The city of Langley is considering different options for reallocating tourism funding.

Under a new agreement with Island County and the other municipalities on Whidbey, Langley’s countywide contributions have been reduced, meaning an estimated $25,000 in annual lodging tax revenue can be redirected to other sources within the city.

According to a memo from Mayor Kennedy Horstman, roughly 25% of overall lodging taxes collected by the city of Langley were committed to Island County joint tourism funding. But the proposed update to the interlocal agreement is expected to reduce Langley’s contribution to joint tourism funding by half, a recalculation that aligns with other municipalities.

During a city council meeting Monday night, Horstman explained that half of the recuperation could be directed to increase funding for capital improvements and operation of tourism facilities in Langley, including the visitor’s center and public restrooms.

“Our expenses have exceeded our revenues in recent years,” Horstman said. “We want to make sure that we can actually maintain our facilities, and saving our tourism dollars to cover both operations and capital improvements means that’s something that we don’t have to look to the general fund to do.”

The other half would go to grants that could cover affordable housing development or utility hookup fees. Horstman said the current law allows the use of lodging tax revenue to refund a bond. She is currently part of a working group of mayors focused on housing in communities with tourism-based economies. The group plans to lobby state legislators for change, but efforts have been delayed by flooding that occurred. By setting aside funds now, Horstman said, Langley can be prepared when the path forward is more clear, which might take a few years.

Councilmember Dominique Emerson wondered if it might be appropriate to add language specifying that the affordable housing development is only for people who work in Langley, but Horstman said she wasn’t sure if that criteria would be legal, but it could be a goal. Councilmember Chris Carlson said a housing developer wouldn’t be able to limit their residents geographically. Councilmember Thomas Gill added there is a “dubiousness” about how much that can be enforced.

Councilmember Craig Cyr pointed out that utility connections are expensive, and grant money is not available. Horstman acknowledged that Langley nonprofit affordable housing developers, like Coyla Shepard of Tiny Houses in the Name of Christ and Whidbey Island Living Legacy, have attested how costly it is to address development fee requirements in the city. Carlson pointed out that Shepard’s numbers for sewer and water connection and permit fees totaled up to about $17,000 per unit. With the amount of funding set aside by Langley, this would likely mean covering the cost of only one connection per year.

Cyr applauded David Price, a Langley citizen and business owner, for doing the research and finding out that lodging tax revenue can be put towards affordable housing.

Langley currently collects a 4% tax on stays at hotels, motels, Airbnbs, RV parks and other lodging accommodations, some of which must go to countywide tourism efforts.

Horstman proposed that 12.5% of the current year’s revenue collection should go to Island County Tourism (previously 25%), 31.25% to operations and maintenance of tourism facilities in Langley (previously 25%) and the remaining 6.25% to affordable housing.

As part of the proposal, the remaining 50% will continue to be evenly split between being committed to next year’s grant cycle and to a contract with the Langley Chamber of Commerce for visitor’s center operations.

The mayor plans to bring a resolution to the next meeting for the city council to approve the proposed changes.