The Cape Girardeau City Council Monday approved unanimously a motion to solicit proposals for use of the city's convention and tourism funds.
A 3 percent gross receipts tax on hotel and motel rooms and 1 percent levy on restaurant sales is used to fund conventions and tourism in the city, in addition to other economic development proposals.
Voters in 1983 approved the tax, which went into effect in January 1984.
Since the fund's inception, revenues have been used almost exclusively to fund the city's Convention and Visitors Bureau. Revenue from the tax also has been used to retire the debt on a $5 million bond issue used to fund the Show Me Center multipurpose building.
Councilman David Barklage, who introduced the measure, said it's time for the city to look at other uses of the funds, which next year will total about $600,000.
"The Convention and Visitors Bureau and the Chamber of Commerce have done an excellent job, but before we get into next year's budget, we need to define the issues and look as a community at what we're doing with the money," he said.
Some groups have criticized the allocation of about $200,000 each year for the Convention and Visitors Bureau and have asked that the money be spent for other uses, including economic development.
Barklage said he didn't have want to limit proposals to only tourism or other particular issues.
"My direction is to approach community groups who've shown previous interest in these funds," he said. "I'm trying to keep it broad because I feel the issues are broad."
He said the council will consider the various proposals before deciding on what direction to take in allocating the funds.
But, he added, the council might want to take some funds, if not all, from the Convention and Visitors Bureau if more efficient and effective uses are found.
His motion called for solicitation of proposals during the next 30 days. Then a public hearing would be scheduled for comments and further consideration.
Barklage said the Convention and Visitors Bureau has done a good job with tourism issues, but that the bureau's advisory board isn't prepared to examine broader issues like economic development.
Bob Hoppman, a member of the advisory board who attended Monday's council meeting, said he thought the board was looking for direction from the council and that he supported Barklage's motion.
He said the board already has "opened the door" for people to submit proposals for the bureau's funds.
Barklage said it's important for the city to reach a consensus on how the tax money should be spent.
"Somebody has to take a leadership role and build a consensus," he said. "We need to look at return and investment. There may be a better return on our investment out there.
"It's been a negative political issue out there, and rather than sit and decide what's been done in the past with the money, we should look at what we can do with it in the future."
Barklage also suggested that the council this year only approve a six-month budget for the bureau to align its calender-year budget with the city's fiscal-year budget.
City Manager J. Ronald Fischer said the Convention and Visitors Bureau Advisory Board already has agreed to submit a six-month budget in December.
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