Los Gatos Weekly-Times

Editorial

Funding makes sense only as fee for service

The Town Council wants to see a written agreement before deciding whether to provide $20,000 to the Town of Los Gatos Chamber of Commerce. That's as it should be.

This is not the first time the town has struggled with the question of whether to fund a business organization.

The former Chamber went out of business owing some $25,000 on a bank credit line. Many in that organization pointed an accusing finger at the town for its unwillingness to pay for services Chamber members believed benefited the town itself.

These are, in fact, the very services the current Chamber, an affiliate of the San Jose Metropolitan Chamber, is asking the town to pay for.

Generally speaking, we think it's a bad idea for business organizations to get handouts from local government.

On the other hand, no one knows better than those who work at Town Hall the chaos that was created when the former Chamber went out of business. When there was no Chamber to answer questions from out-of-town visitors and residents checking on town events, town staff had to step in.

Having staff time diverted undoubtedly cost taxpayers money.

To pay the Chamber a fee for specific services, such as fielding questions about the town, is not such a bad idea.

But it is absolutely essential that the town's money be used exactly this way.

If a business organization--especially one with the backing of the San Jose Chamber--can't stimulate enough interest in the business community to survive, then so be it.

That's not to say there would be no residual benefits for the Chamber if the town agrees to pay for what in some circles would be called visitors bureau services.

The Chamber would benefit greatly by having an ongoing presence downtown. One of the problems the Chamber has had in building membership is that too many people still perceive it as a San Jose organization.

In fact, the Town Chamber boasts a strong local board; it has produced a number of handouts about the town for visitors, and the organization has taken strong positions before the council, including its recent support for patio dining at the Chart House.

Its commitment to take positions is a key reason why any money that is paid to the organization by the town must be specifically for services rendered.

It's certainly valid for some of those funds to help pay the salary of the local Chamber's executive--but only that portion that can be shown to be spent on those activities for which the town has agreed to pay.

The town should not be subsidizing business organizations, but it does make sense for a municipality to contract for specific services. So long as everyone is clear that this is how the money will be spent, and it is spelled out in writing, the council should seriously consider the request.

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