Hospitality tax amendments proposed

City officials have been getting an earful about plans to ask voters to extend the 2 percent hospitality tax and in response plan to amend the ordinance that would place the measure on the ballot.

  The soon-to-sunset hospitality tax is levied on hotels, restaurants and bars to fund parks and recreation, Yuma Crossing and the promotion of conventions and tourism.

  After discussion at several meetings, the Yuma City Council was proposing to hold a special election May 19 by mail ballot to ask voters to extend the tax until 2029.

  However, several changes to the ordinance were presented by staff to the council during its work session Tuesday evening as a result of public feedback.

  The changes proposed by City Administrator Mark Watson will be presented as an amendment to the ordinance when it is introduced during the regular city council meeting at 5:30 p.m. today at Yuma City Hall, One City Plaza.

  Watson recommended that the council hold a regular election because of several concerns he's heard about a mail ballot.

  Watson also recommended that the dollar amounts outlined in the city charter for each area funded by the special tax be updated. He proposed that the new amendment designate $2.5 million for parks and recreation, up from $1.2 million. He also proposed that $600,000 be designated for the Yuma Crossing area, up from $400,000; and $400,000 go to conventions and tourism, up from $200,000.

  Any balance left over from the designated amounts could be applied only to the three areas outlined in the charter, Mayor Larry Nelson said.

  Yet another change proposed by Watson would shorten the extension for the tax to 15 years rather than 20 years. The 20 years had been suggested originally as that length of time is needed for bond issues.

  Instead, Watson suggested asking for the 15-year extension and develop new facilities as the cash is available.

  "That would moderate the time asked of voters and give the city time to work on some projects."

  Asked whether restaurants could be dropped from the special tax, Pat Wicks, the city's financial director, said that would be difficult as restaurants and bars are listed in the same classification under the state's tax code.

  He said there is a possibility that rental cars could be added to the tax, but it would need state approval.

  City residents who haven't addressed the council in the past regarding the 2 percent special tax and upcoming election are invited to comment on the ordinance and the proposed amendments during the meeting.

  The special tax was originally approved by city voters in 1970 and renewed by voters in 1993. Voters in 2007 defeated a measure that would have extended the tax, increased it to 2.5 percent and possibly used to help fund a new events center.

  If voters again reject an extension of the special tax, it will sunset on June 30. If it is renewed, the tax is expected to bring in $4.5 million in revenue in fiscal year 2009-10. City officials say they need the tax's continuing revenue to fund parks and recreation facilities and programs, the historic Yuma Crossing area and promotion of tourism.

 Without that revenue, they say they will have to look for other funding sources or cut expenditures.

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Joyce Lobeck can be reached at jlobeck@yumasun.com or 539-6853.

CURRENT USES OF 2 PERCENT TAX

  • Recreation Complex (Yuma Civic Center and baseball complex) - $1.5 million
  • Election - $75,000
  • Administration - $54,420
  • Desert Hills Golf Course - $234,463
  • Riverfront development - $440,200
  • Capital projects funds - $2 million
  • Crossing Park - $175,000
  • Yuma Visitors Bureau - $650,000
  • Main Street/Heritage Festivals - $90,000
  • Film Commission - $10,000

CIP PROJECTS FOR FISCAL 2009

• Arizona Welcome Center - $1 million
 • Pivot Point Retail Village components - canal walk - $70,000
 • Riverfront development master planning - $25,000
 • Miscellaneous structure demolition - $100,000
 • Downtown/I-8 trailblazing and city ID improvements - $100,000
 • Pivot Point - $680,000
 • Reclamation land exchange - $25,000