By Douglas Buell
dbuell@arlingtontimes.com
ARLINGTON – The lodging tax program based on putting “heads in beds” is causing some City Council members to lose sleep.
The city’s lodging tax advisory committee recently recommended that the council dole out $146,158. But a few of the applicants would have gone home with half the amount they requested, while others would leave empty-handed.
The recommendations didn’t sit well with council members, nor some recipients.
Mike Britt, past-president of the Downtown Arlington Business Association, said the group was disappointed its request was cut from $20,590 to $10,119, with a similar-sized cut dealt to the Arlington Arts Council. DABA combined several free community events into a single application; the city contended it reached out for more details about each event, but did not hear back.
Britt said there is something inequitable about funding $40,000 for a regional genealogical conference that may draw 600 people, when DABA’s three events bring in thousands.
“We rely on these grants so we can re-invest money back into the community to meet other needs,” Britt told the council, explaining the grants help stretch other dollars in their budget. “I have all the faith and confidence that you can do something about this.”
City Council member Debora Nelson read state laws regarding the lodging tax. She said the law is weighted more toward “heads in beds,” when it should take the community benefit and needs more into account. She thought different evaluation criteria could be used to better distribute grants.
“I see the impact of nonprofits that really bring a lot of people into our town,” Nelson said.
Council member Jan Schuette said, “I’ve been so upset about this for two weeks now” referring to the impact the confusion has had on some well-meaning volunteer and civic groups that applied. “I’m really sorry it happened. There has been hard feelings on everyone’s part.”
Schuette has written and received many grants. She said a cover letter with the application outlining the new process in use, and key changes from the previous form, would have helped avoid some problems.
Council members Sue Weiss and Mike Hopson also weighed in.
“I just find it hard to believe that a majority of all the money went to four entities,” Weiss said.
Hopson had an issue with more than 50 percent of the money going to the Stillaguamish Valley Genealogical Society and the Arlington Fly-In.
City Administrator Paul Ellis said this is the first year using a new application discussed at the council’s last business retreat.
“We’re going to have to refine it,” he said.
The city fielded 17 applications for$185,335, while the amount budgeted was $160,000.
At its most-recent work session, the council requested staff to draft a response to the committee to increase grant requests for DABA and the Arts Council to the full amount sought; fund the full summer outdoor recreation series at $7,900; provide Arlington Rotary with $4,100 toward the $5,167 requested for the 4th of July fireworks; and eliminate funds for a proposed pocket park downtown and a chamber of commerce coupon book.
The advisory committee will meet to review the council’s changes. State law says a 45-day period and public hearing must be held because of the changes. So the matter would not come back to council until Feb. 6.
Council member and advisory council representative Jesica Stickles said the recommendations had nothing to do with the validity of the event or group. All the applications were viewed as good causes, but some lacked basic information that would have helped the committee’s decision making.
The grants are based on revenues from the 2 percent state tax on lodging. It’s a consumer tax on lodging for hotels, motels, private campgrounds, RV parks and similar facilities.
Criteria consists of projects supporting city tourism goals, length of impact, attracting visitors from more than 50 miles away, a match of at least 33 percent of total project costs, consideration of partnerships, sustainable future funding and overnight lodging stays.
The council recommends:
•$40,000, Stillaguamish Valley Genealogical Society for a Northwest Genealogy Conference;
•$30,000, Arlington Fly-In;
•$14,000, Arlington-Smokey Point Chamber of Commerce, Visitors Information Center;
•$20,590, Downtown Arlington Business Association annual events;
•$20,000, Arlington Arts Council to enhance Arlington art and music;
•$7,311, Arlington Parks and Recreation, summer outdoor recreation series;
•$6,000, city Parks and Recreation, Olympic Avenue sound system (phase II);
•$5,000, chamber of commerce, 4th of July Grand Parade;
•$4,950, chamber of commerce, Cascade Loop membership;
•$4,800, city Parks and Recreation; Arlington-Stillaguamish Eagle Festival;
•$4,100, Arlington Rotary toward 4th of July fireworks;
•$2,500, Vision for a Cure, Arlington Brew Fest.
Three submittals scored too low by the advisory committee, primarily because of lack of information: Smokey Point Carnival and Old Fashioned Kids 4th of July Carnival, both by the Arlington-Smokey Point Chamber of Commerce; and the Rotary’s fireworks. The Wounded Warrior Project was ruled ineligible because it lacks 501(c)(3) nonprofit status.
Funds are issued on a reimbursement basis, meaning the groups must first spend their own dollars before the city cuts a check.
Stickles said the committee has talked about hosting a workshop with applicants next year in order to explain the new application process.
