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Bed tax forum cut short; room double booked


Published: Wednesday, January 25, 2012 8:16 AM CST
Dana Cole/San Pedro Valley News-Sun

A public forum organized by local business owner JT Moffett was cut short Thursday because the city council chambers, where the forum was held, had been double-booked by the city.

The forum's purpose was to provide an overview of the bed tax history in Benson, address how the money is allocated and offer a timeline regarding a recent bed tax issue.

"At the time that I requested the city council chambers for the meeting, it appeared the room was available and the city had no other meetings booked for that evening," said Moffett, who had planned to use the room for at least two hours. But the planning and zoning department needed the room for a conditional use permit hearing and had failed to submit a request for the space, which meant Moffett had to end his meeting after one hour. "There were people who wanted to speak, but didn't have an opportunity," said Moffett, who may organize another forum at a later date.


The city's bed tax became a hot topic during the Dec. 12 city council meeting when Benson/San Pedro Valley Chamber of Commerce Executive Director Marc Washington, Sr. represented the chamber in a funding request of nearly $20,000. The money is part of a $35,000 allotment approved by the city for the chamber, with the funds designated for three events the chamber holds every year.

When addressing the city council with the chamber's funding request, Washington was questioned by Councilman David Lambert regarding how the money would be used by the chamber and was asked if the chamber would be able to produce receipts and invoices detailing its expenditures. As part of the funding request, the city council had been advised that some of the money would be used for an upcoming bluegrass festival, the chamber's operating expenses and for the executive director's (Washington's) compensation. Washington assured the council that the chamber's treasurer, Bob Mucci, would be able to produce any financial documentation requested by the city council. Additionally, the financial statements that had already been provided to the city by the chamber were what Washington had been told the city needed, Washington said. But when the questioning continued, with other council members joining Lambert with other questions, the funding request eventually turned into a tense exchange between Washington and the council.

On one side of the debate, the Benson/San Pedro Valley Chamber of Commerce believes it should be receiving 70 percent of the money collected through the transient lodging tax, a 2 percent tax that comes through the city's hotels, motels and RV parks. In addition, the chamber feels it should be free to use the funds for its operational expenses, along with the three annual events it organizes. All invoices, receipts and pertinent financial accountability will be given to the city by the chamber.

Then there's the city's side of the issue. According to the city's finance director, Jim Cox, "For the past four years, the chamber has been receiving $35,000. It's the amount of money that we estimate the chamber needs to pay for the three events it holds every year, the Bluegrass Festival, Butterfield Stage Days and Christmas on Main Street." The $35,000 is roughly 50 percent of the bed tax revenue the city collects each year, Cox noted.

Regardless of how the money has been allocated in recent years, the chamber of commerce wants its allocation increased and points to how the money was distributed when the bed tax was first implemented.

"When this tax was first initiated through Resolution 17-89, all funds obtained through the bed tax went to the chamber," Moffett said during the forum. "Three years later, the city council revised the bed tax in resolution 18-92 and subsequent city councils have continued to revise the fund by cutting the chamber's allocation. So, in the course of 20 years, between 1992 and now, the chamber's funding has been restricted until the chamber is strangled to death."

Moffett brought up the Dec. 12 meeting and provided a timeline to demonstrate that "city council member David Lambert intended to blindside the entire city council, city staff and Marc Washington" by the questions he was asking. Moffett noted that Lambert went to City Clerk Vicki Vivian with a records request late Thursday (Dec. 8). According to Moffett, Lambert's records request included a May 18th audio of the community enrichment portion of the budget, along with a list of the chamber's expenses. Lambert's records request, along with Moffett's timelines, have been confirmed by Vivian.

Then on Sunday (Dec. 11), Lambert sent an email to Vivian requesting the following items:

A detailed list of the chamber's expenditures for the past 5 years, including but not limited to copies of checks.

Expense authorizations for the chamber.

Receipts for chamber expenses.

Any or all correspondences requesting payments or reimbursements to the chamber.

"Councilman Lambert was able to get the funding information he needed through the city finance director Jim Cox," Moffett stated. "Mr. Cox sent a memo on Dec. 12, the day of the city council meeting, to the city clerk and city manager with such wording as 'exhibit 1 and exhibit 2,' just as though it was a trial and the chamber was guilty of something," Moffett said. "...This was a blatant, premeditated attack by David Lambert against the chamber and Marc Washington," he added.

Moffett stated that not one member of the city council had been notified by Lambert of the records request prior to the city council meeting, or that he intended to question Washington and city staff during the meeting.

"Not a single council member was given prior notice of this attack," Moffett said. "Glenn Nichols received his copy from Jim Cox at approximately 4:30 p.m. on Monday...And last, but most importantly, Marc Washington and the chamber were never informed they would be interrogated about receipts and spending during the city council meeting."

Councilman Ron Brooks said that he and other council members were presented with "30 pages of financial documents about five minutes before the city council meeting. There was no time to go through all those records prior to the meeting," he added.

Moffett noted the short notice in his timeline at the forum, stating, "What David Lambert did was clearly premeditated to make Marc Washington and the chamber look bad, not to mention the condescending manner in which Mr. Lambert spoke to Mr. Washington."

However, Lambert maintains that his questions were intended strictly as an avenue to let the chamber know that more detailed financial accountability would be required in future funding requests and there was no "intentional blindsiding or premeditated attack" on his part.

In addition, City attorney Michael Massee supports Lambert and the questions he asked. During an interview after the forum, Massee stated that, in accordance with state statute, when tax money is collected and distributed there must be strict accountability of how that money is used.

Because of how Washington's funding request was handled by Lambert, Moffett will be initiating a recall election to have him removed from the city council.

While Moffett's forum was intended as "an informational exchange of facts between different speakers," it had to end earlier than expected because of the double booking, which meant that several business owners who wanted to speak were not able to.

However, Jim Gray, owner of Dillon's Corral, spoke on behalf of the chamber and its role in the community as a business partner. "The chamber of commerce needs to get the bed tax money," Gray said. "I don't think it's the city's job to micromanage the money that is rightfully the chamber's. The city council needs to be more business friendly."

Dan Barrera, owner of the Quarter Horse Hotel and a former city councilman also spoke. After providing background about his family's presence in Benson as business owners, Barrera said that he started collecting the 2 percent bed tax money from his customers with the idea that the money would be going to the chamber to help fund tourism, events and advertising and that he would like all the bed tax money to be allocated to the chamber, as it was originally intended. "I want to see the chamber and city work together," Barrera added. "Let's let the chamber do its work."

Washington, who had submitted his resignation as the chamber's executive director and had threatened a lawsuit against the city of Benson, for "defamation of character" following the Dec. 12 city council meeting, an-nounced that he would be staying on as executive director after all and the lawsuit against the city is going away. To a round of applause, he thanked the Benson business community for its support, and added that the issue between he and Lambert "is personal."

Moffett, who plans to hold another bed tax forum in about three weeks, is assuring everyone a chance to speak. "I had booked the forum well in advance, about two weeks out, so I was surprised when I learned the room had been double-booked," Moffett said. "I know this was an honest mistake on the city's part and these things sometimes happen. I have been assured by the city this will not happen again, so everyone will have an opportunity to speak at the next forum."



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The following are comments from the readers. In no way do they represent the view of bensonnews-sun.com.

Pete wrote on Jan 25, 2012 3:30 PM:

" How very convenient the city double booked the council chambers, cutting the public meeting short.
It appears to be just another act of not wanting to hear the chamber and the citizens out. Nothing changes in Benson. Same under the table tricks. "

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