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2024-01-10 LTAC Agenda PacketCity of Federal Way Lodging Tax Advisory Committee Wednesday, January 10, 2024 Remote Attendance via Zoom 10:00a.m. — Meeting calls to order In -Person, Sister City Conference Room, Nd City Hall, 2 Floor Mayor's Office Please click the link below to join the Zoom Meeting: https://ciiyoffederalway.zoom.us/j/83184323097?pwd=vNrszS4HsfKUAGhxxWaNFVhAVTNaHE 1 Meeting ID: 831 8432 3097 Passcode: 384362 FMCiyL1107A 1. Call to Order 2. Attendance 3. Approval of Minutes A. October 11, 2023 Minutes Action 4. New Business A. TEG Application: Action Kiwanis Foundation of Federal Way, Arts Explosion Art Festival May 30 -June 1 - President Kenny Byrne and Boardmember Karen Brugato B. Finance Update; Lodging Tax Sales Tax Revenue Data Update Discussion - Director of Finance, Steve Groom C. Bylaws: Action Review, update and approval of changes S. Old Business - A. Post Event Report: Harmony Kings of Federal Way S.P.B.S.Q.S.A. Discussion -Jim Burbidge Committee Members Lydia Assefa-Dawson, Councilmember —Chair Mike Dunwiddie, King County Aquatic Center Kristin Wells, Seattle/Federal Way Marriott Courtyard Brian Hoffman, PAEC Rose Ehl, Federal Way Farmers Market Darcy Pickett Hampton Inn & Suites Juliana Bliss, Holiday Inn Express & Staybridge Suites City staff Tanja Carter Economic Development Director Steve Groom Finance Director Julie La Brake Economic Development Admin 11 B. Post Event Report: Discussion Discussion Miss Washington State Volunteer Scholarship Organization -Nicole Miller, Executive Director C. LTAC Member Issues Discussion A. Committee B. Staff C. Adjourn Next Meeting: Wednesday, February 14, 2024 Committee Members Lydia Assefa-Dawson, Councilmember —Chair Mike Dunwiddie, King County Aquatic Center Kristin Wells, Seattle/Federal Way Marriott Courtyard Brian Hoffman, PAEC Rose Ehl, Federal Way Farmers Market Darcy Pickett Hampton Inn & Suites Juliana Bliss, Holiday Inn Express & Staybridge Suites City Staff Tanja Carter Economic Development Director Julie La Brake Economic Development Admin 11 City of Federal Way Lodging Tax Advisory Committee Wednesday, October 11, 2023 Remote Attendance via Zoom or In- 10:00 a.m. Person, Sister City Conference Room, City Hall, 2°d Floor, Mayor's Office MINUTES October 11, 2023 In Attendance: Chair, Councilmember Lydia Assefa-Dawson; Brian Hoffinan, PAEC; Kristen Wells, Courtyard Marriott: Darcy Pickett, Hampton Inn & Suites; Rose Ehl, Federal Way Farmers Market; Juliana Bliss, Holiday Inn Express & Staybridge Suites; Mike Dunwiddie, King County Aquatic Center Absent: Michele Mayberry, Elite Productions Staff Present: Tanja Carter, Economic Development Director; Julianna La Brake Economic Development Admin Assistant 11 Guests Present: Jason Fiorito, Pacific Raceways 1. Call to Order Chair Assefa-Dawson called the meeting to order at 10:03am and welcomed everyone. 3. Attendance 4. Public Comment: None S. Approval of Minutes The Chair asked for approval of the May 10, 2023 minutes. Upon a motion duly made/seconded (Juliana Bliss/Rose Ehl), the minutes were unanimously approved. 1. New Business A. TEG Application After Event Report Discussion a. 10:15am — Pacific Raceways — Jason Fiorito Jason Fiorito summarized his after -event report and will share bulleted list with members. Shared where signage was posted to increase the amount of marketing and television viewing. Discounted coupons for event and specific Federal Way hotels. Sending a follow up survey to out of state participants to see what hotels they would be booking. Auburn contributed $100,000, Federal Way contributed $50,000 and Kent contributed $25,000. Hoteliers, (KW/JB) mentioned their rooms were at full capacity during the time period of this event. Following the report there were comments regarding the event, as well as question and answer period. *Jason left after his report at 10:37am. LTAC Meeting Minutes October 11, 2023 Page 1 b. 10:38 AM —Elite Productions —Michele Mayberry Michelle Mayberry was not able to attend the meeting but sent a letter to share her after -event report that was read by staff member, Julianna La Brake, Admin Assistant II. 2. Old Business A. Quarterly Lodging Tax Budget / Revenue Report Update Director Carter, shared report presentation created by finance. Federal Way is still a good investment. Next report Jan 2024 B. Request for Proposal for Professional Services - Update Destination Management Consultant — On Hold 3. LTAC Member Issues Discussion A. Committee: Mike Dunwiddie, King County Aquatic Center — Shared that the Aquatic Center has many events on the schedule for 2024 -2028. May be no longer contracted with Pac12 after 2023. *Mike left for another meeting at 11:05am. Rose Ehl, Federal Way Farmers Market — Thanks to committee members who attended the Taste of Federal Way event last weekend. There were 1000+ attendees. Juliana Bliss, Holiday Inn Express & Staybridge Suites — Shared that the remodel is complete and if anyone would like a tour to email or call her. Chair, Councilmember Lydia Assefa-Dawson - Thank you everyone! Committee should look forward to future Economic Development opportunities to come from Director Carter. Brian Hoffman, PAEC - Thanks to the committee members for a great healthy discussion to help provide guidance. Discussed safety ideas/concerns with committee members. Kristen Wells, Courtyard Marriott — Nothing to report. Darcy Pickett, Hampton Inn & Suites — Nothing to report. B. Staff: JL Director Carter — Shared how the Yangsan, Korea Delegation visit went with committee members. Julianna La Brake, Admin Assistant II — nothing for the committee 4. Next Meeting: January 10, 2024 5. Adjourn: 11:24 AM Director Carter ended meeting, seconded by (Kristen Wells/Juliana Bliss). LTAC Meeting Minutes October 11, 2023 Page 1 20jjjj§f ity of Federal Way LTAC CITY OF Federal Wa�ourism Enhancement Grant Centered on Opportunity APPLICATIONS ARE DUE AND MUST BE RECEIVED NO LATER THAN APRIL 141h OR OCTOBER 16t" AT 5 PM. incomplete and/or late applications will not be considered/prioritized for funding cycle. Applications may not be amended or changed after the deadline for submission. The proposal and all documents filed with the City are public records. Read the Overview and Instructions before completing the application. Please submit your completed application along with the required documentation electronically to: iulianna.labrake@cityoffederalway_.com X Completed and signed the cover sheet with this packet X Completed application (attach additional sheets if necessary) X A copy of your agency's current non-profit corporate registration with Washington Secretary of State X Brochures and/or other supplemental information about your event/activity/facility and/or recent tourism promotion efforts APPLICATIONS ARE DUE NO LATER THAN APRIL 14t'OR OCTOBER 16tn AT SPM. LATE APPLICATIONS WILL NOT BE CONSIDERED DURING FUNDING CYCLE. The City of Federal Way's Lodging Tax Advisory Committee (LTAC); will review the applications in May and November. The Committee may wish to interview applicants for more information or clarification. Applicants will be notified of the date and time their application will be reviewed by the lodging Tax Advisory Committee. It is recommended that a representative of your organization be on hand at the review to answer questions from the LTAC. Apolications must be submitted at least 180 days prior to your event to be considered for Lunding 1 Tourism Enhancement Grant Event Application Revised March 2023 r 20 CITY OF Vity of Federal Way LTAC Federal Wagurism Enhancement Grant Centered on Opportunity Official Event, Program, or Activity Name: 2024 2nd-Annual Arts Explosion Arts Festival Grant Amount Requested: $15,000 Kiwanis Foundation of Federal Way rganlzatlon Agency Name Kenneth Byrne Contact Name P.O. Box 3232, Federal Way, WA 98063 73-1651850 Federal Tax ID Number President, Kiwanis Foundation of FW Mailing Address City State Zip 206-838-3332 Phone Federal Way Performing Arts and Event Center Event Location www.federalwaykiwanis.com Website Check all service categories that apply to this application. .kiwanisclubfederalway@gmaii.com Email Address May 29 - June 3, 2024 Event Date X Tourism Promotion/Marketing X Operation of a Special Event/Festival designed to attract tourists X Operation and/or Capital Expenditures of a Tourism -Related Facility owned by a Municipality or a Public Facilities District Check which one of the following applies to your agency: {Picric: For -Profit organizations are currently not eligible for any lod in tax fundin .) X Non-Profit(Attoch copy of current non-profit registration with Washington Secretary of State) ❑ Public Agency ❑ Other 2 Tourism Enhancement Grant Event Application Revised March 2023 2041jL&City of Federal Way LTAC CITY OF Federal Wa�burism Enhancement Grant Centered on Opportunity GENERAL INFORMATION 1. Describe your tourism -related activity/program/event? The Kiwanis Foundation of Federal Way is pleased to co -host the 2024 2nd-Annual Arts Explosion Arts Festival at the Federal Way Performing Arts and Event Center (PAEC). This 5-day event will be May 29 - June 3, 2024 with free public days May 31 - June 2, 2024. The Arts Explosion Arts Festival welcomes youth and adult artists to our Performing Arts and Event Center (PAEC) on May 29 - June 3, 2024. Adult artists, from throughout Washington and Oregon, and youth artists, from the Federal Way Public Schools, are welcome to enter artworks January 20 - March 20, 2024 using www.califorentry.org. Youth artists, free of charge, are invited to enter their stylized self- portraits. Adult artists, for a fee of $25/artwork, are invited to enter as many times as they like in photography, 2-D and 3-D artworks. Ail artwork will be previewed prior to acceptance into the arts festival. All accepted artwork will be juried in -person by professional artists. Is this a new event/facility/marketing program? Yes No XX Has your organization ever applied for a TEG? Yes No XX If yes, when? Has your organization received a TEG award in the past? Yes No XX if yes, when? Scope (Geographical Reach) of the event: XX Less than 50 miles (Federal Way, Auburn, etc.) XX More than 50 miles (Western WA) XX Statewide XX Multi -States (Western US) National International 2. How did you hear about the City of Federal Way Lodging Tax Funding Program? Arts festivals look toward their corresponding city's lodging tax to help fund the event's costs. Kiwanis knows of the Federal Way Tourism Enhancement Grant as a source of funding for the "Arts Explosion" arts festival. The successful first inaugural year, with the surprising excitement and participation of artists from Washington and Oregon, has made this event important to Federal Way. 3. How do you intend to use the Lodging Tax funds if selected as a funding recipient? (Please be as descriptive as possible with the strategy, plan and reasons for yourapplication.) The Lodging Tax funds would be used for marketing the event, for the hard costs of the Federal Way Performing Arts and Event Center, and the stipends for musical artists and professional art judges. .4. Are you applying for Lodging Tax Funding from another community/ies? No XX If yes, list the other jurisdiction(s), amount(s) requested and status. 3 Tourism Enhancement Grant Event Application Revised March 2023 20 QhPity of Federal Way LTAC CITY OF Federal Wagourism Enhancement Grant Centered on Opportunity FINANCIAL INFORMATION On a separate sheet, attach a budget for the event listing revenues and expenses. In addition to revenue provided by the organization or the event/ facility/marketing program (ticket sales, etc.), include a list of other sources of forecasted revenue support, either those requested and pending or confirmed (sponsorship, grants, etc.). Is this support in -kind or financial? If financial, include the amount. Do you expect to make a profit? Yes No XX If yes, how much? S. What will you or your organization do differently this year that will improve upon last year's/previous event/facility/marketing program(s)? Last year's three (3)-day arts festival was a resounding success with over 700 people in attendance. This first year saw an enthusiastic arts festival even with constrained management, unstable art walls and limited viewing time. Planning for Kiwanis Foundation began for the 2024 arts festival four months after our successful 2023 arts festival. With Kiwanis Foundation's emphasis with youth leadership, Kiwanis will sponsor new youth artist at the 2024 arts festival. Both adult and youth artists are asked to enter their artworks with CaFE' - httPs://www.callforentry.org - choosing entry into the Federal Way "Arts Explosion" arts festival from January 20 -March 20, 2024. All will be notified by April 15th of their acceptance into the arts festival. Artworks will be collected at the PAEC on May 29, 2024 to be prepared for showing. The suggestions by artists and attendees has been to grow and publicize this event. Print advertising begins now through March to encourage artist's participation and increase public awareness of the event. In March/April begins social media, print and digital ads, printed posters/brochures, email blasts and press releases to encourage attendees to the event. In 2024, the event will expand to six (6) days with an estimated 1,320 attending. The event begins May 29th with the intake and hanging of artwork. Judging of the artwork begins May 30th with top -sponsor first viewing and first purchase of artwork. The three free public days of viewing are May 31st -June 2nd. The evening of May 31st will be the invitation -only awards ceremony attended by artists, City dignitaries and all sponsors. Mayor Jim Ferrell may award the prizes to all artists. The second day brings the festival - music and poetry reading, children's art station and food trucks. The third public day brings quiet reflection and repose. The public will chose winners of the "People's Choice" award throughout the three-day free art show. All prize money will be given after the festival. All artwork will be collected and the sales of artwork throughout the show will be finalized June 3rd. The community has show its support with local sponsorships and grants to include 4-Culture, Arts Foundation Federal Way, Caffe' D'Arte, El Centro de la Raza, and Jurassic Ink Tattoo to name a few. Grants and sponsorships will be featured in all 2024 marketing, in the arts festival catalog and mentioned from the podium throughout the event. 6. What is the overall budget for yourevent/facility/marketing program? Please see attached budget for the 2024 2nd-Annual "Arts Explosion" arts festival. 7. Please identify your top 5 sources of revenues anticipated for your event/facility/marketing program, not including requested City of Federal Way LTAC funds. (Please do not include in -kind contributions.) 4 .{ Tourism Enhancement Grant Event Application Revised March 2023 20ity of Federal Way LTAC CITY OF Federal Wa�lourism Enhancement Grant Centered on Opportunity Source of Revenue Amount Confirmed. Y/N Arts Foundation $5,784 Confirmed 4-Culture $2,500 Confirmed Caffe' D'Arte $2,000 Confirmed El Centro de la Raza $500 Confirmed Jurassic Ink Tattoo $500 Confirmed Date Funds Available January 2024 July 2024 March 2024 December 2023 December 2023 8. What will you cut from your proposal or do differently if full funding for your request is not available or not recommended? Funding of marketing and operations is a necessity for an arts festival. Without proper funding, marketing must be reduced. Please list the risks and challenges to your success and how you plan to mitigate these? Examples include: space, staff, money, time, marketing, etc. Kiwanis Foundation is a new partner to the Arts Explosion arts festival. Dedicated to working with high school leadership, scholarship and youth causes, Kiwanis also brings youth volunteers and new sponsors. Kiwanis wants to specifically emphasize the healing process of creating self portraits by the youth of our community. With Kiwanis, and the support of the City of Federal Way, the six(6) day arts festival will double its exposure in the community showcasing diverse artwork. Local professional artists will judge all winners to include youth artists and the public will give their "People's Choice" award introducing youth to the adult art world. Diverse performing artists, food trucks and the children's art corner will give to Federal Way its own unique arts festival. With increased participation of artists, and with the assistance of a great marketing plan of action, the number of out-of-state art lovers and spectators will grow. MARKETING On a separate sheet, attach information on how the event will be publicized and marketed. List all publications and media venues (Facebook, Twitter, website, brochures, newspaper, magazines, etc.); in addition to any give away promotional materials that will be used. 10. Describe your tourism -related event/facility/marketing program: Please see attached timetable of events and marketing program. t1. Describe why tourists will travel to Federal Way to attend your eve nt/faci lity/ma rketi ng program. Artists want their artwork to be shown. Last year, these artists came from throughout Washington and Oregon to showcase their art in our scenic professional setting - the PAEC. With the increased marketing plan in 2024, more artists and spectators are anticipated to attend the festival. With increased advertising, more spectators will increase exposure and sales to artists. All are encouraged to buy artwork as well as to stay, eat and shop in Federal Way. 5 Tourism Enhancement Grant Event Application Revised March 2023 20 CITY OF ity of Federal Way LTAC Federal Wa�purism Enhancement Grant Centered on Oppoa rfmii 12. Describe the prior success (number of attendees, media exposure, etc.) of our event/facility/marketing program in attracting tourists: The 2023 Inaugural Arts Explosion arts festival had over 700 unique attendees - Friday evening's invitation awards ceremony (120 attendees) and Saturday/Sunday arts festival (just under 600 attendees). This is confirmation that this arts event is capable of being a success for years to come. Marketing was centered on the attraction of artists beginning December 2022 and targeted art lovers and spectators beginning April/May 2023. Ads in Sound Publishing and posts to the Federal Way Arts Commission social media site promoted the festival. In 2024, the event will be marketed on several social and digital media platforms, employ email blasts, branded content, different publications not used before, and issue press releases and expand the marketing presence of Federal Way's arts festival. In 2023, all attendees were asked how they heard about the event: 1. Social media - 31% with Facebook highly favored, 2. Artist's friends - 31%, 3. Federal Way Mirror - 20%, 4. PAEC website - 8%, 5. Kiwanis - 6%, 6. Planning Commission - 4%. Single responses include the Community Center, tattoo artists from around town, Centerstage, Rotary and posters located at the Library, Farmer's Market and FUSION. 13. Describe your target tourist audience (location, demographics, etc.): In 2023, 27% of artists were from Federal Way, 57% of artists were from within 50 miles of Federal Way, and 16% came from outside a 50-mile radius of which 6% were located in other states. Two artists, from New York and New Jersey, although accepted, would later decline submission. In 2023 and 2024, artists from diverse communities throughout the northwest will be represented. Out -of -area artists were thankful last year to have discounts at La Quinta Inn specifically for this event. In 2023, one family did use the La Quinta discount and this is anticipated to increase in 2024. The number of free public days has been increased and both adult and youth artists will attend the Friday evening invitation -only ceremony. On Saturday's free public day there will be festivities which could include performance art of every nationality and children will be entertained by poetry reading and the children's art creation corner. Federal Way Youth Symphony will perform again during the arts festival Saturday afternoon attracting a large Korean population to both concert and arts festival. 14. Describe how you will promote your event/facility/marketing program to attract overnight tourists: La Quinta Inn was highlighted, in 2023, with pre -arranged discounted rooms for Arts Explosion arts festival attendees. This discount was used by an artist's family. All participating and non -participating out -of -area artists who attended Saturday's and Sunday's festivities in 2023 voiced a high degree of willingness to attend in 2024. Promotion of participating hoteliers to include La Quinta Inn, Courtyard at Marriott and Hampton Inn and Suites will be provided to all artists and attendees. 6 1 Tourism Enhancement Grant Event Application Revised March 2023 20UNCity of Federal Way LTAC CITY OF Federal Wa�burism Enhancement Grant Centered on Opportunity 15. Describe how you will promote lodging establishments, restaurants, and businesses located in the City of Federal Way. What will the City of Federal Way/Tourism and lodging industry get in return for funding (e.g. logos, links print material, radio, TV etc.)? All participating hotels and restaurants will be promoted. All sponsors (funded or in -kind) will be given space on the exhibition catalog, highlighted in print media, mentioned in social media, posters, and from the podium during the invitation -only and public days of the arts festival. The City of Federal Way Tourism Enhancement Grant will be highlighted on all advertising and in the exhibition catalog. EVENT INFORMATION Length of the event/facility: One day Two days Three days Four days Location of the event/facility: X Federal Way South King/North Pierce County Other Tourism Season: X Five or more days X Peak Season (Jun -Sep) Shoulder Season (Oct, Jan -Mar) Off Season (Nov -Dec, Apr -May) Proposed venue(s): Have you confirmed the availability of the proposed dates at the primary venue? Yes X Will you have a need for secondary or practice venues? No X Proposed schedule of the event for each dav: Date Time Date Time May 29th, Submission/Hanging of Art 8-6pm May 30th, Judging/First Viewing 8-6pm May 31st, First Public Day with Invitation - Only Awards Ceremony 10am -10pm June 1st, Second "Festival" Public Day, 9-7pm June 2nd, Third Public Day, 9-7pm June 3rd, Final Sales/Take-out, 9-2pm 7 1 Tourism Enhancement Grant Event Application Revised March 2023 20 CITY OF ity of Federal Way LTAC Federal Wagourism Enhancement Grant Centered on Opportunity ECONOMIC IMPACT OF EVENT Breakdown of projected attendees over the course of the event: Date: May 29 Date: May 30 Date: May 31 Date: June 1 Date: June 2 Date: June 3 Attendees Attendees Attendees Attendees Attendees Attendees Spectators Spectators Spectators Spectators Spectators Spectators 0 20 200 400 300 20 Participants Participants Participants Participants Participants Participants 80 0 80 10 10 80 Support Staff Support Staff Support Staff Support Staff Support Staff Support Staff 20 20 20 20 20 20 All Attendees All Attendees All Attendees All Attendees All Attendees All Attendees 100 40 300 430 330 120 I otal Spectators: 940 Total Participants: 260 Total Support Staff: 120 TOTAL ATTENDEES: 1,320 Provide an estimate of where projected attendees will travel from and their projected room nights (total number of rooms for their entire stay) during the event. Attendees Local (less than 50 miles) Regional (Western WA greater than 50 miles) Statewide Mufti -States (Western US) National International TOTAL Spectators 900 ? 30 ? 10 ? Room nights Roam nights Room nights Room nights Room nights Room nights 940 Participants 200 ? 30 ? 20 ? 10 ? Room nights Room nights Room nights Room nights Room nights Room nights 260 Support 120 Staff Room nights Room nights Room nights Room nights Room nights Room nights 120 TOTAL 1,220 60 30 1p 1,320 Total Projected Attendees 1,320 Total Projected Room Nights ? 8 1 Tourism Enhancement Grant Event Application Revises! March 2023 1 20 CITY F ity of Federal Way LTAC O Federal Wagourism Enhancement Grant Centered on Opportunity What types of business do you expect will be affected? Services (gas, mini -marts, etc.) Yes Entertainment Yes Restaurants Yes Shopping Yes Lodging Yes LODGING AND HOTEL STAYS Will you be listing any "Official Lodging" for this event? Yes X If yes, provide name, address, contact person, and phone number. La Quinta Inn, Kaya Wilson, 31611 Pete von Reichbauer Way South, Federal Way, WA 98003 (253) 941-6000. Courtyard at Marriott, Kristin Wells, 31910 Gateway Center Blvd South, Federal Way, WA 98003 (253)-529- 0200. Hampton Inn & Suites, Kyle Carper, 31720 Gateway Center Blvd South, Federal Way, WA 98003 (253) 946- 7000. Provide all hotels/motels that you will include in all your publicity for the event/facility/marketing program. List all the hotels/motels where rooms have or will be blocked for spectators, participants, and support staff. Number of Blocked Projected Attendees Hotel/Motel Name Rooms Spectators La Quinta_Inn ? Courtyard at Marriott ? Hampton Inn & Suite ? Participants La Quinta In. ? Courtyard at Marriott ? Hampton Inn & Suites ? Support Staff 9 Tourism Enhancement Grant Event Application Revised March 2023 20ity of Federal Way LTAC CITY OF Federal Wagurism Enhancement Grant Centered on Opportunity State Law Excerpts and Notes (RCW 67.28.1816) Use of Loclging Tax Fund Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitor's bureau or destination marketing organization for: a. Tourism marketing; b. Marketing and operations of special events and festivals designed to attract tourists; c. Supporting operations and capital expenditures of tourism -related facilities owned or operated by a municipality or a public facilities district; or d. No longer permitted*: 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. *Note that, as of July 1, 2013, capital expenditures for tourism -related facilities owned by nonprofit organizations are no longer permitted expenditures of lodging tax funds. Lodgin,q Tax Advisor Committee (ii) The local lodging tax advisory committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the municipality for final determination. The municipality may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee. Note that, the State Auditor's Office is interpreting the law to mean that all users of funds, including municipalities, are considered applicants and must follow relevant application procedures. So, cities and counties should submit applications for their own projects to the LTAC. Note that, a city or county does not have to fund the full list as recommended by the LTAC and can choose to make awards in the recommended amounts to all, some, or none of the candidates on the list, Applicant Reporting Re�uirernents In a municipality with a population of five thousand or more, applicants applying for use of revenues must submit their applications and estimates to the local lodging tax advisory committee of how any moneys received will result in increases in the number of people traveling for business or pleasure on a trip: i. Away from their place of residence or business and staying overnight in paid accommodations; ii. To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or iii. From another country or state outside of their place of residence or their business. (c)(i) All recipients must submit a report to the municipality describing the actual number of people traveling for business or pleasure on a trip. Note that, local governments, as part of their contract with recipients, should require that the final report be provided immediately after the event or activity. Local governments will then, in turn, report this information annually to JLARC using their online reporting system. 10 Tourism Enhancement Grant Event Application Revised March 2023 20;$Ih CITY OF Oity of Federal Way LTAC Federal Wagourism Enhancement Grant Centered on Opportunity RCW 67.28.080 - Definitions. 1. "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 purpose or purposes under this chapter. 2. "Municipality" means any county, city ortown of the state of Washington. 3. "Operation" includes, but is not limited to, operation, management, and marketing. 4. "Person" means the federal government or any agency thereof, the state or any agency, subdivision, taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual. 5. "Tourism" means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs. 6. "Tourism promotion" means activities, operations, 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 the marketing of orthe operation of special events and festivals designed to attract tourists. 7. "Tourism -related facility" means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor, and used to support tourism, performing arts, or to accommodate tourist activities. The undersigned certifies that the information provided above is true and accurate and any projections are based on history of similar events and conditions. Applicant's Signature Applicant's Printed Nanie: Applicant's Title: Date: December 31, 2023 that are available to the industry and adjusted to local Tourism Enhancement Grant Event Application Revised March 2023 Tax & Reven u e Data Update City Finance Department Report to Lodging Tax Advisory Committee January 10, 2024 :IN[*]IreINIII Ira IIto US CPI Year -Over -Year Inflation Source: US Bureau cf labor Statistics 10Q a o k v�i 3E N m u�i 3E aQ W m W Ef m N� 7M m W Da W n O o.nx �j O N m m N c 0 us r a a JS CPI Cumulative Inflation i Z i Z Z Source: US Bureau of Labor Statistics $120.00 $115.00 110.00--- [Y 1 M N CQ � $105.00 wLf 1 c I Lf 1 LM M q O N r� 0 ❑1 n c A NM w w w Co [r 1 CQ n un Lf'1 lti l!j L!J Lf] LO l� 00 0 M m rNI .NI cN-I cm -I .m—i $100.00 p 0 c-I Ol 1p 0 oq❑1 r1 .� .� .� .� .� ,� `� `� �} t/} :h i!} th th tI} 00 LO N uu.) m m m - � 0 �p 0 00 A � t } tI} t/� t!} th $95.00 a o a o 0 o a $90.00 — L-AMEMEL z-- . -I r-I r-I ,--I N M N M N N m m m m m m N N N N N \ N N N N N N N M N N N N I I I I I I I I I I I f I I I I � z N z V) z WID79 Seattle -Tacoma -Bellevue CPI Year -Over -Year Inflation Source: US Bureau of Labor Statistics 12.0°% M 10.0% 8.0% 6.0% 4.0% -- -- -- -- -- -- -- 00% $12S.00 $120.00 $115. 00 $110. 00 $105.00 I )eattIe-Tacoma-BeIIevue CPI Cumulative Inflation Source: US Bureau of Labor Statistics $100.00 ,. ■ $95.00 i $90.00 r-I r-I s--1 r-1 r-1 r-I r-� r-I r-I r-1 r-1 r-I N N N N N N N N N N N N ro ro m m M M M M m m N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N midn T*-whv IJe,%iehiir! •■ll4m•�rI imWIVITIO" 0 City of Federal Way - Sales Tax Revenue Received Current Year Actual vs. Budget and Prior Year $22,0001000 ------------------------------------------------------------------ $20,000,00❑ it10 nnn nnn .,,a1Ll,vv1J,LJvv --------------------------------------- $16,000,00❑ --------------------------------------------- --------------------------------------------- $12,000,000 -------------------------------- - - ----------------------------- $10,000,00❑ $8,000,000 $6,000,000 _-0 Budget Cumulative $4,000,000 Prior Year Cumulative $2,000,000 � Actual cumulative $0 -9 LI t"J I O ^` ffAM L Federal Way Sales Tax - Actual and Forecast 2023 Actual through October, Estimated hlov-Dec $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 2016 Act Sales Tax 14,222,496 2017 Act 14,199,460 8.0% 1.4% 8.5% 9.8% 9.9% 2018 Act 2019 Act 14,731,810 15,908,863 2020 Act 16,127, 569 2021 Act 17,494,058 2022 Act 2023 Act/ Est 19,204,963 21,042,970 ncin-inn Tax Revenue 0XVILaM01110 City of Federal lay - Lodging Tax Revenue Received $350,000 Current Year Actual ors. Budget and Prior Year $300,000 ------------------------------------- ------------------------------ $250,000 ------------------------------------ ------------------------------------- -------------------------------------- $200,000 --------------------------------------- ---------------------------------------- -------------------------------------- -------------------------------- ------------------------------- $150,000 --------------------------- --------------------------- $100,000------ 0 Budget Cumulative ----------------- ---------------- Prior Year Cumulative $50,000 Actual cumulative $0 300,000 250,000 200,000 150,000 100,000 50,000 ncia-ina Tax Revenue City of Federal Way - Lodging Tax October YTD 2017 2018 2019 2020 2021 2022 2023 Finance Report Inflation Local Lodging Tax Local Sales Tax 5% stable? up 9% up 10% " es®rwun®nwvwwnrw I,r H. es�wuw�evwwnrw N N I tA��-5L� � ,wwwvre 1[S�3j LG 04727792 • I LG fl4727792 st y can LG 04727792 aF.. C7,:aK one. C7 ! 00 17 is . 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LG0472775LP LG04727792• "uua LG04727792 C7 C7 C7 C7 32 LG047.27792> �L'; LG.047.2TktiI� Li �;"' LG047.27792= �L.1�_ l Z33lcoo LG04727792, LG .arrrizrta� 04727792• r*rtc�\ LG04727792 G7+Sfran �'' C7 t, s..,.., C7 4-4 r LG 04727792 ; t LG 04727792 A-- cc LG 04727792 - % cc LG 04727 M- 100 Dal, Rw��I�w ww�I�w _ www�w LG 04727792 • �d3�iit1[\ LG 04727792 • LG 04727792 LG 04727792 C7 C7 C7 Federal good City of Federal Way BY-LAWS OF THE LODGING TAX ADVISORY COMMITTEE We, the members of the Federal Way Lodging Tax Advisory Committee, pursuant to Ordinance No. 98-322 adopted by the Federal Way City Council, do hereby adopt the following By -Laws. ORGANIZATION AND RULES OF PROCEDURE 1. Name The official name is the City of Federal Way Lodging Tax Advisory Committee. 2. Official Seat The official seat of the Committee is the City Hall of the City of Federal Way. 3. Membership a. The Committee consists of five (5) members appointed by the City Council. b. At least two members shall be representatives of businesses required to collect the tax, and at least two members shall be persons involved in activities authorized to be funded by revenue received under this chapter. The number of members who are representatives of businesses required to collect tax under this chapter shall equal the number of members who are involved in activities authorized to be funded by revenue received under RCW 67.28.1817. c. All members of the committee shall serve a two-year term. 4. Officers The officer of the Committee consists of a chairperson. Their duties are: a. The chairperson shall preside over the Committee and exercise all the powers incidental to the office, retaining, however, the full right as a member of the Committee to have a vote recorded in all deliberations of the Committee, to propose motions, and to second motions. b. In the event the chairperson is absent from any meeting, the meeting shall be cancelled and no action will be taken. c. Officers shall be elected annually at a meeting in the last calendar month of the year provided, however, that for the year 1998, officers may be elected at the meeting at which these By -Laws are adopted. d. Officers duly hold office pursuant to the assignment by the appointing authority to the committee, adhering to the prescribed legal standards as duly elected officials. 5. Secretary A Committee secretary is responsible for record -keeping. This position shall be non -elected and filled by a City staff member. 6. Quorum A quorum consists of three (3) members of the Lodging Tax Advisory Committee. 7. Voting a. When a quorum is present, all action shall be approved by a simple majority vote. No official action may be taken unless a quorum is present. b. In the event a quorum is not present, a minimum of two members must be present to hold a meeting for discussion purposes only. 8. Conflict of Interest Any Committee member having a direct or indirect interest in or who would benefit from any matter must disclose this interest and, unless otherwise specifically permitted by state statute or other governing laws, shall refrain from participating and voting on the matter at hand. Committee members shall be guided by the City's adopted Ethics Policy in considering what constitutes a conflict of interest. 9. Meetings a. The Committee shall meet on an as -needed basis at a predetermined time and location. b. The meeting notice shall specify the time, place and agenda. No action shall be taken other than as stated in the agenda. c. Not less than 24 hours' notice shall be given for the cancellation of any regular meeting of the Committee, or for scheduling of a special meeting. d. A Committee member may be excused from a meeting by providing advance notice to the Committee chairperson or staff secretary. e. In the event any Committee member has three or more unexcused absences during any calendar year, the Committee may request that the City Council appoint a replacement for that member. 10. Conduct of Meetings a. If a meeting is being conducted, motions will be made, seconded and voted upon. Upon majority vote approval, recommendations will be forwarded to the City Council. b. If a workshop is being conducted, formal action is not necessary; workshop actions will not be forwarded to the City Council as recommendations of the Committee. c. Except as provided by these rules and regulations, Roberts Rules of Order (as amended) shall govern the conduct of all Committee meetings. 11. Agendas, Staff Reports and Minutes a. A copy of the agenda for the Lodging Tax Advisory Committee meetings shall be sent to each Committee member no less than one week prior to the date of the meeting. b. City staff will provide necessary staff reports. Staff reports will be sent to Committee members no less than one week prior to the date of the meeting. c. Minutes of all Committee meetings will be kept by a staff person and made part of a permanent record on file with the City. 12. Amending By -Laws a. These By -Laws may be amended by majority vote at any Lodging Tax Advisory Committee meeting when a quorum is in attendance. 13. Lodging Tax Fund Except as provided in RCW 67.28.180, all revenue from taxes imposed under this chapter shall be credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism promotion, acquisition of tourism -related facilities, or operation of tourism -related facilities. Municipalities may, under chapter 39.34 RCW, agree to the utilization of revenue from taxes imposed under this chapter for the purposes of funding a multijurisdictional tourism -related facility. a. 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: i. Tourism marketing; ii. The marketing and operations of special events and festivals designed to attract tourists; iii. 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 3 6. 100 RCW; or iv. 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. b. Except as provided in (iv) of this subsection, applicants applying for use of revenues in this chapter must provide the municipality to which they are applying estimates of how any moneys received will result in increases in the number of people traveling for business or pleasure on a trip: Away from their place of residence or business and staying overnight in paid accommodations; ii. To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or iii. From another country or state outside of their place of residence or their business. iv. In a municipality with a population of five thousand or more, applicants applying for use of revenues in this chapter must submit their applications and estimates described under (a) of this subsection to the local lodging tax advisory committee. V. The local lodging tax advisory committee must select the candidates from amongst the applicants applying for use of revenues in this chapter and provide a list of such candidates and recommended amounts of funding to the municipality for final determination. The municipality may choose only recipients from the list of candidates and recommended amounts provided by the local lodging tax advisory committee. vi. All recipients must submit a report to the municipality describing the actual number of people traveling for business or pleasure on a trip: o Away from their place of residence or business and staying overnight in paid accommodations; o To a place fifty miles or more one way from their place of residence or business for the day or staying overnight; or o From another country or state outside of their place of residence or their business. A municipality receiving a report must: Make such report available to the local legislative body and the public; and furnish copies of the report to the joint legislative audit and review committee and members of the local lodging tax advisory committee. o The joint legislative audit and review committee must on a biennial basis report to the economic development committees of the legislature on the use of lodging tax revenues by municipalities. Reporting under this subsection must begin in calendar year 2015. c. The city council shall submit to the lodging tax advisory committee, for its review and comment, proposals on: i. The imposition of a tax pursuant to Chapter 67.28 RCW; ii. Any increase in the rate of such a tax; iii. Repeal of an exemption from such a tax; or iv. A change in the use of the revenue received from such a tax. CERTIFICATION The undersigned secretary of the City of Federal Way Lodging Tax Advisory Committee does hereby certify that the foregoing By -Laws have been duly adopted by the members of said Committee on this day of 11998. ATTEST: an Secretary, City of Federal Way Lodging Tax Advisory Committee