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Home My WebLink AboutP.R. NO. 25182 CONVENTION AND VISITORS BUREAU FOR FY 2026-2027 � rr • City of % ort rthu�r www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: September 21, 2026 To: The Honorable Mayor and City Council Through: Ron Burton, City Manager From: Lynda Boswell, Finance Director RE: P.R. 25182—Convention and Visitors Bureau Contract for FY 2026-2027 Introduction: Consider a resolution authorizing an amendment to the existing agreement between the City of Port Arthur and the Port Arthur Convention and Tourist Association,which manages and operates the City's Convention/Visitors Bureau, to establish the Association's Fiscal Year 2026-2027 funding allocation in the amount of$1,109,000.00. Background: The Port Arthur Convention and Tourist Association manages and operates the City's Convention/Visitors Bureau and is responsible for activities designed to promote tourism and attract conventions, visitors, and related economic activity to the City of Port Arthur. The City Council originally authorized an agreement with the Port Arthur Convention and Tourist Association by Resolution No. 76-106 in 1976. The agreement was subsequently amended by Resolution No. 04-389 in 2005. Under the existing agreement, the City provides the Association with an annual allocation of Hotel Occupancy Tax revenues, with the amount of the allocation determined annually by the City Council. The agreement also establishes a procedure for monthly advances and quarterly reporting of the Convention/Visitors Bureau's activities. The Association has historically received Hotel Occupancy Tax funding from the City. Annual allocations have increased over time as follows: • Fiscal Year 2018-2019: $660,000.00 • Fiscal Year 2019-2020: $700,000.00 • Fiscal Year 2020-2021: $730,000.00 • Fiscal Year 2021-2022: $777,000.00 • Fiscal Year 2022-2023: $790,000.00 • Fiscal Year 2023-2024: $830,000.00 • Fiscal Year 2024-2025: $880,000.00 • Fiscal Year 2025-2026: $940,000.00 • Fiscal Year 2026-2027: $1,109,000.00 The proposed amendment updates Article V of the existing agreement to set the Association's Fiscal Year 2026-2027 allocation at $1,109,000.00 and to continue the existing payment and reporting procedures. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 City of ort tciN www.PortArthurTx.gov Texas Tax Code: Section 351.101 of the Texas Tax Code governs the permissible uses of municipal Hotel Occupancy Tax revenue and requires that such revenue be used for purposes that promote tourism and the convention and hotel industry. The Convention/Visitors Bureau performs tourism and convention-related functions on behalf of the City, including activities intended to attract visitors and conventions to Port Arthur. The proposed annual allocation is intended to support those activities and services. The proposed amendment does not create a new contractual relationship. Rather,it modifies the existing agreement to establish the amount of the City's annual allocation for Fiscal Year 2026- 2027. Under the amended Article V,the City will advance one-twelfth (1/12) of the annual allocation to the Association on a monthly basis. Based on the approved annual allocation of $1,109,000.00, the monthly advance will be approximately $92,416.67, subject to the terms of the agreement and the availability and lawful expenditure of Hotel Occupancy Tax revenues. Budget Impact: Funds in the amount of$1,109,000.00 are available in the Hotel Occupancy Tax Fund, Account No. 140-15-600-5470-00-20-000, Project No. H07912.OTH.00S, as approved in the Fiscal Year 2026-2027 budget. Recommendation: The attached Proposed Resolution No. 25182 amends the contract between the City of Port Arthur and the Port Arthur Convention and Visitors Bureau in the amount of $1,109,000 for the fiscal year 2026-2027. We recommend that the City Council approve it as presented. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 mimeminiptr- P.R. NO 25182 TNR-LYN 9/21/2026 RESOLUTION NO. A RESOLUTION APPROVING AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR, TEXAS, AND THE PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION,WHICH MANAGES AND OPERATES THE CITY'S CONVENTION/VISITORS BUREAU, TO ESTABLISH THE ASSOCIATION'S FISCAL YEAR 2026-2027 HOTEL OCCUPANCY TAX FUNDING ALLOCATION IN THE AMOUNT OF $1,109,000.00; AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENT; AND PROVIDING FOR FUNDING FROM THE HOTEL OCCUPANCY TAX FUND, ACCOUNT NO. 140-15-600-5470-00-20-000, PROJECT NO. H07912.OTH.00S. WHEREAS, the City of Port Arthur, Texas, recognizes the importance of promoting tourism and attracting conventions, visitors, and related economic activity to the City; and WHEREAS, the Port Arthur Convention and Tourist Association manages and operates the City's Convention/Visitors Bureau and conducts activities intended to promote tourism and directly promote the convention and hotel industry; and WHEREAS, Section 351.101 of the Texas Tax Code authorizes the use of municipal hotel occupancy tax revenue for specified purposes that promote tourism and the convention and hotel industry; and WHEREAS, the City Council originally authorized an agreement between the City and the Association pursuant to Resolution No. 76-106, adopted in 1976, for the management and operation of a convention/visitors' bureau; and WHEREAS, the agreement was subsequently amended pursuant to Resolution No. 04- 389, adopted in 2005; and WHEREAS, pursuant to the existing agreement, the amount of the City's annual advance to the Association is determined by the City Council on an annual basis; and WHEREAS,the Association has historically received Hotel Occupancy Tax funding from the City, including annual allocations of$660,000.00 for Fiscal Year 2018-2019; $700,000.00 for Fiscal Year 2019-2020; $730,000.00 for Fiscal Year 2020-2021; $777,000.00 for Fiscal Year 2021-2022; $790,000.00 for Fiscal Year 2022-2023; $830,000.00 for Fiscal Year 2023-2024; $880,000.00 for Fiscal Year 2024-2025; and $940,000.00 for Fiscal Year 2025-2026; and now P.R. NO 25182 TNR-LYN 9/21/2026 WHEREAS, the City Council has approved an allocation of $1,109,000.00 for the Association for Fiscal Year 2026-2027; and WHEREAS, the City Council finds that establishing the Association's Fiscal Year 2026- 2027 funding allocation will support the Convention/Visitors Bureau's activities that promote tourism and directly promote the convention and hotel industry, consistent with the authorized purposes for the expenditure of municipal hotel occupancy tax revenue under applicable law; and WHEREAS, the City Council finds that it is necessary and appropriate to amend the existing agreement to establish the Association's Fiscal Year 2026-2027 funding allocation in the amount of$1,109,000.00. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR,TEXAS: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That Article V of the Contract, between the City and Port Arthur Convention and Tourist Association, shall be amended to read as follows: "V. The City shall advance to the Association a portion of the proceeds of the Hotel and Motel Occupancy Tax received by the City. The amount of the advance will be determined by the City Council on an annual basis. The Convention and Tourist Association requests that during the annual budget planning cycle each year, the City Council takes into consideration the changing financial circumstances of the Convention and Tourist Association and the City, as well as the effectiveness of the marketing efforts of the Association and its value to tourism in Port Arthur. The funds allocated to the Association's budget for fiscal year 2026-2027 are $1,109,000. To effectuate the intentions of the parties hereto, it is agreed that the following procedure for such payments shall be established: a. The City will advance to the Association one-twelfth (1/12) of their annual allocation on a monthly basis. b. In the first month of each calendar quarterly year,the Association shall furnish to the City Manager a statement of the activities of • P.R. NO 25182 TNR-LYN 9/21/2026 the Convention/Visitors Bureau during the preceding calendar quarterly period." Section 3. That the Association shall signify its approval of the foregoing amendment by its President dating and signing two (2) duplicate copies of this Resolution, each of which has been signed by the Mayor and attested by the City Secretary. Section 4. Funds in the amount of$1,109,000.00 are available in the Hotel Occupancy Tax Fund, Account No. 140-15-600-5470-00-20-000, Project No. H07912.OTH.00S, subject to applicable law and the terms of the agreement. Section 5. That a copy of the caption of the Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of October, A.D. 2026, at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: Mayor: City Council: NOES: Charlotte M. Moses, Mayor ATTEST: Christe Whitley Ned, City Secretary APPROVED AS TO FORM: I Rox • o roneo, 1 y torney APPROVED FOR ADMINIST ' ' ' ON: Ask. Ron Burton, Ci Mr' . . r AVAI ILITY OF FUNDS: , 4. L a oswell, Director of Finance AGREED TO: PORT ARTHUR CONVENTION AND TOURIST ASSOCIATION BY: DATE: