At their meeting last week, Town Council decided to support Destination Osoyoos in collecting three per cent of MRDT funds, as well as permitting the funds to go directly through the organization. (File photo)

By Vanessa Broadbent

Osoyoos Times

It was a good time for Destination Osoyoos at last week’s Town Council meeting.

Both a 50 per cent increase in municipal and rural district tax (MRDT) funds collected and an agreement allowing the funds to directly go to the marketing organization were granted by Council.

Currently, Destination Osoyoos receives funding based on a two per cent tax on paid hotel nights. Now the organization will collect three per cent, an increase of $150,000.

Council previously passed a bylaw enabling the collection of the additional one per cent, and the decision made unanimously at Council was to write a letter of support to the province to now implement the increase.

However, Council’s decision to allow the funds to flow directly to Destination Osoyoos didn’t go as smoothly.

Currently, the funds are granted to the Town of Osoyoos and then transferred to Destination Osoyoos.

In total, this costs the Town approximately 16 hours of staff time annually, chief administrative officer Barry Romanko said in a report to Council.

The switch to a three per cent tax would also come with more complex and demanding annual reporting requirements, he said, likely increasing the staff time required.

Now, the money will never pass through Town hands, a decision councillors C.J. Rhodes and Jim King voted against and expressed concern for.

“I see the staff time we’ll save, but when it comes to taxation and dollars and how it flows from one level of government to another, I always have a high level of comfort when it’s filtered through the Town system,” Rhodes said.

King agreed: “I understand it would cost us some staff time but I think it’s proved for us to receive the money and then pass it through to them.”

• Read more: VIDEO: Destination Osoyoos Holds Grand (Re-)Opening Of Osoyoos Visitor Centre

Both councillors were outvoted by colleagues Myers Bennett and Brian Harvey and mayor Sue McKortoff.

Bennett referenced a termination clause in the Town’s agreement with Destination Osoyoos that would allow the Town to retain all funds if the Society fails to comply with the agreement.

“I don’t think it’s going to change the control of money,” Bennett said. “(Destination Osoyoos) still has to come to council and do reports and if they don’t do what they’re supposed to do with the money, then the money stops flowing and the Town takes over control.”

McKortoff reasoned that the move is one many other municipalities had already made.

Penticton is one of those municipalities.

However, in 2013 the City of Penticton filed a lawsuit against the Penticton Hospitality Association, saying the organization mishandled funds –  $400,000 worth.

In 2014, a judge ended up ruling that the association was not at fault.

Rhodes remained adamant on his disdain for the decision throughout council’s discussion.

“We’re not talking about small amounts of money – these are huge funding dollars from the province,” he said. “I certainly feel very strongly about us keeping control of this funding … This is way more complex than a transfer from one account to another.”

In the end, the motion was passed with a 3-2 vote.