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Home My WebLink AboutItem 06.g1 Date: N'ovembcr 21, 2011 Item No. Lakeville Convention and Visitors Bureau 2012 Budget Proposed Action Staff recommends adoption of the following motion: Move to approve the Lakeville Convention and Visitors Bureau 2012 budget. Overview The Lakeville Convention and Visitors Bureau Agreement requires the Lakeville Chamber of Commerce to submit to the City its annual operating budget for the Bureau on or before August 15. The proposed 2012 budget has been reviewed and approved by the Lakeville Chamber of Commerce and the Lakeville Convention and Visitors Bureau Board of Directors. Primary Issues to Consider • Proposed budget compared to prior years actual • Status of most significant revenue source — lodging tax — compared to prior years n r: • Letter of transmittal from Chamber of Commerce Executive Director • Lakeville Convention and Visitors Bureau 2012 Budget Dennis Feller, Finamte Director Financial Impact: S N/A budgeted: N/A Source: N/A Related Documents (CIP, ERP, etc.): N otes: Page 2 Primary Issues to Consider • Proposed budget compared to prior years actual Expenses Salary Budget Estimated Actual Payroll taxes and benefits 2012 2011 2010 Revenues 1275 1,214 1,190 Grant revenue 5,000 8,911 3,131 Program revenue 145,100 145.495 132,052 Other revenue 600 879 778 Total revenues 150,700 155.285 135,961 Expenses Salary 48,946 46,616 45,823 Payroll taxes and benefits 7,665 7,216 6,716 Pension 1275 1,214 1,190 Total personnel 57,886 55,046 53,729 Accounting fees 2,900 2,826 975 Advisory Board meetings 1,600 1,141 857 Audit 5,500 5,200 4,000 Chamber Management Fees 7,255 7,270 6,603 Depreciation 1,800 1,781 1,905 Insurance 975 930 930 Office supplies 2,100 2,121 3,056 Postage 300 169 198 Rent 9.000 9.000 9.000 Supplies 300 261 0 Telephone 1 , 1 x0 3 ,876 3,873 Other 620 491 0 Total operating expenses 36.010 35.066 31,397 Computer technology 1.000 170 929 Advertising 59,100 40,616 33,939 Brochures - - - Business meetings 2,100 2,071 2,573 Education and seminars 3,140 1,145 2,690 Memberships 1,300 1,300 980 Postage 2,450 2,306 - Printing 2,320 3,238 - Production 1,000 982 - Promotional 1-600 520 - Trade show 2,750 1,600 - Travel 3,800 3.604 3.150 Web -site 600 620 603 Total advertising 80 -160 58.002 44.025 rotal expenses 175,056 J48284 130.080 Change in net asset 24,356 7.001 5,881 Page • Status of most significant revenue source — lodging tax — compared to prior years. Lodging Increase/ Year Tax (decrease) 2012 Estimate $ 145,100 $ (395) 2011 Estimate 145,495 13,443 2011 Budget 120,700 (11,352) 2010 Actual 132,052 11,418 2009 Actual 120,634 (29,622) 2008 Actual 150,256 19,255 2007 Actual 131 45,549 2006 Actual 85,453 (9,293) 2005 Actual 94,745 (267) 2004 Actual 95,012 (318) 2003 Actual 95,331 (14,628) 2002 Actual 109,959 (5,342) 2001 Actual 115,301 (7,357) 2000 Actual 122,658 (7,690) W November 14, 2011 LAKEVILLE AREA CHAMBER OF COMMERCE COAVEN71ON & VISITORS BUREAU www.lakevillechambercvb.org www.visitlakeville.org The Honorahle Mayor Mark Bellows City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Dear Mayor Bellows: v1S!T /1 ` �il _ v MINNESOTA In accordance with the Agreement made between the City of Lakeville and the Lakeville Area Chamber of Commerce, conducting and operating a division of the Chamber, the Convention and Visitors Bureau, paragraph 6. BUDGET The Chamber shall submit its annual operating budget for the Bureau for approval by the city on or before September of each year. Such budget shall detail the uses to which funds shall be spent to provide the services described in paragraph 2 -2 of this Agreement. The Agreement shall not be implemented or be effective until such budget has been approved by the City. The Lakeville Area Chamber of Commerce's Executive Committee approved the enclosed budget on 'Tuesday, September 20, 2011 with a recommendation for approval to the Board of Directors. The Board of Director's approved the Budget on, Tuesday, September 20, 2011. Official action was taken at the Convention and Visitor's Bureau's Advisory Board meeting on Wednesday, August 24, 2011 to approve the Budget as presented. The Budget provides for funding to support the following services: A. Informational services in answering inquiries about the City, including annual festivals and other community events, via mail, telephones and personal contacts. B. Provide conference planning, coordination and registration assistance to organizations and businesses. C. Supply convention support material. D. Prepare and present presentations to groups to attract visitors to the City_ E. Distribute brochures, marts. and guides of the < ity to potential visitors and meeting, planners. F. Provide representation at the trade shows, conventions, and exhibits t:o attract new visitors to the City. G. Promote the city as a convention center for Minnesota by regional and statewide advertising of the City's hospitality industry and attractions. 19950 DODD BOULEV.9RD, SUITE 101 o PH: 952 -469 -2020 • M. 952- 469 -2028 o LAKEVILLL. MN 55044 Projecting revenues for the 2012 CVB budget is a difficult task. The current economic slowdown is continuing to impact travel and lodging tax receipts. Due to the uncertainty of when we might see an economic upturn, we have budgeted flat in lodging tax receipts for 2012, based on the 2011 actual/ projected lodging tax receipts. On the expo...,.. side, we have budgeted an increase of approximately $2 in payroll expenses. The Tow ism Marketing Director will continue to work 4 days a week and the Executive Director of the Lakeville Area Chamber of Commerce and Convention & Visitors Bureau's salary expense will stay at 10% for 2011. Operating expenses will increase by approximately $950.00, and advertising expenses will increase by approximately $12.000.00 based on projected spending by the end of 2011. We are projecting a deficit of $24,356.44 for 2012. This will allow the CVB to spend some of it's approximately $60,000 in reserves, which has been accumulated over the years to assist the organization during tough economic periods. The use of $24,000.00 for 2012 marketing has been recommended by the CVB Advisory Board. Please find enclosed a copy of the 2012 Convention & Visitor Bureau budget, along with spreadsheets highlighting the marketing and payroll costs. Thank you for your continued support. If you have any questions concerning the budget, please feel free to contact me. Sincerely, Todd J. Borahauser, Executive Director Lakeville Area Chamber of Commerce & Convention & Visitors Bureau Cc: Dennis Feller Steve Mielke Bruce Rydeen Jeanne Hatter lig! in id to, 7 Wall l i 19 8 :1 a M WS w S �4 e I Ri a M li 1 oil loll !in 1 41.11 NO -1- wi-i. I . T i ... RIN -V - 11, 10 H it i a p 11 !M P R I J , 10 11 :P� 5� " J-1. 111i 1 -L I -l-i I 41'" - 166 L 1 A �� , '1 *111 1 - 1 8, , d m s pi 1 r:7 i F � loiq 1 x1 1 _1i i 11 L Y IS 88 ip, 1 t A 8 8 �8 8 8 in LQ - � � � IE gl i � i not sit is j!"! � rp E ll P, 'I A Fit on, Jill: I ` B Er BI A ME Ri isi , " 11 , ill 1 - i 1 L JJ W M JR1 _wj 1 ----- - L w 9 pf I 8 w-1:. 8 81X1 8 1 .4 i V wi -1. 101 m Tw I Ell 4. 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