It’s the nature of the job for tourism officials to look ahead and in the aftermath of this week’s failed effort to extend Lowndes County’s 2-percent restaurant tax, that is what Nancy Carpenter was doing Wednesday morning.
“I spent about four hours with Tim Buckley, our accountant, this morning, going over our budget and seeing what could be done,” said Carpenter, executive director of the Columbus-Lowndes Convention and Visitors Bureau.
The Mississippi Legislature ended its session on Wednesday. Among the unfinished business was a bill that would have extended the county’s restaurant tax, which provides the lion’s share of the CVB’s funding. The bill stalled in conference committee in a dispute over whether the extension of the tax should require all restaurants to collect the 2-percent tax. Under the current tax, only restaurants with sales exceeding $325,000 are required to collect the tax.
The current tax expires on June 30, which means the CVB will receive its last monthly tax funds in September at the end of the state’s fiscal year.
Carpenter is looking beyond September. The date fixed her head is Dec. 31.
“What we were doing (Wednesday) morning was going over the budget, seeing what we can do without, what could be cut,” Carpenter said. “We have to provide for ourselves a plan to survive through the end of the year. The decision that we make will not be pretty, but we will have a plan to survive through the end of the year.”
One of the things Carpenter said the CVB will look at is trying to find a buyer for the Elks Building, which the CVB purchased for $450,000 in December 2015. The CVB hopes to use the building for a Children’s Museum. Along with the purchase of the building, the CVB has spent roughly $650,000 on the museum project, which includes the services of a design firm.
Monthly payments on the loan used to purchase the building are $4,943, Carpenter said.
“We’ll begin looking for a buyer of the Elks building or maybe even find a buyer for the whole (museum) concept, since we’ve done a lot of work on that,” Carpenter said. “It breaks my heart, but I’m also realistic. It’s something I know we should be considering.”
Carpenter said the loan for the Elks building is the only debt the CVB has.
“We’re not debt-free, but we are in pretty good shape, financially. Other than a few small lease contracts and, of course, the Elks Building, that’s all the debt we have,” Carpenter said.
The CVB’s budget for the year is a little over $1.8 million. After the 2-percent tax income ends in September, the CVB will try to spread that money through the end of the year.
“It’s definitely going to be a struggle,” said CVB Board President Dewitt Hicks. “The board doesn’t meet again until April 23. I think we’ll have to [put on the agenda] what actions we should take and make suggestions. We have to do whatever it takes to keep functioning and I think the board is really going to be unified. We have to be.”
Carpenter said there is a provision in the CVB’s charter that would allow the CVB to borrow money to stay in operation.
“We do have some assets,” Carpenter said. “We own our offices, as well as the Tennessee Williams home.”
For Carpenter and the CVB board, the task of finding a way to stay in business will soon take precedent over dealing with the shock and disappointment over the failed restaurant tax extension.
“It’s hard. Devastating, really,” said Hicks. “I was part of this back when the CVB and the tax were created (in 1986). I was the city attorney and my wife was on the CVB board. To see the beginning and, over the year, see all the things the CVB has brought in…It’s very, very sad to see it turn out like this.”
Slim Smith is a columnist and feature writer for The Dispatch. His email address is [email protected].
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 30 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.