Currently, all revenue from the County’s transient room tax is allocated to the Owensboro-Daviess County Convention and Visitors Bureau. But Fiscal Court is considering an ordinance that would allow the government agency to use some of that money for other County projects.
Fiscal Court heard the first reading of the ordinance Tuesday, and no action can be taken until a second reading later this month.
In 2022, the transient room tax raised $820,757. Judge-Executive Charlie Castlen said under the current ordinance all of that goes directly to the CVB, while if the change is approved the County could withhold a portion of any future revenue to spend on projects generating tourism.
“We do not have anything in mind or percolating or around the corner where we’re going to start doing it, it just gives us some flexibility if needed,” Castlen said.
However, Castlen said the CVB would have to approve any withholdings, preventing the County from taking the revenue without notice.
Fiscal Court Director of Legislative Services David Smith said the same language is utilized in an ordinance for Louisville Metro, and there is similar language in ordinances in several other counties.
Fiscal Court is also considering other changes regarding the CVB, including no longer letting the City of Owensboro appoint a member to the bureau’s board. Officials said that’s not allowed by state statute given Daviess County created the CVB board originally.
On a related note, the County is considering dropping “Owensboro” from the official name of the CVB. Last year, the City created its own tourism commission titled Owensboro Tourist and Convention Commission. It has no real duties but was required due to the City’s own room tax revenues.
Smith said county officials were worried leaving Owensboro in the CVB title would cause confusion for hotels paying the tax to both organizations.
“We also did some research and found there’s about 10 … counties that have their City’s CVBs, and only on one occasion did the Fiscal Court keep the name of the city in it,” Smith said.
CVB President & CEO Mark Calitri said he didn’t receive the ordinances until Tuesday afternoon following Fiscal Court’s meeting.
“I just received the ordinances this afternoon and am beginning to process the information. This is new information and I’ll need a chance to sit down with my board of directors,” he said.
Should the ordinances get passed, Smith said that all changes would go into effect immediately following passage. Budget line items, however, will start after the start of the next fiscal year, meaning they would begin in July 2023.
