Tourism Commission Meeting — Other

1 Working Session – Future Goals & Priorities Lake Geneva Tourism Commission – September 15, 2026 Historical Tourism Commission Expenditures and Use of Room Tax 2 Wisconsin Room Tax History Sources: Wis. Stat. § 66.0615; 1993 Wisconsin Act 467; 2015 Wisconsin Act 55. Local Room Tax Authorized Wisconsin municipalities are authorized to impose a local room tax on transient lodging.1967 The 70/30 Framework & Tourism Commissions At least 70% of room tax must support tourism promotion and development for municipalities first imposing the tax after May 13, 1994. Existing room taxes are grandfathered under separate retention rules. The statutory Tourism Commission framework is also created. 1994 Act 55 Strengthened tourism -use requirements and began phasing grandfathered municipal retention from historical percentages toward a protected historical dollar amount, beginning in 2017. 2015 3 How Room Tax Funds May Be Used Wisconsin law requires room tax revenue forwarded to a tourism entity or commission to be used for tourism promotion and tourism development. The Statutory Definition “Tourism promotion and tourism development” includes activities or projects that are: ① Significantly used by transient tourists ② Reasonably likely to generate paid overnight stays ③ At more than one lodging establishment owned by different persons and located within the municipality Uses Included in State Law Marketing Projects Advertising media buys; printed or electronic promotional tourist materials; recruiting conventions, sporting events, or motorcoach groups T ourist Information Services Transient tourist informational services T ourism Development Includes tangible municipal development, such as a convention center 4Sources: Wis. Stat. § 66.0615(1)(fm); Wis. Stat. § 77.52(2)(a)1.; Wisconsin Department of Revenue, Local Room Tax. Transient means any person residing for a continuous period of less than one month in a hotel, motel or other furnished accommodations available to the public Who Pays the Room Tax? Sources: Wis. Stat. § 66.0615; Lake Geneva Municipal Code § 70-57. Paid by guests staying overnight in Lake Geneva Hotels Bed & Breakfasts Short-Term Rentals Indoor Commercial Lodging City residents do not pay the room tax - unless they stay overnight in local lodging. 5 Commission Origins: 2016-2017 Sources: Lake Geneva Municipal Code, Ch. 70, Art. III; Ordinance 17 -03; Tourism Commission minutes, May 17, 2017. Dec 2016 Finance Committee opens discussion on creating a city tourism commission Jan 1, 2017 State room-tax changes take effect, shaping the City’s distribution requirements. Mar - Apr 2017 Ordinance 17-03 establishes the Tourism Commission. Alders Hedlund and Flower, along with Chris Gelting, Charlie Lorenzi, Andrew Fritz, and Tammie Carstensen, are appointed. May 17, 2017 The Commission holds its first meeting. VISIT Lake Geneva is named the primary tourism entity, and members discuss the grant program and Riviera plans. 6 Building the Program: 2017-2024 Sources: Lake Geneva Tourism Commission minutes and Tourism Entity Agreements, 2017 –2024; Municipal Code § 70-57; Ordinance 20 -18. Jun - Sep 2017 A multiyear promotion contract becomes the top priority. Negotiations with VISIT Lake Geneva and development of the grant program begin. Feb 14, 2018 A three-year Tourism Entity Agreement with VISIT Lake Geneva covers 2018 – 2020. Mar 14, 2018 The first promotional grants award $600 to Walworth County CVB and $450 to VISIT Lake Geneva. Nov 2020 A three-year Tourism Entity Agreement with VISIT Lake Geneva covers 2021 – 2023. Jun 1, 2021 Ordinance 20 -18 raises the room tax from 5% to 8%, effective June 1, 2021. Dec 2023 A five-year Tourism Entity Agreement with VISIT Lake Geneva covers 2024 – 2028. 7 Historical Tourism Commission Expenditures and Use of Room Tax 8 Lodging Revenue and Room Tax, 2017–2025 Sources: Wisconsin DOR Form SL -304; City audited financial statements. $0M $5M $10M $15M $20M $25M $30M $35M 2017 2018 2019 2020 2021 2022 2023 2024 2025 Estimated Lodging Revenue $0.0M $0.5M $1.0M $1.5M $2.0M $2.5M $3.0M 2017 2018 2019 2020 2021 2022 2023 2024 2025 Room Tax Remitted to the City 9 Results, 2017–2025 Sources: Wisconsin DOR Form SL -304; City audited financial statements and budget worksheets. $4.8M+ Retained by the City Room tax revenue retained by the City and available for General Fund operations. 130%+ Estimated Lodging Revenue Growth Estimated lodging revenue more than doubled over the period. $600K+ Riviera Debt Service Room tax revenue applied to Riviera debt service from ballroom renovations. (thru 2024) 10 Room Tax Collection and Distribution Source: Lake Geneva Municipal Code § 70-57. Guest-Paid Room Tax Hotels, lodging operators, and marketplace providers collect Lake Geneva’s 8% room tax from overnight guests. Remitted to the City (98%) Lodging operators retain 2% of the tax and remit the remaining 98% to the City. Collection Allowance (2%) Lodging operators retain 2% of the tax collected to help cover collection and payment -processing costs. For example, if an operator collected $10k in room tax they would retain $200. City’s Portion (30%) The City retains its share for municipal purposes, including General Fund operations. Tourism Commission (70%) The Commission uses its share for tourism promotion and development, including its contract with the tourism entity. 11 2025 Room Tax Collection and Distribution Sources: Tourism Commission financial reports, March 9 and June 16, 2026. Room Tax Remitted to City (98%) $2,472,851 City’s Portion (30%) $741,855 Tourism Commission (70%) $1,730,995 Tourism Entity: VISIT Lake Geneva $1,261,203 Debt Service (Riviera) $238,173 Tourism Commission Funds Remaining $231,619 12 Historical Use of Room Tax Sources: Tourism Commission meeting minutes and grant -commitment reports. Since 2021 $1.6M+ Approved for Promotional Grants Events and marketing designed to attract visitors to Lake Geneva. $972K+ Approved for Tourism-Related Municipal Development Veterans Park Diamonds $548K Hillmoor $242K Riviera projects $182K Figures represent amounts approved by the Commission, not amounts paid. Riviera Ballroom Sales & Marketing Events Coordinator, Riviera Marketing, General Expenses – phone, internet, etc. Paid Out Approximately $352k ~$192k Remaining ~$89k Remaining 13 Benefits to the Community Paid by Overnight Guests Overnight visitors pay the room tax, not local property owners. Reinvestment Grows Revenue Reinvesting room tax helps generate future room tax revenue that can offset City General Fund costs. A Broader Tax Base Visitor spending supports local businesses and expands the tax base that funds community services. Year-Round Amenities Tourism helps sustain the restaurants, shops, events, and amenities residents enjoy throughout the year. 14 Discussion Regarding Future Goals & Priorities 15 Mission: What Has Been Defined? Mission & Vision APRIL 11, 2018 Commission discussed formalizing Mission and Vision Statements. Item was continued. No formal adoption identified in the 2017 –2025 agendas and minutes reviewed. Documented Grant Program Focus The Tourism Promotion Grant Program states that grants are intended for events reasonably likely to: PAID OVERNIGHT STAYS Generate paid overnight stays by transient tourists. MORE THAN ONE LODGING PROPERTY Generate those stays at more than one lodging establishment within the City, owned by different persons. PRIORITY PERIODS Non-peak: 7 days/week • Peak: Sunday–Thursday nights Sources: Tourism Commission agenda & minutes, Apr. 11, 2018; Tourism Promotional Grant Informational Guide. 16 Working framework for discussion • Definitions and priorities to be developed by the Commission DRAFT CONCEPTUAL MISSION To strategically steward room tax revenue to grow overnight stays in Lake Geneva, strengthen year-round demand and support long -term tourism success. WHO BENEFITS List the Benefits to our Community Stakeholders RESIDENTS BUSINESS OWNERS HOTELIERS HOW CAN WE ADVANCE THE MISSION Investment vehicles available to the Tourism Commission TOURISM ENTITY TOURISM MUNICIPAL DEVELOPMENT COMMISSION-DIRECTED TOURISM PROMOTION Conceptual Mission Framework 17