By Louis Zylka
The 830 Times
City officials on Tuesday hosted a town hall to explain the hotel occupancy tax (HOT) funding process for the 2025-26 fiscal year.
Assistant City Manager Manuel Chavez led the meeting, saying it offered citizens a chance to ask questions about applying for HOT funds that support events promoting tourism.
The discussion covered one-time and annual applications, along with post-event reporting. Chavez said the updated application is expected to go before the city council at a future meeting.
Among the proposed changes: rewording the definition of tourism to align with state law, changing the submission deadline from 72 hours to three billing dates, and requiring all applicants to provide a tax identification number and proof of certification with the state of Texas.
See more background on what are HOT here .
Chavez said annual reports are scheduled for approval during the Dec. 9 city council meeting, and the city must certify that all distributed HOT funds were used properly under state guidelines.
“These applications… help the city determine the exact expense that each HOT fund was used for, and… identify which expenses were utilized and make sure each expense meets the criteria,” Chavez said.
Citizens pushed for more community involvement in the process.
Reyna Diaz asked who shaped the recommended changes, and Chavez said the internal HOT fund review committee — Mayor Pro Tem Jim DeReus, Councilwoman Ernestina “Tina” Martinez, Chavez, Assistant Finance Director Roxy Soto and Michael Garcia, assistant to the city manager — makes revisions based on direction from the council and guidance from the Texas Hotel & Lodging Association and other cities.
Dora Alcala suggested adding community voices, such as the Del Rio Chamber of Commerce and organizations that rely on HOT funding.
Andrew Scarbo asked why the committee’s makeup changed and pushed for hotel representatives to participate, saying they could provide the best data.
Chavez said the committee’s role is to ensure applications are complete and compliant. Justin Bragiel, a representative with the Texas Hotel & Lodging Association, joined via Zoom and said the updates will help the city meet state requirements.
Bragiel also noted the revised tourism definition was expanded by lawmakers to qualify more events for hotel tax support.
Lupita de la Paz asked who decides how much funding an organization receives. Chavez said the amount is determined through a matrix system. She and Diaz questioned whether that system should be updated with industry expertise.
One-time applications are capped at $10,000, under the matrix model. Diaz asked whether the model could be amended. DeReus said changes would be difficult this late in the cycle, with allocations and upcoming events on a tight timeline.
Citizens argued that organizations working to bring “heads in beds” should help guide the process.
Diaz compared the situation to asking a bricklayer how to build a house — saying the city needs more subject-matter experts involved. Alcala added that fairness and transparency are key.
“If you ask me what I would like for International Good Neighbor Council… I would say at least $20,000,” Alcala said. “But how do we arrive at that $20,000?… So what we’re saying is let’s revisit (the application process).”
Diaz closed by thanking Chavez for his work and suggested the city ask past applicants whether the $10,000 maximum adequately supported their events.
