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Council tables review of Hispanic Heritage Alliance’s use of hotel-occupancy funds after members raise oversight questions
Summary
The Hispanic Heritage Alliance (a newly formed 501(c)(3)) updated council on planned community events and scholarships. Council then voted to table further discussion and asked legal counsel to review ethics and oversight concerns after members raised questions about funding, reporting, and council members’ roles.
The newly formed Hispanic Heritage Alliance, which the group said obtained 501(c)(3) status in April 2025, presented plans for a Fiesta at the Plaza in September and a scholarship dinner in November and said early events last year generated vendor interest and scholarship funds.
Manuel Hinojosa, identified in the meeting as the alliance’s president, described the September festival and said the group had worked with the school district and other local partners. "Our first event this year will be on September 2025," Hinojosa said, and outlined performances, vendors and logistics.
Council discussion then shifted to whether the alliance should be an independent nonprofit or a city committee, how hotel-occupancy-tax (HOT) funds were used, and whether city oversight of the nonprofit’s expenditures was adequate. Council members and the city attorney discussed record-keeping: the alliance’s presenters said invoices and reports had been provided to the city’s finance office and that prior events followed city purchasing rules.
Council concerns included: (1) the timeline — council earlier budgeted $45,000 in HOT funds to sponsor last year’s events; (2) whether two sitting council members who also serve on the alliance would create an appearance-of-conflict; and (3) whether the alliance’s accounting and hotel-room documentation adequately supported HOT-fund eligibility. One council member requested copies of invoices and a full accounting; the alliance leaders said they had provided invoices and that some organizers had personally advanced expenses.
After extended discussion, a councilmember moved to table the item and asked legal counsel to research ethics and reporting obligations and return to the next meeting with a written opinion. The motion passed.
Why it matters: The council funds events through hotel-occupancy-tax revenues subject to limits designed to promote tourism, culture, and hotel stays. Council members said they want assurance the funding matches council policy and that any appearance-of-impropriety is addressed before future payments or commitments.
What’s next: The city attorney will research the legal and ethics issues, including whether the presence of council members on the alliance requires recusal or extra disclosure and what reporting the finance office should require for HOT-funded events. Council will revisit the item at the next regular meeting.
