Agenda Information Sheet
DEPARTMENT: Finance
DCM: Bryan Langley
Date: August 22, 2017
SUBJECT
Title
Receive a report, hold a discussion and provide direction regarding the Hotel Occupancy Tax Program Year 2018 for FY 2017-18.
Body
BACKGROUND
During the July 21, 2017 meeting the committee reviewed all budget requests recommending a 3% increase in funding for the majority of recipients except for those that requested a lower amount. Additional exceptions include Public Art that is set at 2.4% of projected revenues, the O’Reilly Hospitality 380 Rebate Agreement and the one-time expenditures for this Program Year 2018.
The committee requested clarification on the following items.
(1) Committee Request:
Provide legal opinion if the Denton Parks and Recreation’s application for both the North Lakes and Denia softball field enhancements qualify under statute 351.101 (a) (7) (C).
Staff Response:
Legal department sent an email to Committee on August 3, 2017.
(2) Committee Request:
Provide definition of “bid and servicing fees” in the budget request from the Denton Convention and Visitors Bureau.
Staff Response:
The Bid Fees line item represents a budget line to cover the commitments required of bidding cities competing to host a meeting or convention. Part of the bid is a commitment that the bidding city will host/sponsor a significant aspect of the convention the year prior to its being held in their respective city- should that bidding city win.
Some groups actually require cash bid fees. This is especially true in the sports market. When this is the case, the cash - which may be any amount: $500 for a little league tournament to $10,000 for a fishing tournament or bowling tournament for instance. That is why the line item with cash in our budget allocated for bids is so important.
Finally, there is almost always CVB staff travel involved in physically presenting the bid, another expense that impacts the CVB budget.
Servicing Line Items are similar. Using the TACVB example again, another piece of the conference the winning city must sponsor is transportation for the convention delegates. For example, TACVB will require some kind of event that allows delegates to experience Denton’s sense of place. It’s what this convention is all about. So, as part of planning and facilitating this type of event, CVB will have to contract and provide a transportation that will move the 300-350 delegates from the convention center to the downtown area.
Servicing demands may include but are not limited to the following:
Hosting site visits for decision makers
Hosting board meetings prior to actual convention
Transportation needs
Welcome Packets and/or signage for delegates
Customized to the group’s graphics, delegate name badges
VIP welcome gifts
Speaker gifts
Registration assistance
Attendance-building marketing collateral and campaign assistance
Conference bags (not paper welcome packets - but convention-logoed nice canvas for instance)
Conference notebooks
Conference app
Welcome banners around the city (like the UNT and TWU ones currently around the square)
(3) Committee Request:
Provide definition of “communications” in the budget request of the Denton Convention and Visitors Bureau.
Staff Response:
Communications is the maintenance and updating of the website and three applications. Monthly eNewsletters and email outreaches are also listed here in the budget request along with Social and Digital marketing which includes: interaction, campaign, contest and game development and implementation, research and engagement in evolving social media platforms.
(4) Committee Request:
Provide definition of “printed matter in the budget request of the Denton Community Market.
Staff Response:
Fliers, posters and/or postcards are listed in this applicant’s budget under the printed matter line item request to support twenty-five events.
STRATEGIC PLAN RELATIONSHIP
The City of Denton’s Strategic Plan is an action-oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family-Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal:
Related Key Focus Area: Organizational Excellence
Related Goal: 1.1 Manage financial resources in a responsible manner
EXHIBITS
1. Financials
2. Applications
Respectfully submitted:
Chuck Springer, 940-349-8260
Director of Finance
Prepared by:
Randee Klingele
Treasury Services Specialist