F.M. Partners gets more control of tax

Jul 22, 2010 — The Hawk Eye

Nicholas Bergin

Jul. 22, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- FORT MADISON -- Fort Madison Partners -- an economic development group less than a year old -- now will oversee distribution of two-thirds of Fort Madison's hotel/motel tax funds despite opponents' concerns and the objections of two council members.

City council members Tuesday night voted 4-2 to pass a resolution giving the organization control over 68 percent of the pillow tax money.

Council members who voted to hand the funds over were Tim Waggoner, Chris Greenwald, Kevin Rink and Brad Randolph. Voting against the move were Mark Lair and Jason Huppert. Councilman Bob Chesnut was absent.

Randolph, who proposed handing the funds to the group earlier this year, said doing so puts the money in the hands of experts and frontline warriors for tourism and economic development.

"All they're doing is they're trying to figure out how they can maximize the amount of money we're getting in, which to me is the ultimate responsibility to the taxpayers," Randolph said.

Since 2000, the hotel/motel tax has brought in an average of $138,106 annually. Last year, funds amounted to $191,327.

Prior to the vote, Lair argued against handing funds over, saying councilmen would be shirking their responsibility to voters.

"We were voted in here by the people to make sure the tax dollars are being spent right. And if we're going to be giving that up to a private entity, are we going to be doing our jobs?" Lair said. "Are we doing something so wrong (now) we need to change this at this time?"

Since 2006, the money has been allocated 22 percent to Old Fort operations; 10 percent to the Old Fort reserve; 50 percent to the Convention and Visitor's Bureau; 8 percent to the North Lee County Historical Society; 4 percent to the Fort Madison Area Arts Association; and 6 percent to a tourism grant fund. Also, the city maintains a $15,000 balance, which is replenished quarterly by the tax, to provide support to tourism-related events.

The city will continue to maintain a $15,000 tourism fund and retain 32 percent of the hotel/motel tax dollars for operations and reserves of Old Fort Madison, which is what residents originally approved the tax for.

Under the three-year agreement with the city, Partners will maintain funding levels for each group as is for the first year. Both the city and F.M. Partners can opt out of the agreement at any time.

The new arrangement will increase oversight since the funds come with a requirement for the group to provide an annual budget with specific plans for tourism promotion, quarterly written reports of how money is spent, and an annual presentation at a council meeting. Also, F.M. Partners has agreed to give the city two voting members on its board.

Previously, groups receiving funds had only to submit a financial statement yearly.

"This new resolution requires more structure with the money, more responsibility, more accountability with the money than we have ever had," Randolph said.

North Lee County Historical Society Chairman L.D. "Andy" Andrews spoke out against the new resolution and questioned the organization's motivation in taking on the tax funds.

Randolph responded that council members asked Partners to take the funds, not the other way around.

F.M. Partners is the umbrella organization comprised of a partnership of five community groups, including the local chamber of commerce, convention and visitors bureau, economic development corporation, Main Street and Fort Madison Southeast Iowa Regional Riverboat Corporation.

Greenwald said resistance to handing over funds is more about "people protecting their turf," and the groups need to set aside their differences to work toward a single goal.

The city council has pledged to support F.M. Partners, and handing over the hotel/motel money is a show of faith in the goals of that group and its board, Greenwald said.

Newstex ID: KRTB-1064-47197731