HomeMy WebLinkAbout2012-108 Council Resolution•
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CITY OF LINO LAKES
RESOLUTION NO. 12 -108
APPROVING TWIN CITIES GATEWAY BUDGET FOR 2013
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,
Minnesota: The Lino Lakes City Council adopts this resolution supporting the Twin Cities
Gateway budget for 2013.
Adopted by the Council of the City of Lino Lakes this 22nd day of October, 2012.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Roeser and was duly seconded by Council Member Rafferty and upon vote being
taken thereon, the following voted in favor thereof:
Ro er Ra f rt , O'Donnell, Stoesz, Reinert
The roHHowing voffectagarnst same:
none
ATTEST:
Jeff Re' - Mayor
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TWIN CITIES GATEWAY
2013 BUDGET
Approved by Board of Directors
September 25, 2012
2011
2012
2013
Actual
Budget
Budget
FUND RESERVE AT BEGINNING OF YEAR
$ 255,461
$ 359,301
$ 399,679
REVENUES AND OTHER SOURCES
Lodging Taxes
$ 673,559
$ 675,000
$ 700,000
Grants
-
9,000
4,000
Investment income
202
200
200
Other
-
-
-
673,761
684,200
704,200
OPERATING EXPENDITURES
Management contract
86,346
100,000
100,000
Other administrative costs
15,221
35,000
35,000
Blaine (Fiscal Agent)
6,513
7,500
12,000
Organizational insurance
-
2,000
2,000
Organizational memberships
1,465
2,500
2,500
Contractual
-
-
-
MARKETING EXPENDITURES
Website enhancement/Social media
18,537
25,000
30,000
On -line Marketing
44,550
90,000
150,000
Promotions /collateral materials
27,673
30,000
30,000
Public /media relations
1,105
6,000
6,000
New Venue /Public Facilities promotion
19,947
20,000
-
Member City Grants
38,379
75,000
75,000
Meeting & conference marketing & promotion
48,743
36,200
47,500
Destination Marketing
150,301
100,000
100,000
Sports Marketing
70,000
80,000
85,000
Regional Grant program
41,141
100,000
75,000
TOTAL BUDGET
569,921
709,200
750,000
Revenue over (under) Expenditures
103,840
(25,000)
(45,800)
FUND RESERVE
$ 359,301
$ 334,301
$ 353,879
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STAFF ORIGINATOR:
MEETING DATE:
TOPIC:
VOTE REQUIRED:
INTRODUCTION
CITY COUNCIL
AGENDA ITEM 6A
Mary Alice Divine
October 22, 2012
Consideration of Resolution No. 12 -108 Approving Twin City
Gateway Budget for 2013
3/5
Twin Cities Gateway (TCG), the Convention and Tourism Bureau serving the northeast metro
area, has established its 2013 budget. According to its by -laws, the annual budget shall be
reviewed by each member city. Attached is the proposed FY13 Budget. The budget was
approved by the TCG Board of Directors and will be effective from January 1, 2013 —
December 31, 2013.
BACKGROUND
Highlights of the 2013 budget include:
• The proposed budget for FY13 is $750,000, which represents significant growth during
the organization's first two full years of operation (for comparison, the FY11 Budget
was $569,921)
• The organization continues to be in a strong financial position with an estimated fund
reserve of $353,879 at the close of fiscal year. Given the continuing economic
uncertainty, the Board budgets conservatively and has authorized the set -aside of
$250,000 of the fund reserve for investment in a longer term, higher yield investment
account.
• Per Board of Directors direction, 20% of the proposed budget is for operating expenses,
administrative and overhead costs and 80% is for marketing & promotional programs.
• The Board authorized the continuation of the Member City Grant program and
participating member cities can anticipate comparable budgets from TCG for FY13.
This funding is to promote and market member cities' annual community festival. The
grant funding for FY12 to Lino Lakes was $6,552.
• The Regional Grant program has also been re- funded to provide start-up and marketing
assistance for new events or activities that will have impact(s) in more than one member
city.
• FY12 year -to -date lodging tax receipts from the nine member cities continue to trend
favorably upward and are currently running approximately 5% -6% ahead of FY11.
The bulk of 2012 revenues will be spent for operations; sports marketing, regional destination
marketing and a regional marketing grant program.
RECOMMENDATION
• Approve Resolution No. 12 -108 Approving the 2013 Budget for Twin Cities Gateway.
ATTACHMENTS
1. Resolution No. 12 -108
2. Twin City proposed budget for 2013
3. Summary of Cities Hotel Tax Collection through July 2012
4. Summary of TCG Visitor Profile conducted by U of M Tourism Center
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Total Cities San• y
• Hold Tax Ca■ectioos
City ("Anoka
City of Blaine
City decor; Rapids
City & Fridley
City afHam Late
City affirm. tales
City of &founds View
City of New Oi idan
City afShav4iew
Total
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2011
111o■0 Jaiy
5 2,682.70
i 35,864.60
5 99,830.44
5 19,363.55
5 9,378.84
5 26,683.10
30,168.94
$ 43,308.03
117,627.52
$ 384,90722
2012
Time* Jai/
5 2,627.81
35,798.76
5 107,742.27
$ 19,230.81
10,286.99
$ 20,242.00
5 30,083.50
5 48,361.20
124,052.01
$ 406#25445
Tourism Center
UNIVERSITY OF MINNESOTA
433 Coffey Hall
1320 Eckles Avenue 612 624 4947
St. Paul, MN 55108 -6005 tourism(u umn.edu
USA www.tourism.umn.edu
September 2012
At A Glance:
TWIN CI TES
GATEWAY
Gender
55% Female
Age
11% 18 -30
24% 31 — 40
29% 41 — 50
21% 51 —60
9% 61 —70
5% 71 or older
Income Level
17% $50,000 and less
45% $50,000 - $99,999
39% $100,000 and over
Residence
90% USA
48%
10%
7%
5%
4%
4%
8% Canada
Minnesota
Wisconsin
North Dakota
Iowa
South Dakota
Illinois
Past Experience
70% Repeat visitor
Lodging
65% Hotel /Motel/Historic Inn
25% Campground with fee
8% Home of a family or friend
Gateway Area Visitor Profile,
Summer 2012
Results from 385 surveys completed by a convenience
sample of visitors to the Gateway Area summer 2012.
Key Findings
Trip Purpose
35% Sport event
22% Visit family /friends
14% Atractions
10% Outdoor recreation
8% Wedding
6% Festival/Event
Trip Length
94% Overnight (Average 3 nights)
12% 1 night
38% 2 nights
27% 3 nights
8% 4 night
3% 5 nights
6% Day trip
Information Sources
62% Friends /family
42% Area/destination website
14% Online travel site
11% Other
9% Online travel review
Use of mobile and electronic media
53% Internet /websites
34% Smartphone
31% Facebook
22% Text message
13% Mobile apps
13% iPad /tablet
Party Type
51% Family
22% Family & friends
15% Couple/Partner
8% Friends
4% Alone
Activities
General:
75% Dining out
17% Sightseeing
14% Nightlife/Entertaining
9% Driving on designated
byways
1% Guided tour
Shopping: 45% any
26% General mall shopping
18% Mall of America
13% Outlet shopping
7% Arts /crafts /antiques
Visiting: 53% Any attraction
27% Visit friends /family
21% Water parks
12% Amusement parks
5% Historic sites
Attending:
24% Youth sports
14% Amateur /collegiate sports
6% Fair or festivals
Participating in:
29% Swimming/water sports
16% Hiking
13% Biking
7% Fishing
Contact the Tourism Center for your research needs — consultation through project implementation !
The Tourism Center is a collaboration of the College of Food, Agricultural, & Natural Resource Sciences and UMN Extension