Title
Review of 2025 Lodging Tax Funded Tourism Service Proposals
Recommended Action
Move to create a set of funding recommendations for City Council approval through the 2025 budget process.
Report
Issue:
Whether to recommend funding of all, part, or none of the 2025 Lodging Tax Funding applications.
Staff Contact:
Amelia Layton, Inspire Olympia Program Specialist, Office of Community Vitality, 360.570.3808
Presenter(s):
N/A
Background and Analysis:
Annually, the Olympia Lodging Tax Advisory Committee (LTAC) makes recommendations on use of approximately one-half of the City's Lodging Tax Fund. Per a long-standing agreement that pre-dates the Committee's creation, the City uses the other half for capital and operating costs of the Washington Center for the Performing Arts, a City-owned facility.
An open call for tourism services funded by the Olympia Lodging Tax Fund was advertised beginning, June 17, 2024. The application deadline was September 18, 2024. LTAC members have reviewed and scored individual applications using the published set of review criteria.
Thirty (30) applications were received for a total of $1,259,244 in requested funding. The City’s Finance Director anticipates new Lodging Tax revenue for 2025 to be $675,000 and the estimated fund balance to start 2024 (also referred to as reserves) is estimated at $444,565.
Climate Analysis:
Tourism inherently has a climate impact due to the requirement of travel.
Equity Analysis:
The inclusion of questions around accessibility considerations and equity and inclusion is the first step to encourage applicants and funded organizations to build their event/activity/facility to be inclusive to everyone’s participation. These questions do affect the review and scoring of applications. The addition of the non-discrimination language front and center to the application indicates to the applicant the seriousness of which the City of Olympia takes discrimination and that failure to comply will impact funding. Finally, the inclusion of applicant’s mission statement will allow reviewers to ensure values of the organizations are in alignment of the values of Olympia.
Neighborhood/Community Interests (if known):
Many major community events and facilities receive funding from this program. For some events and facilities, the Lodging Tax funding is critical for their continued operation.
Options:
1. Approve funding recommendations.
2. Do not approve funding recommendation.
Financial Impact:
Anticipated new Lodging Tax revenue for 2025 at $675,000 and the estimated fund balance to start 2025 (also referred to as reserves) is estimated at $444,565.
Attachments:
Chart 2025 Lodging Tax Applications
Chart of Olympia Lodging Tax Award History