Attendance: Committee Councilors - Chairman Gus Foote, Vice-Chair Sefatia Romeo Theken and Bruce Tobey.
 
Public in attendance: Councilor Jason Grow, Councilor, Jackie Hardy, Councilor, Joe Ciolino, Marcia McInnis, City Auditor, Debra Ryan, Jan Bordinaro, Laura Dow, Greg Verga, Paul Salah, Janis Shea, Bob Hastings, Mayor Carolyn Kirk, Mike Hale, DPW Director, Sherri Delorenzo, Mike and Mona Faherty, J.D. MacEachern, Phil Dench, Fire Chief, Paul Frontiero, others and Bob Ryan.
 
Chairman Gus Foote opened the meeting and stated that he has had numerous calls and correspondence with regards to the City increasing the Room Occupancy taxes and Meals taxes, He stated that Tourism in the City is very important and that the general consensus of people calling him is money needs to be put back into promoting the city.
 
Mayor Kirk suggested:
 The City adopt the new excise taxes and distribute the funds as follows:
1.     The City contract with a publicist / PR person to promote the City and that a "revolving account" be set up and 25% to 50% of the new revenue be put into the fund  and be distributed by the Tourism Commission
2.     The balance of the revenue be put into "reserve accounts" and be divided between the Senior Center and the Sawyer Free Library.
The Mayor further stated that the Town of Sandwich (Oldest Town on Cape Cod) has such an account, and it earmarks funds to specific projects.
 
Councilor Toby: 1. Questioned the procedure to be followed in the City contracting with a Marketing firm and asked that at the next meeting an assessment of the procurement procedure be presented as to abide by all municipal procurement rules and regulations.
2. Tobey: Questioned if it was lawful, legal to "tie the hands" of future Councilors with respect to distributing future funds. Is it legal to restrict the spending?
3.     Tobey: Questioned the assessment of expected revenues. Exactly how much will be generated between October, 2009, and June, 2010?
Tobey felt that in order to proceed, the above questions need to be answered.
 
Mayor Kirk then stated that lower revenues were seasonally adjusted and that to realize any new funds a vote of acceptance was needed to be made by August 31, 2009.
 
Sefatia then stated that the city is divided into different factions...DMO, the Chamber, the Downtown merchants, etc. The promotion of the City should incorporate "all of Gloucester" not just the Downtown.
 
Jackie Hardy concurred with Sefatia and spoke on the duplication of brochures throughout the City. Any money spent to promote Gloucester must include all of Gloucester.
 
City Auditor, Marcia McInnis then informed the committee that there were several different "revolving fund accounts" and many have unique revenue sharing structure. Marcia stated that she would look into the different types and report back as to the adoption procedure, and secondly, how to administer, structure and appropriate funds from the account. The auditor also indicated that she would check into the revolving account in the Town of Sandwich and how it is structured.
The auditor, again, repeated that if the new excise taxes were not adopted by August 31, 2009, but instead at a later date then any revenue generated would go into the City's free cash account to be spent on whatever.
 
The committee then asked when it would go to the Budget & Finance committee, and Jason Grow indicated that the agenda for the next meeting August 6, 2009, was already full.
 
The Chair then opened the meeting to the public. Bob Hastings,Executive Director of the Chanber of Commerce, spoke first. He stated that he would like to go on record as "opposing" any new taxes placed on the businesses in Gloucester. He specifically stated that he opposes the new proposed occupancy tax as well as the increase in meals taxes. He did state however, that if it were to pass, he would help/assist in negotiating a resolution.
 
John Orlando also stated that he opposed any new taxes placed on the businesses in the City. John went on to thank the City for all of its financial help in funding the Downtown Map and complimented the Chamber as well for all of its assistance in developing the brochure.  He concluded by stating that all of Gloucester should be promoted as well not specific areas.
 
Mike Faherty then addressed the group on the burdens that the businesses of are now confronted with. He stated that he has two operations and that he is paying exorbitant water and sewer bills, real estate taxes, inspection fees and numerous other fees. The City cannot continue to burden the businesses of Gloucester with additional taxes. As it is, the season is short, and additional taxes would only add to the already weak economy and low occupancy.
 
Faherty asked that the committee tread slowly on approving any tax increases as there is plenty of time to impose the tax. Mike did state that it would not be prudent to approve this measure unless assured that additional funds are used to market the "City of Gloucester."
 
Debbie Ryan then read a letter from Tracey Muller, of Bass Rocks Ocean Inn. The letter reaffirmed statements made by Mike Faherty stating that the businesses of Gloucester already pay enough in real estate taxes, water and sewer and inspections as it is. The taxes collected on rooms and meals are high enough and we should not price ourselves out of the market. Again, if the taxes are imposed, a large percentage of the new revenue should be used to promote/market Gloucester.
 
John Orlando suggested that both the Council and business owners meet, however, Councilor Tobey stated that it would violate the meeting law.
 
Sefatia Romeo Theken then stated, once again, she needed answers to questions raised at the meeting.
 
The general consensus of both the committee and those attending was to take time in making a decision on whether or not to adopt the new taxes and not rush to judgement.  However, if it were adopted, the parties want assurances that the new revenue be put into marketing all of the City of Gloucester.
 
A motion was then made to continue the discussion, after questions can be answered, to August 17, 2009, at 6:15pm in the City Hall Auditorium.