Council to Consider Restoring Revoked Lake Nasworthy Short-Term Rental

SAN ANGELO, TX — The San Angelo City Council will decide Tuesday whether to restore a short-term rental permit on Fisherman Road that the Planning Commission revoked after hotel occupancy taxes went unreported. 

The commission voted 6-0 on July 20 to revoke Conditional Use 23-36. Staff said operators failed to report and remit hotel occupancy tax and filed reports showing no revenue without written notice that the rental had stopped operating. 

The house changed owners. Staff said an Airbnb listing showed at least six stays in July and August 2025 under the previous owner and at least 16 stays from September 2025 on under the new owners. Officials said the new owners missed tax payments after the sale but have since come into compliance. 

If council restores the permit, staff recommends requiring proof of all stays and hotel occupancy taxes from Sept. 1, 2026, through Feb. 28, 2027, by March 10, 2027. Council may instead uphold the revocation. 

The meeting starts at 8:30 a.m. Sept. 1 in the South Meeting Room at the McNease Convention Center, 501 Rio Concho Drive. It is open to the public and will be streamed on the city’s YouTube channel and SATV (Optimum channel 17). 

Council will hold a first reading and public hearing on an ordinance keeping the city’s 2026-27 property tax rate at $0.7947 per $100 of valuation, unchanged from this year. The rate is below the 3.5% cap that would have allowed a $0.0195 increase. It would be split $0.6238 for the General Fund, $0.0072 for streets and $0.1637 for debt service. The 20% homestead exemption would continue. Taxes would become delinquent Feb. 1, 2027. Final adoption is scheduled for Sept. 15. 

Staff also recommends resolutions supporting two privately funded Art in Uncommon Places installations. “Not as Small as They Seem” would place eight large mosaic insect sculptures along the Red Arroyo Trail near College Hills Boulevard and Millbrook Drive. “Stacked Stories of West Texas” would place nine artistic totems along Chadbourne Street from Beauregard Avenue north toward Fifth Street. The nonprofit would raise the construction money. Staff recommends $5,000 the first year for minor maintenance. 

Council will consider a $1 million FAA grant and matching contract amendment for a siting study, environmental review and preliminary design of a new air traffic control tower. 

Also on the agenda:

• Discussion of Fiscal Year 2027 hotel occupancy tax allocations for arts and historic preservation
• A Defense Community Infrastructure Program grant for the Christoval Road reconstruction project
• A $9.93 million contract to convert Runway 09/27 to Taxiway H and a $1.22 million related design amendment
• The city clerk’s finding that a recall petition against District 2 Council Member Joe Self is insufficient
• A proclamation declaring Sept. 1 as Concho Valley Regional Food Bank Day
• Nomination of City Manager Phillip Urrutia to the Metropolitan Planning Organization Policy Board
• A lease with American Legion Post 572 at 616 N. Washington St.
• A uniform parks rental-fee policy, including a limited K-12 school-day exemption
• Water-treatment chemical contracts totaling more than $1.2 million
• San Angelo Development Corp. items of up to $50,450 for Kids Kingdom landscape design and up to $476,000 for Chamber of Commerce marketing
• Signatory authority for a Texas General Land Office flood-mitigation grant program
• Second readings of a zone change at 6 and 10 W. 16th St. and a special-use permit for a funeral home and crematorium at 3602 and 3618 Devonian Drive
• Closed session on real property at 331 Preusser St., 1921 W. Avenue J and a lot in Legacy Park, plus attorney consultations on fees, a Meet and Confer contract, and state economic-development law
• Whether to hold single meetings Dec. 15 and Jan. 12, 2027

Speakers must sign in with the city clerk before the meeting. Comments on regular agenda items are limited to three minutes; applicants and appellants may speak up to five minutes.