After debate over HOT funds and fund balance, Cleburne approves $100,000 for Chisholm Trail Outdoor Museum

The Cleburne City Council voted 4-1 to approve a Chapter 380 economic development agreement providing $100,000 to the Johnson County Heritage Foundation for operations of the Chisholm Trail Outdoor Museum.

Museum representatives asked the council for $130,000 (and earlier materials showed an original $150,000 request). In a presentation, a museum representative said staff had tracked 37,477 visitors through midyear and reported that the site had used 231 hotel room nights so far this year. "We have had documented, tracked visitors, 37,477 visitors to the museum," the representative said.

City staff briefed the council on hotel-occupancy-tax (HOT) fund constraints. Finance staff noted an estimated FY26 HOT revenue of roughly $550,000 and explained an existing contractual obligation requires about 79% of that funding be directed to the Convention and Visitors Bureau (CVB), leaving roughly $117,000 unobligated before other event expenses. Staff also said recent late tax collections had temporarily inflated year-to-date numbers and that funding the museum at the level requested would require dipping into fund balance.

Councilmembers debated whether HOT funding should be used for ongoing operational salaries. Councilmember Derek Weathers said he was concerned about using HOT funds for salaries and the effect of deficit spending on the fund balance. Another councilmember said the museum produced a strong return on investment and supported a higher amount. Mayor Scott Cain moved to authorize $100,000; the motion passed 4-1.

Council directed staff to draft the Chapter 380 agreement reflecting the approved amount and to report back on the agreement language. The museum said it will continue seeking sponsors and noted it lost a source of labor when a contract with the Johnson County Probation Department ended and the museum had to hire two maintenance staff as a result.