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Even though the Chautauqua County Legislature has rejected a plan to increase the county's occupancy tax by 3% that doesn't mean a hike of some sort can't be brought back this year.
During a phone call with County Executive PJ Wendel, he said they're still evaluating different funding options for Chautauqua Lake. "There's been talk about a different number; we'll wait and see," he said.
In March, the legislature voted unanimously to ask the state to keep the occupancy tax at 5%, instead of asking the rate be raised to 8%.
Wendel admits that he was disappointed county legislators backed the proposal to seek an increase in the occupancy tax in committee meetings, but ultimately voted it down. "There was a lot more vetting that needed to take place. We heard from a small hotel and we heard from some small businesses, but no one had reached out to our largest contributors to the occupancy tax," he said, specifically mentioning Peek'n Peak, Chautauqua Suites in Mayville, the Athenaeum Hotel in Chautauqua Institution, and the Harbor Hotel in Celoron.
The one elected official who was highly critical of raising the occupancy tax was Legislator Susan Parker, D-Fredonia. She was the only legislator who voted against the occupancy tax in committee.
The legislation went before both the Administrative Services and Audit and Control committees. Parker is the only Democrat who sits on Administrative Services. There are no Democrats on Audit and Control.
Parker said after she heard about the proposal to raise the rate, she sent out an email to a number of legislators and the county executive, asking for the proposal to be tabled. "The email specified that hotel, motel, Airbnb, and other hospitality businesses had to be included in the discussion of any countywide 60% occupancy tax increase, research into the occupancy tax usage and percentages in similar counties had to be completed, and a creation of a fair plan for the use of approximately $1.2 million in additional occupancy tax funds had to be developed," she said.
Before the March vote, Wendel attended the Republican caucus meeting held just hours prior. He said no one at that meeting brought up any concerns. Caucus meetings are permitted by law to be closed to the general public and no minutes have to be taken.
Once the legislature voted down the proposal to increase the occupancy tax to 8%, Wendel said he was "disappointed" that no legislators brought up any concerns.
Parker took an issue with Wendel's statement, saying she had brought up concerns via email. "In response, the county executive directed me to the county website and to Mr. Dave McCoy, the watershed coordinator, for additional information," she said.
With regards to Parker's statement, Wendel said, "She didn't pick up the phone and ask."
Parker said she believes Wendel was relying on the Republican legislators to push through the legislation. Republicans hold 15 of 19 legislative seats. "We are quite certain the county executive was counting on the super majority Republican-controlled legislature to fall in line, not ask tough questions, and that rush to vote would prevent opposition because few would find out until it was too late," she said.
Wendel replied, "I really don't know what questions weren't addressed ... Mrs. Parker is going to oppose anything that I'm putting forth."
Earlier this year Parker requested $2 million of American Rescue Plan Act funds be used to help with Fredonia's dam. After she sent that request, Wendel said the two of them talked about it and he said he would have been willing to talk to her again regarding the occupancy tax hike proposal. "When she had questions about the Fredonia water system, we spoke for over an hour on the phone. So pick up the phone or meet in my office and I will show the information again on where the money (from the occupancy tax) would be used and how we would use it," he said.
OTHER OCCUPANCY TAX CONCERNS
During the March legislature meeting, Legislator Bob Scudder, R-Fredonia, who chairs the Administrative Services Committee, said his concern was that if the county sought to increase the occupancy tax to 8%, not only could the state reject that rate, but they could lower the county's occupancy tax rate to 3%.
Wendel said while although he understands that concern, he believes Assemblyman Andy Goodell and state Sen. George Borrello would make sure that wouldn't happen. "Our senator and assemblyman work great with the state. Assemblyman Goodell wrote the legislation getting us that additional 2%," he said.
Wendel also added that Borrello and Goodell are very accessible and any legislator could have contacted them directly if they were concerned about the state's reaction. He would have done it himself if he was asked to.
One business owner complained at the legislature meeting that the increase was happening too quickly.
Wendel responded that even if the county and state legislatures approved the increase, it wouldn't have gone into effect until Dec. 1 at the earliest.
OTHER FUNDING OPTIONS
Even though an occupancy tax hike could be brought up again, there are other options right now to fund Chautauqua Lake.
Wendel is calling for a public meeting on April 12 to discuss creating boat fees for Chautauqua Lake. The money would likely be collected by boat stewards hired by the Chautauqua Lake Alliance.
The Alliance has about $3 million in requests for Chautauqua Lake improvements, but only has about $600,000 in funding available.
Wendel said boat fees and additional occupancy tax funds are proposals to get closer to reach that $3 million goal. "I said in my State of the County we need to find alternative funds to support the lake that are not reliant on our foundations. We need to move forward on our own two feet to find a way to fund this," he said.
Earlier this year, the Chautauqua Lake Protection and Rehabilitation Agency rejected recommending forming a lake district, which would have been used to collect tax money strictly for the lake.
The consultants behind the proposal used an example of collecting $10 million. That amount seemed to upset a lot of residents when they saw how much they could be paying, living in a lake district. The board voted against forming any sort of lake district and ended the process.
Wendel said he would have preferred the consultants have been given more time. "They could have come back and said, 'OK, this is what it looks like for a $10 million need or a $5 million need or a $3 million need' and then have numbers to support that. That would have been the next step," he said.
A few weeks ago Wendel, Legislature Chairman Pierre Chagnon, Industrial Development Agency Director Mark Geise, and McCoy went to Washington, DC and met with U.S. Sen. Charles Schumer. One of the topics they discussed was Chautauqua Lake. Wendel said they're looking to see if Chautauqua Lake needs to be dredged and what the federal government can do to help make that happen. "They (Army Corps of Engineers) are the best people in the business. If dredging is recommended, they are the best people for dredging. They have the equipment, they have the means," he said.
Wendel said they will continue to request and lobby for funds from the state, but after several years, it seems the state isn't going to spend the necessary money to improve it. "Our state representatives fight every year to get us funding. But however we want to put it, it doesn't come here. And it has nothing to do with what side of the aisle they're on because we didn't get substantial lake funding under (former Democrat Assemblyman) Bill Parment," he said.