Title
Consider a memorandum/resolution approving the Killeen Arts Commission grant recommendations for Fiscal Year 2027.
Body
DATE: September 15, 2026
TO: Kent Cagle, Interim City Manager
FROM: Judith Tangalin, Executive Director of Finance
SUBJECT: Killeen Arts Commission FY 2027 Grant Recommendations
BACKGROUND AND FINDINGS:
One of the primary duties carried out by the Arts Commission involves providing recommendations to the City Council concerning the allocation of funds from the Hotel Occupancy Tax. These funds are specifically designated for supporting arts-related grants. The utilization of municipal hotel occupancy taxes is governed by Texas Tax Code Chapter 351. As outlined in Section 351.101, there are two key criteria that must be fulfilled in order to utilize revenue from municipal hotel occupancy taxes: 1) the expenditures should contribute to the advancement of tourism and the convention and hotel industry, and 2) the expenditures should fall within one of the nine predefined categories mandated by statute. Notably, the encouragement, promotion, enhancement, and advancement of the arts constitute one of these nine categories. Additionally, Section 351.103(c) sets a limit on the proportion of hotel occupancy tax revenue that can be allocated to the arts, capping it at 15% of the total revenue collected from hotel occupancy taxes.
On June 12,2026, a session of the Killeen Arts Commission took place. In this gathering, a total of five (5) applicants put forth their grant. The proposed events, put forth by these applicants, underwent assessment by the Arts Commission in accordance with the Rules and Regulations that were revised and adopted by the City Council on February 18, 2025.
The FY 2027 Proposed Budget includes $75,000 for Arts Commission grant funding, representing approximately 4% of FY 2027 budgeted hotel occupancy tax collections.
Upon City Council’s approval of the recommended grant awards, contracts will be formulated and signed with the selected grant recipients, with a designated commencement date of October 1, 2026. The proposed allocations are as follows:
$ 1,166 Walnut Grove Community Services
$ 6,270 Innovation Black Chamber of Commerce
$ 39,858 Vive Les Arts Societe
$ 18,175 E Community Killeen
$ 9,531 Premiere Creative Collective INC
$ 75,000 Total
THE ALTERNATIVES CONSIDERED:
1. Do not approve the Arts Commission’s grant recommendations
2. Amend the Arts Commission’s grant recommendations
3. Approve the Arts Commission’s grant recommendations
Which alternative is recommended? Why?
City Council approve the Killeen Arts Commission’s grant recommendations for fiscal year 2027.
CONFORMITY TO CITY POLICY:
In compliance with Texas Tax Code Section 351 and the Arts Commission Rules and Regulations.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
$75,000 for FY 2027
Is this a one-time or recurring revenue/expenditure?
One-Time
Is this revenue/expenditure budgeted?
Yes, $75,000 is included in the Hotel Occupancy Tax Fund in account 214-55660-160-162-000000 upon City Council approval of the FY 2027 Proposed Budget.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes, upon City Council approval of the FY 2027 Proposed Budget
RECOMMENDATION:
City Council approve the Killeen Arts Commission’s grant recommendations for fiscal year 2027.
DEPARTMENTAL CLEARANCES:
Legal
ATTACHED SUPPORTING DOCUMENTS:
Grant Recommendations
Presentation