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CITY COUNCIL WORK SESSION
March 28, 2017
4:00 PM, City Council Chambers
MEETING AGENDA
I. ACRA and supplemental 2016 lodging tax collections
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MEMORANDUM
To: City Council
Cc: Don Taylor
From: Debbie Braun, President
Julia Theisen, VP sales and marketing
Date: March 21, 2017
Re: 2017 Destination Marketing - Supplemental Budget
The lodging tax revenue dedicated to destination marketing generated $216,514 over the
projected budget for 2016. Please find attached a budget for approval of marketing funds.
Background
At the request of the City and the ACRA finance committee, we are working to build a reserve
fund to anticipate any potential downturn in the economy and to also have funds available for
larger community opportunities (ie World Cup Championships). The ACRA finance committee
met in February to discuss the appropriate policy for the reserve fund. In 2009, at the height of
the last recession, the City loaned ACRA‘s destination marketing $500K to stimulate the tourism
economy. The finance committee agreed that $500K, or approximately 20% of the fund is an
appropriate amount for the reserve fund and have requested staff to continue to build the
reserve fund over the next two years.
With a current balance sheet of $200K, ACRA is recommending reserving an additional $120k
from the $216K supplemental and then budget a reserve of $90K per year in both 2018 and
2019 to build to the $500K.
Budget Recommendation
$216.5K Fund Balance from 2016
$120K Reserve Fund
$25K World Cup sponsorship. $75K was allocated by City Council out of ACRA
DM last year ($50K was budgeted in 2017 so additional $25K required)
$25K Shop Local Campaign – to be implemented this summer to boost local
businesses
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$25K Hosting two broadcasts of Bravo’s Top Chef during Food & Wine this
summer. Pending final confirmation from Bravo production team.
$10K Website – server enhancements including content refresh, landing pages
and upgraded user experience
$11.5K Seasonal Marketing- take advantage of advertising and PR opportunities
that are presented this spring to promote Aspen in key markets. We are
reviewing opportunities at this time.
Please do not hesitation to contact us with any questions on this information prior to
the City Council meeting on March 28th.
Thank you.
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