CCP 12-13-2004 - Laserfiche WebLink

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ARDEN HILLS CITY COUNCIL WORKSESSION November l5, 2004 8 City Administrator Wolfe noted that the City is trying to set aside funding to pay for capital . improvement projects, equipment, and infrastructure improvements in the future. Councilmember Larson stated that the City may have to pay more in the future for fire equipment. A percentage breakdown based upon the number of fire calls each community has may be used to equalize capital expenditure costs amongst the different communities that receive fire service from Lake Johanna. Finance Director Siddiqui suggested that the City Council may want to consider reallocating general fund dollars toward future capital expenditures. Councilmember Rem thanked the Finance Department for including an opening letter to the residents and adding descriptions and charts into the 2005 budget. City Administrator Wolfc noted that City staff will continue to work on improving the CIP and annual budget. Councilmembers thanked Finance Director Siddiqui for his good work on the 2005 budget. Status Report on Convention Visitors Bureau Scott Clark, Community Development Director, provided a brief overview of the proposed motel/hotel tax. Recently the Mayor and City staff members met with representatives of the Arden Hills Holiday Inn and Super 8 to discuss their perspectives on the City implementing a . lodging tax that would be collected by the City and then transferred to the Minneapolis Metro North Convention and Visitors Bureau. Representatives from the Holiday Inn and Super 8 have both agreed that there would be merit in having the City levy the lodging tax but requested that the program be reviewed on an annual basis. Minneapolis Metro North Convention and Visitors Bureau Executive Director Bob Musil was in attendance to answer any questions that City Councilor staff members may have regarding the lodging tax. Community Development Director Clark mentioned that the proposed agreement has a one year opt out plan. The agreement and ordinance will be placed on the November 29th City Council meeting agenda. Councilmember Larson asked why the Super 8 Motel was reluctant in agreeing to the lodging tax? Mr. Musil noted that the tax is passed onto the user of the room. This is not considered an additional tax onto the hotel or motel owner, but rather a user fee. It was more of a misunderstanding between the owner of the Super 8 and City staff regarding how the tax is being utilized and implemented. City Administrator Wolfe reiterated that the owner of the Super 8 was not sure how the tax . dollars would be allocated or used. Once the Super 8 owner understood how the money would be allocated, he was agreeable to implementing the tax.