Council Resolution 20140501-036 Alternate Funding Methods for Events - PowerPoint PPT Presentation

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Council Resolution 20140501-036 Alternate Funding Methods for Events

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Create a process for Council review of fee waiver requests for large-scale events. ... (DCVB s CFO) expenses will be ... PowerPoint Presentation Author: Manno, William – PowerPoint PPT presentation

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Title: Council Resolution 20140501-036 Alternate Funding Methods for Events


1
Council Resolution 20140501-036Alternate Funding
Methods for Events
  • Meeting Format
  • Slide Presentation
  • Agreement on Table Discussion Items
  • Table Presentations
  • General Q A
  • Wrap Up
  • Next Steps

2
Council Resolution 20140501-036Alternate Funding
Methods for Events
  • Approved by Council on May 1
  • Proposal due back to Council on August 7
  • Due to CMO by July 24

3
Alternate Funding Methods for Events
  • Investigate potential methods for funding
  • costs associated with special events

4
Alternate Funding Methods for Events
  • Create a proposal for a special events fund that
    will support small and moderately-sized community
    events as well as providing a more sustainable,
    consistent, and analytical method of evaluating
    and providing financial support for large-scale
    special events.
  • Any proposal should seek to minimize the impact
    on individual City departments.

5
Alternate Funding Methods for Events
  • Create a process for Council review of
  • fee waiver requests for large-scale events.

6
Stakeholders
  • Event producers and promoters
  • Hotel Lodging Association
  • Austin Neighborhoods Council
  • Arts Commission
  • Music Commission
  • Austin Convention and Visitors Bureau

7
City Departments
  • Austin Center for Events (ACE)
  • Economic Development Department
  • Parks and Recreation Department
  • Austin Police Department
  • Transportation Department
  • Austin Travis County EMS
  • Austin Fire Department
  • Homeland Security Emergency Management
  • Code Compliance

8
Waivers, City Costs vs. Fees Collected
2013 Fee Waivers and City Costs vs. Actual Fees Collected 2013 Fee Waivers and City Costs vs. Actual Fees Collected 2013 Fee Waivers and City Costs vs. Actual Fees Collected 2013 Fee Waivers and City Costs vs. Actual Fees Collected 2013 Fee Waivers and City Costs vs. Actual Fees Collected 2013 Fee Waivers and City Costs vs. Actual Fees Collected 2013 Fee Waivers and City Costs vs. Actual Fees Collected


Fee Waivers City Costs Fees Collected
All Events All Events All Events
1,146,127 CPIO 65,267 APD 1,938,514
APD 4,061,472 ATD OSE 191,944
ATD OSE 512,378 AFD 313,327
AFD 583,942 HHSD 251,700
HHSD 202,559 PARD 461,709
PARD 210,829 ATCEMS 436,159
Code Compliance 96,144 Planning and DR  
ATCEMS 798,710 2013
ARR 172,156 3,593,353
Music Office  
Public Works  
Planning and DR  
2013
6,703,457

Gap Collected Costs Gap Collected Costs Gap Collected Costs
(3,110,104)
9
City Co-sponsored Events
  • MLK March Parade
  • Celebrate Texas Parade 5K
  • SXSW
  • Kite Festival
  • Juneteenth Parade Festival
  • Austin Symphony 4th of July
  • Night of the Bat
  • Diez y Seis (Fiesta De Independencia)
  • Austin Pride Parade
  • Veterans Day Parade
  • Austin Farmers Market

10
City Co-Sponsored Events
  • Viva la Vida Fest new in FY 2013 - 8-8-13
  • Welcome Home Iraq Veterans' Parade was a one-time
    event
  • Night of the Bat Event not co-sponsored in FY
    2013
  • Asia Fest was only for FY 2008
  • HOPE Farmer's Markets was combined with the
    Austin Farmer's Market fee waiver in FY 2014
  • Fiesta de Independencia (Diez y Seis) had no City
    fees waived in FY 2013

11
Fee Waivers For City Co-Sponsored Events
  • FY2006 127,972
  • FY2007 213,728
  • FY2008 347,396
  • FY2009 300,339
  • FY2010 346,419
  • FY2011 541,416
  • FY2012 913,822
  • FY2013 1,096,257
  • FY2014 1,129,184
  • Total 5,034,533

12
Possible Funding Sources
  • Event Registration Fee Surcharge
  • Events on City of Austin property that charge
    registration or admission fees
  • Hotel Occupancy Tax (HOT) Fund
  • Parking Fees and Fines
  • Sales Tax

13
Topics for Table Discussions
  • Methods for Funding Costs of Events
  • Proposal for Special Events Fund
  • One Fund? Two Funds?
  • Criteria to Receive Fund Money
  • Process for Council Review for Fee Waiver
    Requests
  • Other Topics

14
Austin Music Commission Funding Concept
  • Establish a fund to help finance the costs for
    special events with significant cultural and/or
    economic impact in order to preserve these events
    and ensure sustainability.
  • Available for qualifying City co-sponsored
    special events as well as other special events
    which apply and can show significant cultural or
    economic impact to the City
  • Estimated 1000 hotel rooms are scheduled to enter
    Austin inventory in 2015
  • Allocate 20 of the Hotel Occupancy Tax (HOT)
    Funds collected from new room inventory to a
    newly created Special Event fund
  • 80 of HOT Fund growth from new room inventory
    would continue to fund current recipients

15
Chapter 351 of the Tax Code states that the use
of HOT funds is limited to
  • Registration of Convention Delegates
  • Advertising, Solicitations and Promotions that
    Directly Promote Tourism and the Hotel and
    Convention Industry
  • Promotions of the Arts that Directly Promote
    Tourism and the Hotel and Convention Industry
  • Historical Restoration and Preservation
    Activities that Directly Promote Tourism and the
    Hotel and Convention Industry

16
Chapter 351 of the Tax Code states that the use
of HOT funds is limited to
  • Sporting Event Expenses that Substantially
    Increase Economic Activity at Hotels
  • Signage
  • Transportation
  • Sporting Facilities Enhancements or Upgrades
  • Convention Centers and Visitor Information Centers

17
Texas cities using Funding Sources
  • To date we have researched and found 30 cities in
    Texas that currently utilize other funding
    sources for special events that qualify most
    utilizing a percentage of HOT Funds administered
    by the Convention Visitors Bureau (CVB)
  • Cedar Park
  • Dallas
  • Georgetown
  • Giddings
  • Fredericksburg
  • Round Rock
  • San Angelo
  • Victoria

18
Criteria Example
  • Dallas, TX
  • Funding Process
  • Within 30 days of the events conclusion, the
    applicant must submit a final report including
    actual Return On Investment (ROI) compared to
    projections and supporting documentation showing
    the actual expenditure of expenses.
  • After review by the TPID Administrator, (DCVBs
    CFO) expenses will be reimbursed proportionally
    based on actual ROI up to the maximum
    pre-approved amount.
  • An organization may select one of three options
    to verify ROI
  • 1) Hotel Booking Code The use of a Hotel
    Booking Code used by attendees to book hotel
    rooms will generate trackable hotel room night
    count.
  • 2) Ticket Sales Using the estimated total
    number of incremental ticket sales for the Dallas
    TPID funded event sold outside of the DFW
    Metropolitan Statistical Area multiplied by 0.54
    will equal hotel room night count.
  • 3) Attendance Using the estimated total number
    of incremental attendees of the event to be
    funded by the Dallas TPID multiplied by 0.057
    will equal the hotel room night count.

19
Criteria Example Cont.
  • Dallas, TX
  • Program Eligibility Requirements
  • Legal Status Applicants must provide
    documentation of the legal status of their
    business or non-profit or for-profit corporation.
  • Tourism Mission While an applicants primary
    mission need not be tourism related, the
    applicants strategic plan must include tourism
    marketing as a component of that mission.
  • Use of Funds An applicants funding from the
    DTPID must be used to bring in additional
    out-of-town visitors to Dallas for the event.
  • Location Regardless of where an applicant is
    headquartered or physically located, 100 of the
    funding received from the DTPID must be in
    support of programs providing a measurable
    benefit to the assessed hotels (lodging
    businesses) within the City of Dallas.
  • Prohibited Uses DTPID funds cannot be used for
    political activity, programs completed prior to
    the submission of the application or any effort
    not specifically designed to increase hotel
    nights.
  • Promotional Material Requirement DTPID funded
    entities shall include use of the Dallas Tourism
    Public Improvement District logo, commensurate
    with similar level sponsors, on all promotional
    materials (including but not limited to,
    brochures, newsletters, advertising, fact sheets,
    news releases, and Internet web sites).
  • Funding Limits Applicants and events are limited
    to 50,000 annually. Events receiving other DTPID
    funds are not eligible for event application
    funding. Events may only receive DTPID event
    funding for a maximum of three (3) years.
  • Minimum Valuations Events will have a minimum
    10,000 impact on hotel lodging and a 10-to-1 ROI
    in hotel industry impact for every dollar
    provided in DTPID funds.
  • http//www.dtpid.com/wp-content/uploads/2013/08/DT
    PID-Event-Application-Packet-revised-July-2013.pdf

20
Table Top Discussion
  • Each table to discuss all identified topics with
    intent to generate ideas
  • Discussions should be high level at this point

21
Next Meeting
  • Late July, will update when location is
    identified
  • Next Steps
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