By LYNETTE SOWELL-STEVENS
Cove Leader-Press
All of the Hotel Occupancy Tax (HOT) funding requests submitted from the Copperas Cove Historical Society, Cove House, Krist Kindl Markt, Rabbit Fest and the Copperas Cove Chamber of Commerce & Visitors Bureau, will be fully funded in fiscal year 2026-2027, after a workshop presentation by the City’s Budget Director to the city council on June 25.
HOT funds, per state law, can only be used by cities for expenses which promote the hotel industry, tourism, the arts, historic preservation, and in certain cases depending on population, sporting events.
The City made $190,000 of its HOT funds for use in the next fiscal year. HOT funds may legally be used by cities for tourism, supporting historical preservation, as well as sports events.
The Copperas Cove Historical Society requested $8,675 for the Ogletree Gap Heritage Festival. Cove House requested $3,500 for its annual Cove House Classic Bike Tour. The Copperas Cove Chamber of Commerce requested $15,000 for the 2026 Krist Kindl Markt, $35,000 for Rabbit Fest 2027, as well as $133,000 to fund its tourism operations.
Each organization was required to submit a nine-page application that outlines how they intend to spend the funds, which are reimbursed after the organizations submit reports to the council within 60 days of the event. The reports include receipts of paid expenditures.
The Copperas Cove Historical Society plans to use the funds for event advertising in newspapers, TV and billboards; promotion of the arts and crafts of the period time, vocal music and dance, and transportation at the festival.
For its bike tour, Cove House will spend its fund on advertising, including TV, internet and print as well as T-shirts.
Per the chamber’s application for the 2026 Krist Kindl Markt, the $15,000 in HOT funds will be used to market and promote Krist Kindl Markt outside a 50-mile radius of Copperas Cove through regional advertising and tourism marketing. Funds will also support live performing arts and stage production during the event.
For Rabbit Fest 2027, HOT funds will be used for tourism marketing and promotion of Rabbit Fest, including advertising to attract visitors from outside the area and supporting performing arts components such as live music and professional stage and sound production.
For the Chamber’s Visitors Bureau operations, the $133,000 requested will “support the operations of the Copperas Cove Visitors Bureau as well as tourism marketing and promotion efforts. Funds will be used for the administration and operation of the Visitors Bureau and for regional advertising and tourism initiatives that promote Copperas Cove as a destination, attract visitors from outside the area, and encourage overnight stays in local hotels.”
The total HOT funds requested by all organizations, $230,550, is over the available $190,000 in HOT funds by $39,700.
A total of $28,628 has been earmarked for civic center maintenance and operations, which is 15 percent of available balance allocated per city code. A total of $2,215 will be paid to the Texas Lodging Association for the city’s annual membership.
According to the proposed 2026-2027 budget, the City’s HOT fund has a beginning fund balance of $389,943, and an ending fund balance of $408,743, even after $186,318 in contingencies.
In looking at that number, councilmember Jack Smith inquired about the fund balance numbers, both beginning and ending, as part of the budget.
Budget Director Ariana Beckman clarified that the number is a projection on what the city might collect from the hotels during the next fiscal year.
The council concurred with Mayor Dan Yancey’s recommendation to fully fund the organizations’ requests of $230,550, and to take $39,700 from the fund balance of $389,943.
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