Published: May 29, 2008 07:54 am         

County board to decide village payoff

By JIM AUSTIN
Cooperstown Crier

Whether the village will be able to collect $100,000 in bed tax revenue is now up to the full county board of representatives. Last week, the county Administration Committee approved a measure calling for the revenue sharing, according to District 8 Representative James Johnson, of Fly Creek.

Johnson is a member of the Administration Committee and also chairs the Intergovernmental Affairs Committee, which approved a similar resolution earlier this month. He called Cooperstown the ``crown-jewel in Otsego County tourism’’ and said he believes it is only fair that the county share some its bed tax revenue with the village.

There was no opposition to the proposal, and discussion centered on how the money would be spent, Johnson said. The county wants to see the money used for tourism-related spending.

Half the money could be spent on tourism-related infrastructure or services that are now part of the village’s budget, and would offer some relief for village property taxpayers. Johnson said the police department and sidewalks were two examples that would qualify. The remainder of the money would be focused on tourism-related projects that would have to be proposed by the village and pre-approved by the county. Once completed, the village would be reimbursed by the county.

Johnson said the county collected $630,000 in bed tax last year, and this will be the first year the new rate of four percent is in effect. He warned, however, that revenue may not double. He said so far this year the county has not seen quite a doubling of the bed tax collections, which may be due to a decline in occupancy rates.

Mayor Carol Waller, who has worked for years to convince the board the village needed help with the costs of tourism, said she was happy the proposal made it through the next step in the process, and planned to attend the meeting on June 4 when it goes to the full Board of Representatives. The county’s apparent change of heart in regard to sharing bed tax revenue may be tied to a letter from Sen. James Seward expressing his concern about how the money was used last year.

Seward wrote to former county board chairman Don Lindberg last June, prior to the state legislature’s approval of the bed tax rate increase. ``The county board allocated funding in 2007 for ‘tourism compensation grants’ and then swept the funding (bed tax dollars) to balance the budget following the budget debacle. What assurance can you provide on behalf of the board that the program will be funded and that bed tax dollars won’t be snared in the future to pay for general fund expenses?’’ the Senator wrote. ``Before the senate approves the additional taxation I would like the county’s assurance that the integrity of the program will be protected and used for its requested purpose.’’ In another letter, this time to Johnson in late April, Seward expressed his support for the proposal that Cooperstown receive $100,000. In that letter, Seward said it was clear to him the additional bed tax money was to be directed toward tourism and tourismrelated infrastructure.

``Several of our county’s communities, Cooperstown chief among them, bear the brunt of tourism stress on municipal infrastructure and programs, from road wear to water systems to strains on municipal police departments,’’ Seward wrote. “... I sought and received assurances from county officials that the funding would be used to enhance tourism in the county and to help with municipal burdens resulting from the increased traffic, public safety, or other infrastructure demands on increased tourism. I sought to avoid the use of bed tax money for government purposes holding a tenuous connection to tourism.’’

In the future, Johnson would like to see Cooperstown and other communities continue to share in the bed-tax funds.

``The bigger goal,’’ HE said, ``is to have some sort of bed tax sharing agreement.’’ He said he would to see the county put in place a mechanism so that communities can get some of the bed tax money on an automatic basis they can count on annually. Johnson is currently working on the basic framework for such an agreement, and hopes to have it ready for the next Intergovernmental Affairs Committee meeting in June.