Graham Transfers $100,000 to Cover Food Truck Losses

The Graham City Council voted July 23 to transfer $100,000 in hotel-occupancy tax reserves to Visit Graham after the Food Truck Championship of Texas sustained losses that created a cash-flow problem for the tourism organization.

The council unanimously approved the transfer as part of an amendment to the city’s current fiscal year budget.

City Manager Eric Garretty emphasized that the $100,000 did not come from property taxes, sales taxes or other unrestricted city revenue. Hotel-occupancy taxes are restricted by state law to uses intended to promote tourism and hotel activity.

The city had previously placed the money in a reserve for tourism-related contingencies.

“I admit that it is unfortunate that this event resulted” in a loss, Mr. Garretty said before explaining that a full financial report was still being prepared.

Visit Graham CEO Cathy Partridge is expected to present the event’s final revenue and expense figures to the council at its Aug. 6 meeting.

Mr. Garretty said the transfer was needed before that report was completed because Visit Graham was experiencing a cash-flow problem. Council members agreed to wait for the final report before discussing the event’s finances in detail.

The annual Food Truck Championship draws vendors and visitors to Graham for a food-truck competition accompanied by live entertainment and other activities. The event is one of Visit Graham’s most prominent tourism promotions.

The budget amendment also provided $40,000 to repair and replace heating and air-conditioning units at the Graham Police Department.

It formally recognized $2 million in debt proceeds received for a new fire apparatus. The money will be restricted and held until payment for the apparatus is due during fiscal year 2027.

The amendment also established a $125,000 budget for the initial work on a possible alternative water-reuse project. Mr. Garretty said he expects to present the council with a less expensive option after the city failed to obtain an anticipated grant for the original project.

The final component transferred slightly more than $1.2 million from the lake fund, general fund and sewer capital fund into a reserve for the city’s debt obligations.

Mr. Garretty said the $1.2 million transfer was an administrative action involving money already held by the city. It did not require an increase in taxes, utility rates or other fees.

The council approved all five components in a single vote.

The Aug. 6 report is expected to show the Food Truck Championship’s total expenses, revenue and final loss. It also could determine whether the event will return in its present form.