JEFFERSONVILLE — A bill that would realign the makeup of the Clark-Floyd Counties Convention and Tourism Bureau has passed through Indiana’s House of Representatives and is waiting in the state Senate.

As initially written, House Bill 1460 — authored by state Rep. Ed Clere, R-New Albany — would have reduced the number of members for the bureau’s board of managers from 13 to nine members and restructure the board to more evenly disperse the appointments as a result of Jeffersonville becoming a second-class city.

Although the bill went through the House with little opposition — it was carried with a vote of 98-0 — several members of the bi-county board have expressed discontent with the legislation.

Board President Jan Huff said the changes presented were not fair and she saw no reason to reduce the number of members on the board.

“The board members are upset,” she said. “I don’t think there’s anything wrong with the 13 on the board. I just think [the appointments] should be evened out between the second-class cities.”

Clere said when he introduced the legislation that the decision to change the makeup of the board was to ensure New Albany retained an appointment and the reduction in board members was designed to create a more efficient and transparent group. But the size of the board is what one member said helps the group reach its decisions.

“Because it’s a large number, it aids us in coming to a consensus,” said board member Shelle England.

With the discontent of the board member reductions, the group asked Clere to meet with them and discuss the change.

“I thought the message that he had to hear was very consistent from the board was, ‘we like 13 members,’” said tourism bureau Executive Director Jim Keith.

Following a meeting with 10 of the 13 members of the board in attendance, an agreement was reached where Clere would amend the bill in order to retain all 13-members.

Changes would still be made within the board’s makeup to shift an appointment from New Albany’s mayor, who currently holds four appointments, to the Floyd County Commissioners, which currently has one board appointment. When the amendment will be presented for a vote is unknown as the bill is sitting stagnant in the Senate’s Tax and Fiscal Policy Committee.



Appointing authorities point-of-view

Despite the tourism board members feeling a consensus has been reached, not all of the appointing authorities agree.

“I think it ought to be distributed out fairly for room rentals,” said Jeffersonville Mayor Tom Galligan. “It ought to be proportionate to what you contribute.”

He said Clark County and its municipalities contribute far more in revenues to the tourism bureau than New Albany and Floyd County, so the appointments should reflect the revenues. In the tourism bureau’s 2010 annual report, Clark County collected 82 percent of the revenues received from an inkeepers tax on hotel rooms, compared to Floyd County’s 18 percent.

Even within the county, Galligan said there is a disparity in the appointments.

The town of Clarksville has the majority of the hotels in Clark County and has two appointments to the board. Jeffersonville and the Clark County Commissioners both hold three appointments, but Sellersburg, which also has several hotels, has no appointments to the board.

“I think Clarksville ought to have three votes,” Galligan said. “I also think Sellersburg needs a vote. It doesn’t make any sense. All we’re looking for is equity.”

He suggested the appointments be regularly reviewed and changed, if needed, to reflect the revenue collected from each entity.

With some appointing authorities calling for a change in the structure of the board related to the revenue, and how it is dispersed, the funding available is growing.



Collection disparity

According to a study conducted by Cewrtec Inc., in 2009, the tourism industry contributed $376.8 million to Clark and Floyd Counties, compared to $349.1 million in 2007.

“Tourists accounted for $270 million of this total, an annual real growth of 2.6 percent,” according to the report.

Income over the same period also increased and in 2010 totaled more than $938,000.

The revenues are collected through a 4 percent innkeepers tax. Three percent of the tax collected goes to fund operations for the bureau, while the remaining 1 percent is put into a Capital Development Tourism Fund.

The 3 percent of the tax collected is spent covering general costs like office supplies and salaries, but more than one-third of the revenues collected are used in marketing, promotion and advertising.

In 2008 marketing, promotion and advertising figures totaled $389,500 out of $930,880 of total income collected. For 2009 and 2010 marketing dollars were a lower percentage of the total income collected and equaled $339,500 and $364,846, respectively.

Capital development tourism funds can only be used to finance a project and to make payments on bonds that have been issued to complete a project that promotes tourism.

Of the money that went toward outstanding bond payments in 2010, $142,500, or nearly 56 percent, was meant for projects in Clark County compared to $113,000, or more than 44 percent in Floyd County.

In 2009, bond payments for Floyd County were less, making up more than 36 percent, but in 2008 the bond funding from Floyd County made up nearly 52 percent of the outstanding bond payments.

Although the funding source for the tourism bureau is the innkeepers tax, the bulk of the money generated through tourist activities comes from other sources.

“Expenditures by category showed that food and beverage, shopping and transportation purchases accounted for nearly three out of every four dollars spent,” according to the Cewrtec study.

Clark County also brought in a much larger share when comparing the two counties.

The tourism industry in Clark County generated more than $303 million in revenues in 2009 compared to the more than $73 million generated in Floyd County. Direct expenditures by tourists accounted for $217 million and $53 million of the total, respectively, resulting in annual real growth rates of 2.9 and 1.8 percent.

According to the figures, visitor spending for 2009 increased 4 percent. The trend has continued into 2010.

“We rented 15 percent more rooms than we did the previous year and at a higher rate,” Keith said in the annual report.

With Clark County bringing in a larger share of the revenue, some board members believe they should receive a greater benefit.

Huff took a special exception to the proposed legislative change that her appointing authority — Clarksville — would lose one of its two appointments to the board despite being the municipality in the two-county area that brings in the greatest amount of revenue.



Where the money is being spent

Several bonds are still outstanding and annual payments include the Lewis and Clark Bicentennial Plaza bond for $72,793, which is set to expire in 2012; payments for Falls of the Ohio State Park interpretive center exhibits totaling $26,958 set to expire in 2018; a RiverStage bond payment for $42,761, set to expire in 2013; a bond for a New Albany amphitheater canopy, IUS athletic field improvements and a Lewis and Clark Statue bond for $59,208 annually, set to expire in 2013; and amphitheater band shell and IUS lighting bond payments totaling $53,918, set to expire 2019.

The total annual bond payments for 2010 equal $255,640.



On the horizon

Plans for the tourism bureau in 2011 are not expected to change. Keith said the board will continue to pursue projects that will bring the most visitors to the region and they are evaluating a host of requests for 2011.

Requests include funding for a new Jeffersonville RiverStage, funding for the Falls of the Ohio Interpretive Center and New Albany’s Fire museum, he said.

“Even though I’m very involved in New Albany, I’m very regionalistic in knowing what benefits Southern Indiana benefits us all,” England said.

She added that when people see the region, they don’t view it as Jeffersonville, Clarksville and New Albany — they see Southern Indiana.

Even if the legislation moves through the Senate and is adopted, don’t expect wholesale changes at the tourism bureau.

“However that pans out the convention and tourism bureau ... would operate in the same way we have,” England said.