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. Bornhauser, President
Lakeville Area Chamber of Commerce &
Convention & Visitors Bureau
Cc: Dennis Feller
City Administrator
Robert Curtis
Jeanne Hurter
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