During a work session held by the Archuleta County Board of County Commissioners (BoCC) on Tuesday, Sept. 22, the board heard a presentation from the Pagosa Lodgers Association and its proposal for how current county lodging tax revenues are used and where they’re directed to.
The Pagosa Lodgers Association was represented by John Harper and Kelly Spence.
“Over time questions have been [raised] about transparency, accountability and about how the effectiveness of tourism marketing dollars can be clearly demonstrated,” Harper said.
He explained that the association’s proposal is intended to address those concerns and provide “strong oversight and clearer reporting into the structure from the beginning.”
He added, “We’re not here proposing a different proposal for these tourism dollars. We’re proposing a structure with clear accountability, professional execution and measurable results.”
Harper stated that the association was proposing a structure in which the county can see where funds are going, what was done with those funds and what the results were.
“So, that’s why we’re here,” he said.
Harper explained that the “purpose” of the lodging tax funds wouldn’t change, but that part of the proposal included the county approving an advisory committee.
Currently, 2 percent of county lodging tax funds must be used on advertising and marketing efforts, based on a previous voter-approved ballot measure.
The county has approved a new ballot measure for voters this fall to decide if the current lodging tax rate of 2 percent should be raised to 6 percent, with those additional funds to be spent on county infrastructure, emergency services and child care programs.
During the work session, Harper also explained that the proposal would include having the Pagosa Springs Area Chamber of Commerce “keep the books” and hire a marketing firm through an open bid process.
According to the presentation, the committee would comprise four lodgers, one Chamber representative, one county commissioner and one “other tourism business.”
“What changes is how the program is carried out and how the results come back to you” Harper said.
He noted that the proposal is to operate like this for one year and come back to the BoCC for it to assess the situation and decide whether to keep going with the new system or not.
“Our goal is simple — it’s to bring more visitors to Pagosa,” Harper said, explaining that creating more overnight stays during the mid-week and shoulder seasons can lead to more spending by visitors.
“These are county funds under county-approved oversight. No single organization controls the money, the plan or the results,” Harper said.
Spence provided details on how the approximately $525,000 in county lodging tax funds would be spent on year one, with $211,000 going toward advertising to travelers who live outside of the county.
According to the presentation, $88,990 would be spent on hiring a marketing firm, $77,000 would be spent on program management or a “contract manager who runs the day–to-day,” $69,000 would be spent on websites and tracking, $52,500 would be given to the Chamber for accounting fees and $26,510 would be held on contingency.
The presentation also notes, “Year one also carries about $72,000 of one-time start-up cost. In year two, advertising rises from 40% to 54%. The request is a share of the tax, so the program grows or shrinks with what the County collects.”
Spence went on to explain that “transparency is our goal” and that the lodgers’ association wants “everyone completely involved.”
Commissioner John Ranson expressed support of the proposal, stating that he’s “been an advocate of this … for a period of time,” and that he believes firmly that having tourism and the lodgers’ association working side by side would be a “big plus” for the community.
In response to a question from Ranson, Harper stated that the lodgers’ association wants the county involved and that it’s “not about the lodgers; it’s about the community.”
“I’m all for this,” Ranson said.
Ranson then asked if it would be possible to accommodate the association’s proposal in phases and only commit half of the lodging tax funds with the other half still going to the Pagosa Springs Area Tourism Board, “so we don’t cut them off immediately.”
“We would need … that full amount,” Spence said, explaining the lodgers are asking for that “as we see we can place that money in the appropriate programs to get the results that I think we’re gonna need.”
Spence also noted that could be discussed with Jesse Hensle, stating he is the “brains” of this idea.
Hensle currently sits on the tourism board as the lodgers’ representative.
“It has been discussed, but when it comes down to it, I think it’s vital that we maintain that full amount to really get the results that we’re gonna need,” Spence said.
Commissioner Veronica Medina commented that this conversation has been going on “for a long time,” noting it as “very unfortunate, because again we have two organizations really working against each other, not with each other.”
Medina explained that she hoped once the lodgers’ association had a representative on the tourism board that things would improve, “but it seems like that the disagreement has still continued.”
Medina went on to explain that she views the proposal differently, in that “this money is really going to be going towards, not the whole community, it’s going to be going to one organization.”
“We have a bigger tourism market,” she added, while noting that lodgers are “very important.”
She noted that the BoCC recently went through a “rigorous rewrite” of the tourism board’s memorandum of understanding.
“And it was stated very clearly that the BoCC did not want any of that money to be spent on personnel,” she said, noting that about $218,000 would be spent on fees and employees with the association’s proposal.
“So, that’s half the budget,” Medina said.
Medina also expressed that she feels it’s “very clear where the money has went” with the way county lodging tax funds are currently handled through the tourism board.
Medina then expressed that the Chamber recently promoted a giveaway for a business in Durango.
“In all due respect, that has nothing to do with us and I don’t know why it’s being brought up,” Spence said.
Medina also asked if the lodgers’ association is willing to contribute any funds for the proposal, “Or just these dollars is all you want?”
Harper then commented that the association could use some time to think over concerns and questions brought up by Medina.
He also indicated that the association feels that there has been a lack of transparency and accountability with the tourism board in the past.
“We feel a little differently about that,” he added.
Medina also commented that the proposal would strip away funds that are used for other things in the community, noting that approximately $150,000 is awarded in event funding by the tourism board annually.
“All of that has a real impact for the whole community. It’s not just about the lodgers; it’s about the whole community,” she said.
Medina also expressed that she’s witnessed “heated arguments” about this topic, calling it “disheartening.”
Medina noted that the tourism has consistently asked the lodgers for “certain things — those things have not been given.”
She commented that the association’s proposal would be a “huge divide” in the community.
“It doesn’t make any sense,” she said.
Commissioner Warren Brown expressed optimism about the association’s proposal, stating that he appreciates when people in the community are seeing something not working for them and come up with a plan to improve it.
“I think it could make it better,” Brown said, noting he is unsure if it would actually happen, but added that the proposal has “real potential.”
Brown also commented that there has been “frustration” on all sides with the tourism board and the lodgers’ association, expressing that the situation might be better now than before, but there’s still “quite a bit of room for growth.”
clayton@pagosasun.com
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