For the week of August 5 thru August 11, 1998  

Ketchum increases chamber funding


By KATHRYN BEAUMONT
Express Staff Writer

waller.gif (13228 bytes)Stepping up to the challenge held forth by their neighbors to the east--not to mention a score of local business owners-- Ketchum City Council indicated Thursday it will increase its annual budget contribution to the Sun Valley/Ketchum Chamber of Commerce.

Calling a 30-minute presentation of the chamber’s activities and marketing strategies by executive director Carol Waller "excellent" and "thorough," the council said it would allocate more than the 3 percent increase, or $6,000, initially proposed in the mayor’s budget.

The chamber requested $310,000 from the city--about 20 percent of a projected $1.55 million in options tax revenue for 1998/99. The city council will decide the actual amount it will budget for the chamber at a special meeting to be held at noon on Thursday.

Several council members also stated that they would like to start a precedent of contributing a set percentage of the local options tax, as does the city of Sun Valley.

The Sun Valley City Council voted on July 22 to allocate $227 million, or about 25 percent of its options tax revenue for the current fiscal year. The Sun Valley City Council previously had expressed concern that it was giving a greater percentage of options tax revenues than was Ketchum.

"We have a number of different partners, and the city of Ketchum is an important one," Waller told the Ketchum City Council. "We’re in charge of getting more visitors to drive the revenue source."

After Waller’s presentation, which emphasized the importance of the chamber’s marketing strategies to help this ski resort compete with others, some 16 business owners spoke in support of a funding increase.

"Everyone has stepped up to the plate in their own marketing," said Ken Carwin, owner of the Tamarack Lodge. "The business community is dramatically funding the effort to keep this economy vibrant."

Many business owners said that since they collected the options tax for the city, the city should direct this revenue back into marketing to support businesses.

"If the options tax revenue is down, should we pull in the reins and give less?" said John Korpi, who manages the Elkhorn resort. "There’s a very good energy today in the business community, but we can’t do it alone."

Teresa Comber, president of the chamber’s board of directors, also emphasized the need for partnership and collaboration.

"We’re not looking for a handout," Comber said. "We’re looking for a hand to partner."

Still, some residents felt that options tax revenues could be spent in better ways than on marketing or even on the chamber.

Jake Jacoby was one resident who thought that options tax money should not go to promote growth of the city.

"It appears to me that the chamber is outstretching an open and accepting hand," Jacoby said.

Mary Jane Conger, a long-time Ketchum resident, said she thought money should go to support the infrastructure.

Ultimately, however, the city council agreed increased options tax revenues could further support items like the infrastructure, but to do so, the city first had to help promote the businesses themselves.

"You’re either a believer in marketing or you’re not," said Councilman David Hutchinson. "If we turn our back on marketing, we become an amenities community without the amenities."

Hutchinson, who said he supported increasing the chamber’s allocation, also said that he would like to plan for a designated percentage of the options tax to be set aside for the chamber in the future.

Councilman Randy Hall also was in favor of increasing the allocation.

"By not granting [the chamber’s request], I’m afraid of what message we send not only to our partners but to business owners," Hall said.

Councilwoman Sue Noel said not only did she support an increase, but she had long been on record that designating 25 percent of the local options tax for the chamber was appropriate.

Only Councilwoman Chris Potters showed some hesitation. She said she was concerned that there was not enough activity in town in the evenings, and that she would like the chamber to discuss whether or not this was important.

She said also that she was sensitive to some of the comments that the chamber asking for "handouts."

"I would like to see the chamber generate some funds for themselves," Potters said.

Mayor Guy Coles weighed in to support an increase for the chamber’s marketing budget, but pointed out that along with providing options tax revenue for marketing, the city was doing its share to support the infrastructure and other services.

The mayor said he had proposed only a 3 percent increase in the first place so the chamber would have to account for its spending, as did the other departments, such as police, fire and street that received options tax revenues as well.

 

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