Staff proposes drawing lodging‑tax reserve for START and parks; council asks for formal policy

During the April 13 budget review staff presented proposed uses for the town’s lodging‑tax fund and recommended drawing down a portion of its balance—about $717,650—to cover START bus contributions, parks and recreation, and pathways this year.

"The 30% [of lodging tax] has to be used for visitor impact, which is why we're putting it in START, Park Center, and Pathways," the Town Manager said. He acknowledged the drawdown is largely a one‑time use of fund balance and warned council that drawing it down reduces future flexibility.

Councilors pressed for a clear policy on lodging‑tax purpose and fund‑balance targets, noting that historically the fund has grown because projects did not proceed as expected. Several councilors asked staff to return with a recommended policy that outlines when lodging tax should support recurring operations versus one‑time capital costs.

Staff flagged that if the lodging‑tax draw is not used this year, the equivalent amount (~$717K) would need to come from the general fund to maintain the same level of START and park programming in FY27. The council indicated interest in a future policy discussion and asked staff to model multi‑year impacts before committing a large drawdown.