The proposed change would give the first $150,000 generated by the hotel/motel tax to the Parks & Recreation capital improvement fund, the next $300,000 to the general fund, and once the $450,000 threshold is met, the rest of the money would be credited to Parks & Recreation.
Currently, the first $50,000 goes to Parks & Recreation, the next $215,000 to the general fund, and any money after that is distributed to both funds (25 percent to Parks & Recreation, 75 percent to the general fund).
City officials said there are several reasons the modification would help the city, including bringing the playgrounds up to national safety standards, leveraging dollars for potential grants, and expanding both the adult and youth programs.
“It’s not resident tax dollars, it’s visitor dollars,” said Alicia Eckhart, Parks & Recreation superintendent. “The community receives the reward of visitors coming.”
Since 1998, the city has collected more than $400,000 every year except 2009 and 2010. Last year, the figure was nearly $440,000, with $93,119.52 going to the Parks & Recreation capital fund.
And since 1997, the general fund has collected more than $300,000 from the hotel/motel tax every year except 2010, including almost $350,000 last year. But city officials aren’t concerned about the loss the general fund is projected to incur.
“We’re in a position where we’re getting revenues from other sources to compensate that loss and that shift to the parks,” City Manager Deborah McDonnell said. “It’s a minor shift in money. A $50,000 loss to a $16 million budget is not really much.”
The original ordinance passed in November 1972 designated 100 percent of the hotel/motel money to the Parks & Recreation capital improvement fund. The ordinance has been amended four times since then based on whether there was a need for additional money in the general fund.
The city collects 3 percent of the room rate, a percentage that hasn’t changed since the hotel/motel tax became effective in January 1973. There are 16 hotels/motels in Fairborn, according to community development director Chris Wimsatt.
The first reading of this amendment is scheduled for Monday night. The second reading and public comment would take place Oct. 1, and council could vote on the legislation as early as Oct. 15. It would then be effective Jan. 1, 2013, and what is collected next year will be budgeted for 2014, Eckhart said.
There are 714 acres of park land in the city, including features such as a sprayground, disc golf course, 19 shelter houses and playgrounds, and 14 basketball and tennis courts. Eckhart said upgrading the playground surfacing and resealing the shelter houses are immediate needs, and adding a second sprayground is a long-term goal.
The department also plans on doing a community-wide needs assessment this winter. Focus groups will be established and public participation will be encouraged as the city evaluates how to expand its recreational services.
“The city has put a high priority on developing a nice park system that supports our residents and the people who come here to visit Fairborn,” McDonnell said. “This is really going to help our parks in the long run. You’re starting to really see some advances and improvements, and more people wanting to come here because of our parks. It will help us economically the more people we draw into Fairborn.”
The general operational budget for the Parks & Recreation department in 2012 is $232,906, while the capital parks projects budget is $106,000, which is mainly supported by the hotel/motel tax.
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