Fiscal Note
This resolution authorizes a five-year contract renewal with the Greater Madison Convention and Visitors Bureau (GMCVB) for destination marketing activities. The primary element of the renewal is a change in the rate of growth in the share of room taxes provided to the GMCVB. The change in the share of room taxes is shown below. The renewal would freeze the rate in 2019 at the 2018 rate and reach the original 34% share of room taxes goal one year later. Assuming an average growth rate in room taxes of 5% annually, between 2019 and 2023, the provisions in the renewal will reduce the amount of room taxes provided to GMCVB by an estimated $1.6 million compared to the current contract. GMCVB will receive total estimated room taxes of $30.2 million between 2019 and 2023 under the renewal.
Current Renewal
2017 24% 24%
2018 26% 26%
2019 28% 26%
2020 30% 28%
2021 32% 30%
2022 34% 32%
2023 34% 34%
Title
Authorizing a modification of the service contract for tourism marketing services, between the City and the Greater Madison Convention and Visitors Bureau.
Body
WHEREAS, the Greater Madison Convention and Visitors Bureau (the “Bureau”) provides tourism marketing services and seeks to attract new destination businesses, visitors, conventions, events and trade shows to the greater Madison area; and
WHEREAS, the City has contracted for such services under contract with the Bureau which runs from January 1, 2015 through 2018, and which contains an option to renew for an additional 4-year term; and
WHEREAS, under the contract, the City’s payment to the Bureau for destination marketing services regularly increases; and
WHEREAS in 2017 the payment equaled 24% of the actual room tax collections, and will be 26% of room tax collections in 2018; and under the renewal option the payment would increase by 2% each year until it reached 34% in 2022; and
WHEREAS, the revenue funding for the contract comes from the room tax on the fur...
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