HomeMy WebLinkAboutItem 06.r:1EWM I L c!v v al �Mlle
Date: December 16, 2013
Item No.
Lakeville Convention and Visitors Bureau
2014 Budget
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Lakeville
Convention and Visitors Bureau 2014 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 2014 budget has been reviewed and approved by the Lakeville Chamber of
Commerce and the Lakeville Convention and Visitors Bureau Board of Directors. The
proposed 2014 budget was submitted by the Chamber of Commerce and the Lakeville
Convention and Visitors Bureau Board of Directors on November 26.
Primary Issues to Consider
• Proposed budget compared to prior years actual
• Status of most significant revenue source - lodging tax - compared to prior years
• City Representation on CVB Board
Supporting -Information
• Letter of transmittal from Chamber of Commerce Executive Director
Denni ler, Fina ce Director
Financial Impact: $ N/A budgeted: N/A Source: N/A
Related Documents (CIP, ERP, etc.):
Notes:
Page 2
Primary Issues to Consider
0 Proposed budget compared to prior years actual
Budget
Estimate
Actual
Actual
2014
2013
2012
2011
Revenues
Grant revenue
-
-
5,643
1,150
Program revenue
162,515
160,929
160,564
151,411
Other revenue
100
370
825
349
Total revenues
162,615
161,299
167,032
152,910
Expenses
Salary
51,226
48,786
48,580
48,133
Payroll taxes and benefits
9,304
8,921
7,853
7,158
Pension
1,339
1,275
1,238
1,214
Total personnel
61,870
58,983
57,671
56,505
Accounting fees
3,050
2,987
3,601
3,019
Advisory Board meetings
2,000
1,930
2,606
884
Audit
6,000
5,522
4,657
4,775
Chamber Management Fees
8,126
8,016
7,885
7,566
Depreciation
1,800
1,800
1,174
1,418
Insurance
1,100
1,150
980
930
Office supplies
2,200
2,186
2,647
2,919
Postage
300
637
959
49
Rent
9
9
9,000
9
Supplies
300
314
204
Telephone
3,480
4,381
4,524
3,636
Other
620
619
51
299
Total operating expenses
37,976
38,542
38,083
34,699
Computer technology
1,000
596
1,498
323
Advertising
44,100
56,197
56,783
46,041
Business meetings
3,000
2,709
3,162
2,211
Contests /Awards /Gifts
1
854
-
Education and seminars
4,890
4,868
204
1,145
Memberships
900
1,600
1,080
855
Postage
2,450
2,458
1,344
750
Printing
2,320
8,350
350
238
Production
32
Promotional
1,500
713
2,237
Trade show
2,200
1,000
-
Travel
5,200
5,224
2,720
3,861
Web -site
3,000
1,524
867
Total advertising
70,560
85,497
65,643
58,237
Total expenses
171,405
183,618
162,895
149,764
Change in net assets
(8,790)
(22,319)
4,136
3,146
Page 3
• Status of most significant revenue source - lodging tax - compared to prior
years.
• City representation. City representation on the CVB Board include
o Council Member LaBeau
o Park and Recreation Director Altergott
Lodging
Increase/
Year
Tax
(decrease)
2014
Estimate
$ 162,515
1,586
2013
Estimate
160,929
365
2012
Actual
160564
9,153
2011
Actual
151,411
19,359
2010
Actual
132,052
11,418
2009
Actual
120,634
(29,622)
2008
Actual
150
19,255
2007
Actual
131,001
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)
1999
Actual
130,348
5,764
1998
Actual
124,584
8,295
1997
Actual
116,289
• City representation. City representation on the CVB Board include
o Council Member LaBeau
o Park and Recreation Director Altergott
tA;m�Ic
December 2, 2013
LAKEVILLE AREA
CHAMBER OF COMMERCE
CONVENTION & VISITORS BUREAU
www.lakevillechambercvb.org
www.visitlakeville.org
The Honorable Mayor Matt Little
City of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044
Dear Mayor Little:
VISIT o
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 17, 2013 with a recommendation for approval to the Board of Directors. The Board of
Director's approved the Budget on Tuesday, September 17, 2013.
Official action was taken at the Convention and Visitor's Bureau's Advisory Board meeting on
Wednesday, August 21, 2013 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 • PH.' 952- 469 -2020 • FAX: 952- 469 -2028 • LAKEVILLE, MN 55044
Projecting revenues for the 2014 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 a I% increase in lodging tax receipts for 2014 based on the 2013 actual/ projected lodging tax
receipts.
On the expense side, we have budgeted an increase of approximately $2,886.83 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 20I3. Operating expenses will decrease by approximately $500.00, and advertising expenses will
decrease by approximately $10,000.00 based on projected spending by the end of 2013. We are projecting
a deficit of $10,105.88 for 2014. 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 $10,000.00 for 2014 marketing has been recommended by the CVB Advisory Board.
Please find enclosed a copy of the 2014 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,
I/
Todd J. Bornhauser, President
Lakeville Area Chamber of Commerce &
Convention & Visitors Bureau
Cc. Dennis Feller
Steve MieIke
Sheila Longie
Jeanne Hutter