The city council finds:
(1) 
Chapter 380 of the Texas local Government Code authorizes the city to establish local economic development programs.
(2) 
Chapter 351 of the Texas Tax Code authorizes the city to levy and to use such revenue for the promotion of tourism and hotel industries.
(3) 
Providing small businesses and organizations in the city with funds to be spent in accordance with hotel occupancy tax regulations to promote tourism will assist those businesses with job retention, business retention and business development.
(Ordinance 2025-04-21-01 adopted 4/21/2025)
An economic development program for projects related to business development in certain small municipalities is created under section 505.158 of the Texas Local Government Code. The program will be entitled the "Hotel Occupancy Tax Reimbursement Grant Program" (the "program"). The program has a two-step process to determine eligible and qualifying small businesses, mentioned in section 2.07.093. Funding is determined based on an application's ability to provide evidence of a return on investment with regards to promoting tourism and events for the city hotel occupancy tax funds.
(Ordinance 2025-04-21-01 adopted 4/21/2025)
(a) 
This program will provide competitive marketing and sales assistance to hotels which host group meetings and events that bring visitors to the city for overnight stays in city hotels. The application for the hotel occupancy tax reimbursement program is included as exhibit 2 to Ordinance 2025-04-21-01.
(b) 
The application provides the qualifications and eligibility requirements and is included in exhibit 2 to Ordinance 2025-04-21-01. To qualify for program funding, the applying organization's event or activity must directly enhance and promote tourism and the hotel and convention industry and must fit into one of the following nine allowable uses of the hotel occupancy tax as required by sections 351.101(a) and (b), and 351.110, Texas Tax Code:
(1) 
Funding the establishment, improvement, or maintenance of a convention center or visitor information center;
(2) 
Paying the administrative costs for facilitating convention registration;
(3) 
Paying for advertising, solicitations, and promotions that attract tourists and convention delegates to the county or its vicinity;
(4) 
Expenditures that promote the arts;
(5) 
Funding historical restoration or preservation programs;
(6) 
Certain tourist shuttles; and
(7) 
Signage directing tourists to attractions frequently visited by hotel guests.
(c) 
It is not enough that a facility or event promotes the arts; state law requires that the expenditure also must be likely to directly promote tourism and the hotel and convention industry.
(Ordinance 2025-04-21-01 adopted 4/21/2025)
(a) 
City staff shall review all submitted applications for the hotel occupancy tax group meeting incentive reimbursement program for completeness and eligibility and to ensure that expenditures will directly promote city's tourism and its lodging industry. Upon staff review and recommendation, applications of up to $50,000.00 will be reviewed and approved or declined by the city manager.
(b) 
Allocations are awarded on a first-come, first-served basis starting at the beginning of the city's fiscal year, which runs from October 1 to September 30.
(Ordinance 2025-04-21-01 adopted 4/21/2025)
(a) 
The city manager is directed to implement guidelines for the hotel occupancy tax reimbursement program and is authorized to make hotel occupancy tax group incentive reimbursement program grants that comply with the program requirements up to $50,000.00. Applications of over $50,000.00 will be subject to council approval.
(Ordinance 2025-04-21-01 adopted 4/21/2025)