Trinity County advisory board advances draft plan, outreach amid distrust over past TOT use

Trinity County’s advisory board on forming a Tourism Business Improvement District (TBID) reviewed a draft management district plan, an updated timeline for a petition drive, and nonprofit formation steps at a meeting that highlighted lingering distrust among lodging owners about how previous TOT (transient occupancy tax) revenues were used.

The board and Civitas consultant Katie (last name not specified) outlined a schedule that would aim to start petitioning lodging owners in mid-June, submit petitions in July for a Board of Supervisors resolution of intention, send mail notice the day after that resolution, hold a public meeting in August and a final public hearing in September, and set a target effective date for the district of Jan. 1, 2026. “The funds that are generated through the assessment of the district to those lodging providers…cannot be directed or diverted to government programs,” Katie said, citing Prop 26 and state assessment law.

Why it matters: If a TBID is formed, assessed lodging businesses would pay an added assessment (the draft uses a percentage-of-revenue model) intended to fund marketing, events, signage and administrative costs chosen by a nonprofit board made up of assessed businesses. The county’s role would be limited to collection and verifying petitions; control over spending would rest with the nonprofit board selected by signers of the petition.

Most important facts and timeline - Consultant timeline: start petition drive mid-June; petitions submitted by July; resolution of intention by Board of Supervisors in July; mail notice day after resolution; public meeting in August; final public hearing and possible adoption in September; proposed district effective Jan. 1, 2026. - Draft assessment structure: the management plan adopts a percentage-of-revenue assessment formula (the draft shows a 3% assessment rate as the example used in outreach materials). - Draft collection fee: the current draft shows a 2% county collection/administration fee; county staff recommended that 2% is likely insufficient to cover startup costs and suggested 3–4% as more realistic. - Reallocation rule: the draft follows common practice in these plans by allowing intra-year reallocation only up to 15% (the board can change that percentage before petition if members want). - Legal constraints: Katie told the board that Prop 26 and the state TBID statutes require assessment funds be spent only on services and improvements that specifically benefit the assessed lodging providers and that funds cannot be diverted to general government programs.

What board members and the public raised Board members and public commenters pressed for more outreach and clarity. Several lodging owners and a longtime resident recounted a history of perceived misuse of TOT funds in Trinity County and said that distrust of county control is the principal obstacle to buy-in. One lodging owner speaking in public comment warned, “At the August, it’s gonna be $6,000 a month to continue this,” referring to continuing consultant costs after the county’s initial $30,000 investment.

Board members reiterated that the county’s current financial contribution (about $30,000 to date) is an investment, not a loan, and that the petition must be based on a complete management plan so lodging owners can make an informed decision. Katie and board members said the management plan must list potential services (marketing, events, signage, administration) because the law requires a clear service plan; those listed items are examples of “improvements” in the statutory definitions, not a county claim that the county will spend assessment dollars on county-run projects.

Nonprofit formation and next steps The board directed the consultant to draft articles of incorporation and bylaws for a nonprofit that would administer the TBID if the petition succeeds. Katie said she will produce a draft of articles and bylaws for review at the next meeting; the item will be discussed with the ad hoc committee first so lodging owners can weigh in on selections such as the corporate contact address and initial officers.

Process, outreach and decision point Board members emphasized ramping up outreach over the next weeks: email, webinars, at least one in-person open house already held, and targeted one-on-one contact by the ad hoc committee to gather additional contact information and measure support. The board agreed the next meeting should be a go/no-go checkpoint: either lock down the documents and start the petition or pause if there is insufficient support. County staff noted that a public initiative or petition would typically require 50%+1 support under the petition rules discussed, while earmarked taxes historically required two-thirds at ballot — a distinction the board flagged as important background for owners.

Votes at a glance - Motion to approve minutes of the May 19 meeting. Motion by Dana Steinhauser. Approved unanimously by present members.

Ending Board members asked the consultant to circulate revised drafts and to work with the ad hoc committee to expand direct outreach to lodging owners before the next meeting. The advisory board set a near-term meeting window in mid-June to revisit readiness for a petition drive and to review draft articles of incorporation and bylaws for the proposed administering nonprofit.