In July 2005 the Christiansburg Town Council increased occupancy taxes from 5 to 7 percent. One percent then went to the Montgomery County Chamber of Commerce, which managed the Tourism Development Council.
Council has increased prepared food taxes twice since then, now also at 7 percent.
Are these tourism friendly actions? Business friendly? Certainly not citizen friendly since you don't get a discount card for being a local.
With the Aquatic Center finally opened and apparently well-booked, taxpayers are holding their breath. Will the town's total recreation investments deliver the lower taxes promised ever since the Ten Year Plan was initially introduced in 1995? Even with record public debt for loans outstanding?
Such a claim is suspect when Christiansburg's current budget shows lodging and meals tax revenues fell short of hopes by nearly $700,000 during the last two fiscal years. Adding insult to future fiscal injury may be the town's growing infrastructure demands and an implied 5-cent per hundred increase on real estate tax rates (as forecasted in the 2011-2012 budget).
Last year's one-seventh "tourism tax" should have equated to $107,000 using the town's own numbers. During the budget process; however, a smaller amount was reported and Council voted to unallocate $70,000 of it back. There's still no town tourism plan and these special funds have indeed been "mixed" into all the other spending.
What about the long touted Dixie Boys coming to town, and all the money and prestige this is promised to bring in? Well, go to www.virginia.org and search the "sports" listings. Foul ball! (Obviously some internal disconnect, since another department found this free tool.)
Will Council receive a report of July and August meals and lodging tax collections in September, comparing to earlier years when what's in place now was just a gleam in someone's eye? Because this may be gambling -- or counting chickens before they're hatched -- it would seem prudent to closely monitor these revenues and any in-house tourism or marketing efforts.
What of the regional tourism initiative which had reportedly received $350,000 from all partners six months into that new game in December 2005? According to the town's own numbers, this one-seventh now equals another $340,000 withheld since bailing out of their contract (excluding partnering Blacksburg or Montgomery County contributions).
Unraveling by the 2008 budget cycle, the failed chamber partnership dissolved with the apparent firing a contracted worker (or two). A trial to determine innocence or guilt on related charges has been pushed out to at least November 2010. A regional tourism go-forward partnership plan was a priority ... before local elections, yet not a public peep since.
Tourism, employment contracts, and open government "opportunities" are not unique. In this situation then it appears Christiansburg's failing to plan resulted in planning to fail.
If these games continue can residents still expect lower taxes, as promised?