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Home My WebLink AboutCity Council Committees - Lodging Tax Advisory Committee - 11/13/2001 (2) AGENDA Lodging Tax Advisory Committee Tuesday, November 13, 2001 2:30 p.m. 2nd Floor Kent City Hall Mayor's Conference Room 1. Call to order— Rico 2. Approval of Minutes of September 18, 2001 meeting 3. Request for Partial Funding of Major Sporting Events — Lori Hogan 4. Finance Report—May Miller 5. Allocation of City Debt Obligation — Finance 6. Lodging Tax Use Policy and Guidelines —Jacki 7. Re-introduction of Chamber Budget Request— Barbara Ivanov 8. Adjourn Added Items: 1. 2. Kent Parks, Recreation and Community Services Department Request for the Lodging Tax Advisory Committee November 13, 2001 Background: The Kent Parks, Recreation and Community Services Department has been approached by Metro Seattle King County Amateur Softball Association(MSKC) to host two championship ASA tournaments in 2002: *Girls 18U Gold National Qualifier 50-70 Teams July 11-14, 2002 •Women's Class `D' Slowpitch Western National Qualifier 40-60 teams September 20-22, 2002 Where: Russell Road Softball Complex. Kent, Washington Additional games possible at Commons Playfield What's needed: Financial resources to help offset operational costs of the event including bid expense, field maintenance, etc. Request: $2,500 - $4,500 for field maintenance $4,000 - $7,000 to be applied to the MSKC bid Why: Events like this draw 40-70 teams (800-1,400 participants plus several thousand spectators). Teams typically arrive several days ahead of the event and tend to stay several days after. They will need lodging, food, and shopping in close proximity to the tournament site. Historically, these events can have a very positive economic impact on the host community. Future: Annual opportunities for similar events. J CITY OF KENT CURRENT BUDGET ANALYSIS AND FORECAST LODGING TAX FUND as of September 30,2001 2000 2001 2001 2001 2002 Actual Budget YTD Est Actual Preliminary REVENUES Lodging Tax 162,379 151,090 110,166 158,203 107,681 Interest Income 1,417 1,082 1,618 1,618 1,093 TOTAL REVENUES 163,796 152,172 111,784 159,821 108,774 EXPENDITURES Strong Local Economy Transfer Out-Tourism Destination 65,000 85,000 - 85,000 85,000 Transfers Out-Tourism-Related Projects 81,000 55,000 55,000 55,000 50,000 TOTAL EXPENDITURES(TRANSFERS) 146,000 140,000 55,000 140,000 135,000 INCREASE(DECREASE)IN FUND BALANCE 17,796 12,172 56,784 19,821 (26,226) BEGINNING FUND BALANCE 12,166 29,962 29,962 29,962 43,592 ENDING FUND BALANCE 29,962 42,134 86,746 49,783 17,366 CURRENT BUDGET ANALYSIS AND FORECAST TOURISM-RELATED PROJECTS ACCOUNT as of September 30,2001 2000 2001 2001 2001 2002 Actual Budget YTD Est Actual Preliminary REVENUES Transfers in-Lodging Tax Fund 81,000 55,000 55,000 55,000 50,000 EXPENDITURES Tourism-Marketing (V29-19S) 12,857 25,000 12,813 25,000 10,000 Tourism Chamber 2000 (V29-19E) 64,000 64,000 64,000 Tourism Chamber 2001 (V29-19E) 64,625 58,160 64,625 Tourism Chamber 2002 (V29-19E) 40,000 TOTAL EXPENDITURES 12,857 153,625 134,973 153,625 50,000 INCREASE(DECREASE)IN BALANCE 68,143 (98,625) (79,973) (98,625) - BEGINNING PROJECT BALANCE 35,000 103,143 103,143 4,518 ENDING PROJECT BALANCE 103,143 4,518 - 4,518 4,518 *Budget Change processed October,2001 JA 13009.x1s 11/13/2001 OFFICE OF THE MAYOR Jim White, Mayor Phone:253-856-5700 K E N T Fax: 253-856-6700 WASH i N o r o N Address: 220 Fourth Avenue S. Kent,WA 98032-5895 Date: November 14, 2001 To: Operations Committee From: Lodging Tax Advisory Committee Re: Funding allocation The City of Kent Lodging Tax Advisory Committee at their November 13, 2001 meeting voted to recommend the following activities for funding: 1. Recommend the reallocation of $85,000 from the Performing Arts Center land debt to Riverbend Golf Course for land debt reduction payment. 2. Recommend allocating $7,000 from 2001 Tourism marketing funds to support bids to host amateur softball championship tournaments in 2002. 3. Recommend the City enter into $50,000 half year contract with the Kent Chamber of Commerce Lodging Association for marketing Kent, to increase tourism, meetings and overnight stays Enclosed is back up material presented to the Lodging Tax Advisory Committee. Date : November 6, 2001 To: Lodging Tax Advisory Committee From: Jacki Skaught Re: Lodging Tax distribution policies The following information is a summary of how other cities distribute their lodging tax dollars. The attached document is a draft proposal for your consideration. I took parts of what other cities are using and tried to come up with a clear and simple approach that you could easily implement. Federal Way: • Federal Way has a partnership between the City and the Greater Federal Way Chamber of Commerce to focus on overnight stays in Federal Way. One element of the program is a competitive tourism enhancement grant (TEG) to support sports, cultural arts and community events in Federal Way. • The proposals must come from a non-profit organization. They must be planning, sponsoring or hosting activities that bring participants from outside greater Puget Sound to Federal Way. • The grant requests are for securing, marketing or conducting events in Federal Way. • Grant applications are reviewed by a board made up of 2 Chamber Tourism Commission members, 2 Lodging Tax Advisory members and 2 Community representatives. Their recommendations go to city for funding allocation and approval. Renton: • They operate similar to Kent • Their funds primarily go to Renton's community marketing consortium, which funds their marketing program (Ahead of the Curve) • The Renton Lodging Association gets funds for advertising and marketing overnight stays. Olympia: • Competitive bidding process with application made to the Lodging Tax Advisory committee who then makes their recommendations to the City Council • The committee solicits proposals in late summer for projects or events that: Promote the city or events & activities that take place in the city. Must demonstrate a history of success or be proposed by a group that has a hi§tory of success Provide tourism facilities or infrastructure enhancements that will attract tourists. • They provide funding to the VCB to assist with conference center feasibility • They provide some funding to the Washington State Center for the Performing Arts Tukwila • Tukwila uses Lodging Tax money to fund their Tourism & Marketing activities. • Their Tourism Network Committee meets with the Tourism and Marketing director and they brainstorm and define projects. • The Director of Tourism and Marketing manages all the projects that are funded. J J DRAFT PROPOSAL FOR LODGING TAX DISTRIBUTION POLICIES AND GUIDELINES FOR TOURISMNISITORS PROMOTIONAL ACTIVITY OR EVENT Basic Qualifications: Eligible organizations plan, sponsor, host and promote activities, events, meetings or conferences that: • Bring participants into Kent • Have the potential for overnight stays • Are facility or infrastructure enhancements that will attract visitors to Kent Specific evaluation criteria; Is this a new or existing activity, event or program? Is the entity a stable organization with a proven track record? Length of time activity or project will run and when? Anticipated economic impact? Number of participants or spectators anticipated? % Event or activities total budget being requested? Please include business plan and marketing strategy How will this activity or event contribute to the hotel/motel tax fund? Will this program generate additional hotel/motel tax revenues in the future? Application process: Please read the qualifications and the evaluation criteria before completing this application. Please type or print and submit 7 copies of the application to: City of Kent Lodging Tax Advisory Mayor's Office 220 4th Avenue South Kent, WA 98032 Organization Name Organization Address Contact Name Contact Phone Contact Address Amount requested $ Name of Event Briefly describe the event/activity. Identify how it meets the City of Kent Lodging tax funding criteria: Submittal schedule: The Lodging Tax Advisory committee will review applications award funding twice a year. The first round of funding will be in March and the second round in September. Applications are due the first week in March and the first week in September. Awards will be made the third week of that month. �J KENT CHAMBER OF ❖ COMMERCE Kent Lodging Association 2002 Budget Proposal Web Site • Site will provide complete accommodation information to interested web viewers. • Site will feature all hotels in Kent and provide links to each hotel. • Site will offer meeting planners the option of requesting a proposal from web site. • Marketing dollars for search engines ensures that site will be accessible through most popular search engines and presented to visitors searching for accommodations in our area. Individual Traveler Collateral • Distribution of City of Kent brochures will ensure that the brochures get in the hands of individual travelers around Puget Sound. This will increase our exposure and the consideration of our hotels by more travelers. • Maps will help visitors find Kent attractions & services, and make it easier for them to spend additional dollars while in Kent. Maps will increase traffic in local shops, restaurants, and businesses. Meeting Planner • Planned familiarization events for local and state meeting planners increases our potential to host future meetings and corporate travelers. • Meeting Planner tools will make the planning process easier for parties interested in Kent. Advertising • Placing Kent ads in visitor publications with large circulations increases our exposure as a leisure destination and as a meeting destination. • Funds are allocated to handle visitor inquiries efficiently and effectively via a #800 phone line and staff trained to convert inquiries into overnight stays. Marketing Representative • Hiring and training a sales and marketing representative to act on behalf of all Kent hotels &properties will help streamline inquiries and ensure that hotels get meeting business in Kent. 524 West Meeker Street • Suite #1 • P.O. Box 128 • Kent, Washington 98035-0128 (253) 854-1770 • Fax (253) 854-8567 • www.kentchamber.com • kentcoc@kentchamber.com Kent Lodging Assn. 2002 Budget Proposal NOTES: 10% increase in hotel occupancy from 2000 will raise an additional $16,300 for the City's tourism fund 20% increase in hotel occupancy from 2000 will raise an additional $32,600 for the City of Kent Jan. -Jun. Jul. -Dec. 2002 Total Service Budget Web site Hosting $ 300 $ 300 $ 600 Consulting $ - $ 1,500 $ 1,500 Content administration $ 5,400 $ 5,400 $ 10,800 Content management system $ 1,500 $ - $ 1,500 Search engine marketing $ 2,500 $ - $ 2,500 Subtotal 1 1 $ 9,700 $ 7,200 $ 16,900 Individual Traveler Collateral Print pad map & lure brochure $ 10,000 $ - $ 10,000 Postage: $100/mo. 1 $ 600 $ 600 $ 1,200 Certified Folder distribution $ 6,000 $ - $ 6,000 Subtotal $ 16,600 $ 600 $ 17,200 Meeting Planner Print $ - $ 1,700 $ 1,700 Postage $ - $ 1,600 $ 1,600 FAM tour $ - $ 3,000 $ 3,000 Subtotal $ - $ 6,300 $ 6,300 Advertising WA State Visitors Guide $ - $ 6,000 $ 6,000 Puget Sound Business Journal $ - $ 1,800 $ 1,800 Olympia FTE Newspaper $ - $ 600 $ 600 AAA Tour Guide $ - $ 1,500 $ 1,500 Toll free number: 125 calls mo.@ 10 min. @ $0.10/min. $ 750 $ 750 $ 1,500 Subtotal $ 750 $ 10,650 $ 11,400 Marketing Representative Salary: PT $ 9,000 $ 9,000 $ 18,000 Payroll $ 810 $ 810 $ 1,620 Benefits $ 2,700 $ 2,700 $ 5,400 Training/contractor $ 1,000 $ 1,000 $ 2,000 Travel $ - $ 3,000 $ 3,000 Admin. O/H $ 8,355 $ 8,355 $ 16,710 Subtotal $ 21,865 $ 24,865 $ 46,730 Total $ 48,915 $ 49,615 $ 98,530 J