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HomeMy WebLinkAbout08/24/92CITY COUNCIL WORK SESSION August 24, 1992 4:30 p.m. Large Conference Room Members present: Mayor Manning, Fox, Angel, Wright, Budak, Lemke. Members absent: Dell, Buck. The purpose of the meeting was to discuss a proposed resolution calling for an election on the question of whether the City should increase its hotel/motel tax from 5 percent to 7 percent. Mayor Manning noted that the current 5 percent tax is used to fund the Tourism Bureau at the Chamber of Commerce, with the remaining monies used to retire the debt on the construction of the Five Sullivan Brothers Convention Center. The Mayor recommended that the additional money could be used for a variety of purposes, including: 1) funding current tourism items in the City's general fund budget, 2) funneling additional monies to the Convention & Visitor's Bureau, or 3) creating a match to attract state and federal funding for the Cedar Valley Chain of Lakes program. He stated that it is not necessary for the Council to make a decision on the exact uses of the money, but should decide if the issue should be placed on the ballot on November 3, 1992. A citizens' committee will continue to meet between now and the election to determine specific priorities and uses of the additional money. This information will be provided to voters in a timely fashion. Larry P. Burger, Clerk/Auditor, noted that the last payment on the construction of the Civic Center is due in the fall 1992 in the amount of approximately $500,000. In addition, the City utilizes its current hotel/motel tax money to fund the Convention & Visitor's Bureau with a cap of $210,000 per year. Tourism activities currently funded out of the general fund which could be shifted to the hotel/motel tax fund include: subsidies to the Waterloo Community Playhouse, Grout Museum, Municipal Band, Cedar Valley Lakes and various activities of the Parks and Recreation Commissions. Councilperson Angel suggested using the additional money for defraying the cost of police officers during parade events. It would be the Council's decision on what items remain a part of the general fund tax levy or funded through the hotel/motel tax. Don Temeyer, Planning and Development Director, reported that additional money to the Cedar Valley Lakes would be used for many activities, including providing access, picnic facilities, restrooms, development of bike trails, acquisition of additional property and various other recreational facilities. There is no steady funding mechanism available to the lakes project and federal and state monies have been drastically cut to develop this major recreational facility. Councilperson Fox stated that he agreed with Councilperson Angel's statement that the City should consider putting the additional monies to other tourist attractions in the City. Mr. Burger also suggested that the City consider utilizing $60,000 to $80,000 per year of additional revenues to establish an ongoing maintenance fund at the Five Sullivan Brothers Convention Center. Mr. Burger also noted that a customer does not pay the 1 percent local option sales tax on a bill in addition to the hotel/motel tax. Regardless of the final decision on the use of the hotel/motel tax proceeds, it would be necessary to educate the electorate prior to November 3. No official action was taken at this time. A resolution calling for an election will be discussed at the regular meeting of the Waterloo City Council of August 24, 1992. With no further business before the Council, the meeting was adjourned at 5:05 p.m. Larry P. Burger City Clerk/Auditor CITY COUNCIL WORK SESSION August 24,_ 1992 5:00 p.m. Large Conference Room Members present: Mayor Manning, Dell, Fox, Angel, Wright, Budak, Lemke. Members absent: Buck. The purpose of the meeting was to discuss efforts of the Waterloo Recreation & Arts Commission, the metro ice users and the Waterloo Black Hawks in planning a new ice arena. Interested persons, including Tom Varney, Mike Brown, Clyde Thomas, Liz Petersen, Pam Klima, Scott Brand, Rita Swanson, Tom Reardon and Dave Tyler, were introduced. The purpose of the meeting was to solicit input from the Council and provide a direction on pursuing this facility, including site selection and cost. Tom Reardon, Assistant Recreation Director, identified the ice arena needs, which include appropriate size, adequate parking, expansion potential, access, accessible utilities, Olympic size sheet of ice, seating for 3,000 people, adequate locker rooms, equipment storage, concession area, zamboni storage, and public restrooms. A projected cost analysis with various levels of funding and debt service was reviewed. The ice users have pledged $200,000 to the facility per year for three years. It was noted that the City currently subsidizes the ice operation at a cost of $81,000 per year. If the City were to continue subsidizing the operation at this level and projecting an operating profit of $65,000, this combined amount would service an arena cost of somewhere between $2 million and $2.5 million. Seven sites have been reviewed in the metro area for the location of the facility. Some were located in urban renewal areas. Each area must be evaluated in terms of cost for site preparation and availability of services. Councilperson Dell questioned why this issue would not go to a public referendum. Larry P. Burger, Clerk/Auditor, noted that this issue would be subject to a reverse referendum if the site was within an urban renewal area. It was noted that there is growing enthusiasm in the community for hockey, and that the commitment to raise $600,000 of private donations is an indication of that commitment. Dave Tyler, President of the U.S. Hockey League, noted that hockey has not typically been a sport accessible to all segments of the community; however, with the growing popularity of rollerblades, this facility could be used year round. If a final plan is presented to the Mayor and Council within 60 days, a new ice facility for 1993 could be possible. Councilperson Fox reiterated his support of ice but cautioned that the operating revenue must be sufficient to cover expenses so that the City would not have to subsidize the operation of the facility through taxation. He also questioned how expenditures of funds for this facility ties in with improvements at Municipal Stadium. Councilperson Dell stated that we must prepare a long-range plan- to improve all recreational facilities in the community and make a commitment like the City has made a commitment to improving the transportation system. It was noted that there is an urgency to this situation in that the condition of the ice at McElroy is in a very precarious position. It was agreed that the supporters of this facility continue their work to formalize plans for an ice arena and present a final plan to the Mayor and Council within 60 days. No official action was taken by the Council at this Work Session. With no further businessbefore the Council, the meeting was adjourned at 6:10 p.m. Larry P. Burger City Clerk/Auditor