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HomeMy WebLinkAbout5.4a 2022 Q3 Lodging Tax Collection TO: Board of Directors, Cottage Grove Convention and Visitors Bureau FROM: Jaime Mann, Assistant to the City Administrator DATE: November 22, 2022 RE: 2022 Q3 Lodging Tax Collection Discussion 2022 Q3 Lodging Tax Collections Due to a short history of lodging tax revenue collected and the variability of the industry for the past two years, the 2022 budget used conservative monthly revenue estimates of $5,529 at a 60% occupancy rate in lodging tax collections for all months of 2022. Also included in the budgeted revenue for Q3 is the grant that was awarded last year through Explore Minnesota. The City of Cottage Grove has collected all the 3rd quarter lodging tax and received the following amounts: Table 1 3rd Quarter Lodging Tax Collections for the City of Cottage Grove In total the lodging tax collections for the 3rd quarter of 2022 was $23,630. We also received the payment on the grant that we were previously awarded through Explore Minnesota for $10,000. The total revenue collections were $33,630 which is $7,033 above revenue projections for the 3rd quarter. With having Q3 numbers, the CVB is 26.5% over our budgeted revenue projections so far in 2022. Year to date, we are up 11.3% from our 2022 revenue projections. Q1 Q2 Q3 Q4 Total Lodging Tax Revenue 13,290$ 19,608$ 23,620$ -$ 56,518$ Other Revenue -$ -$ 10,000$ -$ 10,000$ 2022 Total Revenue 13,290$ 19,608$ 33,620$ -$ 66,518$ 2022 Budgeted 16,587$ 16,587$ 26,587$ 16,587$ 76,348$