FUNDING County, visitors bureau duel over money from lodging tax

Commissioners say there's no contract, so there'll be no cash.
WARREN -- Trumbull County commissioners say they gave $266,000 in public money to the Convention & amp; Visitors Bureau from sources other than the lodging tax between 1999 and 2002, and they don't intend to hand over any more.
That's the heart of an answer and counterclaim that Jason Earnhart, assistant prosecutor, filed late Friday to a lawsuit the visitors bureau has filed in Trumbull County Common Pleas Court.
The bureau seeks to claim county lodging tax dollars. Commissioners say the amount they've held back is $159,843; the bureau says it is more.
The commissioners, however, are no longer viewing that $159,843 as lodging tax money -- given the $266,000 sent the bureau's way from three other county funds.
Seeking court support
They seek a declaration from visiting Judge Thomas P. Curran that the bureau has received "all bed tax monies collected that must be distributed to them."
Neither Paul Petrich, chairman of the visitor's bureau, nor Jeff Kurz, the bureau's attorney, could be reached to comment.
The sources of the $266,000 that was transferred to the "motel levy" fund over the years, according to the county auditor's office, are:
UHillside Hospital fund, $84,000, 2001.
UCounty sales tax fund, two transfers totaling $127,000, 1999-2000.
UOther financing sources, $55,000, 2002.
The commissioners had tapped the separate funds in 2001 and 2002 to help with promotions, such as for events at Cafaro Field and for the LPGA tournament.
Because of this, the commissioners ask the judge to declare that the $159,843 "is not bed tax money."
Commissioners and the visitors bureau never agreed on a requested $300,000 budget for 2004. The two boards have been at odds nearly 18 months regarding claim to the lodging tax, and visitors bureau board membership.
Commissioners say they are the appointing authority, but the bureau's board appointed some new members last year. This is a breach of contract in the commissioners' view.
No future obligations?
Commissioners say they view the bureau as a private corporate entity without accountability. They want the judge to determine that they are not obligated to the visitors bureau "in any way, shape or form for any future obligations of funding."
Commissioners have maintained cutting off lodging tax funds effectively ended the bureau's contract and its claim to the cash.
Visitors bureau board members have suggested that the county, which is having financial problems, may be thinking about hiring a firm to promote the county.
The lodging tax in Trumbull County is 4 percent on people staying at hotels and motels. The visitors bureau saw its tax proceeds slashed to $100,000 in 2004.
The bureau had received from the lodging tax $428,530 in 2000; $433,000 in 2001; $359,920 in 2002; and $250,000 in 2003, the commissioners and county auditor say. The bureau disputes this, saying it received less over the years.
The lodging tax was increased from 2.5 percent to 4 percent in January 2004. At that time the visitors bureau was to get 2 percent, until the dispute began.
After discovering the visitors bureau had accumulated $200,000 in a savings account, commissioners, effective May 1, 2004, diverted all 4 percent of the tax to the Western Reserve Port Authority. Commissioners said the lodging tax proceeds shouldn't be used for investment purposes.
The bureau has been operating on its reserves and will suspend operations March 31 but the lawsuit will continue.