Glenwood Springs City Council accommodates Tourism Board’s budget request |

Glenwood Springs City Council accommodates Tourism Board’s budget request

John Gardner
Post Independent Staff
Glenwood Springs, CO Colorado

GLENWOOD SPRINGS, Colorado – City Council approved a resolution allowing unspent marketing funds from 2008 to be carried over to the 2010 budget to help fill the void of revenues lost in 2009.

According to City Councilor Matthew Steckler, the request was made for a couple of reasons, the most evident of which was the Tourism Board recognizing that there is likely to be a significant shortfall in revenues for 2009.

“I’m guessing the accumulated shortfall in accommodations tax collections for 2009 will range from $200,000 to $250,000, so the maximum $100,000 roll-over will offset a significant amount of the shortfall,” Steckler said.

Rolling the funds over for use in the 2010 budget will allow the tourism board to maintain a more constant level of advertising, according to Tourism Board Chair Kevin Schneider.

“Were just trying to recoup the loss of accommodations tax revenues, so we are asking for the funds to maintain a budget for 2010 that we had in 2009,” Schneider said.

However, the losses may be too extreme to allow for another budget like the Tourism Board has seen in recent years.

While June 2008 brought in $91,832 in accommodations tax revenues, June 2009 totaled $73,959, a 19 percent decline.

The highest accommodations tax in recent years for June was in 2007 which brought in $95,881. June is typically the third highest grossing month for accommodations tax revenues for Glenwood behind July and August, which are first and second, respectively, over the past five years, at least.

However, the 19 percent decline for June is the year’s lowest single month decline so far when compared to the same time for 2008. January posted a 25 percent decline, while February through May all posted greater than 30 percent drops.

The total amount of accommodation tax collected by the city in a year is split into two different programs. Eighty percent goes into development and implementation of a marketing plan promoting Glenwood Springs, related administrative expenses and operation of a visitors center. The other 20 percent is allocated for tourism promotion grants.

The accommodations tax for 2009 is currently below 2008 levels by $114,904, a 30 percent decline year over year. However, June brought in enough to lessen the yearly deficit by 3 percent, down from a 33 percent decline in May 2009.

With the Tourism Board projecting a year end decline of about 30 percent, it could end the year down approximately $245,000. Glenwood accommodations taxes brought in $815,516 for all of 2008.

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