County weighs shifts in lodging tax funding for 2027

CHELAN COUNTY — Deliberations of how to allocate Chelan County’s lodging tax revenue to promote tourism are currently underway.

The Board of Chelan County Commissioners reviewed recommendations from the Lodging Tax Advisory Committee (LTAC) on 2027 funding framework and grant awards on Oct. 19.

The committee recommended funding the framework at 110% again for 2027, due to the weather and smoke events that challenged tourism throughout the county this year. According to Chelan County Economic Services Director Ron Cridlebaugh, there is enough in the lodging tax reserve fund to meet 110%, but it will be the last year there is enough in the fund.

“I think the committee's opinion on that was the fact that now is not the time to take your foot off the gas because we've had a pretty challenging year,” said Commissioner and LTAC Chairman Shon Smith.

Under this framework, the committee recommended allotting 15% to the Lake Chelan Chamber of Commerce, 20% to the Leavenworth Chamber of Commerce, 20% to Chelan County, 10% to Event & Marketing Grants, 27% to Visit Chelan County, 3% to Cascade Loop, 9% to the Manson Chamber of Commerce, 3% to the Cashmere Chamber of Commerce, and 3% to TREAD, rather than the Entiat Chamber of Commerce.

The committee recommended approximately $283,000 in Event & Marketing Grant awards to local organizations promoting tourism and tourism-related facilities.

Following a review of the recommendations, county commissioners opted to send the proposal back to the committee with a handful of suggested changes.

Under the framework, commissioners suggested shifting up to 20% for the Chelan Chamber of Commerce and down to 4% for the Manson Chamber of Commerce, reasoning that Manson’s Chamber is slated to receive Event & Marketing Grant funding for five of its events.

Commissioner Brad Hawkins suggested shifting 5% of Visit Chelan County’s allotment toward the county itself in order to build capacity for the county’s tourism-related parks and facilities.

“I think we have enough needs in Chelan County that we need to build towards that,” said Hawkins.

Commissioner Kevin Overbay agreed with Hawkins’ reasoning, but was in favor of making the change gradual.

“I can't at this time because the work that Visit Chelan County is doing, I don't believe that Chelan County itself is ready to do,” said Smith.

The commissioners settled on the suggestion that Visit Chelan County’s apportionment was lowered to 25% and Chelan County’s increased to 22%.

Commissioners also made suggested changes toward Event & Marketing Grant awards, such as decreasing the award amount for Cascade Community Markets, reasoning that a farmers market was more community-driven than tourism-driven, and increasing amounts for Cashmere’s Wenatchee River Bluegrass Festival and initiatives in Stehekin.

The recommendations will be sent back to LTAC for consideration.