2021-061 Hotel Occupancy Tax Revenue Fund and City Sponsorship ProgramDate: August 20, 2020 Report No. 2021-061
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Hotel Occupancy Tax (HOT) Revenue Fund and City Sponsorship Program
EXECUTIVE SUMMARY:
The administration of the Hotel Occupancy Tax (HOT) revenue and City Sponsorship Program
will transition from Treasury to the Grants Management Office (GMO) in FY 2021-2022. The
HOT Fund program uses hotel receipts to actively promote Denton as a tourist destination. The
City provides funds through the Sponsorship Program to support non-profit and civic-minded
programs and organizations which further a charitable cause, economic or community growth or
serve a public interest. Similar to grants, local organizations can apply annually to the City for a
funding under both programs. Applicants must meet eligibility requirements and follow the
approved guidelines of the program to receive funding.
Historically, Treasury has administered the programmatic activities of the HOT Fund and
Sponsorship Program. With the formation of the GMO in 2020, grant activities are now being
centralized and standardized across all City departments. The Office was recently moved under
the Finance Department which has allowed multiple sections of Finance to work seamlessly in
management and compliance monitoring of grants. In a continued effort to centralize grant
related activities, GMO staff will work closely with Treasury to move these programs under the
purview of the GMO.
DISCUSSION:
The City of Denton’s Hotel Occupancy Tax (HOT) Program uses hotel receipts to actively
promote Denton as a tourist destination. Local organizations apply to the City for a portion of the
hotel receipts to use in promoting their event or location to tourists outside of Denton. The City
Sponsorship Program funds are used to support non-profit and civic-minded programs and
organizations, which further a charitable cause, economic or community growth or serve a public
interest. The use of sponsorship funds will be in the best interest of the general welfare of the
City of Denton and ensure the City receives a return benefit.
Like grants, local organizations can apply annually to the City for funding under both programs.
Applicants must meet eligibility requirements and follow the approved guidelines of the program
to receive funding.
Historically, Treasury has administered the programmatic activities of the HOT Fund and
Sponsorship Program and serves as the liaison to the Community Partnership Committee, a sub-
committee of the City Council assigned to monitoring the allocation and use of both funds.
Treasury opens the application period, accepts applications, and reviews them for completeness.
The Community Partnership Committee reviews the applications and makes a recommendation
on funding awards. Treasury notifies applicants of awards, initiates award contracts, and
prepares the required documentation for City Council approval. The program is included in the
City’s budget process and funds are allocated to the program recipients during the following
Date: August 20, 2020 Report No. 2021-061
calendar year. During the term of the program, Treasury monitors the awardee’s activities
through review of spending documentation and quarterly reports.
The formation of the Grants Management Office (GMO) in 2020 included goals to centralize and
standardize grant activities across all City departments. Staff is comprised of a Grant
Administrator and a Grant Analyst. The GMO was recently moved under the Finance
Department and staff offices with the Finance Team. This has allowed multiple sections of
Finance to streamline the management and compliance monitoring of grants. In a continued
effort to centralize grant related activities, GMO staff will work closely with Treasury to
transition the HOT Fund and Sponsorship Program to the GMO in FY 2021-2022. The GMO
staff is shadowing Treasury through the current application process. Under the new structure,
program administration and record retention of awards will remain under the Finance
Department for program continuity. During this transition period, the GMO will solicit feedback
from Treasury, the Community Partnership Committee, and eligible applicants on the programs
and evaluate opportunities for enhancements.
STAFF CONTACT:
Laura Behrens
Grant Administrator
Laura.Behrens@cityofdenton.com