Sullivan County Legislature adopts tourism grant program after debate over reimbursement and review committee

Sullivan County lawmakers on March 26 adopted an amended Tourism Sector Enhancement Grant Program that charges a mixed committee with reviewing applications and returns final awarding authority to the full legislature.

The measure, introduced as resolution number 2, passed after an amendment on a 8-1 vote, with Legislator Katarina "Kat" (last name not specified in the record) voting no. The amendment added a fourth legislator to the committee and specified that the grants could include non-reimbursable disbursements; the full board retains final approval before money is dispersed.

Supporters said the program is intended to drive visitors and local sales tax by funding events and marketing. Michelle (economic development staff) described the intended process: applicants would submit documentation to a committee made up of legislators and three Sullivan County Visitors Association (SCVA) members; the committee would review materials with audit, management and budget, and planning staff and then recommend awards to the full legislature. "So then they're gonna make a recommendation to the board, and then it'll go through economic development, and then it would go and be adopted by the full legislature," Michelle said.

Debate focused on whether grants should be reimbursable—meaning applicants spend first and seek reimbursement—or paid in advance. Angela (Audit) cautioned against routinely advancing funds because chasing receipts after the fact can be "very cumbersome" and make recouping misspent funds difficult. "If you're going to advance people money and try to put something in place to chase after them to get receipts later on, I think that's very cumbersome," Angela said. She recommended steps such as phased payments and requiring a 35% match to lower risk.

Several legislators urged flexibility for first-time events that may lack upfront capital. One legislator said a hybrid approach—allowing advances in some cases and reimbursements in others—would be appropriate for an initial year to assess risk. "I just like hybrid style that Michelle had. Yeah. I think that works," a legislator said during a straw poll.

The amendment approved by the legislature adds a fourth legislator to the review panel (bringing the panel to four legislators and three SCVA members), clarifies that the SCVA will administer the grants, and allows the committee to recommend either reimbursable or non-reimbursable disbursement approaches depending on circumstances. The record shows the board required recipients to submit supporting documentation to be eligible for future awards.

Supporters and audit staff agreed the committee should collect documentation in advance—applicant history, budgets, and verification of match—and recommended staged funding or requiring proof of expenditures after events when appropriate. The SCVA will hold and disperse awarded funds under terms approved by the legislature.

The resolution as amended was moved by Legislator Matt McPhillips and seconded by Legislator Brian McPhillips. The final recorded vote on the amended resolution was 8 in favor, 1 opposed (Kat). The legislation directs staff and the newly constituted review committee to finalize any application materials and procedures consistent with the amendment.

Implementation questions flagged during debate included whether the funds would be disbursed as reimbursements, advances, or hybrid; the committee was asked to work with Audit to establish documentation and oversight. Angela (Audit) said Audit could advise the legislators on due diligence and documentation but would not advise the SCVA as a vendor. "I could work with the board the members that are on the board ... but I can't ... advise a vendor," she said.

The legislature also instructed that committee recommendations be returned to full board for final award decisions. The SCVA will be responsible for maintaining records for awarded grants and providing supporting documents for audits.

The resolution text and amended attachment were not fully updated in the meeting packet distributed to the public; one public commenter asked that the updated materials be made available to interested parties before final action. The record shows the amendment was adopted and the resolution passed as amended.

The legislature's action establishes a county-directed tourist grant program and a review process intended to speed discretionary funding to events while building auditing safeguards and eligibility requirements.