Title
Approval of a Resolution to Reallocate 2020 Lodging Tax Revenue
Recommended Action
Committee Recommendation:
Finance Committee met on April 15 and received a briefing on the 2020 Lodging Tax Revenue and directed staff to prepare a proposal to reallocate 2020 Lodging Tax Revenue
City Manager Recommendation:
Approve the resolution to reallocate 2020 Lodging Tax Revenue
Report
Issue:
Whether to approve a resolution to reallocate 2020 Lodging Tax Revenue
Staff Contact:
Jay Burney, Interim City Manager, 360.753.8740
Kellie Purce Braseth, Strategic Communications Director, 360.753.8361
Debbie Sullivan, Administrative Services Director, 360.753.8499
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Lodging Tax is collected by hotels, motels, and other similar facilities in the City of Olympia. The purpose of collecting Lodging Tax is to generate revenue that can be used for activities and operations to increase tourism. The total tax charged is 4 percent. The first 2 percent of the revenue generated from the tax is allocated to the Washington Center for the Performing Arts (The Center). The second 2 percent is allocated to several local non-profits based on a recommendation from the Lodging Tax Advisory Committee.
The 2020 Adopted Operating Budget appropriated $520,000 in Lodging Tax to The Center; and $405,923, in varying amounts, to fourteen non-profit organizations. Unfortunately, the COVID-19 pandemic has hit our local economy hard, and the 2020 revenue needs to be adjusted because fewer and fewer people are traveling and staying in our local hotels.
The Visitor Convention Bureau currently reports a 20 percent occupancy in local hotels; of that, 30 percent are extended stay and are not subject to the tax. Lodging Tax actual revenue collections could be as low as 50 - 80 percent of the original appropriation. The 2020 Lodging Tax Revenue will not be sufficient to meet the original appropriation.
At this time, staff recommends...
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