Subject:
Title
Set Public Hearing to Raise Meals Taxes
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
Work Session 10/7/24
EXPLANATION AND SUMMARY:
Results of Town-wide surveys and citizen engagement efforts including the Parks Master Plan survey conducted in 2024 indicated a strong desire for an aquatics and fitness center in Town on the former Faith Baptist Church property, now known as the Annex property. Parks and Recreation contracted with Kimmel Bogrette and its subcontractors to perform a long-range usage study for the Annex property, and they provided a long-range plan including fitness and aquatics with estimated operating and construction costs. This was discussed with Council several times including most recently on Oct. 7, 2024.
The Town of Vienna borrows money for capital projects such as this using bond funding, and 100% of the repayment of bonds is financed with meals tax receipts. At the current 3% rate, the debt service load could not accommodate an aquatics and fitness center until 2038/2040 at the earliest. Raising the meals taxes to 4% for a 10-year period would enable the Town to design and construct the aquatics and fitness facility in 2026/2028 with a projected opening no later than 2030, 10 years earlier.
Tax increases require both a public hearing to receive input from the public and a supermajority vote (5-2, or supermajority of the members present) to pass.
The purpose of this public hearing is to allow citizens, businesses and other interested parties to give feedback on the plan to raise meals taxes by 1 percent for a 10-year period for the sole purpose of funding an aquatics and fitness center.
Departmental Recommendation: Recommend a public hearing to receive input on the plan to raise meals taxes for a 10-year period.
Finance Recommendation: Recommend a public hearing.
Purchasing Recommendation: N/A
Town Attorney Recommendation: A public hearing may be held on the proposed amendment to the Town’s meals tax rate in the discretion of the Town Council.
Town Manager's Recommendation: I recommend the Town Council set the public hearing to discuss an ordinance to raise meals taxes by one cent on November 18, 2024, as presented.
Cost and Financing: $0
Account Number: N/A
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA. CIP Budget discussion
Decision Needed by This date: Oct. 28, 2024
PROPOSED/SUGGESTED MOTION
Recommended Action
"I move to set the public hearing to discuss an ordinance to raise meals taxes by one cent on Nov. 18, 2024"
Or
Other action deemed necessary by Council.