HomeMy WebLinkAboutItem 06.gDate: November 15, 2010
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Lakeville Convention
and Visitors Bureau 2011 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 2011 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
• Letter of transmittal from Chamber of Commerce Executive Director
• Lakeville Convention and Visitors Bureau 2011 Budget
Finance Director
Lakeville Convention and Visitors Bureau
2011 Budget
Financial Impact: $ N/A budgeted: N/A Source: N/A
Related Documents (CIP, ERP, etc.):
Notes:
Item No.
Page 2
Primary Issues to Consider
• Proposed budget compared to prior years actual
Budget Estimated Actual
2011 2010 2009
Revenues
Grant revenue 5,000 8,131 3,522
Program revenue 120,700 119,786 120,634
Other revenue 600 937 1,607
Total revenues 126,300 128,854 125,763
Expenses
Salary 44,993 42,703 45,823
Payroll taxes and benefits 10,148 10,231 6,962
Pension 1,214 1,190 1,190
Total personnel 56,355 54,124 53,975
Accounting fees 1,250 1,156 1,113
Advisory Board meetings 1,600 1,338 713
Audit 4,200 4,000 4,240
Chamber Management Fees 6,035 5,989 6,032
Depreciation 1,800 1,393 2,030
Insurance 950 930 930
Office supplies 1,560 1,551 2,224
Postage 300 188 161
Rent 9,000 9,000 9,000
Supplies 300 186
Telephone 3,660 3,706 3,565
Other 630 618 -
Total operating expenses 31,285 30,055 30,008
Computer technology 281 350
Advertising 32,825 28,606 32,399
Brochures 3,000
Business meetings 1,800 1,994 2,169
Edication and seminars 3,290 2,745 1,455
Memberships 1,300 625 1,210
Postage 2,400 1,250
Printing 3,300 850 1,674
Production 1,000 1,150 375
Promotional 500 1,043
Trade show 1,850 1,250
Travel 4,250 3,065 4,507
Web -site 600 992 1,303
Total advertising 53,115 46,570 45,092
Total expenses 140,755 131,030 129,425
Change in net assets (14,455) (2,176) (3,662)
Page 3
• Status of most significant revenue source — lodging tax — compared to prior
years.
Year
2011
2010
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
Estimate
Estimate
Budget
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Lodgin g
Tax
$ 120,700
119,786
126,900
125,864
150,256
131,001
85,453
94,745
95,012
95,331
109,959
115,301
122,658
130,348
Increase!
(decrease)
$ 914
(6,078)
1,036
(24,392)
19,255
45,549
(9,293)
(267)
(318)
(14,628)
(5,342)
(7,357)
(7,690)
5,764
November 3, 2010
The Honorable Mayor Holly Dahl
City of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044
Dear Mayor Dahl:
LA.KEVILLE AREA
CHAMBER OF COMMERCE
CONVENTION & VISITORS BUREAU
www.lakevillechambercvb.org
www.visitlakeville.org
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 August 15 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 21, 2010 with a recommendation for approval to the Board of Directors. The Board of
Director's approved the Budget on Tuesday, October 19, 2010.
Official action was taken at the Convention and Visitor's Bureau's Advisory Board meeting on
Wednesday, August 18, 2010 to approve the Budget as presented.
The Budget provides for funding to suppon 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 audiovisual presentations to groups to attract visitors to the City.
E. Distribute brochures, maps, and guides of the City to potential visitors and meeting planners.
E. 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 2011 CVB budget is a difficult task. The current economic slowdown is
continuing to impact travel and lodging tax receipts. Due to the uncertainty of when we might see an
economic upturn, we have budgeted a 0.007% increase in lodging tax receipts for 2011, based on the 2010
actual/ projected lodging tax receipts. On the expense side, we have budgeted an increase of approximately
$737.66 in payroll expenses. This includes a 2% increase in salaries for 2011. The Tourism Marketing
Manager 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 2011. Operating
expenses will increase by approximately $1.228.49. and advertising expenses will increase by
approximately $6,564.73 based on projected spending by the end of2010. We are projecting a deficit of
$12,961.66 for 2011. This will allow the CVB to spend some of it's approximately $30,000 in reserves,
which has been accumulated over the years to assist the organization during tough economic periods.
Please find enclosed a copy of the 2011 Convention & Visitor Bureau budget, along with spreadsheets
highlighting the marketing and payroll costs. We apologize for the delay in submitting the budget to the
city — delays cased by staff illnesses and cancelled meetings. Thank you for your continued support. If you
have any questions concerning the budget, please feel free to contact me.
Sincerely,
Cc: Dennis Feller
Steve Mielke
Gary Moore
Todd J. Bornhauser
Executive Director
Lakeville Area Chamber of Commerce &
Convention & Visitors Bureau
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