Laserfiche WebLink
<br /> A. Policy Statement re: Use of Room Tax and Auditorium/Convention Operating Surplus <br /> for Debt Retirement..,. The following policy statement was submitted for Council <br /> consideration: "In the event of the construction of the Auditorium/Convention <br /> . Center it is the policy of-;the city of Eugene that revenues received from the <br /> transient room, tax. will continue to. be allocated upon recommendation from the <br /> Transient Room Tax Allocation Committee in accordance with the purposes consistent <br /> with the City Charter. ,Unallocated revenues will be applied to operating deficits <br /> or for reducing the property tax required for debt service on the Auditorium/ <br /> Convention Center. Furthermore, ,in the event of operating surpluses ,from the <br /> facility, such surpluses will be similarly applied against debt service." <br /> Lee Bishop, president of Lane County Auditorium Association, commented on are- <br /> cent _meeting__with representatives of the Economic Development Adiministration. <br /> He said it ,is believed that the Center can be eligible for Federal funding and <br /> that course will be pursued. With regard to use of room tax funds, Mr. Bishop <br /> said the Association requests that 50% of the receipts be earmarked for the <br /> Auditorium/Convention Center. He said the request is based on the original con- <br /> cept of use of transient room tax funds for tourism and cultural activities, thus <br /> 50% w07.1ld be for the Chamber of Commerce in its tourism promotion. He said, <br /> priority in use of the funds so allocated to the Association would go first to <br /> any deficit which may oGcurin operation of the facility, including employment <br /> of a manager and staff and a study to determine impact of the Center on the <br /> downtown ar~Cl (traffic, air pollution, etc.). Second, the balance of the money <br /> . will be used for early bond retirement. ' <br /> M:c:s. ,Campbell pointed .out that, by the time the Center is. constructed and in <br /> operation additional funds ~ill have. accumulated from the room tax. <br /> Counqilman Williams .wondered whether the, Parks, Department anticipates requesting <br /> a portion of these funds. He said the funds primarily have been financing tourism <br /> and cultural activities but has not touched on recreational activities. Manager <br /> not.ed,a. couple ,of minor req.uests from Parks approved by the Allocation Committee. <br /> \ <br /> Councilman Hershner.said ,he did not recall any decision on allocating a fixed per- <br /> centage but rather had in mind,that a ceiling would be set on the percentage of <br /> the fund which would be allocated to the Auditorium. ,Mr., Mohr said his recol- <br /> lection was that i twas fel t if a fixed percentage of the funds was earmarked <br /> for the Auditorium, then the AllocationCollmrittee would not be continually faced <br /> with making a decision on how. to'distribute monies from the fund between the' <br /> Auditorium and other requests submitted. <br /> d, <br /> Mrs. Beal suggested waiting until after the, election to decide on how. the funds <br /> would be distributed in the event the bond issue is not approved. Mr. Bishop <br /> said the statement of. policy was requested for voter consideration when the bond <br /> issue is being .vot.edupon.' <br /> . Manager reviewed a cumulative report of the room. fund and allocations which <br /> indicates since its inception about 30% of the'revenues have not been allocated, <br /> this over and above that portion also given to the Auditorium Association. <br /> , <br /> Councilman Williams 'Said he was in 'favor of setting a fixed percentage to be <br /> distributed to the Center. He added that since the purpose of the tax originally <br /> was to support tourism, recreational, and cultural activities, it would seem <br /> logical to apportion one-third to each. That division, he said, would seem to <br /> fit in with the exi-sting numbers of unallocated funds and give at.tention to re-., <br /> creational type . activities ',also . <br /> MrS. Beal favored setting a fixed percentage, for the Center, even if only as a <br /> guideJ,ine. " She said, .there would be. recreational type. acti vi ties incLuded in the <br /> events taking'place at the Center, as well as cultural. Mrs. Campbell felt a <br /> higher percentage wouLd be necessary_ She said it will be ..the City!,s responsi- <br /> bility to operate ,the facility ,and in going to the voters .for approval of the <br /> bond' issue, a definite statement'should'bemade.' She added that i.t would be im- <br /> portant to have' the best management ,possible for the c0mplex'which would take a <br /> considerable amount of the money allocated. <br /> ,. <br /> . Mayor Anderson said he would not be opposed to setting some kind of ceiling, but <br /> he felt setting a fixed percentage would not allow the Allocation Collmrittee the <br /> flexibility necessary in the event another project appeared desirable in the <br /> - future. Mr. Hershner agreed, saying a ceiling to guide the Committee in making <br /> other',allocations ,would give leeway in. view 0f future unknowns,. ~ . , . <br /> ,2 83 <br /> 9/25/72 - 5 <br />