Agenda Information Sheet
DEPARTMENT: Community Affairs
CM/ACM: Todd Hileman
DATE: April 4, 2017
SUBJECT
Title
Receive a report, hold a discussion, and provide direction regarding House Bill 2445 concerning the allocation of hotel occupancy tax funds to the purpose of enhancing and upgrading existing City-owned sports facilities.
Body
BACKGROUND
The City Council directed staff to pursue legislation that would give the Council authority to allocate funding to enhance and upgrade existing, city-owned sports facilities. The Mayor and staff approached Representative Lynn Stucky to request he file such a bill on the City's behalf. He subsequently filed HB 2445 on February 27. Though the Council approved a statement in support of this initiative in the 2017 Legislative Program, approved on December 13, 2016, Representative Stucky's office has requested a stand-alone resolution in support of HB 2445, (Exhibit 1). The resolution is listed as an item for individual consideration for the City Council's approval on April 4. Below is additional background on the purpose, use, and support of the bill.
Purpose of House Bill 2445
The genesis of this item came about when Parks and Recreation requested the City of Denton seek introduction and passage of legislation that would amend Tax Code Sec. 351.101 (a)7 by adding the City of Denton to the list of municipalities authorized to utilize Hotel Occupancy Tax (HOT) funds for enhancement and upgrading of city-owned and existing sports facilities or fields, which provide significant economic benefit to the community. Specifically, the purpose of HOT funds is to "promote tourism and the convention and hotel industry." The athletic tournaments hosted by the City of Denton Parks and Recreation Department generate revenue for the City's General Fund, the Recreation Fund, and co-sponsored associations. More importantly, however, the tournaments to-date in 2016 alone provided an estimated economic impact to local businesses, suc...
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