Christiansburg Town Council last raised the lodging/occupancy tax rate from 5% to 7% effective July 1, 2005. They were asked to do so for just 1% by the local chamber of commerce and several members of this industry, as a no-cost way for the town to participate in a coordinated and professional regional tourism initiative.
The contract between the chamber (which oversees the regional tourism group and includes the county and Town of Blacksburg as partners), and Christiansburg was not finalized until the spring of 2007.
Whether due to additional tourism marketing at a state or regional level, whether due to general tourism trends, whether due to the 2% increase -- the town manager started tracking and segregating the amounts collected from this one revenue stream for council.
Not the amount of money the 7% tax generated overall, rather the amount of money -- one percent -- it handed over to the tourism group. Although they had not given direction to the new group, and although they had a staff member serving as a liaison to both the tourism group and a council member assigned as a chamber liaison -- council was displeased.
During the 2008-2009 budget process, council decided to retain some portion of that one percent for itself. It needed to "promote" town events and the town, too, and could use those funds. Never mind the other 6% it already collected from lodgers or the huge amounts collected via meals taxes (one of the highest in the state). The town was, you know, getting ready to open a new aquatic center and needed to advertise that, along with its new baseball park.
So the contract's six month notice of non-renewal went into effect, or the chamber could just accept 85% of 1 percent and sign a new contract. But the town would still expect the same level of service as before, even if no one knew exactly what the town wanted (other than the full 1% being used to promote Christiansburg, instead of regional or collaborative efforts).
For some reason, this contribution to a regional effort was segregated and highlighted for council to see during the monthly process where the Mayor proclaims "Pay the bills, Mr. Terpenny." By our calculations, the total sum which is to be handed over for regional tourism will amount to about $450,000 since mid-July, 2005.
But remember, this only represents one-seventh of the lodging taxes collected and turned over to the town by local hotels and motels and bed & breakfasts. The town already gave itself about $2.7 million from lodging taxes during this same time period.
During council discussions on this matter, new council member Jim VanHoozier said he'd like to see the town's tourism or marketing plan. He was told there wasn't one but he would be provided with a list of the town's past marketing efforts. Apparently, everyone is still waiting to see that information, just like we're waiting for a business plan for the aquatic center (and business plans generally do include a budget and marketing plan).
Now that we're on this subject, where's the business plans for the town's other enterprizes (revenue generating activities), including the Rec Center, Harkrader Sports Complex, and water/sewer/garbage services? As Council member Ann Carter adroitly pointed out, council pays for memberships which provide such expertise -- and then there's those two neighboring universities with all the resource they can offer.