Council discussed the 2026 lodging‑tax distribution and whether to modify the advisory committee’s recommended allocations. Paul presented the process: the LTAC advisory committee returns a distribution and council can propose adjustments before the committee has 45 days to comment and council’s final action.

Councilmember Deborah Nelson urged deference to LTAC’s process and highlighted that lodging tax funds are generated by overnight stays: “It only makes sense that they get the higher scores,” she said, noting the committee’s scoring emphasizes hotel nights. Several councilmembers nonetheless pushed for redistributing some funds to smaller local events to help them grow.

Council questioned the scoring transparency and asked for clearer breakdowns of applicants’ other funding sources (county LTAC, sponsorships, ticket revenue) and application budgets. Heather Logan and others asked staff to ensure future applications include dollar amounts for sponsorships and other revenue so allocations can be compared consistently.

After extended discussion, councilmembers signaled consensus to reduce the Arlington Fly‑In/Skyfest allocation from its requested amount (previous application amounts ranged higher) to $20,000 and to redirect funds to increase several other awards: Arlington Farmers Market (+$4,000 to reach 75% of its ask), Stilly Chamber Fourth of July (+$2,500 to 75% of its ask), and Arlington Street Fair (+$5,455). Council also discussed funding a downtown sound system project (phase‑1 design request of $24,000) but several members suggested asking the applicant to return with a full package so the commission could evaluate a complete proposal. Staff said legal restrictions on lodging‑tax eligible expenses would be checked before any final allocations are approved. Paul said staff will do follow‑up research (including whether for‑profit applicants’ requests meet statutory criteria) and return to council with a revised worksheet next week; no final vote was taken at the workshop.

Councilmembers emphasized respect for the volunteer LTAC committee’s work while also asserting council prerogative to reallocate funds to encourage newer events. Staff will return with clarification on applicants’ other revenue streams and on legal eligibility for specific line items before council adopts a final plan.