Transient Lodging Tax Committee Work Session Minutes
March 6, 2024
Baker City Hall – Council Chambers
TLTC work session began at 9:00 am.
Members Present: Tyler Brown, Mandy Clark, Alysia Bowers, Brian Vegter, Randy Daugherty, Matthew Koppenhaver, and Chelsea Blatchford.
Staff Present: Jessica Hobson, and Shelly Christensen
Guests Present: Barry Murphy and Ariel Reker
Tyler recommended changing the agenda order making Ordinance Changes first followed by Fiscal Year 2024-25 Marketing Budget.
Ordinance Changes
Shelly advised the Committee that changes in blue are suggested changes from County Counsel, Kim Moiser and changes in red are suggested changes from her as Administrator.
Section1 Definitions - Addition of Transient Lodging Intermediary. Correction to c). typographical error feel should be fee.
Section 2 Tax Imposed - Discussion around change in the ordinance for rate increase from 7% to 9% as proposed by Commissioners. Shelly explained once the Committee creates a draft ordinance it will go to Commissioners for review and changes, to Baker County Counsel for review, then to Cities with Intergovernmental Agreements for their review and approval and finally back to Commissioners for public hearings and approval.
Section 5 Exemptions – City Manager, Barry Murphy, questioned the wording of a 30-day exemption. Brian addressed his questions.
Section 8 Collection, Returns, and Payments – Addition of j). requires online intermediaries to ensure short-term rentals are lawfully registered as operators and possess a certificate of authority.
Section 9 Delinquency Penalties – b). clarification that a report must be filed when no tax is due and the addition of a $50 late report filing penalty. Typographical error in the last paragraph of one-hundred dollars instead of one thousand. f). change to request for waiver of penalty can be made either in person or in writing.
Section 17 Liens – addition of reasonable attorneys’ fee.
Section 24 Transient Lodging Tax Committee – reduce “at large” members from 4 to 3 with the addition of a member from an attraction and a limit of no more than 3 members from the same composition. c) removal of $2,000 limit for execution of annual audit. 6. Change “Develop and oversee the execution of a Baker County Tourism Marketing and Development Plan as part of the Baker County Economic Development Strategic Plan, and make quarterly reports to the EDC on actions and tourism plan progress” to “Develop and oversee the execution of a Baker County Tourism Marketing and Development Plan, and received quarterly reports from the EDC on actions and tourism plan progress” 7. Change “October 10th” of each year, to “April 1st” of each year, the Administrator will notify lodging establishment operators of the rate for the following calendar year. Change “approved” to “recommended” by the Committee in last sentence. g). add more than three (3) meetings and without pre-approval by Chair or Vice Chair. Change “at the next regularly scheduled meeting” to “within 60 days by the Commission”.
Barry asked that the Committee consider changing the allocations on page 16 under Disposition and Use of Transient Lodging Tax Funds to include general operating expenditures for the City. Tyler clarified 70% of TLT funds must be used for Tourism and the remaining 30% can be used at the discretion of Cities or Counties. Currently Baker County allocates the 30% as 25% to EDC and 5% to County Administrative Support. 70% can be used for tourism related facilities but clear evidence must be shown to prove the facility attracts tourists. Randy indicated the City is in the middle of finalizing a proposal to the Committee and the Commission that they will present next week. A grant program could be developed offering matching funds from the 25% EDC allocation to help lodging establishments make improvements to their properties.
Fiscal Year 2024-25 Marketing Budget
Jessica provided the Committee with a draft marketing budget for fiscal year 2024-25 with a comparison to the current fiscal year budget. Cooperative Marketing Baker County and Co-op Advertising lines have been combined at $40,000 and she will change the Co-op Advertising line to Sporting Event Promotion with a budget of $10,000. The Wayfinding expense line is budgeted at $51,590. Her plan is to use that expense line along with Special Projects Unrepeatable line of $50,000 for the kiosk and signs. Tourism Association Membership expense line decreased because EOVA no longer has a membership fee.
Ariel provided the Committee with information on funding for her position as Baker City Downtown Director. She also shared 2022 Oregon Main Street Salary & Budget Survey Results. Chelsea asked if it is possible for TLT to use contingency dollars to help fund Ariel’s position or would the marketing budget need to be reduced. Tyler indicated we can use contingency funds by allocating expenses in the 2024-25 marketing budget. There was discussion around the County entering into another Professional Services Agreement with Baker City Downtown to provide support to Baker City Downtown and all participating downtown cities in the County. Ariel also provided the Committee with BCD’s proposed operating budget and current year income and expense information. Tyler questioned if Baker City Downtown’s function fits into the Baker County Tourism Strategic Plan. A suggestion was made that the Committee update the Strategic Plan. Tyler pointed out the large contingency balance and the need to use those funds according to Oregon statute (HB2267).
Tyler suggested the Committee review the marketing budget and be prepared to discuss ideas to allocate contingency funds at the March 21st meeting.
Work Session ended at 11:20 am
Respectfully Submitted: Shelly Christensen