During an Archuleta County Board of County Commissioners (BoCC) work session on Tuesday, Aug. 11, County Manager Longinos Gonzalez presented multiple ballot language options relating to potentially increasing the county’s lodging tax, and identifying what those additional funds would be spent on.
Gonzalez explained that the BoCC has been discussing this matter for several months as an idea to help fund and support “local issues and projects.”
Gonzalez noted the county hosted multiple forums over the past few months, receiving feedback from constituents on if they would support raising the lodging tax rate and what areas they would like to see that money be spent on.
He indicated that the majority of the feedback received from those forums suggested that there is support to raise the lodging tax rate up to 6 percent.
Questions were later raised as to if the county currently has a 1.9 percent lodging tax rate, or if it is currently set at 2 percent.
In previous meetings, the commissioners have stated that the lodging tax rate is 2 percent, and other times have stated it is 1.9 percent.
County Attorney Cathleen Giovannini indicated that staff will look into the matter.
As for the certain areas in which the extra lodging tax funds would be used, Gonzalez explained that the feedback from community forums was “overwhelmingly” for it to be used on maintaining county roads, followed by public safety and then child care services.
“Those are the top three,” he said.
According to House Bill 1247, “Subject to local voter approval, the act increases the maximum allowed rate of a county lodging tax levied on the purchase price paid or charged to persons for rooms or accommodations from 2% to 6% and expands the allowed uses of lodging tax revenue to include:
“Public infrastructure maintenance or improvements; or
“Enhancing public safety measures by funding local law enforcement, fire protection services, and emergency medical services.”
Gonzalez then explained that, based on the community forum feedback, staff drafted potential language identifying specific percentages of the additional tax funds that could be dedicated to each of those three uses.
He noted the plan is to present a resolution to approve specific ballot language at the BoCC’s next regular meeting at 1:30 p.m. on Aug. 18 in the commissioners’ room at 398 Lewis St.
Gonzalez presented three ballot language options, noting, “any of these can be changed.”
He explained that staff referenced House Bill 1247 for guidance, along with several other counties that went to the ballot last year, with some passing and others failing.
Gonzalez also explained that the county lodging tax would not be applied to lodging establishments operating within the Town of Pagosa Springs.
“This would not be applying to the Town of Pagosa Springs. They have their own lodging tax,” he said.
Gonzalez also provided information on the projected additional funds that would be generated with a 6 percent lodging tax rate.
He explained that last year’s numbers from Finance Department showed about $540,000 being generated with the 2 percent lodging tax rate.
According to the drafted potential ballot language shared by Gonzalez, the additional 4 percent lodging tax would generate an additional $1,080,000 for the county.
Commissioner Veronica Medina asked for clarification on if funds generated from the county’s existing 2 percent lodging tax rate would still be dedicated for marketing and advertising purposes.
Gonzalez indicated that is correct, mentioning that is part of the reasoning for including specific ballot language about the projected increased revenues.
Medina then asked about the proposed percentages of the additional lodging tax dedicated to road maintenance, child care and emergency services.
“I know that there’s a discussion,” she said, asking if the commissioners want to dedicate 80 percent of the additional funds to road infrastructure, 10 percent to child care service and 10 percent for emergency services in the county.
Medina noted that roads are one topic that the commissioners constantly hear about from constituents and staff members, suggesting that she could support dedicating 90 percent of the additional funds to road infrastructure and dedicating 5 percent each to child care and emergency services.
Medina also explained that previous presentations from Department of Human Services (DHS) Director Heidi Martinez indicated that there might be funding reductions and limits from the state for local DHS services.
Medina suggested that “might be an easy way” for the county to put more money toward DHS services, explaining the county’s DHS provides funding for child care services in the county and that “goes to the workforce of the community.”
Commissioner John Ranson mentioned that he agreed with Medina in supporting specific ballot language that is shorter and more digestible for voters.
He also commented on the dedicated percentages of the additional funds, suggesting the 80 percent for roads and 10 percent for both child care and emergency services came from community feedback at the public forums.
Medina asked for clarification on if those percentages were taken from specific community feedback, or if it was something that staff came up with.
Gonzalez explained that he received personal feedback about dedicating 80 percent of the additional funds for roads, but not for the 10 percent for child care and emergency services.
“But both were almost tied,” Gonzalez said, explaining he felt that was appropriate based on the feedback.
Commissioner Warren Brown also commented that he supports a “shorter version” of the ballot language.
He also noted that the funds generated from the current 2 percent lodging tax have been spent in compliance with marketing and advertising requirements.
“We need the roads, but I also know that we need help elsewhere, and I know those monies will not go to waste in those various two,” Brown said, explaining that he would support 10 percent of additional funds generated to go toward child care services and 10 percent for emergency services enhancements.
In response to a question from Brown, Gonzalez also clarified that the additional lodging tax funds would not be going directly to the town.
clayton@pagosasun.com
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