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Boone council approves $220,000 hotel‑motel funding package, directs reserves to cover outstanding Boulders payment

2085306 · January 7, 2025
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Summary

The Boone City Council approved a $220,000 hotel‑motel funding allocation that reallocates reserves to finish a longstanding Boulders payment and distributes grants to tourism and community organizations.

The Boone City Council approved a $220,000 distribution from the city's hotel‑motel revenue pool on a motion to adopt the spending plan, with staff directed to use hotel‑motel reserves for a final payment tied to the Boulders obligation and to draw general‑fund dollars to cover selected allocations.

Staff member Andrea told the council the city has four obligated recipients that must be funded from hotel‑motel proceeds: Aims Regional Alliance, the Convention and Visitors Bureau (CVB), Main Street and Boone County Economic Growth. Andrea said the starting proposal was $200,000 and recommended the council consider a $220,000 allocation to meet requests.

Council members debated how to fund the increase and how to clear an outstanding multi‑year Boulders obligation. Council discussion settled on paying $40,000 from hotel‑motel reserves toward the Boulders obligation and using $20,000 from the general fund to reach the $220,000 total. Council members said increasing the pool to $220,000 would allow staff to fund most requests fully.

Under the approved plan, staff identified planned or recommended grants and amounts including: Boone County CVB — $90,000; Aims economic development — $58,250; Boone County Chamber — $35,100; 7 Oaks ski patrol — $25,100; Boone County Economic Growth — $25,000 (to partially reimburse a prior payment); Fourth of July celebration — $13,000 (fully funded); Boone County Fairgrounds — $3,000; Boone Historical Society — $2,250 (for elevator/accessibility work); Boone County Search & Rescue — $5,000; downtown Boone — $10,000; and a $7,500 allocation listed as "profitability days." Some request amounts were reduced from the amounts originally asked for by applicants, according to staff.

Council members noted that recent and upcoming events and projects'including the opening of a large new lodging/construction project, a national golf tournament and a pyrotechnics event'were expected to sustain or increase hotel‑motel receipts. Several council members said they preferred not to cut the CVB funding below last year's level given its role in driving lodging demand.

Council discussion also considered whether certain requests belonged in the human‑services grant process (for example, camps or organizations that provide social services) rather than hotel‑motel funding. The council approved the spending plan by roll call vote.

The council asked staff to reflect the allocations in upcoming budget materials and noted a budget meeting scheduled for Jan. 14 to review the broader budget and provide updated revenue projections. The council directed staff to finalize the distribution and implement the transfers described in the approved plan.