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6 <br />INFORMATIONAL MEMO <br />Page 2 <br />1. 2021 and 2022, City of Tukwila, Basic Operations, ($290,119) <br />Overview <br />The City of Tukwila's Office of Economic Development is the City's lead for tourism program. <br />The Office oversees the City's lodging tax application process; develops and executes special <br />marketing initiatives, such as the Great Tukwila Carryout and Saving Local, KC; provides <br />oversight of contracts with recipients of lodging tax funds; and is the lead in the development <br />and day to day operations of Experience Tukwila. The pending lodging tax application supports <br />the City's administrative costs associated with the tourism program. The application can be <br />divided into three parts: <br />1. Marketing and Operations <br />Funds are provided for as needed professional services, such as marketing and graphic design. <br />During 2020 these funds being set aside in the 2020 application were crucial in the City's <br />response to COVID-19. The City was able to quickly launch the Great Tukwila Carryout and <br />Saving Local, King County3. <br />Funds are also set aside to support small, third party events throughout the City. In the past the <br />City has used these funds to support food truck rodeos at Westfield Southcenter and sendoffs <br />for the Seattle Sounders FC. Funds allocated for these events are typically small, around $500 <br />to $1,000 dollars. Having the funds set aside allows the City to quickly react to potential <br />opportunities. It also reduces the administrative burden on groups seeking small amounts of <br />funds from the lodging tax program. <br />2. Administrative Costs <br />Funds are provided for the City's administrative costs associated with the lodging tax funds. <br />This includes a halftime FTE in Economic Development, travel, office costs, and other <br />administrative costs. Both staff and elected officials can use these funds to attend events <br />associated with tourism. Without these funds, the City's general fund would have to support <br />these costs. <br />3. Indirect Cost Allocation <br />The City charges all special events an indirect cost allocation to reimburse the general fund for <br />its support of the special funds, such as lodging tax. The general fund supports the lodging tax <br />fund by providing accounts payable services, legal supports, fleet, facilities, and technology <br />services. The cost allocation is determined by Finance after the completion of an indirect cost <br />allocation study. <br />Staff Analysis <br />This application by the City allows the City to implement its tourism program. Without the <br />approval of the application the City would have to reduce activities, or the general fund would to <br />be used to support staff and activities. <br />LTAC Recommendation on Application: Do Fund <br />3 Saving Local, King County also received additional lodging tax funds through its own application. However, the <br />City was able to start Saving Local with the funds in the basic operations application, while the funding request was <br />pending. <br />