PORT ANGELES — The City Council has awarded $952,658 in lodging tax grants for 2020.
The Port Angeles City Council voted unanimously Dec. 17 to distribute the funds as recommended by the Lodging Tax Advisory Committee (LTAC).
Of the total amount, $408,069 was earmarked for capital facilities, $282,639 will be used for operations and $141,560 will be spent on marketing.
Local events received a $85,000 share of the lodging tax grants and $35,390 was allotted to LTAC priorities.
Lodging tax revenue supports projects that put “heads in beds” by encouraging overnight stays in Port Angeles, city officials have said.
The city’s lodging tax fund is supported by a 4 percent consumer tax on stays at lodging establishments. The tax is taken as a credit against the 6.5 percent state sales tax.
‘Hard task’
Community and Economic Development Director Allyson Brekke said the city received 19 event grant applications totaling $162,500 and 11 non-event funding requests totalling $892,598.
“The Lodging Tax Advisory Committee had certainly a hard task in front of them,” Brekke told the City Council last week.
LTAC considered the proposals at two meetings and recommended the use of $244,794 in reserves for capital and operations.
“Both of those categories had a significant amount of requests, and the committee felt it was justified to direct some reserves to those two categories,” Brekke said.
Council member Lindsey Schromen-Wawrin raised concerns about the sustainability of the reserve fund.
“Those entities receiving operational funding probably could not rely on that in future years to come,” City Manager Nathan West said.
“I think ultimately what was decided by the committee was looking at some one-time expenditures to really help get some of these operational aspects off the ground. But from a budget perspective moving forward, we can’t continue that sustainably.”
City Finance Director Sarina Carrizosa said the lodging tax fund is projected to have remaining balance of $212,300 by the end of 2020.
Council member Mike French questioned the use of lodging tax funds for well-established events such as the Dungeness Crab and Seafood Festival.
The October crab festival was LTAC’s top-ranked event.
“I don’t have any criticism of where it’s ranked,” French said.
“But like I said, I think that it’s not necessarily good to be giving money to the exact same events 20 years in a row.”
Outgoing Mayor Sissi Bruch, who also served on LTAC, said the onus falls on the City Council to provide policy guidance to the lodging tax committee.
Here is a list of the approved lodging tax grants for 2020 (with requests in parenthesis):
Capital facilities
• $200,000 for City Pier and Gateway Transit Center improvements ($275,000).
• $55,679 for Lincoln Park BMX track development ($55,679).
• $50,000 for the new Dream Playground ($100,000).
• $45,000 for the Port Angeles Fine Arts Center ($45,000).
• $35,390 dedicated for reserves.
• $20,000 for recreation and ball fields.
• $2,000 for Feiro Marine Life Center ($2,000).
Operations
• $97,224 for the Port Angeles Visitor’s Center ($97,224).
• $60,000 for recreation and ball fields ($80,000).
• $38,500 for Port Angeles waterfront center ($50,000).
• $38,000 for city priority setting ($38,000).
• $15,000 for Hurricane Ridge Winter Sports Club ($29,905).
Events
• $13,000 for Juan de Fuca Festival of the Arts ($13,000).
• $11,000 for North Olympic Discovery Marathon ($15,000).
• $10,000 for Wintertide Light Art Experience ($12,000).
• $8,000 for Northwest Cup downhill mountain bike race series ($8,000).
• $8,000 for the Dungeness Crab and Seafood Festival ($10,000).
• $5,000 for Arts and Draughts Beer and Wine Festival ($40,000).
• $5,000 for Port Angeles Rams basketball games ($10,000).
• $4,000 for ASB Pro series sprint boat races ($10,000).
• $3,500 for Big Hurt endurance race ($3,500).
• $3,500 for Summertide Solstice Arts Festival ($7,000).
• $3,000 for Big Squatch Festival ($5,000).
• $2,500 for Forest Storytelling Festival ($2,500).
• $2,000 for Elwha Bridge leg of Run the Peninsula series ($3,500).
• $2,000 for Frosty Moss Relay ($3,500).
• $1,500 for Great Olympic Adventure Trail Run ($1,500).
• $1,500 for Salt Creek 24 ($1,500).
• $1,000 for Olympic Adventure Trail Run ($1,500).
• $500 for Age is Just a Number ($4,000).
• A $15,000 funding request from Jazz in the Olympics was withdrawn.
Marketing
• $110,560 for marketing services from Vertigo Marketing (remainder requested)
• $28,000 for tourism commission ($29,000).
• $3,000 for Olympic Peninsula Culinary Loop ($3,000).
Committee priority
• $12,905 for Hurricane Winter Sports Club.
• $10,000 for Clallam County tourism master plan.
• $6,000 for Feiro Marine Life Center.
• $5,000 for Port Angeles Fine Art Center.
• $1,485 for Port Angeles Arts Council.
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Reporter Rob Ollikainen can be reached at 360-452-2345, ext. 56450, or at rollikainen@peninsuladailynews.com.
