The Town Council has decided to expand the scope of its downtown economic development fund.

The council determined it was not the intent of the original council decision in 2000 that the funds be used for economic development or improvement projects outside the general town center.

This has traditionally been considered the area bounded by El Lago, Panorama, Palisades and Fountain Hills Boulevards, as well as La Montana north of Palisades.

A motion by Councilman Henry Leger proposed a 60/40 split with 40 percent of the future funding to be used in the downtown and 60 percent used outside the downtown such as the Shea, Saguaro and north Fountain Hills Boulevard commercial corridors.

Councilwoman Ginny Dickey said she was not “that much” in favor of changing the intent of the council 13 years ago, but she wanted clarification as to how the funding should be used.

Dickey said that in reviewing the minutes of the meeting when the original sales tax increase was approved she believes the intent was clear.

“This indicates they wanted it confined to the downtown,” Dickey said.

Mayor Linda Kavanagh voted against the proposal stating she believes it was the original intent to allow the funding to be used in other areas, making the change unnecessary.

Kavanagh said she discussed the issue with three members of that council, Mayor Sharon Morgan, Councilwoman Sharon Hutcheson and Kavanagh’s husband, John, now a member of the Arizona House of Representatives.

Kavanagh said all three indicated to her they did not intend that the fund be restricted to downtown improvements or economic development.

“They said they were non-specific for a purpose, not wanting to tie future councils to their decision,” Kavanagh said. “Money is very limited, I don’t support tying a specific percentage saying we can’t use that outside the downtown.”

Leger said 13 years is a long time and the best indicator of the council intent at the time is the minutes.

“I think it is clear that the intent was for the downtown, specifically, infrastructure improvement,” Leger said.

“I am sensitive to that commitment, (but) 10 years has passed, we need to look to the future and changing needs.

“We have met their commitment with improvements on the north side of the Avenue, and now the median.

“I propose a motion that honors that commitment (to the downtown) as well as looks to the future.”

Leger added he does not want the funding specifically tied to infrastructure and agreed it could be used for economic development projects.

With Leger’s plan the existing fund balance in the Downtown Fund would remain committed to the downtown. That balance is approximately $2.1 million as of March 31.

The Avenue estimated $1.2 million median improvements will be coming from that fund.

The council voted 4-1 to approve the Leger motion with Kavanagh dissenting.

Beginning next fiscal year the new collections from local sales tax would split the .001 percent 60/40 as Leger outlined.

The change will provide a dedicated funding source for implementation of the recently approved Economic Development Plan.