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Thurston County commissioners direct staff to increase lodging-tax pool and support FIFA fan zone
Summary
At a Sept. 3 work session, Thurston County commissioners gave staff direction to raise the county's lodging-tax distribution to $250,000 for 2026 and to allocate $84,000 toward a regional FIFA fan zone, for a combined $334,000. Staff said the county could fund up to $450,000 without depleting reserves.
Thurston County commissioners on Wednesday, Sept. 3, 2025, directed staff to increase the county's lodging-tax (LTAC) distribution to $250,000 for the 2026 cycle and to allocate $84,000 of LTAC funds to help pay for a regional FIFA fan zone, for a combined total of $334,000 in county support.
The board's action came during a work session presentation from Ellen Massey, management analyst, and follow-up discussion with County Manager Leonard Hernandez and commissioners. Massey summarized the LTAC program and applicants and said the county received 23 applications in 2025 and funded 16 projects with a $150,000 distribution.
Why it matters: The lodging tax is restricted to tourism promotion, marketing and related activities; expanding the pool would put more county funds toward events and facilities that county staff and commissioners say bring visitors and out-of-area spending. Staff told commissioners that anticipated LTAC revenue for 2025 is in the $200,000–$250,000 range and that a current fund balance was roughly $369,000, giving the county flexibility to increase distributions without immediate budget shortfalls.
Most important facts: Massey told the board that the 2025 funding priorities had been county-owned projects, applications demonstrating a high ratio of paid overnight stays, and projects in unincorporated South Thurston County. Commissioners discussed adding a fourth priority for "community impact" to recognize large, regionally known events that may not directly show high hotel-night counts but draw visitors to the county.
Commissioners also debated equity with municipal LTACs. Commissioner Wayne Fournier asked how city LTAC revenues compared with the county; staff said city distributions are based on the lodging tax revenue each jurisdiction collects and are not automatically prorated by population. Commissioners said staff would provide additional comparative data on city LTAC receipts and clarify whether platforms such as Airbnb are remitting tax to the county.
On the FIFA fan zone, staff described a multijurisdictional proposal led by the local chamber that had been scaled back to a $300,000 regional plan. Under that plan Olympia, Lacey, Tumwater and Thurston County would contribute; Thurston County's share was estimated at about $84,000. Staff said the chamber can scale the event to the revised budget and that an associated app would allow organizers to place interactive fan-zone locations across Thurston County to encourage visitors to travel to multiple towns.
Staff recommendation and board direction: County staff recommended increasing the LTAC distribution to $250,000 and adding the $84,000 contribution for the FIFA fan zone. Commissioners indicated majority support during the work session (four commissioners signaled concurrence by a show of thumbs). The action at the work session was a direction to staff rather than a formal roll-call appropriation; staff said they would return with timeline, selection criteria and the formal application process for LTAC recipients.
Clarifying details aired at the meeting included: - 2025 applications: 23 submitted, 16 funded with the $150,000 2025 pool (Ellen Massey). - Staff's cited fund balance: about $369,000 available to smooth revenue variability. - Staff's capacity estimate: the county could fund up to $450,000 in 2026 and still retain a year-end balance; $250,000 was presented as a staff recommendation and the $450,000 figure was shown only as the maximum based on current receipts.
What happens next: Staff will report back in two to three weeks with LTAC timeline and selection-process details, provide comparative data on city LTAC receipts, and proceed with planning for the FIFA fan zone if local jurisdictions confirm funding. The board indicated it wanted LTAC priorities communicated to the LTAC committee, including countywide community-impact events, fairgrounds projects, and the FIFA fan zone.
Ending note: Commissioners emphasized the county's interest in directing LTAC funds to events and facilities that advance the board's shared goal of economic and cultural asset development, while asking staff and the LTAC committee to improve metrics and documentation of "heads and beds" (hotel-night) impacts for applicants.
