Civic Park tops list of tax beneficiaries

by Paul Flemming

SBJ Staff

Just the numbers, please.

If approved by Springfield voters Feb. 3, the 2 1/2-cent increase in the room tax would raise about $37.5 million in revenue in the next 20 years, according to city projections.

Those projections are based on historical collections of the city's existing room tax which stands at 2 cents and was first levied by City Council in 1979. In the 1996-97 budget year the existing 2-cent tax raised about $841,000, which was used to help fund the Springfield Convention & Visitors Bureau. Springfield's total room tax, if the increase is approved, would be 4 1/2 cents.

The projected figure represents revenue of about $1.88 million a year for the increased part of the tax. The projections represent a 78.6 percent increase from current revenues. Between 1986 and 1996, revenue from the existing room tax increased about 89 percent, from $432,554 to about $818,266.

Gary Ellison, president of the Convention & Visitors Bureau board, said the proposed projects should attract to Springfield from 1.5 million to 2 million more visitors a year.

City Manager Tom Finnie said the projections for revenue from the proposed tax increase contain allowances for more visitors.

"We're building into that projection the impact of the projects," Finnie said. "It's kind of like the magic of compound interest. There will be an upward hit (in the number of visitors to Springfield) between three and five years from now" as the projects come on line.

The room tax initiative earmarks set portions of the new revenue for specific projects.

?The first phase of Civic Park is to receive the lion's share of the revenue: 60 percent, or about $22.5 million.

?The American National Fish and Wildlife Living Museum and Aquarium is to receive 20 percent of the tax-increase revenue, or about $7.5 million.

?A recreational ice complex is to receive 10 percent of the take, or about $3.75 million.

?Four not-for-profit entities are eligible to split the remaining 10 percent, sharing another $3.75 million for capital projects matched by money from the individual not-for-profits.

Finnie said the city would use the revenue to finance bonds for each project, some grouped together and some bonds issued for separate projects. "Our approach is to let the project drive the financing."

He said a steady revenue stream from [[In-content Ad]]