A recent report issued by the Arizona Attorney General finds that the Sedona contract with the Sedona Chamber of Commerce and Tourism Bureau, and the city’s administration of that contract, are consistent with the requirements of the Arizona Constitution. The Office concludes that although the payment structure established by the agreement twice caused the City to pay more to the Chamber than was due to be paid under the Chamber’s City-approved budget, an illegal payment of public money did not occur because the City ultimately accounted for the overpayment through additional appropriations. The report closes an investigation requested in July 2018 by then Senator Judy Burges, who represented cities in the Phoenix metro area. Burges asked for a state investigation into whether the city violated “gift clause” prohibitions in the Arizona Constitution by allocating a percentage of bed tax revenues for tourism marketing under its contract with the chamber. Shortly before the August 2018 mayor and council election, during which the contract was a hot topic, Burges withdrew her request.
