ITEM: 12.6 ADMINISTRATION- Clark Arneson, City Manager
Title
APPROVE THE 2013 ANNUAL BUDGET FOR THE TWIN CITIES GATEWAY CONVENTION AND VISITOR'S BUREAU
Background
The City of Blaine is a member of Twin Cities Gateway (TCG) Convention and Visitor's Bureau. According to the Bylaws of Twin Cities Gateway, the annual budget must be approved by the Board of Directors and submitted to each member city for approval by October 1st.
Twin Cities Gateway is funded by the local option lodging tax collected by the participating cities. Twin Cities Gateway represents nine cities: Anoka, Blaine, Coon Rapids, Fridley, Ham Lake, Lino Lakes, Mounds View, New Brighton and Shoreview.
The proposed budget for FY13 is $750,000, which represents significant growth during the organization's first two full years of operation. 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 the 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 / budget comparable grant funding availability from TCG for FY13.
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 track / trend favorably upward and are currently running approximately 5% -6% ahead of FY11.
The City of Blaine continues to act as the fiscal agent for the Bureau and provides administrative services on a contract basis. The City currently receives a monthly payment in the amount of $625.00 for these services and in 2013 will increase to $1,000.00 per month.
Recommendation
By motion, approve the 2013 Annual Budget for the Twin Cities Gateway Convention and Visitors Bureau.