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Home My WebLink About2006-05-24 STAFF REPORTS 1A CITY OF PALM SPRINGS CITY FUNDING FOR TOURISM RELATED ACTIVITIES FY 05/06 Activity Funding Bureau of Tourism 1,481,616 Convention/VisitorsAuthority 1,100,000 Convention Center Operations Cost Suppport 2,150,583 Debt Service 3,456,745 Expansion Debt Service 2,000,000 Total Convention Center Costs 7,607,328 Event Funding International Film Festival 350,000 Miss Teen USA 75,000 Mrs. America 25,000 Senior Softball World Series 35,000 Easter Bowl Tennis 15,000 Festival of Lights 54,000 Total Event Funding 554,000 TOTAL FUNDING $10,742,844 TOT Budgeted Revenues $14,040,000 0��2�12b0(o icM I�r'l l l t The Bureau of Tourism is the official AGENDA destination marketing organization 1. Budget Overview for tine City of Palm Springs,California, 2. Stakeholder Repot promoting the City to tourists and the media, 3�. Financial Analysis& thus increasing the City's exposure as a world-class year-round leisure destination Budget Increase Request and'increasing the transient occupancy tax. (2007-2008 and beyond) 4. 2006-2007 Special Projects IACVB% Fropnscd 06/07 Industry A.crngc FSBT Budget Mark B llitizer Tota[Dirco ._ d36U 55% Promotions Executive Director T.(,IUbo. 35.8% 36% Fahn Springs Bureau oc,Toryism E.xpens Tom]OtU. 17.6% 9% e`61/J4ZOC> Budge[overview 2005/06 2006/07 Ad,misfig-Media $394,000 $430,408 �.r Trade/Travel Sl,o,vs — $99,300 $10268 ,5_9 I�4.4�/® Pronmtion UIC -- _— $ ,004 $68,004 ✓ Pronvrom,Germany $49,020 M,020 The percentage of total TOT PumiOurization Tups 546,300 56,203 emrz—e Pr a city devotes to fund a &Rc odncrion $S,000 $17,000 Can,r.,ur dSer,iee $49,638 $25,000 CVB/Tourism Bureau 0ffT.Sngplias $7,760 $4,700 Postage&Dclrvory 646800 $54,500 Wage&Bc.efw $579,815 $593,806 VaIt11''ftbL��= l',11V.��'fil4ttir' i Michael Green Pcrcentao-e of total TOT President Pahn Springs Hospitality Associations returned to Palm Springs Member of Planning,Budget,and joint Bureau of Tourism in Advisory Committee on Tourism 2005-2006 Member of PSBT Marketing Committee Owner,Triangle Inn Palm Springs 2 ��1411`' 'fVDl��r' U�AlVW,7l'f 6bl��r Overall PaLn Springs Historical Occupariev/Rate/Rev Par +/-/ Race +/-^/ RcvPar +/I V, 1997 62.7 +1.7 592.06 +6 $57.73 +5.2 RE, R FROM HE 1998 63.8�--+1.9 $97.17 +3.4 $61.98 17.1 1999 64.8 +1.6 $106.33 +9.6 $69.02 +11.4 STAKEHOLDERS TT-�T ^T T C 2000 --64.3 -2.2 Ml 40 +4.6 _970.59 +2.3 S^`�'A➢L�u�.i IOLDERS 2001 59.6 -7.6 $113.83 +22 $66.69 -5.5 2002 61.4 +4.8 F108�49 4T $66.56 0.2 2003 5].7 -6.1 $111.89 +3.1 $6 V.61 3.0 2004 61.5 6.2 $1L3.48 +1.5 $69.79 +5.0 -L0 2005 61.6 $118.59 +3.8 $73.10 +2,8 L-rdi- Cafifordia Lodging Indust,Performance (Overall Palm Springs Historical Occupancy ✓ d-.Cn/�iri/n ^ 2000/01-2004/05 ......a..m� ava n:vw�..a ...,..,. oconpancy Ram 3.45-K 2000/01 5,145Yn - 2002/03 50.73% 2003/04 48.69%^ p$!in-A Spwia gs..... .. •_611.5%: 2004/05 49.55% x1ahn Springs (per zc4enzJ City fngu,r )...�9.Mo/) 3 �r:rinlT Aftab Dada FINANCIAL ANALYSIS Board Member,Pahn Springs & 1-Tospitality Association BUDGET INCREASE Mcmzber of Platming,Budget,and Joint REQUEST." Advisory Committee on Tourism Member of PSBT Budget Committee General Mi anaget,Min Springs Hilton �o.o Vnl r5nl .�a lrn ., 1991-1992 $7,133,293 $1,611,❑8 22.6%� i' ive_-i�na -- .lii1nsra _ — nu^e V. a Viri. .o�JptiS,") � - �55•. 1991 PSBT Budget ooi-nms g/�a A.isu c�3aa Jas ❑n°. b $1,611,118 iav5-wn5 19,0s,162 $1,510.115 _ I (I Constuner Price 1rdex pmrurvie vnvuw�3a rLAnrxM i5r. LL, IN 11�11511N )L u-- 19G 19fi°.-- $2,395,384.69 (48%increase) �9 i S4 . 3J�n F_n01 oI1,L0ld'ti' SI,G8QNi3 l5'�"� __1;11111,,, 2006 PSBT Budget ^_utu]mn .I?.I'_g31! 31,9^R95 IPi b $1,481,516 ?O1�i 20W SI . 19 " SI I°3". 30Uh-20U5 :,I^1?f411N,Glt ➢,481,+O,SIG 51G 11.A% 2.9',6 of he 20I),1/2005 city❑odget..I,yarropriatW to the e5U'r moo r.....Pim 11/1e 1114) zs.¢iasS M,p 4 �� I1r'ibL Vy>W[,1�7IJribh Forunula: 25"/1 of incremental TOT gain 5437,408 , 25"/" = $109,352 02/03T�OT .1. 03/04TOT + 01/05TOT —3 = $12,587,2031nandvv.aq (TOT Guru) (Lmmas a in Budget) 2007/2008 Budget: 04/05TOT - bcaalnnadc= i,mmmcnrd TOT gain $1,481,516 + $109,352 = $1,593,668 +tmkno vn CPI $J3,024,611 - $12,587,203= $437,408 (06/07 (25'I/"TOT (07/08 +unknoml CPl Budget) Gain) Budget) �i.+114i1�I,'i ID1tir' 41,�1!''%l 4X6'17� 2008/2009 Budget: THE REQUEST ($1,593,668+CPI) 1 25%TOT Gan, = $?,77,??? +anlmown CPI (mino n"a11) 2007—2008 Tomsm Budget vicreases by incremental TOT gain and the CPT. •el 10 1111 nrnrvn llnr l,n Jovm Lwlni,ill,.ouu llw $109,352 + CPT 5 Matk Bellinger 2006-2007 Executive Director Paint Springs Bureau ofTouristn SPECIAL PROJECTS Special Project#1 $4 259 Print and Electronic Media ]Full Page— Four-Color Ad Year Total Print Media Bay Via Magazine 10e8/1999 $636,992 1996 2003/2004 SS313,869 $6,540 2006/2007 S•130,408 Full Page — FouT-Color Ad Via Magazine 2006 6 2006 Ads THE REQUEST -,611 include additional Call-to-action Project#1-Increased Print&Electronic➢Media for ➢racl6ng & R.OI pufposes $150,000 s, Vu\li,ta?h`dbl�� V'�\f!M Lil)rfbls'�:� Special Project#2 THE REQUEST Public Relations Efforts ,,,a o;,w� Project#2—Increased Public Rel.rllons Efforts u Oonu.muvo.,,,Sn",....... ,,,Lvm n n, I",,g.c,on,e. ecPre n,l'.,Ln Spn vspee;lie nuke aitL u co u,nn n,vLes` $36,000 7 V,dl! ` %ria117; VNAIfh 47 Ibr7o Special Project#3 Trade &c Travel Shows THE REQUEST Increase visibility of new booth "ur—up"noon, Project#3—Increased Booth Visibiloy ht:m�oalot,l.Titto-,m Sbo.t. At Trade Shows :.�Crenm a'9nne"fur pcln,Spru4sn pale $9�,000 21116/091mdubova `� /JI /11 V�l`i?1 l�f{I tt��• SNJ,I":sl�I,'fll1tl�� Special Project#4 THE REQUEST Ongoing Consumer Research L n„nra.,m"oobe t„�td to cowTmt....-1„o bi*9.m Project#4—Ongoing Consumer Research R—.,b min ot,.I ot 20115/2006 oo—b,oMtio-11, $35,000 remsmd m cr[cen.vly musure 111—nutlslwS do". 8 ,a THE REQUEST 2006—2007 Peojects THANKS ! funded at an additional $230,000 Palm Springs Convention Center Proposed Budget 2006 -2007 Budget Actual/ Projected Budget Variance Q/a Change 01/01/05- 07/01/05- 07/01/06- 06/30/06 06/30/06 06/30/07 Event Income Direct Event Income Rental 593,959 713,826 783,679 190,000 32% Services 179,911 325,590 326,809 147,000 82% Total Direct Event Income 773,870 '1,039,4'17 '1,110.488 337,000 44% Ancillaiy Income AN 29,543 37,750 38,048 9,000 MIX) Concessions& Bar '16,489 18,243 41,786 25,000 152% Catei ing 331,763 589,380 589,904 258,000 78% Novelty 300 - - - 0% Parking 33,335 31,111 32,532 (1,000) -3% Other Ancillary 15,336 70,231 55,140 40,000 261`%i Total Ancillary Income 426,756 746,714 757,410 331,000 784f s Total Event Income 1,200,626 1,786,131 1,867,898 667,000 56% Outside Catei Ing 50,000 50,000 50,000 - cl% Other Operating Income 87,424 84,932 89,370 2,000 2% Pre-Opening Marketing Funds - 136,087 - - Ad)usted Gross Income 1,338,050 2,057,150 2,007,768 670,000 5u% a Inchrect Expenses Employee Wages and Benefits 1,840,632 1,830,684 1,997,771 167,000 9% a Contracted Services 315,860 289,374 357,498 42,000 13% s Operations '17,170 47,729 19,850 3,000 17% Repairs and Maintenance 49,600 51,675 50,550 1,000 2% Supplies 33,440 35,550 41,000 8,000 94% s Insurance 1,872 13,000 14,400 13,000 694% Utilities 535,200 722,874 810,900 276,000 52% ° Marketing and Public Relation 201,261 267,688 248,206 47,000 23% ° General and Administrative 158,015 '148,957 '128,893 (29,000) -18% 10 SMG Management Fee 185,000 '184,998 '188,700 4,000 2% Total Indirect Expenses 3,338,050 3,692,529 3,857,768 520,000 16% Net Income(Lass) from Operations (2,000,000) (1,535,379) (1,850,000) 150,000 -8% Capital Budget Expenditure - Acct# 112-55-2080-43240 (2,000,000) (1,535,379) (1,850,000) 150,000 -8% Estimated 20% Increase Acct# 112-55-2080-49000(Insur) 124,647 124,647 149,580 Acct#11:2-55-2080-49030(MVR) 23,436 23,436 28,128 Acct#112-55-2080-43200(Landscape) - 13,391 16,800 Budget(Summary) P , Palm Springs Convention Center Budget Notes of Variance 2006 - 2007 44% increase in direct event revenue based on currently signed and outstanding conbacts plus expected repeat events not yet under contr act 337,000 2 78% increase in ancillary revenue mainly from catering and telecommunications growth 331,000 3 Overall 505A increase in revenue 670,000 4 Employee Wage and Benefits Less than 5% increase in wages and benefit costs plus addntional operations staff to support increased event load plus Director of Sales position increase 157,000 5 Contract Services $15k increase the result of reclassification of internet services from G&A Category, remaining $271k contract maintenance for new mechanical equipment which is no longer maintained under construction contract after first vear'. 42,000 6 Supplies Additional requirements to support increased event load and increased square footage 8,000 7 Insurance Addition of SMG general liability coverage 13.000 8 Utilities Increase proportionate with increased space and mechanical equipment plus 25% SCE rate hike 276,000 9 Marketing and Public Relations Increased requirements to attain current and future increased revenue targets 47,000 10 General&Administrative $20k reduction in internet services, $5k reduction in cost plus $15k from reclassification to Contract Services, r'emamrng $10k reduction from reduced training and cost saving measures from consolidating administrative function into one central location. (29,000) rr Management Fee Increase based on terms of contract. 4,000 Insiginificant variances in Operations& Repairs& Maintenance 2,000 Overall increase in operating costs 520,000 Net reduction in budget from 05/06 150,000 Palm Springs Convention Center 5 Year Capital Improvement Plan 2006-2007 1 * FFE shortfall (convention chairs &tables) $ 100,000.00 2 * Lobby furniture $ 80,000.00 3 Convert Robertshaw HVAC controls to Alerton System $ 96,000.00 4 * Bathroom repairs/remodel $ 150,000.00 5 Networking diagnostic tool $ 3,630.00 6 Cooling Tower#2 Rebuild $ 30,000.00 7 Cooling Tower#1 Rebuild $ 30,000.00 8 Trash Compactor $ 35,000.00 9 Mesquite A/B Window Coverings/Shutters $ 42,000.00 10 Boardroom renovations & repairs $ 48,000.00 1'I Air Wall rehabilitation/re-fabric $ 250,000.00 12 Chiller replacement $ 260,000.00 13 Install compatible lighting fixtures to blend with expansion $ 490,000.00 14 Airmagnet Enterprise WLAN security system $ 30,000.00 15 Computer workstations $ 13,000.00 $ 1,231,630.00 2007.2008 1 FFE Annual Equipment Replacement $ 75,000.00 2 Computer Workstation Replacements $ 10,000.00 3 * Ceiling Tile Replacement to match Expansion $ 7,500.00 4 Gold support renewal on Dell servers $ 3,000.00 5 Ice harvester rebuild $ 25,000.00 6 Replace exhibit hall carpet $ 290,000.00 $ 410,500.00 2008-2009 1 FFE Annual Equipment Replacement $ 75,000.00 21 Computer Workstation Replacements $ 10,000.00 3 Network copier scanner upgrade/replacement $ 20,000.00 4 Network server upgrade/addition $ 20,000.00 $ 125,000.00 2009-2010 1 FFE Annual Equipment Replacement $ 75,000.00 2 Computer Workstation Replacements $ 10,000.00 $ 85,000.00 2010-2011 1 FIFE Annual Equipment Replacement $ 75,000.00 2 Computer Workstation Replacements $ 10,000.00 $ 85,000.00 Note: * expansion related Updated 05-16-06 Palm Springs Bureau of Tourism (Consolidated) Proposed Budget 2006-2007 Actual I Budget Projected Budget Variance % Change 07/0'U05- 07/01/05- 07/0'1/06- 06/30/06 06/30/06 06/30/07 Income Advertising Wall Advertising 34,355 36,830 38,298 4,000 12% Brochure Advertising 36,025 33,648 34,150 (2,000) -6% Website Advertising Link 6,000 5,649 7,027 1,000 17% Website Advertising Banner - - - - WebsiteAdvertising Display Ad 16,605 28,492 42,913 26,000 157% Website Discount Coupon - - - - Adverflsing 92,985 104,619 122,388 29,000 31% 1 Gift Shop Gift Shop Merchandise 94,540 103,498 102,900 6,000 Cost of Goods Sold 51,997 58,917 56,595 (5,000) Net Gift Shop 42,543 44,581 46,305 4,000 9% s Other Operating Income 80,735 180,796 12,499 (68,000) -84% 3 Total Income 216,263 329,996 181,191 (35,000) -16% Expenses Marketing Adveitising 426,400 528,731 448,208 22,000 5% 4 Direct Mail - 64,903 71,500 72,000 5 General Marketing '122,186 189,689 47,872 (74,000) -61% s International Marketing 117,024 115,477 117,024 - Public Relations 2,190 14,959 19,900 18,000 822% Trade& Travel Shows 61,200 89,048 59,334 28,000 46% a Earn Trips 46,800 37646 56,203 9,000 19% s Total Marketing 775,800 1,040,454 850,041 75,000 10% General Employee Wages and Benefits 578,815 514,682 593,806 15,000 3% 10 Contracted Services 89,894 84,890 69,960 (20,000) -22% " General and Administrative 192,839 93,308 87,357 (105,000) -54% 12 SMG Management Fee - - - Operations 5,500 - - (6,000) -100% 13 Repairs and Maintenance 3,915 7,577 7,163 3,000 77% Supplies 7,760 4,055 4,700 (3,000) -39% 15 Insurance 13,946 13,946 16,728 3,000 22% 16 Utilities 29,310 28,644 32,952 4,000 14% Total General 921,979 747,102 812,667 104,000 -11% Total Expenses 1,697,779 1,787,556 (1,662,707) (35,000) -2% Net Income(Loss)from Operations (1,481,516) (1,457,560) (1,481,516) 0% Capital Budget Expenditures 23,956 Net Income (Loss) (1,481,516) ('1,481,516) (1,481,516) 0% Palm Springs Bureau of Tourism Budget Notes of Variance 2006 -20011 1 Advertising Expansion of Website Advertising Campaign 29,000 2 Gift Shop Income Expected increase in cuests 4,000 3 Other Operating Income Visitors Guide Advertising of$79k in 05-06 budget Occurs on an 18 month cycle and will not appear again until fall 07-08. This is offset by the additional of$10k in revenue for providing marketing services to the Convention Center. (68,000) Overall change in revenue (35,000) 4 Advertising Increase in advertising media 22,000 5 Direct Mail Increase from costs that were reclassified from G&A 72,000 6 General Marketing Reductions in Promotions and Video (74,000) Public Relations Increase from costs thatweie reclassified from G&A 18,000 8 Trade &Travel Shows Increase from tradeshow related travel costs that were reclassified from G&A 28,000 8 Fain Trips Increase in Fam Trips 9,000 11 Employee Wage and Benefits $19K increase for Marketing Services to PSCC, Annual increase Wages 3 5%, Benefits 5%, Offset by$14k decrease in part-time wages from closure of retail operations at Uptown Visitor's Center 15,000 11 Contract Services Reclassification of contracted marketinq services to General Marketinq category (20,000) 12 General &Administrative Postage& Delivery for advertising materials. Travel Expenses, and Printing & Reproduction have been reclassified from G&A to Marketing to more accurately reflect their true purpose This has caused a $94.5k reduction in G&A (and corresponding increase in Marketing)from last year's budget due to this reclassification. Remaining $10.5k reduction is result of savings realized in Office Printing from consolidating letterhead for two locations and elimation of some training semmars and publication subscriptions. (105,000) 73 Operations Elimination of one time purchase in 05-06 of security camera equipment (6,000) 94 Repairs and Maintenance Increase from ?? 3,000 15 Supplies Reduction to reflect actual cost incurred in 05-06 plus 10% (3,000) 16 Insurance Anticipated increase in City Allocation for Insurance 3,000 17 Utilities Increase based on 25% SCE rate hike adjusted downward slightly based on actual 05-06 kwh consumption 4,000 Insiginificant variances (1,000) Overall change in operating costs (35,000) Net change in budget from 05106 Jones Aq other Co-op Will MEMEMEMEMEMEM •dnt Publications --------_ _ -- tra" tmel .rNes . 111 ' -fhdrives destinations jdi�I4N, _-_-_tlUectbn/ wime—winl--____-- .. .. --S.S.aGFin ® Greabmys -------- Palm Springs Bureau of Tourism Advertising Plan 2006-2007 MEDIUM CIRCI JULY AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE TOTALS Recommend Group Tours-Co-op- Leads Generated INTERNATIONAL TRAVEL American Journal- 5,000 travel Germany planner - ON-LINE_ a e - ag.- ✓acationtun.com Trip -onely Planet IRON Trip Advisor -rommers rave am darketplace-E-mail 350,000 online online destinations online onhne online arc 575,000 Marketplace-E-mail 575,00 Joshua Tree °odcast 'wo podcast SUBTOTAL 303,000 $40,000 a Palm Springs Bureau of Tourism Advertising Plan 2006-2007 MEDIUM CIRCI JULY AUG SEPT OCT NOV DEC JAN FEB MARCH APRIL MAY JUNE TOTALS C'y)'a-bi-P'A-+rt PlanetOUT&Gay.com 281,000 on line Bannerlemail Gay Travelenca Banner online PNN Outlook(Canada) Destinations Gay Chicago 20,000 Salt Lake Metro 10,000 Columbia Fun Maps Metro Weekly 15,500 Calif Planner Next NY 50,000 _avender 30,000 or 31,000 ub-total $ 70,000 BUDGET RECAP TOTALS 4EOIATOTAL $0 f0 $0 $0 $0 80so SO $0 SO $0 $0 S 413,000 DONITINGtNCY SPENDING S 17,408 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ S 17,408 - S 430,408 Budget $430,408 2003 tCVB Organizational & Financial Profile—IACVB =oundadOn WMA Check --Out Tax Rates On average, hotel Chef{-ollt tax raids are abOUI. 12.2 Pcrcent. A sionill[a!lt 73i lib i {n Ci',% �0) Of Uh Ia: rC':rei iii'L` IS !sually Z';e\%OteCi t €c`�.tr�B. Average hotel rOOm tc:;eS are somelvhat iIIQller in 11 GeSlnailOnS represented by Id€yCf t. oS. This iinuing is iOi,SES�-,ns with .hat of past studies, I 13.1% 13.1% i 12.2% '12.3% 11.7% '12.1% I f All Less Than $5130.OD0- $1,COD,000- S2,000.000- 95,000,000- $10.000,CDD Respondents c5nn Min51999,999 54.999,99959,999,.�i99 - or More - Budgw Categories Roo. I,N Collections & Usc The char below shows the various allocations of the collected Room Tax. As one can see, CVB Funding is the most prominent use of the Room Tax. -�.A% 3$.$% 37.2% j 25.7% 24.4% Conv Cntr Operations, C;rB Other Visitor arenas and Other Nan-Visitor Construction, Funding Related Sports Facilities Related Purposes or Debt Sere Purposes 1 �+v 1 _ ofQ 1 1I BUREAU OF TOURISMf' - Overall Palm Springs Historical Occupancy/Rate/Rev Par 1997-November 2005 % +/- % Rate +/- % RevPar +/1 % 1997 62.7 +4.7 $92.06 +6 $57.73 +5.2 1998 63.8 +1.8 $97.17 +3.4 $61.98 +7.4 1999 64.8 +1.6 $106.53 +9.6 $69.02 +11.4 2000 64.3 -2.2 $111.40 +4.6 $70.59 +2.3 2001 58.6 -7.6 $113.83 +2.2 $66.69 -5.5 2002 61.4 +4.8 $108.49 -4.7 $66.56 -0.2 2003 57.7 -6.1 $111.89 +3.1 $64.61 -3.0 2004 61.5 6.2 $113.48 +1.5 $69.79 +8.0 2005* 61.6 -1.0 $118.59 +3.8 $73.10 +2.8 2006 C'affforinica Loidginly Industry Perforrnanicra,lc Room Occulpancy Percentage All Roam Ratc 2004 AMA U/1.1 Che 2 0 U r, if. 011 I I F L'Llj 11 l"; :,-.v If i ni Il ji 01 j I 1:1 h j I D . . . .... .. . cl ul L..,..;.. 6 2 7 i :1 1 uj ll I il IJ L 0 1 :1[1-,i I, ... ....... ... II1tmra j j j LI "I Ic". it Ill[]I:11 IM; ......73.v ......... 47 i I f LT:fT rj SYi,, RI v 7 3 -1 ............... . (3 ..... ... r1 I A 11:-J i-I l;I L '.L------ ............. .l Ci ;7 il17, ....... -i d!'5 ... N h I-) L)j 1 . ......... ii2"'Jo ... ........ 7'1 1 1 f . r,.,.. ... 2 3 %TvPW 'D I-cl i rvg-c-3 F- B'J 01 ol-I 5 2462. �.cnnm. vx -i-onsurner ynce Index Calculator ,Tag- 1 of 2 Bdnk of Minneapolis He I'm at: Hfime > Economic Research 9L Data > Dala > U.S. Dim > CPI Calculator Economic 'What is adollar worth? Research tir & Data .__ The Consumer Price Index (CPI) is a measure of , the average change in prices over time in a market ,,,,Expand All basket of goods and services. Collapse ,601 G Research Archive w Consumer Price Index and Inflation Rates Z913- i . Consumer Price Index and Inflation Rates fEstimate, T800- p Special '.Studies . Bureau of Labor Statistics - regional and commodity/service • Banking and group indexes Policy Studies + How the C1�4_is used to make these calculations • Staff Directions: Enter years as 4 digits (i.e. 1913) through 2006. Enter Subscriptions dollar amount without commas or$ sign in box on first line. Click Oratsh Calculate button to compute dollar amount shown on second lone. y Seminars I( If in 1997 (year) d •G' PI ��-. I bought goods or services for 1,6Z171EA0 FY f d then in 2006 (year) the same goods or services would cost $ 2305334.69 _ - Calculate Reso¢ t�. �!%✓"1 Pt 111 i i 0t /d Notes: l�r ft 7 i • Limited to years from 1913 to 2006. • Data from consume¢' price indexes for all major expenditure class items. . An estimate for 200E is based on the change in the CPI from fourth quarter 2004 to fourth quarter 2005. . Base year is chained; 1982-1984 = 100 • 3avaScript-enabled browsers only. How the CPI is used to make these calculations, • What would an item or service purchased in 2006 be worth in 19?? dollars? Example: 1-he CPI is used to calculate how prices have changed over the years. Let's say you have $7 in your pocket to purchase some goods and services today. I-low much money would you have needed in 1950 to buy the same amount of goods and services? 1 krttf://waodrosv.rnpls.frU.fed.tis/researchdata/us/c:ilc/ 5/7/2006 Year TOT PSRT % of TOT 1991-1992 $7,133,293 $1,611,118 22.6% 1992-1993 $7,040,031 $1,406,569 20.0% 1993-1994 $7,207,109 $1,356,841 18.8% 1994-1995 $7,647,158 $153445335 17.6% 1995-1996 $8,341,137 $1,400,228 16.8% 1996-1997 $9,092,342 $1,2925313 14.2% 1997-1998 $9,675,462 $1,510,058 15.6% 1998-1999 $10,900,934 $1,460,819 13.4% 1999-2000 $11,742,588 $1,48,1516 12.6% 2000-2001 $115681,444 $1,622,853 13.9% 2001-2002 $12,046,053 $1,677,000 13.9% 2002-2003 $12,420,344 $1,728,516 13.9% 2003-2004 $12,3175882 $1,511,516 12.3% 2004-2005 $1330245611 $1,481,000 11.4% 2005-2006 $1,481,000 2.7% of the 2004/2005 City Budget was appropriated to the PSBT Palm Springs Bureau of Tourism (Consolidated) Proposed Budget 2006-2007 Actual/ Budget Projected Budget Variance % Change 07/01/05- 07/01/05- 07/01/06- 06/30/06 06/30/06 06/30/07 Income Advertising Wall Advertising 34,355 36,830 38,298 4,000 12% Brochure Advertising 36,025 33,648 34,150 (2,000) -6% Website Advertising Link 6,000 5,649 7,027 1,000 17% Website Advertising Banner - - - - WebsiteAdvertisingDisplayAd '16,605 28,492 42,913 26,000 157% Website Discount Coupon - - - - Advertising 92,985 104,619 122,388 29,000 31% Gift Shop Gift Shop Merchandise 94,540 103,498 102,900 8,000 Cost of Goods Sold 51,997 58,917 56,595 (5,000) Net Gift Shop 42,543 44,581 46,305 4,000 9% 2 Other Operating Income 80,735 180,796 12,499 (68,000) -84% 6 Total Income 216,263 329,996 181,191 (35,000) -16% Expenses Marketing Advertising 426,400 528,731 448,208 22,000 5% a Direct Mail - 64,903 71,500 72,000 5 General Marketing 122,186 189,689 47,872 (74,000) -61% 6 International Marketing 117,024 115,477 117,024 - Public Relations 2,190 14,959 19,900 18,000 822% 7 Trade&Travel Shows 61,200 89,048 89,334 28,000 46% $ Fam Trips 46,800 37,646 56,203 9,000 19% e Total Marketing 775,800 1,040,454 850,041 75,000 10% General Employee Wages and Benefits 578,815 514,682 593,806 15,000 3% 10 Contracted Services 89,894 84,890 69,960 (20,000) -22% " General and Administrative 192,839 93,308 87,357 (105,000) -54% 12 SMG Management Fee - - - Operations 5,500 - - (6,000) -100% rs Repairs and Maintenance 3,915 7,577 7,163 3,000 77% 14 Supplies 7,760 4,055 4,700 (3,000) -39% 1s Insurance 13,946 13,946 16,728 3,000 22% 16 Utilities 29,310 28,644 32,952 4,000 14% 17 Total General 921,979 747,102 812,667 104,000 -11% Total Expenses 1,697,779 1,787,556 (1,662,707) (35,000) -2% Net Income (Loss)from Operations (1,481,516) (1,457,560) (1,481,516) 0% Capital Budget Expenditures 23,956 Net Income (Loss) (1,481,516) (1,481,516) (1,481,516) 0% 5/16/2006 at 7:51 AM F\USERMACCT\BUDGERTOUR&VIC\06-07\TOUR&VIC Budget 06-07 xis /� Item No. A 1 .A. Palm Springs Bureau of Tourism Budget Notes of Variance 2006 - 2007 1 Advertising Expansion of Website Adverttisina Campaign 29,000 2 Gift Shop Income Expected increase in guests 4,000 3 Other Operating Income Visitois Guide Advertising of$791k in 05-06 budget occurs on an 18 month cycle and will not appear again until fall 07-08.This is offset by the additional of$10k in revenue foi provicling marketing services to the Convention Center. (68,000) Overall change in revenue (35,000) Advertising Increase in advertisinq media 22,000 Direct Mail Increase from costs that were reclassified from G&A 72,000 s General Marketing Reductions In Promotions and Video (74,000) 7 Public Relations Inaeasefrom coststhatwere reclassified from G&A 18,000 e Trade&Travel Shows Increase from tradeshow related travel costs that were reclassified from G&A 28,000 Fain Trips Increase in Fam Trips 9,000 10 Employee Wage and Benefits $10K increase for Marketing Services to PSCC, Annual increase Wages 3.5%, Benefits 5%, Offset by$14k decrease in part-time wages from closure of retail operations at Uptown Vrsitoi's Center 15,000 r' Contract Services Reclassification of contracted marketinq services to General Maiketrncl cateclory (20,000) 12 General &Administrative Postage& Delivery for advertising materials, Travel Expenses, and Printing & Reproduction have been reclassified fiom G&A to Marketing to more accurately reflect their true pur pose.This has caused a $94.5k reduction in G&A (and corresponding increase in Marketing)from last year's budget due to this reclassification Remaining $10.51k leduction is result of savings realized in Office Printing from consolidating letterhead for two locations and elimation of some training seminars and publication subscriptions (105,000) 13 Operations Elimination of one time purchase in 05-06 of security camera equipment (6,000) iA Repairs and Maintenance Increase from ?? 3,000 rs Supplies Reduction to reflect actual cost incurred in 05-06 plus 10% (3,000) 11 Insurance Anticipated increase in CitV Allocation for Insurance 3,000 17 Utilities Increase based on 25% SCE late hike adjusted downward slightly based on actual 05-06 kwh consumption 4,000 Insiginificant variances (1,000) Overall change in operating casts (35,000) Net change in budget from 05106 Palin Springs Convention Center Proposed Budget 2006 -2007 Budget Actual / Piolected Budget Variance `X,Change 07/01/05- 07/01/05- 07/01/06- 06/30/06 06/30/06 06/30/07 Event Income Direct Event Income Rental 593,959 713,826 783,679 190,000 32% Services 179,911 325,590 326,809 141,000 82% Total Duect Event Income 773,870 1.039,417 1,110,488 337,000 44% Anallaiy Income A/V 29,543 37,750 38,048 9,000 30'%a Concessions& Bat 16,489 18,243 41,786 25,000 1521A Catei ing 331,753 589,380 589,904 258,000 78% Novelty 300 - - - 0% Parking 33,335 31,111 32,532 ('1,000) -3% Other Ancillary 15,336 70,231 55,140 40,000 261%, Total Ancillary Income 426,756 746,714 757,410 331,000 780/„ Total Event Income 1,200,626 1,786,13-1 1,867,898 667,000 56°/a Outside Catering 50,000 50,000 50,000 - 0% Other Operating Income 87,424 84,932 89,870 2,000 2% Pre-Opening Marketing Funds - 136,087 - - Adlusted Gross Income 1,338,050 2,057,150 2,007,768 670,000 50% a Indirect Expenses Employee Wages and Benefits 1,840,632 1,830,684 1,997,771 157,000 9%. ° Contracted Services 315,860 289,374 357,498 42,000 '13% s Operations 17,170 47,729 19,850 3,000 17% Repairs and Maintenance 49,600 51,675 60550 1,000 2% Supplies 33,440 35,550 41,000 8,000 24/a ° Insurance 1,872 13,000 14,400 13,000 694% Utilities 536,200 722,874 810,900 276,000 590�u ° Maii<eting and Public Pelotion 201,261 267,688 248,206 47,000 23% s General and Administrative 158,015 '148,957 128,893 (29,000) -18% 10 SMG Management Fee 185,000 '184,998 188,700 4,000 2% Total Indirect Expenses 3,338,050 3,592,529 3,657,768 520,000 16% Net Income(Loss)from Operations (2,000,000) (1,535,379) (1,850,000) 160,000 Capital Budget Expenditure - Acct#112-55-2080-43240 (2,000,000) (1,535,379) (1,850,000) 160,000 -8% Estimated 20%, Increase Acct#112-55-2080-49000(Insur) 124,647 124,647 149,580 Acct#112-55-2080-49030(MVR) 23,436 23,436 28,128 Acct#112-55-2080-43200(Landscape) - 13,391 16,800 5/15/2006 at 3 20 PM Budget(Summary) Page:34 F:\USERS\ACCT\BUDGET\PSCC\0607\PSCC Budget 06-07.xls Palm Springs Convention Center Budget Notes of Variance 2006 - 2007 44% increase in direct event revenue based on cuuently signed and outstanding contacts plus expected repeat events not yet uncler contract 337.000 78% increase in ancillary revenue mainly from catering and telecommunications growth. 331,000 3 Overall 50% increase in revenue 670,000 4 Employee Wage and Benefits Less than 5% increase in wages and benefit costs plus addldional operations staff to support increased event load plus Drrertor of Sales position increase 157,000 5 Contract Services $151< increase the result of reclassification of inteunet services from G&A Category, remaining $271k contract maintenance for new mechanical equipment which is no longer' maintained under construction contract after' fu st veal. 42,000 G Supplies Additional requirements to support increased event load and increased square footage 8,000 Insurance Addition of SMG general liability coverage 13.000 8 Utilities Increase proportionate with increased space and mechanical egwpment plus 25% SCE rate hike 276,000 9 Marketing and Public Relations Increased requirements to attain current and future increased revenue targets 47,000 10 General &Administrative $20k reduction in internet seances, $5k reduction in cost plus$15k from reclassification to Contract Seivices, remaining $10k reduction from reduced training and cost saving measures from consolidating administrative function into one central location (29,000) 11 Management Fee Increase based on terms of contract. 4,000 Insiginificant variances in Opel'ations& Repairs& Maintenance 2,000 Overall increase in operating costs 520,000 Net reduction in budget from 05106 150,000 Palm Springs Convention Center 5 Year Capital Improvement Plan 2006-2007 1 FFE shortfall (convention chairs &tables) $ 100,000.00 2 Lobby furniture $ 80,000,00 3 Convert Robertshaw HVAC controls to Alerton System $ 96,000.00 4 Bathroom repairs/remodel $ 150,000.00 5 Networking diagnostic tool $ 3,630.00 6 Cooling Tower#2 Rebuild $ 30,000.00 7 Cooling Tower#1 Rebuild $ 30,000.00 8 Trash Compactor $ 35,000.00 9 Mesquite A/B Window Coverings/Shutters $ 42,000.00 10 Boardroom renovations & repairs $ 48,000.00 ill Air Wall rehabilitation/re-fabric $ 250,000.00 12 Chiller replacement $ 260,000.00 13 Install compatible lighting fixtures to blend with expansion $ 490,000.00 14 Airmagnet Enterprise WLAN security system $ 30,000.00 15 Computer workstations $ 13,000.00 $ 1,231,630.00 2007••2008 1 FFE Annual Equipment Replacement $ 75,000.00 2 Computer Workstation Replacements $ 10,000.00 3 * Ceiling Tile Replacement to match Expansion $ 7,500.00 4 Gold support renewal on Dell servers $ 3,000.00 5 Ice harvester rebuild $ 25,000.00 6 Replace exhibit hall carpet $ 290,000.00 $ 410,500.00 2008••2009 11 FFE Annual Equipment Replacement $ 75,000.00 2 Computer Workstation Replacements $ 10,000.00 3 Network copier scanner upgrade/replacement $ 20,000.00 4 Network server upgrade/addition $ 20,000.00 $ 125,000.00 2009••2010 1 FFE Annual Equipment Replacement $ 75,000.00 2 Computer Workstation Replacements $ 10,000.00 $ 85,000.00 2010••2011 11 FFE Annual Equipment Replacement $ 75,000.00 2 Computer Workstation Replacements $ 10,000.00 $ 85,000.00 Note: * expansion related Updated 05-16-06