Meeting Intelligence Preview
Meeting Summary
The Council Budget & Special Projects Committee discussed a proposed hotel guest tax increase from the current 5% to approximately 9.25%, which would generate over $8 million annually for convention facilities, tourism marketing, and economic development. The committee debated whether to set a specific rate or present a range (9-10%) at the March 30 town hall at OU Tulsa, with consensus that the rate should not exceed 10%. Separately, the committee reviewed charter amendments for longevity pay, agreeing to extend the years of service cap from 20 to 30 years to align with state provisions, while seeking more information on whether to maintain a floor amount.
Key Decisions (2)
Hotel Guest Tax Town Hall Planning
Committee agreed to hold a public town hall on March 30 at OU Tulsa to educate residents about a proposed hotel guest tax increase. The current rate is approximately 5%, with proposals to increase to 9.25% or higher (not exceeding 10%). The increase would generate $8+ million annually for BOK Center and Harvest Convention Center improvements, tourism marketing via Visit Tulsa, and economic development.
Charter Amendment - Longevity Pay Years of Service
Committee reached consensus to extend the longevity pay years of service cap from 20 to 30 years to align with state retirement provisions. The current charter provision of $7.50 per month (set in 1962) was deemed irrelevant as negotiated amounts are significantly higher. Committee requested more information from police and fire personnel before deciding whether to maintain a floor amount or leave entirely to collective bargaining.
Development Activity (2)
BOK Center Improvements
Major facility updates needed since opening in 2008; part of $77 million improvement gap for BOK Center and Harvest Convention Center combined; potential revenue bond financing from hotel tax increase
Harvest Convention Center Improvements
Roof work and other improvements needed; facilities generate $143 million combined economic impact; some fund balance available to begin roof work immediately
Market Signals (5)
Commercial Demand
Tourism is Oklahoma's third largest employment category, supporting 16,000 jobs in Tulsa, indicating strong hospitality sector demand.
Commercial Demand
Convention and event bookings are being lost to competitor cities including Oklahoma City, Wichita, Kansas City, Bentonville, and Dallas due to insufficient hotel room inventory and facility capacity.
Infrastructure
BOK Center has had no major updates since 2008 opening, creating competitive disadvantage for attracting large conventions and events.
Sentiment
Business leaders at Brookside merchants meeting were highly supportive of hotel tax increase once educated that it does not affect residents and hasn't been raised in 50 years.
Commercial Demand
City is positioned to attract mid-tier conventions that find coastal cities too expensive, with hotel rates around $350/night in Tulsa versus coastal markets.