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Hutto council reviews FY2026 budget calendar, debates OAF and HOT rules
Summary
At its Dec. 4 work session, Hutto council reviewed the FY2026 budget calendar and discussed outside agency funding and the hotel occupancy tax program; council rejected advance HOT payments and unanimously limited HOT awards to a single category per recipient.
The Hutto City Council met in a work session on Dec. 4, 2025 to review the FY2026 budget calendar, the outside agency funding (OAF) process and hotel occupancy tax (HOT) grant rules. Staff outlined the timeline for OAF — applications posted April 2, a virtual Q&A on May 14, applications due June 18 and committee recommendations to council on July 16 — and emphasized that both OAF and HOT awards are reimbursable and issued after budget adoption.
Staff told the council that HOT awards are calculated from prior-year actual collections (through Sept. 30 for this cycle) and that recipients must submit receipts and after-action reports before funds are paid. "It's all reimbursable...there's no upfront cost to the city," a staff member said during the presentation. Councilors pressed staff on whether applicants could be given an earlier opportunity to correct incomplete submissions and on how to reduce uncertainty for recurring recipients whose preliminary award recommendation may shift when the final budget is adopted.
The session produced two formal actions: a proposal to allow HOT grants to be paid prior to reimbursement was defeated, and a separate motion to restrict HOT awards so that an organization may receive funds from only one approved HOT category passed unanimously. The council adjourned at about 6:41 p.m.
