Council weighs new hotel‑tax policy and two Bee Cave Arts Foundation funding requests

Council and staff spent extensive time on Feb. 26 discussing a draft hotel occupancy tax (HOT) fund policy and two HOT fund applications from the Bee Cave Arts Foundation. The council did not make final awards; instead staff was directed to revise policy language and return with a consolidated process for considering applications.

Staff presentation: Rebecca, assistant to the city manager, described the proposed HOT policy as an effort to reduce applicant confusion and improve administration. Key changes in the draft included fixed application deadlines (application due at least 60 days before an event or expenditure, and a post‑funding report due 60 days after spending), an updated application form and publicity fact sheet, clearer examples of statutorily authorized categories (including the municipal requirement that a portion of HOT receipts be used for advertising), and guidance on permissible uses such as the 15% maximum for promotion of the arts and for historic preservation.

Council debate and policy direction:…