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Council pauses on altering Visitor and Convention Bureau agreement tied to House Bill 4148
Summary
Staff presented proposed IGA revisions to align with House Bill 4148; the change would shift about $16,000 to North Bend’s budget but councilors decided not to pursue modifying the intergovernmental agreement now, asking the VCB for more tailored reporting and noting a new $50,000 grant pot.
City staff briefed the North Bend City Council on a proposed revision to the intergovernmental agreement (IGA) with the Visitor and Convention Bureau to reflect House Bill 4148’s new transient lodging tax distribution. Staff said the change would result in roughly a $16,000 differential to North Bend’s local budget but could reduce the VCB’s share of advertising funds.
The staff presentation explained the historical blended splits: pre‑2003 collections used one blend and the 2.5% lodging-tax increase adopted later used a 70/30 split. Staff and the VCB noted that when an RV park’s property moved into tribal trust the source of some transient lodging tax revenue shifted (the tribe now remits in a different manner), affecting local receipts and the VCB’s pooled budget. Staff described the proposed IGA revision as a compliance step with state law and said it would provide the VCB with advanced notice to align budgets.
Janice, the VCB executive director, told the council the bureau recently set aside a $50,000 community‑grant pool intended for tourism projects or infrastructure that demonstrably attract out‑of‑area visitors. “It is the intention that [the grant fund] would be available to the four funding partners to apply for projects that bring heads and beds,” Janice said.
Council discussion weighed the modest local budget gain against the practical benefits of regional advertising and cooperative marketing. Several councilors suggested the VCB provide clearer, North Bend‑specific reporting on how regional promotions translate into local economic benefit; others proposed using the VCB’s new grant pot to offset any local shortfall for community events such as July Jubilee or the holiday skating program. After discussion the council did not direct staff to modify the IGA immediately and instead opted to monitor the issue through the budget season.
Next steps: staff will revisit the IGA and possible reporting changes as part of the normal budget process; the council asked the VCB to provide more specific data on local returns and to clarify grant eligibility and priorities.
