Ocean Shores LTAC weighs 30–40% holdback, tightens 2026 application and reimbursement rules

Denise, Lodging Tax Advisory Committee member, called a special meeting Friday and reviewed the schedule for the City of Ocean Shores’ 2026 lodging-tax grant cycle: applications posted Sept. 2, prescreening by the city clerk due Sept. 30, submission to the committee Oct. 3 and the committee’s recommendation scheduled for the Ocean Shores City Council meeting on Nov. 10, 2025.

The committee discussed whether to hold back more of the lodging-tax fund than the 10% required by the city’s governing resolution. Sarah, city staff member, presented the committee with financial scenarios and said the resolution requires a 10% reserve but staff recommends presenting scenarios that withhold 30%–40% of funds given current hotel conditions and the committee’s priority to cover the convention center’s operating costs.

Why it matters: Holding back a larger share reduces the money available for events and marketing grants but preserves a reserve to cover convention-center operations and unanticipated shortfalls if local hotels underperform or fail to remit taxes.

Discussion and direction

Committee members emphasized the risk posed by local hotel conditions and cancellations. Shannon Rubin, LTAC member, said she is “not fine with less than 30%,” and urged caution given recent poor hotel reviews and several groups…