Brian Obie calls county ‘shifty’ at budget hearing

Presenter: Brian Obie calls the county “shifty” for a proposal to use transient lodging tax funds to plug holes elsewhere in the county budget. 

This story on the budget hearing June 9 starts with the president of Travel Lane County, and an explanation of the TLT. 

Samara Phelps (Travel Lane County, CEO): My name is Samara Phelps. I’m president and CEO of Travel Lane County, your destination organization, and a Springfield resident.

I want to start by stating my deep respect for the work of this board, as well as the staff to serve all of Lane County. My job is to provide a visitor industry perspective, to inform the decisions that impact the industry that generates over $1.1 billion in visitor spending each year.

Today, I’m here to address the proposed use of the 2% transient lodging tax (TLT) established in 2022. 

TLT is designed to be invested in generating new dollars for our community through visitor spending.

That visitor spending generates economic activity, supports local businesses, creates jobs in our rural and urban communities, and it sustains the TLT revenue and everything that that fund funds.

In 2022, the TLT was increased by 2% to generate economic activity through tourism facilities. At that time, the board clearly stated that those funds were to be used to fund, enhance, construct, and maintain tourism-related facilities here in Lane County.

The amount and the language showed a commitment to the industry that generates and collects the tax. The stated purpose demonstrated a commitment to Lane County’s economy; 2% was not a random number—2% is what research at the time showed was needed to build a regional tourism facility. 

Hoteliers and industry supported the increase because it was dedicated to addressing that long-identified need, setting the county on a path for the first time in decades to build a facility that generated visitor spending.

Work is currently underway to create a once-in-a-generation investment in a facility that can transform our winter visitor economy, improve quality of life, and generate $20 million of annual spending in every year.

I ask the board to honor the commitment and the intent behind that 2% increase, and position Lane County to make a strategic investment that can deliver long-term economic returns, generating revenue for local businesses, residents and for the county.

Thank you for your service and for your consideration.

Dana Turell: My name is Dana Turell and am here to talk about the use of TLT towards public safety in the budget today.

And I want to first say my appreciation to the Budget Committee for recommending that there be a time cap. I appreciate Commissioner Buch providing the language that TLT be revisited as far as its use in two years for using TLT for public safety. To me, that represented a commitment from yourselves and the other committee members to revisit the use of TLT for what it is intended for.

And I just want to remind us that transient lodging tax is intended to generate more visitors, more tourism, thereby bringing in more visitors, generates more taxes and generates more revenue for our local businesses. So not using it for that purpose is not using it for its intention.

Since that meeting, I’ve been hearing a lot of comments, a lot of discussions around public trust. And that’s starting with the task force that you put together—the Public Safety Task Force. In that co-chair letter that was in the front of the report, it talked about in their words, “bait and switch.” And what they meant was you dedicating funding for a particular source and then using it for something else. And that’s what this is.

Their recommendation—and I think you may hear more of this tomorrow as you continue to hear from the task force— is that you build public trust so that when you go out for a long-term solution to anything (in this case, the public safety), the public is more ready to trust you to raise their taxes for the long term.

But if your example is that you raise taxes for one purpose and then use it for something else, it is difficult for them to trust you on something that you need them to vote on, which is the increase in taxes that will be needed for long term.

I want to give you a brief update that the investment that Lane County and Travel Lane County are making on what we’re calling decision-grade feasibility work towards an indoor sports facility is moving forward.

That has been a commitment of $450,000—half from Lane County, half from Travel Lane County—towards the decision-grade feasibility that would provide you with the information to know if this is an option you want to move forward.

The RFP has been issued for a consultant and the proposals are being reviewed right now. So that work is being moved forward.

In the best of circumstances, when that work is done and that report is brought to you, you would have the option to be able to use TLT for its purpose, for your purpose as you dedicated it—to tourism infrastructure development. You would have the option to spend it on that. If you don’t—if you spend it on these other things, even though important—you will not have that option.

Commissioner Ryan Ceniga: Brian Obie:

Brian Obie: I’m here obviously, to speak about the TLT funding and the shift of dollars away from that. And I want to speak as loud and profound as I can.

Shifting these dollars, Lane County shifting these dollars is, in fact, shifty. Shifty. And this administrator should be ashamed of himself to suggest that.

I mean, this is about public trust. Dana (Turell) made a great point, and that’s what it’s all about. The committee that you appointed, the committee clearly, clearly stated what should be considered. I won’t repeat those words, it’s right here.

It’s all about “bait and switch.” That’s not how you build confidence in the future. Here’s what the committee, the committee that you appointed, good people, good people that are concerned about this county. They made the recommendations: Efficient prioritization and trust. That’s the number one thing to look at efficiency and prioritization and trust.

Multilayered solution was the second thing.

Third thing was a payroll tax. That’s happened in Eugene. It’s happened in Springfield. Now where’s Lane County? Lane County relative to solving this? Is that too much? Is that too much to ask? Is that too hard to take that step for you to take that step?

The third one was to form a special use district as a solution.

There’s no number five. There’s nothing that says shift TLT funds away.

You know, out of our properties alone, the money that is in the fund right now (that is so rich for picking, so rich for picking, Mr. Administrator. It’s just easy), a half a million dollars of that fund had come from our properties alone, perhaps more.

That was a conservative estimate I made this morning. Now, if I had to put two ten-dollar bills on the table, would it be okay if you just take half of them and do what you want? Would that be okay? No, it’s not okay.

And that’s what I’m here to talk to you about. It is about public trust. Trust is an interesting word. I give you my trust. Only you can take it away.

That’s the way it is with the public. That’s what it was all about. And that’s what this is all about. So this cannot happen. Lane County and you have a good reputation. Why destroy it?

I give you my trust, and I really plead for you not to violate it. I want to continue to support this county and support the issues that you bring forth.

John Crowder: John Crowder. In respect to the budget, I think in, since 2018, the budget had an item for a county auditor. And for some reason it’s put in the budget, but it’s never filled.

And I understand it’s in the budget this year, so my encouragement, if it’s in the budget, that you need to hire a auditor. And that auditor’s responsibility is look over the shoulders of you folks and the administrators of the county to make sure things are being done.

In the State of the Union that was presented in January, it had three items: public safety, economic development, mental health issues. And I’m sure the budget includes addressing those issues.

And I guess from my standpoint, maybe that auditor can kind of take on the responsibility of like a DOGE and just kind of look to see where things are, and not look over your shoulders to be a disciplinarian, but to be an encouragement that there’s follow-through. So thank you.

Janet Ayres: I’m Janet Ayres, I did a little number crunching and dollar crunching—

I was just curious if Oakridge Heather was able to clean up their sewage from dumping into the Middle Fork of the Willamette River. I’m hoping some money is provided to the woefully forgotten Oakridge to get that addressed. So we don’t have our good rivers polluted.

I’m here to speak to the numbers. I did some number crunching with the budget and just being a little creative with those numbers to put the budget into relativity with us common folks, the ones that you folks are representing.

Lane County has 302 employees that get at least $100,000 a year—302 employees represent roughly 20% of the full time workforce for Lane County.

When you add that up $100,000 x 302, that comes to $30.2 million. If you were to shave their salaries in half—I’m being creative, keep that in mind, but a little bit real—that $100,000 salary (not including the benefits package, because we know those are well endowed thanks to the Compensation Board)—that equates to about $15 million.

That’s like three times over and above the $5 million deficit that we’re currently in.

It’s time the county administrators realize what belt-tightening means to people on one-tenth of their salary that they receive courtesy of my tax dollars. And so many others’.

Also, I’m questioning what happened to putting that current contract for the so-called Navigation Center? Why was that not put up to bid or opened up for others? Why don’t we have a local person who understands the climate here locally, instead of some carpetbagger coming in from Oklahoma and taking over? I think it’s time that local be given a priority.

Presenter: Brian Obie says the county is being “shifty” during a public hearing June 9 on the Lane County budget.