2016-06-27 Lodging Tax Advisory Committee MinutesLodging Tax Advisory Committee
Summary Notes from 06/27/16 Meeting
Committee members present: Mike Nelson, City Council
Joe Mclalwain, Edmonds Center for the Arts Executive Director
Frances Chapin, Edmonds Parks, Recreation, & Cultural Services, Mgr.
Jan Conner, Harbor Inn
Pat Moriarty, The Studio
Committee members absent: None
Staff present: Patrick Doherty, Economic Development & Community Services Director
Cindi Cruz, Economic Development
Meeting was opened by Mike Nelson at 3:30 p.m.
1. Approval of March 14, 2016 meeting minutes.
Joe Mclalwain moved to approve the 11/30/15 meeting minutes and Frances Chapin seconded
the motion. Motion passed with Pat Moriarty and Jan Conner abstaining.
2. Public Comment
None
3. Report on Tourism Promotion Support
The work being done by Ellen Hiatt as a tourism promotion support contracted position was
discussed. She is currently working on marketing and has put together marketing forums to
engage the greater Edmonds community in joint marketing. For the 2nd year she has created a
strategic advertising plan and on a monthly basis she creates and places ads in publications and
online advertising opportunities.
4. 2017 Budget Discussion and Approval (see attached 120 and 123 Budget proposals)
Patrick discussed budget proposal and revenue projections for 2016 which are projected to be
$115,000 for the 120 fund. Jan suggested increasing that to $120,000 and to keep the same
projection for 2017 based on hotel business. Proposed expenditures for 2017 were discussed
including the reprinting of the rack card to add more diversity in the photos and to change some
of the wording. An increase in Ellen Hiatt's contract to $20,000 was agreed on and advertising
was increased to $30,000. The committee would like a report on accomplishments from Ellen.
Two additional requests from Waterfront Festival and Chamber of Commerce for specific event
funding were reviewed and are included in proposed budget, and $1,000 was added as one-time
funding for directional signage potentially related to the Visitor Center. Jan moved, Frances
seconded to pass 120 Fund Budget. Motion passed.
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Frances discussed the recommendations from the Edmonds Arts Commission for the 123 Fund.
She noted that the ending fund balance in the 123 Fund includes revenues from sales of posters
from past years (approx. $20,000) and it would be appropriate to spend this money for one-time
projects that directly support the arts in Edmonds. There is a total of $19,000 in recommended
grants for 2017 (see attachment for detail). In answer to question about funds for Write on the
Sound, she responded that it is used for advertising and the print brochure directly used for the
conference. Joe moved, Pat seconded to pass 123 Fund Budget. Motion passed.
5. Miscellaneous:
Patrick reported that he is doing a short survey in businesses downtown to get information on
visitor zip codes and why they came to Edmonds.
The LTAC discussed having a retreat, focusing on marketing and tourism in Edmonds. How could
the LTAC help individual groups with promotion and how is this related to putting heads in beds
in Edmonds? It was suggested that Tracy Wickersham from VisitSeattle be invited to share
information from Seattle. LTAC will discuss retreat further at the fall meeting.
Discussed economic impact of arts in Edmonds, and the possibility of the City having a
consultant survey arts and culture organizations to determine actual numbers (a goal included in
Community Cultural Plan strategies).
Meeting adjourned at 5:10 p.m.
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PROPOSED 2017 LTAC BUDGET
REVENUE AND EXPENDITURE NARRATIVES
TOTAL LODGING TAX REVENUE
The 2016 approved budget included total projected revenue of $109,000. 2016 lodging tax revenue
receipts through May 31't have totaled $21,269, up 13% year -over -year. In order to estimate the 2016
total revenue, we can look back at the 2015 lodging tax receipts through May 31', which constituted
17.6% of last year's total of $106,881. Applying that same year-to-date percentage to this year would
yield a projected 2016 year-end total of $120,850 in lodging tax receipts, compared with the above -
cited 2016 forecast of $109,000. To be more conservative, for forecasting purposes we believe a 2016
year-end revenue figure of $115,000 should be considered.
For 2017 we have suggested a flat rate of growth over the 2016 final figure, resulting, therefore, in a
2017 revenue projection of $115,000.
Per City Council Resolution 630, 25% of lodging tax receipts is to be dedicated to Fund 123 (Tourism
Promotion/Arts Fund) for arts and cultural programs and activities that attract visitors, while 75% of
lodging tax receipts is to be dedicated to Fund 120 for general tourism -promotion programs and
activities.
Based on the above -cited 2017 revenue projection, the break -down of lodging tax revenue would be as
follows:
• Fund 120 $86,250 ($4,500 increase from 2016) + $200 interest = $86,450
• Fund 123 $28,750 ($1,500 increase from 2016)
• TOTAL $115,000
FUND 120 ON -GOING EXPENDITURES
Contingency. Increase to $4,625. We propose to increase the Contingency line item over the 2016
budget by adding half of the unallocated 2017 increased revenue here. This accomplishes two things:
1) provides a small cushion to compensate for less than projected revenue, and 2) allows for minor
additional expenditures in approved line items, such as advertising. This can be revisited mid -year in
2017.
Printing/Distribution of Rack Card. Retain $7,500 for printing and distribution.
Promotion/support of Bird Fest. Retain $1,500 for Bird Fest.
Snohomish County Tourism Bureau. We concur with the Bureau's request to increase support from
$6,000 to $6,200.
Edmonds Visitor's Center. We suggest continuing our long-standing support at $2,500.
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General Advertising. Increase to $27,250. We propose to increase General Advertising over the 2016
budget amount by adding half of the unallocated 2017 increased revenue here. This will help fund the
more aggressive tourism advertising strategy set in place last year:
Edmonds Center for the Arts Season Brochure. Our principal form of support for the ECA, which also
provides a two -page advertising spread on Edmonds, we suggest continuing our long-standing support
at $12,500.
Miscellaneous. Retain at $2,575. This allows for several occasional expenses, such as photography,
design work, emerging opportunities, etc.
Transfer to Fund 117 for arts promotion. Retain $4,000. For many years an amount of $4,000 has
been transferred to Fund 117 to help fund arts promotion through the CRAZE, Arts Access and the
Snohomish County Visitor Guide.
Tourism Promotion/Support for Website, Calendar, etc. The 2016 budget included $18,000 to fund
professional services in the areas of:
• Tourism website and calendar maintenance
• Pitching earned media coverage of Edmonds
• Social media promotion
• Ad development and strategic placement
• Strategy development on new, enhanced marketing, events, etc.
Propose continued support at $18,000.
ONE-TIME EXPENDITURES
With expenditures from this account in 2016 for the Downtown Restroom ($60,000) and Log Cabin
Maintenance ($4,500), and accounting for some additional growth in revenue than originally budgeted,
we project a potential total fund balance of approximately $92,385 by the end of 2016.
Expenditures related to one-time events or programs, intermittent expenditures and/or pilot programs
are best funded as "one-time expenditures" from this fund balance.
The following expenditures are proposed from as one-time expenditures:
Support for Renewed RevitalizeWA Conference Bid. Although we were not awarded the 2015 event,
we were encouraged to reapply for future consideration. 2017 would be the next year the event
should be held on the western side of the state. $3,000 would support host city costs.
Waterfront Festival 2017 grant request. $2,000 to support regional advertising.
Chamber of Commerce 2017 Chowder Cook -Off. $1,000 to support regional advertising.
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