PED 2020-10-19 Item 1B - LTAC - Lodging Tax Funding Application for City of Tukwila's 2021-2022 Basic Operations for $290,119

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1) Describe your tourism -related activity or event. The City of Tukwila requests funding for 2021 and 2022 for administration of the City's lodging tax fund, basic small marketing activities, office supplies, limited travel, professional services, small event support, reimbursement of the City's indirect charge, and labor (half time FTE). Funds for this application are used for general administration, staff time (half of an FTE), and related costs incurred by the City in managing its lodging tax program. In the past the funds for this application were used for the following activities intended to support the entire tourism program. • Office Supplies; • Professional Services; • Small Marketing Activities; • Small event support; • Training and Education; • Membership, Registration, and Subscriptions; • Parking, Travel, and Meals; and • Indirect Cost Allocation. • Small Event Support Last year LTAC approved $133,000 for the City's Administration application. Lodging tax supports a .5 FTE in the office of economic development, with the remaining .5 FTE being supported by the general fund. The City is also requesting a charge for the City's indirect cost allocation. The lodging tax fund is one of several special revenue funds managed by the City of Tukwila. Under State Law, the City is permitted to charge special revenue funds for the indirect costs that are incurred by the general fund to support and maintain these special revenue funds. These costs include, but are not limited to, legal support, accounting, insurance, technology services, human services, and office administration. Activities that are needed to support the lodging fund. The City is also requesting small amount $290,119 for small sponsorship opportunities throughout the year that could help build the Tukwila brand and help enhance the tourist destination. For 2019, the City had success in using these funds to support marketing of an e -gaming event at Virtual Sports and supporting the food truck rallies at the Mall. Due to COVID-19 in 2020 many of these activities were curtailed. The City is helping to sponsors Halloween activities throughout the City. In 2019 (2020 is not a good comparison due to COVID-19), the City of Tukwila, Mayor's Office oversaw nearly $400,000 in lodging tax funds awarded to outside groups. Each award requires a contract and ongoing oversight by City staff. The City is also managing the Experience Tukwila digital platform development and marketing, which launched this year. 9