Last month the Sedona City Council approved the Sedona Chamber of Commerce’s destination services plan, its plan of work and Fiscal Year 2019- 20 budget.
Tuesday, July 9, council and staff did a little housekeeping in terms of how funding for the chamber — which was approved at $2,492,500 — is allocated.
City Attorney Robert Pickels recommended changing the policy in the city’s ordinance under Increase in Bed Tax Proceeds to Destination Marketing and the Promotion of Tourism to reflect the following:
- Only the 0.5% transient lodging tax aka bed tax, which increased through adoption of Ordinance No. 2013-07, shall be devoted to the promotion of tourism.
- 55% of all revenue generated from the combined 3.5% bed tax rate shall be devoted to tourism management.
- The original requirement for allocation of bed tax funds to a contracted destination marketing organization shall be removed.
Council approved the change by a unanimous vote. Councilman John Currivan said the law requires the city to spend 0.5% of the 3.5% bed tax on the promotion of tourism — or one out of every seven dollars brought in through that tax.
“Maybe we do need to say that the 0.5% will be devoted to the promotion of tourism and the remainder of the 55% will be devoted to things related to tourism,” he said. “It’s very clear then in the ordinance that we are intending a broader meaning than what the statutory promotion of tourism says.”
At a January joint meeting between the council and the Sedona Chamber of Commerce Board of Directors, the parties agreed to submit and consider a budget that is built from the ground up rather than built from the estimated 55% of bed tax. It’s also designed to sustain but not to grow existing levels of tourism.
Then in late April, council generally expressed support for the chamber’s proposed budget of $2,492,500. This is $130,500 less than the projected 55% of bed tax for FY20. The $2,492,500 draft budget represents a $316,100 increase from the current of $2,176,400, which was also reduced from the estimated 55% of bed tax for that year.
The chamber “proposed allocating $1,179,950 of the total budget to attracting tourists — generally captured in the quality of the economy program,” a city report states. “Perhaps the most difficult task is speculating about whether the dollars allocated to that program need to be sustained, increased, or reduced to accomplish sustaining, but not growing, existing levels of tourism.
“While there is strong evidence of the positive impact [the chamber’s] marketing efforts have had on economic growth, it is not clear exactly how small adjustments might impact things.”
Ron Eland can be reached at 282-7795, ext. 122 or by email at reland@larsonnewspapers.com
