Lodging Tax Advisory Committee

__________________________________________________________________________________________________ _________________________________________________________________________________________________ Moses Lake Lodging Tax Advisory Committee Chair – Council Member David Eck | Tim Molitor | Richard Hanover | Barry Lawson | B.J. Garbe August 31, 2020 at 3:00 p.m. Call to Order – 3:00 p.m. Roll Call New Business 1. Approval of Minutes – October 17, 2019 2. 2020 Application Status and Budget Review 3. 2021 Application Process 4. 2021 Application Timeline LTAC Communications and Reports Adjournment Remote Meeting Access Please click the link below to join the webinar: https://zoom.us/j/91002529362 Or iPhone one-tap: US: +12532158782,,91002529362# or +13462487799,,91002529362# Or Telephone: Dial (for higher quality, dial a number based on your current location): US: +1 253 215 8782 or +1 346 248 7799 or +1 669 900 9128 or +1 301 715 8592 or +1 312 626 6799 or +1 646 558 8656 Webinar ID: 910 0252 9362 International numbers available: https://zoom.us/u/adZr3JoG7q  MOSES LAKE LODGING TAX ADVISORY COMMITTEE October 17, 2019 The regular meeting of the Moses Lake Lodging Tax Advisory Committee was called to order at 4:02 p.m. by Council Member/Chair David Curnel in the Council Chambers of the Civic Center, 401 S. Balsam, Moses Lake, Washington. ROLL CALL Present: Council Member/Chair: David Curnel, via teleconference Committee Member Tim Molitor and Richard Hanover. Staff: Finance Director Cindy Jensen, and Executive Assistant Lia Gunderson. Absent: Committee Member Leslie Ramsden and B.J. Garbe. NEW BUSINESS Chair Curnel explained that the Moses Lake Chamber of Commerce had contacted Council to withdraw their LTAC request for funding for the Visitor Center and asked the City to take over the responsibilities of the Visitor Center. Council suggested reassigning LTAC’s $10,000 recommended funding for the Chamber to the City to start a Visitor Center in the Museum. The Parks Department would be responsible for the Visitor Center. Action Taken: Committee Member Hanover moved to recommend the $10,000 in LTAC funds set aside for the Chamber be awarded to the City for a Visitor Center second by Committee Member Molitor. The motion carried unanimously. The meeting adjourned at 4:06 p.m. ____________________________________ Council Member David Eck, Chair ATTEST: ___________________________________ Debbie Burke, City Clerk LTAC Meeting 8-31-2020, Page 2 of 11  City of Moses Lake Hotel/Motel Tax Historical Use 2019 & 2020 Budget, 2021 Available 2019 2019 2020 2020 2021 Note Budget Actual Budget Estimate Estimate 1st 2% Hotel/Motel Tax - gs 42 Balance Forward (carryover from prior yr) $ 335,890 $ 335,890 $ 177,545 $ 197,845 $ 149,645 Annual Receipts (HMT plus Interest) 360,000 399,769 382,500 310,000 310,000 Expenditures: Debt Repayment on bond (ends 2026) 1 57,200 57,200 57,200 57,200 57,200 General tourism promotion/conf. Larson Rec Center Architect Fee/Ball Field Imp. 500,000 500,000 300,000 300,000 300,000 Music licensing- Miscellaneous 1,500 914 5,000 1,000 1,000 Admin-City Service Charge 15,000 Total Expenditures 573,700 558,114 362,200 358,200 358,200 Ending Balance 122,190 177,545 197,845 149,645 101,445 2nd 2% Lodging/Tourism Tax - gs 44 Balance Forward (carryover from prior yr) $ 237,865 $ 237,865 $ 147,665 $ 205,186 $ 213,198 Annual Receipts 360,000 399,769 382,500 310,000 310,000 Expenditures: Debt Repayment on bond (ends 2026) 1 57,200 57,200 57,200 57,200 57,200 LTAC Awards 375,248 266,000 244,788 245,500 Total Expenditures 450,200 432,448 323,200 301,988 302,700 Ending Balance $ 147,665 $ 205,186 $ 206,965 $ 213,198 $ 220,498 Calculation of moneys available to distribute in 2021: 2021 Revenue Estimate 310,000 Plus: 2020 Ending Balance 213,200 Less: 2020 Debt Service 57,200 Hold back revenue for last 4 years for emergencies 174,000 Net available to distribute $ 292,000 15% of current year revenue 46,500 Adjusted Net available to distribute 245,500 Note: 1 debt payment on restructured bond to construct lazy river/flow rider/ice rink Other historic uses of HMT include concerts, trade show attendance, and targeted marketing for the aquatic center. C:\Users\dburke\Desktop\Temp Folder\2021 LTAC budget available funds.xlsx LTAC Meeting 8-31-2020, Page 3 of 11 08/28/20 2:48 PM City of Moses Lake Monthly Hotel Motel Tax Month Sales 510,000 565,000 710,000 760,000 Budget -4.9% Period 2013 2014 2015 2016 2017 2018 2019 2020 Mo/Mo Yr/Yr January November $ 37,239.62 $ 33,221.58 $ 45,363.54 $ 28,663.10 $ 33,388.06 $ 41,469.52 $ 39,926.86 $ 52,220.28 31% 31% February December 19,145.26 28,737.22 22,720.18 26,231.90 46,239.74 31,964.90 34,411.31 43,797.66 27% 29% March January 32,692.16 26,058.10 29,287.72 31,061.18 36,738.88 41,337.22 44,355.93 48,852.66 10% 22% April February 22,967.86 31,468.50 32,320.66 35,190.10 35,640.54 32,535.10 33,034.49 39,862.10 21% 22% May March 36,755.64 34,621.22 37,172.22 33,480.94 48,375.42 47,903.61 49,111.80 31,574.90 -36% 8% June April 38,830.04 41,151.98 41,878.80 45,666.98 66,446.38 61,489.86 77,691.66 27,742.07 -64% -12% July May 64,910.04 53,058.98 53,628.12 57,400.50 66,486.72 66,006.90 79,273.20 54,121.72 -32% -17% August June 49,135.32 70,246.58 59,177.66 67,480.42 62,083.10 82,282.72 84,850.52 63,252.05 -25% -18% September July 62,363.32 67,348.68 61,340.66 75,632.24 91,141.04 78,308.47 91,763.13 -100% -32% October August 68,846.76 63,268.00 58,738.90 46,709.20 74,044.88 81,419.62 104,134.55 -100% -43% November September 57,668.74 56,268.68 55,818.64 61,115.08 66,917.60 74,509.44 83,618.08 -100% -50.0% December October 41,957.82 39,460.80 42,881.65 43,419.04 49,091.76 55,808.32 77,367.35 -100% -54.8% Total year-to-date $ 532,512.58 $ 544,910.32 $ 540,328.75 $ 552,050.68 $ 676,594.12 $ 695,035.68 $ 799,538.88 $ 361,423.44 2.3% -0.8% 2.2% 22.6% 2.7% 15.0% 620,000.00 Estimate 102-000-31331-078-1000-0000-42 266,256.29 272,467.82 270,199.99 276,025.34 338,297.06 347,517.84 399,769.44 310,000.00 102-000-31331-078-1000-0000-44 266,256.29 272,455.16 270,128.76 276,025.34 338,297.06 347,517.84 399,769.44 310,000.00 532,512.58 544,922.98 540,328.75 552,050.68 676,594.12 695,035.68 799,538.88 620,000.00 LTAC Meeting 8-31-2020, Page 4 of 11  Lodging Tax Advisory Committee (LTAC) Applications D FINAL 2020 a SPENT as of Organization Name Event Name COUNCIL t 8/28/20 Notes: Request APPROVAL e Moses Lake Youth Hockey Association Moses Lake Winter Classic $ 4,870.00 $ - $ - Basin GYM Booster Club EPIC Invitational $ 10,000.00 $ - $ - Moses Lake Spring Festival Moses Lake Spring Festival $ 45,000.00 $ 30,000.00 $ 30,000.00 (2021 Deposit) Moses Lake Spring Festival TBD (Formerly Freedom Fest) $ 90,000.00 $ 50,000.00 $ - Event Completed-not yet invoiced S Communications & Marketing Specialist City of Moses Lake ** e Marketing for 2020 $ 195,300.00 $ 110,000.00 $ 38,566.32 No salary allocations done yet. p Moses Lake Chamber of Commerce ** 2020 Visitor Information Center Operations $ 50,000.00 $ - s $ - Columbia Basin Allied Arts Premiere Season $ 20,000.00 $ 20,000.00 $ - Columbia Basin Allied Arts Promotion & Advertising $ 10,000.00 $ - $ - Port of Moses Lake 2nd Annual Father's Day Visit Washington Airshow $ 75,000.00 $ 30,000.00 $ 30,000.00 (2021 Deposit) Marketing Select Central & Eastern Visit Washington Washington Events to Promote Tourism $ 48,000.00 $ - $ - The Tree Fort Children's Museum Emerging Children's Museum Project $ 10,000.00 $ - $ - Moses Lake Business Association Downtown Sip and Stroll $ 4,000.00 $ 1,000.00 $ - Moses Lake Business Association Downtown Brews & Tunes $ 4,000.00 $ 1,000.00 $ - Manta Ray Aquatics Inland Empire Swimming Junior Champs - 3 Meets $ 23,616.69 $ 24,000.00 $ 2,787.57 Events Complete Total Allocation Proposed for 2020 Funding $ 589,786.69 $ 266,000.00 $ 101,353.89 **When Chamber was allocated only $10k for Visitor Center, the Center moved to the City with the allocation - as the original amount to City was $100k LTAC Meeting 8-31-2020, Page 5 of 11  General Guidelines for Lodging Tax Funding Support Applicants As required by the Washington State Legislature, the City of Moses Lake established the Lodging Tax Advisory Committee (LTAC) to support tourism promotion projects within the community. The group’s responsibilities include oversight of funding requests aimed at utilizing a portion of the hotel/motel tax revenues that the city receives. These funds are derived from lodging rentals in the area. The purpose of the program is to provide funding to eligible organizations or groups for the purpose of positively impacting tourism in the greater Moses Lake area. Funding of the program and specific awards are dependent on recommendations of the Moses Lake Lodging Tax Advisory Committee (LTAC) and final decision by the Moses Lake City Council. The City Council may allocate all, none, or a portion of the available funds. Moses Lake’s Lodging Tax Advisory Committee (LTAC) is seeking applications for the next funded year. By State law, the city’s lodging tax revenue may only be used to promote tourism pursuant to RCW 67.28. The Lodging Tax Advisory Committee (LTAC) shall make its recommendations to the Moses Lake City Council following the proposal deadline date as part of the city’s annual budget process. Proposal Deadline: September 3, 2019 – 5:00 p.m. (received or postmarked) Mini-Grant Deadline*: February 1st – any given year – 5:00 pm (received or postmarked) *subject to funding availability Address: Moses Lake Lodging Tax Advisory Committee c/o Civic Center Administration Office 401 S. Balsam Street P.O. Box 1579 Moses Lake, WA 98837 LTAC Meeting 8-31-2020, Page 6 of 11 To Receive a Lodging Tax Application Packet: Download from the city’s website: www.cityofml.com In Person: Visit Administration Office/Civic Center 2nd Floor 401 S. Balsam St. Moses Lake, WA 98837 Questions: Contact Administration Office (509) 764-3713 General Guidelines • Lodging tax revenues 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) of the internal revenue code of 1986, as amended. • City of Moses Lake considers lodging tax funded proposals from governmental and non-profit organizations. • The city does not make any multi-year commitments with LTAC funds, however, service providers are not limited or prohibited from making repeat annual requests of the same nature or for projects that span more than one year. • Proposals must comply with federal, state, and county laws and requirements. NOTE: City of Moses Lake may not use public funds in any way that can be construed as a gift to an individual or organization. • Proposals must completely address the questions, and all requested supplemental information must be provided. • Reimbursement: The City has drafted a contract which refers to your application as the scope of work. Payments will be made in accordance with the terms set forth in the contract. All reports, including a budget to actual comparison and the visitor estimate as required by the Washington State Joint Legislative Audit and Review Committee (JLARC) will need to be submitted by January 31 after the completion of the contract year. LTAC Meeting 8-31-2020, Page 7 of 11 To be considered, a fully completed and signed original application, plus FIVE (5) additional complete copies with requested supporting documents, must be received at the Civic Center Administration Office, 401 S. Balsam Street, P.O. Box 1579, Moses Lake, WA 98837, by the deadline posted each year. A second deadline of February 1st, 5:00 pm, will be offered for those looking for funding subject to fund availability. Background Information The Lodging Tax is an existing excise (sales) tax authorized by State law in RCW 67.28, Public Stadium, Convention, Arts and Tourism Facilities. The City of Moses Lake has imposed an excise tax on charges for lodging by hotels, motels, and similar business enterprises, pursuant to RCW Chapter 82.08 Retail Sales Tax. In Moses Lake, the total tax on lodging is 4% (this includes the original 2% from sales tax and the additional 2% special excise tax). Moses Lake’s Lodging Tax Advisory Committee (LTAC) Per RCW 67.28.1817, the State requires that local governments collecting the lodging tax establish a Lodging Tax Advisory Committee consisting of at least five members: • The Chair – an elected city council member • At least two members – persons involved in activities authorized to be funded by revenue received from the Hotel-Motel Tax • At least two members – representatives of businesses required to collect the tax • LTAC Committee members are appointed by the Mayor. The Committee’s role is advisory in nature, with the Committee’s purpose being to advise the City Council on uses of the city’s lodging tax when a change in use is proposed. The City Council makes the final decision about how to use the city’s lodging tax receipts. • By state law, lodging tax funds may only be used for tourism promotion and the marketing and operations of special events and festivals and for the acquisition and/or operation, including maintenance, of tourism-related facilities. The following definitions are copied verbatim from RCW 67.28.080. The Lodging Tax Advisory Committee meets annually, with additional meetings as needed, to review applications and the balance of the lodging tax fund. If you would like to attend the next LTAC meeting, please contact the Administration Department for dates and times at 509-764- 3713. Definitions • “Acquisition” includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purposes. LTAC Meeting 8-31-2020, Page 8 of 11  • “Municipality” means any county, city or town of the State of Washington. • “Operations” includes, but is not limited to, operation, management and marketing. • “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 or operation 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 that is: (a)(i) Owned by a public entity; (ii) owned by a nonprofit organization described under section 501(c)(3) of the federal internal revenue code of 1986, as amended; or (iii) owned by a nonprofit organization described under section 501(c)(6) of the federal internal revenue code of 1986, as amended, a business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce and (b) used to support tourism, performing arts, or to accommodate tourist activities. City of Moses Lake Policy and Eligibility Criteria Statement for Use of the Lodging Tax The revenues received from the city’s hotel/motel tax may be used for only the purposes stated in RCW 67.28.1816. Evaluation Criteria Used by the LTAC Committee Awarded Projects Should: • Generate overnight stays in Moses Lake hotels, motels, bed & breakfasts, and campgrounds (this will enhance regular sales tax as well as regenerate Hotel/Motel tax revenues). • Encourage support of Moses Lake businesses, restaurants, and attractions. • Promote the city as a destination place. Recipients are to use the City of Moses Lake logo if the award is for co-sponsored event. If the award is not a co-sponsored event the recipient should note on any advertising material that “Tourism support provided by City of Moses Lake’s Lodging Tax Fund.” • Attract positive coverage in local, regional, and national media. • Attract visitors, build new audiences, and stimulate the development of other tourism opportunities. • Promote the unique attributes of Moses Lake for tourists. • Support regional tourism planning/promotion. • Support long-lasting assets, capital facilities/amenities. • Increase awareness of the city’s amenities, history, facilities, and natural environment. LTAC Meeting 8-31-2020, Page 9 of 11  • Use seed money for innovative, new programs. • Take an existing program in a new direction. • Have broad-based community appeal or support. • Reflect excellent quality in content or programming. • While matching funds are not required, the amount of additional funds, supplies, materials and staff time an organization brings to an event is a good measure of that organization’s commitment to success. The Successful Applicant should: • Have a demonstrated history of successful use of grant and/or public funding. • Have a demonstrated ability to successfully complete the proposed project through effective business practices in the areas of finance, administration, marketing, and production. • Document and measure the overall economic impact - estimate number of visitors and overnight stays; forecast direct and indirect dollar expenditures by visitors; forecast expected revenue to the project/event and expenditures associated with any public service required. • Provide a method for evaluating the proposed project upon completion, based upon the above requirements. • Seek multiple sources of support rather than rely on City of Moses Lake as a sole funding source. • Work toward total self-sufficiency in funding. • Encourage volunteer involvement and inter-jurisdictional, corporate, business, and/or civic partnerships. • Use the hotel/motel tax funds to leverage funds from other sources. Application Requirements The attached funding application addresses the following specific areas:  Eligibility: The applicant has concisely defined the service and or product to be provided and demonstrated how it will do so. The project is in compliance with the State statutes and city guidelines established in this program.  Project Description: The applicant has submitted a scope of work that describes the project in detail.  Budget: The project budget includes both revenue and expense categories; all income has been broken out by amount and source, and eligible expenses have be itemized. LTAC Meeting 8-31-2020, Page 10 of 11 Selection Process After applications are submitted to the Lodging Tax Advisory Committee, they will be reviewed and evaluated by committee members and staff for completeness and eligibility. Applicants may be contacted to provide clarification, make corrections, or supply additional information. Applications that do not meet the guidelines will be disqualified and returned. Applicants will be notified of the date, time, and place of this Committee meeting and may be requested to attend. The Committee’s funding recommendation will then be forwarded on to the Moses Lake City Council for final decision. Applicants will be notified following the City Council’s decision for funding. Project Evaluation Criteria The following criteria will be utilized in evaluating all proposals. 1. Tourism Promotion: Does the project meet the basic state and city requirements for tourism promotion? Will it promote a positive image for the city? Will it attract visitors, build new audiences, and encourage tourist expansion? Will it increase awareness of the city’s amenities, history, facilities, and natural environment? 2. Benefit to the City: How will this project benefit the people of Moses Lake? 3. Community Support: Does the project have broad-based city appeal or support? What is the evidence of need for this project in the city? 4. Evidence of Partnerships: What kind and degree of partnership does the project exhibit? Does it exhibit volunteer involvement or inter-jurisdictional, corporate, business, and/or civic support? 5. Management Capability: How have you demonstrated an ability to successfully complete the project thorough effective business practices in the areas of finance, administration, marketing, and production? What are the administrative credentials of paid or volunteer staff or individuals? 6. Scale of Project: Is the project of a scale suitable for this funding program? Can the project be implemented by the end of the year? 7. Application: Is the application clear, accurate, complete, and neat? Disclaimer: The City of Moses Lake reserves the right, in its sole discretion, to fund or not fund any particular project or program for which an application is submitted. The determination of whether to fund a particular project or program will be based upon a number of factors, including, but not limited to, the ability of the program or project to promote tourism in the community, the relative merits of the project or program compared to the applications, and the overall availability of funding. The city is the sole judge of its obligation to fund any particular project or program regardless of its merits under these factors. LTAC Meeting 8-31-2020, Page 11 of 11