Jefferson Tourism Board Projecting 2020 Deficit, Sets Budget for 2021

City of Jefferson
Tourism Board 07-13-2020

The Jefferson Convention and Visitors Bureau Board adopted their 2020-2021 Proposed Budget Monday night, while looking at ending the 2019-2020 fiscal year in the hole. This would be the second deficit in the City Tourism Budget in the last three fiscal years.

Revenue for the current year, through June 30, 2020, is at 55% of the projected income ($75, 902.84 received vs $137,900 projected) while expenses are at 66% ($92,351.81 spent). This is a deficit of $16,448.97. The Board attributes the shortfall to the COVID-19 situation and the State required shutdowns earlier this year.

The fiscal year ends September 30, 2020 and Hotel Occupancy Tax revenue is received two months after it’s collected by lodging establishments. Lodging has 20 days to pay to state/city, and then Avenu Insidght, the collection firm the city uses, pays during the following month (for Example, May HOT Revenue is paid in June to state/Avenu and then paid to the JCVB in July).

The 2017-18 Fiscal Year saw a deficit of $56,4467.78. The 2018-19 Fiscal Year was $1,745.86 under budget.

JCVB Board President Colleen Taylor says advertising has been suspended for the rest of the fiscal year and paid employees have reduced working hours to help reduce the expenses.

“Currently the building (Visitors Center) is only open Thursday through Saturday,” Taylor said. “There are some reserves left we’ll use if needed to cover the shortfall.”

The 2020-21 Budget has projected revenue of $135,000, a decrease of $2,900, and expenses are budgeted to be $135,000, with $98,700 spent on advertising and promotion.

In the new advertising budget, the Board is eliminating all print advertising and focusing on television and digital marketing. Board Member Pam Thomas prepared the advertising plan. The adopted plan includes:

  • Northeast Texas Tourism Council Annual Publication Ad $1,600
  • Northeast Texas Tourism Council Annual Map $625
  • Television
    • KTAL (NBC Shreveport) Commercial $6,000
    • KETK (NBC Tyler) Commercial $6,000
    • KTBS (ABC Shreveport) Christmas Show $2,000
    • KTBS (ABC Shreveport) Community Caravan Spring Show $3,500
  • Digital Marketing via Anderson Marketing Company
    • Three Digital Media Campaigns $44,000
      • Production Cost $6,000
    • Search Engine Marketing $15,000
      • Production Cost $250
  • TourTexas.com $3,145
  • Production/Photography $10,580

The 2019-2020 Fiscal Year

In other discussion, member B.W. Brooks said new city signage is on hold until after the November elections. Fund for signage are not in the JCVB budget for 2020-21.