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Council hears proposal to revise Chamber agreement for hotel‑motel tax; tourism director hired

5834210 · August 20, 2025

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Summary

Staff reported the city collects hotel‑motel tax from 12 hotels at a local 7% rate (total combined rate 13% including state). A revised agreement with the Chamber of Commerce would increase city oversight of tourism funds, put a city representative on the tourism advisory board, and change payment timing; the Chamber has hired a tourism director.

City staff briefed the council on the hotel‑motel occupancy tax fund and a pending revised agreement with the Mineral Wells Chamber of Commerce that would change oversight and payment timing for tourism funds.

Staff said the city collects hotel‑motel tax from 12 hotels at a local rate of 7% and the state rate of 6% for a combined 13%. Projected revenues for the hotel‑motel fund were presented as relatively flat; staff listed contracted expenditures of $302,450 for tourism promotion (a contract with the Chamber of Commerce) and a $102,594 transfer to the general fund to pay the Main Street manager salary and benefits.

Staff reported the Chamber board has agreed in principle to a revised agreement that would give the city more accountability over tourism funds and require the city manager (and another city designee) to participate on the tourism advisory board and have a role in personnel matters for the tourism director position. The revised arrangement would require the city to advance funds to the Chamber at the start of the year based on previous audited revenues and then require the Chamber to remit any leftover funds back to the city after year‑end true‑up (submitted Oct. 1).

Staff also said the Chamber hired and has extended an offer that was accepted for a tourism director position who will start this month; staff told council the Chamber revised its budget downward to come within its revenue projections and expected to bring a formal tourism budget and revised agreement to council for approval in a future meeting.