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Elkhart County CVB seeks higher 2026 innkeeper tax budget amid questions about carryovers and overhead
Summary
The Elkhart County Convention & Visitors Bureau asked commissioners to raise its 2026 innkeeper-tax budget from $2.6 million to $2.9 million and outlined how CVB dollars paid for recent large events. Commissioners pressed CVB leaders about staffing, overhead and where unspent tax receipts are held.
John Hunsberger, executive director of the Elkhart County Convention & Visitors Bureau, asked the Elkhart County Board of Commissioners on Sept. 11 to raise the bureau’s 2026 innkeeper-tax budget from $2.6 million to $2.9 million to align spending with collections.
Hunsberger told the commissioners the CVB’s total budget is about $3.1 million and that the $2.6 million figure is the direct distribution from the innkeeper tax. “We’re only trying to align our budget with what is collected,” he said, describing a multi‑year pattern of collections rising faster than the amount officials were allowed to budget.
The bureau presented specific uses for innkeeper‑tax dollars, emphasizing marketing and events. Hunsberger said the CVB contributed $150,000 toward a downtown “Celebration Under the Stars” concert that drew an estimated 15,000–16,000 people and also listed local events supported this year, including the Elkhart Jazz Festival, Nappanee Apple Festival and the Pumpkin Vine bicycle ride. “We market, promote, and invest in the experience economy here in Elkhart County,” Hunsberger said.
Why it matters: the innkeeper tax can be spent only for tourism promotion under state law and the local innkeeper tax commission’s contract. Commissioners said they want to be sure budget increases primarily fund visitor‑facing marketing and events rather than rising overhead.
Commissioners pressed Hunsberger on organizational overhead and staffing. One commissioner said CVB payroll and fixed costs appear large relative to event grants and asked whether the CVB needed seven staff. Hunsberger replied the CVB has seven full‑time staff plus a visitor‑center staff person and said the visitor center itself generates walk‑in service for travelers.
Questions about carryovers and interest. Commissioners and the CVB diverged on how excess collections had been handled. Hunsberger explained that collections above the budget are held as a rollover and are available in subsequent years, and that those rollovers had grown — he cited a carryover of about $634,000 into 2025 and a projected $728,000 at year end if current pace continued.
County Treasurer Cindy Chadwell described the county process: innkeeper tax receipts from large hotels are deposited to the county treasurer’s account monthly and third‑party platform collections (for short‑term rentals) come through the state. Chadwell said the treasurer “hold[s] the money in our bank account. They’re not getting paid interest. It was never set up that way,” and said the county could investigate whether interest should be credited back to the specific fund.
Commissioner concerns included a recent effort by the CVB to seek legislative approval for a higher tax ceiling without prior council notice, and the perception—whether or not accurate—that the CVB acts primarily as a marketing arm for the City of Elkhart. Hunsberger said the innkeeper tax commission includes hoteliers from multiple communities and that the CVB partners with town organizations through cooperative marketing.
Ending: Commissioners directed staff to follow up on a few specific items — the county treasurer said she would investigate how interest on carryover balances is recorded and reported, and commissioners signaled they would seek clearer budget breakdowns next year if the CVB again requests an increase.
