Stafford City Council Debates Oversight of Hotel Occupancy Tax Fund Usage

The Stafford City Council meeting on August 20, 2025, was marked by a heated discussion surrounding the use of hotel occupancy tax (HOT) funds, with council members debating the need for additional oversight and transparency in the allocation process.

The primary focus was on whether to establish a committee to review requests for HOT funds, which are intended to promote tourism and cultural events. Some council members argued that the current system already provides sufficient checks and balances, while others expressed concern that adding another layer of bureaucracy could discourage community participation. Council member Guerra emphasized the importance of allowing organizations to present their plans for funding without unnecessary hurdles, stating, “We want anyone that feels like they really qualify to use these precious city public funds... to tell us their plan.”

The discussion also highlighted the need for clarity on what constitutes eligible expenditures for HOT funds. Legal counsel was consulted to ensure compliance with state regulations, with council members noting that only specific categories qualify for funding. The conversation included references to past successful events funded by HOT, such as the Houston Livestock Show and Rodeo, which set a precedent for supporting local nonprofits.

Public comments added to the dialogue, with representatives from the Hispanic Heritage Alliance defending their request for funding based on previous successful events that benefited the community. They argued that their initiatives, which include scholarships for local students, align with the intended use of HOT funds.

In a related proposal, the council discussed hiring a consultant to conduct a revenue audit of hotel occupancy tax collections, aiming to identify any unreported revenue. This initiative was met with support, as it could enhance the city’s financial resources without incurring additional costs upfront.

As the meeting concluded, the council voted to invite a representative from the Texas Hotel and Lodging Association to provide further guidance on the appropriate use of HOT funds, signaling a commitment to transparency and responsible management of public resources. The outcome of these discussions will likely shape the future of funding for cultural events in Stafford, as the council seeks to balance oversight with community engagement.