FAYETTEVILLE -- The Fayetteville Advertising and Promotion Commission will focus more on the promotion side of its mission next year.
Commissioners voted 6-0 Monday to adopt a budget for 2022. The budget includes more than $4.8 million in anticipated revenue and $4.6 million in expenses. This year had a balanced budget of nearly $4 million.
The commission operated on a $5.3 million budget for 2020 until cutting about $1.3 million to account for revenue loss because of the pandemic.
Most of the commission's money, 86%, comes from half of the city's 2% hotel, motel and restaurant sales tax. Expected sales tax revenue next year is more than $4.1 million. The commission is on track to receive about $3.9 million in sales tax revenue this year, compared to $3 million last year.
"We are assuming that we will continue to see recovery from the pandemic," said Molly Rawn, chief executive officer of Experience Fayetteville, the city's tourism bureau. The commission governs the bureau.
About 10% of revenue comes from the Fayetteville Town Center, with $494,000 anticipated next year. The rest, about $196,850, comes from other sources such as event revenue, visitor center store sales and grants.
Rawn said the commission has sufficient reserve money to continue operation in case the pandemic resurges and hospitality and restaurant revenue comes down. If anything changes, Rawn said she could come back to the commission to make adjustments to the budget.
"I think the way that we navigated the pandemic over the last year and a half shows we know how to do that," she said.
The commission is projected to have more than $5 million in unallocated money at the start of the year, said Jennifer Walker, vice president of finance for Experience Fayetteville. Any unspent money at the end of the year would go toward that total, and any money taken from reserves would come out of it, she said.
"We are in a very healthy position for an organization of our size," Walker said.
Next year hopefully will mark the first year the commission can put on First Thursday events without interruption and have the city's outdoor refreshment area happening at the same time, Rawn said. The City Council adopted the outdoor refreshment area in June 2020, allowing businesses to serve alcoholic drinks in cups that patrons can take outside.
The commission didn't host First Thursday in 2020 and only had events in September and October this year. The commission spent $20,700 on First Thursday this year and has $50,000 budgeted next year. Usually the events run May through October.
The commission budgeted $148,860 total this year for promotions associated with events. That figure will rise to $287,500 next year. Commissioners discussed a variety of ways to bolster events, such as festivals that showcase food and beverages from local establishments.
Rawn also proposed $505,000 toward improvements at the Town Center, including new carpeting and room doors, a bathroom remodel and air conditioning unit replacement. She proposed $90,000 for new carpet and to remodel bathrooms at the visitor's center on the downtown square.
Commissioners also talked at length about the Clinton House Museum and yearly contributions to TheatreSquared.
The budget included $40,000 for the museum to cover expenses associated with the First Ladies Garden, utilities, rent and maintenance. Rawn said she expected to be able to further cut some expenses for the year. For instance, a revised lease with the University of Arkansas would cut the $15,600 budgeted for rent in half.
The commission voted last year to cut the budget for the museum and have the museum's nonprofit board take a more active role in its operation. Commissioner Todd Martin said he would like to see the amount further reduced for 2023 and subsequent years until the board reaches a self-sustaining model.
Commissioners also voted 6-0 to have TheatreSquared present its financials annually before the commission pays out yearly donations of $200,000. The commission committed $3 million to TheatreSquared in 2017, paid out in $200,000 installments for 15 years. Martin made the motion to have the annual presentation.
"I'm not trying to say 'no' to $200,000 for TheatreSquared," Martin said "I'm trying to say I want to see what's going on with TheatreSquared, I want to see where their budget is, I want to see an economic review. I think that's fair given what we are funding for TheatreSquared."
The commission also met in executive session for about an hour to give Rawn a yearly performance review. They voted 6-0 to raise her pay to $150,000 per year.