Tualatin reports $882,145 in restricted tourism funds; staff recommend strategic tourism plan

Jill Coleman, who completed an internship in the city manager—s office, presented a status report on Tualatin—s tourism program and transient lodging tax (TLT). Coleman summarized how the TLT is collected and distributed: county and local collections feed the city—s share; the city receives 2.5% of the local rate and, of that amount, 30% is unrestricted and 70% is restricted for tourism promotion or tourism-related facilities. Coleman told the council the restricted fund balance at the end of fiscal year 24-25 was $882,145.

"Of the 2.5 City Of Tualatin TLT, 30% is unrestricted and 70% is restricted for tourism promotion or tourism-related facilities," Coleman said. She explained restricted uses are defined to include advertising, strategic planning and research, operating promotion agencies and marketing special events, and that tourism-related facilities include conference or visitor information centers and other improved real property with a substantial tourism purpose.

Coleman ran through five program focus areas adopted in the city—s tourism plan: capital development, events, placemaking, visitor services and marketing. She cited recent progress: the pumpkin regatta—s expansion to a multi-day event, an updated image library completed in summer 2025, a wayfinding signage inventory started during her internship, and routine payments to the Chamber of Commerce (the Chamber receives 5% of the 70% restricted funds as the designated visitor center).

Deputy City Manager Megan George said the plan is now over five years old and staff recommends hiring a consultant to develop a strategic tourism plan with measurable targets, timelines and short- and long-term priorities. George noted the timing aligns with downtown revitalization work and the city is approaching a sizable reserve: "we're getting near to the million dollar mark," she said.

Councilors raised ideas and clarifying questions. Councilor Brooks suggested a visitor center that highlights the Ice Age Trail and the National Water Trail and asked about cross-department collaboration (parks, library); staff said the Ice Age Trail had been considered in the 2019 plan and staff workgroups supported the report. Councilor Reyes requested clarification on the $882,145 figure; staff confirmed it is the accumulated restricted balance, not annual revenue. Don (city staff) said the city collects roughly $300,000 annually from county collection and about $300,000 locally, and staff noted that roughly $210,000 of the annual amount is the restricted portion.

Staff described current distribution practices: the Chamber receives its share by quarterly check under an initial contract and is expected to operate as the city—s official visitor center. Megan George and Jill Coleman said staff will bring the idea of a strategic plan and potential consultant scope back to council as the city prepares priorities for the coming year.

Next steps: staff will include tourism priorities in the council—s annual advance and return with strategic-plan options and any recommended consultant scope.