Kosciusko County Convention, Recreation and Visitors Commission members talked about this year’s financial outlook before addressing grant requests at their meeting Wednesday.

The commission is funded by the innkeepers tax. The collected money is then redistributed to organizations through grants to help with promotion costs and, in some cases, assist with capital projects.

President Tammy Kratzer asked for a financial report from Treasurer John Hall. Hall said collections are down $200,000. The COVID-19 pandemic and subsequent downturn in the economy hit the hotels and tourism industry especially hard.

Jo Paczkowski said she had emailed fellow member Kathy Ray, who didn’t attend the Wednesday meeting. Ray, a hotel manager, indicated receipts are down 15 to 20% in the hotel industry with a 5 to 8% increase expected in the first quarter of 2021. That increase is anticipated to level off, not make a giant leap over the second and third quarters.

“Kathy said we won’t be back to normal until 2024,” Paczkowski said.

Mark Skibowski said that prediction comes as no surprise as people are realizing they can operate, attend meetings and make decisions remotely.

The commission has submitted a $581,000 budget for 2021, a decrease of $134,000 compared to the 2020 budget. The budget will be finalized by the county council in October.

The commission members discussed whether or not to resubmit a much-reduced budget to the council. County auditor Michelle Puckett said they wouldn’t necessarily have to resubmit paperwork because the council can reduce the numbers.

It was noted the cash on hand as of Aug. 31 was $334,000 with another $250,000 in certificate of deposits for a total of $584,000. Even that half-million dollar amount represents a 40% cut over last year’s balance at this same time.

Grant Requests

The members heard four grant requests.

Karl Swihart, of the City County Athletic Complex, received a $40,000 grant for 2021 operating expenses.

Swihart said the complex was hit hard by the pandemic and really didn’t get underway until June 13. Attendance was restricted to 250 spectators at each hub. So far, the CCAC has had a $200,000 loss and drew on a $50,000 line of credit.

Skibowski noted the line of credit is usually what gets the staff through the winter and is routinely paid off. This year, the draw came early, is being used for day-to-day operations and the last loan hasn’t been paid off.

Swihart also mentioned a $30,000 grant for sidewalk repair, which will go before the board at the Nov. 4 meeting. Dave Gustafson asked Swihart to appeal to the city for help with the sidewalks as they have a sidewalk program.

He said the additional restroom has not been constructed but expects work on the facility to begin soon.

On the bright side, with Illinois having no tournaments and Michigan restricting gatherings to 100 people, two major tournaments will be hosted at the CCAC in October.

KCV Cycling Club members Chris Miller and Nick Hauck attended the meeting requesting $22,900 for promotion of next year’s Fat and Skinny Tire Fest. The commissioners approved a grant of $15,000, subtracting the amount indicated for billboards in regions with big bicycle clubs.

Casey Jones, of the Tippecanoe Audubon Society, asked for $818.50 to sponsor the annual fall dinner with a featured appearance by  Soaring Hawk owls at Koinonia Nature Preserve on Halloween. The commissioners reduced the grant amount to $500.

Also receiving a grant cut was Chuck McLaughlin of the Lake City Skiers.

McLaughlin told the commissioners the club has borrowed $97,000 to buy boat motors. Evinrude had been their sponsor, offering motors at a discount. The club could use them payment- and interest-free for a year and either sell them or start paying for them.

The club sold the gently used motors and would receive new motors with the same conditions for the next year. However, Evinrude abruptly closed their outboard motor production plants in May and announced they wouldn’t be reopening. This left the club, specifically each member of the board of directors, with a big bill.

McLaughlin said he wanted to use the $30,000 to pay down the loan principle. Payments are $3,500 per quarter. The commissioners offered $7,000 to make payments for the next two quarters. McLaughlin was invited to return with updates about the club’s finances and to make additional grant requests.

CVB Update

Convention, Visitors Bureau Director Jill Boggs said the bureau has spent 75% of the budget, or $349,000, with a bank balance of $90,438.

She said three new CVB board members have been welcomed: James Baush, Jennifer Carnes and Alan Alderfer.

A recent advertising campaign promoting Kosciusko County on Facebook returned some interesting results with nature sites being shared or liked the most, followed by the  outdoor and lakeside dining ad and waves to shore – lake and outdoor activities –  third. The least shared promotions were for hiking and biking trails.

The 11 murals in 11 counties event is progressing with the guest mural artist expected later in the afternoon. Today, a meet and greet with the artist is scheduled from 4 to 6 p.m. at the mural site.

Boggs said a 2021 Visitors Guide is being planned.

The next commission meeting is Nov. 4 at 9 a.m. in the courthouse’s old courtroom.