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Budget committee reviews lodging tax distribution to Coos Bay North Bend Charleston VCB amid market uncertainty
Summary
Committee discussed how transient lodging (hotel‑motel) tax is split with the Coos Bay/North Bend/Charleston Visitor & Convention Bureau, the legal constraint that 70% of certain lodging tax increases be used for tourism promotion under ORS, a projected $1.2 million in lodging tax receipts and uncertainty in national/international travel trends.
The Budget Committee reviewed the transient lodging tax (TLT) fund and the contractual relationship with the Coos Bay North Bend Charleston Visitor and Convention Bureau (VCB) that administers marketing and the city's visitor information center.
Nicole explained the city collects lodging taxes from hotels, motels and short‑term rentals and has a contractual obligation with the VCB. She told the committee the city expects roughly $1.2 million in transient lodging tax revenue and that the VCB operates the visitor information center with a portion of those funds. "The total transient lodging tax that we're expecting to receive is about $1,200,000," Nicole said.
Committee members reviewed statutory constraints. Nicole and Mayor Joe Benetti referenced changes in Oregon law and local ballot action: the committee was reminded that under the ORS framework enacted with a statewide change, 70% of certain lodging tax revenue must be spent on tourism promotion when the additional rate is imposed; locally the split and local agreements result in portions of the total TLT being allocated to the VCB for marketing and to the city for other permitted uses. Nicole explained the math involves legacy allocations and the additional 2.5% that voters approved; she summarized: "2 sevenths of the original 7%... is contributed to the VCB" under the existing local agreement.
Committee members noted national and international market uncertainty and confirmed staff and the VCB use conservative revenue expectations. Councilors and committee members said they would consider supplemental budgets if revenues exceed projections and recommended continued coordination with the VCB executive director.
Ending: The committee accepted the transient lodging tax budget assumptions for forwarding to council, retaining staff discretion to seek supplemental appropriation if revenue outperforms conservative projections.
