03/14/1983 Meeting (2) - Laserfiche WebLink

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e - - services or commodities with the funds. Ms. Wooten felt that since Mr. Hartnett's presentation to the council had been made in July 1982, material regarding the bureau's work plan should have been re-distributed to councilors in anticipation of tonight's hearing. Councilor Lindberg asked what the room tax rates were in market areas with which Eugene was competing. Mr. Lonstrom said that rates in Portland, Eugene's primary competitor, are six percent and that Portland's total budget for tourist and convention promotion is nearly $900,000. Mr. Lindberg asked if the sales tax proposals being considered in the State Legislature included taxing hotels and motels. Dale Munkres, Valley River Inn, said that in other states the room tax is separate from the sales tax, and the sales tax is not applied to rooms. He said that the Oregon bills were atypical in proposing that both taxes be applied. Councilor Wooten said she had served on the Room Tax Committee since 1981. She said she supported the one-percent increase but had serious reservations regarding the allocation of the funds. She said that while she appreciated the work of the Convention and Visitors' Bureau, she felt the City also had obligations to other destination-point activities, such as the Hu1t Center and local performing arts groups. Councilor Smith said that at its March 9, 1983, meeting the Room Tax Committee had reached consensus that allocating the additional one percent to the Con- vention and Visitors' Bureau would generate more revenue for performing arts groups and had therefore supported the ordinance and resolution. Councilor Lindberg noted that at a work session prior to tonight's meeting the council discussed comprehensive financial planning for the arts. He felt that if the additional one percent were divided among a number of groups, it would not have as much impact as providing the full amount to the bureau to use in promotional efforts that would in turn generate more Room Tax revenues. Councilor Schue concurred with Mr. Lindberg. Councilor Wooten urged that the allocation of the additional one percent be reviewed annually. Mayor Keller asked council support for the increase proposal. He concurred with Ms. Wooten's suggestion of an annual review of the allocation. Councilor Smith said that the ordinance as written calls for review to be done by the Room Tax Committee. She felt that this was the appropriate body to conduct the review and then to make a report to the City Council. Councilor Ball supported the increase but suggested that the City wait until the County takes action before deciding on the allocation. He felt that an increase larger than one percent should be considered. Mayor Keller responded that the industry had agreed to support the one-percent increase and that he felt it would not be advisable to change that amount at this time. Councilor Smith concurred with Mayor Keller's remarks. Councilor Wooten referred to the deficit in the Hu1t Center budget and noted that some of the funds from the one-percent increase could be used to offset the need for using General Funds or other City funds to cover that deficit. MINUTES--Eugene City Council March 14, 1983 Page 3