§ 82-93. Disposition of revenue; budget; city council approval.

(a)

Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry, and that use is limited to the following:

(1)

The acquisition of sites for and the construction, improvement, enlarging, equipping, repairing, operation and maintenance of convention center facilities or visitor information center, or both.

(2)

The furnishing of facilities, personnel and materials for the registration of convention delegates or registrants.

(3)

Advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity.

(4)

The encouragement, promotion, improvement and application of the arts, including instrumental and vocal music, dance, drama, folk art, creative writing, architect, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms.

(5)

Historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums:

a.

At or in the immediate vicinity of convention center facilities or visitor information centers; or

b.

Located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates.

(b)

Revenue derived from the tax authorized by this article shall be expended in a manner directly enhancing and promoting tourism and the convention and hotel industry as permitted by subsection (a) of this section. That revenue may not be used for the general revenue purposes or general governmental operations of the city.

(c)

The city council may, by contract, delegate to the Mineral Wells Area Chamber of Commerce, the management or supervision of programs and activities funded with revenue from hotel occupancy tax. The city council shall approve in writing in advance the annual budget of the entity to which it delegates these functions, and may require the entity to make periodic reports to the city council at least quarterly listing the expenditures made by the entity of revenue from the tax provided by the city. The city council shall hold a public hearing on any proposed budget in accordance with the applicable state law.

(d)

The entity must maintain revenue provided by the city in a separate account established for that purpose and may not commingle that revenue with any other money or maintain it in any other account.

(e)

The city may not delegate to any person or entity the management or supervision of its convention and visitors programs and activities funded with revenue from the hotel occupancy tax other than by contract as provided in this article.

(f)

The approval by the city council of the annual budget of the entity to which these functions are delegated creates a fiduciary duty in the person or entity with respect to the revenue provided by the city to the person or entity under the contract.

(g)

A person or entity with whom the city contracts to conduct authorized activities shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person or entity and, on request of the city council or other authorized person, shall make the records available for inspection and review.

(Code 1970, § 22½-18; Ord. No. 2004-17, 9-21-2004)

State law reference

Similar provisions, V.T.C.A., Tax Code § 351.101.