H.O.T. funds hot topic at City Council Meeting

By Anthony Collins, LPR Editor                            

Above, attendees took to the street for the recent Courthouse Nights event. H.O.T. Funds were recently granted to The Courthouse Nights event and others to continue to bring events and draw visitors to the area. Photos by Jay Baltierra.

     When you’re looking for a place to stay in Texas, you’ve got plenty of options — tons of accommodations at various price points. No matter how much you decide to spend, keep in mind that you’re also helping the state and local governments by paying Hotel Occupancy Taxes (HOT) that range from 6 to 17.5 percent, depending on your location. 

    The state’s hotel occupancy tax, commonly referred to as the HOT tax, has been in place since 1959 when the Texas Legislature introduced a 3 percent tax on hotel stays. 

     In Texas, HOT revenue is designated to be used only to promote tourism and support the hotel and convention industry. This means that the funds should be allocated to projects or events that encourage visitors to stay overnight in the area, which in turn boosts hot revenues. The Texas Municipal League refers to this as the first part of a two-step test for hotel tax spending.

     Once the initial requirement of promoting tourism and hotel activity is satisfied, the spending must also fall into one of the categories allowed by law. According to the Comptroller’s Data Analysis & Transparency Division, these categories include:

•Building, maintaining, and operating a convention or visitor center

•Providing facilities and staff for registering convention attendees

•Running advertising and promotional campaigns to draw in tourists

•Supporting and promoting the arts

•Undertaking historical restoration and preservation projects

•Advertising to attract tourists to historic sites and museums

•Installing signage that guides the public to popular tourist attractions

•Offering certain transportation services for tourists and hotel guests

•For specific cities, hosting sporting events that mainly attract out-of-town participants

•Maintaining qualifying sports facilities that regularly host regional or national tournaments

    On April 15, the Lockhart City Council convened to discuss the distribution of local funds generated by the HOT. Lockhart enforces a 7% tax on hotels, bed and breakfasts, and other lodging facilities. For the 2025 funding year, the city has earmarked $225,000 for this purpose. The distribution of funds has been awarded to the following applicants:

•Caldwell County Jail Museum & Visitors Center – $15,000

   This money will help restore and maintain the upkeep of the building.

•Gaslight-Baker Theater – $15,000

   The current building is need of exterior work as well as work needed to their building next door in order to provide classes and future events.

•Greater Caldwell County Hispanic Chamber of Commerce 

 $40,000

   The allocated amount will cover advertising, entertainment and set up for the Cinco de Mayo Festival and Diez y Seis Festival.

•Lockhart Chamber of Commerce – Chisholm Trail Roundup – $60,000 / Visitor’s Information Center – $50,000

   The CTR grant will be allocated for the production and promotion of the CTR, whereas the funds from the Visitor’s Center will focus on maintaining the existing center and enhancing the promotion of both Lockhart and the center through regional and digital channels. •Lockhart Initiative for Tourism – $10,000

   These funds will be used to pay for a website, support outside artists, local events and digital tourism.

•Courthouse Nights Corp. – $15,000

   This will enable the five-month event to remain a free community event while assisting in covering the expenses of hiring musicians.

•Spellerberg Projects – $5,000

    For Lockhart to establish a “Cultural District” there are a few steps that must happen first. The $5,000 will allow two interns to gather data for the initial application to the Texas Commission on the Arts which offers grants up to $250,000. The grant application could file as early as late 2026 or 2027.

•Troubadour Image and Sound – $15,000

   The 78644 Podcast will be using this money to pay a marketing firm to edit videos and launch their podcast twice a month to promote Lockhart. The money will also go to some of the out-of-town artists that come on the podcast and perform at events located in town. 

    Lockhart Chamber of Commerce CEO, Megan Carvajal stated,  “The HOT advisory board had a hard job in front of them, and I’m very grateful they were able to support both Chisholm Trail Roundup and the Visitor’s Center. We are honored to be a part of a group of grantees doing innovative and community-based work to highlight what’s so special about Lockhart, Texas.” 

     “Courthouse Nights is so grateful to be awarded a 2025 HOT grant. This year we will use these funds for the overall production of our 5 month concert series. We will use the funds for more marketing efforts (both online and otherwise), paying our staff and artists and the overall upkeep of the series (insurance, etc).” says Rachel Lingvai, Executive Director of Courthouse Nights.

     Following the HOT discussion the City Council made decisions on other items on the agenda as well. 

     An amendment to Historic Districts and Landmarks Regulations and Procedures Ordinance was introduced and the City Council has approved a change to Chapter 28, which covers “Historic Districts and Landmarks.” This update allows for a more flexible timeline that aligns with the specific needs of the work being done, replacing the previous one-year limit. Properties within the Historic District can now benefit from tax relief to promote the enhancement and preservation of their unique architectural characteristics.

    A Tax Abatement Agreement Extension was introduced, and the City Council has granted a request from Spellerberg Associates, LLC to extend the one-year period outlined in the existing tax abatement agreement. This extension accommodates a 17-month construction schedule for improvements to the interior, HVAC, roofing, and rear façade at 103 S. Main St., which have now been completed.

     There was also an amendment to the Seawillow Development Agreement on FM 1322. The City Council has approved an amendment to the Seawillow Development Agreement, which alters the planned locations for a future junior high school and elementary school. Additionally, the amendment includes minor adjustments to roadway alignments and the site for a future water tower.

    Professional Services Agreement for Proposed Development on Robin Ranch Rd. was brought before the council members. The City Council has approved a professional services agreement for engineering, legal, and financial assessments related to a proposed residential development on about 280 acres on Robin Ranch Rd., located roughly 4,800 feet west of S. Colorado/U.S. 183 and within the city’s extraterritorial jurisdiction (ETJ).

   The council also heard from the City Engineer updated the City Council on the feasibility study for establishing a railroad quiet zone. The Union Pacific Railroad (UPRR) has requested a $75,000 fee to evaluate the City’s conceptual plans. No decisions were made during this meeting.

The City Manager, Steven Lewis updated the City Council members with his report.

•Project 5C: LCRA Electric System Study

     Techline kicked off this project in the first week of April. Crews are busy replacing poles and power lines along N. Pecos, Ash, Comal, and Pine Streets, stretching from N. Pecos to Blanco Streets. The existing copper lines have been in place since the 1930s. This upgrade aims to reduce outages and minimize the affected areas, including around Pride High School.

•Gateway Monument Signs

     City staff have received four competitive bids for the fabrication and installation of new gateway monument signs. The bids range from $90,993 to $254,997 and are currently being evaluated. A recommended contractor will be presented to the City Council during the meeting on May 6.

•Lockhart Municipal Airport Runway Paving

     The Airport Runway Paving Project is set to start on Monday, May 5. The city, in collaboration with TxDOT, will repave the airport runway and taxiway. While access to the airport will remain open, the runway and taxiway will be off-limits. Updates will be provided through the FAA Notice to Airmen (NOTAM) system.

• The 18th Annual Kiwanis 5K Stampede

    The 18th Annual Kiwanis 5K Stampede will be held on Saturday, April 27, starting at 7:40 a.m. The race will begin at First Lockhart Baptist Church, located at 315 S. Prairie Lea St. All proceeds will support the Kiwanis Scholarship Program.

•15th Annual Cinco de Mayo 5K/10K

     The 15th Annual Cinco de Mayo Run, organized by the Greater Caldwell County Hispanic Chamber of Commerce, will take place on Saturday, May 3, starting at 7:30 a.m. at 202 E. Prairie Lea St. All proceeds will go towards scholarships for high school graduates.

     The next City Council meeting will be held on Tuesday May 6 at 6:00 pm. The meetings are held at the Clark Library Annex – Council Chambers 217 S Main St, 3rd Floor.