A new campaign in Whitefish aims to promote shopping locally, while explaining the city’s resort tax — specifically how an increase in the tax is going toward a conservation easement for Haskill Basin.

The campaign comes on the heels of a voter-approved increase in the city’s resort tax. The change takes effect July 1 resulting in a 3 percent hike at lodging, bars and restaurants, and retail establishments in Whitefish.

The 1 percent increase will be used to generate about $8 million toward a 3,000 acre conservation easement in Haskill Basin with F.H. Stoltze Land and Lumber Co.

Whitefish City Council last month tentatively agreed to contribute $25,000 to the buy-local campaign. The Whitefish Chamber of Commerce, the Whitefish Convention and Visitor Bureau and the Heart of Whitefish have all signed on to participate, as well.

Councilor Andy Feury said the city needs to help businesses mitigate potential impacts on sales.

“We need to go out and sell the tax rather than wear it like a scarlet letter,” Feury said. “We need to head off the flight of dollars down Highway 93.”

Rhonda Fitzgerald said the Heart of Whitefish wants to participate in the campaign because it’s important to continue improving the economic vitality in the community.

“Local businesses are the heart and soul of the community and it’s important that they are supported,” she said. “By shopping with local businesses you directly contribute to things that you appreciate about hte community — water conservation, open space, bike paths, parks, good sidewalks — supporting local businesses means supporting all of this.”

Dylan Boyle, executive director of the WCVB, said the campaign fits in with its goal marketing to travelers.

“From the visitor prespective, we have a lot of geo-travlers that we market to,” he said. “We want to let them know how they can make a difference when they travel. We want to send the message that if you spend locally in Whitefish you are contributing to the protection of open space and water quality.”

The easement is aimed at protecting the Haskill watershed, which is the primary source of Whitefish’s drinking water.

Prior to the passage of the increase, several business owners spoke out about concerns that the increase would mean a decrease in business and drive customers to Kalispell. At the time, proponents of the vote vowed to launch a shop local movement should it pass.

Feury said the education campaign would go beyond asking people to shop locally, but explains that a portion of the resort tax goes toward the conservation easement.

“It’s an investment in our economic future,” Feury said. “We want people to understand that their consumer behavoir effects the quality of life in this community.”

The shape of the campaign is still to be determined, Feury said. He expects to return with a more specific proposal before the city approves placing the money in the budget.

Feury emphasized the importance of ensuring that resort tax collections continue to increase in the coming years. The city estimated an increase in the resort tax collections of $1 million annually as a result of the 1 percent to cover the payment of a general obligation bond.