Commission caps Chamber tourism allocation at $400,000 amid debate over road funding

The Rutherford County Board of Commissioners approved a resolution on June 11 that caps the annual allocation to the Chamber of Commerce tourism fund at $400,000, replacing the prior 15 percent allocation structure.

Supporters said the change will free fluctuating funds for other county purposes — notably capital road and transportation projects — and avoid automatic increases in Chamber funding tied to tax collections. "We give them a cap and allow the remainder to be used for other county purposes," said a budget official explaining the change.

Opponents and some commissioners expressed concern that the resolution did not explicitly earmark the remaining funds for capital roads in perpetuity, and noted the county's ability to alter allocations in future budgets. Commissioner Gooch and others asked whether the approximate $440,000 projected remainder would be directed to rural road improvements; county finance staff and counsel said the private act that governs the hotel/motel tax limits how the commission may word the resolution and that specific annual allocations must be set in the annual appropriations resolution.

After extended discussion about reserves the Chamber may hold and the mechanics of the budget calendar, the commission voted to approve the cap (recorded vote: 19 yes, 2 no). County officials said the budget and appropriations resolution that follows will specify how funds are allocated for the current fiscal year.