ITEM TITLE:
#26-44 - Amending the 2026 City Budget by Appropriating an Additional $40,000 to the Economic Development Department for Tourism Expenditures to be Transferred from the Council Contingency Reserve
SUBMITTED BY: Martha Barberio, Economic Development Director
FISCAL NOTES:
Expenditure Required: $40,000
Unencumbered Balance: $740,113
Funding Source: Council Contingency Reserve, 350-0202-55000
RECOMMENDATION:
Approve Resolution 26-44
SUMMARY STATEMENT:
In 2026, the City of Valdez assumed responsibility for maintaining essential visitor services and tourism-related activities during the transition from the former Valdez Convention and Visitors Bureau to a newly formed “Destination Valdez” destination marketing organization. Earlier this year, City Council approved funding to maintain baseline visitor services, including operation of the Valdez Visitor Center, and to provide administrative and financial support during the transition.
While Destination Valdez continues its organizational work, additional funding is needed to maintain continuity of visitor services and tourism promotion through the remainder of 2026.
An additional $40,000 will cover ongoing tourism and Visitor Center-related expenses through the end of the calendar year and provide funding for select 2027 destination marketing and advertising opportunities. Several tourism publications and advertising opportunities that reach potential 2027 visitors have reservation and advertising deadlines in October 2026.
Funding now will allow staff to secure appropriate advertising placements and maintain Valdez's presence in publications used by travelers planning their 2027 Alaska trips.
Tourism expenditures to date total approximately $300k, including this current request. The bed tax appropriation for tourism services was $505k.
The lease on the visitor center lapses on October 31, 2026, and will not be renewed in accordance with the recommendation from Discover Valdez.