The Magnolia Historical Society made a request to the Magnolia City Council on Tuesday Oct. 12 for $14,000 to help with the costs of its annual Hometown Christmas event.  Historical Society member Stefani Mitchell asked city council to consider what the event does for the city and the number of people it brings from within the city limits as well as from surrounding areas.

The Hotel Motel Tax Commission typically grants funding requests for the Hometown Christmas, but this year questions were raised about whether or not the event is a proper function to which to allocate funds.

“Each year we try to figure out how to increase the tourism and supporting this event helps,” Commission member Viren Vansadia said.

For the Christmas event the city council wanted to be assured that guests would be using the hotels and motels in Magnolia.

“We need to have heads in beds,” council member Patsy Williams said.

When hotels and motels are used inside the city limit there is a 7 percent tax on the room that is returned to the city’s hotel/motel tax fund. Each year, those funds can be used to help support community events that increase tourism in the community.

“The money can be used towards anything that attracts tourism; we try to use it for something where they stay overnight,” Vansadia said.

In efforts to encourage guests of the Christmas event to stay overnight, the Historical Society is making Hometown Christmas two days this year, rather than one, with other additions if it is able to obtain funding.

Council discussed whether $14,000 was a feasible amount, with some council members suggesting $6,000 was more appropriate. Mitchell explained that the Historical Society is already under contract with three companies to provide entertainment for the event at a cost of about $8,000.

Williams believes the city should help fund those events.

“We should at least donate the $8,000 in order to help cover the cost of these contract obligations,” Williams said.

Vansadia agreed that events such as the Hometown Christmas are important to the community because they bring tourism and encourage community growth.

“In the spirit of what the event is, it does not necessarily have to get people to rent rooms as long as it brings people here. If they rent a room, then that’s great too,” Vansadia said.

In recent years the Hotel Motel Tax Commission has helped fund the Fourth of July fireworks show and the Magnolia Music Festival in 2009 and 2010. The budget earns most of its revenue through hotel and motel rentals during the Texas Renaissance Festival.

The discussion among council came to a stop when council realized the agenda stated that they were to discuss funding for the Historical Society through a city taxing mechanism. The agenda did not include that the funds could possibly come from the hotel motel tax budget.

“We want citizens to know exactly what is being disused in case they want to listen or participate,” City Manager Paul Mendes said.

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