In a recent government meeting, significant concerns were raised regarding the management of tourism-related tax revenues in Grand County. An audit conducted in 2019 highlighted the importance of tourism promotion for attracting visitors, yet it revealed that the county has not adhered to statutory spending guidelines.

The audit found that Grand County underspent on tourism promotion while overspending on mitigation efforts, improperly categorizing certain expenses. Notably, expenditures for trail ambassadors and promotional videos were deemed inappropriate as they did not directly contribute to attracting new tourists. Additionally, the county failed to comply with Generally Accepted Accounting Principles (GAAP) concerning prepaid expenses, with several payments made just before a deadline that allowed for economic diversification spending, raising questions about their legitimacy.

The meeting also addressed the Transient Room Tax (TRCC), which is intended to fund tourism-related facilities. The county's classification of the Grand Center as a convention facility was contested, as it primarily serves as a senior center. This misclassification could potentially broaden the scope of TRCC spending to include various other county facilities, including courthouses and jails, which diverges from the intended use of the funds.

Legislators expressed concerns about whether the funds are effectively supporting high-quality jobs or merely subsidizing lower-wage positions in the tourism sector. However, the audit did not assess the economic return on investment from these tourism subsidies, focusing instead on compliance with tax regulations.

The discussions underscored the need for clearer guidelines and accountability in the use of tourism tax revenues, particularly as the county transitions to new spending rules following the expiration of the economic diversification period on June 30, 2023. The meeting concluded with a call for further clarification of statutes to ensure proper use of funds moving forward.