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HomeMy WebLinkAboutResolution No. 26-02 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 26- O2 A RESOLUTION ADOPTING A STRATEGIC FRAMEWORK TO GUIDE THE USE OF TRANSIENT LODGING TAX (TLT) REVENUE IN THE CITY OF TIGARD WHEREAS,Transient Lodging Tax(TLT) revenue is one of Tigard's few locally controlled funding sources that directly connects the community to the regional visitor economy and provides an opportunity to reinvest visitor spending into experiences, amenities, and programs that benefit both visitors and residents; and WHEREAS, Oregon law requires that lodging taxes adopted after July 1, 2003, comply with the "70/30 rule," under which at least 70 percent of net TLT revenue must be used for tourism promotion or tourism-related facilities,with up to 30 percent permitted for general city services; and WHEREAS, the city's local 2.5 percent Transient Lodging Tax took effect September 8, 2017, and the city has since accumulated a stable and growing TLT fund balance, creating an opportunity to move from primarily reactive and operational expenditures toward more intentional, high-impact, and strategic investments; and WHEREAS,the city engaged ECOnorthwest to evaluate Tigard's TLT revenue trends, statutory requirements, current practices, and peer city approaches, to facilitate a collaborative process to establish a shared vision and policy framework for future TLT investments; and WHEREAS, city staff, regional partners, and stakeholders participated in a facilitated workshop in November 2025, to identify long-term goals, desired outcomes, and priority investment categories for the city's use of Transient Lodging Tax revenue; and WHEREAS, this process resulted in a clear vision for Tigard's TLT investments, emphasizing strong partnerships, intentional use of resources, and year-round visitor experiences that elevate Tigard's brand identity, destination appeal, and community vitality; and WHEREAS, the framework establishes three priority expenditure categories—Promotion and Marketing; Destination Improvements; and Events and Entertainment—to guide the evaluation and allocation of TLT resources in a transparent and consistent manner; and WHEREAS, the City Council desires to formally adopt a policy framework that aligns TLT expenditures with statutory requirements, community values, and long-term economic development objectives, while providing clear direction to staff for budgeting, program development, and funding decisions; and WHEREAS,The TLT Framework provides for the establishment of a TLT Administrative Committee,comprised at a minimum of the city's Finance Director, Community Development Director, Economic Development Manager, City Attorney, and a representative from the city's Grant Committee, to support coordinated evaluation and recommendation of TLT expenditures consistent with Council-adopted priorities. RESOLUTION NO. 26- 02. Page 1 NOW, THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: The Tigard City Council hereby adopts the Transient Lodging Tax Framework ("TLT Framework"), attached hereto as Exhibit A and incorporated by this reference,to guide the city's future use of TLT revenue. SECTION 2: The adopted TLT Framework establishes a long-term vision for TLT investments and identifies priority expenditure categories intended to strengthen Tigard's visitor economy, enhance destination appeal, and support experiences and amenities that benefit residents, businesses, and visitors alike. SECTION 3: The City Council affirms that all TLT expenditures shall continue to comply with applicable Oregon statutes, including the requirement that at least 70 percent of net TLT revenue be used for tourism promotion or tourism-related facilities. SECTION 4: The TLT Framework shall serve as policy guidance for city staff in the development of annual budgets, internal allocation processes, direct expenditures, and any future grant or partnership programs supported by TLT revenue. SECTION 5: Adoption of this Resolution does not appropriate funds, create contractual obligations, or commit the city to specific projects, but establishes a strategic policy framework to inform future Council and staff decision-making. SECTION 6: This resolution is effective immediately upon passage. PASSED: This 13th day of locum y 2026.VMay - City of Ti rd ,----..) A ATTEST: City Recorder- City of Tigard RESOLUTION NO. 26- 02. Page 2 rA ► ECO northwest December 2025 Tigard Transient Lodging Tax (TLT) Framework City of Tigard Prepared For the City of Tigard ECOnorthwest 920 SW 6th Ave • Suite 1400 • Portland, OR 97204 • 503-222-6060 Acknowledgments ECOnorthwest prepared this report with support from the guidance and input of several partners, including members, staff, and leadership of the City of Tigard, Tigard Chamber of Commerce, Washington County Economic Development, and Explore Tualatin Valley. The staff at ECOnorthwest prepared this report based on their general knowledge of the economics of recreation, amenities, and regional economies. ECOnorthwest staff contributing to this study included Matt Craigie, Tamar Farchy, Mia Oscarsson, Cadence Petros, and Oscar Saucedo-Andrade. ECOnorthwest also relied on information derived from government agencies, private statistical services, the reports of others, interviews of individuals, or other sources believed to be reliable. ECOnorthwest has not independently verified the accuracy of all such information and makes no representation regarding its accuracy or completeness. Any statements nonfactual in nature constitute the authors' current opinions, which may change as more information becomes available. For more information about this report please contact: Matt Craigie craigie@econw.com ECOnorthwest 503-222-6060 , 1 0 Tigard TLT Evaluation and Spending Policy Guidance �\ Table of Contents Executive Summary 1 Tigard's Use of Transient Lodging Taxes 4 TL T Use in Peer Cities 10 Establishing a Vision and Expenditure Categories 17 Appendix A: Preliminary TL T Allocation Tool 19 , 2 I Tigard TLT Evaluation and Spending Policy Guidance \\ rA ECO northwest Executive Summary Purpose and Context Transient Lodging Tax (TLT) revenue connects Tigard to the regional visitor economy and offers one of the City's few locally controlled funding tools with meaningful growth potential. Each overnight stay generates revenue that can be reinvested in experiences, programs, and places that strengthen Tigard's appeal to visitors while enhancing amenities for residents. State law requires that most TLT funding be used for tourism promotion or visitor-related facilities, but within those parameters, Tigard has wide latitude to shape a strategy that supports economic vitality, elevates the city's identity, and improves quality of life. With a growing fund balance, the City has an opportunity to shift from maintaining basic support for events and visitor services to making more intentional, high-impact investments that reflect Tigard's values and long-term aspirations. Vision for Tigard's Investments A vision for TLT investments provides the City with a north star. It translates the potential of the TLT fund into a clear statement about the kind of community Tigard wants to become and the visitor experience it aims to offer. By grounding decisions in a shared vision, the City can shift from reactive, project-by-project allocation to intentional investments that build toward a vibrant, recognizable, and welcoming Tigard over time. The vision below captures that north star, reflecting the direction developed collaboratively by City staff and project partners and expressing the long-term outcomes Tigard aims to achieve through intentional investment of TLT resources. VISION: "The City of Tigard invests Transient Lodging Tax funds using a thoughtful and balanced approach supported by strong partnerships to attract visitors, build a recognizable brand identity, and create year-round experiences that highlight the city's recreation assets, entertainment offerings, and destination appeal in ways that benefit the community, businesses, and visitors alike." Tigard TLT Evaluation and Spending Guidance 1 Expenditure Priorities Achieving this vision requires clarity about where TLT investments can make the greatest impact. To provide practical guidance for future decisions, City staff and project partners identified three expenditure priorities that describe the major types of investments most likely to strengthen Tigard's visitor experience, elevate the city's identity, and advance long- term community goals. These categories form a coherent and transparent framework for organizing funding requests and supporting consistent, high-impact allocation of TLT resources. Priority 1: Promotion and Marketing tyl Marketing and promotion includes investments in City-led and partner efforts that attract visitors by sharing Tigard's story, developing the city's brand, and promoting the events, amenities, and experiences that draw people to Tigard. ,+: Priority 2: Destination Improvements Destination Improvements include enhancements to visitor serving places and amenities that support access, navigation, and the experience of exploring Tigard, including improvements to infrastructure, wayfinding, recreation connections, and other features that help visitors find and enjoy what Tigard has to offer. APriority 3: Events and Entertainment Events and Entertainment includes support for programming and activities offered throughout the year by the City and its partners that attract visitors and create a regional draw for Tigard. Priority Emphasis and Evaluation Considerations While all three expenditure categories are important to achieving Tigard's long-term vision for TLT, workshop participants agreed that Promotion and Marketing should be the City's highest priority for future investment, followed by Destination Improvements and, to a slightly lesser degree, Events and Entertainment. Regardless of priority, all expenditures must comply with Oregon's statutory requirements for tourism-related spending. As staff review TLT funding proposals, they will consider the degree to which projects align with the adopted vision and expenditure categories, contribute meaningfully to Tigard's visitor experience or identity, and, where appropriate, leverage partnerships that expand impact. , 2 0 Tigard TLT Evaluation and Spending Policy Guidance N Using the Framework Going Forward Together, the vision and expenditure categories constitute a shared framework that will guide how the City evaluates and allocates TLT resources going forward. Once adopted by Council, this framework will provide clear direction to staff as they incorporate TLT priorities into budgeting, develop processes and protocols for direct expenditures, and design grantmaking programs that align with Tigard's long-term goals. By grounding future decisions in this structure, the City can ensure that TLT investments are consistent, transparent, and strategically targeted to strengthen Tigard's visitor experience and community vitality over time. NEXT STEPS: CREATING A PRELIMINARY TLT ALLOCATION TOOL With the spending framework established, the City should create an internal tool that would guide decisions on how to identify, prioritize, and confirm actual TLT expenditures. This tool would allow the City to evaluate whether proposed TLT-funded initiatives align with the established vision, fall under the determined priority categories, and effectively use available funds and resources. An example of a TLT decision tool with guiding questions is shown below. We have created a Preliminary TLT Allocation Tool for the City to use for proposed TLT expenditures in Fiscal Year 2026/27. For more information and discussion, see Appendix A: Preliminary TLT Allocation Tool. /i 3 Tigard TLT Evaluation and Spending Policy Guidance L. Tigard ' s Use of Transient Lodging Taxes Purpose & Background Transient Lodging Tax (TLT) revenue is one of the City of Tigard's few locally controlled funding sources that directly connect the community to the regional visitor economy. For each night that a visitor stays in a hotel within city limits, a portion of that payment is returned to Tigard through the TLT. This revenue supports activities that promote tourism as well as other city services and projects that enhance the visitor experience and contribute to community vitality. Historically, Tigard has used TLT revenue to support tourism promotion, special events, and partnerships with regional tourism organizations that elevate the visibility of local businesses, restaurants, and cultural assets. As Tigard's economy and priorities continue to evolve, there is increasing value in viewing TLT funding through a more intentional and strategic lens. Peer communities across the Portland region are using lodging tax revenue not only to market their destinations, but also to invest in placemaking, arts and cultural programming, community-serving amenities, and capital projects that strengthen their year-round appeal. Understanding how Tigard currently allocates its TLT revenue within this broader context helps clarify where the City's approach aligns with peers and where new opportunities may exist. This evaluation provides a baseline for understanding Tigard's revenue trends, spending patterns, and statutory constraints, and serves as a foundation for developing a clear vision and framework to guide future TLT investments. As the City refines its wider economic development strategy, this analysis offers an opportunity to identify how visitor spending can contribute to Tigard's long-term goals and how a more structured approach to TLT allocations can improve transparency, strengthen outcomes, and support shared community priorities. Oregon Laws Governing Transient Lodging Tax Oregon state law places clear limits on how cities may spend revenue from the Transient Lodging Tax (TLT). The rules differ depending on when a tax was adopted or increased, but all lodging taxes implemented after July 1, 2003 must follow the state's "70/30 rule." Under this requirement, at least 70 percent of net TLT revenue must be spent on tourism promotion or tourism-related facilities, while up to 30 percent may be used for general city services. Oregon statue defines a "tourist" as someone who travels from at least 50 miles away to visit an areas, and tourism promotion activities must cater to the official definition of tourist. Eligible tourism uses include marketing, festivals, visitor information centers, 4 Tigard TLT Evaluation and Spending Policy Guidance L\ convention and arts or recreation venues, and other capital improvements that substantially support tourism. State law also allows TLT revenue to be used to finance or refinance debt for tourism-related facilities. Tigard's 2.5 percent local TLT took effect on September 8, 2017, which means it is subject to the post-2003 "new TLT" rules. As a result, the City must ensure that at least 70 percent of its TLT revenue is allocated to tourism-related purposes, with no more than 30 percent directed toward general services. The remaining statutory categories shown in Exhibit 1 apply to jurisdictions with grandfathered taxes or pre-existing rates that were later increased, but they do not affect Tigard's current use of funds. Exhibit 1. Comparison of Allowable Uses and Distribution of TLT Revenue TOURISM GENERAL DEBT COLLECTOR CATEGORY SERVICES REQUIREMENT FINANCING REIMBURSEMENT USED Must maintain at Allowed as set least the % before July 1, allocated to Rate in place Grandfathered 2003 (e.g., if Permitted for (Pre-2003) tourism as of 80% went to tourism-related before 2001 may TLT July 1, 2003 general fund, facilities. continue (cannot (cannot can maintain). be decreased). decrease). At least 70% of New TLT net revenue must Up to 30% Permitted for At least 5% of all (Post-2003) go to tourism may be used financing/ The City of promotion or for general refinancing debt collections must be Tigard falls into tourism-related city/county on tourism-related retained by lodging this category facilities. services. facilities. tax collectors. I Grandfathered Grandfathered portion keeps its portion keeps Permitted for Increase triggers Increased TLT reimbursement 5 old allocation; historic tourism-related (Grandfathered general fund on the entire tax, jurisdiction) increased portion allocation; facilities on the not just the must follow 70% increased portion. tourism rule. new portion increase. capped at 30%. 5 Tigard TLT Evaluation and Spending Policy Guidance Tigard's Use of TLT Tax Fund Since adopting its 2.5 percent local TLT in 2017, the City of Tigard has collected tax on hotel stays and other temporary lodging within city limits. When combined with county and state rates, the total transient lodging tax collected in Tigard is 13.3 percent. In accordance with state statute, Tigard allocates up to 30 percent of its TLT revenue to general city services, the maximum allowed under Oregon's "new TLT" rules. These general fund allocations support activities such as the Farmers Market with regional vendors and visitors, local events with a regional draw funded through the event grant program, overhead, and other existing services that contribute to the visitor experience. The remaining 70 percent of TLT revenue is reserved for tourism-related uses, which in Tigard fall into two primary areas: support for regional tourism activities such as the Balloon Festival and operations of the Tigard Area Chamber of Commerce Visitor's Center, and potential bonding for a facility that generates tourism. This current allocation of TLT revenue reflects statutory requirements but does not constitute a formal prioritization or decision-making structure for evaluating funding requests. In practice, Tigard's use of TLT revenue has remained relatively conservative, with spending occurring on a case-by-case basis in accordance with state rules and immediate operational needs, rather than through a consistent or strategic process. TLT Revenue Trends & Forecast Tigard's TLT revenue has fluctuated over time, reflecting broader economic conditions and shifts in travel patterns, but has generally stabilized in recent years and is now showing modest growth. The following section summarizes historical revenue trends, describes changes in the City's TLT fund balance, and outlines projected revenue based on current assumptions. Exhibit 2 below shows transient lodging taxes collected in Tigard between FY 2019 and FY 2024. In the first year of full collection (FY 2019), Tigard collected $749,625 in revenue from hotels and lodging establishments. During the COVID-19 pandemic, revenues dropped to $547,271 in FY 2020 and even more in FY 2021 to $324,614—with the lowest amount recorded during the peak of the pandemic. Since then, TLT revenues began to slowly grow and in FY 2023, revenue recovered to pre-pandemic levels. As of the latest FY 2024, Tigard collected $766,024 in transient lodging taxes. F, 6 Tigard TLT Evaluation and Spending Policy Guidance Exhibit 2. Tigard Historic TLT Revenue, In Nominal Dollars 900,000 800,000 749,625 739,729 766,024 700,000 600,000 547,271 324,614 583,387 500,000 400,000 300,000 200,000 100,000 FY19 FY20 FY21 FY22 FY23 FY24 Source: City of Tigard Since Tigard began collecting transient lodging taxes, the City has consistently spent less than it has collected. As a result, the TLT fund balance has grown each year. As of the beginning of FY 2025, the TLT fund balance was $2,022,606, while the City collected a total of $3,710,651 since the tax's inception. Since the first year of collections, Tigard has spent about 45 percent of its total TLT revenue. Of the revenue spent, Tigard's largest expense category has been general fund transfers — about 55 percent of total expenditures. The remaining has been spent primarily on a combination of community even grants (approximately 18 percent), such as the Tigard Balloon Festival, and parks capital expenses (approximately 26 percent), which have gone to the Cook Park Baseball Field and the Tigard Heritage Trail. Approximately one percent of expenditures were spent on overhead costs. TLT Revenue Forecast TLT revenue forecasts for Tigard are shown in Exhibit 3. The City's 2026 adopted budget assumes a one percent annual growth rate in TLT revenue and expects no new hotels or motels to be built in Tigard in the next five years. Under the one percent annual growth forecast, the City of Tigard is projected to collect $817,371 by FY 2030, an increase of five percent or $39,671 from FY 2025. Tigard TLT Evaluation and Spending Policy Guidance 7 b.\ Exhibit 3. Tigard Forecasted TLT Revenue, in Nominal Dollars FY 1% Annual Budgeted Growth g Actual Revenue FY 2023 739,729 739,729 FY 2024 766,024 766,024 Forecasted Revenue FY 2025 777,700 770,000 FY 2026 785,477 850,000 FY 2027 793,332 NA FY 2028 801,265 NA FY 2029 809,278 NA FY 2030 817,371 NA FY 2031 825,544 NI Source: City of Tigard, ECOnorthwest IMPACT OF NEW HOTEL DEVELOPMENT A new hotel in Tigard would increase overall TLT revenues and the funding available to reach the City's TLT vision and priorities. If the City were to see a new hotel development, the City would experience a jump in TLT revenue after the first year of operations and tax collections. From that initial increase, revenues would increase at a similar rate to forecasted TLT revenue in Exhibit 3. New hotel development is a primary driver of growth in TLT revenues. Hotels that support longer stays, such as those with conference facilities or extended- stay accommodations, typically generate higher TLT revenues than properties with fewer amenities. Should the City of Tigard be interested in substantially increasing TLT revenues, it should explore options to promote new hotel development. Current Allocation Framework Tigard's TLT revenue collections have stabilized in recent years, generating a healthy and growing fund balance totaling over two million dollars. However, the City does not currently operate under a formal allocation or prioritization structure for these funds. Spending decisions are made on an as-needed basis through the Finance Department and City Manager's Office, with final authorization by City Council. There is no standing committee or structured application process for departments or community partners to propose projects. At present, TLT revenue is primarily used to support the City's small community event grant program, typically totaling less than $50,000 annually, and to offset limited portions of general city operations. These allocations satisfy statutory requirements but do not reflect a clear or strategic approach to advancing Tigard's tourism or economic development goals compared to the more proactive models used by peer cities. , 8 0 Tigard TLT Evaluation and Spending Policy Guidance L\ Challenges and Opportunities The absence of a guiding plan, objectives, or governance structure for the TLT fund has contributed to a conservative approach to spending, with much of the revenue held in reserve rather than deployed for visitor-generating investments. As a result, the TLT program currently has limited direction and visibility, both within departments and with City Council. Finance staff and other departments have identified the need for a more intentional and transparent structure that establishes defined spending categories, measurable outcomes, and a consistent process for evaluating and prioritizing funding requests. Such a structure would help ensure that future TLT investments align with statutory intent and contribute more directly to Tigard's economic vitality and tourism identity. Establishing clear goals or objectives for TLT, such as tourism promotion, destination development, and visitor-serving capital projects, would help align investments with broader city priorities. A more deliberate governance process, supported by an interdepartmental or advisory review committee, could also help evaluate funding proposals more consistently and transparently. Applying clear criteria such as expected economic return, community benefit, and alignment with statutory requirements would help City Council and staff identify projects that offer the greatest overall value. Conversations with the Oregon Restaurant and Lodging Association (ORLA) reinforced these opportunities. ORLA noted that Tigard is well positioned to make catalytic investments that enhance resident quality of life while also driving overnight stays—a "win-win" approach viewed as essential by industry representatives. They emphasized opportunities such as strengthening signature events like the Balloon Festival, assessing the potential of Tigard's youth sports facilities to support tournaments or regional gatherings, and elevating amenities that differentiate Tigard within the regional visitor market. ORLA also highlighted the importance of transparent and accountable governance, recommending a review body with lodging-industry representation and regular reporting on TLT initiatives and outcomes. They emphasized that promotional investments should be targeted, data-informed, and focused on lifting occupancy during shoulder and off-peak seasons. Tigard TLT Evaluation and Spending Policy Guidance 9 L\ TLT Use in Peer Cities Overview of Peer Cities Peer cities across Oregon use their Transient Lodging Tax revenue in a variety of ways that reflect local priorities, statutory constraints, and strategic goals. While each city's approach is unique, several common patterns emerge that illustrate how TLT can support tourism promotion, community amenities, and economic development. Major Capital and Facility Investment Several cities use TLT as a financing or incentive tool for transformative projects that strengthen their visitor economy. They treat TLT as long-term leverage — either bonding against future revenue or rebating a portion to attract hotel development. When used as a strategic investment mechanism, TLT can fund one or two high-impact facilities that generate sustained tourism and economic benefit. For example, Beaverton imposed a 4 percent TLT on October 1, 2016, to fund the construction and operation of the Patricia Reser Center for the Arts.1 Through an adopted resolution, City Council directed that TLT revenues support the debt service on bonds used to construct the Center, as well as its operation, maintenance, and capital replacement reserves. The tax's secondary use is to support the arts program, which is mainly supported by the General Fund.2' 3 Currently, TLT funds are not yet supporting the arts program. Dundee has a 10 percent TLT and in June 2025, their City Council approved a revenue- sharing agreement with real estate developer SKB as an incentive to construct a new hotel in their city. The agreement phases TLT revenue-sharing across 15 years with a $10 million cap, aligning public benefit with private investment. The first three years, 25 percent of TLT revenue would go to the city and 75 percent to SKB. From year four to twelve, revenue would be split 50/50 between Dundee and SKB. The final three years, 75 percent of revenue would go to the city and 25 percent to SKB.4,5 1 Washington County, Oregon. "Transient Lodging Tax." https://www.washingtoncountyor.gov/finance/transient- lodging-tax. 2 City of Beaverton. Annual Budget Document FY2025-2026. https://content.civicplus.com/api/assets/5adabf65- 96d3-4e5f-8158-c2100d 1 cba4a?cache=1800. 3 City of Beaverton. A Resolution Relating to the Use of the City's Lodging Tax Revenue. https://beaverton.granicus.com/MetaViewer.php?clip_id=1982&meta_id=105945&view_id=2. 4 City of Dundee. City Council Meeting. May 20, 2025. https://www.dundeecity.org/vertical/sites/%7BE14ACB8D-5C5F-45F7.9F7A- A518EB570F6B%7D/uploads/05.20.2025_City_Council_Packet.pdf. 5 City of Dundee. City Council Meeting. June 17, 2025. https://www.dundeecity.org/vertical/sites/%7BE14ACB8D-5C5F-45F7-9F7A- A518EB570F6B%o7 D/u ploads/06.17.2025_packet.pdf /a° 10 Tigard TLT Evaluation and Spending Policy Guidance Arts and Culture Many peer cities direct TLT into arts programming and cultural events that reinforce community identity while also driving tourism. Arts-related spending positions TLT as a tool for cultural placemaking, tying tourism investment to historic preservation or city events. Sherwood's 3 percent TLT allocations follow the 70/30 rule where 30 percent of revenue is allocated to their general fund. Of the 70 percent reserved for tourism related purposes, roughly one-third is allocated to the arts fund, including the Sherwood Arts Center.6 A portion of Springfield's 4.5 percent TLT sustains its public art program, fund museum operations, and support the Arts Commission's rotating exhibits.? Albany uses a part of its 9 percent TLT to invest in recurring community events such as the Art & Air Festival and Veteran's Day Parade, treating them as signature attractions that strengthen both the city's image for tourists but also its community life for residents.8 Tourism Promotion and Destination Marketing A common practice is to direct a portion of TLT revenue to destination marketing organizations (DMOs) or visitor associations. Formal contracts or allocation formulas ensure predictable funding for tourism marketing and visitor engagement. With 9 percent TLT, Redmond uses a portion of the revenue to contract with Visit Central Oregon for marketing campaigns, digital asset development, and group sales support. Decisions are guided by the Tourism and Lodging Advisory Committee, which is represented by two lodging providers, one central business district representative, one Deschutes County Fairgrounds representative, and three members at-large.9 Albany provides annual operating support to its Downtown Association, Visitor's Association, and Historic Montieth House and Museum which together manage visitor services, advertising, and historic tourism promotion.10 Economic Development and City Services Several communities blend TLT with general fund activities that indirectly supports tourism, balancing the tourism promotion intent of TLT with practical fiscal needs. These uses balance the statutory intent of promoting tourism with practical fiscal needs like funding staff, infrastructure, and public services which are required for a positive visitor experience. 6 City of Sherwood. 2025-2027 Adopted Budget. May 22, 2025. https://sherwoodor.civicpluswebopen.com/media/83431. 7 City of Springfield. Fiscal Year 2026 Adopted Budget. https://springfield-or.gov/wp- content/uploads/2025/09/FY26-Adopted-CITY-Budget.pdf 8 City of Albany. 2025-2026 Budget. https://city-albany-or-cleardoc.cleargov.com/15851/557147/d. 9 City of Redmond. "Tourism & Lodging Advisory Committee." https://www.redmondoregon.gov/government/commissions-committees/tourism-lodging-advisory-committee to City of Albany. 2025-2026 Budget. /A 11 0 Tigard TLT Evaluation and Spending Policy Guidance ,\ Sherwood dedicates the remaining two-thirds of its 70% tourism allocation to its economic development department, economic development manager position, and tourism promotion through the Chamber of Commerce. Springfield and Albany fund economic development personnel and cross-departmental services, such as police, fire, public works support during major events, and maintenance of historic sites and infrastructure.11 ,12 Albany also allocates $100,000 per biennium of TLT funds to its Tourism Grant Program administered by its Tourism Advisory Committee, which supports new visitor initiatives.13 Redmond directs part of its TLT to public safety and infrastructure tied to visitor-oriented amenities like the Juniper Golf Course.14 Lessons Learned Cities that establish formal allocation frameworks — whether through council resolutions, adopted percentages that provide more guidance than the 70/30 rules, or advisory committee oversight — ensure stability over time. Communities like Beaverton and Dundee show the power of using TLT as strategic leverage for large capital investments while others like Sherwood, Albany, and Springfield emphasize cultural programming and local vibrancy. Cities that integrate TLT into broader economic development and public service initiatives demonstrate that the tax can both attract visitors and enhance resident quality of life. 11 City of Albany. 2025-2026 Budget. 12 City of Springfield. Fiscal Year2026 Adopted Budget. 13 City of Albany. 2025-2026 Budget. 14 City of Redmond. FY2025-2026 Adopted Budget. https://www.redmondoregon.gov/home/showpublisheddocument/27064/638912182191770000. /A 12 Tigard TLT Evaluation and Spending Policy Guidance L\ W ui < •- t0 v > ,_ 00+� x O C (O c J x V) CD ,- O C U R C N m O c0 co i a OD 0 \ 0 a) co o Op -O N 00 01 00 Ur N N J Z c fc6 U O U O p .E ~ a) Q) O N N a) W Q) b\ C .0 00 O i.., L Vl 7 - Q .OD-0 ++ O c6 ++ -0 Ln O 0 In Q C�J 0 0 +a 2 LO C _c 0 .--. 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NN C O F- Q; OiZYO O C O •• -0 C • O O N o a) ca O• C -0 C 0 E F- C ._ C a) 'i D a) J C ..+ a) JL QNL I- - (o E Q cn cn CC v) -a cw E Oo000 co 0no CC E Ce 0 0 0 U U m a tr, liD n J e- r J ~ Z D L O O Z_ LX 0- N I- H Z 0 O O O Z • O IX I— w C7 = Z cn = U) Z 0 >- C7 Z_ 2 Q F- • Z Z O U H w w m O w O m T 00 Q) > -0 C C O d0 � Z C Y a O E C N O L O N O O C O U OE O O to to +• Z 7 C N C .- m O 0 0 o a1i al aI- a)Z > .� J m 0 .m a o J C V C >, L ~ - ro �c N � mavO Om N _ a Z C O co 0 < •- a + Q T . 40 � m 7 `C N U TLm< < C O a) CU ._ J 0 _ 0 a) o O m 0 > N o _C CID) c a) a c Co C _o CoJo CO LU J F- a CO t7a Establishing a Vision and Expenditure Categories As part of the City's effort to develop a strategic framework for its TLT revenue, City staff as well as Tigard Chamber of Commerce and Explore Tualatin Valley partners participated in a facilitated workshop on November 18, 2025, to collaboratively shape a long-term vision and identify priority expenditure categories. The workshop built on an environmental scan of Tigard's growing TLT fund balance and peer city practices, and asked staff to consider what Tigard could look like in five to ten years with intentional tourism-related investments. Through a series of individual, small-group, and full-group exercises, participants articulated desired outcomes for Tigard's visitor experience and community identity. These discussions emphasized the importance of using TLT strategically to strengthen Tigard's brand, enhance its recreational and entertainment offerings, and support partnerships that create year-round experiences for residents and visitors alike. The vision that emerged reflects these shared aspirations and the City's interest in aligning TLT investments with broader economic and community goals. Workshop participants also identified and prioritized expenditure categories that translate this vision into actionable guidance for future TLT decisions. These categories: Promotion and Marketing, Destination Improvements, and Events and Entertainment, represent broad areas where the City can focus investments to achieve the desired outcomes. Together, they form the foundation for the TLT strategy and provide structure for evaluating funding requests going forward. Vision The workshop discussions culminated in the development of a shared vision to guide Tigard's future use of TLT revenue. This vision reflects the collective input of City staff, the Chamber of Commerce, and Explore Tualatin Valley partners, and captures the long-term outcomes participants hope to achieve through more intentional investment in Tigard's visitor experience. It is intended to serve as a touchstone for aligning TLT spending with the community's aspirations and the City's broader economic and tourism goals. "The City of Tigard invests Transient Lodging Tax funds using a thoughtful and balanced approach supported by strong partnerships to attract visitors, build a recognizable brand identity, and create year-round experiences that highlight the city's recreation assets, entertainment offerings, and destination appeal in ways that benefit the community, businesses, and visitors alike." Expenditure Categories To translate the vision into practical guidance for future decisions, workshop Priority 1: Promotion and Marketing Marketing and Promotion includes investments in City-led and partner efforts that attract visitors by sharing Tigard's story, developing the city's brand, and promoting the events, amenities, and experiences that draw people to Tigard. Priority 2: Destination Improvements Destination Improvements include enhancements to visitor-serving places and amenities that support access, navigation, and the experience of exploring Tigard, including improvements to infrastructure, wayfinding, recreation connections, and other features that help visitors find and enjoy what Tigard has to offer. Priority 3: Events and Entertainment Events and Entertainment includes support for programming and activities offered throughout the year by the City and its partners that attract visitors and create a regional draw for Tigard. While all three expenditure categories are important to achieving Tigard's long-term vision for TLT, workshop participants agreed that Promotion and Marketing should be the City's highest priority for future investment, followed by Destination Improvements and, to a slightly lesser degree, Events and Entertainment. Regardless of priority, all expenditures must comply with Oregon's statutory requirements for tourism-related spending, including the 70 percent requirement for tourism promotion and tourism- related facilities. These categories offer clear direction for how Tigard can focus its TLT resources to advance the community's visitor-serving goals and guide staff in preparing budgets and developing internal processes for reviewing funding proposals. Next Steps: A Preliminary TLT Allocation Tool When reviewing future proposals for TLT funding, City staff will use the Preliminary TLT Allocation Tool (See Appendix A: Preliminary TLT Allocation Tool). The purpose of the tool is to align all TLT spending with the newly established Vision Statement and to use criteria to ensure that each expenditure meets the City's TLT priorities and follows statutory guidelines. The Tool will be used by a newly formed TLT Administrative Committee, comprised of (at a minimum) the City's Finance Director, Community Development Director, Economic Development Manager, and a representative from the City's Grant Committee. By using a committee, multiple perspectives are brought into funding allocation decisions and no one person has sole expenditure authority. We recommend that the committee use the Preliminary TLT Allocation Tool as a pilot for Fiscal Year 2026/27, refining it and their procedures as needed in future fiscal years. The Committee should convene at the least once a year during the annual budget cycle. We also recommend quarterly meetings to reviewing ongoing expenditures and consider out-of-cycle funding requests. Together, the vision, expenditure categories, and TLT Allocation Tool in this report provide an initial framework to guide Tigard's future use of TLT revenue. 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