Council questions use of hotel‑motel funds for nonprofit sponsorships

The council debated use of hotel‑motel tax funds to sponsor community nonprofit events after staff presented two requests: a $2,500 sponsorship for a June booth celebration and a $2,500 request at the highest (top) level for the Sydney Parrish Legacy Scholarship.

Council members questioned whether the events met tourism promotion criteria. One council member observed the application projected only about 10 hotel room nights and said, “we're giving them $250 a hotel room,” and argued that the city had intended to move away from direct nonprofit donations funded with hotel‑motel revenue. Another council member urged staff to retrieve the written tourism policy and the prior council’s guidance that had limited such sponsorships.

Staff confirmed the sponsorships would be paid from the hotel‑motel account and that policy language exists but has been used inconsistently. Council discussed referring applications to a tourism committee or reinstating screening criteria to avoid ad hoc, politically sensitive sponsorships. No formal award was made during the study session; council directed staff to locate the prior policy and return with recommendations.