On Wednesday, July 23, the Archuleta County Board of County Commissioners (BoCC) held its second community listening session, providing the opportunity for members of the public to give feedback and suggestions on a potential ballot measure to increase the lodging tax in unincorporated parts of the county.
The county currently has a lodging tax rate of 1.9 percent and the Town of Pagosa Springs has a lodging tax rate of 4.9 percent.
Commissioner Veronica Medina explained that under the Colorado House Bill 24-1247, concerning the expansion of county lodging tax, the highest rate the county could impose is 6 percent.
Public comment started with community member Bill Hudson, who claimed “the lodging industry is apparently making three times as much money as they were in 2012,” explaining that, according to data from Visit Pagosa Springs, the lodging industry generated $416,000 in tax while last year’s numbers were predicted to be at $1.4 million.
Hudson also provided information on average home prices in the Pagosa Lakes Property Owners Association during those times, claiming that in 2012 a single-family home in that area cost less than $200,000 and is now going for more than $500,000.
He also stated that, according to the recent housing needs assessment adopted by the county and Town of Pagosa Springs in April, only one-third of community residents could afford a $320,000 home.
Hudson commented that a “weird thing” is going on in the community where there is a “really successful” lodging industry and a “horrible situation for the workforce.”
He went on to reference a chart, noting that it focuses on using additional lodging tax revenues on road improvements and maintenance.
“I don’t think roads are three times as worse of a problem that we had in 2012,” Hudson said, in reference to the county’s roads while noting the Road and Bridge Department has been doing a “fantastic job.”
“This community is not taking care of its workforce,” Hudson added, urging the commissioners to dedicate some amount of lodging tax funds toward workforce housing.
According to the bill summary from the Colorado General Assembly, the expanded use of lodging tax funds can include public infrastructure maintenance or improvements, or enhancing public safety measures by funding local law enforcement, fire protection services and emergency medical services.
Medina commented that she has expressed wanting to use lodging tax funds for infrastructure, and workforce housing as another option, and give “some money to emergency medical services.”
She noted that the county will have to specifically say what the lodging tax funds will be used for on the ballot question.
“I’m certainly an advocate for housing,” Commissioner Warren Brown said, adding that the only way a ballot question will pass is if it is kept as simple as possible.
Brown mentioned that roads affect all income levels as everyone has to use them, noting the county has pulled money from its reserves over the past five or six years in order to address road needs.
Brown added that if the county doesn’t continue to keep its roads “proper,” it’ll end up back in the same situation.
He also mentioned that “a lot of effort and money” has gone into workforce housing recently, noting those efforts should not stop either.
Brown then mentioned the county needs to focus on two things — being roads and public safety — “because both of those it doesn’t matter what your income is, you need both of those.”
Brown commented that he was appreciative of the input, noting he’s “not married” to the idea, but that when ballots are brought to voters, “I think we have to be very specific.”
Commissioner John Ranson commented that he didn’t think any of the commissioners were looking to use additional lodging tax funds solely on roads.
Ranson explained that the county’s road fund balance has gone from approximately $9 million down to $2 million in the last four years, noting it needs to be replenished with “some kind of revenue stream.”
Ranson commented that, otherwise, it leaves the county with no other option than to keep pulling from the general fund.
“The piggy bank’s not big,” he said.
In response to a question from the audience, Medina explained that it is her preference “that we go to ballot this year.”
She added that “it is a necessity” for all the reasons previously discussed.
“Where we as elected officials historically have failed is not taking the time to thoroughly educate the community and to have community stakeholders involved in moving this forward,” Brown said, explaining that timing has to be right when going to the ballot.
He noted that the county may have a better chance of successfully passing the ballot question “if we put the time in” and educate the community on what is being asked.
“I think that we shoot for the ballot next year,” Brown said, noting that the process needs to start soon.
Ranson explained that during his meetings with Colorado Counties Inc., it appears that lots of counties across the state are considering the same thing, but that only a few are planning to go to the ballot this year.
Ranson mentioned that he “likes” the concept, “but I think we’re too late for this year” and that if it fails the first time, going back to the ballot for a second time would be even more difficult.
“That usually doesn’t bode well,” he said, noting that other entities in the community like the Archuleta School District may also be going to the ballot next year.
Ranson also mentioned that he would like to do a survey of the community to gauge the appetite for raising the lodging tax.
“I’m right in there,” Brown commented, mentioning there is no need to go to the ballot if the community has no appetite for approving it.
Ranson commented that the county will need to do the same thing for its new administration building.
Hudson suggested the county could invite members of the community to be on a committee to focus on the matter, indicating that might encourage a larger turnout.
Medina then mentioned that she’s spoken with people in the community who have expressed both “pros and cons” on the matter.
One audience member commented that the Road and Bridge Department has not been expanded in quite some time, with Medina noting it has been 30 years.
The audience member suggested that if the community knew that the Road and Bridge Department hasn’t been expanded it would realize “it’s not our taxes going to that.”
The audience member also stated that raising the lodging tax rate is a way to get tax money into the Road and Bridge Department “without having it impact your wallet.”
Brown then explained that every year the county receives rural school monies from the state based on a federal formula that helps fund schools in communities with rural land.
He noted that every year he has been on the BoCC, it has delegated the entire amount to the school district and explained that the county could keep a percentage of those funds.
Brown went on to explain that the tourism industry is starting to be referred to as an “extraction industry,” meaning visitors come and spend money, but they also use the local infrastructure and generate trash, “and this is a way of funding maintenance, repair for that extraction in a number of ways, particularly the roads that we’re looking at here.”
Hudson then commented that the county approving the formation of PLPOA without making it create a metro district was “a big mistake.”
He mentioned the county “could try to repair that mistake that was made by telling PLPOA, ‘Form a metro district if you wanna take care of your neighborhood roads.’”
Hudson also claimed the county has enough money to take care of the main roads, “but the county can’t afford to take care of all those neighborhood roads.”
Jesse Hensle spoke next, commenting on the tourism industry being referred to as an extraction industry and asking if the county has specific roads earmarked for maintenance or improvements with the additional lodging tax funds that would be collected.
Brown answered that he was unaware of any “large picture drawn up” and explained the county had a committee for roads that had come to an end.
Ranson suggested the BoCC hold a retreat to go through budget matters, noting, “We’re more fortunate than other counties.”
He explained that if the county can find some savings and apply it to roads, “We have to address them.”
Hensle questioned how much tourists actually use and impact the county’s roads, suggesting it is mostly the constituents that use them.
Brown provided data in regard to calls received by the Archuleta County Sheriff’s Office from July 3-6, claiming the agency received 179 calls during that time, and 74 percent of those calls were from numbers the agency has never received before.
He mentioned that, to him, that data suggests a very “high number of people coming in and extracting those services.”
Brown added that “it doesn’t matter” what level the issue was.
“I think that’s pretty significant,” he said.
In response to a question from the audience, Medina explained that the county is trying to leave the tourism board and Tourism Executive Director Jennifer Green “out of this conversation,” and that if it goes to the ballot it is because it’s “what the people want.”
Medina also explained that the majority of the county’s lodging tax comes from short-term rentals.
“They do explore the county as a whole,” she added.
Green, who attended the session virtually, stated, “I want to be Switzerland on this matter, and I think it’s in the best interest of the tourism board to have that stance, as well.”
clayton@pagosasun.com
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