Oak Harbor council keeps ELTAC grant pot near prior level, plans application window for late July

The Oak Harbor City Council on June 9 reviewed the lodging-tax (ELTAC) program and indicated support for keeping the total grant pool near last year’s level, up to $475,000, for the 2027 cycle while preserving a significant fund balance.

Grants Administrator Wendy Horn provided an overview of the lodging tax and ELTAC process, citing state law (RCW) that limits allowed uses to tourism marketing, special events designed to attract tourists, operations and capital expenses for tourism-related facilities, and related staff support. Horn said the city currently receives 4 percent of lodging-tax collections (state plus local authority) and that the city’s 10-year fund-balance trend shows an estimated end-of-2026 balance of about $675,000.

Horn noted one statutory change in flux: the Joint Legislative Audit and Review Committee (JLARC) paused some ELTAC reporting requirements for 2026, meaning grantees this year may not have to fill out the state reporting form. Council and staff discussed whether the city should still require municipal reporting to preserve local accountability.

Council debate centered on the total award amount, geographic eligibility and scoring, and whether to allow single-year and multi-year awards. Several council members urged maintaining accountability and better financial reporting from applicants; Council Member Stucky and others recommended scoring advantages for events that generate overnight stays in Oak Harbor or the immediate area. Mayor Pro Tem and others expressed a preference for keeping the system largely unchanged for one cycle while a largely-new advisory committee settles in.

Council signaled consensus to set the total available awards at up to $475,000 for the upcoming cycle; staff will return with a formal recommendation as an action item and open the application window (targeted late July to mid‑August). The tentative timeline Horn presented calls for applicant presentations in mid‑ to late August, ELTAC scoring in September, and final council approval by mid‑ to late October.

Horn also presented options for single-year and three-year awards; council favored maintaining both single-year and three-year application paths. Council members asked staff to consider reporting requirements and scoring rules (including possible geographic preference scoring), and to preserve funds for potential capital projects if a significant need were identified.

Horn estimated the preliminary 2027 revenue by applying a 2.5 percent growth assumption to 2026 collections; the estimate and the fund-balance projection will be updated when 2026 actuals are known early in 2027. Commitments already identified for 2027 included roughly $55,000 toward marina debt service and approximately $45,000 toward island tourism partnership items (as described in staff materials).