Business consultant Neale Minch, a Manitou resident, presented his analysis of Manitou Springs’ 2023 sales tax to City Council at its May 14 work session.
According to Minch, sales tax for December 2023 showed that traditional business, particularly lodging, went down 5 percent. A decline has been seen across Colorado — although Manitou Springs tourism fared below average, Minch said.
Parking revenue showed that transactions are about the same as in 2022, suggesting there were a similar number of visitors, but they’re spending less.
“Even though our parking rates have increased, the hours per transaction was virtually unchanged — people were buying two or three hours of parking. … I wasn’t expecting that,” Minch said.
He said that shopping was stable throughout the year, and that actual occupancy for lodging was 41 percent vs. 34 percent in 2022, but that sales tax went down 18 percent.
“We can’t come up with a specific big reason that would have caused this, but it’s virtually every single month. Also, restaurants were basically flat for the year … the overall volume of business has stayed stable, although costs have increased,” Minch said.
Councilor Judith Chandler asked Minch why revenue from some months, such as February, were surprisingly high.
Minch said that could be the result of business owners catching up with their tax payments. City Finance Director Becca Davis agreed.
“We just have some months when, all of a sudden, some individual will file four months all at once, and that skews it off the chart,” Davis explained.
Mayor John Graham asked about the possible impact of short-term rentals on lodging, but Davis said those tax revenues are included in the lodging category.
“My sense is that we should be in a ‘don’t panic, but monitor’ position,” Mayor Pro Tem Nancy Fortuin said.
Visit Manitou Springs Executive Director Leslie Lewis pointed out that travel to and from Europe has been increasing post-pandemic, so visitors might be going there, rather than staying in the United States and Colorado. Lewis has met with local lodging operators to work on marketing strategies.
“Can we do more to capture those people who are coming here, but not staying overnight?” Chandler asked.
Lewis replied, “We are doing a lot of digital advertising to try to get those people before they check into a hotel in Colorado Springs.”
Another factor may be the closure of two lodging properties: the Dillon Motel and the Green Willow Motel.
Marijuana sales tax revenue also declined last year. The January-October figures (what is available at this time) range from an 8 percent drop in June 2023 to a 14 percent drop in October 2023 when compared to 2022 revenues.
Peak Analytics’ entire presentation is available at tinyurl.com/PeakAnalyticsManitou2023.
Creative Alliance MOU
Also, council reacted favorably to a revised memorandum of understanding with Creative Alliance Manitou Springs.
The discussion focused on revising and combining previous agreements that the Manitou Springs Arts Council and Manitou Springs Creative District had with the city. The MSAC and MSCD merged to form the nonprofit Creative Alliance Manitou Springs (CRANE) in 2022; the plan was to create a temporary MOU until a permanent revision is completed after the revamped Plan Manitou.
CRANE is a volunteer board of artists and arts supporters who help support the visual, performance, literary and culinary disciplines through public art projects, educational and cultural programs and charitable activities.
Manitou Springs’ roles include assisting CRANE in carrying out its annual goals and objectives through support from its city liaison and updates to council. The city promotes and supports CRANE to meet Creative District certification requirements.
Also, the city provides support from staff for public art installations and deinstallations, and funds economic development/promotion.
CRANE will present recommended public art to council for review after public process. The city will maintain public artwork in partnership with CRANE and its artists for repairs of $500.01 to $999.99 and pay the Colorado Intergovernmental Risk Sharing Agency deductible for claims of $1,000 or more.
CRANE Chair Ralph Routon said this temporary MOU validates CRANE as the entity serving as the state-certified MSCD and overseer of the Art on the Avenue program that maintains and cultivates public art in the city.
“To review CRANE in its previous form, the MSCD worked out an MOU with the city in late 2019 (that was) approved by council and signed in 2020. Two years ago, both sides agreed to work on a new MOU after the MSCD and MSAC merged to form CRANE. A long, rough draft was developed, but with many questions from all sides,” Routon said.
“Last year, the CRANE board agreed, with the suggestion of some council members, to resume working on an MOU, but that was delayed. … The board decided to go without an executive director for the rest of 2023 as we went through a planning strategic process.”
Audrey Gray joined the MSAC in 2010, served as treasurer and board member and then assumed the reins as interim executive director after Becca Sickbert resigned in July 2023. Gray also attended the work session.
“We’ve just been awarded a $7,000 grant from Colorado Creative Industries to fund four new murals,” Routon said. “We’ve learned good lessons along the way, building a healthy budget, not spreading ourselves too thin and have benefitted greatly from being a single entity with an involved board, committees and executive director.”
Fortuin said the new MOU is clear and simpler than the previous version, and offered some recommendations.
“You talk about the two roles of CRANE and the role of the city, and I am wondering if it would be worth splitting the city between staff versus responsibilities and roles for the council. My concern is getting politics involved in selecting public art, if there’s criteria or a process by which council knows what approving and installation means,” Fortuin said.
Gray said that, in the past, MSAC’s procedure was that the pieces of art were deemed approved unless a council member objected.
“I think that was trying to strike balance between letting the professionals do their job, because our art committee is made up of professionals. But, (it also left) room for if they run amuck and approve something that either though our public comment process, we find out that the public hates or just do something wildly inappropriate, there is some mechanism there,” Gray said.
“My main concern with us choosing a piece and doing the public process is, everything seems great and suddenly council says no.”
Graham said there have been occasions when art was installed before council was notified.
“I’m glad we’re able to work together. … I appreciate the work you have done,” he said.
Council plans to approve the MOU at its next regular session, scheduled for 6 p.m. May 21.