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Huntsville council approves $23.9 million in payments; lodging-tax increase postponed to align with TIF vote
Summary
On June 11 the council authorized expenditures for payment totaling $23,901,553.73 and postponed a proposed 1% lodging-tax increase (earmarked for VBC capital improvements) to the June 25 meeting so it can be considered alongside an associated TIF measure.
The Huntsville City Council approved a finance-committee resolution authorizing expenditures for payment totaling $23,901,553.73 at its June 11 meeting.
Mr. Meredith moved for authorization of the expenditures and the motion was seconded and carried by voice vote.
Council also discussed a proposed 1% lodging-tax increase that city staff said would be earmarked for capital improvements at the Von Braun Center (VBC). City staff recommended postponing the lodging-tax ordinance until the council could consider it on the same night as a related tax-increment financing (TIF) vote, currently scheduled for June 25. "Since both of those items are aligned to the same project ... our recommendation is better for you to handle both those things on the same night," a city staff member said.
Council approved the postponement to the June 25 meeting. Staff said, if passed later, the lodging-tax change would not take effect until October to give businesses time to implement new collection procedures.
In separate action under new business, the council authorized travel reimbursements totaling $30,291.76 for the period; staff reported employee reimbursements of $8,355.93 and answered members' questions about the factors that determine how many staff attend a conference.
Next steps: the lodging-tax proposal will return to the council on June 25 along with the TIF item; staff said that if adopted, the lodging-tax change would begin collection in October to allow administrative adjustments.
