Members of the Lodgers’ Tax Board reviewed its $450,000 annual budget and how that money is spent at its Tuesday night meeting attended by 20 local business owners and citizens.
The Lodger’s Tax Board oversees a certain portion of revenues that are collected from a tax that is charged to guests who stay overnight in Tucumcari’s motels and hotels. The tax is 5 percent of the room rate.
A large portion of the budget is dedicated to paying off the construction debt to build the Tucumcari Convention Center and the operation and maintenance of the center, according to a financial report presented by the city’s finance director, Marty Garcia.
Based on annual payments of $159,993 to repay the bond issue, the city will be able to retire its debt of $4.3 million in the year 2021. The city has already paid off about $2 million of that debt.
Area business owners brainstormed with board members on ways to promote and increase overnight stays by tourists and increase local revenue.
Some of the ideas submitted included the need for an updated event calendars on Web Sites and radio advertisements on events happening in Tucumcari that would reach the travelers before and while they stay in Tucumcari.
Applications also were handed out to interested parties seeking promotional funding from the Lodgers’ Tax board. For example, the Lodger’s board has given money to non-profit agencies, such as sponsors of the annual air show, rodeos, road ralley and other events to help increase attendance to events.
For the upcoming funding year, there are new requirements for applying for the funds that are outlined in application packets, said Diane Morency, president of the board.
The deadline to submit applications is May 6. The allocation of the funds for fiscal year 2008-2009 will be determined at the next meeting on May 13.
Tucumcari’s Lodgers’ Tax Annual Budget
$450,451 total (includes interest and late fees)
These funds are allocated to the following categories:
l Advertising/Promotion $1,200
l Contract services $2,500
l Administration fees $10,000
l Promotion $225,000
l Convention Center Capital Improvement $8,425
l Convention debt service $159,993
l Total: $407,118
The remaining $43,333** is allocated to the Tucumcari Convention Center operation and maintenance
The promotion budget category is boosted by a state match which brings it to $247,951
Expenses paid from this category:
l $151,291** to Convention Center
l $45,086 for billboards (Some of these funds can be reimbursed through a state program)
l $47,574 is the sum remaining for promotion of local events.
Convention Center total operating budget category
In this category the funds originate from:
l $42,500 revenue generated from conventional rentals, sales, etc.
l $43,333 from Lodger’s annual budget
l $151,291** from Lodgers’ Promotion
** Indicates funding source for convention center operating budget
Lodgers' Tax Board reviews $450,000 annual budget
Published: Wednesday, March 12th, 2008
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