Board approves small tourism grants policy to fund events under $5,000 from hotel‑tax revenue

County staff proposed and the Board of Supervisors approved a staff‑administered microgrant policy for tourism projects with budgets below the county micro‑purchase threshold (under $5,000), with funds drawn from transient‑occupancy (hotel) tax revenue.

Under the memorandum of understanding (MOU) presented by staff, the county would pay 50% of requested funding up front and the remaining 50% upon completion and documentation of promotional and reporting obligations. Eligible projects must “clearly support overnight tourism,” comply with Visit Louisa branding and reporting rules, partner with a lodging or county business, and provide post‑event metrics such as attendance and marketing data. Failure to meet requirements would trigger reimbursement of the initial payment.

Staff said the policy is designed for events that often arise on shorter timelines than the quarterly tourism advisory committee meetings, and would allow certain smaller events to receive prompt support while still preserving oversight. Examples discussed included Fourth of July fireworks, a car show at Pleasant’s Landing and a Bluegrass Festival; staff noted that events that do not directly generate overnight stays (day‑only events) are less aligned to the transient‑occupancy tax’s statutory purpose.

Supervisors asked clarifying questions about whether funding would divert money from other projects and whether the transient‑occupancy tax (TOT) fund is derived from overnight stays; staff confirmed the TOT is a 7% tax on overnight stays and the tourism fund is not general‑fund revenue. The board approved the MOU and directed staff to add clearer language in the policy explaining that funds derive from overnight stays and are intended to increase lodging usage.

The motion to proceed with the three pending requests in the queue was moved, seconded and approved unanimously.