DuPont council studies lodging-tax awards after 39 grant requests; committee applied a 23% adjustment

At a study session following the council’s business, city staff and the local Lodging-Tax Advisory Committee (LTAC) explained how lodging-tax (LTAC) funds are allocated and why the committee applied a roughly 23% adjustment when deciding part-A awards.

Carmen, a city staff member who helps manage the LTAC process, told the council that state law and MRSC guidance limit lodging-tax expenditures to activities that “exclusively increase tourism” and capital or operations of tourism-related facilities. Carmen said the committee uses those principles to judge applications and that the committee “read through all of the grants” and heard applicants who appeared to answer questions.

The LTAC chair described the application round: the committee reviewed 39 grant requests for Part A and awarded approximately $449,000. The chair said three applications were not funded and that, to manage a shortfall, the committee applied a proportional reduction — described in the meeting as a 23% cut — to some awards so more projects could receive partial funding rather than rejecting many requests outright.

Committee members and councilors discussed how bids are evaluated. Amy Walker, who participates in the LTAC process, said the committee collects post-event reporting, including zip codes, and requires those materials before reimbursing grant recipients. Walker cited sports and tournament events as examples that deliver measurable hotel room nights.

Council members pressed staff about hotel participation on the committee and timing. One council member asked how the city reaches hoteliers; staff said hotels are frequently short-staffed and that outreach is ongoing. The council also asked about Part B funding. Staff explained that the city receives the 4% hotel/motel tax monthly into a restricted LTAC fund and that a second (Part B) round may open in the spring only if additional revenue comes in or if awardees return funds.

Speakers pointed to specific uses: farmers market support, heritage events, barbecue and other special events, and golf tournaments that the LTAC chair said “are what the hoteliers like to see” because tournaments reliably fill rooms. The meeting included examples: a PGA Junior Championship request for $12,000 received $10,000, and a $60,000 golf-fest application was fully funded because the event guarantees tracked room nights.

City staff flagged three requests that were not funded as being more properly supported with city capital funds rather than lodging-tax money (for example, signage on city property), and said they would bring those funding options forward in a future budget amendment.

What happens next: staff will place the Part A awards on the council consent or regular agenda for a formal vote at an upcoming meeting (staff noted a January 27 vote in the discussion). Council members may elect to approve the committee’s recommendations as a block or consider applicants individually, though staff said past practice is to accept the committee’s list.

Reporting requirement and oversight: the LTAC chair said recipients must submit documentation (room-night/zip-code reporting and event paperwork) to receive reimbursement, and Pierce County tourism and national associations provide additional economic-impact data the city can use when evaluating future requests.

The study session closed with staff offering to provide more detail on specific applications and to continue outreach to local hotels to increase owner participation on LTAC.