Later this month, Lane County Commissioners will decide on a strategy to prevent job cuts in their already struggling public safety system. Their options are significantly spending down their reserves, or tapping into a fund that was originally collected to promote tourism.
According to budget documents, Lane County staff proposed using $4.8 million in lodging tax dollars to avoid job cuts at the sheriff's office, which is already understaffed.
President and CEO of Travel Lane County Samara Phelps testified against the proposal at a budget hearing Tuesday. She told commissioners that when they increased the tax four years ago, they promised to invest the proceeds back into projects that would attract visitors.
"Hoteliers and industry supported the increase because it was dedicated to addressing that long identified need,” Phelps said, “setting the county on a path for the first time in decades to build a facility that generated visitor spending."
Phelps said her organization has already done extensive planning work on a proposed indoor sports facility aimed at attracting winter visitors. The county has heard several presentations on the issue, but has not yet formally voted to allocate funds for the project. The project also doesn’t have a confirmed location.
Brian Obie, a former Eugene mayor and developer behind the 5th Street Market District, also spoke out against using lodging taxes to balance the budget.
He said his businesses have contributed a significant amount of hotel taxes. He argued using that money for anything other than its intended tourism purpose was a bait and switch.
“I gave you my trust and I really plead for you not to violate it,” Obie said.
Lawmakers loosen restrictions
Cities and counties could previously only tax hotel stays if they used most of the revenue on tourism promotion.
Local governments lobbied the state for years to allow them to use the money to recoup the burden tourism puts on public services. Lawmakers agreed, loosening restrictions this spring and allowing local governments to use up to 50% of those taxes on other budget needs.
Lane County Sheriff Carl Wilkerson told commissioners that if they don’t come up with a solution, he would lose 12 positions. Those include detectives working to solve property crimes and internet crimes against children. The sheriff’s office would also have to cut patrol, especially in rural areas, and may no longer have someone on duty 24/7 to respond to calls.
Lane County Administrator Steve Mokrohisky said the county does have a long-term process underway to find funding for public safety. Any solution from that work, however, wouldn’t be done in time to preserve staffing at the sheriff’s office in this budget.
Mokrohisky said if the commissioners pulled enough money from reserves to close the gap in the sheriff’s office, it would likely put them below the 20% level required in their own policy. According to the county’s policy, that contingency requirement is designed to preserve the county’s bond rating, and allow the county to still provide services in periods of economic disruption or other emergencies.
“You can go below that, but it starts to put the county at greater risk,” Mokrohisky told commissioners.
Commissioners weigh in
Lane County Commissioner David Loveall said he agreed with Obie’s testimony, and was concerned that using tourism dollars would further erode public trust. He said he also believes the potential for such significant staffing cuts at the sheriff’s office is an emergency.
“I think this warrants a reserve dip into the funds to keep the sheriff’s office whole,” Loveall said.
Four out of five commissioners voted to ask county staff to research what it would take to use reserves instead of lodging taxes. They’ll consider both options in a final budget vote scheduled for June 23.
Laurie Trieger, the only commissioner to vote against considering using reserves, said the county’s main priority should be preserving basic services.
"There is no specific project that has been named that this is taking away from,” Trieger said. “But if we don't spend this money we are, in my opinion, being derelict in our duty to address critical public needs around public safety."
County staff are still making changes to incorporate additional new information into the proposed budget. The most recent version did include job cuts outside of the sheriff's office: approximately 15 full-time equivalent positions county-wide.
If the county doesn’t come to an agreement with Sanipac’s parent company waste management to resolve lost fees, this budget will also result in the closure of three transfer stations and increase fees at remaining stations.
The proposed budget would also commit lodging taxes to tourism. Roughly $11.4 million would go toward tourism promotion.
