The employees of the Kokomo/ Howard County Convention and Visitors Bureau will continue to see a 20 percent reduction in their pay for the foreseeable future.
The CVB board on Thursday voted to extend the 20 percent reduction indefinitely until the issue of the mortgage payment on the Kokomo Event Center is resolved.
The board voted in June to reduce employees pay by 20 percent and increase the employee contributions toward health insurance from $20 to $53 per month through the end of the year. The insurance premium will increase to $80 per month starting Jan. 1.
Board member Jason Miller asked if there has been any consideration given to providing the employees with some of their lost salary in the future when the financial picture improves.
Kelly Karickhoff, board president, said that has not been discussed.
Revenues from the 5 percent innkeeper’s tax totaled $325,727 through October, which is down $189,821 from what was anticipated.
CVB members are discussing with Howard County officials the possibility of paying off the mortgage on the Kokomo Event Center early to make more funds available for operating costs.
Karickhoff said financial information has been provided to county officials.
She said there is approximately $400,000 in a reserve fund to be used to pay down the mortgage.
Karickhoff said the CVB board believes it will take $550,000 to pay off the mortgage.
Since 1997, 2 percent of the innkeeper’s tax has been dedicated to paying off the Event Center mortgage. Through October, $2.3 million has been paid on the mortgage.
Karickhoff said when the Event Center was purchased, the CVB received 4 of the innkeeper’s tax revenue. When the Event Center mortgage was approved the innkeeper’s tax was increased to 5 percent, with 2 percent going toward the mortgage.
The innkeeper’s tax is scheduled to return to 4 percent when the mortgage is retired on Dec. 31, 2012. Karickhoff said the CVB would like the tax to continue at 5 percent in the future.
With the reduced revenues, the CVB has reduced overall spending by 16 percent this year, or $67,111.
Karickhoff said next year the board will meet with the Kokomo Event Center on goals and objectives for when the mortgage is paid off.
She said a decision has to be made on whether the CVB should continue to lease space in the Event Center or look to relocate.
Karickhoff said the present location is not close to the hotels in Kokomo or near the entrance to the city so that information can be provided to visitors.
• Ken de la Bastide is the Kokomo Tribune enterprise editor. He can be reached at 765-454-8580 or via e-mail at ken.delabastide@kokomotribune.com
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