Council supported further review of a proposed 2% hotel fee that could generate an estimated $2.8 million to $3 million annually for tourism marketing, while also backing additional study of $80 million to $100 million in pension obligation bonds that could add about 5 cents to the tax rate.
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What this means
The hotel fee would require approval from participating hotels and would fund efforts to attract conferences and group visitors. The pension bond proposal could move city employees into a larger retirement system, but the financial risks, effects on employees and retirees, and potential tax impact still need review. Council also discussed temporary downtown restrooms, traffic and pedestrian safety on 39th Street, and a mobility study related to future cruise terminal expansion; no action was taken in executive session.
Key decisions
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Supported moving forward with legal review and next steps for a proposed Tourism Public Improvement District funded by a 2% hotel fee.
Directed staff to continue studying pension obligation bonds, including a cost-benefit and risk analysis; a May 2027 bond election is being considered.
Directed staff to refine the proposed mobility plan related to future cruise terminal expansion, reduce the estimated cost of more than $530,000, and explore funding or cost-sharing options.
Discussed starting with a temporary downtown restroom while staff evaluates locations and refines costs; a portable ADA-compliant restroom trailer was preliminarily estimated at about $62,000, excluding connections and ongoing expenses.
Directed staff to evaluate speed, signage, signals, and crosswalk locations along the 39th Street corridor, with a painted crosswalk expected near Avenue K.
Staff will review feedback after receiving no proposals for the Stewart Beach RFP and return with recommendations on whether to revise and reissue it or pursue other options.
Staff will return with a proposed reserve fund policy and explore an independent review of reserve practices.
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