Subject:
Title
Public Hearing to Approve a 10-Year Temporary Increase to Meals Taxes to Fund Aquatics Center
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
Work sessions: Sept. 16, 2024; Oct. 21, 2024
Results of Operations and Annex Long-Term Use Study: Feb. 12, 2024; Feb. 26, 2024; June 10, 2024,; Sept. 30, 2024; Oct. 7, 2024
Set Public Hearing at Council meeting: Oct. 28, 2024
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 by using bond funding, and 100% of the repayment of bonds is financed with meals tax receipts. At the current 3% meals tax rate, the debt service load could not accommodate an aquatics and fitness center until 2038/2040 at the earliest. Increasing 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...
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