Staff told council the proposed FY26 package includes a reallocation of a portion of hotel occupancy (HOT) revenues for historic preservation and an interfund transfer to support public safety.

Krista, finance staff, said the draft removes $1,000,000 from an earlier tourism line (a reconciliation with the tourism bureau’s submitted budget) and reallocates $500,000 in an intercompany transfer to support police, fire and EMS in the general fund. The draft also keeps money in the hotel tax distribution for additional historic preservation grants and staff said they expect to publish applications and advertise the increased funding when awards are available.

Council asked staff about tracking and administering the increased historic preservation funding; Krista said awards would be tracked on a spreadsheet and through the application/award process, and that historic preservation distributions historically were modest (a few hundred thousand) so the increased pool would be notable.

Tourism capital items in the draft include the substation renovation for public safety and a $400,000 commitment the city would contribute toward a proposed glockenspiel project; staff said the agreement has been drafted but further location and agreement details remain under discussion.

Discussion vs. decision: the council did not finalize award procedures or locations for the glockenspiel during the meeting; staff will continue discussions with the Hotel Lobby Association and other stakeholders and provide details in upcoming documents.

Ending: staff will provide a detailed breakdown of the HOT revenue and proposed distributions in the July 14 packet and continue coordination with tourism stakeholders.