The room tax revenue account had accumulated $2.1 million over more than 17 years, approximately $700,000 or anywhere from $350,000 to $400,000 annually after making payments on the International Center for Trade, $1.5 million of which was available for future city projects that met state standards, said Interim Finance Director Jesus R. Rodriguez.
Mayor Ramsey English Cantu was in favor of moving forward with the resolution.
“The state, through the room tax fund, allows for historical preservation to be utilized,” said Cantu. ”The large amount we currently have in room tax would allow us to do other projects that will be beneficial for the downtown area, and I think that when we remember the projects that are ongoing in our community and we have potential funding opportunities like we do with room tax, it opens us up to doing more.”
Mayor Pro Tem Yolanda Ramon agreed that the council should use transfer the funds, and was concerned that so much money had accumulated.
“It’s good there’s money in the account, but we should be using it and if we accumulated over $2 million then I’m concerned about that because that means we have not been utilizing it,” said Ramon who added that if the money were to be used for future projects she would like them to be presented before the council first. “I don’t mean to be difficult, but if we’re spending I want to make sure it’s being spent wisely.”
The mayor agreed, and Rodriguez said that proposed project funding would have to be approved by the council before it could be used.
Strict state standards also prevented the city from using the funds, and even exclude the use of room tax revenue for street and drainage work.
“It’s not so much we aren’t utilizing it because we have utilized some of the funding for projects within the community, but there’s only a certain percentage that’s allowed by the state for arts or historic preservation, or sports, and it’s very limited when it comes to sports,” said Cantu. “I think that there’s a lot we can use that money for but specifically in a way that is not only to do historical preservation of the library, but enhancements to the downtown area, and I think it brings a lot of good. We can make things happen.”
The resolution was approved unanimously. Councilman Luis Sifuentes and Councilwoman Gloria Hernandez were not present at the meeting.