Dalhart council approves $490,000 in hotel-occupancy grants and $360,080 LED billboard purchase

The Dalhart City Council on Feb. 10 approved nine allocations recommended by the Hotel Occupancy Tax Committee that together total $490,000 and separately authorized a $360,080 purchase of three LED billboards from AAA Signs.

The council approved funding for local tourism and community events: $35,000 for the Thunder Over Dalhart air show; $115,000 for the Dalhart Chamber of Commerce; $100,000 each for the Lareda Theater and the XIT Museum; $12,000 for the Strike Out Cancer softball tournament; $10,000 for the Strike Out Cancer golf tournament; $18,000 for the Dalhart Cruisers car show; and $100,000 for the XIT Rodeo and Reunion. Council members then voted to accept an AAA Signs bid of $360,080 to install three LED billboards at sites approaching town.

Why it matters: Hotel-occupancy-tax (HOT) grants are restricted to tourism- and visitor-related uses in many Texas municipalities and are a primary mechanism Dalhart uses to support events and attractions that bring overnight visitors and spending to local hotels. The council’s decisions allocate this year’s recommended HOT funds across recurring events, local attractions and an electronic-sign program intended to boost visitor information and event promotion.

Most motions passed unanimously. A council member noted that several requests rose this year and that not every applicant received the full amount requested; the council’s approvals follow the committee’s recommended funding levels. On the billboard purchase, council members and staff discussed installation logistics, warranty limits, a maintenance contract and plans to sell advertising spots to offset upkeep.

Details of the approvals and related discussion - Thunder Over Dalhart Air Show — $35,000. A council member said the air show request comes up every few years and that the amount is “built into the budget.” The motion passed unanimously. - Dalhart Chamber of Commerce — $115,000. Council members said motel-hotel tax receipts had grown slightly and the chamber’s request was modestly higher than last year; motion passed unanimously. - Lareda Theater — $100,000. Council members discussed the theater’s planned improvements; motion passed unanimously. - XIT Museum — $100,000. Council approved the committee recommendation by unanimous vote. - Strike Out Cancer softball tournament — $12,000; golf tournament — $10,000. Councilmembers noted both events had run in prior years and contributed hotel stays; both motions passed unanimously. - Dalhart Cruisers car show — $18,000. Councilmembers said the event draws substantial entries and benefits downtown businesses; motion passed unanimously. - XIT Rodeo and Reunion — $100,000. Council described this as a major local event and approved the request unanimously. - LED billboards (three locations) — $360,080 to AAA Signs. Council discussed that AAA Signs’ bid of $360,080 (Amarillo-based) was lower than a competing bid from LMO Signs (San Antonio area), and that AAA Signs is geographically closer, which the committee said would reduce travel time for repairs. Council members discussed sign sizes (committee site surveys indicated large-format displays, described in the discussion as roughly 12 by 20 feet or 20 by 25 feet depending on location), that electrical service to each sign location was not included in the bid, and that the manufacturer’s warranty covers defective parts for seven years but does not cover weather or vandalism. The recommended plan includes buying a maintenance contract to provide near-daily responsiveness (the vendor described a goal of next-day service and no more than two days in some circumstances), and the city intends to obtain insurance and sell advertising spots on the boards to help pay for maintenance and upkeep. Council voted to accept the AAA Signs proposal.

Council procedure and context The items were considered under the consent and regular agenda; several council members moved and seconded the motions and each vote was taken with the standard “All in favor? Aye. Any opposed? No.” pattern recorded in the transcript. No public commenters spoke on these items during the meeting. The council’s approvals followed the Hotel Occupancy Tax Committee recommendations; where council members noted increases in requests from applicants, they also noted limited funding and that not every applicant requested full funding was granted.

What wasn’t decided or was left open The council did not record line-item sourcing for the LED power hookups (electrical work was discussed as not included in the bid), and the transcript shows plan elements such as insurance, exact meter installation costs, and the precise signage dimensions remain to be finalized. Specific contract terms beyond the warranty and the vendor’s service-response goal were discussed but not adopted on the record.

Ending Council members moved to adjourn after the items were approved. The meeting closed with unanimous consent to adjourn.