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Home My WebLink AboutOrdinance - 2024-O0102 - Budget Ordinance Amendment 42, Operating Budget Market Lubbock Inc - 07/23/2024First Reading July 9, 2024 Item No. 6.8 ORDINANCE NO. 2024-00102 Second Reading July 23, 2024 Item No. 6.3 AN ORDINANCE AMENDING THE FY 2023-24 BUDGET FOR MUNICIPAL PURPOSES RESPECTING THE OPERATING BUDGET FOR MARKET LUBBOCK INC. (MLI) — VISIT LUBBOCK AND SPORTS AUTHORITY; PROVIDING FOR FILING; AND PROVIDING FOR A SAVINGS CLAUSE WHEREAS, Section 102.010 of the Local Government Code of the State of Texas authorizes the City Council to make changes in the budget for municipal purposes; and WHEREAS, in accordance with the City Budget Ordinance the City Council shall approve all transfers between finds; and WHEREAS, the City Council deems it advisable to change the FY 2023-24 Budget for municipal purposes and reallocate funds as follows; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the City Council of the City of Lubbock hereby approves changes to the City of Lubbock Budget FY 2023-24 (Budget Amendment #42) for municipal purposes, as follows: Amend the FY 2023-24 MLI — Visit Lubbock and Sports Authority Operating Budget as shown in Exhibit A. SECTION 3. THAT should any section, paragraph, sentence, clause, phrase or word of this Ordinance be declared unconstitutional or invalid for any reason, the remainder of this Ordinance shall not be affected thereby. AND IT IS SO ORDERED Passed by the City Council on first reading on July 9, 2024 Passed by the City Council on second reading on July 23, 2024 )M-,, A -Z MARK W. MCBRAYE MAYOR ATTEST: — A Ay\ W�r Courtney Paz City Secretary APPROVED AS TO CONTENT: eA44, - 44S)10� Cheryl Brock Interim Chief Financial Officer APPROVED AS TO FORM: - D ty City Attorney ecdocsl I/B udgetl-Y23-24.Ameiid42. ord .July 26, 2024 Exhibit A Visit Lubbock (Convention and Visitors Bureau and Lubbock Sports) Proposed Revised Budget Fiscal Year 2023-24 Approved Approved Approved Proposed Proposed Proposed Budget CVB Sports Revised Budget Revised CVB Revised Sports 2023-24 2023-24 2023-24 2023-24 2023-24 2023-24 REVENUES Hotel/Motel Tax Revenue 4,902,779 3,697,485 1,205,294 4,902,779 3,697,485 1,205,294 HOT True -Up - CVB/LSA - 584,522 1 440,824 143,698 Investment Income 173,000 129,750 43,250 173,000 129,750 43,250 Sale of Promotional Items 2,000 2,000 2,000 2,000 Advertising Income - - Events Trust Fund Reimbursement 229,000 229,000 229,000 229,000 Event Revenue 25,000 25,000 25,000 25,000 Rent Income 6,000 4,500 1,500 6,000 4,500 1,500 Total Revenue Sources 5,337,779 3,833,735 1,504,044 5,922,301 4,274,559 1,647,742 Utilization of Net Assets 5,480,271 4,110,203 1,370,068 5,480,271 4,110,203 1,370,068 Grant from CVB - (4,038,748) 4,038,748 - (4,085,050) 4,085,050 TOTAL REVENUES $ 10,818,050 $ 3,905,190 $ 6,912,860 $ 11,402,572 $ 4,299,712 $ 7,102,860 EXPENSES PERSONNEL Compensation $ 1,255,200 959,200 296,000 1,255,200 959,200 296,000 Employee Benefits $ 290,700 235,900 54,800 290,700 235,900 54,800 PERSONNEL SUBTOTAL 1,545,900 1,195,100 350,800 1,545,900 1,195,100 350,800 ADMINISTRATIVE Bank Charges 1,500 1,130 370 1,500 1,130 370 Automobile 8,000 6,000 2,000 8,000 6,000 2,000 Pre -Employment 1,000 750 250 1,000 750 250 Member Dues/Subscriptions 78,700 59,025 19,675 78,700 59,025 19,675 Miscellaneous Expense 5,000 3,750 1,250 5,000 3,750 1,250 Professional Services 198,000 148,500 49,500 258,000 2 193,500 64,500 Staff Development 10,000 7,500 2,500 10,000 7,500 2,500 Insurance/Workers Comp. 11,600 8,700 2,900 11,600 8,700 2,900 Repairs and Maintenance 3,000 2,250 750 3,000 2,250 750 Capital Asset Purchase 32,000 24,000 8,000 32,000 24,000 8,000 Business Meetings 4,300 3,230 1,070 4,300 3,230 1,070 ADMINISTRATIVE SUBTOTAL 353,100 264,835 88,265 413,100 309,835 103,265 OFFICE Postage and Shipping 5,000 3,750 1,250 5,000 3,750 1,250 Rent 108,700 81,525 27,175 108,700 81,525 27,175 Storage Fees 3,000 2,250 750 3,000 2,250 750 Supplies 25,000 18,750 6,250 25,000 18,750 6,250 Telephone 26,000 19,500 6,500 26,000 19,500 6,500 OFFICE SUBTOTAL 167,700 125,775 41,925 167,700 125,775 41,925 MARKETING/SALES Industry Conventions 121,500 91,130 30,370 121,500 91,130 30,370 Incentives 115,000 115,000 - 115,000 115,000 - Convention and Sports Sales 998,300 540,800 457,500 1,122,800 3 665,300 457,500 Servicing Items 90,000 67,500 22,500 90,000 67,500 22,500 Site Tours 180,500 170,500 10,000 180,500 170,500 10,000 Marketing 1,501,100 1,125,850 375,250 1,601,100 4 1,200,850 400,250 Public Relations 98,100 83,100 15,000 98,100 83,100 15,000 Sports Servicing 521,250 - 521,250 671,250 5 - 671,250 MARKETING/SALES SUBTOTAL 3,625,750 2,193,880 1,431,870 4,000,250 2,393,380 1,606,870 TOURISM CAPITAL IMPROVEMENTS Tourism Capital Projects 5,125,600 125,600 5,000,000 5,275,622 6 275,622 5,000,000 TOURISM CAP IMPR SUBTOTAL 5,125,600 125,600 5,000,000 5,275,622 275,622 5,000,000 TOTAL OPERATING EXPENSE $ 10,818,050 $ 3,905,190 $ 6,912,860 $ 11,402,572 $ 4,299,712 $ 7,102,860 $ 0 $ - $ - $ - $ - $ (0) Visit Lubbock Schedule of Explanation for Selected Accounts Proposed Revised Budget Fiscal Year 2023-24 Proposed Approved Revised 2023-24 2023-24 Difference Explanation REVENUES 1 HOT True -Up - CVB/LSA - 584,522 584,522 City estimated HOT collections allocated to Visit Lubbock for FY2023-24, which remains flat. EXPENSES 2 Professional Services 198,000 258,000 60,000 Increase for consultant fees related to new projects. 3 Convention and Sports Sales 998,300 1,122,800 124,500 New data service contract and FAM event sponsorships 4 Marketing 1,501,100 1,601,100 100,000 New marketing opportunities for travel promotion. 5 Sports Servicing 521,250 671,250 150,000 Rotating events potentially may need initial contracts & incentive payments prior to fiscal year end. 6 Tourism Capital Projects 5,125,600 5,275,622 150,022 True -up available to assist with expenses related to ball fields as allowed by TX Statute 351.101(a)(7) and visitor center as allowed by TX Statute 351.101(a)(1)