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Home My WebLink AboutCity Council Committees - Lodging Tax Advisory Committee - 11/04/2004 (2) OFFICE OF THE MAYOR Jim White, Mayor Phone:253-856-5700 Fax: 253-856-6700 KENT Address: 220 Fourth Avenue S. WASH IN G T ON Kent,WA.98032-5895 AGENDA and MINUTES FORM LODGING TAX ADVISORY BOARD MEETING Thursday,November 4,2004 2pm Mayor's Conference Room Kent City Hall,220 411'Avenue South Attendance: Councilmember Tim Clark,Chair_ Nathan Torgelson, Staff_ Jacquie Alexander_ Bob Nachlinger, Staff Denise Gray Cliff Craig, Staff Kathy Madison Robin Hasbrouck,Guest Vickie Molzer Kathrine Kertzman,Guest Andy Wangstad Greg Haffner Introductions and Call to order— Councilmember Tim Clark Information Items: 1. Financial Report—Bob Nachlinger or Cliff Craig 2. Recap of Council approval of Kent Chamber 2005 Contract and 2005-2007 Interlocal Agreement with Seattle Southside Visitor Services 3. Kent presentation at Seattle Southside Networking Event on October 19 Items Requiring Action: 1. Approval of minutes of July 29, 2004 2. 2005 Senior Softball Western Championships Bid Request for $3,333 (joint with Tukwila(Ft. Dent/Starfire) and SeaTac Next meeting date, time and location Assignments for next meeting a ��,Kc 1EE W W ASHINUTON LODGING TAX ADVISORY COMMITTEE July 29, 2004 Committee Members Present: Tim Clark, Vickie Molzer, Kathy Madison, Denise Gray, Andy Wangstad, Jacquie Alexander and Greg Haffner. Others Present: Nathan Torgelson, Marcelle Pechler, Robin Hasbrouck, Kathrine Kertzman, Robert Goehring and Cliff Craig. The meeting was called to order by Clark at 2:10 p.m., and introductions were made. Approval of Minutes. Wangstad moved to approve the minutes of May 20, 2004. Gray seconded and the motion carried. New Lodging Board Member. Torgelson introduced Greg Haffner and explained his background. He noted that the vacant position is for a member of the community and that the term is for three years. Wangstad moved to accept Greg Haffner as a Boardmember. Alexander seconded and the motion carried. Lodging Tax Workshop. Goehring distributed copies of a report on the Lodging Tax workshop held on July 28, including statistics, background and current issues. He noted that although the law has not changed, the State Auditor's Office has changed their approach to audits, and went on to explain the changes. Financial Report. Craig distributed copies of the current budget analysis and explained the activity. He noted that although $121,813 in revenues had been predicted, they expect the figure to be closer to $111,000. Kent Chamber and Seattle Southside Visitor Services (SSVS) Contracts. Torgelson gave a report on the future expenditure of lodging tax dollars, including the tax revenue history, current budget and proposed spending. He also explained the proposed contract with the Chamber of Commerce, and Pechler and Hasbrouck clarified the two options, noting that the difference between the two has to do with funding for staff and research time. Torgelson then outlined the SSVS contract, including the vacation planner, business community liaison, media campaign, website, concierge services, coupon book, public relations campaign, networking and brochure distribution. It was noted that this group would provide more outreach to the public and that the Kent Lodging Association would dissolve. Lodging Tax Advisory Board July 29, 2004 Page Two Pechler, Hasbrouck and Kertzman then left the meeting. After a brief discussion, Wangstad moved to go forward with the $300,000 3-year Seattle Southside Visitor Services contract, including an additional $25,200 startup contract to redesign the vacation planner. Molzer seconded and the motion carried unanimously. Kent Chamber of Commerce 2005 Contract. After a brief discussion of the two options, Madison moved to accept the $18,000 Chamber of Commerce contract. Molzer seconded and the motion carried unanimously. Kent Station Update. Torgelson noted that construction has begun and listed retailers who will locate there. Cancer Treatment Centers of America. Torgelson stated that Cancer Treatment Centers of America is considering locating in Kent. He noted that this is a $70,000,000 project and that it is a hospital for stage III and IV patients. Discussion was held regarding the lodging needs for out of town patients and families. Torgelson noted that this Board may want to testify at the public hearing this fall. Next Meeting. The next meeting was scheduled for 2:00 p.m. on Thursday, November 4, 2004. Adjournment. The meeting adjourned at 3:15 p.m. Brenda Jacober, CMC City Clerk / l- `/ -cry. CURRENT BUDGET ANALYSIS LODGING TAX OPERATING FUND as of September 30,2004 2003 2004 Adjustments 2004 2005 Actual Adj Budget Fav(Unfav) Est Actual Budget BEGINNING FUND BALANCE 19,586 52,420 52,420 68,972 REVENUES Lodging Tax 119,198 121,268 1,051 A 122,319 121,132 Interest Income 166 526 136 662 526 TOTAL REVENUES 119,364 121,794 1,187 122,981 121,658 TOTAL RESOURCES 138,950 174,214 1,187 175,401 190,630 EXPENDITURES Strong Local Economy Transfer Out-Tourism Destination 85,000 77,404 77,404 Transfers Out-Tourism-Related Projects 66,530 76,650 76,650 135,000 Reverse Transfers from projects (65,000) (50,147) B (50,147) TOTAL EXPENDITURES(TRANSFERS) 86,530 103,907 103,907 135,000 Change in Fund Balance 32,834 17,887 1,187 19,074 (13,342) ENDING FUND BALANCE 52,420 70,307 1,187 71,494 55,630 CURRENT BUDGET ANALYSIS TOURISM-RELATED PROJECTS ACCOUNT as of September 30,2004 2003 2004 Adjustments 2004 2006 Actual Adj Budget Fav(Unfav) Est Actual Budget BEGINNING PROJECT BALANCE 11,402 11,522 1,250 12,772 51,102 OTHER INCOME Transfers in-Lodging Tax Fund 66,530 76,650 76,650 135,000 TOTAL OTHER INCOME 66,530 76,650 76,650 135,000 TOTAL RESOURCES 77,932 88,172 1,250 89,422 186,102 EXPENDITURES Tourism-Marketing(Softball) (1223) 11,250 Tourism-Marketing(Bike Race) (1223) 1,000 1,000 Tourism Chamber 2000 (1263) Tourism Chamber2001 (1271) Tourism Chamber 2002 (1272) Tourism Chamber 2003-Jan-Jun 39,790 Tourism Chamber 2003-July-Dec 14,120 Tourism Chamber 2004(1274) 32,320 32,320 18,000 Senior Western World Softball Tourn.-(1279) 5,000 5,000 3,333 Seattle Southside Visitor Services 125,200 Tourism-Unallocated(1270) 38,330 38,330 C 20,000 TOTAL EXPENDITURES 65,160 76,650 38,330 38,320 166,533 ENDING PROJECT BALANCE 12,772 11,522 (37,080) 51,102 19,569 TOTAL ENDING FUND BALANCE D 75,199 A.Revenues are improving slightly B.Transfer back of monies that had gone toward the Performing Arts center,but became ineligible. C.Unallocated amount not expected to be spent this year.Smaller amount available for 2005,allowing flexibility. D.Ending balance projected at year end 2005,combining the operating fund and the project balance. Western National Championships South Seattle, Washington July 23-27, 2004 Total Teams: 62 (15 local teams/ 47 out-of-town teams) Total attendance: 60 x 30 players, spouses and family = 1,860 Airlines Average Airline Ticket Cost($220) 65% fly �= 1,080 917 x $220=$201,630 Cars Average Car Rental ($175) 45% rent cars =800 635 x$175(average rental) _$111,125 Entertainment 1,410 x$136.50=$192,465 Hotels 705 rooms x 4(average stay) x $65 average=$183,300 Restaurants $50 per day,per person 47 Teams x 30 players and spouses each team= 1.410 1,410 x 250= $352,500 Shopping 1,410 x $202=$284,820 Souvenir Sales Merchandise sold at Park=$15,000 Concessions Sold at Park=$18,800 SUBTOTAL= $1,359,640 Total Economic Impact of World Championships: $4,758,740 (w/Mult. Factor of 3.5) Total Anticipated Economic Impact (minus airfare): $4,557,110 f R