Consider authorizing the allocation of Fiscal Year 2027 Hotel Occupancy Tax funds for arts and historic preservation programs, and further authorizing the City Manager to negotiate and execute all necessary agreements for such allocations (Presentation made by Finance Director Jonathan Flores)

Staff Report & Agenda Item Details

In Fiscal Year 2026, the city instituted a formal application process for local nonprofit organizations to receive support for activities that promote the arts and historical preservation activities. This program is sourced from local hotel/motel occupancy tax (HOT) collections, and usage of the funds is limited by state law. In order for an organization to be eligible for funding, their program must meet the following criteria: Programs must promote tourism and the convention and hotel industry. (Heads in Beds) Programs must encourage the promotion, improvement, and application of the arts or historical restoration and preservation projects/activities The City Arts Program currently provides support for two categories. Core Support is for established arts nonprofits with a full-time paid director, an approved annual budget, tiered internal fiscal controls, and a board policy for tracking out-of-town visitors. Project Support is for specific projects (exhibits, concerts, festivals, arts-in-education) occurring between October 1, 2026 and September 30, 2027, and is capped at $2,500 per award. Funded projects must take place in San Angelo and be open to the public. Certain uses are excluded from funding, including social events, fundraising benefits, academic-credit or university curriculum projects, staff/board travel, self-supporting commercial projects, membership-restricted activities, deficit or retroactive funding, and direct funding to individuals. Applications were due August 21, 2026, at 5:00 p.m. The Finance Department has reviewed submissions for completeness and accuracy. Applications were provided to City Council as a part of their weekly packets. These applications included details of how applicant programs promote tourism and hotel activity as well as promoting art and historic preservation activities. In addition to the applications, a summary of funding requests and their prior year allocation was included to aid council in funding allocations for Fis

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 4.2/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).