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September 16, 2019 Item No.________ CONVENTION AND VISITORS BUREAU 2020 BUDGET Proposed Action Staff recommends adoption of the following motion: Move to approve the Convention and Visitors Bureau 2020 budget. Overview Each year the Lakeville Convention and Visitors Bureau presents a budget for approval by the City Council. Attached is the proposed 2020 budget. It has been reviewed and approved by both the CVB Advisory Board and the Lakeville Area Chamber of Commerce Board of Directors. Primary Issues to Consider • Key issues relating to the 2020 budget are included in the attached submittal letter from Ms. Krista Jech, President of Lakeville Area Chamber of Commerce. • Supporting Information • Proposed 2020 CVB Budget Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Diversified Economic Development Report Completed by: Jerilyn Erickson, Finance Director N/A General Fund September 13, 2019 The Honorable Mayor Doug Anderson City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Dear Mayor Anderson: Action was taken at the Lakeville Convention and Visitors Bureau’s Advisory Board meeting on Wednesday, August 21, 2019 to approve the budget. The Lakeville Area Chamber of Commerce Board of Directors officially approved the CVB budget, via electronic action by consent on Monday, September 9, 2019. The aforementioned budget provides funding that supports Lakeville’s economic climate to: A. Brand and promote the City of Lakeville as a tourism destination in Minnesota. B. Develop marketing campaigns providing content on our City amenities and recreation and neighboring attractions. C. Partner with local, regional and statewide tourism organizations, local attractions, our city’s hotels and hospitality industry businesses. D. Network with hospitality related businesses, associations and marketing organizations to promote our city and lodging properties. E. Provide interested tourists, groups, planners and corporate businesses information and services. F. Answer inquiries about hotels, Lakeville’s hospitality industry businesses and services, annual festivals and community events. G. Produce brochures, maps and guides of the city to potential visitors and meeting/event planners as well as updating website. H. Supply convention and event support materials. I. Provide assistance for conference planning, group coordination and support to organizations and businesses. J. Provide representation at trade shows and conventions to attract new visitors to Lakeville. Page 2 September 13, 2019 Highlights and changes made to the 2020 budget from previous years are outlined below. 1. Income: A 3% increase in lodging tax has been budgeted for 2020. Although a 6th hotel is opening autumn of 2019 and should impact our 2020 CVB budget to the positive, the Advisory Board feels projecting for a conservative 3% increase of total lodging tax collections is a desired approach based on the criteria below. If the lodging tax starts to come in above the 3% projection, the Chamber will submit an amended budget to the City. Lodging tax collections from existing hotel properties may be reduced due to the new Hampton Inn, a Hilton property, taking their market share due to Hilton’s strong loyalty program, and customer enthusiasm for a “brand new” hotel. Some hotels are projecting 2020 room rates to decrease in order to compete with the new hotel, as well as concern of a recession. Comparisons to last Lakeville hotel opening in 2016: When Candlewood Suites entered our market, several factors contributed to long-term stay rentals, resulting 20% increase in lodging tax revenue. Long-term rentals, which included Amazon, PGA, Chart Project, Nurses Strike, and FedEx are no longer in effect. Candlewood Suites, an extended stay facility, is not currently selling many rooms at the 30+ night stay as is essential for profitability. They are currently competing for the same market share as our other Lakeville hotels including what the new Hampton will also desire. For this reason, the extended stay hotel’s lodging tax collections are up which may look like a positive, but in reality not renting 30 day plus rooms means the Candlewood is taking market share from our other Lakeville hotels. As technology continues to improve, there are less meeting and business travelers. Many companies are shifting to Web-X meetings and holding maybe one or two large meetings a year. Lack of airport transportation is forcing travelers to consider other communities’ hotels that do offer it. 2. Personnel Expense: With no change in health benefits and a 3% payroll increase for 2020, there is minimal change in personnel expenses. A maximum $2,000 incentive based, year-end bonus, based on lodging tax revenue increase was approved by the Chamber Board. The approved plan is included as a supporting document. 3. Operations & Equipment Expenses: A $1,000 budget was added for 2020 in the anticipation of purchasing some updated computer equipment. 4. Advertising Expenses: The CVB continues to focus on social media and digital marketing avenues including video and less in print advertising during 2020. 5. The CVB continues to maintain a ratio of over 51% ($134,760 of $259,605.67) in expenses going directly into advertising. The year 2020 will see another approximately $10,000 increase in advertising spending over 2019. Page 3 September 13, 2019 6. Lakeville’s co-op contributions for 2020 are $13,000. However, leveraging our advertising partnerships both regionally and state-wide, the value of our dollars stretch from approximately $130,000 to approximately $350,000. Please find enclosed a copy of the 2020 Convention & Visitor Bureau budget, along with spreadsheets highlighting the marketing and payroll costs. After the Chamber’s October Board Meeting, we will forward to you the approved 2020 CVB Advisory Board of Directors. Thank you for your continued support. If you have any questions concerning the budget, please feel free to contact Jeanne Hutter, our Vice President and Director of Tourism for Visit Lakeville, or myself. Sincerely, Krista Jech Krista Jech President Lakeville Area Chamber of Commerce and Tourism Cc: Jerilyn Erickson Justin Miller Loren Solfest Jamie Dahlen Jeanne Hutter Jim Kretsch Revenues - 2020 2020 Budget 2019 Budget 2018 Actual 2017 Actual 2016 Actual 2015 Actual 2014 Actual 2013 ACTUAL 2012 ACTUAL 2011 ACTUAL 2010 ACTUAL 2009 ACTUAL 2008 ACTUAL 2007 ACTUAL 2006 ACTUAL Actual/Budget Interest Income 300.00$ 165.00$ 298.93$ 149.38$ 122.19$ 154.17$ 198.58$ 206.83$ 424.72$ 349.11$ 969.42$ 836.36$ 910.15$ 110.45$ 82.34$ Lodging Tax - 3% increase 252,805.67$ 243,700.63$ 238,668.26$ 243,360.19$ 204,210.27$ 187,567.89$ 175,227.86$ 166,960.62$ 157,691.54$ 151,410.63$ 130,245.97$ 122,895.10$ 150,256.32$ 112,238.10$ 92,286.23$ Miscellaneous/Other Revenue -$ -$ -$ -$ -$ -$ 400.00$ EMT Grants 6,500.00$ 6,500.00$ 5,217.00$ 5,344.00$ 8,949.00$ 5,353.33$ 1,150.00$ 5,642.80$ 1,150.00$ 3,130.70$ 3,521.90$ TOTAL REVENUES 259,605.67$ 250,365.63$ 244,184.19$ 248,853.57$ 213,281.46$ 193,075.39$ 176,576.44$ 167,167.45$ 164,159.06$ 152,909.74$ 134,346.09$ 127,253.36$ 151,166.47$ 112,348.55$ 92,368.57$ EXPENSES - 2019 2020 Budget 2019 Budget 2018 Budget 2017 Actual 2016 Actual 2015 Actual 2014 Actual 2013 ACTUAL 2012 ACTUAL 2011 ACTUAL 2010 ACTUAL 2009 ACTUAL 2008 ACTUAL 2007 ACTUAL 2006 ACTUAL 401K Employer Expenses 2,021.78$ 1,962.89$ 2,050.29$ 1,950.36$ 1,934.46$ 1,924.80$ 1,313.64$ 1,275.24$ 1,238.16$ 1,213.80$ 1,190.16$ 1,190.16$ 1,166.76$ 1,111.20$ 1,058.28$ Payroll Tax Social Security 4,399.47$ 4,271.33$ 4,237.27$ 4,030.68$ 3,997.87$ 4,102.20$ 3,042.28$ 2,928.09$ 2,888.56$ 2,759.24$ 2,738.66$ 2,718.82$ 2,735.26$ 2,682.88$ 2,544.60$ Payroll Tax Medicare 1,029.59$ 999.60$ 990.99$ 941.76$ 934.99$ 959.39$ 711.49$ 684.73$ 675.49$ 645.30$ 640.56$ 635.90$ 639.67$ 627.40$ 597.63$ Payroll Tax FUTA 55.00$ 55.00$ 42.00$ 42.00$ 42.00$ 42.00$ 42.67$ 37.98$ 39.49$ 50.22$ 44.73$ 50.40$ 50.40$ 50.38$ 85.68$ Payroll Tax SUTA 359.54$ 349.07$ 44.81$ 64.00$ 62.00$ 60.00$ 65.80$ 173.64$ 170.88$ 168.74$ 167.67$ 113.98$ 112.50$ 214.12$ 241.10$ Health Insurance Stipend 3,930.00$ 3,930.00$ 3,930.00$ 3,930.00$ 3,930.00$ 3,602.50$ 5,390.57$ 5,101.32$ 3,986.96$ 3,534.16$ 3,122.56$ 3,443.02$ 3,014.50$ 3,256.14$ 3,445.32$ Dental Insurance - Employer 840.00$ 749.40$ 1,327.40$ 780.84$ 830.17$ 672.41$ -$ -$ -$ -$ Wages - Jeanne 3% Increase 67,392.71$ 65,429.82$ 62,913.36$ 61,080.96$ 59,301.84$ 57,474.56$ 43,785.96$ 42,510.72$ 41,272.56$ 40,463.28$ 36,809.84$ 36,080.64$ 33,054.89$ 36,435.06$ 34,217.64$ Other Payroll Expense 480.00$ 660.00$ 720.00$ 720.00$ 660.00$ 630.00$ -$ -$ -$ Wages President -$ -$ -$ -$ -$ -$ 6,644.20$ 6,275.75$ Wages - Bonus 2,000.00$ -$ 500.00$ 500.00$ 500.00$ 500.00$ 1,000.00$ 1,500.00$ 1,031.81$ 1,517.37$ Total Personnel Expenses 82,508.10$ 78,407.11$ 76,756.12$ 74,040.60$ 72,193.33$ 69,967.86$ 61,996.61$ 60,487.47$ 51,303.91$ 50,352.11$ 44,714.18$ 44,232.92$ 40,773.98$ 44,377.18$ 42,190.25$ Accounting Fees 3,600.00$ 3,600.00$ 2,884.75$ 2,384.80$ 2,648.25$ 3,460.05$ 3,556.20$ 3,083.75$ 3,600.75$ 3,018.65$ 975.00$ 1,112.50$ 975.00$ 1,800.00$ 1,699.40$ Advisory Board Mtgs/Exec Mtgs 3,500.00$ 4,200.00$ 2,451.35$ 3,187.47$ 1,729.81$ 1,529.51$ 1,941.41$ 3,631.55$ 2,605.64$ 883.53$ 4,856.00$ 712.72$ 854.77$ 826.71$ 524.59$ Audit Expense 8,000.00$ 7,000.00$ 8,132.00$ 6,993.00$ 6,934.35$ 6,530.10$ 6,992.20$ 5,271.85$ 4,656.75$ 4,775.05$ 4,000.00$ 4,240.00$ 4,190.00$ 3,750.00$ 3,500.00$ Bank Service Charges 50.00$ 60.00$ -$ 60.00$ 60.00$ 120.00$ -$ -$ -$ -$ -$ -$ 133.91$ 15.00$ 15.20$ Chamber Management Fee 4%10,112.23$ 9,679.01$ 9,886.33$ 9,734.42$ 8,125.49$ 7,502.71$ 8,764.94$ 8,317.29$ 7,884.58$ 7,566.03$ 6,512.29$ 6,144.75$ 7,512.82$ 5,611.88$ 4,614.29$ Depreciation -$ -$ -$ -$ -$ 319.74$ 389.93$ -$ 442.45$ 1,418.17$ 1,905.72$ -$ 300.00$ 75.00$ Insurance-Directors 500.00$ 500.00$ 480.00$ 471.00$ 450.00$ 454.00$ 437.00$ 375.00$ 355.00$ 330.00$ 330.00$ 330.00$ 325.00$ 716.00$ 350.00$ Insurance-Workmans Com 450.00$ 680.00$ -$ 600.00$ 588.88$ 400.00$ 375.00$ 425.00$ 300.00$ 275.00$ 275.00$ 275.00$ 250.00$ 225.00$ 202.00$ Insurance-Buld & Contents 680.00$ 325.00$ -$ 423.00$ 258.16$ 333.15$ 350.00$ 350.00$ 325.00$ 325.00$ 325.00$ 325.00$ 300.00$ 281.00$ 305.75$ Office Supplies 1,500.00$ 1,800.00$ 124.74$ 463.84$ 564.45$ 1,552.50$ 1,685.83$ 2,251.12$ 1,562.15$ 2,918.95$ 2,330.59$ 1,596.03$ 1,443.39$ 1,517.74$ 1,622.95$ Rent 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 9,000.00$ 8,875.14$ 8,815.14$ Supplies 250.00$ 300.00$ 3.98$ 35.88$ 168.75$ 138.65$ 126.99$ 149.10$ 158.96$ 204.43$ 118.27$ 192.48$ 179.32$ 208.45$ 247.52$ Telephone/Internet 1,700.00$ 1,860.00$ 1,536.04$ 2,294.00$ 2,097.81$ 2,220.00$ 2,192.70$ 2,352.27$ 2,268.86$ 2,102.65$ 2,092.44$ 2,064.94$ 1,865.54$ 1,925.41$ 1,851.43$ Telephone - Cell 1,100.00$ 1,020.00$ 1,014.48$ 931.95$ 1,307.22$ 947.64$ 1,003.75$ 1,913.58$ 2,255.17$ 1,533.79$ 1,782.06$ 1,500.00$ 1,110.92$ 922.74$ 894.40$ Other Expense -$ -$ 16.07$ -$ (123.87)$ 676.16$ 494.80$ 289.71$ 303.54$ 298.82$ 607.26$ 435.67$ 224.80$ 490.42$ 610.79$ Total Operations Expenses 40,442.23$ 40,024.01$ 35,529.74$ 36,579.36$ 33,809.30$ 35,184.21$ 37,310.75$ 37,410.22$ 35,718.85$ 34,650.07$ 35,109.63$ 27,929.09$ 28,365.47$ 27,465.49$ 25,328.46$ Computer Technology 1,000.00$ -$ 916.29$ 426.85$ 1,756.49$ 457.87$ 650.46$ 622.37$ 1,497.76$ 323.11$ 929.39$ 349.69$ Office Equipment -$ -$ -$ -$ -$ -$ -$ 26.68$ Maintenance & Repairs -$ -$ -$ -$ -$ -$ -$ 120.00$ 120.00$ Equipment Expense 1,000.00$ -$ 916.29$ 426.85$ 1,756.49$ 457.87$ 650.46$ 622.37$ 1,524.44$ 323.11$ 929.39$ 349.69$ -$ 120.00$ 120.00$ Advertising -99,895.00$ 95,000.00$ 89,145.74$ 85,349.61$ 79,280.08$ 69,053.89$ 62,277.01$ 63,872.83$ 54,738.92$ 46,040.98$ 32,530.91$ 28,506.30$ 38,407.25$ 15,842.28$ 15,290.00$ - MPLS SOUTH Co-op 8,500.00$ 8,500.00$ 8,500.00$ 8,500.00$ - EXPLORE MN Tourism 4,500.00$ 4,500.00$ 4,500.00$ 4,500.00$ - LAKEVILLE 86,895.00$ 82,000.00$ 84,687.00$ 72,349.61$ -$ -$ -$ -$ -$ -$ ADVERTISING -$ -$ -$ -$ -$ -$ Business Meetings 3,300.00$ 3,300.00$ 4,953.60$ 2,986.59$ 2,678.08$ 3,150.86$ 2,710.90$ 3,106.18$ 3,161.81$ 2,210.73$ 2,573.03$ 2,169.40$ 3,330.14$ 1,199.86$ 1,425.98$ Contests awards gifts 825.00$ 655.20$ 759.89$ 944.34$ (17.26)$ 565.85$ 104.00$ -$ -$ -$ Conferences/Education 7,550.00$ 4,850.00$ 1,153.00$ 2,514.41$ 2,230.69$ 910.20$ 1,834.00$ 2,073.00$ 204.00$ 995.00$ 1,395.00$ 2,750.00$ 1,725.00$ 1,169.00$ 180.00$ Event Sponsorships 2,100.00$ -$ 900.00$ 859.27$ 241.92$ 553.09$ -$ 150.00$ 516.98$ 258.47$ MarketingCC/DropBox 100.00$ 100.00$ -$ 125.00$ 775.36$ 382.89$ 389.00$ -$ 26.15$ Memberships 3,375.00$ 2,325.00$ 1,950.00$ 810.00$ 1,575.00$ 250.00$ 1,090.00$ 955.00$ 1,080.00$ 855.00$ 980.00$ 855.00$ 355.00$ 1,290.00$ 960.00$ Postage & Shipping Expense 1,500.00$ 1,100.00$ 1,141.48$ 1,816.32$ 267.70$ 1,153.50$ 885.21$ 368.00$ 1,344.15$ 750.00$ 6.05$ 5.65$ 778.98$ 300.00$ 300.00$ Printing 1,500.00$ 900.00$ 460.43$ 2,136.81$ 2,400.73$ -$ 242.89$ 2,255.30$ 350.45$ 237.80$ -$ 1,674.49$ 2,707.85$ 733.99$ 500.00$ Public Relations 900.00$ 1,000.00$ -$ Promotional Items 2,750.00$ 2,750.00$ 4,314.91$ 2,841.16$ 2,070.80$ 1,861.84$ 3,290.29$ 2,809.35$ 1,466.86$ 2,237.13$ 1,258.64$ 849.62$ 970.41$ 167.60$ 363.00$ Tour/Planners FAMs 650.00$ 600.00$ 6,571.38$ Trade Show Expense 3,015.00$ 6,350.00$ 2,065.08$ 823.73$ 12.85$ 1,870.66$ 900.00$ 300.00$ 441.78$ -$ -$ -$ 76.08$ 859.90$ Travel 6,700.00$ 6,300.00$ 3,557.22$ 5,045.80$ 3,613.63$ 3,397.11$ 4,738.76$ 2,818.80$ 2,719.89$ 3,861.27$ 3,150.31$ 4,506.90$ 4,557.16$ 2,003.19$ 1,910.05$ Web Site Hosting 600.00$ 600.00$ 600.00$ 600.00$ 140.00$ 508.00$ 688.57$ 1,943.71$ 2,241.25$ 866.96$ 691.70$ 1,303.00$ 189.95$ 70.00$ 110.00$ Advertising Expenses 134,760.00$ 125,175.00$ 117,468.04$ 106,668.59$ 96,231.18$ 83,074.78$ 79,612.48$ 80,606.17$ 67,749.11$ 58,204.87$ 42,585.64$ 43,163.49$ 53,021.74$ 23,110.47$ 21,898.93$ Total Expenses 258,710.32$ 243,606.12$ 230,670.19$ 217,288.55$ 202,233.81$ 188,226.85$ 178,919.84$ 178,503.86$ 154,771.87$ 143,207.05$ 122,409.45$ 115,325.50$ 122,161.19$ 94,953.14$ 89,417.64$ NET INCOME/(LOSS)895.35$ 6,759.51$ 13,514.00$ 31,565.02$ 11,047.65$ 4,848.54$ (2,343.40)$ (11,336.41)$ 9,387.19$ 9,702.69$ 11,936.64$ 11,927.86$ 29,005.28$ 17,395.41$ 2,950.93$ Advertising to total expense 52%50%48%43%45%43%45%48%41%38%32%34%35%21%24% Advertising Expense Increase 8%6.56%10.12%10.85%15.84%4.35%-1.23%18.98%16.40%36.68%-1.34%-18.59%129.43%5.53% Total Expense Increase 6%5.61%6.16%7.44%7.44%5.20%0.23%15.33%8.08%16.99%6.14%-5.60%28.65%6.19% Total Revenue Increase 4%2.53%-1.88%16.68%10.47%9.34%5.63%1.83%7.36%13.82%5.57%-15.82%34.55%21.63% 2018 CVB Actual / Budget ProjectionsRevenues - 2020 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER 2020 Budget Actual/Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Interest Income -$ -$ 75.00$ -$ -$ 75.00$ -$ -$ 75.00$ -$ -$ 75.00$ 300.00$ Lodging Tax - Flat 16,500.00$ 16,500.00$ 15,000.00$ 15,500.00$ 20,500.00$ 20,500.00$ 21,500.00$ 27,000.00$ 26,500.00$ 27,500.00$ 24,000.00$ 21,805.67$ 252,805.67$ Lodging Tax - New Hotel -$ -$ -$ -$ -$ -$ -$ -$ -$ Miscellaneous/Other Revenue -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ EMT Grants -$ -$ 6,500.00$ -$ -$ -$ -$ -$ -$ -$ -$ 6,500.00$ TOTAL REVENUES 16,500.00$ 16,500.00$ 21,575.00$ 15,500.00$ 20,500.00$ 20,575.00$ 21,500.00$ 27,000.00$ 26,575.00$ 27,500.00$ 24,000.00$ 21,880.67$ 259,605.67$ -$ EXPENSES - 2020 JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER -$ 401K Employer Expenses 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 168.48$ 2,021.78$ Payroll Tax Social Security 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 366.62$ 4,399.47$ Payroll Tax Medicare 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 85.80$ 1,029.59$ Payroll Tax FUTA 20.00$ 20.00$ 15.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 55.00$ Payroll Tax SUTA 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 29.96$ 359.54$ Health Insurance Stipend 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 327.50$ 3,930.00$ Dental Insurance - Employer 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 70.00$ 840.00$ Wages - Jeanne 4% Increase 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 5,616.06$ 67,392.72$ Other Payroll Expense 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 40.00$ 480.00$ Wages President -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Wages - Bonus -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,000.00$ 2,000.00$ Total Personnel Expenses 6,724.43$ 6,724.42$ 6,719.42$ 6,704.42$ 6,704.42$ 6,704.42$ 6,704.42$ 6,704.42$ 6,704.42$ 6,704.42$ 6,704.42$ 8,704.42$ 82,508.10$ Accounting Fees 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 300.00$ 3,600.00$ Advisory Board Meetings 200$ 200$ 200$ 200$ 200$ 200$ 200$ 1,700$ 400$ 3,500.00$ Audit Expense -$ -$ -$ -$ -$ -$ 5,000.00$ 2,000.00$ 1,000.00$ -$ -$ -$ 8,000.00$ Bank Service Charges -$ -$ 12.50$ -$ -$ 12.50$ -$ 12.50$ -$ -$ 12.50$ -$ 50.00$ Chamber Management Fee 4%660.00$ 660.00$ 600.00$ 620.00$ 820.00$ 820.00$ 860.00$ 1,080.00$ 1,060.00$ 1,100.00$ 960.00$ 872.23$ 10,112.23$ Depreciation -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Insurance-Directors 500.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 500.00$ Insurance-Workmans Com 450.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 450.00$ Insurance-Buld & Contents 680.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 680.00$ Office Supplies 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 125.00$ 1,500.00$ Rent 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 750.00$ 9,000.00$ Supplies 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 20.83$ 250.00$ Telephone/Cable 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 141.67$ 1,700.00$ Telephone - Cell 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 91.67$ 1,100.00$ Other Expense -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total Operations Expenses 3,719.17$ 2,289.17$ 2,241.67$ 2,249.17$ 2,249.17$ 2,461.67$ 7,289.17$ 4,721.67$ 3,689.17$ 2,729.17$ 4,101.67$ 2,701.39$ 40,442.23$ Computer Technology 1,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,000.00$ Office Equipment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Maintenance & Repairs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Equipment Expense 1,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,000.00$ Advertising -17,735.00$ 6,225.00$ 23,715.00$ 9,105.00$ 7,310.00$ 13,425.00$ 5,990.00$ 3,140.00$ 5,500.00$ 5,450.00$ 1,200.00$ 1,100.00$ 99,895.00$ - MPLS SOUTH Co-op 8,500.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 8,500.00$ - EXPLORE MN Tourism 4,500.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 4,500.00$ -$ -$ -$ -$ -$ -$ - LAKEVILLE 86,895.00$ 86,895.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Advisory Board meetings (old see above)-$ Business Meetings 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 275.00$ 3,300.00$ Contests/Awards/Gifts -$ -$ -$ -$ 825.00$ -$ -$ -$ -$ -$ -$ -$ 825.00$ Education & Conferences -$ 4,000.00$ 100.00$ 750.00$ 400.00$ 1,400.00$ -$ -$ 750.00$ 150.00$ -$ -$ 7,550.00$ Dropbox 100.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100.00$ Event Sponsorship 150.00$ -$ 250.00$ -$ 600.00$ 200.00$ -$ -$ 300.00$ -$ 600.00$ -$ 2,100.00$ Marketing Expense (old)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Memberships -$ -$ 1,495.00$ 700.00$ 530.00$ -$ -$ -$ 650.00$ -$ -$ -$ 3,375.00$ Postage & Shipping Expense 300.00$ -$ -$ 300.00$ -$ 300.00$ 300.00$ -$ -$ -$ 300.00$ -$ 1,500.00$ Printing 250.00$ -$ 400.00$ 250.00$ -$ -$ -$ 250.00$ -$ -$ 350.00$ -$ 1,500.00$ Public Relations 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 75.00$ 900.00$ Promotional Items 1,000.00$ -$ 1,000.00$ -$ -$ -$ -$ -$ -$ 750.00$ -$ 2,750.00$ Tour/Planners FAMs 100.00$ 100.00$ -$ -$ 100.00$ -$ 100.00$ -$ 100.00$ -$ -$ 150.00$ 650.00$ Trade Show Expense -$ -$ -$ -$ 1,000.00$ 800.00$ 515.00$ -$ -$ 600.00$ -$ 100.00$ 3,015.00$ Travel 150.00$ 750.00$ 550.00$ 200.00$ 150.00$ 1,250.00$ 1,500.00$ 150.00$ 1,150.00$ 500.00$ 200.00$ 150.00$ 6,700.00$ Web Site Hosting -$ -$ -$ -$ -$ 600.00$ -$ 600.00$ Advertising Expenses 105,020.00$ 5,200.00$ 4,145.00$ 2,550.00$ 3,955.00$ 4,300.00$ 2,765.00$ 750.00$ 3,300.00$ 2,200.00$ 2,550.00$ 750.00$ 134,760.00$ Total Expenses 115,463.59$ 14,213.59$ 13,106.09$ 11,503.59$ 12,908.59$ 13,466.09$ 16,758.59$ 12,176.09$ 13,693.59$ 11,633.59$ 13,356.09$ 12,155.82$ 258,710.33$ -$ NET INCOME/(LOSS)(98,963.59)$ 2,286.41$ 8,468.91$ 3,996.41$ 7,591.41$ 7,108.91$ 4,741.41$ 14,823.91$ 12,881.41$ 15,866.41$ 10,643.91$ 9,724.85$ 895.34$ Director of Tourism 2020 Incentive Program Previous Salary Increases 2015 2016 2017 2018 2019 2020 57,474.56$ 59,301.84$ 61,080.96$ 62,913.36$ 65,429.82$ 67,392.71$ 103%103%103%104%103% 2020 Lodging Tax Budget Budget Projection*Over Budget Over Projection 2019 243,700.63$ 245,442.00$ 101% 2020 252,805.26$ 104%103% *Based on Jan-July actual + Aug-Dec budget 2020 Incentive Program Incentive will be based solely on lodging tax revenue, as the Director of Tourism is responsible for spending marketing dollars in a way to attract business and leisure travelers, and wedding business, to our hotels and hospitality businesses. By increasing our "heads in beds" we increase the marketing dollars that allow us to continue to promote Lakeville as a destination. Minimum Minimum Over Budget Lodging Tax Over Budget 2020 Year End Bonus 110-114%278,086$ 25,281$ 1,000$ 115-119%290,726$ 37,921$ 1,500$ 120%+303,366$ 50,561$ 2,000$ This bonus plan is in lieu of any discretionary year end bonus that has been awarded in past. Compensation Comparable (990s) 2017 Revenue*2017 Salary % of Assets Burnsville CVB 363,853$ 73,591$ 20% Eagan CVB 949,854$ 87,153$ 9% Rochester CVB 2,506,697$ 107,124$ 4% 2020 Projections 2020 Projected % of Assets Lakeville 257,800$ 67,392.71$ 26% *Part 1, line 12 on 990s - Including Grants and Other Revenue Research Data on 2020 Salary Increase Projections Total U.S. Salary-Budget Increases Employee Category Projected 2020 Mean Projected 2020 Median Actual 2019 Mean Actual 2019 Median Nonexempt hourly, nonunion 3.30%3.00%3.20%3.00% Nonexempt salaried 3.20%3.00%3.10%3.00% Exempt salaried 3.30%3.00%3.20%3.00% Officers/exec utives 3.30%3.00%3.30%3.00% All 3.30%3.00%3.20%3.00% Source: WorldatWork 2019-2020 Salary Budget Survey: Top-Level Results. https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/2020-salary-budget-average-increase-just-above-3-percent.aspx 2019-2020 National Salary Budget Survey Reveals Increase Budgets Remain Flat at 3% for Ninth Straight Year Waltham, MA (July 9, 2019) – Salary.com, the leading SaaS provider of cloud-based compensation data and analytics, today released the results of its ninth annual U.S. and Canada National Salary Budget Survey – revealing, for the ninth year in a row, that median annual salary increase budgets are expected to remain flat at 3% for the upcoming year. https://www.salary.com/news-and-events/2019-2020-national-salary-budget-survey-three-percent-ninth-straight-year/