Council hearing spotlights OUC's budget squeeze and proposed 80' hotel fee for NextGen 911

OUC Director Heather McGaffin told the Committee on Judiciary and Public Safety that the Office of Unified Communications faces a structural funding gap for NextGen 9-1-1 technology and must balance staffing and capital costs in a lean revenue environment. "The proposed operating budget for OUC for fiscal year 'twenty 7 is $60,186,154," she said, and explained the agency's capital request, which includes computer-aided dispatch enhancements and radio tower upgrades.

McGaffin argued the hotel fee subtitle would close an annual approximately $7 million shortfall in the E-911 special purpose revenue fund without placing the entire burden on residents. "The subtitle assesses an 80¢ per night fee for occupied hotel rooms," she said, adding the money would be earmarked to support NextGen 9-1-1 technology rather than general operating expenses. Hotel industry witnesses pushed back, warning the surcharge would harm convention bookings and competitiveness.

Committee members asked about the fund's volatility if hotels remove room phones or telco landlines decline. McGaffin said that would be a risk: if landline-based collections shrink, OUC would need to find an additional $7M from the general fund or other sources. She also said the proposed capital package will fund CAD and 311/911 platform upgrades and the replacement of aging radios and portable units.

The committee pressed for detail on allowable uses under FCC guidance, anticipated revenue, and whether the proposed fee would be routed to the general fund then allocated versus held in a dedicated SPR fund. McGaffin said the fee is projected at about $7,000,000 annually and is designed to cover technology operating and replacement costs; she acknowledged monitoring compliance with allowable uses is important to preserve federal grant eligibility. The committee asked for a vendor timeline and more granular spending plans before advancing the subtitle.