NEWS – City council approves use of HOT funds for Fiesta de Amistad celebration

By Karen Gleason
The 830 Times

A divided city council voted to allot $7,000 to the International Good Neighbor Council (IGNC) Del Rio Chapter for its Fiesta de Amistad celebration in October after wrestling with the issue for nearly an hour and taking four votes.

The council considered the request during its regular meeting on Tuesday, Sept. 22.

The IGNC Del Rio Chapter, as it has in years past, requested up to $10,000 of the city’s hotel occupancy tax (HOT) funds to help the chapter pay for aspects of its annual Fiesta de Amistad event. Fiesta de Amistad is held over the course of several days every October to celebrate the “amistad” – friendship – between Del Rio and its sister city across the Rio Grande, Ciudad Acuna, Coah., Mexico.

Information provided to the council in its packet showed the IGNC planned to spend $8,500 of the HOT funds it requested for the publication of an event magazine, $700 for Fiesta medals and $800 for in advertising in various media.

The council considered two resolutions, one to authorize the use of up to $10,000 in HOT funds for the IGNC and the second to authorize the use of up to $10,000 in HOT funds for the Friends of La Adelita-Amigos de La Adelita 2026 Fiesta de Amistad Charro Extremo event.

After City Secretary Mari Acosta read the heading of the two agenda items, Mayor Al Arreola asked if there was a motion. Councilman Leno Hernandez said he would make a motion to discuss the two requests, and Councilwoman Elsa Reyes gave the second.

Before any discussion of the proposed resolutions could begin, Councilwoman Carmen Gutierrez said she has been a member of the IGNC for eight years. After City Attorney Ana Markowski Smith said it was up to Gutierrez to decide whether to abstain from voting on the IGNC’s request, Gutierrez announced she planned to abstain from voting.

The issue of whether Gutierrez could vote on the IGNC’s request for funds began a discussion between Gutierrez, Smith and Councilwoman Elsa Reyes. Arreola ended the discussion and invited Hernandez to ask questions first, since he had made the motion.

Hernandez, who said he also had been a member of the IGNC in the past, spoke at length about a meeting he had with Interim City Manager Manuel Chavez and IGNC Del Rio Chapter president Andrew Scarbo.

Hernandez said he believed the council should approve some funds, but added $10,000 “was maybe a little ambitious.”

Hernandez said it was difficult for him to consider the Fiesta event and the charro extremo event in the same discussion. He said he believed since “at least half” of the Fiesta magazine is dedicated to the Miss Del Rio Pageant, that half does not qualify for HOT money, which should be used to bring out-of-town visitors to the city to stay overnight in local hotels, often referred to as “putting heads in beds.”

Of another expense requested by the IGNC, Hernandez said, “For example, (the IGNC has requested) $700 for Fiesta medals. Fiesta medals do not bring people into Del Rio, Texas.”

Arreola asked Chavez how the city determines how to expend HOT funds, and Chavez said, “The process does require, for every $1,000 worth of HOT funds you have to bring in 10 heads in beds, and so that would mean for a max of $10,000, you would have to show 100 heads in beds.”

The mayor also asked how organizations obtained funding for events, and Chavez said, “It’s a reimbursement program. There is an opportunity for someone to ask for up-front costs. That’s if they’re having to pay anything up front, but that is a process. But it is a reimbursement program, so at the end of the event, they have to submit their final receipts or proof of payment.”

Hernandez again said he believed only about 25 percent of the Fiesta magazine qualified for funding, adding the IGNC application itself notes the organization expects to bring in 20 persons for overnight stays, meaning the organization would be eligible for about $2,000. Hernandez said repeatedly he believes in the work the IGNC is doing and that the city should be involved in it.

Reyes, too, spoke about how important the IGNC is to her and said she “appreciates all the efforts that they do to put on these events.” Reyes served as the director of the Miss Del Rio Pageant for 26 years, though she is not an IGNC member now.

Reyes said she had several questions, including whether the IGNC had been designated a 501(c)(3) organization. She said she wanted to see financial and bank statements from the organization. Reyes also had questions about when the IGNC’s application for funding was submitted, pointing out the council was considering the request a mere three weeks before the Fiesta event.

When Arreola asked Mayor Pro-tem Randy Quinones if he had any comments or concerns, Quinones said he was also “just a little confused” because both the Fiesta event and the charro event were on the same day, adding he believed the IGNC should be awarded some funding “but not $10,000.”

 He said he was ready to make a motion, but Arreola said he wanted to hear from Councilman LeRoy Briones.

Briones asked Arreola to give Scarbo and other IGNC officials a chance to answer council member’s questions.

Scarbo and former Del Rio Mayor Dora Alcala spent some time answering council questions. They said the application had been submitted in August. Scarbo told the council he had been under the impression for years that the Fiesta magazine qualified for funding and had never been told it does not.

Scarbo also addressed an earlier comment by Hernandez, who had said the IGNC’s application noted it would bring in 20 overnight visitors. Scarbo said the IGNC intended to bring in 200 persons to stay overnight. Hernandez responded the application read 20 overnight visitors.

As the discussion continued, Arreola said, “I think we can keep going around and asking questions and everything. Councilman J.P., you don’t want to make any comments? Councilwoman Gutierrez is going to abstain from the discussion, (Mayor Pro-tem) Quinones, you have any other concerns or comments?”

Quinones said he would like to make a motion.

Quinones said, “I’d like to make a motion to approve (the IGNC funding request), but to change the maximum amount to $6,000.” Reyes gave the second.

Quinones, Reyes and Hernandez voted in favor of the motion, with Arreola, Sanchez and Briones opposed, and Gutierrez abstaining. The motion failed on the 3-3-1 vote.

Briones then made a motion to approve the resolution for the original amount asked, funding up to $10,000, and Sanchez gave the second. Briones, Sanchez and Arreola voted in favor of the motion, with Quinones, Reyes and Hernandez opposed and Gutierrez abstaining. The motion failed on the 3-3-1 vote.

On a question from Hernandez, Chavez said he wanted to remind the council “that HOT funds aren’t supposed to subsidize an event, right? The main purpose of HOT funds is to be able to bring in heads in beds. . .”

Chavez made additional comments, ending with the observation that “the factor should be how many hotel stays did you generate from that particular event?”

More discussion ensued, then Briones made a motion to approve the IGNC funding request up to $8,500. Sanchez gave the second to Briones’ motion. 

When Arreola asked if there were any questions or concerns, Hernandez said, “I don’t want to go back and forth. This isn’t an auction, and this is the problem I am having here. . . This is $8,500 for a magazine that does not qualify for hotel tax. At least not 100 percent, number one.”

Hernandez listed several other objections, then said, “So are we going to get to $6,100? 6,200? I appreciate where the council’s coming from. I understand, and I don’t even disagree with you.”

Arreola said, “Why don’t we just do the $8,500, and we’ll just educate everybody for next year?”

Hernandez replied, “You know what, mayor? That is a political answer that if you all want to do it, I don’t mind being the only one to vote against it.”

Arreola then took a vote, and Briones, Sanchez and Arreola voted in favor of Briones’ motion, and Hernandez, Reyes and Quinones voted against, and Gutierrez abstained.

More discussion followed, then Arreola made a motion to approve funding up to $7,000.

Briones gave the second.

When the mayor called for the vote, his motion passed, with Arreola, Briones, Sanchez and Quinones voting in favor. Hernandez and Reyes voted against the motion, and Gutierrez abstained.

Hernandez then made a motion to fund the charro extremo event up to $5,000. Briones gave the second. All of the council voted in favor of the motion, with only Gutierrez abstaining, explaining she had not participated in the discussion.

 

The writer can be reached at delriomagnoliafan@gmail.com

 

Joshua Guevara

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