Dome Proposal Financing Plan
The proposed dome project has been divided into two options:
- Option 1 - Includes the complete renovation of the dome and the addition of a new annex that includes a new entry and lobby, office space, new restrooms, catering kitchen, 2 meeting rooms and mechanical/storage areas.
- Option 2 - In addition to everything in option 1, option 2 includes a new multi-purpose event space that could serve up to 750 people in a banquet setting. The space can also be divided into two medium spaces or two small spaces and one medium space.
The City Council desires the project to be completed without the use of Ad Valorem (Property Tax). The following financial plan has been developed without the need for property tax revenue, and instead utilizes funds from 4 main areas:
- Hotel Occupancy Tax (HOT) - 7% tax added to the nightly room rate paid for each hotel room in the City. State law restricts the use of HOT money for projects related to tourism. A Civic complex is one of the allowable expenses. Money from Hotel Occupancy Tax also supports the Chamber of Commerce tourism programs, the Friends of the Hutchinson County Museum, and the Tri-City Concert Association.
- Venue Tax - A venue tax is a 2% tax added to the nightly room rate paid for each hotel room in the City. A venue tax must be adopted by a vote of the community for a designated venue. The City plans to call an election for the establishment of the Dome Venue. The revenue generated by a venue tax can only be used to pay debt associated with the venue and once the debt has been paid, the venue tax ceases.
- Tourism Fund Balance - Money in the Tourism Fund or the Capital Equipment Fund that has not been spent in previous years and is available for use.