The city of Brownsville is expecting 36 percent more in Hotel Occupancy Tax revenue for fiscal year 2023 compared to previous years, though many of the nonprofit groups that typically apply for HOT revenue are asking for more for the next fiscal year.
HOT revenue is generated by lodging bookings and car rentals and according to the Texas Tax Code must be used to directly support the tourism and lodging industry in addition to other criteria.
In an Aug. 2 presentation before the Brownsville City Commission, Communications and Marketing Director Monica Tellam said the city anticipates a HOT fund balance of about $1 million by Sept. 30, and is projecting more than $1.8 million in HOT revenue for the next fiscal year.
“We’re very proud of that number,” she said, noting that the 36 percent jump is one of the highest in the state among municipalities.
There is, however, a $258,494 gap between the revenue the city is projecting for fiscal year 2023 and the total amount requested in the latest round of applications, more than $2.1 million, Tellam said. Whether that gap is filled with revenue from a separate fund is entirely up to the commission, she said.
Gladys Porter Zoo received $448,724 in HOT funds in fiscal year 2022 but is asking for $550,000 for fiscal year 2023, a 23 percent increase. Some organizations are asking for substantially more: Charro Days Inc. has requested $50,000, a 150 percent increase over the $50,000 it received last year. The Mitte Cultural District has asked for $60,000 for 2023, a 300 percent increase over the $15,000 it received in 2022.
The Brownsville Historical Association requested $200,000, a 125 percent increase over the $88,700 in HOT funds it received in 2022, while the Children’s Museum of Brownsville submitted an application for $80,000 for 2023, 49 percent increase compared to the $53,550 it received in 2022. The Brownsville Museum of Fine Art, which got $63,750 last year, is asking for $78,000 for 2023, a difference of 22 percent.
The Brownsville Society for the Performing Arts received $41,000 in HOT funds in 2022 and is asking for $45,000 for 2023, a 10 percent increase. The Gorgas Science Foundation (Sabal Palm Sanctuary) requested $37,000 for a 2023, a 15 percent increase over the $32,263 it received in 2022. Camille Players Inc. received $23,250 in fiscal year 2022 but made no request for 2023 HOT funds.
Nonprofit organizations requesting HOT funds for the first time are the Mr. Amigo Association ($75,000); Brownsville Beerfest ($25,000); Holiday Village ($10,000); Rav Run ($5,000) and Sombrero Festival ($165,000), Tellam said. All of the requesting organizations were deemed by an audit committee to fully meet the criteria for HOT funding, though information is still pending for the Brownsville Wellness Coalition, which received $20,000 in 2022 and is requesting the same amount for 2023.
Tellam said the city has spent the last year solidifying the process for ensuring that organizations that receive HOT funds meet eligibility requirements by reviewing their quarterly reports and working together to address any concerns.
In response to a question from City Commissioner At-Large “A” John Cowen Jr., who noted that Texas Hotel & Lodging Association recommends that groups receiving HOT funds have a way to track out-of-town visitors, Tellam said they’re free to track visitors however they like, though they were provided with tips.
“We did provide guidance through the Texas arts commission and THLA,” she said. “They have a joint recommendation for how to spend HOT funds and how to track it for arts organizations.”
