Springfield City Council members last night voted 7-2 in favor of a plan to divide hotel-motel tax dollars previously dedicated to the Wonders of Wildlife museum.
With the vote, 60 percent of tax revenues will be used by nonprofits for projects designed to attract tourists to the city, and the other 40 percent will be directed toward the city's debt subsidy on on Jordan Valley Park and Mediacom Ice Park
In November 2011, WOW officials terminated the museum's agreement to receive 20 percent of the 5-cent tax so the funds could go toward other city priorities.
Council weighed two options for the tax funds. Another bill would have redistributed 100 percent of the former WOW tax revenues to pay down the debt that is currently being subsidized by the city’s general fund on the downtown parks.
According to estimates the city provided with the bills, the general fund was slated to subsidize the debt on the downtown parks to the tune of more than $16 million through 2028. With the approval of the measure that several council members last night called a compromise, the general fund is only expected to pay out $12.2 million through 2028. Had all funds been dedicated to debt service, the general fund’s subsidy would have been $6.7 million.
Councilman John Rush, a former president and CEO of United Way of the Ozarks, stood opposed to the plan that will give select nonprofits 60 percent of the roughly $330,000 generated annually from the portion of the hotel-motel tax that had gone to the museum.
“If we were to split the money among several nonprofits, I don’t think it would have the same impact,” Rush said prior to the vote.
Councilman Doug Burlison also voted against allowing nonprofits being able use a portion of the revenues, saying earmarking the funds for debt service was the responsible thing to do.
Councilman Jeff Seifried was among those who felt sharing the revenue with nonprofits represented an investment in the community.
“I think this reinvestment strategy still respects the will of the voters,” Seifried said. In 1998, Springfield voters approved an increase in the hotel-motel tax that made capital grants available for community nonprofits. In 1999, the city entered into an agreement with WOW that directed a portion of that increase to the museum’s operational budget.
Councilwoman Cindy Rushefsky said she felt the bill that divided revenues among debt and nonprofits was a reasonable compromise.
“We are not going to grow unless we invest in attracting tourism,” Rushefsky said. “This preserves the spirit and intention of the ballot language.”
With passage of the bill, the city must now establish a Hotel-Motel Tax Reallocation Committee, which will be charged with evaluating grant proposals and making recommendations of qualified nonprofits. According to the bill, the roughly $328,000 that has been raised since WOW terminated its agreement with the city would be directed towards improvements at the Springfield Expo Center.[[In-content Ad]]
