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Council briefed on HOT fund and proposed Nance Farm capital spending; staff to pursue delinquent hotel collections
Summary
The FY2026 HOT fund includes proposed capital spending for Nance Farm and an operational plan for $4.1 million; staff acknowledged several hotels are behind on remitting occupancy taxes and will pursue collection and possible policy changes.
City staff presented the FY2026 hotel occupancy tax (HOT) fund on July 24 and said the proposed budget includes larger planned spending on Nance Farm renovations and related capital improvements.
Sutton and budget staff said approximately $3 million in HOT revenue is projected for FY2026 and that $3.0 million in prior-year allocations for Nance Farm capital work was pushed into FY2026; the HOT operating total for FY2026 is roughly $4.1 million with the capital allocation included.
Staff also told council that a small number of hotels are delinquent on remitting their required occupancy taxes. The budget presentation said staff has ramped up collection efforts, including direct billing and outreach, and will consult with the city attorney or outside collection counsel if necessary. Council asked staff to return with a list of delinquent hotels, the amounts owed and recommended collection remedies (including late fees and attorney collection actions).
Sutton said the city does not currently impose a late fee in the HOT fund and agreed to bring a policy proposal that could add delinquency charges and authorize collection costs to be recovered in enforcement actions.
Council members also asked for clarity about which HOT expenditures are one‑time capital projects and which would be recurring grants and program costs.
