Lodging tax to be redirected

By Sasha Heller
Staff Writer
Posted 10/22/09

DAPHNE, Ala. — The Daphne City Council voted 6-1 in favor of redirecting a portion of the lodging tax toward the Industrial Development Board and “downtown redevelopment.”

Councilman Derek Boulware cast the lone dissenting vote.

The …

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Lodging tax to be redirected

Posted

DAPHNE, Ala. — The Daphne City Council voted 6-1 in favor of redirecting a portion of the lodging tax toward the Industrial Development Board and “downtown redevelopment.”

Councilman Derek Boulware cast the lone dissenting vote.

The resolution calls for 90 percent of the lodging tax proceeds to be restricted for the purchase, development and maintenance of beach-front property.

Of the remaining 10 percent, half will go toward industrial development and the other half will go toward downtown redevelopment.

Councilman August Palumbo asked for clarification before voting as the amendment originally called for 5 percent to be allocated to the Downtown Redevelopment Authority.

He cited how the entire authority resigned in July out of frustration over not receiving funding from the city to carry out planned projects.

Palumbo said he didn’t understand why money would be allocated to “a ghost committee.”

It was agreed upon by the majority of the council to include the generic label, “downtown redevelopment,” in the amendment, with the intention of allocating those funds to the authority once it is reestablished.

Boulware took issue with the timing of the ordinance and how it redirects “revenue stream away from the general reserve fund.”

The council approved its operating budget at Monday’s meeting, after considering four options to balance a $600,000 shortfall.

The solution draws $584,990 from capital reserves but calls for no layoffs, pay reduction or decrease in overtime hours for city employees.

“We have more pressing issues on the table,” Boulware said. “Tonight, the priority has to do with operating the city.”

In other business, the council:

Wendy Allen, representing the National Center for Bicycling and Walking, asked the city to consider participating in Smart Coast, a feasibility  assessment of accessibilty for area residents to live healthy lifestyles.

“We’re all interested in how we can access and have everyone be more mobile,” Allen said.

She cited how Fairhope has recently passed an ordinance to consider specific recommendations regarding bicycle safety when constructing new projects.