Colorado Springs city auditor shares more insight on LART opportunities

COLORADO SPRINGS, Colo. (KOAA) — As many organizations are forced to find funding elsewhere after not being awarded LART money in Colorado Springs this year, the city auditor is sharing more about how the disbursement of funds can be improved.

Natalie Lovell took over as the City Auditor in March.

"Our mission is to encourage responsible stewardship and accountability of public resources through independent and unbiased audits," Lovell explained of her role. "Every day, we're reviewing programs, analyzing risks and helping to ensure that tax dollars are used effectively and efficiently, transparently, and that all programs are performing to their standards."

In October of 2024, many organizers behind community events learned they wouldn't be receiving Lodgers and Automobile Rental Tax or "LART" funds like they had in the past. Some of those events that were impacted included the Western Street Breakfast and the Festival of Lights. The funds are administered by the City Council with guidance of the LART Citizen's Advisory Committee. LART is essentially a "tourism" tax, with two percent of hotels and lodging costs being taxed and one percent on automobile rentals. LART was passed in 1968, but recently there has been a call for more accountability and measureable impacts. The Chief of Staff for Colorado Springs, Jamie Fabos, gave a presentation to the City Council on May 12 concerning LART. In the presentation, Fabos explained the purpose of LART is to attract visitors and enhance the community, but following a study, they believe they need to do a better job of having a more comprehensive strategy. Fabos also pointed out that based on the study, the City of Colorado Springs is the only city they could find that utilizes the funds like this; most other cities use LART funds on capital projects or a single tourism organization.

There have been two audits of LART in Colorado Springs in recent years. One examining LART in 2023, where Lovell's predecessor Jacqueline Rowland found that a review of final reports for 80 applicants awarded 2023 LART funds, excluding the five applicants selected for a full audit, identified 60 applicants had not submitted a final report. A final report is required from each program receiving LART funding. The 2023 audit also found that there was non-compliance with the application and contract in some cases. The final observation noted that some metrics outlined in the key performance indicators (KPIs) were not measurable and/or verifiable. Two of the four organizations were not fully in compliance with the KPIs.

Lovell did her own audit of LART for 2024, which was released last month, as it reveals three opportunities for improvement:

1. Ensure effective communication with recipient and validate organization's invoice detailing expenses.

2. Consult with legal to ensure the intent of the Final Report template aligns with the
contract.

3. Ensure requirements are consistent on all LART documents and consult with legal to ensure requirements are clearly stated in the contract.

"I think there's always room for growth... otherwise I wouldn't have a job," Lovell said with a smile. "The difference between the last two years really shows that progress and what it looks like when there is collaboration between the Council and the administration. In 2023 we identified some key areas for improvement. But one of the bigger takeaways was the administration or a new administrator role funded through LART. It's a great example of action being taken by the administration to better coordinate LART with both entities and those events that take place in our community."

The administrator role Lovell is referencing works under Sports Corp and their salary is handled through LART funds. The administrator will work as a single point of contact for applicants and will help ensure funded entities are adhering to reporting requirements, meeting established key performance indicators, and being good stewards of public funding.

New to the 2026 application cycle for Lart, four tourism impact pillars with specific eligibility criteria that must be met to receive LART funding have been established:

(1) tourist attractions and economic development;
(2) arts and cultural destinations;
(3) sports and community events; and (
4) outdoor recreation.

Another change to LART in recent years was five tourism sector entities have leveraged their expertise to create an industry-specific strategy for their pillar and will review applications against rubrics with oversight from the LART Citizens’ Advisory Committee and City Council. The five tourism sector entities are:

-Colorado Springs Chamber (Tourist Attractions and Economic Development)
-EDC Visit Colorado Springs (Also Tourist Attractions and Economic Development)
-Colorado Springs Parks, Recreation & Cultural Services (PRCS) (Outdoor Recreation)
-Cultural Office of the Pikes Peak Region (COPPR) (Arts and Cultural Destinations)
-Colorado Springs Sports Corporation (CSSC) (Sports and Community Events)

While speaking with Lovell on the topic of LART, she also wanted to point out the City Auditor's Fraud, Waste and Abuse hotline. You can call 719-385-2387 to report any suspected unlawful or wasteful act impacting the City of Colorado Springs government, or its departments, employees, officials, operations, or enterprises. Click here for more information on the hotline.

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