Baker City and Baker County spar over division of transit-lodging tax funds as Baker City prepares to leave IGA

Baker City and Baker County officials debated how to divide several years of unspent transient lodging tax (TLT) revenue after Baker City notified the county it will terminate its intergovernmental agreement (IGA) governing TLT administration.

Barry Murphy, Baker City manager, told the county board that Baker City’s council approved a letter asking the county to “work with the county to fairly split the ending fund balance.” He said the city requested a short suspension of tourism-related facility funding through June 30 to prevent a rush of end-of-fiscal-year spending that would reduce an apparent ending fund balance.

County counsel Kim Mosier answered that the county ordinance creating the TLT program applies in unincorporated areas by default and only applies within a city when the city consents. “A county ordinance only applies in unincorporated areas unless a city consents to its application within the city limits,” Mosier said, noting Baker City previously consented to application of that ordinance within city limits. Mosier explained funds collected under the ordinance must be administered according to the ordinance’s procedures, which call for requests and budgets to be considered by the tourism committee (TLT committee) and then presented to the commissioners for approval.

Commissioner Christina (first name used in the meeting) said she would not vote to fund Baker City Downtown for another year and emphasized that the county must follow the ordinance as written. County commissioners and staff confirmed that requests for TLT spending — including marketing and tourism-related facilities — should be brought to the TLT committee through June 30, and then come to the board for approval as required by the ordinance.

Several people from smaller jurisdictions and lodging areas spoke during the discussion, asking the board to keep in mind that money has been collected from many ZIP codes across the county and that large transfers to Baker City could set a precedent. One speaker from a small city pointed to local data showing disparity between tax collected from a ZIP code and funds returned to that same ZIP code.

The county said it was prepared to consider specific funding proposals from Baker City and other applicants at the upcoming TLT meeting; city officials indicated they would bring proposals to the committee through June 30. Commissioners offered a one-time interim offer of $25,000 to Baker City Downtown and $10,000 for the Shrine game as part of short-term assistance, and said additional requests should follow the ordinance-prescribed TLT process.

No formal change to the ordinance or immediate reallocation was made at the meeting. Counsel advised both parties to pursue proposals through the TLT committee and for the city to consult its own legal advisors if it disputes the county’s interpretation of the ordinance.