room tax commission budget

Main Street’s director reviewed 2025 activities (including downtown events and façade grants) and presented a draft 2026 budget during the 2026 BID Operating Plan and Main Street budget discussion.

Main Street projected ending 2025 about $10,254 in surplus but a $7,466 deficit in 2026, attributing the change in part to Room Tax support dropping from $12,000 to $6,000 and difficulty obtaining sponsorships.

Board members questioned discrepancies in 2024 historical numbers, which were attributed to a reconciliation that year.

Staff reported 2025 room tax revenue was behind budget, with the year starting slow and expected boosts (including around the NFL Draft) not materializing as hoped; staff also noted some Q3 tracking and two hotel room tax payments had not arrived yet.

Commissioners asked that future budget reports flag major over/under-spending lines and include a plain-language explanation.

Staff said they contacted other tourism organizations to compare 2025 room tax performance but did not yet have comparison numbers back at the time of the meeting.

The commission approved a draft 2026 tourism and room tax budget with conservative revenue targets based on 2024 actuals, citing the slow 2025 start and economic uncertainty.

In the approved 2026 draft budget, the commission reserved $30,000 previously aimed at the rest stop area for future capital improvements tied directly to tourism/overnight stays.

In the approved 2026 draft budget, the commission ended a $12,000 allocation to Two Rivers Main Street and redirected that funding to Explore Two Rivers marketing, while asking Main Street to provide a business plan with measurable results before future consideration.

In the approved 2026 draft budget, the commission approved $3,000 for Washington House, with another $1,000 available if Washington House brings forward a plan to expand hours and increase visitor engagement.

Staff said the 2026 budget would be shared with Explore Two Rivers so it can build its 2026 marketing plan within those limits.

City Council voted 8-1 to direct staff to proceed with a major renovation of the Neshotah Beach concession stand for 2026, with a total project cap of $520,000.

The council direction included a cap of $256,000 in city borrowing to support the project and an estimated city tax investment cap of $131,000 after room tax contributions.

The Room Tax Commission approved $75,000 over three years to contribute to the concession stand project, and also committed an additional two years of $25,000 per year (total $125,000 over five years) if the city is unsuccessful in obtaining a WEDC Vibrant Spaces grant.

Commissioners reviewed 2025 year-end numbers and early 2026 results and agreed to rein in spending because room tax revenue started the year slow.

The commission set a temporary operations spending cap of $315,000 and reduced multiple expense lines, including grants, print, billboards/signage, travel, education, dues, logo wear, and professional services.

The revised 2026 budget was slated to go to the Explore Two Rivers Board on April 9, with staff noting which cuts were considered “priority” to restore if revenue rebounds.