Sonoma County supervisors have whacked more than $1 million from the annual funding awarded to the Sonoma County Tourism program that promotes Sonoma County as an international visitor destination.
The cut reflects a county Board of Supervisors determination last year that the county’s annual tourism promotion spending was much higher than comparable neighboring counties and that some local bed tax revenues would be better spent to mitigate impacts of tourism.
“We have a much better mutual understanding right now,” about the direction the supervisors want tourism promotion funding to take in Sonoma County, said Fifth District County Supervisor Lynda Hopkins.
In looking at redistribution of transient occupancy tax (TOT) revenues, “the board wanted to invest more directly in the community,” said Hopkins.
The $1 million tourism funding cut amounts to about a third of the approximately $3 million in TOT revenue granted to the Sonoma County Tourism Bureau last year.
Besides TOT money, the tourism promotion program also gets about $5 million annually from a 2-percent tax on lodging owners in a designated county tourism Business Improvement Area.
Annual spending of more than $8 million to promote the county as a visitor destination came under scrutiny last year when a supervisors’ ad hoc committee reported neighboring counties like Marin and Napa spend far less than Sonoma County on tourism promotions but nevertheless maintain strong tourism growth and income.
This year the Sonoma County TOT will generate $5 million more than prior years owing to the passage last year of ballot Measure L that raised the TOT to 12 percent, up from 9 percent. The Transient Occupancy Tax is the amount charged to overnight guests in hotels, campgrounds, vacation rentals and registered Airbnb operations.
The $1 million cut means the tourism program’s approximately $2 million in annual TOT support more closely reflects what the tourism program was getting in 2013, said Hopkins’ District Director Susan Upchurch.
Sonoma County’s tourism promotion funding raised some eyebrows last year when a supervisors’ ad hoc committee made up of Hopkins and Third District Supervisor Shirlee Zane recommended the cut in funds granted to the tourism program.
Tim Zahner, the tourism bureau’s interim CEO, has defended bureau expenditures as a good investment
“A one dollar investment [in tourism promotion] equals $85 in destination spending,” said Zahner.
Sonoma County’s tourism industry “has a direct economic impact of more than $2.1 billion annually, and represents more than 21,500 local jobs,” according to the tourism bureau. “Taxes collected from visitors mean $177 million in government revenues, and those funds are used for general funds for government, regional parks, arts and cultural organizations, affordable housing, and public safety.”
The recommended cut followed an audit critical of some Sonoma County Tourism expenditures and the sudden departure last year of the tourism program’s executive director, Ken Fischang.
Fischang, who had served as CEO since 2005, was placed on administrative leave last May, then left his approximately $300,000 post for a job with a smaller tourism bureau in Michigan.
The tourism spending audit noted several areas of concern, “including meal reimbursement receipts with no breakdown of meals and beverages, locally reimbursed meals, charged items of personal nature, and an unallowable cell phone reimbursement,” said the auditor, Sue Goranson.
The SCTB “has reported they have taken steps to address all of the findings, including additional layers of sign-offs, repayment of personal charges, and other internal policy improvements.” said Goranson’s audit report.
Following the audit and Fischang’s departure, Zane said “there’s going to be a need for a lot more transparency in terms of how monies are spent. I don’t think our tourism bureau needs $8 million to operate.”
