Sedgwick County officials say INTRUST Bank Arena reserve is nearly depleted; staff proposes $2M annual transfer

Sedgwick County staff told commissioners on Nov. 18 that the INTRUST Bank Arena’s operating and maintenance reserve has dwindled to roughly $768,000, and recommended including a $2 million annual transfer from the county general fund into the arena reserve while longer-term options are considered.

Lindsay, the county’s contract administrator for the arena, reviewed the facility’s financing history and current management contract. County voters approved a sales tax in 2004 that raised about $206.5 million for construction and related costs; after construction and other expenditures, the county initially held roughly $15.5 million in an operating and maintenance fund. Under the current management agreement, identified in county documents as SMG (now operating nationally under the corporate name Legends Global), the manager retains the first $400,000 of operating income as its management fee and the remainder is split 50/50 with the county. Lindsay said the most recent five‑year CIP proposes $750,000 for 2026 and that a 20‑year summary in staff materials totals about $24.1 million (excluding emergency repairs and inflation).

"At the end of this last month, we were down to $768,000 in that reserve," Lindsay said, describing the rationale for a near‑term general‑fund transfer.

Her recommendation to staff was that the county include a recurring $2,000,000 transfer in the next financial forecast as a contingency to ensure funds are available for capital improvements and unexpected emergency repairs as the facility ages.

Commissioners discussed alternatives. Commissioner Howe said he opposes shifting the arena’s long‑term capital onto the property‑tax roll and urged exploring a sales‑tax replacement approach, citing staff calculations that the county’s 1% sales tax has historically offset several mills of property tax for residents. "I don't want to use property tax funds as a source for the arena," Howe said, advocating instead for a county sales‑tax proposal that, in his estimate, could generate funds to replace mill levy revenue and also provide a dedicated revenue stream for cultural and recreational facilities.

The board’s chair said the information was "received and filed" and emphasized caution about moving forward before learning whether the City of Wichita advances its own sales‑tax proposal; staff and commissioners agreed to continue discussing short‑ and long‑term options. Staff will include the $2 million transfer proposal in the next financial forecast and return additional analysis on revenue options and timing.

No formal vote was taken at the staff meeting; the item was presented for information and to solicit direction for further work.