Discussion and possible action regarding the Destination Marketing Organization contract: 1. Presentation of the Destination Marketing Organization (Presentation made by DMO Vice President Jeremy Bartz) 2. Consider approving a contract with the San Angelo Destination Marketing Organization allocating Hotel Occupancy Tax receipts to be used for eligible activities and authorizing the City Manager t

Staff Report & Agenda Item Details

City staff is requesting that the City Council consider allowing the City Manager to negotiate the terms of the Chamber of Commerce Destination Marketing Organization (DMO) contract for the use of Hotel Occupancy Tax (HOT) dollars. The current agreement with the DMO is set to expire on September 30, 2026. The current agreement includes a claw-back clause, which requires any unused funds to be returned to the City's HOT fund at the end of the contract term. The City of San Angelo levies the HOT for eligible expenditures, which include, but are not limited to, the operation of convention facilities, the promotion of tourism, and the improvement of the arts and historical venues. During FY 2027 budget discussions and adoption, the City Council allocated HOT funds for the fiscal year 2027 to include a contract with the DMO for $1,049,498. These funds will be used to assist with funding the operations of the DMO and in performing part of its mission.

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 7.2/10). 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).