County May Cut Employee Pay by 5 Percent, Raise Hotel Room Taxes

Chamber, Hotels Back Legislation for Tourism, Economic Development Funds

November 26, 2009
By: Dave Rogers

Finances are getting tighter even with the financially solid Bay County government.

Bay County commissioners are slated on Dec. 8 to take up the $32.8 million 2010 general fund budget and to consider economies that may include across the board employee pay cuts of 5 percent or more.

Commissioner Ernie Krygier has noted in budget deliberations that the state is considering cuts of 20 percent and suggested the county could cut something less than that. The 5 percent figure has been talked of as a reasonable figure for reductions, officials said privately.

Meanwhile, the commission's ways and means committee meets Tuesday at 4 p.m. to receive a proposal from Annette Rummel, interim director of the Bay Area Convention and Visitors Bureau, for the increase in the hotel-motel tax from 2 percent to 5 percent.

A change in state legislation to allow the tax for communities the size of Bay City and Bay County would be required to raise the tax. No estimates of the amounts that would be raised under the new tax were provided in the proposal.

Mike Seward, Bay Area Chamber of Commerce president, and two hotel leaders have sent letters of support for the law change and the tax increase.

Seventy-five percent of funds raised from the room tax hike would go toward regional marketing while 25 percent would be allocated to the Bay Area Convention and Visitors Bureau.

Mr. Seward amplified: "We understand that not less than 75 percent of the tax funds collected will be forwarded to the authorized Convention & Visitors Bureau for the purpose of representing our specific destinations and the Great Lakes Bay Region to help foster the long-term development of communities through a sustainable travel and tourism marketing strategy."

"Our organization fully expects that the Convention and Visitors Bureau will create a marketing plan to bring motor coach business, conventions, meetings and conferences, sports events and trade shows to the Great Lakes Bay Region and to the County of Bay," wrote Mr. Seward.

Kelly Dee, area manager of Americinn and chair of the Bay CVB, also backed the proposal along with Bay Valley Resort & Conference Center general manager Patrick Campbell.

"Our facility expects that the Convention & Visitors Bureau will conduct continuing activities to position Bay County and the Great Lakes Bay Region as a desirable tourism area," wrote Ms. Dee.

County Treasurer Rick Brezezinski would administer the countywide tax with an administrative fee of not over 5 percent, according to the proposal.

A $750 per quarter tax credit would be provided for lodging properties, a factor Mr. Seward sees as positive for additional chamber memberships that would be an eligible expense for the credit.

The proposed 2010 county budget does not include a $50,000 appropriation for Bay3TV, the government-education cable television channel.

Continued operations of the channel may be in jeopardy since Charter Communications has suggested a change from Channel 3 to Channel 99, a move that has drawn objection from City Manager Robert V. Belleman. The city and the Bay City Public Schools, along with the county, have been partners in the project for the past 15 years.

County officials have been asked to plan "budget reduction targets for 2010" and submit them to the finance department by March 31, 2010 for action at the May 2010 meeting.