§ 25-139. Expenses of operation, maintenance and promotion.

(a)

The board of county commissioners hereby determines that the expenses of operation, maintenance and promotion of the convention center to be acquired pursuant to the tourist development plan established by section 25-140 shall be divided into two (2) categories: "priority expenses of operation, maintenance and promotion" and "other expenses of operation, maintenance and promotion." "Priority expenses of operation, maintenance and promotion" include only such items as are absolutely necessary to keep the convention center operating free of liens, to satisfy judgments against the county payable from the operating revenues, tourist development tax proceeds or other moneys earmarked for the convention center, or to pay promotional expenses essential to attract conventions and other users of the convention center. "Other expenses of operation, maintenance and promotion" shall include all other expenses reasonably incurred or to be incurred in connection with the operation, maintenance and promotion of the convention center, including repairs and renewals (other than capital improvements) necessary to keep such convention center in efficient operating condition and effectively promoting the use of the convention center in order to attract conventions and other gatherings thereto, the costs of audits, paying agents and trustee's fees, the payment of premiums for insurance and generally all expenses exclusive of interest on bonds and depreciation which under generally accepted municipal accounting practices are properly allocable to operation, maintenance and promotion.

(b)

Based upon the experience of the county in the operation, maintenance and promotion of the convention center and upon a recent report of Laventhal and Horvath, a copy of which has been presented to the board of county commissioners, it is hereby determined that the priority expenses of operation, maintenance and promotion of the convention center will not in any fiscal year exceed the gross operating revenues of the convention center by more than the higher of:

(1)

Four hundred thousand dollars ($400,000.00); or

(2)

One and seventy-four hundredths (1.74) percent of the proceeds derived from the tax imposed by section 25-136 and received by the county during the preceding fiscal year.

Therefore, it is determined that whenever all other sources of revenue are inadequate to pay priority expenses of operation, maintenance and promotion, such amount should be reserved from the proceeds of the tourist development tax for the priority expenses of operation, maintenance and promotion of the convention center throughout each phase of construction and operation thereof. If the convention center is expanded after January 1, 1986, such four hundred thousand dollars ($400,000.00) and such one and seventy-four hundredths (1.74) percent may be adjusted to an amount and a rate determined by the board of county commissioners to reflect the correct anticipated priority expense of operation, maintenance and promotion of the expanded convention center prior to the issuance of any bonds or other obligations to pay for such expansion.

(Code 1965, § 33-105.1; Ord. No. 86-13, § 2, 5-27-86; Ord. No. 95-24, § 6, 8-29-95)