,' ~ . ,.., '" , Jac . s~h~i, -Vi ,;.:pr~~id~nt SPrin~field M~seu~ ~o~d /C?J;,,"'d: '.. ;, ~,~6.,l Da~id Staton;.SPririgfield,~useum bit " ."_ I ':-'-. '-) " r", ;, ?, ",", " ,. ~ 'I' . \ . " )''; ;\' , ~ '" "-. ." >. ,", ' ',: I" " ,J." <, ,> . ", '-;t. I, .' .', , " ,'.'. : ~ ',. , ,. " ." " . ".- ' '. !) ... ,":-;" -;.'. " ~' ," ..' ,.' ~ . ," r, ':~" I '. .\ ~ \ '" ~ ',; ; "I, ',. f" ," l \ ': '.:,' ,,- , --' , /. '.. ~ .', ,'. .) , '>:'.., .; ,; ~ .' . , -(' ....,.,. '\ ,r' , :- ,~ \, r , "'- ,., ~ ,'. , ~ '<, 'r; . :' ~ ''":' i " . 'I ,.. , ,i. ) \; ~ ,~, ','{', -\ ,'" ".\' :'~ ~^ , . ) ,- \ -IJ I' :", ,,". ','~ ',',' , .' , ., . .:....~-_~.--'..':~_c...:.L~ _L>----.:_'~~_.._ :.: ___,:...._.'-_'_ \'_---,-_ ... ";' \,':" ATTACHMENT 4 - PAGE 2 '," , '.{~' ~ ,,' ... " . :" lr '~. ' , ~ ' . ". " ~ , ./', , :. . ~ I' l, " . I:" ,'v/i., . ~I . , . ~( .