HomeMy WebLinkAboutCity Council Committees - Lodging Tax Advisory Committee - 11/09/1998 LODGING TAX ADVISORY COMMITTEE MEETING
MINUTES
November 9, 1998
The regular meeting of the Lodging Tax Advisory Committee was called to order at 1:30 p.m. by
Chair, Judy Woods. Other committee members present: Linda Johnson, Carol Vass, James Begin,
Don Campbell, and Tom Inman and Scott Brown. Staff Present: City of Kent Director of Operations,
Brent McFall
Approval of Meeting Minutes for October 22, 1998:
Minutes for the October 22, meeting were approved as amended. Change all notations of the
Performing Arts Center to say Civic & Performing Arts Center(three places).
Review Draft Proposal for Allocation of Lodging Tax Proceeds:
McFall explained the original revenue estimate for a 1% Lodging Tax was $223,818 based upon staff
estimates for number of rooms in the city, average daily occupancy rates, and average room rates.
Begin presented his own analysis of estimated revenue based upon information from the hotel
industry and his own knowledge of lodging business conditions in the city. His analysis resulted in a
revenue estimate of $175,250. After some discussion, the committee agreed to use an estimate of
$175,250 for revenue that would be generated by a 1% Lodging Tax in Kent.
The committee then discussed how proceeds of such a lodging tax should be utilized to comply with
statutory requirements. The committee reviewed a draft that was proposed by McFall which utilized
funds to make debt payments on bonds sold to purchase land for a Civic and Performing Arts Center,
pay for promotional materials, and provide support for marketing activities of the city's Economic
Development Specialist. Considerable discussion of this proposal and variations of the proposal
ensued. The committee decided that proceeds of a 1% Lodging Tax should be utilized as follows:
➢ Land acquisition for the Civic and Performing Arts Center $85,000
This assumes payment of principle and interest on a bond issue of$1 million for 20 years.
➢ Tourism Development—Contracts for Services $50,000
➢ Reserves for contingencies and fund balance $40,250
Contracts for tourism development services could be with any number of different organizations, as
the committee developed a work plan for tourism development activity. The Kent Chamber of
Commerce was specifically mentioned as a possible contractor. Begin agreed to contact the
Chamber Executive Director to determine the level of interest that the Chamber might have.
Reserves were thought to be important given the uncertainty of the exact amount of revenue that
might be collected from the tax, and the need to further develop a work program.
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Motion and Recommendation to City Council
It was moved by Campbell, seconded by Vass that the Lodging Tax Advisory Committee recommend
to the City Council that a Lodging Tax of 1% be levied in the City of Kent. And, that the City Council
impose such tax at its earliest opportunity, under its authority authorized by RCW 67.28.181. Tax
revenues to be received should be pledged to capital improvement bonds for acquisition of property,
tourism development activities, contingencies and reserves in accordance with legal requirements and
committee recommendations. The motion was approved unanimously.
The proposed use of funds for 1999 is as follows:
➢ Land Acquisition for Civic and Performing Arts Center $85,000
➢ Tourism Development—Contracts for Services $50,000
➢ Reserve for Contingencies and Fund Balance $40,250
The committee asked that this matter be forward to the Council's Operations Committee at its
December 1, 1998 meeting, and that Council consideration be scheduled for as soon thereafter as
possible.
Establish Regular Times for Future Meetings:
The committee agreed to meet quarterly beginning in early April.
Admournment:
Judy Woods thanked everyone for their enthusiasm and the meeting adjourned at 4:05 p.m.
Next Meetina:
All agreed to hold the next meeting at 7:30 a.m. on Monday, November 23, at Mitzels.
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AGENDA
LODGING TAX ADVISORY COMMITTEE
NOVEMBER 9, 1998
2:00 PM
I. Call to Order
II. Approval of Minutes of meeting of October 22, 1998
III. Review draft proposal for allocation of lodging tax proceeds
IV. Recommendation to City Council regarding lodging tax
V. Establish regular times for future meetings
VI. Adjourn