Clark Arneson, City Manager
Title
TWIN CITIES GATEWAY 2015 BUDGET
Background
Steve Markuson will be present to review the 2015 Twin Cities Gateway budget as adopted by the Board of Directors on September 16, 2014. In accordance with the Member City Agreements for the organization, the budget is to be presented to member cities by October 1.
NOTE: The TCG Board continues to budget somewhat conservatively and maintains a healthy fund reserve for a strong fiscal policy. 2014 has been an exceptional year for the entire metro area tourism industry, including Twin Cities Gateway. TCG's hotel occupancy/RevPar - revenue per available room - and ADR - average daily rate - have exceeded 2013 levels for each month this year through August 2014. Because the Board is uncertain whether or not similar levels can be achieved in these areas in 2015, the budgeted amount for 2015 lodging tax receipts is slightly less than the projection for calendar year 2014.
Budget Highlights:
· For 2014, with co-op partnerships, value-added, and negotiated media buys, TCG invested approximately $1.2 million in marketing and promotion of the area in 2014
· For 2015, the marketing / promotional / fund reserve elements represent 82% of the overall budget and administrative costs and overhead are 18%
Recommendation
Council information only.