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Arts board reports multi-year decline in lodgers-tax revenue; adds $22,000 buffer for out‑of‑cycle requests
Summary
Board was informed that lodgers-tax revenue has trended down roughly $100,000 annually over three years; staff added $22,000 to tier-4 recommendations as a buffer and noted about half of grant requests were referred to other funds such as a stadium grant.
Anna, the city's public-art administrator, told the Arts & Culture Board Thursday that Littleton's lodgers-tax revenue has declined over the last three years and that staff are seeing an approximate $100,000 drop per year in that revenue stream.
"It's not news for anyone that the revenue has been declining... over the last 3 years. We figured, as you all know, that it's about a $100,000 down every year," Anna said. She added that June showed a summer uptick but that the city has not received subsequent monthly numbers yet.
Staff presented a revised executive summary of the board's grant recommendations across four tiers and said an additional $22,000 was reserved in tier 4 to serve as a buffer for out‑of‑cycle requests. "We decided that that was where we still fill an additional buffer, in case we have to continue to, to, take down our tier 2 numbers," Anna said. Board members were told the buffer should allow the board to avoid making additional cuts in August, a pattern the board faced the previous two years.
Board members raised several related questions during the discussion, including whether short-term rentals (Airbnb, VRBO) contribute to lodgers-tax revenue and how much they account for. Anna said the finance department will be queried but that the lodgers-tax remittance data currently mixes hotel and short‑term rental receipts and no definitive figure was available. "We don't, but that's a really good question... they are included as supposed to be remitting the lodgers tax from any of their short term rentals. So it's a good question, and we don't have an answer at this point," Anna said.
Other details from the meeting: - Referral volume: Staff told the board that roughly 50% of grant requests from the board's cycle were referred out to other sources, including a stadium grant and other partnership funding. Anna said the stadium grant program had about $105,000 remaining from a prior year that the administering entity planned to disburse this year. - Next steps and timing: The revised lodgers-tax summary and the board's recommendation will be included in the packet for City Council for the Aug. 26 study session. Anna said the study session will be informational and that policy changes to the lodgers tax itself are not planned for that meeting; possible policy revisions would be discussed with the board in November and go to Council or the City Manager's office as appropriate.
Board members asked for a postmortem in November to consider whether to change grant processes or policy after observing outcomes from this cycle.
The lodgers-tax update will be part of the materials the Arts & Culture Board takes to the Aug. 26 study session with Council.
