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Mayor Kuzma asked how big of an area they serve. <br /> Mr. Stauffacher said they serve 10 cities, Anoka, Arden Hills, Blaine, Coon Rapids, Fridley, Ham <br /> Lake, Lino Lakes, Mounds View, New Brighton, and Shoreview. <br /> Councilmember Howell asked what percentage of the revenue that is brought in goes towards <br /> employees' salaries or board member compensation. <br /> Mr. Stauffacher explained that their board members do not get compensated as it is a volunteer <br /> role. He said around 15% goes towards salaries. <br /> Ms. Peterson added that they do not have any overhead fees for an office building as Fridley City <br /> Hall allows them to use their space. <br /> Councilmember Specht asked how much Staff time this is expected to take. <br /> Economic Development Manager Sullivan explained that the only thing Staff would be working <br /> on would be to process the monthly payments and work on future grants to fund eligible marketing <br /> expenses. <br /> Mr. Shauffacher said they can expect a couple hours of work a month from City Staff. <br /> Finance Manager Lund suggested setting up a separate fund to track this. <br /> Councilmember Woestehoff asked if the 3% is the normal amount for lodging tax. <br /> Mr. Shauffacher said this is the State lodging tax that must be spent on tourism. <br /> Councilmember Musgrove said she is not in support of this as one of the two hotels in the City is <br /> not even built yet. <br /> Economic Development Manager Sullivan explained that once this lodging tax is implemented in <br /> the City, whatever hotels are operational at that time will be enrolled. He said they would be able <br /> to start this as of January 1, 2025, for the existing hotel in the City. He noted that once the second <br /> hotel is up and running, the City will be able to begin collecting revenue from them as well. He <br /> added that the owners of both of the hotels are very excited about the possibility of filling up more <br /> of their rooms. <br /> Councilmember Musgrove shared that she is going to advocate for the residents as this would be <br /> a tax increase on them. She said she does not see value in this. She noted that when Google <br /> searching Ramsey hotels, the only hotel in the City comes up and it is not difficult for people to <br /> find. She added that in the future when there is a buildup of more things in Ramsey, there may be <br /> an incentive for people to come and this would be more of an option at that time. <br /> City Council Work Session / October 22, 2024 <br /> Page 2 of 15 <br />