HOT Funds Application Packet
CITY OF STEPHENVILLE
HOTEL OCCUPANCY TAX (H.O.T) APPLICATION
(HOTEL MOTEL FUNDS GRANT APPLICATION)
HOT Funds Application Packet
CITY OF STEPHENVILLE
GUIDELINES UNDER TEXAS LAW FOR
USE OF HOTEL OCCUPANCY TAX REVENUE
State Law: By law of the State of Texas, the City of Stephenville collects a Hotel Occupancy Tax
(HOT) from hotels, motels, inns, and bed-and-breakfast establishments. Chapter 351 of the Tax
Code states that HOT funds may be used only if both parts of the following two-part test are met.
Part One (1) requires that usage of HOT Funds must directly enhance and promote tourism and
the convention, and hotel industry, and Part Two (2) limits the use of HOT Funds to the following:
1. Convention center facilities or visitor information centers: the acquisition of sites for and
the construction, improvement, enlarging, equipping, repairing, operation, and
maintenance of TVB center facilities or visitor information centers, or both;
2. Registration of tourism and visitor’s bureau delegates: the furnishing of facilities,
personnel, and materials for the registration of TVB delegates or registrants;
3. Advertising, and conducting solicitations and promotional programs to attract tourists
and visitor’s delegates: advertising and conducting solicitants and promotional programs
to attract tourists and visitor’s delegates or registrants to the municipality or its vicinity;
4. Promotion of the arts: the encouragement, promotion, improvement and application of
the arts, including instrumental and vocal music, dance, drama, folk art, creative writing,
architecture, design and allied fields, painting, sculpture, photography, graphic and craft
arts, motion picture, 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: historical restoration and
preservation objects or activities or advertising and conducting solicitations and
promotional programs to encourage tourists and visitor’s delegates to visit preserved
historic sites or museums: (a) at or in the immediate vicinity of Tourism and Visitor’s
Bureau facilities or visitor information centers; or (b) located elsewhere in the
municipality or its vicinity that would be frequented by tourists and visitor delegates;
6. Sporting event expenses related to sporting events which substantially increase
economic activity at hotels: for a municipality located in a county with a population of
290,000 or less, expenses, including promotion expenses, directly related to a sporting
HOT Funds Application Packet
event in which the majority of participants are tourists who substantially increase
economic activity at hotels and motels within the municipality or its vicinity.
7. Signage: Signage directing tourists to sights and attractions that are visited frequently by
hotel guests in the municipality.
8. Transportation systems for tourists: Funding the costs for transporting tourists from
hotels in and near the city to: the commercial center of the city, a convention center in
the city, other hotels in or near the city, and tourist attractions in or near the city.
City of Stephenville Process: The City of Stephenville accepts applications from groups who
request HOT Funds for events/activities/facilities, which fit into one or more of the above listed
categories. All decisions of the City Council are final.
City of Stephenville Policy:
1. The purpose of HOT funding is to assist and support qualified events/activities/facilities,
not to be the major patron or the majority funds provider (50% or more) for the
event/activity/facility budget.
2. Priority will be given to those events and entities based upon documented ability to
directly promote tourism and the hotel and convention industry in Stephenville by
“demonstrating a proven record of increased hotel or tourism and visitor’s activity.” Such
activity may result from hotel or tourism and visitor’s guests that are already in town and
choose to attend the funded event or facility, or it may result from individuals coming
from another city or county to stay in an area lodging to attend the funded event or
facility. Applicants should document the potential to generate increased hotel or tourism
and visitor’s activity by:
a. Providing historical information on the number of rooms nights used during
previous years of the same event/activity/facility;
b. Providing current information on the size of room blocks reserved at area hotels
to accommodate anticipated overnight guests attending the funded
event/activity/facility.
c. Providing historical information on the number of guests at hotels or other
lodging facilities that attended the funded event/activity/facility; and/or
d. Providing examples of marketing or programs and activities likely to generate or
encourage overnight visitors to local lodging properties.
HOT Funds Application Packet
3. All applicants are encouraged to utilize local businesses for food, supplies, materials,
printing, and the like. A minimum of 8% of the HOT Funds shall be spent with local
businesses.
4. A portion of the revenues from any event/activity/facility receiving HOT Funds should be
channeled back into the future costs of operating that same event/activity/facility or the
continued operation of such.
5. It is critical that the Application/Request for funding be filled out completely and
accurately. Under the application section “Fund Usage,” it is responsibility of the applicant
to specifically explain how the funds will be used only in eligible ways.
6. If applying under the Advertising category, please note the local requirement that
advertising must be accomplished in advance of the event/activity/facility, and must
utilize legitimate media for promotion outside of the area, i.e. direct mail, newspapers,
magazines, radio, television, billboards.
7. As a general rule, all funding requests should be for fifty percent (50%) or less of
Applicant’s total projected revenue from the event/activity/facility.
8. Applicants are on notice that while the City of Stephenville makes decisions based on
estimated budgets and projections, documentation of how granted funds were spent
must be actual costs supported by proofs of payment. Any monies not used or not used
lawfully, must be returned or repaid to the City within sixty (60) days of the event, along
with the completed Post-Funding Analysis.
9. The final accounting of funds must mirror the items outlined in the Applicant’s original
application, in its fund expenditure outline, and in its request letter.
10. City of Stephenville guidelines were duly adopted by City Council on _____ day of ______,
20____.
HOT Funds Application Packet
FUNDING CONSIDERATION CHECKLIST
Name of
Event/Activity/Facility:__________________________________________________________________
Does your event/activity/facility pass Part One (1) of the statutory test, defined specifically as directly
enhancing and promoting tourism and the convention, and hotel industry in Stephenville? YES NO
Does your event/activity/facility pass Part Two (2) of the statutory test, defined specifically as fitting into
one of more of the following categories:
Convention center facilities or visitor information centers
Facilities, personnel and materials for registration of the Tourism and Visitor’s Bureau
delegates
Advertising, and conducting solicitations and promotional programs to attract tourist and
visitor’s
Promotion of the arts, including instrumental and vocal music, dance, drama, folk art,
creative writing, architecture, design and allied fields, painting, sculpture, photography,
graphic and craft arts, motion picture, radio, television, tape and sound recording
Historical restoration and preservation projects or activities, or advertising and conducting
solicitations and promotional programs to encourage tourists to visit preserved historic sites
or museums in the area
Signage directing tourist to sights and attractions that are visited frequently by hotel guests in
the municipality
Funding the costs for transporting tourists from hotels in and near the city to: the commercial
center of the city, a convention center in the city, other hotels in or near the city, and tourist
attractions in or near the city
Sporting event expenses, including promotion expenses, related to sporting events
at which the majority of participants are tourists who substantially increase economic
activity at hotels in the area
Is your application filled out thoroughly and completely, and are all required pages attached?
Is your request for funding in accordance with the maximum funding guidelines?
If applicable, have you submitted the Post-Funding Analysis and proofs of payment for last
year’s event/activity/facility?
If applicable, have you returned or repaid the City for any previous funds not used or not
used lawfully?
Have you documented how you will accurately track out-of-town guests, showing that your
event will attract tourists that will directly support the Tourism and Visitor’s Bureau and the
Hotel industry in the area?
Is your request for fifty percent (50%) or less of your total projected revenue from the
event/activity/facility?
If you are applying under the Advertising category, is your request for one hundred percent
(100%) or less of your total projected advertising expenditures?
If you are applying under the Advertising category, have you met the local requirement that
advertising must be accomplished in advance of the event/activity/facility, and must utilize
legitimate media for promotion outside of the area, i.e. direct mail, newspapers, magazines,
radio, television, billboards?
Will all advertising indicate that the City of Stephenville is a direct sponsor of the event?
HOT Funds Application Packet
APPLICATION
Date:_______________________________
Name of Organization
Address:
City, State, Zip:
Contact Name:
Contact Phone Number:
Website Address for Event/Activity/Facility:
Is your organization: Non-Profit Private for Profit
Tax ID#:____________________________________________
Organization’s Creation Date:___________________________
Purpose for your organization:
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Name of Event/Activity/Facility:
Date of Even/Activity:
Primary Location of Event/Activity/Facility:
Amount of HOT Funding Requested:
Organization Information
Event/Activity/Facility Information
HOT Funds Application Packet
Fund Usage: How will the funds be used?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Primary purpose if funded Event/Activity/Facility:
_____________________________________________________________________________________
_____________________________________________________________________________________
Check that statutory categories apply to funding request and amount requested under each category:
Convention center facilities or visitor information centers: the acquisition of sites for and the
construction, improvement, enlarging, equipping, repairing, operation, and maintenance of
convention center facilities or visitor information centers, or both;____________________________
Registration of Tourism and Visitor’s Bureau delegates: the furnishing of facilities, personnel, and
materials for the registration of tourism and visitor’s bureau delegates or registrants;
__________________________________________________________________________________
Advertising, and conducting solicitations and promotional programs to attract tourists and
visitor delegates: advertising and conducting solicitations and promotional programs to attract
tourists and visitor’s delegates or registrants to the municipality or its vicinity;
__________________________________________________________________________________
Promotion of the arts: the encouragement, promotion, improvement, and application of the arts,
including instrumental and vocal music, dance, drama, folk art, creative writing, architecture, 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;
_____________________________________________________________________________________
_____________________________________________________________________________________
Historical restoration and preservation projects or activities: historical restoration and preservation
projects or activities or advertising and conducting solicitations and promotional programs to encourage
tourists and visitor’s delegates to visit preserved historic sites or museums: (a) at or in the immediate
vicinity of the Tourism and Visitor’s Bureau center facilities or visitor information centers; or (b located
elsewhere in the municipality or its vicinity that would be frequented by tourists and visitors delegates;
_____________________________________________________________________________________
_____________________________________________________________________________________
HOT Funds Application Packet
Sporting event expenses related to sporting event which substantially increase economic activity
at hotels: for a municipality located in a county with a population of 290,000 or less, expenses,
including promotion expenses, directly related to a sporting event in which the majority of
participants are tourists who substantially increase economic activity at hotels and motels within the
municipality or its vicinity. ____________________________________________________________
Signage: Signage directing tourists from hotels in and near the city to: the commercial center of the
city, a convention center in the city, other hotels in or near the city, and tourist attractions in or near
the city.
Transportation system for tourists: Funding the costs for transporting tourist from hotels in and
near the city to: the commercial center of the city, a convention center in the city, other hotels in or
near the city, and tourist attractions in or near the city.
(Answer the following three (3) questions only if sporting event-related)
If sporting even-related: How many individuals are expected to participate?
_____________________________________________________________________________________
If sporting event-related: How many of the participants are expected to be from another city or
county?
_____________________________________________________________________________________
If sporting event-related: Quantify how the funded event/activity/facilities will substantially increase
economic activity at hotel and motels within the City or its vicinity?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
How many years have you held this event/activity?
_____________________________________________________________________________________
Expected attendance:
_____________________________________________________________________________________
How many people attending the event/activity/facility will use Stephenville hotels, motels, inn s or
bed-and-breakfast establishments?
_____________________________________________________________________________________
Questions for all Funding Requests
HOT Funds Application Packet
How many nights will they stay?
_____________________________________________________________________________________
Do you reserve a room block for this event/activity/facility at an area hotel and if so, for how many
rooms and at which hotels?
_____________________________________________________________________________________
_____________________________________________________________________________________
Please list other years (over the last three years) that you have hosted your event/activity/facility,
and list the amount of assistance given from HOT funding and the number of hotel rooms used:
Motel/Year Held
Assistance Amount
Number of Hotel Rooms Used
How will you measure the impact of your event/activity/facility on area hotel activity?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Please list all other organizations, government entities and grants that have offered financial support
to your event/activity/facility, and respective amounts:
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Please check all promotion efforts your organization is coordinating, and list the financial amounts
committed to each media outlet:
Paid Advertising Newspaper Radio TV Social Media Press Releases
Direct mailing to out-of-town recipients Other
What specific geographic areas do your advertising materials and promotions reach?
_____________________________________________________________________________________
_____________________________________________________________________________________
HOT Funds Application Packet
What number of individuals located in another city or county will your proposed marketing reach?
_____________________________________________________________________________________
_____________________________________________________________________________________
The above application for HOT funds received for the City of Stephenville, and the explanation of how
such funds will be utilized, is true and accurate.
______________________________________ ________________________________
Authorized Signature Date Signed
This Pre-Fund Analysis must be completely and accurately filled out and returned to the City of
Stephenville, Attn: Tourism Coordinator, 298 W. Washington St. Stephenville, Texas 76401, no later
than sixty (60) days before the event/activity/facility. If the total amount of the HOT funds were not
used or were not lawfully used, then those funds must be returned or repaid to the City of Stephenville
with the Post-Funding Analysis. Questions may be directed to the Tourism Coordinator at (254) 918-
1212 or email
tourism@stephenvilletx.gov.
HOT Funds Application Packet
(ONLY turn this part in once your event is completed)
POST-FUNDING ANALYSIS AND PROOFS OF PAYMENT
ORGANIZATION INFORMATION
Date: _______________________________
Name of organization: __________________________________________________________________
Address:______________________________________________________________________________
City, State, Zip:________________________________________________________________________
Contact Person:________________________________________________________________________
Contact Telephone Number:_____________________________________________________________
EVENTS/ACTIVITY/FACILITY INFORMAITON
Name of funded
event/activity/facility:__________________________________________________________________
Date funded event/activity/facility
held:_________________________________________________________________________________
Primary location of funded
event/activity/facility:__________________________________________________________________
_____________________________________________________________________________________
Primary purpose of funded
event/activity/facility:__________________________________________________________________
_____________________________________________________________________________________
Amount received from HOT funds:________________________________________________________
Specific explanation of how HOT funds were
spent:________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
How many years have you held this event/activity/facility?
_____________________________________________________________________________________
How many people did you predict would attend this event/activity/facility? (Note: this should be the
number you submitted in “Application”):___________________________________________________
HOT Funds Application Packet
How many people do you estimate actually attended the
event/activity/facility?__________________________________________________________________
How many room nights were generated in Stephenville area hotels/motels, inns, and bed-and-
breakfast establishments by attendees of this
event/activity/facility?__________________________________________________________________
If this event/activity/facility has been funded by HOT funds in the last three (3) years, how many room
nights were generated at Stephenville area hotels/motels, inns, and bed-and-breakfast
establishments by attendees of this event/activity/facility?
Last Year?_____________________________
Two Years Ago? ________________________
Three Years Ago? _______________________
What method did you use to determine the number of people who booked rooms in Stephenville area
hotels/motels, inns, and bed-and-breakfast establishments by attendees of this even/activity/facility?
(for example, room block usage information, survey of hoteliers, etc.)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Was a room block established for this event/activity/facility at an area hotel and, if so, did the room
block fill? _____________________________________________________________________________
If the room block did not fill, how many rooms were picked up?________________________________
Please check all efforts your organization actually used to promote this event/activity/facility, and
how much money was actually spent in each category:
HOT Funds Application Packet
What new marketing initiatives did you utilize to promote hotel, tourism and visitor’s activity for this
event/activity/facility?__________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Attach actual documents showing how Stephenville was recognized in your advertising/promotional
campaign.
Attach actual documents showing all forms of advertising/promotion used in your campaign. If the
item itself does not indicate the medium used (i.e. radio, TV, print, or mail) or exactly where the
advertising took place, please include other information that would show the location of the
advertising and medium utilized.
Attach actual invoices, receipts, and proofs of payment for ALL expenditures on which HOT funds
were used in whole or in part.
Were the HOT funds received fifty percent (50%) or less of total
receipts?_____________________________________________________________________________
HOT Funds Received:___________________________________________________________________
Total Event Receipts:___________________________________________________________________
What Stephenville businesses did you utilize for food, supplies, materials, printing,
etc.?_________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
If sporting event-related, how many individuals actually participated in the event/activity/facility?
_____________________________________________________________________________________
If sporting event-related, how many participants were from another city of county?
_____________________________________________________________________________________
The above accounting of HOT funds received for the City of Stephenville, and the explanation of how
such funds were actually utilized, is true and accurate.
______________________________________ ________________________________
Authorized Signature Date Signed
This Post-Fund Analysis must be completely and accurately filled out and returned to the City of
Stephenville, Attn: Tourism Coordinator, 298 W. Washington St. Stephenville, Texas 76401, no later
than sixty (60) days after the event/activity/facility. All invoices and proofs of payment must be
attached wand will not be returned. If the total amount of the HOT funds were not used or were not
lawfully used, then those funds must be returned or repaid to the City of Stephenville with this Post-
Funding Analysis. Questions may be directed to the Tourism Coordinator at (254) 918-1212 or email
tourism@stephenvilletx.gov.