Finance presents division overview; commission hears arena fund mechanics, WSU 1.5‑mill levy and economic development funding

Finance Director Lindsay (presenting for the division) reviewed the division’s organization, near‑full staffing and responsibilities including budget, accounting, payroll, purchasing, risk management and the new grants compliance unit. She said the division faces recruitment pressures for specialized analyst roles and noted software and GASB reporting changes that will increase complexity. On the arena, Finance reviewed the ASM Global management agreement: the operator earns the first portion of operating income as its management fee (described during the presentation as the first ~$400,000 of operating income), then operating net proceeds are split 50/50 with the county. A $1.50 facility fee on eligible tickets is collected and paid to the county; the county currently matches that revenue dollar‑for‑dollar to fund arena CIP. The agreement includes an automatic five‑year extension if the operator reaches a performance threshold (referenced in the presentation as $1.7 million), and Finance said the contract runs through 2032 and could auto‑extend to 2037 if the threshold is met. On Wichita State University, Finance explained the historical 1.5‑mill levy that was carried when WSU became a state university and the 1987 local agreement allowing WSU trustees to allocate proceeds. Finance noted Sedgwick County is responsible for collecting the 1.5 mills and remitting proceeds (the presentation showed a budgeted WSU payment of about $12.3 million for 2026) and cautioned that the way the 1.5 mill operates can affect the county’s revenue‑neutral calculations: when assessed value rises, WSU’s 1.5 mills capture that growth and the county must offset its own levy to remain revenue neutral, effectively shifting the county’s available operating revenue. Finance also described the economic development program (a contractual/contractual funding line inside the general fund), an economic development analyst position funded through that program, and a contractual request restored to $1.7 million for 2026. The division requested no decision packages but flagged contingency and bond/debt issues for CIP discussions next week. Finance noted federal tax‑policy proposals affecting tax‑exempt municipal bonds would increase local interest costs if enacted and urged local voices to weigh in. Commissioners asked for more historical detail about BOCC contingency uses and discussed the interplay of debt levies, CIP and the recent ARPA/mental‑health hospital encumbrances that influence fund balances.