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Coppell projects $786,088 in hotel-occupancy-tax revenue; arts groups listed as primary recipients
Summary
City staff told the Coppell City Council the hotel occupancy tax (HOT) fund is budgeted for $786,088 in revenue in fiscal 2026 and proposed about $547,010 in expenditures, with most service grants targeted to local arts organizations.
Coppell staff told the City Council on June 23 that the city is budgeting $786,088 in hotel occupancy tax revenue for fiscal year 2026 and is proposing $547,009.57 in HOT expenditures.
The HOT presentation was given by a city finance staff member who summarized uses of the fund and said revenue projections assume five open hotels plus revenue from two permitted short‑term rentals. The presentation listed the Coppell Arts Center Foundation, Coppell Arts Council, Ballet Ensemble of Texas, Community Chorale, Community Orchestra, Community Theater and Coppell Historical Museum as eligible recipients for arts funding under the tax code criteria the staff cited.
The city budgeted a services line that would cover qualifying arts organizations; staff said arts organizations as a group are budgeted at $235,700. Staff also described an economic development rebate line tied to contracted hotel rebates and said two hotels are currently receiving rebate contracts. Salary and benefits for two full‑time Arts Center marketing positions were included in the proposed expenditures.
Council members asked how the rebate process works; staff said hotels remit occupancy tax directly to the city, then can request rebate payments and the city cuts checks from the HOT fund. Council members asked about trends: staff said HOT revenue generally has risen year to year (from about $621,000 in 2022 to $1,077,000 in 2024), but that rebate payments and contracted rebates have affected net revenues in recent years. Staff said the council‑directed Discover Coppell (chamber) request was not yet included and could be added later through a budget amendment.
Council did not take formal action during the workshop; staff said changes could be made during the final budget process or by amendment in the fiscal year.
Why it matters: HOT money is legally restricted for tourism‑related uses and is one of the few locally dedicated funding streams for arts and visitor promotion. The council’s direction on services and any later amendments will determine which local cultural groups receive support in FY26.
