Visitors bureau asks county to OK up to $1 million from reserves for new Kokomo conference center operations

The Howard County Convention & Visitors Bureau asked the county to approve a potential draw of up to $1,000,000 from its accumulated cash reserves to help cover startup operations for the Kokomo Conference Center and adjacent hotel in its first year of operation. Sherry Matlock, manager of the Convention and Visitors Bureau, told the council the CVB projects total 2026 expenses of $2,650,000, of which $722,500 is for CVB operations, $425,000 for debt service on bonds tied to the conference center and an estimated $1,300,000 for conference-center operations in the partial first year. Matlock said the CVB is funded entirely from the county innkeeper's tax and estimated $2.3 million in cash on hand, rising to an estimated $2.6 million by year-end. She said projected 2026 innkeeper-tax collections are $1,500,000. The CVB has been setting aside funds for the project since 2015 and increased annual set-asides after the innkeeper tax rate rose in 2019, Matlock said. She told the council the CVB has already made a $3,750,000 cash contribution to the project at groundbreaking and now expects to use reserves to cover early operating shortfalls as sales ramp up. Matlock said, "We would like to request approval to spend up to $1,000,000 of that CVB cash on hand to cover some of those projected expenses that we are projected to incur in '26." She described the request as a cautious, high-side planning number: the CVB budgeted conservatively for expenses and conservatively for revenue. Council members asked about likely sources of early bookings and the role of short-term rentals in tax collections. Matlock said Airbnb and similar short-term rental receipts are included in innkeeper's-tax collections; she estimated there are about 50 short-term rental properties in Howard County and said their tax contribution is considerably less than hotel receipts. When asked about incentives to attract initial conference bookings, Matlock said there were no formal promotional discounts planned but that the CVB was actively soliciting groups for opening-year events. The CVB also budgeted $425,000 for bond repayment in 2026 and a $50,000 annual sinking fund to protect bond payments in slow years. Matlock said the CVB expects conference-center operations to be a partial-year cost in 2026 and that final operating figures will be clearer once the facility opens and staffing and utility needs stabilize. The council did not take immediate action during the presentation; Matlock asked only for the council's approval to spend up to the requested $1,000,000 if the council agreed. The CVB provided the council with copies of its Form 1 budget and a CVB budget breakdown showing sales-and-marketing and operations detail. Why it matters: The conference center and hotel are intended to increase visitor spending and support downtown economic development, but the first one to two years of operations often require cash support. The CVB is proposing to use funds it set aside over years, but the council's approval would formalize a large one-time draw from local reserves and affect county cash balances. Discussion points: CVB funding sources and projected 2026 innkeeper-tax receipts; the use of long-standing set-aside (reserves) versus annual innkeeper-tax revenue for first-year conference-center operations; whether short-term rentals are included in innkeeper tax collections; Directions/assignments: None recorded as a formal council directive at the time of the presentation; Matlock's request for approval of a reserve draw was presented to the council for consideration. Decisions: No formal vote recorded on the requested $1,000,000 draw during the session reported here.