Arts council stresses regional return on local hotel-motel tax funding

Sally Dicks, president of Bravo Greater Des Moines, told the Windsor Heights City Council on April 6 that Bravo’s regional grant model—funded almost entirely by hotel-motel tax revenue—furthers arts access across the metro and directly benefited Windsor Heights last year.

Dicks said Bravo relies on hotel-motel taxes for about 95% of its revenue and intentionally limits other fundraising so it does not compete with local arts organizations. “This funding makes up 95% of Bravo's annual revenue,” she said, and Bravo’s model allows the organization to pass most dollars through to cultural partners and keep administrative costs low.

Bravo reported $51,500 in operating-support grants to two Windsor Heights–headquartered nonprofits and a $40,000 public-art grant to the city last year. Dicks said residents also accessed regional programming: Bravo tracked more than 8,000 paid-tickets and nearly 4,000 free-program admissions for Windsor Heights residents, and more than 1,300 student experiences for Windsor Heights elementary classes.

Why it matters: Dicks warned that proposed changes at the state level that narrow allowable uses of hotel-motel taxes to tourism-specific expenditures could hamstring Bravo’s regional structure and reduce local residents’ access to affordable arts programming. She said Bravo’s investments generate local and state tax revenue—citing an annual example in which about $4.5 million invested into the cultural sector produced roughly $31 million in tax revenue—and urged council members to weigh those local returns when discussing property-tax and allocation reforms.

Council members asked whether pending legislation posed an immediate threat to Bravo’s funding. Dicks said a bill is being monitored at the statehouse and that there are also national conversations about nonprofit regulation that could cause future uncertainty for donors and nonprofit operations. “It doesn’t appear to be going anywhere right now, but it is sitting in ways and means and we’re going to keep our eyes on that one,” she said.

Councilmember Lauren Campbell, who represents Windsor Heights on Bravo’s board, and other council members thanked Dicks for the presentation and for Bravo’s partnership. Dicks closed by encouraging residents and elected leaders to consider the economic impact of cultural funding and by offering to answer follow-up questions.

The council did not take action on the presentation; staff and council members said the information will inform budget conversations as property-tax and hotel-motel revenues are discussed in the coming months.