By BECKY KISER
Hays Post
Unless there is a protest petition campaign, the transient guest tax at Hays hotels and Airbnbs will increase to 8.25% on April 1.
The current guest tax rate is 7%, established in 1998. Five percent of that is allocated to Convention and Visitors Bureau operations. Another 2% was added in 2018 for North Vine Street improvements.
"To go on a 5% operating budget for 25 years is quite impressive, but the CVB fund is becoming unsustainable," said Collin Bielser, deputy city manager.
"Technology has changed, costs have increased, so they're doing a lot of things differently."
Increasing the guest tax by 1.25% will generate about $250,000 more each year.
The Special Parks will receive $50,000 to maintain the city’s parks and recreational facilities.
"Those are amenities that both residents and visitors utilize alike," Bielser said.
"We have to find reasons to make visitors come here," Commissioner Shaun Musil said.
The city's general fund is primarily financed by the local sales tax.
"We want visitors to come enjoy the quality-of-life amenities we've invested in," Commissioner Reese Barrick said.
Only two cities in Kansas have a higher guest tax than Hays will soon have. Overland Park and Mission are at 9%. Many cities are at 8%, including Dodge City, Emporia, and Shawnee.
In other business, city commissioners approved three items that continue moving forward The Grove, a retiree-focused housing project north of Hays Medical Center.
Those included a low bid award of $3 million to Sporer Land Development, Oakley/Colby, for construction of street, water, storm water, sanitary sewer and other infrastructure improvements.
Commissioners signed a $100,438 construction engineering services agreement with Driggs Design Group, Hays, and approved the development agreement with Grow Hays.
Dirt work has begun on a portion of the project, including a new senior/child care/community center. There will also be an extension of the city's multi-use path from 22nd Street and the existing HaysMed path to the north of the Sternberg Museum of Natural History.
Also approved was a renewal agreement with Blue Cross Blue Shield of Kansas for a triple-option employee health insurance plan. The premium will increase by almost 13% in 2025.
"That's still well below the national average," Giebler said.
The city will continue providing up to $625 in employer match for employees’ health savings accounts.
Giebler, the commissioners and Toby Dougherty, city manager, recognized employees who have a combined 315 years of service to the city.
