David L. Lilly: The wrong answer
Monday, October 10, 2011
Is Referendum 2B the best answer for everyone in our community? Are we even asking ourselves the right questions in addressing such a complex issue? Maybe we just need to look at the bigger picture.
Steamboat Springs Referendum 2B: “Shall City of Steamboat Springs sales and use taxes be increased $1,300,000.00 annually … ?”
And then from an article in the Oct. 5 Steamboat Today: “(City Finance Director Deb) Hinsvark said department directors submitted budgets in July, which had to be cut by more than $700,000. She said the cuts primarily would impact Steamboat Springs Transit …”
Now, some might say these two items are not related. But maybe they are. How are our local workers, who were counting on the bus, going to get to work this winter with reduced Steamboat Springs Transit service? What about the skiers who have come to expect excellent local bus service in Steamboat Springs? And what about the late-night bus service that was touted as successful last ski season? Will it be back or will it be cut or reduced as well?
“Airline program is key to our economy … The goal is to use local $500,000 annual investment to get back to 160,000 available seats by 2016 …” (“Our View: Airline program is key to our economy,” Oct. 5 Steamboat Today).
Being a curious person, how will “they” invest the additional $800,000 in annual taxes? If only $500,000 is needed annually to get back to 160,000 available seats by 2016, why are we voting to tax ourselves, and our visitors, to raise more than $1,300,000 annually? And couldn’t some of that “extra money” be used to support continuing and improving Steamboat Springs Transit service?
Why aren’t we voting to increase the lodging tax? It would be paid almost entirely by visitors coming to Steamboat. Do you think they would notice another 1 percent on their lodging bill? That’s probably less than $20 on a $4,000-plus vacation. And won’t the current lodging tax generate much more revenue for airline seats as the economy recovers and people start vacationing again?
Why aren’t we voting on a lift ticket tax for airline seats, Steamboat Springs Transit and transportation services in general?
Now the real question: Are we where we are today because of less winter airline seats being available? Or are we where we are today because the entire economy tanked in late 2008 and has yet to recover to any significant degree?
Based on the information provided, even with fewer seats available, we have been paying for empty airline seats for each of the past three ski seasons. How many of the additional airline seats we would be providing, during this down economy, will actually have butts in them? Just because we provide more seats in the next five years does not mean there will be skiers to sit in them, at least not until the economy recovers and more people are working.
Do we really want to tax ourselves to provide more winter airlines seats while we reduce the number of winter Steamboat Springs Transit seats? Is this really “maintaining our Steamboat lifestyle” as all the ads say?
David L. Lilly
Steamboat Springs
Comments
cindy constantine 1 year, 7 months ago
Thank you Mr. Lilly. I believe that a high percentage of the residents whole hardily agree with you and Ref 2B will not be approved. A private corporation who provides no public accountability of their use of taxpayer dollars is just wrong. And to imply job loss in their ads as a scare tactic is just shameful. The mountain will open as usual despite how the vote comes down and the skiers will come - or not- but the hard pressed locals will pay the tax year around.
steamboatsprings 1 year, 7 months ago
The Air program has total accountability if you bother to check vs just comment in the forums, requires no more overhead to administer the new funds and it one of the most effective ways to maintain and then grow our local economic base which is you live in the real world is key to our Steamboat Lifestyle. Locals will benefit for more than the $20 or so the tax will cost, that is just a couple of hours of work. Much less than would likely be lost if we lose more seats.
FlatIron 1 year, 7 months ago
2B sounds like a "If you pay for it, they will come" Tax. Just because we pay to off set the seats doesn't mean that those seats will come full. Lets face it, Steamboat is a case of inconsistent branding. Without a common, consistent, image its hard to market ourselves.
As we all know snow sell seats and the vibe of the town brings people back year after year. With a mixed sense of direction, in our marketing and self image, how are we truly going to be able to sell our town over any other Ski Town? Whether we vote in favor of 2B or not, the same issues will still stand in our way.
Scott Wedel 1 year, 7 months ago
I have bothered to check and asked where is the money going in the current program. How much is being spent to guarantee which flights and what is the final cost for each flight? City of SS tells me they have no data on the airline subsidy program other that what is released by Chamber/Ski Corp.
When and where are the public meetings where the discussions on where to allocate money are held? There are no such public meetings.
As far as I can tell, the air program is accountable only to the management of the Chamber and Ski Corps.
Maybe it is a worthwhile program. Hard to tell as of now because the numbers given by the Chamber's new CEO are blatantly false. If the guy in charge feels the need to lie to sell the program to the public then why should we trust him running the program?
Regardless, with public funding must come public accountability which means a public oversight board and a public detailed budget.
vanguy 1 year, 7 months ago
It seems to me that the success of tourism benefits a lot more businesses and jobs than just the Ski Corp and the Lodging Companies. Yet, more than 95% of air service funding has come solely from these two groups up to this point.
Most people I know who live in Steamboat (and actually work for a living) seem to understand the direct connection between their paychecks and the dollars spent by tourists.
This culture is why Steamboat has such a great reputation for hospitality, when compared to other mountain destinations. This culture is why visitors come back for repeat visits.
As a community, let us NEVER lose sight of the fact that the paying traveler has a choice whether or not to visit Steamboat. It also never hurts for locals to remind Ski Corp. of this fact every once in awhile.
Air service is our lifeline as a resort community.
If it is a pain in the A$$ to get here, there are certainly more convenient destinations for people to take a ski vacation.
Non-rental second homeowners and timeshare resorts like Wyndham don't contribute any LMD tax revenue because there isn't a lodging transaction involved. Yet, these two sub-groups alone consume hundreds of air seats every week.
And how many VRBO rentals aren't paying their lodging taxes?? The city could make a small fortune investigating this issue...but I digress.
I believe the 2B Tax is a great way for non-rental tourists to contribute to air our service, especially those that use the service and don't currently help pay for it.
Me, personally, I'm voting for 2B.
I admittedly waste at least $20 every week on stupid stuff I really don't need.
I'd gladly give this community $20 a year to help secure air service, if it means that me and my friends will continue to have jobs, maybe even experience some career growth someday.
I'd gladly give this community $20 if it means our businesses can afford to stay open year-round.
Most importantly, I'd gladly give this community $20 so that, as my parents get older, and travel becomes more difficult for them, there is still a convenient and affordable way for them to fly to Hayden and visit their grandchildren from time to time.
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