Title
Discussion of Inspire Olympia and Lodging Tax Advisory Committee Programs
Recommended Action
Discussion only. No action required.
Committee Recommendation:
Not referred to a committee
City Manager Recommendation:
Discuss the Inspire Olympia and Lodging Tax Advisory Committee Programs, including their authorizing legislation, purpose, goals, and opportunities to streamline how the programs are administered.
Report Issue:
Whether to discuss the Inspire Olympia and Lodging Tax Advisory Committee Programs, including their authorizing legislation, purpose, goals, and opportunities to streamline how the programs are administered.
Staff Contact:
Marygrace Goddu, Cultural Access Program Manager, Community Planning & Economic Development, 360.480.0923
Amelia Layton, Senior Program Specialist, Community Planning & Economic Development, 360.570.3808.
Presenter(s):
Amelia Layton, Senior Program Specialist
Marygrace Goddu, Cultural Access Program Manager
Background and Analysis:
On April 16, the Community Livability and Public Safety Committee discussed an analysis on the effectiveness of Council-Appointed Advisory Bodies. As a result of that discussion, the Committee asked staff to explore opportunities to streamline the Lodging Tax Advisory Committee (LTAC) and Inspire Olympia.
Both the LTAC and Inspire Olympia are granting programs that support economic vitality in Olympia with a focus on events, arts and culture. Each program is authorized by state statute, receives dedicated tax income that is distributed via competitive grant awards, and has a fund advisory board that is supported by City Staff. Annually, each advisory body forwards recommendations to the City Council for their approval.
While similar in structure, LTAC and Inspire Olympia have different statutory requirements and goals. LTAC promotes special events and community assets that attract an outside audience, while Inspire Olympia strengthens our local creative nonprofit sector for the benefit of Olympia residents.
Lodging Tax funds (RCW 67.28.1816) are specifically intended for attracting tourism, for tourism marketing, to support special events and festivals that attract tourists from 50+ miles away, and to support the operations of tourism-related facilities. Lodging Tax recipients can be non-profits, for-profit businesses, or city programs, and they are evaluated on the basis of the number of travelers and ‘heads in beds’ they draw.
Cultural Access Taxes (RCW 36.160.090) are intended to strengthen and sustain a healthy and inclusive nonprofit cultural and science sector, benefiting the Olympia community through increased access to creative cultural experiences. Funding is only awarded to nonprofit organizations who are mission-focused in arts, heritage, culture or science, and they are evaluated based on the public benefits that Olympia residents will receive from proposed activities or programs.
Inspire Olympia supports year-round programs in addition to festivals and events and emphasizes efforts to lower barriers to participation by providing opportunities and experiences for free or at reduced cost, encourages collaboration among local cultural nonprofit groups, supports public education, and seeks to build community.
There is some natural and appropriate overlap among recipient organizations of both programs, and there is a similar flow to grant administration for both programs.
With the 2022 passage of the Inspire Olympia initiative, City Staff recognized the value in bringing LTAC and Inspire granting programs into administrative alignment for consistent representation of City of Olympia values, to present a similar ‘face’ to the community, and to improve efficiency.
As a result, Olympia’s Lodging Tax Application and Guidelines were updated in 2023 at the same time that Inspire Olympia’s Guidelines were developed, and both programs now promote our values around equity, access and inclusion. These values are featured in the grant criteria and the application review process for both programs. In addition, a single grant administration platform now supports both programs and the Neighborhood Grants program too, giving applicants a single access point. The same platform serves our processing of grant review, scoring, approval, contracting, reporting, and invoicing for all three city grant programs. This similarity facilitates customer support and creates processing efficiencies further enhanced by overlapping staffing across programs.
The fund advisory bodies for each program differ in membership and workload, reflecting different program goals and subject matter expertise that is needed. LTAC’s membership is required by statute to include representatives from the community involved in the Lodging Tax-funded opportunities and representatives from the businesses that collect Lodging Tax revenue, in equal numbers; and one elected official who is to serve as chair, for a minimum of 5 members. These five individuals review and evaluate approximately 30 applications in September of each year and set funding award levels to recommend to City Council.
The Cultural Access Advisory Board (CAAB) is established in the municipal code, and its membership follows a state requirement to include citizen representatives with interests relevant to the work of the program including leaders in the business, educational, and cultural communities. The CAAB includes 9 members and elects a chair and vice-chair. The annual workload to review and score Inspire Olympia grant applications is significantly larger than Lodging Tax, expected to number about 100 in even-numbered years when applications are accepted for both granting pathways, and 60 to 70 in odd-numbered years. Additional citizen representatives are recruited to join CAAB members on Review Panels to support the workload. When scoring is complete the 9-member CAAB convenes to set award levels based on completed scoring and the available funding, and forwards its recommendations to City Council in May each year.
Climate Analysis:
There is no climate impact related to this update.
Equity Analysis:
The complementary nature of Inspire Olympia and LTAC supports equitable investment of these tax resources.
Updates to the Application Guidelines for Lodging Tax added questions about accessibility, equity and inclusion, to encourage applicants and funded organizations to be inclusive to everyone’s participation. Non-discrimination language was also added, with notice that failure to comply will impact funding. Finally, the applicant’s mission statement was added, allowing reviewers to ensure the values of the organizations are in alignment with the values of the City.
Neighborhood/Community Interests (if known):
Many major community events and facilities receive funding from LTAC that is essential to their operation.
While Inspire Olympia funding also supports some major events and institutions, roughly half of all Inspire grant awards support a broad array of small, community-focused organizations that engage Olympia residents in workshops, rehearsals, educational exploration, and performances in the arts, culture, heritage and sciences; many of these smaller community organizations are of deep and longstanding community interest.
Financial Impact:
Lodging Tax will distribute a total of $1,110,000 in grant awards in 2025 (Jan - Dec).
Inspire Olympia will distribute a total of $2,650,000 in grant awards in 2025-26 (July ‘25 - June ‘26).
Lodging Tax revenue and Cultural Access Tax revenue are dedicated funds that may be used only for the purposes authorized by law and municipal code.
Options:
1. Discuss the Inspire Olympia and Lodging Tax Advisory Committee Programs, including their authorizing legislation, purpose, goals, and opportunities to streamline how the programs are administered.
2. Do not discuss the Inspire Olympia and Lodging Tax Advisory Committee Programs, including their authorizing legislation, purpose, goals, and opportunities to streamline how the programs are administered.
3. Take other action.
Attachments:
LTAC and Inspire Olympia Comparison Chart
2025 Common Awardees