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HomeMy WebLinkAbout1987-05-26; City Council; 9021; Convention & Visitor's Bureau Budget RequestCITJSOF CARLSBAD — AGENDQ0ILL AB# ?<?<£/ MTG. 5/26/87 DEPT. FIN TITLE: CARLSBAD CONVENTION AND VISITOR'S BUREAU BUDGET REQUEST DEPT. HD. ^f^ CITY MORc^S^ O < OI _J Oz 1 RECOMMENDED ACTION: No action is required. This time has been provided to allow the representatives of the CCVB to address the Council regarding the 1987-88 Budget. ITEM EXPLANATION: The CCVB received a total of $200,000 from the City's general fund for 1987-88. The CCVB originally requested funding of more than $276,000. This request has been reduced to $200,000 in the budget presented to the City Council May 12, 1987. The CCVB has requested the opportunity to present their budget proposal to the City Council. All Council members have previous- ly received copies of the CCVB Budget presentation report. A copy of this report is available in the Finance Department for public inspection. The attachments to this agenda bill have been provided by the CCVB to further explain the budget request. FISCAL IMPACT: The CCVB Budget for 1987-88 has been reduced to $200,000 in the recommended budget presented to Council earlier this month. Any increase in CCVB funding without an equal or offsetting increase in revenues will reduce the Council's Contingency Account balance The 1987-88 budget contains a Contingency balance of $1.2 million EXHIBITS: Budget documentation provided by CCVB. CARLSBAD May 22, 1987 Mayor "Buddy" Lewis City of Carlsbad 1200 Elm Avenue Carlsbad CA 92008 Dear Mayor Lewis: I want to take this opportunity to thank you in advance for providing the Carlsbad Convention and Visitors Bureau with the opportunity to present our program proposal at the May 26 Council meeting. CCVB Manager Craig Severson and the members of the CCVB Advisory Panel have made every effort to answer any questions you and the staff may have by providing you and the staff in advance with the CCVB Budget Report. A few specific questions have been presented by the staff which we have also attempted to respond to. Enclosed is a portion of the additional information requested, along with the proposed funding formula. Item number one, CCVB Services Report, outlines monitored services, private sector financial support in F.Y. 1986-1987 and projected for 1987-1988, and total Direct and Indirect private sector support. Item number two is the Total Actual In-Kind private sector support generated (leveraged) with $13,545 in room contributions by local hotel/motel properties during July 1986 through March 1987. Item number three is the Proposed CCVB funding Formula for F.Y. 1987-1988. The proposal maintains the funding of $200,000 with a performance based approach to additional CCVB funding using T.O.T. collected during the year as the "indicator" for additional investment. Please feel free to call me if you have any questions about the budget report or information provided herein. relv, Paul Schwartz Executive Vice President, Carlsbad Chamber of Commerce & Visitors Bureau • P.O. Box 4297, Carlsbad, CA 92008 • (619)729-1786 Division of the Carlsbad Chamber of CommercePS:kr Carlsbad Convention and Visitors Bureau Services Report I. * Incoming phone calls -50-75 per day * Depot Visitors -140 per day -1076 per month * Brochures Mailed -11,500 in F.Y. 86-87 * Direct Travel Agent/Trade Show Contacts -19,000 in F.Y. 86-87 II. Private, Direct and Indirect Financial Support In Kind Contributions for Promotional Media Airtime * from Private Sector (Hotel & Motels) -$13,545 * Direct Cash Contributions for Co-Op Advertising for 1-800-CARLSBAD at $9.82 per month, per room, per property -$16,002 in F.Y. 86-87 Projected F.Y. 87-88 -$23,000 * Property Participation in Travel/Trade Shows (Equals 2/3 of total cost to CCVB) -$5,231 Projected F.Y. 87-88 -$8,580 * Travel Agent Familiarization Tour Donations (For 20 Agents) -$6,290 * Carlsbad Grand Prix Bike Race -$37,000 (Airfare, meals, rooms) Direct & Indirect Support Totals F.Y. 86-87 $13,545 - In Kind $16,002 - Cash $5,231 - Trade Show Participation $6,290 - FAM Tour $37,000 - Bike Race $78,068 TOTAL r TOTAL BUDGST KITH IK-KIND SERVICES CAfiLSBAD COHVOITIOI 4 VISITORS BUREAU 1986-87 BUDGET FILE HAMS: BUDGET IC-DISK) 'PROJECT* 'PROJECT* 'PROJECT* ltttttttttt<tlttttttttttt<tltttttt*ttt>tttttttttt«tttt*t*U**ttttttttttttttlttt>ttttttt<t«ttttt>ttt<«»tlttttttttttttt<ttlttttttttttt<ttttttttt«lttttttt«tttttttttttt>tt>ttt<ttl CODE CATAGORY JULY 86 AUG 86 SEPT 8& OCT 86 MOV 86 DEC 86 JAN 87 FEB 87 HAR 87 APR 87 HAY 87 JUMg 87 TOTAL BUDGET >tttttttttttttttttttltt<tttlttlt>ttttttttttltt>ttttt><l«tltltt<tttt<tttttlttttttttttttt<tt«tttittttttttttttltttttt>lltlt>tttlttt<Itt>tttttttt>ttt>tltttttttt><tttttttttltttttttt IICOM8ittttt 100 CITY/GEMEIttL FUND 101 CCVB DIRECT 102 PRIVATE: DIRECT UJ WOO*: imiW) 104 HISCELL2AHOUS 31278.00 .00 .00 7S543.09 .00 28411.00 36194.00 .00 .00 158.00 1066.00 210457.00 174222.01 .00 .00 .00 .00 856.00 14HOO.OO .00 29003.00 .00 615.00 1)310.00 .00 .00 .00 1404.00 9451.00 .00 26259.00 .00 653.00 43500.00 .00 .00 .00 732.00 22190.00 .00 30484.00 .00 2882.00 10527.00 .00 .00 .00 .00 - .00 3184.56 724.72 .00 141370.00 .00 .00 .00 .00 724.72 .00 .00 181629.00 200000.00 .00 10000.00 13000.00 13000.00 994370.00 . .00 .00 .00 <ttttlt<<ttt<t>ttttlttttt»<t«t>tl<tltlt>ttttt«>tttt<ttttttttttlttttit>t<ttl<ttttltttttt>tt>ttt<tt<»lt>l>tttl>t>ltlt<tttttt>ttttttttttil<l<tttlttt>ttt>lttttt>t<tttltttt»ttt» TOTAL INCOME 107821.00 239026.00 211482.00 147656.00 118928.00 10855.00 70412.00 22922.00 113893.00 3184.56 142094.72 724.72 1188999.00 223000.00 V \\ -, i rr>f n >-i_ PROPOSED CCVB FUNDING FORMULA Present Allocation: $200,000 = 17.07% of $1,171,000 T.O.T. Collected 1985-86 $200,000 r 16.00% of $1,250,000 T.O.T. Budgeted 1986-87 Proposed 1987-88 Funding Allocation: $200,000 - Base Amount Equals 14% of $1,400,000 Budgeted in 1987-88 + The equivalent of 14.00% - Of T.O.T. Funds Collected in Excess of the Average Quarterly Budget Amount of $350,000, using T.O.T an an Indicator only. (One fourth of $1,400,000) FORMULA 1987-88 Budgeted T.O.T. = $1,400,000 Quarterly Average ($1.4 million divided by 12 months) = $350,000 Additional Performance Based Quarterly Allocation: 14% of Quarterly T.O.T. Over $350,000 EXAMPLE Assume First Quarter T.O.T. Collected $ 365,000 Less Averaged Amount Budgeted - 350,000 Net Amount Over Budget $ 15,000 Additional CCVB Funding X 14% Additional First Quarter Amount $2100 To CCVB Total CCVB Funding not to exceed a Total Annual CCVB Funding of $300,000. WSNCVBFUND