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Lacey LTAC reopens 2026 lodging-tax application window; council to review awards separately from budget

September 05, 2025 | Lacey, Thurston County, Washington


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Lacey LTAC reopens 2026 lodging-tax application window; council to review awards separately from budget
The Lacey Lodging Tax Advisory Committee voted to proceed after City Council directed staff to reopen the 2026 lodging-tax application period; staff announced the application window will remain open through Sept. 19 at 5 p.m.

The extension, described at the Sept. 4 LTAC meeting by Sadie (staff presenter), will delay the committee’s selection timeline so council can review both revenue strategies and the committee’s funding recommendations separately from the city’s annual budget process. "The current application cycle has been reopened and will remain open until probably September 19 at 5PM for all applicants," Sadie said during the meeting.

Why it matters: LTAC typically aligns its funding recommendations with the city budget. Under the change, committee recommendations will be presented to City Council for separate review and action after the committee finalizes its picks; awarded contracts would still be issued to begin in January if the new schedule holds. Staff said the shift allows council extra time to examine lodging-tax strategies and gives applicants more time to submit or amend proposals.

What staff told the committee: Chelsea Yarwood, the city’s accounting manager, and Sadie outlined operational details. Staff said they will keep the committee’s regular meeting on Sept. 25 for application review, and add meetings for interviews and final recommendations on Oct. 9 and Oct. 16. Council discussion of revenue strategies is scheduled for Oct. 12; staff said any council feedback can be relayed back to LTAC before its Oct. 16 recommendation meeting. Staff also will notify all applicants of the extended window and of any interview invitations.

Changes to application review and rules: LTAC staff summarized updates to the scoring rubric and application materials introduced this year. Key changes include:
- Greater emphasis on "tourism promotion" (consolidating prior marketing/attraction categories) and on measurable visitor impact (50+ mile draw);
- Revised community/business collaboration criteria to award points when applicants demonstrate attempts to partner even if partnerships did not form;
- Expanded financial-sustainability questions so the committee can assess whether events could proceed without lodging-tax reimbursement (the program reimburses recipients after events occur).

Recusal guidance: Staff proposed a consistent recusal practice for LTAC members who have potential conflicts of interest. Under the proposal, a member with a financial, professional, or personal conflict would notify staff in advance and leave the room while their application is discussed and decided. "If my Sadie Suites hotel directly donated $10,000 to my Sadie Super Dalmatians, I would have to use the room," Sadie said as an example. Staff noted the practice is consistent with procedures used by other city advisory panels and said exceptions could be considered if recusals would eliminate quorum.

Application volume and next steps: During the initial application window LTAC received 26 applications requesting roughly $860,000 in total. Staff said two of the initial applicants were first-time applicants: the Nisqually Reach Nature Center and a South Puget Sound estuary event submitted by the South Sound Estuary Association (listed in the application materials as "Meet the Beach"). Staff recommended committee members score currently received applications now; a second scoring worksheet will be issued to capture any applications submitted during the extended period.

Interviews: LTAC has discretion to invite applicants for interviews. Staff recommended up to eight interview slots, each with a seven-minute presentation and five minutes of questions. Applicants invited to interview will receive technical guidance and a slide template to standardize presentations.

What’s next: Staff will send updated meeting notices and email applicants about the extension. LTAC will reconvene Oct. 9 for interviews (as needed) and Oct. 16 to finalize recommendations. The City Council will review LTAC recommendations in early November and could request changes before awards are finalized for January contract start dates.

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