The Clallam County Lodging Tax Advisory Committee voted unanimously Sept. 11 to allocate $2,150,000 for the first round of 2026 lodging-tax-funded grants, a sum that includes placeholders for the Olympic Peninsula Visitor Bureau and parks/fair facilities.

Committee members said they deferred a final decision on a second round of funding and will reassess after additional revenue data is available in the coming months. The motion, made by Beth Pratt, executive director of the Swim Dungeness Valley Chamber of Commerce, and seconded by another committee member, passed with all present voting "aye." Pratt moved: "I move that we allocate 2,150,000.00 in the first round inclusive of OPVB and the parks fair and other, and that we pause on a decision on allocations for a second round of funding, dependent on income and data over the next so many months."

The vote followed a lengthy discussion of recent revenue volatility, reserve policy and the purpose of a two-round grant cycle. County finance staff member Mark (county staff presenter) summarized recent trends and the county's financial position: "I am projecting that we end 2025 with LTAC revenues of $2,127,425." He told the committee that a Department of Revenue audit produced a net refund to Clallam County of about $75,000 that depressed April receipts; excluding that adjustment, April would have shown a 9.1% year-over-year decline rather than the larger headline drop. Mark reported that revenues turned positive starting in May (2.5% growth), with June up 6.9%, July up 27.2% (reflecting May lodging activity) and August up 16.4%; as of August the fund had generated $1,203,323 in revenue, incurred $1,546,396 in expenditures and carried an ending reserve of $998,641.

For 2026 planning, staff presented a conservative revenue forecast of about $2,016,000 and a placeholder total spend of roughly $2,400,000, which would leave an estimated ending reserve of about $1.4–1.5 million. Staff said the draft budget assumes $800,000 for the Olympic Peninsula Visitor Bureau and $49,000 for parks/fair facilities, leaving roughly $1,551,000 as the flexible portion of the budget for committee allocation.

Committee members debated how much to allocate in round one versus hold for round two. Some members urged conservatism given international travel uncertainty and potential county fiscal pressures; others argued the committee has a history of underspending and should use reserves to support local organizations and events. Several members emphasized the second round’s purpose: to capture eligible projects or events that cannot be planned in time for a fall deadline. One member noted the second round prevents applicants from waiting a full year if needs arise after the first round, saying the second round was implemented for that reason.

After discussion, the committee chair restated the motion: allocate $2,150,000 in the first round (inclusive of OPVB and parks/fair facilities), which staff estimated would leave approximately $1,350,000 available to deploy in round one via the RFP process and about $350,000 potentially available for round two, subject to actual revenue results. The committee approved the agenda and April 10 meeting minutes earlier in the meeting and later approved the public notice for the call for first-round applications (deadline listed as noon Friday, Oct. 10) before opening the public comment period.

Committee members asked staff to return to a future meeting with a structured conversation about reserve policy and options for intentionally reserving funds for larger, multi-year projects; staff suggested using the county's tourism master plan and other planning documents to improve visibility on multi-year capital and maintenance needs (for example, trail maintenance on the Olympic Discovery Trail). Several members suggested outreach to local organizations to gather five-year plans so the committee can anticipate larger capital or programmatic requests.

Votes at a glance: the committee approved the agenda (motion moved and seconded; no opposition), approved the April 10 minutes (moved and seconded; no opposition), approved a motion to allocate $2,150,000 for the first round of 2026 LTAC funding (motion by Beth Pratt; seconded by a committee member; unanimous approval), and approved the notice of call for applications with the Oct. 10 deadline (motion moved and seconded; no opposition).

The committee also reiterated county policy on capital funding eligibility: only governmental entities may receive lodging-tax-funded capital projects, while nonprofit organizations may request programmatic or marketing support but not capital funding. The committee discussed using a portion of the budget for an "unanticipated projects/keep-the-lights-on" line similar to a COVID-era carryover to help organizations facing sudden need.

The meeting closed after a brief public comment and an invitation from one committee member to review the Swim Chamber's digital tourism magazine online.