— OAKLAND — During a budget meeting on Tuesday, Garrett County commissioners discussed the debt accrued by Adventure Sports Center International and residents questioned the county’s decision to acquire that debt.
The hotel tax rate increase from 5 percent to 6 percent will provide the county with funds for the promotion of tourism and economic development, County Adminstrator Monty Pagenhardt said. “The ASCI debt repayment is also to be paid by the hotel rental tax. That is not in this year’s budget, it’s in next year,” Pagenhardt said.
“The commissioners plan to pay ourselves back our assigned fund balance of $600,000 to pay off the $2.2 million of debt.”
In March, the county took ownership of ASCI, paying $600,000 to secure the assignment of ASCI debts from Susquehanna Bank.
During the public comment portion of the meeting, resident Brian Arnett questioned the decision to acquire the ASCI debt.
“It’s great you didn’t raise the tax, but how about a tax cut and just quit doing pet projects,” asked Arnett.
In response to Arnett, Chairman Jim Raley said the budget didn’t really include many capital projects and further reiterated the fact that some of the hotel tax money would be used to pay the ASCI debt.
“The other projects can be debated. Some of those projects we inherited,” said Raley. “Some of those projects people believed would be an economic boost to the county. It’s our job now to make those things work. I think you will see that we have really cut our capital projects way back.”
The hotel rate increase will also cover promotions of the 2014 World Championship Canoe and Kayak Slalom Races and will provide an extra $5,000 to the Garrett County Historical Society. The $118,000 expenditure in promotions for the races is from seed money, Pagenhardt said.
During Tuesday’s commission meeting, commissioners approved a resolution to increase the hotel tax rate, effective July 1.
During the public comment portion of the budget meeting, Jim “Smokey” Stanton, thanked commissioners for holding a public meeting on the budget. Stanton suggested the county hold back 5 percent to 6 percent of budget in every department, which would amount to a contingency plan.
“So that the managers of that department are managing to that reduction,” said Stanton. “If we find that things are going more down hill than we believe, or we need to have money accrued for next year, we have a mechanism to do that.”
Stanton also said he wasn’t a fan of earmarking and suggested that performance evaluations be required for the Chamber of Commerce and Economic Development.
“Earmarking means that it becomes a birthright,” said Stanton.
“Obviously, that is a good suggestion and one I think we do have to look at,” said Raley. “Especially in light of the fact that not only we can we anticipated the loss of revenues in the property adjustments over the next couple years. We also know that we will be facing a million dollar liability in teacher pensions over the next four years.”
The state will be responsible for the first four years of the teacher pension, leaving the county responsible for the last year, according to Raley.
Contact Elaine Blaisdell at eblaisdell@times-news.com
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