November 1, 2004
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City approves hotel tax increase
Monday, November 1, 2004 Posted 8:50 p.m.
The Minonk City Council approved raising the Hotel Tax from 3% to 5% effective January 1, 2005.
The city has collected $10,931.12 from this tax since January 2002 but has received $2341.43 of
this amount in the last 4 months as the hotel occupancy rate is increasing. The tax revenue is
recorded in the General Fund and provides funding for tourism expenditures such as the Parade of Lights
and the Fourth of July celebration. These expenses have more than offset the tax collected so far.
The city has given the Fourth of July committee $2500 in 2002 and 2004 and $5000 in 2003. $3450 was given
for installing Christmas lights in 2002 and 2003.
Alderman Bill Koos said that increasing the hotel tax twice in 4 years sends a bad signal to potential
developers. He and Alderman Matt Fink voted against the hotel tax increase.
The city has put $5000 in reserve directly from the hotel tax. The city portion of the Woodford
County Small Communities Grant is $3000 and will be taken from this reserve since it is definitely
an economic development expenditure.
City Administrator Trent Smith said he would like to put a fountain in the retention pond in
the Carolyn Development next to the Motel Six and fund it from the hotel tax. This is one way of
the motel benefiting from the tax.
City releases Fortman from lease on Kent Building
The council approved a motion to excuse Ron Fortman from the requirement to remove the old Kent
Lumber building that he has leased until July 39, 2005. Mayor Mark Spencer asked Fortman if he
would allow the city to take possession of the building before the lease expires. Fortman said the
city can have the building as soon as a legal document can be prepared. Spencer said one would
be prepared tomorrow. The city is considering asking for offers to remove the building for the lumber.
Other news
The council approved a motion to make Veterans Day an official city holiday. Alderman Sean Cunningham
asked to have the Maple Avenue parking problem put on the agenda for the next meeting since the
problem has still not been solved.
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