2021 hotel-motel budget reduced, approved

Putting heads in beds is a big part of the tourism industry.

And putting lodging tax dollars to work promoting La Conner is a big part of the local economy.

As such, disbursing hotel/motel tax funds assumes even greater value during the ongoing COVID-19 pandemic, which led to a frequently spirited discussion during the La Conner Town Council meeting last week.

The Council then approved a 2021 hotel/motel tax budget based on anticipated virus crisis revenue shortfalls.

Several recipients of hotel/motel funding will have to make do with less as Town officials brace for the prospect of sales and lodging tax revenues falling significantly.

“Economists are deeply divided on the 2021 economy,” Town Administrator Scott Thomas told Council in a memo prior to their Sept. 22 video-conferenced public session. “With that in mind, we are constructing the 2021 Town budget assuming a 30 per cent drop in sales tax and lodging tax revenues.

“A 30 per cent reduction,” wrote Thomas, “is not inconsistent with what we have seen to date and so hopefully it’s not wide of the mark.”

The result portends uncomfortable belt-tightening for groups that promote La Conner, most notably the Chamber of Commerce, which relocated from a Morris Street office building to the Fireside Room at Maple Hall last spring to cut expenses.

The Chamber had requested $70,000 for 2021. Council allocated $47,500, a 32% reduction. Still, it was 41% of the $115,000 distributions for next year.

Chamber Executive Director Heather Carter and Skagit County Historical Museum Director Jo Wolfe each raised a bit of a stink, questioning Council members about committing $51,000 to the public restrooms. Council supported this staff recommendation for the First Street facility, which primarily accommodate tourists.

“I don’t think anyone in Spokane says: ‘Let’s go to La Conner, they have public restrooms,” Wolfe said. “It’s not putting heads in beds.”

As with much of everything else in 2020, the answers were tied to COVID-19.

In addition to custodial wages, Councilmember Bill Stokes cited numerous restroom maintenance expenses that are virus related, from extra sanitizing and disinfecting to the cost of replacing stolen toilet paper and removing graffiti.

“It has taken extra money to keep the restrooms open,” Stokes said.

The Town has taken a proactive approach. The public restrooms on Morris Street were closed this summer as a cost-saving measure, replaced temporarily with a large port-a-potty.

Mayor Ramon Hayes termed the Council’s hotel/motel tax revenue agenda item a “good discussion,” a precursor to key and likely challenging budget decisions in the weeks ahead.

One thing appears certain. There will be fewer large capital improvement items on the 2021 La Conner to-do list.

“Budget development,” Thomas said, “is following the normal course and we are currently working with department heads to develop each department’s budget. We will finish up the Maple Hall elevator project, the Waterfront Park wall project, and the Caledonia stormwater project and so we can expect to take a breather next year on capital projects in order to build up reserves.”

In related notes:

*Longtime La Conner resident Joan Cross asked the Council to support U.S. House Resolution 763, a bi-partisan effort to mitigate climate change. Cross outlined the congressional measure in a recent La Conner Weekly News guest column. The Council will formally consider at its next meeting whether to adopt its own resolution endorsing H.R. 763. Terry Nelson, another longtime La Connerite, applauded Cross’ presentation. “It’s a very sensible approach,” he said. “We’re past the debate stage. It’s time to take action.”

*Hayes said the Town is moving forward with Skagit County and The Port of Skagit on plans to light the Rainbow Bridge.

*Thomas will meet with the owners of the strip of land north of the La Conner Schools campus that the Town wants to purchase for its long-sought ring dike project. “I really appreciate your efforts,” Councilmember Jacques Brunisholz told Thomas. “Thank you for going ahead with it. God forbid if we have floods that are as bad as the wildfires.”

*The Council signed an agreement with the Economic Development Alliance of Skagit County (EDASC) for them to manage the grant application and selection process related to awarding CARES Act funding to businesses. A similar agreement is expected with the Washington Department of Commerce.