Port Angeles council votes to fully fund lodging‑tax administration after divided debate

The Port Angeles City Council voted on April 21, 2026 to modify the lodging‑tax advisory committee’s (ELTAC) round‑two recommendation to fully fund the city’s requested lodging‑tax program administration and fiduciary oversight, updating the 2026 lodging‑tax budget to $1,876,045.

Staff framed the vote as a choice between two options. Associate Planner and Natural Resources Grant Administrator Mrs. Borsworth told the council that staff had submitted a round‑two request after council earlier directed staff to allocate 12 percent of available lodging‑tax funds for administration. She summarized the two options: adopt staff’s recommendation to fully fund the remaining requests including the city’s oversight costs (Option A) or accept ELTAC’s recommendation with a reduced administration allocation and program reductions (Option B). “Staff are proposing two options for recommendation tonight,” she said, laying out an Option A budget of $1,876,045 and an Option B budget of $1,817,335.

The disagreement centered on how much staff time and legal oversight is reasonable for administering the lodging‑tax fund and whether the city should subsidize the program from general funds if ELTAC’s lower number stands. Staff estimated the city’s full administration request at roughly $55,824 (12 percent allocation), while ELTAC recommended appropriating $20,000 toward staff administration and using excess reserves for the round‑two awards. Council members and staff explained the legal and audit rationale for tracking and funding accurate administration costs for a special revenue fund: “It is important that those funds are utilized in accordance with the RCW that’s set out from the state,” one staff member said, noting the state auditor’s review obligations.

Some council members defended full funding to preserve legal review and applicant assistance. Deputy Mayor Carr described past confusion when legal review was not embedded in the ELTAC process and urged retaining that review: “I would really caution us from going back to the way it was because that confusion caused legitimately hours of time and discussion,” she said. Several council members also cited the customer service role staff plays with new applicants and the time needed to process contracts, reimbursements and audit reporting.

Other council members and members of the public pressed staff for more granular documentation of the hours behind the administration request. Public commenter Steven Paleo told council he had compared Port Angeles’ administration hours with neighboring jurisdictions and found the Port Angeles estimate comparatively high; he urged council to “ask whether it’s justified” and to require the same documentation from the city that the city requires of other grant applicants.

After roughly two hours of discussion the council adopted Option A to fully fund the program administration request and round‑two awards, instructing the finance director to include the change in the next budget amendment. The motion to modify the March 12 ELTAC recommendation and fully fund all round‑two requests (including the city’s oversight costs) was moved and seconded and passed after a roll‑call vote. Council members characterized the outcome in remarks as a 4‑2 split during discussion.

The vote preserves the city’s practice of legal department review of ELTAC applications and maintains staff’s current level of applicant assistance and reporting activities. Staff will prepare the formal budget amendment for council consideration.

What comes next: staff will incorporate the updated lodging‑tax budget into a formal amendment for council action; ELTAC’s process and staffing levels were also discussed as potential subjects for future policy review to improve efficiency and reduce recurring debates.