2019-06-20 Lodging Tax Advisory Committee PacketSPECIAL MEETING NOTICE
EDMONDS LODGING TAX
ADVISORY COMMITTEE
The Edmonds Lodging Tax Advisory Committee will hold a meeting on Thursday,
June 20, 2019 at 3:30 p.m. The agenda is attached, miscellaneous items may be
discussed and there will be an opportunity for audience comments.
The meeting will be held at Fourtner Meeting Room — Third Floor, City Hall, 121 5t"
Avenue North, Edmonds
The public is welcome to attend the meeting.
Posted/Emailed: June 17, 2019
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AGENDA
Lod _ iinng Tax Advisory Committee
Edmonds City Hall
Fourtner Meeting Room,
121 5th Ave N
Thursday, June 20, 2019
3:30 — 5 P.M.
1. Approval of April 18, 2019 Meeting Summary (5 minutes)
2. Public Comment
3. Budget 2020
Funding Requests for 2020
4. Miscellaneous
Set next meeting date
Lodging Tax Advisory Committee
Draft Summary Notes from 04/18/19 Meeting
Committee members present: Mike Nelson, City Council
Joe Mclalwain, Edmonds Center for the Arts Executive Director
Frances Chapin, Edmonds Parks, Recreation, & Cultural Services, Mgr.
Pat Moriarty, The Studio
Steve Lyon, Harbor Inn
Committee members absent: None
Staff present: Patrick Doherty, Economic Development & Community Services Director
Cindi Cruz, Economic Development
Carolyn Douglas, Community Communications/Public Information
Officer
Meeting began at 3:03 p.m.
1. Approval of September 26, 2018 meeting minutes.
Joe moved and Frances seconded to approve the 09/26/18 meeting minutes. Motion passed
unanimously.
2. Current budget & reserve funds overview: Patrick discussed attached summary of 2018 budget.
Steve felt that revenue for 2019 has been a bit better than last year. Pat felt the same.
3. Approval of reallocated funds for 2019 Tourism Promotion Awards from 2018 unexpended
project: Frances presented a request to award the Edmonds Arts Festival to promote the Art
Studio Tour an additional $200 from unexpended funds. Joe moved to approve the $200; Pat
seconded, motion passed unanimously.
4. Tourism promotion update including viewing of promotional videos: Patrick discussed slight
changes in tourism brochure that will be printed for distribution through Certified Folder in
Puget Sound region. Tourism partners group was convened in 2018 to create cohesive
advertising plan for the different entities. He displayed different examples of current
advertising: Washington State Visitor's Guide, Sno Co Visitor's Guide, Seattle Business Mag;
Creative District Ad, etc. Digital advertising has increased over existing print ads in the last
couple of years. Committee viewed 3 tourism videos that have been produced by Hiatt Studio
for the City. Also will be producing 4 tourism videos that relate to the City's Creative District
designation to promote tourism based on creative endeavors and activities, such as visual arts,
performing arts, culinary arts, etc.
Update on Creative District Designation: First Creative District Advisory Committee meeting was
held last week. Lots of enthusiasm by the committee. Will be looking at branding the district.
Will have a sign on the freeway provided by the state. There will be meetings monthly till August
and then every two months until 2020 when the process will be reviewed.
19 04 18 LTAC minutes
6. Purpose of Lodging Tax Funds — Overview and how the budget process works: Patrick discussed
MRSC handout. Frances discussed some of the stipulations regarding operations of special
events and festivals. Not a requirement that the events/marketing/etc. result in hotel nights per
se, but all events or activities receiving LTAC grants for their production and/or marketing must
estimate how many hotel nights or trips from beyond 50 miles they may generate. Even events
and activities that do not generate many hotel nights create many important indirect benefits
by enhancing the offerings, activities and interest for visitors to town, keeping them longer
and/or giving them more reasons to come back — both of which could result in more room
nights.
7. Overall LTAC philosophy and discussion of potential uses of Lodging Tax Funds for Edmonds: This
discussion was to specifically consider ending fund balance opportunities. As a reminder, there
is a 25/75% split between Arts Commission 123 Fund and LTAC 120 Fund for General Tourism
Promotion. Frances discussed an internal policy created by the Committee to limit awards to
not -for profits only and reiterated that is not a requirement. The LTAC could theoretically give
money for an event to a for -profit organization. Fund balances have historically been utilized to
help pay for larger projects. Discussion followed and various questions were posed. Grants are
given from 123 Fund and 120 Fund with a smaller limit to the 123 Fund grants. Should we
continue to award grants as requested? Should they be given consideration individually as
received? Committee could come up with plan to collect information regarding allocating
money to an event/capital project, etc. Commit within the next 2-3 years and identify the
project. Discuss at every meeting and have a standing item on the agendas to discuss a future
project to plan. Analysis of past distributions and grants could help determine what should be
funded in the future. We do spend predominately all the money that is received within a year,
leaving the fund balance to carry forward. Questions that arose: Should the LTAC look at
reassessing how they allocate the funds and not necessarily spend all revenue received every
year but reserve some as a minimum to add to the fund balance for future projects? Should the
LTAC allow for a minimal draw -down from the fund balance (say $2500 annually) to allow for
small grants, while still maintaining a large, minimum fund balance? What should the minimum
fund balance be set at (until such time as large project(s) come along to be funded)? . LTAC
should establish a policy that could be discussed at the next meeting. "Opportunity Fund"
brainstorming ideas at the next meeting. Send ideas to Patrick on what to have in a policy
proposal along with budget submittal during budget process.
Summarize: at next meeting to approve budget proposal, creating policy on ending fund balance
opportunity fund, contingency fund, utilize for capital, small amount to help with small grants to
know that is available.
8. Set next meeting date: June 20 at 3:30 p.m.
Meeting adjourned at 4:47 p.m.
19 04 18 LTAC minutes