By BECKY KISER
Hays Post
The city of Hays will likely increase its transient guest tax rate of 7% for the Convention and Visitors Bureau budget to ensure the fund’s sustainability.
"As costs have continued to rise, the fund has become unsustainable," Collin Bielser, deputy city manager, told the city commission during their Thursday work session.
Commissioners will vote on a charter ordinance at their Oct. 24 meeting to raise the transient guest tax to 8.25%.
A transient guest tax is a tax imposed on guests of Hays hotels or other lodging facilities.
Five percent of the tax, established in 1998, is allocated toward Convention and Visitors Bureau operations. Another 2% was levied in 2018 to pay for the North Vine Street Corridor improvements.
A 1.25% increase in the tax would generate about another $250,000 annually.
"With the increase in revenue, CVB will be able to increase its advertising budget by 36%, promotions by 18%, and ensure that reserves can continue to be funded," Bielser said.
In addition, $50,000 of the revenue would be added to the amount transferred to the Special Parks maintenance fund for the city’s parks and recreational facilities.
Mayor Sandy Jacobs is glad that's part of the plan. She recently toured all the city's parks and their amenities.
"It would be really nice to do some special things in some of those parks," she said. "It's not that they're bad or awful, but they do need improvement. ... That quality-of-life thing is really important in this community."
Commissioners have previously expressed the need for more advertising and promotion of Hays to outside visitors and travelers.
The city's general fund is primarily funded by the city's local sales tax.
Commissioner Shaun Musil wants any increase in the transient guest tax "to be spent wisely" when it comes to advertising.
"Things have changed from the paper and print we've been using. I'm a paper guy, but people younger than me, that's not their thing," he said.
Musil said he also differs somewhat on the plan to put some of the extra tax dollars into parks maintenance.
"I want beautiful parks," he said, "but I question how much our parks are being used now as they used to be. We do have an accessible park that is unbelievably busy."
Jacobs said adding play elements to the parks, paid for with taxes, would help attract more kids, noting that the amenities are utilized by residents and visitors alike.
A charter ordinance can be challenged by a petition from voters within 60 days. Hays residents would then be able to vote on it. If not challenged, the charter ordinance and rate increase approved by commissioners would become effective April 1.
Melissa Dixon, Convention, and Visitors Bureau executive director, was in the audience but did not address the commission.
In other business, more advances for The Grove housing development were presented and will be voted on next week.
Developer Grow Hays is moving forward with plans for street, storm sewer, water, sanitary sewer and other infrastructure improvements to an area containing 60 lots just north of Hays Medical Center on Canterbury Drive.
Work on a new community center to be built in The Grove Addition is already underway.
Jesse Rohr, public works director, recommended the low bid of $3,027,348 from Sporer Land, Oakley/Colby.
Rohr also recommended a contract with Driggs Design Group, Hays, for construction engineering services for $100,438.
Bielser explained a home rule ordinance is necessary to approve the development agreement and economic development grant for The Grove project.
Grow Hays has requested the city of Hays finance the infrastructure and then utilize reinvestment housing improvement district (RHID) revenues to offset project costs.
If the development does not generate sufficient revenue increment after six years, the city would have the option to take ownership of all undeveloped parcels.
Erin Giebler, human resources director, presented her recommendation to stay with Blue Cross Blue Shield in 2025 as the health insurance provider for city employees.
"It's a 13% increase," Giebler said, "but that's still well below the national average.
"With this renewal, our annual increase averages 1.13%, well below the national average of 5% per year. Not only is the city's renewal rates lower than the average, the cost is also well below the national average," she said.