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Home My WebLink About051024 PT-LTAC Lodging Tax Advisory Committee (LTAC) 2024 Meeting Schedule DRAFT This document is a summary of the yearly approach to LTAC meetings and the development of the LTAC budget. LTAC meets on 2nd Tuesdays, from 3:00-5:00PM in odd months. The development of the LTAC budget is part of the development of the City of Port Townsend budget. This begins nearly 6 months before the start of the subsequent year and includes state-mandated statutory milestones and deadlines. 1. January 10 – Contracting, Review, Call for Proposals. The City initiates agreements with LTAC funding recipients in accordance with current-year budget, including terms, deliverables, insurance requirements, and scope of work. LTAC reviews previous year reporting and assesses current year projections. LTAC reviews the RFP for allocated grant funding. 2. March 12 – Spring Grant Application Review. Review first cycle applications for LTAC funding, including Q&A with funding applicants, and make decisions on grant funding. Depending on revenue forecasts and quality of proposal, LTAC may decide to hold funding awards until Fall Cycle. Advertise for new LTAC members (appointments through May on rolling cycle). 3. May 14 - Budget Priorities and Plan/Project Review – In the May/June time period, LTAC receives a call from Mayor/City Manager to LTAC (and all City advisory boards) for workplan items and budget request. Note that the overall LTAC budget is forecasted by the City Finance team; LTAC makes a formal recommendation to City Council for use of those funds. LTAC reviews progress on the 2024 workplan, reviews data, marketing, and project progress. 4. July 9 - Call for Proposals, Budget Priorities. The City, on behalf of LTAC, advertises a call for proposals for the second half of (or the remaining) allocated grant funding for the year. LTAC considers priorities for next fiscal year and suggests a preliminary LTAC budget. LTAC weighs a range of objectives within the scope of the criteria to determine a recommended budget. 5. September 10 – Fall Grant Application Review, Budget Recommendation to City Council. LTAC reviews proposals for the second half of the allocated grant funding of the year. LTAC votes on a budget and submits a recommendation to City Council in advance of a decision on the final City budget. City Council may choose to approve/incorporate or may send the recommendation back to LTAC for further discussion. 6. November 12 – Annual Review. LTAC reviews progress on the 2024 workplan, 2024 marketing and visitation data, hears from grantees, partners, and contractors on annual work, plans annual meeting schedule, plans 2025 grant deadlines, and ties up loose ends in discussion. Attachment A: General LTAC Information City of Port Townsend Lodging Tax Fund Overview Port Townsend’s Lodging Tax Fund is the primary source of City funding for activities, operations, and expenditures designed to increase tourism. The fund has been used to market Port Townsend; construct and maintain tourism-related infrastructure like public restrooms, winter lighting and garbage facilities; offer sponsorships for events and organizations; pay fee waivers for use of City facilities; and pay debt service, among other things allowable by state law. HIGH PRIORITY will be given to tourism activities that: • Have a demonstrated potential or high potential to result in overnight stays by tourists in lodging establishments within the City of Port Townsend. Preference may be given to stays during shoulder season. • Promote Port Townsend and/or events, activities, and places in the City of Port Townsend to potential tourists from outside Jefferson County. • Have demonstrated or high potential to result in documented economic benefit to Port Townsend. • Have a demonstrated history or success in Port Townsend or are proposed by a group with a demonstrated history or high potential of success with similar activities. • Minimize duplication of services where appropriate and encourage cooperative marketing and/or includes an element of cooperation or partnership. • City Facilities are available on a first-come; first-serve basis. Please ensure that your selected dates are available by checking the City website. A facility-use scholarship will not give you priority to use your selected facility or bump another event from the reservation calendar. State Law Excerpts RCW 67.28.1816 – Use of Lodging Tax Fund. General Information Lodging tax revenue under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for: a. Tourism marketing; b. The marketing and operations of special events and festivals designed to attract tourists; c. Supporting the operations and capital expenditures of tourism-related facilities owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW; or d. Supporting the operations of tourism-related facilities owned or operated by nonprofit organizations described under 26 U.S.C. Sec. 501(c)(3) and 26 U.S.C. Sec. 501(c)(6) or the internal revenue code of 1986, as amended. RCW 67.28.080 – Definitions. • "Municipality" means any county, city or town of the state of Washington. • "Operation" includes, but is not limited to, operation, management, and marketing. • "Person" means the federal government or any agency thereof, the state or any agency, subdivision, taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual. • "Tourism" means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. • "Tourism promotion" means activities and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing of special events and festivals designed to attract tourists. • "Tourism-related facility" means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor, and used to support tourism, performing arts, or to accommodate tourist activities. • "Tourist" means a person who travels from a place of residence to a different town, city, county, state, or country, for purposes of business, pleasure, recreation, education, arts, heritage, or culture. 2022 2023 2024 Adopted Adopted Proposed 10/10 LTAC regular meeting Beginning Fund Balance 415,629 522,592 - Revenues Taxes 441,000 525,000 550,000 Licenses & Permits - - - Intergovernmental Services - - - Charges for Goods & Services - - - Fines & Penalties - - - Miscellaneous Revenue 150 750 750 Other Increases - - Other Financing Sources (inc. Transfers In)- - - Total Revenue 441,150 525,750 550,750 NOTES Expenditures Salaries & Wages & Benefits - 75,000 75,000 Services 194,187 264,343 299,918 Visitor Center Operations 109,180 136,475 83,400 Marketing (incl. CD support in 2023) 45,000 56,250 115,000 Tyler Plaza Tent Rental 2,500 Data Collection 20,000 General Fund Overhead 19,507 17,618 17,618 Creative District Support - 1,000 8,400 Facility rental waivers 10,000 10,000 10,000 2024 Community Grants - 25,000 30,000 Big Belly Contract 10,500 15,500 15,500 Capital Outlays 15,000 15,000 15,000 5,000 Other Financing Uses (inc. Transfers Out) 125,000 125,000 125,000 Total Expenditure 334,187 479,343 519,918 Net Change in Fund Balance 106,963 46,407 30,832 Ending Fund Balance 522,592 568,999 Sufficient to Meet Obligations Transferred to Debt Services through 2035 for Water Street Overlay, Visitor Center Sims Way frontage, SR 20 pedestrian walkway and Quincy/Jefferson Street Sidewalks. Three year contract for this amount Winter Lights PT Mainstreet Banners and signage Per Finance Dept see breakout sheet 15K in each round Half of a Communications & Marketing Manager see breakout sheet focus on shoulder seasons. co-op between various entities: included but not limited to: OPTC, VIC, Main Street, Contractors City of Port Townsend LODGING TAX FUND BUDGET SUMMARY 2024 Draft Proposal For Discussion Lodging Tax Page 1 of 2 NOTES Infrastructure Spend 2024 VIC operations $83,400 debt 24%25,400.00$ Media Ad Buys: DMO Big Belly $15,500 infrastructure 23%56,250.00$ Winter and Pivot Marketing Lights & Banners $20,000 marketing 22%10,500.00$ Digital Marketing: DMO $118,900 salaries/strategy 14% 22,400.00$ Pass-thru contracts grants 6%114,550.00$ waivers 2% Note on proposed restroom infrastructure project: there is an estimated two-year planning period with implementation in the third year. Marketing 2023 for comparison% spend 2024 Page 2 of 2 2024 Proposed VIC Budget Allocation NOTES Expenditures Salaries & Wages & Benefits 42,600 based on Q3 2023 YTD actuals VIC Occupancy 17,500 based on Q3 2023 YTD actuals VIC Operations & Volunteers 13,300 based on Q3 2023 YTD actuals Services 10,000 Website and Social Media for Enjoy PT 6,000 based on Q3 2023 YTD actuals Photo and video asset collection 4,000 Marketing - fund managed by Marketing Manager: decisions of co-op w/ various entities, including but not limited to: OPTC, VIC, Main Street, Contractors Total Expenditure 83,400 City of Port Townsend LODGING TAX FUND BUDGET SUMMARY 2024 Draft Proposal For Discussion Lodging Tax BUDGET SUMMARY 2024 Draft Proposal For Discussion 2024 Proposed Main Street Budget Allocation NOTES Expenditures - Winter Lights 15,000 provided year over year Creative District 8,400 2024 request, see below Implementation of the Arts and Culture Plan 3,000 Operation of Artists Directory 2,400 Soundcheck support 3,000 Marketing - this is folded into a collaborative marketing effort Total Expenditure 23,400 City of Port Townsend LODGING TAX FUND Lodging Tax PORT TOWNSEND CREATIVE DISTRICT FINANCIAL LTAC REQUEST 2023 Create Artist Registry 6,000.00$ operation year 1 2,400.00$ Develop Arts & Culture Plan 15,000.00$ implementation of Arts & Culture plan year 1 3,000.00$ WSDOT Creative District Highway signage 1,000.00$ (75% underwrite --3 signs) Soundcheck support 3,000.00$ year 1 TOTAL YEAR ONE 30,400.00$ 2024 Artist Registry operation year 2 2,400.00$ implementation of Arts & Culture plan year 2 3,000.00$ Soundcheck support year 2 3,000.00$ TOTAL YEAR 2 8,400.00$ 2025 Artist Registry operation year 3 2,400.00$ implementation of Arts & Culture plan year 3 3,000.00$ Soundcheck support year 3 3,000.00$ TOTAL YEAR 3 8,400.00$ GRAND TOTAL 47,200.00$ ptcreativedistrict.org