Sun Coverage
The Las Vegas Convention and Visitors Authority board of directors on Tuesday got its first look at a proposed budget for the 2012 fiscal year, a $230 million plan with revenue and spending on par with 2005 levels and a 7 percent reduction in advertising expenses compared to last year.
Brenda Siddall, vice president of finance for the LVCVA, gave highlights of the budget, which anticipates a 4 percent uptick in room tax revenue for the year.
A public hearing is scheduled on the budget May 19 and the board is expected to consider approval at its June meeting.
The agency, funded primarily by room taxes and the rental of the Las Vegas Convention Center and Cashman Center, expects revenue of $237.7 million, including $173 million in room tax and $39 million in facility rentals, which is 7 percent lower than the 2011 budget.
Siddall said she is confident in projecting higher room tax receipts because occupancy rates are trending up despite there being more rooms to fill and the average daily room rate is climbing.
Advertising continues to be the top expense for the year with a budget of $74.1 million planned, $27.8 million for marketing, $38 million for operations and $17.5 million to be spent on allocations to other government entities. In addition, the budget includes $49.6 million in expenses to retire bond debts, much of that for highway projects undertaken in Southern Nevada by the Nevada Department of Transportation.
There are no employee furloughs expected for 2012, but there are fewer employees than in previous years because dozens of vacancies were never filled and management redirected employees to fill the gaps.
Last year, there were 572 on staff with 101 job vacancies. In 2012, the budget projects 505 employees.
Spending less on advertising continues a trend that began in 2009 when the LVCVA spent $89.5 million on ads and $30.2 million on marketing. In 2010, the totals went down to $87.2 million for advertising and $26.8 million for marketing. The current budget has $79.7 million for ads and $28 million for marketing.