Cedar Point: Forecasting record revenues in 2022

SANDUSKY — The area's top officials collecting public tax dollars and overseeing how they get spent predicted a record year for Cedar Point. And in a region economically dependent on tourism, it's a welcome sight considering what happened in recent times. Finance employees working for Erie County's and Sandusky's governments estimated area residents and tourists should pump more than $27 million in taxes through four different revenue streams in 2022. It's believed to be the highest annual amount ever when factoring those income sources: taxes from admissions, bed, sales and parking. As the nation transitions out of a pandemic, and with entertainment venues no longer saddled by various restrictions — as what occurred in 2020 and 2021 due to COVID-19 — officials, as indicated in their budgets, anticipate a major fiscal bounce back. During those two years, when Cedar Point and other area attractions faced setbacks, capacity limits restricted attendance, meaning fewer people visited. This translated into public sector officials working with fewer tax dollars, cutting back on various projects, laying off workers and making other tough decisions just to scrape by. Meanwhile, in the private sector, it caused a negative chain reaction in various surrounding communities, as many other businesses and industries, either directly or indirectly, rely upon Cedar Point's success for their own survival. For instance, several restaurants trimmed hours of operation, some shops closed, and many people hit the unemployment line. But 2022 brings new optimism, and it starts with opening day for Cedar Point this weekend — a day many living, working and/or traveling to Erie County have looked forward to for a long time. "Cedar Point is immensely valuable," said Larry Fletcher, the president of Shores & Islands Ohio, the area's tourism bureau. "It draws millions of guests to the area annually, who generate hundreds of millions in spending," Fletcher said. "The lodging (or bed) tax portion of this spending contributes to our marketing and destination development efforts that attract additional visitors and associated benefits." Fletcher noted Cedar Point and its partnered indoor and outdoor sports centers "help fill hotels, support small businesses across the region and attract a new audience to the area year-round. Sales and admissions taxes generated by guests drawn to Cedar Point and its affiliated operations provide benefits in some way to all residents of Erie and surrounding counties." Making sense of the dollars and cents Here's a quick look at the four income streams fully or greatly influenced by Cedar Point and what each is projected to produce this year: • The admissions tax — $6.3 million At 8%, it's the amount someone entering Cedar Point or another Sandusky-based, for-profit venue spends on a ticket. Sales from Cedar Point, however, contribute roughly 99% of Sandusky's admissions tax account. Funds generated from admissions tax represent about 25% of Sandusky's $25 million annual budget, spent on a wide range of public services. • The parking tax — $250,000 At 8%, it's a fee placed on drivers entering Cedar Point. In fall 2021, officials voted to increase the admissions tax rate — from 4% to 8% — and bring back a parking tax — enacted for one year, in 2003 — to help pave the way for many game-changing projects. It also aims to strengthen partnerships between all who live, work and play in the city. This would include constructing a new causeway, doubling as Cedar Point's main entrance; building a new recreation center for city residents; creating a water taxi system in downtown Sandusky; supporting various programs at the Sandusky State Theatre; generating funds to further advance economic development and destination-related investments; bolstering city services; and more. The deal also ensured Cedar Fair, Cedar Point's parent company, would maintain a corporate presence in Sandusky. • The bed tax — $3 million At 4% in Erie County — 2% goes to the local visitors' bureau, Shores & Islands Ohio, and the other 2% pays debt for the indoor and outdoor Cedar Point sports complexes on Cleveland Road (U.S. 6) — anyone staying at a county-based hotel, motel or home-like setting, typically advertised on websites such as Airbnb or VRBO, must pay a fee to stay there. Depending on the city in Erie County, a guest could pay additional taxes. • The sales tax — $17.8 million In Erie County, the sales tax rate equates to 6.75%. From that amount, 5.75% goes to the state, and 1% stays in Erie County. It's a fee tacked onto taxable goods. It's one of the lowest rates among Ohio's 88 counties. Funds generated from sales tax represent about 56% of Erie County's $32 million annual budget, spent on a wide range of public services. When looking at recent sales tax figures, Erie County collected $19 million in 2021 but only expects to receive $17.8 million this year. Why's that? "Last year, everyone had extra money because of the federal stimulus (checks), and since those supports aren't going to be there this year, we think spending is going to be down," Erie County commissioner Matt Old said. "But we do this because we would rather come in lower and be surprised with higher numbers than vice versa," Old added. "If we overbudget and overspend, and the actual collection comes in lower than what we thought, then we would have to do budget cuts at the end of the year." Sounding off Two other local officials who supervise their respective budgets, Erie County commissioner Pat Shenigo and Sandusky city manager Eric Wobser, talked about the importance Cedar Point plays for this area: • Shenigo: As we learned recently in the pandemic, Cedar Point's success is absolutely vital to our local economy. They draw millions of guests each year — and even more now with the indoor and outdoor activities at Sports Force Parks — who patronize our hotels, restaurants and stores. Tourism puts millions of tax dollars into our local economy, which, in turn, provides services to our citizens. Cedar Fair's continuing investments have made Erie County a year-round destination for families throughout the U.S. As we witnessed recently with Cedar Fair and our water parks closed, a drastic drop in tax income jeopardizes funding for a variety of critical services to our residents, including law enforcement, judicial and children services, to name a few. Fortunately, Erie County, because of careful planning, had the financial reserves necessary to weather the events without cutting services. • Wobser: Cedar Point draws millions of people to Sandusky every year, and it is the largest employer in the city. The admissions tax generated by guests going to Cedar Point is a significant part of the city's general fund revenue. The agreement reached with Cedar Point last fall, which increased the admissions and parking tax, is providing additional revenue which will help us to continue investing in Sandusky's infrastructure and neighborhoods while also further positioning the city as one of the top destination communities in the country.