Cape visitors bureau sets money goals

Cape Girardeau's Convention and Visitors Bureau would be judged on how much motel and restaurant tax money the city receives and four other accountability measures under a proposal presented to the city council this week.

The goal for fiscal 2005, which begins July 1, is to have a 1 percent higher growth rate in motel and restaurant tax revenue than comparable cities -- which have yet to be chosen -- or the state average.

The other four measures are an annual business plan, tracking of lost convention business, securing additional revenue through national, state and local grants, and demonstrating professionalism through appointments of bureau staff to state tourism boards.

The goals are included in the visitors bureau's budget proposal to the city council.

Bureau officials have a goal of obtaining $30,000 in grant money in the coming fiscal year to supplement the restaurant and motel tax money that funds operations.

The Cape Girardeau Chamber of Commerce, which runs the bureau under a contract with the city, proposed the measures to comply with last year's out-of-court settlement between the city council and motel and restaurant owner Jim Drury. The agreement ended more than five years of lawsuits brought by Drury regarding city funding for Southeast Missouri State University's River Campus arts school development.

The agreement requires the visitors bureau to meet "measurable goals" as shown by increases in motel and restaurant tax revenue. The agreement with Drury doesn't spell out such criteria as an annual business plan but does require the council to approve goals.

Under the agreement reached last December, the city's motel and restaurant sales taxes will expire once the cash reserves are sufficient to pay off bonds for the city's share of funding for the River Campus project. City officials have said that could be as early as June 2015.

The visitors bureau operates with money from the motel and restaurant taxes. Mayor Jay Knudtson said city officials would have to ask voters to extend the 1 percent restaurant and 4 percent motel taxes for such funding to continue.

Knudtson said that's all the more reason for the visitors bureau to be accountable on how it's spending tax money.

"If you do your job properly, you should not have any difficulty getting support of the citizens," he said.

Knudtson and other council members said Drury was right to demand better accountability from the tax-supported visitors bureau.

"They have a considerable amount of money to work with," the mayor said of the bureau. "I think it is only responsible that there is some pretty strict accountability for how the money is used."

The bureau currently operates on a $448,450 budget for the fiscal year that ends June 30.

The chamber has proposed a $489,300 budget for the coming fiscal year. This figure includes the $30,000 in grant money being sought. The grant money does not apply to a 3 percent cap in budget growth for the bureau that was part of the settlement with Drury.

The budget proposes hiring one additional full-time visitors bureau staff member, which will bring the total staff to one part-time and four full-time employees.

Personnel costs are projected to total over $144,000 of the total budget.

The city council on Monday tabled the budget request and the accompanying accountability measures.

Council members said they couldn't justify pay raises for visitors bureau staff when the city doesn't have money to give city employees pay raises. CVB officials said much of the added personnel cost is for hiring an additional employee.

Knudtson said the council supports the accountability measures. Knudtson said there's no need to approve those measures until the budget issue has been resolved.

Chuck Martin, visitors bureau director, said the accountability measures will show that "we are out there doing our jobs."

mbliss@semissourian.com

335-6611, extension 123

Accountability goals

Five goals for accountability are included in the Cape Girardeau Convention and Visitors Bureau's budget proposal to the city council:

* Achieve 1 percent higher growth rate in motel and restaurant tax revenue than comparable cities or the state average for fiscal year 2005

* An annual business plan

* Tracking lost convention business

* Securing revenue through national, state and local grants

* Demonstrating professionalism through appointments of bureau staff to state tourism boards