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HomeMy WebLinkAboutItem 06.gLakeville Date: September 15, 2014 Item No. Lakeville Convention and Visitors Bureau 2015 Budget Proposed Action Staff recommends adoption of the following motion: Move to approve the Lakeville Convention and Visitors Bureau 2015 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 2015 budget has been reviewed and approved by the Lakeville Chamber of Commerce and the Lakeville Convention and Visitors Bureau Board of Directors. The proposed 2015 budget was submitted by the Chamber of Commerce and the Lakeville Convention and Visitors Bureau Board of Directors on August 27. Primary Issues to Consider • CVB Programs and objectives. Refer to the letter from Chamber President Todd Bornhauser dated August 27, 2014. • Financial position. City is waiting for 2013 audit report from Chamber of Commerce. Based on 2012 Financial Report and the attached 2014 and 2015 financial information provided by the Chamber, the financial position remains strong. For 2015, revenues are projected to exceed expenditures by $1,620. • Status of most significant revenue source - lodging tax - compared to prior years. Revenues have remained strong and growing since 2009. See attached. • City Representation on CVB Board: Council Member LaBeau and Parks and Recreation Director Altergott Supporting Information • Letter of transmittal from Chamber of Commerce Executive Director — 7 - � en a er, Fi ce Director Financial Impact: $ N/A budgeted: N/A Source: N/A Related Documents (CIP, ERP, etc.): Notes: Page 2 Primary Issues to Consider ® Status of most significant revenue source - lodging tax - compared to prior years. Lodging Increase/ Year Tax (decrease) 2015 Estimate $ 170,500 3,313 2014 Estimate $ 167,187 227 2013 166,960 6,396 2012 Actual 160,564 9,153 2011 Actual 151,411 19,359 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 (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 I.akecille Area hamber of erc.e August 27, 2014 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: L aa V I siffl 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 Board of Directors approved the Budget on Tuesday, August 26, 2014. Official action was taken at the Convention and Visitor's Bureau's Advisory Board meeting on Wednesday, August 20, 2014 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 2015 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 2% increase in lodging tax receipts for 2015 based on the 2014 actual/ projected lodging tax receipts. On the expense side, some significant changes were made concerning staffing which will result in an increase of approximately $14,613.40 in payroll expenses. The Tourism Marketing Director will now work 5 days a week for the CVB and the Executive Director of the Lakeville Area Chamber of Commerce and Convention & Visitors Bureau's salary expense will be eliminated. Operating expenses will decrease by approximately $1,382.87, due to the reduction in the management fee from 5% to 4 %, and advertising expenses will decrease by approximately $11,920.00 based on projected spending by the end of 2014. We are projecting a surplus of $1,619.55 for 2015. Please find enclosed a copy of the 2015 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, ' �' ` e� / I L Y& "r �^ Todd J. 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