HomeMy WebLinkAbout02.12.2004 (2)• •
COUNCIL WORK SESSION
February 12, 2004
8:30 a.m.
Council Chambers
Members present: Mayor Hurley, Kincaid, Cole, Greenwood, Clark, Schmitt, Gunderson,
Welper.
Moved by Welper, seconded by Kincaid that the Agenda, as proposed, be approved. Ayes:
Seven. Motion carried.
The purpose of the work session was to discuss all the requests received from organizations for
the council's discretionary hotel/motel funds. Mayor Hurley reported that there is a current
balance of $73,312.37 in the hotel/motel tax discretionary fund. Mayor Hurley asked the council
to give due consideration of the Police Department's request for $25,000.00 based upon the
number of officers involved in quality of life events such as My Waterloo Days, Fireworks
Festival, Friday'loo, etc. Police Officers provide security, traffic control and a presence at these
events. Mayor Hurley reported the City of Cedar Rapids currently funds one officer using
hotel/motel tax funds, and he is going to request in the next budget that the council fund one
police officer using the discretionary hotel/motel tax funds or Convention & Visitor's Bureau
allocation of hotel/motel tax funds.
Police Chief Tom Jennings stated that Cedar Rapids does fund one police officer from
hotel/motel tax funds and probably will fund two officers next year for events held downtown.
Chief Jennings stated that the Police Department easily expends one officer's time policing these
events.
Councilperson Gunderson stated that with the election year and no money budgeted for security
for candidates, funding for these police officers comes out of the Police Department's budget.
Allocation of some discretionary funds would help the Police Department's budget.
Councilperson Welper stated that the hotel/motel taxes are divided up to the Conventions &
Visitor's allocation, the Five Sullivan Brothers Convention Center and the council's
discretionary funds. Councilperson Welper stated he feels there are people double dipping by
applying for Convention & Visitor's Bureau allocation and the discretionary funds.
Mayor Hurley stated the council does need to set up ground rules because currently we rely on
the city's ordinance and state code. There is no specific process for review of the applications.
Mayor Hurley stated that the Convention & Visitors Bureau has a lot of regulations they follow
when distributing hotel/motel funds.
Councilperson Welper suggested that the Convention & Visitors Bureau distribute all
hotel/motel funds, or the council could set up the rule that organizations can only request funding
from either the Convention & Visitors Bureau or the council's discretionary funds, not both.
Councilperson Clark stated he understands the need for an organization to have more than one
application when they have more than one event.
Michelle Weidner, Chief Financial Officer, reported that the city is required by city ordinance
and by state code to use the hotel/motel funds for tourism.
Mayor Hurley stated that the Convention & Visitors Bureau normally would have been receiving
applications by now, but they have not because they are waiting to hear from him as to what the
city would like them to do regarding the process. There have been discussions to build up the
funds, so that we are only allocating hotel/motel funds we have received, not funds we will
receive in the future. There have been discussions to build up the funds over a two-year period.
Mayor Hurley stated he has talked with Lou Cutwright, Building Official, to use some of the
funds normally allocated to the Five Sullivan Brothers Convention Center to help build up the
reserves so that in two years there would be $100,000 discretionary funds.
Council Work Session
February 12, 2004
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Councilperson Welper suggested that $50,000 of the discretionary funds be set aside to build up
the reserve funds, with $25,000 set aside for emergency/unexpected events.
Councilperson Schmitt stated he agrees with $25,000 set aside, leaving about $59,000 to disburse
to the organizations.
Billie Bailey, Director of Grout Museum, explained that the $20,000 awarded for FYE02 is
committed to the Sullivan Brothers project. Grout has not received the $20,000 because they
have not signed the contract. The $6,000 was awarded to Grout Museum in April 2003 to be
used for advertising campaign. There is no request outstanding for $7,000 for hotel/motel
discretionary funds.
Councilperson Greenwood stated he believes Reichert Pleasure Horse Celebration should apply
for hotel/motel funds through the Waterloo Convention & Visitors Bureau. Councilperson
Greenwood stated that the council's discretionary funds were to be used if a need arose where
just a little more funding could make or break an event. Councilperson Greenwood stated he
feels organizations should submit a total budget, and that a cap should be put on the amount the
organizations can request. Councilperson Greenwood stated he likes the idea of funding the
Police Department because it is an added expense when police officers are needed at events.
Councilperson Greenwood stated he feels those organizations requesting funds every year will
need to go somewhere else.
Mayor Hurley stated the application process needs to be examined and formalized, but there is a
need to allow some latitude because of emergencies. Mayor Hurley stated he believes the city
needs to allow equal room for our own departments, such as Police, Parks, Center For The Arts,
etc., because things they do are related to tourism. Mayor Hurley stated that the city will need
funds for the city's 150` birthday this year and the grand opening at the Waterloo Airport.
Councilperson Cole suggested that organizations be required to submit the entire budget for an
event. Councilperson Cole stated the process should be somewhere between the Convention &
Visitors Bureau process and the discretionary process.
Ms. Weidner stated she would like to have an application and budget on file. Ms. Weidner
cautioned the council not to put a cap on the requests.
The following allocations were discussed:
Waterloo Jaycees — 2004 Fireworks Festival $ 3,000
Waterloo Jaycees — 2004 Waterloo Open $ 8,000
Waterloo Youth Hockey Association $ 2,500
Waterloo Police Department $10,000
National Cattle Congress $18,000
Waterloo Community Playhouse $15,000
Folklife Festival $10,000
Reichert Pleasure Horse Celebration $ 5,000
Total $71,500
Councilperson Schmitt stated he has a problem with Reichert Pleasure Horse Celebration using
$35,000 to advertise the fact they are giving away $425,000 prize money. Mayor Hurley stated
the Reichert event is a block of 500 to 700 motel nights. Reichert is going to make a decision
whether to stay in Waterloo or go to St. Louis.
Councilperson Gunderson stated it is time for some of the events to stand on their own. The
Youth Hockey Association brings in a lot of people and they are only requesting $2,500.
Councilperson Cole stated her issue with Reichert is that the other events appeal to a much
broader section of the community and are accessible to many more people than the elite Reichert
event. Councilperson Cole stated she feels comfortable giving some money to promote the
Reichert Pleasure Horse Celebration.
Council Work Session
February 12, 2004
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Councilperson Greenwood stated he just wants to make sure we are inclusive of all the requests.
He would like solid number of dollars to give away and solid number of dollars to save.
The council discussed holding $50,000 of the $70,000 hotel/motel taxes expected in March for
the reserve fund and $20,000 for unexpected events or emergencies.
Councilperson Clark stated he agreed with the proposed funding, except for Reichert, and he
would be comfortable not allocating any funds to that event.
Councilperson Kincaid indicated he agreed with the proposed allocation of discretionary funds.
Councilperson Schmitt commented that he has a problem with allocating funds to the Reichert
event because of the number of heads on beds they bring in. Councilperson Schmitt suggested
that a better process be put in place, but for now he can live with the proposed allocation.
Moved by Welper, seconded by Clark that the proposed allocation of discretionary hotel/motel
funds be placed on the February 16, 2004 council agenda. Ayes: Seven. Motion carried.
With no further business before the council, it was moved by Greenwood, seconded by Schmitt
that the meeting be adjourned at 9:30 a.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk