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88 Regular Meeting August 22, 1983 Page 3 AYE: Brown, Farr, Guerra, Craddock, Kissler. NAY: Kreczmer. ABSTAIN: None. Mayor Craddock announced the Council would hold an Executive Ses- sion at the end of the agenda before the question and answer ses- sion with the press and public pursuant to Article 6252-17, §2 (e) , V.A.C.S., to discuss contemplated litigation. Mayor Craddock introduced for consideration approval of an Ordinance on first reading, the caption which was read as follows: AN ORDINANCE OF THE CITY OF SAN MARCOS, TEXAS, AMEND- ING ARTICLE II OF CHAPTER 26 OF THE CODE OF ORDINANCES OF SAID CITY TO DEFINE TERMS; TO INCREASE FROM FOUR PERCENT (4%) TO SEVEN PERCENT (7%) THE TAX UPON THE COST OF OCCUPANCY OF ANY SLEEPING ROOM FURNISHED BY ANY HOTEL IN SAID CITY WHERE THE COST OF OCCUPANCY IS AT THE RATE OF TWO DOLLARS ($ 2) OR MORE PER DAY; TO PROVIDE THAT ANY REVENUES FROM A TAX IN EXCESS OF FOUR PERCENT (4%) OF THE CONSIDERATION PAID BY AN OC- CUPANT OF THE SLEEPING ROOM TO THE HOTEL MAY ONLY BE USED FOR CONVENTION CENTER IMPROVEMENTS, FACILITIES AND PERSONNEL FOR THE REGISTRATION OF CONVENTIONEERS AND ADVERTISING AND PROMOTING THE CITY; TO PROVIDE THAT NO MORE THAN ONE PERCENT (1%) OF THE CONSIDERA- TION PAID BY SUCH AN OCCUPANT MAY BE USED FOR THE ENCOURAGEHENT, PROMOTION, IMPROVEMENTS AND APPLICA- TION OF THE ARTS; TO AUTHORIZE ENFORCEMENT ACTIONS BY SAID CITY TO CLOSE DOWN HOTELS DELINQUENT IN THE PAYMENT OF SAID TAX AND DECLARING AN EFFECTIVE DATE. Mr. Brown moved to approve the Ordinance on first reading and Ms. Kissler seconded the motion. Merrill Peters, Manager of the Ramada Inn, said the tourists would see the tax increase as an increase in room costs, and that it would definitely affect business. He stated he wanted the Council to consider increasing the rate slowly rather than to the maximum allowed all at one time. Chuck Vaulle of the Holiday Inn, D. Wyatt of the Manor House Inn and Chenricka Arnein of the Shafer Motel all agreed with Mr. Peters that the increase in tax would affect how many rooms they would be able to rent, and that there would definitely be a decline. Mr. Peters stated he would bring more information to the Council for their consideration at the second read- ing of this Ordinance on September 12, 1983. The Council voted unani- mously for approval of the Ordinance on first reading. Mayor Craddock introduced for consideration approval of an Ordinance on first reading, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING SECTION 29-122 OF THE CODE OF ORDINANCES OF SAID CITY TO ADD STOP SIGNS AT THE INTERSECTION OF WOODS STREET AND COMANCHE STREET IN SAID CITY AND DECLARING AN EFFECTIVE DATE. Mr. Farr moved to approve the Ordinance on first reading and Ms. Kiss- ler seconded the motion, which passed unanimously.