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Lacey LTAC reviews 2026 lodging-tax applications, schedules interviews for up to 10 applicants
Summary
The Lacey Lodging Tax Advisory Committee reviewed 28 applications for the 2026 lodging-tax funding cycle, heard staff updates on process changes and data tools, and recommended up to 10 applicants be invited for supplemental interviews Oct. 9 ahead of a final recommendation to the committee on Oct. 16 and City Council review in November.
The Lacey Lodging Tax Advisory Committee met Sept. 25 and reviewed 28 applications for the 2026 lodging-tax funding cycle, city management analyst Stacy Sigler said at the meeting. Committee members identified a list of applicants they want to invite for supplemental interviews and discussed program rules, data-tracking tools and a substantial budget gap between requests and estimated revenues.
Why it matters: Lodging-tax revenues can be used only for tourism marketing, events and tourism-related facilities; the committee’s recommendations will inform Council action in November and contracts for the 2026 funding cycle. Applicants are competing for a pool that city finance estimates at about $587,500 while total requests this year total $966,719, leaving an apparent gap of roughly $379,219 (staff noted that figure excludes reserves and interest earnings).
What the committee heard and decided: Sigler summarized administrative and policy updates for the review process. The committee voted (procedural vote to approve the meeting agenda and prior minutes was taken at the opening and passed unanimously) and then turned to the application review. Key points staff presented and members emphasized:
- Application pool and finances: 28 total applications — 22 from community organizations and 6 submitted by the City of Lacey for qualifying events or facilities. Staff displayed applicant-provided estimates of overall participants and estimated paid overnight stays; tourism-related facilities applicants reported a projected 18,423 paid overnight stays among their applications. Experience Olympia & Beyond, the committee was told, was one of the five applicants projecting the highest number of paid overnights.
- Administrative changes and grant terms: For this cycle the committee set guidelines that recipients may use up to 40% of an award in advance for marketing expenses, and the committee designated 5% of lodging-tax revenues (capped at $40,000) for city administrative expenses. Staff also noted a procedural change: the City Council will approve LTAC funding recommendations separately from the city budget going forward.
- Interview schedule and format: The committee recommended inviting up to 10 applicants for supplemental presentations on Oct. 9, with a suggested format of 7 minutes for presentation and 5 minutes for Q&A. Committee members said interview questions should focus on lodging-tax‑specific information: scope of tourism activity, estimated paid overnight stays attributable to Lacey, use of lodging-tax funds, and financial sustainability plans.
- Applicants committee asked to interview: Members said they want updates or interviews from Experience Olympia & Beyond (tourism marketing), Nisqually Reach Nature Center (first‑time facility applicant), the Lacey Chamber Visitor Center (returning applicant), and a group of events and festivals that included Hollyfest, Polyfest (Polynesian cultural event), Meet the Beach, the fan‑zone proposal tied to an Olympia/Lacey event, the barbecue festival and the holiday market. Committee members stressed they want clarity on scope, venues and whether listed activities occur inside Lacey or in the city’s urban growth area.
- Data tools and geofencing: Staff described newer data‑tracking tools, including opt‑in geofencing services historically provided by a regional visitor bureau when that bureau has funding to offer those services. Staff said the city itself does not directly supply geofencing; applicants that opt in and whose vendor/marketing partner offers geofencing can have that set up through the visitor bureau if the visitor bureau is funded to provide the service that year.
Context and next steps: Staff said interviews will be followed by the committee’s final funding recommendation at its Oct. 16 meeting. The City Council is scheduled to review and decide on LTAC recommendations in November so selected applicants could receive contracts in January for the 2026 cycle. Staff also warned the committee that council revenue discussions on Oct. 12 could affect allocation guidance before the committee finalizes recommendations.
Meeting procedure note: At the start of the meeting the committee moved and seconded approval of the agenda and the minutes of the Sept. 4 meeting; the motion passed unanimously (the clerk did not provide a member-by-member tally).
