Room Tax Commission

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The Room Tax Commission approved a mid-year budget update after staff reported room-tax performance running about 30% behind last year. The commission also reviewed and moved to approve a new conflict-of-interest policy meant to tighten ethics and disclosure rules for members.

Commissioners approved the room-tax budget “as amended” after hearing revenue is down about 30% versus last year, and agreed to hold off on spending until collections improve—an early warning sign for tourism-funded projects this year.

The commission reviewed a “final draft” conflict-of-interest policy that would require member disclosure profiles and periodic ethics training, with penalties up to public censure, removal, or legal referral—an overdue governance step for a board that handles public tourism dollars.

Explore Two Rivers reported it is moving ahead with its own Two Rivers-focused visitor guide (32–40 pages) after Visit Manitowoc chose to create a separate guide, signaling a shift toward more independent branding and marketing.

No public comments or communications recorded for this meeting.

BUDGET REVIEW
Passed 5-0
Staff reported room-tax financial performance is about 30% behind last year, with local lodging and a wedding venue saying bookings started late but look better later in summer and early fall. The commission agreed expenses should stay paused until revenue improves, and approved a budget update that added new visitor-guide revenue/expense lines tied to Explore Two Rivers’ standalone 2027 guide and removed a planned $25,000 concession stand expense for 2026 (with the door left open to revisit it later). They also received an update that a USDA Rural Development grant application was submitted June 15—useful context, but the immediate takeaway is the commission is bracing for a tighter year.
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EXPLORE TR UPDATE
Explore Two Rivers shared updates on recent tourism events and its “I LOVE TR” positivity campaign, including banners and signs placed around the city. The bigger operational shift: Visit Manitowoc is creating its own visitor guide, so Two Rivers is moving forward with an independent guide expected to be 32–40 pages and “on schedule.” The update also promoted an upcoming Timber Rattlers night fundraiser where $3 per ticket goes to the Parks & Rec youth financial fund.
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RTC CONFLICT OF INTEREST POLICY
The commission reviewed what the minutes call the “final draft” of its conflict-of-interest policy, including a requirement that members file a one-page disclosure profile and complete periodic training on room-tax law and municipal ethics. The policy outlines consequences for violations, up to public censure, removal, or referral for legal action—strong language that suggests the commission is trying to formalize guardrails around decisions involving tourism dollars. A motion was made and seconded to approve the policy, but the minutes do not record a vote outcome.
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