GRANTS, N.M. – The City of Grants Lodgers Tax Board heard a request from Don Jaramillo for bike rally funding. The city will take the leadership role for the rally and is seeking support from the Grants MainStreet Project, Inc. and the Grants/Cibola County Chamber of Commerce, according to Jaramillo who explained that city officials have asked him to serve as event director. Jaramillo, who is employed by the city as special projects coordinator, said at the Nov. 19 meeting that he was hoping to apply for the funds in January 2021 to ensure the benefits of purchasing advance advertising.
Lodgers tax monies are given to non-profit groups through a competitive application process each spring. A second series of awards is available in November if sufficient revenue has been collected, but that was not the case this year, according to Chair Scott Gray.
The tax is collected from customers who stay overnight at hotels, motels and RV parks located within city limits. This fee is in addition to the sales tax paid for accommodations, according to city officials.
The pandemic reduced the amount collected between July 1 and the end of October. Chair Gray asked if Laura Jaramillo, city manager, was available to provide an estimate on the amount of lodgers’ tax that the city has collected to date.
The manager was not present but Chris Roybal, city marketing director, estimated a $17,000 decrease in revenue compared to the previous year.
Board member Tommy Simpson said he thought the rally had “cost the city too much money” in previous years. Member John Martinez commented that the rally became monotonous and urged the event planners to “have something new each year.”
D. Jaramillo oversaw the rally for six years, 2006-11, and estimated that the annual budget was $160,000-$170,000 for the July event. He anticipated the 2022 budget to be $125,000. A committee will be responsible for the 2022 event and D. Jaramillo expects to apply for $30,000-$50,000 in lodgers tax funding when the LTB initiates the application process for 2022.
The members emphasized that the chamber of commerce, the New Mexico Mining Museum, and the bike rally had consistently been awarded the largest portions of the lodgers tax funding during the years that Grants MainStreet had hosted the event. This resulted in less money being available for the community’s charitable groups.
Chair Gray and Vice Chair Kade Elkins acknowledged that the LTB is in favor of having the annual multiday rally. Each offered suggestions for reducing event expenditures and ideas for attracting tourists to the outdoor rally.
Gray reminded Jaramillo that the five-member advisory board is appointed by the city council. The members make recommendations to the councilors who have the final vote as to how the lodgers tax funds are spent.
“I think it can be done [returning the bike rally to downtown Grants] and it can be successful,” said D. Jaramillo (who was not a city employee when he served as rally event director in previous years).
Next meeting
Thursday, Dec. 17, city council chambers, 600 W. Santa Fe Ave., Grants, 9 a.m.
Visit cityofgrants.net or call 505-287-7927 for more information.