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Wimberley amends HDL STR administration contract, shifting to flat‑fee pricing
Summary
Council approved a contract amendment with HDL to change STR/hotel‑occupancy tax administration from a percentage/contingency model to a flat‑fee structure to stabilize costs; staff said HDL acknowledged prior billing errors and agreed to the change.
Wimberley — The City Council unanimously approved an amendment to the city's contract with HDL, the third‑party administrator that manages short‑term rental (STR) onboarding and hotel‑occupancy tax collections, resetting the pricing structure from a contingency/percentage model to a flat fee to better align with the city's budget.
Director of Tourism Michelle Woods told the council the change followed staff discussions about rising and unpredictable fees. "This amendment will reset pricing to align with our budget expectations, and while maintaining all of our existing services and support," she said, explaining that HDL will move accounts back to a flat fee and continue to host the remittance portal, follow up on delinquencies and perform compliance work.
Staff described the prior billing arrangement as a contingency model that assessed a percentage on new accounts; for Wimberley that would have resulted in much higher costs. According to staff the proposed flat arrangement would include a roughly $15,000 annual fee plus a per‑filing charge (discussed as about $17 per filing), and staff said HDL's portion under the amendment was expected to be about $60,000 per year while gross STR/HOT receipts for the city were roughly in the $700,000 range.
Staff also said HDL acknowledged earlier billing mistakes and conceded it could not collect amounts from previous years. The amendment retains an ability for the city to terminate with notice (staff cited a 45‑day exit right).
Councilmembers asked for clarity about HDL's work and incentives; staff emphasized that HDL will continue to manage the portal, collection letters and auditing that the city does not have staff to perform. Council approved the amendment and staff said they will continue to monitor service and may solicit competitive bids when the contract term ends.
What happens next: staff will implement the revised billing model, monitor costs and service levels, and return to council if further contract actions are needed.
