“By state law, these monies must be transmitted to the CVB for tourism purposes. The only exception would be if the City retained up to 5% (?) as an administrative fee.”

I checked the city code, Ch. 74, Taxation and found this:

Sec. 74-67. Use of proceeds.
(a) At least 95 percent of the gross proceeds obtained from the collection of taxes pursuant to this article shall be used to fund a local convention or tourism bureau for the purpose of marketing and promoting the city as a tourist or convention center. The remainder of the proceeds may be deposited in the city’s general fund or in any other fund as may be designated from time to time by the city council.
(b) The city council may establish or join in the creation of a local convention or tourism bureau, which shall administer the funds appropriated to it for the purpose of marketing and promoting the city as a tourist or convention center.
(c) Annually, prior to the first regular meeting of the city council in September, the convention or tourism bureau shall prepare and submit to the council for its approval a budget of the bureau’s activities for the next fiscal year.
(Code 1986, § 140:80)

Does anyone know whether the Chamber has administered this since the beginning (1986)?

Staff had a busy week with a series of partnership meetings including the Convention and Visitors Bureau and the Northfield Enterprise Center. CVN (sic) was provided a proposal with some thoughts on how to address some issues with the web site. Discussion also included some possible partnerships as well as the need for all the economic development agencies to work on a themed approach. The new web features for CVN could include the printing of coupons for special events. Another exciting adventure includes Northfield hosting an ice-fishing event that could bring thousands of people to the community.

The City’s lodging tax and use of the proceeds by the CVB has been a topic this week. Kathy Feldbrugge will be making a presentation to the Council on the 19th to provide the background and history of the City’s contract with the Chamber (to serve as the CVB and administer funds).

In the meantime, it is important that you know that the lodging tax collected by the City – is not City funds. By state law, these monies must be transmitted to the CVB for tourism purposes. The only exception would be if the City retained up to 5% (?) as an administrative fee.

Complicating the blog and other discussions is the fact that a former City Administrator changed the way the City accounted for the lodging tax. Up through the 2006 annual report – the entire financial activity of the CVB was presented in the City’s financial statements as a special revenue fund. This gives the appearance that the monies are the City’s and that is not true. The proper way to show the financial activity in the City’s statements is to show –0-. The monthly receipts should be recorded to a revenue line in the City’s General Fund with checks cut to the CVB coded right to the same revenue account.

Have you contacted the Chamber for the report? I believe Kathy told me the final auditor’s report would be available in electronic form and was expected soon.

Kathleen

As for the CVB board members that Mary posted (thx Mary!), you said it is “a good cross section.” I’m not so sure.

Two of the CVB board members are also Chamber board members, Jeff Hasse, Chamber President and Pat Vincent.  And Chamber Executive Director Kathy Feldbrugge is a CVB board member.

Since Noah Cashman is the CVB Council Rep and Charlene Coulumbe Fiore is the CVB Staff Liaison, the CVB board is essentially a seven-member board, three of which are affiliated with the Chamber. I’m not sure that’s a good idea, since we’re talking oversight of $100,000 of tax money. Wouldn’t that be similar to having Ross and two NDDC board members on the EDA?

I also find it odd that the CVB board is not listed on the City’s webpage of boards and commissions. Are they somehow different than all the others listed there?

Thanks, Mary, for the board list. I’d say it is a good cross section.

Chair: Michelle Weber Egeness, St Olaf College
Board Liaison: Pat Vincent, Three Links Care Center
Joe Grundhoefer, J. Grundy’s Rueb-n-Stein
Noah Cashman, City of Northfield
Mike Luckcraft, Northfield Golf Club
Jeff Hasse, Country Inn
Charlene Coulumbe Fiore, City of Northfield
Brian Hong, Engage Print
Kathy Feldbrugge, Chamber

Pupose: Enhance the economic vitality of the community by promoting the areas and what it has to offer, and invite and bring visitors to the Northfield area.

David L or Mary R, can either of you pull some strings and get the names of the CVB Advisory Board members posted here?

I’ve emailed Councilor Noah Cashman, asking him to chime in here since he’s evidently the Council liaison for the CVB.

The anticipated 2008 income is $91,700, most of which is lodging tax and the budgeted expenses, $83,831.

According to the report - the bureau has total liabilities and equity of $173,569.23.

Good, if limited, information. I still don’t know the who makes the decisions and why.

Councilor Noah Cashment reported on the Convention and Visitors Bureau Advisory Board Meeting at a City Council meeting in Sept., according to those minutes.

I can find nothing on the City’s website that mentions the CVB doing a presentation or filing a budget for the upcoming year.  All I could find was Page 145 of this 2006 COMPREHENSIVE ANNUAL FINANCIAL REPORT, which doesn’t tell us much:

SPECIAL REVENUE FUND - CONVENTION AND VISITORS BUREAU; SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2006 With Comparative Actual Amounts For The Year Ended December 31, 2005

John Thomas copied/pasted some of the muni code regulating the ‘lodging tax’ that funds the CVB into his comment last week. Here’s the link to that entire section of the Northfield lodging tax municipal code.

Jon, you up for that?