New tourism promotion fund shifts transient lodging tax revenue; committee reviews grant recommendations and reserves for cash flow

Budget staff briefed the committee on the newly created tourism promotion fund, which will receive transient lodging tax (TLT) revenues following council-approved ordinance changes.

Staff said the tourism fund will retain approximately 55% of collected lodging tax revenue while about 44.6% is transferred to the general fund; the transferred portion becomes general-fund dollars once moved. The tourism promotion fund has no beginning fund balance in this first year and staff emphasized careful cash-flow management as the new fund comes online.

The committee reviewed recommended tourism allocations and grant recommendations from the city’s application portal. Recommended items included the tourism promotion services contract (current contractor: Dallas Area Chamber of Commerce) — a contracted service that will be procured by RFP and that staff expects to bring to council for award — AutoCast walking-trail app support, host-compliance software for short-term rental regulation, Fort Dalles Museum support, cruise-ship dock costs and a potential $200,000 earmark that could support either a Columbia Gorge regional bike-hub component to the Federal Street Plaza or partnership work with the Discovery Center and Fort Dalles Museum.

Staff also described a contingency line labeled “tourism opportunity projects” (staff said this is a working label) to buffer timing and revenue uncertainty in the fund’s first year.

The committee discussed previously funded partners and noted that some applicants should first pursue funds available through the tourism services contractor before requesting city general-fund support. For example, staff advised groups seeking marketing support to approach the tourism services contractor that will be selected by RFP. Committee members also asked for clearer deliverables in grant requests; staff said the city will continue to refine application criteria and require post-award reporting and metrics.

Staff noted adjustments to past parks-related funding that result from changes to how TLT dollars are allocated; as an example, the Northern Wasco County Parks & Rec request was reduced after accounting for water service IFA payments and other shifts to Wasco County maintenance responsibility at Kramer Field. Committee members asked whether Wasco County had agreed to cover the $40,000 water IFA contribution; staff said that shift reflected a prior decision and an existing intergovernmental funding agreement.

Staff said the tourism promotion services RFP award is expected to come to council on June 2 and reiterated that the tourism promotion fund will require close monitoring of revenue inflows in year one.