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Lakewood staff previews 2026 lodging-tax grant schedule; council questions 3% capital set‑aside
Summary
City staff outlined the schedule and funding available for 2026 lodging-tax grants and reminded council that a self‑imposed 3% capital set‑aside can be changed by council vote. Councilmembers asked to reschedule a joint meeting with the Lodging Tax Advisory Committee to discuss policy and uses of funds.
City staff told the Lakewood City Council on July 14 that the 2026 lodging‑tax grant application period opens July 28 and that roughly $4.1 million will likely be available for next year’s awards. Interim City Manager Todd Cross said the city collects 7% lodging tax; by local policy 4% is set aside for tourism uses and 3% is restricted for capital, though all revenue could be used for capital if council so chooses.
Why it matters: the lodging tax funds events, attractions and capital projects that can drive visitor spending and growth in hotel revenue. Council discussion focused on whether the long‑standing 4%/3% split should remain and on ensuring the committee can give council direct policy input.
Cross reviewed the application timeline: applications open July 28; an August 15 notice and an August 18 application deadline; compilation and forwarding to the Lodging Tax Advisory Committee on Sept. 8; applicant presentations Sept. 19; council adoption planned Nov. 17; and contracts effective January 2026. Cross said the city has a committed capital lease payment to the McGavig Center that reduces available funds by $101,850 annually, with the last payment due June 2026.
Cross estimated approximately $4.1 million will be available for 2026 awards. Of that, about $3.0 million would be restricted to capital uses under the council’s current policy and $1.1 million would be unrestricted for tourism uses. He noted the 3% capital set‑aside is a council‑adopted policy, not a state requirement, and can be changed through a code amendment.
Councilmember Brandstatter asked that a joint meeting with the Lodging Tax Advisory Committee be rescheduled so council can hear committee members’ perspectives in person. Councilmember Marcel asked whether any local attraction currently serves 1 million visitors per year; staff said the barn and a potential downtown park were examples used in past discussions but that the 3% restriction came from the city council’s adopted funding guidelines.
Staff said it will work with the city clerk to schedule a joint meeting with the advisory committee before applications are due if council requests that. No formal council motion or vote took place at the study session.
The lodging‑tax application schedule and available‑fund estimate will be part of the November adoption and the contracts coming in January 2026.
