Arlington council questions LTAC recommendations, seeks revised lodging-tax plan

Arlington city council members spent more than an hour debating proposed 2026 lodging-tax distributions and whether to alter the LTAC (Lodging Tax Advisory Committee) recommendations. Council discussion focused on whether long-running events that already generate substantial revenue should have funding reduced and whether the LTAC scoring system should be updated.

The dispute began after a public commenter who identified themselves as an LTAC committee participant described the committee—s review process as objective and data-driven and said the panel scored applications using criteria established by a previous council. "Each committee member independently scored the applications prior to our meeting," the commenter said, adding that award levels were based on total scores.

Councilmembers debated that approach. Some members argued LTAC—s scoring should be followed because it produces a consistent, auditable recommendation; others said council should reallocate funds to encourage new events and to spread support more widely. Councilmember Jan Schweddy urged restoring LTAC—s recommendation, saying the committee—s process was intended to prevent ad-hoc changes. Councilmember Yvonne Gallardo said LTAC should be used to help start or grow newer events, not to indefinitely subsidize long-established ones.

Councilmembers pressed one another over the specific treatment of Skyfest and other high-attendance events. Members who favored reducing Skyfest—s allocation said that event has strong earned revenue and outside funding and therefore could receive less lodging-tax support. Members who opposed cuts argued that Skyfest is among the city—s largest single drivers of overnight stays and local economic activity and should receive funding at or near its request.

The council did not take final budget action that night. Instead, staff and council agreed to prepare a revised recommendation reflecting the council—s discussion and return it to LTAC; LTAC will have 45 days to comment before the council considers final action. Councilmember Michelle Blythe said she intends to propose LTAC application changes at the fall retreat. Paul (staff) confirmed the process: council—s revised draft will be shared with LTAC for comment and then brought back to council for final approval.

Clarifying details discussed included: the LTAC scoring criteria (created by a previous council), the claim that some applicants reported lodging partnerships outside city limits (noted in the meeting), and that some applicants lost points for lacking hotel partnerships. Council also discussed outreach and timeline: the council is going on recess, so the 45-day comment period will span the break.

Next steps: staff will compile a revised draft of council—s recommended lodging-tax allocations, submit it to LTAC for 45 days of comment, and then return to council for final action after that period. No final funding decisions were made at the meeting.