Money from hotel-tax exceeds project applicants

A Spokane Valley committee charged with distributing funds from the hotel tax has found itself in a rare situation – there’s more money than projects competing for it.

Councilman Steve Taylor presented the annual recommendations of the Lodging Tax Advisory Committee at Tuesday’s council meeting.

Extra tax revenues this year amount to $280,000, which will be carried into next year. Room-tax revenue for 2007 is estimated to be $350,000, bringing the total budget to more than $630,000.

The committee asked the council to spend $382,500 on projects suggested by seven local groups.

“We still have quite a bit of money left over,” Taylor said, and the committee plans to take another round of applications for the funds in the spring.

Valleyfest would receive $25,000 to promote its events next year.

“We are growing every year, adding more attractions and more events,” said Peggy Doering, who heads Valleyfest and also serves on the lodging tax committee.

This year the organization and the Spokane Regional Sports Commission used lodging tax funds to promote the new logging festival at Valleyfest.

The latest group to request funding is Six Bridges Arts Association, the group behind Pig Out in the Park. It plans to bring musical acts to Spokane Valley parks and schools next summer.

Stiff state guidelines on how the money can be spent may have deterred groups from applying, Taylor said. The tax can’t be spent on operating expenses or capital projects and is generally used only for marketing and advertising.

At the meeting, Mayor Diana Wilhite also suggested some groups may not be able to spend their own money and be reimbursed by the tax money.

Spending the tax revenue to promote the city makes more sense than saving it, Taylor told the council, but the committee wanted to consider each request on its merits and not just spend the money because it’s there.

In the future, the committee plans to make it simpler for groups to apply for the funds, he said.