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City to propose lodging-tax code change to allocate funds directly to EDC, add flexibility for nonprofit grants
Summary
City staff will propose code changes to send the recurring lodging-tax allocation directly to the Brighton Economic Development Corporation (EDC) instead of the city's Economic Development Department, and to allow council flexibility to allocate lodging-tax reserves to nonprofits under a public-purpose finding.
City Attorney Alicia Calderon told Brighton City Council staff will bring forward an ordinance update to the municipal code governing lodging tax allocations.
Calderon said the 2023 change that split projected lodging-tax revenues 50/50 between the Economic Development Department and Communications & Engagement proved administratively awkward because the Economic Development Corporation (EDC) is the primary user of those funds for tourism and attraction work. The proposal would revise code language so the recurring allocation is made directly to the EDC. Staff also proposed adding limited flexibility for the council to allocate lodging-tax reserves to nonprofit organizations when a public-purpose finding is made, to allow the city to respond to opportunities (for example, supporting the chamber) without being strictly bound to the 50/50 split formula.
Mayor Pro Tem said she favored sending recurring revenues to the EDC but opposed giving council direct allocation authority that could politicize grants; she suggested the EDC or Communications & Engagement handle nonprofit grant requests. Council Member Green proposed a flexible approach in code that allows allocation to either entity following a public-purpose finding. Staff said they would draft language reflecting the direction and return with an ordinance.
No formal vote was taken at the study session; staff will return with a draft ordinance.
