City of Las Cruces Sponsorship Policy – Las Cruces Convention and Visitors Bureau
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Scope of Policy
The City of Las Cruces recognizes two types of events. City-run events are those that are initiated, planned, organized, and funded by any City department(s). These events are covered in City Manager’s Policy (CMP) #2.1 “Sponsorship of City Programs and Initiatives”.
City-sponsored events are those initiated and operated by organizations, groups and individuals outside of the City’s organizational structure. This policy only covers City-sponsored events.
Overview
The number of sponsorships and amount of funding are restricted and may vary from year-to year depending on budgetary limitations. City sponsorships shall not be considered as long-term commitments in order to encourage independent viability of events as well as support new initiatives. An organization can apply for funds for up to four consecutive years; however there are no guarantees that a sponsorship will be carried over from one year to another. Sponsorships that continue beyond one year should normally expect a 25% decrease in funding each year. An exception may be made if the event organizer can clearly demonstrate through measurable results that the event or activity is substantially increasing its return on the City’s investment.
Sponsorships may include in-kind services, direct cash payment; or a combination of both. Due to New Mexico anti-donation laws, gifts are not permitted. There must be a clear value received for any sponsorship from the City. For example, groups or individuals coordinating and executing a public event or activity shall accomplish at least one of the following objectives:
• Promote tourism by bringing in overnight guests to our hotels or RV parks.
• Improve or enhance the quality of life for the citizens of Las Cruces
• Creates direct economic impact to the City.
The stated event objective will determine the source of funds received. Funds for tourism-related requests will be funded from Lodger’s Tax revenues. Quality of Life or Economic Impact sponsorships are funded from General Fund revenues.
Budgetary Limitations
Any consideration for sponsorships is predicated on budgetary limitations. General Funds and Lodger’s Tax funds are limited. It is essential that prior to making any awards, the appropriate department making the award has the necessary funding to carry out its main mission and objectives. Therefore, the amount set for sponsorships will vary from year-to-year. Once the budgetary limits are depleted, no additional requests will be considered.
Application For Sponsorship Requests
Applications for tourism-related sponsorships should be sent to the Convention and Visitors Bureau; while economic impact and quality of life sponsorship applications should be sent to the Office of the City Manager. All applicants shall be notified within thirty (30) days whether or not their program or event has been accepted for funding. Applicants may be called upon to make a formal presentation. Each group or organization making a request for submission will be required to submit a completed application, event budget, as well as plans for permitting and marketing. The request for sponsorship will be ineligible for funding if any section of the application process is incomplete.
Applicants may only apply for funds for one category during any funding cycle. For example, if an organization receives City sponsorship funds in a funding cycles for a quality of life project; the same event is not eligible to apply for an Economic Impact or Tourism sponsorship during the same period.
To be considered for funding from the Las Cruces Convention and Visitors Bureau through its Lodger’s Tax collections, one must clearly demonstrate that the event will attract overnight visitors to Las Cruces and positively impact the local economy. Consideration for sponsorship funding for either Quality of Life or Economic Impact events or activities from the General Fund; the applicant must demonstrate that the event will clearly enhance the quality of life for its citizens or will enhance the economic impact of the City. All City-sponsored events receiving General Fund revenues must be open and available to all citizens of Las Cruces.
Convention and Visitors Bureau (CVB) Sponsorships
The CVB is funded solely on Lodger’s Tax collections. The sales activities and events must be focused on bringing overnight visitors to Las Cruces. The number of requests for funding support have increased substantially over the past several years. As much as the CVB would like to help and support all of these worthwhile programs and events, the CVB must be selective and support only those events that have the propensity to bring in overnight guests and reflect positively on our community.
Section 3-38-21 of the New Mexico Lodgers’ Tax Act, relating to the lodger’s tax (currently 5%), which defines eligible use of lodger’s tax proceeds, states in part:
“A municipality or county imposing an occupancy tax may use the proceeds from the tax to defray costs of advertising, publicizing and promoting tourist-related attractions, facilities and events of the municipality or county and tourist facilities or attractions within the area.”
CVB staff will screen all eligible applications of tourism-related sponsorships and present recommendations for funding to its Advisory Board that has been appointed by the Mayor.
Lodger’s Tax Criteria
Tier 1 Sponsorship: A tier 1 sponsorship will be considered for up to $6,000 if the following criteria are met:
A strategic plan is presented at the time of the sponsorship application. No event shall be considered for a Tier 1 sponsorship unless there is a minimum window of at least 150 days prior to the proposed event. The proposal should include a marketing plan with a detailed section on how this event will be marketed to visitors; an overall budget, implementation strategy, and plans for securing appropriate permits.
• The proposed event or activity must fit into the overall branding the CVB is using for attracting visitors to Las Cruces and must reflect positively on the city.
• The event or activity must have the potential to bring to Las Cruces at least 300 room nights that can be directly attributed to the event.
• The proposed event or activity should be somewhat unique. The CVB is not interested in supporting events that are similar to events that can be found in every other city.
• The event is for the betterment of the hospitality and tourism industry.
Tier 2 Sponsorship: A tier 2 sponsorship will be considered for up to $4,000 if the following criteria are met:
A strategic plan is presented at the time of the sponsorship application. No event shall be considered for a Tier 2 sponsorship unless there is a minimum window of at least 120 days prior to the proposed event. The proposal should include a marketing plan with a detailed section on how this event will be marketed to visitors; an overall budget, implementation strategy, and plans for securing appropriate permits.
• The proposed event or activity fits into the overall branding the CVB is using for attracting visitors and reflects well on the city.
• The event or activity has the potential to bring to Las Cruces at least 150 room nights that can directly be attributed to the event
• The event is for the betterment of the hospitality and tourism industry.
Tier 3 Sponsorships: A tier 3 sponsorship will be considered for up to $2,000 if the following criteria are met:
A strategic plan is presented at the time of the sponsorship application. No event shall be considered for a Tier 3 sponsorship unless there is a minimum window of at least 90 days prior to the proposed event. The proposal should include a marketing plan with a detailed section on how this event will be marketed to visitors; an overall budget, implementation strategy, and plans for securing appropriate permits.
• The proposed event or activity fits into the overall branding the CVB is using for attracting visitors and reflects well on the city.
• The event or activity has the potential to bring to Las Cruces at least 100 room nights that can directly be attributed to the event.
• The event is for the betterment of the hospitality and tourism industry.
Tier 4 Sponsorships: Tier 4 sponsorships are existing events and activities that take place in our community; and CVB’s participation provides an opportunity to nurture and support those that have supported or are important to the CVB and the hospitality and tourism industry. Tier 4 sponsorships will not exceed $1,000. No event shall be considered for a Tier 4 sponsorship unless there is a minimum window of at least 60 days prior to the proposed event.
Special Sponsorships: Occasionally an opportunity comes along to host a major event or activity. The cost may be higher than a tier 1 sponsorship; but the cost benefit far exceeds our normal parameters. Examples of a Special Sponsorships are the WAC tournament or the Biggest Loser. These are viewed on a case-by-case basis and a determination is made depending on the overall benefit and its direct impact to Las Cruces tourism.
Interested Parties: Any individual, group or organization wishing to submit a request for FY17 sponsorship must complete and submit an application form to the City of Las Cruces, no later than 5:00 PM on July 15, 2016. Insufficient data or an incomplete application will disqualify any applicant. All applicants, approved or not approved for funding, shall be notified no later than November 13th.
