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R-98-10-08-13A2 - 10/8/1998TEST: L LAND, City Secretary R'\ WPDOCS \RSSOLiTTI \RB1008A3.WPD /scg RESOLUTION NO. R- 98- 10- 08 -13A2 WHEREAS, the City of Round Rock collects a seven (7) percent tax on hotel /motel rooms, and WHEREAS, the tax money is to be spent for promoting tourism and the arts, and WHEREAS, a proposed 1998 -1999 budget for Hotel Occupancy Tax funds is attached which provides for expenditure of the funds in a manner in compliance with Section 1.1809 of the City Code (1995 Edition), Now Therefore BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, That the attached 1998 -1999 Hotel Occupancy Tax Budget is hereby approved and the disbursements shown thereon are hereby authorized. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and the Act. RESOLVED this 8th day of October, 1998. 1 1 CHARLES CULPEPP Mayor City of Round Rock, Texas Round Rock Chamber of Commerce Tourism Budget 1998 -1999 9/30/98 TABLE OF CONTENTS 1998 -1999 Fiscal Year Tourism Budget Pages 1 -2 Support/Explanations Pages 3 -4 Tourism Committee Event Funding Recommendations Pages 5 - 1998 -1999 Fiscal Year - Tourism Budget NOTE: The budget is shown as it is used according to the definitions and use of hoteUmotel tax revenue by municipalities. SECTION 351.101. USE OF TAX REVENUE (a) Revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry, and that use Is limited to the following: (1) the acquisition of sites for and the contraction, improvement, enlarging, equipping, repairing, operation and maintenance of convention facilities or visitor information centers, or both; (2) the furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants. I Chamber of Commerce Administrative /Wages $ 61,047 Subtotal $ 61,047 (3) advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or registrants to the municipality or its vicinity. II Advertising and Promotion -Media Celebrate Austin Ad $ 1,680 Texas Accommodations Guide 2,123 Texas State Travel Guide 9,800 Texas Monthly Spring Travel Planner 4,500 TTIA -See Texas First Newspaper Insert 6,600 Texas Monthly Fall Travel Planner 4,500 TTIA File Folder Program 500 Contingency for unknown rate increases (about 10 %) 2,700 Subtotal $ 32,403 III Travel and Trade Shows Administration (shows, travel, etc.) $ 4,000 Display Updates 1,500 Promotional Items 3,500 Subtotal $ 9,000 IV Collateral and Creative Projects Brochure Reprints (20M 97 -98) (30M 98 -99) $ 9,400 Special Projects 3,500 Design Work 3,000 Subtotal $ 15,900 V Advertising Support (Ad agency support for planning & coordination of advertising, PR, Photo Library and Event Funding Coordination and Procedures) $ 6,000 Subtotal $ 6,000 VI Miscellaneous Expenses Dues and Subscriptions 650 Subtotal $ 650 1 VII Event Funding (Festivals, events & attractions for promotion /advertising of City.) Classic Basketball Toumament 7,000 Chocolate Affair 5,000 Daffodil Days 2,000 Fiesta Amistad 4,000 Frontier Days 5,000 Old Settlers Reunion 1,600 Rock Hardball Classic 2,500 TBCH Golf Tournament 4,000 Texas State Fast Draw 3,600 Sportsfest & Outlaw Trail 25,000 Contingency 3,000 Subtotal 62,700 (4) the encouragement, promotion, improvement, and application of the arts, including instrumental and vocal music; dance; fold art; creative writing; architecture, design and allied fields; painting; sculpture; photography; graphic and craft arts; motion pictures; radio, television, tape and sound recordings; and other arts related to the presentation, performance, execution, and exhibition of these major art forms. VIII Performing and Visual Arts Austin Celtic Festival 18,000 Accordion Kings 7,000 Ballet Folklorico 4,800 Bluegrass Music Festival -0- Cowboy Jubilee 10,000 Community Band 4,000 Doll & Quilt Show 2,500 Community Choir Season 9,500 Sam Bass Community Theater 4,500 Texas Old Time Fiddlers 2,000 Contingency 3,000 Subtotal 65,300 (5) historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums. IX Historical Restoration and Preservation Projects Round Rock Homes Tour 5,000 Palm House Museum 2,000 Subtotal 7,000 TOTAL $ 260,000 2 1998 -1998 Fiscal Year - Budget Support 1 Chamber of Commerce This subtotal represents wages and administrative cost of 1/3 of the Chamber's total operating budget. Wages are based on a percentage of time each staff member works in Tourism. The percentage was increased 41 % in Tourism for the position of Administrative Asst. to Tourism. The overall growth in Tourism our Chamber has experienced in the past year has demanded more and more time from this staff person. To elaborate on a few areas, the event funding process alone has doubled in terms of administrative requirements. Request for bigger and better "hospitality bags" has generated the need to contact more businesses for coupons, give - aways, etc., not to mention the time to coordinate the assembly of the bags. State reports for our visitor center require more attention as does the coordination and organization of the thousands of state brochures we handle. The influx of visitors daily to the center require a tourism person to answer questions and locate brochures. Our weekend staff will need to be increased. What used to be a quiet Saturday and Sunday, needing someone only to keep the doors open as required by our State Visitor Center status, is now requiring 2 individuals to man the center - one to answer the phone and one to handle the visitors on site. The need to work with our hotels more closely, enabling us to accurately track room nights from events, perhaps creating a housing bureau, will certainly be time consuming in the coming year. II Advertising and Promotion -Media Advertising and promotion of events, festivals, accommodations and the city in general, to cities outside of the Round Rock/ Austin area, for the purpose of attracting tourist to Round Rock. III Travel and Trade Shows Trade shows are basically the same as last year with the exception of the Winter Texan Show in McAllen, TX. Surveys we place in the visitor center have not shown one visitor generated from that show. When verbally surveying the Seniors at the show, they prefer to go straight to Georgetown, stay overnight and head north the next day. They eat, buy groceries, do repairs, all in Georgetown. And they prefer the shady banks of the San Gabriel. The display update is maintenance of our 2 year old display for trade shows. New pictures, different formats for the market we are attracting, whether it's tourism or convention, and information on new attractions to our area, will keep the display fresh and up to date. Promotional items were increased $500 from last year to cover unknown price increases. Items include, "piece of the rock" candy, lapel pins, cups, bags, etc., to be used for events, conventions and seminars. IV Collateral and Creative Projects Our new brochures have by far been the largest request for information in the 97 -98 year. Each year we have put approximately a 1 5-20% increase on the reprint of brochures, only to be out of them by three quarters of the year. By the end of the 97 -98 year, we will have ordered 22,000 brochures. We have yet to fill all the request generated by the event funding advertising! In 96 -97 we ordered 10,000. We have projected 30,000 for 98 -99. 3 Special projects and design work will cover those unexpected projects that are not budgeted, but would be a benefit to our Tourism advertising and promotional efforts. V Advertising Support This fee continues use of the MyersWilliams ad agency. This agency was at the conception of our new ad campaign including the new brochures, event advertising, new street map, directory and other relative Issues. We want to insure the consistency of our statement and have been thoroughly pleased with MyersWilliams ability to capture the uniqueness of Round Rock's culture and heritage. We will continue to add to a photo library we began two years ago that has proven valuable for other organizations seeking specific photos for their event's advertising and promotional needs. In addition, the design work done on all our pieces has been used in part to create a brochure for the Round Rock Police Department, reducing the design cost for that piece. Meyerswilliams will also create a press release database for Tourism's use as well as city and community use. They will also work closely with the event funding process and events in coordinating ads and press releases in upcoming publications and magazines. VI Miscellaneous Expenses These expenses remain the same from prior years. Dues are membership to the tourism industry associations and subscriptions are publications related to the tourism industry and /or carry our advertising. VII, VIII, IX Event Funding Event funding has been divided into three categories: those that advertise and promote the City of Round Rock to tourist; those that advertise and promote tourism through the performing and visual arts; and those that advertise and promote tourism through historical restoration and preservation. This year the committee has imposed a $10,000 limit on the amount of funds any one event may receive so as many qualified events can be funded as possible and funds are distributed proportionately. Another avenue for maximizing the use of funds is to reduce funding or eliminate assistance altogether. Events considered are those which are profiting and can continue without assistance, or have been in business for over five years and are not showing progress in attracting tourist, or securing revenue to eventually fund the event on their own. 4 Tourism Committee Event Funding Recommendations Round Rock Chamber of Commerce 1998 -1999 The Tourism Committee met on August 20'" to finalize recommendations for the 1998 -1999 Event Funding year. Each event is encouraged this year to use their funding for advertising and promotion. The following year (1999 - 2000), they will be required to used it specifically for those areas. The following recommendations are as follows: VII Event Funding for festivals, events & attractions for the promotion /advertising of the City of Round Rock Classic Basketball Tournament $7,000 Chocolate Affair $5,000 Daffodil Days $2,000 Fiesta Amistad 54,000 57,000 $7,000 The Holiday Classic Basketball Tournament consistently has grown generating more overnight rooms for the local hotels. As with most athletic events, the hotels have reported an increase during those events. We understand the event must turn over ticket and concessions revenue to the RRISD leaving the event with minimal sources of revenue for future seed money. However, the fact that it generates overnight rooms is an important continuing funding. In addition, the tourism committee recommends the event secure sponsorships in the future and use any event funding for advertising and promotion. $8,000 $6,000 Although a new event which has shown growth over the past two years, it is not generating the overnight rooms. The tourism committee recommends the Chocolate Affair combine their efforts with another holiday event such as the Homes Tour to create a two day festival. Advertising, logistics and other expenditures could be reduced for both events and volunteers could be used more efficiently. And, a two day event would invite the visitor to stay overnight. $2,000 52,000 A new event that will take several years to cultivate has been successful in just it's first two years. The committee feels it will be a catalyst for a spring festival or art show lasting the weekend, enticing visitors to stay overnight. 510,000 $5,000 An established festival netting a profit, the tourism committee recommends funding for this year, but for the organization to use a portion of their profits, this year, for start -up revenue for the following year in lieu of event funding monies. Frontier Days 85,000 85,000 55,000 Although a 34 year old event, Frontier Days will be experiencing a major change. Due to a decline in attendance and revenue the Frontier Days Committee has recommended the festival be reevaluated and combined with another similar festival at a different time of the year. This has been and still is one of Round Rock's largest festivals. The committee feels it has great potential, but just needs to be renewed. The event funding amount will be used to supplement the advertising and promotion budget. 5 Old Settlers Reunion $1,600 The tourism committee recommends funding and congratulations on the event's success and reducing the 1998 -99 funding request by $900. Rock Hardball Classic $2,500 TBCH Golf Tournament $4,000 Texas State Fast Draw $3,600 Sportsfest & Outlaw Trail Application is made directly through the City. Austin Celtic Festival $18,000 Ballet Folklorico $4,800 6 81,600 $2,500 83,000 82,500 The tourism committee recommends funding. This event brings over 100 local overnight rooms to hotels. The committee recommends the event coordinator look to local and national related businesses for financial sponsorship support and use event funding for advertising and promotion. $5,000 $5,000 The tourism committee recommends funding the event. This event produces 40 overnight rooms. The committee recommends the event coordinator consider reducing the event funding support to - 0- over the next 2 -3 years, and during that time, use the funding for advertising and promotion only. $3,600 $3,600 An established event in conjunction with Frontier Days, the committee recommends funding for this event. However, to receive future funding, the event must use its funding for advertising and promotion. Other revenue sources must used for other expenditures. VIII Performing and Visual Arts $20,000 $10,000 The Celtic Festival is requesting funding for the October 98 and October 99 year. Since there will no longer be mid -year funding, they needed to get on an annual cycle. $10,000 was granted for the 98 year and 88,000 for 1999. Although their first year was a disaster in terms of weather, they were still able to avoid a negative bottom line. This festival generated a considerable amount of interest both on attendance and those participating in the festival as vendor, entertainers and music. The group's efforts in "Celtic authenticity" is an attractive draw. The committee feels the festival will grow and recommends funding should gradually taper off over the next 3 -4 years. Accordion Kings 87,000 $10,000 $9,500 Accordion Kings has produced three successful events with the assistance of event funding. The committee recommends the committee begin to reduce their request for funding beginning this year and reserve a portion of profits for future seed money. $4,890 $6,600 A popular event the tourism committee recommends funding and congratulations on reducing their request for funding, but would like the event coordinator to consider sponsorship opportunities and co- hosting with a similar group or groups to expand the event. Any extra revenue should be reserved for start -up the following year. Bluegrass Festival - Cowboy Jubilee $10,000 Community Band Application made directly to the City $4,000 Doll & Quilt Show $2,500 Sam Bass Community Theater $4,500 7 930,000 020,000 Unfortunately, the committee agreed that although this may be a popular event in other areas, Round Rock and the surrounding areas are not quite ready for this level" of Bluegrass entertainment. In addition, the high ticket price needed to support "name" entertainers is a negative factor in attendance. With the "Live Music Capital of the World" Just around the corner where you can listen to great bluegrass for a few dollars, it's hard to compete — even with name entertainers. The event has never made a profit under the new management and unfortunately has outstanding balances in Austin and Round Rock. In the best interest of event funding and local business, the committee denied funding. $25,000 $25,000 Under the new funding guidelines, the Cowboy Jubilee received the maximum amount. A cap was determined for funding amounts due to the increased number of request over the past 3 years and the need to fund new events with potential of generating overnight rooms. The committee also recommends the Cowboy Jubilee to reevaluate the festival's potential for growth and overnight rooms. Combining efforts with another festival, such as Frontier Days may generate new interest and benefit both events. $4,000 $4,000 Community Choir Season $9,500 $10,000 $8,650 The Chamber in cooperation with other regional cities publishes a brochure promoting Christmas & other seasonal events in the region resulting in overnight rooms in the local area, that typically, would not occur if the event were advertised on its own. The tourism committee feels the event possesses growth when combined as a regional event and meets the criteria of the event funding guidelines (generating overnight rooms). $6,775 $2,500 This event has provided variety to Round Rock's list of annual festivals & events. This will be the second year for this festival. The event benefits the community as well as generating overnight rooms. The tourism committee recommends, however, the show concentrate on securing more sponsorships (local & national) to supplement revenue. $4,500 $6,575 An event exclusive to the performing arts, the Sam Bass Theater has generated a growing interest in and outside Round Rock. The tourism committee recommends funding for this organization and applauds the organization for reducing its funding request as its needs have diminished for financial support. Texas Old Time Fiddlers Round Rock Homes Tour $5,000 Palm House Museum $2,000 8 $5,000 $5,000 $2,500 This event has been funded for over five years and has not grown in revenue, attendance or generated a significant amount of overnight rooms. Areas which can be tapped for revenue, such as concessions, ticket prices, and vendors are not being utilized. The committee feels the event could also solicit small sponsorships in addition to Old Settler's Association. The event must prove potential for growth in revenue, attendance and overnight rooms to qualify for future event funding from hotel /motel tax. I IX Historical Restoration and Preservation Projects $7,000 A growing holiday event, the committee recommends funding, and for the event to join efforts with the Chocolate Affair and /or another holiday event such as the community choir or Christmas Family Night to create a weekend affair. This would combine expenses and generate more overnight rooms. $2,000 $2,000 $2,000 The museum is the site of the visitor center for the city of Round Rock. The funding is used for preservation, repairs and brochures. The tourism committee recommends funding for the museum as it houses the very heart of providing information and promotion for the City of Round Rock. City of Round Rock Hotel Occupancy Tax Fund #71 Fund Balance Analysis Estimated Fund Balance 10/1/98 Less Reserves (*1) ( *2) Estimated Revenue (FY 1998 -1999) Total Funds Available Requested Expenditures (FY 1998 -1999) Estimated Unreserved Fund Balance 9/30/99 *1 - Reserves are established in accordance with operating reserve policies. *2 - Assumes evenly distributed expenditure levels throughout the year. Budget summary, page 1 62,099 (20,000) 531,015 573,114 (260,000) 313,114 Beginning Unreserved Fund Balance 10/1/98 Total Revenues Budget summary, page 2 City of Round Reek Hotel Occupancy Tax Fund all 1998.1999 proposed Budget - Tourism Crmmlttce 96.97 Oxigfual D6$C R1FT{'£Ii'1QFI"kk'Ellk 9599 , EXPENDITURES: Tourism Events 71 -23- 139- 5000's Outlaw Trail 100 9,130 13,000 71.23- 140- 50003 Sportsfest 5,209 12,000 71 -23 -167 -5651 Sunrise Kiwanis Club Basketball 7,000 7,000 71 -23- 167 -5663 Arts & Crafts Expo (Humane Society) 2,400 0 71 -23- 167 -5664 Sertoma Girls Softball 10,000 0 71 -23- 167 -5665 Music Festival (Bluegrass) 2,500 20,000 71 -23- 167 -5666 El Amistad 5,000 5,000 71 -23- 167 -5668 RR Police Officers Assn -BBQ Cook -Off 0 0 71.23- 167 -5669 Rock Hardball Classic 2,500 2,500 71 -23 -167 -5670 Fast Draw Contest 3,000 3,600 71 -23 -167 -5673 Frontier Days Advertising 0 0 71 -23. 167 -5674 Texas Old Time Fiddlers 5,000 0 71 -23 -167 -5676 Morning Kiwanis Cowboy Jubilee 25,000 25,000 71 -23 -167 -5677 Old Settlers Reunion 2,500 2,500 71 -23- 167 -5678 Chocolate Affair 0 6,000 71 -23- 167 -5679 Old Time Texas Dance 0 0 71-23-167-5683 TBCH Children at Heart 5,000 5,000 71 -23- 167 -5688 Daffodil Days 1,500 2,000 71-14-264-5685 Round Rock Historic Homes Tour 2,331 7,000 71.23- 167 -5686 Accordion Kings 9,000 9,500 71 -23- 167 -5687 Festejo Folklorico 2,500 0 71 -23 -167 -5689 Aussie Texans Connection 5,000 71 -23 -167 -5690 Celtic Music Festival 10,000 0 71 -23 -167 -5691 RR Pan Am Golf Association 0 13,950 71 -23- 167 -5693 RR Quilt and Cloth Doll Show 0 2,500 71.23.167 -5694 Williamson County Sesquicentennial 0 10,000 New New New Total Tourism Events 114,570 146,550 Arts Support 71 -23 -179 -5654 Choir 7,250 8,650 71 -23 -179 -5656 Sam Bass Theater 4,000 6,575 71-23-179-5667 Community Band 4,000 4,000 71-23-179-5681 BaI let Folklorico 5,000 6,600 New New Total Arts Support 20,250 25,825 062,099 REVENUES. 71-00- 000 -4123 Hotel -Motel Occupancy Tex $ 339,592 364,000 509,015 71-00 -000 -4610 Interest Income 13,288 12,000 12,000 71- 00-000 -4626 Round Rock Historical Homes Tour 1,762 0 0 71 -00 -000 -4628 Contributions 18,368 10,000 10,000 373,009 386,000 531,015 AccO17N�':# ' gtoaE:: • .; Prtjpoe� d 4 71 -23- 203 -5640 71- 23-203 -5639 71 -23- 203 -6112 71- 23- 203 -6110 71-23-203-6151 71 -23- 203 -5641 New New 71 -23- 314 -5682 Tourism Sunny OSP 1l PV Festival fmpvls Chamber of Commerce Lighted Outdoor Sign Cattle (hive Statues Project- Survey Cattle Drive Statues Project -Land Event Advertising Total Tourism Support Museum Support Palm House Museum Total Museum Support Multi Purpose Facility New Multi Purpose Stadium/Coliseum Facility New New Budget summary, page 3 City of Round Reek Hotel Occupancy Ten Fund 071 1990 -1999 Proposed Dadget • Tandem Committee 0 75,178 0 5,000 0 75,178 0 0 0 300,000 0 25,575 80,178 400,753 2,000 2,273 2,000 2,273 0 50,000 Total Multi Purpose Facility 0 50,000 Unallocated 71 -23- 113 -6408 Contingency - Mid Year Events 1,591 7,500 New Hotel/Motel Demand Survey 0 33,000 Total Unallocated 1.591 40,500 Total Expenditures 218,589 665,901 260,000 Operating Reserves• 20,000 Estimated Unreserved Fund Balance 9/30/99 0313,114 `Operating Reserves are established in accordance with operating reserve policies- DATE: October 2, 1998 SUBJECT: City Council Meeting — October 8, 1998 ITEM: 13.A.2. Consider a resolution adopting the 1998 -1999 Hotel Occupancy Tax Budget Staff Resource Person: Joanne Land, Assistant City Manager.