City staff on Aug. 5 presented a post‑event operations and financial report for Taste Addison 2025, which staff said drew higher attendance and produced local hotel gains but ran a large operating deficit. The presentation, led by Abby Morales, director of special events and theater, showed $392,530 in event revenue for the weekend and more than $1 million in expenditures for production, talent, rentals, security and other costs, resulting in a negative net around the $700,000 range.Staff told the council the event’s 2025 programming emphasized food and broader daytime activities introduced in 2024, and said the festival delivered measurable tourism impacts: hotel occupancy for the weekend rose 16.2% over the prior 12‑month average and 18.6% over the same weekend in 2024. Staff estimated an economic impact of $1.1 million using a Destinations International formula that factors admissions, hotel room nights and on‑site spending.The report also summarized event metrics: about 50 participating restaurants were the goal for 2025; the Speakeasy and courtyard beverage areas served thousands of samples; the main stage and multiple on‑site stages hosted national, regional and local acts; and specialty offerings (a presold chow‑hall pass, culinary demos and family activities) were added to broaden appeal. Staff said participating Addison restaurants keep 100% of sales and pay an application fee; only non‑Addison concessionaires contribute a 20% revenue share to the town.Five council members asked detailed questions about revenue sources and expense drivers. Council discussion focused on whether the city should reallocate the existing entertainment budget toward fewer, higher‑profile headliners at night while programming more daytime activities to maintain restaurant participation. Councilmembers and staff agreed those programming and sponsorship choices should be aired in the FY2026 budget process, where staff will propose options for subsidy levels, sponsorship targets and possible ticket‑pricing changes.Staff also told council that enforcement decisions by the Texas Alcoholic Beverage Commission (TABC) affected beverage vendors in 2025: TABC interpreted rules near the event to require brick‑and‑mortar liquor permits in some cases, and at least two establishments elected not to serve spirits on festival grounds rather than risk their on‑site licenses. Council members discussed whether to seek an exclusive beverage sponsor (which would change how restaurants procure product and require a sole distributor arrangement) and whether a sole beverage provider would yield offsetting sponsorship dollars.The council and staff did not take a formal vote on policy changes at the Aug. 5 session. Staff said they will present a menu of budget options and financial scenarios for council consideration during the upcoming budget workshops and public hearings.