Chehalis Council Discusses Lodging Tax Grants; Holds Off Allocation

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The Chehalis City Council discussed but held off on voting on a recommended $186,352 in estimated lodging tax to be allocated to several organizations with the largest amounts going to the Centralia-Chehalis Chamber of Commerce, Chehalis-Centralia Railroad & Museum and the Veterans Memorial Museum.

Due to the impacts of COVID-19 on the economy, the lodging tax revenues are lower this year compared to the $279,435 that was awarded by the council to local organizations last year. 

There were some questions among council members if the amount of money left in the reserves reflected the funding that was not utilized during the COVID-19 closures and would roll over into 2021. The council voted to hold off on voting on allocating the funds until the accounting side of things was more clear — making sure not to dip below the $50,000 in reserves. The council used the Lewis County Historical Museum as an example. The museum was to receive $20,000 in lodging tax funds this year but since they were closed due to COVID-19 they did not spend or ask for reimbursement for the funds. The funds that were not used would roll over and be added to their 2021 lodging tax funds. There was confusion around if that “roll-over” amount was recorded correctly and if not, would dip into the city’s lodging tax reserves.

A reserve of $50,000 is set aside from the total revenues for city projects and activities that may come up throughout the year. 

Councilor Chad Taylor, the chairman of the lodging tax advisory committee (LTAC), presented the lodging tax recommendation to the rest of the council but didn’t complete his presentation before questions about the used 2020 funds were raised.

The organizations that requested a portion of the LTAC funds were: ARTrails (requested: $5,000, recommended: $2,500), Centralia-Chehalis Chamber of Commerce (requested: $50,000, recommended: $50,000), Chehalis-Centralia Railroad & Museum (requested: $50,000, recommended: $50,000), Chehalis Community Renaissance Team (requested: $31,900, recommended: $24,852), City of Chehalis — RV park restrooms (requested: $20,000, recommended: $0), City of Chehalis — youth athletic tournaments (requested: $20,000, recommended: $20,000), Lewis County Historical Museum (requested: $45,000, recommended: $11,000), Veterans Memorial Museum (requested: $30,000, recommended: $28,000) — totaling $186,352.

There were also some concerns about duplications of services between the Chehalis Community Renaissance Team and the Centralia-Chehalis Chamber of Commerce. Both organizations aim to assist businesses within the community.



“There would be some duplication but the chamber would be helping their members and the renaissance team would be helping businesses within the city,” said Mayor Dennis Dawes.

The council members agreed that there needed to be more discussion around the LTAC funds and should not be voted on at Monday afternoon’s meeting.

Mayor Dennis Dawes said that the budget committee is meeting on Oct. 5 and the LTAC funds will be discussed and then brought back to council at their next meeting on Oct. 12. More information on the lodging tax revenue allocation can be found on this week’s city council agenda packet online at www.ci.chehalis.wa.us/sites/default/files/fileattachments/city_council/meeting/5231/full_agenda_9-28-20.pdf.