Fiscal Note
Currently, with a contracted advertising vendor, Metro Transit's projected annual bus advertising revenue for 2013 is $400,000. During the first year of the in-house program (2013) projected revenue is $435,000. During the second year (2014) projected revenue is $530,000. During the third year (2015) projected revenue is $645,000. The estimated base salary for the sales representative position necessary for this program is $42,000 with $18,900 in benefits for a total of $60,900. The position would also earn an 8% commission on advertising sales. By the third year of the program, Metro should be realizing a significant increase in advertising revenue. Revenue estimates will be included in the operating budget for each year.
This Resolution will provide for the creation of a new 1.0 FTE Sales Representative position, effective November, 2012, in order to prepare for program implementation at the beginning of 2013. The estimated cost in 2012 for the latter two months of the year is $7,000 in salary expense, plus $2,478 in benefits, or a total cost of approximately $9,478. Metro will reallocate current salary and benefit expense funding to support the position in 2012, so no appropriation is required. Metro will include full annualized funding in its 2013 budget, subject to approval by the Common Council.
Title
Create a new 1.0 FTE position of Transit Advertising Sales Associate (CG19, R07) in the Metro Transit operating budget, pursuant to Legislative File #25574 (version 2).
Body
Resolution that a new 1.0 FTE position of Transit Advertising Sales Associate in Compensation Group 19, Range 7, in the permanent salary detail of the Metro Transit budget, is created, thereof.