Room tax revenues exceed early models; committee approves room tax budget and discusses Exhibition Center bonds
Summary
The committee approved the room tax special revenue fund budget and discussed how 3% of room-tax collections pay Exhibition Center bonds. Staff said room-tax receipts have outpaced original forecasts and that a management-agreement renegotiation for the Exhibition Center is underway.
The committee approved the room tax special revenue fund budget and discussed the use of room tax dollars to repay bonds for the Fox Cities Exhibition Center.
Finance staff explained how room tax collections are distributed: a portion covers bond payments for the Fox Cities Exhibition Center and Sports Center (each receiving about 3% under the existing agreement), some funds support the Fox Cities PAC and a small administrative share remains with the municipality. Staff said room tax collections recently exceeded historical projections, boosted by events in 2025, and that the fund has healthy reserves.
On the Exhibition Center specifically, staff said the city is ultimately responsible for the facility and that bond repayment has gone better than modeled because room tax receipts were underestimated in the original analysis (inflation and higher room rates increased taxable base). Finance staff said there is currently no immediate financial risk to Appleton and reserves exist for contingencies, but the city is renegotiating the management agreement to ensure long-term capital reserves and appropriate operating arrangements.
Separately, Council members discussed the League of Wisconsin Municipalities conference, which Appleton will host Oct. 7'9 next year; the council flagged potential hospitality and hosting needs during the conference planning process.
After discussion the committee unanimously approved the room tax budget (4-0).
