Transient Guest Tax committee reviews Q1 disbursement, proposes using 2027 rate increase to make cultural grantees whole

The Transient Guest Tax Committee met May 21 and received a first-quarter update on transient guest tax (TGT) disbursements, discussed a projected shortfall for four cultural grantees that receive 1% each of the TGT, and reviewed plans for downtown event programming and an ice-rink construction contract.

A staff member told the committee the city has received one TGT disbursement for 2026 and reviewed how the current 7% TGT is distributed: 1% each to four organizations (Jay-Hawk Theatre, EverG Plaza, Constitution Hall and the ice rink), with 5% to the city (of which 90% is distributed by GoPA). The presenter said, on a straight-line projection with no growth in demand, those 1% recipients could be about $116,000 short collectively over the measured period. The staff member characterized the number as a projection and urged caution.

Committee members discussed that a charter amendment raising the TGT to 8.5% will take effect Jan. 1, 2027, and estimated the extra 1.5% could yield roughly $600,000 annually at current occupancy levels (about $150,000 per quarter). Chair Murray McGee proposed prioritizing the newly available revenue to restore the four existing 1% commitments to their originally intended funding levels: EverG Plaza to $3,435,000; Jay-Hawk to $680,000; Constitution Hall to $355,000; and the ice rink to $180,000. Using current projections, the presenter gave facility-specific shortfall examples: EverG Plaza about $89,000; Jay-Hawk about $17,600; Constitution Hall about $9,000; and the ice rink a few thousand dollars. No formal vote was taken; members indicated general support and asked staff to notify the organizations and solicit their input.

Committee members also heard an operational update: a representative said the city signed a contract with a general contractor for the ice rink on Wednesday and that construction activity on the north end of the plaza would begin soon; staff are arranging a groundbreaking. EverG Plaza staff reported robust early-summer programming and said May had drawn over 10,000 visitors for Saturday events. Plaza staff cautioned that planned World Cup watch parties require FIFA licensing; if approved, those events would be open and free to the public and could not generate broadcast revenue.

A committee member raised accessibility concerns after hearing that some attendees—specifically people who use walkers—have had difficulty finding nearby handicapped parking for downtown events; the committee requested staff pay closer attention to accessible parking and event logistics.

The committee took no final action on how the 2027 TGT increase will be allocated; members agreed to continue discussions, present proposals to the full governing body, and return with recommendations. The meeting adjourned with routine scheduling and event updates.