Department of the City Manager
Reference: Brighton Lodging Tax Advisory Committee 2023 Award Recommendations
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Kayla Barber-Perrotta, Budget & Performance Manager
Date Prepared: February 1, 2023
PURPOSE:
Per Section 3-40-170(b) of the Brighton Municipal Code, the Brighton Lodging Tax Advisory Committee shall study, investigate and advise City Council as to the development and promulgation of policies for the implementation, support and use of revenues from the lodging tax for economic development, special events, cultural arts facilities, advertising and marketing, promotion of tourism and other activities related thereto. In particular, the Committee will advise the City Council on allocation, budgeting and appropriation of funds from the Lodging Tax Fund is accordance with Section 3-40-50.
The Brighton Lodging Tax Advisory Committee (BLTAC) is presenting their recommendations for the BLTAC Regular Grant awards and allocations for projects to be completed in FY 2023.
BACKGROUND
In August 2018, the City Council approved a pilot program modifying the annual Lodging Tax grant process for 2019 and 2020 to incorporate allocating forty percent of grant dollars to the Brighton Economic Development Corporation (EDC) and forty percent to the Brighton Cultural Arts Commission (BCAC). In turn, grant applications received by the committee in the areas of economic development and cultural arts would also be referred to the EDC and BCAC respectively. The Lodging Tax Advisory Committee would then interview any applicants that had not been referred to either EDC or BCAC and use the remaining 20% to recommend grant allocations in a similar fashion to previous grant-cycle years.
After several years operating under this pilot program BLTAC reviewed what worked and did not work regarding this structure. Through this analysis, BLTAC found that a consistent portion of funding to EDC and BCAC was being pushed through to the Brighton Chamber of Commerce and the Armory each year. This creates substantial paperwork and tracking for these entities. Additionally, nearly all applications were being pushed to EDC and BCAC for funding, regularly leaving portions of the remaining 20% of funds unused.
For 2023, BLTAC is revising its recommended spread to improve ease of use by awardees while still maintaining necessary tracking and record keeping. This new proposed structure includes $10,000 for general projects, 30 percent directly to EDC, 30 percent directly to BCAC, 20 percent directly to the Brighton Chamber of Commerce, and 20 percent directly to the Armory. As such, the attached resolution allocates $410,000 in the following structure:
A. Brighton Economic Development Corporation $120,000
B. Brighton Cultural Arts Commission $120,000
C. Brighton Chamber of Commerce $ 80,000
D. The Armory $ 80,000
E. Brighton Youth Baseball Association $10,000
Total Allocation: $ 410,000
Eight grant applications were received by the BLTAC with six of those applications referred to BCAC. The remaining two applications totaling $46,000 were reviewed by BLTAC and only the application submitted by the Brighton Youth Baseball Association was found to meet Lodging Tax requirements and recommended for funding.
The BLTAC is further recommending that the EDC and BCAC be allowed to carryover unused funds from their 2022 award to be used in the 2023 calendar year. This amounts to $82,613.70 for EDC and $118,184 for BCAC.
FINANCIAL IMPACT
The financial impact to the City budget has already been accounted for. $350,000 was initially appropriated in the Lodging Tax Fund for 2023 to cover grant programs. An additional $60,000 was appropriated through the first amendment to the 2023 Budget bringing the total to $410,000.
STAFF RECOMMENDATION
Approval of BLTAC Allocations and Grant Awards totaling $410,000.
ATTACHMENTS
• Resolution