tourism promotion spending

Room Tax Commission representative and a private investor tied to the Cobblestone Hotel presented an alternative financing concept for improvements to the Neshotah Beach building using room tax dollars, event-space revenue, donations, and borrowing.

Council members raised concerns that if projected revenues do not materialize, the city would still be responsible for payments, leaving taxpayers carrying the downside risk.

Staff described the Neshotah Beach financing approach as a potential “test case.”

Two Rivers Main Street’s director presented a draft 2026 budget and reviewed 2025 activities including downtown events and façade grants.

Main Street projected a 2026 deficit and attributed 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, attributed to a reconciliation that year.

A treasurer’s report was listed as an action item.

A committee voted 2-0 to recommend the 2026 budgets and a proposed 4.05% property tax levy increase to City Council, contingent on changes including seeking an additional $5,000 from the Room Tax Committee.

City Council voted 8-1 to direct staff to proceed with a 2026 Neshotah Beach concession stand renovation plan capped at $520,000.

City Council direction included a cap of $256,000 in city borrowing and an estimated city tax investment cap of $131,000 after room tax contributions.

Room Tax Commission approved $75,000 over three years for the concession stand project and committed an additional two years of $25,000 per year if a WEDC Vibrant Spaces grant is not obtained.

Explore Two Rivers’ board reviewed “I LOVE TR” merchandise and generally approved the lineup, with feedback including mug quality and logo orientation.

An update on Erickson’s production of “I LOVE TR” apparel was not discussed because a key member was absent.

A meeting agenda included an action item titled “Funding Request for Civic Brand Site Visit.”

Tourism staff reported 2025 room tax revenue finished about 10% lower than 2024.

Tourism staff reported the Room Tax Commission ended the year with a little over $75,000 in its general fund.

Tourism staff reported short-term rentals dropped from about 40 to 34 over the year, with a few more expected to come off the list going into summer.

An agenda item was scheduled to amend the city room tax ordinance to include RV overnight stays.

City Council adopted an ordinance applying the city’s 8% room tax to short-term RV and camper stays.

The adopted ordinance requires separate reporting for RV/camper room-tax revenue.

The ordinance passed 7-0.

Explore Two Rivers’ board reviewed its National Travel and Tourism Week event and discussed tweaks for next time, including giving vendors more time and possibly rotating venues.

Explore Two Rivers approved proceeding with an independent printed 2027 visitor guide and earmarked $10,000 in room-tax funds to start, while acknowledging total costs could reach about $20,000 depending on print quantity and ad sales.

Explore Two Rivers said it chose to keep control of its own printed guide rather than fold into another product, and agreed the guide should market the broader region alongside Two Rivers.

Explore Two Rivers discussed next steps for “I Love TR,” including using “community ambassadors,” creating onboarding materials about local history and tourism’s economic role, and planning another ambassador meeting for late June with visibility at summer events.

Explore Two Rivers discussed visitor guide costs versus ad sponsorships and approved a funding approach: $7,500 covered by ad revenue, with the remainder paid by Explore Two Rivers while also requesting support from the Room Tax Commission.

Staff reported the visitor guide is on track for 2027 publication.

A meeting agenda included an action item titled “Budget Review.”

Room Tax Commission approved a draft 2026 tourism and room tax budget using conservative revenue targets based on 2024 actuals, citing a slow start to 2025 and economic uncertainty.

The commission reserved $30,000 for future capital improvements tied directly to tourism/overnight stays.

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 for a business plan with measurable results before future consideration.

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 budget would be shared with Explore Two Rivers so it can build its 2026 marketing plan within these limits.

Staff reported 2025 room-tax revenue was significantly below budget, with the decline beginning in April.

Staff cited the NFL Draft as an example of an event expected to boost bookings that did not materialize for Two Rivers.

Staff forecast the room-tax reserve fund would end 2025 at $62,299, below the commission’s $90,000 goal.

The commission expected to revisit 2026 budget adjustments at its Q1 2026 meeting.