Deputy City Manager Michael Morris outlined a proposed special events funding policy to the Prescott Tourism Advisory Committee on Jan. 15, proposing a tiered approach that would prioritize large, brand‑building events for marketing sponsorship.

Morris said staff divided events into three tiers and proposed that ‘‘those who in this category [city marketing sponsorships] generate at least a $100,000 in either tourism or sales tax in order to qualify’’ and have at least 5,000 visitors from outside the region and 1,000,000 marketing impressions. He described a funding formula that would return 50% of the taxes an event generates to the organizer, capped at $80,000, and said the city would require a third‑party economic impact study (Arizona State University was named as the intended partner) to verify tax generation and set contract values.

The policy, Morris said, would treat city events (such as Fourth of July and the veterans parade) as general‑fund community events rather than tourism‑funded events, while the marketing sponsorship category would target nonprofit or non‑city organizations that demonstrably build the city brand. Morris listed Arizona’s Christmas City, Whiskey Off Road, and the rodeo as the three events that currently meet the draft criteria.

Committee members pressed staff on specific details: how in‑kind city services (street closures, police, solid‑waste support) will be counted, how marketing impressions and attendance will be verified, and whether legacy events like the summer concert series would qualify. Staff acknowledged a typo on one slide about in‑kind accounting, explained that the rodeo receives in‑kind support under a lease that staff will refine, and confirmed that tourism funds must be spent on marketing under state law and will be verified through the required reports.

Morris said council would need to approve contracts, and staff currently envisions multi‑year agreements (likely five years) with a required impact study in year four for renegotiation. He asked TAC for feedback before taking the proposal to city council next month; the committee did not take formal action on the item but signaled general agreement and encouraged staff to proceed to council.

Next steps: staff will begin economic impact studies for the named events, finalize contract terms for council consideration, and return policy language through the council process. The TAC may provide a formal recommendation at a future meeting or members may speak at the council hearing.