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Council advances HOT‑fund policy work; staff to build application and reporting templates

Lago Vista City Council · February 19, 2026
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Summary

Councilors reviewed a first draft hotel‑occupancy‑tax (HOT) policy and asked staff to finalize application and reporting templates; staff said state law constrains eligible uses and recommended clear quarterly reporting to demonstrate 'heads in beds' tourism impact.

Lago Vista — Councilors and staff continued work on a hotel‑occupancy‑tax (HOT) policy on Feb. 20, focusing on building an application form and reporting framework before allocating funds.

Staff said they have prepared an initial draft policy modeled on other Texas cities and will tailor it to state statute, which narrows permissible uses to activities that promote tourism and generate overnight stays. Counsel circulated guidance from the Texas Municipal League noting common issues involving chamber‑of‑commerce grants and arts organization requests.

Several councilors and speakers urged strong reporting and auditability. Dave Snyder, representing the Archer archery range, described his organization’s event strategy and asked whether HOT funds were available to apply for marketing support; staff said a draft policy and application are in preparation and that the council could consider a budget amendment to allocate funds once a policy and qualifying proposals are in hand.

What’s next: Staff will finalize application and reporting templates and bring a policy back for council review; council discussed potential quarterly reporting and audit requirements to ensure recipients document how funds produced tourism-related economic activity.