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Council directs drafting of tourism commission ordinance to tighten oversight of room-tax funds
Summary
After extended debate about oversight of room-tax revenue, the council voted to direct staff to draft an ordinance creating a tourism commission that would oversee how the municipality’s 70% room-tax allocation is managed and distributed.
The city council voted to direct staff to draft an ordinance to create a tourism commission charged with overseeing room-tax revenue and its use.
Council member Brian Soule urged forming a commission to gain financial oversight of locally collected room taxes, saying the current arrangement "as it is right now, we give that 70% away," and expressing concern the existing entity does not provide adequate transparency on spending. He argued a commission would provide a separate checking account and clearer controls over how tourism dollars are spent.
Several council members warned that creating a commission requires careful drafting. One council member who consulted peer municipalities and the League of Municipalities said, "the state statute is a bit convoluted," and recommended legal review to ensure an ordinance specifies permitted uses, membership, and reporting requirements. That speaker reported that some municipalities previously struggled to secure contract terms that required their contracted tourism entities to provide financial details.
Members debated how much control the commission would have versus the existing tourism entity (referred to in discussion as the local tourism organization). Supporters said statute requires a commission and that the commission may contract with an entity for marketing while retaining authority over how room-tax revenue is used. Opponents and cautious members pressed for clear ordinance language on membership, appointment process, duties and dollar thresholds for spending.
The council considered and approved an amendment to the original motion asking staff to prepare a draft ordinance rather than attempting to create a commission immediately. The amendment passed in a recorded vote described in the meeting as "4-2." Following that, the body voted to move forward with drafting a tourism-commission ordinance and return it to the council for review and possible adoption.
The council also discussed related logistics raised by the tourism committee earlier in the meeting — including proposals for banners, public-art murals, and a visitor-kiosk pilot — and asked staff to include statutory reporting requirements and options for oversight in the draft.
Next steps: staff will prepare a draft ordinance laying out the commission’s structure, duties and reporting requirements, with council review at a future meeting.
