Page 28 - CityofLakeWorthFY26AdoptedBudget

HOTEL FUND

The Hotel Occupancy Tax (HOT) Fund is a special revenue fund supported by a 7% tax
imposed on hotel room rentals within the City of Lake Worth. In accordance with

Texas state law, these revenues must be used to directly enhance and promote

tourism and the convention and hotel industry. The City allocates these funds to
support events, marketing efforts, and programs that attract visitors and generate

economic activity within the community.

For Fiscal Year 2025-2026, revenue in the Hotel Fund is projected to total $280,300.

Budgeted operational expenditures for the year are $141,735, which include both
direct program support and administrative costs associated with managing tourism-

related activities. The Hotel Fund is expected to close the fiscal year with an available

ending fund balance of $1,837,879, representing approximately 875% of annual
operating expenses. This strong fund balance reflects prudent fiscal management and

positions the City to support future tourism initiatives as opportunities arise.

The FY 2025-2026 budget includes targeted investments that align with the City’s

goals of increasing tourism, supporting local businesses, and enhancing the cultural
and recreational offerings available to residents and visitors. Planned allocations from

the Hotel Occupancy Tax Fund include:

$26,881 – Best Western Lake Worth Advertising Support:

This funding supports the hotel’s promotional efforts aimed at increasing

overnight stays in Lake Worth. Advertising efforts focus on regional and
statewide marketing to highlight the City’s proximity to Fort Worth and key

attractions, helping to drive visitor traffic and generate additional tax
revenue.