HomeMy WebLinkAbout11252024 City Council Work Session Laydown - Chamber of CommerceCity of Seward & Chamber of Commerce Work Session
City Council Chambers
November 25th, 2024
City of Seward & Chamber of Commerce
Work Session Laydown Agenda
Contents:
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• Laydown Agenda
• Key Points for Consideration
• FY23 Actuals Graphics
o "Visit Seward" Funding
o City Contract Expense
o Income vs. Expense
• 2019-2024 Actuals
• FY23 & 24 Marketing Contract between the City & Chamber of Commerce
City of Seward & Chamber of Commerce Work Session
City Council Chambers
November 25th, 2024
Key Points for Consideration
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• Request:
o Reaffirm the strong, long-standing partnership between the Chamber
and the City.
o Reinstate Chamber funding to 2% of the bed tax to sustain
operations and community impact.
• Acknowledgment of the Budget Process:
o Recognition of the City's priorities and commitment to financial
discipline.
• Strong Partnership with the City:
o Decades -long collaboration driving Seward's economic
development.
o Chamber's role in providing visitor information, promoting year-round
tourism, and supporting the local economy.
o Chamber's value as a community resource for information, events,
and support.
• Appreciation for City Support:
o Generous leases for the Visitor Center and Salmon Derby Booth,
critical to operations.
o Assistance from City departments ensuring safe and successful
events like the Fourth of July and Mount Marathon Race.
o Joint funding of the Alaska Small Business Development Center
(AKSBDC).
o Opportunities to present at Council meetings to share efforts and
highlight City services.
City of Seward & Chamber of Commerce Work Session
City Council Chambers
November 25th, 2024
• Funding Challenges:
o In 2022, Chamber funding (approx. $100,000) represented 2% of
bed tax revenues during a historically challenging year.
o Pandemic -related impacts: canceled Fourth of July and MMR
events, reduced Salmon Derby participation, and low membership
dues.
o Transition to a flat funding rate of $300,000 for FY23&24, which has
not kept pace with rising costs.
o Operating deficits of $300,000 annually in 2022 and 2023, depleting
the Chamber's safety net.
• Operational Impact:
o No reduction in services provided despite financial strain.
o Major funding cuts, reduced staff, eliminated professional
development opportunities, and increased workload on remaining
staff.
o Unsustainable measures that threaten the Chamber's ability to
operate year-round and deliver critical services.
• Potential Consequences of Insufficient Funding:
o No support for AKSBDC.
o Cuts to year-round positions that sustain events like 4th of July,
Salmon Derby, Shop Small, Polar Bear Jump,.
o Scaled -back operations impacting local jobs, events, and community
support.
"VISIT SEWARD" FUNDING
Based on 2023 Actuals
City of Seward Contract
45. I
Visitor Center Events
• Mount Marathon Race
• 4th of July Festival
• Silver Salmon Derby
• Approximately $305,000
Advertising Sales
• Visitor's Guide
• Digital Ads
• Hometown Guide
• Marine Guide
• Approximately $60,000
City of Seward Funding
• Previous 2% of bed tax
• Currently flat rate of 300,000K
Advertising Sales
9%
Visitor Center Even
45.9%
CITY CONTRACT EXPENSES
Based on 2023 Actuals
Staff & Office
• Events Coordinator 100%
• Communications Coordinator 100%
• Executive Director 50%
• Seasonal Staff 100%
• Taxes/Benefits
• Office Expenses
• Approximately $239,500
Year -Round Marketing
• Visitor's Guide
• Digital Advertisements
• Hometown Guide
• Marine Guide
• Year-round Events
• Approximately $380,000
Economic Development
• AKSBDC Office
• Economic Services
• Trade & Industry Shows
• Fish Restoration
• Approximately $76,200
Economic Development
II%
Year -Round Marketing
54.6%
Staff & Office
34.4%
INCOME VS EXPENSE
Based on 2023 ActualsBased on 2023 Actuals
INCOME
EXPENSE
■ City of Seward Chamber
$300,000
$365,000
$671,500
=$665,000
=$671,500
2:01 PM 10/31/24 Accrual Basis Seward Chamber of Commerce Profit & Loss January 2019 through December 2024
2024 YTD
through
2019 Actuals 2020 Actuals 2021 Actuals 2022 Actuals 2023 Actuals October
Ordinary Income/Expense
Income
Total 4010 • Member -Based Revenue $161,182 $104,744 $71,045 $91,805 $80,679 $62,160
4020 • City of Seward Marketing $263,925 $278,032 $295,837 $108,717 $300,000 $300,000
Total 4000 • Grants & Membership $425,107 $382,776 $366,882 $200,522 $380,679 $362,160
Total 4100 • Restricted $14,292 $8,264 $19,857 $0 $0 $0
Total 4200 • MMR & 4th of July $121,982 $81,472 $44,795 $144,853 $202,163 $212,083
Total 4300 • Salmon Derby $51,209 $21,683 $40,515 $80,173 $104,945 $95,253
Total 4400 • Halibut Tournament $26,895 $3,900 $5,770 $0 $0 $0
Total 4950 • Non -Program Income $1,712 $5 $105 $36 $298 $2,202
Total 4960 • Specific Project Contributions $0 $6,000 $10,252 $2,650 $0 $391
Total 4970 • Destination Guide. $62,865 $51,312 $50,296 $76,786 $60,445 $57,009
Total lncome $704,061 $555,412 $538,472 $505,020 $748,531 $729,097
Gross Profit $704,061 $555,412 $538,472 $505,020 $748,531 $729,097
Expense
Total 6100 • Office -Staff Salaries $235,834 $238,246 $243,525 $215,719 $259,735 $174,861
Total 6200 • Personnel Taxes and Benefits $54,012 $36,733 $31,067 $28,111 $32,171 $42,943
Total 7100 • Utilities $19,225 $19,863 $20,037 $23,346 $21,828 $19,902
Total 7200 • Building Operations $7,238 $5,093 $5,859 $11,627 $8,454 $5,348
Total 7300 • Office Operating Expense $44,111 $63,085 $67,919 $62,680 $75,568 $58,436
Total 8100 • Print/WebAdvertising $38,100 $50,789 $27,201 $60,896 $61,647 $24,112
Total 8200 • Specialty Collateral $13,597 $7,178 $5,172 $7,353 $11,510 $7,557
Total 8300 • Trade Show/Travel $11,927 $1,092 $8,740 $10,424 $25,584 $9,042
Total 8400 • Destination Guide $29,220 $79,399 $74,786 $98,095 $93,581 $78,869
Total 8600 • Econ Dev Programs & Services $25,372 $52-$24,975 $0 $26,158 $25,000
Total 8900 • Boards and Prof. Organizations $1,994 $2,749 $1,597 $10,526 $7,147 $5,737
Total 9100 • Mt. Marathon Operating Costs $91,226 $36,465 $76,161 $102,072 $114,341 $118,799
Total 9200 • 4th of July Operating Costs $12,059 $2,055 $13,982 $14,002 $14,012 $24,600
Total 9300 • Salmon Derby Operating Cost $60,796 $46,827 $37,223 $38,886 $54,657 $48,386
Total 9400 • Seward Halibut Tournament $22,926 $4,879 $6,004 $0 $0 $0
Page 1 of
2:01 PM 10/31/24 Accrual Basis Seward Chamber of Commerce Profit & Loss January 2019 through December 2024
2024 YTD
through
2019 Actuals 2020 Actuals 2021 Actuals 2022 Actuals 2023 Actuals October
Total 9500 • Community -Based Activities
Total 9800 • Fish Restoration Activities
9955 • Amortization Expense
9999 • Other
Total Expense
Net Ordinary Income
Other Income/Expense
Total Other Income
Total Other Expense
Net Other Income
Net Income
$5,183
$21,250
$0
$0
$8,140
$50,500
$5,312
$0
$33,937
$0
$0
$55,193
$12,121
$45,500
$21,429
$0
$15,109
$17, 500
$16,117
so
$9,785
$0
$0
so
$695,175 $658,455 $710,141 $762,821 $855,118 $663,201
$8,886-$103,043 -$171,669 -$257,801 -$106,587 $65,896
$1,194 $215,924 $231,584 $113,808 $3,562 $3,949
$14,387 $14,632 $219,980 $61,029 $19,927 $3,570
-$13,193 $201,292 $11,604 $52,779 -$16,365 $378
-$4,306 $98,249 -$160,065 -$205,022 -$122,952 $66,274
In Kind (Revenue)
In Kind (Expense)
Office Space for AKSBDC provided by Chamber
City Land Lease - Chamber & Derby Booth
$50,000
$50,000
$50,000
$8,400
$50,000
$8,400 $8,400
$50,000 $50,000
Events Only (Does NOT Include Salaries in Expenses}
Mount Marathon Revenue
Mount Marathon Expense
Mount Marathon Nei
4th of July Net
Silver Derby Nei
All Events Net
4th of July Revenue
4th of July Expense
Silver Derby Revenue
Silver Derby Expense
Totals Revenue Events
Total Expense Events
$108, 022
$91,226
$16,795
$13,960
$12,059
$1,901
$51,209
$60,796
-$9,587
$173,191
$83,772
$36,465
$47,307
-$2,300
$2,055
-$4,355
$21,683
$46,827
-$25,144
$103,155
$164,081 $85,346
$9,109 $17,809
$31,595
$76,161
-$44,566
$13,200
$13,982
-$782
$40,515
$37,223
$3,292
$85,310
$127, 366
-$42,056
$109,803
$102,072
$7,731
$35,050
$14,002
$21,048
$80,173
$38,886
$41,288
$225,026
$154,959
$70,067
$163,438
$114,341
$49,098
$38,725
$14,012
$24,713
$104,945
$54,657
$50,288
$307,108
$163,438
$118,799
$44,639
$38,725
$24,600
$14,125
$95,253
$48,386
$46,867
$297,416
$183,010 $191,785
$124,099 $105,631
Page 2 of
Seward Chamber of Commerce
Marketing and Visitor Services Contract 2022 - 2024
Executive Summary:
The Seward Chamber of Commerce and Visitor Center is pleased to present the following plan
to continue fulfilling the city of Seward's need in the fields of destination marketing, visitor
services, and economic development.
Our community enjoys a vibrant visitor industry, an ever-growing marine service industry, and
an entrepreneurial spirit that imbues our business community. Our non-profit organization
works alongside the city of Seward to promote, manage, and encourage this vibrancy.
This contract lays out a plan for FY23 and FY24, with a broad scope of work that covers the
three sectors mentioned: destination management, visitor services, and economic
development.
Our small but effective team is excited to continue setting trends in Alaska marketing, growing
our community's reach as a marine and business hub, and helping to make Seward a great
place to call "home."
We look forward to continuing our work in service to the community of Seward.
Our Approach:
As a non-profit organization, the Seward Chamber can have an intentional focus on serving
Seward. Our mission dedicates us to the betterment of Seward as a business community and
destination for people looking to live, work, and play. We are community minded, resourceful,
transparent, nimble, and authentic in all the work that we do, and the projects we take on.
Our work with the city of Seward falls into three main categories.
1. Visitor Services Information
2. Destination Marketing
3. Economic Development
Contract Terms:
Initiative Ordinance No. 95-1 established a 4 percent hotel/motel room tax on a city-wide basis
with the "basic intent to provide for the promotion of tourism and development of visitor
infrastructure and to provide for visitor services."
As reiterated by Resolution 2019-003, the Chamber is appropriated a percentage of the second
previous full year's bed tax revenue to act as the lead marketing entity.
We look forward to continuing this relationship on terms for FY23 and FY24 at an allocated
funding level of $300,000.
These funds will cover the following services.
Visitor Services Information:
Throughout the year, over 25,000 people interact with our Visitor Center staff in person. These
interactions include answering basic visitation questions to assisting in booking lodging or
campgrounds. Our small staff is the front line for information about anything and everything to
do in Seward.
In addition to in -person interactions, we see an average of 1,000 informational phone calls a
month all year -long. We also manage an informative email inbox that is a useful tool for those
planning trips to Seward.
In tangent with our contract with the city, we have leases on the land for both our main Visitor
Center and our Derby Booth in the harbor, which acts as an auxiliary visitor center in the
summer. The leases allow us to further provide the best experience for visitors.
Some other selected deliverables include:
• Continued administration of the Visitor Information Center year-round and the auxiliary
Derby Booth information center seasonally
o Year-round staffing
o Building & Grounds maintenance
o Utilities & IT support (free public wifi 24/7)
• Greeting and being on hand for informational services at the larger cruise ship dockings
• Year-round informational source and trip planning
• Conference & event planning
• Seasonal bathrooms
• Free public shuttle stop & lost and found
• Seasonal staff
• Year-round, full time Visitor Services staff
Destination Marketing Organization (DMO):
The Seward Chamber of Commerce has thoughtfully created a brand identity for the
community of Seward, while serving as the DMO for the city of Seward. This brand identity has
spurred the creation of a suite of printed publications and a breathtaking online presence that
is setting trends in marketing styles across the state.
Seward is a beautiful place, and we market it beautifully.
Some selected activities and deliverables that fall under the DMO
• Year-round Communications & Marketing Staff
• Web maintenance and development
o Seward.com and all visitor -oriented facets including calendar and trip planning
o State of the art, well optimized site that attracts and informs visitors and locals
• Digital Asset Management System
• Visitation Statistics Information
• Content Development
o Visitor, Marine, and Hometown Guides
o Visit Seward social media
• Earned media
o Continue to prioritize earned media opportunities with travel writers,
publications, and other areas that are identified as target audiences
• Travel Trade Shows
• Wedding & Event Planning
• Event Planning
o Partner with local entities and industries to create and manage events that
attract visitors.
Economic Development:
While Seward enjoys a profitable and vibrant visitor season, we work with the community to
promote a wide variety of industries to make Seward an attractive place to live and work, as
well as play.
The marine industry plays a large role in our community, as does our town's entrepreneurial
spirit. Thanks to our collaboration with the city, we can focus on supporting these other sectors
of our community in line with our visitor services industry.
Selected activities and deliverables include:
• AK Small Business Development Coordinator
o In collaboration with the city, we fund a small business development coordinator
dedicated to Seward. We also provide a space for them to work and all necessary
equipment to guarantee success
• Attendance at the Pacific Marine Expo with invitations extended to key collaborators
such as the City, AVTEC, and the Alaska Railroad
• Growth as a "hometown" resource to effectively market the vast array of resources
Seward offers.
• Facilitate and organize economic development events like Alaska Start -Up Week
• Continually collaborating with community partners
• Collaborating with the city of Seward on community surveys, data collection and
presentation, and legislative lobbying efforts
Outside of the three tenets of our contract with the city of Seward, the Chamber is also open to
ad -hoc projects as the Council, administration, and Chamber board see fit.
To keep the Council & administration abreast of the Seward Chamber's marketing and
economic development efforts, and the success of this contract, the Chamber Executive
Director will report quarterly to City Council and PACAB.
Janette Bower
City Manager
City of Seward
Kat Sorensen
Executive Director
Seward Chamber of Commerce