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Home My WebLink About2011-113 Council Resolution• • Council MembePafferty introduced the following resolution and moved its adoption: CITY OF LINO LAKES RESOLUTION NO. 11- l l RESOLUTION APPROVING TWIN CITIES GATEWAY BUDGET FOR 2012 WHEREAS, the City of Lino Lakes approved the creation of Chapter 607 of the City Code Relating to a Tax Imposed upon Lodging on October 12, 2009; and WHEREAS, the Lodging Tax is to be used to support Twin Cities Gateway for the purpose of promoting and marketing the participating Member Cities; and WHEREAS, Article XV, Section 6 of the MN Metro North Tourism By -laws state that the annual budget of estimated income, income expense and capital expense shall be approved by the Board of Directors and submitted to a Member City's city council; NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lino Lakes that: The Lino Lakes City Council adopts this resolution supporting the Twin Cities Gateway budget for 2012. Adopted by the Lino Lakes City Council this 24th day of October, Jeff Rei e , ayor ATTEST: uli nne�Bartell J , Ci Clerk The motion for the adoption of the foregoing resolution was duly seconded by Council Member _ c a 1 1 „Pand upon vote being taken thereon, the following voted in favor thereof: Rafferty Gallup, O'Donnell, Roeser, Reinert The following voted against same: none Whereupon said resolution was declared duly passed and adopted. AGENDA ITEM 6A STAFF ORIGINATOR: Mary Divine MEETING DATE: October 24, 2011 TOPIC: Consideration of Resolution No. 11 -105 Approving Twin City Gateway Budget for 2012 VOTE REQUIRED: 3/5 BACKGROUND Twin Cities Gateway (TCG), the Tourism Bureau serving the northeast metro area, has established its 2012 budget. According to its by -laws, the annual budget shall be reviewed by each member city. The tourism bureau was established in 2010 and is supported by a 3% hotel tax. The main purpose is to increase the number of visitors to area hotels, which in turn helps support shopping, dining and recreation venues in each city. Barb White, sales director at the Lino Lakes Hampton Inn & Suites, said that year to date, they have over 1,200 more room nights then they did last year at this time. Much of the positive impact is because as part of the tourism bureau, they are a preferred hotel for the National Sports Center in Blaine, which is Minnesota's second largest attraction next to the Mall of America. Twin Cities Gateway 2012 Budget summary: • FY2011 revised budget: $621,000. • FY2012 Approved Budget: $625,200 • FY2012 Operating and Marketing Expenditures: $634,200 • FY2012 Projected Fund Reserve: $308,992 • The bulk of 2012 revenues will be spent for operations; sports marketing, regional destination marketing and a regional marketing grant program. The TCG also provides fyearly grants to help support each community's annual festival. Requested Council Direction 1. Approve Resolution No. 11 -105 Approving the 2011 Budget for MN Metro North Tourism. 2. Do not approve the budget. Attachments: 1. Resolution No. 11 -105 2. Twin City proposed budget for 2012 3. Executive Summary of 2012 Budget 4. Summary of Cities Hotel Tax Collection through June 2012 • MN METRO NORTH TOURISM 2012 SUMMARY BUDGET • • Approved 2010 Budget 2010 Actual 2011 Revised Budget 2011 Projected 2012 Approved Budget FUND RESERVE AT BEGINNING OF YEAR $ - $ - $ 255,461 $ 255,461 $ 317,992 REVENUES AND OTHER SOURCES Lodging Taxes $ 420,000 $ 588,633 $ 612,000 $ 618,000 $ 625,000 Grants - - 9,000 9,000 - Investment income - 79 - 200 200 Other - - - - - 420,000 588,712 621,000 627,200 625,200 OPERATING EXPENDITURES Management contract 51,000 50,755 90,000 86,350 90,000 Other administrative costs 1,000 1,349 30,000 12,340 30,000 Blaine (Fiscal Agent) 8,500 8,465 6,600 6,600 7,500 Organizational insurance 2,000 - 2,000 2,000 2,000 Organizational memberships 2,000 2,510 4,800 4,800 2,500 Contractual Growth Works 7,500 7,500 - - - Other - - - - - MARKETING EXPENDITURES Website enhancement/Social media 70,000 46,001 30,000 30,000 20,000 On -line Marketing 55,000 55,000 90,000 Promotions /collateral materials 30,000 30,000 30,000 Public/media relations 6,000 3,000 6,000 New Venue /Public Facilities promotion 25,000 20,000 10,000 Community festivals & events grants 18,000 18,000 38,400 38,379 50,000 Logo 10,000 5,000 - - - Meeting & conference marketing & promotion 20,000 16,675 26,200 26,200 26,200 MMNT Regional Destination Marketing 81,000 118,996 120,000 120,000 100,000 Sports Marketing 70,000 55,000 70,000 70,000 70,000 Regional Grant program 10,000 3,000 116,900 60,000 100,000 351,000 333,251 650,900 564,669 634,200 Revenue over (under) Expenditures 69,000 255,461 (29,900) 62,531 (9,000) FUND RESERVE $ 69,000 $ 255,461 $ 225,561 $ 317,992 $ 308,992 • • • TWIN CITIES GATEWAY Anoka / Blaine / Coon Rapids / Fridley / Ham Lake / Lino Lakes / Mounds View / New Brighton / Shoreview Twin Cities Gateway FY12 Budget Executive Summary Overview — In general, lodging tax receipts for the nine member cities of the Twin Cities Gateway continue to increase. The organization is projecting a budget increase of approximately six (6 %) per cent for FY12. In accordance with the Board of Directors' stated goal of maximizing marketing and promotional opportunities, while minimizing administrative and overhead expenses, the FY12 budget allocates 79% to marketing and promotion and 21% to administrative and overhead expenses. Note: This ratio of marketing to administrative expenses is significantly higher than that of comparable organizations. Line Item Budget Descriptions: • Management Contract — expenses associated with the day -to -day management and operation of the organization. Note: 2010 management contract expenses were for a partial year. • Other Administrative Costs — budgeted to provide contract services, as needed / if necessary • Website Enhancement — on going development / enhancement of www.tcgateway.com • On -line Marketing — search marketing programs to drive traffic to the TCG website • Promotions / Collateral Materials — regional maps / promotional materials • Public / Media Relations — to increase the awareness / recognition of Twin Cities Gateway • New Venue / Public Facilities Promotion — marketing and promotional activities to promote investments made by member cities, or public entities, such as the new Expo Center at the National Sports Center. • Community Festivals & Events Grants — grants to promote signature events in member cities. Grant amounts are based on the overall % of TCG lodging taxes generated by the member city. • Meetings & Conferences Marketing & Promotion — marketing and promotional activities to increase the number of meetings and conference held within the Twin Cities Gateway region. • MMNT Regional Destination Marketing — marketing and promotional activities targeted primarily to prospective leisure travelers and visitors to the Twin Cities Gateway region. • Sports Marketing— partnership marketing agreement with the National Sports Center in Blaine to increase the number of sporting events, tournaments, participants, and attendees. • Regional Grant Program — grant program for non - profit organizations and public entities to create new events / increase participation in existing events that will have economic impacts for more than one member city in the Twin Cities Gateway region. • • Total Cities S.i..a.y Mid lax Cofectio■s UNIT 95% 2010 2011 linastfir August 1ro.yl August City ("Anoka 3 5,71922 3 329598 -42% City ("Blaine 3 37,413.67 $ 42,98344 1&% City afGoon Rapids 3 110,494.93 $ 118,8483 7% City ("Fridley 3 20,64607 $ 22,941.13 11% City (Mara Lake $ 11.06226 $ 1119577 1% City of Lino Lakes 3 26,73600 $ 32,339.10 21% City of Mounds View 3 3223718 $ 35;43125 1094 City of New Brighton 3 16,826.94 $ 50 893.59 292% City of Shareview 3 132,93931 $ 141,119.70 i% Total $ 394,075.58 $ 4518,84.87 1E4%