Fiscal Note
The proposed resolution authorizes an amendment to the purchase of services agreement between the City of Madison and the Greater Madison Convention and Visitors Bureau pursuant to the 2020 budget amendments adopted by the Room Tax Commission. The overall reduction from the Room Tax Commission 2020 Adopted Budget is approximately $2,464,037 from $5,464,037 to $3,000,000.
Title
A Resolution authorizing an Amendment to the Purchases of Services Agreement 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, through the Monona Terrace Community and Convention Center has contracted for such services under the Purchases of Services Agreement with the Bureau, dated November 27, 2017, and
WHEREAS, the revenue funding for the Agreement comes from the room tax on the furnishing of rooms or lodging, and
WHEREAS, the City of Madison Finance Department staff, based on preliminary national forecasts of hotel industry revenues, estimated that 2020 Room Tax revenue will be reduced by at least 50% from actual fiscal year 2019 Room Tax collections, and
WHEREAS, at its July 7, 2020 meeting, in response to the estimated reduction in Room Tax revenue, the Room Tax Commission adopted an amendment to its 2020 Adopted Room Tax Budget, which reduced the budget appropriation to each entity and agency supported by the Room Tax Commission, including the Bureau, and
WHEREAS, under the Commission’s amended Room Tax Budget, payment to the Bureau for General Destination Marketing is reduced to $2,950,000 and payment for the Event Booking Assistance is reduced to $50,000, including the $5000 administrative fee, and
WHEREAS, the City and the Bureau have agreed upon an Amendment to the Purchases ...
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