Chamber of Commerce - HOT Tax Funding

[Adam Benefield]

Council and City Manager,

The law is clear that HOT funds must be administered through a written agreement that defines the scope of services, eligible expenditures, and accountability measures.

While I agree that funds should not be released without a contract, I also believe the City has failed the Chamber by allowing a long-standing relationship to operate without a formal agreement, and without funding since last October. The Chamber went from a reliable source of revenue to none. Allison and her team have done an exceptional job continuing operations, especially given the condition in which the Chamber was delivered to her, but that does not mean they can continue without a renewed and structured commitment from the City.

I believe the appropriate path forward is clear:

• Direct Brad to finalize a compliant contract within 7–10 days.
• Direct staff to conduct a review of submitted expenses, approving those that meet statutory and contractual requirements.
• Any expenses that do not meet those standards should be returned to the Chamber with clear guidance on what is needed, along with the opportunity to provide additional documentation or make necessary corrections. Payments should be processed promptly and retroactively for any expenses that are properly supported.

Adam C. Benefield

 

[Norma Owen]

I appreciate the continued discussion on this and the shared goal of supporting a strong and sustainable Chamber that serves both our business community and our visitors.

I think it’s important to acknowledge two things at the same time. First, the statute is clear that Hotel Occupancy Tax funds must be administered through a formal agreement with defined scope, eligible uses, and accountability measures. Second, it’s also fair to recognize that historically this relationship was not structured in a way that fully aligned with those requirements, and we are now working to correct that moving forward.

Rather than focusing on past practices, I believe the most productive path forward is to put a strong, compliant framework in place that protects the City, supports the Chamber, and ensures long-term success. One approach worth considering is a Master Service Agreement (MSA) that establishes the required statutory framework, financial controls, reporting, and eligible uses, paired with project-specific Statements of Work that allow us to fund tourism-related initiatives in a clear, measurable, and flexible way. The MSA should be drafted to allow reuse with any eligible organization by simply changing the name of the party to minimize legal drafting fees.

This type of structure would allow us to:

• Ensure compliance with State law
• Provide clarity and predictability for the Chamber
• Support funding of tourism-driven efforts that benefit the broader community
• Create a model that can be used consistently with any future partners
  

I fully support continuing to work collaboratively with the Chamber to establish this structure and to identify eligible projects that can be supported once a compliant agreement is in place. The goal is not to limit the Chamber, but to position it for long-term stability and success within a framework that we can all stand behind.