Cashmere looks to stretch tourism dollars further with new lodging tax plan

CASHMERE — The Cashmere City Council voted Monday, Jan. 12, to reset how the city distributes its lodging tax revenues, approving a new approach that gives the Cashmere Chamber of Commerce a smaller share of the 2025 funds while setting up an even 50-50 split between the chamber and the city going forward.

The decision reflects a shift in how the city is thinking about the lodging tax, also known as LTAC funds, which are collected from overnight stays and must be used for tourism promotion and tourism-related facilities.

City Administrator Steve Croci told council members the old arrangement — in which most or all of the money went to the chamber — was largely a product of circumstance rather than strategy.

“For years, this has been done mostly out of habit, because we never even hit the cap,” Croci said.

That has changed in recent years as short-term rentals and lodging activity have grown. In 2025, Cashmere collected more than $13,000 in lodging tax revenue, well above the $5,000 cap written into the city’s longstanding agreement with the chamber. In past years, the city had continued passing through the full amount, but Croci said staff and council began re-examining that approach as the totals increased.

On Monday, the council voted to split the 2025 funds, sending a portion to the chamber while retaining the remainder for city-led tourism projects. At the same time, council agreed in principle to move to a 50-50 split in future years, with a revised agreement to be brought back for formal approval.

Cashmere Chamber of Commerce President Kendra Clark told the council the chamber is in a rebuilding phase and is working toward greater financial independence.

“We’re trying to get to a place where we’re more self-supporting and not constantly coming back to the council for one-off sponsorships,” Clark said.

Clark said the chamber’s focus is shifting toward building stronger, more consistent programming rather than relying on a patchwork of individual sponsorship requests. She also encouraged the city to think creatively about how its share of the funds could be used to strengthen Cashmere’s appeal to visitors.

Among the ideas discussed Monday night were improved wayfinding and signage around town, particularly in areas where older signs still point to businesses that no longer exist, and better tools for tracking visitor traffic during major events.

Clark also pointed to “Christmas in Cashmere” as an example of an event with untapped potential.

“Instead of just one day, I’d really like to see this become something that brings people back multiple weekends,” Clark said.

She suggested that building the event into a longer, multi-weekend draw could help turn existing crowds into repeat visitors who spend more time and money in town.

Council members broadly supported the idea of using the city’s share of LTAC funds for projects that make Cashmere easier to navigate and more attractive to visitors, while still ensuring the chamber has stable funding for its core promotional work.

Several members noted that the purpose of the lodging tax is not simply to fund events, but to create a stronger overall tourism ecosystem — one that encourages visitors to stay longer, return more often, and spend money at local businesses.

Croci said the new split creates a more flexible and intentional framework, allowing both the city and the chamber to invest in tourism in complementary ways.

Under the new approach, staff will return to council with an updated agreement formalizing the 50-50 split for future years, while 2025 funds will be distributed in accordance with the Monday, Jan. 12 decision.

Andrew Simpson: 509-433-7626 or andrew@ward.media