No immediate increase to CVB funds

The finance committee of the Hillsboro City Council has voted to table a request from the Highland County Convention and Visitor's Bureau for a larger percentage of the "bed tax" the city collects from local hotels. However, committee members say they are open to increasing the funds once they have a better picture of the city's overall finances for 2012.

The finance committee met Thursday in the meeting room of the Hillsboro fire station, and heard from HCCVB director Bob Lambert.

Lambert had requested in January that the city consider increasing the percent it allocates to the HCCVB from the lodging tax, or "bed tax," that is paid by hotel patrons in Highland County.

The bed tax is 7 percent in Highland County, with 3.5 percent going to the city of Hillsboro, and 3.5 percent going to Highland County. The county gives all its revenue from the tax to the HCCVB and the city gives it 12.5 percent of its revenue.

The committee said that 12.5 percent is budgeted to Hillsboro Fire and Rescue to perform inspections of the area hotels. The remaining 75 percent is not earmarked and is put into the general fund.

According to Hillsboro Auditor Gary Lewis, the city received approximately $26,897 from the lodgings tax in 2011, and $3,375 was paid to the HCCVB.

Lambert explained the role of the HCCVB and their increased efforts to promote Highland County, and how funds paid to the organization are like investments for the city.

"(The approximately $3,500 the city pays) is like a drop in the bucket in the general fund," Lambert said. "But to the CVB it's a lot of money. We're a lot more active, and Hillsboro really benefits the most."

Lambert said they receive between $24,000 and $27,000 each year from the county.

The HCCVB is extending their tourism advertising reach, Lambert said, from the approximately 15 area counties they are currently visible in, to Indiana and the Cleveland area.

"We're on the map now, and we intend to stay on the map," Lambert said. "We would like the city to step up it's contribution because Hillsboro really receives the bulk of it's benefits. Let's put (the tax) back to it's intended purpose, which is to promote the county."

For events like the recent Buckeye Crappie Challenge fishing tournament held at Rocky Fork Lake, Lambert said the CVB partnered with hotels. For the tournament, the participants all stayed at the Paragon Inn in Hillsboro, because they had parking that could accommodate boat trailers.

Finance chairperson Pete Pence said, "There is no question what you're doing is important to Highland County and to Hillsboro."

"It's money well-spent by the city," said Lambert.

Lamber told the committee that the director's position is part-time, and that he took a lower wage than the previous director so there would be more funds for the organization to spend on their goals.

"I only get paid for a day and a half a week, though it's a seven-day a week job," he said.

Pence said he agreed that it was "money well-spent," but that he had concerns over the city's current funding situation.

As previously reported in The Highland County Press, the city's general fund is at a 10-year low, with the unencumbered balance at $99,707.49 at the end of March.

The general fund was at $426,218.67 this time last year.

Hillsboro Auditor Gary Lewis has said that in addition to the loss of $126,000 from Paint Township for EMS and fire services, revenue is down because the 2012 contracts allow the remaining townships to pay for their services in split payments, with half paid by June 30 and half by Dec. 1.

Referencing the general fund budget, Pence said, "We've not figured out how we're going to deal with those issues. We can't afford to make additional commitments.

Committee member Dave Shoemaker said he was also concerned about the general fund, but that he was "not opposed to spent money to make money. The more people in the (hotel) rooms, the more money you make. It does come back to us."

Committee member Bill Alexander said that he was surprised the county didn't have a larger intake of funds on the tax than the city did. Lambert said that most of the hotels were in Hillsboro, with the exception of the Yellow Rose Bed and Breakfast, and the Greystone Motel just outside the Hillsboro city limits.

Alexander asked how much of the city's contingency fund of $100,000 had been spent.

Pence said, "It better not have been spent."

Lewis said that nothing had been spent and that the committee and council decides if contingency funds are spent.

"In terms of what we had anticipated in funding, are we on target?" Alexander asked Lewis.

"As of right now, no," Lewis said. "With the fire contract situation, we're doing OK, but that was a big chunk of change. The way the contracts were written, it makes it difficult right now."

Alexander and Shoemaker said that they felt what the HCCVB was doing was important for the city, and they were not opposed to increasing the percentage they receive from the city.

Shoemaker suggested they increase it by 6 percent, so the HCCVB's portion would be 18.5 percent, an increase by approximately $1,600. Alexander suggested the percent come from the portion in the general fund that is not earmarked for the fire department.

Pence said that he didn't want the city to "over-commit" its funds, particularly with money being tight in the general fund. Pence said that he would be in support of the proposed increase, but "why don't we hold off?

"I've talked with the administration and they're working on some things," Pence said.

Hillsboro Mayor Drew Hastings and Hillsboro Safety and Service Director Richard Giroux were not in attendance at the meeting.

Lewis said that the city does not pay the HCCVB until July.

"We'll keep it on the table, and come back to it," Pence said. "I can't in good conscience do anything until we have a more clear picture."

Lambert said that he was satisfied the committee had heard what he had to say and understood the importance of the work of the HCCVB.

"Part of my job is convincing people," Lambert said. "I'm trying to convince people that a day trip to Hillsboro is better than a day trip to Easton."

Shoemaker and Alexander said they would like to contribute more of the funds to the HCCVB when the funds were available.

"We need to make sure we're on solid footing before we take that step," Pence said.