HomeMy WebLinkAbout10-07-03 Finance Com Minutes -Hotel-Motel Tax GrantsDublin City Council
Finance Committee
Tuesday, October 7, 2003
Attending:
Ms. Chinnici-Zuercher, Chair
Mr. Kranstuber
Mr. Lecklider
Ms. Gibson, Director of Taxation
Ms. Puskarcik, Director of Community Relations
Ms. Chinnici-Zuercher called the meeting to order at 6:10 p.m., noting that tonighYs meeting has
been scheduled to discuss the hotel/motel tax grant applications for 2004.
Mr. Kranstuber noted that he talked with Ms. Grigsby today regarding the limited funds available
for hoteUmotel tax grants for 2004. He is not supportive of making additional appropriations for
these grants for a variety of reasons, including living within the budget, and he spoke with other
Council Members today who are in agreement. In many cases, the "grants" constitute writing a
check to the City, as the request is for City services, i.e., Police, Streets, etc. Perhaps Council could
instead waive the fees for City services.
Ms. Gibson stated that the fees would then have to be paid out of the regular City budget, as there
are labor costs associated with such fees, i.e., special duty officers, etc. When grants are given, the
organization writes the check to the City for the services and the sponsor of the event is reimbursed
from the hoteUmotel tax fund.
Ms. Chinnici-Zuercher stated that in Columbus, her organization sponsored an event and was
responsible for hiring and paying for the special duty officers required. It is not the responsibility of
the City to pay back the organization for that cost - it is part of the costs of the special event. It has
been a policy to use the hotel/motel tax funds for this purpose, but now that the funds are more
limited, it may have to be changed. Personally, she doesn't believe that it is the City's
responsibility to pay these costs.
Mr. Kranstuber noted that the Dublin Arts Council application for funding for the public art project
is not included in the list to be reviewed tonight. He asked why that is the case.
Ms. Gibson stated that the funding of the DAC art projects has always been reviewed directly by
Council, not within the hotel/motel tax grant application process. In addition, the request greatly
exceeded any available funds from hotel/motel tax revenues.
Mr. Kranstuber stated that he understood that when the funding structure was changed to 25 percent
of hoteUmotel tax, part of the arrangement was that the future public art project funding would
come out of this 25 percent. Why is this application being brought forward by the DAC? He didn't
believe there would be a supplemental application. Is the DAC having budget problems?
Ms. Gibson stated that the application was submitted to staff. She can research the background on
their funding arrangement.
Mr. Kranstuber stated that he doesn't recall that the public art funding would be any separate item
considered directly by Council, but rather, it would come from the 25 percent allocation of
hotel/motel taxes each year. This needs to be researched. The deal was that the public art funding
would come out of their budget.
Finance Committee
October 7, 2003
Page 2
Ms. Chinnici-Zuercher noted that she and Ms. Grigsby were given background information from the
files regarding the funding arrangement for the DAC, and this is accurate.
Mr. Lecklider noted that as Ms. Grigsby has pointed out, for the Charity Cup application, it
essentially constitutes subsidizing their organization's contribution to charity. The Charity Cup
generated $29,000 according to the information, although they are seeking at $10,000 subsidy from
the City in order to make this contribution to charity.
Mr. Kranstuber stated that the Frog Jump, on the other hand, has a long history in Dublin and the
amount requested is fairly small.
Mr. Lecklider stated that on the other hand, some of these events use substantial numbers of hotel
rooms and this may influence their decision of whether to come to Dublin.
Ms. Chinnici-Zuercher suggested that the Committee proceed with hearing the applications.
She noted that she will inform the applicants of the funds available in 2004 at the outset and let
them know that they will need to seek alternate sources of funding.
Ms. Chinnici-Zuercher noted that, traditionally, there have been more funds available in previous
years than this year for hotel/motel tax grants. In fact, virtually no monies are available for grants
from this fund due to the impacts of the 9-11 event and economy on the hoteUmotel tax revenues.
At this point, the Committee wants to give each applicant an opportunity to present their request,
provide a brief history of the event. She noted that a decision on grants will not be made tonight, as
additional investigation is needed regarding various issues related to the financial circumstances.
At this point, because of the financial circumstance, she emphasized that the organizations should
not depend upon receiving grant monies from this fund in 2004. They should plan their events
accordingly and seek alternate sources of funding. The Committee will have a recommendation to
Council and decision within 30 days. In the meantime, they should proceed on the assumption that
there are no grant monies available from this source in 2004.
Antique Auto Club of America
Mr. Leyndecker, Lithopolis, Ohio represented the club. The club was formed in 1935, and the
Central Ohio chapter of the region was formed in 1958. This is the chapter hosting the show. The
show has not been held in Dublin previously. In 1959, there was a tour in this vicinity, but none
since that time. They are
Mr. Lecklider stated
Finance Committee
October 7, 2003
Page 3
Mr. Cohn stated that they are seeking financial assistance for the F.C. Soccer Tournament. The
tournament has been in existence since 1999 and injects an enormous amount of funds into the City,
mainly through the large number of visitors, participants, who stay in the City's hotels. There is
also financial spillover into area businesses during their visit. The DCVB has indicated that the
financial impact to the City with respect to the Tournament in 2001 was over $1.2 million; in 2000
was $944,000; and in 1999, was $722,000. Teams seeking a higher level of competition are
attracted from a 12-state area. They have filled every hotel in the City of Dublin, and many in the
surrounding area. The event is labor intensive, requiring certified referees -many come from out of
state and require hotel rooms. These are fixed costs to operate the Tournament. There are field
preparation and rental costs for additional fields. Typically, they use Soccer First, Avery Park and
Darree Fields, with minor spillover at Coffman High School. This year, they have also secured land
at Pharmacia and at 5150 Blazer Parkway for additional field space. Parking spaces for these areas
were also secured, plus portable restrooms. Through this application, they are seeking a grant of
$25,000 to help cover the costs associated with the Tournament.
Mr. Hill explained that teams are participating from 12 states, with 278 teams operating on five
venues, all in Dublin. They will be conducting 451 games in 2-1/2 days for 5400 participants -
players and coaches. Total attendance is estimated at 13,400 people this weekend, and estimated
economic impact since 1999 through this year is approximately $2 million.
Mr. Kranstuber noted that the numbers from 1999 through 2001 indicate a 30 percent growth factor
per year. Has any thought been given to limiting the size of the event, due to limitations of venues?
Mr. Hill responded that the limiting factors for growth are field availability and referees.
Mr. Kranstuber asked how participants are encouraged to stay at Dublin hotels.
Mr. Hill responded that the first hotel information provided is for Dublin area hotels. Once the
block is saturated, the DCVB works with them to access the broader Columbus market.
Mr. Cohn noted that the web site lists only the Dublin hotels until those are filled.
Mr. Kranstuber stated that one consideration for the Committee is that this event is held in April, a
time when hotel rooms are not filled with other events such as during the Dublin Irish Festival or
CABA Tournament.
Mr. Kranstuber asked how the group arrived at the figure being requested from the City, and have
they requested bed tax funds previously.
Mr. Hill stated that this is their first application for funds in Dublin. They were encouraged to apply
for funding by the DCVB, who made them aware of this funding source.
At this point, Ms. Puskarcik arrived.
Finance Committee
October 7, 2003
Page 4
Mr. Lecklider noted that the materials reference Ms. Huffman as working for the Chamber of
Commerce instead of the Dublin Convention & Visitors Bureau. This correction should be made.
He noted that the membership fee revenues are considerably less this year than in previous years.
He asked for clarification.
Mr. Hill responded that a merger occurred of several clubs and so there was a peak and then a
leveling off of membership fees.
Mr. Lecklider asked for an estimate of their total budget for this year for the Tournament.
Mr. Hill responded that the budget is totally based on the number of participants. Revenues from
entry fees are estimated at $85,000; there are other revenue streams from merchandise sales and
concessions. They expect to clear approximately $20-25,000. It is all based upon many variables.
The weather has resulted in the need for extensive field prep. When they ask for additional prep
beyond the normal cutting schedule, they have to pay the City for these services.
Mr. Cohn stated that the referee costs are approximately $30,000 due to the additional fields being
used.
Mr. Hill stated that field fixed expenses are $10,000; City services are estimated at $3-5,000. The
total of fixed expenses for the Tournament are approximately $45,000.
Ms. Puskarcik stated that she will meet with the applicants to finalize arrangements tomorrow.
Mr. Kranstuber noted that the Committee will make recommendation to Council, and Council will
then vote on the recommendation at tonight's meeting. He asked the applicants why the City should
grant them funds when they have indicated that they are anticipating a profit with this venture.
Mr. Hill responded that they have done an internal cost/benefit analysis. In 1998, there were only
16 teams participating. Without this type of funding assistance, from a resource perspective, i.e.,
volunteers, they may be forced to scale back the Tournament to a more manageable level.
Mr. Kranstuber thanked the applicants for their testimony.
Mr. Lecklider stated that the figures are fairly solid for the hotel rooms, and the monies will be
spent in Dublin, as they have indicated. It meets the criteria of filling hotel rooms, thereby
producing hoteUmotel tax revenue.
Ms. Puskarcik agreed, noting that this Tournament fills hotel beds during a time of year when there
is not a large demand. In some cases, there are applications which are more cultural in nature, but
this application clearly meets the criteria for generating bed tax revenue.
Mr. Lecklider noted that from the materials provided, the expenses are 50-60,000 -including
$30,000 for referees, $10,000 for field preparation, $5-10,000 for City services, and rental expense
for fields.
Ms. Gibson clarified that City service expense is estimated at $3-5,000.
Finance Committee
October 7, 2003
Page 5
Mr. Kranstuber stated that it is important to view this application in the context of the $150,000 bed
tax funds available for the entire year, and the fact that 6 additional applications are yet to be
reviewed.
Ms. Gibson clarified that the unencumbered budget is actually @$80,000, while the applications for
funding total $131,000. The DYA field lighting project, as approved last fall, encumbers $70,000
of this year's funds. In the September application timeframe, the CABA Tournament will be
requesting funding of the cost of City services -approximately $7,000. They will not be requesting
a major capital project this fall.
Mr. Lecklider and Mr. Kranstuber agreed upon a $10,000 grant for the F.C. Soccer Tournament.
Mr. Kranstuber stated that his prejudice is toward projects that culturally benefit the citizens, such
as the Big Apple circus, or toward capital projects that are enduring. He recognizes, however, that
the criteria for bed tax grants is hotel room nights, and this application certainly meets that criteria.
It was the consensus of the Committee to recommend a grant to include 100 percent of the cost of
City services, plus additional grant money up to a maximum of $10,000.
The meeting was adjourned at 7:00 p.m.
Ms. Gibson suggested that the next application process be January 2005. The budget has been
completed then and the City has a better view of the situation. Next fall of 2004, the City still will
not know whether the money will be there for grants. In January 2005, it will be possible to make a
decision whether to suspend the grant process.
Mayor Chinnici-Zuercher stated that most of the events begin in the spring. If the applications were
to be due by the end of January, and Council reviewed them in February, there would be ample time
for notification of the awards and distribution of the funds.
Mr. Lecklider inquired if that timetable allows the City to notify potential applicants that it would
not be worth their while to submit an application or for the Finance Committee to decide if they
want to entertain the grant application process.
Ms. Gibson responded that it would allow Council time to make that decision. It would also allow
Council time to review the Dublin Arts Council grantor other monies that have been committed.
Ms. Puskarcik stated that with the present application process, there was some confusion. Although
Community Relations initially removed the application from the City's website, they put it back on
because some individuals had expressed the desire to apply even if the funds were uncertain. She
wants Community Relations to be consistent with Council's intent. Is the Committee saying that
the application should be removed from the event approval process?
Mayor Chinnici-Zuercher stated that there is no money for 2004. The message should be that the
bed tax grant is under view by City Council, and they will determine in 2004 what the policy will be
for 2005.
Finance Committee
October 7, 2003
Page 6
Ms. Puskarcik stated that she would then send a clear message in 2004 that there are no funds
available.
Mr. Kranstuber stated that it makes no sense that with all the hotels in Dublin, there are is no money
in the bed tax fund. What percent does the City receive?
Ms. Gibson stated that it is 1.5%.
Mr. Kranstuber stated that the Dublin Arts Council and the Convention & Visitors Bureau both
receive percentages of the whole. After they receive their percentages, a certain amount should
remain.
Ms. Gibson responded that in addition to the percentages those organizations receive, there is the
debt service on the Dublin Arts Council building, the monthly lease payment on the Convention &
Visitors Bureau building, and the events are more expensive.
Mr. Kranstuber inquired how it is determined how much is taken from the fund for City events.
Ms. Gibson responded that it is in Ms. Puskarcik's budget, which Council approves.
Mr. Kranstuber inquired what percent of Community Relations' budget is taken from the bed tax
fund.
Ms. Puskarcik responded that 100% of the event budget is taken from the bed tax fund. She
inquired where the event revenue is deposited.
Ms. Gibson responded that it is deposited in the general fund.
Ms. Puskarcik stated that the Irish Festival is one event with which it is possible to generate more
revenue.
Ms. Gibson stated that one bad year can wipe out five years of revenue.
Mayor Chinnici-Zuercher stated that it was stated at last night's Council meeting that the Finance
Committee needs to discuss and recommend a fee waiver policy for use of City facilities.
The Clerk of Council noted that the Arts Council waiver for City services is another topic for
discussion.
Ms. Gibson requested Council direction regarding the Art in Public Places policy.
Mayor Chinnici-Zuercher stated that the information provided to her by the Clerk of Council
indicates that Council had decided not to continue funding for Art in Public Places projects.
Mr. Kranstuber inquired if anyone has discussed and this with the Dublin Arts Council director.
He is certain Ms. Rosenthal is fully aware of Council's decision.
Ms. Gibson stated that she would forward a response to Ms. RosenthaFs recent inquiry, however,
she anticipates Ms. Rosenthal will submit a formal request for reconsideration from Council.
The Clerk of Council stated that Council's minutes reflect that all future Art in Public Places
funding is to come from the 25% grant that is awarded annually to the Arts Council.
Finance Committee
October 7, 2003
Page 7
Mayor Chinnici-Zuercher stated that the last public art project that was funded by the City became
somewhat confusing-the Jack Nicholas statute.
Mr. Kranstuber stated that was a different City project.
Mayor Chinnici-Zuercher stated that project clouded the issue, though, and probably recreated an
expection. However, that information should be part of Council's minutes. She assumes there is
also a formal contract that is updated periodically.
The Clerk noted that the provision for the 25 percent funding for Dublin Arts Council was
accomplished by City ordinance. The facilities funding was covered by a contract.
Mr. Kranstuber stated that he would like to review the minutes regarding the Dublin Arts Council
funding. It was his impression that the intent of the super funding was that the City wouldn't
continue to issue waivers -- the Arts Council would be on the same footing as all other grant
applicants.
Mr. Lecklider inquired what fee waivers they have been receiving.
Mr. Kranstuber stated that they have received waivers for the cost of City services for Sundays at
Scioto events and for use of the City's showmobile.
Ms. Puskarcik stated that to date, the Arts Council has not paid the cost of City services. Therefore,
there is an assumption that they will be waived. That is what Council needs to clarify. Recently,
the City Manager, per City fee policy, waived the cost of the showmobile; however, a waiver for the
cost of City services is a Council decision. She does not have a recommendation for Council.
However, waiving the fees for the Arts Council does increase the expectations of other
organizations. They have indicated that if bed tax funds are unavailable, they will simply ask
Council for fee waivers.
Mayor Chinnici-Zuercher stated that the Dublin Arts Council is more of aCity-sponsored group
that many of the other bed tax applicants, who are independent organizations doing their own
personal activity which happens to be occurring in the City of Dublin. On the other hand, Dublin
has a vested interest in the Arts Council for the citizens of Dublin. Council's first responsibility is
to its own community.
Clerk of Council
Finance Committee
October 7, 2003
Page 8
