HomeMy WebLinkAboutItem 06.gLakeville
Date: December 17, 2012
Item No.
Lakeville Convention and Visitors Bureau
2013 Budget
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Lakeville
Convention and Visitors Bureau 2013 budget.
Overview
The Lakeville Convention and Visitors Bureau Agreement require the Lakeville Chamber of
Commerce to submit to the City its annual operating budget for the Bureau on or before
August 15.
The proposed 2013 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
Supporting Information
f Letter of transmittal from Chamber of Commerce Executive Director
Den eller, Finance Dir ctor
Financial Impact: $ N/A budgeted: N/A Source: N/A
Related Documents (CIP, ERP, etc.):
Notes:
Page 2
Primary Issues to Consider
• Proposed budget compared to prior years actual
Expenses
Salary
Budget
Estimated
Actual
Payroll taxes and benefits
2013
2012
2011
Revenues
1,214
1,238
1,214
Grant revenue
-
10,643
1,150
Program revenue
154,100
151,462
151,411
Other revenue
600
840
349
Total revenues
154,700
162,945
152,910
Expenses
Salary
49,889
47,548
48,133
Payroll taxes and benefits
8,786
7,694
7,158
Pension
1,214
1,238
1,214
Total personnel
59,890
56,480
56,505
Accounting fees
2,900
3,102
3,019
Advisory Board meetings
1,900
1,565
884
Audit
5,500
6,032
4,775
Chamber Management Fees
7,705
7,573
7,566
Depreciation
1,800
600
1,418
Insurance
1.050
980
930
Office supplies
2,100
1,841
2,919
Postage
300
910
49
Rent
9,000
9,000
9,000
Supplies
300
199
204
Telephone
3,960
3,971
3,636
Other
620
318
299
Total operating expenses
37,135
36,090
34,699
Computer technology
1,000
1,199
323
Advertising
55,500
30,642
46,041
Business meetings
2,700
2,382
2,211
Education and seminars
5,740
2,649
1,145
Memberships
1,650
1,225
855
Postage
2,450
1,984
750
Printing
8,320
2,400
238
Production
950
32
Promotional
750
1,239
2,237
Trade show
2,750
1,500
-
Travel
5,200
3,773
3,861
Web -site
900
630
867
Total advertising
85,960
49,375
58,237
Total expenses
183,985
143,145
149,764
Change in net assets
2( 9,285)
19,800
3,146
Page 3
• Status of most significant revenue source - lodging tax - compared to prior
years.
Lodging
Increase/
Year
Tax
(decrease)
2013
Estimate
$ 154,100
2,638
2012
Estimate
$ 151,462
(2,030)
2011
Actual
153,492
21,440
2010 .
Actual
132,052
11,418
2009
Actual
120,634
(29,622)
2008
Actual
150,256
19,255
2007
Actual
131,001
45,549
2006
Actual
85,453
(9,293)
2005
Actual
94 745
X267`
i
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)
1999
Actual
130,348
5,764
1998
Actual
124,584
8,295
1997
Actual
116,289
m
December 11, 2012
LAKEVILLE AREA
CHAMBER OF COMMERCE
CONVENTION & VISITORS BUREAU
www.]akevillechambercvb.org
www.visitlakeville.org
The Honorable Mayor Mark Bellows
City of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044
Dear Mayor Bellows:
vtstT ILLL�
M INN ESOTA
s
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, October 16, 2012 with a recommendation for approval to the Board of Directors. The Board of
Director's approved the Budget on Tuesday, October 16, 2012.
Official action was taken at the Convention and Visitor's Bureau's Advisory Board meeting on
Wednesday, September 19, 2012 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, maps, and guides of the City to potential visitors and meeting planners.
F. Provide representation at the trade shows, conventions, and exhibits to 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 BOULEVARD, SUITE 101 • PIL 952- 469 -2020 • FAX: 952 -469 -2028 • LAKEVILLE, MN 55044
Projecting revenues for the 2013 CVB budget is a difficult task. The current state of the economy, along
with increase in the number of hotel rooms in the twin cities marketplace will continue to impact travel and
lodging tax receipts. Due to the uncertainty of when we might see an increase in occupancy, we have
budgeted flat in lodging tax receipts for 2013 based on the 2012 actual/ projected lodging tax receipts.
On the expense side, we have budgeted an increase of approximately $3,400,00 in payroll expenses. The
Tourism 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 2013. Operating expenses will increase by approximately $1,000.00, and advertising expenses
will increase by approximately $36,585.00 based on projected spending by the end of 2012. We are
projecting a deficit of $29,284.93 for 2013. 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 $29,000.00 for 2013 marketing has been recommended by the CVB
Advisory Board.
Please find enclosed a copy of the 2013 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. Bornhauser, Executive Director
Lakeville Area Chamber of Commerce &
Convention & Visitors Bureau
Cc: Dennis Feller'
Steve Mielke`
Karen Wentworth
Jeanne Hurter